News: Real Estate, Risk, Economics. Feb. 15, 2017

Linking ≠ endorsement.

Table of Contents
(Click to sections below.)

1) Why Greenspan Knew, But Didn't Act – YouTube

2) Bay Area immigrant tech workers are pulling out of buying real estate over Trump visa concerns – San Francisco Business Times

3) CFPB Anti-Kickback Rules | Mortgage Lenders

4) The Greed Report: Tempted by the real estate market? Investor beware!

5) CBRE CEO Weighs in on Commercial Real Estate, Rates – Bloomberg

6) US Oil Output Heads to 48-Year High as Shale Surge Resumes – Bloomberg

7) Hidden in Plain Sight: Illicit Financial Flows – The Minskys

8) Lawmakers Should Not Use Disproven Trickle-Down Myth to Ramrod Tax Cuts for the Rich | Tax Justice Blog

9) What we know—and don't know—about the declining labor force participation rate | Brookings Institution

10) New York Multifamily | Real Estate Bubble USA

11) Income share for the bottom 50% of Americans is 'collapsing,' new Piketty research finds – MarketWatch

12) New Orleans tornado: 5 things to know about filing an insurance claim | NOLA com

13) Verisk Maplecroft | Environmental Risk Outlook 2017: POTUS, protests, exposure and disclosure

14) Wall Street Pouring Money Back Into Oil And Gas | OilPrice com

15) 10 hottest rental markets to make investors' landlord dreams come true

16) City commissioners OK the vast majority of requests to exceed zoning rules—is that bad? – Curbed LA

17) Meet The Wealthy Investors Buying Cheap Portland Apartment Buildings And Driving Up Rents . News | OPB

18) Commercial Real Estate Executives Cautiously Optimistic

19) Nashville real estate market can handle growth

20) Real estate trend: Next generational housing on the rise – azfamily com 3TV | Phoenix Breaking News, Weather, Sport

21) Leasing & Marketing: Maximizing Exposure to Meet Consumer Expectations – YouTube

22) De Blasio's affordable housing agenda to get even more ambitious in 2017 – Curbed NY

23) 4 Ways to Better Accommodate Elderly Tenants in Your Rentals

24) China Jan FX reserves fall more than expected to $2.998 trillion, near 6-year low

25) Could a £400bn plan to refreeze the Arctic before the ice melts really work? | World news | The Guardian

26) Black Real Estate Investment Team To Invest In Black Miami | WLRN

27) Competition from China Reduced Domestic Innovation

28) Three reasons we're not yet at full employment – The Washington Post

29) On inequality in China | Le blog de Thomas Piketty

30) HUD ANNOUNCES DISASTER ASSISTANCE FOR LOUISIANA TORNADO VICTIMS: Foreclosure protection offered to displaced families | HUDNo_17-018

31) US Winter Storms, Tornadoes Kill 27 And Cause $1B in Losses

32) R Street Applauds Texas Bill to Rein in Hail Claims

33) Wisconsin Governor Lets Apartment Sprinkler Requirement Stand

34) As La Niña Fades, Return of El Niño a Possibility

35) Fire Causes About $800K in Damage to Condo Buildings at Maine Ski Resort

36) Mississippi University to Demolish 5 Buildings After Jan. 21 Tornado

37) Alaska Governor Declares Disaster for 2 Bering Sea Communities

38) North Carolina Coal Ash Pit Neighbors Told to Waive Claims to be Compensated

39) EPA: East Chicago Residents Should Assume Lead Water Lines, Use Filter

40) Top 12: 'Diamonds in the rough' in Detroit real estate | MLive com

41) Spokane seeks help from the Washington Legislature to fight foreclosed 'zombie properties' | The Spokesman-Review

42) Ecuador's Left-Wing Success Story | The Nation

43) Flood Concerns Dismissed by Dam Managers California 12 Years Ago

44) The 4 Commandments of Using Creative Investing Responsibly

  1.    Why Greenspan Knew, But Didn't Act – YouTube

    My last post mentioned Greenspan in terms of why he knew concerning the dot-com bubble but not the housing bubble. Let's remember that Greenspan testified after the crash of the Great Recession had started that he was shocked the claimed self-regulation of the market had failed, that those running the huge corporations didn't do what was sound, etc.

    Does it sound like Sebastian Mallaby doesn't realize this?

    In conversation with Institute President Rob Johnson, Sebastian Mallaby — Paul Volcker Senior Fellow at the Council on Foreign Relations and author of a new book on Alan Greenspan's tenure as Chairman of the Federal Reserve — parses Greenspan's legacy in context of the NASDAQ and sub-prime mortgage crises. Mallaby's research shows that Greenspan knew more about the looming perils than people realize. "If he was the man who knew, why was he not the man who acted?" was the focal question of the book. One reason may be the limited tools available to the Fed.

    Add your comment. Including the article/link number will help.


  2.    Bay Area immigrant tech workers are pulling out of buying real estate over Trump visa concerns – San Francisco Business Times

    Okay, this will boost renting. But you knew that.

    Add your comment. Including the article/link number will help.


  3.    CFPB Anti-Kickback Rules | Mortgage Lenders

    Add your comment. Including the article/link number will help.


  4.    The Greed Report: Tempted by the real estate market? Investor beware!

    Add your comment. Including the article/link number will help.


  5.    CBRE CEO Weighs in on Commercial Real Estate, Rates – Bloomberg

    Too rosy or just waiting to see?

    Bob Sulentic, CBRE Group chief executive officer, discusses the state of the commercial real estate market with Bloomberg's Julie Hyman and Mark Barton on "Bloomberg Markets."

    Add your comment. Including the article/link number will help.


  6.    U.S. Oil Output Heads to 48-Year High as Shale Surge Resumes – Bloomberg

    "Improved economic growth in both developed and emerging market countries is expected to contribute to higher global oil demand over the next two years."

    Add your comment. Including the article/link number will help.


  7.    Hidden in Plain Sight: Illicit Financial Flows – The Minskys

    Tackling IFFs [Illicit Financial Flows] is in the interest of the US.

    Add your comment. Including the article/link number will help.


  8.    Lawmakers Should Not Use Disproven Trickle-Down Myth to Ramrod Tax Cuts for the Rich | Tax Justice Blog

    Trickle-down economics is generally very bad for landlords because it is generally very bad for a landlord's tenants.

    Add your comment. Including the article/link number will help.


  9.    What we know—and don't know—about the declining labor force participation rate | Brookings Institution

    The share of prime-age men in the labor force has declined from its peak of 98 percent in 1954 to 88 percent today, reports the Council of Economic Advisers. This precipitous decline was largely masked as women entered the workforce in record numbers up until the 1990s, when their participation rate began to stagnate and eventually decline as well: ….

    We can pay people to dig holes and then refill them or we can just pay them.

    Add your comment. Including the article/link number will help.


  10.    New York Multifamily | Real Estate Bubble USA

    What percentage of NYC's situation is due to higher standards concerning foreign investors and also due to sanctions on Russia and on China's clampdown on money fleeing from China?

    Let's not look at these issues only in isolation.

    Add your comment. Including the article/link number will help.


  11.    Income share for the bottom 50% of Americans is 'collapsing,' new Piketty research finds – MarketWatch

    A new research paper from economists including Thomas Piketty finds that the bottom 50%'s share of income in the United States is "collapsing."

    If your tenants fall within that 50%, watch out and stand up for them. The collapse won't be confined to them either if we don't stop the trend. Let's stop it and reverse it.

    Add your comment. Including the article/link number will help.


  12.    New Orleans tornado: 5 things to know about filing an insurance claim | NOLA.com

    The advice in this article is very general but a good starting place for the novice.

    Add your comment. Including the article/link number will help.


  13.    Verisk Maplecroft | Environmental Risk Outlook 2017: POTUS, protests, exposure and disclosure

    We are fully on board with this article.

    Add your comment. Including the article/link number will help.


  14.    Wall Street Pouring Money Back Into Oil And Gas | OilPrice.com

    They're counting on driving demand and global growth in general, but solar generation and electric vehicles will not be deterred. We've already tipped the balance for clean energy. Global Warming will only hasten the day when all this carbon-fuel industry foot-dragging will come to a complete end. The sooner, the better.

    Add your comment. Including the article/link number will help.


  15.    10 hottest rental markets to make investors' landlord dreams come true

    This is a good start. Your research should go much deeper.

    Add your comment. Including the article/link number will help.


  16.    City commissioners OK the vast majority of requests to exceed zoning rules—is that bad? – Curbed LA

    A USC study published last spring predicted that over the next two years, rents will "soar" and vacancy rates will stay dangerously low.

    Something not mentioned is the question of Trump's immigration plans. If he isn't blocked, then a city such as Los Angeles, with a very high percentage of undocumented residents from Mexico, could see a significant reduction in renters.

    Add your comment. Including the article/link number will help.


  17.    Meet The Wealthy Investors Buying Cheap Portland Apartment Buildings And Driving Up Rents . News | OPB

    In our mixed-economy system, landlords and management firms deserve reasonable profits for proper work; however, tenants are human beings who deserve to be protected and helped. The real-estate industry must find the right balance: a win-win.

    Add your comment. Including the article/link number will help.


  18.    Commercial Real Estate Executives Cautiously Optimistic

    "As our Q1 Sentiment Index shows, leaders in commercial real estate are cautiously optimistic about what policy changes may bring, yet concerned about any potential unintended consequences that could threaten real estate's vast contributions to the U.S. economy."

    Add your comment. Including the article/link number will help.


  19.    Nashville real estate market can handle growth

    Smart observation:

    … today's projects are better positioned to handle a little softness. Most current apartment projects are capitalized properly, many with 30 or 40 percent equity. This was not the case in the lead up to the last economic downturn.

    Today's projects are less dependent on borrowed money. This gives them more time and flexibility to maneuver through short-term oversupply.

    Add your comment. Including the article/link number will help.


  20.    Real estate trend: Next generational housing on the rise – azfamily.com 3TV | Phoenix Breaking News, Weather, Sport

    Do you plan for any of these for rentals?

    Add your comment. Including the article/link number will help.


  21.    Leasing & Marketing: Maximizing Exposure to Meet Consumer Expectations – YouTube

    At the 2017 NMHC Annual Meeting in San Diego, we sat down with Todd Katler, CEO of Anyone Home, to discuss how leasing and marketing intersect within the multifamily industry, how multifamily is keeping up with consumer expectations and how property owners need to use the correct advertising sources to mitigate exposure.

    Add your comment. Including the article/link number will help.


  22.    De Blasio's affordable housing agenda to get even more ambitious in 2017 – Curbed NY

    It's too bad we have to go at this issue in such a piecemeal fashion.

    Add your comment. Including the article/link number will help.


  23.    4 Ways to Better Accommodate Elderly Tenants in Your Rentals

    Renting to elderly tenants can be a great setup for most landlords. These tenants tend to receive consistent income through pensions and/or social security (therefore they rarely miss payments), are less likely to conduct illegal activity on your property, and generally live in the same place for long periods of time. But if you've never rented to elderly tenants before, you'll want to carefully think about a few important issues, including the following: …

    Add your comment. Including the article/link number will help.


  24.    China Jan FX reserves fall more than expected to $2.998 trillion, near 6-year low

    For 2016 as a whole, China burned through nearly $320 billion of reserves, on top of a record drop of $513 billion in 2015.

    The Fed will hold off, but Trump will complain about China manipulating its currency.

    Add your comment. Including the article/link number will help.


  25.    Could a £400bn plan to refreeze the Arctic before the ice melts really work? | World news | The Guardian

    How much longer are the Anthropogenic-Global-Warming deniers going to even have a voice?

    Climate change deniers claim this loss is matched by gains in sea ice around the Antarctic. It is not. Antarctic ice fluctuations are slight compared with the Arctic's plummeting coverage and if you combine the changes at both poles, you find more than a million sq km of ice has been lost globally in 30 years.

    Add your comment. Including the article/link number will help.


  26.    Black Real Estate Investment Team To Invest In Black Miami | WLRN

    Add your comment. Including the article/link number will help.


  27.    Competition from China Reduced Domestic Innovation

    Add your comment. Including the article/link number will help.


  28.    Three reasons we're not yet at full employment – The Washington Post

    What I've been saying:

    … there are still millions of workers who would like more hours of work and millions more on the sidelines who could perhaps be pulled into a welcoming job market. That extra slack is still modulating any building wage pressure.

    Add your comment. Including the article/link number will help.


  29.    On inequality in China | Le blog de Thomas Piketty

    The problem is that the growth in income of the poorest 50% of the Chinese population has only been half the average. According to our estimates, which must be considered as lower bound levels of inequality in China, the share of the poorest 50% in the national income in China fell from 28% to 15% between 1978 and 2015, while the income of the 10% richest rose from 26% to 41%. The extent of the phenomenon is impressive: the levels of inequality in China are clearly higher than in Europe and are rapidly approaching those observed in the United States.

    We find the same evolution, but even more dramatically, for the concentration of private property. Between 1995 and 2015 the share of private wealth held by the richest 10% rose from 41% to 67%. In 20 years, China has gone from a level lower than that observed in Sweden to a level approaching that of the United States. This conveys strong inequality in the access to property wealth (almost entirely privatised during this period) and a process of partial privatisation of companies, reserved for small groups of people in extremely opaque conditions. At this pace, China runs the risk of developing a form of pluto-communism, with a stronger concentration of private property than in capitalist countries, all guaranteed by a single Communist party.

    Yes, but it must be made perfectly clear that when the dictator, Xi, compares China's one-party dictatorship against "democracy," he does so against the US and not the most egalitarian democracies of the West. In addition, it was the CCP that brought on China's horrendous environmental disaster, which is largely covered up so Western eyes and ears don't learn of it except in the most glaring circumstances, such as when people in China's capital city can't see across the street for the highly toxic smog.

    Add your comment. Including the article/link number will help.


  30.    HUD ANNOUNCES DISASTER ASSISTANCE FOR LOUISIANA TORNADO VICTIMS: Foreclosure protection offered to displaced families | HUDNo_17-018

    U.S. Housing and Urban Development today announced HUD will speed federal disaster assistance to the State of Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms, tornadoes, and straight-line winds.

    This week, President Trump issued a disaster declaration for Livingston and Orleans parishes. The President's declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county.

    Add your comment. Including the article/link number will help.


  31.    U.S. Winter Storms, Tornadoes Kill 27 And Cause $1B in Losses

    Add your comment. Including the article/link number will help.


  32.    R Street Applauds Texas Bill to Rein in Hail Claims

    I have not read the bill. The first thing I'd look for is whether it's just another "tort reform" bill designed to strip people of the ability to be made whole via punitive and other forms of damages. Most such legislation doesn't seek a real fair balance but skews way over to the corporate side against the consumer and little folks, which I think is a very bad thing.

    Add your comment. Including the article/link number will help.


  33.    Wisconsin Governor Lets Apartment Sprinkler Requirement Stand

    If you are priced out of being able to buy a new home because circuit interrupters are required, so what? Rent. If you don't like that, change the system so everyone has circuit interrupters regardless of income and wealth. Who's going to pay for it? Productivity gains, of course.

    Add your comment. Including the article/link number will help.


  34.    As La Niña Fades, Return of El Niño a Possibility

    … there is a chance of the appearance of El Niño as early as March to May 2017 ….

    That would be highly unusual, but what's new? I suspect a quick return would be an even stronger return.

    Add your comment. Including the article/link number will help.


  35.    Fire Causes About $800K in Damage to Condo Buildings at Maine Ski Resort

    Add your comment. Including the article/link number will help.


  36.    Mississippi University to Demolish 5 Buildings After Jan. 21 Tornado

    Add your comment. Including the article/link number will help.


  37.    Alaska Governor Declares Disaster for 2 Bering Sea Communities

    Add your comment. Including the article/link number will help.


  38.    North Carolina Coal Ash Pit Neighbors Told to Waive Claims to be Compensated

    … liquefied coal ash containing arsenic, lead, mercury and other heavy metals spilled from a Duke Energy plant ….

    Did somebody say, "Clean coal"? What's that?

    Add your comment. Including the article/link number will help.


  39.    EPA: East Chicago Residents Should Assume Lead Water Lines, Use Filter

    Shower and bathe in it and water your vegetable garden with it? You'd need a whole-house filtration system. The article doesn't mention a tax credit or anything of the sort.

    Add your comment. Including the article/link number will help.


  40.    Top 12: 'Diamonds in the rough' in Detroit real estate | MLive.com

    It's interesting to see the range.

    Add your comment. Including the article/link number will help.


  41.    Spokane seeks help from the Washington Legislature to fight foreclosed 'zombie properties' | The Spokesman-Review

    …zombie properties. The grass and shrubs in their lawns grow with the spring rains then die in the summer, creating fire hazards. Their yards become dumping grounds for unwanted trash. Their exterior walls become canvases for graffiti artists. Their interiors are torn up, sometimes to strip out wire for recyclable metal, sometimes just for vandalism.

    They become magnets for drug use and other illegal activity.

    Add your comment. Including the article/link number will help.


  42.    Ecuador's Left-Wing Success Story | The Nation

    You hear the dictator of China say that democracy is bad. You hear libertarian-capitalists say that leftist governments never work. They're both wrong.

    If you're for the global plutocracy, you don't like what's been happening in Ecuador. If you're for the common people, you want Ecuador to do even more that runs contrary to both Xi and the libertarians.

    Add your comment. Including the article/link number will help.


  43.    Flood Concerns Dismissed by Dam Managers California 12 Years Ago

    … "it is acceptable for the emergency spillway to sustain significant damage."

    Too risky!

    Add your comment. Including the article/link number will help.


  44.    The 4 Commandments of Using Creative Investing Responsibly

    Cautionary advice

    Add your comment. Including the article/link number will help.


If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.

Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.

Did this post help you? Let us know by leaving your comment below.

Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.

Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.

We do not necessarily fact checked the contents of every linked article or page, etc.

If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.

The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?

For our part, we believe in strong regulations and strong regulators.

We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.

We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.

Subscribe