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The Overabundance Of Vacant Foreclosed Residential Properties

A report from CBS New York. “As New Yorkers flee the city amid the coronavirus pandemic, parts of the city’s real estate market are rife with empty apartments. CBS2’s Jessica Moore reports the industry is dealing with nearly record low numbers of new condo and co-op sales. Apartment purchases for co-ops and condos in Manhattan fell by 80 percent in May. The high-end market took an even bigger hit – with sales of those valued between $5 million and $10 million down 90 percent. Home prices in Brooklyn fell at their fastest rate since the Great Recession.”

From Insider New Jersey. “A bill creating a plan for the empty homes which have been foreclosed upon in our communities cleared the Assembly Thursday, 74-4-0. The sponsors issued the following statement on the legislation: ‘New Jersey has the highest foreclosure rate in the country, in January 2020 foreclosures increased by 13%. Many foreclosed residential properties are vacant, undermining the health, safety, and economic vitality of neighborhoods, depressing their property values, and reducing revenues to municipalities.'”

“‘The availability of tens of thousands of foreclosed residential properties presents a unique opportunity for us in New Jersey. Enabling the purchase and dedication, or the rental, of housing units for low-income and moderate-income residents, will put to good use the overabundance of vacant foreclosed residential properties in the state and help families in need.'”

From Stars and Stripes. “Andrea and Army Capt. Jerry Bortner bought their first home on the same street as Jerry’s brother near their next duty station in northern Virginia, confident that their military housing allowance would cover the monthly mortgage payment. But a Pentagon stop-movement order issued in March in response to the coronavirus pandemic has left them paying for two homes: their new 4-bedroom home near Fort Belvoir and the home they’re stuck renting at Fort Riley, Kan., until the Army lets them move.”

“‘We’re paying for two houses in May, June and July,’ Andrea Bortner said in a phone call Thursday. ‘It’s a big mess.'”

“The Bortners are among tens of thousands of military families whose permanent change of station moves have been delayed by the order. Many of those families are facing financial difficulties because of the backlog, said Kathy Roth-Douquet, CEO of the California-based nonprofit Blue Star Families. ‘About a fifth of families with PCS orders polled have been paying two mortgages or leases,’ Roth-Douquet said in a phone call.”

The Wall Street Journal. “Former Under Armour CEO Kevin Plank has sold his historic home in Washington, D.C., to an unknown buyer for $17.25 million, down from its original $29.5 million asking price in 2018, according to a person with knowledge of the deal.”

From People on Tennessee. “Kristin Cavallari has officially moved into her new $5 million Nashville-area estate, which she purchased amid her divorce from Jay Cutler, a source tells PEOPLE. The exes relisted their Nashville house for sale in May for $5 million. They originally put the nearly 20,000-sq.-ft. home on the market in 2018, six years after the pair acquired the estate in 2012. It’s co-listed with Tim Thompson Premier Realtors and Sotheby’s International Realty for $4.95 million, a massive price cut from when they originally listed it in 2018 for a whopping $7.9 million.”

From TMZ on California. “Travis Scott’s new home looks more like a vacation destination, and one he paid all cash to get. Travis is the newest resident in Brentwood — one of L.A.’s ritzier neighborhoods — after dropping $23.5 million on the epic, 16,700-square-foot mansion. And, get this … he got it for a bargain! The mansion was first offered last summer at nearly double the price — $42 mil — before undergoing 2 big price chops.”

The Associated Press. “A Southern California woman was arrested Friday on charges of swindling investors, mainly from China, out of $21.6 million in a phony condominium and hotel complex project. Ruixue ‘Serena’ Shi, 36, of Arcadia, was taken into custody by FBI agents on a criminal complaint charging her with wire fraud, a statement from the U.S. attorney’s office said.”

“Shi owned Global House Buyer, a China-based real estate development company, and was CEO of a Beverly Hills-based development company, according to court documents. From 2015 to 2018, Shi solicited investments for what she claimed would be a 207-unit luxury condo and hotel complex in the Coachella Valley, near Palm Springs, prosecutors said. Instead of building the project, she spent a large chunk of the money on a lavish lifestyle that included luxury cars, travel and designer clothing, prosecutors said.”

“Most of the prospective investors were in China and she reached out to them through sales presentations at hotels, radio advertisements, and the Chinese-based messaging, social media and mobile payment app WeChat, authorities said. Victims who wanted to buy condos priced from $400,000 to $700,000 had to pay 40% of the price upfront as a down payment, prosecutors said. Others were told that investing in the project would allow them to obtain U.S. visas, authorities said.”

From Seattle PI in Washington. “Inventory continues to climb. We are now up 197 condos for sale (200) as of Monday. If you remove new construction, we have 176 units for sale. The key to analyzing condos for sale is to evaluate how many units are selling relative to the number of active sales. In the last 12 months, there were 441 condos that sold in the Downtown core. Or 36.75 units per month. With the current inventory of units (197) and the average sale per month of (36.75) we would have 5.3 months supply of inventory.”

“With that said, if you take the last 30 days of sales (23) and our current supply of inventory of (197) our months supply of inventory is currently 8.5 months. This obviously has a lot to do with the Coronavirus. We need to pay attention to the possibility that current owners are leaving the Downtown core for more traditional residential housing (with less density).”

This Post Has 103 Comments
  1. ‘Keller Williams Realty San Diego East Foothills in El Cajon, one of the largest residential real estate brokerages in San Diego County, has announced that Monica Greenwood has joined the brokerage as a real estate sales agent.’

    ‘Greenwood, who has been selling real estate since 2009, has earned the highly-respected Certified Distressed Property Expert (CDPE) professional designation, which means Greenwood understands about alternatives available to homeowners facing financial hardship. CDPE holders have a thorough understanding of complex issues in today’s turbulent real estate industry and knowledge of foreclosure avoidance options available to homeowners. CDPEs can provide solutions, specifically on short sales, for homeowners facing market hardships.’

    “It’s important to me that I have completed comprehensive training so I can solve any foreclosure crisis one homeowner at a time,” said Greenwood. “Unfortunately, many homeowners often proceed through the financially and emotionally devastating prospect of foreclosure without any guidance. This is unnecessary because there are tools available to help homeowners find the best solutions for their unique situations.”

    https://patch.com/california/lamesa/realtor-monica-greenwood-joins-keller-williams-realty-el-cajon

    1. Given the REIC narrative about the ever awesome real estate market, does anyone else find this high profile story about a newly hired distress sales specialist to be off key?

      1. CDPEs can provide solutions, specifically on short sales, for homeowners facing market hardships.

        Translation: realtors are fleecing the FBs coming and going.

    2. “Unfortunately, many homeowners often proceed through the financially and emotionally devastating prospect of foreclosure without any guidance. This is unnecessary because there are tools available to help homeowners find the best solutions for their unique situations.”

      You’re a tool all right, Greenwood. “Homeowners” (FBs) who got burned once by trusting a realtor might not want to make the same mistake twice.

  2. ‘As New Yorkers flee the city amid the coronavirus pandemic, parts of the city’s real estate market are rife with empty apartments’

    Eat yer crowz Babs.

  3. ‘A Southern California woman was arrested Friday on charges of swindling investors, mainly from China, out of $21.6 million in a phony condominium and hotel complex project’

    But they just want to get their money out! It’s out. Annnd it’s gone:

    ‘Instead of building the project, she spent a large chunk of the money on a lavish lifestyle that included luxury cars, travel and designer clothing’

    1. “Instead of building the project, she spent a large chunk of the money on a lavish lifestyle that included luxury cars, travel and designer clothing.”

      Alibi: Your honor, Ruixue “Serena” Shi redirected that money from greedy investors toward circulation in the real economy.

  4. Re-post from the last thread.

    Note that this article was published in November 2019, before all the Chinese corona layoffs. Just think how much worse off millennials are now, and the absolute non-existent “pent-up demand” for $500,000 starter homes happening here:

    “Despite making up nearly a quarter of the population, millennials — defined as those born between 1981 and 1996 — own a scant 3% of the country’s wealth, according to the Federal Reserve’s Survey of Consumer Finances. In comparison, when baby boomers were the age millennials are today (around 1989), they controlled 21% of all national wealth. Generation-X’ers at the same age (in 2004) held 6%.

    And it’s not simply that millennials aren’t amassing much wealth — they’re also sinking deeper into debt, carrying a disproportionately high 16% of the nation’s liabilities, the Fed data show.”

    https://www.cbsnews.com/news/millennials-have-just-3-of-us-wealth-boomers-at-their-age-had-21/

    1. You can clearly see which generation mortgaged the future of the one to follow, which in turn did the same. Not much meat on gen z‘s bones… I don’t think it will work again.
      Feasting on the children is definitely a symptom of civilization in decline.

      1. They should normalize the numbers by population. Although GenX owns very little of the wealth, GenX also had a smaller population. So they are doing a little better than that 6% would suggest.

  5. Hope residents of New Jersey are happy about their entire state about to be transformed into a third world shithole.

  6. “From Seattle PI in Washington. “Inventory continues to climb”

    After reading the Seattle CHUD zone article you posted on the last thread, I can’t imagine why.

    ClownWorld gonna Clown.

    1. This guy has said before there are hundreds of new airboxes not listed on the MLS. So his 8.5 months of inventory would blow out if truth were told.

    2. Maybe the anarchists will reduce the inventory by burning down some of the Seattle housing stock.

  7. ‘About a fifth of families with PCS orders polled have been paying two mortgages or leases’

    Here’s what the media doesn’t ask: how do they get two loans at the same time? These are primarily zero down loans. Hello subprime, and you got two of them!

    ‘has left them paying for two homes: their new 4-bedroom home near Fort Belvoir and the home they’re stuck renting at Fort Riley, Kan’

    A new 4 bedroom shack, in N VA. Look at the photo and tell me how old you think they are. It was a little over a year ago that VA said, no more limit on loans! And last decade VA was 2% of the market, now it’s 12%.

    Pre-bubble, subprime was designed for things like veterans. It was reasoned that the guberment owed these people a shack loan. But subprime was so small (under 2%) it was a relatively small risk. A trade off. Then in 2003 subprime started to be offered widely. (Because the REIC had run out of borrowers at the same time, what a coincidence!)

    Today these bashtards muddy the water: non-prime, qualifying or non-qualifying. Using the old standards most loans for many years have been subprime.

    1. March 26, 2020

      “As America heads into a deep recession, the $11 trillion residential-mortgage market is in crisis. Investors who buy home loans packaged into bonds are dumping even those with federal backing because of panic that millions might not make their payments. Yet one risky sector had started to show cracks long before the coronavirus pandemic sparked the worst financial meltdown in 12 years: the federal government’s largest affordable-housing program, whose lenient terms are geared toward marginal borrowers.”

      “As real estate prices soared in recent years, working-class adults everywhere have increasingly relied on mortgages backed by the Federal Housing Administration — and U.S. taxpayers. Since 2007, the FHA’s portfolio has tripled in value to more than $1.2 trillion, almost 11% of the market. While private lenders make these loans, they are packaged into Ginnie Mae bonds, common in mutual funds and pensions.”

      “Before Covid-19 started roiling China, a November FHA report found that 27% of borrowers last year spent more than half their incomes on debt, a level it describes as ‘unprecedented.’ The share of FHA loans souring in their first six months has doubled over the last three years to almost 1%.”

      “Not long ago, Alex Castillo drove his shiny black Infiniti SUV through an office park north of the San Antonio airport, along a busy seven-mile stretch of highway that loan officers call ‘Mortgage Row’ because of its abundance of small independent mortgage companies that dominate FHA lending. Castillo, who has the words ‘The Dream Starts Here’ stitched into his jacket, works for Pennsylvania-based American Residential Lending. Oddly, amid the pandemic, his business is booming. His customers locked in FHA mortgages after interest rates plunged this month — adding to federally backed mortgage debt.”

      “‘If the government tells me you’re good enough to get a loan, I have to trust and believe in the government,’ Castillo said. ‘Then we just hope and pray that the client doesn’t get foreclosed on.’”

      “In downtown San Antonio, scores of investors stood on a parched lawn beside the city’s historic granite-and-red-sandstone courthouse. It was the first Tuesday of February, the day of the foreclosure auction. Matt Badders, a San Antonio lawyer who represents lenders, auctioned off two houses. The failed mortgages remind him of the run-up to the financial crisis 12 years ago, when lending to customers with spotty credit nearly brought down the world’s financial system. ‘We’re almost back to 2007, when mortgage originators are waking people up on park benches, saying sign here,’ Badders said.”

      “At the auction, the crowd bid on 338 homes, a third with FHA mortgages, according to Roddy’s Foreclosure Listing Service. One house had dual master bedrooms, a game room and granite kitchen counters. It sold for $202,000 — $52,000 less than the homeowner borrowed only two years ago. The taxpayer-backed FHA insurance fund will take a loss.”

      “Dave Stevens, FHA commissioner under President Barack Obama and former chief executive officer of the Mortgage Bankers Association, said a recession will expose hidden risks in home lending. ‘This should be an alarm bell to policymakers,’ Stevens said. ‘Sometimes you get blinded by a good economy and suddenly look at it and see a bubble of defaults coming.’”

      “The federal government has decided it doesn’t want to pursue — and has asked a judge to dismiss — a lawsuit against Utah-based Academy Mortgage Corp. The judge refused. The suit claims the company’s staff would repeatedly feed information into an automated federal underwriting system, manipulating it until the computer gave the green light. ‘Decline is a curse word,’ Plaintiff Gwen Thrower, a former underwriter, quoted a manager as saying. ‘We don’t use it.’”

      http://housingbubble.blog/?p=3070

      1. https://www.amreslending.com/LoanOptions/fha-home-loan/

        ‘With less stringent guidelines, lenders are able to issue loans on mortgages that wouldn’t normally fit conventional underwriting requirements, allowing more people to become homeowners. Some benefits of FHA loans are: Low down payments. Low closing costs. Easy credit qualifying.’

        ‘What does FHA have for you? Buying your first home? FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.’

        ‘Unlike most loan programs, FHA does not have specific credit score requirements. Although a high credit score may assist in getting the mortgage approved, a low score is not automatically cause for denial. If the credit scores are low, then it is up to the borrower to demonstrate his/her ability and willingness to pay the loan back. This allows the borrower to explain the circumstances surrounding the credit difficulties and have that explanation considered in the underwriting process.’

        ‘Because of FHA’s leniency, some borrowers with past credit problems elect to use FHA for loans when they have a substantial down payment rather than getting a higher interest rate conventional loan. FHA tends to be more flexible than Conventional financing in the money needed to purchase the home.’

        ‘In an FHA mortgage the customer must put at least 3% of the sales price into the transaction. Some of this money may be used for down payment and the rest for closing costs . Keep in mind, however, that the total cost to close on an FHA is commonly over 3%. With the down payment, closing costs, money to establish escrows for taxes and insurance plus interest to finish out the month of closing, the total costs can be closer to 6 or 8% of the sales price.’

        ‘FHA allows the borrower to get the funds necessary to close from several sources. They include such areas as personal savings, gifts, grants, loans from retirement accounts and seller contributions.’

        In other words they can loan you more than 100%.

    2. Today these bashtards muddy the water: non-prime, qualifying or non-qualifying. Using the old standards most loans for many years have been subprime.

      Credit orgy. Until it stops, the braying debt donkeys will continue to borrow every single penny they can.

      1. Which explains why mortgage defaults are surging and falling housing prices.

        Bothell, WA Housing Prices Crater 15% YOY As Amazon Layoffs Ravage Seattle Area

        https://www.zillow.com/bothell-wa-98011/home-values/

        *Select price from dropdown menu on first chart

        As a leading economist said, “Sell whatever it takes to get out of debt and hold onto every dollar you’ve got. You’ll thank me later.”

  8. Where does this end? Does it end?

    “Protesters in San Francisco on Friday toppled the statue of former President Grant, who led the Union Army during the Civil War, in Golden Gate Park.

    Also torn down in the park on Friday were the statues of St. Junipero Serra and Francis Scott Key, who wrote the lyrics to “The Star-Spangled Banner.”

    https://thehill.com/homenews/state-watch/503685-protesters-tear-down-statues-of-union-general-ulysses-s-grant-national

    1. “Where does this end?”

      Here’s one possibility.

      This model forecast the US’s current unrest a decade ago. It now says ‘civil war’

      “In an unpublished paper submitted for peer review, Professor Goldstone, who is a sociologist, and Peter Turchin, an expert on the mathematical modelling of historical societies, have concluded that the US is “headed for another civil war”.

      The conditions for civil violence, they say, are the worst since the 19th century — in particular the years leading up to the start of the American Civil War in 1861.

      The reason for this are trends that began in the 1980s, “with regard to inequality, selfish elites, and polarisation that have crippled the ability of the US government to mount an effective response to the pandemic disease,” they write.

      This has also “hampered our ability to deliver an inclusive economic relief policy, and exacerbated the tensions over racial injustice.”

      https://www.abc.net.au/triplej/programs/hack/model-predicting-united-states-disorder-now-points-to-civil-war/12365280

      1. I’m not buying it. A handful of criminals does not a movement make. This country has never had less discrimination in opportunity. People can go to any college, work in any field.

        I’ve said for years police brutality against everyone is a huge problem. So why hasn’t the guberment done something? When I lived in Flagstaff, the feds gave the local police what was basically a tank. Remember when the cop killer was running around LA? The sheriffs people spotted a truck, not the killers model or even color, in daylight. They immediately shot over 100 rounds into it. What happened? They settled the matter with undisclosed amounts of cash.

          1. One thing is certain: people are gunning up like crazy. When the same party that is trying to annul the 2nd Amendment and declares, “Hell yes, we’re coming for your AR-15!” is also throwing its full weight behind BLM, Antifa, and efforts to tear down any symbol deemed “offensive” by our globalist cultural Marxist commissars, you do not want to be without the means of self-defense.

            https://www.tnonline.com/20200616/gun-sales-surge-because-of-protests-pandemic/

          2. I was in the Las Vegas Bass Pro Shops yesterday. Looked like they had a good selection of long guns. But the handgun cases were mostly empty. And people were waiting in line to approach the counter. Not a lot of ammo in any store I’ve checked lately, either.

        1. “police brutality”

          Exactly what it is. And it’s a risk with every incidence of contact with a LEO.

          If you want a tune up, run your mouth to a LEO or otherwise mess with him. It’s every bit as real as housing depreciation.

        2. It’s a civil war fought with ideas, and one side is losing badly – in fact it may have already lost. The fact that all of these statues are getting torn down and nothing is being done. People are looting and occupying (see CHUD) and nothing is being done. All of the obsequious kneelers will get voted back in for more. Nearly all of the media are supporting what’s going on. Uncle Ben’s Rice, etc., disappearing. Speak out using statistics or just have a different opinion? Get fired; voices are being silenced everywhere. Our students and children have been indoctrinated into these ideas. Where’s the counter-outcry? Nowhere. Silence everywhere, except for places like this blog. I believe we’re past the tipping point. Time will tell if I’m right or it’s a nothing burger. With the speed of the Interwebs things happen much faster than ever before. I think we’ll find out soon.

          1. I bet the Democrats and their globalist moneybags could use their bulk purchasing power to import hundreds of unwanted Lenin and Stalin statues from former Soviet bloc countries to our progressive-maladministered urban centers and universities.

        3. And all of these local city elected politicians and government officials had ample opportunity to address the issue. But none of the voters held them accountable for the policies. Crime did not drop. It looks like the elected officials were all in for maintaining the pipeline for corrections system due to the huge sums of money paid to the political campaigns.

          1. “maintaining the pipeline for corrections system due to the huge sums of money paid to the political campaigns.”

            The fact that fortunes have been made keeping millions of people locked in cages is a big part of what’s fueling the anger boiling to the surface.

        4. “A handful of criminals does not a movement make.”

          Now or then

          Bernardine Dohrn

          In the 1960s, Dohrn was a leader of the Students for a Democratic Society’s “Weatherman” faction, which in 1969 went underground to become America’s first terrorist cult. The intention of the group was to shed their “white skin privilege” and launch a violent race war on behalf of Third World People.

          At a 1969 “War Council”[6] in Flint, Michigan, Dohrn gave her most memorable and notorious speech to her followers. Holding her fingers in what became the Weatherman “fork salute,” she spoke of the bloody murders recently committed by the Manson Family in which the actress Sharon Tate, at the time nine months pregnant, was murdered and her unborn child died. Abigail Folger, heiress of Folgers Coffee and several other victims at two crime scenes were all brutally stabbed to death.[7] The words “Death to Pigs” were written on a wall in the victims blood.

          “ Dig it! First they killed those pigs and then they put a fork in pig Tate’s belly. Wild!”

          This was a references to Leno LaBianca, found with 12 knife wounds and 14 additional wounds caused by a large fork. The word “war” was then carved into his flesh with a knife. When police arrived, the fork was still protruding from his body.[8] Dohrn continued:

          “ Offing those rich pigs with their own forks and knives, and then eating a meal in the same room, far out! The Weathermen dig Charles Manson!”

          The “War Council” concluded with a communique condemning “AmeriKKKa,” always spelled with three K’s to signify the United States’ allegedly ineradicable white racism. Dohrn was responsible for issuing communiqués to the public. On May 20, 1970 the Weather Underground’s formal Declaration of War against the United States[10] was broadcast on radio, [2] authored and read by Dohrn. The text reads in part,

          “ Revolutionary violence is the only way! ”
          and concluded with
          “ Within the next fourteen days we will attack a symbol or institution of Amerikan injustice. ”

          https://www.conservapedia.com/Bernardine_Dohrn

          Although…

          https://thehill.com/blogs/pundits-blog/presidential-campaign/32072-obama-and-bill-ayers-together-from-the-beginning

        1. Whitey’s Last Stand?

          Given that whiteyheavily outnumbers BLM, and most mestizos self identify as white, and Asians aren’t likely to ally themselves with BLM, it could be someone else’s last stand.

          1. Anyone who thinks Hispanics and Asians are going to align themselves with white reactionaries is delusional.

          2. More likely that those ethnic groups will sit on the sidelines. If anything, the Hispanic groups will happily take the jobs from the fallen African Americans (which they have been doing for the past 20 years anyway).

            And if this war is going to be a literal shooting war, one side is more heavily armed, and probably much more self-schooled in tactics.

          3. Anyone who thinks Hispanics and Asians are going to align themselves with white reactionaries is delusional.

            If they had to pick one or the other, they would pick whitey over 90% of the time. Asian businesses bear the brunt of the burning and looting that blacks engage in in the inner cities. And, as mentioned, Hispanics and blacks are direct competitors for jobs, etc. There’s no love lost there.

    2. Where does this end? Does it end?

      A few home invasion robberies/murders will be a come to Jesus moment for many libtards.

      1. Middle class culture, any culture, can only stand if it is rewarded. In prior times the middle class was fundamentally supported by the upper classes, who invested in America, creating vast wealth.
        They modeled sobriety, hard-work, risk and reward. The working classes modeled the behavior through church and standing together for each other and nation.
        The wealthy have abandoned America, and the working classes have abandoned religion, and each other. Into that void steps cultural anarchy.
        Middle class culture requires hard-work, and discipline. It requires accountability, primarily of the wealthy. I tire of articles that lament the loss of culture without holding those accountable who have abandoned their responsibilities.

        1. “The wealthy have abandoned America”

          This is a good point, and it has been exacerbated by globalism and even the housing bubble. The upper classes constantly traveling between multiple homes all over the country and the world (which is incentivized by rising house prices) is an ideal set up for local corrupt politicians to run amok. Plenty of tax money, but who has time to complain about the pot hole on Main Street when you are only in the town 2 months of the year? Or run for city council?

        2. The wealthy have abandoned America

          Dangerously simplistic and false. Follow the money, and you’ll see that the globalist oligarchs are actively bankrolling the termites in the foundation. They have used their control of finance, the media, the entertainment industry, and our captured institutions of governance to actively work for the destruction of this formerly great Republic and to wipe out the last vestiges of heritage America.

    3. “Every record has been destroyed or falsified, every book rewritten, every picture has been repainted, every statue and street building has been renamed, every date has been altered. And the process is continuing day by day and minute by minute. History has stopped.”

      — George Orwell

    4. I’m guessing the idiots probably don’t even know who those historical figures were.

      1. If they received a taxpayer funded public education, probably not.

        This country doesn’t have a future.

  9. ‘Since the coronavirus pandemic unfolded, many Americans have cut their spending. But those earning the highest incomes have curbed their purchases the most, according to a new report, even though they were less likely to have lost their jobs or incomes.’

    ‘But the frugality from the highest earners could jeopardize the speed of the U.S. economy’s recovery, experts warned, because many lower income jobs depend on that spending.’

    ‘In mid-April when consumer spending reached its bottom, the top quartile of earners reduced their spending by 36%, while low-earners shrunk theirs by just 21%, a new paper by the Harvard-based Opportunity Insights group found.’

    ‘By mid-June, over half the spending decline in the U.S. since January was due to the pullback from high-income households. Low-income households accounted for only 5% of the decline, the report found.’

    https://money.yahoo.com/rich-americans-pullback-in-spending-is-hurting-the-economic-recovery-124949092.html

    1. ‘In mid-April when consumer spending reached its bottom, the top quartile of earners reduced their spending by 36%, while low-earners shrunk theirs by just 21%, a new paper by the Harvard-based Opportunity Insights group found.’

      It’s hard to shrink your spending when you’ve pledged every single dollar of your future labor to a lender of some sort or another.

        1. By “spending” do they mean discretionary spending or total spending?

          Good question.

          With so much uncertainty in every way, can you blame anyone for cutting spending?

    2. Not among the highest earners, but I am doing my little part to keep the musical instrument and equipment industries alive during the pandemic era. I’m quite concerned about how musicians will survive this period. though the words to one of Ben’s favorite songs come to mind…

      Yip yip yip yip yip yip yip yip
      Mum mum mum mum mum mum, get a job
      Sha-na na-na, sha-na na-na na

      Every morning about this time
      She get me out of my bed
      A-crying get a job

      1. “Not among the highest earners, but I am doing my little part to keep the musical instrument and equipment industries alive during the pandemic era.”

        I saw this cover band on YouTube and thought of you Professor.

        You should give them a call.

        Foxes and Fossils

        We Gotta Get You A Woman – Todd Rundgren (Cover) – Foxes and Fossils

        https://youtu.be/EyUjbBViAGE

    3. Fear is in the air…..The transition of mindset from the roaring 20’s to the dirty 30’s was swift.

      With the loss of confidence in government and civil institutions, I suspect productive households have shifted financial priorities from spending to wealth preservation. preferably at arms length from the “grabbing hands.”

      1. The transition of mindset from the roaring 20’s to the dirty 30’s was swift.

        What’s your definition of “swift”? Looks like it took about 9 months for the sucker rally to peak again and then a couple more years of bouncing down the staircase before it was really “the 30s” as we think of them.

        If we were to follow the same pattern (and I don’t think we will due to much more Fed interference) it would be the end of this year before we stop going back up, and then end of 2022 to hit something like a bottom.

    4. “Nearly three-fourths of the spending reduction were on purchases for goods or services that require in-person contact like hotels, transportation, and food services, according to the paper, which analyzed seasonally adjusted consumer debit and credit card spending indexed to January spending data.”

      And this reduction of such spending is a surprise? There is a such a thing as a shut down due to a virus, doncha know?

    5. I think we’re in the beginning of a deflationary period. We have wage compression starting via salary cuts on the mid-to-high end and increased unemployment benefits at the low end.

      Purely anecdotal at this time but it seems that people who have any situational awareness are paying down revolving debt with their “free money” and not buying stuff or getting into more debt. These are all dollars going home, maybe not to die, but surely to remain out of circulation for some time.

      Seems like the Black Swan is named COVID-19.

    6. “But those earning the highest incomes have curbed their purchases the most…”

      I’ve been looking for a clean, low mileage 2016-17 Honda Accord, but so far everything I see has been priced at the upper end of the Kelly Blue Book estimate or higher. When I check a week later, sold. Are these cash sales, or are people signing 5-yr vehicle loans while the economy is poised for a long recession with 43-million workers unemployed?

        1. Hertz is offering scams, e.g., slightly lower prices and their own line of EZ credit for the, “How much a month, chumps.”

  10. I don’t think anyone needs to worry about hoards of poor ghetto dwellers descending on suburban and rural areas.

    Andover,NJ Housing Prices Crater 34% YOY Suburban And Rural Housing Prices Tank

    https://www.movoto.com/andover-nj/market-trends/

    As one metro NY/NJ/CT broker shared, “Housing prices are falling faster than rental rates”

    1. Yeh I’ve nominating him for the Deadbeat “father” of the year award… haven’t been put in FB jail yet

    2. Porcine beauticians’ ability to paint lipstick on pigs has applications beyond the realm of high finance.

  11. Identity politics is just a cop out to personal responsibility for ones acts .

    If you got a sector of the population that won’t pull itself up , it’s not automatically racism that explains it. That group that claims they are oppressed might of just chosen to take the easy way out by some cultural influences within their own group.

    Ethic groups that tend to have a strong work ethic tend to get ahead.

    Now it simply might be that some groups just don’t like the merit based majority white culture.values. Than I say don’t complain about not getting the rewards those structures give for effort.
    Instead they want the rewards without earning them . Everything has to be altered to appease this minority in spite of trillons in welfare and affirmative action, etc. Blacks who are successful are almost considered Uncle Tom’s because they made it in the White System.
    So now this idea of elimination of Whites and White values because of a false narrative of racism.
    Maybe Blacks just don’t like the White race and they are just projecting their racism.
    The way they are talking about Whites these day is reverse discrimation.

    There is nothing but false narratives today. The real truth is that all races have been robbed by the Globalist Money Changers and free shit Looters called the Welfare State

    There is also a big movement now to attack Science as a racist White system. So this movement wants to take us back to the Dark Ages based on a minority not liking Western Civilization, with mob rule extortion
    I read somebody who was saying that this current set of Revolution fighters have a distain for Authority as if they got improper parenting with little punishment for bad behavior. That fits because the schools took over and now the Schools are saying you can’t take a disruptive student out of the class.
    So no surprise that the non peaceful protestors want to get rid of Police because they are the Authority

    1. The globalists and their media lapdogs are clutching their pearls as disenfranchised young white males flock in droves to the Boogaloo movement. What exactly did the elites think was going to happen when these young guys realize they have no future whatsoever under the current system?

      The “Boogaloo” brand is blowing up on TikTok where the #boogaloo hashtag is full of teens dressing the part and making memes.

      https://www.vice.com/en_us/article/xg8yjw/young-aspiring-boogaloo-bois-are-dancing-with-guns-on-tiktok

    2. The media loves this stuff. The virus situation can only be ran so long until another fix is needed.

  12. The scumbags at the Fed are once again laying the groundwork for yet another taxpayer bailout of the Wall Street banks.

    https://www.cbsnews.com/news/federal-reserve-neel-kashkari-warns-bank-losses-during-covid-could-trigger-next-financial-crisis/

    The head of the Minneapolis Federal Reserve warned Friday that banks should “stop paying dividends” and “raise capital” as more Americans struggle to pay their loans and credit losses mount at America’s large banks amid the ongoing coronavirus pandemic.

    “They can essentially inoculate themselves from COVID,” said Neel Kashkari, who ran the 2009 auto bailout.

    Kashkari – who was one of former Treasury Secretary Hank Paulson’s top lieutenants during the Great Recession and administered the TARP program to provide financial relief to banks – also warned that sustained losses could cause significant problems. In answer to a question from “Face the Nation”‘s Margaret Brennan on whether that could trigger another financial crisis, Kashkari issued a stark warning.

    “I am concerned the longer this goes on, the more losses banks will face,” he told Brennan. “Large banks have more capital than they had before the 08 crisis, but not enough.”

  13. Apartment purchases for co-ops and condos in Manhattan fell by 80 percent in May. The high-end market took an even bigger hit – with sales of those valued between $5 million and $10 million down 90 percent.

    Is that a lot?

  14. It’s co-listed with Tim Thompson Premier Realtors and Sotheby’s International Realty for $4.95 million, a massive price cut from when they originally listed it in 2018 for a whopping $7.9 million.”

    Suck it, greedheads.

  15. This obviously has a lot to do with the Coronavirus. We need to pay attention to the possibility that current owners are leaving the Downtown core for more traditional residential housing (with less density).”

    It might also have something to do with residents of a lighter hue seeing the writing on the wall now that Democrats have thrown their full weight behind lawlessness, anarchy, and “redistributing the wealth.”

      1. CHUD

        What does the “UD” stand for? Urban Decay? Utter Disaster? Useless Democrats? Apparently all synonyms.

  16. Any thoughts on how many more months it will take for Hawaii authorities to get their heads sufficiently screwed on to bring back tourism?

    1. I’d be happy to turn on a COVID-19 tracker app while visiting Hawaii instead of undergoing two weeks of house arrest upon arrival.

      News
      State says greater testing capacity, digital records on visitors needed to restart tourism
      Health officials detail recommendations to lift quarantine restrictions for tourists
      By Lynn Kawano | June 18, 2020 at 5:50 PM HST – Updated June 19 at 1:11 PM

      HONOLULU, Hawaii (HawaiiNewsNow) – Greater testing capacity, thermal screening machines, digital records on tourists.

      Those are among the requests state Department of Health leaders want ahead of Hawaii welcoming out-of-state visitors without a mandatory quarantine.

      Pre-travel testing has been discussed a lot as a requirement for tourists, but state Epidemiologist Sarah Park said it won’t be enough.

      “I’m just trying to make sure that these travelers are somehow able to be tracked by us,” Park told the Senate Special Committee on COVID-19.

    2. The two weeks quarantine has to be one of the dumbest and most economically self destructive ideas that was hatched during the COVID-19 pandemic.

      Tourist dies in ocean while defying Hawaii quarantine amid coronavirus pandemic
      Associated Press 6 hours ago

      A tourist from Oklahoma who was supposed to be obeying Hawaii’s 14-day quarantine for travelers arriving to the state, was pronounced dead after he was found unresponsive in the ocean.

      The Honolulu medical examiner’s office identified him as Kristopher Michael Oliphant, 39, of Tulsa, Oklahoma. A cause of death was pending Friday.

      He arrived June 7 and should have stayed in quarantine until Sunday. However, he checked out of his hotel Wednesday, said Jessical Lani Rich, president of the Visitor Aloha Society of Hawaii, which helps tourists in distress.

    3. Issues To Figure Out Before Tourism Can Ramp Up
      Lawmakers are continuing to hear suggestions for how to safely reopen the state to tourists, which remains the state’s chief economic driver.
      By Blaze Lovell
      June 18, 2020
      Reading time: 5 minutes.

      The state has a laundry list of things to do before it can lift a 14-day mandatory quarantine and throw open the doors to tourists again.

      Hawaii officials are stuck between keeping the islands relatively COVID-19 free and bringing back tourists to help jump start the state’s ailing economy. To do both at the same time will require a huge increase in coronavirus testing, a standing army of contact tracers ready to get to work at a moment’s notice, and compliance with social distancing guidelines on the part of locals and visitors alike.

  17. Trump gets a B+ on the speech tonight. Sorry, Stephen Miller, but you have to write better speeches. And if you’re gonna go off-script, don’t hold back, don’t be so tame.

    The silent majority will NOT be paying property taxes, income taxes, sales taxes, to municipalities and states that want to not only silence them, but exterminate them. The money I do not give to them is more powerful than any weapon, don’t shoot them, just starve them but not participating.

    R.I.P. ClownWorld, you’re not even done filling in your own grave with dirt and I’m already p*ssing on it, LMFAO…

  18. Efficiently built with minimal maintenance and utility burden

    Meh, who needs a garage in Michigan anyway? Let’s put a sofa and a gas grille there instead, right next to the garbage cans, where they’ll be buried in snow for three months out of the year. And we can store the yard tools in the dining room — oh, wait, that’s right, we don’t need those either.

    Love the spelling, too:

    https://www.zillow.com/homedetails/1003-E-Forteen-Mile-Rd-Birmingham-MI-48009/24507740_zpid/?

  19. I use to scratch my head alot when for a couple generations I saw the trends in thought going haywire.

    For instance ,the trend of everyone on a team getting a reward in spite of losing. So the message was you get reward without effort .

    Another trend was that your perfect in whatever undeveloped state your at.

    So you have a couple of generations of people that think they are entitled to X,Y and Z just because they exist. Inflated sense of worth where everything should be provided like a baby in the womb. No requirements from the Society you live in, just demands from that Society with no thought of give back because everything is a unearned right . Defund the Police and give the money to Social programs, which is code word for welfare, claiming this is needed because of racism.

    These Protestors don’t recognize Authority because they were taught that they were the authority just based on existing. Any merit based system is a product of White Privilege and must be torn down along with the Statues.
    It’s anarchy because there was never any respect for Authority to begin with.
    The Communist have had a long term agenda to tear down Civil Society and destroy any connection to history or rational behavior.
    How do you leave to walk without walking. How do you learn to think without thinking? They want to usher in Communism where everyone is equally non productive and useless. It kills the human spirit and the will to improve.

  20. I might add that IIMHO Karl Marx was a evil man, as all the leaders of. Communist Movements has been. Very snarly anti social revenge type characters. That’s why it was so easy for these Communist Leaders to murder millions of people

    Take Karl Marx for instance, a snarly professor kicked out of his native Country who went to England. A guy who felt like the State should take care of all the children he fired, while the State should take care of him also while he studied whatever.
    The Son of a Capitalist was taking care of him while he sowed the seeds of his Communist theories. He also drank a lot . Basically a snarly guy who wanted someone to pay for his indulgences while he did whatever he pleased, with no requirements on him .

    This idea of equally under Communism was just the carrot Marx was trying to sell, but his real objective was having no responsibilities while he did whatever he pleased at the expense of others. A antisocial misfit who was intelligent enough to sell ideas that are flawed, childlike, and not really equality or Justice because it’s parasitic at it’s core.

      1. Right, that’s my point about this flawed psychology.

        My observation is that these people are stuck in 2 year old.

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