Weekend Topic Suggestions
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The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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Weekend topic suggestion: when will this echo-bubble hit its peak, or has it already done so?
Someone this past week posted a comment of “I’m calling top”; I would have to dig to recollect who.
But it made me wonder: are we really close to the top? Past the top? Still years from the top?
Predictions, anyone?
I’m cross posting this from the desk clearing comments:
‘The two-year-old U.S. housing recovery is faltering. “The big housing rally wiped itself out because prices increased too quickly for buyers to keep up,” said Richard Hastings, a consumer strategist at Global Hunter Securities LLC in Charlotte, North Carolina, who predicted the slowdown eight months ago. “The pool of eligible new buyers is collapsing” because of stagnant incomes and lack of credit, he said.’
Wiped itself out, huh? It recovered too much?
Here’s a chart that’s a bit interesting:
https://research.stlouisfed.org/fred2/series/MANEMP
It’s not that things are not being manufactured at the rate they used to be, its that things are not being manufactured HERE at the rate they used to be.
The new normal ? can it last ?
The Wall Street Journal By Kevin Warsh
“The Fed’s extraordinary tools are far more potent in goosing balance-sheet wealth than spurring real income growth. The most recent employment report reveals the troubling story for Main Street. While 217,000 jobs were created in May, incomes for most Americans remain under stress, with only modest improvements in hours worked and average hourly earnings.
Balance-sheet wealth is sustainable only when it comes from earned success, not government fiat. Wealth creation comes from strong, sustainable growth that turns a proper mix of labor, capital and know-how into productivity, productivity into labor income, income into savings, savings into capital, capital into investment, and investment into asset appreciation.”
Link
http://finance.yahoo.com/news/asset-rich-income-poor-economy-232700505.html
We should include a discussion on how people are faring with higher food prices, high gas prices and high utilities. The CNY area is approximately 427K and approximately 25 percent of the population is having a tough time paying their utility bills. Yes I personally know guys in their fifties retiring from this company with over a million dollar retirement package. In Syracuse people working for this utility have a saying which goes something like “ there are two kinds of people ones who work for National Grid and the others who want to work for national Grid.” So our house prices are high, food prices are high, gas is high, utilities are high. But the new LYING Fed doesn’t see inflation. WHAT CAN THESE PEOPLE DO?
National Grid sends nearly 100,000 termination notices a month to customers with overdue bills
http://www.syracuse.com/news/index.ssf/2014/06/national_grid_sends_nearly_100000_termination_notices_a_month_to_customers_with.html
Oh I forgot our property taxes are astronomically HIGH. A house now selling for 400K will cost you 24K and yes 24K in taxes. This is not a typo.
Two grand a month for real estate taxes. Unbelievable.
What services are provided with that?
Two grand a month for real estate taxes. Unbelievable.
That’s way more than my rent!
In what state?
CA is about 1.25% NM is about 1/3 of that.
Is your rate 6%?