May 15, 2010

Poor families in Palo Alto – can you help them?

http://paloaltoonline.com/square/index.php?i=3&d=&t=11481 

Posted by Worried Mom, a resident of the Midtown neighborhood, on Apr 30, 2010 at 3:40 pm

Thank you all who replied. We do not have savings to pay even for 25% tab for private college costs for both of our kids. We have a house in Palo Alto which we bought 4 years ago and we spend a very significant portion of our income on mortgage and property tax.

We save 10% of our earnings for retirement, we absolutely do not have room for college savings in our budget. How do families who jointly make around $250K a year before taxes manage to afford living in Palo Alto and save enough for 2 kids college education. I can’t get the math.

Thanks to Burbed reader Herve for this find. If you’re not outraged, then you should be. When did they start allowing families that make the “upper working class” salary of $250k to live in Palo Alto?

Truly, truly, outrageous.

Tags:
Comments (152) -- Posted by: burbed @ 5:06 am

152 Responses to “Poor families in Palo Alto – can you help them?”

  1. SEA Says:

    Worried Mom is not a real resident of Palo Alto. She probably lives by the train tracks, at least one busy highway, power lines, and more than likely, people plant veggies nearby.

  2. maryjane Says:

    The schools in Palo Alto are so good the kids don’t need college. Just get a RE license and you’re good to go.

  3. Real Estater Says:

    There are a good number of “upper working class” in midtown and south Palo Alto. Things get different as you cross the Oregon Expressway.

  4. CB Says:

    From the comments:

    I often recruit from San Jose State University for my company, and while the students are mostly all very hard working and good kids, they are of different background, upbringing and walks of life, many are children of first generation immigrant parents and did not get the cultural exposure many Palo Alto kids were fortunate to get. Few traveled extensively abroad, few went to opera or symphony, few had Stanford professor parents, few had a chance to sit next to a Stanford professor at family dinner and talk about politics, so all these experiences shape the personalities of many PA students, who indeed will feel out of place amoung SJSU students.

  5. Real Estater Says:

    From the same thread, there’s an interesting discussion around the student body of state colleges, alluding to the fact that kids from other neighborhoods don’t have the kind of well rounded education that PA kids got:

    >>I too, am concerned about academics for my children here. But I do not want them attending state colleges, as I attended SJSU and was not happy with the student body. I felt that the students were not of the aptitude and upbringing of the Paly students and felt out of place.

    >>I actually agree with Paly Alum about State Colleges and the type of student body there.

    I often recruit from San Jose State University for my company, and while the students are mostly all very hard working and good kids, they are of different background, upbringing and walks of life, many are children of first generation immigrant parents and did not get the cultural exposure many Palo Alto kids were fortunate to get. Few traveled extensively abroad, few went to opera or symphony, few had Stanford professor parents, few had a chance to sit next to a Stanford professor at family dinner and talk about politics, so all these experiences shape the personalities of many PA students, who indeed will feel out of place amoung SJSU students.

  6. Insecure techie Says:

    Worried mom,
    You definitely don’t sound like a Disneyland resident. There is no worry in Disneyland – no layoff, no recession, no snow. When you are living in Palo Alto, the future of kids are guaranteed. Stanford has preference for Palo Alto kids. Looks like you bought your home in 2006 – at the peak of housing market. But no worry. As our real estate expert said your house is long long long long long looooooooooong term investment. RBA home price is backed up strong fundamentals. You just need to wait for double digit appreciation. On average home price doubles in 10 years. Even NAR said the same thing. Got to be true. You just need to wait ONLY 6 more years to see your home value doubling.

    You are paying “significant portion” for mortgage and property tax? That got to be lie. No RBA resident could do that. Remember, RBA is Disneyland? If you are Disneyland resident, your “monthly Visa bill” should be higher than your mortgage. If you are Disneyland resident, you should be spending more money for “kids to learn art, swimming, karate, ice skating, after school care, and various academic pursuits”. So, when you say you are spending “significant portion” for mortgage and property tax, it just does not add up. I don’t believe it. You are hiding something. I understand that median household income of Palo Alto is only $108K, but don’t tell me that you are earning only that little (and not $300K per year). If you want to be truthful just say –
    1. “I am not spending “significant portion” of income for mortgage.”
    2. “My visa bill is higher than my mortgage.”
    3. “I am enjoying pride of home-ownership. I am not worried.”
    4. “Renters are losers”.

    The last one is very important, because that’s magic phrase which will make you feel better – every time you say it.

  7. madhaus Says:

    Poor widdle Worried Mom. She and her husband did everything they could to buy in Palo Alto, and now they have no room in their budget for 8 years of private college. What a tragedy! Do you think we could ask the dynamic folks at Save Cupertino Schools/Their Future Is Now if they could raise another three million per “upper working class” family like Worried Mom’s?

    Half a million for eight years of private college, and two and a half million to retire their mortgage so they don’t have to worry about being upside down in Palo Alto.

    Who’s with me?

  8. Insecure techie Says:

    Things get different as you cross the Oregon Expressway.
    ——-

    Not Real Palo Alto&trade.

    NRPA&trade != RBA&trade . Time for Burbed to update his map.

  9. Insecure techie Says:

    Poor widdle Worried Mom. She and her husband did everything they could to buy in Palo Alto, and now they have no room in their budget for 8 years of private college.
    —-

    Madhaus,
    You sound jealous. It’s always better to be Worried Mom in Palo Alto than Happy Mom in CUSD.

  10. maryjane Says:

    The best way to buy a house in PA is to dedicate your yearly seven figure bonus to paying down your mortgage and to live off your salary.

    If that’s not an option then Worried Mom should sit down with a piece of paper and prioritize what she wants out of life. How does living in PA rank vs. having your children graduate from college owing $100,000 each? There are options but most of the ones I can think of begin with “Sell the house and move . . .”

  11. Real Estater Says:

    Perhaps Obama should launch another billion dollar program on college reform. One thing we can all agree is that college costs are out of control. I believe some of it can be solved through technology. In the future, we should be able to achieve an electronic university, much as we’re trying to achieve an electronic hospital. For example, is there really a need to cram several hundred students into a lecture hall when it can be done through the internet? Classroom interactions can be supplemented by Tweeter, Facebook, or other social networking technology. If you’re laughing, you are under-estimating the potential of technology, and you’re going to be wrong. However, for those who must send their kids to college in the next few years (such as madhaus), I’m afraid they’re out of luck. Looks like they’ll just have to bite the bullet.

  12. madhaus Says:

    maryjane, go check out the comments on that article. Worried Mom was told to sell the house because she couldn’t afford it, and from the reaction, you’d think someone told her to sell her kids into slavery.

    Maybe she doesn’t want to admit she can’t sell the house because the bank wouldn’t allow a short sale. She’s not even upper working class, then, she’s an upside down bagholder in search of a knife catcher. Just because the gangs haven’t infested her neighborhood yet doesn’t mean she’s chained to a nightmare like those people in Hemet I wrote about last month. Oh wait, they’re stealing the BBQ space in her park anyway.

    Techie, what I have to do is move to Monta Vista High School attendance area. Half the cost of Palo Alto and the high school scores much better than Paly or Gunn. The only reason I have to be jealous now is my kids are stuck in Homestead. Heck, even DreamT in “Real Grey Area” has Cupertino High School scoring 20 points higher. Truly, my kids’ lives are ruined by my stupid decision to stay in my first house and actually own it. If I were a loving parent I would have done the same as Worried Mom.

  13. Real Estater Says:

    madhaus,

    You will never move because you don’t want to lose your Prop 13 benefit.

  14. maryjane Says:

    Sounds like Real Estater bought his degree from an online diploma mill. A quality education is all about the exchange of ideas in a classroom, preferably around a Harkness table with a learned professor. Sitting in front of your computer answering multiple choice questions in your parents’ basement isn’t a college education.

  15. Real Estater Says:

    >>what I have to do is move to Monta Vista High School attendance area. Half the cost of Palo Alto and the high school scores much better than Paly or Gunn.

    You also need to look at what’s behind the scores. Monta Vista is full of hard-working immigrant families whose only focus is academics.

  16. Insecure techie Says:

    Sounds like Real Estater bought his degree from an online diploma mill.
    —–

    Isn’t that too obvious from his reasoning, comprehension skill and ability to do math?

  17. Insecure techie Says:

    You also need to look at what’s behind the scores. Monta Vista is full of hard-working immigrant families whose only focus is academics.
    —-

    That’s exactly what we need to achieve 972 API score – a class full of Asians.

  18. madhaus Says:

    Oh come on, maryjane, it’s obvious he was trolling with that comment. The giveaway was his reference to “electronic hospital” as analagous to eCollege. Every few month a troll is actually amusing, but in most cases it’s just noise.

    Asking him if there’s ever a bad time to buy tends to put his back to the wall and generate the personal attacks, instead. Bad news about Palo Alto is almost as much fun.

    Hey RE, instead of quoting from PA puff paper, you should have done some actual research with those API figures. I discovered that Gunn has higher scores than Paly, and that’s because they have much higher percentage of Asians (39% vs 24%). So sad your kids will go to second-class high school with too many lazy white slackers.

    Neither school has 950 API, either. Nice trick giving average of one elementary school rather than district average of 919 (so underpowered compared to CUSD average of 946).

    To follow up on techie‘s observation that all you need are Asians, may I present the logical conclusion.

    Faria elementary (CUSD); 397 Asians and 9 whites taking STAR tests averaged school to 996. Too bad about the 9 white kids pulling down the results.

  19. Petsmart groomer Says:

    madhaus, you don’t understand. Gunn and Paly have the perfect scores. Not too high, not too low. Just perfect.

  20. Real Estater Says:

    >>Faria elementary (CUSD); 397 Asians and 9 whites taking STAR tests averaged school to 996. Too bad about the 9 white kids pulling down the results.

    A score like that indicates the school doesn’t offer a well rounded education. In fact, that’s my main concern about CUSD, and may be the reason the part of Los Altos with CUSD has the lowest property values in Los Altos.

  21. madhaus Says:

    RE: Please provide actual evidence that SE Los Altos (CUSD) has lowest property values in the city. Nobody here believes a word you say, in case you haven’t noticed.

    What does “well-rounded” mean? That used to be code (along with “good character”) for keeping Jewish kids who outscored the WASPs out of the Ivy League. Plus ça change, plus c’est la même chose.

    So which are you RE, a racist elitist or an elitist racist?

  22. Real Estater Says:

    madhaus,

    I’m just stating a fact, rather than being racist or elitist. For example, this house goes to Homestead High, and is at the low end of the Los Altos market. Most of the inventory in Los Altos comes from the one side of Fremont that goes to CUSD.

  23. madhaus Says:

    Meaningless anecdotal data, in every sense of that term. I knew you were incapable of doing actual research, so your utter failure was always in the cards. And speaking of utter failure, too bad your kids will be going to an inferior school, too. Sucks to be you.

  24. McFly Says:

    RE –

    For those that have purchased in the 2000s, there is no prop 13 benefit.

  25. maryjane Says:

    As I pack to go to my child’s Ivy League graduation I have to sit back an reflect that it wasn’t the schools he went to so much as the hard work of a devoted, caring and some might even say rabid mother who made sure his homework was done every night before he went to bed and that he was well rested and well fed in the morning. The school district is only as good as the effort the parents are willing to put in. Moving into the right school district isn’t a golden ticket to Stanford and a parent who has high expectations and values education is much more important than the school district.

  26. bob Says:

    To me the problem concerning parent’s getting their kids into the “Best” colleges is that there’s this rather steadfast belief that sending your kids to Stanford, Harvard, or whatever is going to instantly give them an outstanding advantage and status in the eyes of employers.

    Me, my Brother, my Mom, Dad, and Wife all went to “regular” colleges. In fact, both my Brother and I attended community college for the first 2 years simply because when we looked at the classes offered in the first 2 years at the state university these were required classes and offered at our local community college. These credits transferred and as a result we graduated with the same four year degree at a huge discount. Neither one of us have student debt. My entire education cost me $11,000. My Brother’s was about $15,000.

    In the end we somehow both have good, high-paying jobs. The same kinds of jobs kids get who go to $50,000 a year ivy league schools. The difference is that those students- unless they happen to have super wealthy parents- will have huge debts before they even step foot into a job interview. Yup- nothing like being $150,000 in the hole before you’re 25.

    “regular” college worked for us and it works for millions of other students. I can respect the desire to go to a college like Stanford. I’m sure they have access to more specialized classes. But I don’t believe they offer a professional advantage. Besides, most of what makes you attractive to employers is your experience. You get that out of school.

  27. Petsmart groomer Says:

    > But I don’t believe they offer a professional advantage. Besides, most of what makes you attractive to employers is your experience. You get that out of school.

    You’re absolutely right… if you aspire to a worker ant position (engineer, graphic designer, etc). But Real™ jobs will still be unattainable.

  28. maryjane Says:

    You can get a very good education for very little money. It all depends on what you’re willing to put into it. I think PA’s Worried Mom had kids who didn’t have the greatest GPAs and that’s going to make it a little harder because competition is fierce these days. If you’re looking for a tony little community to park your child for four years you’re going to have to pay more. If you’re willing to take advantage of what’s offered by the state and throw yourself into a major that can provide the basis for a real job you can do just fine in life.

  29. Real Estater Says:

    >>As I pack to go to my child’s Ivy League graduation I have to sit back an reflect that it wasn’t the schools he went to so much as the hard work of a devoted, caring and some might even say rabid mother who made sure his homework was done every night before he went to bed and that he was well rested and well fed in the morning.

    But at the end you did send your child to an Ivy League school, because you wanted a high quality life experience for your kid. In a good school district, every parent is just like you. In a regular or poor school district, your kid is not in the same kind of company. Character is shaped by the environment; your kids sees that everyone around him or her is striving for a top tier school, rather than going for a JC, working at a local bank, or getting married after high school. The mindset is really worlds apart.

  30. Insecure Techie Says:

    A score like that indicates the school doesn’t offer a well rounded education.
    —–

    Well, let’s read Real Estater’s own comment first.

    If you want the best schools in Palo Alto, you don’t want ethnic diversity. You want Asian and white…

    That means API score has nothing to do with “well rounded education”. It’s all about ethnicity. If score is 970-ish, that means it has too many Asian kids. If the score is 930-ish, indicates that too many white kids (like Palo Alto). If score is 750-ish, it means too many hispanic students. If the score is 690-ish, it means too many African-American kids.

  31. Real Estater Says:

    Bob says,
    >>Me, my Brother, my Mom, Dad, and Wife all went to “regular” colleges.

    That’s why everyone here can tell you’re a “regular Joe” type of person, scraping by in survival mode, without much vision or world experience. Essentially, this is the picture you paint for yourself.

  32. Insecure Techie Says:

    scraping by in survival mode, without much vision or world experience.
    —–

    First step of “world experience” – knowing how to spell the name of a place. Spelling mistake could put you in different continent.

  33. madhaus Says:

    Didn’t bob tell us he worked for years making a lower working-class salary of $30K? How does that reconcile with his claim he did just as well as a top-tier university graduate? How many top-tier univ grads does he know well enough to find out what opportunities he missed? Is his entire life philosophy that of sour grapes?

    I love how he’ll trot out contradictory histories to make whatever point he wants — like how he can save tremendous amounts of money (on the upper working class thread), and not bother mentioning that he and his Wife are DINKs and plan on staying that way.

    Got news for you, bob. HENRYs are Not Rich Yet because almost every discretionary dollar is earmarked for their kids’ needs: day care, private school tuition, enrichment, college funds. Being childfree means sidestepping more than a million per kid over the next 22 years — and you have the gall to trumpet that other people, most of them parents, are stupid and weak-willed on saving and investment? You’re comparing apples and horse-apples!

    If you had kids, you wouldn’t be living in shared housing and commuting forty miles each way to work, and you wouldn’t have a speck of savings.

    Or you could just decide to let the little tax deductions suffer underfunded public schools and underpowered community colleges, since you’re not even willing to rent in a good school district.

    So bob, why do you hate America so much? Do you hate apple pie too?

    Seriously, there’s a lot of room between spending everything on your kids and throwing them in the deep end and seeing if they can learn to swim at 6 months.

  34. Real Estater Says:

    Bob,

    Did you realize you can save even more by moving back with your parents?

  35. McFly Says:

    What college you go do doesn’t matter near as much as how you do in college. Most employers will choose a kid with great grades at a good school over a kid with mediocre grades at a great school. Same for getting into grad school. Get good enough grades and what school you went to becomes fairly insignificant.

  36. madhaus Says:

    But at the end you did send your child to an Ivy League school, because you wanted a high quality life experience for your kid. In a good school district, every parent is just like you.

    Au contraire, FauxEstataire! We already have you on record as expecting other parents and other children to provide for your childrens’ outlook, experiences, and worldview. Not once have you ever discussed what you can provide for your childrens’ development, let alone your childrens’ classmates’. You are a taker, not a giver; a mooch, not a value-adder; a drainer, not a filler, red ink rather than black. When JFK urged us to ask what we could do for our country, your reaction would be “What’s in it for me?”

    In a regular or poor school district, your kid is not in the same kind of company.

    Yes, I wonder how many shallow and materialistic families there are when nobody has much money to waste on frovolity. It must be awful for your children to socialize with immigrants’ kids! All the striving and sacrifice would show your kids that glib and meaningless platitudes are no substitute for working hard and keeping one’s commitments. Can’t have that!

    Character is shaped by the environment; your kids sees that everyone around him or her is striving for a top tier school, rather than going for a JC, working at a local bank, or getting married after high school. The mindset is really worlds apart.

    But not as many worlds apart as the striving kids are from the Bushies and REs who were born with a silver foot in their mouths and an expectation of entitlement, no matter how little they know, understand, or do.

  37. maryjane Says:

    I was very upfront with my children. I told them I wanted them to have Asian values. Whenever they would whine about how much homework they had I’d point out that certain children were doing the same homework AND going to Chinese school on Saturday. I started out joking about it but as time went on I noticed that there were children who had structured activities every night of the week. They weren’t dropping dead from the work, in fact they were thriving. I’ll take a poor, hardworking friend for my child any day of the week. Their mothers make better friends too.

  38. Petsmart groomer Says:

    #33 and #36 – Touché!

  39. Alex Says:

    Faux Estater,
    what up homie?

    Man, I grew up in da East Side San Joe
    and I went to colleges in da community, yo!

    But guess what?

    I still found enough success cruising Palo Alto
    for hoes.

    (BTW, can da missy come out to play tonight?
    Tell her to wear red wig
    and I bang her tight.)

  40. SEA Says:

    bob- Must you keep reminding us that you are not a Real RBA resident?

  41. madhaus Says:

    SEA, none, or almost none of the regulars here live in the RBA anymore. Even if RE told the truth about where he lives, he doesn’t live in the RBA.

    Tune in Monday!

  42. nomadic Says:

    Wow, you guys were pretty busy for a Saturday! I’m glad I was out in the sunshine at a graduation party instead of bickering here. Hey bob, do I win a prize if I tell you I got my degree for free? And no, RE, it wasn’t out of a Cracker Jack box! :-)

  43. DreamT Says:

    You’ll have to share the prize, nomadic. :) I only paid room & board…

  44. Real Estater Says:

    There were a number of schools that offered me full scholarship, but at the end of the day it wasn’t all about money.

  45. nomadic Says:

    You win, DreamT. :-P

  46. Real Estater Says:

    >>Meaningless anecdotal data, in every sense of that term.

    Why is it so hard for you to accept it? When you think about it, it makes logical sense. After spending one and half mil for a house, who would want to end up in a school district where they could’ve bought in for much less money? It’s like paying a hundred grand for a car, and it still doesn’t say Porsche on it.

  47. Real Estater Says:

    Alex,

    Have all the hoes and redheads you want. Somehow I don’t feel like missing out.

  48. madhaus Says:

    It’s like paying a hundred grand for a car, and it still doesn’t say Porsche on it.

    Sort of like spending all that money for “950 API” school district and finding out you live in “919” after all, while losing argument to woman with 92% home equity in “946” district.

    Enjoy those extra seven years of interest payments.

  49. Real Estater Says:

    Looks like the woman doesn’t understand basic home economics. If you get a killer deal on the interest rate, you really want to borrow as much as possible for as long as possible, because the more you borrow, the more you save.

  50. madhaus Says:

    Wow, are you really that ignorant?

    The more you borrow, the worse off you are in a downturn.

    The more you borrow, the less you own.

    The more you borrow, the bigger your interest payments and the smaller your equity.

    Debt is not wealth. Debt is debt. Like I said above, you’re red ink in the books of life.

  51. Real Estater Says:

    That’s why I say you don’t understand home economics. If you’re fortunate enough to get historically low interest rates, you want to milk it as much as possible. After tax deductions, your interest rate is essentially 3%. In other words, you got a sh*t load of money at only a 3% borrowing cost. When inflation hits (one way to have a downturn), you can easily get 5% from a CD (in fact, I still have some CDs returning more than 5% at this moment). That’s not to say you should invest in CDs, but I’m showing you even Bob’s dumb method can make money, and you should actually welcome a downturn.

  52. nomadic Says:

    Someone didn’t get his guru’s memo from July 2005… when “Rich Dad” began cautioning his followers about the bubble.

    He cites the Economist at length, including the assertion that “the global housing boom is the biggest financial bubble in history.” He confesses that he’s currently dumping real estate that produces no cash flow (from rental income) and going “long on gold and oil.”

    http://articles.sfgate.com/2005-07-24/real-estate/17380642_1_gold-coins-gold-and-oil-estate-market/2

    Even the radio ads that have been running lately are stating that “real estate is not an asset” – whatever they mean by that.

  53. madhaus Says:

    Even the radio ads that have been running lately are stating that “real estate is not an asset” – whatever they mean by that.

    You mean he can’t tell an asset from a hole in the ground?

  54. nomadic Says:

    I think it’s more about the house you live in. Not really an asset because you don’t get cash flow from it – at least not since liar loans and the bubble went away.

  55. madhaus Says:

    Wow, is RE so thick that he thinks home mortgages are covered in Home Ec? What kind of crap do they teach in Southern California schools? Alchemy in the Chem Lab? Natural History in World History? Shopping in Auto Shop?

    And I wonder what happened to his “AMT problem.”. Because if he actually had one, he’d know he’s saving far,far less than 40% of his mortgage interest in taxes. So he’s either lying, or he’s ignorant. Both is my guess.

  56. madhaus Says:

    No problem, nomadic. I traded houses with SEA last month, so now “my” house does give me a cash flow. Problem is that I’m not living in the RBA anymore, but then again, neither is anyone else.

  57. nomadic Says:

    Wow, is RE so thick that he thinks home mortgages are covered in Home Ec?

    Yes. But still, I think since he already had elitist racism (or was it racist elitism?) covered, he had to throw in some sexism. He’s well-versed in his “-isms.”

  58. madhaus Says:

    Oh was that sexism? I couldn’t tell because he didn’t include a tampon reference.

  59. nomadic Says:

    I just can’t think of a follow up to that without falling into the same sexist vein.

  60. madhaus Says:

    Careful or you’ll lose your reputation as the resident Sensitive New-Age Guy.

  61. nomadic Says:

    yeah, I’d have my patchouli confiscated…

  62. madhaus Says:

    And your ponytail whacked.

  63. nomadic Says:

    hey, hey, I’m not making hot flash jokes so don’t go crossing the line!

  64. madhaus Says:

    That does it. I’m sending in your application to He-Man Woman-Haters Club for Manly Men, No Pussies Need Apply.

  65. nomadic Says:

    Thanks. I think.

    Just don’t make me drive a friggin’ Porsche.

  66. madhaus Says:

    Wow, I have serious mojo too! DreamT can keep RE from having dinner with his family, and I can make you drive a friggin’ Porsche!

    You’re going to need to cuss more abusively for your application to go through. Why don’t you hang out with Alex? For about three years.

  67. nomadic Says:

    :-P

    You have the edge over DreamT – women historically exert power over men, however, not so much over random men on anonymous blogs.

  68. Real Estater Says:

    I went to several open houses today. All of them were packed. You can argue all day long that real estate is no longer a good investment, but in reality, nobody in the Bay Area believes it. Everybody wants to own, including Bob, and all the hypocrites here who already own but tells others that real estate is a bad investment.

  69. SEA Says:

    Real Estater- “You can argue all day long that real estate is no longer a good investment, but in reality, nobody in the Bay Area believes it.”

    That’s right! When you tell an owner his home has gone down in value–LIES! Nobody in the Bay Area believes that.

  70. Insecure Techie Says:

    You can argue all day long that real estate is no longer a good investment, but in reality, nobody in the Bay Area believes it.
    —-

    I don’t know about “nobody in the Bay Area”, but I am pretty sure nobody here believes Real Estater.

    Except SV Shopper and Hot Dog. :)

  71. Insecure Techie Says:

    I went to several open houses today. All of them were packed.
    —–

    Did the agents of those open houses run of flyers too?

  72. Insecure Techie Says:

    because the more you borrow, the more you save.
    —–

    Sort of like Walmart slogan “More you buy, more you save”. Buying is saving.

  73. madhaus Says:

    Spending is thrift. That’s why the term “spendthrift.”

  74. Real Estater Says:

    Pralay,

    Have you been to any open house lately? Or are you still “not even looking”? :-) You sure post a lot for someone who has no clue of what’s going on.

  75. Real Estater Says:

    >>Sort of like Walmart slogan “More you buy, more you save”. Buying is saving.

    A statement coming from someone who obviously doesn’t know the difference between an investment and an expense.

  76. madhaus Says:

    That’s right Pralay. Investment is expense. This is from the same person who thinks debt is wealth.

  77. Alex Says:

    Did someone mention pussies?

  78. madhaus Says:

    Yeah, we were just talking about FauxEstater.

  79. Insecure Techie Says:

    Have you been to any open house lately?
    —–

    Didn’t you see me in packed open houses? I was eating all the cookies. :)

  80. Insecure Techie Says:

    This is from the same person who thinks debt is wealth.
    —-

    And don’t forget the “killer deal”.

    Killer deal = Seven more years of debt.

  81. Insecure Techie Says:

    What kind of crap do they teach in Southern California schools?
    —-

    It’s “electronic school” – like “electronix hospital”. :)

  82. Insecure Techie Says:

    And I wonder what happened to his “AMT problem.”.
    —-

    Well, at least he is “smart enough to actually have a tax problem”. If you are smart enough to know tax laws and avoid any tax problem, you are not smart enough.

  83. DreamT Says:

    #44 – Did you know that France’s best engineering school gives its student a salary? (as opposed to requiring them to pay a tuition)

    tuition is free as long as the full curriculum is completed, and a salary is received throughout the school years

  84. Petsmart groomer Says:

    > It’s like paying a hundred grand for a car, and it still doesn’t say Porsche on it.

    I was at a fundraiser tonight and while many certainly paid more than $100K for their real™ cars, very few were Porsches. Real Estater, you still have a long way to go :-)

  85. Real Estater Says:

    Foreclosures are dropping:

    “We’ve seen a variety of reports about California housing in recent months, all pretty much saying the same thing, that the market is stronger and foreclosures are falling,” he said. “California is a great illustration of the price dynamic, in that if prices start rising, people think prices are going to continue to rise, and people are going to make every effort to hold onto an asset that is gaining in value.”

    In Santa Clara County, for example, the median price of the single-family homes sold in March rose 29 percent, to $550,000, the biggest increase in nearly a decade, according to MDA DataQuick.

  86. SEA Says:

    “We’ve seen a variety of reports about California housing in recent months, all pretty much saying the same thing, that the market is stronger and foreclosures are falling,”

    Maybe foreclosures fell because of the many government programs?

    It’s a bumpy ride…

  87. madhaus Says:

    Foreclosures fell, because with the shrinking of the RBA, the Kool-Aid party could come to an end.

    Oh yeah, and maybe the banks realized that foreclosing on that giant pile of defaults all at once wasn’t going to help their bottom lines. It’s a typical Prisoner’s Dilemma situation. Foreclose on it all, and each house gets devalued another 25-50 percent. Foreclose on five percent of it and keep up a stream of payments — but what if the OTHER banks foreclose ten percent, or twenty, or ALL of them?

    This ain’t over.

  88. bob Says:

    Didn’t bob tell us he worked for years making a lower working-class salary of $30K? How does that reconcile with his claim he did just as well as a top-tier university graduate? How many top-tier univ grads does he know well enough to find out what opportunities he missed? Is his entire life philosophy that of sour grapes?

    I arrived in the BA in late 2000. Right when the local economy was in the crapper. I remember that moving companies couldn’t keep moving vans in stock because there were that many people moving out. Downtown SF was a ghost town. There were ZERO jobs. It didn’t matter what school you went to.

    So yeah- I took a 30k job. A job that had some really great people whom I’m still friends with. But you know what? when you’re making 30k a year you learn to make your dollars stretch. You truly understand what $20 is really worth. In the end I wound up saving over $10,000 in 2 years. I have friends today making $100,000 who can’t manage to do that. Now that I make god money I appreciate it all the more and still live as I did when I didn’t. As a result I have a large amount of savings and will have no debt. Ever. Perhaps if other college kids had to learn to deal with less to start with they wouldn’t waste their money on stupid stuff like iPods and nice cars.

    I love how he’ll trot out contradictory histories to make whatever point he wants — like how he can save tremendous amounts of money (on the upper working class thread), and not bother mentioning that he and his Wife are DINKs and plan on staying that way.

    Believe what you want. I get a feeling you would rather think the opposite of what I am saying and that I’m full of crap. If it makes you feel good then go for it. I assume “DINK” means we have no kids? Yup. What about it?

    Got news for you, bob. HENRYs are Not Rich Yet because almost every discretionary dollar is earmarked for their kids’ needs: day care, private school tuition, enrichment, college funds.

    That’s not my problem.

    Being childfree means sidestepping more than a million per kid over the next 22 years — and you have the gall to trumpet that other people, most of them parents, are stupid and weak-willed on saving and investment? You’re comparing apples and horse-apples!

    whoah! backup the train! My parents- who obviously had kids- saved up money, have a nice house, yet don’t have great paying jobs. They sent us to regular schools , community colleges and regular colleges afterwards. We paid for some of it ourselves. My parents didn’t send us to the “best” of anything yet we turned out well. Good for them. All I’m saying is that all these parents moaning about not being able to send lil’ Jr to the BEST, most expensive school is ridiculous. Get a grip.

    If you had kids, you wouldn’t be living in shared housing and commuting forty miles each way to work, and you wouldn’t have a speck of savings.

    Why not? I know people who do.The people across the street do as a matter of fact. 2-3 families in a huge house with young kids. The kids play with each other. Sounds like fun to me. I have no problem with people who have kids. Its a personal choice. Just like not having them.

    Or you could just decide to let the little tax deductions suffer underfunded public schools and underpowered community colleges, since you’re not even willing to rent in a good school district.

    Like I said… if we had kids we’d leave the state. The schools suck here anyway.

  89. nomadic Says:

    Why did you come to a place “with zero jobs?”

  90. Insecure Techie Says:

    In Santa Clara County, for example, the median price of the single-family homes sold in March rose 29 percent, to $550,000, the biggest increase in nearly a decade, according to MDA DataQuick.
    —–

    Useless aggregate data. Median price is only one measure, subject to the mix of properties. Does anybody cares if the median price of Gilroy goes up?

  91. A. Lewis Says:

    Great posting, Herve. Truly great. That link, and the comments there are so informative and explain so much about Palo Alto. I’m glad I don’t live there – it’s a failed corner of the American Experiment, rotted deeply from within.

    And let me bow to DreamT – your posting at Palo Alto Online really nailed them. Way to go – well done.

  92. In and Out Says:

    What is the deal with the Porsche references? Nobody with money drives a Porsche anymore. High-end Mercedes, BMW, Lexis, Audi maybe, but not a Porsche. That is straight 80s. The only guys I’ve seen driving porsches are sub-5’9 accountants trying way too hard to compensate for something else.

  93. DreamT Says:

    A. thanks but you don’t need to bow. You’d have done the same. I know it. :)

  94. maryjane Says:

    In and Out has it right. A Porsche screams that someone is either compensating for something or is in the midst of a mid-life crisis. A high end sedan that says ‘Yeah, I make tons of money but I can still carpool the kids’ is so much more sexy!

  95. madhaus Says:

    In and Out has it right. A Porsche screams that someone is either compensating for something or is in the midst of a mid-life crisis. A high end sedan that says ‘Yeah, I make tons of money but I can still carpool the kids’ is so much more sexy!

    True, true. But our resident insecure compensator thinks mentioning my minivan is somehow a putdown. Hey, minivans carry more guitars and amps and get way better mileage than a fracking SUV.

  96. bob Says:

    Why did you come to a place “with zero jobs?”

    Well… Like I said, I got here RIGHT when the proverbial crap hit the fan. I had no idea that things were at that very moment going down the toilet. One of my first memories after moving here was on my first walk in downtown SF. It was crazy because in the space of one month there was what seemed to be a new dot-com on every corner. Some with unbelievably stupid names. A month later almost all of them were GONE. If any of you were around in late 2000 you know where I’m coming from. Things were BAD.

    Anyway, it worked out in the end and the industry has done me well.

  97. nomadic Says:

    No, I don’t really know what it was like here in late 2000. In early 2001 my better half got recruited to move out here (not quite zero jobs, eh?), all expenses paid. Wasn’t a cheap move either.

  98. DreamT Says:

    I recall 2002 being the bleakest, especially the second half. 2000 was chirpy. I’m not even sure that fuckedcompany.com was fashionable yet.

  99. anon Says:

    I don’t remember late 2000 being that bad either. You sure you were living in the bay area, bob?

  100. madhaus Says:

    What I remember about late 2000, after the dot.bomb, was all the Cisco millionaires suddenly had underwater options. But not one person I knew lost his or her job then.

    I moved out here in 1982, now. THAT was a bad year. For a while, the current downturn was described as “worst since 1982″ until that became quaint. Now it’s “worst since 1932.”

  101. maryjane Says:

    It was 1992 when I discovered that every other person was an investment banker and they were all merging and acquiring.

  102. Insecure Techie Says:

    A Porsche screams that someone is either compensating for something or is in the midst of a mid-life crisis.
    —–

    He is in mid-air crisis. That’s why he craves for “aircraft quality feel “ (whatever that means).

  103. madhaus Says:

    He is in mid-air crisis. That’s why he craves for “aircraft quality feel “ (whatever that means).

    It means he enjoys being shoved in too-small seat between two other people elbowing him in the gut, and being served mystery meat smothered in oversalted cold gravy.

  104. nomadic Says:

    heh, you don’t even get crappy food on planes anymore! :-)

    I agree with DreamT; 2002 was pretty bad. Things really slid downhill after 9/11.

  105. Insecure Techie Says:

    It means he enjoys being shoved in too-small seat between two other people elbowing him in the gut, and being served mystery meat smothered in oversalted cold gravy.
    —–

    And sitting next to crying Austin man.

  106. Insecure Techie Says:

    Sorry, correct link for crying Austin man.

  107. Alex Says:

    LOL I finally had a chance to read the Palo Alto Online thread. Funny watching the house-poor bitch and moan about not having money to do anything else. That’s too bad. go get a fcking 2nd job!

    BTW, no need to bash Porsche…just cuz numbnut Faux Estater may own one. When I hit my midlife crisis, I might get one. LOL

  108. Real Estater Says:

    It’s funny to read the various judgmental comments by residents of “another community” in the Palo Alto Online thread. Come on guys, the lady really doesn’t have a problem, assuming her kids are still young. By the time her kids are ready to go to college, her home’s value would take care of any financial problem she might have. Just the overbid amount on her home (should she choose to sell it instead of borrowing against it) may be enough to fund her kid’s college education. My advice is to just live in the home, and don’t worry about it.

  109. Real Estater Says:

    >>BTW, no need to bash Porsche…just cuz numbnut Faux Estater may own one.

    Exactly. Sour grape comments are befitting of losers. I personally have no problem admitting I cannot afford the L car, and I would never knock anyone who owns one. A Porsche is not even worth bashing. Look around Silicon Valley; that milestone is in the rear view mirror for a lot of people.

  110. SEA Says:

    “Just the overbid amount on her home (should she choose to sell it instead of borrowing against it) may be enough to fund her kid’s college education.”

    Is it possible to over-price a home in Palo Alto?

  111. Real Estater Says:

    maryjane says,
    >>A high end sedan that says ‘Yeah, I make tons of money but I can still carpool the kids’ is so much more sexy!

    To me it’s not about the image or the money. A high end sedan just doesn’t rock.

  112. Chris Says:

    Porsches are alright, but they have 16 different 911 and most of them have average performance. It takes the 911 Turbo to finally do 0-60 in less than 4 seconds. Funny they can make the Panamera Turbo (over 2 tons) do 0-60 in 4 seconds but most 911s (~1600kg) can’t…

  113. Insecure Techie Says:

    By the time her kids are ready to go to college, her home’s value would take care of any financial problem she might have.
    —–

    LOL! Looks like Real Estater is counting his home for not just retirement, but for his kids’ education too.

  114. Insecure Techie Says:

    My advice is to just live in the home, and don’t worry about it.
    —-

    That’s right. A advice from a used car salesman neutral guy. Don’t worry. Someday your home will become a big ATM machine.

  115. Alex Says:

    Faux Estater,

    Just cuz I didn’t bash Porsche doesn’t mean I won’t bash *you*. You still suck. LOL

  116. nomadic Says:

    RE, still think it’s a great time to buy the euro?

    What analysts are saying: “There is absolutely no support to the euro,” said Ashraf Laidi, chief market analyst at CMC Markets.

    He noted there were rumors on Friday that France’s debt would also be downgraded, which if true would further weaken the euro.

    “There is no new reason out there, from the U.S. front, to be worried about the dollar,” Laidi said. “In any case, when there is risk aversion, people tend to sell the euro and buy the dollar.”

    The technical sell-offs could continue accelerating, Laidi said, with the euro falling as low as $1.17, $1.10 or even parity with the dollar.

    Parity would mean an 18% drop from today’s close. Calling a bottom last week could be another of your “premature exclamations.” lol

  117. Real Estater Says:

    nomadic,

    Do you sense the fear? This only serves to validate my statement.

  118. DreamT Says:

    Maybe Real Estater was advised by his European friends to buy euros :) After all just like him, they are only here to help, no vested interest whatsoever.
    I’d be surprised if we don’t reach parity. Europe is incapable of coordination and unwilling to centralize the necessary powers to fix itself, let alone keep up with the U.S.’ recovery. Things are about to get much uglier there, and I just hope we won’t see any country collapse – so count me as an optimistic.

  119. DreamT Says:

    Real Estater, it’s primarily because of the lack of fear that so many European economies have let their debt surge, their productivity stagnate and economic sectors bubble. Politicians assumed all this time that “Europe” would not let the Euro collapse. But Europe is not a nation, it’s not a country, it’s not a coherent body, it’s not a political will, and it was ever (very barely) supported by nationals only for very twisted reasons that are only valid during time of growth (such as trade protection and subsidies). There are no fundamentals to support the euro during bad times.

  120. madhaus Says:

    There are no fundamentals to support the euro during bad times.

    Sure there are. Just ask RE; Euro is king because of Porsche 911 Turbos and Bang & Olufsen telephones. His statements are based on the assumption that the world revolves around his opinion.

  121. Real Estater Says:

    Let me say it again. If it weren’t for these perceived problems, would Euro be so cheap right now? Would you rather have bought when the Euro appeared to be strong?

  122. Alex Says:

    Let me say it again. If it weren’t for these perceived problems, would Euro be so cheap right now? Would you rather have bought when the Euro appeared to be strong?

    perceived problem? Are you frigging kidding me? Damn lazy Europeans and their entitlement problems are coming home to roost. Countries like Greece and other PIIGS will default. The euro will fall and may possibly take the EU with it.

    BTW, this is a preview of what will happen to the US if we keep on our current trajectory. Entitlement programs with no way of paying for them. Debt can only take you so far. Power of compound interest (exponential growth) will eventually kill our economy if we don’t start paying off our debts. This is why ponzi schemes cannot last forever.

  123. DreamT Says:

    I’d sooner buy tsarist bonds :) Enjoy your Euros, RE.

  124. Insecure Techie Says:

    If it weren’t for these perceived problems, would Euro be so cheap right now?
    —–

    This guy need some serious rehabilitation for his lack of reasoning. :)

  125. Real Estater Says:

    >>Countries like Greece and other PIIGS will default. The euro will fall and may possibly take the EU with it.

    We’ve heard it all before. The sky is falling. The Great Depression is coming. Foreclosures in Antioch will spread like wild fire into RBA. Dow is going to drop below 5000.

    Are you frigging kidding me? Each time there has been a recovery that yielded handsome returns to anyone who bought when the market was down.

  126. DreamT Says:

    RE, currency is a zero-sum game: as long as the dollar performs better than the euro, the Euro comparatively loses value, even if accompanied with an (unlikely) recovery. Ok? :) so you’re telling us that the Euro area is going to be healthier than the U.S. area these next two years. More stable, more productive, more growth, more control of national/state debts, safe haven for Asian countries, etc. Go ahead, tell us all of this in more detail…

  127. Real Estater Says:

    DreamT,

    If you’re telling us the U.S. area will have the healthiest economy, then give us more details. Rentards should have nothing to fear now.

  128. DreamT Says:

    I’m afraid it’s your turn to speak up. Mirror dance does not suit you well.

  129. Insecure Techie Says:

    His statements are based on the assumption that the world revolves around his opinion.
    —-

    It seems pretty soon Greece, Portugal, Spain will start revolve around Real Estater’s opinion.

  130. Insecure Techie Says:

    If you’re telling us the U.S. area will have the healthiest economy, then give us more details.
    —–

    Bill Clinton said so.

  131. Real Estater Says:

    Pralay,

    Which begs the question: What was your excuse to not buy when the price was low and the future is bright?

  132. madhaus Says:

    Which begs the question: What was your excuse to not buy when the price was low and the future is bright?

    Pralay figured your statements are based on the assumption that the world revolves around your opinion. So as soon as you buy those rental properties, then it’s safe to start research.

  133. Insecure Techie Says:

    Answered already. I know you don’t like my “real answer”, so you better answer my question first. :)

  134. Insecure Techie Says:

    Pralay figured your statements are based on the assumption that the world revolves around your opinion.
    —-

    Correction: The world revolves around Real Estater’s cavuto mark.

  135. Insecure Techie Says:

    So as soon as you buy those rental properties, then it’s safe to start research.
    —–

    That will take “couple of years” for him. He is not competing for speed, but for accuracy for his “sweet spot”. When he will get his “sweet spot”, most likely he will sell his Palo Alto home to kids’ college funds.

  136. Real Estater Says:

    madhaus,

    What’s your excuse for discouraging others from buying a house when you own a house yourself?

  137. madhaus Says:

    What’s your excuse for discouraging others from buying a house when you own a house yourself?

    Sorry, I’m not available now. Please contact my secretary, Petsmart Groomer, if you have any immediate issues. If this is Real Estater, don’t bother. No doubt your premise is flawed, your assumptions are incorrect, and your conclusion is wrong. Thank you.

  138. Real Estater Says:

    Way to deflect and to misrepresent yourself.

  139. anon Says:

    What a sad, sad soul. At least you got your craved negative attention. Go to bed, re. Bossman wants it in the morning.

  140. MadeMan Says:

    So many bitter people. You can tell who envies Real Estater and who didn’t have the guts to get in the market.I moved here with a big profit on my Manhattan co-op and was able to buy a nice place in what you call the Real Bay Area and I’m not worried. If you buy quality you’ll never lose.

  141. McFly Says:

    Mrs. Estater, is that you?

  142. Insecure Techie Says:

    LOL! In #140 Real Estater spelled Manhattan correctly. Cheers!!!!!!

  143. SEA Says:

    MadeMan- “You can tell who envies Real Estater and who didn’t have the guts to get in the market.”

    I don’t know if I can tell who envies Real Estater, but I have a better idea about who is Real delusional.

    McFly- “Mrs. Estater, is that you?”

    To have married Mr. Estater, she must be delusional too.

  144. Insecure Techie Says:

    Way to deflect and to misrepresent yourself.
    —–

    Your statements are based on the assumption that the world revolves around your opinion.

  145. Insecure Techie Says:

    You can tell who envies Real Estater and who didn’t have the guts to get in the market.
    —–

    Anybody here envies Real Estater? I am not counting SV Shopper, Hot Dog and Real World Craig.

  146. McFly Says:

    I do agree with “MadeMan” on one thing – signing on to catch a falling knife does take guts, and of course also stupidity. I sure am not brave (read: stupid) enough to extent my hand at this point.

  147. madhaus Says:

    I wonder if MadeMan, SV Shopper, Real World Craig and Hot Dog all post from the same IP address. It’s amazing how all the genuine long-term posters have similar reactions to RE and his sockpuppets — but, nope, no envry. Pity, contempt, disgust, derision, disdain, disrespect, antipathy, ridicule, scorn, ignominy, disparagement, and censure, that’s the whirlwind RE reaps from the poison he sows.

    If something is a fact, you will hear it from everyone.

  148. Alex Says:

    Yes, I do envy Real Estater sometimes. It is sometimes nice to be soooooooooo stupid that you are oblivious to the world.

  149. Alex Says:

    on second thought, I like being me just fine.

    Tengo vergota como caballo.

  150. Real Estater Says:

    Usted es un maniquí

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