| Subject: | Future of Silly.con Valley -- FWC: Detroit Is Becoming a Ghost Town |
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| Date: | Thu, 24 Mar 2011 09:41:21 -0700 |
| From: | Jas Jain |
Future of Silly.con Valley
Detroit Is Becoming a Ghost Town- Peter Gorenstein
Booming economies that the last two longwaves left behind in their wake—St. Louis, Mo and Detroit, MI. Silly.con Valley fits the bill for the area that the current longwave that began in 1950 would leave behind. What would it take? Collapse of the Scam Market without the revivals that followed the 2002-03 and 2009 lows. Basically, when the Greater Depression can no longer be postponed by the massive govt intervention and the most irresponsible fiscal and monetary polices that are now in place. Such efforts by govts always fail. What sort of person puts faith in govt's ability to cure economic ills that were a result of horrible govt policies and enforcements?
Jas Kirk Comment: I think Jas has missed for decades that the people who make companies from scratch, load up on cheap shares then unload them on the public via IPOs then use the Cisco (CSCO) / UTEK/ AMAT etc model of insider stock option dilution need a place to hang their hat. The people who do this successfully need SOMEWHERE to live and send their kids to school. They also semi-retire in these nice communities and new kids come along with Twitter, Facebook and Google ideas to do it all over again. When they cash out... they need a nice place to live while they foster more new ideas to repeat their success but as VCs. It is why the money centers of the world do well... London, Manhattan, Silicon Valley up through VC land to San Francisco.
I DID NOT miss this and did very well with about a double in my home value, living "rent free" since I met Jain in 1998 and up about 2.5 times since buying in 1994. I betcha my total mortgage payments to live in 94022 (MLS for 94022) will be less than paying rent by the time I decide to pay off the loan and for sure by the time I die if I make it to my 90s....
Keep a half to a third of your wealth in cash or highly liquid assets and even if the whole world collapses, you still get to live on the SF Peninsula with its beautiful weather... and use that cash to pick up bargains from others at pennies on the dollar. It is FAR preferable to the Jas Jain, hermit in the mountains option.
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1 comment:
+1, Kirk! 94022 is indeed a terrestrial paradise. Some call it a town without a soul, but the residents are the nicest bunch of people I've ever met. Decent, god-fearing kids who "cashed out" and became VCs. Now they live rent-free and pick up bargains from others at pennies on the dollar! What a wonderful culture.
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