Linking ≠ endorsement. Enjoy and share:
- What Property Evaluations Don't Tell You – Latest News and Guides for Landlords – URentGuide
Brent Foster writes:
In most cases, the landlord is required to provide a tenant with at least a 24 hour notice prior to entering the property which gives the tenant a chance to straighten things up and try to hide anything they are not supposed to be doing. Thinking back to when you were growing up, you knew what you could and could not get away with. This also applies to tenants as they have had many years of practice to find was to get around the rules.
It's unfortunate but true.
- Mish's Global Economic Trend Analysis: Scathing Attack on Rajoy in Spanish Press; Spain on Brink of Deflation, CPI Goes Negative
Spain has pulled out of a recession but is falling into a deeper depression. It sounds impossible, but it's not.
They've had some growth, but deflation is showing up in a consistent manner.
Their policies have been wrong. They've been taxing the wrong people, etc.
Mish Shedlock quotes:
Many analysts applaud the Government's actions more taxes, lower wages and drastic cuts to the weakest. These pseudo-experts overlook that confiscatory tax policy, the government deficit, and the lack of credit.
The crisis is not only unseemly, it is also vile.
That's hard-hitting; but at 26% unemployment, the people are desperate.
Spain needs to save its base, its citizenry. It can be done, but Spain must drop all austerity measures and adopt Modern Money Mechanics. They need the government to spend while they lower taxes and increase services for the poor to put them all to work doing truly productive things for the economy as a whole.
Spain needs to do these things whether the rest of Europe likes it or not, whether Germany likes it or not.
- RealtyTrac: Older housing stock offers attractive bargains | 2013-10-31 | HousingWire
"The high percentage of homes that are at least 20 years old and likely in need of some major repairs is eye-opening," said Jake Adger, chief economist at RealtyTrac. "However, given the low inventory of homes available for sale in today's market, this challenge of aging U.S. housing supply can also be an opportunity for buyers looking for a bargain…."
- Off the Charts Blog | Center on Budget and Policy Priorities | The Myth of the Exploding Federal Government, Part 2
increased spending on safety net programs because of the recession — is both appropriate and temporary. Congressional Budget Office (CBO) projections show that federal spending on low-income programs other than health care has started to decline and will fall substantially as a percent of gross domestic product (GDP) as the economy recovers. By the end of the decade, it will fall below its average level as a percent of GDP over the prior 40 years, from 1973 to 2012. (See graph.) Since these programs are not rising as a percent of GDP, they do not contribute to our long-term fiscal problems.
We hope that's good news to you.
- Beware the monetary cliff – Economics – AEI
Great points by John H. Makin:
First, with nominal interest rates held at zero, the real interest rate—the nominal interest rate minus inflation—rises as inflation decreases and deflation increases. The increase in the real interest rate discourages investment and other spending.
Second, as deflation accelerates, the demand for cash rises. Deflation measures the real return on cash, a largely riskless asset. In Japan, during periods of 1.5 to 2.0 percent deflation, holders of cash and other highly liquid assets were earning a 2.0 percent real return. Faster deflation means that demand for cash keeps increasing. The rise in the demand for cash pushes down the demand for goods, accelerating the deflation. As resulting deflation expectations become embedded in the minds of households, the central bank faces the formidable task of reversing such expectations. Left alone, a drop in deflation leads only to further deflation.
Third, the real burden of debt rises for households, firms, and the federal government when deflation occurs. Falling prices mean that the cost of paying back debt rises. For example, a borrower paying 4 percent interest on a $100,000 loan must still pay $4,000 per year even though the purchasing power of that $4,000 is rising with persistent deflation. The rising real burden of debt leads to a higher incidence of default, which depletes lender assets, lender ability, and willingness to keep lending.
Fourth, labor markets suffer in deflationary periods. During deflation, wages tend to fall more slowly than prices, similar to nominal interest rates at the zero bound. A faster fall in prices pushes up real wages and reduces the demand for labor, boosting unemployment, further depressing demand, and accelerating deflation. Real wage growth in the United States has been steadily increasing toward zero since mid-2011 (see figure 3), due largely to the inflation slowdown shown in figures 1 and 2. At the same time, employment growth has been tepid. If deflation occurs, real wages will rise even faster and employment growth will be weaker.
- FHA Issues New Handbook for Forward Lending Policy | Reverse Mortgage Daily
Jason Oliva reports:
The Federal Housing Administration (FHA) is developing a new forward mortgage policy handbook that will consolidate all FHA Single Family requirements into one authoritative source.
The draft section of the new handbook is based on the Title II mortgage process from application through endorsement, starting with a Table of Contents that identifies broad categories, such as Origination/Processing, as well as detailed sub-categories like Borrower Obligation Requirements.
- Clinton's Legacy: The Financial and Housing Meltdown – Reason.com
Bill Clinton is certainly full of himself these days. That might have something to do with the fact that no one is likely to ask why he hasn't owned up to his share of the blame for the housing and financial bust.
Actually, Clinton said quite a while ago that he regrets that he was taken in by the hyper-deregulators, the actions of whom led largely to the crash.
There's no doubt that Clinton erred, but you will kindly note from the following quote what is missing from the REASON article:
"This is a mentality that doesn't understand the nature of systemic risks in financial systems," says Joseph Stiglitz, Nobel Prize-winning economist and former chairman of President Clinton's Council of Economic Advisers. "It's social Darwinism."
Economic experts say that Gramm and others are to blame for the current crisis that is shaking Wall Street.
Gramm's successful effort to pass banking reform laws in 1999 [Gramm—Leach—Bliley Act], which reduced decades-old regulations separating banking, insurance and brokerage activities, helped to create the current economic crisis.
"As a result, the culture of investment banks was conveyed to commercial banks and everyone got involved in the high-risk gambling mentality. That mentality was core to the problem that we're facing now," Stiglitz says.
Lakshman Achuthan, managing director of the Economic Cycle Research Institute, also asserted that Gramm was mistaken, criticizing him and economic policymakers for not taking the risk of recession seriously enough.
"There is a recession — that is clear and it doesn't make sense to blame middle-class folks," says Achuthan. "Policy holders should be held fully accountable for letting Wall Street run amok."
Achuthan agrees that Gramm's banking reform laws helped lead to the subprime mortgage crisis as commercial banks started taking enormous risks.
"We were setting up this bonfire years ago — the deregulation, the inordinate amount of liquidity given to the system all set the stage for the bubble and the bust," he explains.
Bill Clinton deliberately moved the Democratic Party relatively closer to the economic ideology known as Austrian so he could get enough votes from the center to win and to be reelected. Those who were opposed to the move, were opposed not only to Gramm—Leach—Bliley but also to the later extreme relaxation of lending ratios, which mostly occurred under George W. Bush. Had Gramm—Leach—Bliley not past and had lending ratios remained where they were before Bush, Wall Street Investment Banks at the time would not have thrown money at sub-prime mortgages starting in Orange County and then bundling/securitizing those in with true AAA loans. The bubble would not have occurred nearly to the extent it did.
Meanwhile, REASON is still calling for near-total, if not total, deregulation, as if we don't have to fear "snake-oil" salespeople anymore.
All of that said, we're opposed to overly relaxing lending standards because we want to help protect people from overextending themselves.
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