The Housing Bubble

“In a broad sense, chalk up last week’s closure of Rock’s Precision Machining as another small-business failure linked to slumping demand. But the final blow was something more pervasive and problematic than many small businesses like to acknowledge: Billings to a key customer —namely, Honeywell — went unpaid for months, leaving the couple unable to keep up with their own bills.”

http://www.tampabay.com/news/business/workinglife/delayed-payments-can-take-a-big-toll-on-small-businesses/1235879

I can’t stand facebook. My wife posted something about my promotion, to which a bunch of people appropriately applied (congrats), and then one person mentions something inappropriate (comments about other workers), and it was up overnight until my wife deleted it.

I cannot believe how reckless people can be.

Happy Father’s Day!

http://www.youtube.com/watch?v=zcTjhXSmnmc&feature=related

Buy a house, you emasculated slug!

Why are these guys even still in business?

Moody’s “very comfortable” with top Canada rating

TORONTO (Reuters) - Moody’s Investors Service is “very comfortable” with its top Aaa credit rating for Canada because the country’s fiscal and banking strength give it room to react to risks arising from the European debt crisis and Canada’s hot housing market, Moody’s chief analyst for Canada said on Thursday.

But even if a severe housing correction resulted in problem loans, Hess said Canada’s big banks would be able to manage without having to resort to government help.

“You don’t have the same thing that you had in the United States of people losing jobs before losing their houses. And also the legal framework surrounding foreclosures and whatever is different in Canada, and is more conducive to people continuing to service their loans.”

http://news.yahoo.com/moodys-very-comfortable-canadas-aaa-rating-153316386–sector.html;_ylt=A2KJ3CRJwd1PRCoAU5rQtDMD

US Housing Continues To Weigh On The Banking Sector

Banks in the United States have maintained the same level of exposure to residential real estate—around 40 per cent of their total loan books—since 2006

REO are properties that are associated with defaulted mortgages and that have not been disposed of following foreclosure proceedings. At an estimated 400,000 units, the volume of REO properties was broadly unchanged over the second half of 2011.

The number of REO properties is strongly influenced by developments in housing activity and prices. If the housing market remains soft (or worsens), an increasing number of the currently delinquent mortgages would default. At the same time, banks would find it difficult to sell defaulted properties at favourable prices. This would lead to a rise in the REO properties held by banks.”

Read more: http://pragcap.com/u-s-housing-continues-to-weigh-on-the-banking-sector#ixzz1y3EOVnZP

“There’s going to be a lot of empty space.”

I thought they weren`t making anymore land.

Detroit Shrinks Itself, Historic Homes and All

May 14, 2010

By ALEX P. KELLOGG

DETROIT—Wrecking crews are preparing to tear down a landmark 5,000-square-foot house in the posh neighborhood of Palmer Woods in the coming weeks, a sign that Detroit is finally getting serious about razing thousands of vacant and abandoned structures across the city.

In leveling 1860 Balmoral Drive, the boyhood home of one-time presidential candidate and former Massachusetts Gov. Mitt Romney, Detroit is losing a small piece of its history. But the project is part of a demolition effort that is just now gaining momentum and could help define the city’s future.

Detroit is finally chipping away at a glut of abandoned homes that has been piling up for decades, and intends to take advantage of warm weather and new federal funding to demolish some 3,000 buildings by the end of September.

Mayor Dave Bing has pledged to knock down 10,000 structures in his first term as part of a nascent plan to “right-size” Detroit, or reconfigure the city to reflect its shrinking population.

When it’s all over, said Karla Henderson, director of the Detroit Building Department, “There’s going to be a lot of empty space.”

http://online.wsj.com/article/SB10001424052748703950804575242433435338728.html - 165k

Rajat Gupta, insider trading conviction. Any thoughts? Is he the sacrificial lamb at Goldman?

In Colorado

I hope you and your family are safe. I`m not sure if you like prayers or not but you got mine anyway.

Wildfire destroys most homes in Colo. history

By THOMAS PEIPERT, AP
4 hours ago

DENVER — Crews in northern Colorado braced for powerful fire-fanning winds Saturday as they battle a blaze that has scorched about 85 square miles of mountainous forest land and destroyed at least 181 homes, the most in state history.

The destructiveness of the High Park Fire burning 15 miles west of Fort Collins surpassed the Fourmile Canyon wildfire, which destroyed 169 homes west of Boulder in September 2010.

Rental rates are falling. DO NOT believe the paid liars steering public opinion on the internet.

Don’t believe me? See for yourself.

“The largest year-over-year percent declines in rental prices were observed in Denver (-8.8%), Chicago (-4.8%) and Los Angeles (-2.6%). Atlanta was the only market that saw a significant rise in rental prices, increasing 6.3% from $737 to $783 between Q1 2011 and Q1 2012.”

http://newsroom.transunion.com/MediaLibraries/TransUnion/Documents/graphics/1Q12/Q1-2012_SolutionsReport.pdf

Comment by Bill in Los Angeles
2012-06-16 18:22:35
“It was a matter of living below ones means and saving. No one held a gun to my head and told me to buy a house, SUV, or breed like a rabbit. So the fault lies with those who chose not to save.

Reverse “Poof.”

What you fail to acknowledge is that those people spending more than they earn by borrowing fiat money into existence is what enabled you to earn more than you spent.

Think about it. What if EVERY American that overspent had not. How much less economic activity would there have been? How much would that have lowered your income.

It is possible for one individual to spend less than they earn. It is impossible for everyone to do so.

And, now that you have accumulated 1 million units of their debt, what good does that do you if all those fools in debt suddenly decide to not pay?

Bel Air, Ca housing prices down 33% and falling…. but I thought Bel Air was “desireable”? Uh huh.

Don’t get scammed by the scammers posting here.

http://realestate.msn.com/article.aspx?cp-documentid=20816644

Republicans worried that PAUL could tarnish the image of the party? Seriously?

“Delegate Bethany Gates of Benton County worried that going with Paul could tarnish the image of the party - and the state’s first-in-the-nation caucus status.”

http://app1.kuhf.org/articles/npr1339929068-Raucus-Iowa-Convention-May-Signal-Whats-To-Come.html

The Center for Retirement Research is shocked, shocked to find out that in 2010 the generations born after 1955 were significantly poorer, adjusted for inflation, than older generations had been at the same points in their lives a decade earlier.

http://fsp.bc.edu/progress-stalls-for-young-adults/

That is because it is a relatively new organization. The same trend could have been observed 10, 20, or 30 years ago.

My generation, the back half of the baby boom, has been worse off than the Woodstock generation had been at the same age not only at age 45 to 54, as in 2000, but in every decade before. But we are merely the first to be less well off than those who came before. Gen X has been worse off than we were, on average, at every age, and Gen Y is worse off still.

The data in the first chart is based on median household income. Data based on the median wage would have shown a much steeper trend going back much farther, because it was obscured at first by a rising number of workers per household.

The richest generations, now age 55 to 74, are going to have to sell their houses to the much less well off generations who follow. Unless they sell to foreign investors who rent them out.

Meanwhile, those 54 and under will really become worse off when they become older themselves, because income tends to fall in retirement and for us and our children it will be falling from a lower level. Plus our taxes will be higher to pay back all the debts, and we may not get Social Security.

1989 to 2012
What a long strange trip it`s been.

4416 Gardenia Dr Palm Beach Gardens, FL 33410
$229,000

Status:New
Beds:3 Bed
Baths:2 Bath
House Size:1,842 Sq Ft
Year Built:1964
Added to Site
June 14, 2012
Data Source: MLS
MLS ID: R3289156

Location Address 4416 GARDENIA DR
Municipality PALM BEACH GARDENS

Sales Date Price

OCT-2006 $360,000

AUG-2003 $240,000

APR-2000 $138,000

MAR-1989 $122,000

It’s all Greek to me (well in this case, Korean) — except for that one word.

[비즈 칵테일] 오늘 시황은 그리스 선거 결과가 답한다
국내외 증시 크게 요동칠 듯, 어느 쪽이든 ‘일희일비’ 교차

국제신문
이은정 기자 ejlee@kookje.co.kr
2012-06-17 20:23

덧글
좋아요

미투데이
싸이월드 공감
트위터
페이스북

기사주소복사
스크랩
인쇄
글씨 크게
글씨 작게

세계의 이목이 집중된 그리스 총선 재선거가 17일 진행됐다. 우리나라 시간으로 18일 오전 발표될 이 선거 결과에 따라 국내 증시는 물론 전 세계 경제가 요동칠 것이다. 따라서 당장 이날 국내 증시가 어떤 형태로든 영향을 받을 수밖에 없다.

그리스 총선 재선거 결과는 그리스의 유로존 탈퇴를 의미하는 그렉시트(Grexit) 여부를 가늠하는 시금석이 될 것으로 보인다. 이어 열리는 G20(주요 20개국) 정상회담과 EU재무장관 회의에도 관심이 쏠리고 있다.
…

If sellers think it is tough to get those 2006 prices for their homes today, just wait until the end of 2012, when 30-year mortgage rates are anticipated to be 49 bps higher than now (4.2% versus the current 3.71%).

This shows that the 49 bps increase in 30-year mortgage rates would knock 5.76% off the principle loan balance, assuming the buyer applies the same monthly payment to pay off the loan. This may not seem like much, until you apply it against the purchase of a $500,000 San Diego starter home, in which case it may look like $30,000 or so in decreased purchase budget. So those who have been cooling their heels in a rental while the housing crash has played out might want to wait a little bit longer to see whether the Mortgage Bankers Association’s interest rate forecast is on target.

MARKETWATCH
June 16, 2012, 9:01 p.m. ET

What’s Keeping Mortgage Rates Low
By AMY HOAK

Glimmers of hope in the housing market suggest a turnaround is at hand, with statistics showing stabilizing home prices and an increasing number of home sales.

Yet even as housing conditions improve, mortgage interest rates remain near record-low levels.

Rates on a 30-year fixed-rate mortgage averaged 3.71% for the week ended June 14, according to Freddie Mac’s weekly survey of conforming rates. Prior to that week, rates had broken record lows for six weeks straight.

It’s a situation that seems to defy supply-and-demand logic: If there’s more demand in the housing market, wouldn’t the cost of borrowing funds to buy a home be on the rise?

Not necessarily.
…
Given all the factors, the Mortgage Bankers Association expects the 30-year fixed-rate mortgage to end the year at an average 4.2%. That’s higher than current rates, but still relatively low. Freddie Mac’s most recent projection also pegs the 30-year fixed-rate mortgage at 4.2% by year-end.

For borrowers, that means low mortgage rates aren’t expected to go away anytime soon. And that’s a good thing since many would-be buyers continue to have jitters about making a purchase, says Ron Chicaferro, a mortgage-industry consultant in Scottsdale, Ariz. Often, worries about job stability are preventing people who otherwise could buy a home from making a purchase.

“The desire is there,” he says, “but the fear prevents the move.”

Those interested in refinancing, however, should be aware that rates are near their lowest points on record, and are expected to eventually start creeping up. So if it makes sense to do a refinance at the current rates, and you can qualify for the loan, it’s a good idea to take action sooner rather than later.

ECONOMY
Updated June 15, 2012, 6:30 p.m. ET

Recovery Slows as Global Risks Rise
BY BEN CASSELMAN AND PHIL IZZO

The U.S. economy is continuing to lose momentum just as global events that could derail the recovery gather steam.

New data this week provided more evidence that the economic recovery is sputtering for the third year in a row. Layoffs are rising, factory output is falling and consumers are cutting spending amid rising uncertainty. Moreover, those warning signs mostly predate the worst of the recent turmoil in Europe, which has hit financial markets and hurt demand for American products overseas.
…

Possible sign that housing is nearing a bottom: I attended a party last night with several former HBB posters in attendance at (former) CA Renter’s beautiful home, which she and her husband bought late last year. Turns out I was the only rental market holdout at the party. After comparing notes, we collectively decided that having a stable landlord who is in no hurry to sell has made it relatively easier for us to stay put than many other renter families.

A quick check on Redfin shows the following current market value estimates for the place we rent (rounded to the nearest $10K for confidentiality reasons):

Home Value Estimates
Low Estimate High
Zillow.com $320K $410K $440K
Eppraisal.com $420K $490K $570K

I find this most interesting, as in almost every other case I have recently checked, the Zestimate was considerably above the Eppraisal figure. I also find the high end of the Eppraisal value range quite suspicious, as it is within $5,000 of the 2004 purchase price for the home.

But no matter; our landlord could not profitably sell at any of the above prices, and so is most likely not in a hurry for us to stop sending a monthly check to cover the cost of PITI, maintenance, yardwork, etc.

NATION’S HOUSING
‘PINBALL’ LISTINGS ARE BAIT FOR BUYERS
By Union-Tribune
12:01 a.m., June 17, 2012
Updated 2:43 p.m. , June 15, 2012

In the real estate brokerage field they’re known as “setups” or “pinball” homes, and this spring’s improving conditions in some markets could be stimulating more of them.

A setup or pinball property is a house listed with an unrealistically high asking price that pulls in lots of visits by agents and shoppers, but no offers. The problem is this: Real estate agents, including even the listing agent, are using the overpriced house as a negative example to sell other, similar homes nearby that carry lower asking prices.

“It’s like a pinball machine,” says Debbie Cook, an agent with Long & Foster Real Estate in Silver Spring, Md. The “setup” is the foil — the house that agents show clients in order to make other more realistically priced listings look better. Maybe the sellers — encouraged by reports of rising sales and low mortgage rates — insisted on the aggressive asking price and wouldn’t list for anything less. Or maybe the sellers’ agent didn’t fully brief them about what the house could command in today’s conditions rather than lose the listing.

Whatever the specifics, pinball houses tend to see heavy “traffic” but go nowhere until the sellers drop the asking price, usually by significant amounts. Before then, however, they may be used without the sellers’ knowledge to market other houses. Since no one seriously expects them to sell at their original asking price, agents are happy to exploit the overpricing to facilitate other sales.
…

Just heard Howard Dean say it`s a bad idear, which reminded me of a joke.

What do you call a deer with no eyes?

No idear.

What do you call a deer with no eyes and no legs?

Stll no idear.

Is it a good time to buy a commercial facility? Boy only if I could have heloced this one a few years ago? This company paid decent wages. This building can be had for an unbeatable price of $2.80 per sq ft. Taxes are $20K per month.

http://search.pyramidbrokerage.com/default.aspx?tabid=92&f=s&listingid=Y10619

David Miliband’s wife is a violinist. We share a personal connection from a past epoch in our lives.

Channel 4 News
Grexit, Drachmail and Eurogeddon - the new eurozone words
Sunday 17 June 2012

As the eurozone crisis consumes billions of pounds and leaves people fearing for their jobs, it has given people one thing - a totally new vocabulary.

Many new terms may make it into the dictionary

MP David Miliband has already warned us of Drachmageddon - the chaos which would be caused to us all by the return of the former Greek currency.

That then leads us to Drachmail - the term coined by our own Economics Editor Faisal Islam, which describes Greece’s attempts to secure a better deal from its concerned Euro partners, anxious to save the world from a euro collapse.

If the worst comes to the worst, we could have a Grexodus or Grexit which would see the departure of Greece from the euro currency.

Italy is also feared to be the next troubled country to leave the single currency - which would make it Quitaly.

And what if the entire single currency system collapses? You’ve guessed it, Eurogeddon.

The best Channel 4 News can muster today from its own ranks is “Cont-aegean” - but an you come up with any new terms to describe the euro-crisis?

Tweet your suggestions to us @channel4news

jinglemale, in yesterday’s BB, wrote:

Comment by JingleMale
2012-06-17 01:41:36

[...] The market willl not stay on the bottom any longer than it stayed on the top.

I used to believe that the timing of manias and their flip-sides would be similar in duration; after all, they are both at their essence a widely-shared emotional event, and thus human in their timing.

I no longer believe that to be true. For the mania side of the equation, that is still true. But for the downturn, I cannot ignore the fact that much of the effort that was made to fight the correction was fundamentally a variant on extend-and-pretend. And the “extend” portion of that is bound to drag out the duration.

So I now believe the downturn, which would have been of the 3-to-5 years variety, will now be more like twice that long at a minimum.

Thoughts?

Is Wall Street more likely to melt up, in a no-Grexit relief rally, or down, in disappointment over no need for a central bank liquidity injection?

Greeks head to the ballot box in two days for a contest that may determine the fate of the world’s first democracy and the future of the newest reserve currency, while roiling markets from Wellington to Wall Street. Photographer: Chris Ratcliffe/Bloomberg
Bloomberg News

Greek Pro-Bailout Parties Seen Taking Majority, Poll Shows
By Maria Petrakis and Natalie Weeks on June 17, 2012

Greece’s two largest pro-bailout parties, New Democracy and Pasok, won enough seats to forge a parliamentary majority, a final exit poll showed, pointing to an outcome that may ease concern of a clash that could force the country out of the euro.

The results would give New Democracy and Pasok 159 seats, if they agree to govern together, in the 300-member Greek parliament, according to the poll broadcast on state-run television NET. Official estimates are due after 9:30 p.m. in Athens.

“For markets, a majority for an ND-Pasok coalition would be a relief,” Holger Schmieding, London-based chief economist at Berenberg Bank, said in a note today. “It would very much reduce the risk of a Greek euro exit.”
…

Stay away from these drugs, and Realtors® who use them.

What Are Bath Salts and Why Do They Make People Go Crazy?
Published June 07, 2012
Fox News Latino

A West Virginia man raped and killed his neighbor’s pygmy goat. A Louisiana man gnawed off a chunk of his neighbor’s face during a fight. A Biloxi burglar stabbed a sleeping man along his neck at 5 am and then begged for permission to stitch up the wound.

The unusual acts had one thing in common: the people who committed them were allegedly under the influence of a cocktail of synthetic amphetamines and hallucinogens, commonly known as “bath salts.”

The designer drug caught national attention after Rudy Eugene mauled a homeless man and ate half his face. Though no police source has confirmed that the man who has become known as the “Miami Zombie” took bath salts, speculation that he did has fueled interest in the drug, catapulting it to the top of web searches for days after the attack.
…

Last Updated: 6/10/2012 13:23 PST

The 5 Dumbest Things You Can Do if You Have too Much Debt

If you’re struggling with too much debt, you’re not alone. It seems as if the whole nation has a borrowing hangover. For years, credit was easy, and many people became overextended. But, we now live in an era of austerity and it’s time to get our affairs in order.

The five strategies you may want to avoid:

The first piece of advice from experts in the financial field is to be sure you don’t make your situation worse by making common mistakes. In particular, try to avoid:

1. Paying only the minimum payment on your debt, as this will result in the amount you owe actually growing, and your problems will only become worse.

2. Relying on friends and family, as this can damage relationships with the most important people in your life.

3. Unscrupulous credit counselors that demand cash upfront or high fees for help they promise, but don’t deliver.

4. Using new, high-interest loans to pay off lower interest rate loans. While it may be easier to just have one payment, it will actually increase the amount you have to pay back.

5. Declaring bankruptcy–this can have permanent and severe consequences on your financial future. Avoid it if you can, especially when debt settlement may work for you.
…
6. DON’T BUY STUFF YOU CANNOT AFFORD.

“5. Declaring bankruptcy–this can have permanent and severe consequences on your financial future. ”

I work with several people who declared bankruptcy within the last few years and they’re all doing fine.

Come on train wreck!

Obama’s Fannie Mae failure
Salon | 6-15-12 | Andrew Leonard

Amid all the rhetoric and posturing that have accompanied every twist and turn of the great housing bust and the ensuing slow, stuttering recovery of the United States economy, a comment made last week by new Fannie Mae CEO Tim Mayopoulos to the Wall Street Journal might have seemed consequential only to the most wired-in housing wonk. ”From my perspective, I don’t believe we need principal reduction to modify loans and make [modifications] work for homeowners,” Mr. Mayopoulos said.

Don’t push that snooze button! The jargon might be thick, but in the middle of a massive foreclosure crisis, Mayopoulos’ comments spoke directly to the most contentious issue in housing finance policy today: how to keep Americans in their homes. It’s a question that divides not just Democrats and Republicans, but also the executive branch of the government itself. Because you can make a good case that for all practical purposes Mayopoulous works for the federal government; and yet, his position on “principal reduction” is at direct odds with President Obama’s. That’s a big deal. The collapse of the housing sector precipitated the economic crash. Fixing it is crucial to enabling a sustainable recovery. And yet, despite years of effort, in the all-important domain of housing finance, the White House has proven itself unable to execute its agenda.

And here’s the rub. The Obama administration wants — or says it wants — principal reduction. And for all intents and purposes, the government owns Fannie Mae. Originally a quasi public-private entity referred to with the weasel words “government-sponsored enterprise,” Fannie Mae was essentially nationalized during the housing crisis in a bailout that cost taxpayers hundreds of billions of dollars.

DeMarco has been steadfast in his opinion that principal reduction is a bad idea. His reasoning is straightforward: Principal reduction, he argues, would mean further financial losses for Fannie and Freddie, which would then have to be made up by taxpayers. Since the FHFA is not only Fannie and Freddie’s regulator, but their conservator as they try to emerge from bankruptcy and pay back the government for its bailout, DeMarco’s legal responsibility, as he sees it, is to steer Fannie and Freddie back to profitability.

That’s because, says Judson, tax law historically treats principal reduction as income to the homeowner who gets it. In other words, if you have a $300,000 mortgage on a house that is now only worth $200,000, and your bank gives you a $100,000 break to bring the mortgage and the home value in line with each other, the IRS will consider that $100,000 break taxable income.

Congress recognized this obvious insanity in 2007 and passed a provision that gave homeowners a waiver from that liability, but the waiver will expire on Jan. 1. Not only would the change in tax law mean that getting a principal reduction would make no sense for a beleaguered homeowner, but it would also destroy the market for “short sales” — in which banks allow homeowners to get out of their mortgage by selling their property for less than the mortgage is worth. Judson believes some 30 percent of home sales are currently short sales. Knock the legs out of that market, and you’re asking for serious trouble.

“If we hit a train-wreck on Jan. 1,” says Judson, “it will take the housing market and any economic recovery down with it.”

Alligator blamed for causing 2 crashes in St. Pete

(What position in the Bush administration did he hold?)

Posted: 2:32 p.m. Sunday, June 17, 2012

THE ASSOCIATED PRESS

ST. PETERSBURG —

An alligator is being blamed for causing two crashes in St. Petersburg.

The Florida Highway Patrol says Bruce Foley struck a 12-foot alligator crossing Interstate 275 with his 2012 Toyota sedan early Sunday.

The gator escaped into the woods but emerged about a half hour later.

Authorities say the alligator attempted to cross the interstate again but was struck by a second vehicle, a 2004 Kia driven by Verna Christopherson.

This time the alligator sustained fatal injuries. The remains were removed by a trapper.

Neither driver was injured in the collisions, though both cars were damaged.

The damn weather is once again raining on the Fed’s green shoots.

The Fed Archives
June 17, 2012, 11:36 p.m. EDT
Fed expected to twist again
By Greg Robb, MarketWatch

WASHINGTON (MarketWatch) — The Federal Reserve is likely to extend its Operation Twist program at the end of its two-day meeting on Wednesday, a growing number of Fed watchers said over the weekend.

“We now expect the Fed to ease policy further at next week’s meeting,” Barclays Capital economist Dean Maki said in a note to clients. “We see a short-term extension of Operation Twist as the most likely outcome.”

Michael Gregory, senior economist at BMO Capital Markets, said more and more economists were jumping on the “bandwagon” of an extended Twist.

The move would serve several purposes, but would mainly show the Fed’s resolve to act and help shore up confidence, said Millan Mulraine, economist at TD Securities.

The current $400 billion Twist program is set to expire at the end of June. It gets its name from the Fed trying to twist the yield curve by selling short-term securities that it holds while buying longer-term securities.

Analysts said the Fed has about $180 billion of short-term Treasurys left to sell. There was some speculation that the Fed might buy mortgage-backed securities in the new round.

U.S. recovery slows as global risks rise

The U.S. economy is losing momentum just as global events that could derail the recovery are gathering steam.

The risks of extreme financial contagion subsided Sunday night in the wake of the Greek election. Economists said this would lower the odds a massive new bond-buying program, known as the third quantitative easing or QE3. See report on Greek election results.

The Fed has bought over $2.3 trillion of Treasurys and housing-related assets to bring down interest rates. The Fed’s traditional short-term interest-rate policy tool — the fed funds target — has been close to zero since December 2008.

Fed Chairman Ben Bernanke certainly didn’t endorse more easing in his testimony to Congress last week, and as a result, some analysts think the U.S. central bank will stay on hold to see how things pan out over the next few months. But they admit it is a close call.

One factor that still isn’t clear is how much of the current economic slowdown is due to weather.
…

Risk on! Try not to get caught out of the market before the bulls take it through the roof!!

Asian Stocks, Euro, Oil Advance on Greek Pro-Bailout Vote
By Glenys Sim and Rita Nazareth - Jun 17, 2012 8:12 PM PT

Asian stocks and the euro rose to the highest levels in a month as gains by pro-bailout parties in Greek elections eased concern the nation would be forced out of the 17-member currency bloc. Oil advanced while bond risk in Asia declined.

The MSCI Asia Pacific Index climbed 1.5 percent to the highest since May 16 at 11:43 a.m. in Tokyo. The euro strengthened 0.4 percent to $1.2685 per dollar, the highest since May 22, and the yen fell against most of its major counterparts. Oil in New York rose to the highest in a week while bond risk in Asia dropped to the lowest since May 8. Standard & Poor’s 500 Index futures added 0.4 percent.
…

Is anyone interested in picking up a Las Vegas estate for cheap?

Las Vegas Estate Slashed 74% to $6.9 Million
June 14, 2012

A Las Vegas home gets a drastic price cut, from $25 million to $6 million. Lauren Schuker has details on The News Hub. Photo: Luxe Estates Collection.

Russia in 15 seconds
http://www.youtube.com/watch?v=jBqtQjJqSQw

I see the news of growing financial prudence among twenty-somethings as a sign the housing market may be returning to normalcy, with buyers who understand that real estate doesn’t always go up and who act with suitable precaution to making such a high-risk investment as a highly-leveraged purchase of an overpriced home.

Economy
Young adults’ hesitance is reshaping home-buying market
Posted: 06/17/2012 01:00:00 AM MDT
By Michelle Zayed
The Denver Post
(Jupiter Images)

Millennials, those born between 1983 and 2003, are putting their white-picket-fence dreams on hold as increasingly mobile lifestyles and strict mortgage requirements combine with still-fresh memories of the housing crisis.

According to the Census Bureau, the number of homeowners younger than 35 dropped by nearly a million from 2000 to 2010.

The ideas of ever-rising house prices and homes as a stepping-stone to financial stability are no longer the selling points for young adults that they were for previous generations.

“They are hearing all these horror stories about people who bought a house and now their mortgage is more than what their house is worth,” said Evan Segal, author of “From Local to Global” and a former business executive whose company worked closely with the housing sector.

Many older millennials — now entering prime home-buying age — look at homes as riskier investments and are weighed down by heightened requirements to qualify for home mortgages.

Bryan Hall, 26, who has rented since his sophomore year of college, said he hasn’t had time to build up a good credit score and that has prevented him qualifying for a low mortgage rate under today’s tightened standards.

Aside from little time to build credit, millennials in the current economy also face minimal job security, an all-time-high student-debt load and the prospect of hefty down payments, particularly under the stricter underwriting standards that emerged after the housing crisis.

Colorado’s 2010 college graduates who exited with student debt owed an average of $22,017. The unemployment rate for 20- to 24-year-olds was 12.9 percent in May, according to the Bureau of Labor Statistics. The rate drops by half for those 25 and older.

“The poor economy has pushed many into the rental market,” so they are ultimately postponing home-buying, said John Covert, director of Metrostudy, a market research company.
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