cageordie

Man in the Street: Why Not Prosecute CEOs?

It took a taxi driver to bring this to your attention? Haven't you been reading the news in the last five years? The wanted poster for my former CEO graces my office wall, but he's safe and sound in Sweden with the millions he stole from the company. Even worse for the company, we, and effectively all those small share holders, were fined by the SEC for his misdeeds and had to pay for the former execs lawyers. So we were swindled and fined for the pleasure. But you knew this already, you know how the scam works? Right?

Today's Negative-Equity Update

What we are seeing is a return to the harsh economic reality that in the long term people can only afford to pay about three times their income for a home. That's all there is to it. So for my area, SF Bay, where home prices are up to twelve times current household incomes, this means a massive and ongoing decline. People will come up with all sorts of exotic theories for why that can't be so, but in the end the prices can only be paid by a buyer who can afford them.

I'd say Zillow's prices are accurate, or at least close enough. More than good enough for tracking trends.