Apr 06

- Zillow Study Shows 1 in 3 Homes are Unaffordable, Meanwhile Vacation Home Sales Soar (Liberty Blitzkrieg, April 5, 2014):

In a further demonstration of the socially destructive and ever widening gap between the haves and have nots, we see that the affluent are buying second homes at an ever increasing clip (up 30% last year), while first home buyers recede into the abyss as private equity and Chinese buyers make purchasing a home unaffordable for the average American.

Specifically, a recent study from Zillow showed that more than half the homes in seven major American cities are unaffordable based on historical standards. Those cities are: Miami, Los Angeles, San Diego, San Francisco, Denver, San Jose and Portland, Ore. Nationwide, it found that 1 in 3 homes were unaffordable. The results seem to back up housing analyst Mark Hanson’s recent conclusion that despite low interest rates, housing is even less affordable than the most bubbly year ever, 2006.

This also appears to be a primary reason behind Zillow now actively pitching its U.S. real estate listing to the Chinese, many of whom are corrupt and looking to launder ill gotten gains.

First, from Housing Wire: Continue reading »

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Apr 03

The-United-States-A-Colony-Of-China

- The Chinese Are Acquiring Large Chunks Of Land In Communities All Over America (The Truth, March 31, 2014):

Has the United States ever experienced a time when a foreign nation has attempted to buy up so much of our land all at once?  As you will read about in this article, the Chinese are on a real estate buying spree all over America.  In fact, in some cases large chunks of land are actually being given to them.  Yes, you read that correctly.  China is on the way to becoming the dominant land owner in the entire country, and that is starting to alarm a lot of people.  Do we really want a foreign superpower to physically own so much of our territory?

There are some that are playing down this threat by making a distinction between the Chinese government and Chinese corporations, but things work differently over in China than they do here.  In China, the government is involved in everything.  In fact, 43 percent of all corporate profits in China are produced by companies that the Chinese government controls.  And all of the rest of the companies are very careful to follow the lead and direction of the Chinese government.

Continue reading »

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Apr 03

H/t reader M.G.:

“Another story from the UK Guardian….about Detroit. This is happening all over America while our corrupt leaders fiddle………”


A vacant and blighted home on Detroit's east side
A vacant and blighted home on Detroit’s east side. Photograph: Reuters

- The death of a great American city: why does anyone still live in Detroit? (Guardian, April 3, 2014):

The city’s social contract was shredded long ago and everyone knows time is running out – but some Detroiters have hope

Khalil Ligon couldn’t tell if the robbers were in her house. She had just returned home to find her front window smashed and a brick lying among shattered glass on the floor. Ligon, an urban planner who lives alone on Detroit’s east side, stepped out and called the police.

It wasn’t the first time Ligon’s home had been broken into, she told me. And when Detroit police officers finally arrived the next day, surveying an area marred by abandoned structures and overgrown vegetation, they asked Ligon a question she often ponders herself: why is she still in Detroit?

Continue reading »

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Mar 27

- China’s Credit Pipeline Slams Shut: Companies Scramble For The Last Drops Of Liquidity (ZeroHedge, March 27, 2014):

One of our favorite charts summarizing perfectly the Chinese credit bubble, better than any other, is the following which compares bank asset (i.e., loan) creation in China vs the US.

US vs China Bank Assets

It goes without saying that while the blue line has troubles of its own (namely finding the proper rate of liquidity lubrication to keep over $600 trillion in derivatives from collapsing into an epic gross=net garbage heap), it is the red one, that of China, where $1 trillion in credit was created in the fourth quarter alone, that is clearly unsustainable for the simple reasons that i) China will quickly run out of encumbrable assets and ii) the bad, non-performing loan accumulation has hit an exponential phase, which incidentally is why Beijing is scrambling to slow down the “flow” from the current unprecedented pace of $3.5 trillion per year.

Continue reading »

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Mar 26

- China’s Yuan Drops Most In A Week As Property Developers Tumble (ZeroHedge, March 25, 2014):

When we left China last night, it was all shits and giggles that bad news is great news and a Chinese stimulus plan will be here any minute to save the day. Having realized the sad fact that is not going to happen (as we explained here most recently) and the specter of banks runs looming, this evening’s session has seen property developer stocks tumble – retracing all of last night’s losses – the Yuan plunges by the most in a week back above 6.2150. Copper is holding in for now at the magic $300 level but corporate bond prices are falling once again (worst run in 4 months).

The Yuan is dumping at its fastest rate in a week…erasing all the hope-strewn gains from yesterday

20140325_CHIN1

Property Developers are taking it on the chin…

20140325_CHIN2

And it’s no wonder, as Bloomberg notes… Continue reading »

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Mar 23

- Which Firm Controls “The World’s Most Powerful Address”? (ZeroHedge, March 23, 2014):

For the answer of which firm is responsible, and has the largest number of current and former tenants occupying the building located at 15 CPW which we profiled before, and which Bloomberg TV defines as the “world’s most powerful address” – a location whose residents control nearly half a trillion in assets under management – fast forward to 3:20 in the clip below. Hint: listen for the “dog whistle.” 

(click here if the video does not appear)

For those curious, here are some additional facts about 15 CPW courtesy of Curbed. Continue reading »

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Mar 22

The £250MILLION home - London house set to become UKs most expensive property ever sold as it is put up for sale
The £250MILLION home: London house set to become UK’s most expensive property ever sold as it is put up for sale

- IMF’s Property Tax Hike Proposal Comes True With UK Imposing “Mansion Tax” As Soon As This Year (ZeroHedge, March 22, 2014):

One could see this one coming from a mile away.

It was a week ago that we highlighted the latest implied IMF proposal on how to reduce income inequality, quietly highlighted in its paper titled “Fiscal Policy and Income Inequality“. The key fragment in the paper said the following: Continue reading »

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Mar 20

- Stick A Fork In The “Housing Recovery” (Spoiler Alert: Blame Record Student Debt) (ZeroHedge, March 20, 2014):

The chart below from Bank of America – showing the progression of first-time US homebuyers in recent months – should scare everyone who still believes that there is some sort of “housing recovery” in the US.

First Time Homebuyers

Continue reading »

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Mar 19

- China’s Housing Problem In One Chart (ZeroHedge, March 19, 2014):

The one problem with every Ponzi scheme is that it must constantly grow, in both demand and supply terms, for the mass delusion to continue. The other problem, of course, is that every Ponzi scheme always comes to an end…. which may have just happened in China where as the chart below shows, as of this moment at least, the supply side to the Chinese housing ponzi (and recall that in China the bubble is not in the stock market like in the US, but in housing) has slammed shut.

China housing starts

Source: BofA

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Mar 18

- Yuan Tumbles To 11-Month Lows As China Home Price Growth Slows (ZeroHedge, March 17, 2014):

It would appear that the widening of the daily trading bands (we discussed last night) are having a directional effect on USDCNY as the devaluation continues on the back of forced carry-trade unwinds. At 6.19, CNY is its weakest in 11 months (2.5% weaker than its lows in January) and the last 2 months have seen by far the biggest weakening in the currency on record. This ‘implied’ easing is modestly supporting the stock market and copper for now (though we suspect that is more spillover from risk-on squeezes post-Ukraine). While Goldman and BofA are adamant that widening the bands will not mean a change in trend overall, it seems clear that hot money is outflowing and driving a trend change anyway as corporate bond prices are not rising and home-price appreciation is slowing in the major cities.

USDCNY drops 100 pips to 6.19 – lowest in 11 months…

20140117_cny

Continue reading »

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Mar 16

- If You Are Considering Buying A House, Read This First (ZeroHedge, March 15, 2014):

In September of 2011, when looking at the insurmountable debt catastrophe that the world finds itself (which has only gotten worse in the past several years) we warned that “the only way to resolve the massive debt load is through a global coordinated debt restructuring (which would, among other things, push all global banks into bankruptcy) which, when all is said and done, will have to be funded by the world’s financial asset holders: the middle-and upper-class, which, if BCS is right, have a ~30% one-time tax on all their assets to look forward to as the great mean reversion finally arrives and the world is set back on a viable path.”

Two years later, the financial asset tax approach, in the form of depositor bail-ins, was tried – successfully (as there was no mass rioting, no revolution, in fact the people were perfectly happy to accept the confiscation of their savings) – in Cyprus, further emboldening the status quo, in this case the IMF, to propose, tongue in cheek, that the time has come for the uber-wealthy to give back some (“it’s only fair”), and to raise income taxes through the roof (which of course would mostly impact the middle class as the bulk of current income for the 1% is in the form of dividend income, ultra-cheap leverage extraction on assets and various forms of carried interest).

And now, a new tax is not only on the horizon but coming fast and furious to allow the insolvent global regime at least one more can kicking: one which will impact current and future homeowners across the world.

But first, let’s step back. Continue reading »

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Mar 09

Obama-declares-economic-war-on-China


Added: Mar 7, 2014

Executive Order — Blocking Property of Certain Persons Contributing to the Situation in Ukraine

Executive Order — Blocking Property of Certain Persons Contributing to the Situation in Ukraine

EXECUTIVE ORDER – – – – – – – BLOCKING PROPERTY OF CERTAIN PERSONS CONTRIBUTING TO THE SITUATION IN UKRAINE

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), section 212(f) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1182(f)), and section 301 of title 3, United States Code,

I, BARACK OBAMA, President of the United States of America, find that the actions and policies of persons — including persons who have asserted governmental authority in the Crimean region without the authorization of the Government of Ukraine — that undermine democratic processes and institutions in Ukraine; threaten its peace, security, stability, sovereignty, and territorial integrity; and contribute to the misappropriation of its assets, constitute an unusual and extraordinary threat to the national security and foreign policy of the United States, and I hereby declare a national emergency to deal with that threat.

I hereby order:

Section 1. (a) All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person (including any foreign branch) of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: any person determined by the Secretary of the Treasury, in consultation with the Secretary of State: 

Continue reading »

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Feb 21

- Non-Existing Home Sales Miss Expectations, Plunge 14% From Highs, Drop To 18 Month Low (ZeroHedge, Feb 21, 2014):

Existing home sales plunged 5.1% (considerably worse than the 4.1% drop expected) to its lowest level in 18 months. This extends the string of missed expectations to 5 months as even the ever-credible NAR chief economist said it was not the weather but “we can’t ignore the ongoing headwinds of tight credit, limited inventory, higher prices and higher mortgage interest rates.” First-time homebuyers plunged to a mere 26% of the total – the lowest share on record as all-cash (and spec) investors rose to a record 53% share of sales.

Existing home Sales

Key highlights from the report: Continue reading »

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Feb 16

- Foreigners Bought Half Of All London Homes Selling For Over £1 Million (ZeroHedge, Feb 16, 2014):

Actually, according to the first detailed estimate of international purchase activity in London by Knight Frank, the percentage of all central London homes that sold for more than 1 million pounds to foreigners in the 12 months through June 2013, was 49% to be exact. And as we showed yesterday when we put China’s loan creation in the context of US and Japanese QE, keeping in mind the use of proceeds of all this newly created inside money has to ultimately go somewhere – that somewhere in this case being London and other global luxury real estate, said percentage is only going to get higher. Especially when one adds Russian, the middle east and other various regions whose oligarchs are desperate to park their money in “safe” havens.

Half London Luxury Properties_0

Some other findings from the Knight Frank report: Continue reading »

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Feb 15

- “Foreclosure Rebound Pattern”: Foreclosure Starts SUDDENLY Jump 57% in California (And Soar In Much Of The Country) (Testosterone Pit, Feb 14, 2014):

From Federal-Reserve-fueled bubble to debilitating return to reality – reality being a financial calamity – to Federal-Reserve-hyper-fueled bubble: that’s the US housing market over the last ten years. There are many places around the country, including some cities in Silicon Valley, where home values are now higher than they were at the peak of the last bubble. Of course, no one at the Fed or in government calls it “bubble.” They’re talking about the housing “recovery.”

Continue reading »

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Feb 15

20 Signs That The Global Economic Crisis Is Starting To Catch Fire

- 20 Signs That The Global Economic Crisis Is Starting To Catch Fire (Economic Collapse, Feb 14, 2014):

If you have been waiting for the “global economic crisis” to begin, just open up your eyes and look around.  I know that most Americans tend to ignore what happens in the rest of the world because they consider it to be “irrelevant” to their daily lives, but the truth is that the massive economic problems that are currently sweeping across Europe, Asia and South America are going to be affecting all of us here in the U.S. very soon.  Sadly, most of the big news organizations in this country seem to be more concerned about the fate of Justin Bieber’s wax statue in Times Square than about the horrible financial nightmare that is gripping emerging markets all over the planet.  After a brief period of relative calm, we are beginning to see signs of global financial instability that are unlike anything that we have witnessed since the financial crisis of 2008.  As you will see below, the problems are not just isolated to a few countries.  This is truly a global phenomenon.

Over the past few years, the Federal Reserve and other global central banks have inflated an unprecedented financial bubble with their reckless money printing.  Much of this “hot money” poured into emerging markets all over the world.  But now that the Federal Reserve has begun “tapering” quantitative easing, investors are taking this as a sign that the party is ending.  Money is being pulled out of emerging markets all over the globe at a staggering pace and this is creating a tremendous amount of financial instability.  In addition, the economic problems that have been steadily growing over the past few years in established economies throughout Europe and Asia just continue to escalate.

The following are 20 signs that the global economic crisis is starting to catch fire: Continue reading »

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Feb 10

Wealth destruction:

In my opinion a high-end London property is an excellent investment if you want to lose all your money.

London is one of the last places you want to be when the SHTF and the entire financial system collapses.


- Next wave of super-rich heading for London as new crises bite (Reuters, Feb 7, 2014):

Political and financial upheaval in some of the world’s largest emerging economies is driving a new wave of rich migrants to London’s supercharged property market as a place to park their wealth, data from a leading real estate agency showed on Friday.

Knight Frank, a specialist in upmarket properties, said it had seen online enquiries about British homes from crisis-hit countries such as Argentina, Ukraine and Turkey soar over the past year.

“There is potentially a further wave of investment headed for the prime central London property market,” Tom Bill, associate in the Knight Frank residential research team, told Reuters.

Continue reading »

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Feb 08

- 4th Financial Services Executive Found Dead; “From Self-Inflicted Nail-Gun Wounds” (ZeroHedge, Feb 7, 2014):

The ugly rash of financial services executive suicides appears to have spread once again. Following the jumping deaths of 2 London bankers and a former-Fed economist in the US, The Denver Post reports Richard Talley, founder and CEO of American Title, was found dead in his home from self-inflicted wounds – from a nail-gun. Talley’s company was under investigation from insurance regulators.

Via The Denver Post,

Richard Talley, 57, and the company he founded in 2001 were under investigation by state insurance regulators at the time of his death late Tuesday, an agency spokesman confirmed Thursday.

It was unclear how long the investigation had been ongoing or its primary focus.

A coroner’s spokeswoman Thursday said Talley was found in his garage by a family member who called authorities. They said Talley died from seven or eight self-inflicted wounds from a nail gun fired into his torso and head.

Continue reading »

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Feb 05

- WTF Chart Of The Day: Spanish “Recovery” Edition (ZeroHedge, Feb 5, 2014):

The following chart of Spain’s housing market really speaks for itself, and certainly conflicts with Rajoy’s promises that not only is the recession in the country over but it is recovering.

Spain housing

And for those unconvinced, here are some additional thoughts from SocGen:

Continue reading »

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Feb 03

free house america

- You Can Buy A House For One Dollar Or Less In Economically Depressed Cities All Over America (Economic Collapse, Feb 2, 2014):

Would you like to buy a house for one dollar?  If someone came up to you on the street and asked you that question, you would probably respond by saying that it sounds too good to be true.  But this is actually happening in economically-depressed cities all over America.  Of course there are a number of reasons why you might want to think twice before buying any of these homes, and I will get into those reasons in just a little bit.  First, however, it is worth noting that many of the cities where these “free houses” are available were once some of the most prosperous cities in the entire country.  In fact, the city of Detroit once had the highest per capita income in the entire nation.  But as millions of good jobs have been shipped overseas, these once prosperous communities have degenerated into rotting, decaying hellholes.  Now homes that once housed thriving middle class families cannot even be given away.  This is happening all over America, and what we are witnessing right now is only just the beginning. Continue reading »

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Jan 24

subprime_mortgages

- The Second Subprime Bubble Is Bursting, Gundlach Warns (ZeroHedge, Jan 24, 2014)

Back in the years just before the previous housing bubble burst (not to be confused with the current, even more acute one), one person did the math on subprime, realized that the housing – and credit bubble – collapse was imminent, and warned anyone who cared to listen – almost nobody did. That man was Kyle Bass, and because he had the guts to put the money where his mouth was, he made a lot of money. Fast forward to 2014 when subprime is all the rage again and the subprime bubble is bigger than ever: it may comes as a surprise to some that in 2013, subprime debt was one of the best performing fixed income instruments, returning a whopping 17% in a year when most other debt instruments generated negative returns. And this time, while Kyle Bass is busy – collecting nickels (each costing a dime) perhaps – it is someone else who has stepped into Bass’ Cassandra shoes: that someone is Jeff Gundlach. Continue reading »

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Jan 18

- Starts Plunge 9.8% As Housing Permits Miss By Most In 7 Months (ZeroHedge, Jan 17, 2014)

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Jan 14

- Welcome To The Blackstone Recovery: Over 11 Million Americans Spend More Than Half Their Income On Rent (ZeroHedge, Jan 13, 2014):

As we wrote most recently in November, the median asking rent in the US just rose to an all time high…

Median Asking Rent

… explained by the lowest US homeownership rate in nearly 20 years.

Homeownership Rate Q3

And while the charts above mean another year of record bonuses for America’s largest landlord, Wall Street-based Blackstone, they also mean something else for millions of ordinary Americans: a choice, which as Bloomberg summarizes, “We either eat, or we pay rent.

Continue reading »

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Jan 11


YouTube Added: Jan 8, 2014

Description:

“The world’s richest expected only to get richer in 2014, the United States named the “greatest threat to world peace” during 2013 & a NY Federal Judge upholds big brother’s “right” to search your electronics at US borders!”

Original release: 1/2/14.

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Dec 29

FYI.

Related info:

- 1 Million US Jobless To Lose Financial Aid



YouTube Added: Dec 27, 2013

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Dec 16

- Camden, New Jersey: One Of Hundreds Of U.S. Cities That Are Turning Into Rotting, Decaying Hellholes (Economic Collapse, Dec 15, 2013):

All over America, formerly prosperous communities are being transformed into crime-infested wastelands of poverty and despair.  Of course the most famous example of this is Detroit.  At one time, Detroit was the greatest manufacturing city that the world had ever seen and it had the highest per capita income in the entire country.  But now it has become a rotting, decaying hellhole that the rest of the planet laughs at.  And of course Detroit is far from alone.  There are hundreds of other U.S. cities that are suffering a similar fate.  In this article, the focus is going to be on Camden, New Jersey, but the truth is that there are lots of other “Detroits” and “Camdens” all over the nation.  Jobs and businesses are leaving our cities at a staggering rate, and what is being left behind is poverty, crime and extreme desperation.

Earlier this month, Rolling Stone published an article that took a hard look at the nightmare conditions that exist in Camden.  A city that once made Campbell’s soup and some of this nation’s most famous warships is now a national disgrace.  The following are six of the best quotes out of that article: Continue reading »

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Dec 08

- Luxury Home Foreclosures Soar – Up 61% Versus Last Year (Liberty Blitzkrieg, Dec 8, 2013):

I’ve always wondered what would happen once private equity players decided enough was enough and foreign oligarchs finished their real estate money laundering transactions. Well, we might be about to find out.

According to RealtyTrac, foreclosures for homes worth $5 million or more are up 61% this year despite the fact that overall foreclosures are down 23%. The question is, does this merely represent holdouts from the prior housing bubble, or is it a sign of things to come? Only time will tell.

From CBS:

Foreclosures in the ultra-high-end housing market — homes worth $5 million or more — have skyrocketed 61 percent over last year.

Continue reading »

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Dec 08

- The 1% Also Don’t Pay Their Bills: 10 Ultra Luxury Properties In Foreclosure (ZeroHedge, Dec 8, 2013)

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Dec 04

- Is Bob Shiller Right? Mortgage Applications Collapse Back To 5 Year Lows (ZeroHedge, Dec 4, 2013)

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Nov 10

FYI.

Related info:

- Bitcoin Is Broken … At The Core Protocol Level


- The Chinese Can Now Buy Real Estate and the Dutch Can Order Food Online with Bitcoin (Liberty Blitzkrieg, Nov 9, 2013):

Understandably, pretty much all of the focus on Bitcoin as of late has been on price appreciation considering the extraordinary move it has undergone. Specifically, it has quadrupled in value from the post Silk Road shutdown lows a little over a month ago. While understandable, it’s a bit unfortunate at the same time. The focus on price is taking away from the great strides being made in its acceptance, and at the end of the day, it is acceptance that gives ultimate value to Bitcoin not buyers and sellers. In that spirit, I want to highlight two recent significant early adopters of Bitcoin, both overseas.

While I reported in April on a NYC landlord accepting bitcoin for rental payments, in China you can now buy property with bitcoin. Continue reading »

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