Archive for April, 2008

Crude oil price to influence real estate prices

Wednesday, April 23rd, 2008

An interesting thought have crossed my mind lately- Are there any unexpected side effects to surging in crude oil prices? I think there are. On of them might be an impact on real-estate prices. This may will have an impact in the medium to long run but it might be a strong impact non the less. Let me explain.

There has always been a tradeoff between living in a bigger house in the suburbs and commuting to work and between living in a smaller, more expensive place in a city center, and cutting on the commute. In the past - this trade off main issue was the save time, energy and improve quality of life. I believe that the recent surge in crude oil prices is going to change that. I think that  with oil becoming more expensive by the year, transportation prices will soon become a major factor in the decision on where to live. This will increase demand for homes in city centers - which can eventually increase residential real estate prices.

Naturally, There are many other factors to this equation. Nevertheless, rising transportation prices will be an important player in future residence choice.

What do you think?

Roman

“The Goal” by Eliyahu Goldratt review

Monday, April 21st, 2008

I’ve just finished reading “The Goal” by Eliyahu Goldratt. This book is a standard in most business schools nowadays for courses on systems managements. It talks about principles of creating a solid strategy for the management of complex systems by pursuing system optimum rather than local optimums.

The book tells the story of factory managers who is in a total mess. His factory can’t produce anything on time and it’s loosing money. The company then sets this manager a deadline of three months to make a complete turnover, to save the factory and to make it profitable.

Another interesting thing in the book is the use of the “Socratic Method” of guidance by the author. The Manager, is guided by a mysterious professor Jonah who helps him get out of his production mess. Jonah utilizes the “Socratic Method” as a way of asking questions and making the manager arrive at the right answers themselves. By using this method, Jonah makes the manager and his team part of the solution, thus making them commit to his methods. This is a method widely used by consultants today to induce change and get commitment out of firm’s top managements.

Along the story, this poor but ingenious manager manages to cope with this improbable hardship with only the confusing questions of Jonah at his aid. This fiction piece is a very light and enjoyable read, although it presents some pretty important business principles.

A good read.

Roman

Me on LinkedIn

Monday, April 21st, 2008

I’ve just figured I have public profile on LinkedIN that can be seen on Roman’s Profile.

Just thought it’s a good idea to let you know.

Roman

What is this Stuff?

Tuesday, April 1st, 2008

A friend pointed me to a really nice flick about stuff.

The flick is talking about our ecosystem, and how our current worldview is destroying it. I know it sounds like the usual tree-huggers propaganda, but this flick is actually very entertaining.

Enjoy!

Roman