Sellers Were Getting Overconfident On Pricing
The Denver Post reports from Colorado. “It has been a long, hard slog, but Colorado’s economy finally has reached unemployment rates last seen during the dot-com and housing booms. But for a variety of reasons, full employment this time around just doesn’t seem to feel quite so full. Rising real wages and stock values in the late 1990s and rising homeownership and home equity a decade ago contributed to a sense of upward mobility now lacking for many. Opportunities drew more people into the job market. This time around, workers continue to disengage, pushing down the unemployment rate and denting household incomes. ‘There are a substantial number of people who are voluntarily unemployed,’ said Tucker Hart Adams, an economist with Summit Economics in Colorado Springs. ‘At the same time, there are help-wanted signs up everywhere.’”
“Living costs along the Front Range, especially for housing, have far outstripped pay increases, contributing to a sense among low- and middle-wage workers that they are losing ground. Wage growth has averaged around 3 percent a year, but housing costs have been rising closer to 10 percent in metro Denver, said Patricia Silverstein, chief economist with Development Research Partners in Jefferson County. For some workers, it can make more financial sense to drop out of the workforce than foot the day care bill for multiple children.”
“After getting laid off from a good-paying job in hospitality management in 2013, Tameaka Johnston, 35, a Denver mother of three, dipped into retirement savings to make ends meet. ‘Most everything I was able to get was a server or restaurant manager, but I didn’t want to go back to the service industry,’ Johnston said. ‘Having three kids and a mortgage, I can’t live on ‘Maybe today’s going to be a good day.’”
This Garden Island in Hawaii. “Movement in the Kauai housing market in general is fairly static right now, said Realtor Tom Austin. ‘If you look at Kauai market statistics, the number of opened escrows and the number of closings in the last two or three months has leveled off,’ Austin said. Last year, the most expensive single-family homes were selling for an average of $940,000 in Hanalei, while the cheapest houses were still in Waimea. Austin said what happened to the market in Hanalei, and throughout the island, was that sellers were getting overconfident on pricing.”
“‘Sellers got very optimistic and they started pricing properties higher and higher,’ he said. When those properties didn’t sell, Austin explained, homeowners would lower the price. ‘Then buyers see that it’s been on the market for a long time and the price went down and they’re wondering what’s wrong with it,’ Austin said. ‘You price yourself out.’”
The Midland Reporter Telegram in Texas. “A drop in the average sales price of houses sold continued in September, but according to the director of the multiple listings service (MLS), that drop is bringing the market where it needs to be. Instead, Carroll Nall told the Reporter-Telegram that the Midland housing market ‘remains strong and consistent’ while providing more choices for potential buyers. ‘There are 250 more houses to choose from (compared to September 2014),’ Nall said. ‘The days of having four or five contracts on a house are over. People have more choices and are taking a little more time (when selecting a house).’”
WTNH on Connecticut. “While Alison Schneider is still trying to figure out what all of the keys go to in her new West Hartford home, it didn’t take her long to figure out that Connecticut is a buyers market. ‘I guess I was surprised there were so many out there and the pricing didn’t seem all that bad truly,’ she said.”
“Matt Miale, a realtor at Keller Williams, says the latest census numbers show that about 15,000 more people are leaving the state then moving in. That has been continuing for the past five years. ‘And that’s noticeable to. You do see him a lot more relocation opportunities in our business on people leaving the state than coming in, and that’s the first time we really started to feel that.’ said Miale.”
From Lillie News in Minnesota. “In its third attempt at shedding vacant lots from its inventory, St. Paul’s Housing and Redevelopment Authority have listed 27 vacant parcels around the city for sale. Most parcels are single-family residential lots, and priced under $10,000 — they’ve all been reduced in price by 20 percent, after they didn’t sell the first two times around, as per city policy. These 27 lots represent the majority of buildable vacant lots the HRA still owns, aside from some commercial parcels and some plots currently housing community gardens. Most of the lots for sale are residential, but a few are zoned for commercial uses.”
“Though the first rounds of vacant lot sales saw some decent response from buyers, this one has not yielded any applications as of yet — applications will be accepted through Friday, Nov. 6. Any individual can buy a lot; it’s not limited to developers.”
The Buffalo News in New York. “Larry Lamb, an East Side real estate investor, got into the business on the cheap – via the Buffalo and Erie County foreclosure auctions. Since 1995, he has amassed 12 homes, some for as little as $1,500. More than 2,100 Buffalo properties will be auctioned off this week, after their owners failed to pay city taxes, water bills or user fees. But you won’t see Lamb with a bidder’s paddle at the annual three-day auction.”
“A Buffalo News survey found that winning bids have skyrocketed by as much as tenfold in some city neighborhoods. In 2009, nine properties on Fillmore Avenue sold for an average price of $4,300. Four years later, the average spiked to $11,575 for eight properties on the same street. ‘The prices have become outrageous, outrageous, outrageous,’ he said. ‘I’ll be there just to see how high the bids will go, but I won’t be paying $20,000 for a house at the auction. It doesn’t make sense to pay $20,000 for a house that’s really worth $10,000.’”
The Patterson Press in New Jersey. “John Gomez, an emigrant from Colombia, said he works about 75 hours a week at three different jobs but can’t keep up with the mortgage on his Wabash Avenue home. Jose Duarte, meanwhile, has received an eviction notice because he is way behind on the payments on the Putnam Avenue house he owns. Another city resident, who only gave her name as Lydia, said she had just a decade left on her mortgage when she lost her job five years ago. ‘Don’t ask me how much I owe, because I don’t know,’ said Lydia.”
“They were among 30 people who attended a forum organized by the mayor last week to help Patersonians facing foreclosure. Gomez said he has paid $6,000 in legal fees trying to resolve his mortgage problems. ‘But nothing happened,’ he said. ‘I found out today that the advice is free. I regret paying for this. I filled out the form today. I’m going to set up an appointment to see if I can get a loan modification for my house.’”
“But Lydia said she has already sought help to no avail. ‘I have talked to the banks many times,’ she said. ‘Whenever I talk to someone, they take my name and hear my situation. I received a 28-page packet of forms in the mail that I filled out. I sent them back, but whoever I talk to they tell me to wait. When I hear back it is always another representative, so I have to start all over again. I really think they purposely let time go by so you get more in debt,’ she said. ‘I stopped making payments five years ago. I’ve told them my problems but they keep on giving me different reps.’”
“……..‘I’ll be there just to see how high the bids will go, but I won’t be paying $20,000 for a house at the auction. It doesn’t make sense to pay $20,000 for a house that’s really worth $10,000.’”
Now I see why HA says $55/SF is too much to pay for a house! That NE rustbelt has been cratering for years and $20,000 is too much to pay for a house in Buffalo? Supply…..meet NO demand.
Connecticut is losing 15,000 people/year? Who knew? They must be moving to the Sun Belt where housing demand is exceeding the supply.
Probably moving to where the remaining good jobs are.
Jingle_Fraud,
Paying more than construction cost($55/sq ft for lot, labor, labor materials and profit) is just as foolish in NY as it is right here in CA.
What a house sells for after a century of depreciation has no bearing on what it costs to build a house today.
I lived in that driveover neighborhood a few blocks to the east in the 50s. My dad paid $10,000 for it. 50 years later it was worth about the same. Basically the cost of a lot with services. But those houses were selling for $40 or $50K more recently. Bubble in depressed Buffalo just like everywhere else.
u[state ny
the house is free
just add taxes and utilities
Housing prices are grossly inflated there too.
Doral, FL Housing Craters; Prices Plunge 18% YoY
http://www.zillow.com/doral-fl/home-values/
“This time around, workers continue to disengage, pushing down the unemployment rate and denting household incomes. ‘There are a substantial number of people who are voluntarily unemployed,’ said Tucker Hart Adams, an economist with Summit Economics in Colorado Springs. ‘At the same time, there are help-wanted signs up everywhere.’”
Does ‘disengage’ mean ‘drop out of the labor force’?
Can’t say I blame them. I’ve been a worker bee for decades. Other than the early 1990s recession, I can’t recall another period comparably unfavorable to workers as the post-2008 central bankers’ distopia.
about 350,000 bankers have lost their jobs port dodd frwankie
I’ll have a 4-shot, 8-oz Americano, no creme or sugar.
“Wage growth has averaged around 3 percent a year, but housing costs have been rising closer to 10 percent in metro Denver, said Patricia Silverstein, chief economist with Development Research Partners in Jefferson County.”
According to HUD maths, is housing affordability increasing or decreasing due to their policies?
I covered this in a weekend topic. Here’s more:
‘The Federal Housing Administration’s effort to provide relief for homeowners through lower insurance premiums may have backfired, according to a MarketWatch report. The change, which went into effect in January, lowered mortgage insurance premiums for loans the FHA oversaw from 1.35 to 0.85 percent, in an effort to make loans even more affordable.’
‘However, the report noted that lower-end homes, or homes below 75 percent or less of the median transaction price, have seen an extra 3 percent per-year home price growth, from 8 percent to 11 percent by August. In effect, the change stimulated demand and, in the process, aggravated the already limited supply of homes, raised prices and pushed homes further out of reach for entry-level buyers.’
‘The Department of Housing and Urban Development (HUD) defended the change. “The [mortgage insurance premium] reduction we announced in January was not designed to impact the price of a home, but to impact the monthly cost a family would have to pay,” a spokesman for HUD said.’
‘The FHA’s share of loans rose from 6 percent in 2007 to 40 percent in 2010, as tight lending in the conventional market pushed more consumers to the agency. However, stricter guidelines on FHA loans were enacted due to fears of defaults, and the share of people who could get an FHA loan then dropped drastically until the beginning of 2015, ultimately bottoming out at 23 percent; thanks to the lower premiums, that share is just now beginning to rise again.’
‘In September, the FHA made three changes in an attempt to clarify the rules for its loans. One of these steps was to reevaluate how it judged banks that take on “high-risk” loans when based against other banks in the same geographical area. Additionally, the FHA also began requiring a minimum of six consecutive months of employment before applicants can be accepted for an FHA loan, and they judged deferred student debt alongside normal debt when looking at an applicant’s debt-to-income ratio.’
http://houstonagentmagazine.com/has-the-fhas-attempt-for-more-affordable-housing-backfired/
‘until the beginning of 2015, ultimately bottoming out at 23 percent; thanks to the lower premiums, that share is just now beginning to rise again’
The bottoming out was still 400% higher than what it was in 2007. If anyone was paying attention, this bubble was on its way to reversing in the fall of 2014, but FHA and FHFA opened the spigots, continuing through much of this year with an almost daily loosening in some form or another.
From this week:
‘The Toledo Blade reports from Ohio. “Home building in Perrysburg is in a resurgence. The city has home builder plats awaiting final approval, with just shy of 1,000 lots, said Brody Walters, Perrysburg’s zoning and planning administrator. During 2008 and 2009, the number of new homes built fell into the low 40s a year. Pent-up demand led to a brief surge to 62 starts in 2010, but that quickly subsided. In 2012, it slumped to 46 starts with an average new-home price of $205,000. In 2013, new homes jumped to 54, with an average price of $282,000. Last year, there were 59 housing starts, with an average price of $265,000. So far this year, there have been 46 housing starts, with an average price of $334,000.”
“Jon Modene, a real estate broker at Re/Max Masters in Perrysburg, said most first-time buyers are excluded from the home starts. ‘Now, the average start price is close to $400,000, which is unheard of in this market,’ he said. ‘Before you could do a cheap ranch home for $75 a square foot. You can’t build anything under $130 per square foot now.’”
KPAX in Montana. “The Flathead Valley is known for some high quality real estate. Chuck Olson Real Estate Supervising Broker Wendy Brown says 2015 is not over and yet their gross volume is already up over 40%. She says Baby Boomers are back into investing into secondary and retirement homes, especially those migrating from Minnesota and North Dakota. But, is it too aggressive? ‘So, what it’s saying is that we are probably even growing a little too fast and we need to steady out, but it’s great news - especially for sellers,’ Brown said.”
“Remax of Whitefish co-owner Monte Gilman says in the downturn it was the Canadians that took up to 50% of the buyer’s market in Whitefish, but now make up just 5% of clientele. He says growth is currently at 15% year over year, adding it’s a seller’s market, but coming in from the Canadian side of it. ‘In Whitefish, sale prices are about $350k and the trends are that the developers are starting to develop again.’”
From Florida Today. “Homes sales — and prices — continue to climb in Brevard County. In September, the median sales price of a single-family home jumped 32 percent from a year ago, from $129,900 to $172,250, according to Florida Realtors. Mike Slotkin, an economics professor at Florida Institute of Technology, said he’s concerned about the steep year-over-year home price increase. ‘That’s such a strong price increase that I’d start to worry the market is overheating…. This is something to look at seriously because those kinds of increases are the kinds of increases we saw years ago before the bubble burst, and that was not sustainable, he said.”
“Lynn Whelpley, president of the Space Coast Association of Realtors, said that the association is glad to see rising home prices, but added that there is some concern in the association that the prices might be rising too quickly. ‘We want to be cautious that the prices don’t go too high… The rise in prices is good as long as it’s slow and steady, and the prices don’t get falsely inflated,’ she said.”
http://thehousingbubbleblog.com/?p=9314
In three years new house prices almost double in Perrysburg, Ohio. There’s no problem. I’ve never heard of Perrysburg, but I’m sure there is a tech start up or gold discovery around.
Ben:
I have been to / thru Perrysburg several times as my son was attending Bowling Green State U - just south of the town.
Perrysburg is just south of Toledo - just off the I-80 corridor - and frankly in the middle of a corn field. How a town that size given location and in OH can even cast 400 k homes is beyond comprehension. It is small - no industry - does have a Mosque to the east of I-75 south of town - no other real industry to speak of. No high tech from what I could tell in my trips and stays there.
So….this might be a place that would act as a litmus test on the midwest housing market and pricing.
From what I recall folks back in the day would commute to Toledo or even up to Detroit for work - that work is now gone.
‘However, the report noted that lower-end homes, or homes below 75 percent or less of the median transaction price, have seen an extra 3 percent per-year home price growth, from 8 percent to 11 percent by August. In effect, the change stimulated demand and, in the process, aggravated the already limited supply of homes, raised prices and pushed homes further out of reach for entry-level buyers.’
Here’s a theory:
Demand-side stimulus policies fail to improve affordability because increased demand resuits in higher prices, driving down affordability.
But why isn’t the increased demand and higher prices resulting in additional supply (thus tempering price increases)?
We’re not close to peak housing construction–in other words, there is plenty of ability to build more homes. Why aren’t we?
I think you identified your discrepancy Rental_Fraud.
Housing demand is at 20 year lows and falling.
Why don’t you ask the shack builders?
Why Is Home Building Lagging Job Creation? - WSJ Blogs
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB4QFjAAahUKEwiD_peAiujIAhUGw2MKHVL5D1k&url=http%3A%2F%2Fblogs.wsj.com%2Feconomics%2F2015%2F09%2F10%2Fwhy-is-home-building-lagging-job-creation-realtors-builders-disagree%2F&usg=AFQjCNHTAOaWHLqseOzPnm1MuTwDHpy4ow&sig2=07biSL37UPpa0So8P3zsEw
They say straight out there isn’t enough demand. We’ve only been over this 3 or 4 times.
If there isn’t enough demand relative to supply, why are home prices going up? That flies right in the face of “there isn’t enough demand”.
The answer is more complicated.
“There isn’t enough demand” at current new home prices.
You know and I know that if new home prices were a lot lower, there would be a lot more new homes sold.
So, why aren’t builders building and selling cheaper homes?
Around here the reasons vary. The developers paid too much for the land. They are building apartments. I think that is everywhere.
There isn’t demand at any price Rental_Fraud.
-Who wants to be stuck with their money tied up in a depreciating asset?
-Who wants to be on the hook for 15 or 30 years of interest?
-Who wants to shell out $3/sq ft/year for repairs?
“The developers paid too much for the land.”
Yes, some builders paid too much (in particular in 2013), and they are hurting, trying to hold prices. However, not every builder bought land in every market in 2013.
Builders are always looking to enter new markets. And knowing of market weakness, why can’t new entrants buy land at prices that pencil at lower home prices (and thus undercut the builders who overpaid)?
Once again, why would they given housing demand is in the gutter.
Nobody is going to buy land when dirt prices are falling like they are.
“why would they given housing demand is in the gutter.”
Time and time again, there is data that shows homes that are lower priced sell very quickly (which is why low priced homes are going up in value faster than higher priced homes–that is where the demand is).
Lower priced homes sell quickly…there is plenty of demand at that level.
Why aren’t builders building lower priced homes?
No. Nothing is “selling quickly”. That’s why nobody is building. There is no demand.
http://www.trulia.com/blog/trends/fastest-moving-markets-2015/
Relatively speaking, lower priced homes are selling faster than higher priced homes (see the graph in the link).
If that is true, then builders should be targeting the lowest price possible.
‘Why aren’t builders building lower priced homes?’
If I have learned anything from doing these video’s, it’s that this stuff is complicated. You can see around Phoenix the developers paid too much, the FHA made some changes and most are stuck. But in Greer Ranch they are throwing up spec houses like crazy. In Queen Creek they ain’t taking chances much and I bet they’ll walk as the carry cost eat them alive. In Colorado Springs, they are somewhere in the middle but are already cutting prices of very expensive houses even as the flippers houses are being finished.
Denver is building like crazy, Dallas and Houston too. Texas makes up a huge percentage of the national construction, for years.
Why has land gone up so much in some places like Ohio? Let’s ask Janet Yellen that one.
You want a one sentence answer and I don’t think there is one. Check out my desk clearing post tomorrow. Apartment construction is at a 30 year high. Maybe so much demand has been pulled forward and student debt, that most people are choosing to not buy.
From the first story: “Median household incomes in Colorado, measured in 2014 dollars, were $60,940 last year, according to the U.S. Census Bureau. That was down from $66,316 in 2000 and $69,812 in 2007.”
My napkin says the median Colorado family should spend no more than $152,350 for their home, and they’d better have 20% down, i.e., $30,470, or no keys for them. On top of that they better make a 13th payment each year so their mortgage is settled before their children are ready for college.
“Movement in the Kauai housing market in general is fairly static right now, said Realtor Tom Austin. ‘If you look at Kauai market statistics, the number of opened escrows and the number of closings in the last two or three months has leveled off,’ Austin said. Last year, the most expensive single-family homes were selling for an average of $940,000 in Hanalei, while the cheapest houses were still in Waimea.”
We had the good fortune to visit the Garden Island a few years ago. I’m surprised their homes cost less than many nearby us in San Diego. But outside of tourism, I’m not sure what economic prospects are for people who don’t bring their wealth with them.
“Though the first rounds of vacant lot sales saw some decent response from buyers, this one has not yielded any applications as of yet — applications will be accepted through Friday, Nov. 6. Any individual can buy a lot; it’s not limited to developers.”
Any thoughts on why St. Paul lots priced under $10K won’t sell? I know it’s cold there, but this price point sounds like a good start on building an affordable home, as people do somehow manage to live in Minnesota despite the cold.
$10k is sketchy high even with well and septic on site.
Arvada, CO Housing Craters; Prices Plunge 15% YoY
http://www.movoto.com/arvada-co/market-trends/
Windermere, FL Housing Crumbles; Prices Dive 13% YoY
http://www.zillow.com/windermere-fl/home-values/
I’ve done a lot of thinking about that “family pedigree” article yesterday on the Bush family. I have to stop sometimes and go over what these people have done in the past. IMO it speaks volumes about how deeply corrupt our government and the media must be:
‘Jeb Bush defaulted on a $4.56 million loan from Broward Federal Savings in Sunrise, Florida. After federal regulators closed the S&L, the office building that Jeb used the $4.56 million to finance was reappraised by the regulators at $500,000, which Bush and his partners paid. The taxpayers had to pay back the remaining 4 million plus dollars.’
‘Neil Bush was the most widely targeted member of the Bush family by the press in the S&L scandal. Neil became director of Silverado Savings and Loan at the age of 30 in 1985. Three years later the institution was belly up at a cost of $1.6 billion to tax payers to bail out.’
http://www.rationalrevolution.net/war/bush_family_and_the_s.htm
The Wall Street Journal noted that in his purchase of the Texas Rangers baseball team, following “a pattern repeated through his business career, Mr. Bush’s play did not quite make the grade.”22 In 1989, an investment group he led was given preferential treatment to buy the Texas Rangers baseball team by its seller, a friend of George senior.23 When his bid proved deficient, baseball commissioner Peter Ueberroth brought another financier into the deal; he did this in part “out of respect for his father,” President Bush, according to a source close to the negotiations.24 Bush later successfully promoted a controversial arrangement in which the City of Arlington provided a $135 million subsidy for a new ballpark, funded by a sales tax increase, with an option for the team to repurchase the park at a vastly reduced price.25 The upshot was that George W. earned $15 million on a $600,000 investment when he sold his share of the team in 1998.26′
http://www.campaignwatch.org/more1.htm
Am I the only person that remembers all the scandals Bush the first was involved in?
I will point out some things about this baseball deal. I just happened to be going to college in Arlington at the time and I was paying attention to politics, etc. (It was well known what the Bush family was capable of as they could barely cover up all the self-dealing). The city scheduled a bond election for this stadium. But get this; we had had an election ONE WEEK BEFORE. So they took this bond vote out on it’s own little ballot and it was tied to a teacher raise. Now, if you go vote, how likely is it you will turn out a week later for an obscure bond deal? I voted against it, but it passed easily with just a few thousand votes (out of a city of 250,000 people). Obviously, the teachers alone could have pushed this thing through. So less than 5,000 people were able to hand the team over $100,000,000 in assets.
Kennedys, Bushes, Clintons….. it’s all the same corrupt gang.
How come this isn’t mentioned?
‘Jeb Bush defaulted on a $4.56 million loan from Broward Federal Savings in Sunrise, Florida. After federal regulators closed the S&L, the office building that Jeb used the $4.56 million to finance was reappraised by the regulators at $500,000, which Bush and his partners paid. The taxpayers had to pay back the remaining 4 million plus dollars’
If Trump had done this every person in the country would know it.
Who are all in the same clubs and go on vacations together: Skull & Bones, Bohemian Grove Summer Campmeeting, Bilderbergers Ski Trip, and so on . . .
I don’t know about all that but there is this:
George W. Bush Says Bill Clinton Is His ‘Brother From Another Mother’
http://time.com/3584031/george-bush-bill-clinton/
‘This is not the first public display of affection between the two former presidents. Clinton often refers to himself as the “black sheep son” of the Bush family, and Bush challenged Clinton to the ALS Ice Bucket Challenge earlier this year.’
Nothing new; both of them are pawns of the GPTB (as is Obama now, as well as Hillary). Bush Sr. made that clear with his “1000 points of light” speech way back in the day.
Looking backwards in time: Kissinger and Rockerfeller laid the groundwork back in the early 1970s for US manufacturing to go to China. By Reagan’s term, outsourcing jobs and closing US plants was getting into high gear. Bush Sr. maintained course.
Clinton/Gore continued the jobs bleeding with their granting Most-Favored Nation trading status to China (selling out all of their union supporters).
When you look backwards you can see that, regardless of party, they were all working from the same globalist playbook.
So not really a surprise that they are friends.
Ben:
I lived in Denver while the Silverado S and L was going down - Neil Bush was all over the news at the time. I still have yet to know if he spent any jail time after bilking billions from the bank all while purporting to uphold the meme of home ownership - Man does that sound familiar eh? I recall his older brother W was using the same meme in the run up to the housing bubble.
The guy that really took it in the shorts was the former All American swimmer, Charles Keating and his outfit called Lincoln Savings & Loan (a PHX operation at the time). Chucky did not play by the Bush rules ended up being the one thrown under the bus. I actually felt sorry for the guy after a time because he fell on the sword for ALL the other including the Bushes who should have been in prison as well.
The whole Bush clan - like the Clinton oligarchy - enrich themselves at the expense of the nation. These folks ought to be tried for crimes and misdemeanors - each and every one of them. What a disgusting bunch!!
January 26, 2004
‘In the annals of embarrassing presidential relatives, Neil Bush is no Billy Carter or Roger Clinton. But his messy divorce has produced some eye-opening disclosures. For his part, Bush defended the fees he has received for consulting jobs. But he gave little insight into whether the women who offered him sex in Hong Kong and Taiwan were perhaps paid by mysterious benefactors.’
‘In a deposition taken last March and reviewed by The Associated Press, Bush told the attorney for his wife of 23 years, Sharon, that the women did not ask him for money and he did not pay them anything. Asked how he knew what to do when he opened his door and saw a woman standing there, the 48-year-old Bush replied: “Whatever happened, happened.”
“It’s a pretty remarkable thing for a man just to go to a hotel room door and open it and have a woman standing there and have sex with her,” said the attorney, Marshall Davis Brown. “It was very unusual,” Bush replied.’
‘It is not the first time Neil Bush has caused his family some trouble. At the end of his father’s presidency, Neil was among a group of defendants who agreed to pay $49.5 million to settle a negligence lawsuit over the $1 billion collapse of the savings and loan he directed in Colorado.’
‘Bush denied wrongdoing and was not charged in the grand jury investigation, but the U.S. Office of Thrift Supervision found Bush’s conduct “involved significant conflicts of interest and constituted multiple breaches” of his fiduciary duties.’
‘Bush has gone on to reap profits from other ventures. In the deposition, he said he hoped to receive an estimated $2 million for acting as a consultant to Grace Semiconductor Manufacturing Corp., co-founded by Jiang Zemin’s eldest son. “Now, you have absolutely no educational background in semiconductors, do you Mr. Bush?” Brown asked. “That’s correct,” said Bush, who holds an MBA from Tulane University.’
‘Bush recently told the AP he has “not received one penny of compensation” from Grace Semiconductor because he never did the consulting. He did not respond to a request for comment on his divorce proceedings.’
‘Bush has focused most of his energy on Ignite Inc., an Austin-based educational software startup. So far, he has raised $23 million from investors, including Winston Wong, the other founder of Grace Semiconductor. “Let’s face the reality,” Bush told the AP in 2002. “I probably have access to people who probably wouldn’t meet with a development-stage company, but I feel I’m held to a higher standard.”
‘Rice University political science professor Bob Stein, “there is a family pattern here where the Bush sons - Jeb, Neil and George - have benefited tremendously by their connections through their father.”
http://www.cbsnews.com/news/embarrassing-bush-divorce-papers/
‘ The CIA’s first user request in connection with BCCI was from the Federal Reserve in 1981, which asked the CIA whether the CIA had any derogatory information concerning the Middle Eastern shareholders who were about to buy Financial General Bankshares (FGB), which later became First American Bankshares, through the holding company CCAH. The CIA, after reviewing its records, told the Federal Reserve that it had no derogatory information on the shareholders, who included Kamal Adham and Abdul Raouf Khalil, the past and then-current Saudi intelligence liaisons to the United States.(10)’
‘The CIA did not tell the Federal Reserve that Adham and Khalil were foreign intelligence liaisons of the United States, nor did it advise the Federal Reserve that both Adham and a third FGB shareholder, Faisal al-Fulaij, had been the subject of a Securities and Exchange Commission probe in connection with violations of the Foreign Corrupt Practices Act by Boeing and Lockheed for arms sales to Saudi Arabia.(11)’
‘There is conflicting evidence as to whether the Governors of the Federal Reserve were aware of the intelligence background of any of the CCAH shareholders. However, at the staff level at least the Federal Reserve did learn in 1981 of both the intelligence contacts of Adham and the SEC probe into his and Fulaij’s alleged receipt of bribes.(12) Former Federal Reserve Chairman Paul Volcker, who signed the order approving the application of CCAH shareholders to take over Financial Bankshares, testified before the Senate Banking Committee in early 1991 that he “wasn’t aware” of Mr. Adham’s intelligence background, and that “he was sure that it might send an eyebrow or two up,” and that “it might provoke further investigation.”(13)’
‘Because BCCI was not officially purchasing FGB, and a condition of the purchase was that BCCI not be involved in the transaction except as an investment advisor, the Federal Reserve did not ask the CIA about BCCI itself. If it had done so, it would likely have learned about BCCI’s involvement in money laundering.’
‘According to the contemporaneous CIA records retrieved during the search of Agency files during the summer of 1991, the CIA first developed information concerning BCCI, which it provided users in the U.S. government, in 1979. After learning in the early 1980’s that BCCI was, as an institution, involved in money laundering activities, the CIA began by the mid-1980’s to target BCCI as an institution for foreign intelligence collection. Initially, this collection operation was small. The CIA began a larger and more comprehensive operation as of 1986, which continued through 1990. This operation focused on the “people, the mechanisms, and the way that BCCI laundered narcotics money.”(14)’
‘In the course of targeting BCCI for laundering drug money, the CIA learned of BCCI’s involvement in manipulating certain financial markets, in arms trafficking, and in supporting international terrorism, including handling the finances of Sabri Al-Bannah or Abu Nidal, and his terrorist organization.(15)’
‘Between 1979 and 1991, the Directorate of Operations of the CIA produced several hundred reports containing intelligence concerning BCCI. BCCI was also discussed in a number of finished Directorate of Intelligence analytic studies, as part of larger discussions of terrorism and counter narcotics.(16) Among these reports was detailed reporting on the use of BCCI Panama by major narcotics traffickers. The Operations Directorate also prepared three special analytic reports, incorrectly characterized by Kerr as having been prepared by the CIA’s Intelligence Directorate, one each in 1985, 1986, and 1989, discussed below in some detail.(17)’
‘Kerr acknowledged that the CIA had also used BCCI for certain intelligence-gathering operations, and characterized the use as limited and routine, and undertaken without the knowledge of any person at BCCI. A Senate Intelligence Committee audit, conducted in the summer and fall of 1991, confirmed Kerr’s testimony on that point, according to a briefing provided by the auditor to Subcommittee staff. The Subcommittee was not permitted by the CIA to read the actual report generated by Senate Intelligence Committee staff, and thus detailed review by the Subcommittee of that audit has not been possible.(18)’
http://fas.org/irp/congress/1992_rpt/bcci/11intel.htm
‘B.C.C.I.: The Dirtiest Bank of All
How B.C.C.I. and its black network became a financial supermarket for crooks and spies — and how the U.S. is trying to cover up its role, July 29, 1991 ‘
‘”I could tell you what you want to know, but I must worry about my wife and family — they could be killed.”
– a former top B.C.C.I. officer
“We better not talk about this over the phone. We’ve found some bugs in offices that haven’t been put there by law enforcement.”
– a Manhattan investigator probing B.C.C.I.
‘Bank-fraud cases are usually dry, tedious affairs. Not this one. Nothing in the history of modern financial scandals rivals the unfolding saga of the Bank of Credit & Commerce International, the $20 billion rogue empire that regulators in 62 countries shut down…’
http://content.time.com/time/magazine/article/0,9171,973481,00.html
Originally published Dec. 20, 1993
‘The building at 1390 Brickell stopped making money, so Bush and Codina didn’t have to pay Houston. Houston’s S&L foundered, he was in financial trouble, and he defaulted in 1987 on his loan from Broward Federal. Broward Federal sued Houston as well as Bush and Codina to determine who should pay back the $4.56 million. Broward Federal went belly up in 1988, and the government took over.’
‘The government wound up repaying most of the $4.56 million loan from Broward Federal. But whether it was “bailing out” Houston or Bush and Codina or just making the best deal possible, as federal officials say, may always be a matter of opinion.’
“It is real easy in hindsight to pass judgment on these things,” Jeb said, “but there is no one on the planet that would have done anything differently than we did.”
‘Bush and Codina first agreed to turn the building over to the government. But the government didn’t want the $7-million first mortgage that went with it, Dan Griffin of the FDIC told the New York Times. The value of the building had dropped from $9.5 million to $6.5 million by 1989, so regulators decided to let Bush and Codina keep it.’
‘And because Houston was basically broke, the FDIC figured it would be lucky to recover 10 cents on the dollar for the loan, FDIC lawyer Charles Fulton said. Bush and Codina finally paid $505,000 from their reserve fund to the FDIC. The second mortgage was extinguished. They still had the $7 million first mortgage and had to pay $1.3 million in taxes for the forgiven debt. And they had the building.’
‘Jeb does not feel he was bailed out. “Hellllll, no. Absolutely not,” he said. “And this one really troubles me because it is so far removed from the truth.”
‘But isn’t it fair to talk about BCCI, the Times asked, when there have been public mentions of Jeb’s association with Sakhia? Jeb’s answer sounds angry on paper, but at the time his tone was partly annoyed, partly amused.’
“There have been public mentions of the fact that I’m a drug dealer. It’s been in books. There’s public mention of a lot of bullshit that’s not even close to being true. What’s fair is the truth. And where there is a definitional dispute of the truth, that’s fine, that’s what I’m here to try to explain. But when it is just bizarre, conspiracy-theory, weird, five-steps-removed, guilt-by-association stuff, I think clearly we can discard that one. . . .’
“Abdur Sakhia — frankly, a lot of this has to do with the fact that we’re in Miami and these are foreign names and of course, there’s something there. People with Z’s at the end of their names or vowels, you gotta be careful with.”
Q: BCCI laundered drug money —
A: They’re bad people!
Q: — and funneled money to the Contras.
A: That’s right. And I had nothing to do with them. Never did. So next case.
‘Jeb and the contras’
‘Jeb Bush says he never knew that Oliver North and others illegally were arming the Contras in Nicaragua. He says he never knew that profits from arms sales to Iran were being diverted to pay for the Contra war. “I have no fingerprints on that one, thank goodness,” he said.’
‘But Jeb was a staunch supporter of the Contras. He thought Congress was wrong to cut off funding for the war against the communist Sandinistas. He considers himself close to the Hispanic community in Miami, which is heavily Nicaraguan. And when Nicaragua had a chance to elect a democratic government in 1990, Jeb agreed to help.’
‘Congress sent $9 million to Nicaragua for the election, but it was to be used only for the multiparty electoral process, such as voter registration verification and poll watchers. It was not to support any candidate.’
‘So a group of Americans decided to raise money specifically for the National Opposition Union (UNO), whose candidate was Violeta Chamorro, the owner of the anti-Sandinista newspaper La Prensa. This was never a secret. The group had a news conference on Capitol Hill. Twenty-two members of Congress were on the steering committee, a bipartisan effort that included Florida Sens. Connie Mack and Bob Graham; Reps. Dante Fascell, Clay Shaw and Ileana Ros-Lehtinen; then-Gov. Bob Martinez; and Jeb Bush.’
‘The group, called the Committee for Freedom and Democracy in Nicaragua, had offices in Jeb Bush’s building at 1390 Brickell.’
‘It’s unclear how much the group raised. Maybe $500,000. Possibly $1 million. Everybody was a little touchy, of course, after Ollie North and Iran-Contra, so the Justice Department gave its official blessing to the fundraising.’
http://www.tampabay.com/news/politics/stateroundup/from-the-archives-jeb-bush-his-name-is-scrutiny/2232393
Anytime between now and the next leg down is a beautiful time to sell… and hold(rent)!
Why buy a rapidly depreciating asset at a grotesquely inflated price and sustain a lifetime of losses when you can rent it for half the monthly cost?
Buy later when housing bottoms for 65% less.
Zillow has fl price predictions moving all over. Some vary wildly only 2 zip codes of separation
“Matt Miale, a realtor at Keller Williams, says the latest census numbers show that about 15,000 more people are leaving the state then moving in. That has been continuing for the past five years. ‘And that’s noticeable to.”
Just raise the taxes again, that will fix it.
New budget includes $200 million income tax hit on middle class
By: Keith M. Phaneuf, Arielle Levin Becker and Jacqueline Rabe Thomas | June 1, 2015
A last-minute component of the new two-year state budget deal includes a $100 million-per-year income tax hike on Connecticut’s middle class, according to budget documents released early Monday.
Add in the $200 million extra in income taxes that the middle class will pay, and this amounts of more than $500 million in extra revenue coming to the state from middle- and lower-income households.
The middle-class income tax increase boosts the overall new tax revenue in the new budget beyond $1.8 billion over two years, prompting Senate Minority Leader Len Fasano, R-North Haven, to predict middle-income families would join businesses, hospitals and other groups subjected to big tax increases in denouncing the plan.
“The way the Democrats tried to spin it is disingenuous,” Fasano said. “This is not tax relief for the middle class. This is a hit on the middle class. This is a hit on everybody.”
ctmirror.org/…/01/new-budget-includes-200-million-income-tax-hit-on-middle-class/ - 196k -
in my st/county gov workers can retire at age 55
smoke that
“This is not tax relief for the middle class. This is a hit on the middle class. This is a hit on everybody.”
Got TABOR?
It is funny how state government can make ends meet, even though revenue increases are limited to inflation and population growth? Sure, the legislators whine and complain about how they need more money to spend, but at the end of the year the stuff that matters gets done. And when the economy is strong and excess monies are collected, we even get refunds!
Imagine that
Isn’t is a standard statement here, that you should cut your losses, and default on your loans if you get under water?
It almost looks as though that building was purchased for $500,000 with little mention of the first loan and the tax payment
Business is business!
Professor Bear is correct, the practice of making it easier to buy a house by providing assistance to the home buyers in any form, increased demand forcing home prices up!
the assistance fed on its self, requiring more assistance as house prices rose, causing prices to spiral upwords
the Crash forced prices downward, allowing investors to buy with low interest payment, and turning the rental market upwards
Rising rents on income property forced prices higher as demand for rental property increased,
Rising prices forced income increases in employed people, making them more able to pay rent and home payments, again forcing prices higher
All requiring more money in circulation, forcing money printing, and when that stops the ladder falls, and humpty dumpty breaks down.
Bail now, go to commodities and wait it all out or buy agriculture as that is always needed