Archive for October, 2008

How stupid are Harvard and Yale MBA grads?

Saturday, October 18th, 2008

Andrew Lahde writes a pretty funny but scarily true letter. The hedge-fund manager who saw amazinf gains thanks idiots with fancy MBAs for making him rich while they helped most of us become poorer.

The low-hanging fruit, i.e. idiots whose parents paid for prep school, Yale and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government.

All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other sides of my trades. God Bless America.

He also talks about the glory of hemp, both male and female…

Reasons the economy is not real close to recovery

Thursday, October 9th, 2008

1) We are only now begining to witness the unemployment numbers catch up to the financial crisis. This months 6% was vastly understated, and reflects among other things people giving up on searching. Those numbers will spike dramaitically over the next 2-3 quarters. In other words, people have just started losing their jobs. That will also lead to declining wages, so less people working and those working earning less.

2) Most of the adjustable rates taken out at the peak have yet to reset, meaning we will soon be inundated with tons of the types of adjustments that have already crashed the financial markets to date.

3) Many millions of people, even were they willing, are no longer capable of receiving financing. Those days of easy credit are gone, and lending standards have and will continue to tighten drastically. Meaning les competition for homes, already flooded with unpurchased homes, unbought new construction, and foreclosures.

NYC real estate might begin to see more pressure

Wednesday, October 1st, 2008

Here’s a good article on NYC real estate.

The Stuy Town project certainly has potential, but given the market and the need for their fellow investors to receive immediate gains, they are really hurting right now.

Compared to the rest of the economy however, real estate prices in nyc have only gone down 3% since the last quarter. However, the two main things that pose risk now are:

1) Lack of wall street bonuses and new jobs, creating vacancies in luxury apartments
2) Lack of lending for developers