Construction workers, cashiers and janitors are moving out of Washington, D.C., while doctors, economists and software developers are moving in. As the cost of housing increases in the city, it’s part of a larger trend, says the District of Columbia’s Office of Revenue Analysis (ORA), which has low-wage workers fleeing for the suburbs, and higher-wage workers flocking to urban cores.
The reading marks a change from almost unbridled consumer optimism in a housing market that has carried the Canadian economy since the 2008 global financial crisis, even as policy makers warn price gains in some cities are unsustainable.
Source: Fear Spreads of a Housing Crash in Canada | Alternative Economics
Bubbly cities like Singapore and Vancouver have started punishing foreign housing investors that have pushed up property prices to unaffordable – and unsustainable – rates. Foreign investors are now being taxed in many of these areas, and as a result, their real estate markets have begun to tank.During this housing burst, the most high-end, desirable locations will be hit the hardest.
Source: The Global Real Estate Bubble Is OFFICIALY Bursting | Seeking Alpha (sic)
In its recent issues, The Architectural Review has been on a mission, highlighting a phenomenon that they have named “Notopia.” Characterized by a “loss of identity and cultural vibrancy” and “a global pandemic of generic buildings,” Notopia is – in overly simplistic terms – a consequence of the cold logic of market forces combined with a disinterested populace. The AR’s campaign therefore aims to analyze this “thing of terror” and push back by raising public awareness and by proposing alternatives. And they need your help.
Anyone who knows bupkis about finance knows if you can’t sell a financial asset in three years (or more accurately, seven), particularly with public and private market valuations at record levels, the problem is not liquidity. It’s valuation. These banks are carrying these holdings on their books at inflated marks and don’t want to recognize losses……..
“It’s laughable that the biggest, most sophisticated financial firms in the world claim they can’t sell the stakes year after year,” said Dennis Kelleher, CEO of non-profit Better Markets. “Everyone else in America has to comply with the law and Wall Street should also.”
The point here is that while the housing market has recovered – the media should be asking ‘Is that all the recovery there is?’
With 30-year mortgage rates below 4%, we should be in the middle of the next housing bubble with prices and home ownership rising. The question the media should be asking is “why?” Furthermore, what happens if the “bond market bears” get their wish and rates rise?
The housing recovery is ultimately a story of the “real” unemployment situation that still shows that roughly a quarter of the home buying cohort are unemployed and living at home with their parents. The remaining members of the home buying, household formation, contingent are employed but at lower ends of the pay scale and are choosing to rent due to budgetary considerations. This explains why household formation is near its lowest levels on record despite the “housing recovery” fairytale whispered softly in the media.
While the “official” unemployment rate suggests that the U.S. is near full employment, the roughly 94 million individuals sitting outside the labor force would likely disagree. Furthermore, considering that those individuals make up 45% of the 16-54 aged members of the workforce, it is no wonder that they are being pushed to rent due to budgetary considerations and an inability to qualify for a mortgage.
The risk to the housing recovery story remains in the Fed’s ability to continue to keep interest rates suppressed. It is important to remember that individuals “buy payments” rather than houses, so each tick higher in mortgage rates reduces someone’s ability to meet the monthly mortgage payment. With wages remaining suppressed, and a large number of individuals not working or on Federal subsidies, the pool of potential buyers remains contained.
The real crisis is NOT a lack of homes for people to buy, just a lack of enough homes for people to rent. Which says more about the “real economy” than just about anything else.
While there are many hopes pinned on the housing recovery as a “driver” of economic growth in 2013, 2014, 2015, 2016 – the lack of recovery in the home ownership data suggests otherwise.
For places that were meant to be unseen, alleys take up a not-insubstantial amount of space. A 2011 report by Mary Fialko and Jennifer Hampton, graduate students at the University of Washington*, found that in Seattle, there are 217,000 square feet of public alley space downtown, 85 percent of which are underused. The report estimated that reinvigorating alleyways could increase the number of total public space in the city by 50 percent.Alleys, too, are vital players in a city’s overall ecosystem. As the need for cities to rely on more sustainable approaches has become more pressing, the proliferation of trash and flooding in alleyways has come to be seen not only an aesthetic blight, but an environmental one.And as Daniel Freedman of the Los Angeles Sustainability Collaborative says, there’s a lot of crossover between sound environmental practices and livability. Revitalizing an alleyway creates an opportunity to introduce green infrastructure, but also, Freedman says, it invites the surrounding community to collaborate on improvements and make use of the space.
The word Precariat was popularized five or so years ago to describe a rapidly expanding working class with unstable, low-paid jobs. What I call the Middle Precariat, in contrast, are supposed to be properly, comfortably middle class, but it’s not quite working out this way.
There are people like the Floridian couple who both have law degrees—and should be in the prime of their working lives—but can’t afford a car or an apartment and have moved back in with the woman’s elderly mother. There are schoolteachers around the country that work second jobs after their teaching duties are done: one woman in North Dakota I spoke to was heading off to clean houses after the final bell in order to pay her rent.
Many of the Middle Precariat work jobs that used to be solidly middle class. Yet some earn roughly what they did a decade ago. At the same time, middle-class life is now 30 percent more expensive than it was 20 years ago. The Middle Precariat’s jobs are also increasingly contingent—meaning they are composed of short-term contract or shift work, as well as unpaid overtime. Buffeted by Silicon Valley-like calls to maximize disruption, the Middle Precariat may have positions “reimagined.” That cruel euphemism means they are to be replaced by younger, cheaper workers, or even machines.
Aside from the issues raised in the article, Ms. Leadsom was on the BBC when the Brexit win was announced. Her response – now is the time to take a deep breathe and think about the next steps. Right, jump off the cliff and then think about the parachute. Maybe her campaign symbol should be the Coyote from the Road Runner cartoons.
Evidence that damages her bid to become next PM
Source: Andrea Leadsom could be PM in weeks, and these telling discoveries prove she’d be a disaster | The Canary
The result is what has been called secular stagnation, new normal, ugly deleveraging, balance sheet recession and Japanification. I call it “QE infinity”: a prolonged period of low growth and low interest rates, where policy-makers persist in implementing policies that won’t fix the problem. They won’t ever say they’re out of ammunition, but central bankers are starting to look like naked emperors. “Is monetary policy by itself going to create growth, employment? You seem to give a lot of responsibilities to the European Central Bank. Can monetary policy create growth by itself? The answer is no. Monetary policy can create the economic conditions for growth,” ECB President Mario Draghi told the European Parliament last year. Put differently, there is only so much monetary policy can do to re-start growth: it is an anaesthetic, not a cure. to the European Central Bank. Can monetary policy create growth by itself? The answer is no. Monetary policy can create the economic conditions for growth,” ECB President Mario Draghi told the European Parliament last year. Put differently, there is only so much monetary policy can do to re-start growth: it is an anaesthetic, not a cure.
Cutting edge historians are breaking new ground to help us understand the dogged persistence of white racism…
So much so that historian Gerald Horne poses a radical reinterpretation of the founding of the nation’s origins, in his trailblazing book, The Counter-Revolution of 1776. “Ironically, the founders of the republic have been hailed and lionized by left, right and center for—in effect—creating the first apartheid state,” he writes.
Citing previously ignored evidence, Horne argues convincingly that a combination of alarm over the growing abolition sentiment in Britain, well underway by the late 1700s, and the deep-rooted fear of potential British support for slave uprisings were major motivating forces behind the desire for “independence” in the first place.
In the summer of 2007, two inconsequential Bear Stearns property-related funds were gated and then liquidated, exposing the reality of the US housing bubble and catalyzing the collapse of the financial system. While equity markets have rebounded exuberantly post-Brexit, suggesting all is well, British property-related assets have tumbled and, as The FT reports, Standard Life has been forced to stop retail investors selling out of one of the UK’s largest property funds for at least 28 days after rapid cash outflows were sparked by fears over falling real estate values. As one analyst warned,
In a market the size of America’s prices should be lower than in other industrialised economies. By and large, they are not. Though American companies now make a fifth of their profits abroad, their naughty secret is that their return-on-equity is 40% higher at home.
Germany is building the world’s biggest ‘bicycle autobahn’ to connect 10 cities and remove 50,000 cars from the road every day. With the popularity of e-bikes growing too, is Europe about to see a new era of long-distance cycle commuting?
Chattanooga’s form-based code is part of an innovative vision for the city’s economic, environmental and cultural future. Following a recent visit to Chattanooga, Bruce Katz wrote in a Brookings Institute blog, “Something special is happening in Chattanooga.” As Katz points out, too often venture capitalists “pay too little attention to small and mid-sized cities with …