May 3, 2016

When Asset Pricing Is Driven By Central Bank Policy

A report from Bloomberg on Denmark. “In Denmark, where rates have been below zero longer than anywhere else on the planet, the private sector is saving more than it did when rates were positive (before 2012). As the Danes head even further down their negative-rate tunnel, the experiences of the Scandinavian economy may provide a glimpse of what lies ahead for other countries choosing the lesser known side of zero. Carsten Stendevad, the chief executive officer of Danish pension fund ATP, with about $115 billion in assets, says the policy is also proving problematic for markets.”

“‘I’m very concerned about what these low, negative rates mean,’ Stendevad said. ‘I’m concerned about what they mean for asset pricing. Clearly, they are driving asset prices. That’s the intention, but it’s always a cause for concern when asset pricing is driven more by central bank policy than cash flow generation.’”

The National on Dubai. “Average house prices in Dubai are likely to fall by another 10 per cent this year with no sign of improvement on the immediate horizon, according to the ratings agency Standard & Poor’s. In a note S&P said that after falling between 10 and 13 per cent last year, it expected similar falls this year with few signs of optimism for the year after. Cluttons reported that sales prices fell by 2.2 per cent in the first quarter of the year and uncertainty over oil prices, which has a knock-on effect on banks’ liquidity, meant a recovery in the short term was unlikely.”

Reuters on Hong Kong. “Hong Kong’s home prices posted their sixth consecutive month of decline in March, government data showed, with housing supply expected to hit a record high over the next few years. Home prices fell 3.5 points from February and 21.3 points from a year earlier, according to a government index published by the Rating and Valuation Department. Data from Hong Kong’s Transport and Housing Bureau showed the city’s private housing supply was on track to hit a record high of 92,000 units in the coming three to four years.”

“A large number of units remained unsold as of the end of March. There were 1,000 completed but unsold units from developments completed prior to 2014, another 1,000 from projects completed in 2014 and 3,000 from projects completed last year, the data showed. In the first three months of the year, another 1,000 units had accumulated. Of the units under construction, 86 percent had yet to be sold, the data showed.”

ABC News in Australia. “Westpac Bank and its subsidiaries are no longer lending money to foreigners wanting to buy residential property. It is the third major bank to clamp down on lending to non-residents, home buyers with foreign self-employed income and those who hold temporary visas in Australia. The changes that ANZ and Westpac in particular have brought in are likely to hurt developers, such as Meriton, who have been targeting Chinese buyers. Large numbers of Meriton’s Chinese buyers fund their purchases locally, with Westpac one of the largest lenders in the space, and could affect their ability to settle off-the-plan contracts that have exploded in the past couple of years.”

“As well as putting developers at risk, the changes could pressure home prices. The Reserve Bank earlier this year noted that property prices could decline and bank losses could rise if Chinese demand were to decline significantly, and the changes in bank lending rules could be the beginning of a downturn. ‘At Westpac, helping Australians to achieve their goal of owning a home or investment property is core to our purpose,’ an email to mortgage brokers said. ‘For these reasons, Westpac will no longer lend to offshore customers who are not citizens or residents of Australia with an eligible visa.’”

Sourceable on Canada. “Chinese investors are getting hungrier for real estate in Canada, where foreign demand has fuelled record price gains and made million-dollar homes the norm in cities such as Vancouver. Inquiries for Canadian homes for Chinese buyers jumped 134 per cent in the first quarter from a year earlier. The increased interest indicates that Chinese investors may be seeking to move money abroad amid instability in the country’s economy and stock market, even as the government clamps down on capital flight.”

“In Vancouver – where the average home price has jumped almost 40 per cent in five years – Chinese demand is concentrated in the luxury market, according to Malcolm Hasman, a high-end real estate agent in the city. Chinese buyers this year have purchased about three-quarters of the properties for sale in West Vancouver, where the average price of a detached home is $3.1-million. ‘This year is busier than last year,’ said the agent, who said it’s common for him to see multiple bids on homes as pricey as $10-million. ‘I just don’t see any slowdown in Chinese money driving the Vancouver market.’”

“Chinese investment also has soared in countries such as Australia and the United States. Chinese investors doubled purchases of commercial and residential real estate in Australia to $18.4-billion (U.S.) in the 12 months through June, 2015, from a year earlier, according to that country’s Foreign Investment Review Board. In the United States, they surpassed Canadians as the top foreign buyers of homes, with $28.6-billion of deals in the 12 months through March, 2015, data from the National Association of Realtors show.”

The Express. “Nigeria has begged David Cameron to stop corrupt officials laundering stolen money through Britain’s private schools, property market and department stores. In a stern letter, anti-corruption and human rights groups from the African state called on the Prime Minister to tackle the problem ahead of an international summit. The group accuses corrupt officials of plundering Nigerian assets and undermining their efforts to clean up the country’s finances.”

“The letter said: ‘Now we are embarked on a nationwide anti-corruption campaign. But these efforts are sadly undermined if countries such as your own are welcoming our corrupt to hide their ill-gotten gains in your luxury homes, department stores, car dealerships, private schools and anywhere else that will accept their cash with no questions asked. The role of London’s property market as vessels to conceal stolen wealth has been exposed in court documents, reports, documentaries and more. The problem is clear, now is time to do something about it.’”

“Signed by 95 groups from across Nigeria’s political spectrum, the letter comes two weeks ahead of the International Anti-Corruption Summit takes place in London. The letter brands the UK a ’safe haven for corrupt individuals, who steal our wealth for their own private gain.’”




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207 Comments »

Comment by Dandroidz
2016-05-03 03:50:46

$28 billion in US real estate purchases by China. So we shipped off our real economy to them decades ago, and now they’re literally buying us up. What’s the breakdown between residential and commercial real estate by China? There has been growing reports of Chinese business presence in Midwest states as they swoop up large chunks of land over the years.

It’s just eye opening to me that after all these years of thinking and being shown that China is the land of cheap labor and cost of living(< $2/hr), that their country has enough people with enough capital to cash outbid our middle and upper classes in real estate. My landlord has a Chinese exchange student who’s father works for the Chinese Govt and bought a place in Seattle in cash. Wtf…

Comment by Gorilla Monsoon
2016-05-03 04:03:19

Nothing like borrowed(stolen) money to implode the economy.

 
Comment by rms
2016-05-03 06:01:47

“So we shipped off our real economy to them decades ago, and now they’re literally buying us up.”

Remember the Japanese buying-up California back in their glory days?

Comment by Gorilla Monsoon
2016-05-03 06:05:29

And NY.

Their economy imploded, they liquidated and RE prices cratered 40%.

 
Comment by Dandroidz
2016-05-03 06:50:55

No, but I’ve read about it on blogs such as this. I was a little kid watching power rangers. Ha.

Well hopefully the music stops with that soon, so real estate can return to some normalcy. Until then, I’ll rent.

Comment by Gorilla Monsoon
2016-05-03 07:51:38

crushing.housing.losses.

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Comment by Eddie89
2016-05-04 09:20:46

Adding insult to injury, Janet Yellen and the Fed Reserve refuse to raise interest rates because of China! WTF!!!

 
 
Comment by Ben Jones
2016-05-03 04:48:26

‘Swiss bank UBS said it saw “abnormally low” transaction volumes in the first quarter as clients became more risk averse. CEO Sergio Ermotti told CNBC he expected the environment to remain challenging. “We had really, a new level of client risk-aversion in the first quarter. We observed it across the board and particularly it was reflected in transaction volumes and activity, where we saw the lowest level we could observe for many, many years and therefore, clearly, our profitability has suffered,” Ermotti said.’

‘Ermotti said the bank had been hit by a “double whammy” of low or negative interest rates from the major central banks and regulatory requirements for banks to hold high levels of capital.’

“When you would see, historically, such a contraction of transaction activity, clients would then go into cash and as a bank usually you would make some money out of your replicating portfolio, out of your deposits. In this environment of zero or negative rates you make no money, or you lose money, and in addition to that, through the new regulations, you have huge capital requirements. So it is a double whammy on the business both in terms of profitability and capital consumption,” Ermotti told CNBC.’

 
Comment by Ben Jones
2016-05-03 04:55:31

‘Industrial & Commercial Bank of China Ltd., the world’s largest lender by assets, avoided posting a quarterly drop in profit after letting its buffer for covering bad loans fall below a regulatory minimum. The bank’s provisions for bad loans stood at 141.2 percent of existing nonperforming credit, compared with a regulatory minimum of 150 percent, the Beijing-based lender said in a statement to Hong’s Kong stock exchange.’

‘One of China’s biggest banks, Bank of China Ltd., this week reported that it had breached the minimum provision rule, the first lender to do so. Government officials are considering loosening the requirement, a move that would lend support to banks’ profits as the lenders digest an increased volume of bad loans.’

‘ICBC’s net income rose 0.6 percent to 74.76 billion yuan ($11.5 billion) in the three months ended March 31 as its lending margin contracted and its soured debt surged. It’s the fourth straight quarter that the lender has failed to achieve a profit gain of even 1 percent — and the profit number would’ve been worse if it hadn’t breached the provision rule.’

 
Comment by Ben Jones
2016-05-03 05:03:20

‘Australian investors are “living on a different planet” thinking Chinese demand for our commodities will rebound, according to one leading expert. Dong Tao, the Hong Kong-based managing director and chief regional economist at Credit Suisse, says many Australians still somehow believe Chinese government stimulus will bring back demand.’

‘Speaking at The Economist magazine’s Australia’s Asian Future Summit in Sydney, Mr Dong said the problem wasn’t “what’s wrong with the Chinese economy”. “What’s wrong is you,” he said. “The golden age of China’s infrastructure boom is over. The golden age of China’s housing boom is over. The golden age of China’s export boom is over. The golden age of China’s stimulus is over. So what’s not over? China has a consumption story.”

‘Mr Ziegler, pointing out that ironically The Economist is currently blocked in China due to a series of articles critical of President Xi Jinping, said foreign companies have found it difficult for a variety of reasons. “In the kind of future economy that Dong Tao is describing, the beneficiaries so far have been Chinese companies like Alibaba,” he said. “It is a rigged game in China, it really is.”

‘Mr Dong said people frequently say Chinese lack of demand was a problem. “That’s wrong. What’s happened is Chinese demand has changed,” he said.’

‘As imports for commodities and heavy machinery fall, tourism spending, for example, has boomed — the Chinese now spend $1.2 trillion abroad. “The Chinese visit Mt Fuji in Japan, and on the way back they bring these funky Japanese toilet lids with all kinds of buttons,” he said. “Ironically, that toilet lid is made in China.”

These guys like Dong remind me of the Chinese fellow who chastised people in New Zealand about driving up house prices saying, “you need to work harder!”

Really Dong, how far are we going to get buying ornamental toilet lids from the Chinese and selling them back to them on vacation?

Comment by Combotechie
Comment by Ben Jones
2016-05-03 05:34:22

Why would you need a flushing sound button?

Example

Comment by Oddfellow
2016-05-03 05:45:42

Hate to imagine the dump that requires the “shower” button.

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Comment by The Central Scrutinizer
2016-05-03 08:16:14

I worked at a place that had these…. I was fascinated, but too timid to push any of the buttons on the off chance I’d set something going that I couldn’t stop. Didn’t help that the labels were all Japanese.

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Comment by Prime_Is_Contained
2016-05-03 08:27:08

I visited a company office that had these. They were intimidating to contemplate, but surprisingly pleasant once I tried them.

 
 
 
 
 
Comment by Raymond K Hessel
Comment by Dandroidz
2016-05-03 05:22:49

After they were tipped off, but hey, insider trading is illegal right? Ha.

Comment by Combotechie
2016-05-03 05:34:32

“After they were tipped off …”

That should read “After they decided to do it”.

The .1% are the deciders. The deciders are the ones who do the tipping off.

Comment by Raymond K Hessel
2016-05-03 06:04:15

Yep. Let’s not confuse cause and effect. These Ponzi markets will implode only after Goldman Sachs goes massively short, then picks up its private line to its creature Janet Yellen and orders her to hike up interest rates.

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Comment by rms
2016-05-03 06:08:57

“Are the .1% exiting the Fed’s latest pump & dump?”

“One possibility is they think they’re better at market timing.” Hehe.

 
Comment by Professor Bear
2016-05-03 06:37:57

Sell in May and go away.

 
 
Comment by Raymond K Hessel
 
Comment by Raymond K Hessel
2016-05-03 05:22:48

Precious metals surging as the flight to safe haven begins in earnest.

http://www.kitco.com/market/

Comment by Combotechie
2016-05-03 05:48:01

Some one-year price charts of various things …

http://finviz.com/futures_charts.ashx?t=ALL&p=w1

 
 
Comment by Raymond K Hessel
2016-05-03 05:24:33

Yellen’s debasement of the dollar is just getting started.

http://www.businessinsider.com/oil-and-petrocurrencies-rising-dollar-falling-2016-5

Comment by Blue Skye
2016-05-03 11:45:36

So, who are the debt donkeys that are facilitating some new and bigger Fed sponsored credit expansion? As far as I know, the Fed isn’t giving dollars away, they still lend them into existence.

 
Comment by Professor Bear
2016-05-03 16:27:06

FINANCIAL TIMES
Dollar
Dollar’s slide takes it to 15-month nadir
Market’s conviction deepens that pace of rate rises will remain slow
Buying the dollar has not gone to plan
6 hours ago
by: Roger Blitz in London and Robin Wigglesworth in New York

The US dollar touched a 15-month low on Tuesday, reflecting growing market doubts that the US economy can grow fast enough for the Federal Reserve to meet even its own modest interest rates target.

The “DXY” index that measures the greenback against a basket of its major peers has fallen for seven straight days — its longest losing streak in over a year. On Tuesday it fell as much as 0.8 per cent to below 92, a level last plumbed in January 2015.

Although the gauge later clawed back its losses to trade at 92.83, currency strategists said the trend pointed to further declines.

The dollar has now “broken free” from its range and is “heading lower”, said Kit Juckes, FX strategist at Société Générale. “We are going to overshoot from here.”

 
 
Comment by Raymond K Hessel
2016-05-03 05:26:10

Houston office space leasing plunges as availability soars.

http://wolfstreet.com/2016/05/02/houston-office-space-leasing-plunges-availability-soars/

 
Comment by palmetto
2016-05-03 05:30:44

Hey, boyz ‘n girlz, we got us a real two-fer today: Not only is it Teachers’ Day, it’s World Press Freedom Day! Heck, just combine the two and call it Global Propaganda Bubble Day!

Comment by palmetto
2016-05-03 05:41:04

Or you could call it Global Indoctrination Day!

And to the relative handful of teachers and journalists who try to do a good job despite the many barriers thrown in their way, and being reviled by their peers and governments, my sympathies and heartfelt wishes for your safety and eventual success.

Comment by Apartment 401
2016-05-03 05:51:37

Glenn Greenwald is the only one I can name. Maybe Matt Taibbi too…

Comment by Oddfellow
2016-05-03 06:00:40

Radley Balko

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Comment by palmetto
2016-05-03 06:04:16

Yes, they have name recognition, but there are journalists who labor in obscurity, trying to investigate and expose all manner of evil and corruption around the world. And for their pains, they get imprisoned, executed or even hacked to death.

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Comment by Raymond K Hessel
2016-05-03 06:05:40

The MSM has the freedom to print whatever Narrative its Oligopoly owners and controllers directs its captured scribblers to propagate.

Comment by Oddfellow
2016-05-03 06:33:04

And half the “alternative” news sites are Russian propaganda outlets.

Comment by snake charmer
2016-05-03 14:31:38

Actually, probably none of them are. The only purpose Russia serves in our current political discourse is to invent a reason for even more empire and unnecessary military spending, and as an argument by Obama supporters that their guy isn’t “soft on defense.” We already know that, he orders people killed by drone every Tuesday or whatever.

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Comment by Oddfellow
2016-05-03 19:22:12
 
Comment by Ben Jones
2016-05-03 19:41:36

They want your precious bodily fluids Mandrake.

https://www.youtube.com/watch?v=N1KvgtEnABY

 
 
 
 
 
Comment by Raymond K Hessel
2016-05-03 05:36:11

Taxpayers have a moral obligation to bail out states, territories, and municipalities run into the ground by corrupt, incompetent Democrat grifters.

http://www.marketwatch.com/story/puerto-rico-misses-payment-as-debt-crisis-escalates-2016-05-02

 
Comment by Senior Housing Analyst
2016-05-03 05:36:44

Colleyville(DFW), TX Housing Affordability Surges As Prices Plunge 21% YoY

http://www.zillow.com/colleyville-tx/home-values/

Comment by Homer Simpson
2016-05-03 19:46:25

How do you calculate your estimate that prices have declined 21% YoY?

looking at the zillow link, I find this:

“The median home value in Colleyville is $491,100. Colleyville home values have gone up 10.6% over the past year and Zillow predicts they will rise 5.2% within the next year.”

Am I missing something?

Comment by Gorilla Monsoon
2016-05-03 19:48:29

Yes. Prices fell 21%.

 
Comment by Oddfellow
2016-05-03 20:16:26

Am I missing something?

That he’s a psychopathic liar?

Comment by Gorilla Monsoon
2016-05-03 20:33:30

Don’t let the data enrage you my friend.

Arcadia, CA Housing Affordability Surges As Prices Plummet 10% YoY

http://www.zillow.com/arcadia-ca/home-values/

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Comment by Raymond K Hessel
2016-05-03 05:38:16

A preview of coming attractions once the good comrades of the DNC can mobilize enough felons and freeloaders to install their permanent Democrat Supermajority.

http://www.shtfplan.com/headline-news/venezuela-socialist-paradise-in-collapse-rationing-food-toliet-paper-now-electricity_05022016

Comment by Oddfellow
2016-05-03 05:51:49

I guess Saudi Arabia would be the model of a permanent GOP supermajority?

Comment by Raymond K Hessel
2016-05-03 06:06:59

Someday you’ll contribute something of value to an HBB discussion. Sadly, today isn’t the day.

Comment by Oddfellow
2016-05-03 06:37:21

Sorry to interrupt your tiresome repetitive GOPtroll with a little fresh material.

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Comment by The Central Scrutinizer
2016-05-03 07:03:19

I love the sound of butt hurt in the morning…

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Comment by Ben Jones
2016-05-03 05:41:08

‘Brazil’s worsening corporate credit crisis is forcing the nation’s biggest banks to book losses they had been able to avoid until now. Banco Bradesco SA, the country’s second-biggest bank by market value, set aside 836 million reais ($240 million) in the first quarter to cover bad loans tied to oil-rig venture Sete Brasil Participacoes SA, a person with direct knowledge of the matter said Thursday, asking not to be identified discussing non-public information. Earnings fell 3.7 percent.’

‘Itau Unibanco Holding SA, the biggest Brazilian bank by market value, and Banco do Brasil SA, No. 1 by assets, may be next. Itau, which reports first-quarter results on Tuesday, tapped a guarantee fund in February after Sete Brasil was unable to pay back loans from the Sao Paulo-based bank. State-owned Banco do Brasil has 4 billion reais in exposure to Sete Brasil and hasn’t yet booked all the related losses, according to people familiar with the matter.’

‘Late payments in Brazil have been increasing as borrowers grapple with the nation’s worst recession in a century. The country’s delinquency rate for loans more than 90 days overdue held at a three-year high of 3.5 percent in March, according to central bank data. Bradesco’s figure climbed to 4.2 percent in the first quarter from 3.6 percent a year earlier. The bank’s 60-day rate rose 0.8 percentage point to 5.3 percent.’

‘Brazilian corporations are struggling to pay back their loans as a two-year economic downturn, high interest rates, falling commodity prices and a weaker currency combine to savage profit and revenue.’

‘Rather than setting aside provisions, many Brazilian banks have been restructuring loans, which could mask rising asset risks, Moody’s Investors Service said in an April 11 report. Such restructurings rose 37 percent at the end of 2015 from a year earlier, which may be understating loan delinquencies and overstating reserve coverage, the rating company said.’

‘One of the nation’s highest-level bankers called the corporate credit crisis the worst in the nation’s history as bankruptcy filings almost doubled to a record this year. Companies seeking protection from their creditors surged to 155 in February after rising 55 percent last year, according to data provider Serasa Experian.’

‘The government-owned pension funds for workers at Petrobras, Banco do Brasil and Caixa Economica own about 38 percent of Sete Brasil, and their losses would depend on previous provisions, one of the people said.’

‘The FGTS retirement fund invested 2.5 billion reais in Sete Brasil’s debt and capital, guaranteed by Caixa Economica. If that doesn’t get repaid, the government will have to inject funds into Caixa Economica to support the company, according to Mansueto Almeida, an economic consultant who specializes in public finance.’

“If you take 100 market analysts, 99 are betting that a capital injection for Caixa Economica will be necessary,” Almeida said. “The only one who isn’t making that bet is on vacation.”

Comment by palmetto
2016-05-03 05:47:42

Heh, I notice NBC has their Olympic logo up on the bottom left of the screen during their TeeVee programs, signalling they’ll be providing the coverage of the summer olympics. I hope they lose millions, billions if possible.

Comment by Raymond K Hessel
2016-05-03 06:08:40

I can’t believe any of the sheeple still get their news from these captured and co-opted propagandists.

Comment by Combotechie
2016-05-03 06:19:51

“I can’t believe any of the sheeple still get their news from these captured and co-opted propagandists.”

If they weren’t sheeple then they wouldn’t.

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Comment by Combotechie
2016-05-03 06:56:03

Blogs! There are blogs out there by the millions!

Don’t trust the MSM? Then go find a blog, one that you can trust.

Tumbl.com alone offers up, as of April of this year, over 291 million - MILLION - blog accounts.

Go here …

http://www.statista.com/statistics/256235/total-cumulative-number-of-tumblr-blogs/

 
Comment by The Central Scrutinizer
2016-05-03 07:05:12

A blog that never, ever challenges your beliefs.

 
Comment by Combotechie
2016-05-03 08:03:20

“A blog that never, ever challenges your beliefs.”

That’s a choice one is offered if he/she chooses to make it.

 
Comment by MightyMike
2016-05-03 08:47:28

That would probably the kind of blog that many people would trust - one that confirms the thoughts already in their heads.

 
Comment by The Central Scrutinizer
2016-05-03 11:47:30

EXACTLY what the paid shill of a shadowy international conspiracy would say!

 
 
Comment by palmetto
2016-05-03 06:21:08

I can’t believe anyone will watch the Olympics this summer. It’s become something of a tawdry joke. Maybe Mitt Romney and Caitlyn can team up like superheros to save the Olympics.

http://www.nbc.com/saturday-night-live/video/tv-funhouse-ambiguously-gay-duo/n10987

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Comment by The Central Scrutinizer
2016-05-03 07:06:25

I’m actually interested for the first time in decades… Never seen an olympics held in a giant polluted slum.

 
Comment by palmetto
2016-05-03 08:32:52

Remember China?

 
Comment by redmondjp
2016-05-03 11:42:45

Zing!

 
Comment by The Central Scrutinizer
2016-05-03 11:48:34

Honestly, I didn’t even know there was an olympics in china.

 
Comment by palmetto
2016-05-03 14:38:19

And Brazil will be just as memorable, unfortunately.

It really is too bad. I wanted to see Brazil do well and look what’s happened. It almost had a chance.

 
 
 
 
 
Comment by Ben Jones
2016-05-03 05:44:14

‘ISLAMABAD: The National Accountability Bureau (NAB) and Federal Board of Revenue have decided to stay away from probing the Panama Papers. The Operation Division of the National Accountability Bureau (NAB) has “put on hold” the file on PanamaLeaks showing the names of Prime Minister Nawaz Sharif’s children even before the initiation of a formal inquiry, it has been learnt.’

‘Informed sources said that following the Operation Division’s decision on the official file, the PanamaLeaks issue had been frozen now in the top-most anti-corruption body of the country. This decision has been taken even before the initiation of a formal inquiry into the matter that has jolted the Nawaz Sharif government. “We were not even at the stage of complaint verification and have now been stopped from even moving the file,” an informed official source said.’

‘The source said that the file, which clearly mentions the prime minister, his children and the PanamaLeaks, contains unambiguous “put on hold” order of the Operation Division. The source said that this decision was reflected on the main sheet of the file.’

‘This development will practically freeze even the movement of the file unless the NAB management decides to initiate some action. Before the “put on hold” decision, a deputy director of the Operation Division had reportedly written a letter to the Lahore NAB for possible linking of the PanamaLeaks disclosure about the Sharifs with an already pending inquiry against the ruling party.’

‘It is said that there was a probe initiated in 2000-2001 in NAB about the London properties case against Nawaz Sharif and others regarding owning of Aven Field properties in London. The same Aven Field properties are now reflected in the offshore companies and as per the statement of Hussain Nawaz belong to him.’

 
Comment by Ben Jones
2016-05-03 05:47:46

‘Given the swiftly deteriorating financial position of both Russian mortgage holders (the volume of delinquent mortgages has increased by about 40% over the past year and a half) and of Russian construction companies (who are also sitting on a growing pile of bad debts) it seemed clear to me that a correction in housing supply was in order. Absent a massive infusion of state resources, there was simply no way that the volumes of last year were going to hold up.’

‘And, low and behold, the latest numbers from Rosstat show exactly that. In the first quarter of 2016, housing production fell by about 16% in comparison to the equivalent period last year. The largest declines were seen in Siberian regions like Tomsk, Novosibirsk and Sverdlovsk, where output fell by as much as 70%.’

‘Now, while a 16% decline sounds like a lot, remember that 2015 was a record year.’

 
Comment by Senior Housing Analyst
2016-05-03 05:52:47

Denville, NJ Housing Affordability Balloons As Prices Crater 10% YoY

http://www.zillow.com/denville-nj/home-values/

 
Comment by Raymond K Hessel
 
Comment by Raymond K Hessel
2016-05-03 06:11:46

Which central bank blown asset bubbles and Ponzi markets will implode first?

http://www.zerohedge.com/news/2016-05-03/european-stocks-tumble-after-eu-slashes-growth-inflation-guesses

 
Comment by Raymond K Hessel
2016-05-03 06:13:48

How long can China’s central planners forestall the inevitable?

http://dollarcollapse.com/debt/consensus-forming-china-heading-back-into-financial-crisis/

 
Comment by Raymond K Hessel
2016-05-03 06:16:01
 
Comment by Raymond K Hessel
2016-05-03 06:17:59

Are the sheeple too stupid to see what’s coming, even though the indications and warnings are multiplying by the day?

http://charleshughsmith.blogspot.com/2016/04/is-world-getting-crazier-but-we-no.html

 
Comment by Professor Bear
2016-05-03 06:41:00

What is eating at Mr Market this morning? Seems like someone flipped the Risk Off” switch overnight.

 
Comment by Professor Bear
2016-05-03 08:01:35

Is it emerging market risk that has you worried?

THE WALL STREET JOURNAL
Markets
Big Investors Cast a Wary Eye on Emerging Markets
Mohamed El-Erian says China ‘went too far’ encouraging participation in its stock market
Mohamed El-Erian, senior adviser at Allianz, speaking Monday at the Milken Institute Global Conference.
Photo: Lucy Nicholson/Reuters
By Gregory Zuckerman and Julie Wernau
Updated May 2, 2016 7:14 p.m. ET

LOS ANGELES—Emerging-market investments have been on a tear for much of 2016, but investors still should be wary, market sages said Monday at the Milken Institute’s 2016 global conference.

Mohamed El-Erian said the Chinese government “went too far” encouraging participation in its stock market, much as the U.S. emphasized home ownership last decade, a misstep he said helped lead to the 2008 financial crisis.

“They have done the exact same thing” in China by encouraging stock ownership, said Mr. El-Erian, a former senior executive at bond powerhouse Pacific Investment Management Co. and currently a senior adviser to Pimco’s parent, global insurer Allianz SE.

 
Comment by Professor Bear
2016-05-03 09:25:32

China
China’s recovery: not solid
Survey findings underline fragility of credit-fuelled uptick
EM Squared
32 minutes ago
by: David Wilder

The foundation of the Chinese recovery, to borrow official government rhetoric, is not solid. Markets may be celebrating signs of life in the economy, but there are plenty of people questioning the quality of the recovery.

It is a debate reflected in the latest interrogations of the Chinese household sector by FT Confidential Research, a unit of the Financial Times.

FTCR’s April consumer sentiment survey found a solid improvement in readings of current financial situations and discretionary spending habits, as the first chart shows.

Its read on household sentiment towards current economic conditions rose to its highest level since July last year, just before a mishandled renminbi devaluation crystallised global concerns about a full-on Chinese economic meltdown.

But consumer outlooks for the future were notably subdued in April: FTCR’s measure of where consumers see the economy going barely budged, while the index capturing how consumers see household incomes changing in the coming six months was flat compared with March.

A sense of unease is captured by the latest FTCR China Business Activity Index (see the second chart), which combines results from surveys of the real estate, export and logistics sectors.

The headline index in April fell back after hitting its highest level since October 2014 in March. The 52.2 reading was below the series average of 52.5, with the drop entirely the result of a slump in the real estate component.

 
 
Comment by Professor Bear
2016-05-03 06:43:22

‘I’m concerned about what they mean for asset pricing. Clearly, they are driving asset prices. That’s the intention, but it’s always a cause for concern when asset pricing is driven more by central bank policy than cash flow generation.’

Sounds like a good recipe for bubble and crash.

Comment by Combotechie
2016-05-03 07:00:25

“Sounds like a good recipe for bubble and crash.”

Until such at time these asset prices represent wealth, are considered to be wealth.

It used to be wealth was a result of effort, now wealth is a result of price increases.

 
 
Comment by Professor Bear
2016-05-03 06:45:55

“Chinese investment also has soared in countries such as Australia and the United States. Chinese investors doubled purchases of commercial and residential real estate in Australia to $18.4-billion (U.S.) in the 12 months through June, 2015, from a year earlier, according to that country’s Foreign Investment Review Board. In the United States, they surpassed Canadians as the top foreign buyers of homes, with $28.6-billion of deals in the 12 months through March, 2015, data from the National Association of Realtors show.”

Look out below when this stops.

 
Comment by Raymond K Hessel
2016-05-03 06:49:07

If we were a nation of laws, Yellen the Felon and her flying monkeys at the Fed would be charged with currency manipulation for their incessant, disingenuous attempts to jawbone up the dollar despite knowing full well that no rate rise will be forthcoming unless/until the bond vigilantes force the Fed’s hand.

http://www.bloomberg.com/news/articles/2016-05-03/fed-s-lockhart-calls-june-rate-increase-a-real-possibility

 
Comment by Raymond K Hessel
2016-05-03 06:56:01

“Cheap credit” driving auto sales - get ready to ante up for yet another subprime bailout, taxpayers.

http://www.marketwatch.com/story/us-auto-sales-back-on-track-in-april-2016-05-03

Comment by In Colorado
2016-05-03 09:13:04

Cars, unlike houses, are easy to repossess and resell. Stop making payments and the car is gone. No 3-4 years of “squatting” or “zombie” cars.

Comment by Dandroidz
2016-05-03 09:28:04

Yeah there was the horrible Repo show series on cable about this very thing. No pay, tow truck is coming.

Comment by In Colorado
2016-05-03 10:13:33

And unlike with houses you don’t get a letter saying when they’re coming for “evict” you.

If there is a repo epidemic, I think it will hurt carmakers more than Mr. Banker, simply because I would expect new car sales to tank. Mr. Banker will just get the car detailed and resell it, which should be easier as it will cost less than a new car.

I remember during the previous crash, the credit union had a few shiny repos in the parking lot with “for sale” signs on them, and they sold quickly.

As for bailouts being needed, it’s one thing to lose a few thousand on a repo vs. losing a few hundred thousand on a foreclosure.

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Comment by ibbots
2016-05-03 06:59:31

CoreLogic: Dallas home prices up 9.5 percent in March

“Dallas-area home prices were up by more than 9.5 percent in CoreLogic’s March housing report.

That’s greater than the 6.7 percent nationwide price gain from March 2015.

The only major market in CoreLogic’s price report with a bigger gain was Denver where home prices were up 10.9 percent year-over-year.

Home prices in San Francisco were up 9.3 percent in March.”

http://bizbeatblog.dallasnews.com/2016/05/corelogic-dallas-home-prices-up-9-5-percent-in-march.html/

Comment by Gorilla Monsoon
2016-05-03 07:53:50

Corelogic: We publish indices, not prices.

 
Comment by In Colorado
2016-05-03 09:15:02

I have a sibling in the Dallas area. They just sold their place and are moving into a bigger one. The old place sold quickly and with multiple offers.

Comment by Gorilla Monsoon
2016-05-03 09:21:21

Post a link.

Comment by Rental Watch
2016-05-03 12:56:20

http://www.movoto.com/dallas-tx/market-trends/

Prices up (year on year), inventory about flat, days on market much higher than last year.

Based on the DOM increasing, seems like a market that might be a bit stretched.

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Comment by Gorilla Monsoon
2016-05-03 13:53:15

Are you sure?

Dallas, TX Housing Prices Crater 21% YoY

http://www.zillow.com/dallas-tx-75243/home-values/

 
Comment by Rental Watch
2016-05-03 17:13:46

Well, since I didn’t cherry pick one zip code, seems like my data might be more applicable to the market as a whole.

 
Comment by Gorilla Monsoon
2016-05-03 18:13:33

Tap dance some more Rental_Fraud.

Massachussetts Housing Prices Fall 9% YoY

http://www.zillow.com/ma/home-values/

 
Comment by Prime_Is_Contained
2016-05-03 19:46:16

Dallas, TX Housing Prices Crater 21% YoY

With a broader sample, the headline should read:

Dallas, TX Housing Prices Soar 6.8% YoY

http://www.zillow.com/dallas-tx/home-values/

Mar 2016: 267K
Mar 2015: 250K

Dissemble way (via cherry-picking), HA…

 
Comment by Gorilla Monsoon
2016-05-03 19:52:43

End Result: Collapsing demand and prices a long way to fall.

 
 
 
Comment by cactus
2016-05-03 09:46:36

If we are on the verge of runaway inflation it makes sense RE is selling. It wouldn’t surprise me if the FED bank loses control of the economy.

Now if they could just get wage inflation going and taxes up their bond debt will shrink back away from the disaster of deflation and massive debt.

I think they will just continue to cause asset inflation without wage inflation and we will get wild bubble swings.

Could be worse we could get a central control government and go Venezuela style completely broken.

 
Comment by MightyMike
2016-05-03 10:15:11

The old place sold quickly and with multiple offers.

That means that they chose the listing price wisely and didn’t ask for some unrealistic amount, the way that many people do.

Comment by In Colorado
2016-05-03 11:05:46

I believe that is correct. But I also understand that they did get a bit more than they paid for it a several years ago. Not crazy money, but in the near 100K range.

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Comment by Karen
2016-05-03 13:12:06

“I have a sibling in the Dallas area. They just sold their place and are moving into a bigger one. The old place sold quickly and with multiple offers.”

1. Link or it didn’t happen

“I believe that is correct. But I also understand that they did get a bit more than they paid for it a several years ago. Not crazy money, but in the near 100K range.”

2. A net gain of near 100K in a couple of years is ‘a bit more than they paid for it’ and ‘not crazy money’? What planet do you reside on where this is normal market behavior?

I don’t really believe this at all, but go ahead and post a link. Heck, post any link of a sale from 2 years ago and a sale this year (on the same house) that shows a gain of 100K (in the Dallas area.)

 
Comment by In Colorado
2016-05-03 13:52:51

I believe I said “several”, not a couple of years. They’ve been in their place almost ten years. Had they gotten 100K appreciation in two years that would have qualified as “crazy money” in my book.

A link? Do you think the Dallas newspaper will have an article about them selling their house?

I’m sharing anecdotes. If they aren’t good enough for you, then fine.

 
Comment by Rental Watch
2016-05-03 13:56:17
 
Comment by Gorilla Monsoon
2016-05-03 14:14:07

post.a.link.of.the.sale.

 
Comment by Karen
2016-05-03 16:02:56

You know what, you’re right, you did say ’several’, so I guess that’s 3 years instead of 2. Oh, but wait — then you say they’ve been in their place nearly 10 years. Not exactly several. More like several times 3. Which means they would have bought near the last peak. And you expect us to believe they made nearly 100K?

Definition of several (Merriam Webster http://www.merriam-webster.com/dictionary/several): “more than two, but not very many”

And you know perfectly well what we mean by ‘a link’. All sales are recorded and most of the registries are online. Simply tell us the address, and we’ll look it up ourselves.

“I’m sharing anecdotes. If they aren’t good enough for you, then fine.”

Anecdotes = sh$t you made up

 
Comment by Rental Watch
2016-05-03 17:16:33

Give me a break. We all appreciate our anonymity here.

Criticizing someone for not wanting to break that anonymity (which sharing an address of a sibling would do) is obnoxious.

 
Comment by Gorilla Monsoon
2016-05-03 18:03:47

No you give us a break Rental_Fraud.

And guess what….. all these “I have a friend/relative/coworker” bull$hit stories are going to get called out every.single.time.

 
 
 
 
 
Comment by Raymond K Hessel
2016-05-03 07:03:39

Deflation, scourge of debters and profligate governments, is rearing its ugly head again in Europe. Heaven forbid that housing and other goods actually becomes affordable someday for the 50% of youth who are currently unemployed.

http://www.rttnews.com/2642053/eurozone-inflation-turns-negative-in-april.aspx

Comment by Fang nu
2016-05-03 08:21:48

Give all of them a shovel,
Watch three of fifty take the job.
Watch two of those three quit by lunch.

I personally have given them a shovel
I personally have watched them quit before lunch
$12 an hour is not enough they say.

Comment by In Colorado
2016-05-03 09:20:07

Fast food places in my neck of the woods are paying $10-11/hr. If you want someone to choose back breaking work over asking “you want fries with that?” you’ll have to pay more, or break the law and hire desperate illegals.

Comment by MightyMike
2016-05-03 10:34:19

Yeah, what Mr. Nu did may be what people refer to when they talk about “price discovery”. He didn’t know what the market clearing price was, so he took a guess. What he learned is that he wasn’t offering the market price.

I wonder what kind of job it was - digging ditches, shoveling snow, or maybe working with horses, shoveling manure out of stables.

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Comment by In Colorado
2016-05-03 11:12:29

He also seems miffed that people weren’t lining up the shovel whatever he needed shoveling for the pay he was offering.

As for “shoveling snow”, all professional snow removal services I’ve seen out here use mechanized methods to remove snow. It’s an order of magnitude faster than shoveling and the equipment isn’t all that expensive. You can get a kick butt snowthrower for $1000.

 
 
 
 
 
Comment by phony scandals
2016-05-03 07:36:19

NFL Media’s former players reveal how they spent first paycheck

Published: May 2, 2016 at 12:09 p.m.

In the aftermath of the 2016 NFL Draft, hundreds of players will begin signing their first professional contract. What will they do with a life-changing amount of money? Will they save or invest? Will they spend lavishly? NFL Media’s former players recall their first purchases and how the contracts changed their lives.

Willie McGinest (1994 draft: Round 1, Pick 4)

My first purchase: I did several things for my parents. The Toyota Camry was the hot car off the lot at the time, so I bought that for my mom. Then, my parents didn’t want to move out of the neighborhood where we grew up in, so I demolished the house and built a brand new one right there. After I took care of them, I bought myself a new truck.

I was happy that I could provide for my family, but didn’t get overly excited for my first paycheck. I remember I was in Las Vegas with my agent and I won about $300 playing blackjack or craps. I jumped up and was ecstatic. My agent looks over at me and said, “Dude, you just signed a multi-million dollar contract and you didn’t show any expression. Now, you win a few hundred dollars and you go berserk.” That was pretty funny, looking back on it.

Michael Robinson (2006 draft: Round 4, Pick 100)

My first purchase: I bought some jewelry and a 2007 Chevrolet Tahoe when the vehicle’s body style changed. I was hyped for that. I also bought a house with my signing bonus.

I’m not going to lie, I was scared to have a large sum of money. I thought somebody might rob me or take the money out of my account somehow. I had never seen money on this scale before. I felt a responsibility like, Whoa, man. There are so many people looking at me with this money that I can’t fail. I felt like if I failed and blew a check this big, it would be embarrassing and a shame.

Heath Evans (2001 draft: Round 3, Pick 82)

My first purchase: The first thing I did was I bought my sister the Mercedes-Benz SUV that I’d always promised her. Being in Seattle, I remember going to Daniel’s Broiler about once a week. That was how I splurged.

I remember taking my signing-bonus check to the bank before I left for training camp. It was so weird because I was walking around with a $500,000 check in my pocket. I opened a bank account with that check, and there was no verification process because it boldly said “Seattle Seahawks” at the top. People at the bank were like, “Oh, Mr. Evans. Welcome to town.” That was a cool day.

Maurice Jones-Drew (2006 draft: Round 2, Pick 60)

My first purchase: I was fined in my first preseason game for celebrating, so technically, I didn’t get a first paycheck. But with my signing bonus, I bought a house and saved a lot of it.

Even when I signed my contract, I never stopped doing my regular routine. I tell young players that whatever you do with your time and money, it’s just going to enhance when you have money. Fortunately, earning large amounts of money didn’t change me much. But it was nice that if I wanted to do something, I could do it at the drop of a dime. I am a spontaneous person, so it’s nice to be able to do or buy something if I want.

David Carr (2002 draft: Round 1, Pick 1)

My first purchase: We had already bought a beautiful home in Houston, but we had nothing in it. I remember eating pizza while sitting on the floor with my wife, so the first thing we did was buy a couch and a TV. Then we paid the house off.

It’s very tempting to go out and blow it. Fortunately, I had a great support system, and my dad would’ve kicked my butt if I spent it recklessly. My signing bonus was around $14 million, and I told my dad that maybe I should cash it. He said laughing, “You’re going to cash this? Where do you plan on putting that when you walk out of the bank?”

Having that much money in a matter of seconds was like winning the lottery, I’d imagine. There’s no other way to equate it. It kind of feels like you have Monopoly money. One hard thing is, you feel like you have to spend it, because you’re around all your teammates who are spending their money. It’s an interesting dynamic, and you have to keep your head on straight. Otherwise, you’re going to end up on “Broke 2.”

LaDainian Tomlinson (2001 draft: Round 1, Pick 5)

My first purchase: I bought my mom a house and a new ride. She wanted a Cadillac Escalade, so that’s what she got. Other than that, I put my money in the bank and invested it.

It’s a great feeling to be set financially, but it’s overwhelming, because you get so many phone calls. You become the guy that everyone looks at to pay the bills or help with business ideas. It’s hard to say no to family members or friends that you love and grow up with, but you have to.

Nate Burleson (2003 draft: Round 3, Pick 71)

My first purchase: I bought an Escalade, a fake watch and a fake chain — in my mind, I thought no one is going to question if they were real because I was an NFL player — and gave my parents money to help with bills. Looking back, I wish I would have bought a more fuel-efficient vehicle and a home.

Growing up, I was a multi-sport athlete and didn’t specifically focus on an NFL career, so I had absolutely no clue what to expect. I remember the Vikings gave me a check for $529,000, and it was unbelievable. I was very frugal at first, because I figured I better walk out of this career with more money than I came in with, and I didn’t know how long my career was going to last. I was a hoarder of my money early on, because I didn’t have the knowledge I wanted to about investments or buying property or fancy things. The easiest thing for me was to keep it in my bank account where I could see it.

Shaun O’Hara (undrafted in 2000)

My first purchase: I’m pretty sure I bought the keg that night for my group of friends.

The craziest thing about becoming an NFL player who makes a good chunk of money is how people start to look at you differently. Your phone rings a lot more. People are happy for you, but everybody starts to want something from you, too. That was a hard thing for me to manage, because I’m a pleaser. I don’t like saying no, but you have to protect yourself. Saying no is something that goes against my natural instinct, so it had to become a learned behavior.

Eric Davis (1990 draft: Round 2, Pick 53)

My first purchase: My parents wanted a new roof for their home, so I took care of that for them. I also bought a few sweatsuits and a gold Mickey Mouse watch.

I remember that I didn’t have a reason to spend the money. I paid my bills and that was about it. There was no direct deposit back then, and most of the time I didn’t feel like actually going to the bank. I would have checks sitting on the kitchen table, and sometimes I looked over and remembered thinking, Man, I really need to go to the bank.
Ike Taylor (2003 draft: Round 4, Pick 125)

My first purchase: I threw it in the bank and maybe bought some clothes and shoes. That was about it.

It’s a life-changing event. With that amount of money, it’s not so much that you start finding all of these new things to spend your money on, but instead, your habits are escalated. I understood what amount I needed to save and reach to live well for the rest of my life. Getting into that position financially is part of what you work so hard for.

Comment by Dandroidz
2016-05-03 08:47:04

I was actually surprised that most of them were savvy. Yes they took care of their moms, which is typical, but the majority just stashed it or invested, probably why they were smart enough to go on to be analysts on the NFL Network.

 
Comment by Apartment 401
2016-05-03 08:54:51

Johnny Manziel will be dead by age 25.

Comment by In Colorado
2016-05-03 09:22:12

And if not, he’ll be hawking mobile phones at a kiosk in a mall.

Comment by Dandroidz
2016-05-03 09:29:47

Fat chance. His family comes from Texas oil money. He sold a book before even getting drafted, and pocketed a nice signing bonus.

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Comment by In Colorado
2016-05-03 11:01:11

That explains a lot.

 
 
 
Comment by phony scandals
2016-05-03 09:22:19

Now that would be a great article.

Johnny Manziel reveals how he spent his first NFL paycheck.

 
 
Comment by phony scandals
2016-05-03 09:31:37

Remember kids, shut down those Twitter accounts on draft day or you too may show up on video doing a $14,000,000.00 bong hit.

Original Video of Laremy Tunsil Smoking Off A gas Mask - YouTube
http://www.youtube.com/watch?v=hS-zfINjNHQ - 392k - Cached - Similar pages
4 days ago

 
Comment by rj chicago
2016-05-03 10:38:08

And ….. 30 for 30 has an episode - simply titled “Broke” - well worth a look given the above post.

Comment by Dandroidz
2016-05-03 10:51:35

“Broke” is a great ESPN 30:30 doc. The common theme was the inability for those athletes to say “No” to their friends and families constantly hounding them for money. That and a complete lack of financial understanding in life, same for most kids in public school. They don’t teach you about the property taxes on that McMansion, or taxes on all 8 of those luxury cars.
In relation to the HBB, Bernie Kosar lost his hat being heavily invested in RE and then the crash ruined him.

 
Comment by phony scandals
2016-05-03 11:41:31

“well worth a look given the above post.”

Hell, not even all the NFL Network analysts were in the post above.

Warren Sapp Behind $728,100 in Alimony and Child Support

2/6/2012 12:30 AM PST BY TMZ STAFF

NFL legend Warren Sapp has filed documents to try and lower his alimony and child support payments to his ex-wife — and it’s no wonder … she claims he’s fallen behind in his payments to the tune of $728,100!!!

According to court documents filed in Florida, as part of his divorce judgment back in 2007, Sapp was ordered to pay $15,000/month in support for his two kids and another $45,000/month in alimony.

But Sapp’s ex, Jamiko, claims that since March 2010, he hasn’t been following the terms of the judgment. She claims he’s been paying random amounts each month and NOTHING at all for two of the months.

Jamiko claims Warren’s missed payments amount to $728,100 and filed a motion asking a judge to enforce their divorce agreement.

In October 2011, Sapp filed documents of his own … asking a judge to lower his monthly payments.

A judge has yet to rule on either request.

Warren Sapp
From Wikipedia

Legal troubles

On February 7, 2010, Sapp was arrested in South Florida and charged with domestic battery while in Florida as an analyst for the NFL Network’s coverage of Super Bowl XLIV, but following the arrest the NFL Network cancelled his appearance.[22] On March 24, however, the charges against Sapp were dropped.

On February 2, 2015, the day after Super Bowl XLIX, Warren Sapp was arrested on suspicion of soliciting a prostitute and assault. Later that day it was revealed Sapp’s contract had been terminated by the NFL Network.[23]

Bankruptcy

In 2010, PNC bank was awarded a judgment of $988,691.99, and in December 2011 filed a monthly lien of $33,333 against Sapp’s $45,000 NFL Network paycheck. He also owed the Internal Revenue Service $853,003 from income in 2006 and $89,775 for 2010. He was $876,000 behind on alimony and child support for his former spouse, owed $68,738 for unpaid property taxes in Windermere and owed money to attorneys, friends and a speech therapist as well.[3]

On April 7, 2012, the Associated Press reported that Sapp had filed for bankruptcy in an effort to discharge debt from failed businesses. In these Chapter 7 filings, he claimed to have lost his University of Miami championship rings and his Buccaneer Super Bowl ring. The balance in his checking and savings accounts was said to be less than $1,000. He claimed no credit card debt and owns no automobiles, but owes National Car Rental $90,685 through his business, Nine-Nine LLC.[3] Court filings indicated Sapp’s assets totaled $6.45 million against a debt of $6.7 million. His monthly income was reported as $115,861.[24] On November 1, 2012, Sapp’s 10,000-square-foot house in Windermere was auctioned off and sold for $2.9 million.[25][26]

Comment by Dandroidz
2016-05-03 11:51:02

One killer for some athletes, Adrian Peterson(5), Terrell Owens (3), Antonio Cromartie (6) child support with different baby mommas. They got locked in by the courts at their playing level salaries at their peak athletic careers and it follows them way beyond their playing days.

That child support is heck of a lot worse than property tax. At least they can opt to sell the massive house, unless its beyond ridiculous.

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Comment by Tarara Boomdea
2016-05-03 07:38:13

I don’t know why I’ve been so worried. I’ll just go out at grab me a house.
Special Report (Las Vegas): Squatters Among Us

Comment by The Selfish Hoarder
2016-05-03 09:02:46

Keep your eye on stocks. Some of my alerts are starting to appear on price drops. Abbot Labs (ABT), Community Health Systems (CYH), Apple, Toyota.

Don’t have much to put in so on one of these four I bought just a few to keep my brokerage fee down to under 2% of the purchase. On another I still have a lower buy limit set, and waiting to pounce.

Years ago when there was a America West Airlines, I noticed more and more fliers on that airline while the price was falling. I bought a few shares, price fell. I bought more shares as the price fell further. Repeat another two times. A year later I realized a $3,000 gain.

Very often the case, the peanut gallery is yapping at how bad a company is while its stock is falling a lot. They keep yapping and yapping. The fearless swoop in and buy. Voluntaryists are good at going against the crowds and winning. We don’t do as the media tells us to do.

 
 
Comment by phony scandals
2016-05-03 07:41:34

Make the check payable to Clarence Ash.

That would be C Ash

 
Comment by Senior Housing Analyst
2016-05-03 07:56:02

Miami Lakes, FL Housing Affordability Improves As Prices Plunge 6% YoY

http://www.zillow.com/miami-lakes-fl/home-values/

 
Comment by Professor Bear
2016-05-03 08:07:25

Top News
Tue May 3, 2016 | 8:56 AM EDT
Oil drops as higher output stokes concern over supply glut
By Simon Falush

LONDON (Reuters) - Oil fell on Tuesday as rising output from the Middle East renewed concerns about global oversupply while economic data painted a negative backdrop for the outlook for demand.

Brent crude futures LCOc1 were trading 40 cents lower at $45.43 a barrel at 1234 GMT (0834 EDT), retreating from earlier gains. U.S. crude futures CLc1 were down 53 cents at $44.25 a barrel.

Iraq said its oil shipments from southern fields averaged 3.364 million barrels per day (bpd) in April, up from 3.286 million in March.

Production from top exporter Saudi Arabia was 10.15 million bpd in April, but sources said that it could soon return to a near-record level of 10.5 million bpd.

Iran is also raising output after its emergence from Western sanctions in January and has increased exports to almost 2 million bpd from a little more than 1 million bpd at the start of the year.

Comment by Dandroidz
2016-05-03 10:54:35

“Stokes concern over supply glut”. Like those photos of super tankers lined up looking for a port to unload oil at? Haha. The oil price is such a joke. It should still be at $20-28/bbl, nothing has changed in terms of consumption or production. All speculation.

Comment by Professor Bear
2016-05-03 12:18:09

An above-equilibrium price serves to continually stimulate production at levels the market cannot absorb, pretty much baking in further price declines.

 
 
 
Comment by aNYCdj
2016-05-03 08:08:51

this bodes well for the future…not

Too many millennials are facing buyers’ remorse over one of the most expensive purchases they’ll ever make

https://www.yahoo.com/finance/news/too-many-millennials-facing-buyers-180000396.html

Comment by Gorilla Monsoon
2016-05-03 09:12:56

the millennial narrative is a fully fabricated media fraud.

 
Comment by Puggs
2016-05-03 09:20:17

To bad wisdom is not imparted in ones youth. LOL!!!! Guess they should listen to granny and grandpa more often.

The hardest lessons are paid back one buck at a time. Hey, at least the interest is deductible!!

Comment by MightyMike
2016-05-03 11:45:41

You must have had unusual grandparents. There probably are very few who discuss student loans with their grandchildren.

Comment by Apartment 401
2016-05-03 11:50:13

Irrelevant.

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Comment by Puggs
2016-05-03 13:04:50

(There are) many.

Regardless of purpose, if you don’t have the money for it you don’t buy it. You should watch it…

http://www.nbc.com/saturday-night-live/video/dont-buy-stuff/n12020

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Comment by MightyMike
2016-05-03 14:33:58

Thanks for the advice, but it’s too late for me. I took out loans for college. Then I paid them off. It all worked out OK.

 
Comment by palmetto
2016-05-03 16:15:39

And here y’are, trolling people on the HBB. What a success story.

 
Comment by MightyMike
2016-05-03 16:30:34

It isn’t quite trolling, but I do get a lot of crickets from the confused.

 
Comment by Gorilla Monsoon
2016-05-03 16:38:21

Irrelevant.

 
 
 
 
Comment by In Colorado
2016-05-03 09:35:06

“57% of millennial graduates regret taking out as many loans as they did”

They probably weren’t thinking that when they went to Cancun on Spring Break.

An anecdote: My son got his first job as a teacher here in the Centennial State, starting this fall. The catch is that it’s an “80%” position, meaning that it’s not full time. Just 32 hours a week. Still, he was lucky, as most of his classmates were offered 50% jobs (and more than a few got no offers at all). I guess they’ll have to keep their other jobs for the time being. He will be able to supplement some of the missing 20% by subbing and coaching.

My son didn’t accumulate a lot of debt, at least by today’s standards. He had a scholarship, he worked and we helped him out.

Comment by Puggs
2016-05-03 10:24:53

Stay as far away from debt as possible. You’ll be glad you did.

 
 
 
Comment by Apartment 401
2016-05-03 09:14:05

Millennials’ almost impossible quest: Buying homes in Boulder County

“$1,310 doesn’t get you a lot these days.

When it comes to real estate, it gets you absolutely nothing. It’s not even enough to cover typical closing costs on a home purchase.

Yet $1,310 is the amount the average Boulder County millennial has saved toward a future home, according to a recent report from online rental marketplace ApartmentList.com.

At the current rate of savings that more than 30,000 renters aged 18 to 35 self-reported in the survey, it would take 38 years to save up a 20 percent down payment on a home here.”

http://www.denverpost.com/dontmiss/ci_29830380/millennials-almost-impossible-quest-buying-homes-boulder-county

Comment by In Colorado
2016-05-03 09:57:48

Their kind isn’t welcome in Bouldercity anyway. Of course, there are cheaper places in Boulder County, like El Longmonto.

Comment by Apartment 401
2016-05-03 14:07:54

I heard an ad on 850KOA yesterday advertising mortgages for first time buyers with only $1000 down.

 
 
Comment by cactus
2016-05-03 12:31:11

In the book “Flashback ” I like the part about getting into Boulder to interview a very wealthy dot com billionaire.

Never been to Boulder but I get a image from the book.

 
 
Comment by aNYCdj
2016-05-03 09:23:19

way OT but scary..

Snapchat speed filter blamed for 107-MPH highway accident

http://money.cnn.com/2016/04/26/technology/snapchat-speed-filter/index.html

 
Comment by Senior Housing Analyst
2016-05-03 10:20:50

Robert Schiller: “Houses Depreciate”

http://www.pragcap.com/robert-shiller-dont-invest-in-housing/

Comment by CalifoH20
2016-05-03 18:27:42

SOMETIMES THEY DON’T. TIMING IS EVERYTHING.

Comment by Gorilla Monsoon
2016-05-03 18:59:36

Always my friend.

Novato, CA Housing Prices Crater 11%YoY

http://www.zillow.com/novato-ca/home-values/

 
 
 
Comment by Puggs
2016-05-03 10:40:41

Millennials are “disappointed”

So what, I didn’t ask about yer feelin’s.

 
Comment by Apartment 401
2016-05-03 10:42:36

Edward Snowden writing for Glenn Greenwald’s The Intercept:

“We are witnessing a compression of the working period in which bad policy shelters in the shadows, the time frame in which unconstitutional activities can continue before they are exposed by acts of conscience. And this temporal compression has a significance beyond the immediate headlines; it permits the people of this country to learn about critical government actions, not as part of the historical record but in a way that allows direct action through voting — in other words, in a way that empowers an informed citizenry to defend the democracy that “state secrets” are nominally intended to support. When I see individuals who are able to bring information forward, it gives me hope that we won’t always be required to curtail the illegal activities of our government as if it were a constant task, to uproot official lawbreaking as routinely as we mow the grass. (Interestingly enough, that is how some have begun to describe remote killing operations, as “cutting the grass.”)

https://theintercept.com/2016/05/03/edward-snowden-whistleblowing-is-not-just-leaking-its-an-act-of-political-resistance/

Comment by The Selfish Hoarder
2016-05-03 20:28:10

True. Edward Snowden is the hero of the 21st century (so far). Anyone who wants to punish him for revealing the crimes by the government against the world should be flogged.

 
 
Comment by palmetto
2016-05-03 10:58:23

Holy Jeebus, what in the name of Loki is going on these past couple of days? Meltdown City by prominent people, all over the place. And I’m not just talking political here, it seems to be across a spectrum of so-called elites in finance, gubmin, religion, etc. Gorilla, get out those Rage Cages, we’re gonna need ‘em. The masks and skins are coming off and the inner reptiles are being unleashed.

Comment by palmetto
2016-05-03 11:35:09

LOL, reminds me of a pod of gators rolling all over each other, tails thrashing the water into foam, jaws snapping.

Just like they enjoy wagging their fingers at us: “Why so angry and bigoted, guyz n’ galz? Everything is awesome!”

Comment by palmetto
2016-05-03 13:12:56

Ooh-la-la, there goes another one having a meltdown. Right from the top, too. LOL! The hissy-fits just keep on comin’ today.

 
Comment by snake charmer
2016-05-03 14:40:24

Speaking of inner reptiles, I did some work in the back yard last weekend and disturbed not one, but two snakes. One was about three feet long and scared the heck out of me. Thankfully they were of the garter snake/black racer variety.

Comment by palmetto
2016-05-03 16:10:18

Yah, we’ve had some of those black racer/rat snakes around recently. One got into the lanai when the glass sliders were open, it must’ve got around the screens. LOL, I even saw one with its head poking out of a bush.

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Comment by Justme
2016-05-03 11:23:25

“In Denmark, where rates have been below zero longer than anywhere else on the planet,…”

The negative rates must be on reserves parked at the central bank. You can see some deposit rates here, varying from 0% to 0.2%

https://www.jyskebank.dk/produkter/konti/opsparing/opsparingskonto

 
Comment by Rental Watch
2016-05-03 12:15:21

http://www.mercurynews.com/news/ci_29841271/wildfires-cause-dip-new-california-housing-units?source=rss

Prices are high, and we’re building even less. We need to build more.

Comment by Gorilla Monsoon
2016-05-03 12:24:16

With 25 million excess empty and defaulted houses, there isn’t a need to build more shacks.

Comment by palmetto
2016-05-03 14:25:06

No, but we need more rage cages. Get to work, Gorilla! Yer slackin’ off. We’ll get someone to bring you Cheetos. Cuz a man’s gotta eat.

Comment by palmetto
2016-05-03 17:24:49

Speaking of Cheetos, Glenn Beck smashed his face in a pile of Cheetos.

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Comment by Dandroidz
2016-05-04 03:58:48

I wonder how long before the banks convert those 25 million SFH into multi-family condominiums. All around my town in Massachusetts, homes that look like they were once a large SFH, are now 2-3 “condo” units. Disgusting.

 
 
 
Comment by Senior Housing Analyst
2016-05-03 14:00:47

Fair Oaks, CA Housing Affordability On The Rise As Prices Crater 13% YoY

http://www.zillow.com/fair-oaks-ca-95628/home-values/

 
Comment by snake charmer
2016-05-03 14:58:44

I’m surprised no one posted on the irony of Nigeria begging the UK to take action against corruption. Laundering money through private school tuition, I hadn’t heard that one before. Everyone is fighting to be the preferred home of dirty money, without realizing that dirty money undermines and contaminates everything it touches.

Comment by palmetto
2016-05-03 16:13:18

I meant to post, but I guess I figured, what’s the use. For some reason Nigeria seems to be the African capital of scams.

Although I did get an email from a former member of their government and he wants me to help him get $35 million out of the country and he’s willing to pay me 50%. Hubba-hubba!

 
 
Comment by Senior Housing Analyst
2016-05-03 15:03:46

Sarasota, FL Housing Affordability Skyrockets As Prices Plummet 16% YoY

http://www.movoto.com/sarasota-fl/market-trends/

 
Comment by Ben Jones
2016-05-03 15:08:16

Oh dear…

‘Mortgage giant Freddie Mac reported a net loss of $354 million for the first quarter, mostly due to losses it sustained on the investments it uses to hedge against swings in interest rates. Freddie also sustained a loss in the third quarter of last year, $475 million, also largely due to losses on derivatives used to hedge against interest-rate swings.’

‘For the first quarter, Freddie posted accounting losses on derivatives of about $1.4 billion and another $600 million related to changes in interest rates on mortgages and securities linked to them.’

‘Freddie and Fannie own or guarantee about half of all U.S. mortgages, worth about $5 trillion. Along with other federal agencies, they back roughly 90 percent of new home loans.’

http://www.muskogeephoenix.com/news/oklahoma_news/freddie-mac-posts-m-loss-in-q-no-dividend-payment/article_d023cccd-21c2-5916-831d-97427c5dff03.html

On this:

‘That compared with $3.4 billion in net interest income for the period.’

So $1.4 billion and $600 million is $2 billion. You got a loss of $354 million. Where did the other $1.7 billion go?

Comment by Raymond K Hessel
2016-05-03 16:41:35

Oh dear is right. Get ready to dig deep, taxpayers. Yet again.

 
 
Comment by Gorilla Monsoon
2016-05-03 15:52:21

Fraud far and wide, top to bottom.

“Realtor Group Executive Indicted On Hundreds Of Embezzlement Charges”

http://www.housingwire.com/articles/36941-former-new-mexico-realtor-group-executive-indicted-on-hundreds-of-embezzlement-charges

 
Comment by palmetto
2016-05-03 16:05:58

Still winning.

Comment by phony scandals
Comment by palmetto
2016-05-03 18:48:02

Well! That escalated quickly.

https://www.youtube.com/watch?v=FONN-0uoTHI

 
 
Comment by phony scandals
2016-05-03 18:49:51

Sova

Comment by palmetto
2016-05-03 19:13:01

OK, made me look. Which one is it?

http://www.abbreviations.com/SOVA

Well, somebody opened a can of whoopass anyway.

 
 
 
Comment by Raymond K Hessel
2016-05-03 16:23:52

Attention Obama Zombies, McCain Mutants, and Romney Retards! Medical science needs you!

http://www.telegraph.co.uk/science/2016/05/03/dead-could-be-brought-back-to-life-in-groundbreaking-project/

 
Comment by Raymond K Hessel
2016-05-03 16:44:33

While “Democrat official” and “corrupt scumbag” are redundant, it’s nice to finally see one headed to the Big House after years of fraud and swindles against taxpayers.

http://nypost.com/2016/05/03/sheldon-silver-gets-12-years-in-prison-for-corruption/

 
Comment by Raymond K Hessel
2016-05-03 16:46:21

At least one country is finally drawing the line on selling off their assets to the Chinese.

https://www.rt.com/business/341379-australia-block-land-sale/

 
Comment by Raymond K Hessel
2016-05-03 16:48:36

Hillary called out on throwing yet another white blue collar demographic under the bus.

http://www.zerohedge.com/news/2016-05-03/i-dont-know-how-explain-it-confused-clinton-cant-explain-own-comments-coal-miner

Comment by palmetto
2016-05-03 19:22:25

Heh, she’s also trying to throw comedians under the bus:

http://www.judicialwatch.org/blog/2015/11/clinton-goes-after-laugh-factory-comedians-for-making-fun-of-her/

Actually this is a bit chilling, like a third world dictator silencing dissent.

Comment by Oddfellow
2016-05-03 19:49:35

like a third world dictator silencing dissent.

Like making libel laws much stricter to rein in the press?

 
Comment by MightyMike
2016-05-03 20:10:54

Masada told Judicial Watch that, as soon as the video got posted on the Laugh Factory website, he received a phone call from a “prominent” person inside Clinton’s campaign. “He said the video was disgusting and asked who put me up to this,” Masada said. The Clinton staffer, who Masada did not want to identify, also demanded to know the names and phone numbers of the comedians that appear in the video.

If this guy is upset about this phone call, one would think that he would name the caller. He could have made up this whole story.

 
 
 
Comment by Raymond K Hessel
2016-05-03 17:03:02

Stupidity has consequences, as the sheeple of Apalachia should’ve realized when they overwhelmingly supported the most corrupt power couple in modern American politics, Bill and Hillary Clinton. Now after getting a DELIVERANCE-style reaming from hope ‘n change, the denizens of West Virginia are realizing why no straight white male in his right mind should EVER vote for a Democrat.

http://hosted.ap.org/dynamic/stories/U/US_DEM_2016_CLINTON?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2016-05-03-14-11-52

Comment by Ben Jones
2016-05-03 17:29:15

OK sad pandas, all together now:

Pack up all my cares and woes
Feeling low here I go
I’m a sad, sad panda
Where somebody waits for me
Sugar sweet so is she
I’m a sad, sad panda
No one seems to love or understand me
And all the hard luck stories they keep handing me
Where somebody shines the light
I’ll be coming on home tonight
I’m a sad, sad panda
Nobody seems to love or understand me
And all the hard luck stories they keep on handing me
Where somebody shines the light
I’m coming on home tonight
I’m a sad, sad panda

Comment by Raymond K Hessel
 
Comment by phony scandals
2016-05-03 18:08:54

“OK sad pandas, all together now:”

Panda Chant - YouTube
http://www.youtube.com/watch?v=8tr_WQWhtwM - 199k -

 
 
Comment by Raymond K Hessel
2016-05-03 17:31:12

“Democrats have lost support in Appalachia as the region has shed jobs in industries such as coal mining and as union membership has declined, said Democratic strategist Dave “Mudcat” Saunders. The leftward shift of the Democratic Party during the Obama administration on social issues, including gay marriage and gun control, hasn’t helped. “In those areas, it has become culturally unacceptable for a white male to admit he’s a Democrat,” Saunders said.”

 
Comment by MightyMike
2016-05-03 18:29:33

The statistics also show that WV never “overwhelmingly supported” Bill Clinton. He got 51½ percent of the vote in ‘96.

Comment by Raymond K Hessel
2016-05-03 19:56:15

OK, so 51% voted for evil. They got what they deserved.

Comment by Raymond K Hessel
2016-05-03 20:12:58

Also keep in mind that the GOP “alternatives” were as odious as Clinton. All of them were and are owned by the same financial elites that have been screwing over the 99% since they stood up the Federal Reserve in 1913.

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Comment by Muggy
2016-05-03 18:12:20

“Creep” by Renterhead

When you were here before
Couldn’t look you in the eye
You’re just like an angel
Your equity makes me cry
You float like an owner
In a beautiful world
I wish I was special
You’re so very special

[Chorus:]
But I’m a creep
I’m a Renter
What the hell am I doing here?
I don’t belong here

I don’t care if it hurts
I want to have control
I want a perfect roof
I want a perfect soul

I want you to notice
When I’m not around
You’re so very special
I wish I was special

[Chorus:]
But I’m a creep
I’m a Renter
What the hell am I doing here?
I don’t belong here

Oh, oh

She’s running out again
She’s running out…
She run run run run…
Run…

Whatever makes you happy
Whatever tile you want

You’re so very special,
I wish I was special…

But I’m a creep
I’m a Renter
What the hell am I doing here?

I don’t belong here
I don’t belong here

Comment by Gorilla Monsoon
2016-05-03 19:24:10

Cheer up FL_Donk.

Tampa, FL Housing Prices Dive 5% YoY On Ballooning Housing Inventory

Comment by Muggy
2016-05-03 19:33:34

Cool. I don’t live in Tampa.

Comment by Gorilla Monsoon
2016-05-03 19:46:06

No need to take falling housing prices personal FL_Donk.

Glendale, CA Housing Prices Plummet 11% YoY

http://www.zillow.com/glendale-ca/home-values/

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Comment by Muggy
2016-05-03 20:15:03

You will never get what you want. Ever.

Crushing.Hoser.Losses.

 
Comment by Gorilla Monsoon
2016-05-03 20:35:52

You’re letting the data enrage you FL_Donk.

Brookline, MA Housing Prices Crater 15% YoY

http://www.movoto.com/brookline-ma/market-trends/

 
 
 
 
 
Comment by anklepants
2016-05-03 18:44:53

Make the Rage Cage Great Again. Where’s Lola?

 
Comment by MightyMike
2016-05-03 19:02:15

Gas Delivery Startups Want to Fill Up Your Car Anywhere. Is That Allowed?

A new class of companies aims to be the “Uber for gasoline.” A spokesman for the San Francisco fire department says the businesses are “not permitted.”

A new crop of startups are trying to make gas stations obsolete. Tap an app, and they’ll bring the gas to you, filling up your car while you’re at work, eating breakfast, or watching Netflix. Filld, WeFuel, Yoshi, Purple and Booster Fuels have started operating in a few cities including San Francisco, Los Angeles, Palo Alto, Nashville, Tennessee, and Atlanta, Georgia. But officials in some of those cities say that driving around in a pickup truck with hundreds of gallons of gasoline might not be safe.

“It is not permitted,” said Lt. Jonathan Baxter, a spokesman for the San Francisco fire department. Baxter said if San Francisco residents see any companies fueling vehicles in the city, they should call the fire department.

Yoshi, which operates in San Francisco, was surprised to hear Baxter’s concerns. “We haven’t talked to them. I don’t know about that. It’s news to me,” said co-founder Nick Alexander. The next day, he said he believed Yoshi was following the law and that it had been careful to limit the size of their gas tanks to stay under limits outlined in the International Fire Code, a guideline followed by many U.S. states.

Filld, an 18-month-old startup with thousands of customers in Silicon Valley, plans to start service in San Francisco on Monday, deploying three delivery trucks at 1 p.m. “You can never ask for permission because no one will give it,” said Chris Aubuchon, the chief executive officer at Filld.

http://www.bloomberg.com/news/articles/2016-05-02/gas-delivery-startups-want-to-fill-up-your-car-anywhere-is-that-allowed

Comment by Gorilla Monsoon
2016-05-03 19:19:41

Irrelevant.

Boston Metro Housing Prices Plummet 9% YoY

http://www.zillow.com/ma/home-values/

Comment by Dandroidz
2016-05-04 04:06:02

Where do you get -9%? The link you provided shows linear growth of median home value.

Comment by Gorilla Monsoon
2016-05-04 05:03:35

Prices fell 9% YoY.

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Comment by palmetto
2016-05-03 19:03:21

It was a Melt-Down Day.

It’s much too groovy a summer’s day
To waste running ’round in the city
But here on the sand I can dream away
Or look at the girls in their pretty

It’s a Melt Down day, nothin’ on my mind
It’s a Melt Down day and I dig it

There’s nothing easier I can do
Than lyin’ around doing nothing

It’s a Melt Down day, just a turn ’round day
It’s a Melt Down day and I dig it

Soft summer breeze and the surf rolls in
To laughter of small children playin’
Someone’s radio has the news tuned in
But nobody cares what he’s sayin’

Don’t you know
It’s a Melt Down day, nothin’ on my mind
It’s a Melt Down day and I dig it

Things that are waitin’ to mess my mind
Will just have to wait ’til tomorrow

It’s a Melt Down day, just a turn ’round day
It’s a Melt Down day and I dig it

It’s a Melt Down day, nothin’ on my mind
It’s a Melt Down day, just a turn ’round day
It’s a Melt Down day, just a turn ’round day

Read more: The Cyrkle - Turn Down Day Lyrics | MetroLyrics

 
Comment by Senior Housing Analyst
2016-05-03 19:13:35

Vienna, VA Housing Affordability Improves As Prices Crater 7% YoY

http://www.zillow.com/vienna-va/home-values/

 
Comment by Gorilla Monsoon
2016-05-03 19:55:57

Case Shiller suggests housing prices have a long way to fall.

http://picpaste.com/pics/6312f643a7f730e73d6616964ec1c711.1462330524.jpg

Comment by The Selfish Hoarder
2016-05-03 20:16:43

Izzat adjusted for inflation?

Comment by Gorilla Monsoon
2016-05-03 20:31:02

That’s right.

 
 
 
Comment by Senior Housing Analyst
2016-05-03 20:40:12

Thornton, CO Housing Affordability Improves As Prices Nosedive 13%YoY

http://www.movoto.com/thornton-co/market-trends/

 
Comment by phony scandals
2016-05-14 07:29:24

Obama’s last act is to force suburbs to be less white … - New York Post
nypost.com/…/ - 275k -

 
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