You don't need to read Barry Ritzholtz to know that the rebound in the housing market is not a true rebound at all.
I got this ad in email.
The business transactions of hotels normally go through commercial brokers, even if a hotel is going into foreclosure. I have never seen it go to public auction.
Commercial brokers usually have a network of buyer and sellers in order to make a sale happen. But if they are going to these lengths to a sell a property of this magnitude, it just goes to show that no one has any money to even think of having a meeting of the minds.
This is a casting call for a new HGTV series that was emailed to me.
HGTV’s new series "Uprooted" is looking for high-energy home buyers who are saying goodbye to their hometowns, totally picking-up, and moving to a new place where everything is different. Whether they’re moving from the mountains to the ocean, a major city to the country, or making a move overseas, HGTV wants to hear your story.
In order to qualify: • you must have begun the closing process on their new home or will be closed mid September '09 • your old home must not immediately be occupied (unless current residents would allow filming) • you must not be moving because of retirement or military reasons. • Price range must be between 400k to 1 million.
We are especially looking for families moving to or from one of the following locations: • California • New York • Hawaii • Oregon • Colorado • New Mexico • Texas
Candidates and realtors who are chosen for the show will receive compensation.
If you have the perfect clients and want to be on the show, e-mail casting(AT) departure-films.com
Please include -your contact info -where you are moving from -where you are moving to -when you are are moving
This is going to be an amazing show because right now due to foreclosures, unemployment and a horrible economy, there is a growing population making the decision to pull up roots. I think the fact they are offering compensation will have applicants coming in droves.
Historically, I think it is important to document this trend that is occurring in our society. I already heard of one story about a couple who left their home in Rye for greener pastures and now live in Colorado. Of course their house is still on the market waiting to get sold. And I have heard chatter of many people living in NYC who have to leave due unemployment and the cost of living rising against them.
So don't be surprised to see the topic of pulling up roots showing up in film and television. It will be part of the pop culture lexicon for quite awhile.
Few economists expect the country to return to the relatively flat income distribution of the 1950s and 1960s. Indeed, they say that inequality is likely to remain significantly greater than it was for most of the 20th century. The Obama administration has not proposed completely rewriting the rules for Wall Street or raising the top income-tax rate to anywhere near 70 percent, its level as recently as 1980. Market forces that have increased inequality, like globalization, are also not going away.
But economists say that the rich will probably not recover their losses immediately, as they did in the wake of the dot-com crash earlier this decade. That quick recovery came courtesy of a new bubble in stocks, which in 2007 were more expensive by some measures than they had been at any other point save the bull markets of the 1920s or 1990s. This time, analysts say, Wall Street seems unlikely to return soon to the extreme levels of borrowing that made such a bubble possible.
Like the real estate market, it is unlikely they will be making a comeback overnight.
But if the rich have done well in bubbles, they have taken enormous hits to their wealth during busts. A recent study by two Northwestern University economists found that the incomes of the affluent tend to fall more, in percentage terms, in recessions than the incomes of the middle class. The incomes of the very affluent — the top one ten-thousandth — fall the most.Over the last several years, Mr. McAfee began to put a large chunk of his fortune into real estate, often in remote locations. He bought the house in New Mexico as a playground for himself and fellow aerotrekkers, people who fly unlicensed, open-cockpit planes. On a 157-acre spread, he built a general store, a 35-seat movie theater and a cafe, and he bought vintage cars for his visitors to use.
He continued to invest in financial markets, sometimes borrowing money to increase the potential returns. He typically chose his investments based on suggestions from his financial advisers. One of their recommendations was to put millions of dollars into bonds tied to Lehman Brothers.
One of the key ways that the rich become richer is through OPM. In order to play in the big leagues, they have to bring big money. If they do not have the big money, they align themselves with someone who has deep pockets. It is a usually reliable system. But when it breaks down like it is right now, everyone gets hurt.
In a nutshell what Karen Weaver is saying is the following:
Foreclosure rates in the U.S. remain near record highs. More than 13% of American homeowners with a mortgage are either behind on their payments or in foreclosure. The latest report from the Mortgage Bankers Association, released today, shows the percentage of loans that entered the foreclosure process dipped slightly to 1.36%, down from an all-time high of 1.37% in the first quarter.
However, that number may soon rise again as mortgage delinquency rates continued to climb in the second quarter.
That news is no surprise to Karen Weaver of Deutsche Bank. She startled everyone a few weeks ago when she predicted that, by 2011, nearly half of American mortgage holders would be underwater (meaning that they'll owe more on their mortgages than their houses were worth).
This is just further evidence that any talk to recovery is premature. In fact the next wave of foreclosures could be far more devastating since it will be accompanied by the credit card meltdown.
We also have to remember that there is a significant amount of inventory from houses to condo to dead malls that are remaining stagnant. Real estate and mortgages are going to have a crippling effect on our economy for quite sometime.
If you are not aggressive in your savings and frugality, this is the time to do it. That means reducing your expenses and looking for added value in all your purchases. So cut to the bone. I know I am. More on that later.
As for buying a place. I still think buyers are going to be in the driver's seat for a long time coming. So feel free to take your time. Sellers, if you need to take a hit, then take a hit on the price. If you have the financial and mental wherewithal to stick around then wait. But it will be a long wait my friends.
New figures showing a decline in wholesale prices and a drop in new-home construction highlighted how weak the economy remains, even as some optimists declare the recession to be over.
Producer prices fell more than expected in July as the costs of food and energy slipped, the Labor Department reported on Tuesday. The 0.9 percent monthly decline came after three months of increases, and suggested that demand was weak up and down the ladder of production, from consumer goods to intermediate goods like chemicals and rubber to raw materials.
Producer prices declined a record 6.8 percent from last July, when crude oil prices soared above $145 a barrel and pushed the costs of fuels, food and other products sharply higher, before they fell back amid the global financial crisis. The decline in the last 12 months is the largest drop in 60 years, since the government starting keeping such records.
So-called core prices excluding food and energy costs fell 0.1 percent, their second monthly decline of the year.
The figures offered more evidence that inflation remains a distant concern for the American economy, even as some investors speculate that higher oil prices, rising interest rates and a weaker dollar are in the pipeline, a result of the government’s enormous recovery programs.
On Friday, the government reported that consumer prices were unchanged in July from a month earlier and were down sharply from a year ago, reflecting the drop in gasoline and transportation costs. Economists say that there is still tremendous slack in the economy, and that wages are likely be flat over the next few months as unemployment ticks up.
“The economy remains weak and even as it begins to recover, the amount of excess capacity is high,” said Peter Kretzmer, senior economist at Bank of America.
The word delicate is probably an understatement. We are barely digging ourselves out of this mess. That is why whenever I heard people screaming that the recession is over and happy days are here again, I just want to scream.
So clip your coupons. Live frugally and save your money for the next cycle.
The New York Times published an article on how homeowners are put in the cobra clutch because of property taxes. What is happening now is that owners have are having to choose between paying the mortgage or their property taxes. And those who chose to pay their mortgages have tax liens filed against them. Tax Bills Put Pressure on Struggling Homeowners
Hard times are causing more homeowners to fall behind on their property taxes. But in thousands of cases, they are not responsible to their local governments, but to private companies that charge double-digit interest and thousands of dollars in service fees.
This is because in recent years struggling cities and counties have sold their delinquent tax bills to the highest bidder. It seemed a painless way to turn old debts into cash to finance schools or public services.
But housing advocates say the private companies may be exacerbating the foreclosure crisis, pushing out homeowners faster than would governments, which are increasingly concerned about neighborhoods becoming wastelands of abandoned properties.
“In the beginning, you’re getting this immediate windfall of cash,” said Anita Lopez, the auditor of Lucas County, Ohio, which sold off more than 3,000 tax liens for $14.7 million. The county includes Toledo. “But when you think about abandoned properties, foreclosed properties — the cost to the community is far more expensive than the short-term benefits.”
Investors say the arrangement actually benefits everyone. School districts, fire departments and public parks get an infusion of cash. The investors take on a risky but potentially high-yielding investment. And taxpayers do not have to pick up the slack from scofflaw landlords or tax evaders.
Governments, of course, can charge interest and penalties too, and they foreclose on properties for back taxes. But governments charge interest rates that are half what private investors charge — often offering no-interest payment plans — and are also more likely to be concerned about the long-term prospects of neighborhoods.
In the world distress properties, tax liens are a very lucrative industry. Private investors will swoop in and buy the liens and then take over payments from the homeowner while making money off the interest. Like mortgages, often these lines are packaged into some type of investment product and sold off or traded.
One of the key advantages of buying a tax lien is that the holder is the first in line when a property is auctioned off.
About two years ago before the s**t really hit the fan one developer who specializes in distressed properties told me that the banks in Florida were compiling a list of real estate developments and watching very closely because once they went into default, they were going to shopping. But now these lenders are freaking out because now they are the owners of these properties which is something they do not want.
The same goes for investors in tax liens. The last thing they want to is to become owners of the properties because it means they have to spend more money and time taking care of these properties. This is still a very lucrative industry, however you need to be very selective in where you invest.
Apparently this was due to human error. Another reason why all homeowners should invest in an alarm system so you can prevent this type of stupidity. And a 12 gauge.
By now we all have heard about the store owner who had to use deadly force to protect himself and his employees from 4 robbers. The result was two dead robbers and two wounded robbers.
I strongly concur with Ray Kelly , Mr. Augusto was completely justifed in his actions. He was literally put in a position where it was himself and his employees or the robbers.
What I find ironic is that many aspects of what I blogged about are issues that Mr. Augusto are dealing with and took the proper actions in acquiring and using his shotgun.
If you look at the comments I got reamed pretty badly for it. And I responded to those comments with this entry.
I DO NOT BELIEVE IN GUN CONTROL NOR DO I BELIEVE IN ANTI-GUN CONTROL.
I BELIEVE IN GUN SAFETY.
What is Gun Safety? In my opinion it is that all gun owners should be properly trained in the use of a firearm. They should also be educated in the laws pertaining to gun ownership, the psychological, emotional and mental trauma associated with using a firearm in self defense situation. They should also be aware of how to protect their finances in case the hostile parties involved with the situation decide to pursue legal action against them.
Whether a gun owner owns a .38 snub nose or a has a garage full of M-60s is their business. But they need to understand the responsibilities they are undertaking by owning a gun.
I am not a gun expert nor am I lawyer but in my opinion this was a text book righteous shoot. The hostile party entered his premise with the intention of causing harm. He pleaded for them to leave and gave them the option to walk away. They chose to escalate it by attacking one of his employees. His only response was to shoot.
Mr. Augusto was completely in the right for the following reasons.
1. The robbers announced and displayed their intention that they were committing a crime. They weren't just mouthing off, they were armed and made it clear they wanted rob the store.
2. The robbers entered Mr. Augusto's store when he shot them. Mr. Augusto did not shoot them outside his store. If he had done that, he would have been in the same jam as Mr. White.
3. Mr. Augusto actually asked them to leave. Even though they were brandishing a weapon, he would have been justified to whip his shotgun and start blasting.
4. He had a permit for his shotgun. Unlike Mr. White, Gus had a legal firearm.
5. Gus shot three times and only one of the robbers was armed. This was not excessive, in fact it was necessary. Only one gun was displayed, but there was a possibility that the others were armed but were concealing their weapons. Gus needed to be thorough.
From the all of the interviews I read, Gus had no desire to fire his weapon and was heart broken over what occurred. In fact he stated that he knows how it feels to lose a loved one to firearms because his son took his own life with a gun.
What also concerns me is that the family members of the robbers will decide to pursue legal action against Gus despite the fact this was a legal shoot and their boys were the ones at fault. I think it is highly unlikely this will occur because the backlash would be huge however it is a possibility so I hope Gus has consulted a lawyer in protecting his finances.
I think Winchester's sales have gone through the roof because the shotgun used was about 20 years old and probably the shells were the same age. If this is not the greatest advertisement for reliability, I don't know what is.
Shotguns are excellent firearms because you do not need to aim, all you have to do is point in the general direction of your target and the spread will hit them. Sometimes you do not even need to use it.
The pump action sound alone is enough to make criminals turn and walk away because there is no sound like it in the world.
There are some positive aspects to this incident. First of all criminals are now going to think twice about robbing stores because they have no idea what might be hiding behind the counter. Business owners, particularly those that deal with cash, will now have a better idea how to protect themselves and following the law in the use of deadly force.
In terms of real estate, that block has now become the safest block in Manhattan. Because of the reputation alone, no one will be stupid enough to f**k around in that area.
As for the robbers, I have no sympathy for them. These idiots were fully aware of what they were doing, they were given an out without any bloodshed and when they decided otherwise, their fates were sealed. I feel horrible for their families, because nobody wants that for their kin. But those robbers made the decision to walk the path of violence.
