And one more wipe of the glass allows us to see right to the heart of the problem.
Morality. Natural morality that derives from bloody and lethal evolution.
That is why I raised the subject on the other thread. https://peakprosperity.com/comment/185748#comment-185748
The state is no longer a cohesive whole with everyone having the same values and identity.
So tell me once again about the benefits of multi-culti. I see that the Japanese are giving it careful consideration.
And why do you think that those who who have the social megaphone insist you to have no identifiable society? Could it be that they benefit from your lack of cohesion?
With one wipe of the glass we arrive at the thread that draws a lot of news phenomena together.
Mortgage inflation maybe it's true , or has just the price of housing just gone up? Fifteen years ago when we got our mortgage. the house was 100% funded. Today the house has about $130,000.00 in value, there is no way that we paid off munch on and $84,500.00 mortgage ? It is just a number on a computer screen that all.
By "Japanese" I refer to Japanese authorities and wealthy speculators. Japan's bubble economy in the late 1980s unleashed a wave of purchases of housing, high-rises, companies, high-end art, etc. by wealthy Japanese. This was especially noticeable in Hawaii where I lived at the time.
A facebook friend is struggling to live in Los Altos. She posts this picture of a Los Altos home that recently sold for $2,000,000 for our amazement. (Los Altos is located in the SF Bay Area.)
FWIW: Housing deflation could be deferred if the Gov't/Banks lower standards again. Subprime auto loans made a big return in 2015. Its possible that Subprime mortgages may comeback if the gov't changes regulations again (ie lowering the downpayment, as well as driving down mortgage rates). I am not saying it will happen, but I also don't beleieve housing prices deflation is guarenteed either.
Consider that the home buying season is coming to an end (fall and winter home sales seasonally slump). By the spring, the Fed will likely do more QE and Congress could act to reduce mortgage standards over the winter. 2016 is an election year. Home prices could stabilize in 2016.
I beleive that its not families have been the primary driver of home sales, but people and insititutions buying up homes for rental units. Bond Yeilds are slumping again which makes them less attractive to own. The rental market did well because people and hedge funds bought them to obtain higher returns. Families, personal ownership of homes ended in the 2008 crisis, and never recovered. If the Shale bubble pops, it will be the death for high yiead (aka Junk) bonds. Money leaving the Junk bonds make find a new home in the RETS/rentals.
Also consider that Europeans could replace Asians as foriegn buyers. the ECB is now doing QE and pushing negative interest rates. We also have the EU Bank Bail-ins and well as the pending Middle East refugee crisis pouring into the EU. I suspect that a significant number of Europeans may decide to bail out of the EU, and come to the US to escape the maddness unfolding in Europe.
FYI: Almost like Clock work! When Housing starts to bust they change the rolls to prop it up!
Freddie Mac Launches "Three Percent Down" Mortgages To Lure Millennials
Also seing "A LOT" of homes come on the market. I've seen over a dozen homes come on to the market that are on my daily commute. A bunch of them were foreclosured on in the 2008-2009 bust. FWIW: My state is raising taxes and business in the area have been leaving (heading south). I suspect that at least some the home for sale this season are related to job moves.
3% down?! It's amazing how quickly we forget historical lessons. Apparently, 8 years ago is too far back to remember.
Or or maybe this time it's different.
SandPuppy, The price of that shack you illustrate reminds me of apartment prices in coastal Dublin 2006 at peak (relative only). I seemed to be last in our area who managed to sell, having fired one slouch estate agent, before the waterfall. Luck and fear.
