The 4Rs: Realty Reality Recommended Reading 12/30/2005

GLOBAL REAL ESTATE MARKETS FORUM
4Rs: Realty Reality Recommended Reading
with Editorial Comment

REALTY REALITY FSO ARCHIVES
DECEMBER 30, 2005

Pushing on Strings and Tugging on Rubber Bands

The FED: Pulling on a Rubber Band, John H. Makin, AEI Online
Spotlight on Danielle DiMartino, Dallas Morning News
December 14, 2005, Mogambo Guru [Richard Daughty] Economic E-mail newsletter at FMNN
Interest-Only: Borrower Beware, Kirstin Downey, Washington Post

Ole Bear, Editor's Commentary

Today's links are pretty interesting in our view. Not only does the FED push on a string manipulating markets to keep money around dicey stocks on Wall Street, but the analogy of the FED pulling on a rubber band for housing to hold up both Wall Street and the fraudulent paper Federal Reserve Note not backed by specie isn't too bad. Problem is? -- both strings and rubber bands can break under too much stress. Maybe the FED needs to buy a wire rope factory so that it can support all its bridgework over deep dark chasms [think of an abyss!] -- you know like the wound cables that hold up the Golden Gate! Has anyone seen that chart of GM lately? Falling knives down black holes! Adding the ventiports back to Buicks ain't gonna help none! Ventiports? See: Google!

Ms. DiMartino down in Dallas has some interesting stuff on real estate and condos, and I provided the link to her most recent essay archive. I been reading her stuff since she came on board the DMN, and she's a pretty sharp gal when it comes to real estate and financial markets. Her bio is pretty impressive. Condo Flip, Anyone!

I always get a kick out of reading the Mogambo Guru. The December 14th issue takes Bernanke to task in Daughty's usual satire, and is a very fun read. Ms. Downey's essay linked above is a nice read as well. An interest only loan is like taking a Colt .45 fully loaded and shooting off both of your feet, economically speaking. Here's the link to FMNN radio, and check this out. Mogambo was a guest on December 22nd, and there are some other interesting Kool Kats you might want to listen to.

It is a rather dreary, gray December day here in Central Missouri. Looks like it could snow. Maybe it will, maybe it won't. But, it is raining. There's also a rather nice real estate bubble here in Boone County Missouri. Maybe it will start hissing, maybe it won't. I look at all the new vacant office/retail space speculators have put up over the past few years all over Columbia, and I ask myself, "Self, how can bankers be so ignorant, dumb, and just plain ole stupid?"

Beats me!

Ole Bear, Editor
Columbia, Missouri

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