“In theory, there is no difference between theory and practice. In practice there is.”
Please Sign-Up for Updates
Please Follow Me On:
How nauseating: NYC provides tax support to billionaires:
New York City’s method of assessing property values is so out of whack that the buyer of the most expensive apartment ever sold — a $100 million duplex overlooking Central Park — pays taxes as if the place were worth just $6.5 million.
With controversial tax breaks granted to the One57 condo tower, the total property tax bill for the spectacular penthouse is just $17,268, an effective rate of 0.017 percent of its sale price.
By contrast, the owner of a nearby condo at 224 E. 52nd St. that recently sold for $1.02 million is paying an effective rate of 2.38 percent, or $24,279, according to data compiled for The Post by the Revaluate.com real-estate information website.
“I should like to have it said of my first Administration that in it the forces of selfishness and of lust for power met their match. I should like to have it said of my second Administration that in it these forces met their master.” – FDR
“Yes we can.” – Obama – But we didn’t.
…income is how you get out of poverty, assets are how you stay out.
While income inequality in the U.S. recently hit its highest peak in 78 years, the wealth gap is even worse. The racial wealth gap—the difference in net worth between households of color and that of their white counterparts—has more than tripled since 1984. Today, African-American and Latino households have less than $1 in assets for every $6 that white households own. This is taking place in the context of a major demographic shift that will only magnify the costs of the racial wealth gap. By the end of the decade, the majority of youth will be people of color, and by 2044, the population majority overall will be people of color.
Assets and ownership are fundamental to economic opportunity and mobility. A child with a savings account in their own name is 2.5 times more likely to complete college than a child without one. That number jumps to 4.5 times more likely if that child is from a low-income household. Homeownership is linked to inheritance and access to credit, while access to credit is based on your income…..
(via Planetizin) Income is How You Get Out of Poverty, Assets are How You Stay Out — Rooflines.
The U.S. overwhelmingly remains the most popular place in the world among foreign commercial real estate investors to place capital, according to the 23rd annual survey among members of the Association of Foreign Investors in Real Estate (AFIRE).
New York City returned to its accustomed spot as the top global market for foreign investment in real estate after being briefly displaced in 2014 by London. With the exception of last year, New York has held the top rank both globally and among U.S. cities since 2010.
NYC Recaptures Top Global Investment Market in Foreign Investor Survey – CoStar Group.
Republicans prepare to cook-the-books to justify tax cuts. Most likely, they will simply increase the deficit and then try (yet again) to use that as an excuse to cut social services.
Individual states repeatedly cooked-the-books on pension obligations assuming unrealistic investment returns creating huge unfunded obligations and credit downgrades (New Jersey’s pension problems contributed to that state having the second-lowest credit rating of any State, beaten only by Illinois which also has tremendous unfunded pension obligations.)
The Bush and Reagan tax cuts didn’t spur economic growth and Gov. Brownback has devastated the Kansas budget with tax cuts without growth (and surprise, surprise now proposes cuts in social services). Now the Republicans are preparing to do the same on the Federal level.
For example, last year the JCT estimated that Rep. Dave Camp’s (R-MI) tax bill could generate between $50 billion and $700 billion in additional revenue over a decade thanks to faster growth, but the bigger number included the assumption of large spending cuts that weren’t in his bill. The estimate also didn’t take into account any negative impacts that might arise from those steep cuts. As Chye-Ching Huang and Paul N. Van de Water at the Center for Budget and Policy Priorities write, “If highly optimistic economic and fiscal assumptions like these are included in official cost estimates but then fail to materialize, the result will be higher deficits and debt.”
This is particularly true because there’s little evidence that steep tax cuts will lead to higher economic growth, especially if they end up increasing the deficit. A recent paper from the Brookings Institution found that while tax cuts can have the impact of encouraging people to work, save, and invest, which can generate growth, “if the tax cuts are not financed by immediate spending cuts they will likely also result in an increased federal budget deficit.” For example, it doesn’t find evidence that the Bush tax cuts in 2001 and 2003 led to economic growth. Multiple studies have come to the same conclusion of President Regan’s 1986 tax cuts.
Small-scale urban spaces can be rich in biodiversity, contribute important ecological benefits for human mental and physical health (McPhearson et al., 2013), and overall help to create more livable cities. Micro_urban spaces are the sandwich spaces between buildings, rooftops, walls, curbs, sidewalk cracks, and other small-scale urban spaces that exist in the fissures between linear infrastructure (e.g. roads, bridges, tunnels, rail lines) and our three dimensional gridded cities.
via Urban Life and a Microscopic Attention | Sustainable Cities Collective.
Savills’ Report on the World’s 12 key cities: worth taking the time to read.
We are living in the midst of the urban century. Though it is common knowledge that the world is urbanizing, it can be striking to visualize this growth on a map. This animation from Unicef maps countries’ urban populations from 1950 to 2050, and shows that urbanization is a global phenomenon set to continue for decades:
Maps and Measurements of the Expansion of Cities | Sustainable Cities Collective.
Prominent expert on Chinese economy warns of depression and possible crash:
China, for all its talk about economic reform, is in big trouble. The old model of relying on export growth and heavy investment to power the economy isn’t working anymore…
… starting in 2008, China sought to counter global recession with huge amounts of ill-advised investment in redundant industrial capacity and vanity infrastructure projects—you know, airports with no commercial flights, highways to nowhere, and stadiums with no teams…
People are crazy if they believe any government statistics, which, of course, are largely fabricated…actual Chinese GDP is probably a third lower than is officially reported…
Property sales are in decline, steel production is falling, commercial long-and short-haul vehicle sales are continuing to implode, and much of the growth in GDP is coming from huge rises in inventories across the economy. We track the 400 Chinese consumer companies listed on the Shanghai and Shenzhen stock markets, and in the third quarter, their gross revenues fell 4% from a year ago. This is hardly a vibrant economy…
Rampant capital flight could turn into a rout given the ridiculous concentration of wealth in China, cutting the seemingly impregnable foreign reserves dramatically…
China is riding an involuntary credit treadmill where much new money has to be hosed into the economy just to sustain ever-mounting bad-debt totals. Capital efficiency, or the amount of capital it takes to generate a unit of GDP growth, has soared as a result…
The Chinese home real estate market, mostly units in high-rise buildings, is truly bizarre. Many Chinese regard apartments as capital-gains machines rather than sources of shelter. In fact, there are 50 million units in China that are owned but vacant. The owners won’t rent them because used apartments suffer an immediate haircut in value.
It’s as if the government created a new asset class that no one lives in. This fact gives lie to the commonly held myth that the buildout of all these empty towers and ghost cities is a Chinese urbanization play. The only city folk who don’t own housing are the millions of migrant laborers continuously flocking to Chinese cities. Yet, they can’t afford the new housing…
Families have more than half of their wealth in housing, including the less affluent in recent years who have taken to buying fractional shares in luxury apartments and town houses. Local governments, which rely on land sales to developers and real estate transfer taxes for something like 35% of their revenue, would be in a bad way in a housing-price bust…
Interestingly, liquidity seems to be a growing problem in China. Chinese corporations have taken on $1.5 trillion in foreign debt in the past year or so, where previously they had none. A lot of it is short term. If defaults start to cascade through the economy, it will be more difficult for China to hide its debt problems now that foreign investors are involved. It’s here that a credit crisis could start…
Great FDR Quote: Jesse’s Café Américain: Why The Democrats Got Their Clocks Cleaned jessescrossroadscafe.blogspot.com/2014/11/why-de…
James McCarthy has 30+ years in finance and private equity, corporate structuring and work-outs, and raising debt and equity as an investor, lender, investment manager, portfolio manager, financial advisor, corporate consultant, work-out consultant, and city planner. Clients have included domestic and offshore institutional investors, investment funds, hedge funds, high net worth investors, and private companies. I hold an MBA from Columbia University and a Master of City & Regional Planning from Rutgers University.
Special interests include green and sustainable design, resilience, passive energy design, waterfront, walkability, transit-oriented design, affordable housing, high-quality and innovative architecture and construction technology, mixed-use development, and the inclusion of public spaces and landscape architecture.