Shocking auction prices today

Nice score!

Jon

I won't pretend to know why all those items are being sold. However, all companies have cut expenses to the bone and have laid off all the possible employees they can. They are searching for any way possible to get some cash to pay the next rent or lease payment and you are seeing the result. We don't have such a quantity of available machines herein Central Oregon. Just today I did a search on Ebay for lathes and was shocked at the low prices they seemed to be going for.

This is all leading up to the next loan default crisis, the commercial real estate holdings. The building my business is in has 9 suites. We occupy 3 suites and two others are also occupied. The remainder have been empty for 6 months or more. In addition, there are 9 identical suites in a newly constructed wing of the building that have never been completed. Our monthly lease payment is due on the first and I had to personally loan the company money to make the payment tomorrow.

A concrete block manufacturing company up the street has changed their hours to 4 per day. A company across the street that made Grizzleys (rock and dirt separators) closed at the end of the year. Everywhere I look, things are still contracting!

On the bright side, we have quite a few orders for monthly delivery of circuit boards for the remainder of this year and I had a call this morning from a customer about a new military order for their product, so the year is looking better for us. Still, my last resort is to loan the company money from the SSA payment and monthly IRA distribution. Not a situation I ever thought I would be in.

My hope is we can hold out until the world economy recovers somewhat. Otherwise, we will have to auction off our equipment, also.

Regards, Paul

I am pretty sure that this particular sale is bankruptcy liquidation.

Everything goes, including styrofoam cups.

The CRE crisis is definitely coming.

personally, I usually look at such sales. so that is what I find.

Sounds better indeed.

Let me know if you do.

i

You are making me cry.

Damn. Broken, you stole it. I hope it is functional. All the parts are available. We have one minus the base and table with the addition of air downfeed and a hydraulic infeed control that drills cast iron day after day as part of a balancer system.

The reeves drives eventually wear out but we are shoving a 5/8" or larger drill, drilling balancing holes in a lot of our rotating round parts. It takes a few years between drive repairs. You will never do that much work with it.

Awesome buy!

Wes

-- "Additionally as a security officer, I carry a gun to protect government officials but my life isn't worth protecting at home in their eyes." Dick Anthony Heller

I am barely hanging on, too.

A great looking 22x64 lathe, $350. A 4' Fosdick radial arm drill, $200. Wilton 5" bullet vise, $100 (I got it) Millermatic 251, $650 Millermatic 300, 650 Millermatic 250, I got it and will not say for how much

Now get your heart medications:

Pulleyed 1 HP Bports: 300, 200, 400 Toolmex FYD-32 mill (12x49), $100

drill, drilling

I also hope that it is functional. I never saw Myron Bowling engage in any sort of hanky panky. (unlike, say, Premier Asset Recovery who engages in conduct that I do not like at all).

i

Iggy, you suck! I never have seen stuff go for prices like that around here! I just watched bidding on a Powermatic tablesaw, that went for $1400! Probably what it was worth, but certainly no big deal. Greg O

You mean at a liquidation auction, or ebay?

I have never seen anything like this.

A similar power downfeed DP is shown here:

I will sell the DP, but for myself, I bought some cabinets and a Wilton 5" vise and Kant Twist clamps.

i

Interestingly in Texas, I still see new commercial and retail space being constructed, leased and occupied. I've seen new starts just in the last few months, not just projects that were already committed being completed. The only vacant retail space near me is the defunct Circuit City building, and in the vicinity several new building have gone up in the past year and are occupied.

There is a very regional component to this so called recession. My house was just valued for a small home equity loan to finance some upgrades, and the valuation was some 21% over what I paid for it in 2004.

It's narrower than "regional". Here in California, housing and commercial real estate have taken a real pounding as a rule, However, the community in which I live, LA's South Bay, has either held it's value or appreciated slightly over the last two years. The last range I heard was -4% to +6% depending on the specific neighborhood. Not bad, all things considered. I wouldn't be surprised to learn that other states, including Texas, showed a similar pattern.

It's very local. In my little town, prices were flat for about two months in early '08. Then they started their march upward again.

In this case, it's because the town is fully built, it is a very desirable location for NYC commuters, and it has no place to grow. Two new luxury condos are currently being built; they had to tear down two houses to make room for them. Most houses built here over the past five years have required tearing down an old house first.

Places that have been subject to big, new speculative developments -- parts of Florida, California, Texas and Colorado -- seem to have taken the biggest hits. But other parts of those states are doing just fine.

As they say, there are three principles that determine market value in real estate: location, location, and location.

======== Commercial Real Estate backed CDOs [collateralized debt Obligations] seem to be the next weapon of [financial] mass destruction to detonate. It may also well be why the banks are hoarding as much capital as possible rather than making loans. There are also tons [more exact numbers not available] of CDS [Credit Default Swap] derivatives that have been written on Commercial Real Estate debt and a proliferation of related novel financial instruments/products.

For a good Bloomberg article interviewing a man with 50 years in the commercial real estate business see:

?It won?t be a typical part of a cycle where we?re down for two or three years and things recover,? says Laub, 70, whose New York firm, Kenneth D. Laub & Co., says it has handled more than $40 billion of real estate transactions since its inception in 1969. ?It will be longer than we?ve gone through before.?

As in past slumps, the weak U.S. economy is curbing demand for commercial space, increasing vacancies and causing rents and property values to fall. The key difference today is the explosion in debt financing and related derivatives that fueled a run-up in commercial real estate prices in the 2000s, Laub says. That?s left property owners struggling to make mortgage payments. The overhang of debt will delay any recovery, he says.

?It?s not a supply-demand thing; it?s an overleveraged condition,? Laub says.

Unka George (George McDuffee) .............................. The past is a foreign country; they do things differently there. L. P. Hartley (1895-1972), British author. The Go-Between, Prologue (1953).

What is shocking about those prices? Ive been seeing them for over 6 months here in California.

In fact...I have 2 Kondias with GE controls, 1 Bridgeport manual, 1 Siamp manual, 1 Victor 14" lathe and a Sullaire screw compressor available...$2500 for all 6 pieces.

Thats $600 each.

Anyone interested in buying the lot?

Located in So. California

Guner

"I am for doing good to the poor, but I differ in opinion of the means. I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. In my youth I travelled much, and I observed in different countries, that the more public provisions were made for the poor the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer." -- Benjamin Franklin, /The Encouragement of Idleness/, 1766