Weil on Finance: Miami Condos Gone Wild
Howdy, View fans. It's time for more fun with morning links. You know the drill. Here we go.
South Florida's luxury condo market is on fire.
We're not talking that faux-luxury Donald Trump sort of stuff that sells for cheap and the people who buy it need a bank loan. This article by Bloomberg News reporter Oshrat Carmiel focuses on the $17.5 million, 17,000-square-foot kind of luxury where an elevator transports your car up directly into your home, which has an oceanfront view. And you have to put down 60 percent of the purchase price in cash before construction begins for the privilege of buying there. But why would you want to park your car inside your condo? Isn't that what a garage is for? What about the fumes? Some things I'll just never understand.
Citron Research knows how to move stocks .
Andrew Left's short-selling shop issued a report yesterday on Plug Power Inc. that helped send the unprofitable fuel-cell company's shares down 42 percent. The amazing part is that the day before yesterday, Plug Power had been the biggest gainer on the U.S. stock market, rising 25 percent for no obvious reason.
The market for Fannie Mae and Freddie Mac shares must not be all that efficient, either.
Fannie's shares fell 31 percent yesterday. Freddie's fell 27 percent. All because Senate leaders released a plan to unwind the companies that had been in the works for months and wasn't a secret. Plus, it probably isn't going to pass anytime soon. I guess some investors hadn't heard about this plan before yesterday? Where are Eugene Fama and his efficient-market hypothesis when we need them? Both stocks were among the top-five most actively traded in the U.S. yesterday.
Here's a newsflash about life and numbers.
From a column by John Kay in the Financial Times, writing about Alan Greenspan's new book: "No mathematical model can describe `the world as it really is.'" Wait, didn't we already know that? I suppose we have to keep relearning it. So this can't hurt.
The DoubleLine Funds CEO says the junk-bond market could be headed for a debacle, with the average yield at 5.3 percent and prices at 104 cents on the dollar. Blame the Fed's quantitative easing, he does.
But who cares about finance when you can read about dogs ?
Here's a story about Fern, an 18-month-old boxer, who "sounded a car horn for 15 minutes after its owner spent too long in an art gallery." There's a video, too. Thank you, Daily Mail.
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Jonathan Weil is a Bloomberg View columnist. Follow him on Twitter at @JonathanWeil.
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