February 27, 2018

A Blueprint For Phasing Out The GSE’s

A report from the Washington Examiner. “Conservatives who are pushing for the elimination of Fannie Mae and Freddie Mac on Monday gave President Trump a blueprint for phasing out the government-sponsored enterprises by himself. Analysts with the American Enterprise Institute and other right-of-center think tanks began rolling out a guide for how the Trump administration could ‘eliminate’ Fannie and Freddie over the course of several years without any action from Congress. AEI also plans a conference Tuesday morning to discuss the paper, which could influence GOP lawmakers.”

“The plan is tailored for enactment by a Trump appointee to the Federal Housing Finance Agency, the government entity responsible for overseeing Fannie and Freddie.”

“The agency is currently headed by Mel Watt, an Obama appointee whose term extends to the end of the year. But a Trump replacement, the conservative authors argue in a 113-page paper, could wind down Fannie and Freddie by gradually lowering the size limits for the loans that the two entities are allowed to purchase and repackage into mortgage-backed securities, while at the same time preventing them from buying certain kinds of loans.”

“‘We believe that the election of Donald Trump has made it possible to break this logjam,’ they wrote, referring to the government-sponsored enterprises’ nearly decadelong stay in government custody.”

“Some of the new paper’s conservative authors, including AEI’s Peter Wallison and Ed Pinto, have argued for years that the government-sponsored enterprises and affordable housing mandates helped cause the financial crisis by inflating the housing bubble and helping cause the proliferation of risky mortgages.”

“The paper released Tuesday will lay out the case that government guarantees for mortgage-backed securities and affordable housing mandates haven’t helped first-time homebuyers afford housing in the past, based on homeownership rates. It will also note that just a tiny slice of Fannie and Freddie’s activities — about 1 in 10 of its loan dollars — benefit first-time homebuyers buying inexpensive houses.”

“Instead, the conservatives argue that paring back government subsidies for mortgage credit put downward pressure on house prices, bringing homeownership within the price range of more buyers. They’re betting that the private market will step up to meet demand for mortgage-backed securities as Fannie and Freddie back out.”

“To that end, they wrote, Trump’s appointee for FHFA director should reduce the limits on home loans eligible for GSE backing in high-cost areas on his or her first day in office, which could be as early as Jan. 1, 2019. For 2018, that limit is set at $679,650. The next year, the director should stop purchasing investor loans and loans for vacation homes. In 2021, he or she should cease doing cash-out refinances. The next step, in future years, would be to lower the regular limit on home loans. For 2018, the limit is $453,100.”

“The authors recommended lowering Federal Housing Administration limits at the same time, to avoid having the FHA pick up business dropped by Fannie and Freddie. Trump administration officials have expressed support for a bipartisan legislative effort to overhaul the housing finance system. But Treasury Secretary Steven Mnuchin has also said that the administration would have options for overhauling Fannie and Freddie.”

The live-stream can be found here.




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180 Comments »

Comment by Ben Jones
2018-02-27 07:48:09

Note that the GSE’s are backing almost all the multi-family loans.

Comment by Ben Jones
2018-02-27 10:30:25

Here’s the video link to the presentation:

Eliminating Fannie Mae and Freddie Mac without legislation

https://www.youtube.com/watch?v=i625_QSnLO8

Comment by Ben Jones
2018-02-27 17:04:39

I’m going through the entire presentation now that I have more time. I highly recommend Mr Pinto’s segment starting around 16:00 through 32:00.

Comment by BlackSwandive
2018-02-27 21:30:07

That was a great portion. Mr. Pinto knocked it out of the park. Not only did he eviscerate the GSEs, he also exposed the entire REIC and their lobby for what they are. It’s almost criminal what’s going on. In fact, it probably is behind closed doors.

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Comment by taxpayer
2018-02-27 08:15:13

hillarious- gov is going to triple down on housing
and soon !

Comment by Ben Jones
2018-02-27 08:18:07

I don’t see how when Mel Watt has already soaked up most of the market. Why are we backing refi’s, vacation shacks and jumbo loans? Not to mention Jingles gambling.

Comment by Jingle Male
2018-02-28 06:43:32

Good point Ben. Fannie limits investor loans to 4 each. They don’t seem to care if I have 4 and the wife has 4, so we had 8 loans between the two of us for years.

I do object to the term “gambling”. Our FICO’s have always been over 800, we put 25% down, the properties all have positive cash flow, and we’ve paid over $750,000 in interest to the lenders.

We took vacant houses and put them back in service for residents needing housing at a time when no one else could or would. We could have gotten loans without Fannie or Freddie and we refinanced 4 properties a couple of years ago with a credit union for better rates than the GSAs offered.

I do find it interesting when some conservative blames to the Housing Bubble on the GSA’s ! EVERY house I purchased in the downturn had a Wall Street sub-prime 80/20 loan on it. I lost out on the few GSA foreclosures because they had a priority policy to sell to owner occupants.

I agree Fannie and Freddie need some reform, but if they are eliminated who is going take their place? Wall Street & Wells Fargo? Fox, care to enter the house full of chickens?

Comment by Mafia Blocks
2018-02-28 07:22:42

degenerate.gambler.

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Comment by BlueSkye
2018-02-28 08:20:25

who is going take their place…

Speculators like you might have to use their own money.

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Comment by Professor 🐻
2018-02-28 08:33:30

But with lower prices, both speculators and end user buyers would benefit due to improved affordability.

 
Comment by Jingle Male
2018-03-01 05:58:10

If you cannot obtain financing, or your financing costs double, you have no “affordability” benefit.

It’s like praying for a recession so housing prices drop…..but then you have no job so you cannot buy a house!

 
 
 
 
 
Comment by rms
2018-02-27 08:17:28

After years of budget cuts and “doing more with less” pronouncements Feb 2nd was my last day of work. Yesterday I got a call to stop by the office, and so off I go this morning. Maybe they decided to give me an engraved Zippo lighter after all?

Comment by taxpayer
2018-02-27 09:47:19

best wishes- at least u r a saver, but that’s profiling

 
Comment by BlueSkye
2018-02-27 09:59:05

Best of fortune to you going forward.

Dec 31st was my last day after three years of them reminding me I was approaching 65 and should be making other plans. January 14th they started calling for HELP. They should have been planning too.

It’s good to be a saver.

Comment by oxide
2018-02-27 11:00:39

Looks like you gave them the fanger. Good for you.

Comment by BlueSkye
2018-02-27 17:44:22

I’m lucky. Some of my peers have faced the “right age resizing” without and middle fanger money and a lifestyle based on their former salary. It’s not pretty.

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Comment by BlackSwandive
2018-02-27 17:50:14

How much are your property taxes per year?

 
Comment by BlueSkye
2018-02-27 18:07:53

$1100. I’ll get a reduction in 2018 due to age + income.

I LOVE NY!

 
Comment by BlackSwandive
2018-02-27 19:39:45

That’s not bad at all. I thought NY had brutally high taxes.

 
Comment by BlueSkye
2018-02-27 20:05:43

Sure, if you are a shooting star you will pay. I bought a modest house in a poor county that needed complete renovation. I did all the important work inside and did not update the exterior.

 
 
 
 
Comment by Professor 🐻
2018-02-27 10:24:21

Sorry about your job loss. I am surprised when anyone suffers such a fate, given how awesome we are constantly assured the economy is. Hopefully your next opportunity will be an improvement.

Comment by Montanagal
2018-02-27 19:17:08

When I lost my job it was the happiest day I first my life.

I was prepared.

Comment by Professor 🐻
2018-02-27 19:46:24

I once lost a job under similar circumstances. It took a while to replace the income stream, but the development probably saved my life and greatly slowed down my aging process.

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Comment by Mafia Blocks
2018-02-27 10:44:02

HMI/SCADA goons are earning $120k+ and they’re in demand. Better yet hang your own P&ID shingle. The power of CRATER is with you.

Comment by rms
2018-02-28 07:27:09

“Better yet hang your own P&ID shingle.”

Too many barriers (liability) in my skill set. I really need to clear my head before proceeding forward… can’t see the forest because the trees are in the way. Debt free, and I can live on savings for a couple of months. I need some sunshine too… winter cabin fever.

 
 
Comment by Jessica
2018-02-27 17:22:33

Best of luck to you - you’ll be fine.

 
Comment by rms
2018-02-28 07:21:31

I exited because I was upset with their changes to “standby” duty, which is no longer compensated. WTF?… we’re giving up weekends, i.e., no leaving home to have fun doing other things like having a life. I’m not sure this is legal. I feel sorry for my younger colleagues.

My replacement they were counting on didn’t make it past security clearance review. Hehe… probably debt issues. Less than 10% make it through the pipeline these days, I’m told.

 
 
Comment by Ben Jones
2018-02-27 08:21:17

‘Trump’s appointee for FHFA director should reduce the limits on home loans eligible for GSE backing in high-cost areas on his or her first day in office, which could be as early as Jan. 1, 2019. For 2018, that limit is set at $679,650. The next year, the director should stop purchasing investor loans and loans for vacation homes. In 2021, he or she should cease doing cash-out refinances. The next step, in future years, would be to lower the regular limit on home loans. For 2018, the limit is $453,100′

We’d find out just how “red hot” these coastal markets are.

Comment by BlueSkye
2018-02-27 10:00:33

Why do I get the feeling the backstops will be pressed before 2021 comes around?

 
 
Comment by Mortgage Watch
2018-02-27 08:22:40

Leesburg, VA Housing Prices Crater 7% YOY As DC Area Meets Housing Correction

https://www.movoto.com/leesburg-va/market-trends/

Comment by Jessica
2018-02-27 16:49:31

Have been watching some townhomes in a “hot” area of Loudoun County. Prices reached 420-430k for townhomes 20+ yrs old last year.

So a couple in the area just came on the market and were asking 444-445k. A couple were just reduced to 424 and still they sit.

 
 
Comment by Professor 🐻
2018-02-27 08:31:51

“Some of the new paper’s conservative authors, including AEI’s Peter Wallison and Ed Pinto, have argued for years that the government-sponsored enterprises and affordable housing mandates helped cause the financial crisis by inflating the housing bubble and helping cause the proliferation of risky mortgages.”

The GSEs were supposed to make housing more affordable. Instead they have worked tirelessly behind the scenes to price American families out of the market. I can’t wait to see them wound down.

Comment by BlackSwandive
2018-02-27 16:09:48

This is why we need to shrink the government. Anything they touch, even if there were good intentions (I have my doubts), turns to crap. What they have done is shameful in the case of housing.

Comment by Professor 🐻
2018-02-27 18:48:43

Do you ignore those tornado sirens that occasionally go off in the Midwest?

Comment by BlackSwandive
2018-02-27 21:42:04

This went over my head.

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Comment by Professor 🐻
2018-02-28 07:39:48

Well I guess you either don’t live in Tornado Alley or you don’t know where tornado warnings come from.

 
Comment by BlackSwandive
2018-02-28 12:53:31

No, I’ve never been to tornado alley, but when I said “shrink the government” I didn’t mean get rid of entirely. And my statement “anything they touch turns to crap” had a tinge of hyperbole. I know they’ve done some things right, as may be the case with tornado sirens, but again I know nothing of them.

 
Comment by Professor 🐻
2018-03-01 01:02:54

Unfortunately things the government gets right, like the tornado warning system, tend to get roundly ignored.

 
 
 
 
Comment by Jingle Male
2018-02-28 06:58:46

“….I can’t wait to see them wound down….”

Be careful. With who are you going replace them? The HBB Banker? HA! That will be deserving.

Comment by Professor 🐻
2018-02-28 07:42:57

The free market would probably work best, though the unwind for people who gambled on real estate appreciation without limits would admittedly be painful.

 
 
 
Comment by OneAgainstMany
2018-02-27 08:39:59

If any of these measures came to fruition they would have an enormous impact on the price of houses nationwide. Here’s to hoping that something like this can be implemented.

“It will also note that just a tiny slice of Fannie and Freddie’s activities — about 1 in 10 of its loan dollars — benefit first-time homebuyers buying inexpensive houses.”

If there is any societal justification for Fannie and Freddie it would be to help those at the lower end afford housing. The fact that the bulk of their activities doesn’t do this (on the contrary, it probably makes houses more unaffordable for all by extending easy credit) further evidence that their existence is counterproductive to their mission. We should get rid of them.

Comment by Professor 🐻
2018-02-27 09:37:24

“If any of these measures came to fruition they would have an enormous impact on the price of houses nationwide.”

The lack of any such measures certainly had an enormous stimulative effect on making prices go up.

 
Comment by MGSpiffy
2018-02-27 12:45:49

“Societal justification for Fannie and Freddie”

Whenever any new government program is created, no matter how pure the motives, it’s going to pushed, probed and (lobbyist) modified by those seeking to profit from it.

 
 
Comment by Ben Jones
2018-02-27 08:54:19

Q&A now talking about the failings of Dodd Frank.

“What legal things are standing in the way?”

Short answer: Mel Watt wearing two hats, expanding the GSE footprint.

 
Comment by Ben Jones
2018-02-27 08:56:45

“People who favor affordable housing want to make mortgages cheaper.”

Mentions UHS do too.

 
Comment by Apartment 401
2018-02-27 09:02:44

Realtors are liars.

Comment by Mafia Blocks
2018-02-27 09:19:11

…. and every closing a crime scene.

 
 
Comment by Ben Jones
2018-02-27 09:05:52

“The best way to prevent bad times is to prevent extraordinarily good times.”

“Banks need to have an incentive to make loans and competing with the GSE’s is not an incentive.”

Comment by In Colorado
2018-02-27 10:37:51

“The best way to prevent bad times is to prevent extraordinarily good times.”

That cow got out of the barn a long time ago.

Comment by Ben Jones
2018-02-27 10:42:12

That was in response to a question about how their plan addresses “counter-cyclical” downturns. One of the things they said was the above, in addition to saying FHA was there for that but had instead pushed prices higher during the current boom. And they said that the central bank and congress will probably jump in if shack prices fall.

Trying to get something done in light of the current situation is tricky. But they also pointed out no one thought the mortgage deduction could be touched and it was.

One funny moment was when talking about getting the private sector and private equity more involved and someone questioned whether banks were really in the private sector.

Comment by In Colorado
2018-02-27 11:45:38

Agreed, but the cap only affect those who live in super expenssive locales, and existing loans were grandfathered, IIRC. Still, it is encouraging that something happened. Though I wonder how firm the convictions will be if rising interest rates start a meltdown. We all know where super low rates will eventually take us, but from the PTB’s perspective, that will be someone else’s problem.

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Comment by Mortgage Watch
2018-02-27 12:11:10

“Agreed, but the cap only affect those who live in super expenssive locales”

… Which is why housing demand has collapsed in areas where prices massively overpriced. The cap effects prices, not people. And it is the MID in part that makes prices unaffordable, not the other way around.

 
 
Comment by BlackSwandive
2018-02-27 14:16:10

“And they said that the central bank and congress will probably jump in if shack prices fall.”

Exactly. So how is it we ever get out of this policy of hyperinflating house prices?

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Comment by Carl Morris
2018-02-27 17:37:47

So how is it we ever get out of this policy of hyperinflating house prices?

Massive unstoppable collapse that results in deaths among TPTB. Anything less and they’d prefer to kick the can and buy the dips.

 
Comment by BlackSwandive
2018-02-27 18:02:03

Why can’t the FED just step in and make all of them whole with the stroke of a pen? Give them full inflated value for every asset they own?

 
Comment by Professor 🐻
2018-02-27 18:52:24

“Give them full inflated value for every asset they own?”

Didn’t we just witness this? Home prices in my hood exceed the frothy levels attained just before the 2007-2009 financial collapse, despite (reportedly) very low inflation since 2009.

 
 
 
 
Comment by Jingle Male
2018-02-28 07:03:50

Banks cannot compete with GSEs? Yet you want to eliminate GSEs?

Comment by Professor 🐻
2018-02-28 07:46:20

What that means is “banks cannot compete with the GSEs, given their anti-competitive duopoly market power plus a too-big-to-fail backstop from the Fed.”

Comment by Jingle Male
2018-03-01 06:04:01

That’s not what it means, but that’s OK. You just keep paying rent and complaining about the process.

Others will understand the process and work to enjoy the many benefits of owning there own home.

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Comment by taxpayer
2018-02-27 09:57:16

1,when does the recession start ?
2. do we ever get to the 4th rate increase?

I’m thinking the 3rd increase and the start is the same moment

Comment by alphonso bedoya
2018-02-27 13:03:37

1. Now, with revisions later showing you that to be the case.
2. No. Absolutely not.

 
 
Comment by Rental Watch
2018-02-27 10:11:17

Getting rid of the GSEs isn’t complicated.

Increase the required down payment for any loan backed by the US government by 0.25% per quarter.

Over time, the GSEs simply become less and less competitive vs. private markets, and private markets grow to fill the void over time. The change is slow enough that it wouldn’t change the market overnight…but each quarter that goes by, GSE loans become just a bit safer and a bit more expensive for borrowers.

There, I didn’t need 100+ pages to solve it.

Comment by Rental Watch
2018-02-27 10:20:34

BTW, I think that lowering the loan limits is the wrong way around. They should be increasing the down payments.

What good is a lower loan limit (in terms of the loan being risky) if it’s still 3% down?

If you increase the minimum by 1% per year (0.25% per quarter), in 5 years, the minimum down payment would be 8% for a GSE loan.

Comment by Professor 🐻
2018-02-27 10:31:03

“I think that lowering the loan limits is the wrong way around. They should be increasing the down payments.”

Both and. Two instruments are better than one in this case.

 
Comment by oxide
2018-02-27 19:03:37

No, I’d rather lower the loan limits. Then your Fannie-backed buyers are more likely to be middle-class or low income who really need the gov help. Not million-dollar buyers — or developers of entire buildings. TBH I don’t see much of a problem with low money down, since people can make a PITI almost as easily as rent payment.

(the real issue with the house bubble was the combination for zero-down and I/O neg-ams. A $50K family could live it up in a house meant for a $150K family. But if the mortgage is full PITI fixed rate, that $50 family will get kicked out pretty fast.)

Comment by OneAgainstMany
2018-02-27 19:07:22

And while we’re talking about limits, the loan limit should be something like X multiples of median household income. So if median household income is $55k, then maybe cap the limit at 3-4x median income.

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Comment by Mafia Blocks
2018-02-27 20:44:34

Considering long term price trend is 2x household income, 4x income is just more DebtDonkeyMath.

 
 
Comment by Professor 🐻
2018-02-27 20:06:14

“TBH I don’t see much of a problem with low money down, since people can make a PITI almost as easily as rent payment.”

Those who use this form of subprime lending can stretch their home purchase budgets way beyond what precautious down payment requirements would enable. This tempts them to purchase more expensive homes than they would qualify for under prudent underwriting standards. Consequently, the downpayment assistance buyers are able to compete with more creditworthy buyers who make less risky purchases with higher downpayments and lower debt payments as a share of income. The fake demand at higher price points from the low downpayment loan set drives up prices to levels which will inflict pain on new buyers when prices eventually correct and they stop making payments. And for good measure, the GSEs push up the confirming loan caps to make sure these high risk loans can get a taxpayer-funded guarantee.

So I disagree with you that low downpayment loans are benign.

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Comment by oxide
2018-02-28 06:46:32

I don’t agree. Your assertion is correct if underwriting standards are as lax as they have been.

But what if banks based their underwriting on the total howmuchamonth: PITI + fees? They would no longer automatically back them up.

For a $300K house, the PITI for 20% down is about $1140. The PITI for 0% down is something like $1450+/month if you include the payments on extra principle, PMI, and higher interest on the piggyback. Stronger underwriting standards would look very askance at that extra $300/month and might reject the 0% mortgage based on it. Zero-downers wouldn’t have the advantage you describe.

 
Comment by oxide
2018-02-28 07:20:22

“They would no longer automatically back them up.”

Sorry…meant to say: *They would have to be strict since — under the AEI plan — Fannie would no longer back them up.

 
 
 
 
Comment by Professor 🐻
2018-02-27 10:29:20

You should send your proposal to your local Congress critter and see whether it gains traction. I agree that gradual suffocation is preferred to violent execution as a way to get rid of the GSEs.

Comment by Rental Watch
2018-02-27 12:25:14

I’m too much of a cynic to believe it would ever work.

My plan relies on no one tinkering over long periods of time. My sense is that it would take at least 10 years (and probably 20) to kill the GSEs by my method.

The first time there is a downturn (which would happen before the GSEs are gone), there would be enormous pressure to reduce the down payment requirements to “help” the economy.

I suppose I’d propose that the down payment requirements go DOWN by 0.25% any quarter where there was not positive GDP growth over the prior three quarters. That would be in exchange for requiring a super-majority vote to change my down payment idea.

Comment by Ben Jones
2018-02-27 20:18:52

You guys should really watch the video. I’m going to ask for a transcript and do a drill down post later. There are so many moving parts it’s incredible what proof there is that this is a fubar situation.

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Comment by Rental Watch
2018-02-28 10:10:47

I did watch the part that you noted specifically…good stuff.

The question in my mind isn’t whether the world would continue to spin without the GSEs (it will), it’s how you can get them on a one-way path to elimination. It’s why I favor something simple and irreversible. A multi-step process will be fraught with political peril at every step. The GSEs have a powerful lobby in their pocket. And yes, I understand that much can be done without legislation…HOWEVER, these organizations are run by political appointees, which makes the politics of it all very important.

 
 
 
 
 
Comment by BlackSwandive
2018-02-27 10:18:37

All the ugly ducklings sell when there’s a massive speculative housing bubble funded by borrowed cash:

https://www.windermere.com/listing/43729262?overlay=true&xdm_e=https%3A%2F%2Fwww.windermere.com%2Fsearch&xdm_c=default2401&xdm_p=4

 
Comment by Mr. Banker
2018-02-27 10:29:50

Why am I the only person on this blog who does not hate children?

If Fanny and Freddie are not there to support higher home prices then home prices will fall and equity will be destroyed and consumer spending will dry up and the number of unemployed will increase and children will be cast out into the cold and they just may possibly starve.

Heartless bastards, every one of you.

Comment by Professor 🐻
2018-02-27 10:36:05

I completely forgot how many children owe their very existence to Fannie Mae and Freddie Mac.

Comment by In Colorado
2018-02-27 10:40:50

Seems to me that the bigger your mortgage, the less likely you are to have kids, and if you do, you will have fewer of them.

IIRC, about half of all kids are now born to unwed mothers. I doubt they have mortgages, though many receive Section 8 vouchers.

 
 
Comment by BlueSkye
2018-02-27 10:38:08

“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.”

Andrew Jackson

Comment by Carl Morris
2018-02-27 11:21:34

And they say he was a horrible president. I keep hoping that Trump hits a breaking point and turns on the bankers too.

Comment by oxide
2018-02-27 19:05:39

I doubt it. After Trump leaves the Presidency, he will need those bankers to finance his next venture. Actually the Trump sonz are probably relying on those banks now to finance their adventure in India.

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Comment by Carl Morris
2018-02-27 10:33:09

I was heartened to see the news later yesterday about sales being down all over due to higher interest rates. Perhaps the feeding frenzy I saw in Folsom over the weekend was a last gasp of people trying to get in the spring before rates go up more? Hope springs eternal.

Comment by BlackSwandive
2018-02-27 11:14:02

“Feeding frenzy.”

Your indoctrination is almost complete, Carl. All you need is the certificate.

Comment by Carl Morris
2018-02-27 12:07:33

Hahah :-). Who am I going to believe, you? Or my lying eyes?

 
 
Comment by MGSpiffy
2018-02-27 13:01:06

I think the real tell will be in a month or more, when the spring buying season is supposed to begin in earnest, and we can see how it compares to the last few years.

Interest rates will be an issue in places like here (Seattle metro) where lot of people will be seeking non-conforming/jumbo mortgages due to the average prices.

It’ll start at the edges of the flock of buyers - people dropping out one as affordability and risk worsens. Will it be enough to get noticed? Stay tuned…

Comment by Rental Watch
2018-02-27 13:53:36

January 2017 had 45k sales nationwide
January 2018 had 44k sales nationwide

Not much of a dropoff…yet.

 
 
 
Comment by Mortgage Watch
2018-02-27 10:38:09

Portland, OR 97232 Housing Prices Plummet 22% YOY As West Coast Housing Markets Crater

https://www.zillow.com/portland-or-97232/home-values/

*Select price from dropdown menu on first chart

 
Comment by oxide
2018-02-27 10:48:29

Would the private banks really be in favor of this? Without Fannie and Freddie to buy their mortgages, they would have to eat their own defaults. Even worse, their profits would trickle in over 7-10 years instead of in one easy sale up the food chain (plus juicy fee of course). Banks would have to go back to their old-school business model.

Comment by Mafia Blocks
2018-02-27 10:50:43

They’ll survive Donk…… They’ll survive.

Comment by Ben Jones
2018-02-27 10:58:05

Most shack loans are made by non-banks. Probably the elephant in the ointment is fall out from a future crash. What will the appetite be for saving these entities in that environment? And the former business model didn’t really include 30 year mortgages, which is what kicked this whole mess off in the first place IMO.

Comment by BlackSwandive
2018-02-27 11:15:53

Just look at auto prices after the advent of 8 year auto loans.

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Comment by Puggs
2018-02-27 14:32:54

The longest term I’ve ever done years ago was 4. And that felt like an eternity.

Pay cash and save yerself the monthly pain.

 
Comment by In Colorado
2018-02-27 15:14:06

Just look at auto prices after the advent of 8 year auto loans.

How else can pukes buy 40-50K pickup trucks?

 
Comment by Mortgage Watch
2018-02-27 15:19:08

HELOC’s. The same way everyone is making their mortgage payments.

 
Comment by In Colorado
2018-02-27 17:53:40

But if home prices are cratering, then they shouldn’t have any equity.

 
Comment by Mortgage Watch
2018-02-27 17:58:27

No appraisal HELOC’s/no appraisal cash-out refis. They’re ubiquitous.

 
Comment by In Colorado
2018-02-27 23:09:33

Then why did the HELOC spigot get shut off 10 years ago. FWIW, the last time I refi’d, I had to get an appraisal.

 
Comment by Mortgage Watch
2018-02-28 05:22:46

They didn’t. They were simply displaced with no appraisal cash out refinance.

 
Comment by oxide
2018-02-28 06:35:08

I had to get an appraisal just to remove my PMI. And the guy walked all around and inside the house, not just a drive by.

 
 
Comment by MacBeth
2018-02-27 17:21:05

“What will the appetite be for saving these entities in that environment?”

Indeed. What will the PUBLIC appetite be? Saving the banks and the well connected again at the expense of the public is not likely to go over well.

Part of the reason Trump was elected…to stop all of this.

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Comment by Professor 🐻
2018-02-27 11:09:58

There’s no reason on Earth banks won’t be able to insure against defaults. Before the GSE-inspired drunkfest we currently enjoy, part of the business of mortgage lending involved underwriting standards which either entailed higher interest rates, smaller loans or no loans to people who were bad credit risks. There was also an industry known as Private Mortgage Insurance which lenders could use as a way to protect themselves, before the Fed assumed full control of the mortgage insurance business.

Comment by Mr. Banker
2018-02-27 11:27:57

“There was also an industry known as Private Mortgage Insurance which lenders could use as a way to protect themselves, before the Fed assumed full control of the mortgage insurance business.”

If pukes need to buy Private Mortgage Insurance then this means there will be less money left over for house payments which will affect housing prices and the number of home purchasing transactions (and hence the amount of banker’s fees) and thus will stiffle the magic of wealth creation - a TERRIBLE thing (especially the bankers fees part).

It’s best to eliminate the need for PMI so as to keep the game going on as long as possible.

 
 
 
Comment by BlackSwandive
2018-02-27 11:18:10

I wonder how the NAR feels about this article? Bwahahahahaha!!!

Comment by ironknee
2018-02-27 15:35:45

NAR is an anagram for . . . NRA! Oh noez, we must boycott!

Waiting to see some CEO with stones boycott the FBI’s business. They along with the local yokels screwed up bigly. Of course, screwing up is the FBI’s prime directive, as evidenced by

JFK
9/11
San Bernadino
Florida nightclub
Las Vegas
etc, etc.

Comment by Mafia Blocks
2018-02-27 16:02:18

Housing my good friend.

Pepperell, MA Housing Prices Crater 23% YOY

https://www.movoto.com/pepperell-ma/market-trends/

 
 
 
Comment by Professor 🐻
2018-02-27 11:20:09

Praise the Lord for allowing a cellphone battery to die, preventing the realtard sitting across the aisle from me on the train from making any more loud phone calls. On her last call, she was commenting on someone who made the wise decision to buy a house, instead of continuing to risk money in stocks. I was tempted to ask her if she thought higher interest rates would lead to lower home prices, but bit my tongue.

Comment by Mr. Banker
2018-02-27 11:35:21

I think it would be nice to be able to carry about with me a portable EMP generator of some sort.

Comment by Mr. Banker
Comment by Mr. Banker
2018-02-27 11:44:45

One of the comments from the link …

“Somewhere a while back I read an article on an area that was experiencing cellular outages at routine intervals, interfering with emergency communications. Finally turned out to be some old guy with a super powerful cell jammer in his car because he was tired of people driving while on their phones. Obviously I don’t care enough to find the article but I don’t think they jailed the old guy, just a firm chastising and seizure of the equipment.”

Great fun! 😁

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Comment by Professor 🐻
2018-02-27 12:29:36

Now I’m sitting in Peet’s Coffee Shop in Tustin, and at the next table over is one realtard LOUDLY training another in the art of scamming customers. I’m beginning to wonder if I am living my life in a bad movie.

Comment by Mr. Banker
2018-02-27 12:48:30

“… LOUDLY training another in the art of scamming customers.”

Sounds educational. If it were me I would give the conversation a close listen.

 
Comment by hwy50ina49dodge
2018-02-27 15:04:33

is that the Peets across from the Tustin Brewery Co.?

Comment by Professor 🐻
2018-02-27 19:43:12

Yes it is! I was relegated thereto whilst my daughter finalized her prenuptial divorce from her boyfriend a block away. (The best possible kind of divorce, actually!) My role was to provide hands-off fatherly support, and to only intervene if extreme circumstances warranted parental intervention.

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Comment by da bear
2018-02-27 17:52:01

I think they took down the “work where you must but live and shop in Tustin” sign. I was in SoCal last summer. Tony Roma’s was gone, too.

Looked like Tustin has seen better days…

da bear

Comment by hwy50ina49dodge
2018-02-27 20:32:13

All the hip$ters now dwell south of the 5, over bye the WWII blimb hangers, “Tu$tin Legacy” … Eye used to work @ Sperry Univac back in the 70′ s … Speaking of legacies …

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Comment by Mortgage Watch
2018-02-27 12:14:07

Superior, CO Housing Prices Crater 6% YOY As Builders Slash Prices Undercutting Resales

https://www.zillow.com/superior-co/home-values/

*Select price from dropdown menu on first chart

 
Comment by azdude
2018-02-27 12:17:23

how many of u r howmuchamonthers?

Comment by Anonymous
2018-02-27 13:57:08

Not me! :D

 
Comment by Puggs
2018-02-27 14:07:31

howmuchamonthcanistash ‘ovah here.

Comment by BlueSkye
2018-02-27 17:14:07

Exactly! I’m retired and still saving. I have no idea why.

 
 
 
Comment by Sam (SW)
2018-02-27 12:46:54

This is solid gold.

Comment by BlackSwandive
2018-02-27 13:02:19

Was a great show back in the day!

 
 
Comment by Mafia Blocks
2018-02-27 12:57:06

crushing.housing.losses.

 
Comment by alphonso bedoya
2018-02-27 13:18:45

Today marked the end of the DJIA retracement rally. The FED testimony will be the news excuse. (We put in a high today, but, not on a closing basis.)

The above should put a damper on housing.

Comment by Anonymous
2018-02-27 13:59:34

Yep, CNBC blaming it on the expected interest rate increase.

Comment by alphonso bedoya
2018-02-27 15:00:30

Understand that MMs will NOT jeopardize the anticipated fees attached to the Dropbox IPO either. I believe that’s in mid March.

 
 
 
Comment by Lurker
2018-02-27 14:49:03

Weekly Summary: HBB-Reported Purchase Price Declines
Posted every Tuesday. YTD list and key posted first Tuesday of the month.

Feb 21-27

> [-77.5% Phoenix / VAL TOW DEV LUX EST (Mar16-Feb18)]
> [-73% Vancouver / PCA SFR LUX (Nov17-Feb18)]
> -64% Phoenix / PCA TOW DEV LUX EST (17-Feb18)
> [-51.2% Saddle River, NJ - NYC sub / UPS SFR LUX (2008-Feb18)]
> [-49% Vancouver / PCA SFR LUX (Feb18)]
> -35.7% Phoenix / PCA TOW DEV LUX (16-Feb18)
> [-33% Vancouver / PCA SFR LUX (Feb18)]
> [-32% Manhattan - UES / PCS COP LUX (May17-Feb18)]
> [-29.3% Manhattan - One57 / UPF CND LUX (Feb18)]
> -29% London - Earls Court / ARV DEV CND LUX (2015-Feb18)
> -25% Manhattan - One57 / AVG SP CND LUX (2014P-Feb18)
> [-21.7% Manhattan - One57 / UPS CND LUX (2015-16)
> [-17% San Diego / PCS SFR LUX (Aug17-Feb18)]
> [-17% Manhattan - UES / PCS LUX (June17-Feb18)]
> -10% Manhattan / AVG PCS LUX (Feb18)
> -8% Manhattan / AVG PCS (Feb18)
> -2.3% Sydney - lower north shore / MED (yoy -Dec17)
> -2% Sydney - inner west / MED (yoy -Dec17)

Comment by Jingle Male
2018-02-28 07:35:13

What are you trying to show?

 
 
Comment by Puggs
2018-02-27 15:04:18

Anyone here work in the RV space? It’s one of the first places a downturn shows up.

Comment by Rental Watch
2018-02-27 16:10:11

https://www.cnbc.com/2018/02/26/airstream-to-expand-production-to-meet-booming-rv-demand.html

Saw this yesterday. If there is pain, it’s well hidden so far (at least to Airstream).

 
Comment by BlackSwandive
2018-02-27 16:25:01

Sales are through the roof:

“WASHINGTON — Last month was the best December ever recorded in the RV industry in terms of vehicles shipped to dealers, according to the Reston, Virginia-based RV Industry Association. For the first time in four decades, RV shipments topped a half-million in 2017, up 17.2 percent from 2016.

The group said 2017 was the ninth straight year of increasing recreational vehicle sales.”

https://wtop.com/business-finance/2018/01/millennials-help-drive-increase-rv-sales/

Comment by Mafia Blocks
2018-02-27 16:28:51

Those are shipments, not sales.

Comment by BlackSwandive
2018-02-27 17:02:32

Shipments from the factory to dealers are how sales are counted in the RV industry.

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Comment by Mafia Blocks
2018-02-27 17:10:27

Incorrect. RVIA data is shipments to dealer. RVDA is sales.

 
Comment by BlackSwandive
2018-02-27 17:36:44

LOL. Ok. Let’s see that data, my friend.

 
Comment by Mafia Blocks
2018-02-27 17:50:07

Housing my good friend…. Housing.

Hillsboro, OR Housing Prices Crater 9% YOY

https://www.movoto.com/hillsboro-or/market-trends/

 
Comment by BlackSwandive
2018-02-27 18:06:24

That’s what I thought, my friend.

 
Comment by Mafia Blocks
2018-02-27 18:14:47

Housing my friend…. Housing

Littleton, CO Housing Prices Crater 5% YOY

https://www.movoto.com/littleton-co/market-trends/

 
Comment by OneAgainstMany
2018-02-27 19:04:55

It looks like the big uptick in RV sales are being fueled by millennials:

https://www.barrons.com/articles/hit-the-road-zack-millennials-discover-rvs-1511578906

 
 
Comment by jeff
2018-02-27 22:32:59
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Comment by BlueSkye
2018-02-27 17:11:28

First places?

Prices for boats have been tanked for quite a while already.

Credit expansion in China has been troubled. This is what has been driving the global economy.

As Ben documents here, high end safety deposit boxes have been hurting.

The downturn has been right in front of you for quite a while.

Comment by Puggs
2018-02-27 17:28:05

I’ve sensed it since September, but I was looking for more domestic data.

Comment by BlueSkye
2018-02-27 18:02:32

I worked in the High Vacuum business for the past several decades. It’s one of the tech extremities of many manufacturing processes. In the past two years just about every venerable firm in the business has been sold for a song and squished down. My old employer wasn’t in this bunch but they have definitely pivoted toward more mundane applications, which was the majority of their business anyway. They’ve been making compressors for centuries.

The rush to build manufacturing facilities globally for the expensive stuff is over for now. This particular business was a warning flag for every recession we’ve had in the last 30 or 40 years. That’s the short of it.

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Comment by Mortgage Watch
2018-02-27 15:16:49

Keller, WA Housing Prices Crater 15% YOY As National Housing Demand Falls To 21 Year Low

https://www.movoto.com/keller-wa/market-trends/

 
Comment by Neuromance
2018-02-27 17:33:58

Powell’s remarks today makes him seem less friendly to novel monetary policies. I found his debt remarks interesting:

“While Powell nodded to the growth-enhancing benefits of fiscal policy reform, he was less welcoming of longer-term strain on the nation’s budget. The nation’s debt is unsustainable, he said, but he’s not sounding the alarm yet.

“There would come a time at which — it’s not this time, not this time by a long shot — but there could come a time when the public, the global debt-buying public, would come to the view that we either weren’t prepared to honor our debts or that we couldn’t service them,” Powell said. “We’re a long way from that.” — Bloomberg

Japan’s central bank is flat out monetizing government debt - printing money to buy government debt. It seems to be working well enough for them - no political instability and little inflation.

The US took a slightly different tactic, injecting money into the financial sector and monetizing government debt, in about a 40-60 ratio if I recall correctly.

BUT - Powell, with his remarks, seems opposed to that kind of debt monetization (and central planning-flavored policies and redistribution). Having monetary policy front and center and drawing more power to it with novel interventions gives the central bank more power. Personally, he was wealthy before he got to the Fed (investment banker and lawyer - not an economics professor), so no pressing need for a Wall Street sinecure I suppose.

I dunno, but I found the willingness to talk about debt being unsustainable and government default was a very, very big switch from Bernanke’s “helicopter money” attitudes.

Comment by ironknee
2018-02-27 18:44:40

Japanese are hive like - I wouldnt apply any lessons inferred from their actions to other societies, it aint gonna work. They are a different breed.

I need to get back there, try some high quality uni (sea urchin egg).

Comment by OneAgainstMany
2018-02-27 19:14:08

Reinhart and Rogoff argued that debt to gdp becomes a moderate issue at 90%, and a serious issue at 120%, and thus impairing growth greatly for up to 20 years. But their work has been under some criticism from academia. Japan seems to have vastly exceeded this threshold, though their GDP growth is nothing to write home about, so perhaps Reinhart and Rogoff are right.

Comment by Neuromance
2018-02-27 19:42:09

Economies grow towards profit. They build their processes and businesses around profit. When the largest source of profit is government, I suspect it leads to stagnation. Because as clever and magnanimous as government distribution is, it’s not going to be as cunning and heterogeneous as a wild market where entrepreneurs have to really think about how to create value.

I mean look at the central bank attitudes towards regulation. Greenspan originally said that Wall Street will always be way ahead of regulators, and it’s the central bank’s job to clean up the mess (see The Economist article, “Man in the dock”). If true (aside: especially true with complex, loophole-laden regulations like we have today), how is a government agency buyer going to mimic the creative spark of an economy if it is the biggest source of profit?

An anecdote: The government and central bank have been favoring finance for a long time now - several decades. This has led to outsize salaries on Wall Street. This attracts talent that could be going into science, engineering or other fields which directly improve the human experience. Savvy people who want their kids to do the best economically now direct their kids towards finance. I’ve personally witnessed this. Instead of more socially beneficial pursuits.

Long term stagnation I think is the result of monetizing government debt.

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Comment by Neuromance
2018-02-27 19:58:49

Long term stagnation I think is the result of monetizing government debt.

Keynes said, “In the long term, we are all dead.” But he’s wrong - there’s always another generation.

I think debt monetization feels good in the short term, like sitting on the couch with the TV on and eating bon bons. But in the long run, it leads to all sorts of health problems.

Debt monetization is like Aldous Huxley’s “soma” - a feel good drug. And amusingly, the Federal Reserve calls the account which contains the monetized MBS and government debt its “SOMA” account - “System Open Market Operations.” Not a coincidence I think - the Fed has clever people.

This amusing data point is in the the 2018 Monetary Policy Report, p.32 numbered, 38 actual, released this past Friday.

 
Comment by OneAgainstMany
2018-02-27 20:59:36

I took a look at p. 32. Interesting that mandatory appraisals were bumped up to $400k from $250k. Seems like the opposite of financial stability if you ask me.

I largely agree with what you are saying Neuromance. I would also add that since the Great Recession (you know, Goldman Sachs as “the great vampire squid wrapped around the face of humanity”), some of the allure of investment banking and finance has lost its shimmer. I think tech and Silicon valley is now where a good deal of the best and brightest are being funneled. But I think that the Great Recession seems like a distant past and investment banking is getting sexy again. Deregulation is en vogue and Dodd Frank is passe. Let the good times roll again!

 
Comment by Rental Watch
2018-02-28 10:21:50

Neuro–the interesting part is in Figure 44, IMHO.

I noted some time back that by the time the Fed reached their $20B monthly limit on reinvestment of MBS, the natural burn-off rate would be less than that…this chart seems to show that by mid-2018, the Fed is projecting that they won’t be buying any MBS at all, and simply letting the bonds mature and payoff.

In other words, by late-2018, the Fed will no longer be competing with other institutions to buy MBS.

 
 
Comment by Rental Watch
2018-02-28 10:12:48

But their work has been under some criticism from academia.

Yes, because one of their major conclusions was found to be an error of arithmetic (Excel not adding all rows/columns).

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Comment by alphonso bedoya
2018-02-27 19:17:17

ironknee +1

 
Comment by Neuromance
2018-02-27 20:21:20

Regarding the Japanese, yes, they seem to have a different temperament. I just saw a Bloomberg story which said, “Crime in Japan reaches 70 year low.” Interesting read.

Comment by OneAgainstMany
2018-02-27 21:04:28

My dad lived in Japan for many years. Japan has about 100x the number of guns that we have in the US per capita, so that has something to do with it. Despite the very low violence, they do have a slightly higher suicide rate than most OECD countries, but that too is falling. Probably a lot of the low violence has to do with culture and the fact that the country is getting very old as a whole.

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Comment by In Colorado
2018-02-27 23:05:22

Hmmm … from what I’ve read, it’s next to impossible to get a gun in Japan. I saw a story about gun ranges in Hawaii that cater to Japanese tourists, who want to shoot a gun for the first time.

https://www.forbes.com/sites/susannahbreslin/2013/09/29/guns-hawaii/#27e1e39d58f4

Selman is fluent in Japanese and Mandarin, which comes in handy, because 60% of the Shooting Club’s customers are Japanese. The Japanese may enjoy America’s shoot-’em-up-movies, but Japan’s gun laws are so restrictive that owning a gun is nearly impossible. In Waikiki, it’s an entirely different story. The shop, which opened in 1991, averages some 30 customers a day, oftentimes more, depending on what international holiday is underway. Another 30% of the Shooting Club’s patrons come from New Zealand and Australia, and a mere 10% is from the mainland or locals.

 
Comment by OneAgainstMany
2018-02-28 08:48:51

Japan has about 100x the number of guns that we have in the US per capita, so that has something to do with it.

Wow, I just reread my post. I meant to say it’s the exact opposite. The US has 100x the number of guns that Japan has. Obviously, the number of guns correlates strongly to gun violence.e

 
 
 
 
Comment by BlueSkye
2018-02-27 19:22:46

a very, very big switch…

This is very good. Trump did promise there would be a Fed Chair more to his way of thinking. I don’t know what will come of it but it is a step.

I’m still totally grateful, and will be for the next 3 or 7 years that I don’t have to hear Screech every time I walk past a TV.

 
 
Comment by alphonso bedoya
2018-02-27 19:15:30

Consider—-there never was “helicopter money.” There were continuous LEDGER entries via EXCEL spreadsheets. Let’s call it Operation Infinity. The govt tried to get people out of cash to reign in the underground economy that runs on barter and cash. It’s impossible to measure how large it is now.

Powell will do whatever it takes to insure stability. That means maintaining the status quo regardless of saying it’s not sustainable. No one wants to have a CRASH on his/her watch.
Greenspan created the balloon. Bernanke tied a string on to it and Yellen admired its colors.

Comment by BlueSkye
2018-02-27 19:29:38

No one wants to have a CRASH…

This is Debt Donkey thinking. The path to long term viability lies through a painful unwinding of the debt pyramid. The longer out the worser.

The government has been working to get people deeper into debt. That makes cash transactions shrink, among other things.

Comment by alphonso bedoya
2018-02-27 20:42:32

BlueSkye

The path to long term viability lies through a painful unwinding of the debt pyramid.

——————————————————————————–
Just take care of the ones you love.
Tight lines.

Comment by BlueSkye
2018-02-27 21:39:26

Tight lines to you as well.

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Comment by BlackSwandive
Comment by alphonso bedoya
2018-02-27 20:29:55

You believe people bought BTC primarily to avoid taxes ?
Interesting.

 
Comment by Rental Watch
2018-02-28 10:25:19

My new CPA asked if I was involved in “cryptomania” and would require that we track hundreds of crypto transactions…thank goodness the answer is “no”.

My understanding is that using BTC to buy pizza is like using a fractional share of a stock.

In other words, if you paid the equivalent of $20 for the pizza with BTC, but your basis in the BTC is only $2, you need to pay taxes on the $18 of gain when you buy the pizza…dear god, there are going to be some painful tax returns out there.

Comment by Professor 🐻
2018-03-01 01:07:06

Lots of crypto transactions are gonna be swept under the rug this tax season.

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Comment by Rental Watch
2018-03-01 10:40:22

Hear that knocking on your door? That’s the IRS…audit time.

 
 
 
 
Comment by Taxpayers
2018-02-27 20:18:26

Hahhhhhh
So, next up stagflation ?
Spending n printing like the 1960s

 
 
Comment by Mortgage Watch
2018-02-27 19:37:32

Ponte Vedra Beach, FL Housing Prices Crater 8% YOY As Builders Slash Prices And Liquidate

https://www.zillow.com/ponte-vedra-beach-fl/home-values/

*Select price from dropdown menu on first chart

 
Comment by alphonso bedoya
2018-02-27 21:02:21

So here’s the Florida mystery quiz:

A friend, who has an Asian name, deposits in person $3000 at a Wells Fargo bank. The following morning his account shows $2000. He calls and tells them it should be $3000. They ask him for proof. He shows up with the receipt, given to him the previous day by a teller, and they change his account to the correct amount—$3000.

Why did they do this? What was their INTENT?

Comment by rms
2018-03-01 20:10:39

Reminds me of how they count former Soviet weapon inventories in “Lord of War.”

 
Comment by tresho
2018-03-01 23:28:55

Why did they do this?
Maybe Wells Fargo is just a criminal enterprise masquerading as a bank.

 
 
Comment by Professor 🐻
2018-02-28 00:20:29

Lions and tigers and bonds, OH MY!

Comment by Professor 🐻
2018-02-28 00:23:59

Fund managers slash bonds to 20-year low on crash fears
by Michelle McGagh Feb 13, 2018 at 15:18

Fund managers have slashed their allocation to bonds to the lowest level in two decades as they fear the markets have moved into ‘late cycle’, according to the latest Bank of America Merrill Lynch fund manager survey.

The survey, which questioned nearly 200 fund managers at the beginning of February when stock markets were falling, revealed they were spooked by the declines in the UK and US markets that pushed up volatility and bond yields.

Equities and fixed income are both proving to be a concern for investors. Allocation to bonds has fallen, with a net 69% of managers ‘underweight’, the lowest allocation in the 20 years it has been surveyed. An inflation-induced bond crash sat high on the list of worries, with 45% of managers saying it was their biggest concern.

Fund managers started to move out of equities and into cash as fears persisted. Allocation to equities fell to a net 43% overweight from net 55%, the largest monthly decline in two years.

Comment by taxpayer
2018-02-28 07:56:38

I’m thinking bonds when they get to the third and final rate hike
popping rivets etc

 
 
Comment by Professor 🐻
2018-02-28 01:42:29

Asian shares lurch amid rate hike fear
February 28, 201812:12pm
Swati Pandey
Reuters

Asian shares have faltered and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the United States.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2 per cent, on track for a second straight day of losses.

It is down more than 4 per cent in February after global equity markets were mauled at the start of the month by worries US inflation is picking up.

 
 
Comment by jeff
2018-02-28 06:47:35

Former Hillary campaign chairman in bizarre tweet

Paul Joseph Watson | Infowars.com - FEBRUARY 28, 2018

John Podesta

@johnpodesta
Seems like those “unnamed sources peddling second-hand hearsay with rank speculation that continue to leak inaccurate information,” came straight from 1600 Penn. Jared better start wearing his kevlar on his back. http://wapo.st/2oAiDhl

5:38 PM - Feb 27, 2018

Comment by In Colorado
2018-02-28 09:10:33

The Deep State has not given up on enthroning the Screecher and moving her into 1600 Penn.

Comment by rms
2018-03-01 20:12:32

+1 Saint Hillary.

 
 
 
Comment by jeff
2018-02-28 08:15:46

Behold a Pale Horse

 
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