Time for a Break
Tuesday, June 20, 2006
Considering the long and still growing list of items on the To Do list prior to the year's first camping trip this weekend, a short break is deemed necessary. Save for a quick update to the Southern California real estate sales charts after DataQuick releases fresh stats for May (probably later today), look for the next missive to appear here early next week.
Off to the Sierra Nevada Mountains again for some quiet time away from computers and crowds, we'll try to remember what it was like before so many hours of the day were spent so close to so many electronics - maybe even read some fiction.
Any mention is appreciated, however, with full knowledge of a break nearing, yesterday's post was really not one of the better efforts offered here - readers directed from that source are encouraged to return after your humble scribe's mind, fingers, and eyeballs have had a bit of a R&R.
It really does crack me up to see the name of this blog in print in places like this - when the name was conceived, there was no consideration given to how it might appear when others referred to it.
Recall that last summer, during the Alan Greenspan send-off in Jackson Hole, the Washington Post saw fit to provide a link back here that stood in stark contrast to remarks by former Treasury Secretary Robert Rubin. It is believed that this earlier inclusion was of the automated variety, as opposed to David Gaffen's note above, but you never know.
4 comments:
On the same note, an NPR story this morning, narrated by a fellow with a thick British accent (presumably an English story?), reminded us that the current economy is a result of Alan Greenspan's liquidity bubble, and that Greenspan's legacy will be tarnished by creating these bubbles.
A few months ago, when you considered changing the name of the blog, we had no idea that the media would also see Greenspan as the bubble blower.
Before you go on your trip, do you care to speculate why building starts are up 15% in May? Builder confidence is at an 11-year low and new permits are down, but why are starts up? Hurrying to build out the land? Why not sell the land?
Building is still the most profitable investment in real estate due to the differential between building costs and sale price (even at a dramatic reduction from bubble peak).
As for sentiment, this is a leading indicator. Think of it as referring to future building levels. Thus, there's no contradiction here.
don't forget the bug spray
Poway,
I think Aaron has it right - while building costs have gone up in recent years, they've not gone up near as much as home prices have, so builders can continue to build for awhile and still make money even though they are lowering prices. I wrote on this subject a bit here:
The Contruction Conundrum
I was much funnier back in February.
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