Trends

[SHELLY]

The more I think of it, the $800 will likely go to pay the existing bills, which more likely helps out the lenders, rather than actually increasing sales of goods.

Bernanke was actually saying that during his hearing yesterday. He said that during the last "Free Money Giveaway" too much of it went to paying off debt or went into savings and didn't quite stimulate the economy as much as they wanted. That's why they're thinking how they can get it into the hands of people who will go out and plunk it down on an iPod, a 4-course family dinner at Red Lobster and new set of rims for their "ride."


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[fisher]

Fisher -

Again I would use the cost basis to value the dirt. Cost of infrastructure alone (roads, sewer, storm water retention, utilties, etc) in sowal runs about 30k per lot for your basic community, then add the cost for the dirt within 1/2 mile from the beach - thats probably worth 40k per raw lot in todays market in no specific premium location, maybe 30k at rock bottom wholesale price. So a baseline cost of around 60-70k cost with no Amenities. Add Watercolor equivalent amenities and your easily at a lot cost basis of around 250k per lot. A community like old florida village would run about 100k per lot total cost basis.

Replacement cost is difficult to determine in a market where land prices are crashing and construction costs are falling. Replacement cost one year ago was much higher than replacement cost today and that trend could easily continue for a while. If there was no standing inventory of lots, your analysis would be reasonable. However, there is a glut of standing inventory which is likely to be sold at well below the cost of development (eg:Naturewalk).

 

[Bob]

Bernanke was actually saying that during his hearing yesterday. He said that during the last "Free Money Giveaway" too much of it went to paying off debt or went into savings and didn't quite stimulate the economy as much as they wanted. That's why they're thinking how they can get it into the hands of people who will go out and plunk it down on an iPod, a 4-course family dinner at Red Lobster and new set of rims for their "ride."


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That Ipod and dinner are fully 65-70 percent of our economy.

 

[SHELLY]

That Ipod and dinner are fully 65-70 percent of our economy.

:roll: Gee...do you think we can work that into our National Anthem?

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[NotDeadYet]

That Ipod and dinner are fully 65-70 percent of our economy.

Exactly. Along with Chinese toasters. And that is the problem, IMHO. Or one of the problems, anyway.

 

[TreeFrog]

Forget it...just go walk the beach tomorrow and leave the numbers behind.

After looking at the Dow for the week, I did just that. It didn't help my bottom line, but my attitude and the dog's both improved.

 

[Yellow Hammer]

Tinting Messes?
uhh...Clinton Confesses
or.....benching presses
or.....blue stained dresses
or.....venting stresses

 

[Mango]

:roll: Gee...do you think we can work that into our National Anthem?.

And the IPODS do blare, the credit bursting in air,
Gave proof through the night that our flag was still there.
O say, does that star spangled banner yet wave
O’er the land of the spending spree, and the home of the brave?

 

[scooterbug44]

That's the reason the "Stimulus Package" will work on the American public...they'll say "WHEEEEE! Free Money!!!"....then later it will be :shock:

Bought to you courtesy of the American Edumakatum and Banking Systems with the help and support of the debt-hungry family.

It's really sad how little people know about the basics of money and financial planning.

The concept of "saving for a rainy day" and "if you can't afford it, don't buy it" are completely foreign to most people. That and only using credit cards for emergencies UNLESS you pay them off in full every month.

The WTF looks I get when I gently suggest that if you haven't paid off your student loans or house, maybe you don't need to be leasing a Mercedes or buying Louis Vuitton purses. :roll:

 

[Smiling JOe]

In some cases, paying off one's house may not be as financially sound as paying the mortgage. If you can borrow the money at let's say a rate of 5.5% (today's rate), and write off 25% of that, the actual cost to borrow the money is 3.75%. There are other investments which should yield a greater net than 3.75%. So, one would need to do the math to decide which is better, paying off the house, or investing the money into something else. While buying a purse or leasing a car is not an investment, those are lifestyle choices and some people have no problem being able to afford the luxuries even though their home is not paid off. Of course, in your example, you are probably referring to the people who cannot afford the luxuries, and are living beyond their means.