The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label housing. Show all posts
Showing posts with label housing. Show all posts

Wednesday, April 13, 2016

Who needs Bernie? Americans spend more on taxes than on food, clothing, and shelter

Independent/Democratic candidate for President Bernie Sanders has been running on a platform of not just tax the rich, but pretty much tax everyone more to pay for his $18 trillion program of full blown Socialism.  But what the old man from Vermont who never worked an honest job in his entire life is failing to see is that as Americans rush towards tax day less than a week from now, they already give away to government agencies more in taxes than they spend each year on food, clothing, and shelter…
Combined.
This year, Tax Freedom Day falls on April 24, or 114 days into the year (excluding Leap Day).
Americans will pay $3.3 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total bill of almost $5.0 trillion, or 31 percent of the nation’s income.
Americans will collectively spend more on taxes in 2016 than they will on food, clothing, and housing combined.
That last statistic is a huge sore point with me.
How can anyone argue that we are not a socialist society when the government takes more of our money than we spend on food, clothing and housing combined?
What they are doing to us is deeply wrong and it is fundamentally un-American. -Theeconomiccollapseblog
tax foundation chart
Chart courtesy of Taxfoundation.com
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Friday, December 18, 2015

The last time the Fed raised rates, credit markets collapsed and the economy went into recession

As the entire global economy waits with baited breath for the Federal Reserve’s rate announcement in a few hours, analysts are looking backward to what occurred in 2006 when the central bank last raised rates.  And interesting enough, the results were not good for anyone.
Greenspan used rate hikes between 2004 until June of 2006 to qualify his ‘irrational exuberance’ mantra as the housing bubble would reach its peak just a few months later.  And with this tightening of credit and liquidity, over the next year markets would soar as asset purchases pushed prices to then all-time highs, only to then unveil the fragility of a market that had only succeeded on the back of monetary infusion.
Welcome to 1936-37 and 2007-08.

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Friday, September 4, 2015

The economy is so great that the common man can’t afford to live in his own city anymore

As the stock market today continues to show breakdowns all across Wall Street, Main Street has been in a continuous decline since the Credit Crash of 2008.  And although the fake unemployment numbers that are reported by the government are painted to be around 5.3%, the sad reality in this new waiter vs. manufacturing ‘recovery’ is that thanks to inflated prices in the housing and rental markets, the average American can no longer afford to live in even the most inexpensive of cities.
Low-income workers and their families do not earn enough to live in even the least expensive metropolitan American communities, according to a new analysis of families’ living costs published Wednesday.
The analysis, released by the left-leaning Economic Policy Institute, is an annual update of the think tank’s Family Budget Calculator that reflects new 2014 data. The Family Budget Calculator is a formula designed to determine the income “required for families to attain a secure yet modest standard of living” in 618 different communities across the country that the U.S. Census Bureau defines as metropolitan areas. The formula uses data collected by the government and some nonprofit groups to measure costs of housing, food, child care, transportation, health care, “other necessities” like clothing, and taxes for families of 10 different compositions in these specific locales. - Huffington Post



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Sunday, May 24, 2015

Elites work is nearly done as wealth inequality now reaches new all-time record

Just as the Patriot Act has done little to stop terrorism within the United States, so too has Dodd-Frank and bank bailouts not righted the ship following the 2008 credit crisis.  But in each of these laws is the underlying truth that they have accomplished exactly what Congress intended them to do, and that is to put the screws on the rights and liberties of the American people.
For the Patriot Act, we now have 100% total surveillance without a court order, and the creation of a government agency (DHS) that labels honest Americans, not Islamic militants, as the number one threat to the country.
And with Dodd-Frank and the Fed’s use of Quantitative Easing (QE), the elites work in the financial real is nearly complete as a new report out shows that the disparity and wealth inequality between the 1% and the rest of America is now at the highest level in history.
Greater than during the Roaring 20’s, and the Gilded Age.
 
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Monday, April 20, 2015

Repercussions of negative interest rates leave European banks paying homeowners

In the normal instance of a loan or mortgage, a person will borrow money from a bank at a certain agreed rate of interest over the course of an agreed amount of time.  However, in this new Keynsian world of negative interest rates, the tables are completely turned and we are now seeing European banks paying homeowners instead of receiving interest from them, for a mortgage held on property.
Welcome to Bizarro World.
 
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Thursday, July 25, 2013

Leading CEO of a home builder says rising rates are causing home buying decline

On July 25, the CEO of D.R. Horton addressed shareholders in an earnings conference call, and said explicitly that rising interest rates are draining the market of home buyers, and that the rapid rate rise is an unexpected shock to the industry.



  • *HOMEBUYERS 'SHOCKED AND DISTURBED' BY RATE JUMP, TOMNITZ SAYS
  • *D.R. HORTON CEO SAYS 'DISAPPOINTED' RATES ROSE SO 'VIOLENTLY'
  • *D.R. HORTON CEO SAYS TRAFFIC COUNT HAS SLOWED SINCE RATE RISE - Zerohedge

  • Rising interest rates is the biggest fear the Federal Reserve has had since their implementation of quantitative easing, and six years after bringing Fed rates down to almost 0, the market is now breaking upwards on its own. This uncontrolled rise in rates means that central bank polices have crossed over the technical line, where priming the monetary pump no longer provides the shelter against inflation and currency devaluation.

    Since the Housing Bubble and credit crisis of 2007/2008, the Fed has been primarily seeking to rebuild the housing and stock markets, under the illusion that wealth gained there would trickle down into all parts of the economy.  Unfortunately, when you use old tools and programs for new crises, the end result is what we have seen over the past six years... a temporary Band-Aid to stem a flood that is not only virulent, but has grown much worse because of the Doctors proscribed medicine.

    Tuesday, July 23, 2013

    Rising home prices coming from flippers not first time buyers

    In certain parts of the country, home prices are rising as the country digests trickle down portions of the $Trillion's in money printing coming out of the Fed's QE program.  However, a closer look at who is and who isn't buying houses shows that the majority of home buyers are hedge funds and flippers, and not the average American family or first time home buyer.


    There was a time when the US housing market was not "driven" by hedge funds armed with government-subsidized, "REO-to-Rent" loans loading up on distressed properties, by banks refusing to release foreclosed properties into the market (thus creating a market subsidy) or by foreigners eager to park their "tax-evaded" wealth with the Anti Money-Laundering exempt National Association of Realtors. Instead, the main driver of US housing were first-time home buyers, "typically couples in their late 20s or early 30s" who historically have accounted for about 40% of home sales. Alas, last year, and all throughout the New Normal, this number has been about 25% lower, or representing just 30% of all sales - Zerohedge

    It is these numbers that investors and all Americans need to be cautious about, and remember the winds of the 2007 housing bubble crash.  When prices reached their peak in the housing cycle, and the stock markets were reaching all-time highs, the end to it all came not only suddenly, but in a crash that nearly brought down the entire Western financial system.

    And this was before $20 trillion dollars was printed by the Fed in the last 5 years, and inflated into the economy.

    Thursday, July 12, 2012

    Mayor Bloomberg channels his inner Communist for new housing in New York City

    Mayor Bloomberg, the 1%er who has made his billions and now feels he has the right to dictate how New Yorkers can live their lives, is channeling his inner Communist as he seeks to create housing for the future.  That housing plan, would no longer be about quality of life in the financial capital of the world, but rather a segmented according to your needs project that would limit your available space to 300 square feet.



    A pilot project slated for construction in Manhattan's Kips Bay section will feature rental apartments ranging from 275 to 300 square feet (26-28 square meters) with kitchens and bathrooms, the mayor's office said in a statement.

    Bloomberg explained it was "critical to the city's continued growth, future competitiveness and long-term economic success" to develop "housing that matches how New Yorkers live."

    "People from all over the world want to live in New York City, and we must develop a new, scalable housing model that is safe, affordable and innovative to meet their needs." - Telegraph.co.uk

    Housing for citizens ACCORDING TO THIER NEEDS.  Interesting choice of words for a capitalist, and the city leader who feels its his duty to force people to limit their intake of coca-cola products.
    Outside the attempts to create commune style dormatories and call them livable spaces, Mayor Bloomberg is willfully, or ignorantly following in the United Nations plans of Agenda 21, which advocate in one of their planks for sustainable development in high density urban areas.
    Welcome to the global third world comrades!  Your choices are being made for you by power elites who live like kings, but feel you should live according to your limited needs.

    Tuesday, May 1, 2012

    Housing trend: More people renting homes today than a decade ago

    There is one underlying fact about housing data, and that is the reporting is done by those with a specific agenda.  When two analysts read the same data, and come up with entirely different conclusions, then either no prediction is possible, or one of those two analysts must work for the government.

    With this being said, the truth is, housing prices and opportunities for Americans is not improving, but in fact, is decreasing.  A new chart shows that more people are renting rather than owning homes in 2012 than they did just a decade ago, and before the bursting of the housing bubble.



    Less than two thirds of Americans say they own their own homes - the lowest rate of home ownership in more than a decade.

    A new Gallup poll shows just 62 per cent of Americans are homeowners, down 11 percentage points from the high of 73 per cent in 2007, just before the housing market crashed spectacularly.

    A record number of Americans, 43 per cent, also say their homes are now worth less than what they paid for them.

    The new data, based on a survey of 1,000 people, shows that housing market continues to plummet, despite modest economic recovery and improvements in the unemployment rate.

    The home ownership rate reported by Gallup dropped six percentage points from this time last year. The numbers were the lowest in the history of the survey, which Gallup began taking in 2001. - Daily Mail


    Unfortunately, the Federal Reserve and the Treasury place too much stock in home ownership, consumer spending, and the stock markets rather than focus on actual production, job growth, and exports.  The economy will continue to decline because the American people have not recovered from the failures of the banks in 2008, and housing will be a dream left in the past unless fundamental changes are made which clear out the debts of this recession.  Without this deleveraging of debts, the system cannot provide Americans the chance to own a home for years to come.

    Tuesday, February 28, 2012

    Housing recovery in full swing (not) as home prices decline for 8th month in a row

    Shovel ready housing recovery?  Not quite, as the latest Case-Shiller report out for January shows home prices declining for the 8th month in a row, and are only expected to continue falling as new rounds of foreclosures hit the market after the Attorney General deal.

    The December Case Shiller came, saw, and shut up all those who keep calling for a home price recovery. The Index printed at 136.71 on expectations of 137.11, with the prior revised to 138.24. The top 20 City composite was down -0.5% on expectations of a 0.35% drop. 18 out of 20 MSAs saw monthly declines in December over November, with just the worst of the worst - Miami and Phoenix - posting a dead cat bounce, rising 0.2% and 0.8% respectively. And granted the data is delayed, but the fact that we have now had 8 consecutive months of home price declines even with mortgage rates persistently at record lows, and the double dip in housing more than obvious, can we finally shut up about a housing bottom? Because as Case Shiller's David Blitzer says: "If anything it looks like we might have reentered a period of decline as we begin 2012.” - Zerohedge

    Not the best news for President Obama as his 3 year promise to get the economy out of recession has failed, and his prediction of a one-term Presidentcy looms on the horizon.

    Wednesday, February 1, 2012

    It must be election season as Obama brings out another fail mortgage program

    Here we go again.  The Housing markets is still in freefall, and foreclosures are going to accelerate in 2012 as judicial rulings against homeowners in late 2011 open the door for the banks to take property without a note.  So what does President Obama choose to do about this for the American people?

    Wait for it...

    A new mortgage refinance program.

    Yes, President Obama will seek to institute his third refinance program in three years, and like the other two his administration produced, the results will again be an Epic Fail.

    In his State of the Union address, President Obama laid out a Blueprint for an America Built to Last, calling for action to help responsible borrowers and support a housing market recovery. While the government cannot fix the housing market on its own, the President believes that responsible homeowners should not have to sit and wait for the market to hit bottom to get relief when there are measures at hand that can make a meaningful difference, including allowing these homeowners to save thousands of dollars by refinancing at today’s low interest rates. - White House.gov


    We hesitate to count off all the ways this new program is meaningless and will accomplish little for the American people who still own property that is worth less than they owe on it.  However, the most important thing to remember is:

    Interest rates have been at historic lows for three years, and those that could refinance, did refinance.  Those that could not, did not.

    The only way the government and the President could help the American people is to do what President Bush should have done in 2008 during the credit crisis... pay off most of the real estate debt, and mortgages to the banks.  This would have seriously helped people keep thier homes, while at the same time, infused trillions of dollars into the insolvent banks.  But of course we know that the Fed and taxpayers simply gave trillions to the banks, bypassing the American consumer, and they still were foreclosed upon by these institutions.

    Three to four years after the crash of the Housing bubble will do little to really help those who are having trouble paying their mortgages.  The government can say and do all they want, but the banks are not lending, they are not refinancing, and no government program, without the power to punish banks that do not participate, is simply campaign rhetoric, for which President Obama is the master of.

    Saturday, January 21, 2012

    Housing is not improving at all entering 2012

    Contrary to manipulated government and NAR reports, housing numbers are not improving by any real sense in every area of the industry.  Going into 2012, the number of housing starts, home sales, and writedowns still remain close to record lows of the last 60 years.

    Residential Write Downs: This is resurfacing for the umpteenth time. Today’s version came from HUD secretary Shaun Donovan (via Reuters). A rumored settlement involving $20-25 billion dollars in relief to distressed homeowners from banks involved with robosigning (BAC, WFC, C, JPM, ALLY etc.). The settlement might kick a $20,000 reduction for one million borrowers who are underwater.

    New Home Starts: Total housing starts fell 4.1% in December to an annual rate of 657,000, reflecting a 20.4% decline in construction of multi-family units and a 4.4% increase in single-family starts.

    Remodeling Moves Higher: “People are remodeling instead of moving” said David Crowe, chief economist of the painfully obvious at the National Association of Home Builders. The key to this are the huge number of current homeowners who either are unable to sell their currents homes, or if they do, no longer will qualify for a new mortgage, or lack a 15-25% down payment for another purchase in order to move.

    The bottom line remains: Housing is a dark spot in the economy, and the regular bottom calling we hear is best ignored. One day, housing will once again begin contributing to US economy, but until we see higher Employment and greater household formation, that time is off in the future. - Ritholtz.com

    This also doesn't take into account the new foreclosures that are expected to hit the markets in 2012 after local and federal judges overturned the MERS lawsuits and rights of banks to foreclose when they don't hold the note.

    Tuesday, December 20, 2011

    Don't fall for the Housing report euphoria as multi-family dwellings led the way

    As our old and infamous quote machine Mark Twain once said, there are lies, damn lies, and then there are statistics.  This is exactly the formula used today to promote a fallacy that housing starts exploded through analyst estimates, and led to the the fake and fabled Santa Claus Rally currently going on in the markets.

    The reason why it is such a lie?  The Department of Housing and Development claimed each separate apartment in multi-family dwellings as a new build, thus 'channel-stuffing' the total number of new residences, and corrupting the report.  (In the past, multi-family dwellings were counted as one single residence)

    Once again the US Department of Truth succeeds in fooling the algos: today's November Housing Starts number was a blockbuster: at 685K annualized units, it came higher than the highest estimate (range was 600K to 655K), and certainly higher than the average estimate of 635K. It was obviously higher than the downward revised previous number of 627K. All great: housing soaring, employment must be back. Right? Wrong. One peek under the covers shows where all the "growth" comes from - the entirety of the surge was due to the absolutely hollow 5+ multi-family units which jumped by a whopping 25% sequentially, and which as everyone in the industry knows are nothing but inventory padding by homebuilders who "build just to build." Unfortunately, as the all important 1 Unit structure trendline shows, there is absolutely no improvement in this critical series. But hey - it fooled the robots. And now it will take at least 12-24 hours before vacuum tubes process the reality of this latest spin. By then, however, we may well have had our Christmas rally. - Zerohedge



    Thus, the ultimate truth here that is being missed by the mainstream... builders are preparing for a society of renters, not home owners, and that does not bode well at all for the economy.

    Monday, December 12, 2011

    New report shows housing and unemployment go hand in hand

    While it has been conjectured for decades that there is a correlation between housing builds, prices, and growth and employment in the US, a new report shows just how strong that correlation is.

    Additionally, as the FED has kept interest rates (mortgage rates low), home sales have not increased, and in fact have fallen because unemployment has increased.





    So... with the FED mandates of employment and controlling inflation thrown out the window since 2007, do not expect housing prices or sales to increase anytime soon, as the Fed is lost in the wilderness on how to improve both.