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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: John Vosilla who wrote (47704)12/19/2005 2:01:43 PM
From: ahhaha  Read Replies (1) of 110194
 
No my friend I equate it(bubble) with lack of cash flow that the asset can generate relative to history.

Assets don't generate cash flow.

If demand was real and not artificially juiced it would be reflected in increased rents and cash flows.

You can't discern between "real" and "artificial" here. It's just your whiskey that's talking. In fact, it isn't possible for anyone to so distinguish, so why would you presume to do so? Wide empty spaces.

You obviously are a novice regarding real estate.

Huh?

Were you this optimistic on tech stocks that most of you long term SI gurus were so hot on in the late 90's?

I was never optimistic on bubblers whether they hide in gold or tech.

Do you know the whole commercial RE market collapsed last cycle too even with expected operating cash flows in the 9% range?

What "crash"? Average home prices have risen without stop since WW2. You can get the proof by going to Economagic.

Do you know most bubble RE today generates 1-4% operating margins/cap rates?

Rising price does not equal bubble or the bubble has been expanding for 6000 years. This use of the term, "bubble", is much like the use of the term "black hole" in astrophysics. There is no hole and it can't be black. It's just another mythical invention to refer to what isn't fully understood.

Do you also know that much of the country is not in a bubble, this is regional issue and prices are dirt cheap?

Did you know that you've just given a proof that no region has what you call "bubble" characteristics? Don't you know what "location, location" means? If you think you do, then why not put that in terms of margins per cap rate?
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