“We have not been impacted by the real estate crash…”

IMG_1.jpgIf you managed to fight through the fundraising on WBUR this morning, you heard those very words from the mouth of our own State (Commonwealth?) Treasurer Timothy Cahill. He shared that and a lot of other fairly positive, fairly interesting bits of information with with Bob Oakes in this extended interview

Another tidbit from the interview: the Massachusetts State Employee pension fund is down a mere 8% this calendar year. Not only is that well below the losses (20-25%) suffered by the market as a whole, but it’s also better than my own 401k, which dropped 15% since January.

Despite the relatively unscathed state of the Commonwealth’s finances, and unlike many people who limited their market exposure over the past year (myself included), Cahill is 100% behind Henry Paulsen’s bailout plan. He argues that less available credit will hurt small business and education, areas where debt can be a potent economic stimulator.

Most importantly, Cahill said “We’re closer to the bottom. I don’t know if were at the bottom, but were certainly close to the bottom. Once we hit bottom, the markets will start coming back and we’ll start moving up.”

So what better time to buy? Volatile markets are no time to horse-jump between stock investments, and with a looming bailout and a Fed chairman who’s on record saying inflation is good for America, do you really want to keep liquid assets lying around? Especially if you exceeded the $100,000 FDIC guarantee, those bank accounts are better invested in brick and mortar.

Here are some cost reductions from the market-proven neighborhood of Back Bay, just to whet your home-buying appetite.

306 Comm Ave #4
Back Bay, MA 02115

2 beds, 1 bath
880 sq. ft.
Old Price: $719,000
New Price: $699,000

223 Beacon St, #1
Boston, MA 02116

2 beds, 2.5 baths
1,459 sq. ft.
Old Price: $894,000
New Price: $865,000

180 Commonwealth Ave, #A
Back Bay, MA 02116

1 bed, 1 bath
812 sq. ft.
Old Price: $619,000
New Price: $589,000

  • LAWL

    Imagine walking into a cocktail party and announcing “I just bought a house today!”

    I think people would look at you like you came from Mars.

  • http://blog.magnetk.com Jon Shea

    To be a bit more precise, the people at the cocktail party would look at you weird if you walked in and said “I just bough a huge pile of subprime mortgage back securities!”