Cheat the Prophet


On Friday, national political columnist George Will wrote about a favorite concept of mine called "Cheat the Prophet"... I first heard of this arcane reference over 20 years ago in a business school finance class as a defining trait of contrarian investing. It happens when you're told, by the mass media or authoritative sources, that something is inevitable.... and it kind of rankles you.

And that can provoke them to play the game that G.K. Chesterton called "Cheat the Prophet". The players listen politely to explanations of what is inevitable, then they make something else happen, which defeats boredom.

It's the same concept behind supporting the pitiful underdog when you're watching a sporting event you don't care about - just to make the game close and exciting. Will discusses how the campaign of Hillary Clinton is faltering because the media had played out her front runner status, only to suddenly find Barack Obama stealing thunder because the Clinton campaign is... well... boring (the title of Will's article is "Color Hillary Red for Republican" for her no-take-chances campaign so far). Philosophically speaking, it almost doesn't matter whether Obama really is a better candidate... he's cheating the prophet.

"Cheat the Prophet" players stir things up for NO reason other than to shake up the status quo... and they have fun doing it. Bloodhound's Greg Swann is my favorite example, and I appreciated his acknowledgement when I first started blogging by referring to "TransparentRE.com weblog ... as a profoundly unapologetic disturber of the peace".

The housing bubble blog authors (note: I'm now watching their reactions to the upturning multiple offer Bay Area market) shake things up, but their articles and their readers tend to be manically negative (CtP players shouldn't be so glum). Their collective popularity always mystified me, but their attraction is summed up by Scoble who answers the question: why don't positive blogs outweigh the negative blogsHuman nature. We like shit disturbers more than we like people who are calm, rational, nice...

I generally don't do lists, but here are acknowledgements to a few other sh.. disturbing authors (in alpha order, there are more but I kept the list short), whose blogs, by virtue of always poking the status quo for fun and games (and in a civil manner), change the way people think...

  • Drew Meyer's Insights - questions everything and sees contrarian plays even at a relatively young age where experience and history help in perspective.
  • Glenn Kelman Redfin - I've noticed most CtP players have a teflon sheen because they are not on a pathological quest to destroy the status quo... so the status quo tends to label us as "off-the-wall",or  "just being who they are" when we spout off. Well, Glenn is on a mission to change the status quo and he needs a new frying pan... I'm an admirer.
  • Jeff Corbett's Xbroker introduces a simplistic business model and all hell breaks loose.
  • Kevin Boer 3 Oceans recently questioned Redfin's methodology just for kicks, causing Glenn and his team to spend a few days checking a lot of HUD-1 statements and re-reporting their findings. While Redfin was recalculating, Kevin was hoping he hadn't opened a can of worms for Redfin... after all, questioning for questioning's sake is his ultimate reward...
  • Mary McKnight RSS Pieces loves blogs that upset carts...
  • Nigel Swaby in SLC authors the wunderkind blog in obscure Utah... he publicized the intriguing voice of bubble target Casey Serin and then manages the dialogue with the bubble-istas. This is original thinking.


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  • 3/4/2007 4:42 AM John M wrote:
    Great title! With vacancies spiking nationwide we need a blog dedicated to see-through housing. Welcome to the club!

    Actually our worry has nothing on NYT, WSJ, FDIC, HSBC over the subprime sector these last couple of weeks. Even the chief economist of the IMF is expressing concern. On the other hand, bubble negativity has been soundly defeated in Ireland (today's Sunday Business Post)

    On another aspect of your post, you totally miss the significance of Mr. Obama's candidacy. If the Democratic Party nomination process were a middle distance running race, Barrack would be "the rabbit". In the last cycle, Mr. Kucinich played this role. The one purpose these people play is to prevent the front-runner from peaking too soon. Ms Rodham is as good as elected. Get used to it.

    Cheers, John McLeod, Halifax, Canada
    http://HousingDoom.com
    Reply to this
    1. 3/4/2007 6:23 PM Pat Kitano wrote:
      Thank you John... I like the way you factor in the iterations of the Obama candidacy ... and voila...  it's become part of the Clintons master election plan! It mirrors the creative thought process that characterizes Housing Doom and some of the other bubble blogs... it rankles some as pretzel logic to get to their inevitable conclusion (as in yes, there's a bubble.. or yes, Hillary will be the Dem's choice), but I find the propositions fascinating and will ascribe value to the arguments like a Wall Street analyst would parse corporate data - some relevant, some not.

      Reply to this
  • 3/4/2007 6:37 AM Greg Swann wrote:
    I hadn't remembered calling you that. I think you've lived up to it.
    Reply to this
  • 3/4/2007 9:43 AM Kevin Boer wrote:
    Hmmm...guess I'll have to instill more negativity in my blog! Maybe my recent will help.
    Reply to this
  • 3/4/2007 3:27 PM Ahmed Anies wrote:
    I read it carfully and it's so good article and I want to read to you alot, so please I want to be in touch always

    Ahmed Anies
    ( Egyptian Real estate Agent )
    ( Egyptian Real Estate BLOGGER )
    Phone: (002)+ 016 1334420
    Email: info@egypt-realestate-agent.com
    site: www.egypt-realestate-agent.com
    Reply to this
  • 3/6/2007 11:09 AM JeffX wrote:
    The comment goblin must have stole my comment...

    It said (essentially):
    Thx for the nod Pat, I admire everyone else you mentioned for their work and vision, so Im honored
    Reply to this
  • 3/6/2007 11:24 AM REBlogGirl wrote:
    Thanks for the nod and bringing this topic to the masses. And you are right, I love blogs that bring a little civil unrest to an otherwise all too civil and often boring landscape of real estate blogging. Kudos to Drew, Jeff, Nigel, Glenn and the incomparable Greg Swann for being contrarian and giving our corner of the blogosphere some much needed color.
    Reply to this
  • 5/21/2007 7:31 AM Soem Dood wrote:
    After tiring myself out trying to figure out what the heck this dude Casey Serin is actually up to, I finally found a place that catalogs his activities, history, associations, and purpose.

    The site bills itself as "the leading semi-satirical wiki about foreclosure blogs", and I'd say that's accurate, given the predictably rather vertical market for "semi-satirical wikis on the topic of foreclosure blogs." Still, it's a good read.

    Address:
    www.caseypedia.com/

    Hotlink:
    www.caseypedia.com/">Casey Serin
    Reply to this

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