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"Million-Dollar Parking Spots" – Peak Stupidity Has Arrived In Manhattan

Tyler Durden's picture




 

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

Hundreds of men in starched robes descend on an opulent hotel here to vie for the most distinguished digits. Earlier this year, Abu Dhabi businessman Saeed Khouri made headlines and the Guinness Book of World Records when he paid $14 million for the tag simply sporting a “1.” His cousin, stockbroker Talal Khouri, paid $9 million for “5″ — the second-largest sum ever paid for a license plate.

 

- From the July 1, 2008 Wall Street Journal titled: Read My License Plate: It Cost Me a Fortune

I vividly remember reading the above article in the Wall Street Journal over six years ago and shaking my head in disbelief. Although the U.S. equity market had already peaked in October of 2007, in early July 2008 the oil market was hitting new record highs almost every single day. I remember going on an endless stream of client visits with my former employer, partly due to the novelty of me being one of the few sell-side guys out there yelling that we were in the midst of a massive commodity bubble. Within days of that WSJ Journal article, the oil bubble popped and the price crashed from a high of $147 per barrel to $32 by December, or a nearly 80% plunge in five months.

I will never forget that article because it was the perfect indicator that too much money was sloshing around that particular market. It’s one thing to pay too much for a home or even a car, but license plates? To me that was the definition of madness.

Fast forward six years, and due to Central Bank policies that provide free money to the oligarchs residing in the world’s financial capitals, places like New York City and London are awash in billions upon billions of dollars. As is always the case, these fortunate bailout recipients are more than happy to throw it around in the most absurd of manners. It appears the latest craze in my hometown of NYC revolves around parking spaces, which in one new luxury building in SoHo are selling for $1 million each.

The New York Times reports:

What will $1 million buy in New York City? A diamond-encrusted Cartier men’s watch. A small fleet of 2014 Bentley Continentals. Or maybe your very own parking spot in SoHo.

 

A new development, 42 Crosby Street, is pushing the limits of New York City real estate to new heights with 10 underground parking spots that will cost more per square foot than the apartments being sold upstairs.

 

The million-dollar parking spots will be offered on a first-come-first-served basis to buyers at the 10-unit luxury apartment building being developed by Atlas Capital Group at Broome and Crosby Streets, itself the former site of a parking lot. At $250,000 a tire, the parking spaces in the underground garage cost more than four times the national median sales price for a home, which is $217,800, according to Zillow.

 

“Most ultrahigh-net-worth individuals have car collections as well as service vehicles for their staff,” Mr. Hannah said. “Parking is in serious demand and has proven an excellent investment with no sign of a decline.”

Meanwhile, let’s not forget the fact that many apartment units being sold for astronomical sums in Manhattan aren’t even being occupied, something I highlighted in the piece, Introducing Ghost Skyscrapers – NYC Real Estate Goes Full Retard:

“The Census Bureau estimates that 30 percent of all apartments in the quadrant from 49th to 70th Streets between Fifth and Park are vacant at least ten months a year.”

You’ve gotta hand it to the folks at the Federal Reserve. They have succeeded in destroying the American middle class while simultaneously creating a vibrant market for oligarchs to flip million dollar parking spaces in less than six years. That is truly a historic achievement in societal destruction.

Ultimately, we’ll know it’s all over when Goldman securitizes parking spaces and successfully unloads the paper onto the New York State pension fund.

 

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Thu, 09/11/2014 - 22:52 | 5209415 LetThemEatRand
LetThemEatRand's picture

Chavez's fault.

Thu, 09/11/2014 - 22:55 | 5209422 Harbanger
Harbanger's picture

Nah, It's your fault Lola.  NYC has the richest Libs in the entire World.

Thu, 09/11/2014 - 22:55 | 5209428 LetThemEatRand
LetThemEatRand's picture

You're right.  Libs' fault.  Thanks for the correction for those ZH/Drudge readers who don't know who Chavez is.

Thu, 09/11/2014 - 22:58 | 5209439 Harbanger
Harbanger's picture

Oh stop it.  Putting up with you is drudgery.

Thu, 09/11/2014 - 23:07 | 5209453 markmotive
markmotive's picture

Toronto is experiencing a real estate bubble too...

Kyle Bass on the Canadian Housing Bubble

http://www.planbeconomics.com/2014/06/kyle-bass-on-the-canadian-housing-...

Thu, 09/11/2014 - 23:28 | 5209493 Thorny Xi
Thorny Xi's picture

Old News ... see this 2008 Vail, Colorado story  http://www.aspentimes.com/article/20081125/NEWS/811249957

Thu, 09/11/2014 - 23:31 | 5209497 DeadFred
DeadFred's picture

Once the zombies attack you won't be able to give away a parking spot in SoHo

Thu, 09/11/2014 - 23:42 | 5209525 Skateboarder
Skateboarder's picture

Is it okay to build a 20-floor house on the parking spot? The ground floor can be the garage. :-)

Fri, 09/12/2014 - 08:11 | 5209982 PT
PT's picture

Peak of capitalist efficiency. There is no way that million dollars could be doing anything more important than paying for a parking spot.  Likewise, when rich people buy $50 million dollar paintings, there is no way the economy could survive if they only paid $20 million, or even $49 million.  The extra money sloshing through the rest of the economy would make people lazy, cause an inflationary spiral and crater us into a depression far greater than anything the world has ever seen!  Thank goodness we were saved by that parking spot!  Phew!  That was close.

 

Yes that was sarcasm and yes I do believe that I had to spell it out to a few people.

Fri, 09/12/2014 - 08:16 | 5209995 PT
PT's picture

But PT, you don't understand!  The person that received that million dollars is now going to spend it and create jaawwwwbs!!!  If the millionaire only paid fifty dollars for his parking spot, he'd still have $999 950 in the bank doing nothing! ...

 

 

Yes, there's some sarcasm sprinkled in there too.  See if you can find it.

Fri, 09/12/2014 - 09:17 | 5210210 MalteseFalcon
MalteseFalcon's picture

If you don't drive in NYC, you'll have to take the subway.

For the parking space, it's money well spent.

Fri, 09/12/2014 - 08:29 | 5210042 ejmoosa
ejmoosa's picture

Takes a good sponge to soak up the excess...what better place than NYC?

Fri, 09/12/2014 - 02:28 | 5209731 RadioactiveRant
RadioactiveRant's picture

Upload to DailyMotion, they're not as delete happy.

How did Bass position on Argentina play out?

Thu, 09/11/2014 - 22:57 | 5209433 thamnosma
thamnosma's picture

Absolutely -- it's Democrat-ville there.

Thu, 09/11/2014 - 23:01 | 5209435 LetThemEatRand
LetThemEatRand's picture

Yes, let's boil it down further.  Democrats' fault.  May as well go full Drudgetard.

Thu, 09/11/2014 - 23:02 | 5209444 Harbanger
Harbanger's picture

Why not?  If you're gonna lay blame, you may as well get close to the mark.

Thu, 09/11/2014 - 23:08 | 5209456 LetThemEatRand
LetThemEatRand's picture

I guess now that this site has become DrudgeII, you are more comfortable calling out the Blue Team as the root cause.   Funny how guys like you only show your colors when you have popular support.  Too bad it has come to this here.  

Thu, 09/11/2014 - 23:17 | 5209473 Harbanger
Harbanger's picture

Change is in the air, change you can believe in.

Thu, 09/11/2014 - 23:19 | 5209478 Slave
Slave's picture

Moderate your drinking. This is unhealthy.

Thu, 09/11/2014 - 23:34 | 5209488 LetThemEatRand
LetThemEatRand's picture

Ad hominem.  That's a personal attack on the poster in lieu of* responding to the substance of his argument, for the new ZH/Drudge crowd.   I would suggest using it at a tailgater while blaming Obama for the Federal Reserve Act (meaning you are blaming Obama for the bankers doing what is described in this article), but you'd probably end up in a fight because someone would think you're calling him a homo.

*that means "instead of."

Thu, 09/11/2014 - 23:35 | 5209512 Slave
Slave's picture

You are guilty of your own criticism. Too drunk to see that though.

Thu, 09/11/2014 - 23:58 | 5209516 LetThemEatRand
LetThemEatRand's picture

You calling me a homo?!*

*Nevermind.

EDIT:  I recall when drunk posting on ZH -- which I've been known to do -- was encouraged and fun.   Just as the Tylers have, the posters here don't seem to recall the theme of Fight Club, or even what it means.  

Fri, 09/12/2014 - 00:00 | 5209564 Slave
Slave's picture

It still is.

But you're untruthfully labeling the demographic and trolling. Not encouraged and not fun.

Fri, 09/12/2014 - 00:03 | 5209567 LetThemEatRand
LetThemEatRand's picture

No, this is now the equivalent of professional wrestling.  Enjoy your echo chamber.

Fri, 09/12/2014 - 00:42 | 5209627 monkeyboy
monkeyboy's picture

I'll take 2.

 

 

Thu, 09/11/2014 - 22:54 | 5209424 PrecipiceWatching
PrecipiceWatching's picture

Utter and disgusting decadence.

Thu, 09/11/2014 - 23:15 | 5209465 Harbanger
Harbanger's picture

I was in DC recently.  They are spending money and building like the country was booming, a few short blocks away from the money, the FSA is seething.

Thu, 09/11/2014 - 23:45 | 5209533 LetThemEatRand
LetThemEatRand's picture

Must have been sad to see the Blue Team spending all of that money on the control grid after the Red Team shrunk government during past administrations.

Fri, 09/12/2014 - 01:08 | 5209659 Otrader
Otrader's picture

.

Fri, 09/12/2014 - 01:07 | 5209660 Otrader
Otrader's picture

Go Red Team.  Wohooooo! <ahem>

Fri, 09/12/2014 - 07:29 | 5209919 10mm
10mm's picture

Good point. All that money and one is exposed to rageing 2 leggers nearby.

Thu, 09/11/2014 - 22:57 | 5209426 jballz
jballz's picture

Tylers your ads are now so fucking obnoxious they have made it almost impossible to read the story or fill out a comment field. Fuck this site I'm out.

Thu, 09/11/2014 - 22:56 | 5209430 thamnosma
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Dude, get current.  Adblock Plus.

Fri, 09/12/2014 - 00:01 | 5209566 Dr Strangemember
Dr Strangemember's picture

I want to buy an older one, fix it up (paint new white lines) and then flip it for a profit of 75%!!!!  

 

I really hope they produce a reality show called "FLIPPING SPACES" soon!  

Thu, 09/11/2014 - 23:02 | 5209441 jballz
jballz's picture

In case you think I exaggerate this is what I see now.

http://imgur.com/JvSrSUh

Lame bitchez

Thu, 09/11/2014 - 23:44 | 5209529 Yen Cross
Fri, 09/12/2014 - 01:06 | 5209658 Otrader
Otrader's picture

What Yen cross said.  No ads with firefox !!!

Thu, 09/11/2014 - 23:50 | 5209543 Greenskeeper_Carl
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If you are on a computer, Firefox with ghostery or tor. Ghostery/Firefox gives you no ads at all. Tor will still give you some adds, but they aren't targeted to you since you will always be coming from a different IP address. If you are reading on a phone or tablet, download the ghostery web browser app. I frequently read this sight and others on my iPhone, and the ghostery web browser for iOS works great. Seeing how this page loads on every other mobile browser vs ghostery is amazing, only browser ill use on a phone.

Fri, 09/12/2014 - 00:12 | 5209595 James_Cole
James_Cole's picture

In case you think I exaggerate this is what I see now.

Here you go:

http://www.youtube.com/watch?v=A81IwlDeV6c

Start there, soon you'll be a pro!

Fri, 09/12/2014 - 08:25 | 5210023 PT
PT's picture

Totally useless!  I was throwing up after 40 seconds.  No way could I get through half an hour of that shit.  Ring the poison control hotline.  They may be able to use that footage to save a few lives.  But only if the vid is truncated at the one minute mark.  And I do believe that any footage beyond one minute 20 secs will probably take more lives than it saves.

Fri, 09/12/2014 - 08:28 | 5210031 PT
PT's picture

Are you sure that video wasn't produced as part on an Agenda 21 initiative?

Fri, 09/12/2014 - 23:18 | 5213250 Ident 7777 economy
Ident 7777 economy's picture

Wow!

 

Not.

Thu, 09/11/2014 - 22:55 | 5209427 thamnosma
thamnosma's picture

I lived in Manhattan in the 80's.  An utterly different place than what it is now.

One thing these mega-wealthy crypto-oligarchs don't realize is how fast things can turn on them.  They will deserve all that comes their way when the desperation hits Def-Con 4.

Thu, 09/11/2014 - 22:59 | 5209438 Dr Strangemember
Dr Strangemember's picture

Can't come soon enough!

Thu, 09/11/2014 - 22:56 | 5209431 ebworthen
ebworthen's picture

My Children's future squandered on a parking spot in a shit hole.

You assholes on Wall Street will hang for it - or be drawn and quartered - I guarantee.

Fri, 09/12/2014 - 05:29 | 5209845 Tapeworm
Tapeworm's picture

Why be so angry?

 Just let those that have stripped cars leave them on the doorstep of these highly priced parking lots. GATA bad tranny that cannot make it to fifteen miles per hour and the hassle of getting 260,00 for scrap, just park it where it will gett taken care of. The guy will get the satisfaction of recycling your old beast. It is better if you tow it there.

Thu, 09/11/2014 - 23:03 | 5209443 FieldingMellish
FieldingMellish's picture

Ultimately, we’ll know it’s all over when Goldman securitizes parking spaces and successfully unloads the paper onto the New York State pension fund.

 

Nope. There will be plenty of other scams coming from the squid after that. We are only at the beginning.

Thu, 09/11/2014 - 23:15 | 5209464 willwork4food
willwork4food's picture

It's a deal. It will be worth $2M this time next year.*

 

*Or a six pack of Bud, depending on how things go...

Thu, 09/11/2014 - 23:26 | 5209482 Salsipuedes
Salsipuedes's picture

Empty mansions everywhere.

P.S. Rehypothecating the packaged securities for parking spaces in L.A. to sell to Argentina is MY idea Lloyd, you piece of shit!

Thu, 09/11/2014 - 23:32 | 5209494 Yen Cross
Yen Cross's picture

   lol> Most high net worth individuals have service vehicles for their staff.( per the article) So, "senior staff member" parks $40k car in $1mm spot every day because "high networth individual" uses almost free helipad on roof.

Thu, 09/11/2014 - 23:39 | 5209519 yogibear
yogibear's picture

And the high-class rats that go along with it. 

Thu, 09/11/2014 - 23:46 | 5209541 robertocarlos
robertocarlos's picture

At zero interest rates it will only cost 60 bucks a month.

 

Thu, 09/11/2014 - 23:55 | 5209558 Rican
Rican's picture

Disgusting! They should be buying stocks!

Fri, 09/12/2014 - 00:03 | 5209572 q99x2
q99x2's picture

I was there earlier this month and the problem I see is getting to and from that $1,00,000 parking space. You drive through Manhattan and before you are out of the city your head is bobbing back and forth like a pigeons. It is not a city that was designed for cars. After driving 350 miles from Pittsburgh I pulled through the Liberty Tunnel right into Times Square on Saturday night Memorial Day weekend. At the first red light, in a panic, I jumped out of the car and made the other guy drive. I learned to appreciate LA traffic.

Fri, 09/12/2014 - 08:07 | 5209971 Big Corked Boots
Big Corked Boots's picture

It's the Lincoln Tunnel.

Robert Moses tried to redesign the city for cars. He did pretty good in the 'burbs and outer boroughs, not so much in Manhattan... see, it's easy to tear up a neighborhood that doesn't have residents with a high net worth.

Fri, 09/12/2014 - 09:13 | 5210197 detached.amusement
detached.amusement's picture

I was there last month and flipped off the "freedom" tower from the north to the south to the east to the west.  Then I drove under the motherfucker and flipped it off for good measure (but that was only because I had taken a wrong turn)

Fri, 09/12/2014 - 00:05 | 5209580 Cabreado
Cabreado's picture

"You’ve gotta hand it to the folks at the Federal Reserve. They have succeeded in destroying the American middle class"

"That is truly a historic achievement in societal destruction."

What about Congress, Mike?

I'm on your side -- write an article that describes the why's of the neglect of Congress.

Include the part that explains how neglect of the still most powerful governing body in the history of mankind is nothing but enabling the destruction.
Don't forget to include the part that explains how Congress could shut down the Fed in a relative instant.

 

Fri, 09/12/2014 - 01:05 | 5209656 Otrader
Otrader's picture

Banking Elite --> Federal Reserve --> Congress/president --> legalized theft !!!!

Fri, 09/12/2014 - 00:09 | 5209586 Kprime
Kprime's picture

I want my space lined with tulips.

Fri, 09/12/2014 - 00:10 | 5209592 Dr Strangemember
Dr Strangemember's picture

That's hot!!!

Fri, 09/12/2014 - 09:20 | 5210219 daedon
daedon's picture

The tulips will cost you an extra 50K.

Fri, 09/12/2014 - 00:15 | 5209598 himaroid
himaroid's picture

But I was poor kid, fresh from the tobacco field, and the find kiddo from Hells Kitchen gave me his socks because I had none. But neve think you don't know the difference. Put it to yor favorite music. Did you ever hear of my triple heart friends whose honor i have to play silly little games with. WTF. Please help me and show me something kindreds....

The Navajo neverr tied or finished the amazing last stith....because....you can never show an end. Cool.  BUT it really does not begin nor end there. 

Fri, 09/12/2014 - 00:22 | 5209604 Sock Monkey Posse
Sock Monkey Posse's picture

Is there room for a row of tulips along the parking strip?

Fri, 09/12/2014 - 00:30 | 5209616 Spungo
Spungo's picture

I don't see the problem. If I had fuckloads of money, sure I would pay 1 mil for a parking spot]
as long as it was located where I needed it and it was secure. I can't be parking my Bentley on the street where some fucker sideswipes it.

Fri, 09/12/2014 - 08:50 | 5210080 PT
PT's picture

Or you could pay $2739 per day on taxi fares / for a chauffeur / for the chauffeur to park your car in a cheaper part of town.  Err, That's $3835 per day if you don't work week ends and $4166 per day if you only work 48 weeks in the year. 

... At which point you could buy a nice new little tiny motorbike each day and leave the keys in the ignition if you wanted to and if it was still there when you came out to go home in the afternoon, that would be a bonus!

Fri, 09/12/2014 - 01:23 | 5209677 Bemused Observer
Bemused Observer's picture

The only reason you'd need a million-dollar parking space in Manhattan is if you're DRIVING in Manhattan. In which case you are insane, and shouldn't be allowed to control your own finances anyway. Hopefully your children will get that 2-physician declaration and save you from yourself...

Fri, 09/12/2014 - 01:47 | 5209701 alexcojones
alexcojones's picture

HArd to believe. Only 13 years ago

NYC was nuked and radiocative dust everywhere.

Some say CIA, some say Mossad, some say a combo of the two. . .

The day the world fell down…9-11 was a nuclear attack
Fri, 09/12/2014 - 01:57 | 5209706 alexcojones
alexcojones's picture

New high sky scrapers for old.    Ashes to ashes, and

Dust to dust in Nuke York City.   Radiocative dust.

 

 

Fri, 09/12/2014 - 02:11 | 5209715 Stimorolgum
Stimorolgum's picture

I guess they will not include that in the Consumer Price Index.

Fri, 09/12/2014 - 02:20 | 5209725 smacker
smacker's picture

Putting up a No Parking sign like that is like waving a red rag to a bull.

In some parts of London, it wouldn't be more than seven days before an old car was dumped there, ownership untraceable, index plates removed, disabled, possibly wheel-clamped to make it as difficult to remove as possible. Other options are to dump a load of sand, gravel or builders rubble.

In the same way that people who place notices inside their car when they park it "Nothing of Value In Car" return to find it broken into anyway with a new comment: "Just Checking".

Fri, 09/12/2014 - 02:28 | 5209734 Skateboarder
Skateboarder's picture

You have to imagine - a 1M parking spot comes with cameras and rent-a-cops who shine their lights all the fucking time.

Fri, 09/12/2014 - 04:22 | 5209809 smacker
smacker's picture

If that were the case, there wouldn't need to be a warning sign (!)

Fri, 09/12/2014 - 02:52 | 5209756 Global Observer
Global Observer's picture

Stupidity may have hit an all time high, but calling it Peak Stupidity is being extremely optimistic.

Fri, 09/12/2014 - 05:16 | 5209836 johngerard
johngerard's picture

Surely it's cheaper to take a taxi? and where can I invest in an ETF that tracks parking spaces?

Fri, 09/12/2014 - 08:43 | 5209861 intric8
intric8's picture

Create an atmosphere of criminal unrest complete with squatters who harrass others in some of those expensive areas. Keep it going until property values drop in half, and owners move away out of frustration and fear. Then you and your clan swoop in and buy like maniacs dirt cheap, send your paid bad guys away, clean the place up and watch your new property values soar.

 

This is what the jews did in New York in the early 1900's! Learn from the chosen ones!

Fri, 09/12/2014 - 08:26 | 5210024 QuietCorday
QuietCorday's picture

This stupidity is happening in London as well. Eventually, it will crash and crash hard.

Fri, 09/12/2014 - 09:46 | 5210301 flrzero
flrzero's picture

Let's see. Market value of $600/month if you rent out the spot. Yield = 0.72%. Not bad....

Fri, 09/12/2014 - 10:59 | 5210581 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

Ultimately, we’ll know it’s all over when Goldman securitizes parking spaces and successfully unloads the paper onto the New York State pension fund.

Good shit...!!

Fri, 09/12/2014 - 11:09 | 5210637 Otto Zitte
Otto Zitte's picture

Nothing a quart of motor oil won't fix. 

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