This is the second in a series of business related posts that I have done. Before I go on to describe what this graph is about, I would like each of you to take a moment and in the comment section briefly describe what is going on below. There are no right or wrong answers, just tell me what your first inklings are:
the real estate market provides really a fascinating "laboratory" for us scientists.This graph is a nice summary of the supply/demand dynamics of the interesting (though trivial and simplified) DiPasquale and Wheaton model. What is important to me here is the following: real estate markets, like all markets, can quickly become highly saturated and quicky coagulated. That is why we need the government to impose rent control in many of our urban areas so that artists, thinkers, and illegal immigrants, who make up for their lack of cash flow by creating vibrant and progressive communities, can have some prime real estate in very popular areas. I think DiPasquale and Wheaton would agree. I'm excited to hear what Dinky and Dmitry have to say!
ReplyDeleteA strange version of connect-the-dots?
ReplyDeleteSorry, I can't take the time to properly analyze this because I'm too busy trying to cure cancer.
@ FW: You are very close in the beginning before the latter propaganda type stuff.
ReplyDelete@ Nina: Actually yes. Appreciate your time doc.
My first inkling:
ReplyDeleteThis graph is to show how big o a douche BM is. the Y axis shows the measure of "coolness". the Top being LeBron James, the bottom being Spencer Pratt. As you can see from the graph, when the blog first started (the X axis is a measures time passage after this blog started), BM was at medium coolness. Not quite LeBron, more like a "Turtle" from Entourage. since the blog started, the ego has grown and is now unstoppable. Around the 6th follower, is where the BM was at a medium coolness. Now, the BM has digressed to medium douche, like that of a "Kobe Bryant".
You are all welcome.
@William: very poignant analysis. i think you are spot on, and also very handsome.
ReplyDelete@Dinky: i wish u werent big-boying us all here on this post. i know your hourly rate for business advice is in the 4 figures, but you could throw us a bone here.
My first reaction to the graph: The saturation of rent and the coagulation of construction. These two issues are very prevalent in the current economy, especially following the housing bubble bursting (Bush lied, people died anyone?). We need less saturation of rent and we need to look to data metrics to determine if the Posey/Sandoval Curve is applicable to the saturated market of housing/construction/rent/etc.
ReplyDelete@ William I agree with your take and analysis. BM has digressed to medium douche, although I think a strong argument can be made that he has PROGRESSED to a colossal douche by extracting the asset market: construction from the overall asset market.
ReplyDelete@ Falstad This is the sole blog where I routinely give my opinion for less than the going rate. I enjoy the progressivity of this blog and its adherents. Although I think BM is totally off-base and going the right way for a smack bottom if he adheres to this graph and it's reliance on the assumption of a non-saturated market, which we all know is something we can't assume!!!! HAHAHAHA
@ DR/1: Your answer is spot on where you said "data metrics". That's about all that is needed.
ReplyDelete@ All: Alot of people think that I am becoming a douche. To those accusations I respond no. I will always be a man of the people (even as my income grows at a rate that increasingly differentiates and separates my knowledge of that same common man's issues aka bush lied, people died.)
@ BM money is the root of all evil...
ReplyDelete@Dink: the Posey/Sandoval Curve is a really under-utilized and oft-forgotten standard for assessing the ups and downs of the real estate market - thank you for bringing that to the table - maybe if the corporate crooks from goldman or BM, himself, had stuck to the fundamentals that this Curve emphasizes we wouldn't be Bailout Nation right now.
ReplyDelete