Back To The Stage Where People Are Getting Greedy
The Plain Dealer reports from Ohio. “Home sales continued to climb out of their trough in 2013, posting double-digit percentage gains in Northeast Ohio and across the state. But tight inventory in some markets and anemic job growth in cities including Cleveland continue to hold back sales and limit the pool of potential buyers. ‘Anything was better than 2012, so the numbers are always going to look good,’ said Scott Phillips Jr., the president of the new Rocky River office of Keller Williams Realty Greater Cleveland. ‘But 2013 probably wasn’t as fantastic as a lot of people are saying it was.’”
“Listings remain limited in some communities, and buyers scouting select Northeast Ohio neighborhoods are clamoring for fresh options. Yet overall, Phillips said, ‘I would actually argue that there is a decent amount of inventory on the market, but we’re back to the stage where people are getting a little greedy, and it’s overpriced.’”
From Michigan Live. “Michigan’s foreclosure activity has slowed to levels last seen before the housing crisis, but bank-owned properties still accounted for nearly one-fifth of all home sales last year. Meanwhile, overall home sales and prices continued to rise in the Great Lakes state. Bank-owned properties accounted for 18.4 percent of all sales in 2013, second only to Nevada at 20.4 percent. ‘There are not a lot of new foreclosures entering the pipeline, but the pipeline is still very full of properties that have been foreclosed on in last seven or eight years and still have not been absorbed by the housing market there,’ said RealtyTrac VP Daren Blomquist.”
The Star Tribune in Minnesota. “The century-old duplex in north Minneapolis is locked and empty. The front window is cracked. A neighbor says only teenage squatters lived there in the last year, since a blaze displaced 24 people that had been crowding into eight bedrooms.”
“Last month, the home sold for $46,500 cash to a California investor after languishing for months on the market. It is the latest sale in a tumultuous journey that began nearly a decade ago, when the duplex sold for $290,000 and then endured two foreclosures, an investor that went belly-up, a chain of Wall Street bank trustees, and placement on the city’s vacant building registry after the fire rendered it uninhabitable.”
“Even as the housing recovery is taking hold throughout the metro area, progress in the neighborhoods of north Minneapolis has been slower. Homes that are in foreclosure or at risk of foreclosure represented about 45 percent of all transactions in 2013, almost twice the rate across the metro area. The cycle that has prevailed here — vacant homes, bought by investors, rented to people with little interest in the neighborhood — is still in full force. ‘They drive up with them big rental trucks and they’re in,’ said Jerry Millner, who lives on the block. ‘Two months later they drive up with a big rental truck and they’re out.’”
Shelby News on Indiana. “While blighted neighborhoods may be taboo to speak about, Indiana Sen. Jim Merritt, R-Indianapolis, is willing to talk about the issue, and he is not mincing any words. On Wednesday night, Merritt told a small gathering of citizens in Shelbyville that blighted and abandoned homes are a ‘poison to communities.’ This year, the Indianapolis area ranked No. 1 in the nation for the percentage of homes in the foreclosure process that had been abandoned, according to RealityTrac. Statewide, approximately 5,000 of the 16,618 foreclosed homes had been abandoned.”
“Shelbyville Mayor Tom DeBaun said blight and abandoned homes are a ‘problem’ in his town. DeBaun said there are approximately 115 properties the city takes care of to an annual expense of $50,000. ‘We demo two to three homes a year. Many lots have assessments that can’t sell at certificate sales. We appreciate what you are doing. It is a broken window in our community, and a lot of the properties are in limbo,’ DeBaun told Merritt.”
The NWI Times. “Illinois ranked first nationally in the number of residents leaving in 2011, and has been second for each of the past two years, according to the United Van Lines study. Indiana did not fare much better in a similar study by Atlas Van Lines, which found the Hoosier State was third in outbound migration. Indiana’s 59 percent outbound rate trailed only Connecticut and New York. About 57 percent of the people who hired the moving company in Illinois were headed out of the state.”
“That is the case with much of the Midwest, according to the Atlas study. More than 55 percent of on-the-move people also were headed out of Ohio, Minnesota and Nebraska. Also, no Midwestern state has been inbound instead of outbound or balanced for more than 10 consecutive years.”
“The Hlistas are part of a growing number of residents who have decided to move away from Illinois. Jeff and Linda Hlista lived in a tri-level house in Oak Lawn up until a few years ago, when a property tax bill that was once $1,000 a year rose to a hefty $5,500. They had enough and moved to Highland, where they found that just about everything – including tax bills, cigarettes and movie tickets – was cheaper than it was in Illinois. They now pay $4 to $4.50 per pack of cigarettes, instead of $9 or $10. They no longer worry about falling behind on property taxes and losing their home.”
“‘The assessed value of our house fell by $40,000, but the taxes continued to rise,’ Jeff Hlista said. ‘I couldn’t figure that one out.’”
The Kansas City Star. “Most of us know downtown Kansas City is a hot spot for apartment development, but would you believe 40 percent of the residences in Overland Park are now multifamily? The apartment, once considered the main option for young adults getting their first place or people who couldn’t afford a house, has increasingly become home to what’s called the renter by choice market.”
“Bob Frye estimated one-third of the 180 apartments he’s building at his Founders at Union Hill development will be rented by people who could afford to buy. ‘Often, the focus is on economics,’ Frye said. ‘People don’t want their retirement money tied up in a house and want to keep their funds liquid. There’s also the service side. If a faucet is broken, you don’t have to fix it.’”
“Developer Michael Knight readily accepts the idea of people choosing to rent rather than own. He, his wife and 3-year-old plan to live in the planned redevelopment of the 30-story Commerce Tower office building. ‘I won’t buy a house; it scares me,’ he said. ‘People’s living conditions change, and when you own a house, you don’t have the flexibility to respond to change.’”
“Linda Welling, a 57-year-old art teacher, could have easily afforded a house. But a year ago she sold her home moved to an apartment in the River Market area of downtown. ‘I sold my four-bedroom house because the kids are gone, and I was tired of living there by myself,’ she said. ‘I had an estate sale, and it was the best thing I’ve done. Several people my age or older are doing the same thing. We like the no maintenance, not worrying about shoveling and all the things that go along with a house.’”
‘But 2013 probably wasn’t as fantastic as a lot of people are saying it was.’”
With housing demand cratered to 1997 levels and the homeownership rate at 14 year lows, the realtor is actually telling the truth.
From PlainDealer article; “it’s overpriced”
Ya think?
With current resale asking prices falling yet still 40-60% higher than reproduction cost(lot, labor, materials, profit), housing isn’t just “overpriced”. It’s a wholesale rip-off.
You should take a vacation to Cleveland. It’s beautiful this time of year.
Pick your location. It’s even more overpriced elsewhere.
downtown atlanta is cheap- but not for honkeys
45k for a decent townhouse
Hence it’s overpriced.
My bro just moved to Atlanta from the Los Angeles area. He’s a Production Accountant and followed the tsunami of entertainment jobs leaving Ca. His salary is still great and cheaper housing makes the col a good deal. The tax incentives in other states to film elsewhere is having a major effect on our region.
What he could afford to buy here vs. Atlanta is night and day. Beautiful region of the US, but the humidity is the deal breaker for me.
Give it time….. The cascading defaults is the great equalizer.
The film biz got started in CA only because they didn’t have good lighting and took advantage of the sunny CA weather. Now they can film anything in cloudy Vancouver.
“anemic job growth in cities including Cleveland”
What kind of jobs exist there? Outside of the Health Care Industrial Complex centered on the Cleveland Clinic and Case Western Reserve University, there’s not much left.
Progressive Insurance, Rockwell Insurance, GE Healthcare - but all in the suburbs
Yup. And Eaton and Parker Hannifin and Cleveland Cliffs.
But even adding up all of the above, there will be no “recovery” for NE Ohio, it’s been all downhill since NAFTA.
So they have a casino on Public Square now. Whoop de doo.
One of the last major commercial developments built before I left was Steelyard Commons, just south of downtown. A former industrial site of acres and acres of steel mills was redeveloped into a large strip mall with a Wal-Mart Supercenter as the anchor tenant. Assorted industrial “artifacts” were left in place around the development to give it character (pieces of flare?). So instead of middle class manufacturing jobs, now there are retail jobs for Lucky Ducks to sell cheap plastic garbage from China to other Lucky Ducks.
“Giant sucking sound”, anyone?
From the MichLive link; “but the pipeline is still very full of properties that have been foreclosed on in last seven or eight years”
If I said it once I’ve said it 1000 times….. You can’t hide tens of millions of excess empty and defaulted houses. They’re still there, still getting maintained, still on the banks books.
Still maintained my a**. I’d be happy to show you many properties that are officially on the banks’ books and left to rot. I can show you many more that are in some stage of “foreclosure” and not on the books also left to rot. Only those that will be sold sometime in the near future are getting the grass cut, outside cleaned, etc.
And for everyone one you claim is “rotting”, I’ll show you 5 that have labels with inspection and work dates attached to the front door.
Star Tribune; “Last month, the home sold for $46,500 cash to a California investor after languishing for months on the market.
Imagine that. The dumbest money on the planet strikes. LOLZ
From Kansas City Star article; “‘I won’t buy a house; it scares me,’ he said. ‘People’s living conditions change, and when you own a house, you don’t have the flexibility to respond to change.’”
“Linda Welling, a 57-year-old art teacher, could have easily afforded a house. But a year ago she sold her home moved to an apartment in the River Market area of downtown. ‘I sold my four-bedroom house because the kids are gone, and I was tired of living there by myself,’ she said. ‘I had an estate sale, and it was the best thing I’ve done. Several people my age or older are doing the same thing. We like the no maintenance, not worrying about shoveling and all the things that go along with a house.’”
These people are stating the clear cut, established reasons to rent…. and they didn’t even get to the point that rental rates are a small fraction of the cost of buying at current grossly inflated asking prices of resale housing.
“Millions of Americans have moved on from the recession with careers and finances mostly intact, but large groups have fallen behind, perhaps for good. The difference is whether they were able to hang on to their jobs.”
“Those who remained employed through the downturn endured anxious moments, lost value in their homes and may have forgone pay raises. But people who were laid off gave up months or years of earnings, lost homes, raided 401(k)s, went into debt, and now more often than not must take jobs for significantly less pay.”
“Even as the economy has added jobs and unemployment has fallen below 7 percent, today’s unemployed are more likely than at any time since the Great Depression to stay that way for a prolonged period and far more likely to end up in part-time jobs. At last check, 38,400 Minnesotans and more than 4 million people across the country had been out of work for more than six months, not counting the millions who have given up looking.”
“Many of them are still paying the price by having a job that’s not as good, or only a part-time job, or maybe not a job at all,” said Henry Farber, a Princeton economist who studies displaced workers. “The labor market never really recovered from the Great Recession.”
‘If and when job-seekers do find work, a majority make less money. A third suffer a 20 percent pay cut or worse, according to research by the Federal Reserve Bank of Cleveland.”
“They are ushered into a new life with lesser prospects and no clear path to reclaim what they lost.”
When I read this article, 2 things came to mind. How can house prices be increasing so much? And the governments “higher house prices will fix the economy” policy has failed.
This article perfectly summarizes what “the future belongs to Lucky Ducky” means.
Meanwhile, King Obama will be meeting this week with some CEO’s to push them to hire more of the long-term unemployed.
But the reality for many is, get laid off after age 50, and you may as well just kill yourself now, because there is no future left for you.
But the reality for many is, get laid off after age 50, and you may as well just kill yourself now, because there is no future left for you.
You can get $1000 a month (on average) from SSDI. Plus whatever else you can make on the side and under the table.
Now get out there and go buy a house.
What is “the economy”? Per capita income has fallen to what it was 15 years ago. Gas was $1.30 and so was cheese 15 years ago. So the price of everything doubles or more and incomes fall.
On the other hand, banks are making record profits. Maybe that is “the economy” that is fixed by high house prices.
“The difference is whether they were able to hang on to their jobs.”
I know quite a few people who lost their jobs and went on to go into business themselves. Not everyone fits this category. I also know others who gave up and found a shiny new “disability” to live on the government.
I know quite a few people who lost their jobs and went on to go into business themselves. Not everyone fits this category.
Very few do. For one thing, you need capital to start a business, even if you have few spending outlays to start a biz, because most likely you won’t turn a profit for a while, so you won’t be able to pay yourself until then.
I have seen people do this. Some succeeded, like a couple that I know who own a couple of Papa Murphy’s take-and-bake pizza shops. They had some savings when he was laid off, so they could buy into the franchise and they are doing OK now.
I also have a friend who tried to get into the coffee shop biz. He had a passion for coffee and all things Italian. He gave it 5 years while worked at a day job. He’d open the store at the crack of dawn, his wife would take over during the day while he went to work, then he came back and stayed until closing, for 5 long years, until it became obvious that they would never be able to compete with Starbucks. Actually, it was obvious after a year, but he tried all sorts of things to bring in more business. He was tenacious but in the end failed.
“They are ushered into a new life with lesser prospects and no clear path to reclaim what they lost.” ??
De Ja Vu 1982…….
Exactly scdave. The employment picture for young people was not great back then.
“Those who remained employed through the downturn endured anxious moments, lost value in their homes and may have forgone pay raises. But people who were laid off gave up months or years of earnings, lost homes, raided 401(k)s, went into debt, and now more often than not must take jobs for significantly less pay.”
Hopefully many of these folks are also home owners who have accumulated home equity gains through QE1, QE2 and QE3 housing market reflation programs.
“In 2007, Bob put half the money down on a new pickup and paid cash for a new motorcycle.”
Wow, a “heloc_for_toyz” in 2007 for crikey sakes?
“Invitation Homes is a subsidiary of the Blackstone Group, the world’s largest private equity firm. And over the past year and a half, it has spent a whopping $7.5 billion buying those 40,000 properties—1,000 of them in the Twin Cities.”
“Invitation Homes largely buys low-priced foreclosures. Then it spiffs them up and rents them out. Experts say large-scale purchases of foreclosures by investors like Invitation Homes have helped housing markets heal.”
“Had it not been for them, prices would’ve fallen further and it would’ve taken longer to recover,” says Elliot Eisenberg, a housing economist.”
This sums up the institutional investors role:
-Had it not been for them, prices would’ve fallen further-
I fail to see the logic in this.
Look. The excess, empty and defaulted inventory changing hands changes nothing. It’s still there, still excess, still empty.
“I fail to see the logic in this.”
Personally, I like it.
Higher prices translate to increased values of the underwater mortgages lenders are stuck with. The lenders themselves cannot do anything about the values of these underwater mortgages but other people can - other people who have access to money, other people who have access to other people’s money.
Since Blackstone has already acknowledged that their adventure in buy to let was a bust, we will be without them shortly and the influence on prices will reverse.
In reality, the percentage of excess bought by Blackstone was what….. less than a quarter???
The hype was priceless though.
Indeed it was….. And the failed outcome is most hilarious.
I’m guessing Oxide is hoping and praying this comment proves wrong.
“$7.5 billion buying those 40,000 properties…”
$7,500,000,000 / 40,000 = $187,500 per property, on average.
“In these pockets, we’re still looking at thirty, sometimes as much as forty percent of homes with mortgages that are underwater, which is significant,” says noted real estate attorney and author Shari Olefson.”
“For example, December’s headline data from RealtyTrac showed the national rate slipping to 18% of homes being underwater or having negative equity (which simply means a homeowner owes more than the property is believed to be worth), but at the bottom of the scale, there are still 9.3 million “deeply underwater” homes that are in the hole by twenty five or more. In fact, six states that are at least ten points above the national average of 18%, including Nevada (38%), Florida (34%), Illinois (32%), Michigan (31%), Missouri (28%), and Ohio (28%).”
“The case in certain cities is even worse, as the latest data shows towns such as Las Vegas, Orlando, Tampa and Chicago still have negative equity ranging from 33 to 41 percent.”
“It’s especially relevant now because interest rates are going up,” Olefson says, pointing out that these owners who have been unable to refinance out of a variable rate mortgages, as well as tax law changes that took effect January 1st, “will be even more tempted to walk away” from their homes.”
“If you do a short sale now, you’re going to have to pay income tax on the amount that the bank forgives,” she says, in describing the expiration of the Mortgage Debt Forgiveness Relief Act.’
“To run the numbers, say you owe $250,000 on your home in Chicago, but it’s currently only worth $167,500, and you get your bank to agree to waive the difference in a “short sale,” you now have to pay income tax on the $82,500. Whereas if you just walk away, give the keys to the bank and foreclose, you’d owe nothing.”
“So that five percent of homes nationwide that were being short sold, is just going to go away,” she says.”
“It’s hard to say what the full impact of that will be on a national basis, but at the very least it would suggest we are going to be going through a new period of adjustment.”
“The case in certain cities is even worse, as the latest data shows towns such as Las Vegas, Orlando, Tampa and Chicago still have negative equity ranging from 33 to 41 percent.”
I’m honestly surprised that so many held on despite the crashing values around them.
People are smart.
I worked in Tampa in 2011. I remember reading about some houses were sold at such low prices that they were at levels under the property tax level.
Of course the catch was mold, sink holes, and so on. In my nabe there were condos going for somewhere between $15,000 and $20,000. But I heard those had severe mold issues.
I lived in a very nice apartment. I reminisce how great it was! I paid in the $950 or less range for a newish two bedroom apartment with full kitchen, separate laundry room with full sized washer and dryer, crown moulding. I rented CORT furniture and was actually surprised how modern the furnishing was. I had the third floor unit - top floor. There was only one night when a neighbor was so noisy - some jealous woman knocking on the neighbor’s door at an odd hour. As for humidity - as long as I was inside, I kept my AC on full. I normally kept it so cold that I had to wear a sweatshirt. And the bill was very low. Three miles from a four lane LA Fitness swim pool, 13 miles from work, I had it made. Some neighbors were very very nice. An interracial community. And a bike path nearby. Why own when you get all this? Someone bought the apartment out from the complex and allowed me to continue the lease.
“To run the numbers, say you owe $250,000 on your home in Chicago, but it’s currently only worth $167,500, and you get your bank to agree to waive the difference in a “short sale,” you now have to pay income tax on the $82,500. Whereas if you just walk away, give the keys to the bank and foreclose, you’d owe nothing.”
Debt Forgiveness is Debt Forgiveness. I don’t see the difference between the short sale and the foreclosure. Unless we’re talking about a non-recourse Purchase Money Mortgage/Trust Deed in California and similar states.
“Debt Forgiveness is Debt Forgiveness.”
Doesn’t it matter whether federal taxes are owed on the debt forgiveness income?
Just in case Congress is still in the mood for offering tax free income, how about if my federal income taxes can be waived from here on out, after paying them without fail now every year for over thirty years?
Breakout
Sponsored by
Underwater mortgages are a bigger problem than the national average suggests
By Jeff Macke
13 hours ago
Breakout
If you follow real estate prices or sales trends or the number of homes going into foreclosure, you’re apt to have a pretty positive feeling that things are improving. If you dig a little deeper, however, and look only at the 15 hardest hit states, you’ll find a totally different story.
While these outlier markets and metropolitan areas are also seeing improvement, they are still years away from breaking even and being whole again.
“In these pockets, we’re still looking at thirty, sometimes as much as forty percent of homes with mortgages that are underwater, which is significant,” says noted real estate attorney and author Shari Olefson in the attached video.
For example, December’s headline data from RealtyTrac showed the national rate slipping to 18% of homes being underwater or having negative equity (which simply means a homeowner owes more than the property is believed to be worth), but at the bottom of the scale, there are still 9.3 million “deeply underwater” homes that are in the hole by twenty five percent or more. In fact, six states that are at least ten points above the national average of 18%, including Nevada (38%), Florida (34%), Illinois (32%), Michigan (31%), Missouri (28%), and Ohio (28%).
The case in certain cities is even worse, as the latest data shows towns such as Las Vegas, Orlando, Tampa and Chicago still have negative equity ranging from 33 to 41 percent.
“It’s especially relevant now because interest rates are going up,” Olefson says, pointing out that these owners who have been unable to refinance out of a variable rate mortgages, as well as tax law changes that took effect January 1st, “will be even more tempted to walk away” from their homes.
“If you do a short sale now, you’re going to have to pay income tax on the amount that the bank forgives,” she says, in describing the expiration of the Mortgage Debt Forgiveness Relief Act.
…
“A new report from Woodstock Institute estimates that there are more than 11,700 zombie properties in Cook County, including more than 5,800 in the City of Chicago. A property becomes a zombie when a mortgage servicer files for foreclosure and then does not complete the process and take ownership of the property or resolve the foreclosure by other means. For its report, Woodstock defines a zombie property as a foreclosure that has not been resolved for more than three years. Because neither the borrower nor servicer has clear control of the property, neither has a strong incentive to assume responsibility for the property. Zombie properties, therefore, are likely to be poorly maintained or blighted, which threatens the stability of surrounding communities.”
“Zombie properties will make it harder for Cook County to recover fully from the housing crisis, especially in the neighborhoods where they are concentrated” says Spencer Cowan, vice president of Woodstock Institute. ‘Zombies introduce an element of uncertainty that poses barriers to returning homes to productive use or finding creative ways to deal with blighted properties.’”
“Approximately 8.7 percent (more than 11,700 properties) of foreclosures filed between 2008 and 2010 in Cook County became zombie properties. Zombie properties are properties with a foreclosure filing that has not been resolved after more than three years. If trends continue for foreclosures filed in 2011 and 2012, Woodstock Institute estimates that there will be an additional 7,200 zombie properties in Cook County, including nearly 3,200 in the City of Chicago, by 2015.”
“…there are more than 11,700 zombie properties in Cook County, including more than 5,800 in the City of Chicago.
…
For its report, Woodstock defines a zombie property as a foreclosure that has not been resolved for more than three years.”
Does anyone have comparable numbers for California?
“Surveys have been completed on about two-thirds of all structures in Detroit as part of a project to eradicate blight in the city. The Detroit Blight Removal Task Force is on track to complete in February its database of 380,217 structures and vacant parcels.”
“The project aims to finally put an accurate number on blighted, vacant and deteriorating structures in Detroit, which has been battling the problem for years. Some city blocks have only a few occupied homes. Thousands of lots are empty, filled with trash and overgrown with weeds.”
“A major reason behind the plethora of abandoned houses is Detroit’s drastic population drop. The city has lost about a quarter-million residents since 2000, leaving thousands of homes empty.”
Detroit could be a model city of vast municipal wilderness areas. I guess a great time of year to live in the area would be one week in early May. Otherwise too dam cold or too dam humid
how about 11/12 ?
http://finance.yahoo.com/news/us-home-prices-dipped-nov-colder-weather-140018478–finance.html
too cold to buy !
Super Bowl is coming soon and everybody knows what that means!!!!
“China Credit Trust today announced that it has resolved the restructuring of an investment trust product called ‘Credit Equals Gold #1′. The WMP was used to finance a loan to a now-failed coal-mining company and was due to expire on 31 January, at which point the PRC would have had to deal with the first default of a popular form of investment product.”
“According to at least some observers, the fate of China’s $5 trillion shadow banking system had been hanging on the resolution of the troubled $469-million investment product, with fears that a default on CEG1 would undermine confidence in WMPs generally.”
“Now however, an asset management firm has stepped up to purchase the fund from China Credit Trust and, presumably, take control of the bankrupt mining company whose equity had been used as collateral in the trust product. In the result, financiers of the product will get back their principal but not the promised interest payment of more than 10 percent. There is thus a haircut for the investors and technically a default, even if the loss is relatively modest.”
“Danske Bank senior analyst Flemming Jegbjærg Nielsen writes that “the orderly default of CEG1 probably means that the risk of a major negative credit event later this week has been avoided”. Nielsen thinks though that there is “a high likelihood” that analogous cases could arise in the coming months because similar loans made in China “could be regarded as sub-prime or junk debt”.
“He says that it’s at least arguable that “a more severe default on CEG1 could have been healthy for the long-term development of China’s financial sector”, inasmuch as it would have sent a clear message to investors of the real underlying risks in such investment products. “In that sense,” argues the Danske analyst, “the partial bail-out announced today has just kicked the can ahead.”
“That’s a view shared by Bank of America Merrill Lynch economist David Cui, who describes China’s shadow banking system as “one of the biggest moral hazards in the financial market globally in recent years”.
“Responses to an online survey conducted by Sina Finance showed that more than 70 percent of Chinese people would not invest in trust products if WMPs were to be no longer guaranteed.”
“The finding suggests that regulators need to address the moral hazard problem soon, at which point “things may get ugly rather quickly,” opines Cui. “After all, the stability of the shadow banking sector is based on public confidence and we all learned from the subprime crisis that confidence is a fickle thing when the ground below is crumbling.”
WMP is contained.
“Turkey’s central bank hiked all of its key interest rates in dramatic fashion at an emergency midnight policy meeting, ignoring opposition from Prime Minister Tayyip Erdogan as it battles to defend the country’s crumbling lira currency.”
The bank raised its overnight lending rate to 12 percent from 7.75 percent, its one-week repo rate to 10 percent from 4.5 percent, and its overnight borrowing rate to 8 percent from 3.5 percent - all much sharper moves than economists had forecast.”
http://finance.yahoo.com/news/turkish-central-bank-sharply-hikes-main-interest-rates-221128334–sector.html
Which 100 countries will be next to increase their rates - overnight?
Thanks Bernanke !
‘Credit Equals Gold #1′
How can ANYONE possibly resist the temptation to invest in an investment trust product with such an enticing moniker?
“and all the things that go along with a house.”
Like huge capital losses. She’s a 57 year old teacher, that means the administration is trying its best to get rid of her to reduce salary costs, but she’s way too young to collect SS / medicare yet. She’s also young enough that when she tries to collect that gold plated pension, the well will be dry. Going to be retiring soon is exactly the wrong time for real estate speculation. A wise woman, should be teaching econ not art (or maybe she’s as smart about art as she is about econ…)
Happened to my mom too. The district wanted to get rid of the high-priced, experienced teachers. So, they offered a buyout. Mom took it.
She was bitter about how her career ended for a LONG time.
At least she got a buyout. Now you’re lucky if they give you 2 weeks pay.
A sister of mine in her late 50s was offered a buyout. I’m glad she did not take it. She does not talk about her finances. Ten or fifteen years ago she did ask for advice on saving. But I know she loves to spend and not save.
in pa they get 100% pensions- not bad for working 183 days a year
in my county they get 70k average pension
that’s allot of bonds
poor teachers NOT !
They aren’t that well paid everywhere. My sister is a bilingual teacher in NC with almost 20 years under her belt. She makes 40K. And no 100% pension either.
In our local school district they no longer give new hires pensions.
I don’t think it’s hit a lot of real estate professionals yet that sales have essentially hit a brick wall. They can blame it on low inventory but most of us realize it’s the PRICE. It’s just to DANG high.
As is the inventory.
Some do: Las Vegas Real Estate News
This guy looks really angry; he gives them a piece of his mind: