Monday, March 05, 2007

Lereah Lashes Out at Me and My Other Blog

In an interview with Fortune Magazine, Mr. Lereah, attacked me and my other blog, David Lereah Watch, after being asked about it.

Fortune: You've been accused by the blog David Lereah Watch of being too bullish. What's it like to have an online antagonist?


Lereah: At first I was kind of laughing. And now, it's enough already. This is a 26-year old that could not afford a townhouse and blamed it on the boom. And then he said, Who's talking about the boom and my name kept coming up. So I became Satan to him.

The worst was that my mother read one of those things, and she almost started crying. And I had to say, Mom, you have to have thick skin. I'm going to be in the public and make statements about real estate, and if someone doesn't like what I'm saying, they have every right to say something opposing me.

Now should they go so far as to call me Satan? I don't understand where that's coming from. That's just weird.

No, Mr. Lereah is not Satan. Mr. Lereah exaggerates things. I never called him Satan. I never said he was evil. This blog is actually pretty tame when it comes to crtitizing Mr. Lereah. Check the archives.

Secondly, I was interested in buying a condo or a townhouse [as noted in the WSJ story].

37 comments:

  1. Pulling the mom card. Weak.

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  2. She doesn't need a thick skin because he's making public statements. She needs a thick skin because he's a lousy economist and his incompetence has hurt thousands upon thousands of families.

    Of course, he has a history of this, as he screwed investors who took his advice when he tried to explain how to make money on Information Technology in a book published in 2000. Remember what happened after?

    Simply put, he's a bad economist who should find something more useful to do with his time rather than harming people. And his mother should be ashamed.

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  3. Guster DamusterMarch 05, 2007 6:33 PM

    David,
    I don't know if you know this already but David Leareah wrote a book in 2000 titled, "The Rules for Growing Rich : Making Money in the New Information Economy."

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  4. FU lereah.

    Glad i did not listen to your bs... would be stuck with a toxic loan ready to go bankrupt. I wonder how many americans listened to your BS and are now financially ruined?

    GREAT BLOG AND GREAT WORK. THE SLICK TYPES ARE BACK PEDDLING!!!!!!!!

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  5. David,

    You'll have no trouble buying that townhouse in... 2 years.

    Its getting interesting. Very interesting.

    People can claim "all is well." Let's see them say that after June. All of the pieces are falling into place as predicted. Its slow... but its happening.

    We're starting to see all of the flippers at work go from "I'm richer/smarter than you" to "Ugh oh... how do I cash out?"

    Sadly, one of my good friends just bought their 5th property. :(

    Credit tightening is occcuring. We all know what happens then. Its a very predictable pattern. Now, we really won't see anything until April... but then we'll look back and go "wow, things changed so fast."

    Got popcorn?
    Neil

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  6. You see what you did David? You made Lereah's mother cry.

    David Lereah to his mother: "Mom the criticism directed towards me has reached the bottom. People are going to see that it is a great time to applaud me. It's a Lereah market, they're not making anymore David Lereahs."

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  7. It seems that, after having been noted repeatedly by the media for his numerous incorrect statements and predictions, Mr. Lereah has been improving his equivocation skills. Or maybe it's due to the DoJ's recent involvement with the NAR. (He still states some outright lies, so he still has some improvement to make.) Here, he says that you couldn't afford a townhouse (technically you could afford one, even if not where you wanted one), but not that you weren't considering a condo. He also doesn't actually say that you called him Satan. His intent to mislead doesn't seem to have diminished, but to stop technically lying is a start. I guess.

    I agree that you've been going easy on him. That might be a good thing, since he probably hasn't been feeling so good lately -- apparently, he has been losing a bunch of money on a condo that he bought near the top of the housing bubble.

    In an unrelated matter, it might be time to change the blog's home page description. (Why is it popping? How is it popping? Where is it popping? Etc.)

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  8. Lying Lereah is a scumbag. He has made some moral choices that have enriched him at the expense of others. If his mother doesn't understand his dishonesty then I can't help her.

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  9. Hey madmonkey.....laughing my ass off!! Good one.

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  10. Question for Lereah...

    You said some time ago that houses appreciate normally at inflation + 1 or 2%. So since houses went up way more than this for past number of years why can't you admit prices are to high, got out of wack and are in need of a serious correction in order to get them back to normal inflation +1 or 2% levels?

    Come on dave. Little chickens littles like us did not listen to your rhetoric before and at the peak and are GRATEFUL we did not listen!

    U should be ashamed of yourself for the reckless bullish rhetoric the past several years.

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  11. Hahahah, Lereah PWN3D David. hahahaha. Got Popcorn? Hahah.

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  12. "This is a 26-year old that could not afford a townhouse"

    -how is David the blogger's age relevant to the merits of his criticisms?

    -how is David the blogger's decision not to buy an overpriced home relevant?

    "And then he said, Who's talking about the boom and my name kept coming up. So I became Satan to him."

    No Lereah, plenty of people were talking about the bubble. He is only criticizing you for being blatantly dishonest about its sustainability.

    When you write anti-bubble reports that falsely deny the existence of the bubble and you predetermined that conclusion before you did the research, that is dishonest and misleading to the public.

    Plain and simple, you tried to con the public in a vain attempt to prop up home prices. It didn't work and now countless thousands of buyers who you scared into buying (buy now or be priced out FOREVER) are paying the price for your reckless advice.

    Your mother should cry and be embarrassed for your disgraceful actions. Thousands of people overpaid for homes are will now face serious financial difficulties due in part to you.

    Nice work David (the blogger, that is). Keep it up.

    As for you David Lereah - you better be polishing that resume, because I have a strong suspicion you won't be employed by the NAR this time next year. Hope your condo "investments" are working out well for you.

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  13. But what happens when the builders adapt to the market?

    http://biz.yahoo.com/ibd/070301/realestate.html?.v=1&.pf=real-estate

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  14. I just got off the phone with the writer at Fortune magazine. He regrets to inform us of a misquote in his piece. The sentence reading "Mom, you have to have thick skin. I'm going to be in the public and make statements about real estate..." should read "I'm going to be in the public and [deliberately] make [false] statements about real estate..."

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  15. Anonymous said...
    "It seems that, after having been noted repeatedly by the media for his numerous incorrect statements and predictions, Mr. Lereah has been improving his equivocation skills. Or maybe it's due to the DoJ's recent involvement with the NAR. (He still states some outright lies, so he still has some improvement to make.) Here, he says that you couldn't afford a townhouse (technically you could afford one, even if not where you wanted one), but not that you weren't considering a condo. He also doesn't actually say that you called him Satan. His intent to mislead doesn't seem to have diminished, but to stop technically lying is a start. I guess.

    I agree that you've been going easy on him. That might be a good thing, since he probably hasn't been feeling so good lately -- apparently, he has been losing a bunch of money on a condo that he bought near the top of the housing bubble."

    This is hilarious! ... and exposes the blatant self-interested hypocracy of the BHs! One the one hand this poster hiding behind the "anonymous" moniker accuses David Lereah of lying about where he really thinks prices are heading ... and then the brainiac points out that David Lereah himself has lost value on a condo investment he made. This anon, like most BHs, is obviously not the sharpest tool in the shed. Let's see brainiac if we can explain where your train of logic falls apart. First you say that David Lereah KNOWS that prices are falling and should have been telling people not to buy ... But then you turn around and say he bought ... in spite of his supposed secret knowledge that it wasn't a good idea to buy, and has now lost money on his investment. Of course, the funniest part of it all is that by looking at such a small instant in time --- and not having a clue about David Lereah's investment strategies ... or even if that condo WAS an investment vs. the more likely "pied a terra" near the city, you show how little you know about anything ... And how presumptious you are. Ah, yes, you are the typical arrogant, misinformed, and paranoid BH ... A real credit to your kind. Grow up kids! Quit acting like babies.

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  16. John Fontaine said:
    "Plain and simple, you tried to con the public in a vain attempt to prop up home prices. It didn't work and now countless thousands of buyers who you scared into buying (buy now or be priced out FOREVER) are paying the price for your reckless advice."

    Another brainiac! So John, which is it? Did he fail in his "vain attempt to prop up home prices"? Or did he succeed "and now countless thousands of buyers" were scared into buying ... and paying the price! Make up your mind! You can't have it both ways. You are a credit to your kind. Grow up kids! Stop acting like babies.

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  17. Anonymous said...
    "But what happens when the builders adapt to the market?"

    The BHs aren't capable of thinking through dynamic processes. Trust me, even a simple buy transaction in real estate is way too complicated for them. Why do you think they are so scared and paranoid now ... instead of happy homeowners? I'm sure the story you linked to flew right over their childish heads. Hopefully some day they'll grow up ... and stop acting like babies!

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  18. How many mothers are going to be crying because they were fooled by David Lereah's propaganda, bought at the top of the market using a toxic loan, and went broke?

    David Lereah's mother should wash her little brat's mouth out with soap, and spank his lying behind.

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  19. lance . . .
    the hypocrisy kills me . . . first you complain (several posts ago and I don't have the time to dig it out) that so and so's attack on you is unfair and how does it contribute to the discussion. How do YOU contribute when you call anyone who disagrees with your position a baby, a kid, a whiner . . . blah blah blah. You're the one who is acting like a child by repeating a comment three times in three consecutive posts.

    Why are those who choose not to buy babies, when most are trying to be responsible by saving money . . .minimizing "expenses" and you love to point out b/c it is much cheaper to rent vs. buy right now. You need to live in a place you buy for roughly 3-5+ years before it will come close to break even. Why buy a 250k dump when I can rent pretty decent for under 1000k Besides the fact to do it right you would need 20% down. How many people out there have 90-100k sitting around to buy a house at 450-500k?? So when someone stands up and criticizes those who tell you it doesn't matter take out that ARM that IO buy that house you call them a baby and a kid???

    Sorry lance, but in my short 27 years I can almost guarantee I have done more, seen the world more, contributed more to this world than the vast majority of people out there-I am hardly a child. Name calling those who think different than you is what is really childish.

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  20. Shane, (1) what is good for the goose is good for the gander (i.e., I am going to fight fire with fire from now on) (2) if you've read anything I've written (and comprehended) you would know by now that I do not think everyone is always at a stage in life to buy. For starters, as I've repeated many times, one needs to plan to stay in the same house for 5 years or more to consider buying over renting. What is being babyish is the name calling and the like that the bubbleheads are doing. And I'm glad you now understand what it is like to be faced with such childish tactics. Additionally, BHs come across as whiners ... Something a kid does when they don't get what they feel they deserve because they think themselves so special that they really actually believe that they've "contributed more to this world than the vast majority of people out". A mature person would realize that there is so so much more to learn. Only an immature person would think they know it all.

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  21. way to go Shane! you have an answer for everything Lance...your the one who comes across as a peevish kid

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  22. Wow Lance. You used to make me stop and think through my view of the market (even though I usually disagreed with you) because your relentlessly calm optimism made it seem like one may truly be able to rationalize the market conditions which "bubbleheads" blame on irrational exuberance and irresponsibility. No more, though - you have made incorrect generalizations about all "bubbleheads" based on the actions of a few here, which is both a logical fallacy and insulting to those who ascribe to the "bubblehead" arguments but are willing to listen to and consider your criticisms.

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  23. Lance . . .
    I will do something that I have rarely seen some people on this blog do. I will retract my statement (well modify it), I came off very brash and that was not what I intended (or should have done)(more of getting defensive-a 40+ year-old calling into question my thought process as a babyish b/c I disagree w/ him on housing, stupid me).

    There are many people out there who know way more than I do. I do not claim to know all or be all. I have plenty to learn and I am always constantly learning from my mistakes. Personally my biggest weakness is pride (it is prob. a common thread among the human race).

    However, there is nothing that gets my blood boiling more than for someone who thinks he is wise and old who tries to treat me like I'm a snot nosed 17 year old kid. We can have a rational logical discussion between adults all you like and we can disagree on the meaning of stats and data and why this and why that . . .etc. I may think you are wrong just like you may think I am wrong. You can tell me I don't have the experience in this or that and that's why we have a difference of opinion, I am fine with that. I am fine respecting your opinion, I just expect the same treatment back . . not a you're a child b/c you don't see it my way--you're some snot nose brat b/c you want it now, now, now!!!.

    (Going back to pride again, unfortunately-got to love pride) At 23 lance I'd already lived on my own in Argentina for several years-helping the good Argentines out. I've been to Iraq and helped save lives. In those years in Argentina I gained more knowledge and wisdom on how the world works than someone could gain in 20+ years. I saw an economy collapse there. I have a 22 year-old bro. who fought in GWII at the age of 17. The dumps I've lived in the states don't hold a candle to some of the places I've live in Argentina. As for wanting it now, I own small 17 inch t.v. I don't lack for anything, I just don't need a whole lot, I make more than the median here, and I'm pretty happy.

    So have I done more than the majority, honestly I don't know and really I don't care, I just keep trying to have a maximum impact on those around me and the world.

    I have made a decision though that when I am forking over 3x my income for something, I want it to be decent. I refuse to buy a townhouse or a condo (i'd rather rent . . .unless it was cheaper to buy). If I want to live in a dump, I will, but I'm not going to pay 200k for some crackerjack 900ft, built in 1973 pos in Culpeper that needs to be bulldozed when it could be had 5 years ago for around 80k. Just like I won't pay 500k for some townhouse in Reston (when I can rent it for 1600-2000). I've got better things to do with my hard earned money than fork 50% of my gross income for a house.

    p.s.
    Furthermore lance . . . with reference to (1) generally the more appropriate thing is to rise above the fray (sigh gosh I wish politics would do this more often . . but it's good for infotainment)

    p.p.s.
    I personally believe while only at the tender age of 19-27 or so most of the troops in Iraq/Afghanistan have done more for the good of this world than the VAST majority of the rest of the world--so I am inclined to listen to the guy sacrificing his blood and not call him baby - - but that's just me

    p.p.p.s
    I do believe there are lot's of spoiled want it now brats out there, but I would generally say they are the ones taking out the massive loans and driving the brand new BMWs (but that's just what I personally believe-nothing to back it up)-I don't think it includes the majority of people that think opposite you - - - but I could be wrong.

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  24. Lance said...
    “Why do you think they are so scared and paranoid now ...”

    Paranoid? “Lance” if anything, it’s been very encouraging.

    No rush, no toxic loans to deal with, many homes on the market to peruse, no camping out to place bid on a home. Got three appointments to see five homes but can only make three? No worries, those homes will still be there a month from now.

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  25. Lance said...
    "Shane, (1) what is good for the goose is good for the gander (i.e., I am going to fight fire with fire from now on)"

    Finally! “Lance” will start posting some facts!

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  26. Lance said...
    This is hilarious! ... etc....

    Um, where in that post did I accuse "... David Lereah of lying about where he really thinks prices are heading...?" I don't know why you're so fervent about getting people to buy at a housing bubble peak. But don't you think that you would be more effective at it if you were to control your zeal for insulting those who disagree with you (actually in a recent post I wrote that you said something correct), and actually correctly read and understand what people write before responding to it? You're making yourself seem much less intelligent than you likely are.

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  27. Shane said:

    Why are those who choose not to buy babies

    Pay no attention to his ramblings. He is hopelessly trying to salvage any hope of respect. This is because he was hopelessly and pitifully shot down with his dumb remarks in some of the other threads. Go read the other threads to see why he/she (Lereah's mother?) is lashing out like this.

    anon 5:21 said:

    Wow Lance. You used to make me stop and think through my view of the market

    Huh? You mean something he said actually made you think? The only thing it has made me think about is either he is a prank to boost ratings. I have read plenty of other housing blogs, but none has a character like this.

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  28. You made his mom cry..... SWEEEEEEEEET! HIGH 5!

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  29. Anonymous said...
    "Lance said...
    This is hilarious! ... etc....

    Um, where in that post did I accuse "... David Lereah of lying about where he really thinks prices are heading...?" I don't know why you're so fervent about getting people to buy at a housing bubble peak. But don't you think that you would be more effective at it if you were to control your zeal for insulting those who disagree with you (actually in a recent post I wrote that you said something correct), and actually correctly read and understand what people write before responding to it? You're making yourself seem much less intelligent than you likely are."

    Like I said, I was returning a dose of what I'd been experiencing here the past few months ... childish name calling and etc. It's funny how no one noticed it as it was occuring to me and I tried to ignore it. I turn it around, and every single BH gets offended! If you think I'm exaggerting about what I've been experiencing in the way of name calling and the like, just scroll back a week ... It's been a constant "let's personally attack Lance rather than respond to his points."

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  30. Shane,

    Good post. I don't have time at the moment for a long response to you, but I just want to be sure you understood my motivation (which I think you did from you post) ... see my immediately preceding post. Secondly, I don't think everybody is always in a position where they should buy. I'm just hoping you're not holding off just because you really believe that there's going to be some big price bust and suddenly everything is going to be back to year 2000 prices. I can tell you from experience that the way our economy works, that is an impossibility. Hold off on buying for lots and lots of reasons (even including that you are living a better life now renting) but whatever you do don't hold off from buying thinking that things will cost half tomorrow than they do today. It can't happen. Impossible. Also, btw when I was talking of childish behavior, you can be assured that this applied to Robert ... who is most likely in my age category and not yours. I was condemning acting like a child ... not being young. One can act like a child at any age. Some people just don't grow up.

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  31. Lance said...
    “….It's been a constant "let's personally attack Lance rather than respond to his points."

    It might help if you made one.Even better, follow through on your “fight fire with fire” comment and post some facts.

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  32. Lance said...
    “Secondly, I don't think everybody is always in a position where they should buy.”

    Wow, let me get the notes down from my fridge……..yep, it says here:

    Lance said...
    “And remembering that there is never a bad time to buy”
    July 22, 2006 8:04 AM

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  33. Lance said...
    “I can tell you from experience that the way our economy works, that is an impossibility. Hold off on buying for lots and lots of reasons (even including that you are living a better life now renting) but whatever you do don't hold off from buying thinking that things will cost half tomorrow than they do today. It can't happen. Impossible.”

    It’s different this time?
    http://www.bubblepic.com/displayimage.php?pid=106&fullsize=1

    Come on “Lance”. Even Lereah has moved on to different talking points, such as blaming the weather for price drops. Surely you can come up with a different mantra, lest you revert to the tired, worn out “buynoworforeverbepricedout” line.

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  34. robert said...
    "Lance said...
    “Secondly, I don't think everybody is always in a position where they should buy.”

    Wow, let me get the notes down from my fridge……..yep, it says here:

    Lance said...
    “And remembering that there is never a bad time to buy”
    July 22, 2006 8:04 AM"

    Robert, you have a real comprehension problem. Just because there is never a bad time to be buying (as in "no one should buy now" - one of the BH mantra), doesn't mean it is the right time for YOU individually to buy.

    Like I've said before, when you post my quotes you do your credibility great harm because you expose your lack of understanding of what I have said.

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  35. robert said...
    "Lance said...
    “Secondly, I don't think everybody is always in a position where they should buy.”

    Wow, let me get the notes down from my fridge……..yep, it says here:

    Lance said...
    “And remembering that there is never a bad time to buy”
    July 22, 2006 8:04 AM"

    Robert, you have a real comprehension problem. Just because there is never a bad time to be buying (as in "no one should buy now" - one of the BH mantra), doesn't mean it is the right time for YOU individually to buy.

    Like I've said before, when you post my quotes you do your credibility great harm because you expose your lack of understanding of what I have said.

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  36. Robert said:
    "lest you revert to the tired, worn out “buynoworforeverbepricedout” line."

    AGAIN, I never said that. That is a line used by BHs to express what they think they are hearing when more level-headed people advise them that waiting for a complete collapse in prices before buying is nothing but unreasonable, "wishful" thinking.

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  37. But at the end of the day, you are a whiny 20-something that can't afford a house, probably at any price, and so you are attacking that which you can't have. Your entire blog is nothing but sour grapes. You obviously never heard of a product cycle, but now you are experiencing one. Five years from now when the cycle is again at its peak, you will see how it works - and you will be running to blogger to delete all of your posts on this blog.

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