Think Back To The Old Days - Just A Couple Of Years Ago
A report from the Mercury News in California. “At a Silicon Valley of Realtors meeting this month, Carole Rodoni, president of Bamboo Consulting, said realtors need to educate buyers that this market is not a negotiation market; rather, it is a competitive market. ‘Buyers have to be quick, fast and ready to perform, or the house will be gone. Price is not price; it’s just a number,’ said Rodoni. She said to realtors, ‘Tell your buyers ‘If you can’t go higher, then you need to go somewhere else. If you want to live here, the key is to get in and pay the price because that’s the way it is.’”
From WOWT News in Nebraska. “Brian and Allie Casavant are getting adjusted to their brand new surroundings. On Friday, the young people got to finally call a house in west Omaha home. For the first time buyers, though, it was not an easy journey. ‘Every house we went to, it looked like we were going to be in multiple offer situations,’ Brian Casavant said. Metro realtors said the way things were going, you need to act fast. ‘It’s very busy,’ Mike Story said. ‘Waiting around a few days or thinking about it is not working for most houses right now.’”
From Barrie Today in Canada. “After months of surreal prices and frantic bidding wars, the head of the Barrie and District Association of Realtors says things are settling down in the city. ‘We’re not seeing quite the frenzy that we had been seeing in terms of multiple offers and homes selling radically over list,’ said Rob Alexander, President of the Barrie and District Association of Realtors.”
“Prices are still staying ‘very, very strong’ but homes are sitting on the market a little bit longer, which Alexander says is a good thing. ‘In April Barrie residential detached was up 36 percent over April of last year. Year to date we’re up about 38 percent over the same time last year,’ he said. ‘In terms of what we’re facing there are no signs at this point of weakness in the market from a price perspective. I think we’re getting into this being the new normal. Homes are just going to cost just that much more than they did a year ago.’”
“Think back to the old days - just a couple of years ago - when buyers might look at up to 10 homes before making a decision.”
From Bloomberg. “The story Canada has been telling itself about its economy is starting to sound like wishful thinking. It’s too early for the meltdown at Home Capital Group Inc. to show up in the data — and, with just 1 percent of the national market, the mortgage lender may be too small to do so anyway. But it’s already had a big impact on how investors and analysts are weighing the country’s weaknesses against its strengths.”
“Housing is exhibit no. 1. Estimates of its direct contribution to the economy exceed 20 percent. The figure is much higher when secondary effects are included, from lawyer fees to higher government revenue to increased retail spending driven by homeowners’ inflated sense of their own wealth, as house prices in some regions shot up more than 20 percent a year. Consumer spending as a share of gross domestic product is hovering around the highest since possibly as far back as the 1960s.”
“‘The question is just how will the economy look as that ceases to contribute quite so forcefully,’ said Eric Lascelles, chief economist at RBC Global Asset Management Inc. ‘All bubbles come to an end. I think it could be an interesting year or two ahead.’”
From News.com.au. “The new bank levy has opened a Pandora’s box that leaves Australia’s biggest financial institutions exposed to a potential disaster, analysts warn. In a note to investors, UBS says the levy could pose a risk to what it sees as a housing bubble, threatening the stability of an economy reliant upon the $6 trillion property market.”
“‘If the banks reprice their mortgage books this would put further pressure on household cash flows which are already suffering from near record low income growth, higher mortgage payments and higher power bills,’ said UBS analyst Jonathan Mott. ‘While the implication on the ‘animal spirits’ in the housing market is difficult to predict, we see substantial risk to the Australian Housing Bubble.’”
From Forbes Magazine by John Vail. “Coming up on my 33rd year in the investment management business, I am increasingly reflecting on my experiences. One that stands out was Japan in 1989. At a time when the West was seen as in deep decline, most thought that Japan was in the process of becoming the world’s greatest economic power. To many, its combination of wise central government power and quasi-free market corporate acumen justified PER multiples at fifty to seventy times earnings.”
“Ultra-low interest rates and fiscal spending had fueled a liquidity-driven housing bubble, coupled with strong macro-economic domestic demand, with nothing seen likely to slow down the juggernaut despite years of pessimistic cries from certain market gurus. Once, when I asked a Western broker at a cocktail party if he would believe a hallowed major brokerage firm if it told him that the moon was made of cheese, he replied in the affirmative.”
“The mood there was obviously ebullient, except among fundamentally-based portfolio managers like myself trying to keep up with the speculatively-driven Nikkei, which often bounced on the pronouncements of the similarly hallowed Government. And we were told that if the market were somehow to decline, ‘MOF would certainly not let it go too low and a rebound was certain.’”
“In mid 1989, an ultra-hawkish BOJ-sourced Governor was nominated, declaring his intention to crack down on the shadow banking system and reduce inflation, particularly in housing prices. By the time he took power several months later, equities were already in retreat and even after declining by 50% over the next two years, he was still keeping policy rates high. The financial engineering, called ‘zaitech,’ which was actually a term of veneration at the time, used during the bubble era went badly awry.”
“Investors and pundits simply had too much faith in the ‘new’ system, partially because it had excelled via fiscal and monetary stimulus, although coupled with egregious speculation, for so long that they thought it normal and acceptable. The Japanese were so proud of their new status as a rising world power that they forget about the risks of high equity and property valuations, industrial overcapacity and excessive private sector leverage, including a recent surge in personal mortgage exposure in what were then called ‘two-generation loans.’”
“The Lesson: fortunately, Japanese investors and policymakers have learned the lesson that normal levels of confidence are usually fine, but global investors should always be wary of excessive market confidence when huge deviations from norms are considered acceptable just because they have lasted for a few years.”
‘A significant drop in real estate prices in the St. John’s area doesn’t mean that people should shy away from the industry according to those who buy and sell houses for a living. Housing prices in the greater St. john’s area have decreased by 6 percent in the first quarter of this year according to the RE/MAX 2017 Spring Market Trends Report. The number of units sold also dropped 16 per cent, from 424 in the first quarter of 2016 to 357 this year.’
‘Jim Burton, the owner of RE/MAX Infinity Realty, says people have to look at real estate as a long-term investment, not a short-term one. He and colleague Teri-Lynn Jones say prices have gone up by an average five per cent every year since 1990.’
Losing your ass is losing your ass irrespective of duration.
Hello Housing Analyst! Is this your new handle this week?
Data my good friend. Stick with the data.
Friday Harbor, WA Housing Prices Crater 6% YOY
https://www.zillow.com/friday-harbor-wa/home-values/
I actually was in Friday Harbor over Easter weekend. Your so-called data is wrong.
And don’t forget falling rental rates my good friend.
Kirkland, WA Rental Rates Crater 8% YOY On Skyrocketing Inventory
https://www.zillow.com/kirkland-wa/home-values/
Home Capital burning through its liquidity - only $600 million remaining of the $2 billion lifeline loan extended by HOOPP (at usurious interest rates, and valuing Home Capital’s mortgage portfolio at 50 cents on the Canadian dollar), while depositors have yanked all but $125 million from the high interest savings accounts they were keeping at Home Capital.
http://www.homecapital.com/press_releases/2017/HCG%20Liquidity%20Update%20May%2012%202017.pdf
‘Canada’s two most expensive cities for housing are seemingly haunted, not by ghosts but by the spectre of empty homes. Some believe vacant homes exist on a widespread basis, bought up by a stream of investors so consumed by speculation — or just a safe place to park their money — that they can’t even bother to rent out their properties in markets in where the going rate can easily top $3 a square foot.’
‘It’s “the vacant unit red herring,” said Patricia Arsenault, executive vice-president of research at Altus Group Ltd. in a note about the data that seem to indicate there were as many as 66,000 vacant units in Toronto in 2016. That’s equivalent to about 5.6 per cent of the city’s total stock of 1.2 million private dwelling units.’
‘Plenty of anecdotal tales exist of condo buildings where the lights never go on at night, but vacancy theory proponents often support their argument by citing a Statistics Canada release in February 2017 that looked at the total number of private dwellings in the country versus private dwellings occupied by usual residents.’
‘The agency said that’s just wrong. “Sometimes, people believe that they can use the census counts to get a picture of unoccupied dwellings by subtracting total private dwellings from private dwellings occupied by usual residents,” StatsCan said in an email response to a query. “This is not the case since unoccupied dwellings only represents a portion of the remainder. In other words, the data should not be used to analyze unoccupied dwellings.”
‘The city of Vancouver examined electricity consumption from 2002 to 2014 and found 4.8 per cent of all housing types were unoccupied and that 10,800 homes were vacant for one year or more. Of the empty homes, 90 per cent were condos or apartments. “The privilege of owning a home in Vancouver seems to include not living in it,” said Yan, adding it’s important to understand the patterns of why units are vacant.’
‘Vacant units may be just the price cities such as Toronto and Vancouver pay for being so-called global cities where people want to own property. “This is on people’s minds in those cities that have been affected by investors and speculators,” said Pamela Alexander, chief executive of Re/Max Ontario-Atlantic Canada. “I think it is happening, but the question is to what extent (are properties vacant)? Then the question is what are the unintended consequences of something like a vacancy tax? It can really affect the unsophisticated investor who sees all this and thinks this is just too much red tape for me.”
Time to slap punitive taxes and fines on all speculator-owned vacant houses, doubling fines and liens for those who aren’t keeping up on maintenance and yard work.
Then slap a fine on realtors on general principle.
More gov regulations won’t fix what was caused by gov regulation.
I’m discovering I may be a libertarian.
it’s ok, it’s less taxing
lp.org
most of the Navy JO’s voted LP
probably Army,AF too
Libertarians want open borders and free trade, and their candidate, Gary Johnson, is so clueless he didn’t even know what Aleppo was.
No thanks.
When and where will the first bank runs start? (Not counting Canada’s Home Capital).
http://wolfstreet.com/2017/05/12/run-on-deposits-banco-popular-spain-denies-rushed-takeover-to-avert-collapse/
Oh dear….
http://www.zerohedge.com/news/2017-05-13/canada-hasnt-seen-bank-run-such-decades-finance-minister-wont-rule-out-home-capital-
China’s shadow banking sector slumps, despite Crowbreath’s rosy assurances that Everything is Awesome.
http://www.scmp.com/news/china/economy/article/2094174/chinas-shadow-banking-slumps-weighing-bond-and-stock-prices
Sounds like the Chinese are serious about stopping excessive lending and are willing to accept lower growth since the first quarter was above the plan hardly bad news
^^Paid shill.
Remember just the other day Danny was telling us the Chinese simply lie about their GDP to control the behavior of us less intelligent peoples.
Yes. They have learned from 2008 not to pay top dollar for commodities
The CIA and many other sources are telling the truth about China and they refute virtually everything you say but don’t let the facts get in the way of your opinion and do say that anyone that disagrees with your fact less claims is an idiot:
http://www.theodora.com/wfbcurrent/china/china_economy.html
You haven’t explained why they are still building empty cities and can’t clean up their pollution.
‘Nov 20, 2014. China wasted an approximate 42 trillion yuan ($6.9 trillion) on “ineffective investment” in the five years from 2009, with the problem worsening in the past two years, a government official and an economist were quoted as saying in the local media.’
http://www.reuters.com/article/china-economy-investment-idUSL3N0TA2KP20141120
The CIA … [is] telling the truth.
Good one, Dan.
I laughed so hard I almost wet myself.
That is pretty funny. I’ve shown the CIA is wrong on Chinese wages and Dan ignores that facts. Prefers to be wrong.
Yes the chinese are still making 10 cents an hour but they are responsible for housing bubbles throughout the world. You cannot even see the contradictions in your arguments.
Dan you make the contradictions and then use them to condemn. The average worker in the city makes (let’s say for argument sake) $6,000 a year. Half this is Real Estate “profits”. The wage part is $3,000/yr. The part that you might not be grasping is that China is said to have horrendous wealth disparity. The $6,000/yr includes the 1%ers in the average. It is the cream at the top that are spiriting millions out of the country, not the guys making a few Benjamins a month.
The $6K is not the national average BTW, it is for Urban dwellers. The rural folk rake in 1/3 as much. The CIA missed this subtlety and so do you. I’ve showed this to you before with the source data official from the Chinese government. I know you’ve looked at it because you dismissed it as last year’s data. I could now point you to this year’s (2016 summary) data, but it would be pointless. Tomorrow you would come back here with the same BS.
You just do not understand PPP or the fact that more than a few Chinese make $50,000 plus or that it is the rural Chinese which bring the average down. The large number of houses being bought by Chinese throughout the world show that a large number of Chinese now earn what even Americans would call a middle class life style and the low cost of living allows them to save a substantial portion of it.
http://www.morganmckinley.com.cn/en/article/2017-it-salary-survey-guide
‘The large number of houses being bought by Chinese throughout the world’
You mean like the 80% who bought pre-construction in Australia and now wish they could walk away from the loans? Or the supposedly mega-rich fugitives in Vancouver and BC who bought multiple multi-million dollar shacks and never even made one payment? Sure is a lot of lending going on for these big spenders. These people aren’t “causing” housing bubbles. Did the Californians cause a bubble in Las Vegas, or were they part of the myths that surround them? Because there are still many thousands of FB locals in Vegas.
Interesting that you avoid these simple questions:
‘You haven’t explained why they are still building empty cities and can’t clean up their pollution.’
The cities are only empty until the plan to fill them up is implemented, things like high speed trains and new roads at built, I have shown numerous article showing that these cities do fill up, it make take five or more years but they do fill up. Why the pollution maybe because the level of industrialization and four billion tons of coal burned each year and a rapid increase in the number of autos which also shows that the wealth among ordinary Chinese is much higher than Blue is willing to acknowledge:
https://www.statista.com/statistics/233743/vehicle-sales-in-china/
Those are lame excuses, not explanations. U Wong crowdan.
It may be more profound than simply being wrong.
“or that it is the rural Chinese which bring the average down…”
Well, if they are not in the average for Urban workers they wouldn’t bring the average down.
“more than a few Chinese make $50,000…”
There it is. These fortunate 1%ers are in the average, meaning that for every one of them there are many making a paycheck below the average of $3000/yr for an Urbanite.
I also have nothing against the Chinese. I have friends, colleagues and relatives that are Chinese.
You way underestimate the real wages of Chinese and hence their wealth. The numbers of Chinese that have sufficient money to buy homes in the West is staggering hence their impact on world wide housing prices:
http://money.cnn.com/2015/10/14/news/economy/china-middle-class-growing/index.html
The impact is not just on housing:
https://www.hongkongfp.com/2017/05/14/chinas-role-global-avocado-shortage/
I am not sure why the income link did not post but here is another one, showing if you click on the updated 2017 information shows a per capita income of almost $16,700, what is amazing is just a few years earlier it was less than $14,000. That is why if you are using income levels from just five years ago, and Blue does it you are totally wrong about China:
http://statisticstimes.com/economy/united-states-vs-china-gdp.php
Whatever you are getting for this clown act, It isn’t enough.
I’ll let those who believe your propaganda respond with resounding support.
Find some credible data to refute it.
China now having what used to be American Manufacturing jobs. Its OK because Economists said Americans would then be free to find better jobs, Like RE agents ?
The crow seemed to be calling his name, thought Caw.
https://www.youtube.com/watch?v=WpPUgR7wh3w
The central bankers’ quantitative easing binge has reignited the Housing Bubble into a raging inferno. Try not to get yourself scorched!
‘excessive market confidence when huge deviations from norms are considered acceptable just because they have lasted for a few years’
‘‘Every house we went to, it looked like we were going to be in multiple offer situations’…‘Waiting around a few days or thinking about it is not working for most houses right now.’
Omaha land prices doubled or tripled in just 2 or 3 years. No regulator/central banker was watching out.
‘‘In April Barrie residential detached was up 36 percent over April of last year. Year to date we’re up about 38 percent over the same time last year’
The other day I posted some burg you never heard of outside of Toronto was up 50% YOY, and Chinese were crawling all over it. The report had a UHS saying it was already off 100k. No regulator/central banker was watching out for people. So what if the Chinese lose their ass? But this is the housing market, with loans and regular people getting involved.
‘Buyers have to be quick, fast and ready to perform, or the house will be gone. Price is not price; it’s just a number,’ said Rodoni. She said to realtors, ‘Tell your buyers ‘If you can’t go higher, then you need to go somewhere else. If you want to live here, the key is to get in and pay the price because that’s the way it is.’
Ah, the good old Mercury News, and without one drop of irony. OK, so you Californians, don’t be surprised if the rest of us have a little chuckle at your expense when you have articles like this handing out “education”.
Oh, and this is classic “missed the boat” bubble talk Janet.
“Price is not price; it’s just a number.”
So what is going on here? Has joke day been moved to Monday?
Er, Saturday.
‘Price is not price; it’s just a number’
There was a post here the other day with a Fed guy talking about bubbles and perception. He mentioned a survey. But statements like this tell all you need to know. If there’s enough of this kind of thinking in the minds of enough market participants (along with the prices of course), it’s a bubble. You don’t need the ghost of 2006 to get there.
It’s easy to spot really: fantasy talk. Once in a lifetime “boats” sailing, never to return. New paradigms, smug rationalizations (because only the enlightened can see it): “only rich people will live here from now on, the rest of you leave.”
Shortage is another one:
Not enough houses to go around as Toyota moves to Plano
Dallas News (blog)-May 12, 2017
The strong demand for housing has also created one of the biggest home … is — very hard to find a preowned home not significantly overpriced,” said Salehi, …
Plano, TX Housing Demand Plunges 15% YOY
http://files.zillowstatic.com/research/public/City/City_Turnover_AllHomes.csv
PLANO - I hope they get more then one Applebees.
I cringed at the realtor quotes in the Mercury News article too - but it is probably news reporting and not overtly commenting on the ridiculousness of the situation. Realtors do have to “educate” buyers to the situation or both parties will waste their time chasing something that doesn’t exist. It did come across like propaganda - I think that’s your point. Unfortunately it read to me as completely expected and accurate.
A couple years ago, I was actively looking to buy and, in places like Mountain View, the listed price truly was a suggestion IF that. It’s probably still done this way but buyers should have caught on by now. Realtors would tell you, if you asked, that a comp just sold for about 200k more than the listing price of the townhouse you’d just dragged yourself to. You think you’re looking at a $750-$850 townhouse but it sells for $975. HOW is a buyer to reasonably guess the final price and avoid wasting time at such open houses??? Guess within what margin of error? 50k? 100k? I think most serious bidders use an escalation clause and no contingencies, cash preferred. I laugh when house hunting shows from around the country have buyers in less “dynamic” markets worrying about a 10-20k price difference between options. THAT is comedy to me.
]Sad to hear from the Mercury article that it’s still like this. The culture IS to dramatically under price to drive in traffic and create a bidding frenzy. I find it despicable and weak. Why not price the property at $1 dollar? That would be as informative as the current pricing in the area since the bid-day is actually a silent auction. The confusing part is when an older condo comes on the market in a good area (but across from a housing project for example). Sometimes the list price IS the sale price. Occasionally they even have to (god forbid) wait a few weeks for a sale or mark it down slightly. It falsely fans a flame of hope. We almost got a relative bargain that way but didn’t want to make the deal badly enough.
Or more to the point; Why buy it when you can rent it for half the monthly cost?
“HOW is a buyer to reasonably guess the final price and avoid wasting time…”
You better be getting something extra special because if you borrow that kind of money for a simple place to live you are throwing away decades of your life for it.
Time to dust off this classic Century 21 commercial from right before the 2007 housing bubble burst. They need to do a follow-up on Mouse Man and his nasty hectoring wife with her galactic sense of entitlement, and how this “special listing” and Suzanne’s research worked out for them.
https://www.youtube.com/watch?v=20n-cD8ERgs
‘Walton Group is one of Canada’s largest land developers. It has fallen into hard times of late with pervasively low oil prices and a housing downturn in Alberta spurring large losses over the past three years.’
‘With the company unable to renegotiate the maturity date of a letter of credit received from Canadian Western due May 1, the company has filed under the Companies Creditors Arrangement Act (CCAA) due to it being insolvent on a cash flow basis.’
‘The CCAA is equivalent to chapter 11 bankruptcy protection in the U.S., providing Walton Group with time to renegotiate its debt obligations — many of which are too large for Walton’s companies to make interest payments based on current levels of cash flow.’
They have a lot of land in the US too. Funny that the US media hasn’t said anything about it.
other than oil/ng what does canadah have?
whoops iron or and uranium
although I think UR will com back
lumber, wheat, potash, fresh fish, lobster, manufacturing, healthcare, lots of government, nickel, moly, corn, meat, airplanes, skidoos, bedsprings, coal, snow, ice,
And a cratering housing market.
“Canada’s Housing Bubble Explodes As Its Biggest Alternative Mortgage Lender Crashes Most In History”
http://www.zerohedge.com/news/2017-04-26/canadas-housing-bubble-explodes-its-biggest-mortgage-lender-crashes-most-history?page=6
DIAMONDS AND MORE DIAMONDS
https://www.gia.edu/gems-gemology/summer-2016-diamonds-canadian-arctic-diavik-mine
What does Canada have ?
Good healthcare. Good laws. Diverse people. Religious freedom. Strong mixed economy. Good neighbours down south whom we visit often - to get away from our snow.
That last article about Japan….
You could probably change Japan to China and read the future by reading the past.
Except for the order of magnitude.
Except for the gross poverty of the Chinese.
Except for the immorality and corruption of the Chinese.
Admittedly this is off topic.
I’m looking for feedback from the regulars here regarding “cutting the cord” and getting TV through the other available methods besides cable TV.
My existing internet connection downloads at about 71 Mbps.
I know I need to get a new wireless router, but I haven’t selected anything else yet, other than my over-the-air tv antenna that pulls in about 20 channels.
Thanks.
If you aren’t on a data plan an Amazon Fire stick is pretty handy for $40.
I cut the cord three years ago, as I refused to keep involuntarily subsidizing corporate media propaganda. Have Netflix but rarely watch TeeVee. Don’t miss cable one bit.
I cut the cord about a year ago. Takes a little getting used to but saved quite a bit and waste less time channel surfing. I have 75MB and like Roku. Speed is fine for 2 concurrent streaming devices. I use Ooma for phone, quality is pretty good - cost is about $5 per/month
I cut the cord so long ago (about 6-7 years) that I can’t even remember what it’s like to have cable, or the ever growing bill that comes with it. I think I’ve saved at least $5K since I cut the cord.
Crown Heights Brooklyn Rental Rates Crater 10%YoY On Record High Inventory
https://www.zillow.com/crown-heights-new-york-ny/home-values/
A direct quote from the first link, illustrating just how bananas all of this is.
Well, sh**, I mean, Carole researched this.
Charlotte, NC Metro Housing Demand Craters 26%YOY
http://files.zillowstatic.com/research/public/Metro/Metro_Turnover_AllHomes.csv
The tidal wave of store closures is far from over
Hayley Peterson
May 12, 2017, 12:39 PM
http://www.businessinsider.com/the-tidal-wave-of-store-closures-is-far-from-over-2017-5
Looks like radio shack is finished.
FWIW, the reckless investment banks should have died this way too.
Radio Shack employees will lose their jobs and their pensions.
There is no date on this article but I believe it was written in 2015.
http://www.401khelpcenter.com/401k/white_radioshack_401k_2015.html#.WRhOf4-cHcc
Mr. Bankers says: “Whenever possible pay your employees with promises; Promises are much cheaper to pay than cash and they don’t have to be paid right away - and perhaps they will never have to be paid at all.”
Bahahahahahahahahahahahahahahahaha.
we had like 5 RS near us yet, none of them was a real parts store……that would have saved RS 1 store where you could buy all the little things you needed today now not force you to buy it on line.
So instead shopping at the 99 cent store for connectors audio video cords etc, because RS only carried the $12.95 gold plated ones in stock the cheap one you had t order….multiply that by millions of people who gave up walking into the store and its was easy to see what happened.
I ran across this:
RadioShack Salaries
Sales Associate - Hourly $8.52/hr
Store Manager $33,944
Sales Associate - Part Time - Hourly $8.44/hr
Assistant Store Manager - Hourly $9.78/hr
Go here for a hint of what the officers and executives who run Radio Shack (into the ground?) get as compensation.
https://www.dallasnews.com/business/business/2014/03/05/radioshack-board-approves-promotions-raises-and-a-retention-bonus-for-ceo
“As a hint”. I used that term because the above post is from March of 2014.
seems like the execs are looting the equity of the company just like sears is doing. why should dumbed down common shareholders get anything?
I went to the local mall to get a craftman socket I lost wrenching on the car. I was also looking for a variety pack of small key ways. The people in the tool department had never heard of a key way.
…never heard of a key way
Might be because you were looking for machine “keys” rather than for “key ways”. The key goes into the key way if I’m not mistaken.
why should dumbed down common shareholders get anything?
Aren’t most shares held by institutional and not retail investors?
“Automakers contend there is no cause for alarm” with swollen inventories of unsold cars and low-mileage lease fleets depressing prices and demand, as loan delinquencies are starting to spike.
http://www.reuters.com/article/us-autos-used-analysis-idUSKBN1880KE
When the rebates get huge, then you will know they’re panicking. Are there are some pretty big ones out there
Especially now that prime auto loan losses are surging.
http://www.zerohedge.com/news/2017-05-13/other-shoe-drops-prime-auto-loans-losses-surge-recoveries-tumble
Not surprising that leases have skyrocketed to 4 million a year (from 1 million in 2009), as car prices have soared into the stratosphere. What used to buy a full size sedan with a 300 HP V6 is now barely enough to buy a much smaller 4 cylinder car.
You see all these $40K+ SUV’s and luxury cars on the road and you just know the people driving them can’t afford them.
Saw the repo man in my Class A apartment complex a few nights ago. Lots of shiny new cars here.
A California business banker speaks out … he talks about a late cycle red flag.
Suck ‘em in, shake ‘em out.
http://www.zerohedge.com/news/2017-05-13/california-business-banker-speaks-out-its-classic-late-cycle-red-flag
http://www.msn.com/en-us/money/realestate/home-equity-borrowing-is-on-the-rise-again/ar-BBB3NlL?li=AA4Zjn&ocid=spartandhp
fake fake fake but it works…..full screen it
http://www.mirror.co.uk/news/world-news/bizarre-click-farm-10000-phones-10419403
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?
Same here. I am on Seneca Lake. It is unusually high but not at record levels and less now than a few weeks ago. The Rideau is in flood stage around Smith’s falls and the rain continues. Montreal is getting hit with flooding and I hear that management is trying to hold water back from Ontario and the St. Lawrence at present. Plenty of talk on the Eastern end of houses that should never have been built where they are.
Talked to a gentleman this week who was ironically working in offices that used to be rented out by a “Debt Relief” company. I asked him what they did and he told me they found leads for a drug rehab in Ohio.
More scams in drug treatment industry: Lying to get Obamacare
LOCAL By Christine Stapleton - Palm Beach Post Staff Writer
Posted: 5:35 p.m. Wednesday, December 30, 2015
Company investigators found a small number of insurance brokers who used multiple common addresses to enroll hundreds of out-of-state addicts in Cigna’s marketplace health plan in Florida — created by the Affordable Care Act.
“For example, one broker was found to have enrolled nearly 100 customers — none of whom appear to have had any prior connection to Florida — at an apartment that was connected to a relative of the broker,” wrote Cigna spokesman Joseph Mondy in an email response to questions posed by The Palm Beach Post. “In other instances, customers enrolled using the address of a substance-abuse treatment facility as their claimed residence.”
A Palm Beach Post investigation found that insurance companies are often billed as much as $5,000 for a single urine drug screen. Although insurance companies pay a fraction of that — between $1,500 and $2,000 — with addicts tested three or more times a week, the profits add up fast.
http://www.mypalmbeachpost.com/news/crime–law/more-scams-drug-treatment-industry-lying-get-obamacare/Rp4loEYqAD8qm62Dye0kZM/
And so it begins….
http://globalnews.ca/news/3443462/moodys-downgrade-canada-housing-crisis/
That’s unpossible! We all know that Canada has a vibrant and diverse economy that isn’t dependent on commodity prices, and that they don’t have a bubble and its citizens and residents aren’t up to their eyeballs in debt.
What could possibly go wrong?
“Unlike in the U.S., where major lenders were involved in the subprime mortgage market, none of Canada’s largest banks dabbles in the business of riskier mortgages, Rizvanovic noted.”
La, la, la ,la……..
It’s different here. We’re ever so special.