They Almost Can’t Give It Away
A report from the Toronto Sun in Canada. “Bidding wars have slowed and traffic at open houses appears to be down across the GTA and Hamilton after the province introduced new measures to cool the red-hot real estate market. Tim Hudak, president of the Ontario Real Estate Association said he’s heard from hundreds of agents since the Liberal government introduced measures to cool the market on April 20. ‘The realtors I’ve heard from are telling me that there are fewer people in bidding wars,’ he said. ‘That’s not just in Toronto, but also other parts of the Golden Horseshoe, and there are fewer people coming to open houses.’”
From Bloomberg on the UK. “Jennifer Pickford, a 39-year-old owner of four London rental properties, is not only avoiding purchasing more — she’s considering selling the ones she has. She isn’t alone. ‘If I thought stamp duty was bad, the tax relief issue really was the nail in the coffin,’ Pickford, an accountant from Surrey, said in an interview. ‘It just makes the whole exercise unprofitable and pointless.’”
“‘Before, prices were rising fast enough to cover extra taxes and you could still make money,’ Spencer West, who owns two London properties, said in an interview. ‘Now, they have stagnated and there’s no profit to be made with mortgage repayments, repairs and extra taxes coming out.’ West said he may sell his rental properties and reinvest in his pension plan.”
The Malta Independent. “The last Census, carried out in 2011 – with results published in late 2014 – revealed that in the Maltese islands only 68.2 per cent of residential property is regularly occupied. The rest is either vacant (18.4 per cent or else used seasonally or for some secondary use (13.3 per cent). While all this built-up residential property is vacant or under-utilised, the building industry keeps building more – thereby adding to the glut. They call this progress and a significant contribution to the economy. Alternattiva Demokratika – the Green Party and the environment lobby in Malta has been vociferous about this over-development of the Maltese Islands. This state of affairs has been worsening, with neither the Labour Party nor the Nationalist Party giving a fig about the consequences.”
From CBC News on Japan. “Tucked away in his office in Japan’s most prestigious university, Hideki Koizumi is worried. The towering cranes dotting the Tokyo skyline outside his building suggest a booming city, but the decaying suburbs tell a different story. Dozens of condo buildings and hotels, and at least 45 skyscrapers are planned in central Tokyo in the coming three years, but the long-term view for the country’s housing market is depressingly flat.”
“Young people these days want to live in the centre of Tokyo and are fleeing the suburbs. Left behind are the elderly, who often struggle to maintain their homes. ‘And their physical situation will become worse. So if no one will live with them in the suburban areas, who will look after them?’ said Koizumi. Once the 2020 building boom triggered by the Tokyo Olympics is over, he warns, the problem will accelerate.”
“He says while prices for condos in the centre of Tokyo are now out of reach for many ordinary families, many more affordable ones are being sold in the city’s suburbs. The condo price difference is indeed huge. Central Tokyo apartments can sell for as much as roughly $120,000 per 3.3-square-metre block. In the suburbs, Noboru Takimoto, Tokyo’s senior manager of overseas residential sales at Jones Lang LaSalle K.K., says they’re selling for about a third of that.”
From TV New Zealand. “Chinese investors have shown a strong appetite for housing investments around the globe in recent years, including in cities like Sydney and Auckland. However Professor Chen Bo from Huazhong University of Science and Technology, who has advised the Chinese Government on trade and investment reforms, told 1NEWS Political Editor Corin Dann in Shanghai, that ‘what we are seeing now is the Chinese Government is not trying to facilitate investment abroad anymore like it was.’”
“Mr Chen believes over the last few years some Chinese investors have looked to real estate abroad, not because they look for profit opportunities in those countries, but because they are afraid that investment opportunities in China have gotten gloomy. But he says investment in property abroad is not considered to be healthy.”
“Mr Chen gives the example of an individual wanting to study in New Zealand or send remittance to relatives in New Zealand. He says where previously they could wire 50 thousand dollars US without application. Now he says ‘for any amount over 10 thousand dollars US you need to fill out a bunch of documents saying exactly what you are trying to do, which makes you feel very cumbersome.’ He says this is one of the signals from the government that it wants to tighten capital out flows ‘no matter whether it is a firm or individual.’”
The Guardian on Australia. “The calls to financial counsellors began about 18 months ago. Middle-aged, middle-class homeowners in Western Australia who had shifted their retirement nest egg from superannuation to property were suddenly unable to pay their mortgage. It typically started with an investment property, often in the Pilbara mining towns of Karratha, Port Hedland and Newman. Purchased for $750,000 in 2012, when the market was near its peak, the property was now worth $300,000 and falling. The rental return, which had been $1,600 a week, had fallen to $370. Not enough to cover repayments.”
“Then came the kicker: the massive mining projects whose construction had fuelled the biggest economic boom WA had ever seen were now completed and required considerably fewer employees. Property prices in the Pilbara’s two largest towns, Karratha and Port Hedland, have fallen 65% in the past five years. Newman, an inland town supported by BHP’s Mount Whaleback iron ore mine about 1,186km northeast of Perth, dropped 82% from a median house price of $850,000 in 2012 to $153,000 in 2016.”
“If property owners didn’t get out before the bubble burst, the president of the Real Estate Institute of Western Australia, Hayden Groves, said, ‘they almost can’t give it away. And when that’s all dried up they’ve sort of put everything on the line – their businesses, their family homes – and when that’s all dried up and they haven’t been able to sell the asset the bank’s come knocking and they’ve lost the lot. The speculators who take a punt on making a mint and if they don’t see it coming don’t get out, well, I think they’ve only got themselves to blame.’”
“The Midland Information Debt and Legal Advocacy Service is located in the middle of that mortgage belt. It has been ‘inundated’ in the past 12 months by people made redundant in the mining downturn who can’t make their repayments, its general manager, Justine Clarke, said. A number of those people also have an investment property, intended to fund their retirement, secured against their family home. They now face retirement with nothing, Clarke said.”
“One client was already retired and living frugally off the pension, living in a home that she owned outright. She was encouraged to borrow against her house to purchase several investment properties in a mining town during the boom, Clarke said, and had lost them one by one before losing her home. ‘Generally what’s happened is they have used the equity in their home to purchase the investment property,’ Gemma Mitchell, principal solicitor for the Consumer Credit Legal Service WA, told Guardian Australia. ‘So once the investment property goes into arrears or into negative equity, that has an effect on their homes.’”
‘A number of those people also have an investment property, intended to fund their retirement, secured against their family home. They now face retirement with nothing, Clarke said’
It’s all fun and games until someone loses an eye.
‘what we are seeing now is the Chinese Government is not trying to facilitate investment abroad anymore like it was.’
SOL moment?
I understand the Chinese attitude towards investment and debt. They look at US at the end of WWII and how it grew its way out of debt (the debt-to-gdp dropped as the economy grew). China is an emerging market with a high but dropping GDP growth rate, with both a growing internal market and outside investment.
However, debt is like heroin. Makes politicians feel really good, as well as people who receive the largesse. Yes, there are high functioning heroin users. But it’s easy to crash, and even the high functioning users are impaired. It is very easy to go too far.
And the US and Europe and Japan? They’re not even high functioning users. Sure, there’s a willing pool of money willing to purchase government debt. But that money requires interest payments. As debt growth continuously outpaces GDP growth, interest on the debt will become an ever larger budget item until it dominates the budget.
Eventually paying the interest will require a tax increase or de facto money printing.
All stimulus is redistributive. Central planning has always been a siren song for leaders, despite its sketchy history. They can’t help themselves.
Chinese government debt is very low and is still dropping as a percentage of GDP, it is corporate debt that is high. Of course, corporations do have assets. Below is news on Chinese real estate:
http://www.shanghaidaily.com/business/real-estate/Chinas-property-sector-continues-to-slow-down-on-stricter-measures/shdaily.shtml
http://www.usdebtclock.org/world-debt-clock.html
As you can see Chinese public debt is at 17% of GDP and is actually falling as a percentage of GDP. We are at 75% but we might even fall this year.
http://www.shanghaidaily.com/business/economy/China-industrial-output-expands-65-pct-in-April/shdaily.shtml
Chinese industrial output is allegedly through the roof, yet global commodity prices continue to slump.
Predictions of car sales close to 30 million, yet oil remains weak.
Demand for commodities continues to increase, supply has just been exceeding that, much of that is due to projects which were started when prices were much higher. Once begun, you ignore sunk costs so it still made since to complete them.
A house is not an *investment* it’s a place to live and under normal market conditions not even a good investment when the ROI is 3% annually, just even with inflation. And you have to keep in mind taxes and upkeep. We’re at the tipping point: Only way for prices to go now is D
O
W
N
It’s not an investment in the traditional sense, where someone gets more money back than they put in. Someone who “consumes” a house - simply wants to live in it - will put in multiples more money, via interest and maintenance and taxes, than they will ever get back.
Of course, this has to be viewed relative to rent. So the question becomes, where do you lose less? And that requires setting the variables, timeframes and costs versus rental rate increases and doing the calculation.
Houses can yield a profit if they’re flipped, or if they’re rented out (over a long enough period of time, with suitable occupancy rates and rental rates).
And that requires setting the variables, timeframes and costs versus rental rate increases and doing the calculation.
Yeah, the NYT had just such a calculator, which they then dumbed down. For perspective, when I moved into my house 5 years ago, you could rent an average 3/2 townhouse for the same $$ as my PITI. Now, you can only rent an average 2-bed flat for the same $$ as my PITI. When I bought, I predicted that the rent on a nice* 1-bed will creep up to match my PITI after 9-10 years. We’re on track for that.
Yes, I realize that Ben has been posting articles about falling rents, but so far, it’s mostly been concession for new luxury complexes close-in to downtown areas. In my area, the existing suburban complexes, built prior ~2004 or so, aren’t empty and aren’t lowering rent. As for reno of Grade B to luxe, there hasn’t been much of that either.
—————
*I would consider a “nice” one-bed to be 90s-era one-bed in a suburban garden complex with a central pool.
‘When Chinese corruption fighters late last month published the street-level addresses of suspects living overseas, including five in British Columbia, the accompanying statement was filled with the usual guff about “flies” and “tigers” (low- and high-ranking suspects, respectively) and shout-outs to Comrade Xi Jinping for his leadership of the anti-graft struggle.’
‘But embedded deep in the boilerplate was a different kind of shout-out, the kind that should have the ears of Canadian immigration authorities burning.’
‘The Central Commission for Discipline Inspection (CCDI) lambasted “certain countries” for turning a blind eye to suspects using investor migration schemes to flee China, and take their allegedly dirty money with them.’
“We urge specific countries not to pursue their own economic interests by issuing passports and visas through investment immigration schemes when applicants are suspected of corruption,” the statement said. “Passports and visas that have already been issued should be revoked as soon as possible.”
‘The point was emphasized the next day by Feng Jingyou of the CCDI’s international co-operation unit, in an interview with state-run China Daily. Feng said “some individual countries” had “ignored the suspects’ corruption crimes and issued them visas under investment immigration policies in return for economic benefits.”
‘The 22 suspects whose addresses were outed last week all live in countries with investor migration schemes. Not coincidentally, none has an extradition treaty with China.’
‘Canada has its immigrant investor program (price: $800,000 as a refundable five-year interest-free loan) and entrepreneur scheme (price: $100,000 in business equity). These were shut down federally in 2014 but still operate via Quebec, pumping thousands of mainly Chinese millionaires into Vancouver and Toronto.’
‘The programs were for years the world’s most popular millionaire migration vehicles, but recently they have been surpassed by the U.S. EB-5 scheme (price: US$500,000 investment); 10 of the suspects are living in the United States, mostly in California and New York, which have a proliferation of EB-5-related real estate projects. Meanwhile, New Zealand, home to four of the suspects, has its popular investor scheme (price: NZ$1.5 million) and investor-plus scheme (price: NZ$10 million).’
Haven’t the ChiComs been “cracking down” on corruption for years, if not decades? Yet nothing seems to change, as the graft continues and anyone with cash to spare tries to get it out of China.
‘‘they almost can’t give it away. And when that’s all dried up they’ve sort of put everything on the line – their businesses, their family homes – and when that’s all dried up and they haven’t been able to sell the asset the bank’s come knocking and they’ve lost the lot.’
‘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.’
http://thehousingbubbleblog.com/?p=10083
‘they almost can’t give it away.’
Some simple advice:
REDUCE THE PRICE.
‘The speculators who take a punt on making a mint and if they don’t see it coming don’t get out, well, I think they’ve only got themselves to blame.’
Indeed.
The two sides of the coin.
JUST ONCE, I’d like to see the people that fan the flames of the mortgage bonfires get burned when it implodes!
notice I said “when” it implodes, not “if” . . . because it always crashes & the same scumbags profit.
nothing ever changes.
Acquis:
They most likely will get theirs.
Last bubble the $1.00 MM loan bucket had DQ of 13.9%. A fair number of these loans wee to Brokers, RE agents General contactors and other people exposed to RE. A lot of people drank the Kool aid. In fact, more than once we had “temps” walking down the hall past my office talking with their RE agent about property in Port St, Lucie. Crazy crazy crazy. I am now in a much smaller city and not in Florida so I don’t feel that level of insanity yet but the “can’t be a bubble” because there is a shortage of homes gets a lot of play in the area. They are building a lot of homes in suburban Raleigh but the shortage theme is definately said over and over
so I don’t feel that level of insanity yet but the “can’t be a bubble” because there is a shortage of homes gets a lot of play in the area.
There’s almost certainly no shortage of homes for people wanting to live in them. But for any speculative asset, there will always be a shortage for flipping/reselling, as long as the price is rising. There was a shortage of tulip bulbs for trading, not for consuming.
Speculative bubbles are inherently unstable, it’s unclear why some prominent economists advocate them. It’s like they want to take a hot bath without getting wet.
So if no one will live with them in the suburban areas, who will look after them?’ said Koizumi.
Syrian refugees?
“One client was already retired and living frugally off the pension, living in a home that she owned outright. She was encouraged to borrow against her house to purchase several investment properties in a mining town during the boom, Clarke said, and had lost them one by one before losing her home.
Greedy & stupid should have consequences.
First you lose your mind. Then everything.
“The calls to financial counsellors began about 18 months ago. Middle-aged, middle-class homeowners in Western Australia who had shifted their retirement nest egg from superannuation to property were suddenly unable to pay their mortgage. It typically started with an investment property….
These FBs and their greed and recklessness drove housing prices out of reach for the prudent and young couples. It won’t bother me in the least if they all end up living in cardboard boxes.
Purchased for $750,000 in 2012, when the market was near its peak, the property was now worth $300,000 and falling. The rental return, which had been $1,600 a week, had fallen to $370. Not enough to cover repayments.”
Forgive my misty eyes.
“Purchased for $750,000 in 2012, when the market was near its peak, the property was now worth $300,000 and falling. The rental return, which had been $1,600 a week, had fallen to $370. Not enough to cover repayments.”
Can’t wait for this to happen to New Age California landlords…
When do you expect the crash?
‘Mount Whaleback iron ore mine about 1,186km northeast of Perth, dropped 82% from a median house price of $850,000 in 2012 to $153,000 in 2016.’
$850K for a house in middle of freaking nowhere,and I mean nowhere. It’s in the middle of the Outback. We have nothing comparably isolated to that in the lower 48. $150K is still way too much.
I guess you haven’t traveled much in the Desert Southwest?
I live in the Southwest. While it is indeed a desert for the most part, it isn’t unpopulated like the Australian outback.
Now, if there were no cities between Denver and San Francisco, then we would have a comparable situation, but it’s not like that. The Southwest is chock full of cities BIGGER than Perth.
We have nothing comparably isolated to that in the lower 48.
Jeffrey City, Wyoming? Was going to be a big uranium mine. Then it wasn’t any more.
Is it 1200 kms from the nearest big city? It’s 280 kms from Cheyenne (the state capital) and about 500 km from Salt Lake and Denver.
Not even close to being as remote.
Go here for an example of how far down real estate prices can drop when a mining town goes bust …
https://www.google.com/search?q=bodie+california&source=lnms&tbm=isch&sa=X&sqi=2&ved=0ahUKEwixk6Pe__HTAhUV5WMKHeUWBAkQ_AUIBygC&biw=1360&bih=651
Ben’s example suggests that the crash is in the bag but the MSM are very slow to connect the dots.
To whom it may concern
Happy Mothers Day
2 minutes late
https://www.youtube.com/watch?v=Eq3YLhtuzTQ
I need advice.
After sitting out the housing bubble for the past 14yrs, I almost cracked last week; I had this sense that maybe I should just give in to the insanity and join it. You know, that feeling of “it’s only money and we need to live our lives”—not that you can’t live a great life in a rental, of course. And I do know on some level that I would thus be the greatest fool if I buy now at the peak of the echo-bubble.
The other option is to rent a larger place; my family is growing (yes, a new leaf is hopefully on its way to joining the family tree, assuming all goes well—still really too early to be sharing that), which is causing some nesting for both my wife and myself.
We looked at a beautiful house on Sat; the LL sounded like she might be planning to sell in a year or so, but might also be willing to negotiation a longer-term lease and delay selling.
Things I’m concerned or wondering about:
Is a lease enforceable if a LL sells the property? My impression is yes (that it attaches to the property), but I’ve never been in that situation, and don’t know the in and outs of the law. Does anyone know for sure?
How long will it be before sanity returns? I was thinking of asking for a 3yr lease; moving any sooner than that sounds extraordinarily painful. The slowdown in high-end apartment projects and some indications of pullback in financing suggest that we might not be so far from things correcting. Any guesses on whether the market be just starting to decline in 3yrs, or whether it will happen sooner? I know, timing is the hardest part to predict…
“After sitting out the housing bubble for the past 14yrs, I almost cracked last week; I had this sense that maybe I should just give in to the insanity and join it.”
Yes, this definitely is what you should do, you should first recognize the insanity and then you should choose to join it.
“I need advice.”
What you need is to find some nice quiet place to lay down for a while.
Mr. Banker not good news:
http://www.msn.com/en-us/money/markets/the-worst-news-for-the-economy-might-be-coming-from-banks-not-retail/ar-BBBarqG?li=BBnbfcN
To be an FB, or not to be an FB, that is the question.
(Apologies to W. Shakespeare)
At least you did not start out with first kill the lawyers
While HFT algos have been able to keep these ultra-low volume “markets” levitated, the hard data indicating a rapid slowdown of the REAL economy, as opposed to the rigged, Fed-juiced Wall Street casino, keeps piling up.
If you want to buy into the biggest asset bubble ever blown by the Keynesian fraudsters at the Fed, be my guest. Don’t just boo-hoo about being a victim when it all comes crashing down.
http://www.zerohedge.com/news/2017-05-15/soft-dats-slumps-empire-fed-plunges-contraction-new-orders-collapse
dude, if having a baby
MAKE NO PLANS !
stay rental for now
First off, congrats Prime!
I feel your struggle - we went through the same thing year ago and are going through it now. Our lease is up in less than a year now and really we’re sick of dealing with landlord/owners who don’t maintain their property and are a pain to deal with.
My sense is the Seattle area is lagging the rest of the country, again. Still tight inventory, still lots of foreign buyers, and robust job growth in the area.
The downside to such a long lease term is rents are high around here too, and you’re locking in that rate. Of course the upside is you don’t have to worry about the LL not renewing, or selling, etc.
Of course you know all this
Personally, I’m going to keep sticking it out and renting a house here. Going to extend my lease another year and see how things look then.
What’s the deal with your current place? Can you renew?
Thanks, drummin!
Agreed that Seattle appears to be lagging.
Regarding the downside of a long-term lease: yes, I would be committing to paying a high rate, but at least I can compute my losses up-front, rather than discovering them years later. And I was wondering if it was time to splurge a bit, and let the wife enjoy a beautiful house in order to help her put off the buying/nesting urge.
The deal with our current place? Still great, just shrinking as we add to the household, and anticipating it feeling smaller again around the end of the year. With the first addition (16-mo old now!), it started to feel small when my mother was visiting. So I was hoping to find a place that could accommodate extended visits, due to some health challenges. Not sure if that is in the cards, though.
I just participated in a rental bidding war. Never again! Think I’m likely to step out of the application process, though, since the LL has already stated a desire to sell, and seems to be drawing the line at a 2yr lease. I don’t want to move twice in two years.
I just participated in a rental bidding war. Never again!
Hah! I think I told the story here of my encounter with that same thing a little over a year ago. Folks offering “over asking” for rent :/
This world is crazy.
Prime, I forgot where do you live?
LOLOLOL
Prime, old friend.
This urge you have is not rational. Pure emotion.
We had our four kids in a 1200 ft farmhouse for quite a few years. You don’t need more rooms really for another kid until they are teenagers. Then you need the space to get away from them. The kids themselves actually do not need spacious accommodations.
Emotions are expensive and your timing is awful. You need a time frame on when it’s OK to blow a fortune (your future)? Really?
Try some math. Approximately how much money do you currently save per year? Divide $500,000 by that. Is a fancy nursery worth that many years of your working life? Your potential new leaf will not even remember the nursery, but you can tell him/her in 15 years why you are broke.
Thanks much for the sage words, Blue! Just what I needed to hear.
I did use the example of how many additional years my wife would have to work to save back the $500K we likely would lose—I think she found that persuasive for the moment at least.
Is a lease enforceable if a LL sells the property? My impression is yes (that it attaches to the property), but I’ve never been in that situation, and don’t know the in and outs of the law. Does anyone know for sure?
Any lawyers or landlords who can help with clarity on this point? Thanks!
Cannot know for sure since I do not know where you live and do not know if there might be some odd law on the books. However, the normal answer is yes the person taking the property would take subject to the lease since a lease gives someone both a contractual right and an interest in the property.
PS It is possible in some jurisdictions to put a clause in the lease which would terminate the lease upon a sale. I would make sure that is not in your lease.
Location is Seattle, WA.
Thanks much for the information, ABQ!
We may not be at a peak, but we are certainly not at a trough.
IMHO, pay for 30 minutes of an attorney’s time to make sure you understand your rights under whatever lease your LL is offering, and sign the longest lease that they will allow.
My wife and I were in a similar situation (growing family, desire to upgrade digs, etc.)…and for years we felt like we were missing the boat. And being in the RE industry, we frequently had people ask us why we didn’t buy. There was one person that I knew who saw housing the same as me…consumption. And that kept me sane.
So we rented, and rented, and rented.
And after a while, my first statement was reversed. We felt that we may not have been at a trough, but we certainly weren’t at a peak. In that environment, we bought…and while renting, had saved enough money to buy a house that will last us 20+ years.
Patience…
“Then came the kicker: the massive mining projects …”
“Projects” … projects have a beginning and they have an end. Keep this in mind …
“… whose construction had fuelled the biggest economic boom WA had ever seen were now completed and required considerably fewer employees.”
“… were now completed”. The projects were now completed.
Moving on …
” Property prices in the Pilbara’s two largest towns, Karratha and Port Hedland, have fallen 65% in the past five years. Newman, an inland town supported by BHP’s Mount Whaleback iron ore mine about 1,186km northeast of Perth, dropped 82% from a median house price of $850,000 in 2012 to $153,000 in 2016.”
What a surprise, eh?
An entire planet populated by millions of dummys.
Yeah, the “completed” struck me too. Buy a 30-year house where the work is going to dry up? Dumb. You lose your job at the end of the project and there’s no one to buy your house.
Scientists always end their papers with “more research is needed” for a reason. You want to pick a career where the work is never done.
“You want to pick a career where the work is never done.”
Like government mules and donkeys.
‘U.S. shale producers used the price spike that OPEC triggered earlier this year to lock-in revenues for 2017, 2018 and, in some cases, even 2019. With their financial future relatively secure, they started deploying rigs. Since the count of active rigs in the U.S. reached a low last, producers have added an average seven units per week, the strongest recovery in 30 years.’
‘The rig spree, coupled with efficiency gains, is yielding strong production growth. In the first quarter, EOG Resources Inc. and Pioneer Natural Resources Co., two of the largest U.S. shale producers, announced year-on-year output jumps of 18 and 19 percent respectively. Smaller companies, including DiamondBack Energy Inc., Parsley Energy Inc. and RSP Permian Inc., achieved 60 percent to 80 percent increases. A lot more is coming.’
“Our break-even oil price is $20 a barrel,” Frank Hopkins, Pioneer’s senior vice-president, told an industry conference in London this week. “Even in a $40 world, in a $50 world, we are making good returns.”
Until geology catches up to them, some hint today in the oil price action that people see it coming. We are burning through the acreage much faster now.
What happen in the Bakken play and the Eagle Ford play will soon hit the Permian, latest from Bakken despite twice the price as last year, oil production still heading down on daily basis
https://www.dmr.nd.gov/oilgas/directorscut/directorscut-2017-05-12.pdf
Our break-even oil price is $20 a barrel,”
Bahhhhhhhhhhhhhhhh
bs
Sounds like they want to borrow some money why don’t you loan it to them?
“Our break-even oil price is $20 a barrel,”
BS is right. Try $6/bbl.
Then buy their stock and loan them money Oscar.
That’s for degenerate gamblers to do.
How many times must you lose your ass before you learn?
I have done very well with my oil drillers, how many time must you sell your azz before you learn there are better ways to make money.
Boots on the ground data Mr. Crowman….. boots on the ground data.
Dewey Beach, DE Housing Prices Crater 9% YoY
https://www.zillow.com/dewey-beach-de/home-values/
I was not sure which way you were going on that Taxpayer. If you mean other than a few wells they would have made money with $20 it is bs, I agree. The OPEC deal extending the cutback for nine months was made due to one reason. The Russians, that probably know more about the costs to produce oil at EOG and PNR than the CEOs because they have access to everyone’s computer, believe that shale oil production will peak in nine months even with a price increase. I think the Russians are right.
It’s the setup for another massive Crow Trap.
I was not sure which way you were going on that Taxpayer. If you mean other than a few wells they would have made money with $20 it is bs, I agree.
Our shale oil producers must be crafty just like those Chinese you were telling us about.
Yes, he is claiming it breaks even at $20 but the company makes 5 cents a share the first quarter. This is with a stock trading close to $100 a share. Come on Oscar get your Wilde on and buy it.
You convinced me so I just made the call for 15,000gal of #2….. at $1.32 per. That price is 17% less than my last order.
Learn to love falling oil prices Mr. Crowman. Learn to love falling oil prices.
You convinced me so I just made the call for 15,000gal of #2….. at $1.32 per.
Holy Cow—seriously? Where are you located again? Prices are roughly twice that right now for retail delivery in Seattle… Of course, the tank in my (rental’s) yard only holds 300gal, so presumably you’re getting a large volume discount.
‘Before, prices were rising fast enough to cover extra taxes and you could still make money,’ Spencer West, who owns two London properties, said in an interview. ‘Now, they have stagnated and there’s no profit to be made with mortgage repayments, repairs and extra taxes coming out.’
Kind of like the US apartment market. No profit if prices aren’t going up.
Pretty much the investment model in everything globally. Credit expansion makes prices of everything that can be hoarded go up and sucks wealth from consumers to line the pockets of speculators.
Until it doesn’t.
Buy when everyone is selling, sell when every else is buying.
http://www.msn.com/en-us/money/realestate/real-estates-new-normal-homeowners-staying-put/ar-BBB72ZQ?li=BBnbfcN
After McDonalds perfects it in China, it will displace a lot of workers in those $15 an hour areas:
http://www.shanghaidaily.com/business/McDonalds-ambitious-on-digitalization/shdaily.shtml
I’m looking forward to it—it would likely provide much better customer service than I typically see at McD’s…
Are you using their app yet?
Didn’t even know they had an app!
https://wattsupwiththat.com/2017/05/14/two-competing-narratives-on-carbon-dioxide/
Flying car on the way:
http://www.shanghaidaily.com/business/auto/Toyota-aims-high-with-flying-car-project/shdaily.shtml