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↑ Elderly woman and child die in Paris apartment blast – YouTube
Two people have died in an explosion that rocked an apartment block in the French capital causing a partial building collapse. Rescue workers said the victim…
↑ Understanding the Current/Capital Account and the Value of the Currency | Fixing the Economists
…in order to understand trade dynamics in the modern world we must appreciate the financial dimension. Mainstream economists are altogether incapable of doing this and it completely blinds them to the real world. For them finance is just a veil. But for Post-Keynesians finance is very, very real. Most of the trade imbalances in the world today can only be understood by taking both finance and politics seriously.
We are likely to see the central government step in with more stimulus in order to stabilize the situation. However, as Beijing is beginning to realize, limited new stimulus directed at boosting growth is becoming less effective. A much larger effort may be required.
↑ Vacancies drop again in Invitation Homes rental securitizations | HousingWire
Morningstar said that the net cash flow based on rents continues to be sufficient enough to cover the bond obligations.
How well are the properties being maintained? How many legal issues have arisen, how large are they in dollar terms, and how well are they being dealt with? The list of reasonable questions one could ask is quite long.
↑ The Greater Depression by J. Bradford DeLong – Project Syndicate
J. Bradford DeLong:
A year and a half ago, those who expected a return by 2017 to the path of potential output — whatever that would be — estimated that the Great Recession would ultimately cost the North Atlantic economy about 80% of one year’s GDP, or $13 trillion, in lost production. If such a five-year recovery began now — a highly optimistic scenario — it would mean losses of about $20 trillion. If, as seems more likely, the economy performs over the next five years as it has for the last two, then takes another five years to recover, a massive $35 trillion worth of wealth would be lost.
When do we admit that it is time to call what is happening by its true name?
↑ Nobel-winning economists challenge conventional thinking on recovery | Business | theguardian.com
Any gathering of economists since the financial crash has usually been an occasion for blinkered self-justification. In most cases these self-styled scientists cannot bring themselves to admit they missed even the most basic signals that flashed red as we headed ever faster towards the abyss. It must be said some have looked at their models and concluded they were flawed, either because they excluded the potential for wild excesses in the banking system or because they assumed people behave rationally when confronted with economic choices. Most have not.
In the Bavarian town of Lindau, where 18 Nobel-winning economists gathered last week along with 450 graduate economics students from around the world, the atmosphere was a little more challenging and the previously meek response of those who criticise conventional thinking had grown louder and more coherent.
↑ Germany Resists Calls for ECB Aid in Euro Growth Dilemma – Bloomberg
“Your economy won’t run better if you take up more debt,” Schaeuble [German Finance Minister Wolfgang Schaeuble] said yesterday in Berlin. While economic stimulus leads to short-term growth, “things go downhill in the long term,” he said.
When there’s little to no risk of runaway inflation and when the private sector can’t do the heavy lifting, it’s vastly better to step in with good fiscal spending to get things going. German Finance Minister Wolfgang Schaeuble is simply mistaken. Simply put, his policies for Germany are a huge drag on the whole of Europe and harm German prospects too.
↑ Stopping Europe’s Descent Into Deflation – Bloomberg View
Europe also needs to rethink its fiscal policy. That’s beyond the remit of the ECB, though it wouldn’t hurt for Draghi to demand changes. Again, he took a step in that direction in his recent speech, saying that fiscal policy should “play a greater role” in boosting demand. Then he took a step back by saying that Europe’s Stability and Growth Pact allowed sufficient room to maneuver, and that it would be “self-defeating” to abandon it. No. It isn’t a matter of finding room for maneuver. This pact, which tells governments to cut government borrowing regardless of impending deflation, needs to be scrapped.
↑ Chinese home prices drop again in August -surveys | Reuters
“With the peak season for supply coming in September and October, developers’ promotions and more reasonable prices will attract home buyers to enter the market,” CREIS said.
To do what, buy their third, fourth, fifth, …, property that will sit vacant for years while the owners just pray for continued appreciation, higher wages for the masses so they may buy or rent from those owners, and for no bust in the housing sector leading to a bust for the entire Chinese economy and all those nations depending upon continued, uninterrupted Chinese growth?
What’s the Chinese government propping up behind all the shadow financing? Is it sustainable? We don’t think so. We think it started to crumble some time ago. We believe the people who are bullish on the Chinese economy are discounting the lack of transparency and the high levels of corruption there.
We’d love to be wrong.
↑ New program in Providence offers hope for abandoned properties | Breaking News | providencejournal.com | The Providence Journal
After a property is chosen for receivership, the City Solicitor’s Office petitions the court to appoint a receiver who will rehabilitate the property on behalf of the property owner. While the pilot cases were heard by the Rhode Island Superior Court, receivership cases will be handled in Providence Housing Court going forward.
Before being appointed, receivers must demonstrate the experience, capacity and access to capital needed to rehabilitate properties. After the work is completed, any person with an ownership interest in the property has the chance to compensate the receiver for the costs. If the owner chooses not to reimburse the receiver, the court can order the sale of the property to pay the costs.
↑ [Very highly recommended] Sacramento Residents Found Not Guilty of Mortgage Fraud – YouTube
There are hiccups in the audio and video, but it’s still well worth hearing what Bill has to say.
Bill Black discusses his role in a major legal victory in which lenders were found to have ignored gaping holes and blatant lies in loan applications