Greenspan 7/20/2005

[retire@40]

Regarding interest rates:...he made clear in his final midyear economic report to lawmakers that the Federal Reserve Board would continue raising interest rates at the same gradual pace it has for the past year.

Regarding the housing market:  "The significant rise in purchases of homes for investment since 2001 seems to have charged some regional markets with speculative fever," Greenspan said.

He also said that the increased use of exotic types of mortgage such as interest-only mortgages were of "particular concern." He said these types of mortgages left home buyers "vulnerable to adverse events" if home prices begin to fall.

It marked Greenspan's most extensive comments on the possibility that the surge in housing prices in parts of the country could be creating a speculative bubble similar to the one on Wall Street that burst in early 2000.

 

[Bookm]

The August Kiplinger's had an article listing the riskiest housing markets, according to Fannie Mae starting with the riskiest:

1. Boston
2. NY City
3. Fort Lauderdale
4. DC
5. Detroit
6. L.A.
7. San Francisco
8. Sacramento
9. Providence
10. Minneapolis-St Paul

Bookm

 

[unclemick]

Bookm

Yep - took my 88 yr old Mom for her annual eye check this morning - skimmed it in the waiting room.

New Orleans may not be extreme bubble land but not a bargin either.

 

[riskadverse]

I listened to him this morning and would love to understand him - especially about why the 10 year remains low.   It looks like he's held it together long enough to make a graceful exit.  Can't imagine who wants to inherit that job.  It's going to be interesting as to how history interprets his reign. 

 

[laurence]

San Diego is not on that list?

 

[ShokWaveRider]

Yep, and home prices are silly.... Bound to break...

SWR

 

[lets-retire]

I think any list ranking the cities of the riskiest [insert criteria] would be lacking if it didn't include Detroit.

 

[Mr._johngalt]

I think any list ranking the cities of the riskiest [insert criteria] would be lacking if it didn't include Detroit.

Well, I liked it (in the 70s) but I should have gotten combat pay

JG

 

[Mr._johngalt]

And another thing.............

When I lived in the Detroit area (1976 to 1980) I described it as a
"half donut" bounded on the south by The Detroit River. The hole of the donut was downtown, really quite nice and a pretty small area.
After that, and out to 8 Mile Rd. (city limit) was unbelievable blight,
crime and poverty. Then, everything got "cleaner and greener"
and that pretty much continued as you traveled north. Anyway, the suburbs
are a lot more congested than when I lived there, but every time I go back I think what a pretty area it is.

JG

 

[Mr._johngalt]

And still more (off topic)............this is my personal and totally
non-scientific preference list of areas to reside (from the list in this thread).
Wouldn't live in any city no matter what. This is just based on
my impressions mostly from visiting:

1. Detroit
2. Ft. Lauderdale
3. San Francisco
4. Sacramento

NYC, DC, LA, and Minn/St. Paul are tied for last place.

Boston and Providence..........never been there.

JG

 

[Jarhead*]

From Neil Diamonds recording, of "I am I said", in the 60's:

"LA's fine, the sun shines most the time
and the feeling is lay back
Palm trees grow, and the rents are low,
but keep thinking about making my way back,
I'm NY city born and raised,
but now adays I'm lost between two shores,
LA's fine, but it aint home,
NY's home but it aint mine no more"

Having spent my growing up years in a small high elevation logging town in NE Calif. with plenty of snow, etc, I left after high school, and after a 4 year hitch in the Marine Corps, and a taste of So. Calif., decided couldn't go home no more.
The year was 1958, and for a young, single guy, having his military obligation behind him, had found paradise. (It was close to it in that period of time). Plenty of uncrowded beaches, no traffic problem anywhere. (Population of San Diego was a little over 150,000).

Fast forward to 1987, and we left skid-marks leaving So. Calif. Paradise found, Paradise lost.

But So. Calif. does have great weather, and my guess is that will continue to be a draw for a lot of people, and will probably buffer some-what, the effects of Real Estate pricing.

 

[Martha]

One more problem of overpopulation. Paradise fills up.

Thanks ex-Jarhead. Now I will have "I am I said" stuck in my mind all day.

 

[HFWR]

Thanks ex-Jarhead.  Now I will have "I am I said"  stuck in my mind all day.

A legitimate use of medical marijuana, IMHO!!

 

[Jarhead*]

One more problem of overpopulation.  Paradise fills up.

Thanks ex-Jarhead.  Now I will have "I am I said"  stuck in my mind all day.

Martha: Sorry about that. I promise not to put up any of the "Beach Boys" early stuff. (California Dreaming, etc.)

 

[laurence]

Martha: Sorry about that. I promise not to put up any of the "Beach Boys" early stuff. (California Dreaming, etc.)

Isn't that the Mommas and Poppas?

"on such a winter's day...stopped into a church, I passed along the way...I got down on my knees, and I began to pray....you know the preacher likes the cold, he knows that I'm gonna stay" ....dang, cursed myself, now I'm stuck!

 

[Martha]

Oh man, you guys are screwing with my mind.

 

[laurence]

Oh man, you guys are screwing with my mind.

"Apocalypse soon" won't let us do anything else!

Sorry! Had to go there! Too much coffee!!!!

 

[Jarhead*]

Isn't that the Mommas and Poppas?

"on such a winter's day...stopped into a church, I passed along the way...I got down on my knees, and I began to pray....you know the preacher likes the cold, he knows that I'm gonna stay"  ....dang, cursed myself, now I'm stuck!

Lawrence: You right.

I had a question mark over my head after I posted that, but figured what the hell.

Now, will you please get to work, and quit bugging me?

 

[shiny]

In California Dreaming the lyric is actually "I pretend to pray" I know it well, lost a bet about it once!

 

[laurence]

In California Dreaming the lyric is actually "I pretend to pray" I know it well, lost a bet about it once!

Makes much more sense in the context of the song.

 

[HFWR]

Won't mention Barry Manilow, then...

"Oh, Mandy..." :

 

[yakers]

Now to tie things together on this thread...the music selection is messing with our heads but really Greenspan is messing with our heads too. We have a wonderful economy except for all those terrible threats....or we are in real trouble but there are all these wonderful possibilities as well. All these counter intuitive occurances like oil goes up-market goes up and oil goes down-market goes down (substitute unemployment, balance of trade or interest rates) really mess with my head. I am a really simple guy. Now back to the latest Audioslave song (Doesn't Remind Me) playing in my head.....

 

[BigMoneyJim]

We have a wonderful economy except for all those terrible threats....or we are in real trouble but there are all these wonderful possibilities as well.

I'm getting this kind of thing at work: big bonus, great profit margins, making business goals, the future is rosy, but DEAR GOD DON'T SPEND ANY MONEY! Uh, what?

 

[newellcr]

The August Kiplinger's had an article listing the riskiest housing markets, according to Fannie Mae starting with the riskiest:

1. Boston
2. NY City
3. Fort Lauderdale
4. DC
5. Detroit
6.

Risky to who, the mortgage company or the buyer? As far as I can tell, there's no housing froth in the Detroit area. Housing prices in the Metro Detroit area are down slightly from last year. I make this statement based on some DOM data that I have for my own neighborhood, discussions with realtors, and reviewing comparable sales. I recently fought a real estate tax increase and won (partially, anyway). That's why I did the research.

Cheers,

Chris

 

[Nords]

I'm getting this kind of thing at work: big bonus, great profit margins, making business goals, the future is rosy, but DEAR GOD DON'T SPEND ANY MONEY! Uh, what?

Personal interpretation: Sell all your company stock NOW.