Hat tip to Ben’s commenter housegeek (scroll down) for this [1] outrageous find. The article, from tomorrow’s Sunday New York Times, is a brilliant piece of propaganda designed to coax single women to buy into the unstable condo markets of Dumbo and other Brooklyn neighborhoods. Here are some examples of how the author is persuading young singles to catch a falling knife.
Some women said that they felt their friends were better market indicators than any statistics that point to a downturn.
…
While Ms. Brenner encouraged Ms. Montaigne to buy, Ms. Brenner had some reservations about the neighborhood. In the spring, Ms. Montaigne went to dinner at Ms. Brenner’s and encouraged the Brenners to move to Dumbo. The next weekend, the couple checked out the building for themselves.
…
“There’s a certain amount of evangelism that goes on,” Ms. Montaigne said. “There are so many people who moved in because they knew someone else who bought in the building.”
By midsummer, Ms. Brenner and her husband, Michael Brenner, had put down a deposit on a $1.2 million one-bedroom. Ms. Brenner said she was now confident that the neighborhood had enough momentum and that apartments in Dumbo would keep their value.
Some women treat buying in a declining market as another stage of friendship, like making it through the college application process. Alexandra Dib, a 33-year-old food and wine consultant and jewelry designer, told friends about her new apartment at her recent baby shower. She and her husband, Said Dib, 45, the managing director of a global apparel firm, bought a two-bedroom, two-bath apartment for $815,000 at 110 Livingston Street.
The article makes buying a Brooklyn condo sound like entering the fantasy world of a glamorous sit-com. For many of these young women, things will be quite different when they wake up from this MSM-inspired dream.
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Notes and References
[1]: "Women Unafraid of Condo Commitment", by Christine Haughney, New York Times, December 10, 2006.
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*Sigh* Trying to wring the last bit of cash out of the handful of remaining GFs.
I’d earlier suggested (tongue in cheek) that the REIC might consider printing up colorful sales/lending brochures in spanish, and dropping them from airplanes along the US-Mexico border. I had assumed this was the last potential pool of GFs. I was mistaken.
Shameful. Positively shameful. The message is clear: “Leap! The market will catch you!”
John, Thank you so much for keeping me from making a big mistake. My wife really wanted to buy a place in NY City for Christmas, and even though, as an avid doom reader I knew it could go down in value, I thought….what the heck…how much, over a reasonable time, has been lost buying lofts and walk-ups in the NY City area? Gee, I was sure in 1974 that $120 k for that 2/2 right by the park was an awful investment, so I’ve been wrong before.
Then I read your posting about the article that could “ruin lives”. “Dumbo”, interesting name. I am glad you are so careful and concerned about what your readers might over-react to. So I also read your recent postings by that very smart guy Mr. Smith on the side bar,…the one with all the clever charts I can not read…you know the one who trys to look like that guy who wrote “Fear and Loathing”. I think he is a writer or actor or economist or something. After that I took the money we were going to use to buy the NY City place and instead bought gold by using the link he so kindly provides on his web page. At least now I’ve invested in something that has a proven track record of providing strong, consistent returns and is not risky like real estate. Right now my wife is hoping to use some of the new gold on a boating trip we have planned. She has it in a nice bag tied with a big, long rope. She was wondering if you could join us? Thanks again, your friend, Old Mike.
Old Mike -
Feel free to take Smith or any other sidebar author (credentialed or not) with a huge grain of salt. The sidebar has lots of goldbugs because they are interested in bubbles in competing assets (like RE). For the same reason, there are lots more Rightest sources than Leftists (the former are just more interested in business).
Gold is a terrible commodity, and my country is a leader [1] in creating regional environmental catastrophes wherever the stuff is found. Keen investor interest in gold is a symptom of deeper distress in the economy.
As far as the NYT piece is concerned, my outrage was based on the text as a brilliant piece of propaganda. The MSM is chock full of similar stuff, but this example was really good. I’ve been influenced in this area by the 20th Century French thinker Jacques Ellul. You might find some of his works useful.
So sad about your wife’s Christmas gift. Perhaps you can pick up something near the Park in January after the hedgies have run through their bonuses.
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[1]: “Stepped-Up Battle Against Andean Gold Mine”, by Daniela Estrada, IPS News, December 6, 2006.
John, thanks for the quick turn around, but as you know, my point is that propaganda exists in both the MSM and your medium, the Blogs. Readers can be mislead both places. Truth be told the Blogs have a far worse reputation than the MSM, and deservedly so. Unlike the MSM, blog opinions all too often have absolutely no qualifications or expertise attached, and frequently the blog editor, because he is similarly situated, likes it that way. I do not consider HousingDoom one of those Blogs.
I have not looked at the left/right balance of your “relevant articles”, and doubt we would agree on the definition of left/ right anyway. But you tend to post warnings or snide comments on anything remotely favorable to real estate (See “Orlando”), but treat blog articles by absolute head-jobs with either no comment or as if they are written by Nobel winners. “Fair and balanced” is more than a MSM slogan. I just thought worrying about the NYT article “ruining lives” while putting up yet another Smith article(especially with the gold purchse link) all in one week, was too ironic\, even for a guy who likes French Philosophers and Canadian winters. Turns out the wife likes gold, as long as its fashioned into jewlry. Hope I can beat the banking boys to Cartier. Nothing measures better than success.
Igor was watching me “Explode!” on this one
The NY Times’ publishers must know that it’s this very packaging up of their own readers to their advertisers is what’s helping their readership and influence deteriorate. What follows is just another example of the same economic war crime two years on.
“Maybe It’s Time to Buy That First House”, by Ron Lieber, New York Times, December 5, 2008.