The Darling Of The Investment Community
The Star Tribune reports from Minnesota. “Several years into an apartment construction boom, it’s still a landlord’s market across the Twin Cities metro. Rents are on the rise across the region despite the appearance of rental concessions in some parts of the metro that are showing signs of at least temporary saturation. Since 2010 more than 16,000 new units have come to market, and while construction activity this year has slowed, the lull isn’t expected to last — another boomlet is on its way. ‘This is a cyclical business and we tend to build until we overbuild, but it’s difficult to know when we’ll hit the end of the cycle,’ said Gina Dingman, president of NAI Everest.”
“Jennifer Gordon, senior vice president for the Excelsior Group, said that market surveys are showing that an increasing number of properties are offering concessions, but she’s still seeing healthy rent growth over one to two years ago. Dingman said right now some of the most vulnerable areas are parts of Edina, St. Louis Park and Golden Valley where several projects are expected to open at around the same time. The Uptown neighborhood in Minneapolis, which saw 1,200 units come to market in one quarter, has already experienced some weakness.”
“Despite those concerns, Dingman said the apartment market in the Twin Cities is considered far more stable than many others, including Denver, where upward of 10,000 units are being built every year. That’s why the Twin Cities continues to be the darling of the investment community. Abe Appert, senior vice president for CBRE, said the region is on track to break another apartment sales record.”
The Marin Independent Journal in California. “The red-hot rental market in Marin is cooling, influenced by a slowdown in San Francisco, according to research reports and local observers. ‘We are noticing a slowdown in the rental market here in Marin,’ said Matt Prandi Borries, vice president of San Rafael-based Prandi Property Management, a 33-year-old property management firm that handles 450 units in Marin. ‘We usually are about six months behind (San Francisco’s) trends. My colleagues in San Francisco who work closely in the rental market let me know that they noticed a slowdown in April, which we are now seeing here in Marin. There are certainly still prospective tenants actively looking for housing but the supply is starting to outweigh the demand with a lot of rental inventory still available.’”
The Pacific Business News in Hawaii. “It cost less to rent one- and two-bedroom apartments in Honolulu during August than it did in July, according to the apartment-rental website Zumper. The median rent for a one-bedroom unit during August was $1,760, down 1.7 percent from July and a 5.9 percent drop from August 2015. For a two-bedroom apartment, the median rent was $2,430 in August, down 3.6 percent from July but 1.7 percent more than in August of last year.”
The Roanoke Times in Virginia. “A long-time local builder known for student housing plans to bring a mixed apartment and commercial space development to a property near Radford University. Despite the developers’ beliefs that Radford has an untapped rental housing market, their work hasn’t been free of doubters. Before city council gave the final OK on Price Williams’ special use permit, Councilman Keith Marshall raised concerns during a meeting last month about the possibility that developers are overbuilding the student rental housing market.”
“‘My concern in this particular case are the three to four levels of what seems to be student housing built on top of the one level of business development,’ Marshall wrote in an email. ‘We are hearing of an overall drop of enrollment at Radford University and increasingly there is a concern that the student housing market has been overbuilt.’”
The Dickenson Press in North Dakota. “A four-story building meant to provide off-campus housing to Dickinson State University students is sitting empty this semester, and neighborhood residents are trying to keep it that way. Blue Hawk Square, located two blocks south of the university on West Villard Street, became another casualty of the DSU Foundation’s dissolution in June when Dacotah Bank acquired the property from a deed in lieu of foreclosure.”
“Now, the bank is working with DSU and the city to get students back in the 44-unit apartment building as early as the spring semester. However, residents of the neighborhood around Blue Hawk Square are urging city officials to deny the bank a variance that would allow students to live in the building and park on campus, thereby keeping it from obtaining a certificate of occupancy. ‘That building ruined this neighborhood,’ said Lloyd Lindbo, who lives across the street from the building.”
Houston Public Media in Texas. “A report by Dodge Data and Analytics finds construction of new homes – both apartments and single-family homes – is down by 16 percent in the first seven months of 2016 compared to last year. Nonresidential construction is also down, by 23 percent. Bill Gilmer, who directs the Institute for Regional Forecasting at the University of Houston, is not the least surprised.”
“‘It recognizes that the apartment market is seriously overbuilt,’ he said. ‘And that we really don’t need to be building any more apartments here in Houston right now.’”
“A recent report by RentCafe found Greater Houston is on track to open 26,000 new apartments this year, more than in any other region.”
‘‘This is a cyclical business and we tend to build until we overbuild, but it’s difficult to know when we’ll hit the end of the cycle,’ said Gina Dingman, president of NAI Everest…Jennifer Gordon, senior vice president for the Excelsior Group, said that market surveys are showing that an increasing number of properties are offering concessions, but she’s still seeing healthy rent growth over one to two years ago. Dingman said right now some of the most vulnerable areas are parts of Edina, St. Louis Park and Golden Valley where several projects are expected to open at around the same time.’
I know some of you haven’t followed this very close but Minneapolis has been a huge target for these big investment firms with luxury apartments. Many billions are in and billions to come.
What happens when M-tee luxury apartments outnumber lower end apartments- those that lack a couple of amenities such as dishwasher of W/D in unit?
There have to be high heating costs to keeping the pipes in empty luxury apartments ice free during the Minnesota winter.
One evolving feature of the mania since the beginning of our discussion has been it’s spread inland. Initially this was written off as due to hot coastal markets becoming “a bit frothy” because everyone wanted to live there. Minnesota was not where everyone wanted to live…in fact, Garrison Keillor had a running joke about Minnesotans who secretly desired to move away to California. The big price run-ups, bidding wars and construction booms one saw in vacation destinations like California or Hawaii were not in evidence in the northern Midwest.
Fast forward a decade: The Housing Bubble is now ubiquitous, as demonstrated by a luxury apartment building craze that has even spread to cities like Minneapolis where people who can’t tolerate sub-zero temperatures don’t want to live.
It’s lost in most recollections, but the big subprime lenders actually got started in Minnesota and then move to Orange County, CA. The first state to have widely publicized subprime abuses and then laws to restrict them was Ohio followed closely by Michigan.
They need to build ultra luxury apartment towers in Yuma, Arizona.
stale, depressing apartments!
Pay your inflation tax!
‘the apartment market in the Twin Cities is considered far more stable than many others, including Denver, where upward of 10,000 units are being built every year. That’s why the Twin Cities continues to be the darling of the investment community. Abe Appert, senior vice president for CBRE, said the region is on track to break another apartment sales record.’
It’s the funding that’s driving this, coupled with the FHFA backing. Yet another market distortion caused by artificially low interest rates.
‘we tend to build until we overbuild, but it’s difficult to know when we’ll hit the end of the cycle’
Meaning we are going to pour pension money into the ground until it goes poof.
‘the supply is starting to outweigh the demand with a lot of rental inventory still available’
‘the apartment market is seriously overbuilt,’ he said. ‘And that we really don’t need to be building any more apartments here in Houston right now.’…A recent report by RentCafe found Greater Houston is on track to open 26,000 new apartments this year’
And what’s being built is not what the market needs:
‘An innovative housing concept will soon come to McKinney (Texas). Avilla Northside, a multifamily residential development, will feature nearly 120 luxury rental homes with one-, two- and three-bedroom floor plans. Construction on the project, to be located on the northeast corner of Community and White avenues, is set to begin later this year.’
‘The project’s developer, NexMetro Communities, expects about a 12-month timeline for construction.’
‘Pricing for the standalone homes will be “commensurate with other higher-end multifamily residences,” said Jon Van De Voorde, vice president and general manager for NexMetro’s Texas market. Single-bedroom homes will cost about $1,000 per month, and two-bedroom units will price at around $2,100.’
‘What’s different about Avilla Homes? Rather than a series of multifamily buildings with several units within each, this concept features low-profile structures that look more like a single-family residence or duplex.’
‘The freestanding homes will have 10-foot-tall ceilings, rear yards and modern appliances. A community manager will oversee the development and facilitate “the next generation of maintenance-free living,” Van De Voorde said.’
‘Single-bedroom homes will make up roughly a quarter of the McKinney development. Based out of Phoenix, NexMetro is also building Avilla Premier in central Plano. That 122-site community is set to open to the public in October. The developer has similar projects going in Denver, and it plans to expand its North Texas market by 500 to 600 units a year, according to Van De Voorde. “We have a pretty aggressive growth plan.”
‘Van De Voorde said Avilla Northside is slanted toward two ends of the market spectrum – it will likely attract Millennials (namely couples and “hipsters”) and seniors/pre-seniors.’
‘NexMetro is already working with city staff on developments for elsewhere in the city. “We would love to have more in McKinney,” Van De Voorde said.’
There’s 50,000 units in the Dallas pipeline.
There’s 50,000 units in the Dallas pipeline ??
Wow…
people too broke to buy? Stuff them into apartments and start having them pay the bills.
Theres 80,000 condos coming online in SF bay area.
Yeah, 50K in Frisco alone, suburb of Dallas. Ben posted that a few days ago. The entire population is only something like 160,000 estimate as of 2016.
Not to extrapolate too much, but about the quality of these new constructions… it seems like a lot of these new “luxury” apartments and buildings are just a bunch of crap. With some stainless steel appliances thrown in, which are impossible to keep looking nice.
It’s 50k apartments for greater Dallas. Frisco may be building 50k housing units, I don’t recall.
It’s 50k in North texas, which includes frisco. There have been 3 complexes recently built near me, and there’s another development of condos started as well. There’s certainly a lot of building going on.
Theyre finally putting a costco in Dallas. The city only had to give costco 3M $ in abatements to make it happen.
Here is a story about a place called celina. It’s up there north of Dallas somewhere. They just can’t build the homes fast enough.
http://www.wfaa.com/mb/news/local/hottest-market-ever-growing-pains-for-a-small-north-texas-city/311998362
That’s unpossible. Rental Watch says we aren’t building enough shacks. Let’s take a look:
‘In their development, there are more than 1,000 lots ready for new homes. And, really, that is just the beginning. All over Celina there are mega-developments underway.’
‘Interim City Manager Helen-Eve Liebman showed us a Celina development map, which is pockmarked with projects, each of which will bring thousands of new homes. She ticked off a few of the names and their corresponding number of home sites, “Light Farms, 3,200 lots; Mustang Lakes, 1,850; Parks at Wilson Creek, 2,300.”
Internet says:
‘via Dallas North Tollway N
45 min without traffic’
‘up there north of Dallas somewhere’
I was up there in the summer of 2014. I said here at the time, “I have seen the bubble and it’s in Prosper Texas”. Complete with billboards advertising zero down loans for expensive mcmansions on tiny lots.
‘mcmansions on tiny lots.’ Yeah, I don’t get it. People move out to the country to get away from the hustle and bustle of the city, but move into a 5k square foot house on a 7k square foot lot.
It’s like city living without any of the amenities.
Nationally, including apartments, we are building substantially less than the 1.5-1.6MM housing units we need annually across the country.
I’ve said (from long ago) that Houston was overbuilding. I’m not surprised that Dallas is following suit…there are no barriers to entry.
’substantially less than the 1.5-1.6MM housing units we need’
And you got those numbers where? I say it’s 2 million. No 7! Or maybe none. I’ve got a crazy idea; let’s let the builders or whatever they are called, let’s let them decide. You know, free market, take risks and all that. Cuz they are saying, through their actions, we don’t need many stinkin’ houses. And they’ve been saying it for years.
But they’ve stuck gold north of Dallas. They are selling people cow pastures with bad soil; a quarter acre for 500-700 grand, with an ugly macmansion on it, an hour and a half from the nearest decent job.
There are two ways I’ve seen the number estimated:
1. That approximately 1.6MM housing units per year is the long-term average (with the logic that over long periods of time, a generally free market will generally supply what is needed);
2. Population momentum/growth and an estimate of number of people per housing unit. Population grows by about 2.2MM per year. This includes births/deaths. The estimates of need from population growth is approximately 1.2MM homes per year. I know you’ll say “2.2MM new people per year should need less than 1.2MM housing units”. Well, not really. There are about 4MM young people in each age cohort (20MM people from age 15-19, for example), so, on average, there are 4 million people every year turning 18, 19, 20, 21, etc. This is where NEW households are formed from…these folks need a new unit for each 1-3 people. On the death side, sometimes a person dies who is living alone. Their house is freed up for someone else to use…however, sometimes a person dies who was living with their spouse, who continues to live in their home. The math doesn’t perfectly cancel out. What really matters is net household formation (that can be limited by housing availability).
However, you also need to add replacement of obsolete structures. We have 130MM housing units in the country…a large percentage of them are over 50 years old. The estimate that I’ve seen is that upwards of 300-400k housing units need to be replaced each year.
That 300-400k should increase over time, as housing stock gets older. If the “steady state” of replacement math was 400k homes on 130MM units, that would imply the median life of a home was 325 years. And we know that isn’t true.
Ultimately the test is vacancy rates. If we are building the “right” amount of housing, vacancy rates should be steady. However, vacancy rates continuing to fall tell a story of supply (number of units in existence) not meeting demand for shelter.
And builders haven’t been saying we don’t need any more housing. What they’ve been saying is that the only housing they can justify building is luxury housing (multi and single-family), but that demand only goes so deep.
With 18 million excess, empty and defaulted housing units, clearly there is no need for more housing.
“And you got those numbers where? I say it’s 2 million. No 7!”
Exactly my thought. Where do people pull these made-up numbers from? (My guess: Out of their asses.)
I will say that if a national housing policy allows and even openly encourages foreign investors to crowd out local taxpaying, voting, would-be owner-occupant buyers from being able to afford to buy homes in their own communities, then a perceived shortage is pretty much an inevitability.
“With 18 million excess, empty and defaulted housing units, clearly there is no need for more housing.”
Even if dumb borrowed foreign investor money is allowed to crowd out fundamental local market demand?
Some homes need to be replaced because they get too old.
People who grow up and/or get married and leave home need somewhere to live.
It’s actually not that complicated and it is possible to estimate such things.
Oh look, someone estimated such a thing in 2010:
https://www.creditwritedowns.com/2010/08/housing-shortage-coming.html
https://stevemcauliffe.wordpress.com/tag/housing-shortage/
And here’s the whole shortage article, from August 2010.
‘Forget “Animal House,” today’s student housing is all about luxury. Developers are pumping cash into privately owned student housing’
‘A laundry list of luxury amenities isn’t just for Manhattan’s new construction towers. College students are also getting the hotel suite treatment. Stainless steel appliances, hardwood floors, en suite bathrooms and in-unit washer/dryers are fast becoming standard at large public universities across the country, according CNBC.’
‘Developers are investing in privately owned student housing and upping the ante on amenities, resulting in approximately 47,700 new beds in the pipeling for this fall semester. Universities in the Southeast are the primary target, according to Axiometrics, an apartment research firm.’
“Privately owned student housing is quickly becoming an integral sector in real estate, and performance metrics demonstrate its strength,” Jay Denton, senior vice president of analytics at the firm, told CNBC. “Axiometrics forecasts rent growth to remain strong over the next five years and occupancy to stay above 95 percent, as enrollment continues to rise nationwide.”
“The interest really started two or three years ago. A lot of the capital — institutional investors — needed to be educated on the space itself and what it meant to be in student housing. We had to do a lot of convincing that it wasn’t all ‘Animal House’ structures, but actually really stable cash flow properties,” J.J. Smith, chief operating officer of CA Student Living, told CNBC. “Now that we have educated the institutional world, we’re seeing a lot of capital interested in these properties.”
‘Peter and Beth Daw of Manhattan were moving their son into the Landmark as well, watching him wheel carts of furnishings into the elevator as they waited near the lobby latte/frozen yogurt stand.
“If there were no options, the kids would have to live with it. But given the options, yes, the kids want more,” admitted Beth. As for the higher cost … “We try to accommodate,” said Peter. “It’s not a blank check. It’s not the Four Seasons.”
‘Maybe not, but the Landmark’s list of amenities is long: A full health and fitness center with sauna, spin room and tanning beds; 24/7 on-site emergency service and video surveillance, game room, media room, private Zen garden, outdoor patio with built-in grilling, study lounge with computers and a Target Express Store on site.’
‘Landmark, according to parents, isn’t even the swankiest student option available at UMD. Some pointed to the brand-new Terrapin Row, an apartment complex just completed by luxury homebuilder Toll Brothers. It touts a “resort-style” pool, but a pop-up on its website warns, “Almost Full!” “Each year there continues to be another new amenity that gets introduced to the sector,” said Smith.’
‘CA Ventures is putting a ski and snowboard simulator into one of its newest properties at Colorado State University in Fort Collins. Golf simulators are already pretty standard. Developers are turning their attention to public-private partnerships with universities. They say there is a tremendous demand from universities to outsource development of student housing as well as refurbishment.’
‘Each year there continues to be another new amenity that gets introduced to the sector’
The latest luxury apartment thing is on-site bars.
What a joke. I worked two part-time jobs as an undergrad and could pay my rent with roommates and have alot of money left over for beer and live music.
But did you have this?
‘full health and fitness center with sauna, spin room and tanning beds; 24/7 on-site emergency service and video surveillance, game room, media room, private Zen garden, outdoor patio with built-in grilling, study lounge with computers and a Target Express Store on site…a “resort-style” pool…CA Ventures is putting a ski and snowboard simulator into one of its newest properties at Colorado State University in Fort Collins. Golf simulators are already pretty standard’
So why student housing? They told a story to sucker the “institutional investors.” Students get limitless loans from the government. These cashed up students are “demanding” luxury! But that’s a con to justify the sky high prices they are paying for the land, just like luxury apartments, which are in demand by the newly discovered rich renter millennials and hipsters. They say this stuff with a straight face.
I’d bet these golf simulators don’t even get used.
Room and board paid via parental cash-out refi?
Sallie Mae loans more likely. Also government backed. At a time when presidential candidates are floating student loan forgiveness, what these students need is - expensive housing! Needlessly expensive. Oh let’s build a special room for them to sit in and look at their phones!
Hillary’s free college will fix this
“At a time when presidential candidates are floating student loan forgiveness, what these students need is - expensive housing!”
Having taken eighteen college-level courses for free online on Coursera.org since Fall 2013, I am utterly convinced the traditional on-campus study model of college education is destined to being severely undercut in the coming years by the distance learning model, where a college education is essentially free. We are heading towards a two-tiered higher education system where a select minority will be able to afford a four-year education away from home, and the masses will figure out how to integrate affordable distance learning with their work schedules.
That is really wonderful. I’ve tried a few times, but you have to have time that you can rely on to be left alone, be free do it.
My mother worked in a college before she retired almost twenty years ago. She often remarked to me that the faculty seemed to live on a different planet and were often extremely condescending to the administrative staff. She made a remark to one of the professors that online instruction was the future. He huffily responded that the students would miss the personal touch. Since truly excellent teachers are rare, jokes about a remark like that make themselves.
“…but you have to have time that you can rely on to be left alone…”
Such is the case for all of my endeavors. Luckily my wife is very respectful of my ‘alone time’, as I am of her’s.
Same here. In fact, one of my part time jobs WAS playing music. I had a reputation for always having cash in my wallet.
What an embarrassing joke this country has become.
Fundamental transformation is having its desired effect in every former bastion of western civilization.
http://www.thedailysheeple.com/first-world-whiner-calls-cops-over-wrong-drink-order-i-specifically-wanted-lemongrass_092016
“private Zen garden”
Their safe spaces!
Next thing you know, they’ll be demanding the Russian ice cream. Prized for it’s texture, flavor, and temperature.
“Hooligans” trash the camp of the ultra-rich “parasites” at utopian Burning Man festival. Go figure…all of these people need to get a life.
http://www.telegraph.co.uk/news/2016/09/04/revolution-against-rich-parasites-at-utopian-burning-man-festiva/
dont all those folks pollute the air driving out there and burning stuff?
Those folks are living useless, vapid existences. Some days the apocalypse can’t come soon enough.
I found the article humorous. Burning Man is supposed to be all barter, but some little Russian rich kid is charging people, paying others, and felt the wrath of the greater group of “Burners.”
Posers like Paris Hilton and Jared Leto would ruin any gathering.
hehehehe…
Tony Wichowski, a Burner, said: “And so the revolution has begun. Taking Burning Man back from the parasite class, back from the electronic dance music tourists. Taking Burning Man back for the people. This wasn’t much but it’s a great start.”
Hey Tony, how ’bout taking THE COUNTRY back from the parasite class?
Back in the ’90’s, I attended a few psychedelic trance music parties in the middle of the southern CA desert — way, way out past Joshua Tree in the middle of nowhere. The kind that weren’t advertised and you had to know people to find out about. Maybe 100 people at any single event.
The DJs set up their gear out the back of a U-Haul truck, big speakers on each side, and a gas generator for the power. People brought their tents, food, water, and camped out and listened to great music all night. Some people brought little grills and cooked up food for free for people. It was fun.
It wasn’t all drugs either. Yes, there definitely was, but people were pretty responsible about it. Many people just went for the music and no drugs. You’re so far remote, you had to be responsible for yourself — no way of getting an ambulance or driving to the hospital.
Sunrise in the CA desert is one of the most beautiful things I’ve ever seen.
MSM “solution” to the rental crisis caused by the Fed’s free money gusher to the speculators: double up occupancy among unrelated proles in crappy apartments. That, or pop the housing bubble so homes become affordable to those struggling to make ends meet in our Obama-Fed-Goldman Sachs “recovery.”
http://www.businessinsider.com/colorado-is-waging-a-messy-battle-over-group-living-2016-9
Somebody is going to get a sternly worded note from the Finger Wagger in Chief.
http://www.zerohedge.com/news/2016-09-05/who-he-confront-me-philippines-president-unloads-son-bitch-barack-obama
You said it! Obama moralizes at everyone, here and abroad and then drops bombs. It’s great to see others on the world stage give this guy da meddle fanger.
Duterte knows what’s going on. He knows how the US uses the drug trade and groups of people to undermine other nations.
And no way Obama ever becomes head of the UN, lol. Not in any meaningful way. If that happened, you’d see a rush to the exits by a number of countries, possibly including the US.
Obama and the Pope can go smoke dope.
Hillary will appoint Obama to be a Supreme Court judge. So long, Second Amendment.
Relax. Hillary isn’t appointing anything except the executor of her estate.
Oh, boy, this is unbelievable, she made a speech (if you can call it that) in Cleveland, today. Coughacoughacoughacougha. It’s really that bad. She says it’s because she’s allergic to Trump, lol.
https://www.youtube.com/watch?v=H133cTro1NQ
No wonder she doesn’t do press conferences.
Hillaryous is unelectable.
You got that one right. After watching that video, she can barely talk. More like “cough and croak” your way through a “speech”. I’d almost feel sorry for her if the harm she’s done hadn’t been so enormous.
Wow, that was pretty bad. Worst episode yet.
I wonder if she caught TB during a photo op with an illegal alien?
Or maybe the Russians did it. Yeah, that’s it, it was PUTIN!
I saw that video, hella awkward. Middling crowd looks as sickly as Queen Pantsuit to be honest.
Whats up with her jacket anyway? Collar is crazy, like something out of a star trek movie. Who wears that, especially on a hot labor day? Just solidifies her alien like separation from the masses I guess.
Every car I’ve seen with a Hillary bumper sticker is being driven by a middle age frump who is a portrait in stupidity. Every single one of them, so far.
“Coughacoughacoughacougha.”
I recall Bill Clinton having a severe case of laryngitis while on the campaign trail.
Is it possible the Clintons talk too much for their own good?
FDR couldn’t walk without assistance. Fortunately, it didn’t matter.
Are you comparing FDR to HRC?
And are you comparing surviving polio to ??? (because she won’t say)?
Go ahead and vote for Kang. Lots of others will vote for Kodos. I’ll stick with my third party candidate.
The French sheeple keep voting for globalist-captured Establishment parties, then express dismay at getting what they voted for. You can’t fix stupid.
http://www.zerohedge.com/news/2016-09-05/protesters-blockade-french-port-protest-refugee-jungle-camp
Wake the flock up, sheeple.
http://www.oftwominds.com/blogsept16/labor9-16.html?fullweb=1
Let’s honor Labor Day by reviewing what’s happened to wage-earners in the eight years since central banks “saved the financial system” with free money for financiers: wage-earners have taken a beating and been dumped in a ditch. It’s really very simple: wage-earners have seen their real earnings (as measured by purchasing power) stagnate or decline while those chosen few with access to near-zero interest borrowed capital have seen their net income and wealth explode higher.
Do the math, people: annual wage increases once real-world inflation is factored in (roughly 7% to 10% annually for those who rent, have significant healthcare expenses or buy higher education) are either negative or are measured in the hundreds of dollars–in other words, trivial increases for all but the very top echelon of wage earners.
Increases in wealth for those with central bank-supplied free money for financiers are measured in the millions of dollars. Even small-fry with capital invested in bubble markets have experienced gains in the hundreds of thousands of dollars–entire lifetimes of earned income for those earning $25,000 to $35,000 annually.
some people work,some people are well connected.
Germans voted for globalist Establishment parties. Now they’re getting exactly what they voted for.
http://www.breitbart.com/london/2016/09/05/gang-migrants-sexually-attack-german-girls/
With Yellen the Felon and her gang of counterfeiters at the Fed hellbent on debasing the dollar into worthlessness, precious metals - the kind you buy and hold, not the make-believe paper gold in ETFs - are poised to soar.
http://www.marketwatch.com/story/gold-silver-gain-on-more-bets-the-fed-will-take-it-slow-on-raising-rates-2016-09-05
Remember….. Nothing accelerates the economy and creates jobs like falling prices to dramatically lower and more affordable levels. Nothing.
Deflation and decentralization. Let it happen and watch freedom and prosperity flourish. Do the opposite, and just look around you to see the result.
Negative interest rates and the war on cash: the oligarcy’s next escalation in its financial warfare against the 99%.
https://www.theautomaticearth.com/2016/09/negative-interest-rates-and-the-war-on-cash-1/
Sorry, losers! How the Fed has screwed the many to benefit the few.
http://www.peakprosperity.com/blog/101139/sorry-losers?utm_campaign=weekly_newsletter_247&utm_source=newsletter_2016-09-02&utm_medium=email_newsletter&utm_content=node_title_101139
17 million kids went to college so they could learn to be bartenders and waiters in our Obama-Fed-Goldman Sachs “recovery.”
http://www.mybudget360.com/spending-on-bars-and-restaurants-passes-grocery-store-spending-college-degree-and-serving/
The oligarchs are stepping up their war on cash, since a cashless society would be these control freaks’ wet dream to loot and asset-strip the proles.
http://www.thedailybell.com/news-analysis/bloomberg-abolish-cash-to-create-a-freer-market/
But…but…stress tests said the Eurozone banks were fine!
http://www.economiccalendar.com/2016/09/03/economic-stagnation-adds-to-italys-banking-crisis/
With a standing arrangement for the ECB to bail them out, what could possibly go wrong?
Strong sales of anti-Hillary merchandise suggests millions of Americans share the same revulsion at seeing this sociopath Goldman Sachs puppet and serial influence peddler in the White House.
http://www.breitbart.com/2016-presidential-race/2016/09/04/cafepress-anti-hillary-merchandise-outselling-anti-trump-gear-by-over-814-percent/
Silly Native Americans. Bow to your corporate statist masters.
http://www.independent.co.uk/news/world/americas/dakota-access-pipeline-protests-native-americans-attacked-dogs-north-dakota-sioux-a7225571.html
From that DSU article:
“”They’re required to get a third-party inspection once it’s being constructed,” Kessel said. “That wasn’t done. It made it very difficult for us as a city to issue a building permit. The walls were in. When it arrives, we can’t see the plumbing, electrical, what’s behind those walls.”
While Mitzel said Blue Hawk Square is a nice facility, “it needed a little work.”
While no one will go into specific detail about what aspects of the building need to be fixed, a work crew was at the site Saturday.
Moore said there’s nothing wrong with Blue Hawk Square structurally, but that certain aspects are being modified and remodeled, including relocating washers and dryer units, which were located near showers.”
–
More shoddy construction. Don’t they always haul out the worst of the junk near the end.
Just curious, what’s the issue with washer/dryer units near a bathroom? Is it the combination of too much electricity next to a water source?
I mean, a washer obviously needs water too, but if it is located nearby a bathroom where there is a shower, is that’s just too much of it close together?
Just more drama and fodder. Every new house has a punch list of defects that require corrective work. It’s always been that way and always will be.
“Every new house has a punch list of defects that require corrective work. It’s always been that way and always will be.”
–
I’m not disagreeing, but I don’t understand this. We should know how to build defect-free houses by now.
Actually, I do understand. Real life example. In my old house, one day the furnace failed. It about 10 years old, it was the original furnace from the builders and was located in the attic. I had a repair guy come out and take a look.
He emerged from the attic holding a very faded aluminum beer can, that had been lodged inside of the furnace. Coors, it was. You could just barely read the logo, it was so faded.
I thought: “Wonderful. I had drunk people building my house.”
You described the typical travail of the owner of a depreciating asset, in this case a house.
There is no escaping the losses resulting from depreciation.
I understand depreciating assets, and things like furnaces fail over time. For me, it was some electrical component and wasn’t expensive to fix.
The ancient empty beer can inside of the furnace threw me off a bit. It had been put there on purpose. We could only speculate how it got there, our only explanation was the workers, they were drinking on the job, and one of them tossed a beer can inside of the thing. Probably laughed about it.
It really made me wonder, what else did they do…
It would have failed by 15 years anyways. All boilers and furnaces do.
I had a friend who did that kind of work and when he was working on my house he threw a few beer cans behind the kitchen cabinets he was installing. At that point we were still on the fence but leaning strongly toward selling, so he felt free to do it in front of me. I told him I was going to kill him and fished them out but he said he and pretty much everyone he worked with did it, so it might not be unusual.
I observed the same thing when the construction crew put a sewer line into my cul-de-sac. They threw all of their empty water bottles and other trash right into the open trench. Yes, it doesn’t really matter, but it still bothered me.
Oh, and in my 1977-built house, they threw every manner of construction debris into the crawl space (most of which is still there).
My favorite? When I opened up the wall between the living room and kitchen - all of the excess drywall scraps, put into the wall cavities. Nice. Especially when you are trying to run wire and can’t figure out what you keep hitting.
“Wonderful. I had drunk people building my house.”
Hopefully you didn’t have a Realtor® having sex in your living room the day you bought it.
Snicker- Icing on the cake.
Also, from the article they were saying they had to *relocate* washer/dryer units.
To me that seems like a significant design/architectural defect, rather than some construction-worker error that happened while building it.
To relocate washer/dryers, wouldn’t you have to re-do the plumbing and exhaust and rip open walls and everything?
Anyways…
What’s interesting is the price of one these installed appliances are in the $5k-$10k range given the grossly inflated prices.
Actual cost of rough in and the appliance itself? $1200 at best.
Labor Day has become a reminder of everything working class America has lost.
http://www.theburningplatform.com/2016/09/05/labor-day/
Google has gone full commie with its Labor Day doodle. What a joke.
Again…… If you’re paying more than production cost($55/sq ft for lot, labor materials and profit) for a new house, you’re paying too much. A fraction of that amount for a used house.
The DNC should immediately grant citizenship and extend welfare benefits to freeloaders like this chap in exchange for his entitlement vote.
http://www.dailymail.co.uk/news/article-3774073/Cheeky-beggar-Virgin-23-got-girlfriend-pregnant-weeks-launches-online-appeal-pleading-strangers-help-buy-HOUSE-gets-1.html
FINANCIAL TIMES
Mexico
Mexico considers bill to revoke US treaties if Trump wins election
Initiative would review 1848 accord that gave away swath of territory
President Enrique Peña Nieto greets US Republican presidential nominee Donald Trump © AP
4 hours ago
by: Jude Webber in Mexico City
So you want to play hardball Mr Trump? Mexico is to consider revoking a series of bilateral treaties — including the 1848 agreement that transferred half its territory to the US — if the Republican candidate wins the presidency and rips up the North American Free Trade Agreement, according to a bill to be presented to Congress.
…
‘including the 1848 agreement’
https://en.wikipedia.org/wiki/Treaty_of_Guadalupe_Hidalgo
‘The Treaty of Guadalupe Hidalgo (Tratado de Guadalupe Hidalgo in Spanish), officially entitled the Treaty of Peace, Friendship, Limits and Settlement between the United States of America and the Mexican Republic,[1] is the peace treaty signed on February 2, 1848, in the Villa de Guadalupe Hidalgo (now a neighborhood of Mexico City) between the United States and Mexico that ended the Mexican–American War (1846–48).’
‘With the defeat of its army and the fall of its capital, Mexico entered into negotiations to end the war. The treaty called for the U.S. to pay $15 million to Mexico and to pay off the claims of American citizens against Mexico up to $3.25 million. It gave the United States the Rio Grande as a boundary for Texas, and gave the U.S. ownership of California and a large area comprising roughly half of New Mexico, most of Arizona, Nevada, Utah, and parts of Wyoming and Colorado. Mexicans in those annexed areas had the choice of relocating to within Mexico’s new boundaries or receiving American citizenship with full civil rights. Over 90% chose to become U.S. citizens.’
We could get rid of California? I know the part of Texas that was picked up is basically northern Mexico anyway. I’d have to think about it but at first glance it’s a no-brainer.
Many Mexicans still consider that territory to belong to Mexico, and consider its loss as theft by the United States.
La Reconquista:
https://en.wikipedia.org/wiki/Reconquista_(Mexico)
It’s not surprising whenever there are large Mexican gatherings, parties, celebrations — they are always waving Mexican flags, not American flags.
Er, sorry that link didn’t come out right, you have to copy/paste it with the _(Mexico) part.
There are plenty of Irish flags on display during the St. Patrick’s Day parade in New York City.
Irrelevant
That is true. Not sure if it makes it OK though. It doesn’t bother me very much, but on one hand, it would be weird to say… Move your life to China, and then fly a bunch of American flags.
To me, flying a nation flag in public is more than a cultural thing like a shamrock or something.
It is a statement about your loyalty.
I don’t think that is much to do with loyalty. It’s a way of celebrating their Irish heritage, as is the parade itself. And, of course, it’s not specific to Irish-Americans. Many other groups have their parades and do the same thing.
Yes, it is “a way” to celebrate heritage in public. That’s part of the great thing about America, freedom of expression.
I think a more beautiful thing would be to see millions of Mexicans or Irish or whoever, out there in public with all their symbols of their heritage, while predominantly waving *American flags*. Then you know — these are good people, they’re fellow proud Americans like me.
Somehow in the past 20-30 years it’s almost become shameful to fly an American flag, which is very sad. These days you’re practically labelled a racist if you do. That said, out here in Eugene today, there’s lots of American flags out.
I think a more beautiful thing would be to see millions of Mexicans or Irish or whoever, out there in public with all their symbols of their heritage, while predominantly waving *American flags*.
They do that on Independence Day. There are different flags and things for different days.
Yeah, maybe you’re right MM. I dunno, wave all the foreign flags ya want on whatever days you want.
I think it would be funny to see 10,000 white Americans roaming around Mexico City on the 4th of July, waving American flags.
Probably would start a war.
I didn’t mean “funny” as in humor, more like the contrast.
Here’s a little story about my experience with racism, as a white American guy.
Many years ago, my brother and I were living in the SF bay area and we enjoyed jazz music. There was a cool jazz place in the Castro district we enjoyed, which was mostly white people. One of the first times we were there, after the jazz placed closed down, we were stunned from the great music we just heard, and wanted to go out and have a beer, so we walked around and found a bar. We were completely sober, well dressed, not obnoxious or bothering anyone.
Down the street, there was a full Mexican bar, but that did not deter me. We’re all Americans, right? This is my country too. All I have are good vibes. We go inside and approached the bar, and fumbled our way speaking half-spanish to order a couple of beers, but very politely.
Beers were put on the table by the bartender. Said beers immediately taken away by other Mexican patrons. Burly dudes, clearly trying to mess with us.
I started to protest a little bit, but these were big guys, then I saw half the bar was glaring at us, clearly ready for a fight.
Sometimes, you stand your ground. Sometimes, you know when to cut your losses. That was one of those times. We walked out without any scars, but it was close.
The second time I experienced racism was in Singapore of all places. Mostly they are friendly to Americans, but again, one night with an Australian co-worker, we ventured into a place only frequented by locals.
We didn’t even get served there. They shoo’ed us out almost immediately because we were white.
Unfortunately, that’s the way the world is.
If anyone thinks that only white people can be racist, they’re mistaken. Otherwise, there’s not much of interest in your stories.
I think it would be funny to see 10,000 white Americans roaming around Mexico City on the 4th of July, waving American flags.
Probably would start a war.
By the way, that sounds like a wild guess.
Have plenty of stories about anti-white racism growing up in a neighborhood inundated with illegal aliens (sorry, Gary Johnson).
On the range of things.
Negativity -> Cynical -> Realist -> …
You seem to be far on the Negativity scale, but that’s OK. I’m somewhere between Cynical and Realist.
Let’s draft our own law to give it back to them. You have to take California first, and the people there go with it of course. So scratch northern Mexico (south Texas), Arizona, no big loss. New Mexico? They won’t even have to change the signs except to add Spanish. Colorado, sure off it goes. So now those 90% who got citizenship, all their descendants gotta go. (Hey, don’t blame me, this is a mirror of their proposal).
Anything else? Of course we won’t be needing your assembling lines and all that. And no more illegal immigrants, that’s a given. Now, can we interest you in New York, Washington DC, or any other place on the eastern seaboard? Cuz we’ll let that go cheap.
Haven’t they largely reclaimed California, anyway?
What would that 15 million be in today’s dollars? Would we get that back?
So you want to play hardball Mr Trump? Mexico is to consider revoking a series of bilateral treaties — including the 1848 agreement that transferred half its territory to the US — if the Republican candidate wins the presidency and rips up the North American Free Trade Agreement, according to a bill to be presented to Congress.
What exactly will Mexico do if revokes those treaties? Will it send it’s army in to reclaim them? Enforce a “no fly zone” over the southwest?
Just wondering.
Mexico already has willing recruits in the US, in the form of illegals and drug cartel personnel. Anyone who saw the 2006 nationwide demonstration can get a pretty good idea of what they can deploy.
I almost wish they’d try, because that would give everyone a reality check on what can come about as a result of unfettered immigration.
Meh, most illegals are useless. Sure, they can march and demonstrate. But if they really tried to take over … well, let’s just say that it would interesting.
Corruption candidate
https://www.washingtonpost.com/blogs/plum-line/wp/2016/09/05/trumps-history-of-corruption-is-mind-boggling-so-why-is-clinton-supposedly-the-corrupt-one/?utm_term=.8c017ac0994c
Do most posters here presume Deceitful Donald would suddenly clean up his act and become honest and presidential if elected to the WH?
I guess not everyone is familiar with the saying about old dogs’ inability to learn new tricks. I realize that some folks enjoy being lied to.
Yes, millions upon millions of Hillary supporters love being lied to - you have that part correct.
Got banged up in a road biking accident yesterday in Newport Beach. Hit a barrier at 17mph. Was very very lucky. No broken bones. I am going to be fine. The drop handlebar is bent out of shape and I was able to bike back 13 miles to my car at the office at a good pace of 16mph. I will visit the local bike shop and see about new carbon drop handlebars.
Even though we have differing views on a variety of things, I am sincerely sorry to hear that, Bill. The older one gets, the more difficult physical impacts can be, whether from falls, crashes, etc. I took a bit of a nasty pratfall outside the local DMV about a year ago, tripped on a low curb and went sprawling. No broken bones, but bruises and stuff that looked like bleeding road rash. Took longer to heal than it used to.
Here is hoping you feel no pain or after-effects.
Thanks. Woke up middle of night with sore stomach and was surfing the web about internal bleeding. If I do have it, it’s too slow to not be self repaired. It was just pulled muscles. If you ever run into something and your abdomen is impacted, you check for distended abdomen, firm and if there is pain when pressing down on the abs.
Just got back from buying new parts. Carbon 31.8 drop bars, a new 31.8 stem with reducer, and tape. Cost about 2/3 of what I bought the bike brand new for in 2004 but far cheaper than a new bike.
If you took a handlebar in the gut, you need to make sure your spleen is ok. You can lose a lot of blood internally if it is injured. Not that they can do much about it except monitor you, but if you are looking pale, have it checked out.
Thanks. I was positioned so that my torso was driven upward over the barrier and avoided the handlebar. The bike slipped under the barrier. I took a 3 mile walk in my neighborhood hills this afternoon and seem to be okay. The torso and abs feel normal now. I would be worried if my belly was swollen and firm. And ere is not any pain in the abdomen while pressing down.
Just heard today from my ex girlfriend that a friend of hers she helped in RAAM just got in a bike accident. This was a few days ago. He is paralyzed now from the waist down. He had been complaining of dizzy spells for awhile. Well that is how my ordeal on my ticker went, though I am managing it well with prescription drugs. My heart rate is reduced. I don’t need any implant as of now.
Bill, glad it wasn’t worse and hope there are no lasting ill effects. Hope you mend fully and can avoid future mishaps.
Thanks. I am thinking of joining my like shop’s Saturday rides. But I like going at my own pace because my heart rate is limited - no sprinting!
“Here is hoping you feel no pain or after-effects.”
Me 2
Thanks
Glad you are OK.
P.S. Do you know anything about Machine Learning? I’ve started Andrew Ng’s course on Coursera.org. He may be the best educator I have ever witnessed in action…and he is only a part-timer (adjunct instructor at Stanford).
Taxpayers must forever pony up endless bailouts to avoid insolvent TBTF banks triggering a systemic financial collapse that would finally flush out all the toxic waste and make-believe valuations in the global banking system. It’s the right thing to do…for the children.
http://www.bloomberg.com/news/articles/2016-09-04/italian-bank-rescue-that-mustn-t-fail-hangs-over-lake-como-party
hey ray
u seem to think that a bond crisis is going to force the FED to raise rates.
How can that be when they can basically print and buy up all the bonds they want? All the central banks have been doing this.
As I have been saying I think all the jawboning by yellen is to keep the dollar strong.
There are a lot of folks saying that a currency collapse is the only thing that would force rates to go up.
Any thoughts?
Labor Force Participation Rate Plummets To 38 Year Low; Joblessness At Record High
http://data.bls.gov/timeseries/LNS11300000
I have a mindlessly simple idea to turn around the collapse in labor force participation: Abolish the income tax, and let the Fed create the money needed to run the government on an as-needed basis. A tax on income creates a disincentive for workers to contribute valuable goods and services to the economy.
Abolishment of income tax is a great idea….. In conjunction with a complete withdrawal from markets and discontinued interference of markets and price fixing by government.
That too. The role of the government has far outgrown that envisioned by the framers.
-> “and let the Fed create the money needed to run the government on an as-needed basis.”
I think you might be right but the government just takes over the Fed completely, not “letting them” do it, but just merging with them.
Correct me if I am wrong, but wasn’t the Fed originally created / designated as a private company because everyone knows that politicians have no self-control when it comes to money, and having the Fed as a private company would “help” so that we don’t print too much of it too quickly? Like, the Fed is supposed to be our guardians and protectors of the money supply.
Of course that is laughable now, especially with all the QE’s and buying up everything in sight.
Hey. PB, that is exactly how some of the confederate jurisdictions did it. They had no income tax and issued their own currency. Inflation was usually 2% per year. Of course this all stopped in June 1788. The U.S. Constitution is primarily a federalist document. The anti-federalist part of it is just the bill of rights.
Obviously the Income Tax idea was a later add-on, coincidentally in the same year the Fed was established (2013).
I guess back then, the economics profession hadn’t discovered the profound insight that a tax on the fruits of work would discourage labor productivity?
Compared to today, life was utterly miserable a hundred years ago.
And obviously we owe the Fed and the IRS a debt of gratitude for all of the quality of life improvements they have single-handedly contributed since 2013.
They’re part of the many things that have changed during the period.
Cause we wouldn’t have had any of that 100yrs of technological progress without the Fed… Uh huh. Right. Got it.
“If It’s Stability You Want, Then Rent, Don’t Buy
New research by the ECB shows just how bad for financial stability possessing your own home can be…”
http://www.bloomberg.com/news/articles/2016-09-01/if-it-s-stability-you-want-then-rent-don-t-buy
Seattle, WA Real Estate and Homes for Sale, 6,640 Homes
http://www.realtor.com/realestateandhomes-search/Seattle_WA/radius-20
Seattle, WA Real Estate and Homes for Sale, Price Reduced, 2,191
http://www.realtor.com/realestateandhomes-search/Seattle_WA/shw-pr/radius-20
33% of all Seattle sellers reduced their price at least once.
“Here’s Why Million-Dollar Homes Sales Are Falling Fast”
http://www.thefiscaltimes.com/2016/08/31/Here-s-Why-Million-Dollar-Homes-Sales-Are-Falling-Fast
Collapsing demand results in falling prices results in price reductions of everything below it.
Look out below.
Downtown Portland, OR Housing Prices Crater 9% YoY
http://www.zillow.com/downtown-portland-or/home-values/
Knock it off, Housing Analyst. Stop posting under multiple names.
What is it about falling housing prices that that enrages you?
Bill Murray sums up the 14% of Americans Have Negative Wealth chart in the first 20 seconds of this movie trailer.
St. Vincent Official Trailer #1 (2014) - Bill Murray, Melissa McCarthy …
https://www.youtube.com/watch?v=9dP5lJnJHXg - 419k -
Chart: 14% of Americans Have Negative Wealth
Jeff Desjardins
on August 4, 2016 at 10:12 am
http://www.visualcapitalist.com/14-percent-americans-negative-wealth/ - 169k -
Labor Day Coughing Fit: Hillary Hacks through Speech
Hillary not looking so good - not one bit…
Adan Salazar - September 5, 2016
Democrat nominee Hillary Clinton suffered a violent coughing fit at the start of a speech Monday, struggling to get through a rally in Cleveland, Ohio.
“Hey Cleveland,” Clinton managed to screech out.
“Happy, happy Labor Day,” she continued in a raspy voice before the first of many coughs.
“Every time I think about Trump, I get allergic,” Clinton attempted to claim after sustained hacking and multiple sips of water.
http://www.infowars.com/ - 170k -
She’s about as useful as a horse with a broken leg.
As she kennel coughs her way through “Every time I think about Trump, I get allergic,” the VP choice sitting behind her looks like Arnie Grape as he smiles and claps.
“As she kennel coughs her way through “Every time I think about Trump, I get allergic,” the VP choice sitting behind her looks like Arnie Grape as he smiles and claps.”
lolz. Hilarious reference.
And here’s the finale of her cough n’ croak. At first, I was a little confused when I heard her gasp “When you see that he can’t even go to a foreign country without getting into a public feud with the president”, I thought she was referring to Obama, who had three, count ‘em, THREE feuds going with various heads of state, and that’s just this past weekend.
https://www.youtube.com/watch?v=d7owEWsqtfM
Cackcackcackcackcack Donald Trump cackcackcacktuhtuhtuhcack.
The other piece of weekend video I liked was Slick Willy strolling along in Detroit with a thousand yard stare and a gaggle of minions scrambling around him and someone yelling “No NAFTA Boy!”
http://www.theamericanmirror.com/video-heckler-calls-bill-clinton-nafta-boy-detroit-labor-day-parade/
Wow, this has been one surreal Labor Day weekend, what with Obama’s dissing by the Chinese, and the potshots taken at him by Duterte and the photo op where he glances over at Putin and Erdogan deep in conversation, Merkel getting a drubbing at the polls, Hillary coughing it up, etc.
What a POS that Slick Willy is, no? NAFTA, eliminating Glass Steagall, racketeering through the Clinton Foundation and he wants another term via his wife.
Oh, and Trump calling out Janet Yellen and the FED, that was priceless.
Oh, and Trump calling out Janet Yellen and the FED, that was priceless.
I have a forlorn hope that Trump will get elected and to everyone’s surprise, will be so staggered by the importance of the office he holds that he will actually make herculean efforts to prove himself worthy of the people’s trust and to gain the respect of those he previously alienated, and work to unify a fractured country. Calling out and excising the cancer known as the Fed would be an enormous step in the right direction. Trump has a chance at true greatness, if only he will rise to the occasion.
+100%
And it is strictly Obamaesque hope since I grew up looking at his antics reported on The New York Daily News and The New York Post.
When Ivana got kicked to the curb, I laughed when younger women in NYC than myself don(!)ned Ivana’s hair hat (as we called it) in sympathy. I just tried to look it up, didn’t find much, but women were doing it at the time.
When he was making the switch, I ran into someone on the east side of Manhattan who said she knew Marla, such a sweet girl. Sure, I thought, for a sl#t.
Oh God, there’s no other choice. Well, like everyone, he has to have grown somewhat over the years.
I watched the beginning of that speech and it was way worse.