May 12, 2017

A Salient Element Of The Greater Fool

It’s Friday desk clearing time for this blogger. “Luxury listings — those priced $600,000 and up — over the past two years are taking longer to sell. Miami’s glut of inventory and sluggish rebound are due to several factors. With the abundantly high inventory, Miami’s high-end condo buyers have the upper hand. With New York’s heavy international presence from the United Nations to world embassies and multinational companies, the slowdown in sales of New York luxury condos appears to be from overseas economic turmoil, the stronger U.S. dollar and the U.S. presidential election.”

“Realtor Maria Wall of Corcoran Group observes, ‘The high-end condo market, such as 432 Park, is not selling as well and as fast as the developers wish.’”

“A review of San Francisco luxury condo data from Paragon Real Estate Group shows a combined five-month supply of luxury condos, co-ops and tenant-in-common units for sale. Paragon Chief Market Analyst and Vice President of Business Development Patrick Carlisle explains: ‘The luxury condo market segment is now the weakest segment of the San Francisco market. If more new projects continue to come on line before existing inventory is sold and without a corresponding increase in demand, the market can only become softer.’”

“Miami-Dade County has the second-highest rate of repeat foreclosures of any major housing market, topped only by New York City, according to Attom Data Solutions. Miami-Dade’s rate was 32 percent, followed by Los Angeles County with 39 percent and Maricopa County (Phoenix), with 26 percent, according to Attom’s April 2017 report. New York’s rate was 54 percent. Attom defines a repeat foreclosure as a foreclosure start filed in 2016 on a property with an address and owner ‘s last name combination that also showed a previous foreclosure start with the same property address and owner combination in the last 10 years.”

“New Castle County Council approved a new $1,000 fine for persistently vacant homes and commercial buildings. The new fine is part of a larger effort to give county officials more power to see so-called ‘zombie homes’ reinhabited. County officials estimate there are at least 1,300 vacant homes within the unincorporated areas of New Castle County. Councilman David Tackett said many are owned by banks that stall the foreclosure process by booting residents but not completing the change in ownership. The new rules would apply a timeframe for a company that holds a mortgage to report that the property will become vacant if the mortgage is in default.”

“A surge in real estate listings in the Greater Toronto Area is helping to calm potential buyers as the anxiety shifts to sellers who now have to wonder if anyone will show up on offer night. Jimmy Molloy, an agent with Chestnut Park Real Estate Ltd., believes that the urge for caution from politicians combined with the jump in listings has led buyers to feel a little less pressured. ‘There’s almost a psychological warfare mounted by the government to get everyone to step back and be a little more thoughtful.’”

“He sees the typical spring mentality developing: house hunters who have been deprived of listings for so long feel immediate relief when they see more ‘for sale’ signs appearing on lawns. ‘Now there’s more supply, they don’t want to buy them either.’”

“Ten houses which were being offered for sale at a discount in North Berwick have been bought by East Lothian Council, at a cost of more than £1 million, after developers were unable to find private buyers. CALA Homes built 49 homes on the land with the agreement 12 would be affordable housing. But attempts to sell these homes at a discount saw only two of them snatched up so the council stepped in to take on the remaining 10, with ‘local people in need of good quality housing now benefiting.’”

“SNP group leader Stuart Currie questioned the use of public money for houses which he said did not support people on council house waiting lists. He said: ‘I was surprised to see the decision to use rent and tax payers’ cash to buy houses on the open market and then immediately sell them at a heavy discount buried inside the council website. This raises a number of concerns.’”

“Cracks are starting to appear in the Forest City façade. Many investors now say they have run into problems making payments on their Forest City apartments, and can’t get their deposits back. ‘I‘ve lost confidence in this project and I don’t want to pay any more,’ 39-year-old Kitty Zhu from the southern Chinese city of Zhuhai, who has paid nearly US$44,000 of the US$334,000 purchase price of a flat here, told the New York Times. ‘I told my salesman that I want a refund, but he just avoids me.’”

“Traveling through the city of Johor Bahru, also known as JB, where the project is located, yet another risk for potential investors became obviously clear – oversupply. At a shopping mall in JB, a young consultant for property firm Premier Plus approaches me with folders for a luxury project in the city, developed by a local firm. Without further ado, he offers nine years guaranteed return of more than 6% and shaves 30% off the list price. I ask if he’s worried about oversupply. ‘No, not at all,’ he initially says, but – after making sure no one else can hear us – alters his answer. ‘Actually, there are too many Chinese developers here. It’s not good for the market. It makes me very worried.’”

“Editor, RE: ‘Rwanda’s economy is in the right trajectory, but do landlords see it?’ There certainly is an oversupply of high-end residential properties and commercial space and a dearth of low-middle income housing. This is not accidental. The developers of the posh properties see (on paper) a higher return on investment on these rather than on low cost building. Lending institutions have a hand in this situation. Their risk management departments failed to do their homework and now they have un-serviced loans on their books.”

“Like all markets, there is a salient element of the greater fool. And yes, it’s a credit cycle all markets ride out, both short and long term credit cycles. So depending on which point in the credit cycle, peak or trough, gains and/or losses can be made by those of a more venal bent. Fortunately/unfortunately…this is the way of the world.”

“Danny Flynn denies none of it. The prominent South Shore auctioneer and real estate professional acknowledges swindling unwitting investors, including close friends and Boston College classmates, out of at least $9.5 million in real estate scams, although prosecutors say the true magnitude of his theft is more than $21 million. Prosector, Neil J. Gallagher Jr., said that while several people Flynn defrauded were in the courtroom, they decided not to speak because of their ‘utter embarrassment’ at having fallen for his scams and their unwillingness to be identified in the press.”

“‘These are people who are smart, educated, went to Boston College, knew Dan Flynn as a friend and colleague . . . and [want to protect their] reputations as someone who should have known better but were sucked into what he was doing,’ Gallagher said.”




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101 Comments »

Comment by Professor Bear
2017-05-12 06:54:55

How did the egalitarian Democrat party’s affordable housing initiatives morph into a Frankenstein monster of inequality?

How Homeownership Became the Engine of American Inequality
An enormous entitlement in the tax code props up home prices —
and overwhelmingly benefits the wealthy and the upper middle class

By MATTHEW DESMOND
MAY 9, 2017

The son of a minister, Ohene Asare grew up poor. His family immigrated from Ghana when he was 8 and settled down in West Bridgewater, Mass., a town 30 miles south of Boston, where he was one of the few black students at the local public school. “It was us and this Jewish family,” Asare remembered. “It was a field day.” His white classmates bullied him, sometimes using racial slurs. His father transferred Asare when he was 14 to Milton Academy, which awarded Asare a scholarship that covered tuition and board. His parents still had to take out loans worth about $20,000 for his living expenses. But the academy set Asare up for future success. He and his wife, Régine Jean-Charles, whom he got to know at Milton, are in their late 30s. She is a tenured professor of romance languages and literature at Boston College, and Asare is a founder of Aesara, a consulting and technology company.

Comment by butters
2017-05-12 08:31:54

So the richest people in Amerika are the black people? LOL

No east or south asians on the mix? They are the biggest slumlords out here. Many and their close families owning 3 or 4 homes. In couple of cases I know it’s the colleagues (or friends) owning multiple houses. They are hypnotized by 60 year old dwellings like I get hypnotized by a super-fit nordic amazonish blonde.

 
Comment by butters
2017-05-12 08:41:55

Owner of a technology consulting and a tenured bc prof should make more than 300k a year. He’s getting ripped up in Boston. Time to move west and buy even more expensive house.

Comment by butters
2017-05-12 08:43:22

up=off

 
 
Comment by Karen
2017-05-12 11:38:09

The Boston Globe article says this family making $290,000 a year bought their first house with help from one of these non-profit “affordable housing” organizations which infest Massachusetts. Typical.

 
Comment by Jingle Male
2017-05-14 03:16:56

Hey PB, how is the San Diego condo market? We are looking to buy a condo there if/when it softens.

 
 
Comment by Professor Bear
2017-05-12 06:57:55

How can you tell when a crash is at hand? For one thing, greater fools tend to rush in right before a crash.

THE WALL STREET JOURNAL
Real Estate
The Next Hot Housing Market: Starter Homes
Millennials are buying homes, steering builders toward lower price points
By Laura Kusisto and Chris Kirkham
Updated May 11, 2017 8:09 p.m. ET

First-time buyers are rushing to buy homes after a decade on the sidelines, promising to kick a housing market already flush with luxury sales into higher gear.

Comment by taxpayer
2017-05-12 07:55:16

I thought Tiny Houses were the trend
dang I got to read up
millenials can barely afford cars

Comment by oxide
2017-05-12 11:10:12

Don’t let the Tiny House shows fool you. Notice how most tiny houses are parked out in the woods or some other idyllic nature spot? That’s because most towns have minimum requirements for house size, such as 600 sq ft.* If you see a tiny house parked in a back yard in a city or a suburb or anywhere near a yob center, it’s probably parked illegally. They are legal really only out in the country.

There are very few people who can live in a tiny house and commute to a cubicle yob. That’s why they are all “bloggers who work from home on their iPhone” or whatever.

——————–
*Tiny house people will tell you that town impose this minimum because they want to charge property taxes. That’s part of it. But the minimum is really there to prevent people from turning a nabe into a slum by renting out their backyards to RVs/campers/tents. Also, I haven’t read up on it, but I don’t think that towns are all that keen on composting toilets.

 
 
 
Comment by drumminj
2017-05-12 07:05:37

Happy Friday, folks. Wanted to remind everyone that you can enhance your HBB-reading experience with the JoshuaTree browser extension for both Chrome and Firefox.

The extension provides an ignore list, hilighting of new comments since last visit, and a number of other usability improvements.

Check it out for Chrome and Firefox, and if you use it and like it, please donate to Ben to show your support!

Comment by Jingle Male
2017-05-14 05:28:47

Thank you. I just downloaded it.

Comment by drumminj
2017-05-14 08:46:53

Sweet. If you haven’t been using it up to now, I’m definitely curious to hear your thoughts.

Comment by Jingle Male
2017-05-14 10:12:52

Jingle

I let you know. I only read the blog sporadically these days as life has been very busy.

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Comment by Jingle Male
2017-05-14 10:14:05

Interesting I can effect bold, strikeout, etc. now. I like it.

 
Comment by Jingle Male
2017-05-14 10:15:06

Hey, it worked. I always wondered how people did that!

 
Comment by drumminj
2017-05-14 17:37:00

Lots of other fun things, too. If you have text selected when you click “reply” it will automatically “quote” it (include it in italics above your response).

And you can add people to your ignore list by right-clicking on their name in the header of a comment.

 
 
 
 
 
Comment by Ben Jones
2017-05-12 07:19:31

‘Miami’s glut…Miami’s high-end condo buyers have the upper hand…‘The high-end condo market, such as 432 Park, is not selling as well and as fast as the developers wish’…‘The luxury condo market segment is now the weakest segment of the San Francisco market’

Jack McCabe said in 2005 that condos were the last to take off and the first to fall.

Comment by Casa$Loco
2017-05-13 06:04:15

And so it begins, Miami is always a harbinger of doom.

I always compare bubble homes to retirement homes, those that require the residents be 55+ years old. Adult Communities are almost NEVER subject to bubble as the market is limited and isn’t being manipulated by flippers or the Chinese. If you want to know the “Right Price” for a house check those prices.

Comment by Jingle Male
2017-05-14 03:12:46

The adult communities in Sacramento cratered badly in 2007-10. $400,000 houses (2006) becoming $250,000 houses (2010).

Those people may pay cash, but they die off at a higher rate than your typical home owners. The kids just want the free money and don’t care about the previous purchase price!

 
 
 
Comment by snake charmer
2017-05-12 07:22:32

“Miami-Dade County has the second-highest rate of repeat foreclosures of any major housing market, topped only by New York City, according to Attom Data Solutions. … Attom defines a repeat foreclosure as a foreclosure start filed in 2016 on a property with an address and owner ‘s last name combination that also showed a previous foreclosure start with the same property address and owner combination in the last 10 years.”
__________________________________/

For some reason our policy-makers thought they could recreate 2005-06 without the foreclosure aspect that followed.

To this day I’ve never met anyone who actually lives in a bubble-era Miami luxury condominium.

Comment by Ben Jones
2017-05-12 07:30:19

‘County officials estimate there are at least 1,300 vacant homes within the unincorporated areas of New Castle County. Councilman David Tackett said many are owned by banks that stall the foreclosure process by booting residents but not completing the change in ownership’

 
 
Comment by snake charmer
2017-05-12 07:28:04

From the Boston Globe article, more on Dan Flynn. The promise of a consistent windfall rate of return is the reddest flag there is:

“Funny, personable, and politically connected, Flynn made business pitches that involved investing in real estate funds, buying distressed properties cheaply, and making loans he claimed would reap 15 to 20 percent rates of return.

He even persuaded some people to contribute to funds he said would generate returns of more than 200 percent.”

 
Comment by Ben Jones
2017-05-12 07:32:59

‘they decided not to speak because of their ‘utter embarrassment’ at having fallen for his scams and their unwillingness to be identified in the press…‘These are people who are smart, educated, went to Boston College, knew Dan Flynn as a friend and colleague . . . and [want to protect their] reputations as someone who should have known better but were sucked into what he was doing’

This isn’t pre-2006 fraud either.

 
Comment by ibbots
2017-05-12 07:47:39

If you’re having trouble finding a house, blame it on Toyota — and State Farm Insurance, Boeing, Kubota Tractor, McKesson Corp. and dozens more corporations moving tens of thousands of workers to North Texas.

“It’s very difficult with how crazy the market is — very hard to find a preowned home not significantly overpriced,” said Salehi, who started his search late last year.

Salehi said he looked at about 50 homes, including one built in 1989 with no updates. “It had nine offers on it,” he said. “It was already overpriced.”

https://www.dallasnews.com/business/real-estate/2017/05/12/not-enough-houses-as-toyota-moves-to-plano

Comment by Ben Jones
2017-05-12 08:02:08

They’ve been going on about Toyota for at least 3 years. DFW has 50,000 apartments in the works and the first quarter saw negative absorption. When I was there a couple months ago there were 12,000 multi-family units available for rent. BTW, have you noticed they use Dallas now rather than Dallas-Fort Worth?

Comment by Karen
2017-05-12 11:52:49

Everyone here believes Toyota, etc. is going to save both the sale and rental markets. It’s this mantra they use: “Toyota is coming, Toyota is coming.”

They might want to take a look at what has been happening in the auto market. It’s only going down from here.

Comment by junior_kai
2017-05-12 14:19:43

I thought that was what went through the minds of the owners due to the defective airbags. My bad!

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Comment by In Colorado
2017-05-12 14:21:57

Wouldn’t it be funny if Toyota skipped past Dallas and went straight to Mexico?

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Comment by AbsoluteBeginner
2017-05-12 20:40:15

‘Wouldn’t it be funny if Toyota skipped past Dallas and went straight to Mexico?’

I was at the store tonight shopping. Was about ready to buy a tube of Frito Lays Stax chips but upon reading the back of it, saw the chips are made in Mexico. Nope. Maybe get Pringles next time.

 
 
 
 
Comment by Oscar Goldman
2017-05-12 08:07:38

http://www.realtor.com/realestateandhomes-search/Dallas_TX/radius-10

Dallas, TX Real Estate & Homes for Sale 14,000 Homes

sumbuddeez ah lion

 
Comment by new attitude
2017-05-12 11:39:03

I wonder why they never chose NM?

 
Comment by barry
2017-05-13 16:56:28

i travel down to Plano every 2-3 weeks - we are a partner of Toyota.

The issue is that the ffirst set of Toyota folks that moved from Torrence CA - got really nice houses at very nice prices.

8 months later they cannot find the deals and many are deciding to stay in CA.

Comment by Oscar Goldman
2017-05-13 17:37:22

They might think that given the distorted sick culture of foolish Californians but eventually they will find out they’re in the same position as before….. up to their eyes in debt on a depreciating house without a buyer in sight.

Comment by Karen
2017-05-14 14:05:09

No kidding. 8 months ago the house prices here were already ridiculous. Completely out of line with any historical values. They got schlonged.

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Comment by Ben Jones
2017-05-12 07:58:57

‘If more new projects continue to come on line before existing inventory is sold and without a corresponding increase in demand, the market can only become softer.’

Not to worry Patrick, there are only 60,000 condos and apartments on the way, and people are leaving. Some shortage.

 
Comment by Ben Jones
2017-05-12 08:06:00

‘‘I‘ve lost confidence in this project and I don’t want to pay any more,’ 39-year-old Kitty Zhu from the southern Chinese city of Zhuhai, who has paid nearly US$44,000 of the US$334,000 purchase price of a flat here, told the New York Times. ‘I told my salesman that I want a refund, but he just avoids me.’

This article is a hoot. It goes into how the Chinese are clamping down on Yellen/Xi buck flight too.

”Without further ado, he offers nine years guaranteed return of more than 6% and shaves 30% off the list price’

Kiss goodbye to your 44k Kitty.

 
Comment by snake charmer
2017-05-12 08:06:01

“Editor, RE: ‘Rwanda’s economy is in the right trajectory, but do landlords see it?’ There certainly is an oversupply of high-end residential properties and commercial space and a dearth of low-middle income housing. This is not accidental. The developers of the posh properties see (on paper) a higher return on investment on these rather than on low cost building.”
__________________________/

While I’ve never been to either place, I’m fascinated by housing bubbles in places like Rwanda and Cambodia. When these buildings are constructed, how many human skeletons are unearthed? Even under the influence of greed, how could anyone possibly conclude that real estate is a good investment in a Third World country where almost a million people were killed twenty-three years ago, largely with clubs and machetes, in a single spasm of violence?

I highly recommend the book “We Wish To Inform You That Tomorrow We Will Be Killed With Our Families,” by Phillip Gourevitch.

Comment by Ben Jones
2017-05-12 08:21:09

The largest mass murder in history was done by crowdan’s pals the Chinese and the same political system is still in power. People don’t care when they think they can get rich.

Comment by Albuquerquedan
2017-05-12 08:57:10

I have mentioned Mao and his killing of people many times, the Chicoms are not my pals. I am just trying to making an objective determination of Chinese growth and Chinese growth prospects. I think that many of the people that disagree with me are unable to divorce their hatred of their system from the data which shows the country gets stronger every year. People that underestimated Hitler’s Germany due to their hatred on him did not help the world at all.

Comment by Albuquerquedan
2017-05-12 09:03:23

I have no problem with people hoping that China fails. However hope is not a strategy to deal with China. If you look at the US electricity production it is flat and many times down, China despite making gains in efficiency has soaring consumption confirming its soaring economy:

http://www.chinadaily.com.cn/business/2017-05/12/content_29322797.htm

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Comment by new attitude
2017-05-12 12:05:22

first come the facts, then we take action. you can call it “hope.”

China is a ticking time bomb. Place your bets.

 
 
Comment by Ben Jones
2017-05-12 09:05:25

GHOST CITY - Inside the Chinese Housing Bubble

https://www.youtube.com/watch?v=BcyYyyaPz84

Skip 8 minutes in.

They are still building these things. Any “objective determination” would conclude they are a basket case if this is the best they can do with their resources. Read the Malaysia article above; they were bringing suckers in by the jet full.

‘I‘ve lost confidence in this project and I don’t want to pay any more,’ 39-year-old Kitty Zhu from the southern Chinese city of Zhuhai, who has paid nearly US$44,000 of the US$334,000 purchase price of a flat here, told the New York Times. ‘I told my salesman that I want a refund, but he just avoids me.’

So sophisticated!

Example

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Comment by Albuquerquedan
2017-05-12 09:10:33

Very soon China will be a $29 trillion economy while the US will be a $22 trillion dollar economy on a PPP basis :

https://en.wikipedia.org/wiki/List_of_countries_by_past_and_projected_GDP_(PPP)

 
Comment by Ben Jones
2017-05-12 09:14:22

How much of that is empty cities and wind farms hooked up to nothing?

 
Comment by Ben Jones
2017-05-12 09:25:19

Example

 
Comment by Blue Skye
2017-05-12 10:56:16

“on a PPP basis…”

Does that mean the Chinese debt ponzi is more like $100Tr? on a PPP basis…

 
Comment by Apartment 401
2017-05-12 11:32:37

That air pollution map is disgusting.

 
Comment by new attitude
2017-05-12 11:40:43

That is why they take their fake Yuan and are buying assets all over the world (with clean air). Cheaper than dropping tomahawk missiles,.

 
Comment by new attitude
2017-05-12 11:41:45

ps. people are cancer on the planet.

 
Comment by new attitude
2017-05-12 11:42:53

If we get rid of our EPA and try really hard, the usa can get that dirty.

profits before people.

 
Comment by Ben Jones
2017-05-12 11:48:18

‘These technical challenges are compounded by political ones that arise from decentralized decision-making in China and the bureaucratic power of state-owned industries. A prime example is a glut of more than 100 new coal-fired power plants now approved for construction by local governments, despite falling utilization rates at existing plants, and growing non-fossil generating capacities.’

‘Given 40-year lifetimes of new plants, this failure of the central government to control local decision-making may further entrench resistance to a shift to renewables for decades into the future. This resembles the excess capacity in the steel-making industry: iron and steel enterprises, which are mostly state-owned, are willing to sell and export at low prices to maintain employment, and are resisting efforts to curtail production. The ability to reduce pollution emissions thus depends crucially on the ability of the political system to find alternative sources of economic development and provide a financial path for coal-fired industrial enterprises and power plants to close or reduce output.’

‘In the case of Beijing, the political challenges are profound. The city is surrounded by Hebei, a poor province with a large industrial sector fueled by coal. Its emissions are major sources of pollution in the capital, but Hebei’s government has little alternative to maintaining employment in these industries.’

http://fortune.com/2017/01/10/china-red-alert-pollution-pm2-5/

Note that in the video I posted, the guy complains about the air pollution, in a ghost city miles from anywhere.

 
Comment by Blue Skye
2017-05-12 11:48:30

You do realize that we burn a lot of coal here and don’t have that problem, don’t you?

 
Comment by Karen
2017-05-12 11:56:54

You do realize that we burn a lot of coal here and don’t have that problem, don’t you?

Please don’t trouble the ideologues with facts and science. It interrupts the narrative.

 
Comment by new attitude
2017-05-12 12:01:13

Karen - The United States burns almost a billion tons of coal each year – that’s almost 20 pounds of coal for every person in the country, every day.

The American Lung Association and the Clean Air Task Force (CATF) claims that 13,000 people die each year from coal pollution–down from 24,000 in 2004, when less pollution regulation was enforced. In addition to the premature deaths, CATF estimates that every year coal pollution is responsible for 12,000 emergency room visits, 20,000 heart attacks, and over 200,000 asthma attacks.

 
Comment by Ben Jones
2017-05-12 12:09:55

‘people are cancer on the planet’

Let’s all off ourselves. You first.

I don’t see how things like this get said. All people have value. We can learn to live within our means. These circumstances expose some things though. I don’t have anything against the Chinese people, but we shouldn’t be closing down factories and sending them to China if this is how they operate. These globalist “elites” that profess to be big environmentalist set this up. So much for that lie. And why don’t they ditch their private jets and confabs in Davos?

 
Comment by new attitude
2017-05-12 12:54:29

Nice work taking it literally.

 
Comment by Blue Skye
2017-05-12 13:48:16

literally…

Perhaps you mean “seriously”.

 
Comment by Karen
2017-05-12 14:31:21

Only close friends and family get to call my by name, nattyboi

 
Comment by Hi-Z
2017-05-12 15:06:35

The American Lung Association and the Clean Air Task Force (CATF) claims that 13,000 people die each year from coal pollution–down from 24,000 in 2004, when less pollution regulation was enforced. In addition to the premature deaths, CATF estimates that every year coal pollution is responsible for 12,000 emergency room visits, 20,000 heart attacks, and over 200,000 asthma attacks.

And millions and millions of people will die if Obamacare is repealed. Claims don’t necessarily follow facts, particularly from people with an agenda..

 
Comment by MightyMike
2017-05-12 16:32:10

If we get rid of our EPA and try really hard, the usa can get that dirty.

You do realize that we burn a lot of coal here and don’t have that problem, don’t you?

These two quotes go together. Coal causes health problems for many Americans, though it’s not even close to the Chinese situation. However, it was a lot worse before the environmental movement led to the Clean Air Act and the EPA.

 
Comment by Blue Skye
2017-05-12 16:52:09

I agree with that Mike. Acid rain and what it did to Adirondack lakes (and how they were saved) is a very good example of why we need rational environmental regulations.

 
Comment by Rental Watch
2017-05-12 17:16:33

I agree with the EPA working to regulate in an effort to reasonably reduces pollutants in the atmosphere (especially those that cause cancer, asthma, etc.).

I do not agree that CO2 is one of those pollutants.

 
Comment by Rental Watch
2017-05-12 17:17:35

grammar fail, but you get the gist…

 
Comment by Blue Skye
2017-05-12 17:23:33

…not agree that CO2 is one of those”

It would be irrational to conclude that you want to eliminate all protections just because you do not agree on that.

 
Comment by Rental Watch
2017-05-12 21:34:07

You’re right. I don’t want to get rid of all protections.

But at the same time, given the stance that the EPA has taken on CO2 (that it is a pollutant and therefore they are authorized to regulate it), it is irrational for me to still believe they are operating in a manner consistent with my perspective on what constitutes pollution, and how they should regulate it.

 
Comment by Patrick
2017-05-13 17:31:47

Blue Skye

I am at the western end of Lake Ontario. Water level here is about three feet higher than prior years.

Have you noticed any difference?

 
 
 
 
 
Comment by Professor Bear
2017-05-12 08:47:27

Is the inverted Chinese bond market yield curve warning of an impending recession, massive Keynesian stimulus notwithstanding?

Comment by Albuquerquedan
2017-05-12 09:04:58

It is a sign the Chinese government wants to bring growth down from 6.9% to 6.2% this quarter so it hits 6.5% this year.

Comment by Blue Skye
2017-05-12 10:57:28

Let’s not forget that the other day Danny was saying that the Chinese lie about their GDP to manipulate the thoughts of everyone else.

Comment by Karen
2017-05-12 12:02:57

Those dastardly, crafty Chinese are at it again. Too smart for us.

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Comment by Financial Moralizer
2017-05-12 12:38:54

What was the story… China is just pretending to be weak so they can fool the commodity markets to give them good prices.

Yes, I think, I get the idea. Like yesterday, Snapchat was just “pretending” to be weak so that buyers could get a lower price on the stock. They indeed cooked their books, in reverse — they made it a bad quarterly report instead of a good one because they wanted their stock lower.

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Comment by Senior Housing Analyst
2017-05-12 08:50:36

Dewey Beach, DE Housing Prices Crater 9% As Sellers Dump Beach Properties

https://www.zillow.com/dewey-beach-de/home-values/

 
Comment by Albuquerquedan
2017-05-12 09:17:06

Nat gas going through the roof over twice the price within a year, the frackers cannot get around geology despite the price move. Interestingly right after I was asked about my price forecast and said it would go up it soared. Not saying it is connected but it was a good call:

http://oilprice.com/

Comment by new attitude
2017-05-12 12:03:19

Dan- if you earn enough money you can get out of crime infested ABQ.

Best of luck, keep buying stawks!

 
 
Comment by taxpayer
2017-05-12 09:19:17

Zillow
only showing 1/2 the listings in my hood- do they charge realtors by the listing?
many hoods how no estimate

would be interesting is it could be searched by hoods w negative outlook (RARE)

 
Comment by Senior Housing Analyst
2017-05-12 10:00:39

Plano, TX Housing Prices Crater 7% YoY

https://www.zillow.com/plano-tx-75074/home-values/

 
Comment by Karen
2017-05-12 12:07:06

From the Boston Globe article on Danny Flynn:

During his sentencing, Flynn was composed and relatively upbeat, chatting amiably afterward with some of his supporters in the courtroom.

More than 20 letters of support were submitted, including from Quincy Mayor Thomas P. Koch and Norfolk County Sheriff Michael G. Bellotti, both lifelong friends of Flynn.

“I believe he has accepted responsibility for his inexcusable crimes,” Bellotti wrote. “I also believe in second chances . . . and I hope Dan Flynn will have the chance to prove his contrition.”

Koch, writing that “Dan has many family and friends, including me, who are willing to do what we can to help him move forward with his life and address the harms and the pain his actions have caused,” asked the judge to “impose a sentence that allows for that process to begin as quickly as possible.”

I’m sure the sheriff and the mayor will repay all the people whose money Flynn stole.

 
Comment by azdude
2017-05-12 15:16:01

If mortgage rates go to 2% we could see home prices continue their bullish run for 10 more years.

 
Comment by Raymond K Hessel
2017-05-12 15:40:31
Comment by azdude
2017-05-12 15:59:55

going across the pond for bad news are we?

Comment by In Colorado
2017-05-12 18:13:25

I was wondering how long until the EU cracked down on diesel cars. Will be in London in a week. I’ll see how bad the air is, given that 40% of cars are diesels over there.

In any case, cars over there aren’t expected to last more than 10 years, and for the ones that do, the Ministry of Transportation inspections will ensure that they will be too expensive to operate and wind up in the scrap yard, even though there is really nothing wrong with them.

 
 
 
Comment by Raymond K Hessel
2017-05-12 15:49:17

Chinese embezzlers and money launderers, er, “investors,” spent $24B on “Golden visas” to the US and other western countries.

http://www.cbsnews.com/news/golden-visas-chinese-investors-24-billion-in-u-s-and-elsewhere/

 
Comment by Raymond K Hessel
2017-05-12 15:59:18

The Home Capital knife-catchers are toast.

https://www.bloomberg.com/quote/HCG:CN

 
Comment by Raymond K Hessel
2017-05-12 16:03:30

Greece will be a generational cautionary tale for morally bankrupt voters who thought they could forever vote themselves benefits someone else would have to pay for.

http://www.counterpunch.org/2017/05/09/somebodys-going-to-suffer-greeces-new-austerity-measures/

 
Comment by Financial Moralizer
2017-05-12 16:27:28

The wheels on the bus go round and round,
round and round,
round and round.
The wheels on the bus go round and round,
all through the town.

The babies on the bus says “Wah, wah, wah”,
Wah, wah, wah,
Wah, wah, wah.
The babies on the bus says “Wah, wah, wah”,
all through the town.

Comment by azdude
2017-05-13 05:58:26

remain calm, do not panic

 
 
Comment by Mr. Banker
2017-05-12 16:58:15

I like it …

Man tricked women into having sex with promise of porn movie stardom.

http://www.kansascity.com/news/local/crime/article150166102.html

Such an enterprising man, too bad he got caught.

 
Comment by phony scandals
2017-05-12 18:15:11

Footage presumably from Elizabeth Warren’s family reunion.

August 4, 2013

https://www.youtube.com/watch?v=j-mAFqDy04g

Comment by rms
2017-05-12 18:54:58

Those injuns look really plump, IMHO.

 
Comment by MacBeth
2017-05-13 04:43:40

Looks like a 1990s-era MTV video.

Hip-hop meets Tu-Pac. Indian style.

So authentic, that. Brought to you by the local chamber of commerce.

 
 
Comment by Senior Housing Analyst
2017-05-12 18:39:44
 
Comment by Raymond K Hessel
2017-05-12 19:20:40

“Remain calm, depositors. Your money is safe with us.” — Insolvent EU banks

http://wolfstreet.com/2017/05/12/run-on-deposits-banco-popular-spain-denies-rushed-takeover-to-avert-collapse/

 
Comment by Raymond K Hessel
 
Comment by Senior Housing Analyst
2017-05-13 05:26:53
 
Comment by @AltFacts
2017-05-13 05:48:59

Do you some times feel like the frog in the water that begins at a tepid temperature but gets hotter and hotter and eventually boils the frog to death?

Comment by azdude
2017-05-13 07:04:27

That seems like the rigged stawk market.8 years of telling you that someday we are gonna have growth. climb a wall of worry and then when it finally materializes sh@t hits the fan and then start over again.

You just have to laugh at the valuations of these high flyers.

WTF does facebook do? Post some annoying adds when you contact your fake friends? Ad growth, yeah right.Seems like a house of cards.

 
Comment by Raymond K Hessel
2017-05-13 07:43:56

No, never.

 
Comment by @AltFacts
2017-05-13 08:04:42

Do you ever hide in the bushes to avoid people you don’t want to talk to?

Comment by Blue Skye
2017-05-13 09:24:56

No and no. I am not a debt donkey.

 
 
 
Comment by Raymond K Hessel
2017-05-13 07:02:26

The subprime auto credit bubble is getting closer to bursting. Lenders recklessly extended credit to “buyers” who had already shown themselves to be financially irresponsible. It’s a good thing the Fed and middle class taxpayers have these subprime lenders’ backs.

http://www.zerohedge.com/news/2017-05-12/flood-lease-vehicles-set-wreak-havoc-new-car-sales

Comment by azdude
2017-05-13 07:50:59

might be a good time to sell your prius and get another?

 
 
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