LuxuryBlurb
Posts Tagged ‘the 1%’
Saturday, November 26th, 2011
 Posted by Leonard Steinberg on November 26th, 2011
So the NBA lockout seems to be coming to an end as a tentative deal was struck…..does it not amaze you that no-one finds any offence in basketball players earning MILLIONS of dollars each year for playing with a ball, when it appears OK to trash everyone in the banking industry and leaders of large corporations who earn equally large paychecks? (P.S: The average NBA coach earns over $ 3million and the average NBA player over $ 5million annually….)
Maybe its time to focus the anger, as Paul Krugman of the New Yortk Times suggested, on the 0,1%…..those earning very high, extreme incomes while their companies underperform or those who structure their incomes in such a way that they pay substantially less taxes than those earning equally high incomes? Surely a highly paid basketball player who does not perform qualifies? Generalizing that all in ‘the 1%’ are guilty of fiscal crimes against society is simply stupid: like any group, massing everyone together this way and concluding averages is almost as bad as the typical generalizations such as ‘all the Irish drink too much’….or ‘all Jews are rich’…. ‘all blondes are dumb”… We are constantly amazed how people want to average real estate: “The average apartment in New York costs about $ 1million….” Really? What is average? And what exactly qualifies?
Averaging ‘the 1%’ is much too simplistic and inaccurate….and tremendously unfair. As much as we live in a society that craves billboard-style simplistic-think conclusive analysis, maybe the time has arrived where we break complex problems down a bit more to provide more complex analysis…. and then hopefully more intelligent solutions.
Saturday, November 19th, 2011
 Posted by Leonard Steinberg on November 19th, 2011
As our beloved government teeters on the edge of another major meltdown with the ‘super-committee’ due to formulate a solution to our budget crisis by the middle of next week (something that could cause radical ramifications throughout the markets, especially the credit markets…. think housing), maybe its time for all of us throughout this country to re-direct the anger recently demonstrated by the rather un-focused, semi-kooky and often misdirected OCCUPY WALL STREET to a newer, more focused, more pertinent movement: OCCUPY WASHINGTON DC!
Yes, we Americans are sick and tired of the games Washington plays: remember lots of the bad behaviour and criminal activity associated with the Great Recession happened in great part because of certain action and in-action by government. Now of course they are all blaming one another, even though they are all to blame. Pretty much all government activity seems to boil down to 2 things: 1) money and 2) re-election.
Both the Democrats and Republicans are playing political games at the expense of the country: Republicans delusional pandering to those who receive un-warranted tax breaks while a vast majority of ‘the 1%’ pay their fare share is disgraceful. Remember just because the tax rate is the same for all does not mean all earning the same income pay the same taxes: the same is true for real estate taxes where the disparity between very similar properties is often very different. Democrats on the other hand need to acknowledge that we are spending much more than we earn: raising the retirement age and a host of other common-sense budget cuts are practical and essential, not cruel, and willing this committee to fail to blame the Republicans for the gridlock so that Obama can be re-elected is reckless at best.
I never thought I would see the day when I’d agree with Sarah Palin, but this week her editorial in the Wall Street Journal struck a chord…..and it may explain why we have the housing mess that ultimately caused the financial meltdown that we are still suffering from. In her article she shows how Congress, the lawmakers of our country, obey a different set of laws than the vast majority of us mere voters (and taxpayers!)…. Here are some examples:
Insider Trading – using government information not available to the public at large to predict which companies’ stocks will rise or fall.
IPO Gifts – While it is illegal for members of Congress to accept cash gifts from interested parties, there is no restriction on their being offered initial public offerings in firms, which can be very profitable.
Self-Serving Earmarks – Some members of Congress have submitted infrastructure earmark requests for their districts that appeared to increase their value of their real estate holdings.
Encouraging Campaign Donations – Palin calls this “subtly extorting campaign donations through the threat of legislation unfavorable to an industry.” She may know about this subject first hand with the oil industry in Alaska?
The insider advantages to being a Washington player are obvious, and the hypocrisy pretty astounding as witnessed this week by Newt Gingrich. Ms. Palin cites in this article that 47% of Congressmen are millionaires compared to 1% of the US…..very telling, but also somewhat hypocritical when she has parlayed her career from a lowly beauty-queen/sportscaster to a career politician of almost 20 years…..and now more recently she dumped low-paying government realizing the value of her time in ‘the club’, transitioning from governor to a very highly paid book writer, speaker, activist and correspondent for FOX TV, certainly roles that would not pay as well were it not for her lengthy political career.
Maybe it is time for us to OCCUPY WASHINGTON DC: This government is obviously in need of a major overhaul, and the loudest possible message should be sent to end the political game-playing that is taking place at the expense of 99,99999999999% of the country that have to foot the bill.
Some may wonder why a real estate blogger would be writing this political post: let’s face it, there won’t be much of a real estate market if we do not fix this government….fast!
Saturday, November 5th, 2011
 Posted by Leonard Steinberg on November 5th, 2011.
Have you noticed how the bulk of newly built New York residential buildings possess as much charm as Ann Coulter or Al Gore? Does modern design have to mean sterile design? Understandably, re-creating aged patina can be a bit Disney-esque, but surely within the vast array of good modern design, there MUST be some way of making people’s homes (yes, when they come home and walkthrough that lobby, that is the beggining of their ‘home experience’ just the way a driveway and front yard would be in the burbs) more of a pleasant experience. With the 1% (yes, that’s the luxury market in New York real estate) under much greater scrutiny and derision than ever before, coming home should feel like a big hug, a way of saying “yes, you have more than the other 99%, but it’s not your fault…it’ll be ok….you earned it too!”
I am horrified on a daily basis when architects and designers think that a lobby or hallway overwhelmed with fluorescent lighting that renders a ghostly, sick complexion on humans is acceptable design. Throw in some material choices that are either reminiscent of a bomb shelter or worse, a psuedo-boutique-fashion-of-the-moment hotel and one truly has to wonder whether these designers know anything about the human psyche.
It is easily possible at any price point to achieve a more charming experience with a newly designed building by integrating materials, lighting, artwork and possibly something unique and special to the environment. Attempting to re-create a pre-war experience a-la-15 Central Park West (that while beautifully executed looks like any high end Ritz Carlton) is not what I am calling for. I do believe good modern design can be both inventive and human.
Come on starchitects and world class designers: human beings are not machines….yet.
Sunday, October 30th, 2011
 Posted by Leonard Steinberg on October 30th, 2011
With “the 1%’” under attack by “the 99%” and OCCUPY WALL STREET spreading around country and the world, I think the next really important feature to any high end building will be high security and discretion.
So while the first 10 years of the new millenium for New York real estate amenities was all about Sub Zero fridges, Viking stoves, Waterworks bathrooms, pet spa’s and Toto talking toilets, I think the next batch of high end super-luxury buildings should seriously evaluate tight security as a priority. While ‘the 99%’ have targeted Wall Street for their excessive wealth, lets not forget the football and basketball stars, pop stars, internet stars, etc who have made equal, if not greater fortunes, paying similar taxes and shielding income wherever possible, not hiring too many people either…. All these people will be looking for homes where security is well planned and executed without their home feeling like a prison. Discrete design without excessive flash and outward displays of wealth will be an important consideration too.
At a recent Board meeting the subject came up as to whether our building had a PANIC BUTTON in the unlikely event of an ‘attack’. Further research showed we did not have an easily accessible panic button, although this is being installed. I wonder how many other buildings have panic buttons? I wonder how security prepared some buildings are that house more multi-millionaires per square foot than anywhere else in the world?
What makes a building truly secure? (Well maintained)Technology can certainly help. Bullet proof windows? Gated, enclosed drive-in entry points? Guard dogs? Finger print access pads? Vaults for belongings? 24 hr monitors everywhere?
This renewed security concern is more easily addressed in a New York building than in an individual home in the suburbs: the high cost of high security is more palatable when shared by several homeowners……this should make New York a desirable location for future ‘high security home’ developers.
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Secured underground parking and access code foot entry are already popular. Security patrols and concierge service are helpful as well. Good lighting and location are valuable, any more than that leads me to an unbalanced sense of paranoia!…