We’re In For A Year Of Change
A report from the Toronto Star in Canada. “In one of Canada’s most expensive neighbourhoods, in hilly West Vancouver, sits a row of seemingly abandoned mansions. Not a single person can be found on the upper north side of Highview Place on a weekday midafternoon. The homes were developed by British Pacific Properties, starting in 2013. The empty houses are valued at between six and eight million dollars. The only sign of life is a robin flitting in six-foot-tall weeds. The Star knocked on the doors of the seven houses, but didn’t find anyone at home. Land titles for the homes list mailing addresses in Vancouver, West Vancouver and Richmond, B.C., while others list addresses in China.”
“A visit to two of the Vancouver mailing addresses on a Friday afternoon — a house on Vancouver’s west side and a Coal Harbour condo — failed to find the owners of the West Vancouver properties. A few doors south, a neighbour, who was not comfortable giving her name, said that in the three years she’s lived on her street, there’s never been anyone living in the row of empty Highview mansions. ‘It’s very unsightly. There are six-foot weeds in front of the property,’ she said. ‘It takes away from the vibrancy of the neighbourhood.’”
From This Is Money in the UK. “After spending four years living in a soulless apartment in a converted hotel in Abu Dhabi, Gabriel Ward was itching to return to the UK. When he stumbled across an advertisement for a block of £120,000 luxury apartments in an up-and-coming part of Manchester, it felt like the opportunity he’d been waiting for. He put down the required 80 per cent deposit, or £96,000, leaving just enough in his life savings to cover the remaining £24,000 when it was due on completion. Although it was a large sum, he only had to put down £3,000 to start with and he was reassured that he was making a smart investment.”
“But his one-bedroom flat hasn’t been built. Across the country, thousands of investors in so-called buyer-funded developments are in the same boat. Gabriel says the moment he discovered his £96,000 was lost is etched in his memory. He was sent an email by another investor who told him nearly all the money they had paid towards the homes had vanished. ‘I was recovering from six rounds of chemotherapy and had been in a very dark frame of mind because of my illness. Then all of a sudden I’m thinking: ‘So I’m going to live but now I’m completely broke. ‘I felt such shame. I’ve never had a lot of money to my name, so I’m devastated to have fallen for their appalling tactics.’”
“Administrators have pulled the plug on the Angelgate project as a hunt begins for the millions that have vanished.”
From TV 360 Nigeria. “A former representative of Nigeria to UNIDO-France, Mr Olusola Kayode, has called for the introduction of high tax regimes for vacant houses to check their proliferation in urban centres. He expressed concern about the existence of empty houses in many neighbourhoods in major towns in the country whilst many people remained homeless or lived in squalor.”
“‘There have been worrisome trends of empty houses in many neighbourhoods in Abuja in spite of the prevailing high housing deficit. When you look around there are so many houses locked up and here are people in satellite towns and slums looking for houses to live in. This, therefore, requires that policies stipulating punitive measures such as high tax regimes for vacant houses should be promulgated to check the proliferation of empty houses that tend to create artificial scarcity and high rental values.’”
From Live Mint on India. “From setting up offshore offices and organizing events to helping find tenants, luxury home builders are trying every trick in the book to boost sales, apart from offering discounts and flexi-payment schemes. Even as mid-income housing is taking off, luxury project launches fell 70% last year, said a report by property consultant Cushman & Wakefield. Tata Housing Development Co. Ltd is approaching NRIs to sell its Kolkata luxury homes costing around ₹ 3.5 crore. However, it has struggled to sell two homes priced at ₹ 1.7 crore at Thane outside Mumbai.”
“‘Everything is tough to sell today. The challenge is to get people to come for a site visit, which has dropped significantly. Buyers know they will get a 10-15% discount in this market and they may negotiate for more,’ said a person familiar with the company’s plans.”
From Property Guru on Borneo. “Real estate developers in Sabah is urging the state government to help them tackle the oversupply of completed houses, reported the Borneo Post. ‘When the market is bullish, these overhang properties will gradually be absorbed. But the number of overhang units is accumulating in the current market slowdown,’ said Sabah Housing and Real Estate Developers Association (SHAREDA) President Chew Sang Hai.”
“In fact, the proportion of unsold units – defined as those with Occupancy Certificates (OCs) that have been listed for sale for over nine months – has reached 25 percent, mainly consisting of bumiputera units.”
From ABC News on China. “Fancy villas, high-rise apartment blocks, lakes, parks and sprawling road networks: Ghost cities in China have it all. Just one crucial element is missing — the people. Built for a population that never came, about 50 of these surreal sites lay desolate across the country. But still the construction continues. These new cities are usually built in rural areas on the outskirts of existing cities. Dinny McMahon, author of China’s Great Wall of Debt, explained the driving force behind the new construction projects, seemingly built for no-one.”
“‘The phenomenon very much has been driven by the debt splurge that really kicked into gear after the global financial crisis,’ Mr McMahon said. ‘Local governments around the country tried to juice and stimulate their economies by building more infrastructure and stimulating the property market.’”
From Mansion Global on Australia. “In Sydney, the median value of houses in North Bondi fell from A$3.03 million (US$2.24 million) to A$2.62 million (US$1.94 million) between the August 2017 market peak and May this year, a drop of 13.4%. The median value of houses in the coastal suburbs of North Narrabeen, Dee Why and Elanora Heights fell by 11.8%, 11.7% and 11.4% respectively.”
“In Melbourne, the median value of houses in exclusive Canterbury fell by 19.3% from $3.18 million (US$2.35 million) in November 2017 (Melbourne’s market peaked slightly later than Sydney’s) to $2.56 million (US$1.89 million) in May this year. Armadale and Malvern median house values fell by 19.2% and 14.9%. Expensive homes in Sydney and Melbourne are undergoing a ‘downward trend in pricing,’ said Charles Tarbey, chairman of Century 21 Australia. ‘I’ve found that downward trend is continuing but in a modest fashion. It’s not a dramatic change but anybody buying in that range of A$2 million and up has the potential to negotiate. Prior to this period, that wasn’t the case.’”
“In Melbourne, auction clearance rates for the Queen’s Birthday long weekend (June 9-11) were 56% across the Century 21 network, compared to 76% on the same weekend last year. ‘That’s a 20-point difference in the space of 12 months,’ Mr. Tarbey said. ‘So it’s a big change. You now have an opportunity to make an offer rather than be forced to push yourself because you might miss out.’”
“Buyers looking at luxury apartments might also gain some attractive deals, according to Mr. Tarbey. Some apartments bought off plan when the market was booming are reaching completion and banks are refusing to accept the price tags paid for them when lending to the buyer. Some buyers are declining to settle and foregoing their deposits, forcing developers to resell or hold pre-sold apartments for better times. This phenomenon is particularly apparent in Brisbane, he says.”
“But the current situation is a stark contrast to a prolonged real estate boom that ended last year. ‘We’re in for a year of change,’ Mr. Tarbey said. ‘The top end is feeling it. If a bit more stock comes on the market, and the equity markets change [for the worse], people will start to rethink their easy purchasing activities undertaken over the last few years.’”
‘I was recovering from six rounds of chemotherapy and had been in a very dark frame of mind because of my illness. Then all of a sudden I’m thinking: ‘So I’m going to live but now I’m completely broke. ‘I felt such shame. I’ve never had a lot of money to my name, so I’m devastated to have fallen for their appalling tactics.’
Ever notice that jingle male never pipes in with his “shack gambling is the best!” when these articles show up?
‘Real estate developers in Sabah is urging the state government to help them tackle the oversupply of completed houses, reported the Borneo Post. ..the proportion of unsold units – defined as those with Occupancy Certificates (OCs) that have been listed for sale for over nine months – has reached 25 percent’
Here and there a poster will show up like yesterday: “where are you guys investing? Or do you think ALL real estate is evil?”
You haven’t a clue what this blog is about. A housing bubble isn’t about bulls and bears. I often see, “it’s not going to be so bad” comments. I don’t see how anyone could calculate that. The global QE was around $30 trillions. I’m saying that is going away. How? I don’t know and neither does anyone else, but it’s going away. You can’t print wealth. You can gin up some bubbles apparently but you can’t print wealth.
It is a simple answer. Does the investment property CASH FLOW.
Cash Flow = Rent - (PI, taxes, insurance, maintenance, upgrades, fees, fixing damage, etc. + ALL YOUR TIME)
Assume NO appreciation.
If cash flow = 3% or less then WHY DO IT? You can’t almost get that in ultra safe Treasuries with no waking up at 3AM to fix a toilet)
But…but…appreciation! I am going to be rich with someone else paying the mortgage!
++++
“where are you guys investing? Or do you think ALL real estate is evil?”
“ALL YOUR TIME”
So many real estate HODLers fail to factor in their time costs!
…..you mean like sitting in front of a computer blogging all day? THAT’S productive hours invested in…….blogging? I’d rather own a couple of rentals……
+1
I am getting my mortgage paid. Worth every minute OF MY TIME!
Cash flow and/or appreciation is only icing on the cake baby!
We’ll check back with y’all when prices are clearly tanking again.
Don’t forget opportunity costs. Just how much opportunity is lost in these empty Chinese cities? And that isn’t counting the terrible waste of resources. Oh, but we gotta have a carbon tax or we’re gonna drown in the ocean!
These freaking Chinese can’t even breath the air! Globalists are dumb-shites.
can you find a 10 year stretch where re roi was better than stocks?
2008 to 2018.
Bought a foreclosed house from BofA with an FHA loan for $395,000 and $20,000 in down payment and closing cost in 2010.
Same model just sold for $714,000. Let’s say $650,000 after selling costs. Subtract $400,000 and there is a $250,000 return over 8 years on $20,000.
That is a 35% annual compounded return over 8 years.
“Let’s say $650,000 after selling costs.”
I can ask $50,000 for my run down 10 year old Chevy pickup but where is the buyer at that price?
So it is with all depreciating assets like houses. Especially 10 year old run down houses.
Wrightsville Beach, NC Housing Prices Crater 14% YOY As Coastal Property Values Plunge
https://www.movoto.com/wrightsville-beach-nc/market-trends/
Does that mean that the rental income from your tenants exactly covered the costs of PITI and maintenance?
Housing
North Dallas, TX Housing Prices Crater 6% YOY As Wholesale Exit From Housing Accelerates
https://www.zillow.com/north-dallas-dallas-tx/home-values/
*Select price from dropdown menu on first chart
Oxy, are you asking me? “…Does that mean that the rental income from your tenants exactly covered the costs of PITI and maintenance?…”
Answer: I live in this house for $2,570/month PITI. Market rent is $3,200. So I own for less than rent. Plus at 3.25%, my principal reduction is $600/ month. My loan is now under $350,000, so there is another area of additional value for ownership.
Housing
Arcadia, CA Housing Prices Crater 22% YOY As Decades Of Mortgage Fraud Emerge In LA Area
https://www.movoto.com/arcadia-ca/market-trends/
or buy a residential REIT, at least you get out w/o paying 6%
“I’m saying that is going away. How? I don’t know and neither does anyone else, but it’s going away.”
QE unwind bagholder identification TBD.
“Ever notice that jingle male never pipes in with his “shack gambling is the best!” when these articles show up?”
There’s no time to discuss when your mortgages are resetting and rolling over.
Ooooph.
“There’s no time to discuss when your mortgages are resetting and rolling over.”
“Resetting”: Ah, such an interesting word.
😁
Rhymes with “bedwetting”.
And given that there are no 30 year fixed rate mortgages outside the US, there is going to be a lot of resetting and bedwetting in many countries.
And plenty more in this country.
My mortgages are fixed rates and 3.5% to 4.25%….thank you very much.
I do have a rental turning over. I am going over to pressure wash concrete, fix a door screen, do a little pruning and wash some windows. Current tenant moves out Saturday morning, new tenant moves in Sunday morning.
The rental market is so tight in the Sierra foothills above Sacramento that I have people waiting in line to rent houses.
Cash flow is king.
That and a dollar gets you a cup of coffee.
Bradenton Beach, FL Housing Prices Crater 10% YOY As Coastal Property Markets Grind Lower
https://www.movoto.com/bradenton-beach-fl/market-trends/
Mafiblox is implying that when fixed interest rates go up, prices will drop and you’ll lose money when you go to sell. Of course there are a lot of internal assumptions that he’s not taking into account. And I thought you were going to sell out of your properties and retire?
Time is running short to get out before the cycle turns (don’t tell our landlords!)…
I’ve sold three, another in escrow. We are selling most of them in the next few years.
The one I worked on today (for the new tenant Sunday) I am keeping because we may move into it in a few years to downsize. In the meantime, $450/month cash flow never hurts me.
Housing
Porter Ranch, CA Housing Prices Crater 10% YOY As Fraud Permeates Los Angeles Housing Market
https://www.zillow.com/porter-ranch-los-angeles-ca/home-values/
*Select price from dopdown menu on first chart
It’s going to take a crash to reveal the full extent of the systemic fraud in the financial system, carried on brazenly under the “see no evil” noses of enforcers and regulators.
https://www.theguardian.com/news/2018/jun/28/how-to-get-away-with-financial-fraud
I have been busy! And I am not a shack gambler. I invest for the long term.
“….Ever notice that jingle male never pipes in with his “shack gambling is the best!” when these articles show up?….”
I went back and looked at the 2005 Inverted Yield Curve writings! This from CNN in Dec, 2005. Sound familiar?
__________________________
No need to run and hide
So what should skittish investors do as the yield curve bounces up and down? Sit tight for now.
Market strategists see little reason to change investment strategies, particularly when it comes to investing in financial institutions and securities firms, which are most severely impacted by the movements of short- and long-term rates.
“People have been watching the yield curve for quite a while and have baked in the possibility of an inversion,” said David Easthope, analyst at Celent LLC, an independent research and consulting firm. “I don’t get the sense that there is any panic because firms have learned a lot since 2000 about being prudent.”
Unlike the heydays of the technology bubble, corporations have been more cautious about spending — in fact, many are now cash-rich as they’ve focused on solidifying their balance sheets, he said.
‘The median value of houses in the coastal suburbs of North Narrabeen, Dee Why and Elanora Heights fell by 11.8%, 11.7% and 11.4% respectively…In Melbourne, the median value of houses in exclusive Canterbury fell by 19.3% from $3.18 million (US$2.35 million) in November 2017…‘I’ve found that downward trend is continuing but in a modest fashion. It’s not a dramatic change’
Maybe you don’t own one of these shacks Charles. I’d bet your former clients think it’s dramatic. Oh well, you guys at Century 21 will give them back the commissions you made, right?
Add in 40:1 leverage - not so modest anyone
“So what does a full recourse mortgage actually mean? Holy cr@p!!!!”
It means that you hopefully hid your other assets, and well. Because your creditors will try to pick your bones clean.
‘The phenomenon very much has been driven by the debt splurge that really kicked into gear after the global financial crisis,’ Mr McMahon said. ‘Local governments around the country tried to juice and stimulate their economies by building more infrastructure and stimulating the property market.’
Again, when the final history of this event is written, the most important developments will be seen as post 2008.
When history looks back — Say in 2025 when this has shaken out.
1. The is fraud committed by hucksters/criminals - this is always around
2. There is a mania - say the Tulip bulb or South China Sea
This seems different. The author of this were the ‘experts’ in the central banks, government legislators, and big money center banks. Why didnt they think of the side consequences of their actions?
We should always at least consider the possibility that these people are farking idiots.
But I don’t think they are. They have accomplished what they set out to do, which is to preserve the wealth of the 1%ers - or whatever you want to call the moneyed special interests - at the expense of the masses.
It was all under the guise of helping J6P. But as you have posted so many times, “Little Timmy” Geithner let the truth slip from his lips, blurting out his “foam the runway” comment.
‘We estimate that they can handle ten million foreclosures, over time. This program will help foam the runway for them.’
-Timothy Geithner
This only worked because entire populations have systematically and successfully dumbed-down to the level of intelligence typically enjoyed by a mud fence.
The intelligent are an endangered species.
Opening scene from IDIOCRACY:
https://www.youtube.com/watch?v=XZde5VDAA8U
When history looks back — Say in 2025 when this has shaken out.
Or maybe we’ll be in the middle of yet another bubble
The boomer retirement wave should subside around 2028 according to the demographers although the average age will likely tic upward as medical technology improves.
That overpimped trend ended in 2006.
My own tinfoil hat theory is that this is all part of the plan to collapse the global economy - to create a situation so bad that the only apparent solution is from an entity even larger than the problem that they just created.
A new global, electronic currency will be ushered in by the World Bank to save the day! The entire world will be conquered, not by military might, but by control of the financial system.
Will Trump’s nationalism save us from the evil globalists? Stay tuned . . .
Yep, they are what I call the iNazis - international socialists. Like islam, they know they cant compete in the marketplace of ideas so they have to have complete control and suppress any dissent - why do they own virtually all the media in this country, even as most of it bleeds red ink?
They came up with screwy rail plans to go from nowhere to nowhere, green energy frauds, grifter phone apps to skirt laws as well as spy on you, health care schemes and tons of other nonsense to drive everything into bankruptcy.
“A new global, electronic currency will be ushered in…”
Correction : It’s here already!
Twitter CEO Jack Dorsey says bitcoin will eventually be the single global currency
- Dorsey told the U.K.’s Sunday Times newspaper that bitcoin would likely become the single global currency within 10 years, “but it could go faster.”
- Square’s Cash app recently started letting people buy and sell bitcoin.
Ari Levy | @levynews
Published 1:52 PM ET Sun, 25 March 2018 Updated 8:13 AM ET Mon, 26 March 2018 CNBC.com
https://www.cnbc.com/2018/03/25/bitcoin-will-eventually-be-the-single-global-currency-twitters-jack-dorsey.html
Translation: Jack Dorsey went all-in on Bitcoin.
Remember the Alamo!
Bitcoin Price Defends $6K as Traders Go Long
MARKETS
Omkar Godbole
Jun 28, 2018 at 10:00 UTC | Updated Jun 28, 2018 at 10:06 UTC
Bitcoin’s (BTC) price charts remain biased to the bears, but market positioning on a major exchange suggests a sustained break below $6,000 may remain elusive in short-term.
At press time, the leading cryptocurrency is trading at $6,100 on Bitfinex, largely unchanged on a 24-hour basis, and technically speaking, BTC remains on the defensive as discussed yesterday.
Further, the cryptocurrency markets will likely remain risk averse as the sell-off in ETH/BTC – the risk barometer of the cryptocurrency markets – is seen gathering pace in the next 24 hours.
So, going by the technicals alone, it seems safe to say that BTC is likely to find acceptance below the February low of $6,000 soon.
https://www.coindesk.com/bitcoin-price-defends-6k-as-traders-go-long/
The Great QE Unwind continues and picks up speed (worldwide)…
There is a great chart in the middle of this article of the worldwide QE end/unwind
+++++
Everyone’s Got A Plan…
Lance Roberts via RealInvestmentAdvice.com - 06/28/2018
This is a common view of much of the mainstream analysis as common threads still relatively low interest rates, corporate profitability, and low unemployment rates are set to keep the bull market running well into the foreseeable future. But much of the rally since the 2009 recessionary lows has been an influence of outside factors. Interest rates are low because of the Federal Reserve’s actions, corporate profitability is high due to share repurchases, accounting rule changes following the financial crisis, and ongoing wage suppression.
But now, all of that is beginning to change. Interest rates are rising, the yield spread is flattening, and Central Banks globally are “beginning the end” of the “Quantitative Easing” experiment. As I noted recently:
“Combine a ‘trade war’ with a Federal Reserve intent on removing monetary accommodation, both through higher rates and reduction in liquidity, and the market becomes much more exposed to an unexpected exogenous event which sparks a credit-related event. (Of course, it isn’t just the Fed, but also the BOJ and ECB.)”
http://realinvestmentadvice.com/everyones-got-a-plan/
“Everybody has a plan until they get punched in the face.”
Tyson knew what he was talking about that day.
When punched in the face bite the ear?
Apparently that was the day he got punched in the face and his plan fell apart.
Downtown Los Angeles, CA Housing Prices Crater 16% YOY As SoCal Housing Correction Accelerates Rapid Housing Depreciation
https://www.zillow.com/downtown-los-angeles-ca/home-values/
*Select price from dropdown menu on first chart
And yet Zillow still says that values in Downtown LA will increase 11% over the next year?
It’s the nature of crime.
Remember the Alamo!
Bitcoin Price Defends $6K as Traders Go Long
MARKETS
Omkar Godbole
Jun 28, 2018 at 10:00 UTC | Updated Jun 28, 2018 at 10:06 UTC
Bitcoin’s (BTC) price charts remain biased to the bears, but market positioning on a major exchange suggests a sustained break below $6,000 may remain elusive in short-term.
At press time, the leading cryptocurrency is trading at $6,100 on Bitfinex, largely unchanged on a 24-hour basis, and technically speaking, BTC remains on the defensive as discussed yesterday.
Further, the cryptocurrency markets will likely remain risk averse as the sell-off in ETH/BTC – the risk barometer of the cryptocurrency markets – is seen gathering pace in the next 24 hours.
So, going by the technicals alone, it seems safe to say that BTC is likely to find acceptance below the February low of $6,000 soon.
https://www.coindesk.com/bitcoin-price-defends-6k-as-traders-go-long/
“Bitcoin Price Defends $6K as Traders Go Long”
Uh-oh, booboo on aisle 4…
$5,873.33 Bitcoin price
−$265.93 Since yesterday (USD)
−4.33% Since yesterday (%)
https://www.coinbase.com/charts
If you blinked at the wrong moment, you could have completely missed the move down to $5000.
sponsored by
City & Business
Bitcoin price LIVE: BTC $5k SLUMP - Barclays predict ‘ROUT’ from ‘current trading levels’
BITCOIN has sunk to $5k after another overnight drop. With the Bank of England sending a clear warning to potential institutional investors yesterday, Barclays Bank have now claimed that prices will fall further and, “the rout in crypto currencies is still not finished.”
By David Dawkins
07:46, Fri, Jun 29, 2018 | UPDATED: 07:46, Fri, Jun 29, 2018
https://www.express.co.uk/finance/city/981330/Bitcoin-price-barclays-ripple-cryptocurrency-ethereum-BTC-to-USD-XRP-news
‘It may not have been the tweet heard ’round the world, but it was certainly heard—like a thunderclap—at The New York Times’ headquarters in Manhattan.’
“Kind of pisses me off that @ nytimes is still asking Who Is Ocasio-Cortez? when it should have covered her campaign,” Jill Abramson erupted on Twitter on Wednesday morning—a biting reference to the newspaper’s original headline concerning the 28-year-old socialist’s shocking Democratic primary upset, a landslide actually, over incumbent Joe Crowley in New York’s 14th Congressional District.’
‘Indeed, a quick review of the Times’ coverage of the primary race turned up a scant mention of Alexandria Ocasio-Cortez in a single news story prior to Election Night, and a few name-checks in editorials—one of which, published in the June 20 print edition, noted that she’s “a challenger [Crowley] is heavily favored to beat.”
“Missing her rise [is] akin to not seeing Trump’s win coming in 2016,” Abramson added in her tweet—an even more biting reference to the Times’ self-acknowledged failings in the paper’s reporting of the presidential campaign.’
‘In response to Abramson’s critique, Times spokeswoman Eileen Murphy told The Daily Beast: “We have enormous respect for Jill and deeply appreciate her passion.” A few hours after Abramson’s tweet, the headline phrase that pissed her off, “Who is Alexandria Ocasia-Cortez?” was changed online to “Alexandria Ocasio-Cortez: A 28-Year-Old Democratic Giant Slayer.”
‘The Times, of course, is used to reader complaints—but not to public spankings from former executive editors.’
“Alexandria Ocasio-Cortez: A 28-Year-Old Democratic Giant Slayer.”
And how could they miss this?
‘Democratic socialist Alexandria Ocasio-Cortez stunned the political world and rank-in-file Democrats by defeating incumbent Joe Crowley in Tuesday’s New York primary. The platform Ocasio-Cortez ran on was deeply progressive, calling on the abolition of Immigration and Customs Enforcement, nationalized health care, universal jobs guarantee and getting America to 100 percent green energy.’
‘However, footage reveals that Ocasio-Cortez also has associates with regressive views. Thomas Lopez-Pierre, is a known anti-Semite and racist. Lopez-Pierre has regularly used slurs against Jewish and black New Yorkers in public forums and while running for office himself.’
‘While running for office in 2017, Lopez-Pierre specifically campaigned on “protecting tenants from greedy Jewish landlords.” Lopez-Pierre’s own campaign website shows his rantings agains “Greedy Jewish Landlords.” His campaign website applauds the arrest of “Greedy Jewish Landlords” and says that “Jewish Landlords” are “punishing” black and Hispanic families.’
http://thehousingbubbleblog.com/?p=10475#comment-2667258
Could it be that the MSM is kinda clueless, ridiculously biased and generally have their heads up their backsides? Because this global real estate bubble has popped and the NYT only has to look out their window to see it.
‘Indeed, a quick review of the Times’ coverage of the primary race turned up a scant mention of Alexandria Ocasio-Cortez in a single news story prior to Election Night, and a few name-checks in editorials—one of which, published in the June 20 print edition, noted that she’s “a challenger [Crowley] is heavily favored to beat.”
Maybe they were just trying to ignore her to cut the chances she might win?
Ocasio-Cortez was not one of the Annointed Ones. Therefore she was an interloper.
Amazing how the fake legacy media missed all that.
Yet forces others that are pigmently challenged to resign or quit
About right now the MSM has suddenly discovered a US glut in apartments. I have half a dozen articles saved, including the Wall Street Journal and — Realtor.com!!
So year after year of lecturing us that rents are to the moon Alice and you better buy now, ta-da - there’s too much. Even in Seattle!
Yeah, and even in California, Denver, Dallas, Miami, Boston and Manhattan - going on 2 years now. Now that’s some relevant, timely reporting that could have saved people from making huge mistakes. But it didn’t happen. Why? Why does the media exist? To obscure, confuse, booster-ism? These puffed up “journalists” have a high opinion of themselves and their role in “society”. But I see little other than lazy blindness and REIC a$$-covering.
Maybe it’s a timeline issue, Ben. Two years ago, how many of those apartments were still in the building stages? It only became a glut after the complexes were finished, and only then did the MSM notice. And now the media is making up for lost time by saying stuff like: “there’s a glut now, but there are another 7000 scheduled to be completed by 2020…”
April 1, 2016
“The demand for apartments in Dallas-Fort Worth staggered in the first quarter of the year, with leasing velocity dropping more than a third compared with the first quarter of 2015, according to MPF Research, a division of RealPage Inc. The disappointing demand for apartments were seen throughout the country in early 2016, said RealPage Chief Economist Greg Willett. In North Texas, the first quarter showed a demand for 1,989 apartment units, which is roughly a third the absorption volume seen in the first quarter of 2015. Meanwhile, developers finished building 5,763 apartments in the initial three months of 2016.”
“‘New household just didn’t form at the pace normally supported by solid job expansion,” Willet said. ‘That slow rate of household creation likely reflects some concern about the near-term economic outlook.’”
“Parkway Corp. has carved its development niche amassing Center City property, building it up when the time is right. But it’s trying something new at the lot it owns at 20th and Arch Streets, which it is now looking to sell as undeveloped land. The shift comes amid concerns that Center City’s rising real estate values may be losing some momentum. Developers are due to complete more residential units in the area than would be filled under current growth rates, the Center City District business association said in a report.”
“That potential oversupply, combined with expected higher interest rates that would make financing projects more expensive, could conspire against the market, said Michael Silverman, a managing director at Integra Realty Resources in Philadelphia. ‘The music’s going to stop at some point,’ he said. ‘But it’s still pretty strong.’”
http://thehousingbubbleblog.com/?p=9593
March 31, 2016
The Denver Post in Colorado. “Denver’s single-family housing market, with some of the strongest home price appreciation and fastest turnover times in the country, often gets pegged as a bubble in the making. Zillow research director Krishna Rao argues that those looking for a bubble should instead focus on metro Denver’s multi-family rental market. More than 31,000 multi-family permits have been pulled the past four years, a record-setting pace. And new units are expected to keep hitting the market even though more supply means landlords are being forced to dial back on rent increases and provide heftier concessions.”
“He said oversupply will only get worse, given the long times needed to plan and complete apartments. ‘Taken together, all of this suggests that while demand so far has been sufficient to absorb those units that have already come online, it may be stretched to accommodate the tens of thousands of units builders are planning to deliver over the coming years,’ Rao said.”
The Wall Street Journal on Florida. “Miami is facing a condo bust—again. Developers have started canceling projects, slashing prices and offering incentives such as private-jet access to spur sales, an ominous echo of the housing crash that pounded South Florida especially hard. In the fourth quarter of 2015, the number of Miami Beach condo transactions declined nearly 20% from a year earlier, while inventory jumped by nearly a third, according to a report from appraisal firm Miller Samuel Inc. The median sales price slipped 6.6%, according to the report.”
“Many of the forces buffeting the Miami market are also hitting luxury markets in New York, Southern California, Australia and London. A strong U.S. dollar and weakening local currencies, dropping oil prices and global economic turbulence have crimped the buying power of foreign investors. ‘The condo market has peaked,’ said Neisen Kasdin, a real-estate development lawyer at Akerman LLP in Miami. ‘Sales velocity has slowed down considerably.’”
http://thehousingbubbleblog.com/?p=9592
Soon to be seen and heard on every streetcorner USA:
“Apartments, here! Apartments, here! Get your cheap apartments here!!”
Do I have to order my Sandinista beret or are they shipped automatically?
https://imgur.com/a/mLlj20P
Lopez-Pierre has regularly used slurs against Jewish and black New Yorkers in public forums
That Hispanics tend to be anti Jewish and anti black seems to have escaped the MSM’s attention.
Once whites have been purged from the DNC we will witness the showdown between Hispanics and Blacks for control.
“Once whites have been purged from the DNC we will witness the showdown between Hispanics and Blacks for control.”
How about the yella fellas?
Das rayciss, yo.
How about the yella fellas?
They’re considered honorary whites by the POC. They don’t count as POCs because they tend to be successful and “privileged”.
10-4, too successful same reason the victim class hate joos
Wait until gays figure out what muslims are being taught and believe about the homosexual lifestyle
Hey now, it’s fun to fly off the tops of buildings w/o a parachute!
Liberals -> The enemy (muslim) of my enemy (christians) is my friend. Good luck with that…
“Wait until gays figure out what muslims are being taught and believe about the homosexual lifestyle”
To go into bars and gun down 50+ people in cold blood? (See Orlando nightclub shooting)
‘The Times, of course, is used to reader complaints—but not to public spankings from former executive editors.’
Anyone paying good money to be spoon-fed The Narrative and DNC talking points is underwriting fake news. Such cretins should have no reasonable expectation of reading quality journalism, much less actual news or truth, in this or any other Oligopoly flagship propaganda outlet.
Bill, Hillary and Barack had an unnatural fondness for cashing checks from Wall Street, but that was never a problem for the Times. But people who actually vote kept wondering when the democrats were going to fight for them and not the big money, “globalist” donors. It turns out, it took a Donald Trump to do it. There’s going to be a lot of griping by the dems, but I have yet to read anything where they admit to themselves that their own candidates are what destroyed the party.
While Trump may not be maintaining the status quo in Washington, it is more than a stretch to say his administration is not cozy with Wall Street.
For instance, former Goldman Sachs executive Steven Mnuchin as Treasury secretary; Goldman’s president and chief operating officer, Gary Cohn, as chief economic adviser; and Goldman managing director James Donovan as (former) deputy Treasury secretary.
What is this “unnatural fondness for cashing checks” you speak of?
Everyone I know is fond of cashing checks, and it’s the most natural thing in the world.
A few hours after Abramson’s tweet, the headline phrase that pissed her off, “Who is Alexandria Ocasia-Cortez?” was changed online to “Alexandria Ocasio-Cortez: A 28-Year-Old Democratic Giant Slayer.”
Of course, the fake news purveyors of the NYT neglect to note that the giant-slaying was a case of fratricide, and a middle finger to the corrupt, compromised DNC.
The MSM doesn’t cover challengers. Period. After all, they have no chance to win.
But that contributes to a situation where we have no elections. In most places, you have a one party state — one or the other.
re vs. stocks
https://seekingalpha.com/article/4101909-stocks-vs-real-estate-one-wins?page=4
wonder how zillow flip is doing
kinda late
I can’t wait to read stories about Zilldo’s real estate flipping enterprise flopping out of the starting block.
I just got this email:
Hi Ben,
The June 2018 issue of the Housing News Report, published by ATTOM Data Solutions, illustrates the head start that so-called iBuyers Opendoor and Offerpad have on Zillow when it comes to buying homes directly from homeowners. Zillow bought its first home in May.
See below for two charts showing the trend in number of home purchases by these two real estate disrupters over the past five years, combined*. Purchases are on track to more than double in 2018 for the fourth year in a row.
*These numbers only represent purchases, not sales, by these entities, and likely are lower than the actual purchase and dollar volume given that ATTOM does not know all the different entities that the two companies may be purchasing under.
So many very, very smart people who snapped up houses like hot cakes in the Echo Bubble years are going to be utterly amazed by the effects of rate normalization on Zesstimates.
It sounds like their model is the same as those “we pay cash for houses” signs you see all over the place during the height of a real estate mania. They’re looking to scalp people.
Buy homes from people in financial difficulty, resell them to people with federally insured mortgages…
‘Fancy villas, high-rise apartment blocks, lakes, parks and sprawling road networks: Ghost cities in China have it all. Just one crucial element is missing — the people. Built for a population that never came, about 50 of these surreal sites lay desolate across the country. But still the construction continues.’
File this under un-freaking believable .
Maybe they could use all those vacant apartments to house all the refugees from the neocon wars.
Indeed, China has all that empty housing, but I don’t hear anyone complaining that they aren’t taking in refugees.
I wonder if China has its own Ben Jones with a blog pointing out all the madness, or is he/she/xi (lol) censored, allowed to only propagate the narrative with more lies?
I think we just found our solution to the LA homeless problem.
Hobos aren’t subject to tariffs yet, right?
“Just one crucial element is missing — the people.”
Uh… that’s why they call them ghost cities.
Meanwhile Hong Kong is bursting at the seams with people living in cages or 4 to a room in a tenement. Why not forcefully move these folks to the ghost cities? Don’t they have a semi-totalitarian government that could get away with stuff like that? A couple of these places would make pretty good assisted living facilities.
“Why not forcefully move these folks to the ghost cities?”
Who do you think is providing the janitorial labor?
Realtors are liars.
Arlington, VA Housing Prices Crater 14% YOY As DC Housing Market Staggers From Failing Subprime Mortgages
https://www.movoto.com/arlington-va/market-trends/
“Investors” diving headfirst into the riskiest subprime debt, no doubt confident that no matter what happens, the Fed and middle class taxpayers have their backs.
https://www.bloomberg.com/news/articles/2018-06-28/investors-dive-deeper-into-riskiest-abs-clos-in-hunt-for-yield
…coming from lurking again for anecdotal information…
I posted a couple of week ago about being frustrated the house where I rented a floor was being sold. So frustrated I had the crazy idea to buy it even though plan to eventually relocate to another state. Thankfully the people here on this site pointed out the ‘crazy’ to me. Sometimes I need that.
Brief description: 100+ year old house with 2 apartments with 1 bedroom each (if you want to hold to the ‘rule of thumb’ that a bedroom is a room with a window, a door that closes, a closet and the slanting ceilings don’t take up more than a certain percentage of space. Know realtors use “puffery” but being advertised as 4 bedroom). Two potential problems: Landlord lives next door and built a garage where, at the closed point, is 2 feet from this property - not sure how close can build to property line. More troublesome is there a potential parking issue. The town has a total winter off-street parking plan and there is only 1 driveway for 2-3 car tandem parking. (I park next door by the 4-car garage.) There is a curb and sidewalk so don’t see how can park on front lawn. My possible solution is to extend the driveway and turn the backyard into parking. Of course, you lose the backyard and the area needs intensive snow plowing.
As a rental, my place is perfectly fine, no issues with it. I take the 70s wallpaper, occasional nail needing to be pounded into the pine floor that needs to be refinished, cheap linoleum, old wiring so have to use a converter on the washing machine to go from grounded to 2 prongs, etc.
However, the person moving out above me found another place and has moved. Person graciously showed me the apartment. Okayyyy, how to explain this? If I viewed it as a purchase I would run, run and then run some more. Very step stairs, porch floor is slanted, old radiators, standing tub where you asking to hurt yourself, pine floor painted brown, wallpaper, linoleum (?) used on a kitchen counter, acoustical tiles used in the pantry area, a third floor with “3 rooms” that I don’t know if it legal space as there is no railing on the turning steps where you must bend your head and I don’t think you could get furniture up the steps. Not to mention potential fire hazard. Frankly I, as a rental, if I owned it, I’d either have to fix it up, or severely reduce the rent.
Updated news about the selling in a ‘hot’ market. Background: The 4-apartment house (2 1-bedroom units and 2 3-bedroom units) located nearby is “under agreement” (asking price was $575K, needs at least $40K in work) and the “as is” 3 apartments (7 bedrooms, 4 car garage) is “under contract” at $320K.
Got some information from the USH (realtor), Realtors are liars as pointed out on this blog. Well either liars or they like to practice deniability, just clueless or, when a commission comes into play, have no caring for the potential ‘victim. At one showing, talked to the realtor selling this house about possible electrical issues and got, “I just tell clients I don’t know anything about electricity.” When I asked about the parking issue (winter total street parking ban), he said he had one person think about expanding the asphalt 4 feet more into the front yard. I said, “Wouldn’t that mean the person would have to drive on part of the next door’s property to park?” “Yes.” (Who here would like a neighbor driving on your property?}
He did let it drop that he has never seen this happen before, there were 3 offers on the house and all of them fell through. Said he felt like the sellers won’t think he is doing his job. Personally, I think the people are viewing all the cosmetic work that that needs to be done, and then calculating the possible hidden work (electrical, plumbing, foundation, roof – which is supposedly 13 years old, paint, wall paper removal, refinishing pine floors, horsehair plaster walls (told they are ‘hard’ to work with, never know what you are going to find.) Basically, the house was bought 30 years ago and what was needed to be done on it, was done – nothing else. Again, it is a “hot market.”
Realtor also told me the man who owns a rental across the street told me he would only give $300K for the place -want to fix up the kitchens with granite counter tops, etc. (With my chicken scratch, uninformed calculations, I think that is even too much based on rental income which another book told me monthly rental income = 1% of the purchase price/value of the home. Even if both 1-bedroom apartments are fixed up they are NOT going to get $1,500 when that will get you a 2 bedroom in this town).
As 2banana pointed out in an above post if you cannot get 3% return on your rental as calculating cash flow = Rent – (PI, taxes, insurance, maintenance, upgrades, fees, fixing damage, etc. – ALL YOUR TIME) then why bother?
The people here on the board are better at doing calculations than I am; viewing the numbers I know, I don’t know but viewing:
Asking price = understand down from $375K to $360K
Taxes = $5,000/year
Insurance = be at least $1,000/year on the house
Rental income month = approximately $2,200/month (when thinking of buy a rental property years ago, read a book which stated rental income should be figured on 10 months/year)
Maintenance = given a figure of 3% of selling price (note think much more here due to deferred maintenance)
There has been a steady flow of potential buyers though – 2 open houses, 5 viewings in 8 days, 3 viewing on one day. Frankly I am getting tired of the flow of people. I talked to 2 other people who went through this and they said the same thing, realtors do NOT care about renters when scheduling. You could be moving out, have a new born baby there, and they do NOT care.
So basically, checking craigslist along with telling everybody I can I am looking. As of now all I see listed are ‘luxury’ apartments. (I would just be about to afford them through the ‘Affordable’ housing program and I make too much money for that). I thought the people here were kidding about the ‘amenities’ being offered. I don’t need a ‘dog washing station’ (it’s called use your own bathtub or go to a professional groomer) and I certainly don’t want a ‘bike repair station.’ If I use it, I am going to have to pay for it and I dislike the ‘graniteel’ look. A stainless-steel refrigerator keeps the food as cold as a white one.
‘Worst case scenario,’ rather than ‘throwing away my money’ on a luxury apartment where I don’t want/need to use any of the ‘luxuries’, I am going to put my stuff in storage (after paring down things, donating whatever possible) and temporarily stay at a friend’s house until I find something. No ‘luxury’ apartment complex is getting my money. I’ll continue to fully fund my 401K rather than gambling now on the housing market.
Again, appreciate all I’ve learned here.
…back to lurking…
Be the most amazing bro eva while staying in your friend’s house.
Throw him some money, cut the grass, run errands, fix stuff, be neat, be polite, be courteous.
The house you are currently renting sounds like a nightmare if you buy it. It might never cash flow after fixing it and bringing it to code (loss of opportunity of that money)
And since you are moving - no more tours of your apartment unless compensated. Hey lady, this is my home and this is my lease - and you ain’t in it.
Excellent advice 2banana all around.
Good for you. To be honest that house sounds like a tear-down. And good for you for couch-surfing for a couple months. Unless your furniture is antique-quality or sentimental, get rid of it anyway. Pretend you’re moving to a tiny house.
FYI, I saw two “bike repair stations” in downtown Pittsburgh, like right at Point Park in the middle of the city. It’s basically a rack with some tools hanging on cables from the pole (so they aren’t stolen). Free for everyone to use. They might cost a thousand bucks each. Hardly luxe-worthy.
“To be honest that house sounds like a tear-down.”
Fully depreciated to zero. In spite of the good money after bad throw at it.
Centerville, MA Housing Prices Crater 22% YOY As Double Digit Housing Price Declines Multiply
https://www.movoto.com/centerville-ma/market-trends/
I’ve enjoyed reading about your story. Regarding the value of the property, here’s a basic valuation formula that might give you a ballpark estimate as to the value of the site:
Net Annual Income / Your Annual Cost of Capital
So using the info above you gave us it looks like a good estimate of net annual income using this formula would be:
Rental income (leased 10 mos/yr): 22000
Taxes: -5000
Insurance: -1000
Maintenance: -10000 (I’m making this up; insert a better number here)
Net Annual Income given the above would be $6000
I’ll assume a cost of capital number at 5%, but the real number is going to be what interest rate you pay if you finance it, or you could use your opportunity cost instead if you pay cash
So 6000/0.05 = 120,000
In this context, asking 360k seems a bit rich. Also this basic formula assumes that 6000 net annual income in perpetuity and doesn’t factor in repayment of principal if you finance. You can find other more nuanced valuation methods that take a more realistic approach, but this one is good for a back-of-the-envelope estimate. Change the inputs if any of them are inaccurate for a better estimate. I hope this is helpful.
I look forward to hearing how your situation shakes out. I think your instinct to surf Craigslist is a good one; I’ve had good success doing that in the past.
a closet
in NYC you dont need a closet in the room to be called a bedroom just a window and a real door that closes not a curtain rod and drapes, but older homes have closets in the hallway to make up for it.
Sh*t just got real for some Real Journalists in Annapolis, MD.
Capital Gazette shooting suspect charged with five counts of first-degree murder
Jarrod W. Ramos, 38, was charged with five counts of first-degree murder, according to online court records.
Sarah Meehan and Yvonne Wenger
The Baltimore Sun
Jarrod Warren Ramos — the 38-year-old Laurel man accused of using a long-arm shotgun to blast through the doors at the Capital Gazette in Annapolis and gun down five employees — is charged with first-degree murder in the targeted attack, court records obtained Friday show.
http://www.capitalgazette.com/news/for_the_record/bs-md-ramos-charges-20180629-story.html
The postmortems on all these bursting housing bubbles are going to make for some interesting reading, if the truth of the matter is ever told. (Don’t look for Real Journalists to investigate the culpability of their corporate masters and their captured regulators and enforcers.)
https://wolfstreet.com/2018/06/27/foreign-buyers-made-me-do-it-canada-reflects-on-its-housing-bubble/
The postmortems on all these bursting housing bubbles are going to make for some interesting reading, if the truth of the matter is ever told.
That’ll only happen if after it all blows up, someone who actually understands what happened has enough resources and desire to write and widely publish it before they die. That’s a lot of ifs.
Will there be a correlation between publishing and death…? Hmm
Housing my good friends.
Hammond, OR Housing Prices Crater 14% YOY
https://www.movoto.com/hammond-or/market-trends/
The median Palm Beach County price 2013 - 2018 chart sure looks like a 1999 - 2006 right before the crash chart.
Palm Beach County median home price chart.
Palm Beach County home prices hit post-crash high
BUSINESS By Jeff Ostrowski - Palm Beach Post Staff Writer
The median price of a house sold in Palm Beach County in March was $348,000, the highest level since before the Great Recession.
https://www.mypalmbeachpost.com/business/palm-beach-county-home-prices-hit-post-crash-high/Pr6MzDaQY0jasEytPRhPuI/
Is this “adjusted for inflation” number why pickup trucks cost so much today?
“Home prices still remain well below record levels. During the housing bubble, the county’s median resale price peaked at $421,500 in November 2005 (a sum, that if adjusted for inflation, equates to $532,323 in today’s dollars). Within a few years, the median price had crashed to less than $200,000.”
“Is this “adjusted for inflation” number why pickup trucks cost so much today?”
No, that would be the sub-prime auto loan bubble.
Bitcoin craters below $6,000, on its way to zero.
https://www.marketwatch.com/investing/stock/tvix
I guess CNBC will keep pimping it all the way down to $0.
Bitcoin falls below $6,000, and one crypto trader says it will go lower. Here are alternatives to buy
- Bitcoin fell to new lows around $5,900 on Thursday, the second time dropping below $6,000 this month.
- Cryptocurrency trader Ran Neu-Ner says the price will likely fall to around $5,350 in the next two weeks.
- Still, he remains bullish on long-term investments in bitcoin.
- Meanwhile, he tells investors to consider two other coins.
Kellie Ell | @KellieAutumnEll
Published 6 Hours Ago
CNBC.com
https://www.cnbc.com/2018/06/28/bitcoin-is-below-6000-but-these-other-cryptos-are-hot-says-trader.html
It sux to HODL falling knife assets which have no fundamental value. At a continual 20% monthly rate of decline, it takes under two years to lose 99% of your initial investment.
Bloomberg
Technology
Bitcoin Falls Below $5,900 to Wrap Up a Gloomy 2018 First Half
By Adam Haigh
June 28, 2018, 5:42 PM PDT
- Largest cryptocurrency falls to lowest level since October
- Intensifying regulatory scrutiny, exchange hacks hurt demand
Bitcoin sank further below $6,000 on Friday, heading for a second straight month of declines at around 20 percent, as demand for the largest cryptocurrency continues to suffer from security and regulatory concerns.
The digital currency slid to about $5,861 early Friday, according to composite Bloomberg pricing, touching the lowest since November. Rival coins including Ethereum, Ripple and Litecoin also retreated. All are set for declines of about 20 percent or more in June.
Confidence in cryptocurrencies is being tested this year with hacks from Japan to South Korea raising security questions. At the same time, central banks and other regulators across the globe have warned about the potential for investor losses and fraud, casting a shadow over the asset class half a year after Bitcoin won a place on Chicago derivative exchanges.
Bitcoin, which is down almost 60 percent this year, was labeled a “speculative bubble” earlier this week by Nobel economics prize winner Robert Shiller.
https://www.bloomberg.com/news/articles/2018-06-29/bitcoin-falls-below-5-900-to-wrap-up-a-gloomy-2018-first-half
Still waiting to hear from HBBer Joe Smith, he of the selling public assets to private companies, he of the seven figures in Bitcoin and the he of the “I’m not a consumerist” longing for the mansion outside Baltimore.
It’s a long, bumpy path from here down to $0.
Bloomberg’s comparison to the NASDAQ crash after the dot com bubble collapse is highly misleading and, frankly, ignorant. The NASDAQ is a stock market index, some of whose components presumably have fundamental value. Where is the fundamental value in a single cryptocurrency which is drowning in a sea of newcomers, all of which are rapidly losing altitude?
Bitcoin
Bitcoin’s Bad Year Keeps Getting Worse. It’s Now Plunged 70% From Its High
By Bloomberg
6:48 AM EDT
Bitcoin’s meteoric rise last year had many observers calling it one of the biggest speculative manias in history. The cryptocurrency’s 2018 crash may help cement its place in the bubble record books.
Down 70% from its December high after sliding for a fourth straight day on Friday, Bitcoin is getting ever-closer to matching the Nasdaq Composite Index’s 78% peak-to-trough plunge after the U.S. dot-com bubble burst. Hundreds of other virtual coins have all but gone to zero — following the same path as Pets.com and many other red-hot initial public offerings that flamed out in the early 2000s.
https://www.bloomberg.com/news/articles/2018-06-29/bitcoin-falls-below-5-900-to-wrap-up-a-gloomy-2018-first-half
The stock market is days away from setting a bearish record
By Ryan Vlastelica
Published: June 28, 2018 4:29 p.m. ET
The Dow and S&P 500 are 10 trading days away from their longest corrections since 1984
…
is Trump taking responsibility for this?
He’ll be taking responsibility for the stock market rally leading up to the 2020 election.
Denver, CO (Hilltop) Housing Prices Crater 21% YOY As Housing Demand Plummets To Multi-Decade Low
https://www.zillow.com/hilltop-denver-co/home-values/
*Select price from dropdown menu from first chart
The over-levered Chinese real estate bubble is facing its financial reckoning day:
“Private developers will face the toughest ever repayment pressure in the third quarter,” said Zhang Hongwei, a research director at property consulting firm Tospur. “Builders will make big cuts to prices in exchange for cash income.”
Big price cuts = lots of instant FBs.
https://www.bloomberg.com/news/articles/2018-06-28/it-s-all-going-wrong-for-china-developers-as-bond-investors-flee
Angelo Mozilo and his doomed mortgage machine
By Matt Egan June 6, 2018: 6:34 AM ET
Angelo Mozilo got rich selling the American Dream. Then he became the face of America’s mortgage nightmare.
Mozilo, the perpetually tanned son of a butcher from the Bronx, co-founded Countrywide Financial in 1969. He built it into an unstoppable mortgage machine that made it easy — evidently too easy — for millions to own a home.
Between 1982 and 2003, as home prices boomed and Countrywide’s stock price zoomed 23,000%, Mozilo gained a reputation in the industry as a genius and a rainmaker.
…
Angelo Mozilo Net Worth: Angelo Mozilo is an American executive who has a net worth of $600 million. Angelo Mozilo was born in 1938 in The Bronx, New York City, New York. He is best known as the former chairman of the board and CEO of Countrywide Financial (until July 1, 2008).
“Between 1999 and 2006, he personally made more than $400 million, according to Equilar.”
Interesting that he was able to come out with $600 million, even though the company he founded went up in flames.
“Interesting that he was able to come out with $600 million, even though the company he founded went up in flames.”
They don’t call him “The King” for nothing.