Thursday, June 29, 2006

Q1 GDP Expands At 5.6% Rate

From Bloomberg:

U.S. First-Quarter Gross Domestic Product Grew at a 5.6% Rate

The U.S. economy expanded at an annual rate of 5.6 percent in the first quarter, propelled by a surge in consumer spending that has since faded as gasoline prices soared.

The gain in gross domestic product, the value of all goods and services produced, is the biggest in more than two years and follows a 1.7 percent pace in the last three months of 2005, the Commerce Department said in Washington. The reading is stronger than the 5.3 percent pace the government reported last month as the trade deficit widened less than previously estimated.
...
Business investment, which rose at the fastest pace in almost six years, and government spending also contributed to the improved reading in the first quarter.
...
Consumer spending rose 5.1 percent at an annual rate last quarter, the most since the third quarter of 2003.
...
A measure of inflation tied to the GDP report rose at an annual rate of 3.1 percent, less than the 3.3 percent that the government estimated last month.

The increase in prices tied to consumer spending and excluding food and energy costs, the measure preferred by Fed policy makers, rose at a 2 percent annual rate, putting it at the top of the 1 percent-to-2 percent range Chairman Ben S. Bernanke and other policy makers have said is acceptable.

101 Comments:

Anonymous Anonymous said...

The Consumer spending machine keeps going like it has continuously since 1998 with only one brief dip since 1998.

From what I am seeing around NJ & NYC, people are spending MORE not Less, but much more especially everyone who is spending thousands of dollars every month on clothes & just cares about eating out, shopping, & clubbing.



Seems like everyone is not bothered by higher rents, taxes, utilities, gasoline & insurance.

On a side note, closing costs on a $230,000 co-op in Queens are $4,000 ALONE just for NYS / NYS taxes & mortgage recording taxes.

How are people paying $800,000 for a tiny one family and the closing costs??

6/29/2006 08:33:00 AM  
Anonymous Anonymous said...

I don't get it. I am really surprized by this 5.6% number.

Either people are that out of control and that stupid, or someone is cooking the books.

Rate hikes, here we come.

We need Paul Volker asap....

6/29/2006 08:41:00 AM  
Anonymous Anonymous said...

Well continuing claims are the lowest since 2001.

And there are ALOT of high income earners around this area. A $75,000 year salary is basically working class and can't get you a rental except out in Nassau county.

Everyone is probably making in the six figures judging from how crowded the stores & malls are...

Being frugal or saving or not wearing designer clothes makes you look like you have a character defect and you are treated like inferior.

6/29/2006 08:43:00 AM  
Blogger Richard said...

so between the 1.7 in 4th qtr '05 and 5.6 1st qtr '06 we're looking at an annualized rate of 3.65%. healthy for sure. question is where is the growth profits going to? with flat wages the last couple of years not to labor.

6/29/2006 09:01:00 AM  
Blogger Richard said...

people don't let what you see fool you into thinking everyone's making 6 figures. it's simply not the case as the median income shows. there's alot of illusion out there. if you get under the cover you'll see most have little in savings, retirement and are living a debt-fueled lifestyle. they figure if they get in trouble they'll just borrow or sell the house.

don't join the lemmings, they'll eventually march off the cliff.

6/29/2006 09:04:00 AM  
Blogger patient homebuyer said...

i agree with those feelings as well. i live in queens and work in nyc, i have a few friends that make in the high 6 figures but most are in the 60-100k range and living in debt. it is all smoke and mirrors, i feel more comfortable with a little put aside just in case, i cannot live paycheck to paycheck carrying huge cc debt at a high rate

6/29/2006 09:16:00 AM  
Anonymous gary said...

Consume, consume, consume. I don't get it either. People jut keep buying and buying. My cousin just installed an outdoor shower by his pool for a cost of about $500 so that the kids can rinse off BEFORE THEY GO INTO THE HOUSE TO TAKE A SHOWER!

6/29/2006 09:20:00 AM  
Anonymous Anonymous said...

THE RECESSION IS COMING!

NEXT 12 MONTHS!

6/29/2006 09:32:00 AM  
Anonymous Anonymous said...

You know, there alot of people around here with 6 figure jobs. But remember those are combined incomes where both parties are working like dogs and they let daycare raise their kids.

On the flip side, I would say there are 10x more people who make between 50,000 and 150,000, who depend on that credit card to live the hollywood lifestyle. The wages don't support this area.

6/29/2006 09:36:00 AM  
Blogger patient homebuyer said...

I do not want to see a recession but things have got to back to reality, in 2002 my sister bought a townhome in marlboro nj and i remember mobil unleaded on rt 9 was 99 cents a gallon mow it is 2.90
my salary has not gone up 3 fold in that span and that is just gas what about everything else

6/29/2006 09:46:00 AM  
Blogger chaoticchild said...

The local economy is still healthy. I know there are a lot of 25-35 yr old with college degree make 75k to 120k.

However I agree that 75k to 120k income is barely middle class or getting by in this area. It seems that everyone wants to consume and need to feel rich. BMWs, cruises, designer cloths..............

Everyone in this age group and salary range seems to feel entitled that they need to live the high roller life.

My question to you all is how would this consumption culture affect the real estate market. I know most of these folks can't afford housing even with 25%-35% drop in RE prices. Would RE go even further down because no one can afford anything??? Or interest only/leases and 40 yr mortgage would be the norm????

6/29/2006 10:01:00 AM  
Blogger skep-tic said...

If people only care about the monthly payments, then maybe we will see permanently higher house prices relative to income. seems hard to imagine that we will ever go back to fixed mortgage, 20% down. look at Great Britain where long term leases (50 to 100 yrs) are very common, and variable rate mortgages for freeholds (ownership) are the rule

6/29/2006 10:16:00 AM  
Anonymous Anonymous said...

Right, a $73,000 for a single person in Queens (Flushing) is nothing.

I feel like I am living in poverty.

Only have a studio apartment for $850 a month and a six year old Nissan Altima, but everyone else who is probably 10 years younger in their early 20's has twice as much..

Meanwhile it seems like the only jobs I am qualified for are between $60,000-$80,000 a year.

I have CC debt of $30,000 but that is just to keep up.

Hopefully, one day I will make enough not to need to rely on credit cards

6/29/2006 10:18:00 AM  
Blogger grim said...

This comment has been removed by a blog administrator.

6/29/2006 10:32:00 AM  
Blogger chaoticchild said...

To anon @11:18,

How did you get 30k in CC debt??

You don't seem to live above your means???

CC

6/29/2006 10:34:00 AM  
Anonymous Anonymous said...

{{i agree with those feelings as well. i live in queens and work in nyc, i have a few friends that make in the high 6 figures but most are in the 60-100k range and living in debt.}}

And most live at home as well. Many people who grew up in this area still live at home rent free and their only expenses are car (lease) payments and credit card payments.

Many also live with family ex. 'Brothers basement' or second apartment owned by family member ususally completely rent free.

If you go around Queens College or Baruch, you see that everyone drives luxury cars & has cell phones and designer clothes.

6/29/2006 10:47:00 AM  
Anonymous Anonymous said...

I earn considerably less than $73K, my rent is $1K and the only debt I have is $6K that I owe for my 2005 Honda Accord. My savings is over six figures, not a penny of which was a gift from anyone.

It's a matter of need v. want. You have to stop looking at what everyone else has, and be more zen about it.

The key is wanting what you have, not getting what you want.

6/29/2006 11:00:00 AM  
Blogger patient homebuyer said...

it is true and the brothers basement or upstairs apt. comment
i am not the norm my wife and i have no debt at all and are religiously saving for our home
to hell with a bmw we dress just fine and eat out on the weekends and go on vacations as well, combined we do not make a fortune but it is all about spending wisely and living within you r means it comes with maturity i guess

6/29/2006 11:01:00 AM  
Blogger patient homebuyer said...

btw if you are looking for a 700sf
apt in lic queens for $800 a sqf and who isnt in this market here you go a day late and many dollars short.

Hi,



I’d like you to know that we've opened the sales office at the Badge Building Condominiums in Long Island City. We are offering one bedrooms, one bedrooms with a study, and two bedroom / two bathroom condominium residences. Some of the features of our residences include private outdoor space, high ceilings, and top of the line finishes. We have a model apartment completely set up with the actual kitchen and bathrooms. It also doubles as our on-site sales office.



At this point in time we are only showing by appointment to ensure that everyone has enough time to view the unit and go over the floor plans. Please let me know when you would like to come in and visit our model apartment. Our sales office number is 718-433-1055 and we’ll be happy to schedule an appointment.

6/29/2006 11:08:00 AM  
Anonymous UnRealtor said...

"I have CC debt of $30,000 but that is just to keep up. Hopefully, one day I will make enough not to need to rely on credit cards"


I don't know if you're serious or not, but having $30K in credit card debt is why you're struggling.

Get the money from wherever you can, and pay off that debt in full.

Don't pay interest, earn interest.

You're killing yourself.

6/29/2006 11:17:00 AM  
Anonymous UnRealtor said...

From CNN/Money magazine:

ASPEN (CNNMoney.com) -- Forget about the Fed. Attendees at Brainstorm had longer-term economic concerns.

Although the Federal Reserve will in all likelihood raise the target on a key short-term interest rate for a 17th consecutive time on Thursday, economists at Brainstorm, a conference sponsored by FORTUNE Magazine and the Aspen Institute, were not discussing the rate outlook, inflation, or other factors that have recently roiled the markets.

Instead, the issues of outsourcing, technology and energy dominated two panel discussions about the global economy on Wednesday.

Alan Blinder, a professor of economics at Princeton University and former vice chairman of the Federal Reserve, said the biggest threat to U.S competitiveness in the global economy is the continued shift of jobs overseas.

"The potential shift is massive, dwarfing anything we've seen in the past couple of years," he said. Blinder estimated that between 28 million and 42 million jobs in the U.S. are "potentially offshorable" and warned that it may not just be manufacturing and call center jobs that are at risk.

[The appropriately-named Mr Blinder is a few years late with this assessment...]

He said that any services job that doesn't require a large degree of personal service could wind up being lost to competitors and he thinks that a lot of white-collar workers are not prepared for this.

"To put it crudely, a lot of people like us are not used to the idea of competing with people in India, the Philippines and China for jobs," he said.

http://money.cnn.com/2006/06/29/news/economy/fed_brainstorm/

6/29/2006 11:28:00 AM  
Anonymous Anonymous said...

I got "lucky" in the savings mentality department ...kind of.

Most people don't get the life lessons early enough. This land of opportunity makes it way too easy on our children.

My mother and father died when I was a kid. No inheritance, nothing. Lived with my young, working sister, who told me to put up or shut up.

Always had two jobs, applied to one single (cheapest) excellent University, and also got MBA there. If I needed to sell blood to buy a book, I did.

Paid as I went. I ignored the "stuff." Never had debt - Just enough to build an 810 FICO. Never had a BMW (although I could) and don't want one. Never had a diesel jean and never will, because I still don't know what the hell they are. Want is slavery.

I am really sick of hearing people on this blog bitch.

See a therapist if you are over Age 21 and still thing cars and jeans are important.

6/29/2006 11:29:00 AM  
Blogger chicagofinance said...

anon in Flushing

30K in cc debt is out of line

your complaints ring hollow

get your financial house in order ASAP!

6/29/2006 11:31:00 AM  
Anonymous Anonymous said...

Reading this blog, you'd think everyone in NNJ drives a BMW except the 50 or so people who post here.
This morning on my commute to work, I paid particular attention to the cars driving on Rt. 80 in Parsippany. About 1 in 6 was a luxury car (BMW, Audi, Mercedes, Land Rover, etc). Toyotas, Fords, Chevy's etc are much more common. You are NOT out of place if you don't drive a BMW, so please stop whining about it!

6/29/2006 11:44:00 AM  
Anonymous Anonymous said...

I can relate to the fellow blogger.

I am in a sad, sad boat. I make between 70-90,000. I am 30, rent an apt for $2,000 a month, I have about 15,000 in cc debt. Believe it or not, some of that debt was I paid my taxes with cc card. I am a total fucking loser I know.

Taxes screw me because I have nothing to deduct. I made the mistake of spending about 5,000 on new TV and laptop.

I have don't go out to eat, I pack my lunch, I don't own a car, so..I struggle and I don't know why...??

6/29/2006 11:44:00 AM  
Blogger Mr. Oliver said...

Amen, Chicago.

Until you get your credit card debt in order, you've got no bigger issue.

Come up with a plan to get out from under it in a concrete amount of time and stick to it.

My suggestion is to pickup a program like Quicken or Microsoft Money. Most people have no idea where there money truly goes. Either of these can help you get a handle on it.

If you are honest with yourself, and itemize each and every dollar that comes in and out, and where it is going, you will be amazed at what you will find.

6/29/2006 11:45:00 AM  
Blogger Mr. Oliver said...

Anon 12:44,

If you're struggling and don't know why, I would suggest reading your post over and over. The answers are right there.

6/29/2006 11:46:00 AM  
Anonymous Anonymous said...

Sad Sad boat:

I'm the cheapo who told people to stop bitching. Suck it up. Get the hell out of that apt. Chop Chop.

Move if you have to.

Nobody you are trying to impress even cares, and you will probably never see them again in a few years.

If you have to, spend a few months looking for a job at the same pay rate in a lower cost town. Even if you love your job, it's not loving you.

You'll have your debt paid in one year. What a burden that will be off your shoulders. How much more you will enjoy life.

And you will be on the way to being able to buy a home.

Geez..I'm still trying to save people. Promised myself I'd stop doing this.

6/29/2006 11:55:00 AM  
Blogger chicagofinance said...

Anonymous said...
I am in a sad, sad boat. I make between 70-90,000. I am 30, rent an apt for $2,000 a month,
6/29/2006 12:44:27 PM

Your rent is too high for your income. Move, or make more money.

6/29/2006 12:00:00 PM  
Anonymous UnRealtor said...

rent an apt for $2,000 a month

Too much, find an apartment for half as much ASAP.



I have about 15,000 in cc debt

Pay it off, sell stuff if necessary to pay it off. Empty your bank account if necessary. Pay off this massive debt immediately. Work at McDonalds or deliver pizzas on the weekends (not kidding).



Believe it or not, some of that debt was I paid my taxes with cc card.

Pay that stuff with your savings.



Taxes screw me because I have nothing to deduct.

Don't blames "taxes" blame your spending habits.


I made the mistake of spending about 5,000 on new TV and laptop.

Return them, if still new.

With a $15K high-interest loan, you should be buying a TV for $200. Actually, you should also cancel Cable TV, if you have it.

I haven't paid interest on anything on many years. Interest is what the bank pays you.

6/29/2006 12:04:00 PM  
Blogger njresident286 said...

Rent is to high and I am sure that you are spending a lot of money on taking girls out for dinner and trying to impress them. Also, I am sure your after work happy hours turn into nights of drinking which get expensive real quick.

Do this, for 1 month only go out for drink once every 2 weeks, and out to a nice dinner once in the month. The other weekends keep it VERY low key and see how much you save. I can assure you it will be an insane amount of money.

6/29/2006 12:06:00 PM  
Blogger grim said...

FOMC statement in an hour and fifteen.

grim

6/29/2006 12:12:00 PM  
Blogger skep-tic said...

paying off debt is not fun.

you don't get to drive a fancy car or watch a plasma TV.

Almost nobody cares about their debt. They only want to know the minimum monthly payments.

it will take a major catastrophe to change this culture. this country has been living on easy street for 60 yrs

6/29/2006 12:12:00 PM  
Anonymous Anonymous said...

This is sad, sad boat here ( guess thats my new name..lol)

Thanks for the suggestions, but I really can't find anything thats under 2,000 thats not a dump, and not a 2 hr commute to nyc. I work in nyc.

You guys really think me only making 70-90,000/year warrants me to look for other employment?

Never really thought about that

6/29/2006 12:12:00 PM  
Anonymous Anonymous said...

http://money.cnn.com/2006/06/13/real_estate/Harvard_study_housing_slow_growth/index.htm

6/29/2006 12:14:00 PM  
Anonymous Anonymous said...

Sad Sad Boat, you didn't even look.

You can get an apt. for a decent commute under $1,000.

You must tell yourself that it is time to take care of yourself. Not things. Not parties. Not NYC. It's all marketing.

You haven't been paying attention to prior posts, either, or else you are new. Listen to me. I command you. Look into my eyes. You are feeling drowsy.

You must find zips within a reasonable commute on the train, or the bus, and do it now. You can get a nice apt. within 1 hour commute for under $1,000. You will trade your party time for commute time.

Go to mapquest.com. Open a new window with NJ Transit on it (and bus). Find a nice little town and then open up their on-line newspaper in a new window. Search the apt. for rent.

Do it now. You're feeling sleepy.

6/29/2006 12:28:00 PM  
Blogger patient homebuyer said...

lets make some predictions
1/4 point
half point
no raise in rates

i say 1/4 point

6/29/2006 12:29:00 PM  
Blogger Mr. Oliver said...

Anon 1:12 wrote:

"Thanks for the suggestions, but I really can't find anything thats under 2,000 thats not a dump, and not a 2 hr commute to nyc. I work in nyc."

Then you're not looking very hard. There is a world just east of NYC called Queens. If you cannot find a one-bedroom there for 1,300 then you're not trying very hard.

I left Manhattan in '99 for Astoria and have not looked back. Had a 1br for 1,200, now in a 2br paying $1,675.

6/29/2006 12:29:00 PM  
Anonymous Anonymous said...

.5

We're due, lookin at my last ten years of PBGC rate charts.

Pat

6/29/2006 12:34:00 PM  
Blogger grim said...

I'll throw caution to the wind here and put out my wild guess.

25 bps with very little change in wording.

6/29/2006 12:35:00 PM  
Blogger Richie said...

50bps with Ben telling Lereah to mind his own business.

6/29/2006 12:39:00 PM  
Anonymous Anonymous said...

sad sad,

I live very near NYC, have less monthly payments for housing, no credit card debt, never spent more than $250 for a TV, no laptop, cheap car, and yet I make more than twice you do. Why, because I never spent beyond my means, planned for the future, saved 30% when I got my first job and lived at home and still save 30% (much much bigger 30% now)

How...sacrific, leaning the difference between want and need, understanding the difference between assets and stuff.

"Taxes screw me"....hey victim, SONY screwed you when you dropped 3K on a TV...read a book, start with one about personal finance...

6/29/2006 12:39:00 PM  
Anonymous Anonymous said...

1/4 point, with language indicating its not done....1/2 just aint gonna happen...

measured steps

6/29/2006 12:40:00 PM  
Blogger grim said...

50bps with Ben telling Lereah to mind his own business.

Ha!

6/29/2006 12:41:00 PM  
Anonymous Anonymous said...

go on Craigslist if you want to find a cheaper place. You can find a 1 br. for less than 1000 in Port Washington NY in LI (35min commute) .. Serioulsy most people just don't know where to look.

6/29/2006 12:43:00 PM  
Blogger grim said...

Best time to plant a tree was 20 years ago.

Next best time is right now.

6/29/2006 12:43:00 PM  
Blogger njresident286 said...

50 is never going to happen. it will be 25, similiar vague wording as usual

6/29/2006 12:43:00 PM  
Anonymous Anonymous said...

Sad, sad boat - you said:

Thanks for the suggestions, but I really can't find anything thats under 2,000 thats not a dump, and not a 2 hr commute to nyc. I work in nyc.

Have you looked in the outer boroughs?

A completely renovated apartment in my building in Astoria, Queens, is $1200 - prewar and spacious, with tall ceilings and big windows.

There are lots of new buildings going up in Astoria. Average rent seems to be about $1400 or $1500 in the new buildings.

If you could save $500 a month on your rent, wouldn't that help a lot?

PS - 15 minutes to midtown, 30 to downtown.

6/29/2006 12:44:00 PM  
Blogger Metroplexual said...

I am reminded of Freud when I see all of these people overspending. In his theory of the Id and Ego you had the Superego to act as an internal parent controlling the impulses of the Id. Have we as a society lost our superego internal impulse control.

6/29/2006 12:45:00 PM  
Anonymous Anonymous said...

"Thanks for the suggestions, but I really can't find anything thats under 2,000 thats not a dump, and not a 2 hr commute to nyc. I work in nyc."

You're not looking hard enough.

I just found a great little cottage with woodburning fireplace, loft bedroom, in-unit laundry and off-street parking in Clifton NJ for $1K.

Granted, I looked at 30-40 dumps before I found this place, but they ARE out there.

This is where I plan to watch the housing collapse from. Affordable housing is the reason I have no debt and considerable savings.

You absolutely have to find a cheaper place to live!

6/29/2006 12:46:00 PM  
Blogger RentinginNJ said...

Thanks for the suggestions, but I really can't find anything thats under 2,000 thats not a dump, and not a 2 hr commute to nyc. I work in nyc.

Come-on. I rent a two bedroom apt. in a 2 family house in Clifton NJ for almost half of that, with heat included. It’s nothing great, but my wife and I are saving money for a house and doing quite well. It’s also close to a train station. 40 minutes from Clifton to Penn Station NY.

It’s called sacrifice. We are living below our means today, so that tomorrow we can have a decent house and not live under a steaming pile of debt. So what; you add a few minutes to your commute and your apartment isn’t quite as impressive. Get out of debt first and then worry about improving your lifestyle.

6/29/2006 12:57:00 PM  
Blogger grim said...

Who else is from Clifton?

grim

6/29/2006 01:06:00 PM  
Anonymous Anonymous said...

Sad boat here again.

Once again thanks for all the tips. You are all right, I do need to find cheaper rent. But hear me out for a second, you guys in this board are a different breed. Alot of people have told me that if I find anything for 2,000 I am lucky. Many people have seem my apt and said what I pay for it is cheap, I have looked (admit not as good as I proabley should have) and it ain't as easy as you guys make it sound. Also, for some up you guys with your lower rents, my question for you is, how long have you been in these apts? 4 years? 5 years? less than a year? I doubt some on here would say within the year.
But still I am taking in the advice here, so don't throw me in the shark tank.

Yes, new to these boards btw.

6/29/2006 01:13:00 PM  
Anonymous Anonymous said...

grim, isn't investordavid from Clifton? maybe not.

6/29/2006 01:14:00 PM  
Anonymous Anonymous said...

oh yeah, I don't party and sleep with all the girls that some have made me out...

well, there was last weekend with ol whats her name...just kidding.

-sad boat-

6/29/2006 01:16:00 PM  
Anonymous Anonymous said...

Sad Sad (aka F'in Loser),

So the mASSES tell you $2000 is good?

Follow the herd? Do your own thinking. Would a friend actually say "Hey dude, you can't afford this with all that debt?" Nope they'll tell you what a great deal it is.

Were not your friends here, and for that reason you get it straight up...

Stop fooling yourself.

$1200, 40 minutes to work, read a book.

Savings: 10K a year

6/29/2006 01:18:00 PM  
Anonymous Anonymous said...

Sad boat, you are making my day.

You are making me feel like this:
http://tinyurl.com/k8e4o

Enjoy changing your life. It's the only life you're gonna get.

Pat

6/29/2006 01:19:00 PM  
Blogger chicagofinance said...

25 bps it is - ugh

6/29/2006 01:22:00 PM  
Anonymous Anonymous said...

Margaritas on me.

Pat

6/29/2006 01:24:00 PM  
Anonymous Anonymous said...

I also don't understand how all these people have these huge SUV's even the medium size one's get really bad gas millage. How the H*LL do they all afford it? Half the vehicles out there are SUV's. Plus to maintain those vehicles are a lot too.

I guess that part of the reason we have a negative savings rate.

6/29/2006 01:26:00 PM  
Blogger patient homebuyer said...

WHAT WILL THIS CURRENT raise in rates mean to the market any thoughts or opinions?

6/29/2006 01:30:00 PM  
Anonymous Anonymous said...

was so expected it's a yawn.

6/29/2006 01:31:00 PM  
Anonymous Anonymous said...

Can interest rate suddenly spike up
like 5% to 10%?

6/29/2006 01:36:00 PM  
Anonymous UnRealtor said...

$950 1BR apartment in Summit, NJ:
http://newjersey.craigslist.org/apa/165837921.html
(triple-click to select long links)

You just saved over $12,000 right there. And if a commute from Summit is "too long," stop whining and continue to sink greater into debt.

It's not a "good deal" to pay $24,000 in rent as you sink deeper into debt.

Stop buying nonsense stuff, and stop paying interest, and you'll get ahead.

Excuses won't get you out of your hole, but instead facing the issue, and executing a plan (as laid out here by numerous posters).

6/29/2006 01:40:00 PM  
Anonymous Anonymous said...

"How soon will it hit you"
http://www.bankrate.com/brm/news/fed/how-soon.asp

http://tinyurl.com/create.php


Pat

6/29/2006 01:40:00 PM  
Anonymous Anonymous said...

P.S. Investor David..told you to watch the deals - look at that Citibank 5% no min.

6/29/2006 01:42:00 PM  
Blogger njresident286 said...

********************************
I also don't understand how all these people have these huge SUV's even the medium size one's get really bad gas millage. How the H*LL do they all afford it? Half the vehicles out there are SUV's. Plus to maintain those vehicles are a lot too.

*******************************

I know gas is expensive, but I will stick up for SUV owners a little bit.

say an SUV gets around 15MPG average (which i think may even be 1 or 2 MPG low). Now take a normal car, not a civic or an accord.

A toyata Avalon (my dad has one) averages about 21MPG a camry maybe 26.

I would say we can assume 25 as an average for most cars with a mix of city and highway.

that net difference is 10MPG. while not a small amount, certainly not tremendous. People who spend 60 to fill up an SUV would spend 40 on another car.

While SUV's do get less gas mileage, it is still expensive to fill up regardless.

DISCLAIMER: I have a 1996 blazer. I have no car payments. It does not make financial sense for me to get rid of a perfectly working SUV to purchase a newer car that get better gas milage. Once you factor in increased insurance and depreciation, it makes more economic sense to hold onto the SUV. If someone can prove me wrong, I would be more than open to idea's and opinions. These are just my thoughts based on research I have done.

6/29/2006 01:45:00 PM  
Anonymous Anonymous said...

You cannot find an apartment in most of Queens or Nassau for less than $1,500 a month unless you are willing to live near the Belt Pkwy near JFK.

Plus the 15% brokers fee.

Get real, it is nearly impossible to make it under six figures a year living in Queens as a single person let alone Northern NJ.

I was the one making $73,000 a year. At home during the week, all I eat is Tuna Fish and Pasta at 33 cents a box. It is all I could afford.

6/29/2006 02:15:00 PM  
Anonymous Anonymous said...

You cannot find an apartment in most of Queens or Nassau for less than $1,500 a month unless you are willing to live near the Belt Pkwy near JFK.

Plus the 15% brokers fee.

Get real, it is nearly impossible to make it under six figures a year living in Queens as a single person let alone Northern NJ.

I was the one making $73,000 a year. At home during the week, all I eat is Tuna Fish and Pasta at 33 cents a box. It is all I could afford.

6/29/2006 02:15:00 PM  
Blogger chaoticchild said...

anon making 73k,

I agree. I was renting by Queens Center mall 1.5 year ago. I paid 1300 for a 1 bedroom.

Everywhere in NYC is expensive.

CC

6/29/2006 02:20:00 PM  
Blogger Rich52 said...

njresident, I think anon 2:26 is referring to the XL sized SUV's such as Yukon's, Expeditions and Suburbans. I commute on the parkway and see a ton of these everyday. There's nothing wrong with having a bigger car, but seems like these are the choice vechicles for NJ folks even those with long commutes. Seems a bit excessive as these vechicles are rated to give around 13MPG. $60 fillups? Try $90 since these SUV's have 30+ gallon tanks.

And I would agree not to consider a civic as a "normal" car, since its small. But a camry or an accord would definetly qualify and give in the area of 30+ MPG, not 26, double that of most mid sized SUV's.

6/29/2006 02:22:00 PM  
Anonymous Anonymous said...

Do what you have to do to get rid of your debt. Go live by the airport for a year.

Deal with it. Time will "fly" ..sorry, bad joke.

But you will have much more money when your aren't giving your paycheck to your credit card companies every month.

6/29/2006 02:23:00 PM  
Anonymous Anonymous said...

I live in forlal park,NY I am a recent renter.. $800 for a garden apt. (1st floor) with a yard. 10 min walk to NYP train station that is 38min to Manhattan.. I left my Stewart Manor, NY (Garden City vicinity) that was a basement apt. very tiny for $650..... That was all I needed I was single and never home.

6/29/2006 02:40:00 PM  
Anonymous Anonymous said...

PS. All Nassau County NY

6/29/2006 02:41:00 PM  
Anonymous Anonymous said...

What kind of town is Clifton??

6/29/2006 02:45:00 PM  
Blogger Mr. Oliver said...

Anonymous 3:15 & Sad Sack,

I'll say it again, if you cannot find a one-bedroom in Astoria (or Woodside, for that matter), you're not looking very hard. Both neighborhoods are a 10-15 minute train ride into Midtown.

To say you have to be by JFK to get an affordable apartment is laughable.

There is a very handy website called Craigslist (www.craiglist.com) Perhaps you've heard of it? Check it out. There are a ton of apartments, many without broker fees.

Move into an affordable apartment and stop charging stuff you don't need and cannot afford.

The whining is starting to sound a bit pathetic.

6/29/2006 02:49:00 PM  
Blogger Mr. Oliver said...

This comment has been removed by a blog administrator.

6/29/2006 02:53:00 PM  
Anonymous dreamtheaterr said...

Sad sad boat,

Sacrifice is what is needed early on, and it can be done.
I came from overseas to the US to do my MBA, worked 30 hrs a week (working on campus cafeterias and cleaning old labs at minimal wage) while doing 18 credits and graduated in 2 yrs with no student loans and no CC debt.
I then shared a 3 bedroom with friends in Queens for a year, and saved $30K in one year on <$100K salary.
It gave me the opportunity to start a family early - wife is stay at home with baby. We live in NJ and in a 2 bed, 2 bath apt complex for $1550. And still put aside $1200 a month for a house down payment in 2-3 years. We also paid off a new Honda CRV in 1 year.

I commute 1.5 hrs to Manhattan every day. On my crosstown walk every day after work, I see young folks blowing up money all the time..... little realizing the consequences of perhaps becoming a Walmart greeter when they are 70 and not a dime saved for retirement.

I have no problem with people spending money...they should enjoy it, but it's a problem when guys use debt to finance their pursuit of women and wine.

I suggest reading a little, powerful book called The Richest Man in Babylon.

6/29/2006 02:54:00 PM  
Blogger Mr. Oliver said...

This comment has been removed by a blog administrator.

6/29/2006 02:54:00 PM  
Blogger Mr. Oliver said...

Anonymous 3:15 & Sad Sack,

I would advise you to check the below link out to get an idea of how to get your financial situation under control.

http://danwho.net/mp/index.php?id=snl_dontbuystuff

I would recommend this to everyone posting on this board. A very helpful link.

6/29/2006 02:56:00 PM  
Anonymous Anonymous said...

Psychology, Mr. Oliver.

Sad Sad Boat is ready. Boat has previously made the appropriate decision internally, and is seeking external confirmation, which he just got here this afternoon. He will be fine.

The Queens whiner is not yet ready to give up the fantasy, or to admit that he/she has made past mistakes that are completely his/her fault. You don't earn $73K and have $30K in CC debt without having some mistakes in your past.

Once the responsiblity is accepted for the prior actions, Queens whiner's life will begin.

6/29/2006 02:58:00 PM  
Anonymous Anonymous said...

Grim said...
I'll throw caution to the wind here and put out my wild guess.

25 bps with very little change in wording.


Dang, you're good, Grim.

6/29/2006 03:01:00 PM  
Blogger Mr. Oliver said...

Well said, Anon 3:58.

We've all made financial mistakes. However when you realize it is your own fault, it also empowers you to realize you can change it.

Of course, knowing you need to change your habits and actually being willing to follow through on changes in lifestyle are two different things. I hope he follows through sooner rather than later, for his own sake.

6/29/2006 03:02:00 PM  
Anonymous Anonymous said...

sad sad -
what are you doing on this blog??? please don't tell me you're looking to get a condo! you sound like the type who would go for an IO.
my mortgage is $1700 for a 1BR. I make less than you but I'm saving about $1500/month. I don't feel like I'm depriving myself.
something else is eating up your salary. what's the deal yo?

Mr. G

6/29/2006 03:12:00 PM  
Anonymous Anonymous said...

Good points from everyone here.

Lets remember, I am 30 not 60...

I know you guys bash the younger crowd, but its a fine line between wanting to enjoy youth and nightlife while you can, and being financialy responsible at the same time.

What the heck would I do in Summit?
Date all the senior citizens?

Just my humble opinion.

ok, now that I said my part, I sit and await the lashing I am about to get from all the bubble bloggers.

6/29/2006 03:13:00 PM  
Blogger Mr. Oliver said...

Delusions, delusions, delusions...

Anon, many of us are your age.

I for one am 37.

6/29/2006 03:18:00 PM  
Anonymous Anonymous said...

MR. G

I am here new to this blog because I believe their will be a bursting of the real estate bubble. Thats all.

But I need to go over my money situation with a fine tooth comb. I just don't understand. It keeps me up at night, I hope I don't become the old man at walmart giving out stickers to the children.

In any case, this blog has motivated me today to try to get myself in order.

Your new friend,
Sad boat

6/29/2006 03:19:00 PM  
Blogger Mr. Oliver said...

Rock on, Sad Boat.

Now, stop being "Anonymous" and register your name, "Sad Boat."

6/29/2006 03:23:00 PM  
Anonymous Anonymous said...

What kind of town is Clifton??

It's an okay working class town (city, actually) about 16 miles east of NYC. I think the population is around 80K.

It's got a few nice neighborhoods where it borders Montclair and Nutley, and some rough areas on the Passaic and Paterson borders. It has a NJ transit station, and easy access to most of the highways in the area.

The school system is so-so, which is of course a major consideration for those with children. For someone without children who's looking for reasonable place to hang your hat, it's not bad. Nothing sexy, but it's an okay town.

6/29/2006 03:24:00 PM  
Blogger Mr. Oliver said...

Sad boat, pick up Microsoft Money or Quicken, and use them.

It will help you immensely to understand your cash flow.

Run, don't walk, to the store. I'll wait.

6/29/2006 03:27:00 PM  
Anonymous Anonymous said...

about 16 miles east of NYC

Make that west of NYC!

That week I was absent from fourth grade geography is coming back to haunt me again!

6/29/2006 03:27:00 PM  
Anonymous Anonymous said...

I'm 43

I really don't think there are that many seniors here. Some do stop by.

6/29/2006 03:30:00 PM  
Anonymous Anonymous said...

boat -
Microsoft Money will tell you exactly where your dough's going. just take the time to log everything you're spending.

if nothing else, at least you won't be up at night wondering where it's going.

Mr. G

6/29/2006 03:31:00 PM  
Anonymous UnRealtor said...

Mr Nightlife,

If you can't see that you're moving backwards, no one here will be able to convince you otherwise.

Having $15K in credit card debt (let alone $30K) is absolutely insane, and is a DefCon 1 situation requiring IMMEDIATE action to correct. Or, just go to the club and drop another $60 on $8 worth of beer.

If you were earning $200 in interest each month, you could finance your nightlife, and move forward at the same time. What's the monthly interest hit on a $15K credit card bill?

As an example, by not earning $200 interest each month, and spending $200 interest each month, you're moving backwards at a rate of $400 every month.

Have a look at these calculators, especially "What will it take to pay off my balance?"

http://money.aol.com/calculators#creditcards

Best of luck.

6/29/2006 03:57:00 PM  
Anonymous Anonymous said...

Wondering what peoples opinions are of Warren, NJ?

Thank you.

6/29/2006 04:13:00 PM  
Anonymous Anonymous said...

Lets remember, I am 30 not 60...

I know you guys bash the younger crowd, but its a fine line between wanting to enjoy youth


Boat,

I’m 31. Just yesterday someone was on this blog blasting us young whipper snappers for bashing the Baby Boomers. Listen. I enjoyed my youth. I partied in college. I had a shore house in Belmar 2 blocks from DJ’s. I’ve strolled out of the NYC clubs at 8:00 a.m. more times than I can remember. It was gun, but those days are over.

You are 30, not 20. It’s time to grow up and take and some responsibility.

6/29/2006 07:50:00 PM  
Anonymous Anonymous said...

"fun" not "gun"...sorry

6/29/2006 07:51:00 PM  
Anonymous Anonymous said...

anon 08:50:30 pm

yeah man, I hear you. I totally agree. I think some people on here may have gotten me wrong or I came off in the wrong way.

I don't really go out that much, I can't afford it and I know it. But, I feel the dilema is wanting to live near some nightlife and things of that nature, but yet still find rent under $2,000. I don't think it can happen. Yes, I could travel out to Summit or BFE, NJ but what would I do on the weekends?
Just read a book all night? as some on here have suggested.

I admit, I made the mistake of living near these spots, now I am in debt because of it. I should have known better.

Around this metro area you really can't have the best of both worlds....unlike other places....say Denver, CO or Austin, Tx or Memphis...hell...even Philly...

I know some people will say.."hey boat quit complaining" "hey boat..just get the hell out you little baby"...I would suspect these people are married, make more money than me, more settled in life than I am.

I think I will move as soon as I get my financial house in order.

Quicken, here I come baby.

--Sad Boat--

6/29/2006 08:23:00 PM  
Anonymous UnRealtor said...

"Yes, I could travel out to Summit or BFE, NJ but what would I do on the weekends?"


Take a train into NY City, if you desire, for $6.

There are many 'hot chicks' in downtown Summit on a Saturday night, by the way. Believe it or not, there is actually life outside the garbage-laden streets of Manhattan! ;-)

6/29/2006 08:38:00 PM  
Anonymous Anonymous said...

I think I will move as soon as I get my financial house in order.

Spoken like a true debt junkie. :)

You need to move in order to get your financial house in order. And, you need to remove yourself from the source of your spending. Besides, it’s not like you are moving to the mountains of Wyoming. You could be a half-hour to NYC & even closer to Hoboken.

Besides, I think you’ll be surprised to find you will actually do quite well with the chicks in the suburbs. With the $1k per month you are saving on rent, you could even go out to dinner now and then. You’ll go from being the poor guy to the guy who makes a half-way decent living. No offense, but face reality, you’re too broke for many of the chicks that hang out in Manhattan.

6/29/2006 09:20:00 PM  
Anonymous Anonymous said...

Anon 10:20..now I disagree.

The chicks that hang out in Manhattan (mostly) are the ones getting off the ferry/bus/train, in debt up to their tattood a**.

lol..they're the ones heading in looking for Mr. Bucks.

Boat would actually find the real ones elsewhere.

Pat

6/30/2006 04:59:00 AM  

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