Crisis? What Crisis?

Yet again…a soundtrack to this post! Click the little button below and enjoy:

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 I have no doubt this’ll date me…oh well. Once upon a time I was a huge Supertramp fan. I got introduced to them my sophomore year in High School and I thought they were cool. Naturally, I thought I was cool too because I liked them and they seemed a cut above all of the sappy pop music the other kids were listening to. I was convinced that listening to bands like Supertramp made me sophisticated! I had all of their records (remember those big, flat vinyl things?) and I saw them live several times. By the time I got to college they had boomed into a big successful mega band and were playing large arenas and stadiums after their Breakfast in America  record became a smash and almost everybody under 25 years old owned it. Remember though, I was into them long before all that! So I was really cool!

Why this trip down memory lane, you ask? It’s simple stream of consciousness. I was looking at the MLS yesterday and saw a number of sales that have happened since last Monday…the beginning of all this financial turmoil. Since the day Lehman Brothers folded and AIG got bailed out. When I saw those sales the thought came into my mind, Crisis? What Crisis?, and that naturally made me think about Supertramp’s 1975 release of the same name!

Since September 15, 12 properties have sold in Foster City. 9 of them condos/townhouses and 3 single family houses. All this in the face of the strongest media headwind I’ve ever seen! The same story has happened in our neighboring communities as well. 6 properties in Belmont, 16 properties in San Carlos and 44 properties in San Mateo have sold since last Monday. I know for a fact that in one case in San Carlos a home I showed some clients to got multiple offers and the house went over asking $35,000. Are these folks crazy of brave? Warren Buffett said this:

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

By the way, I assume that you all heard about Buffett investing 5 Billion dollars in Goldman Sachs last week when everyone was selling? Did you also hear that he made $783 Million since then on that investment? I don’t know about greedy here, but the folks who have bought in the last week showed real courage…and I’m willing to bet that most of them have been rewarded for it. The Mid Peninsula is quite simply an amazing place to live and if this area can have 66 sales in the last two weeks in the midst of spectacular doom and gloom what’s it going to be like when the dust settles and people here collectively regain confidence? To put it mildly…I think lots of homes will sell.

Meanwhile, I’m going to be listening to Supertramp a bunch in my car. (I’ve got them on CD now!) 

Comments

  1. David Saks says:

    Great album, Jim. ‘Goodbye Stranger’ is one of my favorite Supertramp songs. That’s a great band. One of the best guitar solos I’ve ever hear is on that tune. Thanks for the trip down memory lane, and hope your having a fine week.

    By the way, Buffet’s a smart man.

  2. Marie Sailor says:

    Sure wish I could be as calm as the guy in the photo : )
    Hope we can all come togther and do what is best for the whole country- Not just our individual circumstances.
    What about the homeowners who bit off more than they can chew taking some responsibility too??!!

  3. Love the picture! It should show the dude lounging on the floor of the senate.

  4. This might be related to this and it seems like the beginning of the crisis:
    San Mateo County loses $150M after Lehman Brothers bankruptcy.

    I was shocked by the news. I wonder who is the treasurer of san mateo country. Is he qualified to manage 2.7 billion assets? A reason must be given for school to pay for it.

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