News: Real Estate, Risk, Economics. Jul. 13, 2017

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Table of Contents
(Click to sections below.)

1) US manufacturing index hits highest mark in nearly 3 years – Jul. 3, 2017

2) Treasury yields inch lower after Fed minutes – MarketWatch

3) The High Cost of Insurance Fraud in America

4) Amateur fireworks cause damage across Western Washington | KING5[dot]com

5) 2 New Studies Undermine Climate Denial Arguments | InsideClimate News

6) Report: Here are the 5 most 'tech ready' cities in the world – TechRepublic

7) NotPetya's lesson for infrastructure: 'Everything will be the new XP' – The Parallax

8) David Cameron says people who oppose austerity are 'selfish' | The Independent

9) Why Roman concrete still stands strong while modern version decays | Science | The Guardian

10) More than 1,000 income-subsidized housing units in San Francisco are getting free gigabit internet – Recode

11) This tax move has made a lot of real-estate investors rich – MarketWatch

12) California Senate OKs Real Estate Fee to Fund More Housing | California News | US News

13) Theresa May defends public sector pay cap under pressure from Labour | Business | The Guardian

14) How to create jobs in the age of robots and low growth

15) Employment Situation Summary

16) United States Unemployed Persons | 1950-2017 | Data | Chart | Calendar

17) Years into recovery and with full employment, US wages still lag | Reuters

18) The Big Downgrade That Fueled the Subprime Crash – Bloomberg

19) California Blazes Among Numerous Wildfires in Western US

20) Wage Growth Slows Sharply | Beat the Press | Blogs | Publications | The Center for Economic and Policy Research

21) Even the IMF says austerity doesn't work. It's the zombie idea that will not die | Phil McDuff | Opinion | The Guardian

22) Janet Yellen's complacency is criminal – Renegade Inc

23) Weather Gets Weird as Record Rainfall Follows Record Drought – Bloomberg

24) The Breaking Point & Death Of Keynes | RIA

25) Is This the End of China's Second Housing Bubble?

26) Forget Politics: Without 'Neutral' Internet, US Workers Stand To Lose Trillions

27) 15 Essential Data Points to Help CRE Professionals Vet Tenants | Re Meter

28) Stylish Shipping Container Home Attracts Tons of Attention | realtor[dot]com®

29) Trillion-ton iceberg snaps off Antarctica

30) How 'New Keynesian' economics betrays Keynes | LARS P. SYLL

31) Spare us these cockroach arguments in favour of continued austerity | The Independent

32) Williamsburg man arrested after trying to burn house down twice, police say | Williamsburg Yorktown Daily

33) mainly macro: Why recessions followed by austerity can have a persistent impact

34) United States MBA Mortgage Applications | 2007-2017 | Data | Chart

35) Metro police warn of new real estate scam – WSMV Channel 4

36) New Mexico man admits to embezzling nearly $1 million from real estate company

37) What are the Top 10 Issues Affecting Real Estate? | AZ Big Media

  1.    U.S. manufacturing index hits highest mark in nearly 3 years – Jul. 3, 2017

    U.S. manufacturing index hits highest mark in nearly 3 years, and that's because Trump hasn't gotten his way (yet).

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  2.    Treasury yields inch lower after Fed minutes – MarketWatch

    This was written by someone (Sunny Oh) who knows what to look out for. It's also unbiased in style.

    I like my news with a view to truth but also appreciate the clearly neutral approach. What I really dislike is the news that's all one-sided and based upon nothing but ideology with a facts-be-damned attitude.

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  3.    The High Cost of Insurance Fraud in America

    It's a great deal of money, especially for the poor and middle class.

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  4.    Amateur fireworks cause damage across Western Washington | KING5.com

    The older and wiser I get, the more I oppose fireworks, even professionally displayed.

    Now, before you go saying that I'm just becoming an old fogy, I was injured as a kid via mishandled fireworks.

    However, animals suffer from fear at the noise. Veterans struggle with war flashbacks. Fireworks can really ramp up the air pollution levels making it dangerous especially for those with breathing problems already. People blow them off all night long, which is really bad for those who need a good night's sleep before work on July the 5th.

    Then, there are all the fires and injuries and even deaths.

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  5.    2 New Studies Undermine Climate Denial Arguments | InsideClimate News

    The new analysis, published in the Journal of Climate showed not just a big jump in warming of the lower part of Earth's atmosphere, but a marked acceleration. The reason: scientists corrected for the drift of satellite orbits and other factors that had distorted the observations from space.

    "Climate skeptics have long claimed that satellite data shows global warming to be less pronounced than observational data collected on the Earth's surface," explained CarbonBrief. "This new correction to the RSS data substantially undermines that argument."

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  6.    Report: Here are the 5 most 'tech ready' cities in the world – TechRepublic

    No, San Fransisco didn't come out on top, assuming it was looked at.

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  7.    NotPetya's lesson for infrastructure: 'Everything will be the new XP' – The Parallax

    Rushing into what?

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  8.    David Cameron says people who oppose austerity are 'selfish' | The Independent

    "Giving up on sound finances isn't being generous, it's being selfish: spending money today that you may need tomorrow."

    If he really believes that, he's extremely ignorant of how money is created and what drives price inflation, etc.

    I find it annoying, and my tone here reflects it.

    Austerity for the sake of shrinking government so the private rich can become even richer is just plain stupid. It is not remotely sound.

    Sound economics is to create sustainable prosperity for everyone whether the super rich like it or not.

    The only real constraints are resource constraints, not monetary constraints.

    Fiscal policy should not involve governments borrowing a penny but rather simply creating the money needed to sustain demanded goods and services matching the money supply actually circulating. That's all there is to it.

    We don't need bankers or loans to do any of that. The entire commercial banking industry is a scam. It's the selfish scam of selfish scams, and no amount of obfuscation and twisting by the likes of David Cameron will change it. There's nothing selfish about telling that truth.

    Cameron is passe at best.

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  9.    Why Roman concrete still stands strong while modern version decays | Science | The Guardian

    Absolutely fascinating discovery about Roman concrete …

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  10.    More than 1,000 income-subsidized housing units in San Francisco are getting free gigabit internet – Recode

    I really think this sort of thing is good. The classes that will be offered sounds very important. The Internet can be a great way to increase education or a great way to waste time. If the people concentrate on education and skills building, it should really give them a leg up, not that they shouldn't relax and enjoy some Internet entertainment and socializing afterwards.

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  11.    This tax move has made a lot of real-estate investors rich – MarketWatch

    As a real-estate investor, you may want to unload one property and replace it with another. But selling an appreciated property results in a current tax hit. This is a bad outcome if you intend to use the sales proceeds to buy replacement property. The good news: Section 1031 of the Internal Revenue Code allows you to postpone your tax bill by arranging for a deferred like-kind exchange. This time-honored maneuver is one big reason that some real-estate investors have struck it rich. However, there's a risk that the like-exchange privilege could be sacrificed at the altar of tax reform. So it could be a good idea to get like-kind exchanges done sooner rather than later while the current taxpayer-payer friendly rules are still in place. Here's what you need to know.

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  12.    California Senate OKs Real Estate Fee to Fund More Housing | California News | US News

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  13.    Theresa May defends public sector pay cap under pressure from Labour | Business | The Guardian

    Philip Hammond, who has admitted that he would have liked the economy to play a more central role in the election campaign, has resisted pressure to ease up on austerity, warning his cabinet colleagues that money to fund extra spending pledges would have to come from cuts elsewhere or tax increases.

    If you print more money without borrowing it, the deficit will not be increased. Furthermore, if the newly printed money is used on increasing the GDP enough to absorb that money, there won't be a general increase in price inflation either. Try getting the libertarians and neoliberals to grasp that and then to admit it openly!

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  14.    How to create jobs in the age of robots and low growth

    Oh dear, Lorenzo Fioramonti's heart is in the right place, but his brain hasn't caught up with what's really going on and why his ideas are futile and counter-productive in every sense of the term.

    He's stuck in the mistaken notion that the economy is at all necessarily capitalistic and that human labor is as a consequence required.

    If robots replace us in doing everything now required and that will be required going forward, the result will not be a negative for any human being if the goods and services produced by the robots (by automation) are free, as they should be. That would not prevent anything he has described from happening by choice if certain people were to want to continue laboring.

    I'd still work at things. I just wouldn't have to do it to live or to live well in the current economic and financial sense.

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  15.    Employment Situation Summary

    Well, the total sounds good, and it is better than going the wrong way; however, there's still way too much labor slack. Hours aren't high enough for those who want them. Wages are still not growing enough.

    Then there's the ongoing argument: privatizers vs. mostly Keynesians and social democrats.

    All other things being equal, slashing benefits for the poor while granting massive tax cuts to the super wealthy is a recipe for more disaster.

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  16.    United States Unemployed Persons | 1950-2017 | Data | Chart | Calendar

    The number of unemployed persons in The United States increased to 6977 Thousand in June of 2017 from 6861 Thousand in May of 2017.

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  17.    Years into recovery and with full employment, U.S. wages still lag | Reuters

    "There is no shortage of explanation as to why wage growth remains tepid — shadow slack, reduced bargaining power due to globalisation, de-unionization, automation, etc. — but what is puzzling is that wage growth, at least according to the average hourly earnings measure, was clearly accelerating in 2015 and 2016," JPMorgan Economist Michael Feroli wrote after the data release.

    "Why it would slow only in the last two quarters is a mystery."

    While most economists say the jobs numbers alone are enough to keep the Federal Reserve on a path to hike rates again this year, the slow wages growth implies limits to how high the Fed can push rates and raises questions about the longer-term health of the U.S. economy, which depends on consumer spending for 70 percent of its activity.

    Why has this not been a mystery to me all along? Why has it mystified the Fed? It is a combination of all the things mentioned but also that the rich are simply much less inclined now to share the gains. The entire nature of employment has changed. Longtermism is dead, which is to say that people simply don't stick with the same company or even career type the way they used to. Things are changing so rapidly and accelerating in that regard that the rich don't "need" to share as much to retain people. There are still limits to that but they are shrinking and we're no where near the current limit.

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  18.    The Big Downgrade That Fueled the Subprime Crash – Bloomberg

    A decade (and trillions of dollars in bailouts and stimulus) later, debt markets are booming again. Annual mortgage originations are getting closer to the $2.5 trillion peak reached in 2006. Risky borrowers have piled on hundreds of billions of dollars in auto loans and credit-card debt. Some economists and executives are worrying that those borrowings are reaching the point of being unsustainable.

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  19.    California Blazes Among Numerous Wildfires in Western U.S.

    I wonder how much of the increase in such fires is attributable to the general population increase versus global warming.

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  20.    Wage Growth Slows Sharply | Beat the Press | Blogs | Publications | The Center for Economic and Policy Research

    I agree! No surprise there.

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  21.    Even the IMF says austerity doesn't work. It's the zombie idea that will not die | Phil McDuff | Opinion | The Guardian

    A few weeks on from the general election, and David Cameron has been disinterred to say giving public sector workers pay rises is the height of selfishness — while Theresa May is back to harping on in prime minister's questions about the debt left by the last Labour government. It's apparently 2015 all over again.

    It's tiresome to have to keep pointing it out, but Dave from PR was wrong then, and he remains wrong now. He was a good salesman, for sure. Pretending that "The Deficit" is a scary monster that will eat us unless we appease it by sacrificing our wages plays into many instinctual beliefs about the virtues of probity and thrift. But if anything, the monster in the room is the prevalence of what economist John Quiggin called "zombie economics" — ideas that are constantly discredited, but insist on shambling back to life and lurching their way through our public discourse.

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  22.    Janet Yellen's complacency is criminal – Renegade Inc

    You may think Bill Black is too harsh, but he hasn't even been given a hearing. He has to yell "bloody murder" before anyone will barely hear him. That's a real shame.

    … the three "de's" — deregulation, desupervision, and de facto decriminalization to create a massively criminogenic environment.

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  23.    Weather Gets Weird as Record Rainfall Follows Record Drought – Bloomberg

    This is a very well-written alarm.

    As the planet warms, a less ballyhooed new normal is emerging in weather extremes. With deluge following dust, the record book is becoming increasingly difficult to rely on for those who study the weather. The seesaw from one record to its opposite also has problematic implications for water management, storm preparedness and even national security.

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  24.    The Breaking Point & Death Of Keynes | RIA

    This article is hogwash. Keynesianism kept the US from crashing much, much deeper into economic depression. The real problem was that the stimulus was way, way too small. Also, the article deems the Fed actions as if they were fiscal. They weren't. They were designed only to keep the banking industry solvent and liquid. All that money created ended up mostly sitting in excess reserves earning interest at, yes, the Fed. Ben Bernanke even complained out loud that the Fed could not be expected to stimulate the economy the way fiscal Keynesianism did and could have continued doing had it not been for, wait for it, the Austrian school types (as with the article's economically illiterate author) in Congress.

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  25.    Is This the End of China's Second Housing Bubble?

    What a strange situation …

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  26.    Forget Politics: Without 'Neutral' Internet, US Workers Stand To Lose Trillions

    PropertyPak fully supports Net Neutrality.

    Pai has consistently maintained, however, that what consumers really want is "faster, cheaper internet" of a kind that only "light touch regulation" can provide–despite historical and contemporary evidence that under-regulated monopolistic enterprise is unable, and unwilling, to keep its nose clean and grindstone-pressed in noble pursuit of maximizing consumer benefit and well-being.

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  27.    15 Essential Data Points to Help CRE Professionals Vet Tenants | Re Meter

    Think about the ways this info can be applied to residential too.

    As an example, residential landlords and managers are concerned about the employment of tenants. Well, consider the employer of the tenant not just the tenant's longevity with the employer and earnings there.

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  28.    Stylish Shipping Container Home Attracts Tons of Attention | realtor.com®

    Wow, can you see borrowing some of Aaron Schnepp's ideas for shipping containers as rental units. Imagine a 4-plex.

    What about the insurance, zoning, building codes, and the like? It's steel framed, so it's probably inherently more fire resistant. I wonder about wind load. How would it stand up to a saltwater coastal-environment?

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  29.    Trillion-ton iceberg snaps off Antarctica

    … we're not aware of any link to human-induced climate change ….

    I think that's a matter of semantics. Think about it from the other direction. Could AGW have had zero to do with it, zero impact either way? I can't imagine that would be the case.

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  30.    How 'New Keynesian' economics betrays Keynes | LARS P. SYLL

    I have never like New Keynesianism. I don't like the DSGE model no matter how it's tweaked. There is no equilibrium in capitalism or a mixed economy. DSGE is a contradiction in terms. Steve Keen's modeling, for example, is vastly superior and takes into account variables the New Keynesians still don't understand/acknowledge.

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  31.    Spare us these cockroach arguments in favour of continued austerity | The Independent

    It cannot be overstated. Austerians are economic illiterates or are simply shilling for the plutocrats who hate grassroots democracy with a passion beyond fathoming. Yes, that includes Ron Paul here in the US, who I believe is not shilling but just suffering from cognitive dissonance concerning the Modern Monetary school of economics (not to mention the American school of economics).

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  32.    Williamsburg man arrested after trying to burn house down twice, police say | Williamsburg Yorktown Daily

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  33.    mainly macro: Why recessions followed by austerity can have a persistent impact

    Simon is one of those New Keynesians, but that doesn't mean he never gets things essentially right.

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  34.    United States MBA Mortgage Applications | 2007-2017 | Data | Chart

    Mortgage applications in the United States shrank 7.4 percent in the week ended July 7th 2017 ….

    Well, the Fed wanted to slow the growth out of fear of inflation. Now what? Even the McMansions will stop moving?

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  35.    Metro police warn of new real estate scam – WSMV Channel 4

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


  36.    New Mexico man admits to embezzling nearly $1 million from real estate company

    Proper due diligence would have likely prevented this from happening.

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  37.    What are the Top 10 Issues Affecting Real Estate? | AZ Big Media

    Anyone in the real estate business, or any business really, can use this to help make strategic decisions for the upcoming year.

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