New York Real Estate Priced by the Room

A friend of mine just returned from New York. He and his wife helped a lady unpack after moving into a nice 2-bedroom place in one of the Trump buildings. Not that we should care about this except the comment she made to my friend. It seems that right now real estate in New York City is selling for about $1.5 million per room. Thats not a misprint. That is the price per room not per house or condo. So the place this lady bought cost her about $4.5 million. She intends to live there about two years and then sell the place, make a tidy profit, and move back where she came from. I hope everything works out for her in light of the fact that I read yesterday that homes sales on the red hot east and west coasts isstarting to cool.

T-Bill Auction Results

Yesterdays report that the sale of 5 year T-bills was grossly underbid was not the most upbeat news. That would seem to indicate that foreign banks are growing weary of buying US debt. Maybe they know something that you and I dont. Since the government relies heavily on foreign investment to fund our ever-growing budget deficit, this little news item may cause some concern for those folks in Washington and it could mean tougher times ahead for us when we can no longer run down to Wally World and buy cheap baubles made in China.

Imports

Another worrisome note from yesterdays economic news is that the trade gap jumped by 11% in one month. The trade deficit occurs when you buy more than you sell and believe me, for several years now we as a country have been buying a lot more that we are selling. Imports of petroleum products are up 60% on a year to date basis. This is due to the devastation from the storms this year. According to the Minerals Management Service 51% of all Gulf oil production is still shut-in. That means it is unavailable for use.

Complacency Reigns Supreme

I guess more worrisome than all of these factors is simply that most Americans just do not care. We do not care what goes on in otherparts of the world. Many do not care what happens in other parts of the country. We are so consumed with working our tails off so that we can buy more stuff or pay for all the stuff we have already bought. We just dont have time to care about anything else. That explains why, when the government proposes some new legislation or rules that restrict our freedom in the name of safety, we just dont care. As long as we can climb into our brand new SUVs and drive around the country, we really dont care what happens anywhere else. But some day you will care and you will look back, rubbing the sleep from your eyes, and wonder how did we ever let it get this bad.

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