It’s Damning To The Homeowner Who’s Just Bought
A report from Vegas Seven in Nevada. “Nearly a decade after the Great recession, Las Vegas has rebuilt its real estate market. John Restrepo—principal of local firm RCG Economics—shares his expertise in regional economics and real estate trends. Q: Are apartment rental costs rising as well? A: The fact that the vacancy rate continues to drop, although it’s dropping a little slower than it was before, indicates that rents are going to continue to moderately increase.”
“Q: What does this mean for apartment construction? A: If the economy slows, because we’ve built so many apartment complexes and still others are under construction today, we could have an oversupply situation in the next couple of years. We have to monitor the economy and the ratio between job growth and number of apartment units permitted. If that ratio gets out of whack, then we could have an oversupply in the market.”
The Atlanta Journal Constitution in Georgia. “A burst of building has brought the Atlanta rental market to a tipping point, possibly tilting rents lower in the next few months. About 12,000 units are being added this year, up 29 percent from last year and 45 percent higher than during 2015, and most of them are in just a few areas, according to Apartmentdata. ‘It is kind of a wait and see,’ said Bruce McClenny, president of the company. ‘But from the renters’ perspective, this is a little bit of a breather and a chance to make deals.’”
“Of course, from the owners’ side of things, it looks a bit different. The over-supply of apartments has meant some discounts and promotions and that trend is threatening to pick up. More than 80 percent of the 15,000 units now under construction are in a handful of places, McClenny said. ‘With the building concentrated, these are markets that will be under the most stress.’”
The Dorchester Reporter in Massachusetts. “City housing officials say new data are revealing encouraging trends in the rental market for existing housing stock in Boston neighborhoods. Statistics reviewed by the Reporter show a slight reduction in the cost of rental units housed in older properties as residents who can afford to are moving into new, higher-end units. Across Boston, existing property rental costs dropped by 4 percent during that period, with the median older stock rental price in Dorchester dropping by 5 percent.”
“‘You don’t want any large swings,’ said Sheila Dillon, the city’s housing chief. ‘Because it’s damning. It’s damning to the homeowner who’s just bought… When we see a four- or a five- or a six- or a seven-percent decrease, that’s okay. You just don’t want a repeat of 2009 where you’re seeing big volatility in the market.’”
“Rents in studio and one-bedroom apartments from the older stock dropped significantly. Dorchester studio rents fell 13 percent between 2015 and 2016, averaging $1,400 compared to the citywide six- percent decrease to $1,600. An overall 17-percent rent decline in Dorchester one-bedrooms during that time was driven mostly by rents dropping by 21 percent in the Uphams Corner/Savin Hill area. In 2015, the median rent in the area was $1,650; it fell to $1,300 in 2016.”
From Silicon Beat in California. “The softening of rents around the Bay Area continues, with Oakland leading the way. The median monthly rent for a one-bedroom apartment in the East Bay hub is now $2,060 — down 14.9 percent from a year ago. A two-bedroom apartment there typically runs $2,500 monthly — down 15.0 percent, according to the Zumper apartment rental website, which analyzed over 1 million listings in 100 U.S. metros.”
From DNA Info on New York. “Real estate agent Anna Sankova braced herself when her clients told her they had two dogs. The couple, relocating from Boston, didn’t have much time to hunt for apartments, and Sankova thought it would take a while to find a building willing to take both pooches. She was wrong. Not only did Sankova find several landlords receptive to more than one dog, some were even willing to lower pet fees.”
“With the current rental glut, especially in the high-end of the market where prices are slipping and concessions are rising, dog-friendly policies are the latest incentive to lure tenants, experts say. New luxury towers need to fill units, said Karla Saladino, co-founder of Mirador. ‘It used to be maybe one dog was allowed in, and ‘We’re going to weigh it, interview it and analyze it,’ Saladino recounted. ‘Even a year ago, it was very hard to find something if you had a 40-pound dog or a Lab retriever. It was like, ‘What three buildings can we visit?’ Now it’s like 10 buildings.’”
The Dallas Observer in Texas. “According to the Dallas Central Appraisal District, the city’s tax base increased by almost $14 billion last year, a boost of more than 11 percent. Over $2.5 billion or 18 percent of the total increase came from new construction. So we’re loaded, right? According to the mayor, we can’t afford to fix the police and fire pension fund. The police force is already dwindling down so low we’ll have to start hiring bad guys with guns to protect us pretty soon. Who knows what we do about the fire department.”
“The city manager sent a memo to the City Council recently revealing that all of the tax increment finance districts or TIFS, in the city have a combined budget of $3.04 billion to spend on such things. In terms of the apartments that have been built in TIFS, that comes to a subsidy of about $94,000 per unit.”
“Do we need to spend almost a hundred grand per apartment in order to get more apartments in the city? Well, the one word that no one is ever allowed to say out loud in Dallas because it will call down tornadoes, pestilence and acne on anyone who says it is ‘glut,’ but as Dave Brown reported in The Dallas Morning News last month. It raises the question: Why is Dallas still trimming billions out of its general fund to subsidize apartment construction? If this many people want in anyway, why do we have to pay them to come?”
From the last link:
‘I will try to give it my simplest shot, which will be too simple. You buy a bare lot. It’s worth a dollar. The tax bill on the lot is a penny. You build a house on the lot. It’s worth $9. Now you’re property is worth $10. Your tax bill is a dime.’
‘In a TIF, the developer buys the same lot – one dollar value, one penny tax. He builds a house for nine dollars. But his additional nine cents in tax doesn’t go to the city the way yours does. It goes into a kitty at his local TIF to be spent subsidizing him and other developers.’
‘Ostensibly the TIF district budgets are to be spent on public infrastructure like new streets and sewers required to service the new developments. But in fact that money also is spent on so-called “finish-out” – desks, flat-screen TVs, whatever – so in effect a lot of it just goes back into the pockets of the developers. ‘
So what you’re saying is we should all become developers…. great!
Can I borrow a few bucks to get started?
Yes.
’so in effect a lot of it just goes back into the pockets of the developers’
And Dallas is building more apartments than any other US metro because of supply and demand - not!
All we need are a few more active shooter/stabber scenarios to really get people excited about moving to DFW urban areas.
http://www.msn.com/en-us/news/us/good-samaritan-kills-active-shooter-in-texas-restaurant-police/ar-BBAL3Gc?li=BBnb7Kz
https://www.usnews.com/news/best-states/texas/articles/2017-05-03/texas-community-college-on-lockdown-amid-intruder-report
http://dfw.cbslocal.com/2017/05/01/report-active-shooter-in-dallas-wounds-one-officers-on-scene/
http://www.nbcdfw.com/investigations/Dallas-Shooting-Suspect-Was-Leader-in-Black-Nationalist-Group-420965933.html
http://www.star-telegram.com/news/local/community/dallas/article146393154.html
Wow, that is CRAZY. Talk about developer welfare and scamming te taxpayer.
‘The Phoenix metropolitan statistical area (MSA) multifamily market had another stellar first quarter. The MSA’s total sales volume (10+ unit properties) increased 28 percent, year-over-year, to $780.87 million across 74 transactions representing 7,908 total units sold. California-based investors continue to be the dominant buyer of multifamily properties in the Valley accounting for 31 percent of total units transacted or 2,486 units, Arizona-based investors came in 2nd with a little over 1,000 units purchased and, rounding out the top five: (No. 3) Utah-investors with 976 units purchase, (No. 4) Canadian investors with 874 units and (No. 5) New York-based investors with 772 units.’
‘Sales of 100+ unit properties led the multifamily investment landscape increasing 35 percent year-over-year to $684.3 million with a marginal contraction in average price per unit amounts of approximately (7 percent) to $101,789. Whereas 100+ unit properties saw sales volume increase and price per unit amounts decrease, 10 to 99 unit properties saw its volume dip (6 percent) to $96.5 million with a surge of 34 percent in average price per unit amounts to $81,472. Reason for the average price per unit increase stems, in large part, to smaller, extensively repositioned properties coming back online for sale.’
‘As with much of the country, Phoenix area construction deliveries continued to increase rising 37 percent to 1,794 units delivered. As a result of increased deliveries, particularly in the Mid-to-High Rise building type category, resulted in an Occupancy Rate contraction of (0.7 percent) to 94.9 percent. As noted in our August 11, 2016, ABInsight article, “Phoenix Rising from the Garden-Style Apartment Community,” Phoenix is in the middle of a development type maturation, from one primarily focused on Garden-style to one more dominated by Mid-to-High Rise developments.’
‘For context, at the end of 2015, the Phoenix Metro was home to 29 Mid-to-High Rise developments accounting for 7,062 units. By the end of 2016, that increased to a total of 42 developments representing 10,057 units which is a 42 percent year-over-year increase. Of the projects currently under construction (50+ units in size, with delivery through 2019/20), the Mid-to-High Rise category is set to nearly double with the addition of 37 projects or 10,216 units.’
“As with much of the country”…over 90% of these are luxury apartments.
I had to move for a job and the only apartment not completely full was “luxury” with salt water pool, star bucks machine, Movie theater, dog park/wash ect. The nice but non-luxury apartments told me put in an application we might have something for you in a few months. (Yea that’ll work “Boss I might start workin June or July or maybe August.”) Apartment I will be renting is still luxury but not to the movie theater extent. (It has salt water pool, starbucks machine, dog wash ect.) It is completely rented and last month they raised the rent because of 100% occupancy. The only good news is they are still building apartments and hopefully that will contain the rent increases.
Exurb of Raleigh.
(Yea that’ll work “Boss I might start workin June or July or maybe August.”)
The current solution to that in San Jose is go Airbnb until you can get what you want. May not work everywhere though.
Hmmm that is interesting… Exburb of Raliegh… I wonder where that would be. All I see is vacancy, vacancy and vacancy. In my apartment complex, they say on their website, “Limited Availability: Please Call,” but if you take a closer look, the parking lots are not even half full.
Doral, FL Rental Rates Crater 8% YoY
https://www.zillow.com/doral-fl/home-values/
“You just don’t want a repeat of 2009 where you’re seeing big volatility in the market.’”
Want in one hand and $hit in the other and see which fills up quicker.
Real estate: “Great time for both buyers and sellers” on this morning’s local news.
Anytime a Realturd says this they should be kicked in the teeth.
“It’s always a good time to buy or sell.”
~NAR
OT
used cars seem to be crashing quickly
I was looking 13/14 now looking 15/16
in just the last month
the model year squeeze starts in July?
East coast or West? Here in the PNW prices haven’t budged at all.
Appalachia on the Pacific
Hehe… guess you’re not attracted to logging mentality.
dc area- 2 yr and 3 yr old seem to be crashing
Hmmmmmm…..
Oil prices crashing
Copper prices crashing
Iron ore prices crashing
What are these indicators trying to tell us?
Do a reverse mortage?
Er, mortgage.
No, no, I like mortage. it’s like portage, ie carrying you to your death.
“Everything is Awesome!” — Janet Yellen and the corporate media
1. Recession is brewing.
2. More QE is pending, as the central bankers never got around to normalizing rates after the last recession.
3. We’ll be living on the edge of the zero bound for a long time, trapped in a world of malinvestment which only pencils out with interest-free loans, subprime lending standards, massive bubbles, and guaranteed future bailouts of lenders who can’t squeeze blood out of rocks.
Central bankers’ bailout pledge:
Everything is guaranteed by our free QE printing press money. So go ahead and bet the farm on the stupidest investments you can dream up. We’ve got your backs!
Dallas’ pension system is absolutely f*cked. Anyone who looks into the shortfall there can see why there are so many cops retiring right now to get what they can out of the fund.
To protect and serve…their own pensions.
The irony? 20 years ago they knew they had big problems which would blow up one day.
Not one cut. Not one step backwards. Support every politician that will promise even more.
F*ck em. The can ran out of road.
No magical taxpayer bailout fairy appeared either.
dude,the gov union goons will get paid
IL will go BK paying them.
TX is “right to work”,but that won’t matter.
Dude,
Mathematics is hard.
It’s going to end.
Illinois IS bankrupt.
Texas is not bankrupt and Texas will not bail out any of its cities.
The public union goon tears will be delicious.
‘The Era of Flexible Lenders’
‘ by Alexandra Pacurar’
‘Changes in the financing landscape such as the wave of maturing CMBS loans, growing interest rates and the continued demand for multifamily properties have maintained high asset prices, while loan-to-value (LTV) and loan-to-cost (LTC) ratios dropped to 50-60 percent. This turned out to be a favorable context for flexible financing providers to fill the gaps in the capital stack.’
‘In this exclusive Q&A, Max Kirschenbaum, head of business development for RSE Capital Partners, Douglas Lyons, managing principal at Pearlmark, Dennis Schuh, chief originations officer at Starwood Property Trust, and David Blatt, CEO at CapStack Partners, gave MHN a behind-the-scenes look at today’s alternative lending market.’
‘MHN: How do you see the multifamily lending market today in terms of trends and challenges?’
‘Max Kirschenbaum: In some cases, senior construction lenders have cut funding to 50-60 percent LTC. In others, lenders have stopped construction lending altogether except to existing customers of the bank. In the acquisitions space, the election contributed to senior loan interest rates increasing. However, continued demand for multifamily acquisitions from investors, both domestic and foreign, has maintained asset-level pricing, which remains near record highs in most major markets. Sizing loan proceeds based on cash flow coverage, both Fannie and Freddie have pulled back on leverage and no longer hit the 80 percent LTV mark consistently, as used to be the expectation.’
‘MHN: What could be the long-term impact of such a constricted lending market? What do you foresee going forward?’
‘Kirschenbaum: The overheating of the Class A infill multifamily development market and the resulting inability to find traditional financing for these projects have pushed developers to focus on new strategies and capital sources. Some are still finding opportunity for new development on the periphery of major markets, where you can build projects with larger units on cheaper land and undercut the rents of the Class A properties that have come online in the urban core.’
‘MHN: What is the number one request coming from borrowers seeking more flexible lending conditions? What do they most often look for outside the traditional lending environment?’
‘Kirschenbaum: Aside from gap equity requests to close acquisition or construction loans, we see a number of requests to create capital events for delayed or over-budget multifamily developments that are nearing completion or stabilization, but not ready for a refinance or sale.’
‘MHN: Do you still see multifamily as being the most attractive asset class for investors in the coming years?’
‘Kirschenbaum: The overbuilding of luxury multifamily product this cycle, largely targeted towards a millennial renter in the urban core, has created relative opportunity for new development and value-add in peripheral locations of major markets. These markets have benefited from significant job growth over the past cycle, but suffer from a shortage of more affordable rental options. Opportunities to deliver new projects to satisfy this tenant base have been largely overlooked.’
‘Blatt: Very much so. Currently, overall renter demand far outstrips supply. In comparison to prior real estate cycles, apartment inventory is low, despite some asserting that particular markets may be overbuilt. Further, we are at historic lows for housing starts too. Factor into that increasing homebuilding costs in the form of land prices, steel, labor and now timber, and this means homes will need to sell for a higher price or just won’t be built because it’s not feasible. Add to that higher borrowing costs for prospective home buyers as interest rates climb, which means they can afford less house for their money. This inevitably redirects a good part of that population back into the renter pool. All this translates into strong support for long-term multifamily investing.’
‘Schuh: With homeownership rates at all-time lows, trends toward immigration to urban cores of major metro areas and the rising rate environment we foresee going forward, we think there will be ample demand for apartment rentals.’
‘In some cases, senior construction lenders have cut funding to 50-60 percent LTC. In others, lenders have stopped construction lending altogether except to existing customers of the bank… Sizing loan proceeds based on cash flow coverage, both Fannie and Freddie have pulled back on leverage and no longer hit the 80 percent LTV mark consistently, as used to be the expectation.’
Translation, the majority of you guys need to refinance in a short time and you are screwed.
“… you are screwed.”
(chuckle)
‘In a retail enviroment often characterized as the worst in a decade, there is still one place where retail landlords can find refuge from challenging headwinds—and where investors are willing to back their businesses with tens, if not hundreds of millions of dollars.’
‘Israel’s bond market has emerged in recent years as an increasingly popular vehicle for U.S. developers and landlords to raise capital. Using their American real estate assets as collateral, companies—particularly small to midsized players that usually have to rely on mezzanine debt to finance their holdings individually—are able to issue publicly traded, corporate-grade debt at borrowing costs far below what they’d be able to secure in the domestic lending market.’
“We’re constantly being asked questions by different investors: ‘What’s the situation [with the U.S. retail market]?’ ” said Yossi Levi, the vice president of Tel Aviv-based financial consultancy InFin. “There is risk exposure in the retail sector; there are vacancies, and it’s scary [for investors]. The main issue is that people bought [retail properties] knowing rents were very high, and now prices are dropping.”
‘Jacob Klein, the president of The Klein Group, who owns retail properties in Manhattan as well as shopping centers in New Jersey and Pennsylvania, said he told investors his company has little exposure to “big-box” retailers and that its properties are well served by their location to population centers and a diverse tenant mix.’
But Klein and other retail landlords whose companies are now publicly traded entities in Israel still have to play the game of investor relations when it comes to easing market concerns. “They say, ‘Well, we read that retail in Manhattan is terrible, rents are dropping, vacancies [are rising]’—they know all of this, and they ask direct questions,” Klein said of what he hears from his investors in Israel.’
Jews getting other Jews into risky investments. For some reason people feel safer giving their money to someone from their own tribe.
And I have read the same here with Hispanics, Blacks and churches.
In the end the victims will cry to the media that they couldn’t believe another fellow tribesman would rip them off…
The lesson: Venture out beyond your tribe. Visit your friendly banker instead.
I wear the cross of no debt and have ready the wooden credit union stake for vampire bankers…
You’re on fire, banker.
If you look at brokered CDs ( yes, certificates of deposit ) offered by many stockbrokers, you will see that the highest rate offerings are invariably from entitites such as (the US subsidiaries of)
Bank of China NY
Bank of India NY
Bank Baroda NY (an Israeli Bank)
I guess Bank Baroda needs to raise money in the US because the Israeli investors will rather buy bonds floated by US banks and developers than make deposits in local banks. This I find interesting.
Noticed this too. Highest tier US banks are probably the shadiest as well. Everyone is broke and waiting for the point of recognition to hit.
“Asking rents in many of New York City’s priciest shopping corridors declined in the first quarter of the year, one outcome of the broader national retail headwinds hitting landlords across the U.S. Average prices for ground-floor space in nine of the 11 major retail districts in Manhattan fell in the first three months of 2017, according to real-estate services firm Cushman & Wakefield. SoHo recorded the largest percentage drop in average asking rent from the previous year, falling 12% to $488 a square foot.” —Wall Street Journal’
CRE prices doubled in NYC in two years.
I get to NYC a few times a year
Lots of vacant stores even on the most desirable shopping streets in Manhattan.
Restaurants not as full.
Insane taxes on everything
But, but…Hamilton tickets!
I went to Chic-raq for Hamilton, great show. Horrible city.
Used to be a great city. Too many new attitudes now.
Used to.
So was Detroit.
I have to imagine that online shopping is killing high-end street traffic retail worse than Wal-Mart. You used to have to travel to New York or Chicago’s Miracle Mile or Paris or Milan or wherever to buy a Hermes scarf or other exclusive items. Now you can just go to Hermes dot com, where a decent scarf can be had for under $200.
Not it’s not the online traffic.
Very informative video here. You can stop when they start talking about gold.
https://www.youtube.com/watch?v=mXPOimCIXz4
We have Hamilton tickets in San Diego at a fraction of the NYC cost. And it’s in San Diego!
rents and oil prices no longer matter
“It’s Damning To The Homeowner Who’s Just Bought”
You’d have to have rocks in your head to buy a house at these prices…. or at any price in the last 17 years.
But we had to get on the property ladder!
‘In April, asking rents for two-bedroom apartments declined from their respective peaks in all of the 12 most expensive rental markets in the US, ranging from a tentative 1.3% down-tick in Los Angeles to an 18.9% plunge in Chicago.’
‘For one-bedroom apartments, asking rents declined in nine of the 12 most expensive markets from the respective peaks, with Chicago’s median rent down 18%.’
‘In ludicrously expensive San Francisco, the median asking rent for a one-bedroom apartment dropped 5.3% from a year ago to $3,370 and is down 8.2% from the peak in October 2015. For a two-bedroom, it dropped 5.9% to $4,500 and is down 10% from the peak.’
‘This doesn’t happen often: The last episode of year-over-year rent declines in San Francisco ended in April 2010.’
‘These asking rents do not include incentives, such as “1 month free” or “2 months free.” Incentives were rare during the years of breath-taking rent surges in San Francisco. Now, with new apartments and condos flooding the market due to a historic construction boom that coincides with a slowdown in job creation, incentives have become common. And they have a big impact. For example, with “2 months free,” the first-year median rent of a two-bedroom would be down 25% from its peak. That’s $15,000 a year!’
‘And signs of desperation are cropping up – desperation both, among investors that sit on new but vacant luxury condos with very high carrying costs; and among folks looking for an “affordable” nice place to stay, even if space and privacy are a bit compromised.’
‘In New York City, the second most expensive rental market in the US, the median asking rent for a one-bedroom dropped 5.5% from a year ago, and has now plunged 12.9% from the peak in March 2016. Rents for two-bedroom apartments fell 1.1% year-over-year and 10.4% from the peak. And there too, many landlords are luring buyers with large incentives.’
‘Rents in the Bay Area cities of San Francisco, San Jose, and Oakland are all in the red. Note the free-fall of rents in Oakland, down 15% year-over-year.’
‘Even in Seattle, where annual rent growth was in the high-single digits through the fall of 2016, red is making an appearance. While the median rent for a one-bedroom eked out another record, the median rent for a two-bedroom has dropped 7.5% from a year ago.’
How are those 2, 3 or maybe even 7% cap rates looking now? And cap rates exclude cost of financing. Ouch! Now you know why I’ve been saying these apartment guys are losing money. Biggest philanthropists in real estate history, subsidizing rents from sea to shining sea.
If cap rate exceeds cost of financing ==>all smiles.
If cost of financing exceeds cap rate ==>all frowns.
If the LTV have suddenly gone from 80% to 60%, and credit is contracting if not drying up, just who is financing at below the cap rates?
Ben, I know you like crowing about (or serving crow to?) these luxury developers, but I don’t think they’re going to suffer much. They’ll likely be able to refi with Yellinbucks and stick the loss on the taxpayer. Or they’ll write off the loss on their taxes and stick the loss on the taxpayer. Then the buildings themselves will likely be peppered with Section 8s doing lines off the granite countertops. While hard-working middle-upper class folk like MWR will be stuck in Grade B. It’s maddening.
I understand where the chips fall. The skin is largely from the pensions, life insurance companies and federal government guarantees. Although a few will lose everything and some will commit suicide, it’s only money and not that big a deal really. The resulting job loss is another matter.
To relax w schadenfreude watch
house haters international and tiny house haters
1. people paying 300+ a sq ft in counties w no extradition laws
2. a travel trailer at 3x the price and weight
most of the tiny houses will rip apart at 40 mph and you need a F350 diesel to move them
Airstream! Airstream! Airstream!
Get out of my lane!
Airstream! Airstream! Airstream!
Airstream is so beautiful
We can hardly keep the foxes out
When we round that final corner
We can hear them shout
Airstream!
And it gets worser:
‘Which US hotel markets are on the bubble?’
‘As the hotel industry continues on the path toward a downturn, it’s time to begin looking at warning signs for which markets are poised to experience a large drop.’
‘At a recent gathering, I was involved in a group conversation with hotel property investors who agreed that they have been “choking on the numbers” in certain U.S. hotel markets. Stated differently, their spreadsheet models explode once either acquisition prices or development costs are entered to evaluate hotel opportunities, especially in red-hot markets.’
‘They asked, “Should we pay such high prices now, given that the boom may turn into a bust?” As a college professor, I offered the standard response: “It depends, what do you think?” As a hotel market forecaster, I promised to think and write about hotel property market bubbles with regard to their questions, and likely those of others, about current pricing in local markets.’
‘Boom and bust experiences over the past few decades—with tech stock prices and housing prices, for example—have generated an avalanche of books and articles about short-term, extraordinary asset pricing volatility. A summary of these writings appears as follows.’
There are some interesting charts and such at the link.
McLean, VA Housing Prices Crater 6% YoY
https://www.zillow.com/mc-lean-va-22101/home-values/
Finally spoke to the LL’s agent. Rent is remaining the same. Since the RE shills all talk of rents continuing to rise here in Las Vegas, I was relieved. Moving again would have polished me off. I think they know they’d have to eat a few months like the last time it went vacant.
Apparently it didn’t hurt to ask.
Nope, but I thought it might (huge rent increase).
Gig Harbor, WA Housing Prices Crater 5% YoY
https://www.zillow.com/gig-harbor-wa-98332/home-values/
Bye bye Obamacare!
Just read it. This is way beyond positive considering the individual mandate scam goes away.
Obama’s ego would not have allowed that.
Gotta hand it to Trump. He let the original bill die on the vine rather than make a circus of forcing it to pass.
If all of these groups hate the the new health bill, it must be good: http://www.msn.com/en-us/news/politics/in-rare-unity-hospitals-doctors-and-insurers-criticize-health-bill/ar-BBAL8em?li=BBnb7Kz
Maybe not, Karen. If the new bill throws millions of people off the insurance rolls, it’s no wonder that the entire industry wouldn’t like it.
Doctors will have fewer patients to heal (and it may be surprising to hard-edged HBB, but there are still doctors who actually like healing patients). Hospital administrators will have fewer customers. And insurance companies will not get their government subsidy $$. Obamacare was a scam set up by insurance companies to use poorer patients as a pass-through to pocket government money. Obama and the Dems knew that, but it was worth it to them to get people covered and treated. Take away Obamacare, and there might be enough of a drop off to put some insurers out of business.
Whatever this new bill is, you know who is going to get the real shaft? GenX, as usual. The boomers are all on Medicare by now so they don’t care. The Millenials are young and healthy so they don’t care. GenX is entering the phase when they start to really get sick, and when they really need employer health care too. Either they will pay massive premiums at work, or healthcare won’t be there for them.
Donk….. MedicareLess is no less a monumental failure. We’ll get to that one next.
doctors who actually like healing patients
More like billing patients.
Obamacare was a scam set up by insurance companies to use poorer patients as a pass-through to pocket government money. Obama and the Dems knew that, but
Freaking frauds
The problem with Donks narrative is the govt has no money. Obamacare was set up to create another conduit between wager earner wallets and the govt at the federal level just like SS, Medicare and federal taxes.
The problem with Donks narrative is the govt has no money. Obamacare was set up to create another conduit between wager earner wallets and the govt at the federal level just like SS, Medicare and federal taxes.
Exactly. The one and only purpose of all social welfare and government taxation programs is to take money from the productive and funnel it to various parasites.
It’s always done “in the name of the children” or “the poor” or “the sick” or whatever group works as a convenient excuse for the money funneling.
GenX is entering the phase when they start to really get sick
Speak for yourself. I’m in perfect health. I take care of myself and never caused myself the sort of stress that induces illness by indebting myself to buy consumer goods.
Easy to say until something happens to you. I’m an R.N. and have worked in hospitals and healthcare for over 30 years. I’ve seen everything. I was also in perfect health and something happened to me. I am now partially disabled. Just cross your fingers and hope your perfect health continues.
Also hope that you don’t have a pre-existing condition (most people will at some point) and don’t have to fight to get care you desperately need. Talk about stress.
The ACA/Obamacare is not the problem. Insurance companies and for profit health care are the problem.
Every other industrialized country has it right when it comes to health care.
We do not have a “for profit” health care system. We have an intricate bureaucratic system of government controls and subsidies/money funneling.
Feel free to move to one of these other countries. I suggest Canada. I hear their real estate is really valuable. You’ll make a killing.
Aw, what a heartwarming reply. Makes me feel and warm and fuzzy. You sound like a nice person. Trump supporter, right? Thanks!
nurse
Definition: the healthcare [sic] industry’s [sic] version of Teamsters, but without the warmth or charm
Synonyms: cold heartless tyrant; battleaxe
Usage: The nurses at this hospital are unhappy when they see the same patient back in the hospital for the same problem over and over, especially if they feel the health issue is that patient’s fault, and even more especially if that person is poor or self-pay. When they encounter such an individual, they are sure to treat them “extra special” to ensure they don’t return anytime soon. (Taken from real life experiences, and scenes witnessed.)
Also see: Nurse Ratched, One Flew Over the Cuckoo’s Nest
Oh dear. Your apparent misery and self-disregard (hatred?) not to mention mean-spiritedness saddens me. Sending warm healing vibes.
Gen X was getting screwed under the ACA because they were being forced to pay too much for insurance. This has now changed.
I saw one article with the headline something like “GOP healthcare law now allows insurers to considerably raise premiums on older patients”.
It could just as easily read “GOP healthcare law now allows insurers to charge lower, more appropriate, premiums for younger patients.”
It goes without saying that the health system in the U.S. is an abomination, is in shambles and things will get much worse before they get better. I don’t know the specifics of TrumpCare except what I’ve heard and it looks like a lot of people - not just GenX - will suffer if it becomes a law. Naturally, Trump, his billionaire friends and Republican lawmakers will have fabulous insurance for themselves and their families so what the f*ck do they care what happens to average Americans? They don’t care.
At least Obama tried. I personally benefitted from Obamacare and still do through a medical crisis that was no fault of my own, just bad luck. Prior to the ACA, as a self-employed person I was paying over $600 a month for just myself with a $2,000 deductible and high co-pays. The ACA cannot be blamed for premium increases, insurance companies were jacking up premiums all on their own WAY before the ACA/Obamacare.
I’ve worked as an R.N. in the health insurance industry and in hospitals for 30+ years.
The country will be forced to adopt single payer Medicare-for-All like all other industrialized countries at some point - 10, 20 years? - but it will be a long and bloody battle with many people (note, not wealthy people) suffering unnecessarily before that happens.
lol
Many of the representatives who voted for it don’t like it much either. They hope that the Senate will improve it.
will senate do any of these ?
http://polobserver.wixsite.com/cutspending/healthcare-savings
That’s lame little list, put together by people who don’t know much about the issue. Number 3 is very vague. On the other hand, number 2 has been going on for quite some time now.
Moral hazards are paid for by you and other taxpayers now.
In the early 80s as a drink there was no care provided.
Off-shoring, ageing, dependency, etc., i.e., this time is different.
Oh dear…Home Capital has already burned through the first billion of its financial lifeline from HOOPP (pension fund for 321K future bag holders). And here I thought China would be the first bubble to burst.
http://www.zerohedge.com/news/2017-05-04/home-capital-uses-1-billion-lifeline-seeks-additional-funding
HCG = Bear Sterns
How many more “lenders of last resort” will shortly be circling the drain?
https://www.bloomberg.com/news/articles/2017-05-04/brokers-loosen-ties-with-home-capital-as-it-fights-for-its-life
Even with all the proliferating red flags, fools are still rushing in.
http://www.scmp.com/property/hong-kong-china/article/2093035/hong-kong-home-sales-rise-20-cent-april
“‘You don’t want any large swings,’ said Sheila Dillon, the city’s housing
chieffixer. ‘Because it’s damning. It’s damning to the homeowner who’s just bought… When we see a four- or a five- or a six- or a seven-percent decrease, that’s okay. You just don’t want a repeat of 2009 where you’re seeing big volatility in the market.’”fixed it
These are ballsy criminals indeed. But they have no clue they’re criminals. It’s the housing culture where crime is central thus acceptable.
Canada’s regulators rival ours for negligence and/or complicity.
http://www.cbc.ca/news/business/home-capital-group-osc-hearing-may-1.4099588
Looks like Da Boyz are exiting the Wall Street-Federal Reserve pump & dump before the bottom drops out.
http://www.cnbc.com/2017/05/04/jeff-bezos-sells-940-million-in-amazon-stock.html
Here’s a Blast from the Past for all you ignorant pukes out there in HBB land; It’s Frontline’s “College, Inc” and it’s from the year 2010.
Some things have changed since 2010 (such as bankruptcies and lawsuits and such) but it still worth a watch.
https://www.youtube.com/watch?v=YAWq0oknOCs
She tried but she couldn’t do it.
Putin’s fault?
“The softening of rents around the Bay Area continues, with Oakland leading the way.”
The cost of shelter just cannot go much higher than about 3 to 3.5 x income. Greater San Francisco is about 7x higher and San Francisco proper is 11x higher.
Not going to work at these levels. The Maxi Rich won’t really feel it, but then most people aren’t wealthy at the nose-bleed level.
Regards,
Roidy
Chinese stocks drop on falling commodity prices
By Kenan Machado
Published: May 4, 2017 11:48 p.m. ET
Markets down across Asia; Nikkei, Kospi closed
A policeman rappels down a building during in a training session in Dezhou, China.
Slumping commodities prices in China sent stock markets there lower Friday, leading declines across the region as investors feared that the nation’s crackdown on speculation and borrowing could hurt metals demand.
The Shanghai Composite Index SHCOMP, -0.78% was last down 0.7%, with the Shenzhen Composite 399106, -1.24% off 0.4%. Hong Kong’s Hang Seng Index lost 0.7%, while the Hang Seng subindex that tracks Chinese shares fell 1%.
Markets in Japan and South Korea were closed for holidays.
Chinese commodity futures extended losses as speculators sold contracts amid tougher rules aimed at cooling an overheating market. The most actively traded iron-ore futures contract opened down 6.8% on the Dalian Commodity Exchange, after tumbling by the 8% daily limit on Thursday.
Meanwhile, steel-rebar futures traded in Shanghai opened down 2.9% and rubber was down 4.5%.
On Thursday, already weak investor sentiment got a fresh hit after six Chinese government agencies pledged to curb runaway local-government debt by increasing oversight of the projects they are pumping money into.
“Financial market regulatory scrutiny certainly appears to be driving liquidation across a range of asset classes onshore,” said Bill Bowler, a Chinese equities trader at Forsyth Barr in Asia.
There was also some anticipation that the efforts could continue to tighten bank credit and impede growth, he said.
Weaker commodities prices were also dragging down stocks in Australia, with the S&P/ASX 200 XJO, -0.68% down 0.4%. Among the index heavyweights, BHP Billiton BHP, -2.67% was off 2.2%, Fortescue FMG, -3.02% fell 1.4% and Rio Tinto RIO, -2.01% lost 2.1%.
A decline in Brent crude oil prices to under $50 a barrel in early Asian trading also sent energy stocks sharply lower.
Australian companies Santos STO, -3.02% and Woodside Petroleum WPL, -2.68% were down around 2% each, with Hong Kong-listed shares of PetroChina down 2.4% and offshore oil producer Cnooc1.7% lower.
…
Still, analysts expect that fears of any hard landing in China driven by the deleveraging move may be short-lived.
Tim Condon, head of research for ING in Asia, said he expects the People’s Bank of China to have learned from its June 2013 experience, when the introduction of measures to curb the growth of shadow banking caused the interbank market to seize up.
…
Are you worried the Fed may actually follow through on rate hike plans this time, instead of pulling yet another head fake?
With loan volume at astronomical levels, they don’t need a high margin. It works until the debtors are exhausted.
If I were Trump, I would want the rate hikes now and lower in 2019/2020.
fed’s already working on his reelection bid.
“Boomerang kids” may never leave parents’ home. And they won’t be buying houses.
http://www.telegraph.co.uk/news/2017/05/04/100000-boomerang-kids-will-never-leave-home-study-suggests/
Supposedly China is serious this time about tightening up on credit - I’ll believe it when I see it.
http://www.scmp.com/news/china/economy/article/2093191/its-serious-china-central-bank-squeezes-credit-again-money-market
China’s central planners, having blown a gargantuan, unsustainable bubble with trillions in created-out-of-thin-air “stimulus,” now assure us they can do an orderly unwinding of $3 trillion in excess credit.
Got popcorn?
http://www.scmp.com/business/companies/article/2093137/why-china-can-deflate-worlds-largest-credit-bubble-orderly
Wealthy FBs may not be wealthy for too much longer.
https://www.theguardian.com/australia-news/2017/may/03/wealthy-feel-pinch-of-housing-costs-as-one-in-four-australians-face-mortgage-stress
The ECB will keep kicking the can until it runs out of road. Then the implosion of its financial house of cards is going to be spectacular.
http://www.zerohedge.com/news/2017-05-05/italy-dependent-ecb-foreign-investors-dump-bonds-amid-capital-flight#comments
Apple borrowing in the bond market to reward shareholders, while sitting on $250 billion in cash. Then buying back its own stock at the peak of the biggest bubble in market history. Does that make any sense?
Heckova job, Ben & Janet.
http://www.marketwatch.com/story/apple-is-once-again-borrowing-in-the-bond-market-to-reward-its-shareholders-2017-05-04
Does Apple’s $250B of cash overseas take into consideration the $80B of debt they have taken on to pay dividends?
At least with Google, you can look at their ~$90B of cash and see only $4B of long term debt.
Well, ya got Apple buying it, Buffett buying it, and all the central banks in the world buying it. So, basically, infinite buying. lol.
“The OPEC deal was doomed to failure from the very beginning,” said Eugen Weinberg, head of commodities research at Commerzbank AG. “If they deepen the cut, the effect will be short-lived. OPEC will find itself in the same position again in six months time, but non-OPEC would get more market share by then.”
https://www.bloomberg.com/politics/articles/2017-05-05/opec-runs-out-of-options-as-bid-to-make-oil-great-again-fizzles
Caught in a black gold liquidity trap of their own design. I’m loving it!
These stories always make me smile. F those guys–a real bummer when they can no longer gouge us in order to pay for their gold-flecked toilet paper on their private jets.
Obama beat Clinton as the most expensive hooker in this country.
400k per pop. That’s gotta be a record.
We call it capitalism.
Ever see what “the Rock” gets paid for a movie?
Wait, I thought being a politician was all about public service.
Are you telling me that being a politician is so you can sign massive book deals, get paid $x00k per speech, raise hundreds of millions for a foundation that then pays you for running it, etc.?
I’m shocked, shocked to find that gambling is going on in here!