January 28, 2016

Where Trees Don’t Grow To Heaven

A report from the Real Deal on New York. “Chinese investors only really started piling into New York’s commercial real estate market two years ago, and The Real Deal proclaimed 2015 the ‘year of the Chinese investor.’ But now, a growing number of developers argue the party may already be over. ‘We should be looking for other sources of capital over the next few years,’ Jeff Blau, CEO of the Related Companies, said at a 2016 real estate outlook conference hosted by ULI New York Wednesday morning. Related received bids from all over the world to recapitalize the first Hudson Yards tower by Tuesday, Blau said, but Chinese investors were notably absent. ‘We got probably 10 bids to recap, but no Chinese,’ he said.”

“Leslie Himmel, a principal at Himmel + Meringoff Properties, suggested that a slowdown in luxury apartment sales to foreigners could doom condo projects and ultimately spill over into the office market, pushing down prices. ‘Are we going to go back to basics,’ she said, ‘where trees don’t grow to heaven and where we will be able to buy at a four, or five or six cap?’”

The Los Angeles Times on Texas. “Of 40,000 estimated jobs lost in the oil and gas sector in the Houston area last year, many were on the west side, including about 13,000 white-collar professionals. On the west side, luxury town homes sit empty, and million-dollar homes that once sold within 48 hours linger on the market weeks later. Clark Martinson, general manager of the Energy Corridor District, has friends who have taken early retirement, sold summer homes or unloaded their homes here and moved into rentals. ‘People were happy, living fat, and now it’s leaner,’ he said.”

“Doug Poteet, an offshore engineer, complained that ‘massive layoffs’ have forced friends with decades of experience in the oil industry to go to work for UPS, Uber and car dealerships. ‘If this goes on another year, you’re going to start to see foreclosures,’ he said.”

WVVA on West Virginia. “As the coal industry declines and jobs begin to disappear, housing markets in southern West Virginia feel the strain. Raleigh County is no exception. ‘800 houses on the market, real estate for sale, and what does that tell you? A lot of people are leaving. I know one public service district here locally has 97 empty houses,’says Dave Tolliver, Raleigh County Commission president.”

“The risks for the housing market lie in foreclosures as money dries up but also in the amount of houses popping up for sale. ‘Typically when someone gets laid off and they don’t have a chance of being called back to work, they’ll try to get their house on the market and get it sold. Obviously if too many come on the market, supply and demand kicks in and that pushes the prices down,’ says Mike Tyree, broker owner at Century 21 First Choice.”

KFYR TV on North Dakota. “After several years of rapidly increasing home prices in the Bismarck-Mandan area, prices are now stabilizing. The area is now in what one realtor describes as a corrective market. Alliance Real Estate’s Patsy Chapman says this correction began about 18 months ago. ‘When the market is escalating, it just seems like a lot of people have buyer’s remorse later on. This time, they’re able to step back and give a little more thought to their purchase, so I think it’s a win for everyone,’ Chapman said.”

KTNV in Nevada. “A vacant store that had recently been turned into a ‘homeless condo’ according to neighbors is now boarded up. Clark County sent crews out to secure the property just days after Action News contacted them about the problem that nearby businesses say has been going on for a month. Clark County Commissioner Chris Giunchigliani says she sees the problem all over the valley, including in many vacant homes. ‘If you think about it in housing, you’ve got so many out of state property owners or banks that don’t give a hoot,’ Giunchigliani said.”

From CBS News. “Back-stopping the nation’s banking system was the top federal priority during the height of the 2008 financial crisis. But out of the $475 billion that Congress authorized for the Troubled Asset Relief Program (TARP), $46 billion was supposed to help millions of struggling families avoid foreclosure. In 2013, Christy Goldsmith Romero, special inspector general for TARP, warned that homeowners were defaulting on their modified loans at an ‘alarming rate.’ In the IG’s most recent quarterly report to Congress in September 2015, the rate of default on these reset mortgages increased greatly over time.”

“For borrowers who first sought mortgage relief under HAMP when the program was launched in 2009, the redefault rate is nearly 53 percent. Overall, more than a third of people who have participated in the program over its lifetime have redefaulted. ‘The longer a homeowner remains in HAMP, the more likely he or she is to redefault out of the program,’ Romero’s office concluded.”

“‘Nobody wants to deal with the reality that these mortgage modifications were not affordable long term,’ said Kathleen Engel, a research professor at Suffolk University Law School in Boston and author of ‘The Subprime Virus: Reckless Credit, Regulatory Failure and Next Steps.’ Said Engel: ‘[The mortgage modifications] were all predicated on the property values appreciating in value, but they actually declined.’”

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Comment by Mr. Banker
2016-01-28 05:13:43

“While the Justice Department pursued large payouts from the Wall Street banks instead of criminal prosecutions …”

… which gave the individual bankers a free pass. Note that “Wall Street banks” (aka stockholders) paid out the big bucks and not the bankers themselves. Bahahahahaha …

“… the Treasury Department created a multibillion-dollar suite of programs, which induced the very same banks to service the mortgage modifications with billions of dollars of taxpayer-funded incentive payments.”

Bahahahahahahahahahahahahahahahahahahahaha … and who in the bank received the hefty fees and bonuses for servicing these mortgage modifications? Why, it was the same bankers that got a free pass by not being prosecuted.

In the banking business no bad deed gets punished. God’s Plan.


Comment by inchbyinch
2016-01-28 10:43:22

That is why fines and penalties are worthless, just pocket change. My husband says throw all the SOBs in jail, and then only then, can we start cleaning up the FIRE mess.

Same with the American Chemical Assoc and their fake euphemism names. They are denying plastics are hormone disruptors and cause some cancers, although objective scientist say otherwise. Throw them in jail as well.

All these financial thugs have one thing in common, they took denial right out of the Tobacco Industry Playbook. None of those lying under oath thugs went to jail either.

Comment by Mafia Blocks
2016-01-28 05:43:19

Massive fraud, massive excess housing inventory, massive coordinated release of skewed data.

Nothing new to see here.

Comment by Mafia Blocks
2016-01-28 05:48:43

Denver, CO Housing Prices Crater 5% YoY


Comment by Ben Jones
2016-01-28 06:10:16

‘People were happy, living fat’…decades of experience in the oil industry to go to work for UPS, Uber and car dealerships’

Hard to make that mcmansion payment driving people around in your BMW. Question; am I supposed to feel sorry you guys aren’t living fat off my gas money? I kinda like where we are now, at $1.67. I’ll like it even better at $1.05.

Comment by Mafia Blocks
Comment by CalifoH20
2016-01-28 13:26:33

Yep, they should have saved fro a rainy day when oil fetched $147 a barrel.

Comment by Ben Jones
2016-01-28 06:13:12

‘In 2013…homeowners were defaulting on their modified loans at an ‘alarming rate.’ …in September 2015, the rate of default on these reset mortgages increased greatly over time’

Sad pandas note; your hero’s are foaming the runway for banks with over a million FBs.

Comment by Ben Jones
2016-01-28 07:32:02

This got me to thinking:

‘Another large for-profit college is under government scrutiny — this time, it’s DeVry University. The Federal Trade Commission on Wednesday sued DeVry, alleging that it misled consumers about students’ job and earnings prospects.’

“Many students, including those who studied at DeVry, incur significant financial expense to improve their employment opportunities upon graduation,” said Ramirez. “It’s especially important that educational institutions give prospective students the truth about whether their courses will help them obtain the jobs that they want in their chosen field.”

How come it’s not fraud when “Making Home Affordable” results in a 50%+ re-default rate?

Comment by Ben Jones
2016-01-28 07:36:05

‘Feds: DeVry says a Cheesecake Factory waiter is putting business degree to use’

Why doesn’t the media find FB’s who went through re-default hell and tell us how they were fooled into thinking they were getting a good deal? With a 50% failure rate, it would seem this program is far more deceptive than telling people they can get a better job.

Comment by Mafia Blocks
2016-01-28 07:36:30

And one doesn’t need to look any further than the “appraisal” and the cozy, convenient relationship between “appraisers,” realtors, mortgage salesmen and “inspectors”.

These crimes are so widespread it’s considered an acceptable practice.

Comment by Ben Jones
2016-01-28 07:46:52

I’ve read so much about “low inventory means prices are going even higher” lately. As if there is no appraisal process or even the consideration of slowing it down. Rather, when it does slow-down, out comes Mel Watts with more standard lowering. How many of these have we seen over the past few years? Dozens?

It’s gotten to the stupid stage. Mr Jones, you don’t earn enough to get this loan.

Oh, I have an uncle who makes some money and he said he’ll help me out.

Fine then! He doesn’t need to co-sign either.

I qualify people for rent. I would never accept the idea that someone other than a tenant was going to pay the rent. Based on verifiable income. But the government changed to rules to allow hundreds of thousands of dollars to be handed out on just such an arrangement. You say there’s no subprime?

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Comment by da bear
2016-01-28 15:46:36

Hmmm, maybe we get SUBPRIME RENT next. You go to the bank, and borrow money to pay the rent. Six months at 0% then the next 5 years at LIBOR x 12.

Why BORROW to BUY a house, when you can borrow to RENT a house?

Collateral? The rented house, that the so-called “OWNER” hasn’t made a payment on since 2007!

Fun for the whole family!

Comment by Combotechie
2016-01-28 07:58:17

I typed into Google “devry scams” and got back 98,600 hits.

Here’s an example:

“University of Phoenix, DeVry scams that will leave you “dumber” and poorer.”


It’s not as if there is no information out there in cyberland for those who care enough to look.

Comment by Ben Jones
2016-01-28 08:14:24

HARP re-default

About 1,310,000 results

There was this:

‘During the recent housing recession and financial crisis, mortgage modification has been heavily promoted by government as a way to stabilize the housing and the national banking systems. Numerous programs, such as the Home Owners Preserving Equity (HOPE), Home Affordability Modification Program (HAMP), and Home Affordability Refinance Program (HARP), were introduced or enhanced to allow more aggressive modifications than traditionally observed prior to the crisis. Loan modification is believed to be a way to avoid foreclosure and help borrowers to keep their homes. However, the effectiveness of modification in preventing eventual foreclosure has not been quantified.’

‘In this paper, we use FHA modified loans to analyze their re-default risk. We use loan-level data to trace the performance of loans with heavy modifications. We have three major empirical findings. First, the empirical model shows that modified loans tend to have much higher re-default risk than otherwise identical never-defaulted loans. Second, the re-default model shows that re-default hazard is less sensitive to traditional risk drivers, compared with non-modified loans. Third, the re-default risk declines initially with the magnitude of the payment reduction associated with the modification received. However, as the payment reduction becomes substantial, the re-default probability increases.’

‘Our empirical results suggest payment reduction is most effective around 10% to 30% level, in order to reduce the re-default risk. The effect is relatively flat between 30% to 40% level. Payment reduction beyond 40% level turned to increase re-default risk, controlling for all observable variables.’


You read that right folks. The more payments are lowered the higher the probability of re-default.

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Comment by Mafia Blocks
2016-01-28 08:22:23

Kicking the can down the road drives failure rates higher.


Comment by Ben Jones
2016-01-28 08:27:05

I get these emails from HUD and I usually don’t bother to pass on the daily loan pimping scam. Todays:

‘In an effort to help preserve and increase the amount of affordable, quality rental housing across the country, the Federal Housing Administration (FHA) today announced a multifamily insurance rate reduction designed to encourage capital financing of affordable and energy-efficient apartments. The rate reductions announced today will take effect on April 1, 2016, and will directly impact FHA’s Multifamily Housing Programs and properties housing low- and moderate-income families and/or developments installing energy-efficient systems or building within federal energy guidelines. Read FHA’s new Multifamily Insurance Rates.’

‘U.S. Housing and Urban Development (HUD) Secretary Julian Castro made the announcement today during a visit to an affordable housing complex in Columbus, Ohio. FHA estimates that the multifamily insurance rate reductions will spur the rehabilitation of an additional 12,000 units of affordable housing per year nationally, meaning over the next three years nearly 40,000 families could benefit from higher quality and affordable housing.’

The apartment bubble really needs goosing there Castro. I’m sure more evictions and parking lot painting, followed by major rent increases will ensue.

Comment by BearCat
2016-01-28 10:03:26

If DeVry is a scam, so are plenty of “non-profit” colleges….

For example, law schools have been lying about prospects for their graduates for years…

What about your job prospects with a graduate degree? In most cases, not good — and given that college is in a bubble, probably about to get a lot worse.

Or if you have an expensive “studies” degree from an >$30K/year college???

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Comment by Combotechie
2016-01-28 11:17:16

I’ve been told by those involved in academia that the purpose of college is “to get an education”, which is not the same thing as qualifying for a job.

Told to me, of course, by those who had a job in academia; I haven’t run into anyone outside of academia who feels this way.

Comment by BearCat
2016-01-28 12:09:45

You can “get an education” at college, but it takes the right student and the right college (typically NOT a “name brand” one).

Comment by CalifoH20
2016-01-28 13:24:29

College is a test, can you get through it, motivation, dedication, social skills, self-control, ability to have fun…..

30% make it.

Comment by inchbyinch
2016-01-28 13:42:12

A low demand major vs. a high demand major are two different animals. From our experience, we can tell the difference immediately. The low demand majors don’t understand inductive vs. deductive critical thinking.

Child Development is a trade school curriculum, not a university degree, imho.

Comment by aNYCdj
2016-01-28 17:13:26

i remember my father saying 90% of the problem is in the last 10%. so start at the end and think backwards till you get to the problem . it worked fixing tube tv’s almost all the time.

and it seems to work with most everything else…..there is always an inflection point which can change the outcome.

just like race has nothing to do with the people in jail but severe functional illiteracy does, so why do we let them out to roam the streets still being illiterate?

Comment by snake charmer
2016-01-28 11:54:51

Sure there’s a lot of information out there. But there’s no fact that can’t be overcome by a determined marketing campaign.

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Comment by Professor Bear
2016-01-28 07:12:20

‘We should be looking for other sources of capital over the next few years,’

Could ECB QE supplant the vanished Chinese capital?

Comment by Professor Bear
2016-01-28 07:14:21

‘If this goes on another year, you’re going to start to see foreclosures,’ he said.”

It’s part of the plan.

Next up: Save Our Homes bailout measures under President Clinton

Comment by Double Flip Triple Gainer
2016-01-28 07:33:11

Russian Energy Minister Alexander Novak said on Thursday that Saudi Arabia had proposed to cut oil production by up to 5 percent by each country in order to support weak oil prices.

My question is this…If you’ve taken the game this far and you are 6 months from bankrupting basically all of the U.S. E&P, why propose cuts now? It’s like a team forfeiting with a 42-0 lead with five minutes left in the fourth quarter.

Comment by Karen
2016-01-28 09:53:16

Would a 5% cut in oil production by theses countries even make much of a difference in prices? We have heard so much about plummeting demand worldwide that I wonder if this would have an effect.

Comment by Double Flip Triple Gainer
2016-01-28 10:41:20

OPEC supplies ~40 million barrels per day. A 5% cut in production would reduce suppy by 2 million barrels per day. Given the current downward trajectory of domestic production, 14 million fewer barrels per week from OPEC would go a very long way in taking away the weekly 5 million barrel inventory builds we are seeing at Cushing.
The story here is that a Russian…a guy whose situation is far more dire than that which a Saudi is experiencing…made this claim. Naturally, it was uncorroberated. This production cut just won’t happen. The Saudis would not run 25 miles of a grueling marathon to quit when the finish line is in sight. The U.S. shale drillers are quite literally on their last legs. The Canadian oil sands are equally on their final breaths. The only production being cut will be the result of North American bankruptcies…which will do the job of a 5% OPEC cut many times over. Prices will double in quite short order when this day arrives.
I don’t like to get political. In the end, all our politicians are playing for the same team. That said, what Barack Obama has done…or should I say, not done…to protect our energy industry is downright shameful.

Comment by Mafia Blocks
2016-01-28 11:03:26

No one in their right mind is interested in price rigging rackets.

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Comment by Karen
2016-01-28 11:18:53

“That said, what Barack Obama has done…or should I say, not done…to protect our energy industry is downright shameful.”

Why should politicians protect the energy industry any more than they should protect the real estate industry?

NB: This is a rhetorical question on my part. I can already see the kind of nonsense you are going to spew. Just trying to highlight the ridiculousness.

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Comment by Double Flip Triple Gainer
2016-01-28 12:11:32

Ha. Teacher always said there’s no such thing as a stupid question. Apparently teacher wasn’t referring to the rhetorical variety.

Comment by CalifoH20
2016-01-28 13:28:11

to protect our energy industry is downright shameful.

huh? we want less gov, not more! Lower prices are great for me!

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Comment by Double Flip Triple Gainer
2016-01-28 14:00:48

Smh. Didn’t think I would have to spell this out for this community.

It has nothing to do with more government. Yes, a bunch of libertarians on the HBB. I get it, Karen, MB, et. al. I share those values you mopes.

It has to do with respect from the international community. You think the Saudis would have the balls to pump our energy industry out of business if they had any respect for our leadership and the potential ramifications such an act could bring?

The fact is, no, they wouldn’t dare. But they know that that they can push us and our spineless President around. So what will happen? Domestic producers will go out of business. Quite literally hundreds of thousands of Americans lose jobs. Not just the fat cats you all abhor, but good, hard working people making a nice, livable wage. Prices will quickly return to $70/bbl…and every last penny will be on the wrong side of our balance of payments.

Meanwhile, plenty of our production could have been economic at $50/bbl.

Comment by Mafia Blocks
2016-01-28 14:01:20

Falling prices to dramatically lower and more affordable levels are good for everyone kiddo.

Comment by Mafia Blocks
2016-01-28 14:04:25

Not really. Not at all.

The reality is the cost of production by traditional methods is under $10/barrel regardless of location. And there is a globe full of oil.

The real shame is paying massively inflated prices for energy that would otherwise be affordable in the absence of a bubble economy.

Comment by Double Flip Triple Gainer
2016-01-28 14:21:19

Quite frankly you are in way over your head on this one pal. There is one place in the world in which sub-$10 oil is economic. And that Saudi oil is nothing like the light sweet crude that we can produce in much of this country.

And if it’s super cheap energy you are after at the bottom barrel prices you are so enamored with, we’ve got an endless supply of natural gas sitting beneath the country we inhabit. But all of our natural gas companies and the dramatically lower and lower prices they could bring to us will be put out of business alongside our oil companies. And then you will be back to complaining about $70 oil.

Comment by Mafia Blocks
2016-01-28 14:31:52

Guess again my friend. All these domestic fields are profitable under $10.

You’re out of your league on this one too.

Comment by Blue Skye
2016-01-28 14:38:19

“they know that that they can push us and our spineless President around”

Oh, we have to find someone to blame for our stupidity.

If this price collapse is a Saudi conspiracy, then you might as well blame them for starting the building boom in China as well. The simple answer is that we just went through a global stupid fest and now everyone has a hangover.

I am convinced from watching what the Saudis were doing over the past decade that they never imagined the boom would end for many years. They made huge bets in the other direction. Now they are in a world of hurt. It is illogical to conclude that they planned to do this to themselves, much less to hurt the US.

Comment by Double Flip Triple Gainer
2016-01-28 16:13:14

“I am convinced from watching what the Saudis were doing over the past decade that they never imagined the boom would end for many years. They made huge bets in the other direction. Now they are in a world of hurt. It is illogical to conclude that they planned to do this to themselves, much less to hurt the US.”

And I am convinced that you, too, have zero clue about what you are talking. Take a look at historical Saudi production superimposed on a chart of historical oil prices. You will see that from the 1960s until just recently, Saudi cut and increased its production in lock step with the price of oil. This positive correlation never once broke down until 2014. Never once. But suddenly now a plummeting price has brought about no change in the Saudi’s production! Why is this?

Did everyone think the oil boom of the last decade was going to be a permanent reality? Probably. I don’t begin to argue that. But the House of Saud abandoning a 50-year-old, never once wavering history of matching supply to price broke down in 2015 for one reason and one reason only. Anyone would be a simple minded fool or just utterly uninformed to think otherwise.

Their pain is nowhere near a reality. Their budget is based on $40 oil. The current prices aren’t much more than a paper cut unless these prices are sustained for seven years. Seven years. In the short term it just means the SAMA Foreign Holdings won’t be seeing any new investable moneys. Meanwhile, the brash new guy on the street…those damn American wildcatters…have both feet in the grave.

Comment by Mafia Blocks
2016-01-28 16:18:11

Nobody cares what “their budget” is based on. Their cost to get out of the well and onto barges is well under $10 a barrel, no different than domestic production in the US.

Donk-O-nomics abound around here these day.

Comment by Blue Skye
2016-01-28 16:25:23

Wow Flip, you have a lot of nobody knows what they are talking about to spread around. That and you have a graph!

We might have made some direct observations that you can’t read about on the oil speculator’s blogs, but obviously you are not interested. Tell ADan I said hi!

Comment by Double Flip Triple Gainer
2016-01-28 16:48:52

Ha. I’m here for the same reason as you all. in fact I quite appreciate reading your all’s take on things. Real estate is in a ridiculous bubble the world over. As has been oil. China is a cesspool. The Fed is full of morons. Deflation would be a very healthy thing. We all agree.

But if one of you claims $10 oil is economic the world over, or blindly believes the Saudis had no intention of bankrupting the American E&P industry, I am more than happy to call you out. Because to take the other side of this discussion is an insult to your intellect.

The simple truth is natural gas could and should be our energy future. But it will be wiped alongside our oil industry. And it is this and this alone that gets me so fired up on this topic.

Comment by Mafia Blocks
2016-01-28 17:10:42

Same degenerate gambler.

Comment by CalifoH20
2016-01-28 18:27:25

flip - calm down, lower prices are cool. free markets

Comment by Blue Skye
2016-01-28 18:55:44

“discussion is an insult to your intellect”

Oh, that.

Another broke-assed day trader.

Comment by Senior Housing Analyst
2016-01-28 08:38:19

Washington, DC Real Estate and Homes for Sale-24,119


Washington, DC Price Reduced Homes for Sale-8,656


36% of sellers in the DC area lowered their price at least once

Comment by Mafia Blocks
2016-01-28 09:37:16



Comment by Mafia Blocks
2016-01-28 09:43:04

Not sure they were ever in it but it’s worth noting after all

“It’s Official: Chinese Buyers Have Left The U.S. Housing Market”



Comment by Puggs
2016-01-28 11:28:29

“Doug Poteet, an offshore engineer, complained that ‘massive layoffs’ have forced friends with decades of experience in the oil industry to go to work for UPS, Uber and car dealerships. ‘If this goes on another year, you’re going to start to see foreclosures,’ he said.”

See, these things happen when you live your life at $100 a barrel oil. Kinda like the NFL star who goes on a financial binge once he signs a contract.

Slow and steady m’boys…slow and steady. The only way to win a race.

Comment by CalifoH20
2016-01-28 13:22:52

ND, the Bakken area is collapsing, not in a correction. And the State had plans to spend all those taxes it will not longer receive. Roads, schools….

Comment by BigSky
2016-01-28 16:17:43

North Dakota did do something smart though- they amended their state constitution to manage their boom dollars.

An article from May 2014 explains:

The state had long imposed a 6.5 percent extraction tax and a 5 percent production tax assessed against the value of oil removed from its soil. The funds raised went into the general budget fund, or were channeled into trust funds to support schools or infrastructure.

But when fracking turned the Bakken Shale into Saudi Arabia on the high plains, the trickle of oil revenues turned into a gusher. Eager not to squander the state’s good fortune, North Dakota in 2010 created the state’s Legacy Fund through an amendment to the state constitution. The amendment stipulated that 30 percent of all extraction and production tax revenues collected should flow into the fund. Further, the money couldn’t be touched for seven years, until 2017—at which point the interest and income generated by the fund would be rolled into the state’s general budget. Money from the principal could only be spent if two-thirds of both houses of the state legislature approved. And no more than 15 percent of the principal could be spent in any two-year period.

The rainy day fund filled up much more quickly than anybody anticipated. From 2011–13, oil taxes produced nearly $4 billion for the state. By July 2013, the fund contained $1.23 billion.

Alaska and Wyoming have their own versions funds from extractions.

Those funds are dwarfed by Funds belonging to the like of Norway which channeled its North Sea oil wealth into a fund that now contains $840 billion and whatever staggering number the Persian Gulf bunch have.

Comment by Blue Skye
2016-01-28 16:28:12

Well done North Dakota. Is that your home?

Comment by Mafia Blocks
2016-01-28 14:14:16

This is a good first step in getting these massively inflated prices falling to dramatically lower and more affordable levels.

“HSBC Halts Mortgage Options To Chinese Nationals Buying U.S. Real Estate”


Comment by Ben Jones
2016-01-28 14:49:18

‘Just how bad did the replacement heifer market crash?’


Comment by Mafia Blocks
2016-01-28 14:52:01

I’m watching tillable land prices sink from Colorado to Maine to the Gulf of Mexico.

This is all good.

Comment by Blue Skye
2016-01-28 16:00:02

Like other stuff, cattle were held off market when prices were going up. Now we’ll have a bunch as prices collapse. Corn halving and rain on the grass will only kick this along.

I haven’t seen the price of my favorite cuts go down yet at the meat counter, but I’m ready.

Comment by Mafia Blocks
2016-01-28 16:21:48

Here you go Donk. Here’s your used up D6 high track. Price?

$50. That’s what used iron is worth. Scrap value. Just like houses, just like cars, just like anything else.


Comment by Ben Jones
2016-01-28 16:25:01

‘Amazon’s shares plunge as sales, profit miss Wall Street estimates’


A comment:

‘Amazon is a crooked company with a crooked CEO who bribed politicians into allowing him to sell in their states without collecting sales taxes. The states should sue him for those Billion$ in taxes and for the real stores and employees he wiped out in the process.’

Comment by Blue Skye
2016-01-28 16:43:25

Maybe I am missing something here but if you don’t have a warehouse in the destination state, no sales taxes can be collected. If there were arrangements made otherwise, it wasn’t in NY.

Comment by Double Flip Triple Gainer
2016-01-28 17:04:24

Amazon is the best run company in America. Dare I say they are the Saudis of the retail space. They’re price cutting every competitor out of business. The profits can wait. Just get rid of the other guys.

That said, today’s figures are far less a sign of Amazon’s shortcomings than they are of what is going on in the economy. The recession is here. And the depression is just a minute or two away. Perhaps Mr. Bezos would be wise to put his space rockets on the shelves of one of the brick and mortar retailers he’s putting out of business.

Comment by Double Flip Triple Gainer
2016-01-28 17:10:19

If any of you ever get the opportunity to tour an Amazon fulfillment center, do not pass it up. In a country full of wasted shacks these things are the shining beacon of progress done right.

Comment by Mafia Blocks
2016-01-28 17:12:25

“best run company”.

LOL. More humor my friend. More humor.

Comment by Double Flip Triple Gainer
2016-01-28 17:52:07

Ha! Happy to provide you with humor. Is your obsession not drastically lower prices??? Do tell, what company seeks this out more than AMZN. And do tell, what would be your pick for America’s best run company?

Comment by Mafia Blocks
2016-01-28 17:56:00

With an endless supply of cash anyone can make a turd shine my friend.

Try again.

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Comment by Double Flip Triple Gainer
2016-01-28 18:18:50

Funny son. Cause I’m pretty sure there was a world full of well funded online retailers in the late 90’s. Why is it all those turds got flushed?

Comment by Mafia Blocks
2016-01-28 19:11:34

Amazon is a polished money losing turd my friend. Money losing turd.

Comment by Tarara Boomdea
2016-01-28 22:35:00

I do recall an online retailer in the mid, late 90’s that gave you $100 toward your first order - free, for nothing, zip. America -something-. People used multiple email addresses and ordered away - I don’t think they lasted a year.

Comment by CalifoH20
2016-01-28 18:28:27


(Comments wont nest below this level)
Comment by Double Flip Triple Gainer
2016-01-28 18:44:19

Elon Musk is a great mind no doubt. One impressive dude.

Tesla has issues though, and, like Mafia Blocks in an argument, could very well be overwhelmed by its adversaries due simply to their greater capabilities and resources.

Comment by Mafia Blocks
2016-01-28 20:01:01

And there’s really nothing to argue about my friend. Prices are falling to dramatically lower and more affordable levels because they’re grossly inflated.

Comment by Senior Housing Analyst
2016-01-28 16:39:09

San Diego, CA Housing Market Craters; Prices Plummet 6% YoY


Comment by Professor Bear
2016-01-28 21:54:29

Looks like sales prices were recently over 20% off peak and are headed back towards the January 2012 trough.

Where does Zillow get its made-up value estimates?

Comment by Professor Bear
2016-01-28 22:09:57

‘[The mortgage modifications] were all predicated on the property values appreciating in value, but they actually declined.’

I guess real estate actually doesn’t always go up.

Comment by Double Flip Triple Gainer
Comment by Mafia Blocks
2016-01-29 10:32:06


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