A Mercer Update

We have provided reports from our favorite urban dwelling in a suburban setting here, here, and here.

The gist of the story is that in Walnut Creek, California you were given the opportunity to pay San Francisco prices but live 26 miles from San Francisco. It was a deal that couldn't possibly fail.

Well unfortunately the combination of a recession and a population of individuals with IQs above 60 have doomed the sales angle of this project.

But have no fear, the Mercer is back, as previously reported, with RENTAL opportunities!

So we thought - what's a nice place going for and what's the real sitch?? We sent some operatives in to have a look. The result: well first off the Mercer has only, ONLY 45 units left to rent! The agents also reported that they were actually excellent apartments, but not worth the $3000/month for a 2 bedroom asking price.

So if you are looking for the San Francisco experience, minus San Francisco, look no further than Mercer Homes. The price and cramped space of an SF apartment without all the interesting culture of SF. And with ONLY 45 units left, you must act now!

Subsidized housing in Del Mar

I noticed a condo for rent today in Del Mar near the beach. It caught my eye because the place had been for sale for a year before finally selling in April.

The buyers paid $2.55 million for it. Now they are trying to rent it for $6500.

Zoinks. A 6.5% mortgage on that will run you over $16,000 a month. Property taxes are more than $2300 a month. Add a few hundred more for insurance, maintenance, and/or HOA, and the cost of carry is around $19,000 a month. So even if these people find tenants in this market at $6500 a month, they are paying $12,500 a month for the privilege of being landlords.

I hope they had a great summer in that place, because they're going to be paying for it for a while!

CORRECTION: These are two different condos on the same block. Same story though, except the rent price is now $25,000 per month!

If you think investing in a Ponzi scheme is a bad idea...Nomura

... how about borrowing money so you can leverage up 3-to-1 to invest in a Ponzi scheme?

That's what Nomura and Neue Private Bank (NPB) did. You can read their marketing piece here.

It sounds like Nomura/NPB's customers are limited to losing what they put in (100%), so Nomura is going to have to pony up the other 200%. Sucks to be them!

Madoff Ponzi scheme has lots of great names

The Madoff Ponzi scheme has names that sound like they came out of a work of fiction. First of all, Bernie "Madoff" with their money. Secondly, a couple of the victims were named Nicola Horlick and J. Ezra Merkin. Nicola may have to turn to eponymous employment, and J. Ezra may have to pawn his Merkin.

UPDATE: The Sinkin Family! This is not a joke!

Building a Religion

Obama - Building a Religion - Funny blooper videos are here

Urgent child safety seat recall

DVS received this chilling notification about the child safety seat to which he had entrusted the lives of his young children:

As a valued Toys"R"Us customer, we wanted to make you aware that our records indicate you have purchased a product from Toys"R"Us which has now been recalled by the manufacturer. The Consumer Product Safety Commission has announced a voluntary recall of select Graco/Century items.

Consumers should cease use of these Graco/Century, ComfortSport™ Car Seats immediately. Please click here for additional product recall information.

Sincerely,

Toysrus.com

Wow. A well-known children's safety product company like Graco manufacturing death traps for toddlers. Who can you trust these days?

When you click through to the additional information, you see how deadly the product is:

A number of Frazier™ComfortSport™Convertible car seats, manufactured from November 1, 2006 through October 8, 2007, were produced with an optional “ body pillow” that partially obscures the required airbag warning label. Partial obscuring of the airbag warning label may prevent the important message from being read, and thus lead to improper installation of the car seat. Failure to properly install the car seat can result in serious injury or death.

What UAW goon Ron Middlefinger was defending when he torpedoed the Detroit bailout

Twenty-two pounds of union work rules.

His gamble paid off though, as Bush and Paulson are going to sell your children deeper into debt in order to keep paying union workers for sitting at home on the couch.