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Old 02-10-2016, 04:05 AM
 
25,556 posts, read 23,814,588 times
Reputation: 10119

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Quote:
Originally Posted by jm1982 View Post
I know a lot of people mention interest rates having an effect but I think people look more at the monthly payments . Even at these historically low interest rates people still overall can't afford homes in LA.

Nobody really knows for sure what will happen with prices , but if you look at prices they are now historically high .

I think LA will continue to be a magnet for high income earners or the wealthy.

Just yesterday I was driving through the Playa Vista development it's really amazing so many new expensive homes and they keep building . They have several restaraunts amenities too.
These people all bought recently so they paid high prices and didn't pay 1970s prices or even 1990s prices .
I know the tech economy has been growing there as well.
I know I heard about of techies have bought in areas like that so it makes me wonder what happens when or if the tech bubble bursts.

It looks like we are already seeing signs of a tech bubble bursting
http://finance.yahoo.com/news/we-wuz...151711386.html
Of course it's hard to say for sure what will happen but the tech bubble bursting of course wouldn't be a good thing I don't think for housing prices .
I've been thinking for a while that this new tech hype was similar to the last time around .
Pretty much none of these companies are profitable , I've heard that even the giant Uber is not profitable and even long established Amazon has been losing money for years .

Sure these venture capital fueled tech companies can create jobs quickly, but the jobs can disappear quickly too . I also read that tech companies don't actually create as many high paying jobs as the media makes it out to be .
Many of the recent ones rely on pretty low paid independent contractors to run their business . Uber , lyft , postmates , etc
Amazon is not really losing money. They constantly find new stuff to spend the money on so they don't have to report profits. Uber and Lyft are here to stay. Google is extremely profitable and so is Apple.

I recall the tech bubble busting in years ago. Did it permanently dampen real estate in any big city? No.

No long term ill effect is going to happen.
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Old 02-10-2016, 04:07 AM
 
25,556 posts, read 23,814,588 times
Reputation: 10119
Quote:
Originally Posted by jm1982 View Post
I know a lot of people mention interest rates having an effect but I think people look more at the monthly payments . Even at these historically low interest rates people still overall can't afford homes in LA.

Nobody really knows for sure what will happen with prices , but if you look at prices they are now historically high .

I think LA will continue to be a magnet for high income earners or the wealthy.
I'm sure many of the older people also bought homes years ago in neighborhoods that were downtrodden. So they never spent much on these houses and they are paid for. These older people are not going anywhere and those homes will go to their children or whoever they left them too.
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Old 02-10-2016, 10:25 AM
 
1,043 posts, read 894,230 times
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Quote:
Originally Posted by NyWriterdude View Post
Amazon is not really losing money. They constantly find new stuff to spend the money on so they don't have to report profits. Uber and Lyft are here to stay. Google is extremely profitable and so is Apple.

I recall the tech bubble busting in years ago. Did it permanently dampen real estate in any big city? No.

No long term ill effect is going to happen.
I'm still not convinced any of those companies are very profitable.

Amazon sells stuff for so cheap and pays tons in shipping costs, Uber has a lot of headwinds including a lot of unhappy workers who don't know if they are contract or employees, I'm not really sure where google generates their income other than advertising.

I still think we may have another tech bubble... I'm not interested in investing in any of these companies until I can see they are profitable.
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Old 02-10-2016, 12:41 PM
 
10,097 posts, read 9,931,328 times
Reputation: 5225
What's all the talk of depression?
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Old 02-10-2016, 12:50 PM
 
Location: Los Angeles (Native)
25,303 posts, read 21,291,837 times
Reputation: 12312
Quote:
Originally Posted by NyWriterdude View Post
Amazon is not really losing money. They constantly find new stuff to spend the money on so they don't have to report profits. Uber and Lyft are here to stay. Google is extremely profitable and so is Apple.

I recall the tech bubble busting in years ago. Did it permanently dampen real estate in any big city? No.

No long term ill effect is going to happen.

With Amazon sales are strong , but they are losing money
Amazon being Amazon: Strong sales gain, but losing money - Fortune

Of course I was just mentioning the big companies that everyone knows.
If you look on Crunchbase every day there are companies getting money and hiring employees
https://www.crunchbase.com/funding-rounds

Has anyone heard of Fuze? They just raised $112million this month
It's amazing how many companies are getting many millions of money every single day
https://www.crunchbase.com/funding-rounds

I think especially in L.A if the tech bubble slows down it will have an effect, because the L.A "Silicoln Beach" is home to more second tier companies it seems versus up north in Silicon Valley where the huge established companies are mostly based.

My point is though if even these household names like Uber, Amazon and others can't turn a profit ...what is the likelihood of some tech company nobody has heard of turning a profit?

If people slow down investing in these startups it will have an effect for sure on the economy.
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Old 02-10-2016, 01:00 PM
 
Location: West Hollywood
3,190 posts, read 3,164,297 times
Reputation: 5262
Quote:
Originally Posted by radiolibre99 View Post
What's all the talk of depression?
China, Japan, Russia and most of Europe are sliding into depression. America is part of the global economy, so we wouldn't be immune to the ensuing global depression.
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Old 02-10-2016, 01:04 PM
 
Location: Los Angeles (Native)
25,303 posts, read 21,291,837 times
Reputation: 12312
Quote:
Originally Posted by MordinSolus View Post
China, Japan, Russia and most of Europe are sliding into depression. America is part of the global economy, so we wouldn't be immune to the ensuing global depression.
The new term for depression is "correction".
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Old 02-10-2016, 01:05 PM
 
Location: West Hollywood
3,190 posts, read 3,164,297 times
Reputation: 5262
Quote:
Originally Posted by jm1982 View Post
With Amazon sales are strong , but they are losing money
Amazon being Amazon: Strong sales gain, but losing money - Fortune

Of course I was just mentioning the big companies that everyone knows.
If you look on Crunchbase every day there are companies getting money and hiring employees
https://www.crunchbase.com/funding-rounds

Has anyone heard of Fuze? They just raised $112million this month
It's amazing how many companies are getting many millions of money every single day
https://www.crunchbase.com/funding-rounds

I think especially in L.A if the tech bubble slows down it will have an effect, because the L.A "Silicoln Beach" is home to more second tier companies it seems versus up north in Silicon Valley where the huge established companies are mostly based.

My point is though if even these household names like Uber, Amazon and others can't turn a profit ...what is the likelihood of some tech company nobody has heard of turning a profit?

If people slow down investing in these startups it will have an effect for sure on the economy.
Tech startups and even well-established tech companies don't have a good employee to company value ratio. Most tech startups have less than ten employees iirc. The biggest problem with industry bubbles bursting is the large number of workers being left without jobs. That's not a big issue with the tech bubble.
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Old 02-10-2016, 01:37 PM
 
10,097 posts, read 9,931,328 times
Reputation: 5225
Quote:
Originally Posted by MordinSolus View Post
China, Japan, Russia and most of Europe are sliding into depression. America is part of the global economy, so we wouldn't be immune to the ensuing global depression.
Most I heard was that China's economy grinding to a halt and Southern Europe being in the same boat it has been for the last six years.

But could this really lead to global depression? This isn't penny stock buy gold newsletter stuff right?
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Old 02-10-2016, 02:08 PM
 
1,714 posts, read 3,832,048 times
Reputation: 1146
Quote:
Originally Posted by radiolibre99 View Post
Most I heard was that China's economy grinding to a halt and Southern Europe being in the same boat it has been for the last six years.

But could this really lead to global depression? This isn't penny stock buy gold newsletter stuff right?
I don't know... the money gotta flow somewhere. Maybe the Chinese's continual investment in our real estate means more of our money and jobs coming back to us.
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