Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (51579)	5/21/2000 11:42:00 PM
From: westes	Read Replies (2) \| Respond to of 99985

The housing in the Bay Area has always been expensive. The reason is very simply that there was very little land to build on and there was more demand than supply. I've lived here for over 20 years and I've watched real estate ups and downs, and never has it been cheap. The market bubble of the last two years simply turned it from expensive to wacky. Now the Bay Area is not expensive. Now the Bay Area is wacky bubble-economy this-is-lunacy expensive. An $80K salary is not on the lower end of the pay scale. Get a salary survey and prove it for yourself. $80K is low end for a NASDAQ 100 company in the engineering department. That's not representative of the economy as a whole here! The salary surveys put even median engineering salaries around $85K. I'm an employer, and I live and die by those surveys, so I am not making this up. I agree regarding housing that we are due for a huge correction, particularly if the NASDAQ corrects further and stays down for a year. The practice of dilutive stock options would not survive long in an environment of declining stock values, if the correction ended up being multi-year. The entire thing is a sleight of hand that most shareholders approve of only when the stock is going up. Imagine Coke diluting shareholders by 5% each year and then claiming they had to do it to stay competitive. The whole thing is kind of wacky but I do understand that companies must do it to compete.