There’s always something to howl about.

Category: Group Therapy (page 41 of 81)

A Poverty of Imagination

One of the sad things about the modern welfare state – which I’d date to about World War I and really got underway with the New Deal – is that it’s caused a poverty of imagination. People can’t imagine what the world would be like without this or that government regulation or this or that government program.

For instance, I gently suggested below that three years of law school is a waste of time – and, in fact, most other common law countries don’t require it, and don’t seem to be imploding. I also suggested that maybe some rules should be loosened.

You merely need to look at the comments section of that post to see the handwringing about what would befall our great civilization if there were under-educated or incompetent lawyers!

This is what I meant when I said that people prefer security over freedom. You’d think, by suggesting that three year law schools (which have only been in existence since the 1930s or so) should be done away with, I was suggesting a return to the dark ages,

“I’m all for free markets,” people say. “I just think a free market depends on [insert this or that government program] to ensure [this or that value].” As if, granting the premise that a free market depends on those things [it plainly does not, because a free market depends on nothing but the free, unfettered interplay of billions of human beings], government has any reasonably good track record of providing any effective program that produces a desired value.

There are awful lawyers today. There are also awful cosmetologists, auto mechanics, plumbers, farmers, shopowners, etc. etc. Let’s have regulations for everything until every sector ends up like the health care industry.

This video is instructive. Watch to the very end. The woman’s rejoinder is a perfect encapsulation of the Poverty of Imagination mindset I describe above.

Wall Street Journal: “A home is a lousy investment.”

Ahem: “Today’s young people would be foolish to imitate their parents and view ownership as the cornerstone of personal finance.”

From the Wall Street Journal:

At the risk of heaping more misery on the struggling residential property market, an analysis of home-price and ownership data for the last 30 years in California—the Golden State with notoriously golden property prices—indicates that the average single family house has never been a particularly stellar investment.

In a society increasingly concerned with providing for retirement security and housing affordability, this finding has large implications. It means that we have put excessive emphasis on owner-occupied housing for social objectives, mistakenly relied on homebuilding for economic stimulus, and fostered misconceptions about homeownership and financial independence. We’ve diverted capital from more productive investments and misallocated scarce public resources.

Between 1980 and 2010, the value of a median-price, single-family house in California rose by an average of 3.6% per year—to $296,820 from $99,550, according to data from the California Association of Realtors, Freddie Mac and the U.S. Census. Even if that house was sold at the most recent market peak in 2007, the average annual price growth was just 6.61%.

So a dollar used to purchase a median-price, single-family California home in 1980 would have grown to $5.63 in 2007, and to $2.98 in 2010. The same dollar invested in the Dow Jones Industrial Index would have been worth $14.41 in 2007, and $11.49 in 2010.

No need to pass these facts along to the National Association of Realtors. They already know.

SplendorQuest: A real-estate professionals’ guide to anarchy in the USA

Kicking this back to the top. This is what independence means — independence from the tyrannical intrusions of government. You’ve been trained your whole life to recoil from ideas like this, but there has never been a better time than right now to ask yourself this question: How is the dispute resolution system you have in place now working out for you? — GSS

 
I thought about making a short movie addressing a host of common questions about the political philosophy we’ve been discussing, but I decided to undertake the task in text, instead. A video would be faster for me, but not so much for you. Plus, text is easy to search and easy to revisit, where video can be ungainly. So: FAQ-style:

What does this have to do with real estate?

Human liberty begins when you have a redoubt that is yours to defend from any would-be usurper. That’s real estate, and, as I write every year at Independence Day, the civilizations we associate with human freedom are those where ordinary people had the power to claim, own, use, enjoy, buy and sell the land. If you want for a real estate weblog to concern itself solely with surface-level bread-and-butter real estate news, you’ve come to the wrong place. If, on the other hand, you want to learn how better to defend your liberties, including your power to buy, sell and broker real estate, stay tuned. None of this is easy, but it is fundamental for understanding real estate as philosophy.

Isn’t anarchy a creed of chaos and violence?

1. No, that would be socialism in its collapsing phase.

2. No, that is what you have been told by people who want you to volunteer to be their slaves and toadies.

3. No. Anarchism as I define it is the politics of egoism, which itself is the ethics of self-adoration. People actively pursuing self-adoration will tend to avoid chaos and violence except when chaos and violence are the only means of avoiding even worse fates. When might this be the case? When socialism undergoes its collapsing phase, for example.

So what is anarchism “as you define it”?

What Read more

Private ownership of the land is the source not just of our freedom but of our civility and of our humanity itself

Kicking this back to the top. Happy Independence Day! — GSS

 
This from my Arizona Republic real estate column (permanent link):

The “cap and trade” bill that passed in the House of Representatives last week contains within it the seeds of a national building code. It rarely rains in Phoenix and it rarely fails to rain in Portland, but both cities will build new structures according to the dictates of some Washington bureaucrat.

Drive along 19th Avenue in Phoenix and you’ll pass block after block of condemned houses. They were taken by the city for the planned light rail expansion, now delayed. The neighbors are left to fight off the kind of vermin vacant homes attract while they worry what that blight is doing to their home values.

In Glendale, the city government is doing everything it can to prevent the Tohono O’Odham tribe from developing its own sovereign land as a casino.

The essence of the freedom we celebrate on Independence Day is the free ownership of the land. The Hoplite Greeks fought and died to protect their own lands. The Roman Legionnaires fought and died because their farms were their own property. A Cincinnatus — or a George Washington — lays down his arms because being a dictator is nothing when you can instead be a freeholder in the land.

The essence of our freedom is the free ownership of the land, and yet everywhere we turn, private property is subjected to one law after another, and everything that is not forbidden is compulsory instead.

This is a grievous error. The men who become Brownshirts or Klansmen or Khmer Rouge — the men who make up murderous mobs — are men without land. It is the husbandry of the land — each man to his own parcel — that most makes husbands of us, that sweeps away our willingness to live as brigands or rapists or thugs.

By robbing the private ownership of the land of its meaning, the state is, by increments, robbing its citizens of their humanity. No one burns down his own home, nor his neighbor’s home. But when the time comes that we Read more

What would Greg Swann do? Integrity, transparency and Web 2.0

Kicking this back to the top in response to Chris Johnson’s post on bribe-offers from vendorsluts. — GSS

 
Hey, y’all! Are you in the mood for a truly incredible offer?

You’ve seen the kind of single-property web sites we do at BloodhoundRealty.com. Dozens of pages. Hundreds of photos. Maps, movies, PDFs, off-site links — the works!

What if I were to tell you that you could have a single-property web site just like ours — with your choice of style templates and your own domain, hosted for a year — all for just $99.

Or, for just $99 more, I’ll mimic your weblog’s theme. Your single property web site will look just like your weblog — to promote and protect your brand identity.

That’s actually not a bad business, and I already have everything I need to start it. The software we use to build our single property web sites is called engenu. I give it away for free, but no one uses it. If I built it to be forms-based with everything hosted on our servers, it would be easier — but much slower — for end-users, and I could make a ton of money milking Realtors by selling them the same thing over and over again.

Why not do it?

Because it’s a piece of everything I hate in the real estate industry as it is presently comprised. It’s the vendorslut syndrome in action. I write a piece of software, then sell it to you over and over again, taking a huge profit every time you pull out your credit card. You get pitches like this every day — with the difference being that our single-property web sites are a lot richer in content than the ones you can buy from sleazy vendors.

I’ve been wanting to write a post about leadership in the RE.net. I don’t like hierarchies, or none beyond the sort of adhocracy that works so well in the Web 2.0 world. We are thought leaders at BloodhoundBlog because we think wisely and well — and write wisely and well — about issues that most other people prefer to skirt.

But: I don’t kid myself: Read more

Unchained melodies: Melanie’s Babe Rainbow

Art is the stuff that sticks with you. Art is the thing that makes a permanent change in who you are. This song has been with me since I was a teenager. It’s never been of me, but it’s something I’ve always understood — even more since I started selling real estate for a living. It might-could have that impact on you, too.

It’s a waltz, 6/8, cdfc. Couldn’t be simpler. And yet I have this song in my head — in my soul — all the time. This is Melanie exposing the universe through the lens of her own life, and by making her life so real, so raw, so painful and yet in the end still so palpably redeemed — this really works for me. This is what art is for…

The old luxury creme puff goes bye bye, frustration, and a sedan

It’s been a nearly 3 weeks since I sold my 99′ Cadillac V8 Luxury problematic SeVille!  The car looked great but like a blonde haired, blue eyed beauty looks can be deceiving.  I got a fair price for the Caddy and I was happy, until I went to the bank after I sold it to find out what slightly used car interest rates are going for.  My credit is good and I was getting quoted 17% +/-.  My problem was, I only wanted to borrow, $5,000 max for a used car, the rest I was going to pay for in cash.

I searched endlessly for a clean used car in South Florida, boy was the joke on me.  I would arrive at dealers who wanted between $600 to $1,000 dealer fees on top of the price of a car.  I then went looking at private sale cars to get away from the dealer fees.  I found one liar after another, I’m referring to the private party seller.  I had literally given up my car search in complete frustration of FEES, LIES, and INTEREST RATES.

My wife was going nuts explaining that we need two cars, so I begun my search again.  I found a nice little cream puff (the car).  It’s a 2005 Honda Civic which looks great, and my mechanic gave me the two thumbs to go ahead and buy the car.

So you might be thinking, how in the world, can I go from Leather seats and spacious to a typical compact car?  The answer is, I frankly don’t care what clients think of me pulling up in a Honda Civic versus a Cadillac.  I wasn’t about to pay outrageous dealer fees, I found  a half way decent and partially lying seller, and I paid cash for the car instead of off the chart interest rates; so that is exactly how I arrived at a 2005 Honda Civic.

You know what I also learned from this experience since it’s nearly been over 4 years since I bought a car.  Don’t charge hidden fees, Tell the truth, and charge a fair fee or commission. Read more

Lay down with dogs and you wake up with fleas? Worse. If you decide to rape the taxpayers via NAR’s RAPAC scam you get… plague!

From the Phoenix Realtor Forum, the monthly newsletter of the Phoenix Association of Realtors:

Alas, the plague is a swarm of vampire-like locust Realtors. These are RAPAC’s objectives, according to the article, with interstitial commentary by me in bold text.

  • Mortgage Interest Deduction: NAR opposes any changes that would limit or undermine current law.

    That is, people who don’t buy homes on credit, including people who own their homes outright, people who rent and working poor people living in mom’s basement or in their cars, should subsidize the incomes of very wealthy people. If this doesn’t make you sick, you’re much too sick already.
     

  • Capital Gains Exemption: NAR opposes any changes to the capital gains exemption on the sale of a home.

    How much does the NAR hate real property? Why isn’t its position to eliminate all taxes, or at least all taxes on real estate?
     

  • Depreciation/Tenant Improvements: NAR supports efforts to establish a permanent rule that more accurately reflects the depreciable lives of buildings and to conform amortization periods for tenant improvements more closely to the term of the lease.

    More tax subsidies for the rich, rather than getting rid of taxes altogether.
     

  • Government-Sponsored Enterprises: NAR is recommending that Fannie Mae and Freddie Mac be converted into government-chartered, non-shareholder owned authorities.

    Because it’s harder to hide the corruption if the SEC is pretending to pay attention to FannieMae and FreddieMac.
     

  • Mortgage Loan Limits: NAR supports making the current higher loan limits and formula permanent.

    Rich people need more subsidies!
     

  • FHA/Federal Housing Administration Programs: NAR is a strong supporter of FHA’s single- and multi-family programs.

    Poor people need subsidies, too!
     

  • NAR Credit Policy: NAR is calling on the credit and lending industries and regulators to reassess the entire mortgage lending policy structure and look for ways to increase the availability of credit.

    Because not enough unqualified buyers were rooked into buying homes they couldn’t pay for the last time we pulled these stunts.
     

  • Short Sales: NAR continues to push the lending industry to expedite short sales.

    Criminal penalties if they don’t? Don’t laugh. Government is nothing but force. If we are doing anything other than negotiating by means of the persuasions of the free market, one party is Read more

My life as a dog: Five years of BloodhoundBlog.

Tomorrow is the fifth anniversary of BloodhoundBlog. Here is where we started, with a question that haunts me to this very day:

If almost-as-good is free or nearly free, what is the market value of slightly-better?

At the time that we launched, Zillow, Trulia and Redfin were new kids on the block, and traditional Realtors were casting a wary eye over their shoulders. It was an interesting time to write about real estate, even though some of what I wrote in those days seems comically stoopid to me by now.

(Caveat lector: Our archives always repay effort. I could wish that someone would comb through them and pull out the true gems — the category Enduring Interest is crying out for such a treatment. But even without that helpful handiwork, if you haven’t learned everything we have taught here, you could do worse than giving our posts over the past five years your regular attention.)

I love this place, and I love the work we have done here, but I can’t revisit the history of BloodhoundBlog without some sadness — and sadness is an emotion I’ve wanted for my whole life to know nothing about. But it remains that my most important goal for this weblog — unchained Realtors — remains unfulfilled.

Too much the contrary. Most of the people who were writing in the RE.net when BloodhoundBlog was young are on the slave-master side of the table by now, either as vendorsluts, Judas goats — or both. It’s not hard for me to deplore this outcome, but none of it would be possible without the active participation of the slaves, who line up to be yoked with an ox-like complacency. Despite all the opportunities technology affords us to break free of the brokers, the NAR, the Inmannequins, et infinitely cetera, there is something about most Realtors that seems to crave dependency, subordination and the attendant exploitation.

In response to this outcome, I must admonish myself with the words I have deployed on so many other people over the years: Cultivate indifference. For five years and more, we have been just that close to smashing all the Read more

“People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying ‘no’ to 1,000 things.”

Steve Jobs in Forbes. One of the most hateful precepts of socialism is the idea of existential equality. We are all equal politically, but in the things we do with our lives we are very different. The world we live in is much richer because Jobs is alive now, too. We will be poorer when he shuffles off this mortal coil. The best thing we can do — for ourselves, for our businesses and in tribute to the best the human mind can achieve — is to learn to think as Steve Jobs thinks.