January 13, 2017

An Unprecedented Glut

It’s Friday desk clearing time for this blogger. “Douglas Elliman has released its rental report for the final month of 2016, showing that the rental market did not end the year with a bang. December marked a record amount of leases signed with concessions, 26.4 percent. That’s double the amount from the same time last year. Brooklyn landlord concessions more than doubled from one year ago, as brokers saw a surge of new leases, due to new development and tenants pushing back on rents. But the borough actually saw its median rent slide year-over-year for the fifth time in six months. The median rent declined in all bedroom categories, with larger declines for larger units. ‘There’s stress in both Manhattan and Brooklyn rentals,’ says Jonathan Miller, the man behind the numbers.”

“For years, we’ve been hearing about how Austin is one of the fastest-growing cities in the country. But city demographer Ryan Robinson said we’re starting to see signs that the market may be cooling. ‘So we’re finally beginning to see something we haven’t seen in years in the multifamily market, and that’s concessions, things like free month’s rent, move-in specials, different things,’ he said. ‘You haven’t seen any of that because it’s been such a landlord’s market.’”

“The large number of new apartments being developed in the Milwaukee area has increased the overall supply to the point where rents are beginning to drop and vacancy rates are rising. That’s the view of Ian Martin, vice president of development at Mandel Group Inc., one of Milwaukee’s most active apartment development firms. Meanwhile, an estimated 4,300 new apartments are scheduled to be completed throughout the Milwaukee area this year, and again in 2018, he said. That compares to around 7,000 units completed from 2010 through 2016.”

“‘Everybody’s building,’ Martin said. ‘That supply is already starting to impact the local fundamentals.’”

“Architect and developer David Hovey isn’t the type to splash his name across the side of his latest downtown Chicago apartment tower, but his signature will be all over it. The building arrives at a time when the downtown apartment market is in the midst of a big increase in the supply of luxury-priced rentals. In the three years 2016 through 2018, roughly 11,500 new apartments will be added to the market, according to Ron DeVries, a VP of Appraisal Research Counselors, which tracks the downtown housing market.

“He said developers have begun offering concessions–typically a month or two of free rent–to fill their buildings. ‘Absorption has been about 2,500 a year,’ DeVries said, ’so we’re getting more and more overhang.’”

“Fargo-based Appraisal Services Inc. tracks the local apartment vacancy rate each quarter, and the Dec. 1 count suggests another potential issue. In June 2013, apartment vacancy in Cass and Clay counties was 2.5 percent; that climbed to 9 percent last month. The issue, according to commercial real estate appraiser Petter Eriksmoen, is developers responded to high demand and short supply by building new complexes—a lot of new complexes, with about 1,300 new units coming online per year in the past five years.”

“He said these warning signs suggest the local economy may have ‘reached the top’ and plateaued after several big years. ‘I think we’re coming back down to earth a little bit,’ he said.”

“Calgary home sales are expected to remain significantly below normal in 2017, according to the Calgary Real Estate Board. CREB president David P. Brown acknowledged that while some realtors made it through the past two years with no problems, others ‘got hurt dramatically.’ ‘We’ve come off two very, very tough years,’ he said. Some realtors have left the business altogether as a result of the downturn, Brown said. ‘But we’ve also seen people getting into the industry, because they’re getting laid off from other positions in other industries. They’re taking on real estate as a second career.’”

“Inner city units in Sydney, Melbourne, Brisbane and the Gold Coast sold off-the-plan have been declared a ‘clear and present danger’ to property buyers due to over supply forcing down prices. A report by trends forecaster Hotspotting said the number of apartments being released exceeded current demand. And units in Sydney’s ’second CBD’ Parramatta, compared to inner Sydney, posed an even greater risk to buyers on account of already falling sales volumes, the report said.”

“Analysts widely consider oversupply a red flag for off-the-plan buyers because it puts downward pressure on prices — increasing the risk of homes being worth less, when built, than their owners paid for them. Hotspotting director Terry Ryder said inner Melbourne presented the biggest danger for buyers. ‘New supply in Melbourne has gone way over the top but many buyers are unaware of this,’ he said. ‘Parramatta, in particular, is a concern. There is already a pattern of decline in sales but supply is still increasing. It’s a very dangerous combination.’”

“Across capitals, developers’ have sought to remedy supply imbalances by targeting foreign buyers, especially from China, in the hope they will absorb excess housing stock. The strategy wasn’t working because Asia-based and local banks were clamping down on foreign lending, Mr Ryder said. ‘Someone needs to rent those homes too but vacancies are on the way up in most inner city areas,’ he said. BIS Shrapnel analyst Angie Zigomanis agreed foreign buying was decreasing, resulting in softer demand overall. ‘Foreign buying was at a peak 18 months ago but it’s been in decline since then,’ Mr Zigomanis said.”

“Kayode Oyedele, an estate manager, was shocked after going through the content of a correspondence he received from tenants in some estates he manages in Lagos and Abuja. After a meeting with representatives of the tenants last November, it was clear that a hard decision had to be taken. The tenants unanimously laid down their cards in clear terms before Oyedele: ‘Reduce your rent or we vacate your estate,’ they said emphatically.”

“Faced with this stark reality, Oyedele had no choice but to convince the property owners to take a 30 per cent cut in rent if they desired to still have the buildings occupied.”

“The Head, Property Management, SFS Capital Limited, Victoria Island, Lagos, Mr. Bolarinwa Odeyingbo, regretted that the property market recently suffered an unprecedented glut as thousands of properties across the country remain unsold, abandoned and uncompleted. Mass homelessness is now a common feature in all metropolitan areas, and infrastructure problems continue to escalate.”

“‘This year may even pose a worse outlook in that regard. I foresee a situation where a lot of the dollar denominated commercial rents for the new ‘A’ Class developments will be further reduced by as much as 30 to 40 per cent as tenants with ability to pay for such will further shrink,’ he said.”




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186 Comments »

Comment by Ben Jones
2017-01-13 06:49:05

Now Milwaukee. Sure seems like too much housing and the wrong kind (or both) in more places every day:

‘To the Editor:

‘I just read Mr. Murphy’s letter: “New zoning will help make community’s vision for Portsmouth a reality. The Planning Board also held a public hearing on the vision plans and the proposed character-based zoning regulations promulgated to ensure that the public’s vision becomes a reality.”

‘Well, the reality is: Portsmouth is over built. There are huge brick buildings for condos and mixed use retail space. The brick building by the Memorial Bridge is hideous. More condos that were built on Islington Street were practically built on the street. Cornwall Street is so overbuilt it’s hard to navigate.’

‘Why can’t there be more affordable housing? What’s going on? If zoning can be re-figured for all that is unneeded why can’t it be re-figured for what is needed? People need an affordable place to live, period!’

‘Don’t misunderstand me. I’m all for growth and prosperity, but I also believe in taking care of our own first. Why can’t the dollars be used to upgrade the housing that exists? Reality check here: Natives here are being driven away by high property taxes, high end business and over priced housing to bring in revenue to continue to over build this city.’

Comment by snake charmer
2017-01-13 08:10:53

It’s sad, it seems as if natives are being driven away from a lot of places around the world. They’re being replaced not by other residents, but by investors, which in some cases is putting it charitably.

Comment by Blue Skye
2017-01-13 08:59:19

Investors will quickly withdraw when the prices plummet, leaving a massive crater where a community used to be. Cheap credit causes destruction.

Comment by Karen
2017-01-14 12:12:19

Cheap credit causes destruction.

The most succinct way I’ve seen this reality characterized.

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Comment by Karen
2017-01-14 12:15:16

Actually, I would change the phrase by inserting one word at the beginning:

Artificially cheap credit causes destruction.

 
 
 
Comment by In Colorado
2017-01-13 10:53:13

Dozens of gleaming ghost cities have and continue to pop up over China while the unwashed lived in hovels.

Comment by Professor Bear
2017-01-14 10:11:26

Anyone who gets upset about Uncle Sam’s centrally-planned housing policy should take a close look at China’s if they want to quickly feel better about life.

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Comment by PitchforkPurveyor
2017-01-13 16:45:13

Real estate bubbles cause massive distortions in migration patterns and local economies.

 
Comment by Neuromance
2017-01-13 21:07:28

Interesting thing: Have you ever heard any of the policy makers, either in government or at the Fed, talk about the downside of higher prices?

Wonder why that is. Real estate is not merely an asset - a house is also a consumable item. They talk about the damaging effects of high food and energy and medical costs. Why not housing?

Comment by PitchforkPurveyor
2017-01-13 23:02:53

Because the REIC’s 6% commission per house is delish, and they are the biggest lobby in DC.

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Comment by rms
2017-01-14 04:25:21

“Wonder why that is.”

I have yet to see or hear a sensible investigative journalist and a real estate professional spend fifteen minutes discussing the incredible increase in home prices while inflation adjusted household incomes have been flat for a couple of decades. We have antenna TV, cable TV, satellite TV, Internet TV, talk radio, etc., but you have to resort to alternative sources to get any measure of a reality check.

The MSM collusion and scripted narrative that we live with are right up there with the Matrix, i.e., “You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes.”

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Comment by whirlyite
2017-01-13 12:33:44

Shoddily built stuff like this! I saw this being built on my daily commute. It’s located just north of I-10 between the Highway 6 flyover and the Barker dam levee. Go to Yelp and search for “H6″ (yes, H6! Aren’t we clever?) to see what tenants say.

 
Comment by whirlyite
2017-01-13 12:35:08
 
 
Comment by palmetto
2017-01-13 06:51:49

“Across capitals, developers’ have sought to remedy supply imbalances by targeting foreign buyers, especially from China, in the hope they will absorb excess housing stock. The strategy wasn’t working because Asia-based and local banks were clamping down on foreign lending, Mr Ryder said. ‘Someone needs to rent those homes too but vacancies are on the way up in most inner city areas,’ he said. BIS Shrapnel analyst Angie Zigomanis agreed foreign buying was decreasing, resulting in softer demand overall. ‘Foreign buying was at a peak 18 months ago but it’s been in decline since then,’ Mr Zigomanis said.”

Buy our stuff or we’ll kill you.

http://www.independent.co.uk/news/world/asia/rex-tillerson-south-china-sea-state-media-prepare-military-clash-donald-trump-global-times-a7525061.html

Comment by Ben Jones
2017-01-13 07:17:54

‘The “bullet train” of globalization is broken and the West is obliged to help Chinese President Xi Jinping fix it, China’s official Xinhua news agency on Friday said of the World Economic Forum (WEF) meeting in the Swiss Alps next week. Xi will be the first Chinese president to ever attend the WEF’s annual forum in Davos, which brings together top-level political and business leaders.’

‘This year’s meeting, from Jan. 17-20, is expected to be dominated by discussion of public hostility toward globalization and the rise of U.S. President-elect Donald Trump, whose tough talk on trade, including promises of tariffs against China and Mexico, helped win him the White House.’

“It is both the West’s moral obligation and (only) feasible choice to turn the tide and work with the developing world - to make painstaking reforms on domestic and global governance systems for a fairer world - if they want to keep their interests and competitiveness intact,” Xinhua said in an commentary.’

‘The article called the election of Donald Trump, the British vote to leave the European Union and Italian Prime Minister Matteo Renzi’s resignation “mind-boggling symptoms of (the) current globalization”.

‘Xinhua also hit back at those within the developed world who say emerging economies are stealing jobs and resources. “These people, also among the biggest beneficiaries of globalization, are only endeavoring for a cozier seat on the irresistible journey of this ‘bullet train’,” it said.’

‘Xi will deliver a speech on the first day of the forum promoting a message of “inclusive globalization” and will warn against populism, Chinese officials said on Wednesday.’

Comment by Ben Jones
2017-01-13 07:22:25

‘The ‘party of Davos‘ wakes up to the new, new world order’

‘Election wins for Donald Trump and Philippine President Rodrigo Duterte, as well as the U.K.’s vote to leave the EU, were widely seen as a rejection of current socio-economic models. Populism became a key story of 2016 and will be front and center in Davos ahead of elections this year in France, Germany, the Netherlands and most likely Italy.’

‘In a nod to this current mood, this year’s World Economic Forum (WEF) is titled “Responsive and Responsible Leadership” and its official agenda describes a “weakening of multiple systems” that has eroded confidence and speaks of a possible “downward spiral” fuelled by protectionism, populism and nativism.’

‘Indeed, some critics have attacked the event itself as being a reason why U.S. citizens started to question globalization and contemplate the negative impacts it’s had on some parts of Western nations.’

“(People) have witnessed the rise of the Davos class, a hyper-connected network of banking and tech billionaires, elected leaders who are awfully cosy with those interests (neoliberal policies), and Hollywood celebrities who make the whole thing seem unbearably glamorous,” Naomi Klein, an author and social activist said in an opinion piece for The Guardian newspaper just a day after Trump’s victory in November. ‘

‘She claimed that neoliberalism has nothing to offer for the pain of growing debts and people’s feelings of powerlessness. “Neoliberalism unleashed the Davos class. People such as Hillary and Bill Clinton are the toast of the Davos party. In truth, they threw the party,” she later added in the piece.’

‘This anger at the so-called Davos class is nothing new. In a presentation at the Vatican in 2014, Steve Bannon, the incoming chief strategist and senior counselor for the Trump presidency, said the working men and women in the world were “tired of being dictated to by what we call the party of Davos.”

‘More fixes and solutions will develop over the coming days as the Davos debate heats up in the freezing cold mountains of Switzerland. But for some established lawmakers and business executives, any answers will come far too late.’

Comment by snake charmer
2017-01-13 10:18:20

Shakira is going to be there. It will be the highlight.

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Comment by cactus
2017-01-13 10:36:57

LSD Microdosing: The New Job Enhancer In Silicon Valley And Beyond”

Davos? Burning man? Washinton DC ?

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Comment by PitchforkPurveyor
2017-01-13 17:32:32

Decades of “trickle down” just ain’t tricklin’ down.

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Comment by palmetto
2017-01-13 07:35:03

yeah, Xi, I got your grobarism right here:

https://www.youtube.com/watch?v=sH8sSKwS_gU

(reposting again natty’s youtube vid of the little emperors and empresses on the loose in CA, livin’ the good life while the citizens of their country choke to death on globalist smog. And they have no water, either.)

Mark my words, Xi is going to double down and demand that the US remediate the effects of pollution on the country. Or he’ll kill us.

Comment by Ben Jones
2017-01-13 08:02:10

The myth of the mighty Chinese is long gone. The globalist media really worked at that one. Take Xi: he never has a bad hair day, always shown statesman like in a fancy suit and expensive shoes on his little feet. He can’t even clean up the smog in one city without shutting down every factory and ordering the cars to be still. No, this myth was Dan’s fantasy and it was bull-hockey all along.

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Comment by palmetto
2017-01-13 08:10:12

Heh, I understand that Chinese oligarchs are making YUUUGE investments in Hollywood. And interestingly, a bunch of Congresscritters have their undies in a wad about it. Something about national security. Why the concern, I wonder? Could it be true that they don’t want the Chinese cutting in on their propaganda action?

And why isn’t Meryl Streep getting up on her hind legs over the way China treats its citizens, about the pollution and the water? Hmm? How about it, Meryl?

 
Comment by Ben Jones
2017-01-13 08:46:35

‘WEF, which has a number of other conferences around the globe each year, does in fact bring together an incredibly impressive group of world leaders to discuss problems and find solutions. Like every year, the attendance list at this meeting is amazing: China’s president Xi Jinping, Joe Biden, John Kerry, Al Gore, IMF head Christine Lagarde (despite her recent travails), as well as scads of high-profile business people like Dave Cote of Honeywell, Marc Benioff of Salesforce and Lloyd Blankfein of Goldman Sachs.’

‘President-elect Donald Trump isn’t going—it’s not really his scene (more on that below). WEF does have its detractors, of course. Some say the meetings are really just ineffectual gatherings for the global elite to bloviate and pontificate.’

It’s just a bunch of posing losers, and the media eats it up with a spoon. I’m sure they will go on and on about global warming, but Xi will be sitting there in his Italian shoes while millions at home can’t breath. Take this pollution: they can build nukes but they don’t know how to get rid of smog? Every developed country in the world has known how to tackle smog for decades. It’s obvious this third world economy would grind to a halt if they simply tried to make the air safe to breath.

 
Comment by Blue Skye
2017-01-13 09:03:03

We can all help them clean up their air by not buying their throwaway crap.

 
Comment by palmetto
2017-01-13 09:12:50

“It’s obvious this third world economy would grind to a halt if they simply tried to make the air safe to breath.”

Yeah, kind of like what they say would happen if the FED raised interest rates.

 
Comment by Ben Jones
2017-01-13 09:28:21

Let’s look at the central bank: for years, and with trillions of phony money, “we can’t get inflation up!” Trump hasn’t even been in office yet and inflation expectations are way up. Why? Because he’s bringing WAGE inflation, the only real inflation there is. Recall Obama’s “magic wand” speech. “Wattcha gonna do?” Well first you have to actually want to keep jobs in the US. It’s not difficult after all. Wages go up. Reduce illegal immigration and wages go up.

Globalists want jobs to leave the US. They want to bring down our standard of living. Now they are sitting around Davos, eating $40 hotdogs and wondering why history has left them in the dustbin.

 
Comment by palmetto
2017-01-13 09:30:00

Anyway, it’s worth mentioning that globalization and the China trade is nothing new. In the 1600s, the pottery industry was almost wiped out on the European continent by Dutch trading companies that brought back cheap blue and white wares from China. The upside was that lower income families who formerly could not afford the more expensive European wares were now able to eat off halfway decent plates and pour water from decent pitchers.

Of particular note, many of the Chinese wares were in fact well made and useful to families with a number of children, since they did not chip at the drop of a hat like many European wares. The decoration tended to be a bit more crude than Europeans were used to, but for the families that benefited from owning the wares, they were a godsend.

In the end, it’s also worth mentioning that it wasn’t the Chinese who almost put the European potteries out of business, but the European traders who imported the stuff. Much like today.

 
Comment by palmetto
2017-01-13 09:50:51

Heh, here’s a bit on China money in Hollywood. ROFL, they had it coming.

http://www.hollywoodreporter.com/news/what-chinas-money-stream-stops-flowing-hollywood-963107

Eat doody, Hollywood snowflakes. They’ll be terking yer jerbs, jerbs that you might actually want. Meet your new key grip, Hu Flung Pu. Wow, that lighting crew, not a round-eye in the bunch, how did that happen? Teamsters? We don’t need no steenkeen Teamsters. Wanna fight? Go ahead, Chinese gangs will give ‘em a run for their money. Meet Suzie Wong, head of the props department, which by the way is now staffed by members of her extended family. Here comes Katie Perry, Hillary shill extraordinaire, making her entrance on a zip line above the adoring crowd. Oops, it snapped! Gasp, wha’ hoppen? Velly solly.

 
Comment by MightyMike
2017-01-13 11:11:37

And why isn’t Meryl Streep getting up on her hind legs over the way China treats its citizens, about the pollution and the water? Hmm? How about it, Meryl?

She’s concerned about her own country. She’s not a globalist. Let the Chinese take care of their own problems. They have 3 Trillion bucks sacked away. They can handle it.

 
Comment by palmetto
2017-01-13 11:26:11

hey, Whopper.

 
Comment by Ben Jones
2017-01-13 13:51:35

‘Joe Biden, John Kerry, Al Gore’

‘(People) have witnessed the rise of the Davos class, a hyper-connected network of banking and tech billionaires, elected leaders who are awfully cosy with those interests (neoliberal policies), and Hollywood celebrities who make the whole thing seem unbearably glamorous’

Funny how these old irrelevant “progressive” white guys flit around the globalist bulb like moths. And all these years we’ve been told, “Republicans like to bring in cheap labor, bah!” Now you have a guy that’s going to put an end to it and crickets. A guy that’s standing up for labor and all the Democrats can do is whine. Everybody that’s against globalism and these “elite” billionaires should pick up a pitchfork and help chase them out of power for good.

 
2017-01-13 16:00:57

The only thing he’s putting an end to is he and his Goldman buddies not having as much money as they’d like.

 
Comment by Panda Triste
2017-01-13 19:50:10

“And all these years we’ve been told, “Republicans like to bring in cheap labor, bah!” Now you have a guy that’s going to put an end to it and crickets. A guy that’s standing up for labor and all the Democrats can do is whine.”

January 13, 2017

 
Comment by Professor Bear
2017-01-14 06:53:54

“Globalists want jobs to leave the US. They want to bring down our standard of living.”

Maybe this time is different, but protectionism worked out badly for the U.S. during the early 1930s.

Those who fail to learn from history are doomed to repeat it.

 
Comment by Carl Morris
2017-01-14 12:37:00

“And all these years we’ve been told, “Republicans like to bring in cheap labor, bah!” Now you have a guy that’s going to put an end to it and crickets. A guy that’s standing up for labor and all the Democrats can do is whine.”

Once upon a time I had a left friend who lived in San Francisco. She liked and supported illegal aliens. She thought everyone who disagreed was racist. I pointed out that it had to be lowering the wages of working Americans at least a little. She said it couldn’t be much. I found studies that showed it was about $2/hr for the poorest working Americans. She scoffed and said that’s nothing. I pointed out it was about 20% of their income, which was even worse than if I took 20% of hers, and I knew she would consider that a lot.

At that point she finally tired of logic and admitted she just liked the illegal aliens more because they were so polite and compliant…not obnoxious like those entitled redneck Americans who needed to learn their place. Conversation over, nothing else to say. Now we have Trump.

 
 
 
Comment by palmetto
2017-01-13 07:40:31

In a way, I ALMOST hope Xi ratchets up the saber rattling, because it would be a good excuse to empty the country of Chinese nationals.

And I’d ALMOST trade a Mexican amnesty for emptying the US of Asian nationals permanently.

Comment by oxide
2017-01-13 08:41:45

They can take all the cheating Chinese students with them.

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Comment by palmetto
2017-01-13 09:11:09

Heh, I’m tellin’ ya. I remember reading an article some years back about a Chinese educational institution that tried to crack down on cheating, forbidding students to bring electronic devices into the exam room. Their families were outside the school, waiting to receive questions from their progeny. I swear, you can’t make this stuff up. The families threw a hissy fit, almost rioting because cheating wasn’t going to be allowed. The attitude was that cheating was a “right” that their children should not be deprived of. It’s more or less institutionalized.

I recall an interview that Comey gave on some show or another, where he said the worst offenders in terms of hacking were the Chinese. And he said it wasn’t that they were particularly good at it, the problem was that there was so much of it and so many of them doing it.

 
Comment by cactus
2017-01-13 10:50:17

They can take all the cheating Chinese students with them.”

so that’s why they can’t do anything with their masters degrees in electronics.

yea its pretty bad they study the SAT and ACT tests starting in junior high but can’t figure out how to do anything but memorize stuff. Pretty good at copying stuff though..

 
Comment by oxide
2017-01-13 12:14:15

cactus, you missed some articles from a couple months ago. Years ago, Chinese students were the super-smart grad students we’re familiar with. Now, they are marginal students with no English at all who are admitted to American undergrad schools simply because they have enough money to pay full freight tuition. No pesky scholarships or financial aid.

When they get here, they simply email their assignments to companies in China who do the homework for them and email it back. If allowed, they will even email test/quiz questions to family waiting outside the school, as Palmetto posted.

Problem is, the US doesn’t allow cell phones in their tests, so they can’t take the tests remote, and that’s where they are caught cheating.

The SAT and ACT are all rampant cheating too. Just hire a professional test-taker and bribe the proctors to look the other way.

 
Comment by snake charmer
2017-01-13 12:38:38

On the subject of politicized hacking, note that few American politicians and media bring up the Stuxnet worm that we unleashed on Iran.

 
Comment by redmondjp
2017-01-13 14:57:05

It was no different when I was in engineering college back in the late 1980s. Most of the Chinese students sat right up in the front row, and when asked if there were any questions, one of them invariably asked: “What is right answer?” which elicited a chorus of laughs.

But they weren’t joking!

 
Comment by cactus
2017-01-13 17:14:26

yes I did miss that. oldest has applied to 4 UC schools which have become very hard to get into for various reasons.

Spent a little time on College confidential. kids are getting hammered as space shrinks and costs soar.

 
Comment by snake charmer
2017-01-13 18:29:58

It’s amusing walking around many college campuses these days. With the gleaming new expensive facilities and more under construction, you’d think we’d entered a golden age of teaching. We haven’t. We’ve entered a golden age of university administrators. Also amenities.

 
 
Comment by In Colorado
2017-01-13 11:00:31

In a way, I ALMOST hope Xi ratchets up the saber rattling, because it would be a good excuse to empty the country of Chinese nationals.

I love how they’re trying to intimidate us with their vintage, soviet era aircraft carrier.

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Comment by snake charmer
2017-01-13 12:41:42

It indeed is funny, but I love how we try to intimidate with our aircraft carriers. In a shooting war against a real opponent those would have a lifespan measured in days, if not hours.

 
Comment by In Colorado
2017-01-13 15:04:16

Which is why we don’t use them against real opponents.

 
 
 
Comment by In Colorado
2017-01-13 10:55:43

The “bullet train” of globalization is broken and the West is obliged to help Chinese President Xi Jinping fix it, China’s official Xinhua news agency on Friday

We’re “obliged”?

Everyone wants to be a net exporter. While they’re at it they can demand that all children be above average.

Comment by PitchforkPurveyor
2017-01-13 17:37:47

That’s why globalism doesn’t work. It can never be fair and equitable.

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Comment by Professor Bear
2017-01-13 07:24:15

Has a global Minsky moment arrived for rental housing?

Comment by Ben Jones
2017-01-13 07:29:13

A lot of this rental property is speculative housing:

‘Faced with this stark reality, Oyedele had no choice but to convince the property owners to take a 30 per cent cut in rent if they desired to still have the buildings occupied.’

‘Across capitals, developers’ have sought to remedy supply imbalances by targeting foreign buyers, especially from China, in the hope they will absorb excess housing stock. The strategy wasn’t working because Asia-based and local banks were clamping down on foreign lending, Mr Ryder said. ‘Someone needs to rent those homes too but vacancies are on the way up in most inner city areas,’ he said. BIS Shrapnel analyst Angie Zigomanis agreed foreign buying was decreasing, resulting in softer demand overall. ‘Foreign buying was at a peak 18 months ago but it’s been in decline since then’

Comment by palmetto
2017-01-13 07:44:44

“Oyedele had no choice but to convince the property owners to take a 30 per cent cut in rent if they desired to still have the buildings occupied.’

In the US, it doesn’t seem to matter if buildings are occupied or not, given all the shadow inventory out there “owned” by the banks. I wonder if the same thing will happen with luxury apartment complexes. (Short answer: yup)

 
 
 
Comment by Ben Jones
2017-01-13 07:54:01

‘So we’re finally beginning to see something we haven’t seen in years in the multifamily market, and that’s concessions, things like free month’s rent, move-in specials, different things,’ he said. ‘You haven’t seen any of that because it’s been such a landlord’s market.’

People who say apartments have always offered concessions are just wrong. I can remember talk of bidding wars for California rentals around a year and a half ago.

’something we haven’t seen in years in the multifamily market, and that’s concessions’

Comment by Blue Skye
2017-01-13 09:12:57

multifamily market

A time bomb for the banks?

 
Comment by CHE
2017-01-13 13:46:13

I live in a mid 1960s building in West Hollywood. It’s well maintained but nothing spectacular.

Not too long ago a friend of mine was looking to move and they had ONE bedrooms going for $2400.

Just 5 years ago my two bedroom was $2400.

I’ve also noticed a lot of turn over in our neighbors.

Right before the New Year, a pretty passive-aggressive note was posted excessively across the complex reminding people that even though the 1st was a Sunday and 2nd was a Holiday, they STILL had to pay rent by the 3rd. Anything beyond that they said would be an automatic 3 day pay or quit notice.

Our building manager always makes it a point to thank us for paying rent on time. It seems that many of the residents are playing the game and constantly late with rent.

Me thinks rents are up against a wall and probably slated to drop if they want to regular rent checks.

Comment by Ben Jones
2017-01-13 14:03:28

What I learned was these guys who arbitrarily raise rents cuz they can are shooting themselves in the foot. A tenant will sign up for rents they can’t afford. (Kind of like how most loan-owners will take as big a loan as someone will give them). I see apartment applicants who were paying 50% plus of their gross income in rent in a previous lease. I could rent out any house or apartment in a day if I took the first person willing to sign. If you build/buy this thing that has to have ridiculously high rents, you are boxed in. They are gasping for air and we haven’t even had a recession yet. When these tenants start coming to the office with pink slips, concessions won’t save the owners.

 
Comment by Rental Watch
2017-01-13 14:19:36

Being in LA, you are protected under rent control, right?

My guess is that the owner wants any excuse to kick a tenant out if they are under-market (thus the posted notices). They will be more patient if someone is a late payer, but is paying closer to market.

The property manager would prefer to not deal with the turnover.

Is that consistent with your observations?

 
 
 
Comment by Ben Jones
2017-01-13 07:57:28

‘an unprecedented glut as thousands of properties across the country remain unsold, abandoned and uncompleted. Mass homelessness is now a common feature in all metropolitan areas, and infrastructure problems continue to escalate’

Lagos, the most expensive residential real estate in summer 2014, is an example of a recession with oversupply. All these other markets, NYC, Miami, London, Hong Kong, Vancouver BC, Australia, have arrived at oversupply prior to recession. But a recession is coming and Lagos shows us what happens when it does.

 
Comment by snake charmer
2017-01-13 08:07:02

“[T]housands of properties across the country remain unsold, abandoned and uncompleted. Mass homelessness is now a common feature in all metropolitan areas … [.]”
___________________________/

There was a great article a couple years ago featuring some white elephant residential projects in Africa. It identified one feature of the global economy as houses without people and people without houses. But there’s no problem here, right central bankers?

Comment by PitchforkPurveyor
2017-01-13 17:42:56

“It identified one feature of the global economy as houses without people and people without houses. But there’s no problem here, right central bankers?”

They’ll laugh about the cannon fodder, behind closed doors in Davos, clinking their cocktail glasses together while waxing poetic about their grand accomplishments.

 
 
Comment by jerzdebil
2017-01-13 08:19:24

Cupcakes sure in fear of a Trump presidency - heard on the radio some local idiots saying they cant allow it. These people need a curb stomping.

This is what they fear, the use of a cartoon frog as a tool to mock their (and other) ludicrous notions
https://www.youtube.com/watch?v=QM0VyoVsCYg

Comment by Blue Skye
2017-01-13 09:20:16

We’ve taken a lot of abuse, and can’t afford any more cupcakes.

Comment by new attitude
2017-01-13 10:35:42

A cupcake once said, “Merryl Streep stop it, you are overrated!”

 
 
 
Comment by The Enrager
2017-01-13 09:17:56

Ben Jones…… frantically and furiously serving up crow round the clock to meet record demand.

Eat up my good friends. Eat up.

 
 
Comment by Ben Jones
2017-01-13 09:32:43

‘US watched ISIS rise in Syria and hoped to ‘manage’ it — Kerry on leaked tape’

‘Wikileaks tweeted about the tape last week, spiking interest in the matter. The audio has received a fair amount of attention on some rightwing blogs, who call Obama a traitor for supporting ISIS. That exaggerates what is on the tape. On the left the references have been intermittent so far. Joe Lauria at Common Dreams correctly summarized the conversation: “Secretary of State John Kerry said the U.S., rather than seriously fight Islamic State in Syria, was ready to use the growing strength of the jihadists to pressure Assad to resign…”

‘This left libertarian site also seized on the gist: “Leaked Tapes Reveal John Kerry Admission That U.S. Was Pulling For ISIS In Syria, Russia Fighting Terror”

‘Mark Ames— “How is this Kerry recording not a major scandal? The cynicism is stunning”

‘Even NBC’s Bill Neely has picked up on the disturbing content of the audio: “Why #Russia intervened in #Syria, by John Kerry. And why the US watched #ISIS rise & wanted to use it.”

‘This is puzzling. One would expect the MSM to suppress the really interesting parts which go against the narrative usually pushed, which is one where we are the undoubted good guys, if somewhat feckless, and the Russians are pure evil. But why hasn’t it gotten more attention on the left? You aren’t going to find a better case against our intervention in Syria than the one made by Kerry here.’

First rule of ending the head choppers: stop giving them arms and money.

Comment by Apartment 401
2017-01-13 09:53:34

John McCain and Lindsey Graham want World War III.

Comment by The Enrager
2017-01-13 10:04:39

What color skirt is Lindsay wearing today?

Comment by new attitude
2017-01-13 10:36:44

Lindsey G is the GOP poster boy.

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Comment by The Enrager
2017-01-13 12:00:37

It’s your kind of crowd Lola.

 
Comment by new attitude
2017-01-13 12:41:27

Not a fan of the GOP, they spend too much and have no fresh ideas.

Trump Recession 2017 on it’s way

 
Comment by The Enrager
2017-01-13 13:16:19

You’re a fiscal conservative after all.

 
Comment by Ben Jones
2017-01-13 13:21:08

Ha ha, Natty Ice Dude got emailed a meme! Bzzzz! Wrong, ain’t gonna work. Here’s why: Trump got out bigly ahead of this saying it was a big-fat-bubble in 2015. So when these bubbles pop (bonds look like they already have), all he has to do is show a chart to point out when they formed, and bam! Democrats will run like cucarachas!

The other reason it won’t work: you are losers. Obama is a loser (he made this election a referendum on his own damn self) and he backed a loser in Screech, which you did too, so therefore you are a loser. Losers don’t write history, winners do. So for the next 8 plus years, every single thing that goes wrong will be blamed on Obama and the Democrats! I didn’t like Bush, but that’s what we’ve had to put up with for the last 8 years and turnaround is fair play, no?

BTW, anyone else notice Mike never, ever says a thing about this guys constant racist comments? Hmmm.

 
Comment by Apartment 401
2017-01-13 13:45:06

I post this as a reply to all the Trump bashing posts and links I see every day on Fakebook: Donald Trump has successfully achieved the only things I wanted from him, the political extermination of Jeb Bush and Hillary Clinton.

Thanks again Ben, it’s gonna be a wild ride for the next eight years 8)

 
Comment by CHE
2017-01-13 13:55:01

^^^ Not only did he got out in front of it by calling it a bubble, he also attacked Yellen and Interest Rate policies in one of the debates - I think in September.

 
Comment by new attitude
2017-01-13 15:39:55

Who cares? Just bring on the recession and lower prices. I’m in it for da money, not supporting any lame team or blind faith in anyone.

Blame it on Eisenhower….
The blame game is a lame game.

 
Comment by Ben Jones
2017-01-13 15:44:07

‘I’m not supporting any lame team’

Uh, that’s practically all you do.

 
Comment by new attitude
2017-01-13 15:48:04

Lindsey G

OK, I’ll stop judging people….

 
Comment by Panda Triste
2017-01-13 20:18:25

“I didn’t like Bush, but that’s what we’ve had to put up with for the last 8 years and turnaround is fair play, no?”

Bush was a loser. Obama was a loser. Trump will be a loser.

Tax Freedom Day in 1979 was April 22. It’s come later every year since.

http://taxfoundation.org/article/tax-freedom-day-2016-april-24

Hard to believe that every President since Carter has been a bigger loser.

 
Comment by Ben Jones
2017-01-13 20:27:33

‘Trump will be a loser.’

This is your opinion and you know what they say about those and assholes.

 
Comment by Professor Bear
2017-01-14 10:13:21

“Opinions are like assholes. Everybody’s got one and everyone thinks everyone else’s stinks.”

 
 
 
Comment by palmetto
2017-01-13 10:23:53

“John McCain and Lindsey Graham want World War III.”

Well, of course they do. It’s like Viagra to them. All those videos of death and destruction make their putters flutter.

 
 
Comment by 2banana
2017-01-13 12:20:19

Corruption to the bone.

Obama’s true legacy.

 
Comment by rms
2017-01-13 13:37:09

Joe Lauria at Common Dreams correctly summarized the conversation: “Secretary of State John Kerry said the U.S., rather than seriously fight Islamic State in Syria, was ready to use the growing strength of the jihadists to pressure Assad to resign…”

This is what AIPAC wanted… pressure on Assad. John Kerry’s job was to implement this wish using Saudi money and Libyan weapons.

 
Comment by Raymond K Hessel
2017-01-13 17:18:15

ISIS and their supporters need to be exterminated, root and branch.

 
 
Comment by Palm Beach County
2017-01-13 09:35:43

TRD South Florida ‏@trdmiami 7m7 minutes ago

Chinese foreign investment to drop: report

 
Comment by Palm Beach County
2017-01-13 09:37:22

Correction:

Chinese foreign investment to drop: report
Government think tank estimates that direct investments will drop to $118B
January 13, 2017 11:15AM
https://therealdeal.com/miami/2017/01/13/chinese-foreign-investment-to-drop-report/

 
Comment by cactus
2017-01-13 10:26:23

Can’t sell your farm land and you have to pay higher water rates, that’s kinda crappy.

“Some agricultural customers said they feel trapped by the passage of the county and city’s Save Open Space and Agricultural Resources ordinances. Because they’re now limited with what they can do with their properties and the steep increase in water rates means a one-two punch to their bottom lines, they said, residential customers should step up and help farmers pay for their increased water costs.

“There’s no recognition of the fact that every tree that we have is an oxygen machine,” said Daryl Smith, owner of Adaboy Acres in Moorpark. “Yet everybody wants us to keep farming, the (water) rates go up (and) it’s unsustainable for us to continue in this manner. Somebody has to pay. (For) all the people that voted for SOAR, there’s not added pressure or financial burden put upon them, yet they reap all the benefits.”

Comment by new attitude
2017-01-13 12:20:41

Why dont they just raise their prices instead of looking for a handout?

Comment by Prime_Is_Contained
2017-01-14 15:51:13

Maybe the rest of the producers don’t have the same tax/cost structure—e.g. they won’t be competitive if they do?

 
 
Comment by 2banana
2017-01-13 12:22:13

Liberals will wonder where all the farms went.

And then demand another government program.

 
 
Comment by new attitude
2017-01-13 10:40:18

In Mexico you can get quality medical care for a fraction of what it costs in the US.

Yes, foreign countries have been an option for 30 yrs. See Prague for high quality, low cost.

Why is this time different?

Comment by 2banana
2017-01-13 12:46:47

Because obamacare made it illegal to import medicine or go across state lines?

 
 
Comment by lawguy
2017-01-13 11:55:27

Trump making history . . . as least popular incoming president.

http://www.cnbc.com/2017/01/13/unpopular-out-of-the-gate-trump-making-history-one-more-time.html

Comment by Ben Jones
2017-01-13 13:04:18

Here’s the poll that counts:

Example

Comment by lawguy
2017-01-13 13:34:27

Not really. If he remains unpopular going forward, it will hamper his ability to work with Congress — remember Rs in Congress don’t like him much more than Ds. He can only get so much done without congressional help. I like how all polls are “fake” except the ones that support DJT. Good stuff . . .

Comment by Ben Jones
2017-01-13 13:39:34

‘all polls are “fake” except the ones that support DJT’

It’s gonna be real enough to put him in the White House. What are all those other polls going to do?

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Comment by lawguy
2017-01-13 14:03:07

Probably show declining popularity. But we’ll see. Maybe he’ll surprise us.

 
Comment by oxide
2017-01-13 14:21:12

Trump’s unpopularity is a real detriment for him, unfortunately. Yes he won the election, but the Congressional R’s still hate him, possibly enough to turn on him. Trump has quite a few foreign dealings and appearances of conflict of interest. If Congress truly banded together in a smoke-filled room, they could probably trump-up (so to speak) some of those issued into a real potential for impeachment.

Congressional R’s would want nothing more than to kick out Trump and install Mike Pence, who would rubber stamp anything the establishment wants: more globalism, more privatization, more cheap illegals, more wars for the defense industry, etc.

The election doesn’t stop on Election Day.

 
Comment by Ben Jones
2017-01-13 14:32:28

‘more globalism, more privatization, more cheap illegals, more wars for the defense industry, etc’

Screech is gone. What’s going to matter is jobs, jobs, jobs. When a bill is introduced that will add jobs in Ohio, or Pennsylvania or Michigan, how do you suppose they’ll vote? Do you think they don’t know about the county results I posted above?

 
Comment by Ben Jones
2017-01-13 14:42:23

I forgot to add: Trump has laws on the books to deport illegals if he wants to. Because congress always hid behind that without enforcing them. And on trade he doesn’t need congress to renegotiate WTO/NAFTA or tear em up. Congress left these trade deals off their plate so they could whine knowing the president would keep globalism going, until now.

 
Comment by Blue Skye
2017-01-13 15:47:41

Trump was elected by outsiders. There are enough of them, and in my own opinion if he keeps talking to the people there will be more by the day, that blocking reform will be political suicide for congress critters.

 
Comment by Panda Triste
2017-01-13 22:01:24

“Trump has laws on the books to deport illegals if he wants to.”

He also has laws on the books to penalize employers who pay employees who can’t legally work in the USA.

 
Comment by oxide
2017-01-14 06:15:02

I hope so, Ben and Blue. If I recall, under Obama, the GOP tried to pass an “enforce the existing laws”-type bill for illegal immigration, but it was shelved by Harry Reid. McConnell will likely let it proceed far enough to get a LOT of attention in the news. They might be able to get it past Senate filibuster on reconciliation. Trump of course would sign it in a heartbeat and AG Sessions (or any other GOP AG) would happily sic Justice right on it.

The ongoing problem is that Trump is about jobs jobs jobs. The GOP Congress is about stockholders stockholders stockholders. It’s very hard to reconcile the two.

I still tell my SJW acquaintances that they need to work on Congress and not worry about Trump. Trump is the only thing between them and privatized Medicare.

 
Comment by Prime_Is_Contained
2017-01-14 15:56:37

Because congress always hid behind that without enforcing them.

It has never been the job of Congress to enforce the laws, Ben—that falls squarely in the realm of the Executive Branch.

And on trade he doesn’t need congress to renegotiate WTO/NAFTA or tear em up.

Great point! And that would be amazing!

 
 
 
 
Comment by 2banana
2017-01-13 13:13:57

More fake polls?

 
Comment by DJT
2017-01-13 13:20:49

The only winner here is me. And I’m living in your head rent-free.

Comment by lawguy
2017-01-13 14:02:07

You’re already violating WH policy. It’s like you don’t even know your own job description. LOL.

http://thehill.com/blogs/blog-briefing-room/news/314103-trumps-ll-bean-tweet-breaks-wh-policy

Comment by oxide
2017-01-13 14:41:30

Oh. So that was the hubbub over LLBean. So, how much of LLBean’s stuff is made in China?

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Comment by phony scandals
2017-01-13 19:57:39

“Oh. So that was the hubbub over LLBean”

If “hubbub” means hissy fit then yes.

 
 
Comment by Carl Morris
2017-01-13 15:41:04

You’re already violating WH policy.

I don’t go for overreaching…like the president thinking that anything he does is by definition legal, or constitutional. But in this case…the president really DOES define WH policy, do they not? Seems to me for that policy it doesn’t matter how we’ve always done it before.

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Comment by palmetto
2017-01-13 17:04:16

“lawguy”

Bwahahahahah! OMG, a member of a profession that has so badly schatt itself that it’s beneath contempt. Just a bunch of grifters looking to get a leg over, whether it’s in the hallowed halls of gubbermint or the back room at Comet Pizza.

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Comment by Blue Skye
2017-01-13 17:53:18

Dumbass is not a profession.

 
Comment by palmetto
2017-01-13 18:39:57

Heh, Pompousass isn’t, either. Speaking of pompous, have you seen any of the confirmation hearings? I haven’t really been following them, but I’ve caught a few snippets here and there.

Whew, I’ve never seen such a bunch of self-congratulatory, circle-jerking jackals in my entire life.

And I apologize for the vulgarity, because you are a gentleman, Blue. As is our intrepid blogger Ben.

 
 
Comment by phony scandals
2017-01-13 18:54:24

“You’re already violating WH policy. It’s like you don’t even know your own job description. LOL.”

Obama: I’ll Buy A Chevy Volt After My Presidency Ends

Nikki Gordon-Bloomfield
17Feb 29, 2012

“Five years from now when I’m not president anymore, I’ll buy one and drive it myself,” Obama promised 1,600 auto workers at a United Auto Workers union event in Detroit on Tuesday.

“Yes, that’s right,” he reiterated, accompanied by deafening applause.

http://www.greencarreports.com/news/1073508_obama-ill-buy-a-chevy-volt-after-my-presidency-ends

“We strictly forbade this when I was in the White House for the President and everyone else,” Norm Eisen, Obama’s former ethics czar, told Politico. “How can you ask others to follow it if he doesn’t?”

Politico reported that such a tweet would violate a White House policy prohibiting the endorsement of products.

The Office of Government Ethics prohibits executive officials from using their position to endorse organizations, products or people, a regulation that President Obama extended to include presidents themselves.

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Comment by phony scandals
2017-01-13 20:02:34

I like the next story down better.

:)

“In fact, if we can confirm the intelligence report’s conclusion that Putin intervened with the goal of electing Trump, there must be a new election in the United States.”

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Comment by Professor Bear
2017-01-14 10:14:42

It doesn’t matter. If the President does it, it is legal.

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Comment by phony scandals
2017-01-13 16:29:30

“Trump making history . . . as least popular”

“A new poll from”

Hold your breath!

Stamp em! Stamp em!

Boycott LL Bean :)

LMAO

Listen to your leader and get out there and talk to people. I did today and they are laughing at you and your lefty partners terrible 2s Trump temper tantrums.

Comment by Raymond K Hessel
2017-01-13 17:20:42

I just placed an order with L.L. Bean. Quality clothes at good prices.

Comment by palmetto
2017-01-13 18:11:25

Love the stuff. I like to find LL Bean clothing and other items at thrift stores and garage sales, especially the older things that are still in good shape.

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Comment by phony scandals
2017-01-13 18:39:31

I don’t know those snowflakes look like they mean business. :)

allisun @oweatherwatcher

I’m about to find and throw out the L.L. Bean backpack I had throughout elementary school

https://twitter.com/realdonaldtrump/status/819541997325316096
10:44 AM - 12 Jan 2017
49 49 Retweets 167 167 likes

 
Comment by new attitude
2017-01-13 18:41:44

I’ve had an LL Bean down vest for 12 yrs.

 
Comment by palmetto
2017-01-13 18:52:33

Used to be they didn’t allow a student to enroll at Greenwich Country Day unless they had a Bean canvas barn jacket.

 
 
 
 
 
Comment by SW
2017-01-13 12:56:15

“Miami Realtors freak out”

Great headline.

McCabe said the Miami market will continue to experience strong price declines in the luxury condo sector this year. Further hurting sales is competition between developers and their customers who have already closed on their units and are putting them back on the market. “They have to compete with investors in their own buildings who will be willing to substantially reduce their prices,” McCabe said. “A lot of developers who predicted strong profits will see those profits eaten up quickly when they have to cut prices on the remaining units of a new building.”

http://www.foxbusiness.com/features/2017/01/13/miami-realtors-freaking-out-after-luxury-condo-market-stalls.html

Comment by Ben Jones
2017-01-13 13:05:58

Note: the word bubble is not in this report. They all say it’ll be down 40%, but won’t use that word.

Comment by SW
2017-01-13 19:16:06

Like you said earlier today Ben, just wait until the recession hits. This is gonna be eye popping.

Comment by Ben Jones
2017-01-13 19:40:35

It’s already down 20%. Another 40% and it’s not a bubble?

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Comment by new attitude
2017-01-13 13:13:50

ACA creators:

The Senate Finance Committee held meetings from June to September 2009 to develop the health care reform bill, according to the finance committee’s website. Present at those meetings were Democratic senators Max Baucus, Jeff Bingaman and Kent Conrad and Republican senators Mike Enzi, Chuck Grassley and Olympia Snowe, but there is no single author of the bill. It was a collaboration of Senate Democrats and Republicans, members of the House of Representatives, the late Sen. Edward M. Kennedy and other interested parties.

passed by exploiting political ignorance

 
Comment by Palm Beach County
2017-01-13 13:28:29

Mark Hanson ‏@MrMarkHanson 1h1 hour ago

MIAMI CONDO-PANIC: 40% PRICE CRASH COMING? I’ve been analyzing this market closely for 2 YRS. 40% is my peg as well.

 
Comment by Senior Housing Analyst
2017-01-13 13:45:42

Ashland, OR Housing Prices Crater 6% YoY

http://www.zillow.com/ashland-or/home-values/

 
Comment by rms
2017-01-13 13:46:52

“By this time next year, the 15-year real estate veteran expects the average price for a condo in Miami Beach’s hottest neighborhood to drop by more than 40 percent than it is today.”

We gotta silence this guy… shut him up! —NAR

 
Comment by Rental Watch
Comment by cactus
2017-01-13 17:28:33

The global average concentration of CO2 in Earth’s atmosphere is currently about 0.04%,[16] or 400 parts per million by volume (ppm).[10][17] There is an annual fluctuation of about 3–9 ppm which is negatively correlated with the Northern Hemisphere’s growing season. The Northern Hemisphere dominates the annual cycle of CO2 concentration because it has much greater land area and plant biomass than the Southern Hemisphere. Concentrations reach a peak in May as the Northern Hemisphere spring greenup begins, and decline to a minimum in October, near the end of the growing season.[18]

CO2 its what plants crave

 
 
Comment by In Colorado
2017-01-13 15:13:44

Even the media is admitting that average people can’t save up for a down payment:

http://money.cnn.com/2017/01/13/real_estate/down-payment-income/index.html

This of course probably means that they will bump up FHA loan limits even more.

Comment by Big Fat Ugly Bubble
2017-01-13 17:18:41

And the possible return of the liar loans. Like up in Canada it’s becoming a significant thing now. The other day there was a report saying the #1 complaint was prices were too high, and 13% believed it was OK to lie on their loans to get the house they want. The true number is probably greater.

 
 
Comment by In Colorado
2017-01-13 15:25:24

Paul Ryan is on the news claiming that there won’t be any mass deportations.

Short of Congress passing a veto proof amnesty bill, I don’t see how Ryan or anyone in congress will be able to stop it.

Comment by 2banana
2017-01-13 17:16:39

The laws are already on the books.

Laws that obama refused to enforce.

Now think about DJT doing the obama.

Making up laws he wished he had.

Ignoring laws he doesn’t like.

Using the IRS and EPA to go after political enemies.

And blaming someone else for 8 years for all his problems.

Democrats made the bed. Now they are about to sleep in it…

 
Comment by Panda Triste
2017-01-13 19:57:11

“I don’t see how Ryan or anyone in congress will be able to stop it.”

Article I of the Constitution. President can’t do anything if there’s no money for it. And the money comes from

Congress.

Comment by oxide
2017-01-14 06:28:39

Trump has a bully pulpit, or, a bully smartphone. If he spends the next two years tweeting about how Congress is refusing him his wall and his deportations, Congress might just get a fright in 2018.

Comment by The Enrager
2017-01-14 08:43:20

And most importantly, he has free rent in tens of millions of empty skulls.

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Comment by In Colorado
2017-01-14 09:44:34

Agreed. Defunding the Border Patrol could come back to haunt a bunch of congress critters in 2018.

Also, notice how quickly congress folded with the proposed ethics relaxation bill

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Comment by Carl Morris
2017-01-14 12:42:17

Congress might just get a fright in 2018

If they kill Obamacare and don’t provide anything for the people who will be hurt by that 2018 will be 1994 in reverse.

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Comment by The Enrager
2017-01-14 19:49:14

There is only help from repeal. The harm occurred when the disastrous law was promulgated.

 
 
 
 
 
Comment by Big Fat Ugly Bubble
2017-01-13 16:27:54

This cute little kid even has the stamping of the feet. MikeyMook and friends, this is for you.

https://www.youtube.com/watch?v=t7z5y6UG5X8

Comment by azdude
2017-01-13 17:22:04

stated.income.instant equity

 
 
Comment by azdude
2017-01-13 16:59:52

Retail investors will be holding the bag again, I GUARANTEE IT!

Comment by Ben Jones
2017-01-13 17:25:33

Calgary’s empty downtown spurs push for economic summit to …
Calgary Herald-Jan 12, 2017
Nearly one-third of downtown office space is vacant, a major issue impacting … fixes like repurposing empty offices into incubator spaces or residential housing, …

Comment by Ben Jones
2017-01-13 18:06:09

Retailers Reap Lower Rents as the Worst Malls Get Worse
TheStreet.com-5 hours ago
Silverman said some of the retailers that may be able to negotiate their rent expense down include Gap; Victoria’s Secret parent L Brands; Ascena Retail (ASNA) …

Comment by Ben Jones
2017-01-13 18:13:31

China overtakes US in screens but cinemas sit empty
New Jersey Herald-5 hours ago
So few people come to watch films here that the theater manager rents out the … a ticket-collector lying down watching films on his phone are signs something’s …

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Comment by Ben Jones
2017-01-13 18:18:25

Greece Tipped Over …
Huffington Post-2 hours ago
However, there is an over-supply of buildings with no tenants, therefore rents will continue to drop, and with dropping rents, dropping values. Rents in Class A …

 
Comment by azdude
2017-01-13 19:04:10

global debt orgy

 
 
 
 
 
Comment by The Enrager
2017-01-13 17:27:34

unprecedent_housing_bubble_collapse_2016

 
Comment by Big Fat Ugly Bubble
2017-01-13 17:35:09

This was making the rounds yesterday. It is what the MSM and all the democrats are realizing about themselves after this election. Heheh.

https://www.youtube.com/watch?v=jYmn3Gwn3oI

Comment by palmetto
2017-01-13 18:56:52

I really liked that show.

Comment by Big Fat Ugly Bubble
2017-01-13 19:36:51

Yeah, back then, I saw a few of the episodes but not that one, so it was new to me. Hilarious, when put in the context of MSM/CNN/etc..

It’s really telling — the contrast of how much times have changed. They would NEVER allow a scene like that to be on television these days.

 
 
 
Comment by Raymond K Hessel
2017-01-13 17:55:12

Why is it that every time the gold-collar criminals of the Davos elite come up with “solutions” at their yearly confabs, the 99% end up worse off?

http://www.marketwatch.com/story/davos-elite-promise-global-solutions-but-theyre-part-of-the-problem-2017-01-05?link=MW_latest_news

 
Comment by azdude
2017-01-13 17:56:35

wall street is full of promoters and swindlers.

 
Comment by Raymond K Hessel
Comment by 2banana
2017-01-13 18:50:31

obama pardon comimg….

 
Comment by Professor Bear
2017-01-14 06:46:39

Maybe if Trump tweets enough about his former opponent’s questionable activities, he can shift the spotlight of public scrutiny away from his own.

Comment by palmetto
2017-01-14 08:16:43

Ask, and ye shall receive:

Looks like Wikileaks is about to drop another load:

https://twitter.com/wikileaks/status/820021862931591168

Project Veritas, too:

https://twitter.com/Project_Veritas?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

Can’t wait until Monday.

In the meantime, PB, you oughta be thanking Trump for bringing the rains to California and filling the reservoirs.

Comment by Professor Bear
2017-01-14 10:16:12

It’s obvious at this point that he was right about the California drought being a hoax.

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Comment by Raymond K Hessel
2017-01-13 18:40:50

Have the HBB’s resident progressives ordered their hammer & sickle hoodies?

https://www.theguardian.com/world/2017/jan/13/kim-kardashian-and-the-fashionistas-drop-the-hammer-and-sickle

 
Comment by Big Fat Ugly Bubble
2017-01-13 18:46:11

Well here’s one that’s housing related. From Denver, the renovation frenzy.

http://www.denverpost.com/2017/01/12/denver-in-a-renovation-frenzy/

“American Housing Survey numbers released this month from the U.S. Census Bureau show that 69.3 percent of homeowners in metro Denver reported making some kind of improvement the prior two years.”

“One explanation is that the big rise in home prices in metro Denver generated equity that homeowners could tap to improve their properties, while low interest rates made borrowing that money relatively affordable.”

So, 70% of Denver homeowners went into even more debt in the past 2 years. Hooray.

Comment by phony scandals
2017-01-13 19:53:26

“70% of Denver homeowners went into even more debt in the past 2 years”

Why they did that?

Comment by Big Fat Ugly Bubble
2017-01-13 20:15:48

Why did they do that? I don’t know, maybe their houses were rotting and needed it. Or maybe they just wanted nicer stuff, but didn’t actually save money for it. Debt is easier.

Sometimes when I browse zillow for potential towns to live in, there’s many neighborhoods and houses built in the 20’s and 30’s. Yes, some have been renovated inside, but I think — “why?”. Just bulldoze and start over. You don’t want to live in a house stained by the psychic impressions of a hundred years’ worth of people living inside. Bad vibes.

 
Comment by Big Fat Ugly Bubble
2017-01-13 20:54:12

I think they just wanted the granite countertops and stuff.

70% of them suddenly deciding to do “renovations” — in the past 2 years? I don’t think they all came to a coincidental conclusion that their older houses built in older times needed structural work done.

They just wanted nice stuff, and took out a bunch of debt for it, because free money.

Comment by Carl Morris
2017-01-14 12:46:52

They just wanted nice stuff, and took out a bunch of debt for it, because free money.

People like nice stuff. But what REALLY motivates them is thinking about how valuable it’s going to make their house. We’re all gonna be rich, I tell you.

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Comment by Big Fat Ugly Bubble
2017-01-13 21:46:48

We need all that free money too.

What’s going to happen if it goes away? All those renovators and people — no more work for them. bye bye.

 
 
Comment by In Colorado
2017-01-13 22:23:13

“American Housing Survey numbers released this month from the U.S. Census Bureau show that 69.3 percent of homeowners in metro Denver reported making some kind of improvement the prior two years.”

That’s a bit vague. Painting a bedroom or replacing a kitchen faucet would count as “making some kind of improvement”. The article would have been more useful had it said how much was spent on average.

 
 
Comment by Senior Housing Analyst
2017-01-13 19:26:11

Alameda, CA Housing Prices Crater 16% YoY

http://www.movoto.com/alameda-ca/market-trends/

Comment by Senior Housing Analyst
2017-01-14 06:40:21

Correction: Prices UP 3% YoY

 
 
Comment by phony scandals
2017-01-13 19:51:52

They’re out there and they’re angry.

I don’t think they’re going to be able to handle it.

I’m surprised the CNN guy made it through the Presser.

Comment by palmetto
2017-01-14 08:02:20

I just don’t understand why they’re so angry. Especially in California, where Trump brought the rains, ended the drought and filled the reservoirs. You’d think they’d be grateful, but no, they’d rather struggle with the insane dictates of Sacramento.

 
 
Comment by Raymond K Hessel
2017-01-13 19:55:23

Oh Dear. Suzanne’s research gave no indication NYC real estate “investors” and FBs are facing a schlonging.

http://www.zerohedge.com/news/2017-01-13/new-york-real-estate-prices-plunge-4q-listing-days-and-discounts-soar

 
Comment by In Colorado
2017-01-13 22:32:48

Colorado property taxes to drop in 2017. This is on top of TABOR.

http://www.denverpost.com/2017/01/13/tax-soaring-home-values-colorado/

“Colorado homeowners will get a tax break, thanks to TABOR’s lesser-known cousin. But local governments will be squeezed.”

“Since 2003, the assessment rate for residential properties has been unchanged, at 7.96 percent of market value. Next year, according to a study released Friday by the Department of Local Affairs, that’s projected to drop to 6.56 percent. Local officials apply that rate to their tax levies to calculate how much property owners owe.”

“In places that can’t adjust their tax levies to compensate, that would represent an 18 percent drop in residential tax collections, not accounting for any growth in the local housing market.”

Comment by phony scandals
2017-01-14 08:00:01

You will be paying 6.56 percent of market value?

Comment by In Colorado
2017-01-14 09:46:24

No, the assessment is 6.56% of market value. I paid less than 1/2% tax on market value last year.

 
 
 
Comment by In Colorado
2017-01-13 22:41:21

They got half of it right:

Metro Denver home prices are more overvalued than at any time since the early 1980s, but the chances of them declining over the next two years remains low, according to the Arch Mortgage Insurance Risk Index.

http://www.denverpost.com/2017/01/12/metro-denver-home-prices-overvalued/

If there really is minimal risk of price drops then they aren’t overvalued. And since we know they are overvalued …

 
Comment by Professor Bear
2017-01-14 06:37:41

Nothing against Realtors, but why throw away 6% on commission if 2% will get it done much faster?

https://sandiego.rexchange.com/sd?utm_source=goo&utm_medium=sem&utm_campaign=sd_fsbo_display&utm_content=moneybetter&gclid=CP2X4vDfwdECFUW1wAodtxUGBg

 
Comment by azdude
2017-01-14 06:49:36

my banker cant resist my equity.

 
Comment by Professor Bear
2017-01-14 07:03:47

Don’t you just love the moment when a roller coaster comes to rest at the top of a very large hill?

MarketWatch dot com
Investors are bracing for a massive stock-market selloff
By Joseph Adinolfi
Published: Jan 13, 2017 4:48 p.m. ET
Demand for February VIX calls with lofty strike prices has increased in the past week

 
Comment by phony scandals
2017-01-14 08:21:50

Small business owners I have talked to are really upbeat and looking forward to a Donald Trump administration.

Comment by Professor Bear
2017-01-14 10:17:12

Same here.

Comment by rms
2017-01-14 14:31:46

“Same here.”

Was there a large empty pea pod next to your bed? :)

 
 
 
Comment by phony scandals
2017-01-14 08:37:14

Another Headline from lawguy’s rag.

Evidently Fake News is pissed about being told to fetch the Cheetos.

CNN in Trump’s crosshairs

BY JONATHAN EASLEY AND JOE CONCHA

http://thehill.com/homenews/media/314239-cnn-in-trumps-crosshairs

 
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