Sonoma Housing Bubble

Pulling the cork out of Sonoma's bubbly housing foolishness

Friday, May 19, 2006

The Boom... According to Greenspan

"Former Federal Reserve Chairman Alan Greenspan said Thursday that Americans' consumption could taper off somewhat now that the U.S. housing market's "extraordinary boom" has ended."

"Greenspan, in his first public U.S. speech since retiring in January from a storied tenure leading the Fed, predicted there is no danger of a total collapse of the housing market."

'"This has been quite an extraordinary boom," Greenspan said in remarks at the Bond Market Association's 30th anniversary dinner in New York. "Home sales are off, applications are off, everything is going in the same direction. The boom is over, and you can say that with a fairly strong degree of confidence."'

"His comments come on speculation the Fed could pause its cycle of rate hikes as a housing slowdown feeds a cooling of the U.S. economy."

"Federal Reserve officials — including current Chairman Ben Bernanke — came out swinging Thursday in a series of speeches to assuage inflation fears. The Fed, which boosted rates last week for the 16th straight time to 5 percent, has left its options open in terms of future rate decisions."

"Greenspan cautioned that it was too early to determine how skyrocketing energy prices will affect consumer spending or lead to inflation. He pointed out that non-financial and non-energy company profit margins were not being suppressed by higher energy costs, and that higher prices at the pump weren't dramatically curtailing driving habits."

'"One out of 7 barrels of world oil consumption is consumed on American highways," he said. "People apparently don't change the amount of mileage they drive, they change the vehicles they drive. That of course creates lower consumption ... it eats into purchasing power of other things."'

"His comments come as Wall Street was spooked by inflation worries after a jump in energy costs pushed U.S. consumer prices up sharply last month, according to a government report. Concerns that rising inflation would send rates higher sent the stock market sharply lower Wednesday."

17 Comments:

At 5/19/2006 01:57:00 PM , Blogger John Doe said...

The mere fact that Greenspan had to even mention the possible collapse of the housing market points to just how precarious some markets have become.

 
At 5/19/2006 02:21:00 PM , Anonymous tom stone said...

the housing market is collapsing,these fools can try to put the toothpaste back in the tube as hard as they like,bubbles ar a psychological phenomena as much as they are economic,and once the attitudes change it is over...does king canute have a theme song...time to start whistling if there is.

 
At 5/19/2006 06:00:00 PM , Anonymous tom stone said...

oh baby,i just visited condoflip.com,and it was a spiritual experience!i had tears running down my face as i recited the mencken prayer...perhaps greenspan could partner with donald trump to buy this site,what a perfect fit it would be with those seminars!and alan could talk about the benefits of arms and the importance of being involved with the right lender...building trust with trump!

 
At 5/19/2006 06:16:00 PM , Blogger marin_explorer said...

Condoflip.com--LOL!
I didn't expect it were possible to combine postmortem dot-com exhuberance and now real estate, but there it is!

 
At 5/19/2006 07:04:00 PM , Anonymous tom stone said...

i just reread greenspan's comments for the third time,and it reminded me of an old saying "every lawyer should have a pimp for a brother,so he has someone to look up to." i wish greenspan had a lawyer for a brother...

 
At 5/20/2006 02:08:00 PM , Blogger moonvalley said...

Condoflip. Good Lord! I wonder how long that sites' going to stay up.The last time my husband and I were in LA on business (March) there was a Trump seminar going on in one of the smaller ballrooms at our hotel. What a sorry sight. I wish I'd had my camera, but the Sonoma housing bubble site didn't exist yet.

 
At 5/21/2006 06:09:00 PM , Blogger Athena said...

Hey guys... Freddie Mac was cruising the blog several times on Friday... what do you suppose they were looking for? Do you think they found it?

 
At 5/21/2006 07:00:00 PM , Anonymous tom stone said...

probably looking for a job,athena...freddie mac isn't in a whole lot better shape than fannie mae...btw i plan to call the "reporter" from the pd tomorrow am and talk to him...if i get his email,i'll leave the zip #'s and my cell #...if he doesn't like what i say it could be rubber chickens at 10 paces.

 
At 5/21/2006 07:32:00 PM , Blogger Athena said...

can't wait to hear how that conversation goes! Keep us posted

 
At 5/21/2006 11:08:00 PM , Blogger Athena said...

Hey Tom... I did find an article online for the PD dated the 20th. However, it didn't say anything interesting and they again printed their fabricated data about listings and days on the market. Give that guy an earful, and eyeful and a kick in the pants. What kind of nitwit can't run an mls search on their own to verify the data?

So anyway, while there is a new article from the PD about sonoma county's bubble... because it is using unreliable data and not saying anything new and merely tiptoing around what any person with a brain can see... the housing market is flailing in Sonoma county...there is no reason to give them any webspace since their reporting sucks, to put it mildly.

They should add a tagline to their paper... "Our advertisers prefer we package lies to look like news...the truth is unfit to print."

 
At 5/22/2006 09:04:00 AM , Blogger Athena said...

MV... did you see the Montini notice in the paper advertising their two bedroom units as low income housing? One unit has an income top out at $58k... and the other one $80kish (something on the high end of the 80s I think)

Is this a requirement on them? Or are they offering these now to take advantage of "affordable housing" subsidies because they haven't sold all their units?

You know, I can't count the number of real estate agents I have heard tsk tsking these guys... why is that?

 
At 5/22/2006 10:07:00 AM , Anonymous tom stone said...

hi athena,i left a message on coit's voicemail about 7 am with his #'s and the mls #'s.also my cell #.no response yet...i was halfway expecting an abusive call,wich doesn't worry me,i have a sense of humour,and i'm not afraid to use it.btw have a wonderful time at the wedding! i sure hope things work out well for the people involved... i can't think of any more difficult work than making a marriage really go..but kids are a blast.

 
At 5/22/2006 11:50:00 AM , Blogger Athena said...

can't wait to hear if there is a response.

LOL... kids are easier than marriage! However, this kid sister isn't real interested in having kids for a long while. LOL...she knows how I feel about marriage in general, but I feel different about it for her. She has a good head on her shoulders, is very independent and found someone who wouldn't have it any other way. Now if I can avoid falling and breaking my neck walking across the grass in my bridesmaid dress all will be good! ;-)

 
At 5/22/2006 05:11:00 PM , Anonymous tom stone said...

still no response from mr coit at the pd...if i don't get a call inthe next couple of days it will answer the question of whether he is a lazy incompetent or a craven liar pretty clearly...athena,just enjoy the joy of others,some marriages work well,i know of several.as to kids,my daughter turns five next week and is definitely less work...guess her name,your first thought is likely right.coffee thursday with mv? or friday?thursday is holocaust memorial day which somehow seems appropriate if we will be discussing the market.

 
At 5/22/2006 05:14:00 PM , Blogger Athena said...

Well that is a good name! ;-)

Friday is best. Out of town on Wednesday, making up for it to my team on Thursday, but will be available on Friday.

 
At 5/22/2006 05:39:00 PM , Anonymous tom stone said...

call it friday then,e mail me time and place...brooks brothers .or bomber jacket,beret or nra cap(i usually save it for trips to berkeley)?

 
At 5/22/2006 05:42:00 PM , Blogger Athena said...

jeans and a tshirt. will email the bat-time and the bat-place.

 

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