Monday, March 24, 2008

Don't Forget the Renters Ben!

I don't know Ben Bernanke but he doesn't seem to care much for guys like me. I'm a renter and taxpayer. I would like to see him and Rick Miskin explain in a press conference why home owners need to bailed out and protected from the loans whose terms they chose to accept. I would like to know how many of my tax dollars will go to this bailout of the Bear Stearns. If they like activism, they should go back to their home universities and attend a university wide faculty meeting. What's the matter with the world that Robert Schiller has predicted? Why can't prices fall? Yes there will be some losers if prices fall but somehow the winners from such an event are being ignored. Why? Are you suffering from a "crisis of confidence"? Are you considering making a "bank run" like back in Jimmy Stewart's "A Wonderful Life"? I see the distributional effects introduced by the Fed's Activist policies these days but I do not understand how it has convinced its self that these policies have "efficiency" benefits. Its actions feed potential panic by introducing extra uncertainty. The Fed's intuitive moves makes the "game theory" more complicated here.

My nasty question for Dr. Bernanke is the following. If he knew that he would be re-appointed as Fed Chair in the next 2 years, would be less of a activist Chairman right now? Put bluntly, is he fighting for his job? or for our jobs? Dr. Bernanke should have to go to the University of Chicago and take the first year of the MACRO PHD sequence again.

If Ben Bernanke wants to helicopter drop some $ then he should consider handing it out to renters in the Westside of Los Angeles who want to buy a modest home in nice areas such as Westwood. Dora and I want to minimize our carbon footprint. We would be able to walk to work from Westwood and we wouldn't drink milk to restore the calories we burn off.

While this has been an angry post, permit me to earn back your sympathy.

Each of these homes is about 1700 square feet on a 6500 square foot lot.


Price Beds Baths

$1,450,000 3 2.00
10362 LOUISIANA AVE LOS ANGELES
Ron Wynn
Yes Coldwell Banker-Westwood

Active 04/23/2007 $1,490,000 3 2.00
355 S THURSTON AVE LOS ANGELES
Jasmen Vartanian
Yes Calstar Realty

Active 01/24/2008 $1,495,000 3 2.50
349 S THURSTON AVE LOS ANGELES
Tudor Martin
No Coldwell Banker-Brentwood West

Active 03/21/2008 $1,500,000 3 2.00
10521 KINNARD AVE LOS ANGELES
Donald Plunkett
Yes Congress Realty, Inc.

Active 02/01/2008 $1,545,000 3 3.00
10446 WILKINS AVE LOS ANGELES
Gail Mintz
Yes Coldwell Banker-BH East

Active 03/17/2008 $1,550,000 3 2.50
10450 HOLMAN AVE LOS ANGELES
Rona Kaufman
Yes Worldwide Real Estate, Inc.

Active 10/25/2007 $1,569,000 4 2.50
2009 FAIRBURN AVE LOS ANGELES
Terri Elston
Yes Coldwell Banker-BH

Active 03/20/2008 $1,595,000 4 2.50
2034 FAIRBURN AVE LOS ANGELES
Terri Elston
Yes Coldwell Banker-BH

Active 03/05/2008 $1,595,000 3 3.00
10365 TENNESSEE AVE LOS ANGELES
Scott Tamkin
Yes Sotheby's Int'l Rlty-Brentwood
Looking for Backup 02/19/2008 $1,599,000 3 2.00
1833 PELHAM AVE LOS ANGELES
Alex Galuz
Yes Crescent Realty Corp.

Active 03/06/2008 $1,599,000 3 3.00
381 DALKEITH AVE LOS ANGELES
Laurence Young
Yes Prudential California Realty

Active 11/08/2007 $1,599,000 2 2.50
1427 WARNALL AVE LOS ANGELES
Kathy Fisher
Yes Coldwell Banker-Brentwood West

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