Friday, August 19, 2005

Just the Facts, Hold the Froth

There’s a very level-headed analysis in the Times comparing the advantages and disadvantages of investing in real estate versus the stock market. The vast majority of people think that real estate is more stable than the stock market, a perfectly legitimate, if short-sighted, conclusion, given the last five years. The whole article is worth a close read, but here’s a point I think is interesting:

Stock … price changes can be viewed every day. "The news doesn't report to you daily that your house price might have gone up or down," Mr. Lys said. "So you think your house price is more stable than it really is because you don't observe these minute-by-minute gyrations."

Read the whole piece here.

There's also a good column in the Wall Street Journal today:

If you're trying to find a slow leak in a tire, you can submerge it in water and look for tiny bubbles of escaping air. That may be the best way to look for signs of a deflating housing market, too.

I think you know where this is going. This column is one of the free WSJ online items, so you can read the whole thing here.

And finally, one more item from today's papers just for laughs (note the building's new name):

C.E.O.'s Name Off Building

Seton Hall University removed the name of L. Dennis Kozlowski, the former chief executive of Tyco International, from a building at his alma mater yesterday, said Thomas White, a school spokesman.

Mr. White said the name was removed at Mr. Kozlowski's request. The building, which houses the business school, has been renamed Jubilee Hall, he said.

Mr. Kozlowski, a 1968 Seton Hall graduate, faces up to 30 years in prison after his conviction for larceny and fraud. His lawyer, Stephen E. Kaufman, did not immediately return calls for comment.