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  • Real Estate Is Not a Good Investment When Interest Rates Are Low [View article]
    Nice application of theory that has absolutely nothing to do with reality. Real estate values are driven more by scarcity than anything else. Try to buy a broom closet in Central London for less than $1M. Also while hard to measure, there is a fair amount of emotion in real estate purchases that isn't as frequently present in investment decisions - especially in the bond markets.

    Rates are near an all time low now while values are in many areas also near an all-time low. Ask just about any homeowner in Southern California. Where is the real-world evidence of an inverse relationship between interest rates and values?

    The fundamental flaw in the argument is an equivocation between rate of return on bonds and mortgage rates. The latter constitutes a rate of return for the seller, not the buyer.
    Nov 2, 2010. 02:25 PM | 2 Likes Like |Link to Comment
  • Future Innovation Is Undervalued [View article]
    I call BS as well. Please read fellow SA contributor Phillip Davis - when Apple manufactures an iPhone in Taiwan and sells it in Hong Kong, that does nothing to make American lives better - other than Apple employees' ESOPs.

    Quote from the above: "Innovation is about more than just making “new” things, it’s about making things that improve the quality of life for the masses." As the last two years have made abudantly clear, things do not improve the quality of life for the masses. Jobs do.
    Oct 26, 2010. 11:57 AM | 1 Like Like |Link to Comment
  • The Trouble With Unfunded Entitlements [View article]
    Y'all are living in Fantasyland. The Recession has raised my retirement age to 75, all on its own. Most people I know are in the same or similar boat.

    Good point on SS, Benny. I don't understand how an account that I've been paying into since 1969 could be considered an entitlement. Somebody's not thinking clearly, are they?
    Jul 23, 2010. 11:19 AM | 2 Likes Like |Link to Comment