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You Know It's The New Normal When...

Tyler Durden's picture




 

The housing market is once again rapidly cooling off, as the fourth dead cat bounce of the artificial, centrally-planned "recovery" of the last 5 years takes hold (nowhere more visibly than in Phoenix whose "Housing market has been hit an unprecedented plunge in demand") but it wouldn't be the New Normal in which the middle class is evaporating at an unprecedented pace in order to make the uber rich uber-richer, if it wasn't for stories such as this about one particular real estate market: that favorite haunt of the 0.001%, the Hamptons:

A separate report from the Corcoran Group showed that luxury sales by dollar volume rose 11 percent in the second quarter. Susan Breitenbach, a Corcoran broker who worked with Folise, said she has $200 million in sales and contracts so far this year, on pace to eclipse her typical yearly volume of $250 million.

 

Tim Davis, another Corcoran broker, recently sold Wooldon Manor, a 14.5-acre (6-hectare) estate in Southampton, in two parcels for a combined $80 million. The seller was Scott Bommer, president of hedge fund SAB Capital Management LP, who paid $75 million for the oceanfront property in December.

A mere $5 million in 6 months? What bubble...

But wait, there's more, and this one is even more to the point:

  • CHUBB HAS SEEN UPTICK IN YACHT PURCHASING, MEGA-YACHT BUSINESS

Maybe Obama can explain to Steve Liesman once again just how the recovery is trickling down to the ordinary American simply because the market is hitting new all time highs on a daily basis.

Actually, in retrospect, there nothing "new" about this "new" normal at all, or rather, abnormal.

 

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Thu, 07/24/2014 - 21:47 | 5001886 i_call_you_my_base
i_call_you_my_base's picture

This shit is exactly like 2006.

Thu, 07/24/2014 - 21:51 | 5001902 AssFire
AssFire's picture

Gatsbylike

Thu, 07/24/2014 - 22:00 | 5001934 linniepar
linniepar's picture

Damn Gatsby, look at all my shorts! Look at all these colohs!

Thu, 07/24/2014 - 22:09 | 5001973 Juno Rock
Juno Rock's picture

The "trickle down" the rich piss on your back, then tell you its raining! 

Thu, 07/24/2014 - 22:32 | 5002036 max2205
max2205's picture

Yo fuck poor people. Yo

Thu, 07/24/2014 - 23:41 | 5002191 toady
toady's picture

Dolla dolla bill yo.

Fri, 07/25/2014 - 00:30 | 5002288 eatthebanksters
eatthebanksters's picture

The difference was that in 2006 evryone was making money...

Fri, 07/25/2014 - 07:45 | 5002767 IANAE
IANAE's picture

Converting to cash before it's too late... maybe just in time.

Fri, 07/25/2014 - 04:38 | 5002561 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

That sums it up.

Thu, 07/24/2014 - 22:12 | 5001986 Greenskeeper_Carl
Greenskeeper_Carl's picture

Nunchucks. Fuckin ninja shurikins.... LOOK AT ALL MY SHIT

Thu, 07/24/2014 - 21:59 | 5001933 QQQBall
QQQBall's picture

Its not exactly like 2006. IRs are lower now.

Thu, 07/24/2014 - 22:15 | 5001992 CrashisOptimistic
CrashisOptimistic's picture

yup

That 75 million buy that got sold for 80 million after 6 months? 

80 million X 6% agent's commission is 4.8 million.  Closing costs another 1.5-2%.

That guy is losing money.

Thu, 07/24/2014 - 22:36 | 5002048 WTFUD
WTFUD's picture

Let's not feel sorry for him Crash as he has the best tax lawyer money can buy.

Fri, 07/25/2014 - 00:40 | 5002303 Jadr
Jadr's picture

6% commissions are only for the little people.  Closing costs also do not scale with the price of the property.  Realistically there was probably 3%-4% in total commissions paid and closing costs were probably .25% - .5% and thats being generous.  I don't deal with property sales of that magnitude for an individual property but from my experience in RE I don't see why the closing would be much higher than closing on a 200k home.

Fri, 07/25/2014 - 02:49 | 5002459 Long Duck Dong
Long Duck Dong's picture

For sellers yes. For buyers no. See the 2% Peconic Bay Transfer Tax.

Fri, 07/25/2014 - 07:55 | 5002789 oudinot
oudinot's picture

NO ONE PAYS 6% IN REAL ESTATE COMMISSIONS OF 6% FOR $75 MILLION, MORE LIKE 1% MAYBE 1.5%

THE GUY PROBALBY MADE $1.5 MILLION AFTER REAL ESTATE COSTS, TAXES AND TRANSACTION COSTS; AND HE GOT RENT FREE A HOUSE WORTH ABOUT $450,000  IF HE HAD TO RENT IT.

Thu, 07/24/2014 - 22:02 | 5001944 Cattender
Cattender's picture

the biggest difference between 2006' and now is.... we're in WORSE shape now. much worse..

Thu, 07/24/2014 - 21:52 | 5001905 world_debt_slave
Fri, 07/25/2014 - 02:42 | 5002453 New_Meat
New_Meat's picture

yo, slave, 'tain't the 1 percenterz, 'tis the 0.0001 and up folk to worry about.

On the other hand, watch my LEFT hand, see the shiny "protest movement" thangz there???

u keep a'watchin'

- Ned

Thu, 07/24/2014 - 21:54 | 5001910 Bananamerican
Bananamerican's picture

The Hamptons =The Little Bighorn sometime in 2018 I'd say....

Fri, 07/25/2014 - 02:43 | 5002455 New_Meat
New_Meat's picture

kinda' boxed in, do you think?

- Ned

Thu, 07/24/2014 - 21:56 | 5001921 catch edge ghost
catch edge ghost's picture

Hey some blue collar guy somewhere had to borrow money for his kid to go to college to learn to program the robots to build those fancy boats and mill the lumber for those mansions. It trickles down. ish.

Something trickles down anyway.

Thu, 07/24/2014 - 21:57 | 5001924 whoopsing
whoopsing's picture

Southampton could be a really nice area, except for the rich fuckers that habitate the place..

Thu, 07/24/2014 - 22:10 | 5001977 knukles
knukles's picture

In dire need of new immigrants ....
Lots and lots of new immigrants ....
No delousing allowed ...

I know several folks who went that a way who are rabid fucking Cadillac Commies ... for everybody else

Nothing a major cataclysmic electro-magnetic plasmatic (all natural, no gluten, corn syrup free and organic... as in made by mother nature, alone) torus of unprecedented proportions generated exclusively by a localized cosmic discharge with the sun so that it could be blamed upon the sins of them, their mothers and children wouldn't take care of.....
Ah, the world wide dancing in the streets, praising the appearance of the Lord wreaking His vengeance upon the Money-changers....

To each according to his need....  or afternoon entertainment

Thu, 07/24/2014 - 22:17 | 5001999 Greenskeeper_Carl
Greenskeeper_Carl's picture

Ah yes. The Cadillac commie. Close relative of the limousine liberal. I'm in agreement with you though, that's why I've said from the start. Bus these two legged sand fleas up there by the thousands and watch how quick something is done about this. We (which on CC/LL speak means everyone else) should absorb these people and take them in. Kinda like we need moar wind power until they wanted to build them right off the coast of Ted Kennedy's mansion. NIMBY is the name of the game with those people.

Thu, 07/24/2014 - 23:48 | 5002200 ceilidh_trail
ceilidh_trail's picture

Literally. Also, "not on my street." I used to go to a place called Hot Dog Beach out in the Hamptons back in the '70's- pull off the road, hit the beach. I went back to LI in the mid 90's to show my wife some of my old haunts. The same place now had parking meters where it cost 10 bucks to park. These are the same bunch that expect people like me to pay to restore the beach (that they don't want me on) after the next storm hits. Exhibit A on a lesser scale is the Sandy aftermath.

Fri, 07/25/2014 - 00:00 | 5002228 bunzbunzbunz
bunzbunzbunz's picture

If you are the type of person that assumes people don't want you there, no one wants you anywhere. Insecure whiners overcompensate for their inadequacies and make everyone's life worse. You drive like an asshole because you think others would do it to you. You cheat/steal because you think you've been cheated/stolen from. You talk shit about people because you think other people talk shit about you. And the worst part is, you don't know how to use the fucking word 'literally'.

Fri, 07/25/2014 - 00:46 | 5002318 Jadr
Jadr's picture

The only part of your post that makes any sense is the last sentence regarding his use of literally.  The remainder of your post is complete garbage.

Thu, 07/24/2014 - 22:02 | 5001948 3rd Pig
3rd Pig's picture

 

Now that’s what Gerald Celente calls one of the white shoe boys.

Thu, 07/24/2014 - 23:45 | 5002198 IndyPat
IndyPat's picture

Dammit.
I was looking for a place to drop that one.
The was the first thing I thought of when I saw that asshole standing there in that getup.

Fri, 07/25/2014 - 08:45 | 5002935 Kilgore Trout
Kilgore Trout's picture

Gatsby turned out alright in the end.

Thu, 07/24/2014 - 22:10 | 5001975 Wait What
Wait What's picture

you should see Malibu right now. almost every property along PCH is for sale. I heard even a mobile home in a trailer park (you don't even own the land!) is selling somewhere in the neighborhood of 3-4 million.

totally normal, totally healthy, move along...

Thu, 07/24/2014 - 23:11 | 5002136 ThirteenthFloor
ThirteenthFloor's picture

Yes area know as "Queens Necklace"...Malibu doctors are also noting that case of Thyroid Cancer is growing.,...12 new cases since this March.  Fukishima ?

Fri, 07/25/2014 - 02:35 | 5002449 Salsipuedes
Salsipuedes's picture

When the fish and little surfer boys start floppin' belly-up at the Colony, it's gonna be Katy bar the servants till the helicopter arrives! Next stop: Patagonia Bitchez!

Thu, 07/24/2014 - 22:12 | 5001988 ekm1
ekm1's picture

This is plainly called:

 

USD DUMPING BY ELITE

Thu, 07/24/2014 - 23:07 | 5002112 ThirteenthFloor
ThirteenthFloor's picture

Agreed.  > see my comment 2 factors below.  

Ever notice how really ugly and stupid some of the stuff the elite buys...no 'taste' in those folks either.

EDIT >

One of my coworkers once said, while looking at the monster yachts parked at the World Financial Center - "If I had one of those I know I was truly rich, because I have no interest in helicopters or yachts, if I had that then everything else was SURELY covered".

Thu, 07/24/2014 - 22:15 | 5001993 ebworthen
ebworthen's picture

The new nobility.

We've gone back to the days before the signing of the Magna Carta.

Better sanitation, but if you want healthcare you have to PAY.

Come to think of it Serfs, you have to PAY for everything.

Get back to work.

Fri, 07/25/2014 - 00:03 | 5002235 bunzbunzbunz
bunzbunzbunz's picture

...when did you not have to pay?

Fri, 07/25/2014 - 00:55 | 5002332 ebworthen
ebworthen's picture

PAY in all caps means an exorbitant inflated price that gouges the average family unjustly, exacting profit margins so huge the nobility can buy useless shit like $75 million dollar homes.

Get off the parapet Lancelot, Merlin has something for you.

Thu, 07/24/2014 - 22:55 | 5002103 ThirteenthFloor
ThirteenthFloor's picture

Two factors here...

(1) those folks wouldnt appreciate or know what to do with a single warm genuine feeling...so instead they buy baby's toys.

(2) They know fiat paper Federal Reserve Notes are flippin' worthless any day now so they dump them as fast as possible.

Thu, 07/24/2014 - 22:57 | 5002107 potato
potato's picture

people have been conditioned to groom their Fico scores like a purse poodle. 

the fastest way to bring down the oligarchs is to default. default on everything. stop paying into their system. 

Fri, 07/25/2014 - 00:05 | 5002240 bunzbunzbunz
bunzbunzbunz's picture

Pfffffft... no. You can sell your FICO score moron. $500/month for the semi-agressive seller.

Thu, 07/24/2014 - 22:57 | 5002108 Luckhasit
Luckhasit's picture

Cater to the rich.

That's what the Fed is saying.

Fri, 07/25/2014 - 00:21 | 5002269 kurt
kurt's picture

Do you remember the movie "Empire of the Sun"? After the Japanese took over, looters cleared out each great English estate. The better properties were re-occupied by the victors. The little boy that was abandoned there rode a bicycle around and around the kitchen island until the last drip of water came out of the faucet and the last can was opened and tossed on the floor. Candy, chutneys, all gone. Eventually he was forced to leave or starve. The hoards then strip him of his shoes and vestiments.

Mr Hampton, we will strip your vestiments and shoes and kill or keep you if you are useful but we won't take any more of your bullshit, fuck you very much.

Fri, 07/25/2014 - 00:24 | 5002274 risk.averse
risk.averse's picture

ahhhh...life is full of ironies: we hate these bastards for their abuses and crassness but, presumably, most of Zerohedge's readers invest and trade...and aspire to one day to, yep, join the ranks of these very same bastards.

 

I'd like to think (and hope!) that if any of us "make it" one day we'll be different. Of course we will! Heh heh...maybe  we should take an oath promising to do so when we first join zerohedge.

Fri, 07/25/2014 - 02:32 | 5002447 vie
vie's picture

The first rule of fight club...

Fri, 07/25/2014 - 00:44 | 5002310 hangemhigh77
hangemhigh77's picture

The only thing trickling down is the piss down my neck. But they tell me it's raining.

Fri, 07/25/2014 - 00:47 | 5002320 fishwharf
fishwharf's picture

They even have their own magazine, which the Onion would be hard pressed to improve.

http://hamptons-magazine.com/

Fri, 07/25/2014 - 07:39 | 5002753 Dutti
Dutti's picture

It's a big club, and you (ZH er's) ain't in it. (George Carlin)

http://hamptons-magazine.com/personalities/articles/the-100-best-party-guests-in-the-hamptons

Fri, 07/25/2014 - 02:18 | 5002432 Salsipuedes
Salsipuedes's picture

... and  "So they beat on, boats against the current, borne back ceaselessly into 'their own insanity'...."

And none's the richer.

Fri, 07/25/2014 - 02:42 | 5002452 hedgiex
hedgiex's picture

Amazing that with so much anger that the wannabees will still want to sink wealth on hard ground in the neighborhood of the 1%. The 1% will be ok because they can still have funds to gate compounds and hire private security guards. They hang around to watch over other assets and has another leg outside if it makes no more sense for them to be physically present.

Not out of envy but pity that these wannabees are also leveraged investment lemmings flirting with kill machines that are also gating them out with the premum brands of snake oils.

Fri, 07/25/2014 - 07:08 | 5002700 AdvancingTime
AdvancingTime's picture

I recently found myself thinking about the decline or collapse of great empires and realized that it is often hard to predict when or how their demise will occur. One sign of the end is a massive growth in crony capitalism and corruption. Many analogies can be taken from this idea, the empire need not be great and timing is always hard to correctly gauge.

The signs of decline may be everywhere but that does not guarantee the end is near. As the foundation crumbles away it is not uncommon for those in power to extend their rule by many tricks and changing the rules in order to gain a new lease on life. More on the subject of how empires collapse in the article below.

http://brucewilds.blogspot.com/2014/05/how-empires-collapse.html

 

Fri, 07/25/2014 - 07:12 | 5002706 Peter Pan
Peter Pan's picture

There can never be any trickle down when it's frozen up.

Fri, 07/25/2014 - 07:52 | 5002787 tarsubil
tarsubil's picture

How does it trickle down? Well, these guys need nannies and cooks and house servants and maids. How things have changed, huh?

Fri, 07/25/2014 - 08:17 | 5002860 Tall Tom
Tall Tom's picture

Piss in the soup...

 

Then sue them for the urine content.

 

Things have changed.

Fri, 07/25/2014 - 08:26 | 5002876 petolo
petolo's picture

......and lots of bodyguards and food tasters.

Fri, 07/25/2014 - 09:17 | 5003044 Lazane
Lazane's picture

abbynormal?

Fri, 07/25/2014 - 11:57 | 5003731 Loose Caboose
Loose Caboose's picture

... and one up arrow for you for the Young Frankenstein reference.

Fri, 07/25/2014 - 10:21 | 5003291 besnook
besnook's picture

it makes sense that inflation is showing up in luxury goods because that is where all the money went. the commoners have been spared the wrath of inflation. gosh, our dear leaders are so good to the people.

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