Posted on 12/19/2010 3:25:56 AM PST by TigerLikesRooster
Dr. Doom's $5.5 M. Condo Purchase End of World As We Know It
December 17, 2010 | 5:58 p.m
Either the housing crisis is coming to an end or the apocalypse has arrived. The N.Y.U. economist who predicted the housing bubble's spectacular burst has bought a $5.5 million condo in the East Village.
Nouriel Roubini (a.k.a. Dr. Doom) who only recently opined on a possible second crisis in the housing market and in 2006 sung the praises of the rental market, apparently has contradicted both pieces of advice, plunking his cash in the most expensive condo recently on the market in the East Village. Of course, it should be noted that faith in the stratified realm that is Manhattan's luxury residential real estate market is by no means the same as believing the housing market in general is in good shape.
(Excerpt) Read more at observer.com ...
Interesting. One of our regular Saturday Coffee Club members that regularly dispenses economic advice has been bankrupt twice. It amazes me that anyone pays attention to him.
The real question is ... Did he pay cash or sign a mortgage to repay the loan in US Dollars?
Bankruptcy is not necessarily a indication of being a poor businessman.
You have to look at the whole of his financial history. What have been his highs?
Many of the most successful businessmen in history have made and lost fortunes several times.
The most successful businessmen have been risk takers. With great risk you occasionally have great failures.
Maybe he learned after two times. He’s got experience. That’s probably why people listen.
To some folks, this is FAR different (and interesting) than taking advice from someone who has never filed for bankruptcy. Why? Because you never know if the person you’re talking to is on the cusp of filing and just not being forthcoming.
My uncle (we all thought) owned a successful business for years. That’s only until years later we learned he was sending in every credit card offer mailed to him, and when he did file, he was close to $2M in debt.
He started the business in 1990 or 1991 and it dissolved around 2005. During those 15 years, I doubt the company ever made a profit.
Yet, he was able to be a high-roller and live in an $800,000 house and drive two new cars, etc.
IMO, you should have to go to prison for something like that, but I don’t think he was ever even charged with a crime.
This purchase be compatible with his Dr. Doom’s views. Inflation is too much money chasing too few goods. Hyperinflation is everybody scrambling to dump a currency into something which can store value; gold, food, condos. Some of the reasons we’re not seeing Jimmy Carter style inflation now is that the Fed has the currency safety valve, the interest rate, tied down in the off position. If you’ll recall, Jimmy Carter added 13% to the money supply and that was countered by 20% interest rates for about 3 years. But this Fed is not independent and is working hand in glove with Obama and keeping the interest rate down despite adding an estimated 200% to the money supply.
Us consumers aren’t seeing hyperinflation because we, the public, are panicked over the future so we’re holding onto our money. It doesn’t matter how few Chinese made 55 inch plasma TV’s are in the store if you’re afraid you won’t have a job soon. Hence, very little apparent inflation. So, Dr. Doom is right to buy a well located apartment. When he sells it in three years, he may get $20 million new dollars for it. (The New Dollar will feature portraits of Democratic politicians.)
Yeah, but who do you want to have to pay for other people's great failures? The taxpayers? A truly successful businessman would not need somebody to bail him out ... EVER!
Dave Ramsey filed for bankruptcy. Just saying.
Interesting. One of our regular Saturday Coffee Club members that regularly dispenses economic advice has been bankrupt twice. It amazes me that anyone pays attention to him.
The problem with economics is that those who claim to be economists are the worst when it comes to economics
Who is Dave Ramsey? An NBA superstar or something?
Where did I say anything about anyone bailing anyone out?
This particular individual was left a legacy of several thousand acres of prime cotton acreage in the Northeast Louisiana delta that his father built.
Instead of working it or renting it out, he proceeded to pi$$ it all away with various ventures and runs for political office. He hasn’t a clue on how wealth is created or what “work” is.
He’s been a disciple of Lyndon LaRouche for years.
Tying the relief valve down on our pressure cooker economy is a recipe for disaster.
The instrumentation that should tell us pressure, temperature, velocity... are faulty at best.
Very difficult to run a complex system on manual.
Possible to just blow a gasket and slow it down, also possible is a catastrophic failure of the containment with sudden expansion.
Haven't been to the grocery store for a while, eh?
:O(
Well that is enough to discount any advice he may offer on any subject.
Does he have a wonderful spouse that makes people want to invite him to your coffee club?
He’s very affable and glib, and somehow manages to glean much local “inside information” and gossip that is a necessary lubricant for a bunch of old men sitting around drinking coffee.
“Hence, very little apparent inflation.” “Haven’t been to the grocery store for a while, eh?”
There are several ways to view inflation. The government chooses not to count taxes, insurance, gas or other energy, and food. They do this because Congress has crafted laws indexed to the official inflation numbers. In essence, Congress has created a positive feedback mechanism that would, if government counted real inflation, cause inflation to spiral out of control.
Food, grown in the US, is subject to inflation, but I still think the price increases we’re seeing do not reflect true inflation because demand for many things is being held to a minimum by internalized panic. Where we’re not seeing any inflation is in foreign products; principally Chinese. The Chinese are footing the bill (subsidizing) our appetite for their products by keeping the US price low and by adjusting their currency against the dollar to keep us buying.
The Chinese are doing this to keep people in China employed at the expense of competitors. They are terrified of what out of work peasants will do with their free time. (Riot, I presume.)
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