Desperate To Ensure Investments Don’t Lead To Losses
A report from China Daily. “Yao Lisha, 38, lives with her family at a villa in suburban Shanghai, and has invested in Australian properties. Now, she is desperate to ensure her investments do not lead to losses. She runs a trading company with her husband in Shanghai. In 2014, she was persuaded by a friend to buy an 88-square-meter apartment in Brisbane, Queensland. Just 10 percent of the full amount of A$615,000 ($461,954) was down payment plus A$30,000 went towards stamp duty.”
“She took a home loan from a local lender and started repaying interest every month, hoping it would all come good eventually as possession of the flat was expected to be followed by steady rent. She received possesion alright in late 2015, but by then, the local policy had changed, stipulating that overseas homebuyers needed to repay both principal and interest at the same time.”
“She spent more than a month trying to rent out the flat for A$480 per week (that is, A$1,920 per month) while the monthly loan repayment was about A$2,300. Worse, on top of that, the housing complex’s montly maintenance fees was 3,000 yuan ($452). That was not all. The property did not appreciate in value. Now, Yao is thinking of holding it for five to ten more years till resale prices recover. ‘Buying this (Brisbane) apartment was a mistake. I didn’t consider the risk of government policy change and the unexpected slump in the property rental market,’ said Yao.”
“Thankfully for her, another investment Down Under produced a better experience. The A$1.55-million, 160-square-meter penthouse in Sydney she bought in 2014, whose possession she is yet to receive, is faring better in the market already. Now valued around A$1.7 million, it will be ready only in 2018. But Yao has already received a few offers from potential buyers after her real estate agent posted an online classifieds ad. Its value is expected to further increase in the next two years.”
“Yao is keen to sell after receiving possession because a tighter local policy prevents overseas property buyers from taking loans from local banks. She wants to cut her costs and, maybe, even make some profit. She had made the 10 percent down payment and paid A$70,000 towards earnest money deposit. ‘Australian cities like Sydney are worthy of investment but local policies are restricting overseas buyers, especially Chinese,’ said Yao. She has decided not to invest anymore in overseas properties.”
“But not so Su Jianning, 55. In 2013, he bought a 300-square-meter house in Los Angeles County, California, for $750,000. He is confident of making a tidy profit. Since he is not a U.S. permanent resident, he had to make full down payment. Local banks’ home loans were not for overseas buyers. His annual property tax has been $8,500, home insurance premium $1,000 and maintenance expenses $5,000, but the monthly rent of $4,000 covers the expenses.”
“‘The current value is about $800,000 but it is expected to remain there as the market isn’t as good as it was estimated. The value was supposed to double well before by 2018,’ said Su.”
From CBC News in Canada. “After completing her degree at the University of Saskatchewan last spring, Chinese student Jing Li decided to put down permanent roots in Canada. Jing, 29, obtained a work permit, moved to the Vancouver area and made an offer on a townhouse in Langley, B.C., in mid-July. Jing cobbled together a 10 per cent deposit on the $560,000 property by borrowing from her parents in China. She said they in turn borrowed money from friends and family.”
“But last month, 12 days after Jing signed the purchase contract, the B.C. government threw a wrench in Jing’s Canadian dream when it levied a 15 per cent property transfer tax on foreign real estate buyers in the Vancouver area. Jing is not a permanent resident in Canada, so the tax adds $84,000 to the home’s cost, something she’s certain she can’t afford. But if she backs out of the deal, she would lose her deposit of about $56,000. ‘Now, I can’t go forward and also can’t go back.’”
“Her mother cried when Jing called her parents in China to tell them about the tax. They had no more money to lend her. Staying in Canada was Jing’s idea, and now she feels guilty. ‘I think this is my fault,’ she said in halting English. ‘If I don’t want to study, work and live in Canada, this disaster would not happen to my family.’”
‘the tax adds $84,000 to the home’s cost, something she’s certain she can’t afford. But if she backs out of the deal, she would lose her deposit of about $56,000. ‘Now, I can’t go forward and also can’t go back.’
Look on the bright side Jing: it was cheaper than renting.
I guess the Jing is up.
One thing I’ve got to admire the Chinese for, they can get their family and friends to go all in to help one of their own.
How does that work, though? How was she going to pay all those people back? Sell the place and split the appreciation? Or pay them back on a public administrator’s salary?
I told this story on hbb a couple years ago. I bought a late model car off a chinese woman via craigslist. Probably got it 5-8K less than through a dealer. She came out here on a teaching contract which paid her (very high) moving expenses, but missed her daughter (didn’t mention missing her husband or son, lol) back in NY so she broke her contract and wanted to minimize her moving expenses going back.
She was super impulsive (almost killed the deal, she was like a helpless child and a pain to deal with), and in one conversation I mentioned I used to live in SoCal and it turned out she had a condo near where I used to live. WTF, you lived in SoCal I asked? No, she said, she visited and liked it enough to buy a condo. She must have noticed my eyes crossing and said she wasn’t making any money, just covering the mortgage with rent. Feel sorry for the husband, he must feel like a deer in the headlights!
I personally know some very recent stories that would win the HBB Pulitzer. Big time red meat. Multiple financial implosions of DebtDonkeys who are now begging for cash on sites like gofundme.com to make mortgage payments. Long sob stories that clearly show they haven’t learned a thing and was entirely of their own making. No tragedies… Just stupidity and greed. They’re completely deluded.
I tried reading some of the GoFundMe mortgage sob stories in my neck of the woods (Los Angeles)
https://www.gofundme.com/mvc.php?route=search&page=1&term=90001&addterm=mortgage&country=US
TRIED… my eyes were bleeding. Has no one heard of proper spelling, a paragraph or a run-on sentence?!?!?!
“…they can get their family and friends to go all in to help one of their own.”
It’s very noble of family and friends to step up and share real estate investing losses.
“She said she felt entrapped by the government when it announced the tax.
“In my mind, Canada is a democratic and fair country.”
Now she is not so sure.”
Funny, I feel the same way about the US. Turns out, it was all in my mind, too.
If her English is just halting, how did she get a degree from the University of Saskatchewan?
I was wondering about that myself, but maybe they give classes in Chinese?
Or it may be that she reads and writes English better than she speaks it.
Most likely, though, it’s a victim thing, like in the US where some folks who speak English just fine insist on speaking in Spanish to the press and use an interpreter, all for effect.
I had a Korean guy in my engineering classes who spoke almost 0 English. How he got through engineering at a US university is beyond me. I had him in my group once, and he would just nod and smile or say something muttered that no other group member would understand.
“…..I didn’t consider the risk of government policy change…….”
It sounds like Apple trying to get their latest iPhone on the market in China! 🗽🇱🇷
In a way, I feel bad for people like her. Canada whimsically changes the rules and then she is caught holding the bag. And Ying is a bag holder as well. I don’t think it is funny to laugh at people’s financial mistakes. As if those who laugh never made any mistake. Failure is a necessary step toward success and that is not just a cliche. You learn best by past mistakes. I lost a lot of $ in stocks in he early 2000s. I am sure if the haters here now we’re around back then they would laugh. But I learned a lot from those losses and have prospered based on the lessons I learned.
‘I don’t think it is funny to laugh at people’s financial mistakes’
‘the market isn’t as good as it was estimated. The value was supposed to double well before by 2018,’ said Su’
What about the people who’ve been priced out by these greedy bastards? F- em,I say and I’ll laugh all the way to the auction house. Come to think of it, I’ll stick a few bills in my pocket hauling their feng shui crap to the dump before that. And I’ll have a chuckle as I press the red button and watch it slide out of the trailer.
May I have the honor of holding the door open while your guys give their worthless junk the heave-ho into the roll-off?
I always tell em: 15 years to accumulate, 3 hours to the dump. It’s amazing what people leave behind when moving it would take effort.
I’m thankful growing up military that they hired a moving company to schlep your stuff across the country and into the house. Still a PITA, I remember as a kid, helping pack/unpack an entire house of 5 people’s stuff 4-5 times in my childhood.
My own two moves over the last 2 yrs have taught me to downsize downsize downsize. I routinely go through my closet and donate clothes, just bag it and forget it.
‘the market isn’t as good as it was estimated. The value was supposed to double well before by 2018,’ said Su’
“What about the people who’ve been priced out by these greedy bastards? F- em,I say and I’ll laugh all the way to the auction house. Come to think of it, I’ll stick a few bills in my pocket hauling their feng shui crap to the dump before that. And I’ll have a chuckle as I press the red button and watch it slide out of the trailer.”
Lol bingo! Greedy uneducated gamblers playing with big money and losing. What’s not to like.
“I don’t think it is funny to laugh at people’s financial mistakes.”
I think it’s hilarious. Honestly…… downright knee slapping hilarious. The greater the personal financial damage, the funnier it is.
That’s the honest truth.
People are pissed when speculators price them out of the basic staples of living - food and shelter. Of course you have to conflate that with the attacks on you, thanks to unusually thin skin which seems to be common amongst many of the chronic posters.
Ben should get out the worlds tiniest violin for some of these complaints. Made out of - you guessed it - yucca bravifola, aka joshua tree. Unmatched tone, you can almost feel it!
Let Me Play You A Sad Song On The Worlds Smallest Violin
Everyone of us is a speculator, hoping to get the advantage over the next guy at some degree. Whether it is the best orange in the produce department or the last container of your favorite seasoning by the meat department or whatever. Scarcity is everywhere. You should not gloat about someone else’s losses because everyday we all compromise to some degree and get the best of what is currently available.
Whenever you invest in something you hope the price of it drops to a point where you think the price is reasonable, but you laugh at those who bought the thing at a high price?
A man does not even think of the losses of strangers, let alone welcome it.
A twisted sadist does.
‘Everyone of us is a speculator…A man does not even think of the losses of strangers, let alone welcome it’
I’m a vulture. Neither a bull nor a bear. I welcome the losses of strangers like these. Hear ye hear ye, greedy foreign bastards, we will feast on your financial carcasses one by one. And let ye local speculators take note; the end is nigh.
“Hear ye hear ye, greedy foreign bastards, we will feast on your financial carcasses one by one.”
I’m with you, bro’. I can still remember the agony of moving out the single (American) mom next door from her rental so the greedy bastard speculator investor could flip it to the greater fool Chinese peops just off the boat with fists full of borrowed cash to overpay the price of the home by $50K above comps.
Now I hear the Chinese neighbor’s wife yelling at him on a fairly regular basis. I have to guess the real estate investing losses are taking their toll on their peace of mind.
“A man does not even think of the losses of strangers…”
They are not innocent strangers who bid up the price of the necessities of others for profit with borrowed money. Their downfall is a matter of poetic justice, at which those who have been inconvenienced by their greed can always have a hearty laugh.
‘She spent more than a month trying to rent out the flat for A$480 per week (that is, A$1,920 per month) while the monthly loan repayment was about A$2,300. Worse, on top of that, the housing complex’s montly maintenance fees was 3,000 yuan ($452). That was not all. The property did not appreciate in value. Now, Yao is thinking of holding it for five to ten more years till resale prices recover. ‘Buying this (Brisbane) apartment was a mistake’
I picked out this one with the colors just for you Yao:
“The property did not appreciate in value.”
Ahh the old rusty lie.
Houses depreciate. Always have, always will.
It takes more dollars to buy a shanty these days.
Stay out of the way of collapsing housing or you will be crushed.
I picked out this one with the colors just for you Yao:
LOL! I’m wiping away tears this morning, Ben. Priceless…
“holding it for five to ten more years…”
$5K in HOA
$4K in land tax
$5K below payment required when it’s not vacant
$10K maintenance
each and every year. Then there is the drop in that $600K price tag when the bubble pops.
Think of it as a disciplined savings program.
Alameda(Portland), OR Housing Prices Crater 15% YoY On Skyrocketing Housing Inventory
http://www.zillow.com/alameda-portland-or/home-values/
“The median home value in Alameda is $713,100. Alameda home values have gone up 16.1% over the past year and Zillow predicts they will rise 6.3% within the next year.”
Your cherry pickin’ is eluding you! HA!
Data jinglefraud. Stick with the data.
Wilsonville, OR Housing Prices Crater 6% YoY
http://www.zillow.com/wilsonville-or/home-values/
Sacramento California Housing Prices Rising Steadily. Inventory Down YoY
http://www.zillow.com/sacramento-county-ca/home-values/
I get this picture of you checking it every morning, fingers crossed, saying, “please, please!”
I have never checked the Sacramento County Zillow site before. I just did it this morning to compare it to HA’s cherry picking post about a tiny sub-market in Portland OR.
I do check the market all the time in other ways. I follow Craigslist rental listings in areas where I own houses. I check the MLS listings to see what is happening with listings and specific properties. It is an important business plan in my life. I like to know what is going on.
I shared on the HBB in 2011 that I bought a couple of foreclosed lots from two banks for about $50k each. I believe HA said I was a fool and would lose my @ss. I sold one last month and the other is in contract to close this month: The sales prices are over $200,000 each. I think it is a good time to sell, based on market data and personal goals.
I suppose crossing my fingers and being lucky may be one part of the formula. It’s always good to be lucky. I believe analysis, planning, execution and strong financial reserves are the most important parts. The HBB is a big part of my data input, along with MLS, Zillow, the Fed, DOW, bonds, etc.
That, your reputation and a dollar will get you a cup of coffee.
Nobody told this china lady to buy property. She should’ve rented a room in somebody and split rent.
I hope they old get burned and never try again. LMAO
crash and burn jingle li
It’s all about the grobarism.
Yeah but be careful about what you wish for. You could make a major mistake yourself in the future. We all do. You want us to laug in advance?
Give it a rest, Bill. I’ve made plenty of mistakes in my life and probably will continue to do so.
BTW, you haven’t exactly demonstrated the milk of human kindness on many an occasion here on the blog, especially when it comes to your family members.
I am still waiting for you to say you will take in my 40 year old nephew who worked one year in his life and dropped out of college at 19.
Hey, you’re the one demanding the milk of human kindness. And he’s your relative, so you take him in.
It is difficult to help someone without becoming an enabler.
+infinity, rms! It’s an incredibly fine line…
“Yeah but be careful about what you wish for. You could make a major mistake yourself in the future. We all do. You want us to laug in advance?”
Sounds like a little ‘fear’ there when it comes to making decisions.?
The reality is the world is not fair and everyone is not equal. When people make very bad decisions out of stupidity and greed that hurt others, empathy takes a back seat!!!
NO. I have made many mistakes… I have learned a LOT.
I really hope a lot of china people get burned HARD. I hope some they tell their stories to other people so that they stop this non-sense of buying American property. American tax payers and children of American taxpayers are hurting because of this non-sense.
Looks like Chung li will have a tragedy in the family… they owe money to other family members with little chance of paying it back… that’s gonna start a feud.
Do u think the FED will hit the numbers to get the clintons back in the white house?
They’ll have to hit the embalming fluid to accomplish that.
Looks like Hillary’s goin’ down, on two fronts: health and the triple-threat FBI-US attorney invests in DC, NY and Little Rock. Tim Kaine meeting with Son of Soros, Secret Service leaking like crazy and Trump campaign holding off on anti-Hillary ads.
That last is driving the local Florida TV stations nutz. Can’t figure out why they’re not gettin’ any love from the Trump campaign. The local Fox political analyst was moaning about it this evening on the newz.
For anyone who’s interested, live stream of Trump rally in West Bend, Wisconsin. The chat on the right travels so fast, can’t even hardly read what people are saying.
https://www.youtube.com/watch?v=CRZqz3e5Pr8&app=desktop
That’s some stones right there, holding a rally 40 miles north of Milwaukee. Playing chicken with Soros, whew.
Go, Rudy! Calls the Clinton Foundation a racketeering enterprise.
(And as he says, he knows something about racketeering, lol)
Did Rudy just call Hillary the “War and Order” candidate? Jeebus.
Teleprompter tonite. Miller must’ve been working 48 hours solid on this speech, and it’s a doozie. Whew!
Not to suggest that the Fed has more than a microgram of credibility left in its announced liftoff plan, but it seems like they need a rate hike soon to restore the belief that interest rates will someday, somehow normalize. But doing it before Election Day could upend the political apple cart.
Does that make December the logical time?
“Realtor Accused Of Taking Prescription Pills From EM Homes”
http://www.qconline.com/news/crime/realtor-accused-of-taking-prescription-pills-from-em-homes/article_0975071d-f642-55b7-9e5b-3c66f67e6178.html
“Police said they have notified the area’s real estate licensing board and the Illinois Department of Financial and Professional Regulation, where an internal investigation will determine the fate of her real estate license.”
I guess she better bone up on how to say “Fries with that?” Or, “Paper, or plastic?”
All kidding aside, sucks to see so many people desperate for pills and such these days.
http://www.palmbeachpost.com/news/news/crime-law/family-member-ids-two-people-found-dead-at-tequest/nsGgj/ - 191k -
That is one of the weirdest incidents I’ve ever read about. There’s probably a lot of missing information here, but the way it reads, a young man goes out for some casual dining with his family, gets ticked off with the service at the restaurant, storms out, starts walking to his father’s house and stops along the way to stab a couple of people he doesn’t even know, a husband and wife sitting out at the entrance to their garage, enjoying the evening air, plus a neighbor who tried to intervene, totally at random.
Then he starts biting the face off one of the people he’s stabbed, and the police can’t get him to disengage despite a taser and a police dog. All the while he’s grunting and growling and hanging on like some animal determined to eat its kill.
They get him to a hospital and the guy goes from superhuman strength to his physical condition worsening, close to death, apparently. Meanwhile, the tox screens turn up nothing, not even the more exotic substances like bath salts or flakka. Bizarre.
It’s like the opening chapter of a Stephen King or Dean Koontz novel.
Only in Florida.
Guy was a wrestler, I’m thinking it had something to do with steroids gone wrong. But you’d think it would have shown up in the tox screens.
Too much tv. Tox screens are only set up for the most abused drugs. Individual drugs take a lot more time consuming test methods. What is the medium or matrix of choice to test? Blood, urine, breath, hair, saliva, hair, tissue, fecal matter? How much material to be tested depends on drug level, etc?
Yah, they did mention this, that none of the usual suspects had shown up, and it would take longer to get results for bath salts or flakka, but they also said his body temperature was too low for those, at first glance.
I’m going with steroids or hypno gone wrong.
Bath salts. Why? Because the only other story I have ever read about someone trying to chew the face off of someone else—in that case, it was apparently bath salts. Interestingly, that was also in FL…
Interestingly, that was also in FL…
They shared an interesting point on this on the radio this morning — florida is one of the few (only?) states that have public police records. Which is why we see so many stories of crazy crap going on in Florida.
The same crap probably goes on elsewhere, but since the records aren’t public, we don’t know.
That Duffy’s is about a mile from Casa phony.
It is one strange story, it will be interesting to see how it fills in.
If drugs don’t turn up, someone needs to check out if anyone at FSU is doing weird hypnosis experiments on students. Happened in Sarasota:
http://www.heraldtribune.com/article/20151006/ARTICLE/151009766
Teachers can afford to rent in San Francisco, as long as there’s four of them sharing the same house.
http://wolfstreet.com/2016/08/16/housing-crisis-in-san-francisco-strangles-demand/
Are “the markets” foolish enough to believe that Yellen the Felon will ever raise rates without being forced to by the bond market?
http://www.bloomberg.com/news/articles/2016-08-16/dudley-says-september-hike-is-possible-markets-too-complacent
The Fed has lost its ability to talk the market up or down. The name of the game is to force savers to pull money from their accounts and redistribute the money or put it in the market so it can be had on a moments notice. You can only take that approach by keeping interest down or taking them down another notch.
Amherst, NH Housing Prices Crater 9% On Plunging Housing Demand
http://www.zillow.com/amherst-nh/home-values/
I love me some Plunging Housing Demand posts.
Hope n’ change comes to Cisco.
http://www.crn.com/news/networking/300081750/sources-massive-layoffs-coming-at-cisco.htm
Cisco shedding 14,000 workers. This is a positive. The stock will get a bounce and the CEO and executives will be generously rewarded for increasing the all-important corporate bottom line and “shareholder value.” Anyone who says this is negative is peddling fiction.
http://www.reuters.com/article/us-cisco-systems-layoffs-idUSKCN10S05D
My favorite line is:
The current value is about $800,000 but it is expected to remain there as the market isn’t as good as it was estimated. The value was supposed to double well before by 2018,’ said Su.”
($750K to $1,500 K)
He buys in 2013 and expects it to double by 2018?? (
Sounds reasonable to me.
By then a can of beans will probably retail at Barter Town for $50,000 in FedBux or a single pre-1964 silver quarter.
Global central banks are dumping US debt at a furious pace. Have they belatedly figured out that it’s folly to hold on to Treasuries when Yellen the Felon is going to print away all US government and Wall Street debts and liabilities?
http://money.cnn.com/2016/08/16/news/economy/central-banks-debt-dumping/index.html
According to the article the sellers are selling because they need cash.
US Housing Demand Plummets To 20 Year Low
http://1.bp.blogspot.com/-0q8fIAsczFk/VUANHEhSbnI/AAAAAAAAjRs/oANwXOUviGw/s1600/MBAApr292015.PNG
I must say… as much as I don’t give a **** about any Chinese investor in Canada, Australia, here, or anywhere else, they should have grandfathered pending transactions when it came to the new 15% tax. For me, it’s just obvious on the face of it.
“… they should have grandfathered pending transactions when it came to the new 15% tax.”
Why should any government put the interests of foreigners above its own citizens? It makes me very unhappy when my own government does this, and I am guessing there are lots and lots of Trump train passengers who agree!
When I read about the 15% tax story, I think it does apply to sales that are pending.
Dandroidz,
It doesn’t. Look into it. That’s why they’re already talking about lawsuits galore.
Professor,
The new tax potentially hurts locals on pending deals. Let’s say Sally has lived in Vancouver her whole life and is looking to sell and downsize out in the burbs somewhere. Some foreigner has agreed to buy her house at a ridiculous $1.5M. She went on the market, there was a negotiation, an inspection, etc. All parties have finally agreed.
But now suddenly, the buyer is pulling out and the price of her place is going to sink significantly.
That’s a tough scenario for her and I sincerely sympathize because it happened so suddenly. Now, can she keep the earnest money? Yeah, but will it be any kind of offset of the price drop she might experience? It may not be.
Even if you grandfather in pending deals, the 15% tax would still achieve its goal going forward, in my opinion.
Speaking of losses, who is the loser now?
What’s scorched earth in the political domain? Overnight, the situation just became a lot more interesting.
Oh, boy, Clinton News Network. Yesterday we get the globalist rags, today it’s Rolling Stone and CNN. Gotta love those URL shorteners, too. What’s the logic there?
Who’s the Goldman Sachs candidate now? I find it harder by the day to keep score.
“Donald Trump’s hiring of Breitbart News executive chairman Steve Bannon is a signal that nothing is off-limits between now and November 8. Bannon, a former Navy officer and Goldman Sachs investment banker, …”
Un-kay…
Michael Moore, I guess. Especially since Rolling Stone, which I used to read religiously back in the day, thoroughly discredited itself with that campus rape hoax story.
Shame about Michael Moore. I guess he’s got a form of Stockholm Syndrome. I liked Roger and Me, and Fahrenheit 9/11. I think he got a raw deal from all the Bush bots and war mongers, he was viciously and constantly attacked. I think it destroyed him and he became a whining mountain. Must be a relief to have someone else be a target. Poor guy.
US debt “held by the people” tops $14,000,000,000,000; up 122% under Obama.
http://cnsnews.com/news/article/terence-p-jeffrey/us-debt-held-public-tops-14000000000000
Jacob Lew
Right on. What a POS he is, second only to Hank the Skank Paulson.
I’ve seen it mentioned a few times on previous articles, so the Chinese have been buying overseas properties with front loaded interest loans? Wasn’t that part of the epidemic here in the US leading up to 2005-2008? These people experience a “light” loan payment until the first few yrs and then principal kicks in and jacks the payment up?
0 sympathy for these parasites. On top of that she has a A$1.5mil apt? Ridiculous. I mean from a business/investor standpoint, hey, more power to them when they are just playing the game setup for them by financial/Govt policies, but still.
Hope n’ change comes to Cisco.
http://wolfstreet.com/2016/08/17/cisco-to-lay-off-14000-20-precent-workforce-no-growth-no-problem-stock-9-year-high/
how come all these companies are losing their @ss and they still call this a recovery?
I bet the stock will skyrocket, because, science.
Time for a huge buyback announcement to kick the shorts in the nuts again.
Heard it on Bloomberg Radio this morning: Krugman says monetary policy “pretty ineffective”:
“What does the Federal Reserve know when it comes to monetary policy and the economic outcome of a low growth, low rate environment?” Bloomberg TV’s Scarlet Fu asked Krugman.
“Not much,” he replied. “Except that I think there’s an accumulation of evidence that monetary policy is pretty ineffective.”
Although the agency can raise rates, lower rates and even set negative interest rates, Krugman says it doesn’t actually do very much.
https://www.thestreet.com/story/13677112/1/economist-paul-krugman-tells-bloomberg-tv-the-fed-should-raise-inflation-rates.html
They call it trickle down. It works like this. Rich people buy stocks on the signal to go all in. Then the rich are suppose to hire folks to do actual work with their new found riches. Problem is the rich have found it way easier to gamble in the casino then take on a big projects that require labor from the the people who actually have to produce.
Jeebus. Is California burning?
Oh, they can figure out how to bomb the heck out of people all over the world, they can invent newer, better and more vicious weapons, they can come up with ways to track and spy on people, they can rig the markets to favor the scum of the earth, they can build the XL pipeline, all right. But they can’t figure out how to transfer water from inundated places like Louisiana to the dry gulch of California, no siree. Because that might be a good thing to do and might benefit people. Can’t have that,now, can we?