Pricing and Wall Street

With a few rare exceptions, new listings seem to be coming on at levels that suggest the sellers think we’re back in early 2007. Either they hang out with an unusual crowd or they don’t hang out with anyone at all and have spent the past five years huddled in their basement in the dark. Or, I suppose, they’re Obummer fans and are counting on the Messiah to right the ship of state.

Regardless, they might want to speak with some of the ordinary Wall Streeters who make up the bulk of our buyers here in Greenwich. Many of them aren’t doing so well. I know of one guy who, despite having a very profitable year trading, works for a bank that did not. He’s just back from Europe where he recieved word that bonuses world-wide won’t be anything like what the employees had been hoping for and he’s adjusted his price ceiling accordingly. Another trader tells me that the $500,000 in options that he’d been saving to contribute towards a house just went underwater so poof! Let’s rethink this purchase idea.

I could go on, but my point is that I’m probably not the only agent in town whose friends and clients aren’t feeling as prosperous now as they did awhile ago. If I’m not, then I wonder how many fnancial types are still left out there ready to pay crazy-assed prices dreamed up by delusional home sellers? Not so many, I’m guessing.

24 Comments

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24 responses to “Pricing and Wall Street

  1. Anon1

    My previously owned house was priced 20% off peak in 2006 by my buyers and wasn’t sold. The owners are offering the house for rent.
    We’re off to Austin in 5 months. I’m outta here. Connecticut and New York can keep the high taxes and liberal politicians. We quit.

  2. Hedgie

    I am in the same boat. Our fund didn’t make much in 2011, so I have put off my plans to upgrade to a larger home. I had actually looked at a couple of places a year ago, but when the market contagion began last summer, I called off the search. I’m sure the 99%ers are happy, though – it wouldn’t be fair for me to live in a bigger house than somebody who pays no taxes.

  3. AJ

    Hedgie, if you’re referring to General Electric as somebody who pays no taxes, then you’re going to need to find a pretty big house.

  4. Anon

    Here is what motivated Greenwich sellers to raise their expectations for 2012:

    http://www.hlntv.com/article/2012/01/06/tiger-woods-ex-wife-destroys-mansion?hpt=hp_c2

    If you can’t afford to tear down a $12 million mansion, then you shouldn’t try to buy in Greenwich. Go bottom fishing somewhere else.

  5. AnotherMoose

    Speaking of Wall St and houses, felonious Doc Chip Skowron reported to the big house today..

  6. Out Looking In

    Word to hedgie and you other overpaid jokers-

    Most of you guys couldn’t trade (or invest) your way out of a paper bag. Yet you answer phones and wine (and whine) and dine clients and get paid a stick or more (that’s $1mm for you non-Streeters). Go out and make a real living (or real money for ur clients) and then come back and bitch. Otherwise, suck it up and live in your $2mm-$4mm shack! Most hedge funds have failed to make money for their clients, let alone their owners in three years now….just saying…

  7. Hedgester who made money this year

    @hedgie – maybe if you made money for people, you’d be paid too. Your sense of entitlement is what the discontent is about. If you can guess the number I’m thinking of, I’ll reimburse your taxes.

  8. Anonymous

    Ooh, I love it when the hedge fund guys go at each other!

  9. Hedgie

    Why are you guys picking on me? Pick on guys like Eddie Lampert or John Paulson who blew up spectacularly. At least I made a couple percent for investors – nothing to brag about, but not to shabby compared to losing 50%.

    Furthermore, it’s guys like me who invest money in companies like a biotech that need money to develop drugs and medical devices to save peoples lives – without investors, those drugs don’t get discovered. Or what about when a company needs to borrow money to build a factory which will create jobs – who do they sell bonds too? And who do you think makes most of the charitable contributions – the 1% or the 99%? I’m fed up with all the critisism already.

  10. Dude

    Saying “GE pays no taxes” is as inane as saying “40% (or whatever %) of Americans pay no taxes” and has become part of the Republican rallying cry — see Hedgie @ 1:39, although he didn’t include a % with his reference to the non-tax payers.

    Hedgie, I thought you guys were supposed to have thick skin? I thought companies sold bonds to mutual funds and the rest of us schmucks who are looking for a decent yield. BTW, I’d bet that the lower 99% give more charitably, in the aggregate and as a % of income. Just a hunch, I admit no empirical evidence.

  11. GPD Folk

    Hedgie….Now you know how the cops who read this blog feel….welcome to the Club! :) (sorry Christopher…couldn’t resist)

  12. Jealousy is one of the seven deadly

    It is probably fair to say that most people who castigate the wall streeters neither do anything that much more meaningful for society nor have what it takes to succeed in finance (or in any other field in such a way that they would be deemed “exceptional”)

    sounds like SOUR GRAPES

  13. Greenwich Mom, M&P

    Forgot the cops or the hedge fund guys – now you know how us COS COB residents feel!!

  14. AJ

    CF, only a lawyer could plow through that article and find something that made sense– a very good example of how to take a muddled situation and muddle it up worse. I’m surprised you cite CNN as a source of real news. Every time I eat something that disagrees with me and I need to toss it up all I have to do is turn on Erin Burnett.

  15. round hill tennis pro

    Hedgie, I have been banging your wife for two years!

  16. Just_looking

    Cf, the comment string here sounds like DealBreaker readers.

  17. anon

    Just_looking,

    sounds like you read Dealbreaker

  18. AJ

    Better luck this year Hedgie. Success is the best revenge. 99 percenters, money makes things work. Without it food rots in the fields while people starve in the streets. Collectivism is the fast track to 1984.

  19. Love the sharkfest. Never knew hedgies were more thin-skinned than real people are.

    @Anon1, have fun in Austin, a very cool city (Barton Springs, yeah!). Don’t know about lower taxes, but you’ll still bump into plenty of liberals there. One of our favorite places is Book People bookstore, where you can pick up a T-shirt emblazoned with the city’s motto: “Keep Austin Weird.”

    @AJ, excellent. She makes us barf, too.