Buyers Lose Their Herd Urgency
A report from Global News in Canada. “If you’re thinking about selling your home in Saskatoon but don’t have to, you might want to hang tight. The number of home sales recorded across the country dropped by 2.9 per cent in the month of April to the lowest level seen in more than five years. According to the Canadian Real Estate Association, the number of homes sold across the country also fell by 14 per cent from March to April of this year. Dustin Ratzlaff’s home sold in two months but he admits he and his wife listed it for lower than they were expecting to and didn’t get their asking price of $379,000. ‘It definitely is a buyers’ market right now, working through that was a big challenge for my wife and I and resetting our expectations.’”
“Kent Braaten, the couple’s realtor, says it could have been sold a lot sooner. ‘We had an offer on it three weeks in but the problem was the buyers couldn’t sell their home.’ A situation not uncommon to our market these days with Braaten adding that there’s no urgency for buyers when it comes to putting in an offer and that they’re shopping around. On the seller side, they’re left between a rock and a hard place and facing some difficult decisions ahead. ‘I think any of us that own a home, we always want to sell it for more than we paid for it but in not every case is that possible,’ said Jason Yochim, CEO of Saskatoon Region Association of REALTORS®. Condos, for example, he said are selling for a lot less than they were four to five years ago.”
From CBC News in Canada. “Seems new condo projects are popping up everywhere in Calgary: city centre, inner-city and suburbs. Is there really a market for all of these condos? Who is going to buy them? Isn’t Calgary supposed to be in a recession, with slow growth and high unemployment? Aren’t people fleeing Calgary? Turns out there are some solid reasons behind the condo boom. Developers are not building for today, but for future demand.”
“Add it all up, and there’s a whopping total of 88 sites entailing 6,522 homes currently under construction. That’s room for about 13,000 people — roughly the number of people who live in Brooks. In addition to all this shovel-in-the-ground stuff, there are another 128 condo projects that have the necessary permits, but construction hasn’t started yet. That’s a lot of condos. ‘Yes, we have a glut of condos on the market in Calgary today,’ said Calvin Buss, president of Buss Marketing. ‘And yes, it will take time to absorb them all. But they will get absorbed.’”
From the Canadian Press. “Lynne Kent says owning a home in Vancouver that’s valued at $4 million isn’t the blessing it may appear to be. She and her husband are among a small group of homeowners in British Columbia facing a tax bump on homes assessed at over $3 million who say they simply can’t afford it — a claim that some are questioning. ‘I think the whole property value escalation is more of an albatross than a benefit, and have seen it that way because this whole escalation is really pushing us out of our home,’ said Kent, 71.”
“For the Kents, that would mean an extra $2,000 annually. Kent and her husband bought their three-bedroom bungalow in the Kitsilano neighbourhood in 1972 or 1973 for about $40,000, which was their household income at the time. They renovated the 1923 home in 1982, themselves. As retirees, they live on Canada Pension Plan and Old-Age Security payments, plus some savings, she said.”
“Kris Sims, B.C. director of the Canadian Taxpayers Federation, says it could represent a slippery slope to an extension of the tax to less expensive homes. And she pointed to families not unlike the Kents, who have children and want to pass their homes on to the next generation, which may not be able to afford the taxes on them. From Sims’ view, it doesn’t matter if a home is assessed at $8 million. The homeowners don’t deserve a ’surprise’ $16,000 new tax each year, she said. ‘On paper, their homes have ballooned in assessed value,’ Sims said. ‘That is why this is really unfair, because it’s based on assessed value, not (price) when it’s sold.’”
From the Australian Financial Review. “Sydney’s auction clearance rate fell to 50 per cent at the weekend, and housing market economists have predicted further ‘gradual’ price corrections over the quieter winter months. ‘This is consistent with continuing gradual falls in prices,’ said AMP Capital chief economist Shane Oliver. ‘Sales volumes are also continuing to decline on a year ago.”
“Sydney detached house prices have fallen more than 5 per cent over the past 12 months, according to CoreLogic. Listed estate agents McGrath recorded a 55 per cent clearance rate in Sydney, selling 39 from 71. However 17 homes sold prior to auction – an indication of vendor nervousness – and five properties were passed in with no bids.”
From New Daily in Australia. “The inner Sydney apartment of The Block judge Neale Whitaker has failed to sell at weekend auction. It was passed in on a vendor bid and now comes with a $1.65 million asking price. The apartment was bought for $1,705,000 in 2016 when inner city market conditions were stronger.”
From Domain News in Australia. “The Melbourne auction clearance rate was stuck in the low 60 per cent range at the weekend for the third week in a row, prompting market watchers to urge buyers to apply ‘more strategy’ to their purchasing. The trend to pass-in negotiated results has shone a spotlight on the ample leverage held by prospective buyers. ‘The market has certainly turned into a buyer’s market, so you can negotiate and not just on price,’ said executive chairman of the WBP Property Group, Greville Pabst.”
“Mr Pabst said it was unwise for a buyer to accept an agent’s invitation to ‘go inside’ a property after a pass-in and be contained in a room. It was better, he said, to stay outside on the street where you could see and evaluate any remaining competition.”
“Other buyer’s advocates reported a large number of pass-ins around Melbourne on Saturday, particularly for properties priced from $2 million to $4 million. Woledge Hatt director Adam Woledge said Camberwell’s family home market between $2 million and $3 million was soft: ‘There are a lot of offerings in the Camberwell market and they are not really going anywhere.’”
“Nelson Alexander sales director Arch Staver said a number of people in the present market had made purchasing decisions last spring but postponed selling an existing home: ‘They intended to sell in six months’ time, but the reality is that six months is a long time in the real estate market. Things change. Banks freeze up on lending and buyers lose their herd urgency.’”
From News.com.au in Australia. “Home sellers will need to consider new strategies to entice buyers if they want to offload their properties for a top price in Sydney’s changing housing market, experts have advised. This has followed a major shift in the supply and demand balance across much of the market, which has put buyers in a stronger position to negotiate more favourable purchasing terms. Figures from SQM Research showed there were 33,000-34,000 homes for sale in April and March — 34 per cent more than at the same time last year and the highest number since 2011.”
“The listing jump corresponded with a drop in buyer demand, with additional data from realestate.com.au revealing there were nearly a fifth less people actively searching Sydney listings compared to a year ago. The biggest impact of the change was that sellers could no longer expect to list their homes for hundreds of thousands more than what comparable properties sold for only months ago and still expect to attract a buyer, said SQM Research director Louis Christopher.”
“Sellers in areas where large numbers of new homes were being released for sale such as Sydney Olympic Park and Putney in the northwest typically had to slash the most off their original asking prices to make a sale. ‘Vendors have to price their properties more competitively in this market,’ he said. ‘There is a risk in listing too high.’”
The Sydney Morning Herald in Australia. “If you want a sense of how intense the pressure is for apartment development in Sydney, talk to the manager of the landmark Tennis Ranch at Gladesville. Therese McCabe said the owner of the land on Victoria Road fielded ‘a couple of offers a week’ to sell. And her customers, who have seen how quickly apartment blocks have sprung up in the City of Ryde, keep asking if they will be closing. ‘Hopefully not yet,’ she answers.”
“Mrs McCabe was speaking after the state government froze new planning proposals for residential development in Ryde, conceding that rapid growth in apartments was outpacing infrastructure. It also suspended in both the City of Ryde and City of Canterbury Bankstown new planning rules that make it easier for residents to convert their blocks into medium-density homes.”
“Mrs McCabe believes new residential developments have generated too much traffic in Gladesville and questions how many apartments are vacant, either because they have not sold or are owned by investors. ‘I really do think it’s gone from ‘a little’ to ‘too much’ in a short space of time,’ she said. Ms Hall pointed to one apartment block she thought was fine, with a retail area below, but others were just too tall and many units were unoccupied.”
‘Mrs McCabe was speaking after the state government froze new planning proposals for residential development in Ryde…It also suspended in both the City of Ryde and City of Canterbury Bankstown’
Shortage, shortage, GLUT!
Cedar Mill, OR Housing Prices Crater 15% YOY As Housing Correction Advances
https://www.zillow.com/cedar-mill-or/home-values/
*Select price from dropdown menu on first chart
How come even with big price drops Zillow still only shows positive increase forecast for year ahead?
Likely for the same reason they stopped reporting sale prices.
Why conceal market conditions?
Because “HURRY UP AND BUY!!”? It’s SHILLow after all - a REIC pimping site.
‘Seems new condo projects are popping up everywhere in Calgary: city centre, inner-city and suburbs. Is there really a market for all of these condos? Who is going to buy them? Isn’t Calgary supposed to be in a recession, with slow growth and high unemployment? Aren’t people fleeing Calgary? Add it all up, and there’s a whopping total of 88 sites entailing 6,522 homes currently under construction. That’s room for about 13,000 people — roughly the number of people who live in Brooks. In addition to all this shovel-in-the-ground stuff, there are another 128 condo projects that have the necessary permits, but construction hasn’t started yet.’
‘That’s a lot of condos. ‘Yes, we have a glut of condos on the market in Calgary today,’ said Calvin Buss, president of Buss Marketing.’
Behold the Yellen bucks looking for money heaven.
‘They intended to sell in six months’ time, but the reality is that six months is a long time in the real estate market. Things change. Banks freeze up on lending and buyers lose their herd urgency.’
Hey Nelson, you may be giving a bit too much away.
“Things change. Banks freeze up on lending …”
Ah, the power …
“… and buyers lose their herd urgency.”
Banks freeze up on lending AND THUS TRIGGER buyers to lose their herd urgency.
If constantly rising prices that depend on financing cannot be financed then prices cannot be constantly rising. Those ignorant pukes who are driven by herd urgency thus lose this urgency because wonderful people such as myself make it so.
I like it, I like the power. I like the gotcha moments when the last of the ignorant pukes who committed themselves to paying top dollars for an overpriced fully realize the implications of Proverbs 22:7.
(Bahahahahahaha … I also like the power I have over the pukes on this message board that will look up Proverbs 22:7 because they just cannot help themselves.)
Bahahahahahahahahahahahahahahahahahahahahahahahahahaha.
Proverbs 22:7: “The rich ruleth over the poor, and the borrower is servant to the lender.”
The antidote is one verse earlier:
“Train up a child in the way he should go: and when he is old, he will not depart from it.”
In other words, teach children early not to go into debt and buy things they cannot afford or do not need.
“In other words, teach children early not to go into debt and buy things they cannot afford or do not need.”
Bahahaha … and how is that working out?
I have a proverb of my own - it consists of two parts:
1. Dumb ‘em down.
2. Profit.
I’m proud to say that I helped talk a young couple out of signing on one of your dotted line specials, Mr. Banker.
Matthew 15:27: “Even the dogs eat the crumbs that fall from their master’s table.”
1 Kings 16:11 “he left him not one that pisseth against a wall, neither of his kinsfolks, nor of his friends.”
‘Banks freeze up on lending’
I wonder what the lending fall out will be once the FBI raid on the guy with over 30,000 apartments gets around? Anyone that missed that can see yesterdays post.
Is 30,000 alot?
The beauty of the situation for bankers is that once the herd loses its urgency, prices begin to fall, precipitating a whole sequence of negative consequences, including homeowners walking away from their debt obligations and going into default on their mortgages. This gives the bankers an opportunity to take possession of the properties and wait until prices start appreciating again in a few years to offload them. And since the loans are federally guaranteed against loss of principle, the bankers will be made whole on the defaulted mortgages — double prizes!!!!
It’s good to be the King!
‘Lynne Kent says owning a home in Vancouver that’s valued at $4 million isn’t the blessing it may appear to be…Kent and her husband bought their three-bedroom bungalow in the Kitsilano neighbourhood in 1972 or 1973 for about $40,000, which was their household income at the time.’
One times their income, you don’t say. What’s it now, 100 times? Nothing to see here.
FWIW, $40K was a very good income in 1972.
Or put another way, someone make half to a third as much could have afforded it.
“…$4 million isn’t the blessing it may appear to be…”
So cut the price by 75%. Or 85%.
Alas, I guess that wouldn’t be a blessing either.
“So cut the price by 75%. Or 85%.”
Perhaps they can’t. Perhaps they would end up underwater if they did.
Remember: If they paid their mortgage off, it means they probably did not manage their funds efficiently over the years. It’s as if they had 500,000 dollar bills stuffed in their mattress.
People who behave in such ways are highly unethical.
They have lined up their grandchildren and shot them in the back.
I believe that in years to come, historians will see the beginning of the 21st century as the ‘golden age’ of real estate.
No, they won’t.
Home sales are coming down from the mountain peak, but they will level out at a high plateau - a plateau that is higher than previous peaks in the housing cycle.
How many properties have YOU “invested” in during the past 15-20 years? And I’m speaking to you, the poster yourself, and not some goofy alias you post under.
Why not list them here?
Actually we’re falling down a flight of stairs. There’s a bounce and then it will be lower lows. Turtles all the way down.
Soon to be repeated by real estate investors the world over:
Underwater? On a property that was $40k and now worth 4 million? What did they do, cash out for boob jobs for the whole town?
Story didn’t say they were underwater.
‘The biggest impact of the change was that sellers could no longer expect to list their homes for hundreds of thousands more than what comparable properties sold for only months ago’
And these central bankers can’t see a bubble.
Realtors are liars.
…. and every closing a crime scene.
That joke is old and terrible.
Lessons will be repeated, until learned.
“Lessons will be repeated, until learned.”
Shirley, you jest.
There is no learning curve. None. Nada. Zip.
“Lessons will be repeated, until learned.”
It’s a lifestyle not unlike that of a junkie. Always looking for the next score, always needing a bigger hit.
Realtors are just a part of a much larger, unaccountable dope scene.
Withdrawal will take decades, at great cost to tens of millions who never participated.
Note that it’s not a gambler lifestyle. If it were gambling, the gamblers would suffer the hit.
“Note that it’s not a gambler lifestyle. If it were gambling, the gamblers would suffer the hit.”
Ahhhhh, yes. And thus is the beauty of it all.
Oh, and one more thing: The money that is employed in this lifestyle you described? It belongs to somebody else.
Bahahahahahahahahaha.
Does anyone on this board use one user name?
I think you and I are two of a small number.
Probably.
not.
“Does anyone on this board use one user name?”
You could hide beside me
Maybe for a while
And I won’t tell no one your name
And I won’t tell ‘em your name
https://www.youtube.com/watch?v=yQOBUrRaPU0
Dan -
There may be about a dozen of us, perhaps as many 18-20 if we’re lucky.
Some here are mentally ill. Some of trolls. Even some of the long-termers.
I feel bad for Ben. I don’t know if I should feel bad (I don’t know Ben’s reaction - hopefully, he doesn’t give a sh*t).
I do know that he’s asked us not to use multiple user names as it creates work for him. Here he is, providing a free forum, posting articles of importance and asking very little in return.
And people cannot even stick to one user name? What the hell is wrong with them?
I only have one user name.
Ditto.
I was a “realtor ho” for a few weeks when I bought back in 2012. Even I couldn’t keep track of who I was so I gave up.
Hey Donk
I use the same name as don’t comment much. I appreciate what Ben does.
Hey, realtors are liars.
I live in apartment 401 and I like living here alot. Alot.
“If it were gambling, the gamblers would suffer the hit.”
Government sponsored gambling enterprises don’t work that way.
Probably not.
“Some here are mentally ill. Some of trolls. Even some of the long-termers.”
Thank gawd for the small handful of normal posters!
I don’t mind sock puppets if they’re funny.
These, eh .
+1.
Does anyone on this board use one user name?
I’m one; I changed from just ‘Jon’ back in May 2007, IIRC, because someone else had started posting using the identical moniker. PiC seemed appropriate given the idiotic utterance that Bernanke had then recently made.
I am the one and only Anonymous, and I don’t post under any other names.
Australia Housing Prices Crater Nationally
https://www.perthnow.com.au/business/housing-market/median-house-prices-fall-in-perth-and-nationally-ng-b88818712z
“Lessons will be repeated, until learned.”
Well to do businessmen in China are found to be corrupt, made to publicly wear sandwich boards listing their crimes and quickly executed. Despite the harsh penalty meted more businessmen just see the empty shoes as an opportunity. Nothing learned.
“Well to do businessmen in China are found to be corrupt, made to publicly wear sandwich boards listing their crimes and quickly executed. Despite the harsh penalty meted more businessmen just see the empty shoes as an opportunity. Nothing learned.”
It you can make enough money and sneak it out of the country you can have a great life out of the country. When the Chinese are buying homes outside China it is more about haven than investment. When you are facing being shot losing twenty per cent of an investment is not a major concern.
‘When the Chinese are buying homes outside China it is more about haven than investment’
Funny that so many of them have loans and will stop paying in a heartbeat. This rich Chinese buyer thing is a REIC hoax, I think.
“This rich Chinese buyer thing is a REIC hoax”
They never existed in the first place
dumb.borrowed.money.
Don’t get me wrong. There is money laundering, and there are lots of Chinese in say Vancouver, for reasons going back decades. But how many would be gambling in Australia or New Zealand if they weren’t handing out loans like candy. Most people here have no idea there’s a big government crackdown on shack lending in Australia right now.
‘Banking royal commission hears broker viewed Westpac loans as ‘easier’ to get’
‘Aussie Home Loans criticised for lax compliance around fraudulent behaviour of four of its mortgage brokers’
https://www.theguardian.com/australia-news/2018/mar/16/banking-royal-commission-hears-broker-viewed-westpac-loans-as-easier-to-get
It’s a question of half truths. Remember years ago when the Canadian brokerage got caught using Asian employees to pose as Chinese buyers? Sure suitcases of money could slip in pretty easy, but why all these Chinese FB’s when markets turn? I’ve posted numerous accounts of not being able to settle and not being able to get financing to close and losing deposits. Same thing happened with Singaporeans/Malaysians in London.
In the US you might never know this was happening if you listen to the MSM. How many USA citizens know there is a bubble in Australia and Canada and that it’s popped? And why not?
The Chinese looking for havens are the ones buying up SFH in Memphis. The condos in Miami are the money launderers.
“Funny that so many of them have loans and will stop paying in a heartbeat. This rich Chinese buyer thing is a REIC hoax, I think.”
The problem is getting the money out of China. The Chinese have greatly restricted moving money from China to the outside because China is determined to keep its foreign reserves above three trillion. So many borrow and hope to keep being able to move enough money each year to make the payments. I think that bitcoin would have crashed even more but for rich Chinese trying to evade government controls.
Now, will they stop paying money on loans if it looks like a bad investment, of course, they were raised under a communist system and they just look out for themselves and their families. You do not prosper under that system without being dishonest and violating laws. If you follow the law you are a slave to the system. Americans for many decades were oddity, they were honest on their taxes etc. We have converged over the years to be more like the Europeans both in our ethics and our church going, there is a strong correlation between the two.
How many USA citizens know there is a bubble in Australia and Canada…
How many Canadians know there’s a bubble in Canada? Vancouver they can disregard as a place of alternate reality like we disregard California.
The Chinese trade surplus with the world is $422.5 billion. The U.S. deficit with China is around $280 billion meaning we are 2/3 of their surplus. The Chinese have around three trillion dollars in foreign currency reserves and while the reserves have been inching up a little for about a year the movement has not been significant. Thus, just back of the napkin calculations, China is leaking around $420 billion dollars in reserves per year. A lot of it is going into housing world wide and it is being leveraged by loans. Consequently, I think if anything the impact of Chinese money on the world housing bubble is underestimated. Consequently, if we were to cut our trade deficit with China by $200 billion dollars as being discussed it could really pop the world wide bubble.
Dan, could you explain how you think this would pop the housing bubble? I’m thinking that the reducing in foreign (Chinese) real estate purchases with excess cash from their current account surplus would put downward pressure as it would reduce the demand side of the equation. Do I have this right?
“And these central bankers can’t see a bubble.”
They see it. It was their intention, all by design. They’re also not going to yell “FIRE!!!” in a crowded theater.
“They’re also not going to yell “FIRE!!!” in a crowded theater.”
Hey, if there is money to be made … who knows?
1976 Detroit.
Sound familiar? It should. The more things change, the more they stay the same.
Well worth spending the 15 minutes to watch.
BTW, this Hezakya guy has posted numerous interesting videos from days long gone by. A handful are housing related. Others are not.
https://www.youtube.com/watch?v=x5bRTLhD9xI
It was pretty funny to see a young Carl Levin, the president of the city council. He recently retired from the US Senate.
Really great reports from Canada: https://www.youtube.com/channel/UCdpU4qvzypmjZbbcLiPWV8A/videos
’sold in two months but he admits he and his wife listed it for lower than they were expecting to and didn’t get their asking price of $379,000′
379k in Saskatoon. They probably think this is as bad as it can get.
Realtors are liars
Why did the Realtor cross the road?
To lie to a used house buyer on the other side of the road.
Every day something disgusting and pitiful happens, but only now does it get reported
Muslim beaten to death in India for allegedly killing cow
https://www.yahoo.com/news/muslim-beaten-death-india-allegedly-killing-cow-103503018.html
This Kraap has got to stop NAACP leader’s racial profiling claim challenged after bodycam footage released
http://www.foxnews.com/us/2018/05/20/naacp-leaders-racial-profiling-claim-challenged-after-bodycam-footage-released.html
“When I saw the video, I was shocked that someone who is supposed to be a community leader, a pastor, and head of the NAACP would just come out and tell a blatant lie,” the police chief said.
The chief must have spent his entire career behind a desk.
This seems significant.
PIMCO executive Richard Clarida, nominee for the vice chairman slot, came out in favor of dumping all MBS securities on the balance sheet.
his views seemed to be a mirror image of Powell’s views [...] Currently, the Fed holds $1.74 trillion of MBS. That’s about 26% of all residential mortgage-backed securities outstanding. The Fed is the elephant in the MBS room.
The federal reserve has really f* things up for the past 20-yrs enabling speculators while screwing savers.
Speaking of herds, how about all the lemmings who fell for the Bitcoin scam?
The Future
Bitcoin is consuming as much energy as the country of Ireland
Ireland gives us whiskey, Bitcoin gives us… hmm.
https://theoutline.com/post/4561/bitcoin-is-consuming-as-much-energy-as-the-country-of-ireland?zd=1&zi=csvti2br
Santa Rosa, CA Housing Prices Crater 5% YOY
https://www.zillow.com/santa-rosa-ca/home-values/
*Select price from dropdown menu on first chart
Bait and switch, honestly if the law was applied equally Musk would be in jail for stock fraud:
https://www.msn.com/en-us/finance/companies/at-2478000-tesla-moves-mass-market-model-3-beyond-the-masses/ar-AAxySAn
“…Musk would be in jail for stock fraud:”
Mr GQ?.. everyone loves him even while he’s bending ‘em over.
The article does not even mention that people that put down the $1000 deposit were expecting delivery when they could still claim the $7500 credit, now it is clear that only people that really do not need a $7500 credit will actually receive it. Like with many “green” projects, the working class is subsidizing the wealthy.
“Unless the public relations department of a company finds itself sitting around with too much extra money and too much time on their hands, there is only one reason a company commissions a report like this: they want something from taxpayers.
This is a prelude to Tesla’s next big ask of California’s state government. The Federal government is likely a dead end, as a bailout of Tesla would likely outrage many Trump and Congressional Republican supporters. However, California might just be persuadable.”
https://www.zerohedge.com/news/2018-05-19/here-comes-teslas-next-big-ask-taxpayers
Musk will get it, too.
You anti-Tesla posters crack me up. Seriously, that zero hedge piece above was basically touting the economic and societal benefits of car dealerships that stand to lose from Tesla’s direct-to-consumer model. Car dealerships are the biggest monopoly around and absolutely suck purchasing power from the consumer. Tesla is innovating and making cool stuff. Will they turn the corner financially? I don’t know, but at least they are doing something innovating. Car dealerships? Not so much. I put them right below UHS on the social pariah scale.
Weird that Tesla should promote dealerships when they’ve got a direct to consumer model, no? It’s a kitchen sink type pitch.
Anyhoo, don’t misunderstand me. I hope California gives them every penny they need and then some.
‘You anti-Tesla posters crack me up’
Just make money. Until then, it’s a joke. There was a time when you had to make a profit to even be considered a real company. Some time before the dotcom debacle IIRC.
Why make money when you can get it from the gummint?
“Tesla is innovating and making cool stuff.”
Tesla was in Autopilot mode before Utah crash, driver tells police
by Tim Stelloh / May.14.2018 / 7:06 PM ET
A woman whose semi-autonomous Tesla rammed into a fire department truck in Utah last week told police her car was in Autopilot mode at the time of the crash, authorities said Monday.
The unidentified 28-year-old driver was looking at her phone when her Model S — which was traveling at 60 mph — careened through a red light and crashed into the truck, Sgt. Samuel Winkler of the South Jordan Police Department said in a statement.
The woman broke her right foot, Winkler said, while the truck driver was checked for whiplash but not hospitalized.
Winkler said investigators were working with Tesla technicians to gather and review data stored in the car.
https://www.nbcnews.com/business/autos/tesla-was-autopilot-mode-utah-crash-driver-tells-police-n874136
This is my neck of the woods. I used to work and drive Bangerter highway every day, so I know the area. The media love these Tesla crash stories because they are click bait, but clearly the driver was paying attention and she was cited. Drivers are required to pay attention at all times and take control of their cars, regardless if they have advanced cruise control, advanced braking systems, or lane keeping software. It’s still the human whose in charge.
“A Tesla driver who recently crashed into a truck while on Autopilot got a citation from the police after Tesla released data logs and the driver admitted that she was looking at her phone during the accident.”
From Tesla:
“When using Autopilot, drivers are continuously reminded of their responsibility to keep their hands on the wheel and maintain control of the vehicle at all times. Tesla has always been clear that Autopilot doesn’t make the car impervious to all accidents.”
https://electrek.co/2018/05/16/tesla-driver-crashed-truck-autopilo-logs-nhtsa-investigates/
“Only the expensive performance model was mentioned in Musk’s tweets this weekend. The company’s current business model and financial position — it’s operating at a loss and has negative operating cash flow — mean “that this is not the time for a $35,000 Model 3,” Tynan said in emailed comments.
A Tesla spokesman declined to comment.
The company burned through more than $1 billion of cash in the first quarter and may need to tap capital markets for more than $10 billion by 2020 to fund its car-making operations, new products and expected expansion into China, Goldman Sachs Group Inc. analysts said last week. Mounting liquidity pressures and challenges with Model 3 production prompted Moody’s Investors Service to cut the carmaker’s credit rating further into junk status in March, adding fuel to a sell off of the company’s bonds to all-time lows.”
Once the stock market melts down, this company is finished. They are only buoyed by the high share price. Once their market cap is cut by 60%, there’s no way they’ll ever “tap capital markets” again.
Looks like they are going to crank out 3500 Model 3’s this week, so are on track to him the 5k weekly rate. New plant announced in China thanks to DJT pushing for Tesla. I wouldn’t be shorting Tesla right now.
You wouldn’t ever be shorting Tesla. You’re a fanboy, we get it.
Sorry it is not about shorting or buying it is about the rule of law applying to everyone equally including the elites. You are not allowed to make claims in your SEC filings that are fraudulent even if you are just reckless. Musk does it all the times with his claims. He has not brought the price of batteries down enough to make a $35000 car as he said he would do. It has implications not only for autos but his other ventures such as solar. He may hit close to 5000 vehicles a month by working the twelve hour shifts and stock piling vehicles but he cannot make them profitably. His claims actually may have hurt the environment. There are twenty five million NGV vehicles in the world. Except for a few countries such as Iran and Russia, we have the lowest NG gas prices in the world and we would be a natural place to produce such vehicles. Musk by claiming the imminent availability of cheap electric cars persuaded many not to go down that route. NG cars pollute far less gasoline and diesel vehicles. There could be millions or tens of millions of these vehicles on the road today in this country but for his PT Barnum and Ponzi antics. I am not sure at all that his legacy will be positive for the environment. Particularly since lithium is a very toxic substance and we are introducing it to our environment.
lithium comes from the environment.
Think shorted or damaged LiIon cells are bad… 3000-5000 psi compressed gas tanks strapped to every vehicle. Leaks result in combustible gas clouds.
“Lithium comes from the environment”
As does lead, uranium and asbestos, what is your point? A methane fire is far easy to mitigate than a lithium fire. A $78000 car is a play thing for the wealthy that has been financed by the working class. He promised in SEC filings a mass produced affordable vehicle costing around $35000. Hell the GM bolt comes close to meeting his promise so take away the hype what does that say about Tesla?
Dan, I agree with you that NGV are vastly superior to gas and diesel in terms of cost and environmental friendliness. Electric cars are another level of environmental friendliness as they have zero emissions at the point of use, which is super important for crowded urban environments. Regarding your disdain for lithium, I hope you also have forsworn the use of cell phones and laptop batteries that run on lithium since they comprise a larger share of lithium. The solution to lithium is recycling the batteries. In any event, electric cars are far cleaner than any combustion energy by almost any measure. Granted, the relative cleanliness of the tech depends on how the local electricity is being charged.
As for the $35k model 3, who says they won’t get there? Tesla’s master plan has always been:
“1. Create a low volume car, which would necessarily be expensive
2. Use that money to develop a medium volume car at a lower price
3. Use that money to create an affordable, high volume car
And…
4. Provide solar power. No kidding, this has literally been on our website for 10 years.”
Elon has said that the lowest cost model 3 won’t be out until 3-6 months after the 5k week rate of the model 3 has going. To Ben’s point, the company needs to focus on profits, so it absolutely makes sense to sell the more expensive upgraded models first with larger profit margins.
“that this is not the time for a $35,000 Model 3,”
Sounds like the perfect time to me…assuming you’re not…ahem…production constrained. But yeah…if you can’t solve normal automaker production problems then it’s back to making a small number of really expensive ones to survive.
I saw Elon tweeted the performance numbers for the model 3 AWD performance version. A little underwhelming compared to the model S. Or an Audi RS3.
When everything is falling, is that a sign that Uncle Buck is where you should HODL your wealth?
Bonds, stocks and gold all falling at the same time meant there was almost nowhere to hide
Published: May 16, 2018 9:45 a.m. ET
Traditional havens offered no safety thanks to stronger dollar
Is there cash in that hole?
By Mark DeCambre
There was nearly nowhere to run or hide to for investors on Tuesday.
The Dow Jones Industrial Average snapped an eight-session streak of gains with a triple-digit decline, wiping out the blue-chip average’s meager 2018 advance.
But most notable about Tuesday’s price action is that as the Dow, S&P 500 index and the Nasdaq Composite declined, gold for June delivery saw its worst one-day drop since December 2016, falling to the lowest level for a most-active contract since December, according to FactSet data.
Meanwhile, the yield on the closely watched 10-year Treasury note (TMUBMUSD10Y, -1.36%) which moves inversely to prices, shot up to its highest level since 2011, hitting an intraday peak around 3.093%, and posting its largest single-session rise since March 1, 2017, according to WSJ Market Data Group.
All that means that haven assets like gold and bonds weren’t providing much of a safe place to park money at a challenging time, instead plunging to levels not recently seen in months amid a downturn in stocks.
“The only place to hide was in cash because the dollar’s up,” said Art Hogan, chief market strategist at B. Riley FBR Inc.
…
Kingston, MA Housing Prices Crater 14% YOY
https://www.zillow.com/kingston-ma/home-values/
*Select price from dropdown menu on first chart
http://thehill.com/opinion/judiciary/388549-stopping-robert-mueller-to-protect-us-all
True justice would be putting Comey in jail with Ms-13 members for a few years and only granting him parole when he can sign all the verses of “Man I feel like a woman”.
sing but I guess sign would be ok
Geez, that made me laugh so hard. Someone posted this today and it also made me nearly bust a gut (not because the woman died, but why):
https://twitter.com/realDonaldTrump/status/411247268763676673
And then all of a sudden I realized, this isn’t about Hillary so much as it is about Obama. Trump’s been rubbing his nose in it for years, so that’s why the payback is so fierce and why Brennan is at the root of it. I really think Obama wanted to be prez4life.
‘Michelle Obama gave a speech to high school students at 2018 College Signing Day in Philadelphia on May 2 and she called herself the ‘forever First Lady’.
http://hollywoodlife.com/2018/05/02/michelle-obama-forever-first-lady-students-speech-college-signing-day-philadelphia-video/
Yep. They have ambitions of being re-installed in the White House. For as long as they live. Even had Hillary won, all of a sudden the worm would have turned and she would have been forced to resign under a cloud and “for the stability of the country”, the Obamas would have been back. I would not be surprised if that was the plan. Brennan and Comey would have seen to it.
Doesn’t the constitution stipulate an order of succession should the Prez have to be replaced, starting with the Veep? Not saying that the Obamas wouldn’t have tried to return, but without the Supreme’s assistance it would have been impossible. It would be interesting if one (or both) of the Obamas ran in 2020.
I think absent the second amendment and the fact most of the military hated him, he would have tried a Maduro. The left likes elections until they lose and then they can be very difficult to remove.
Meanwhile, back in Iran, did anyone know that there have been riots and protests in the South of Iran by the Persians who want the mullahs gone? You won’t hear that in the MSM, nossir. Not to mention the state has cut all electronic communication. But the cell phone footage is getting out.
https://www.youtube.com/watch?v=0TLVMb3b1z8&t=15s
They say “Way to go Trump”!
Incredible, isn’t it? The people of Iran know what’s going on. That’s why the MSM is suppressing the info so hard.
These are Persians. They don’t want a theocracy. They had a democratically elected leader and the CIA overthrew him and installed the Shah. From there it all went into the crapper and they got the mullahs. They want to bring it back to pre-Shah, and govern themselves. And if they’re successful, the country will be known as Persia once again.
While I sympathize with the Persian people, this reeks of CIA intervention. Hopefully if/when this goes bad they aren’t all exterminated.
I’m not into political science, so I can’t assert anything other than this is an informative piece.
Dan Kovalik’s “The Plot to Attack Iran:” a Tool to Combat Washington’s Middle East Wars
https://www.youtube.com/watch?v=WtUkKm-jIJ8
Some investors are really stupid …
“Over 80% Of 2017 IPOs Had ‘Negative’ Earnings - Most Since Dot-Com Peak”
(Snip)
“108 operating companies went public in the U.S. in 2017 with the average first day return a healthy 15.0% - well above the average 12.9% bump seen since the start of the 21st century.
But of most note in years to come, we suspect, is the fact that over 80% of IPOs in 2017 had negative earnings… the most since the peak of the dot-com bubble in 1999/2000…”
https://www.zerohedge.com/news/2018-05-19/over-80-2017-ipos-had-negative-earnings-most-dot-com-peak