The real story is in the resale market where inventory is down to 1.7 months. “May’s resale closings (4,962) are the highest one month total that we have documented since the summer of 2005, 12 years ago,” write Dennis and Andrew Smith.
Bubbles in Bond Land
The country’s Ministry of Finance figured their dodgy credit history would translate into offering an 8.25% yield, but demand was so strong the bonds sold at a 7.9% coupon. Memories are short
America's Troubles: The Boomers or Democracy?
"There is something wrong with the Boomers and there has been for a long time,” writes Gibney in the forward to A Generation of Sociopaths: How the Baby Boomers Betrayed America and the author’s beatings continue for 400 plus pages.
Bitcoin Mania Bypasses Las Vegas
"HowMuch.net on Wednesday put things into perspective and demonstrated that for all the buzz and excitement bitcoin has generated, it still has a long way to go to be even remotely relevant.
Richard Cantillon: Sleepless in Seattle
“there are currently 13 high-rise apartment or condo buildings of at least 24 stories in development or planning in the downtown area. The average is 39 stories. Another 24 high-rises are in the proposal pipeline, according to city and industry reports,”
Italian Banking, Texas Style
“Italian finance officials and the European Commission are racing to find a solution for two troubled banks in the northern Veneto region that have weighed on the nation’s financial system.”
Real Estate President to 86 1031s?
It would indeed be ironic if Donald Trump of all Presidents would get behind 86ing 1031s.
Polish Maverick's Place Peddled Again
Eighth-grade graduate Bob Stupak had built the Stratosphere from nothing and $550 million from someone who couldn’t have been paying attention and opened in April 1996, at the time, the 3rd most expensive hotel-casino project in Las Vegas history. The self-proclaimed Polish Maverick was bankrupt three months later.
Help Wanted: Lenders with No Experience (or Short Memories) to Make Risky Mortgages
Of course there’s a good market for loans to folks who don’t fit in the Dodd-Frank box and lenders can earn 6% to 10% from borrowers sporting credit scores of 660 and below. But fresh-faced originators can’t figure out how to make the loans.
Flip It, Flip It Good
Las Vegas house flippers booked an average gross profit of $51,500 per deal in the first quarter. That’s up 29 percent from the same period last year and the biggest haul since at least early 2005
Tesla: Automobile Rent Seeker
After state government paid $43 million to brothel owner Lance Gilman for Tesla’s land and now has forked over another $59 million in transferrable tax credits, taxpayer have “invested” $214,000 in each $22.00/hour job.
Illinois Heads toward Bankruptcy, while Bankrupting its Citizens
Without legislative action, Illinois will be the Greece of the USA Zone after “Moody’s followed S&P’s downgrade Thursday, citing Illinois’s underfunded pensions and the record backlog of bills that are equivalent to about 40 percent of its operating budget.”
Credit now Repaired, Money will Multiply
An increase in lending might just kick start the money multiplier and then some honest-to-goodness, noticeable, government-can’t-deny-it price inflation might be just around the corner.
Up, up and Away, or Grinding to a Halt?
instead of leading the turn as they normally do, new home sales have lagged, both in time and quantity. A yawning gap has opened between the rate of growth in full time jobs, and the new home sales rate.”
Millennials, You Don't Need No Stinking Down Payment.
The American dream of paying on a big fat, paycheck sucking and mobility stifling mortgage is just waiting for you. Take the plunge. Make America great.
Shortage of Hammer Swingers
“Construction labor costs are rising an average of 4% to 5% annually, outpacing inflation, according to Anirban Basu, chief economist of the Associated Builders and Contractors. ‘The situation is going to get worse,’” he told Grant.
The Cake, the Rain, and Positive Mood
Jimmy Webb, writes in his new book The Cake and the Rain, “My imagination soared under the influence of these Beatles (and “world class LSD”). Sgt. Pepper was nothing less than a heroic album. It was as important as any music ever written.”
Sin City Cash Burning
The Vegas convention sweet spot on the calendar has come and gone and I figured that would be his explanation for the tepid market in rides. No, he said it's a supply problem. Too many drivers. He told me,
Less Supply = Higher Priced Homes
The shortage of supply, increases in costs, and millennials finally catching the home ownership bug has median prices jumping. Nationwide, “the median was $316,200 last year versus $240,900 in 2005.”
Millennials See White Picket Fences
“Virtually all major builders are migrating away from the luxury homes that dominated the early years of the economic expansion and are focusing on lower price points to cater to this burgeoning clientele,”