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Why Do We Love Idiots So Much?

By Jon Zolsky, Daytona Beach, FL

Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

September 27, 2008 07:13 AM

I was wathching TV the other day about this Great Bailout, and was stunned by a definition, that there are Innovators, Imitators and Idiots.

How darn right!

Innovators are those who follow the basic rule of Real Estate "buy when the prices are low, hold to it, and sell when everybody is buying" attributed to John Paul Getty. Innovators base their decisions strictly on the values, and are not swayed by presidential elections or the media.

Time to buy is when price is low. They know that the market will warm up and then even get hot. Innovators make the most money.

Imitators are tempted by low prices. They also know that the market will come back, but they are sure when. They are afraid that this time it may take much longer. They wait for some signs that the end is near, and they want to see the light at the end of the tunnel before they dive into investing.

They have a pretty good sense of the market, and are able to pick the early signs of the change, and then they are in. They may pay a bit more, but they are still early enough in the process and make good money.

Idiots comprise a huge non-discriminatory group of all races, national origins, genders, etc (and blondes - LOL). Contrary to the popular belief, for the purposes of this blog idiots (and blondes) are not mentally challenged. Sometimes and often times it is even the opposite. They simply make bad business decisions.

Idiots do not buy in slow market. They know about the cycles but they are sure that this time it is different. The market will never come back. They call themselves "fiscally responsible", "smart", etc. When the market starts warming up, they still sit on the fence, as they need to make surre that the market is stable, and their investment is guaranteed. So, they jump off the fence the last, pay top dollar in the already declining market, fooled by its inertia. Idiots are those who lose money. Usually a lot of money.

So, when the government comes up with Great Bailout Plan, is it for Innovators? Nope. Is it for Imitators? Mostly no. Is it for Idiots? You bet.

Why not just sit outside the casinos on the Strip and offer to offset losses just because the gambles were expecting to win, but lost? Look, Idiots are those, who turned the Science of Buying and Selling Real Estate into the art of gambling. And then the question is: do we reward it as a form of art or we reward gambling? Do we need to give money, Oscar, or both?

Excuse me for asking, are you an ... ah, forget it!

Why do we love idiots so much? logo for FunCoast Realty

Jon Zolsky, your Daytona Beach Connection
www.BeautifulFlorida.com

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Katerina Gasset

The Gasset Group & Get It Done For Me Virtual Services - Provo, UT

Amplify Your Real Estate & Life Dreams!

Jon- I love this post:) The bail out plan better be changed and right now! The dems are blaming the reps that the reps are refusing to sign this bill, but they don't tell you what is really on the bill!

You know what is one of the things on this bill? Special interest stuff that has nothing to do with the crisis. The unions want one of their people sitting on the boards, WHAT????? There are at least 2 items that have to do with Union interests in this bill!!!!!!

And you want to know why the reps are refusing to sign the bill!

They say their phones are ringing off the hook that we the people do not want this bailout.

Sep 27, 2008 07:23 AM

Jon Zolsky, Daytona Beach, FL

Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL

Buy Daytona condos for heavenly good prices

Nestor & Katerina - I am far from being an expert on economics. I listened to New Gingrich and what he was saying, even though I did not fully understand the terminology, was making sense in its broader application.

If something does not trully make sense, it should not be put in motion just because we need to act quickly.

There are so many things to blame, but if we start paying for what we have done, then we will end the blaming game.

And if we look at that the party of the President did not support him, this what tells you that republicans were not lining up along the political line. Which is very good.

Sep 27, 2008 08:18 AM

real estate real estate

Providence, RI

Jon, this is an interesting post. I think the question is how low is low. Also, how long will this low last? For example, if the low market still stay stable as low for long, people really should buy when the market is begining to pick up.

Sep 27, 2008 01:09 PM

Huiting - this is a million dollar question. However, there are certain ways to look at things. Buying low means different things to different people. In reality, investors use a different approach. Instead of low, which is vague, they are using the approach that they buy properties that can make sense renting, as the income covers the expenses. They use different formulas, but the most important thing is that they buy a property not on a impulse, but calculated, and then if the market changes tomorrow, fine, of it changes the day after tomorrow, fine, and if it changes 5 years from now, it is still fine.

Sep 27, 2008 05:46 PM

Jesse Clifton

Jesse Clifton & Associates - Fairbanks, AK

John, this was a great post. I don't believe for a second we should reward the idiots. Risk is inherent in any investment and those that made poor decisions should be faced with bearing the brunt of the consequences. The problem has become a national crisis which means we must act, but we must do so in a responsible manner... and the bailout plan is anything but.

Sep 27, 2008 08:43 PM

Jesse - It just does not sound right. I understand that this is bigger than individuals failing on their mortgage payments, that we somehow managed to securitize these mortgages and sell them to the whole world, and now they are holding worthless papers, but there is one thing that we all need to understand. Amercians got used that they can demand everything. It is on a verge of miracle.

Want a house, and here's the house. We at some point will fail guaranteeing miracles. We need a dose of reality. Just for example. European doctor who came to training to US for 6 months told their trainers that they have seen more intensive care in those 6 months that in their whole practice back in Europe. Turns out America spends the most money on medical care for the last 6 weeks of person's life. Often simply because the technology allows to keep cells functioning. Why we are not acknwledging that there is a clock? Because we think we can as consumers, and we demand.

I am afraid there are a lot of things that we must simply look at from a different angle. Or we will be faced with failing systems. We need to know and accept limitations. We think that we are bigger than life.

Sep 28, 2008 01:39 AM

Guys, that was Mark Cuban who gave that defiition in an interview to Fox.

Sep 28, 2008 03:32 AM

Why Do We Love Idiots So Much?

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Jon Zolsky, Daytona Beach, FL

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