Wednesday, December 13, 2006


I always thought pornography was an interesting business. It's not as if there's a shortage of porn out there. If you can imagine anything being shoved into any orifice on a body, someone has probably filmed it and put it on the web. That being said there's always a demand for more and more and more. The supply will never exceed the demand, what a great business model!

There's tons of money to be made in the industry and now someone I know is working on a porn site. I wanted to share it because I'm proud to be associated with anything that runs against social norms or would piss off your common religious zealot. I can share this becuase the only member of my family who reads my blog is the person working on this site. I'm now officially related to a pornographer. Check it out!

Tuesday, December 12, 2006

Why should you buy a home if the price may go down?

I meet a lot of people who are delaying a first time home purchase because they think the prices may come down somewhat in the near future. That's true, prices may fall in the near term but here's why these folks should buy now.

First of all mortgage rates are near historical lows. Inflation fears in the mortgage market are low and that keeps rates down. The 30-year fixed rate has fallen from 6.77% a few months ago to 6.11% today. If inflation fears or other risk factors in lending worsen the rates will go up.

So say you buy a home today for $200,000 and one year from now you could buy the same home for $190,000 because the price goes down. If you buy the home today your principal and interest payment at 6.11% would be $1,213 per month. This excludes insurance and taxes but those are influenced by other factors.

If you wait for a year and buy the same home for $190,000 and interest rates are three quarters of a percent higher your payment would be $1,311. You'll be paying an extra $125 per month in interest and your payment is $98 higher. If you had bought a year earlier you also would have reduced the principal amount by $2,123 already. You also (depending on your situation) have probably reduced your income taxes with credit for mortgage interest and property taxes paid by about $1,000 for that year as well. Plus you own a home of your own instead of renting.

The alternative: If you had kept renting your rent probably went up by $30-$40 per month for your one bedroom apartment over the year you waited. And what if mortgage rates AND prices go up? Now you really got hosed. Plus if you keep renting your rent is going to go up with inflation each and every year and it will probably outpace your paycheck. How many times can you downsize before you live in a closet?

One of the biggest regrets in my life is listening to the advice that dad gave me about buying a home. He told me to save up a down payment to get a better interest rate. I didn't quesiton his advice and I got screwed. Prices of homes went up 35% while I was saving. I kick myself every day for not looking for more advice.

There are two groups of people in this country. One group is making mortgage payments and buying real estate for themselves. The second group is paying rent and buying real estate for someone else, their landlord. Which group would you rather be in?

And if you're willing to live in an apartment you own and you make about $35,000-40,000 per year here's something really cool. I can show you how you could buy a 4-unit apartment building, live in one of the units for about the same as your current rent and only pay taxes on $10,000 of your income for the next five years.

Monday, December 11, 2006

The Bridges of Saint Paul

I'd do some copypasta or give you a link to what I saw in the Sunday Pioneer Press but I can't. It wasn't an article or editorial, it was an advertisment. The ad was on the back of the North Metro section. It was a full page ad describing the reasons why the Bridges of Saint Paul is a good idea in a futile attempt to win public support.

There's always going to be people who disagree with whatever someone else is doing and for many different reasons. The people developing this project (I have no idea who) just need good public opinion to get this through the development process. People object to the Bridges of Saint Paul because they say it's too big, too expensive, too ugly, too obtrusive........who gives a fuck. If someone wants to build the thing with their own money, let them build it for fuck sake. If someone wanted to take the duplex next to me and convert it to a dirty book store I'm all for it. And if any of my neighbors tried to use the force of government to stop it, I might become an investor in that new small business myself.

I just don't care at all. Personally I think the Bridges of Saint Paul is a disgusting endorsement of consumerism with the gazillions of square feet of retail space it'll have but I still don't care. If someone wants to build it, go ahead.

What caught me about this ad was the really disturbing though. It wasn't that the ad touted the new jobs it'll create and the construction jobs it'll maintain at least for a while. It wasnt' that the ad showed a nice rendering of one of the buildings and invited you to come see their condo models that are now open. The problem is that it BOASTED of the ESTIMATED TAX REVENUE IT WILL CREATE!

The ad agency that created this knows that the people in Minnesota are so pro big government that they'll cum in their pants when they hear the government is getting more tax money. So much so that they need to specify that! If the sheeple just see that more tax will go to the government then they'll do the lobbying for project themselves!

As if more taxes will fix our problems. That's a bunch of crap but the sheeple believe it. Maybe the increased tax dollars can be used to take some D average high school dropouts and turn them into police officers. That would certainly fix some problems. Yeah, sure. More tax revenue (theft) won't fix dick but no one see that. If we just had more worthless cops, social workers, paper pushers, middle managers and $31 per hour MNDOT employees producing next to no benifit to society this just might be a better place to live. Hell no.

I can't believe a group of people had to advertise the fact that they'll pay more taxes just to develop a new piece of real estate, sick.

It's 6:00 a.m. I think I'll cry until I have to go to work. :(