July 31, 2016

Buyers Are Worried They Will Be Left Holding The Baby

A report from MarketWatch. “After years of watching the market favor sellers, many agents say they’ve seen a recent shift that has affected luxury property sales across the globe: We’ve entered a buyer’s market. Jed Garfield, president of Leslie J. Garfield & Co., a New York–based brokerage that focuses on town houses, said he saw signs of this trend in late 2015, when properties that were listed at a fair market price didn’t sell. But recently, the impact has been dramatic. For example, a town house on East 70th Street between Park and Lexington avenues that was bought for $31 million in 2013, re-listed for $32.5 million a year and a half ago—and then dropped down to $22 million three months ago.”

“‘The market is not what it was,’ Garfield said. There’s an expectation that real estate prices will rise 3% to 5% each year, he added, but buyers won’t stand for that anymore. ‘You’d be very hard-pressed to find anybody who would pay more than 2015 prices today,’ he added.”

“Interested buyers should negotiate hard, according to Dolly Lenz, of Manhattan-based Dolly Lenz Real Estate. And that advice holds not just for luxury real estate in the New York market but also for those also in other U.S. cities like Miami and San Francisco, where there’s an excess of high-end, new and often similar inventory. When it comes to the global market, Dubai has definitely converted to a buyer’s market, despite having ‘gorgeous architecture and beautiful properties,’ because developers built too much too quickly, according to Lenz.”

The Wall Street Journal. “The value of the Earls Court development, one of the biggest residential projects in London, has fallen 14% because of expectations that Britain’s vote to leave the European Union will drag down house prices across the city. Capital & Counties Properties PLC on Tuesday said the value of its west-London project was £1.2 billion ($1.58 billion) at the end of June, down from £1.4 billion at the last assessment in December.”

“Even before Brexit, prices for high-end homes in central London had been falling in part due to shrinking demand from global investors and a raft of new taxes. In July, London homeowners perceived that the value of their homes had fallen for the first time since October 2012, according to a survey from property broker Knight Frank and data firm Markit.”

“‘We see a classic housing bubble in London and Brexit as the trigger for the correction,’ said Marc Mozzi, an analyst at Société Générale, in a note to investors last week. The potential for falling commercial real-estate values have garnered a lot of attention, but ‘U.K. residential may be the real and bigger issue,’ Mr. Mozzi said.”

The Australian Financial Review. “Off-the-plan investors struggling to complete their apartment purchase because of strict new lending rules are being urged to face tough options to get their financial problems under control. Financial advisers and financiers say thousands of investors with exposure to billions of dollars in high-rise apartments are searching for ways of deferring, reducing or off-loading payments through alternative funding or selling the apartments, typically around central business districts.”

“The scale of the problem is unclear but anecdotal observations from financial advisers in Australia and Shanghai (where many buyers live) are that it could be big – and growing. ‘More than one in three of our clients who bought off the plan are having problems,’ says Peter Ristevski, a partner with Chan & Naylor, a national advisory group. ‘It is getting worse,’ adds Ristevski, who is based in western Sydney. ‘Potential distressed buyers are growing more sceptical about the prospects of losing money – they are worried that they will be left holding the baby if things go wrong.’”

“Lanny Xu, chief executive of Iron Fish China, a broker’s agent in Shanghai, said about 20 per cent of his clients who purchased Australian apartments cannot complete the deal and are trying to sell. Other agents claim financing from major banks has been ‘frozen’ and say their clients are desperately seeking alternative funding or finding another buyer. ‘I have stopped dealing in Australian property,’ says Mark Yin, an agent with Shanghai-based Home Tree Group. ‘All deals have been frozen,’ he said about Australian bank funding.”

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Comment by Ben Jones
2016-07-31 15:35:45

‘Lanny Xu, chief executive of Iron Fish China, a broker’s agent in Shanghai, said about 20 per cent of his clients who purchased Australian apartments cannot complete the deal and are trying to sell. Other agents claim financing from major banks has been ‘frozen’ and say their clients are desperately seeking alternative funding or finding another buyer.’

So much for the all cash Chinese buyer. We’ve seen reports of Chinese pre-construction speculators walking away from deposits in London not that long ago.

And from the end of the MarketWatch article:

‘Prime Beverly Hills has also been immune to big price cuts, Lenz added, as have cities like Melbourne and Sydney in Australia, where Chinese purchasers have been known to buy up an entire building in a day.’

Comment by Raymond K Hessel
2016-07-31 15:46:16

Which “major banks” are financing these embezzlers and money launderers? And who will be bailing them out?

Comment by Ben Jones
2016-07-31 15:55:57

In Australia they all were. In the past few weeks some started blacklisting certain areas in Brisbane and Melbourne. (Sorry Dolly, not immune). As I mentioned earlier today, Canadian banks were giving 100% loans (3 Vancouver houses, IIRC) to some guy who got sued for embezzlement by the Chinese government.

The way I understand it, these speculators in Australia had loans. But went the project is complete they re-evaluate the “value” and if it was fallen since the deal was made, the buyers have to come up with the difference. A bunch will walk and the developers will wish they hadn’t “sold the building in a day”.

Comment by Raymond K Hessel
2016-07-31 16:03:50

I’m sure those Chinese embezzlers have a confusican moral code about honoring their financial obligations, so this should all work out OK in the end.


(Comments wont nest below this level)
Comment by Big Mac
2016-07-31 16:36:12

“So much for the all cash Chinese buyer.”

It was a narrative never founded in reality anyways.

dumb.borrowed.money. is the tangible truth.

Comment by Professor Bear
2016-07-31 17:24:23

“Other agents claim financing from major banks has been ‘frozen’ and say their clients are desperately seeking alternative funding or finding another buyer.”

How is funding even a relevant consideration to wealthy all-cash buyers?

Comment by The Selfish Hoarder
2016-08-01 07:57:41

“All cash buyer.”

They are probably starting to consider asset diversification. Amazing how people think Real estate is an investment or that stocks are the only asset class you should own.

Move Yuan to a Bitcoin wallet.

Fly to America. Get a bank account. Sweep the Bitcoin to an app that is tied to your bank account. Well Bitcoin and move to your bank account. You can buy gold directly with Bitcoin through large coin dealers via the web. Or you can take cash to a coin shop and buy gold yourself. You can move money from your bank account to a brokerage and buy from several asset classes.

Comment by Raymond K Hessel
2016-07-31 15:51:38
Comment by Raymond K Hessel
Comment by Ben Jones
2016-07-31 16:31:11

More bag, er baby holders:

‘The plunge in oil prices is catching up with Singapore’s three largest banks. On Thursday, Swiber Holdings Ltd., a small Singapore company that provides construction services for international oil and gas projects, said it filed a petition to liquidate its operations, after facing payment demands from creditors at a time when its business was under pressure. DBS Group Holdings Ltd., one of the largest lenders to Swiber, said it only expects to recover about half of the S$700 million ($518 million) it loaned to the firm and its units.’

‘DBS and Singapore’s two other large banks, Oversea-Chinese Banking Corp. and United Overseas Bank Ltd., are exposed to the downturn in the energy sector as a result of their lending to local companies which provide construction, shipping and maintenance services to the oil and gas industry. Many of those companies are suffering as the plunge in crude prices since 2014 curtailed exploration and other activity by oil and gas producers.’

‘The recent recovery in oil prices from their lows has provided only modest relief, OCBC Chief Executive Officer Samuel Tsien indicated Thursday in a media briefing on the bank’s second-quarter results, which included a 61 percent jump in nonperforming assets.’

“We cannot say it’s going to be the bottom yet. We may have two more quarters to go,” Tsien said in response to a question on the rise in delinquent energy sector loans.’

Comment by Raymond K Hessel
2016-07-31 16:25:14

Buying up overpriced western hotel chains and casinos is one way to expatriate your ill-gotten loot before the hammer comes down.


Comment by Senior Housing Analyst
2016-07-31 16:39:59

Venice, CA Housing Prices Crater 7% YoY As Housing Demand Plummets


Comment by The Selfish Hoarder
2016-07-31 16:42:58

When there is too much of something, the value goes down. Too many $31 million lofts? 33% haircut in hopes a GF shows up. Too many things to all people? Your own value in the eyes of others go down. Too many high end cars? Economy car resale values will stay high. Too much fiat? Then more fiat will be demanded in exchange for a product.

Comment by Senior Housing Analyst
2016-07-31 16:55:09

San Francisco, CA Housing Prices Plunge 12% YoY As Housing Demand Evaporates


Comment by Senior Housing Analyst
2016-07-31 17:19:23

Frisco, TX Affordability Surges As Housing Prices Plunge 5% YoY


Comment by Professor Bear
2016-07-31 17:53:30

Thanks for keeping us updated on the many corners of the U.S. where the Affordable Housing Initiative is finally starting to work!

Comment by Senior Housing Analyst
2016-07-31 18:23:39

You’re welcome. It’s our pleasure to dispel the widespread myths associated with housing.

“Cape Cod Home Prices Fall”


Comment by Professor Bear
2016-07-31 18:01:58

‘You’d be very hard-pressed to find anybody who would pay more than 2015 prices today,’ he added.”

“Interested buyers should negotiate hard, according to Dolly Lenz, of Manhattan-based Dolly Lenz Real Estate. And that advice holds not just for luxury real estate in the New York market but also for those also in other U.S. cities like Miami and San Francisco, where there’s an excess of high-end, new and often similar inventory.’

It kind of sounds as though the Fed’s real estate price inflation scheme has backfired, as they inadvertently created incentives for building a glut of high-end luxury housing. We’ve recently seen in the oil market what happens to prices when you have a persistent supply glut, and we are starting to see the same kind of price declines in the high-end residential real estate sector.

Comment by Professor Bear
2016-07-31 18:14:28

Homeownership is at an all-time low — and good luck getting a mortgage
Published: July 29, 2016 9:33 a.m. ET
Contrasting recoveries in home equity and mortgage debt say a lot about why homeownership is still complicated.
By Andrea Riquier

Years after the housing market imploded, home equity held by U.S. homeowners is closing in on its previous peak even as the total amount of mortgage debt outstanding remains well below past highs.

It’s good news that homeowners have spent the years since the crisis repairing their balance sheets—and that lenders are more prudent. But with the homeownership rate falling to a 51-year low, it’s worth a closer look at the story behind the levels of debt and equity, shown on this chart.

There are many reasons equity rebounded. Home prices nationally have nearly regained their earlier peak: in May, Case-Shiller’s national Home Price Index was just 2.1% shy of the 2006 high.

Equity is also more concentrated. The existing inventory of mortgage debt outstanding has aged over the past decade as buying and selling slowed. That means mortgage payments are further along in the amortization process, so principal, rather than interest, is being paid down.

As the Urban Institute has shown, homeowners 65 and above had 44% of what Urban calls “accessible housing wealth”—the 75% of home equity that can be tapped—despite owning only 30% of the units. That makes sense, since those people are more likely to have paid down more debt.

Comment by Professor Bear
2016-07-31 18:30:33

Is it puzzling to anyone else how home prices can be at an all-time high at the very same time wages are stagnating and home ownership is at a 51-year low?

‘Tis a puzzlement.

Comment by Big Mac
2016-08-01 11:44:38

I don’t know but I look forward to Donk Craterton’s ruminations on this subject.

Comment by Big Mac
Comment by Professor Bear
2016-07-31 19:35:42

I thought it was more like a 51-year low?

Real Time Economics Housing
U.S. Homeownership Rate Falls to Five-Decade Low
But household formation climbs as more Americans look to rent
The homeownership rate, the proportion of households that are owner-occupied, fell to 62.9%, half a percentage point lower than the second quarter of 2015 and 0.6 percentage point lower than the first quarter 2016, the Census Bureau said on Thursday.
Photo: Drew Angerer/Getty Images
By Jeffrey Sparshott
Jul 28, 2016 11:49 am ET

The U.S. homeownership rate fell to the lowest level in more than 50 years in the second quarter of 2016, a reflection of the lingering effects of the housing bust, financial hurdles to buying and shifting demographics across the country.

But the bigger picture also suggests more Americans are gaining the confidence to strike out on their own, albeit as renters rather than buyers.

The homeownership rate, the proportion of households that are owner-occupied, fell to 62.9%, half a percentage point lower than the second quarter of 2015 and 0.6 percentage point lower than the first quarter 2016, the Census Bureau said on Thursday. That was the lowest figure since 1965.

Comment by Professor Bear
2016-07-31 19:37:09

Perhaps the unprecedented flood of foreign investors driving up U.S. housing prices has resulted in the drastic decrease in U.S. owner occupancy?

Comment by Apartment 401
2016-07-31 20:40:26

Biggie Smalls — Everyday Struggle (1994):


Where did Biggie’s mom and all the other poor people in Brooklyn have to move to when they got priced out of Brooklyn?

Comment by aNYCdj
2016-08-01 05:37:04

east new york is still a ghetto, as well as the housing projects but not for long


Comment by Professor Bear
2016-07-31 20:40:52

Speaking of baby holding, who is going to get left holding the bag on the impending US credit implosion?

US banks
US $18bn credit card debt spree sparks fears
Concerns that too much risk is being taken on in slowing economy
10 hours ago
by: Alistair Gray in New York

US banks have ramped up lending to consumers through credit cards and overdrafts at the fastest pace since 2007, triggering concerns that they are taking on too much risk in a slowing economy.

The industry has piled on about $18bn of card loans and other types of revolving credit within just three months, as consumers borrow more and banks battle for customers with air miles, cashback deals and other offers.

The surge in lending has come as economists expect the US election to create sufficient uncertainty to impede growth for the rest of the year, increasing the stakes for lenders at a time when the credit cycle appears to have passed a peak.

Recently disclosed second-quarter results showed that credit card loans increased 10 per cent year-on-year at Wells Fargo, 12 per cent at Citigroup and 16 per cent at US Bank, according to Deutsche Bank research. Expansion was an especially aggressive 26 per cent at SunTrust, the $200bn Atlanta-based lender.

Across the US banking industry, credit card and other revolving loans rose at a seasonally adjusted annual rate of 7.6 per cent in the second quarter to $685bn, according to Federal Reserve data.

The credit card business remains among the most profitable in banking. Lenders can charge much higher interest rates — the US average is between 12 and 14 per cent — than for other types of credit, and borrower delinquencies are still low by historical standards.

However, there are some early indications that the cycle is beginning to turn.

“In the present environment it’s probably a safe strategy, but as we saw with housing in 07/08 that environment can change very rapidly,” said Nancy Bush, banking analyst at Georgia-based NAB Research. “They need to be very careful.”

Bob Hammer, the veteran credit-card consultant, said: “Times are pretty good right now, but it’s questionable how long it’s going to last”.

Comment by azdude
2016-08-01 05:03:31

we are near the end of the credit cycle. Defaults loom!

Comment by rms
2016-08-01 06:48:56

“Defaults loom!”

BS… fiction pedaling, yanks honor their debts in full. :)

Comment by Professor Bear
2016-07-31 20:53:33

Crude just keeps on a craterin’, and I’m loving my affordable gasoline!

World Africa
Libya Preparing to Export More Oil After Deal Unblocks Ports
July 31, 2016 6:05 p.m. ET

Libya’s state-controlled National Oil Co. said it was taking steps to restart exports from three blocked oil ports after the government reached a deal with local guards that had blocked the facilities during a pay dispute.

The deal could help revive Libya’s sagging oil exports, which have been curtailed as various factions fight for control of this North African nation.

Higher production from Libya would add more oil to a global glut that has seen prices drop by more than half since mid-2014. After a recent oil-price rally, prices have again sagged due to resurgent production in Africa and the Middle East.

Markets | Sun Jul 31, 2016 9:55pm EDT
Oil dips as global supplies rise, fresh concerns over Asian economies
SINGAPORE | By Henning Gloystein
A gas station attendant pumps fuel into a customer’s car at PetroChina’s petrol station in Beijing, China, March 21, 2016.
Reuters/Kim Kyung-Hoon

Oil prices started August trading with fresh falls on Monday after several bearish reports, including rising output from OPEC, a rise in U.S. drilling and weak economic data from Asia.

Brent crude futures were trading at $43.46 per barrel at 0126 GMT (9:26 p.m. ET on Sunday), down 7 cents from their last close in July, when they already lost 12 percent over the month.

U.S. West Texas intermediate futures were trading at 41.58 per barrel, down 2 cents from July’s last close. WTI shed 13 percent of value in July.

Overproduction of crude and a wave of refined products were the main factors weighing on oil.

“Last week’s crude build in the U.S. and the return of production in both Canada and Nigeria was a rude awakening that rebalancing (of oil markets) is probably further away than the market thought,” Singapore Exchange (SGX) said on Monday.

“Additionally, gasoline – which the majority of respondents to the SGX survey at the end of last year predicted would drive the oil complex this year – is now awash with stocks… On the paper side, some of the long positions amassed since the start of the year took profit and the net shorts are building.”

Oil output from the Organization of the Petroleum Exporting Countries (OPEC) is likely in July to have reached its highest in recent history, at 33.41 million barrels per day (bpd) in July from a revised 33.31 million bpd in June, a Reuters survey found on Friday.

In OPEC-member Libya, the state oil company said on Sunday it welcomed the reopening of blockaded oil ports following a deal between the U.N.-backed government and an armed force, saying it would begin work to restart disrupted exports soon.

In the United States, drillers last week added oil rigs for a fifth consecutive week as part of the biggest monthly rig count increase in over two years, Baker Hughes Inc said on Friday, adding three oil rigs to a total of 374, compared with 664 a year ago.

Just as oil supplies were rise, new economic concerns arose.

China’s manufacturing activity unexpectedly shrank in July, with the official Purchasing Managers’ Index (PMI) standing at 49.9 compared with 50 in June, putting it just below the 50-point mark that separates growth from contraction.

In South Korea, July exports fell at the fastest pace in three months, data showed on Monday, far worse than expectations.

Exports fell 10.2 percent on-year to $41.05 billion in July, their biggest fall since April this year.

Comment by Professor Bear
2016-07-31 22:29:36

It sux to have millions of gallons of crude stored in tankers at sea while prices on land are cratering back into bear market territory!

Supertankers turn UK into centre of global oil glut
Weak demand from refineries prompts traders to store North Sea oil on vessels
July 28, 2016
by: David Sheppard and Neil Hume

The UK has become the temporary centre of the global oil glut as a lull in demand from refineries has led traders to store crude on ships off the coast.

As much as 14m barrels of North Sea crude — the equivalent of more than two weeks of UK production — have been anchored in giant supertankers off Southwold, the Firth of Forth and Cornwall in recent weeks.

While stocks of crude oil have largely been declining elsewhere in the world the flotilla of storage vessels off the UK illustrates how the process of bringing oil supply and demand back into balance will be far from smooth, with pockets of regional weakness emerging.

Since hitting a high for the year above $50 a barrel in June crude prices have fallen by almost 20 per cent, slipping towards $40 a barrel and putting more pressure on oil companies and Opec producers that hoped the worst of the two-year price crash was over.

Most of the oil is on board tankers that have recently lifted North Sea crude, according to satellite ship tracking information and trading sources. The grades of crude they are carrying all help physically underpin the Brent futures contract, the world’s oil benchmark.

One supertanker, the Maran Thetis, picked up a cargo of crude at the UK’s Hound Point terminal in the Firth of Forth this week, the main loading point for Forties — the biggest single grade of the physical cargoes that can be delivered through Brent futures.

But instead of sailing to an oil refinery the Very Large Crude Carrier (VLCC), which carries at least 2m barrels of oil, has been anchored about two kilometres offshore from the famous Muirfield golf course in East Lothian, which has hosted the Open Championship.

Another fully loaded VLCC, the Gener8 Ulysses, is about 20 miles east in the North Sea where it has circled for the past week.

Further south, a small flotilla of oil tankers, including at least two VLCCs, have dropped anchor 10 miles off the Suffolk seaside town of Southwold. They are sitting in one of the few offshore berths in the North Sea where they are allowed to transfer oil from one tanker to another.

Traders said the oil was being stored for a variety of reasons, but most link back to signs that the market remains heavily oversupplied.

Refineries in Europe have been slowing production after turning too much cheap crude into gasoline and diesel earlier this year, essentially spreading the crude glut into the refined product market.

“We are facing more run cuts in Europe as products are oversupplied,” one senior trader said.

In Asia, refiners have started using more oil stored locally, pulling crude out of onshore and offshore storage according to analysts. That has reduced the profitability of sending oil all the way from the North Sea.

Others say a drop in chartering rates for VLCCs has made it profitable to store the oil on ships in north-west Europe, at least in the short term.

Day rates for hiring VLCCs have fallen since the first quarter as demand has slowed and as more new tankers are expected to enter the global fleet.

“We have lots of ships coming to market just as demand growth is slowing,” said Stavroula Betsakou, head of tanker research at Howe Robinson Partners.

In 2009, the last time floating storage was a major feature of the oil market after demand collapsed during the financial crisis, the Daily Mail newspaper decried the practice as the work of ‘Sharks off the British coast’.

Comment by Larry Littlefield
2016-08-01 04:15:50

“We see a classic housing bubble in London and Brexit as the trigger for the correction.”

Exactly. Every overpaid CEO in the U.S. seems to be giving Brexit as the excuse for lower earnings. There is always some “reason” why asset prices are falling, a reason that is used as an excuse.

The real reason is that asset prices are too high to begin with. And all the smart money knows this, but can’t resist the speculative ride. They are all waiting for the dog whistle to get out, except for those with the fortitude to get out early and leave money on the table.

Comment by dandroidz
2016-08-01 04:39:31

Everytime I tell someone personally not to buy in this market and list good reasons not to, they look at me in disbelief and cite a story of a friend who bought in 201X and their house is now worth +$XXXXX more.

Then when you tell someone how houses historically only appreciate approx. 1%, they think you’re a liar and cite how their home was bought for $75,000 and now, 25 yrs later, is worth $250,000. I tell them, subtract upgrades, taxes, maintenance, etc and they’ll still say they came out on top. Beyond frustrating, but I suppose that’s the same for a lot of HBBs…

Comment by Professor Bear
2016-08-01 07:31:41

“I tell them, subtract upgrades, taxes, maintenance, etc and they’ll still say they came out on top.”

Don’t forget to tell them to adjust for inflation:

Date CPI for All Urban Consumers
June 1991 136.000
June 2016 239.927

Decrease in the value of a dollar due to inflation:

(136.000/239.927 - 1) X 100% = -43.3%.

Comment by aNYCdj
2016-08-01 05:39:02

I Learned More at McDonald’s Than at College


Comment by Raymond K Hessel
2016-08-01 05:51:18

In The Hamptons, the plutocrats who have been the sole beneficiaries of hope n’ change and the peasants who serve them have starkly different views on the election, with the oligarchs naturally backing their creature Hillary.


Comment by Raymond K Hessel
2016-08-01 05:53:38

DB assures us that all is well. So did Bear Stearns and Lehman before they cratered.


Comment by Raymond K Hessel
2016-08-01 05:55:21

Meanwhile, amidst the Eurozone “recovery,” the bank bailouts continue.


Comment by Raymond K Hessel
Comment by rms
2016-08-01 13:11:27

There’s a reason he’s called, Slick.

Comment by Raymond K Hessel
Comment by Raymond K Hessel
Comment by Raymond K Hessel
2016-08-01 06:12:00

Once investors finally understand that Yellen intends to print away all government and Wall Street debt, the stampede into precious metals is going to be epic.


Comment by Raymond K Hessel
2016-08-01 06:18:19

Hillary is now claiming, for the benefit of morons, that she doesn’t support TPP. Sorry, Pantsuited One, your record indicates otherwise.


Comment by phony scandals
2016-08-01 06:42:24

Hillary has a problem with pseudologia fantastica also known as mythomania which was first described in medical literature in 1891 by Anton Delbrueck.

Pathological lying
From Wikipedia

Defining characteristics of pathological lying include:

The stories told are usually dazzling or fantastical, but never breach the limits of plausibility, which is key to the pathological liar’s tactic. The tales are not a manifestation of delusion or some broader type of psychosis; upon confrontation, the teller can admit them to be untrue, even if unwillingly.

The fabricative tendency is chronic; it is not provoked by the immediate situation or social pressure so much as it is an innate trait of the personality. There is some element of dyscontrol present.

A definitely internal, not an external, motive for the behavior can be discerned clinically: e.g., long-lasting extortion or habitual spousal battery might cause a person to lie repeatedly, without the lying being a pathological symptom.[2]

The stories told tend toward presenting the liar favorably. The liar “decorates their own person”[3] by telling stories that present them as the hero or the victim. For example, the person might be presented as being fantastically brave, as knowing or being related to many famous people, or as having great power, position, or wealth.

Pathological lying may also present as false memory syndrome, where the sufferer genuinely believes that fictitious (imagined) events have taken place. The sufferer may believe that he or she has accomplished superhuman feats or awe-inspiring acts of altruism and love — or has committed equally grandiose acts of diabolical evil, for which the sufferer must atone or already has atoned in her/his fantasies.

Comment by phony scandals
2016-08-01 07:26:25

It is amazing how the MSM treats 2 different speakers from 2 conventions and the candidates they were talking about.

Clinton: I am Not Responsible For What People Do or Do … - YouTube
https://www.youtube.com/watch?v=ZWjefxHGmEU - 293k - Cached - Similar pages
1 day ago .

Comment by Professor Bear
2016-08-01 07:37:39

It looks to me like America will have to worry about a lotta lion ahead no matter who gets elected this year.

The lies Trump told this week: a Russian love-in and conspiracy theories
The Democratic convention didn’t stop Donald Trump from weighing in on everything from Putin to the JFK assassination. So what was true?

Comment by Sean
2016-08-01 06:38:33


A great cartoon about the housing prices and renting from a New Zealand artist. Pretty much sums up my dinners with my parents and in laws.

Comment by rms
2016-08-01 06:54:58

Yep… it global alright. Thanks!

Comment by Raymond K Hessel
2016-08-01 06:45:17

Paging Sean Penn, paging Danny Glover, paging Michael Moore…the Comrades of Proven Worth in the corrupt kleptocracy of Veneuzuela, which you touted as a socialist paradise, request that you report to work for unpaid labor as their “paradise” nears collapse. (Watch and learn, Democrats. This is the inevitable fate of all collectivist kleptocracies.)


The Marxist “paradise” once worshipped by such Hollywood naifs as Sean Penn, Oliver Stone, Danny Glover and Michael Moore is now forcing its citizens to work on neglected farms.

The celebs haven’t been singing the praises of Venezuela quite as loudly as they did when Hugo Chavez led the country until his death in 2013. For good reason: Under his handpicked successor, Nicolas Maduro, things have grown far worse.

Home to the world’s worst economy, Venezuela is beset by severe food shortages, riots in the streets and hyperinflation that’s closing in on 700 percent. World oil prices have plummeted — and Venezuela relies on oil for 95 percent of its income.

Agriculture was neglected as Chavez and Maduro placed all their economic chips on crude and elected to import goods from abroad while spending on social programs that rallied the poor behind the government.
But now Venezuela has no cash to import food or other essentials. And because Chavez nationalized so much industry, it has no private sector to compensate.

Comment by Raymond K Hessel
2016-08-01 06:48:23

Maybe one fine day we’ll return to being a republic under the rule of law instead of a plutocracy, and Hillary will finally have to answer for her serial influence-peddling.


Comment by Raymond K Hessel
2016-08-01 06:51:05

The warnings of a systemic collapse of the Fed’s financial house of cards are starting to come fast and furious.


Comment by Raymond K Hessel
Comment by Raymond K Hessel
2016-08-01 06:54:02

Even pundits in the Oligopoly-owned media are starting to sound the alarm on QE-to-Infinity, while policymakers and the sheeple who elected them slumber on.


Comment by Professor Bear
2016-08-01 07:40:40

Why worry, so long as no catastrophe has yet ensued?

Rest assured that whenever the next financial market meltdown occurs, a large chorus of MSM-annointed financial experts will be heard bleating: “Nobody could have seen it coming!”

Comment by phony scandals
2016-08-01 07:48:11

Report: Hillary Clinton’s Campaign Mgr John Podesta Sat on Board of Company that Bagged $35 Million from Putin-Connected Russian Govt Fund

by Stephen K. Bannon & Peter Schweizer
1 Aug 2016

Hillary Clinton’s campaign chairman John Podesta sat on the board of a small energy company alongside Russian officials that received $35 million from a Putin-connected Russian government fund, a relationship Podesta failed to fully disclose on his federal financial disclosures as required by law.

That’s one of the many revelations from a 56-page report released late Sunday titled “From Russia with Money: Hillary Clinton, the Russian Reset, and Cronyism” by the non-partisan government watchdog group, the Government Accountability Institute (GAI). Breitbart Executive Chairman Stephen K. Bannon holds the same title in GAI and Breitbart News Senior Editor-at-Large Peter Schweizer serves as GAI’s president.

Both the New York Post and the Wall Street Journal ran stories on the newly released report late Sunday evening.

Why Podesta failed to reveal, as required by law on his federal financial disclosures, his membership on the board of this offshore company is presently unknown.

“But the flows of funds from Russia during the ‘reset’ to Podesta-connected entities apparently didn’t end with Joule Energy,” the report states. According to the GAI report, Podesta’s far-left think tank, Center for American Progress (CAP), took in $5.25 million from the Sea Change Foundation between 2010-2013.

Who was funding Sea Change Foundation? According to tax records, Sea Change Foundation at the time was receiving a large infusion of funds from a mysterious Bermuda-based entity called ‘Klein, Ltd.’…Who owns Klein? It is impossible to say exactly, given corporate secrecy laws in Bermuda. But the registered agent and lawyers who set up the offshore entity are tied to a handful of Russian business entities including Troika Dialog, Ltd. Leadership includes Ruben Vardanyan, an ethnic Armenian who is a mega oligarch in Putin’s Russia. Vardanyan also served on the board of Joule Energy with John Podesta.

The FBI and U.S. Army sounded the alarm bells about Skolkovo being a threatening pathway for Russia to accelerate its military technological capabilities. Why Hillary Clinton’s State Dept and her campaign manager were tied up in this raises serious questions that demand answers and transparency.

Comment by Professor Bear
2016-08-01 08:16:47

Putin seems to be increasingly involved in American politics these days.

Opinion: Under President Trump, it’ll be morning in Putin’s America

Published: Aug 1, 2016 5:10 a.m. ET
Americans could live just like the Russians do
By Brett Arends
‘He’s doing a better job than [Barack] Obama,’ Donald Trump says about Russian President Vladimir Putin.

I just can’t wait until Donald Trump becomes president and starts running America the way Vladimir Putin runs Russia.

President Putin “is a better leader than [President Barack] Obama,” Trump told Fox News. “He’s certainly doing a better job than Obama is.”

Go ahead, read that again.

This is going to be terrific. Bring on a Trump victory!

Comment by phony scandals
2016-08-01 13:47:10

“I just can’t wait until Donald Trump becomes president and starts running America the way Vladimir Putin runs Russia.”

Instead of like this?

“Hillary Clinton’s campaign chairman John Podesta sat on the board of a small energy company alongside Russian officials that received $35 million from a Putin-connected Russian government fund, a relationship Podesta failed to fully disclose on his federal financial disclosures as required by law.”

Comment by Big Mac
2016-08-01 10:27:36

I think it’s interesting that all our good friends from all over the internet converge on the HBB to read, learn and study events related to housing.

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