June 24, 2018

The Markets Where We Really Want To Give Stuff Away

A weekend topic starting with Seattle Magazine in Washington. “Representatives of Laconia Development and Realogics Sotheby’s International Realty recently announced that a planned residential tower, now under construction at 600 Wall Street in downtown Seattle, will be delivered as condominiums for sale instead of apartments for rent. It will soon deliver opportunities to own a home in a market where more than 91% of the estimated 30,000 multi-family housing units added to downtown Seattle during the current decade were developed for rent. Dean Jones, CEO of Realogics Sotheby’s International Realty believes renters are increasingly positioning themselves for capital appreciation, mortgage interest deductions and attainable home ownership options before being priced out. He notes that consumer confidence and rising home prices are key for presales, when savvy buyers can purchase a new home in advance of closing and moving in.”

The Battle Creek Inquirer in Michigan. “What difference can a hundred people make? In a downtown the size of Battle Creek’s, potentially a lot. By the end of next year, a total of about 100 new downtown apartments should be coming online in Heritage Tower and McCamly Plaza. ‘It’s the chicken and egg,’ said John Hart, Battle Creek’s downtown development director. ‘Who will come to a district to develop a business if people aren’t going to be there?’”

“The reason why supply hasn’t matched the demand yet is because of how costly it is to create the units versus what banks are willing to lend, Hart said. A project that’s $250,000 might get appraised at $207,000, and making up that gap is what stalls developers, he said. But once a market is established, appraisals will be more favorable and banks more willing to lend, he added. ‘It’s sort of a ripple effect,’ Hart said. ‘The great thing is Battle Creek is there now.’”

From RE Business Online. “Lending intermediaries are not seeing any slowdown in the availability of capital for the student housing sector in 2018. At the same time, many lenders have slowed their lending for all multifamily products, carefully balancing portfolios after the boom in conventional multifamily that occurred in the past few years. Last year was a record year for student housing financing for the government sponsored entities (GSEs) Fannie Mae and Freddie Mac. Together they funded a total of more than $5 billion in student housing volume in 2017. Fannie Mae reported volume of $3.8 billion last year for student housing, while Freddie Mac reported a volume of $1.6 billion for the calendar year.’

“‘Fannie Mae and Freddie Mac continue to be the most active in permanent student housing loans,’ says Peter Benedetto, senior managing director of Berkadia.”

From The State in South Carolina. “Richland County Council reversed course from a decision it made two weeks ago and decided to offer a 10-year, 33 percent property-tax break for a proposed student apartment complex. If the project moves forward, the owner will save nearly $4 million on property taxes over the next decade. But Richland County Council shot down a fifth developer’s request for the tax break for student apartments planned at the BullStreet development, with some council members arguing that the student-housing market was becoming saturated and there was no need to offer a building incentive.”

The Denver Post in Colorado. “Two big builds make up a small slice of the apartment market being constructed in the city, and they are part of a trend playing out in Denver and nationally: developers building luxury apartments at a much higher rate than apartments attainable for lower-income earners. Denver’s seemingly astronomical rent growth since 2000 finally appears to be slowing down. ‘I am concerned about an oversupply of luxury,’ City Councilwoman Robin Kniech said. ‘I think there is this vague hope out there that if developers overbuild luxury, they will lower prices. I don’t see any evidence that is a likely outcome. You may need to offer more incentives to get folks in, like a month of free rent.’”

“The metro area is expected to see 10,000 to 12,000 new apartments delivered this year, according to the Apartment Association of Metro Denver. Scott Johnson, mountain states division president for Lennar Multifamily Communities, acknowledges that apartment occupancy in Denver dipped slightly early last year. Lennar announced this week that it will break ground next year on two 17-story apartment buildings in the Golden Triangle neighborhood, adding another 600 units. ‘We don’t see the same supply numbers coming in the next couple years,’ Johnson said. ‘Construction costs have gone up so much relative to rents. I think we’re in a period where we are going to see starts slow down.’”

The Dallas Morning News in Texas. “Good news for Dallas-Fort Worth apartment residents: Your monthly rent is growing at the lowest rate in years. But you may have to move to get the best deal. The cool-down in rent hikes is being caused by a flood of apartments hitting the market across North Texas. ‘We’ve had some really solid rent growth but now it is beginning to slow down,’ said Greg Willett, chief economist with Richardson-based RealPage.”

“The opening of thousands of D-FW rental units in the last year has put a lid on apartment rent increases in some markets and fueled a rise in concessions that landlords use to attract tenants. Willett said Dallas is on the list of U.S. rental markets where new apartment residents are getting the most freebies, amounting to about an 8 percent concession in rents. ‘You typically get one month of free rent,’ he said. ‘The two markets where we really want to give stuff away right now are Atlanta and Houston.’”

“Atlanta concessions average more than 9 percent and in Houston the giveaways amount to an 8.6 percent break in average rents, according to RealPage. What’s working against landlords and in tenants’ favor is the wave of apartments hitting the market in North Texas. With almost 31,000 units under construction, D-FW leads the nation in apartment development, ahead of the New York area and Washington, D.C., according to RealPage. ‘We will continue to deliver a lot of products for the next couple of years,’ Willett said. ‘There are a handful of places where we are really, really building a lot.’”

From WCPO in Ohio. “Downtown Cincinnati’s West Fourth Street is about to get a makeover. The Loring Group, a Blue Ash-based apartment company with more than 500 units in suburban locations, has acquired four buildings with nearly 300 units that will be renovated to compete against the rising number of high-priced apartments in Cincinnati’s urban core. Class A properties are now fetching rents above $2 but The Loring Group wants to make its units available for roughly $1.50 per square foot. ‘Not everyone can afford to live at The Banks,’ said Scott Davis, a Loring Group partner.”

From Bloomberg on New York. “Apartment landlord AvalonBay Communities Inc. is marketing a stake in roughly $1.2 billion of its Manhattan real estate, according to people with knowledge of the offering. AvalonBay is seeking a buyer for a 50 percent interest in a group of seven properties, including buildings in the Chelsea and Morningside Heights neighborhoods, said the people, who asked not to be identified. Values of U.S. apartment buildings surged to records in recent years as many Americans turned to renting following the recession and younger people put off buying homes. Growth has started to level off after prices climbed to 42 percent above the previous peak, in 2007, according to real estate research firm Green Street Advisors LLC.”

“Apartment landlords in Manhattan are contending with a flood of new supply that has limited their ability to raise rents. They’re cutting asking prices and granting tenants more breaks such as rent-free months as they struggle to keep their buildings full. The company, one of the biggest publicly traded U.S. apartment landlords, said the New York market was one of its weakest performers in the first quarter. Supply in the area ‘is expected to peak late this year and then fall off considerably in 2019,’ Chief Operating Officer Sean Breslin said on the company’s earnings call in April.”




RSS feed

125 Comments »

Comment by Ben Jones
2018-06-24 07:56:58

‘Lennar announced this week that it will break ground next year on two 17-story apartment buildings in the Golden Triangle neighborhood, adding another 600 units. ‘We don’t see the same supply numbers coming in the next couple years… I think we’re in a period where we are going to see starts slow down.’

That’s why you make the big bucks Scott.

Comment by In Colorado
2018-06-24 13:52:24

The sad thing is that he probably does make big bucks.

 
Comment by Apartment 401
2018-06-24 15:30:04

The “Golden Triangle” neighborhood in Denver as roughly defined by Lincoln, Colfax, and Speer, shares the same name as the Golden Triangle of Southeast Asia that used to supply most of the world’s heroin.

If you want heroin, you can buy it along the Cherry Creek bike path that runs along the river below Speer, or in Civic Center Park.

LOLZ

Comment by In Colorado
2018-06-24 16:19:36

So that’s why so many people attended Pride Fest a week ago!

Comment by aNYCdj
2018-06-24 16:35:54

just remember if gays took Dr Koop’s advice and became monogamous, hundreds of thousands would not have died and aids would have been a minor disease.

(Comments wont nest below this level)
Comment by rms
2018-06-24 18:07:55

A raincoat takes away the excitement.

 
 
 
 
 
Comment by Ben Jones
2018-06-24 07:59:28

‘The great thing is Battle Creek is there now.’

Today is Sunday, all day.

Comment by Taxpayers
2018-06-24 11:05:38

Dos every burn burned it’s t taxpayers w housing jesters ?

Comment by BlackSwandive
2018-06-24 11:10:06

Hitting the bottle?

 
 
 
Comment by Ben Jones
2018-06-24 08:26:55

‘NYC commercial rents are out of control’

‘We all know what it looks like. The blocks of empty storefronts, covered in graffiti, “FOR LEASE” signs in the windows for months and years on end. It’s called high-rent blight, and it’s the latest phase of a hyper-gentrification process that has been pushing small businesses out of the city as our streets are taken over by banks, corporations, and a new breed of mega-landlords.’

‘As they pull out the stops to defend the status quo, we find the same distracting and misleading notions. Let’s address a few of them one at a time.’

‘Myth one: It’s not the rent that’s killing retail, it’s the internet.’

‘This is a big one and it sounds convincing. But while it’s true that online shopping is hurting brick-and-mortar retail, skyrocketing rents and non-renewal of leases are the greater evils. Look at the western end of Bleecker St., since it gets a lot of attention as an example of how the process happens — hyper-gentrification followed by high-rent blight and total corporate takeover. In 2002, Bleecker was filled with longstanding small businesses, and rents were going for $75 per square foot.’

‘Then the luxury chains came: Marc Jacobs, Ralph Lauren, Intermix, and too many more. I walked that street every week for nearly a decade, talking to small businesspeople who told me they were pushed out by landlords who specifically wanted chain stores. (It’s not just the higher rent they want. As Bloomberg News reported in 2016, banks place a higher value on buildings with chain tenants, while devaluing those with small businesses.) To achieve this turnover, landlords refused to renew leases or they raised the rent, and they didn’t just double or triple — they went for broke. One shop that had sold Middle Eastern imports for 30 years had its rent hiked sixfold. Brooks Brothers took the space.’

‘After 25 years, Biography Bookshop’s rent increased eightfold. Marc Jacobs replaced it with their own bookshop.’

‘By 2005, rents on this stretch were up to $300 per square foot. By 2008, they jumped to $550. I heard of asking rents as high as $45,000 per month. By 2012, in the four blocks between Hudson and West Tenth St., 45 retail spaces were filled by upscale shopping mall chains. The internet didn’t do that.’

‘Then the street collapsed. The “Gold Coast” of Bleecker became a ghost town as the chains pulled up stakes. The reasons for this are complex and obscure. For one, large companies sometimes open multiple shops as “loss leaders,” so while they lose money on high rent, they attract more customers to their brand.’

‘And then some buy the storefronts outright. Such urban retail condos are a relatively new trend. Bought by mega-landlords, private-equity firms, foreign investors and others, they’re often flipped for big profits. In 2014, The Wall Street Journal reported that “the number of retail-property sales — most of them retail condos — more than tripled from 2010 to 2013,” and the value grew into the billions.’

‘Major retailers play this game, spending millions to buy storefronts that are unlikely to return to small businesspeople. The internet isn’t doing that, either. By 2017, there were 19 vacancies in the five blocks of Bleecker between Bank and Christopher.’

‘Myth two: Commercial rents are correcting and in some cases declining.’

‘In recent years, there is evidence that commercial rents have been declining somewhat, in some places, but they are not normalizing. They are not becoming affordable again for small businesses. In the Spring 2018 Manhattan Retail Report from the Real Estate Board of New York, the industry’s most powerful lobbying group, they note that retail rents are “correcting,” but correcting to what?’

“SoHo’s Broadway corridor,” they write, “saw the biggest average asking rent drop this spring compared to last year; a 27% decline to $595 psf.”

‘Can the average small business conceivably pay $595? A look at commercial listings on Bleecker today show asking rents as high as $53,000. One corner spot — occupied for 30 years by the Middle Eastern imports dealer, then by Brooks Brothers for just six, and now by nothing — is going for $714 per square foot. Rents are not coming down to levels that are healthy for the city.’

Comment by Carl Morris
2018-06-24 13:15:57

One corner spot — occupied for 30 years by the Middle Eastern imports dealer, then by Brooks Brothers for just six, and now by nothing — is going for $714 per square foot.

Sounds to me like it’s getting $0/sf.

Comment by In Colorado
2018-06-24 14:18:17

Well, they’re not gonna give it away, right? Once one rental gets discounted, a chain reaction begins and next thing you know knives are falling from the sky,.

 
 
Comment by cassiopeia
2018-06-24 14:07:32

Anecdotally, in my corner of West LA the pet shop I patronized for years closed down. The owner told me the internet was a factor, but the biggest factor was the rent (I don’t know if they were dealing with a hike or unable to renegotiate). Fast forward 18 months and the store is still empty with a “for lease” sign. A nice store with ample parking on Pico Boulevard in West LA, right next to a dry cleaners. It is a super commercial avenue with lots of mom and pop restaurants, framers, shoe repairs, music academies and such.

Comment by BlackSwandive
2018-06-24 14:35:48

That 18 months of lost rent is far more damaging to the landlord’s bottom line than a rent reduction would have been. GREED.

 
 
Comment by Oxide
2018-06-25 02:57:21

Marc Jacobs makes woman’s fashions. When did they start selling books?

 
 
Comment by b for banker
2018-06-24 08:33:09

“Representatives of Laconia Development and Realogics Sotheby’s International Realty recently announced that a planned residential tower, now under construction at 600 Wall Street in downtown Seattle, will be delivered as condominiums for sale instead of apartments for rent. It will soon deliver opportunities to own a home in a market where more than 91% of the estimated 30,000 multi-family housing units added to downtown Seattle during the current decade were developed for rent.”

The artist rendition is the most amazing piece of artwork. I go by the lot at least 3 times a week. It is a tiny (tiny, tiny) lot. i have not clue how they will even get a loading dock worked in.

I mean i understand this happening in NYC or downtown London - but this is crazy for Seattle

Comment by Ben Jones
2018-06-24 08:40:18

‘Dean Jones believes renters are increasingly positioning themselves for capital appreciation, mortgage interest deductions and attainable home ownership options before being priced out. He notes that consumer confidence and rising home prices are key for presales, when savvy buyers can…’

Translation: our goose is cooked and we can keep getting a check for a few more months by pretending to completely change our business model. Just how old is this condo-apartment-back to condo, reversion crap?

‘CEO of Realogics Sotheby’s International Realty’

Note how exaggerated these UHS titles get. You sell airboxes Dean. Airboxes that you haven’t been able to build for over a decade.

Comment by b for banker
2018-06-24 09:00:58

Realogics Sotheby’s opened an office on the ground floor of an upscale condo building (The Vine) on 1st Avenue in Seattle. I have not been inside - but it looks fancy/expensive. There is a super attractive receptionist inside most of the time - so i always glance in as i walk by.

Comment by rms
2018-06-24 10:12:02

“There is a super attractive receptionist inside…”

I used to be a journeyman window cleaner many years ago… you could tell how well a company is doing by the cars in the parking lot, the eye candy receptionists and the five gallon water coolers on each floor. The first sign of trouble was the water coolers going away.

(Comments wont nest below this level)
Comment by rms
2018-06-24 10:40:24

“…is doing…”

was doing

 
Comment by aNYCdj
2018-06-24 10:54:11

eye candy receptionists

That is the sign of a Failing business…….you want a well qualified person up front not an cute airhead for a thriving business

 
Comment by rms
2018-06-24 11:20:33

Not sure where you have worked, but I can tell you flat out that a well qualified person won’t sit up front.

“For accounting, please press #2,” virtual receptionist systems are everywhere these days. When you have the profits there’s a real body or two up front. Besides, who do you think goes on the cutie pie weekend with the boss?

 
Comment by steadykat
2018-06-24 13:12:40

“The first sign of trouble was the water coolers going away”.

I once worked at one of the biggest bicycle shops in SoCal. Owner had the world on a string but over time bad decisions, higher overhead and building a newer, badass shop in an area far from the original beach location took a financial toll.

Oakley built one of their very first custom display cases for the new location because we sold large amounts of their product and they loved the shop. The display was huge, painted and trimmed to look perfect as it was custom fitted in the middle of the sales counters in a prime area at the shop. Eventually the financial problems overtook the owner’s ability to pay the bills and Oakley came in one day and removed their display.

Employees knew the company was in some turmoil. However, watching the Oakley guys coming in and breaking up the display and then taking it away was quite a shock for everyone. The massive hole it left on the sales floor put an exclamation point on the problem. I moved on to another job as soon as I could find one.

It took another two years before the business went poof! Still many of my friends, in both the offices and on the sales floor, continued working at that shop till the end with the belief that everything was going to turn out fine. Many didn’t even receive their final checks.

 
Comment by In Colorado
2018-06-24 13:58:57

Not sure where you have worked, but I can tell you flat out that a well qualified person won’t sit up front.

Agreed. When there’s money to burn, the receptionist is pure eye candy. When times are tough, the reception is empty and there’s an intercom phone you can use to call whoever you came to see.

The qualified people who do real work are upstairs in the offices.

 
Comment by GreenEggsAndSpam
2018-06-24 15:18:24

I tell the young guys watch the coffee. When times are good the office will get the fancy imported stuff from some remote country you’ve never heard of and all the soda they can chug (diabetes, get your diabetes!). Then when things get lean they switch to the bland stuff in cans and put in a soda machine.

I dont drink either so I see it as a benefit I dont get which pizzes me off. But then I wont get the “benefit” of being hooked up to a dialysis machine in the future either.

 
Comment by Neuromance
2018-06-24 17:20:49

GreenEggsAndSpam: I tell the young guys watch the coffee. When times are good the office will get the fancy imported stuff from some remote country you’ve never heard of and all the soda they can chug (diabetes, get your diabetes!). Then when things get lean they switch to the bland stuff in cans and put in a soda machine.

Or when a conglomerate comes in and buys your company, and the incoming cashflow has to now pay for another layer of (very hungry) management.

 
Comment by Montana
2018-06-24 18:12:06

I can remember when the experts assured us that diabetes wasn’t caused by too much sugar.

That was probably just spin to protect people’s feelz.

 
 
Comment by MGSpiffy
2018-06-24 14:45:18

I’ve worked in and been through soooo many buildings. No one will ever put it on paper, but being easy on the eyes is more often than not a requirement to getting hired for the position.

In a number of cases that I’ve seen over the years, the ‘attractive receptionist’ is in husband hunting mode and looking for access/attention from the most well off men working there. She’ll laugh off the attentions from everyone else. Occupational hazards when you’re trying for ROI when chasing in youth and beauty.

Even if that’s not the case, turnover will be high.

(Comments wont nest below this level)
 
 
Comment by Mafia Blocks
2018-06-24 10:11:26

“Note how exaggerated these UHS titles get”

Unprofessional, unethical, untrustworthy, incapable and typically iron and crime the magnet.

Comment by Apartment 401
2018-06-24 15:34:35

Realtors are liars.

(Comments wont nest below this level)
 
Comment by Oxide
2018-06-25 03:32:40

It’s the same for college degrees. One friend has some long-winded title for a masters in education, something like “instruction and curriculum for early childhood.” My difficult (for me) STEM degree is one measley word.

(Comments wont nest below this level)
 
 
 
Comment by MGSpiffy
2018-06-24 09:52:29

The artist rendition is the most amazing piece of artwork. I go by the lot at least 3 times a week. It is a tiny (tiny, tiny) lot. i have not clue how they will even get a loading dock worked in.

I mean i understand this happening in NYC or downtown London - but this is crazy for Seattle

This is the same development I was savaging the other day. I’m down there often enough - had lunch in the little pizza place directly across from that lot (attached to Skye) just last Saturday.

Thin enough to be a giant toothpick, and the article is vague on the specific unit prices, but we’re looking at up to nearly $1500 a sq ft for a small 2-bedroom, or a tiny bargain at $1100 +/- 100 sq/ft for a “urban 1 bedroom” which is actually a studio and not technically legal to call a “1 bedroom” (hence the made up weasel name). A couple will have “special introductory” pricing at $900-950 sq ft.

They do remind everyone what happens with condo fees if the entire building doesn’t sell out, right?

Comment by Ol'Bubba
2018-06-24 10:16:41

“They do remind everyone what happens with condo fees if the entire building doesn’t sell out, right?”

They bring out the Gimp?

Comment by rms
2018-06-24 10:47:17

“They bring out the Gimp?”

Hehe… just saw ‘em on the subway!
https://imgur.com/a/tCf6aKI

(Comments wont nest below this level)
 
Comment by MGSpiffy
2018-06-24 17:24:33

Ha! Wouldn’t that be a sight!

Usually, the condo HOA fees are based on 100% assumed occupancy. Any shortfall due to unsold units has to be made up by the owners of the units that were sold. If in a couple years when the tower is completed there’s a full on bubble popping going on, a lot of units can sit unsold for years.

Ben, didn’t you post some articles back during last decade’s bubble about half+ empty condo towers in Florida, and the owners of the units occupied getting stuck with huge bill for maintenance, etc?

(Comments wont nest below this level)
 
 
 
 
Comment by Ben Jones
2018-06-24 08:35:49

‘Last year was a record year for student housing financing for the government sponsored entities (GSEs) Fannie Mae and Freddie Mac. Together they funded a total of more than $5 billion in student housing volume in 2017′

A record, just as prices have gotten into ludicrous zone and the oversupply is obvious. What a surprise! Where would this country be if these unaccountable leaches weren’t dishing out billion$ for overpriced, luxury student airboxes?

Comment by Professor 🐻
2018-06-24 09:01:54

Just in time for the new online / distance learning model of college education to severely undercut demand for on campus housing. (Case in point: My daughter was among the first generation of college students to complete a substantial portion of her college course requirements while living at home and working nearby.)

Comment by Ben Jones
2018-06-24 09:09:23

April 19, 2018

The Glut Has Indeed Come To Pass

From Seven Days Vermont. “The granite countertops, sparkling appliances and panoramic lake views look like they belong in a posh condo development. Instead these amenities enhance a new six-story, off-campus apartment building that Champlain College is leasing to undergraduates in Burlington. The newly constructed units are helping to finally cool the long-overheated student rental market. More than 2,000 units are in the pipeline. In response, some landlords are cutting rents. Others are waiving deposits and aggressively marketing by doling out free pizza and Red Bull to student renters who aren’t used to being wooed.”

“‘The competition among landlords is markedly increased,’ said Rick Sharp, a longtime Burlington investment-property owner. This spring, for the first time in roughly 20 years, he reduced rents in an effort to find tenants for a pair of four-bedroom apartments. This year, Sharp got no takers from ads on Craigslist. He dropped the rent from $2,800 to $2,700 a month, but still has not found tenants. ‘We may have to go to $2,600,’ he said.”

“Mayor Miro Weinberger, who has pushed for new housing downtown, hails the construction. Weinberger finds the increasing vacancy rate and anecdotes of discounted rents encouraging. ‘That sounds to me like the early stages of a market reconciling, kind of recalibrating to deal with the fact that there’s substantial amounts of new supply,’ Weinberger said.”

http://thehousingbubbleblog.com/?p=10407

This is where the crow comes in for certain posters:

‘for the first time in roughly 20 years, he reduced rents’

Recall the lux apartments in NYC that were cheaper than non-lux? That was over a year ago.

Comment by BlackSwandive
2018-06-24 11:20:15

It’s going to be a renter’s market for years, maybe even a decade or more.

(Comments wont nest below this level)
 
Comment by BlackSwandive
2018-06-24 11:31:09

“This year, Sharp got no takers from ads on Craigslist. He dropped the rent from $2,800 to $2,700 a month, but still has not found tenants. ‘We may have to go to $2,600,’ he said.””

Nothing decimates the bottom line worse than vacancies for landlords. A simple one month vacancy can easily put them in the red for the year on that unit. Yet, a lot of these incompetents will follow the market down with chintzy price reductions which are too little, too late.

As an example, this guy could have dropped the rent to $2,500 and maybe got a tenant in there right away. If he only lost 2 weeks rent by doing that, he would be out the $3,600 difference over the course of 12 months ($2,500 per month vs $2,800 per month) and the roughly $1,250 for the two week vacancy for a total of $4,850.

Instead, he’ll probably be vacant 2+ months with no takers, then he’ll eventually drop it to $2,500 and get a tenant. In that scenario, he’ll be out the $3,600 + $5,000 for a total of $8,600. The losses add up QUICK.

(Comments wont nest below this level)
 
Comment by MacBeth
2018-06-24 14:36:31

WOW - I can’t imagine being a student and paying $600+ monthly for the joy of living with three others who also are paying that amount.

I find it incredible that anyone would ever pay that amount.

The stupidity of it all.

(Comments wont nest below this level)
Comment by Apartment 401
2018-06-24 15:40:23

Whilst a student at Football Factory State University I paid $131.25 a month for a room in a 4 bedroom duplex ($525 split 4 ways) and later $210 a month for a 3 bedroom ($420 split in half) with the middle room vacant, used for storage and playing guitars…

 
Comment by rms
2018-06-24 18:21:38

“I find it incredible that anyone would ever pay that amount.”

As a “full-ride” parent I can assure you that I have little choice in the matter, and the schools (a business) know it.

 
 
 
Comment by aNYCdj
2018-06-24 10:58:45

But there are some of us who love to get out of the house instead of more hours on the computer doing homework

Comment by In Colorado
2018-06-24 14:13:59

You’re gonna do your homework on a computer either way. Today’s kids take class notes on laptops. It’s almost hilarious: the prof lectures against the rat-a-tat-tat of all the students pounding on their keyboards.

As for getting out of the house, online makes it easier as you can attend the class (which is recorded) on your own schedule. You don’t have to drive to school, find a place to park, run across the campus to your class, then kill an hour or two waiting for the next class to begin, etc.

The down side is that watching a recorded class can be a bit dry. You can’t raise your hand to ask a question, you email the prof or more likely the T/A instead.

(Comments wont nest below this level)
 
 
Comment by Oxide
2018-06-24 13:31:18

And also lots of kids taking AP level classes to skip a semester or two of classes. That adds up too.

Comment by In Colorado
2018-06-24 14:16:21

My kids took tons of AP classes in high school. It still took them four years to complete their programs, though their final year as a bit sparse, schedule wise.

(Comments wont nest below this level)
 
 
 
 
Comment by Ben Jones
2018-06-24 09:03:31

‘Values of U.S. apartment buildings surged to records in recent years…Growth has started to level off after prices climbed to 42 percent above the previous peak in 2007′

‘Is the real estate double bubble back?’

‘Jul 24, 2017′

Average U.S. commercial real estate prices are now far over their 2007 bubble peak, about 22 percent higher than they were in the excesses of a decade ago, just before their last big crash. In inflation-adjusted terms, they are also well over their bubble peak, by about 6 percent.’

‘In the wake of the bubble, the Federal Reserve set out to create renewed asset-price inflation. It certainly succeeded with commercial real estate – a sector often at the center of financial booms and busts.’

‘Commercial real estate prices dropped like a rock after 2007, far more than did house prices, falling on average 40 percent to their trough in 2010. Since then, the asset price inflation has been dramatic: up more than 100 percent from the bottom. In inflation-adjusted terms, they are up 83 percent.’

‘This remarkable price history is shown in Graph 1.’

These graphs say it all.

Comment by b
2018-06-25 06:57:18

The dam will break at sometime.

https://www.seattletimes.com/business/real-estate/free-amazon-echo-2-months-free-rent-2500-gift-cards-seattle-apartment-glut-gives-renters-freebies/

“A review of online apartment ads last week found 157 different apartment buildings in the city of Seattle offering significant deals for anyone willing to sign a long-term lease — and that was just for public ads posted in one 24-hour span. There were dozens more specials on offer in the suburbs.

Most of the freebies were in newer buildings that must fill up dozens or even hundreds of new apartments at the same time — including some buildings that haven’t even opened yet — but there were plenty of handouts at older buildings, as well.

The most common “concession,” as such incentives are known in the industry, was free rent — offered at 112 different buildings in Seattle. The average was a free month, but the offers ranged from two weeks to two months.”

 
 
Comment by b for banker
2018-06-24 09:29:12

Someone a couple of days ago mentioned looking for the British tv show “Cant pay well take it away” on youtube.

Unfortunately, I have probably spent 6 hours in the last 2 days looking at this. The collateral damage from the central banks, the real estate price runs up - is just horrific

Comment by Professor 🐻
2018-06-24 09:34:54

“In the wake of the bubble, the Federal Reserve set out to create renewed asset-price inflation.”

Good to see that this information did not somehow get swept under the rug of history.

It remains to be seen whether central bank engineered asset price inflation is sustainable.

Comment by Neuromance
2018-06-24 17:51:53

Here’s why they do it: https://miltonfriedman.hoover.org/objects/56962/why-money-matters?ctx=fc48b406-12e7-4c03-89cd-0dc5d6eedf48&idx=7 (click image at top of page to read brief PDF essay)

Friedman says increasing the money supply increases the stock market and national income. Of course it increases the prices of other assets too. And I have to wonder about their measure of national income. Certainly it’s an aggregate value.

This does certainly reflect the experience of the past 10 years. Boosting asset prices has side effects and is very much a trickle-down policy. No mention of debt in that essay and the policy’s impact on that.

I think the side effects of the policy they’ll find are:
• It increases debt and is deflationary.
• It sparks real estate and other asset bubbles.
• It reduces labor market mobility.
• It ossifies an economy as the economy grows around the source of money - central bank pumping money into the financial sector - instead of technological and engineering improvements which are the source of productivity and standard of living improvements.
• It breeds populism as inequality increases due to wealth effects, and due to economic ossification.

Also, if the supply of money represents the price (price is a “desirability rating” measured in money) of everything in the economy, and that money supply increases and is soaked up in asset price increases while other prices remain relatively stable - inflation at around 2% (another central bank engineered transfer from savers to debtors), and those asset prices went up due to a gold rush mentality and people wish to realize gains - bubble aftermath - that could result in a disorderly reallocation of purchasing power.

If the central bank’s unspoken, de facto mandate is to protect the financial sector, and a central bank has the ability to extract purchasing power from the society and again redistribute it to the financial sector (like they’ve been doing for the past 10 years), the side effects will be reinforced, and those side effects will have side effects.

Comment by Neuromance
2018-06-24 18:30:17

Here’s a 1987 essay with the same title, by Anna J. Schwartz, Friedman’s coauthor of the bible of monetary policy (”A Monetary History of the United States” 1963 - link goes to Bernanke’s description of it as “magisterial”) : http://www.nber.org/chapters/c7501.pdf

I guess my takeaway is that it’s important to look at data, but also realize that one or two pieces of information are specific weather phenomena in an atmosphere. Threads in a quilt.

The other takeaway is the importance of understanding the mindset and philosophy of central bankers.

(Comments wont nest below this level)
 
Comment by rms
2018-06-24 19:26:42

In these circles it likely difficult to operate with a lone dissenting opinion despite being at the top. Hence, “group-think” become the reality in these situations. Privately, they all know that the blue collar ranks who have no say in the matter will suffer the most.

(Comments wont nest below this level)
 
 
 
 
Comment by Professor 🐻
2018-06-24 09:46:24

I’m skimming a San Diego Community Almanac that recently came with our dead tree subscription to the San Diego Union Tribune. It lists median household income and median home price for different San Diego communities. In most cases, the home price to income ratio is around a historic high level of 10 or so, compared to the long-term (pre-Bubble) norm of around six. However Rancho Santa Fe shows a median home price of $2.1M compared to median household income of $106K. Can this be right!?

Comment by MGSpiffy
2018-06-24 09:58:00

The numbers get wonky everywhere when the home values get way up there. A lot of those homes were purchased some time ago for nothing near those median prices, and the income reporting is distorted and missing data.

Medina, Washington supposedly has a median income of $182,308. That’s the 3000 person town, so barely over a thousand households - maybe - where Bill Gates and Jeff Bezos live along with a good number of 9-figure+ net worth individuals.

Comment by Professor 🐻
2018-06-24 10:24:53

Good point about price distortion over time. However, one of the selling points of the median as a measure of central tendency is robustness to outliers. A Bill Gates or Jeff Bezos at the top end of the distribution does not move the median; by contrast, the mean (arithmetic average) can be significantly influenced by large outliers.

Comment by MGSpiffy
2018-06-24 17:46:28

Then I’ll chalk it up not bothering to check which is which - though I still think there are holes in the income reporting methodology.

(Comments wont nest below this level)
Comment by Professor 🐻
2018-06-24 18:03:11

Another issue is that a lot of Rancho Santa Fe residents may be too wealthy to work. If some households have so much accumulated wealth that they don’t need an income, that could skew the statistics considerably.

 
 
 
 
Comment by Josh
2018-06-24 11:28:24

Rancho Santa Fe, Solana Beach, Encinitas, really all San Diego coastal is this way. I can’t for the life of me figure out how the median income in these areas affords the median home price.

Comment by In Colorado
2018-06-24 14:05:45

It’s like McSpiffy said, most of the current owners either bought when it was much cheaper or they had plenty of equity in the previous house.

We stayed at an AirBnB in La Jolla a few months ago. According to zillow the property is worth $5M. The current owners bought it in the late 70’s for something like 200K.

Comment by MIke in Carlsbad
2018-06-24 22:05:09

Met a guy at the Cardiff (Encinitas) doggie street fair who said hsi bungalow he bought in 1986 for under $100,000 is now worth $2 million. He said its only 980 sq ft. He would love to sell but where would he go that is as nice as Cardiff.

My parents also rented a 1960’s home in Rancho Santa Fe when I was in high school and the owners offered to sell it to them for $700,000 in 1997, they declined saying it was not worth it. That same home today is almost $3 million. We had a pool, stables, tennis court and acres in RSF! We look back as one of the worst decisions ever made.

Also I live in Carlsbad and know many parents who own one or two homes now worth $1 million dollars, nothing special at all. All purchased in the 90’s before the Carlsbad was anything more than mostly farmland and motorcycle tracks/trails. None of these people ever had high paying jobs, very blue collar like most of Encinitas in the 90’s, now look at it. Totally bonkers.

(Comments wont nest below this level)
 
 
 
 
Comment by Ben Jones
2018-06-24 10:28:50

‘The metro area is expected to see 10,000 to 12,000 new apartments delivered this year, according to the Apartment Association of Metro Denver…The cool-down in rent hikes is being caused by a flood of apartments hitting the market across North Texas. Willett said Dallas is on the list of U.S. rental markets where new apartment residents are getting the most freebies, amounting to about an 8 percent concession in rents. ‘You typically get one month of free rent,’ he said. ‘The two markets where we really want to give stuff away right now are Atlanta and Houston.’

‘What’s working against landlords and in tenants’ favor is the wave of apartments hitting the market in North Texas. With almost 31,000 units under construction, D-FW leads the nation in apartment development, ahead of the New York area and Washington, D.C., according to RealPage. ‘We will continue to deliver a lot of products for the next couple of years,’ Willett said. ‘There are a handful of places where we are really, really building a lot.’

Nothing but crickets from the Houston Chronicle and the Atlanta papers. Dallas will be toast. Austin is already there.

Comment by Apartment 401
2018-06-24 15:49:12

Denver is pretty much over. I left a contractor that built nothing but new multi-family “luxury” units because of this.

Portlandia — It’s Over:

https://www.youtube.com/watch?v=LR0S50G4DqA

Comment by In Colorado
2018-06-24 16:25:34

You’re afraid you might not get paid?

 
 
 
Comment by Mortgage Watch
2018-06-24 10:38:43

Austin, TX 78759 Housing Prices Crater 13% YOY As Housing Depreciation Ravages Homeowners Nationwide

https://www.zillow.com/austin-tx-78759/home-values/

*Select price from drop-down menu on first chart

 
Comment by jeff
2018-06-24 11:24:33

Association removes Laura Ingalls Wilder’s name from award

Associated Press
2 hours ago

CHICAGO – A division of the American Library Association has voted to remove Laura Ingalls Wilder’s name from a major children’s book award over concerns with how the early-to-mid 20th century author portrayed blacks and Native Americans.

The Association for Library Service to Children’s board made the unanimous decision Saturday at a meeting in New Orleans. The name has been changed to the Children’s Literature Legacy Award.

The association says the work of Wilder — best known for her “Little House on the Prairie” novels — “includes expressions of stereotypical attitudes inconsistent with ALSC’s core values.”

http://www.foxnews.com/us/2018/06/24/association-removes-laura-ingalls-wilders-name-from-award.html

Comment by In Colorado
2018-06-24 14:00:38

Has the TV show been consigned to the memory hole yet?

 
Comment by MGSpiffy
2018-06-24 14:47:01

Pretty soon most of human history will be off limits.

 
Comment by rms
2018-06-24 19:39:06

From the article’s comments: “A new civil war is brewing…”

Comment by BlackSwandive
2018-06-24 21:00:02

“A new civil war is brewing…”

I’m starting to see that comment a lot lately.

Comment by Carl Morris
2018-06-25 10:05:56

I can feel it every time I read my facebook feed lately. The left keeps screaming louder and louder and the right just keeps getting quieter and quieter and not even bothering to discuss their latest ammo purchases in public. And that’s just my family.

(Comments wont nest below this level)
 
 
Comment by Boo Randy
2018-06-25 05:43:50

From the blog “taxicab depressions” - one passenger in particular, a retired military officer, made a particular impression on the cabbie:

“Wheeler got quiet for a few moments, and then he said something that I will never, ever forget.

“These people are playing with matches… I don’t think they understand the scope and scale of the wildfire they are flirting with. They are f**king around with a civil war that could last a decade and cause millions of deaths…

http://taxicabdepressions.com/?p=1193

 
 
 
Comment by Boo Randy
Comment by BlackSwandive
2018-06-24 13:35:28

And then a massive $400+ move up over $6,000 again - a “key level.” LMFAO. This stuff can’t go to $0 fast enough.

 
Comment by Boo Randy
2018-06-24 15:36:41

The delusion in these Bitcoin permabulls is even stronger than in the “real estate only goes up!” true believers.

https://www.cnbc.com/2018/06/22/bitcoin-is-not-dead-says-crypto-trader-brian-kelly.html

Comment by BlackSwandive
2018-06-24 16:49:06

Wow, one of the “Fast Money” regulars no less. Wall St. is neck deep in this scam. There is no scummier industry.

 
 
Comment by Professor 🐻
2018-06-24 16:50:51

Ha ha…are you gonna dump your cryptofund and cut your losses, or HODL your cryptobubble collapse
all the way down to zero?

Cover Story
The Emperor’s New Coins: How Initial Coin Offerings Fueled A $100B Crypto Bubble
Trending Now
Digital Money #​MarketMoves
Jun 23, 2018 @ 11:43 AM
Bitcoin Prices Extend Losses, Hit New 2018 Low
Charles Bovaird, Contributor
I am a financial writer and consultant who focuses on investments.
Bitcoin prices reached a new 2018 low. (Photo by Chesnot/Getty Images)

https://www.forbes.com/sites/cbovaird/2018/06/23/bitcoin-prices-extend-losses-hit-new-2018-low/#2f0d32701922

 
Comment by Professor 🐻
2018-06-24 19:30:59

Dumb question of the day: Is Bitcoin’s collapse the canary in the coalmine for a plethora of other bubbles about to implode, or is Bitcoin decoupled?

Comment by oxide
2018-06-25 04:22:08

Hmmm, good question. My guess is that Bitcoin is decoupled in the sense that they certainly can’t ask for a bailout when they lose their shirts.

On the other hand, I can see the bankers losing their shirts on Bitcoin, deliberately pitching into a housing crisis, begging for a housing bailout “for the children,” and then using the housing bailout money to fill the hole dug by Bitcoin. Cheating, sure. After all, they’re a bank.

Comment by Professor 🐻
2018-06-25 08:10:29

What I was getting at is whether the Bitcoin collapse is an early warning sign of correlated collapse in other overvalued risk assets (stocks, bonds, housing, etc.) due to the Fed winding down its extraordinary accommodation program.

Seems plausible, no?

(Comments wont nest below this level)
Comment by Carl Morris
2018-06-25 10:19:35

To me it seems plausible that eventually Bitcoin will be the same as pets.com for a new generation.

 
 
 
 
Comment by CryptoNick
2018-06-24 20:13:07

Any chance Bitcoin will drop below $6000 any time soon? Oh wait!

Digital Money #​MarketMoves
Jun 24, 2018 @ 04:29 PM
Bitcoin Prices Continue To Decline, Hitting Fresh 2018 Low
Charles Bovaird, Contributor
I am a financial writer and consultant who focuses on investments.

Bitcoin prices dropped today, hitting their lowest point this year. Shutterstock

Bitcoin prices continued to decline today, falling below $5,800 and reaching a new low for the year.

The digital currency dropped to as little as $5,785.43 by 16:00 UTC (12:00 p.m. EST), according to the CoinDesk Bitcoin Price Index (BPI).

At this point, Bitcoin was down roughly 5.3% over the last 24 hours and was trading at its lowest since November 2017, additional BPI figures show.

In addition, the cryptocurrency had plunged more than 70% from the all-time high of $19,783.21 it reached in December.

https://www.forbes.com/sites/cbovaird/2018/06/24/bitcoin-prices-continue-to-decline-hitting-fresh-2018-low/#1886ea4ecf19

 
 
Comment by Carl Morris
2018-06-24 13:21:32

As Bloomberg News reported in 2016, banks place a higher value on buildings with chain tenants, while devaluing those with small businesses.

Which goes with the idea that none of this had anything to do with actually renting to profitable businesses, and everything to do with jacking up the valuation and then selling to a greater fool. “Banks place a higher value” means you can sell it for more.

Comment by BlackSwandive
2018-06-24 13:38:05

Every single symptom is a result of central banking shenanigans and crony capitalism. There is no free market. If there were, there wouldn’t be bloated corporations, billions in debt and feasting on illegal alien labor, controlling entire markets. Instead, you’d still have mom and pop stores and a healthy middle class.

Comment by MacBeth
2018-06-24 14:22:39

“Every single symptom is a result of central banking shenanigans and crony capitalism. There is no free market. If there were, there wouldn’t be bloated corporations, billions in debt and feasting on illegal alien labor, controlling entire markets. Instead, you’d still have mom and pop stores and a healthy middle class.”

+1,000.

And this should be our broad goal. If we were to have a truly free market, much of today’s ills - whether they be social, fiscal, monetary, political - would be significantly curtailed, mitigated or eliminated.

Nearly all policy decisions made should focus on the primary goal: individual liberty. Everything else is secondary.

Comment by BlackSwandive
2018-06-24 14:44:51

I agree, but I have lost all hope that it can or will ever happen. The moneyed special interests control everything, and they’re not about to relinquish that. The term “over my dead body” comes to mind.

Insofar as the cheap labor is concerned - I am of the opinion that if we simply cut off all benefits to illegal immigrants, and made the penalties for corporations, small businesses and the people hiring them so painfully expensive that one violation could put a company out of business, we wouldn’t need a wall.

During the last recession, they fled back to Mexico in droves once the work dried up. Most of them send money back there anyway. They’re not interested in assimilation, they are interested in making money then going back home.

(Comments wont nest below this level)
 
Comment by oxide
2018-06-25 04:30:59

I’m guess I’m a heartless cuck, but I prefer big box to “mom and pop” stores. I feel like I have a lot more “individual liberty” in a big box. Compared to the mom and pops of the 70s and 80s, big box has a nicer atmosphere, more selection, one-stop shopping, lots of stock, no pressure to buy. Now if only some of that stuff was made more locally…

(Comments wont nest below this level)
 
 
 
Comment by Mafia Blocks
2018-06-24 15:29:57

That didn’t work out so well back in 2008-2012 when real estate prices fell 40%… And that event was a mere minor correction.

 
 
Comment by Mortgage Watch
2018-06-24 14:03:19

Seattle, WA 98121 Rental Rates Crater 9% YOY As Real Estate Industry Fails To Conceal Housing Correction

https://www.zillow.com/seattle-wa-98121/home-values/

*Select price from dropdown menu on rental chart

 
Comment by Boo Randy
2018-06-24 14:57:46

China’s central bank just threw another $100 billion in printing-press liquidity at its asset bubbles and Ponzi markets to keep them levitated and hold true price discovery at bay.

Remember when fundamentals mattered and we had free markets? Neither do I.

http://www.scmp.com/news/china/policies-politics/article/2152230/chinas-central-bank-frees-funds-lenders-trade-war-looms

Comment by Boo Randy
2018-06-24 16:19:30

Wow, the PBOC is pulling out all the stops in a doomed bid to prop up their asset bubbles and Ponzi markets. Won’t be long before the rest of the central banks follow suit.

https://www.zerohedge.com/news/2018-06-24/china-cuts-reserve-ratio-unlocks-700bn-yuan-amid-rising-trade-war-mass-defaults-and

 
Comment by Boo Randy
2018-06-25 05:38:53

Oh dear. The Shanghai Composite is crashing this morning, despite the injection of $100 BILLION in financial crack cocaine by the PBOC to keep its Ponzi markets levitated.

As the addict become so strung out and terminal that conjured-out-of-thin-air “stimulus” no longer has any effect?

If so, look out below - the jig is up, central bankers.

https://www.marketwatch.com/investing/index/shcomp?countrycode=cn

 
 
Comment by Boo Randy
2018-06-24 15:50:00

Housing prices in British seaside towns starting to tumble. Won’t be long before it spreads inland.

https://www.bbc.com/news/business-44575400

 
Comment by rj not in chicago anymore
2018-06-24 15:54:07

This……

https://www.illinoispolicy.org/prime-working-age-illinoisans-leading-the-states-population-decline/

2B might want to chime in here with his mantra.

Me thinks that as this trend continues there will be a going out of business sale in the state of ILLANNOY!!!

Comment by MGSpiffy
2018-06-24 17:49:25

well, the State govt and the Chicago mob..er the local guberment.. IS doing everything they can to punish working (non govt-sector) people for being stupid enough to live there. It looks like they are being successful.

 
 
Comment by rj not in chicago anymore
2018-06-24 15:56:02

Hey - Been meaning to let y’all know that blessedly I am back at work as of two months ago - Really great to be back at it here in the Denver area. Job will take me to retirement so I am thinking I am on my last rodeo before the real fun hits.

As I tell my friends - man working is great but it just gets in the way of my fun!!!

Blessings.
Rj

Comment by Professor 🐻
2018-06-24 16:55:43

Congrats on landing on your feet in a new town!

PS I had to drive in Chiraq a couple of weeks ago. Traffic there puts LA’S to shame.

 
Comment by OneAgainstMany
2018-06-24 19:10:11

As I tell my friends - man working is great but it just gets in the way of my fun!!!

I asked a travel nurse as my hospital how she enjoyed travel nursing and she replied, “Well, I love traveling, but I could do without the nursing part.”

 
Comment by rms
2018-06-24 19:44:30

“Really great to be back at it here in the Denver area.”

+1 I’m currently looking too.

 
 
Comment by Boo Randy
2018-06-24 16:15:01

Definition of irony: the “bank for central banks” - the BIS - is warning that the Keynesian fraudsters at the central banks are creating systemic risks with their facilitation of unsustainable levels of debt.

Gee, no kidding. This must be why the suits at the BIS get paid the big bucks.

http://www.businessinsider.com/debt-trap-creates-deeper-prolonged-recession-risk-bank-for-international-settlements-says-2018-6

Comment by MGSpiffy
2018-06-24 17:50:30

Number of HBB posters surprised, even a little, by this: 0

 
Comment by Professor 🐻
2018-06-24 22:27:31

It turns out that making money hand over fist in a rigged game leads to amnesia!

The Financial Times
Andrew Hill
Amnesia dooms bankers to repeat their mistakes
Institutional memory has faded since the 2007 crisis

 
 
Comment by Boo Randy
2018-06-24 16:31:05

Australia and New Zealand experiencing soaring homelessness due to insane home prices. Heckova job, central bankers.

https://www.nytimes.com/2018/06/22/world/australia/new-zealand-homeless.html

Comment by BlackSwandive
2018-06-24 17:01:18

The sheeple are starting to wake up and realize what’s been going on.

 
 
Comment by Professor 🐻
2018-06-24 16:58:25

Economics
Too Many of America’s Smartest Waste Their Talents
The wrong incentives lead lots of top students into finance or entrenched industries.
by Noah Smith
June 19, 2018, 4:00 AM PDT

 
Comment by Boo Randy
2018-06-24 17:55:11

Police and hired thugs cracking down on protests by Chinese military veterans. Odd, I don’t recall the MSM mentioning anything about this.

http://www.scmp.com/news/china/policies-politics/article/2152247/chinese-military-veterans-rally-better-welfare-ends

 
Comment by Mortgage Watch
2018-06-24 17:55:22

Tampa, FL (hunters green) Housing Prices Crater 9% YOY As Global Land Prices Plummet

https://www.zillow.com/hunters-green-tampa-fl/home-values/

*Select price from dropdown menu on first chart

 
Comment by aNYCdj
2018-06-24 17:58:08

Hey guyz looking thru an old HD found some interesting things i bookmarked long ago

BUSINESS 07/03/2010 05:12 am ET Updated May 25, 2011
Greenspan Wanted Housing-Bubble Dissent Kept Secret

https://www.huffingtonpost.com/2010/05/03/greenspan-wanted-housing_n_560965.html

Comment by Neuromance
2018-06-24 18:36:08

The central bank plays poker against the people and the financial sector plays poker against the central bank, but the central bank is trying to help the financial sector win.

 
 
Comment by Boo Randy
2018-06-24 18:02:43

Nationalists and populists in Italy are throwing a monkey wrench into Merkel’s plan to flood Europe with more refugees and asylum (benefits) seekers. What happens when these same populists and nationalists start putting their own sovereign countries and people above the demands of the banksters? The first sovereign default Among the PIIGS is going to mean Game Over for the ECB’s can-kicking.

https://www.marketwatch.com/story/eu-leaders-fail-to-reach-immigration-deal-in-setback-for-merkel-2018-06-24

 
Comment by Mortgage Watch
2018-06-24 18:44:00

Arlington, VA Housing Prices Crater 14% YOY As Housing Correction Ravages NoVA/DC Homeowners

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

 
Comment by Neuromance
2018-06-24 18:56:31

Everyone gets a Federal Reserve bank account? I have no idea about the implications of this - a big one is that banks would have to compete with the Federal Reserve for deposits - but instead of using wealth effects to generate economic activity, it could more directly target the average person’s wealth. Perhaps it would move the central bank away from stoking bubbles: https://newrepublic.com/article/148998/give-everyone-government-bank-accounts

Back in the day, people could use the Post Office as a bank, so it’s not a totally new concept: https://about.usps.com/publications/pub100/pub100_025.htm

Comment by OneAgainstMany
2018-06-24 19:29:14

The Swiss recently voted on a similar referendum (it didn’t pass):

http://media.economist.com/news/finance-and-economics/21743677-switzerland-votes-vollgeld-referendum-way-money-created

Bernie Sanders was in favor of offering basic banking services via the post office. Many other countries do this.

Comment by tresho
2018-06-25 06:38:02

Bernie Sanders was in favor of offering basic banking services via the post office. Many other countries do this.
That makes sense. However, I suspect the mainstream banks are not at all in favor of this.

Comment by OneAgainstMany
2018-06-25 07:40:02

Especially not the check cashing places with their extortionary fees.

(Comments wont nest below this level)
 
 
 
 
Comment by Professor 🐻
2018-06-24 22:13:54

R u ready for tariff-driven inflation?

 
Comment by Professor 🐻
2018-06-25 02:24:39

Another day, another triple-digit drop in Dow futures further into negative territory for 2018…

 
Comment by jeff
2018-06-25 03:43:38

The Cloward-Piven Strategy marches on at the Southern Border in the name of the children.

“You never want a serious crisis to go to waste. And what I mean by that is it’s an opportunity to do things you think you could not do before…”

https://www.zerohedge.com/news/2014-07-03/cloward-piven-strategy-being-used-destroy-america

 
Comment by Boo Randy
2018-06-25 05:50:03

Italian bonds are tumbling, meaning the Eurozone is back in “unfixed” territory. Oh dear….

Italy and Spain are too big to be bailed out. If Italy’s new populist-nationalist leaders tell the ECB and the banksters to go pound sand, it’s game over for Draghi’s “pretend and extend.” When one central banker Ponzi market crashes, they all will. And since they’ve already thrown some 20 trillion in printing-press “stimulus” at their favored banksters to juice up their Ponzi markets and asset bubbles, they’re out of ammunition now that the long-deferred financial reckoning day is slouching closer.

https://www.cnbc.com/bonds-italy-treasurys/

 
Comment by Boo Randy
2018-06-25 06:09:45

Chinese IPOs, which usually soar as the mega-gamblers rush in to “invest” their Yellen Bux, are now falling flat. Oh dear….

http://www.scmp.com/business/companies/article/2152400/hong-kong-retail-investors-give-xiaomis-ipo-cold-shoulder-put

 
Comment by Boo Randy
2018-06-25 06:35:45

More blue-staters getting ready to infest the red states, thanks to the Housing Bubble.

https://www.marketwatch.com/story/why-high-real-estate-prices-could-unify-americans-2018-06-25

 
Comment by Boo Randy
2018-06-25 06:42:57

When the special snowflakes can’t pay back their student loans in our globalist-looted economy, and are caterwauling about what victims they are, be prepared to step up, taxpayers.

As always, it’s for the children….

https://www.marketwatch.com/story/struggling-student-borrowers-face-a-new-challenge-in-debt-relief-2018-06-25

Comment by rms
2018-06-25 11:44:26

Their parents should send them to a trade school if they cannot fund their child’s college tuition.

 
 
Comment by Boo Randy
2018-06-25 07:12:43

Fraudulent accounting among our corporations? I am shocked, shocked! to discover such activity going on in this establishment.

(And as usual, our captured, complicit, or criminally negligent regulators and enforcers saw nothing amiss, and no CEOs or CFOs need ever fear a perp walk).

https://www.marketwatch.com/story/investors-who-paid-attention-to-ges-accounting-saw-trouble-coming-2018-06-25

 
Name (required)
E-mail (required - never shown publicly)
URI
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Trackback responses to this post