tag:blogger.com,1999:blog-27697009.post115916297126585195..comments2024-02-29T03:21:35.007-08:00Comments on The Great Depression of 2006 : The Perpetual Money MachineJim in San Marcoshttp://www.blogger.com/profile/09435296419912935381noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-27697009.post-1160000280770968932006-10-04T15:18:00.000-07:002006-10-04T15:18:00.000-07:00Glad to here from you, Jim, because the yield curv...Glad to here from you, Jim, because the yield curve inversion is starting to get steeper (higher short term rates vs. lower long term rates). <BR/><BR/>An inverted yield curve tends to have a adverse impact on businesses and banks that borrow money at the short end of the curve and loan out and the long, which means that the 'perpetual money machine' is starting to run out of money..bubble_watcherhttps://www.blogger.com/profile/09754629981220575364noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-1159594100001722472006-09-29T22:28:00.000-07:002006-09-29T22:28:00.000-07:00Bubble Watcher I haven't forgotten you, I'm resear...Bubble Watcher I haven't forgotten you, I'm researching your links for a coming post. <BR/><BR/>Thanks for the info<BR/><BR/>JimJim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-1159593069076089402006-09-29T22:11:00.000-07:002006-09-29T22:11:00.000-07:00Anonymousregarding your site recommendationhttp://...Anonymous<BR/><BR/>regarding your site recommendation<BR/><BR/>http://thisoldhouseflip.blogspot.com <BR/> <BR/><BR/>Bob Filippa (if that his real name) writes a pretty good column, so I have put his site on my blog<BR/> <BR/>Thanks for the recommendation.Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-1159590304571873112006-09-29T21:25:00.000-07:002006-09-29T21:25:00.000-07:00I could hazard a guess, I haven't seen much that s...I could hazard a guess, I haven't seen much that sells for less than 600k in LA. <BR/><BR/>A 60 year old dump that you need to demolish is in that price range. What you are seeing as sticky, is the price of developed land minus the house. <BR/><BR/>A lot of those 60 year old dumps are sitting on what is considered two to three lots in todays zoning regs. <BR/><BR/>So as a developer its costing him 200k for each lot 200k for building the house, and he gets 200k to 400k profit. He can still sell them for less than the old homes and hey, they're bran new!Jim in San Marcoshttps://www.blogger.com/profile/09435296419912935381noreply@blogger.comtag:blogger.com,1999:blog-27697009.post-1159573042782462502006-09-29T16:37:00.000-07:002006-09-29T16:37:00.000-07:00um.. i have a unrelated question (this being the l...um.. i have a unrelated question (this being the last post)... here (http://housing-watch.com/regionview.aspx?city=los-angeles) you see the graph of median sales prices in LA... here's a question:<BR/><BR/>how come the stickiness at around 600K??? what could be doing that?<BR/><BR/>thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-27697009.post-1159229057324504342006-09-25T17:04:00.000-07:002006-09-25T17:04:00.000-07:00On the subject of a yield curve inversion, somethi...On the subject of a yield curve inversion, something rather interesting is happening to the markets right now that has not happened since the 1930's.. <BR/><BR/>On US Treasury debt, long term rates are falling much faster than short term rates.<BR/><BR/>3-month T-bill yield chart:<BR/><BR/><A HREF="http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=irx&sid=0&o_symb=irx" REL="nofollow">[Link]</A><BR/><BR/>30-year bond yield chart:<BR/><BR/><A HREF="http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=tyx&sid=0&o_symb=tyx&freq=1&time=8" REL="nofollow">[Link]</A><BR/><BR/>Dynamic Yield Curve chart:<BR/><BR/><A HREF="http://stockcharts.com/charts/YieldCurve.html" REL="nofollow">[Link]</A><BR/><BR/>and from Wikipedia:<BR/><BR/>"Although negative liquidity premiums can exist, specifically if long-term investors dominate the market, current financial philosophy is that positive liquidity premium dominates, so only the anticipation of falling interest rates will cause an inverted yield curve. Strongly inverted yield curves have historically preceded economic depressions."<BR/><BR/><A HREF="http://en.wikipedia.org/wiki/Yield_curve" REL="nofollow">[Link]</A>bubble_watcherhttps://www.blogger.com/profile/09754629981220575364noreply@blogger.com