LOS ANGELES — This was sent in by a reader, someone with a financial background, so we’re calling him Money Guy. This week we’ll follow up with the argument on why this is actually a good time to buy. But today he has the floor so we’re all learning about "coordinated currency devaluation." Better go get some coffee.
"I think it’s a bad time to buy for a few reasons. Let me include the caveat that I expect markets to appear more buoyant for the remainder of the year with 2010 ushering in renewed economic weakness. I’ll give you four points that are reality and two more that are speculative.
1. The supply of new construction, particularly condos, is staggering. Every time a Rowan et al goes to auction it provides a cheap entry to someone who maybe preferred West Hollywood or Pasadena but who’ll now go downtown based on reduced price. The trickle-down effect. Koreatown, Hollywood, mid-Wilshire are all overdeveloped given demand.