Whats the deal with Charles Schwab? CEO seemed pretty convincing on MSNBC that they were unaffected but testing new lows.
I have no information on the topic, but I am 100% sure he would not go on TV if he couldn’t be convincing.
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The fact that he’s going on tv in the first place might be enough to spook investors. And pretty much every ceo of every company that has gone bankrupt was saying “everything is fine” 5 minutes prior. (Not saying Schwab is going bankrupt or anything like that)
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Exactly, if you can’t tell that kind of lie convincingly then you don’t get to be a CEO of a big company.
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Umm, my companies stock purchase plan is through Schwab. My shares are safe if they go under right?
Yeah, probably. If a broker goes bankrupt usually all the shares and stuff just go somewhere else. YMMV.
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the ceo was claiming they’d be fine if every bank deposit was pulled popcorn.gif
Plenty of housing is being built where I live, but it’s all luxury apts and condos starting at over a million.
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Like, more townhomes and smaller houses? That’s already happening as much as it can.
Cost/SF for builder grade is like $120/SF compared with upper-mid level housing at like $180/SF in my market (Atlanta). The difference is in land cost, housing type, size, etc.
Sale price is $200/SF for builder grade and $400/SF for upper-mid level housing (what most of us would consider luxury).
Land cost typically stabilizes to 20% of the gross sale price (ready to build land), so then land is valued more based on the number of units you can entitle on the land rather than the actual intrinsic value or whatever. Raw land is some fraction of that, mainly constrained by the market it’s in and zoning.
Liberalizing land use is the best answer. If you can build one home per 1/3 acre or whatever you’ll get SFH built out to the maximize the sale price of whatever the local market can bear. Land costs will more or less automatically adjust to that number. Builders will make the biggest and best product they can sell. But if you can built 8 townhouses per acre then you’ll be profit-maximizing with smaller, cheaper units than if you can build 3 SFH per acre.
But municipalities don’t want that because of obvious racism-related reasons that are often why Americans Can’t Have Nice Things.
Property prices are so high in cities now that it’ll just be a slightly “poorer” upper middle class family moving into the townhouses if you allow them to be built.
yeah stephen curry was trying to stop some low income townhouses that will cost millions from being built due to safety concerns for his kids
And everyone else will be homeless. it feels like policy makers have kicked the can down the road for so long that now they are backed into a corner and every decision has potentially really bad outcomes.
Lot’s of countries have mastered long term housing policies based on luxury and slums and nothing in between.
The US NIMBY folks virulently oppose slums that are within eyesight but the US will probably come up with a great solution like a giant wall or moat or something. The Greatest Country In The World.
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“And nothing in between”
Can you expand on this?
My extensive experience of developing world cities is primarily Manila. There is LOTS of new housing that is aimed at the cheap end of the market.
I haven’t been to Manila in about 20 yrs. When I went I stayed with friends in Makati. As I recall there was quite a difference between Makati and immediately outside Makati. Maybe I’m remembering wrong or things have changed.
Absolutely theres a difference. Buts its gradations.
You have expensive condos in makati that might sell for a 800k USD at the cheapest. Neighbourhoods out mostly have older housing that would sell for 100k to 400k. That’s hardly slums.
Also. Lots of new developments in the surrounding areas. Massive blocks of smaller, cheaper apartments going for 100k or so.
Theres also lots of developments further out fron makati that are set at an even lower price point again.
Unless you have regulations imposing limits, the market will provide a range of price points based on demand. I see it largely working out like that.
Ah, good question. I was referring more to the housing situations (I’ve seen examples in India and Mexico, I’m sure it happens elsewhere) like the picture in my post where there is physically nothing in between slums and new housing developments.
Portland’s exploding homeless population is well-documented but guess what? We’ve got a brand new Ritz-Carlton luxury hotel/condo building opening up any day now right downtown. Plenty of $6-9million condos on those top floors! Seriously.
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