From the WSJ:
Home Prices Reflect Strengthening
Home prices in the second quarter rose from the year-ago period for the first time since 2007, according to a closely watched index, the latest indication the housing market is starting to recover.
The report, which is scheduled to be released Tuesday by real-estate firm Zillow Inc., found that for the quarter ending in June, home values were up 0.2% from the same period in 2011.
While other indicators have shown home prices turning up since the spring, most examined short-term changes from one month to the next. Other indexes reported gains in median sales prices, which can be skewed based on the type of homes that are sold. But Zillow measures prices of comparable homes in the same community, which some economists say provides a truer picture of market trends.
Nearly one-third of the 167 metropolitan areas tracked by Zillow posted annual price increases for the second quarter compared with the year-ago period. Prices rose fastest in cities with fewer homes for sale and strong investor demand.
“It seems clear that the country has hit a bottom in home values,” said Stan Humphries, Zillow’s chief economist, who had previously forecast that housing wouldn’t hit bottom until late this year or early in 2013. The fact that the gains came during a period in which the economy wasn’t very strong suggests “there’s some fundamental organic strength to the housing market,” Mr. Humphries said.
From the CS Monitor:
Foreclosed homes: Now, they’re hot properties
Earlier this month, David Welch, a veteran RE/MAX real estate agent, took a young couple to tour a house in the Orlando, Fla., area. The prospective homeowners liked the house and put down an offer, in cash, for nearly $8,000 over the asking price. “That would be an attractive offer for anybody,” Mr. Welch recalls.
But the couple did not get the home. By the time they put in their offer, 17 others were already on the table. The big draw? The house was a “distressed property” – a euphemism for being in foreclosure, or repossessed by a mortgage lender.
Once considered damaged goods fit for only the bravest investors, foreclosures have not only lost their stigma, they’ve become hot properties. Middle-class families are chasing after them because, since the bursting of the housing bubble, foreclosed homes are popping up in desirable neighborhoods and typically sell at a big discount. This growing interest in distressed homes is helping to clear out a backlog of the more than 1.5 million homes in the foreclosure process and remove a huge drag on the real estate market.
Foreclosures are “still weighing down the market, but in my view it’s better that the market absorb those foreclosures now rather than continue the pattern we’ve seen in the past of pushing the problem down the road,” says Daren Blomquist, director of marketing communications at RealtyTrac, a foreclosure information website based in Irvine, Calif. “Buyers are interested and willing to buy them.”
The turnaround in attitudes is dramatic. In a 2009 survey, only one-quarter of home buyers said they would consider buying a foreclosed property, according to the National Association of Realtors. Today, it’s more than two-thirds. And it’s not just investors looking to pick up cheap rental properties. In the same NAR survey, released May 30, 92 percent of potential home buyers said they would be interested in buying a foreclosed home to live in.
From Bloomberg:
Goldman Sachs Sees ‘Strong’ U.S. Housing Recovery Starting
U.S. homebuilders are an attractive investment as the housing market starts a “strong” recovery that may drive a surge in new-home sales, Goldman Sachs Group Inc. said in a report today.
Housing has a “long list of positives,” including rising prices, job growth, supportive government policies and a decline in the so-called shadow inventory of homes, Goldman Sachs analysts Joshua Pollard and Anto Savarirajan wrote in a note to clients. They raised their rating on the homebuilding industry to attractive from neutral.
…
“The super cyclical housing market has turned and a strong recovery in new-home sales is ahead,” the Goldman Sachs analysts wrote. “Over the last year a number of risks to the housing market have abated, giving us confidence that rising home prices will drive a 3-7 year up-cycle in the U.S. market.”
I’m looking to purchase a house in Hillsdale. its in the Tandy Allen ranch area What are your guys opinions of the town and the area?
From the Record Biz Blog:
Construction jobs down 3 percent in NJ
Although there’s evidence that the housing market may be recovering, construction employment in NJ remains 3 percent below a year ago, according to the Associated General Contractors of America. The group said that federal labor numbers show that there are 125,000 people working in construction in the Garden State as of June 2012, down from 128,800 a year earlier.
Okay, housing has “hit bottom.” Now what? Do people realy think we are going to see a strong increase in prices on the way back to “normal” — the period 200-2007? Is that the expectation?
I’ll be happy if we can sell at a decent price in the next couple of years.
Europe falling fast.
“Eurozone flash manufacturing PMI dips to 44.1 in July vs. 45.1 in June, touching a 37-month low. Services PMI at a four-month high of 47.6 vs. 47.1 in June. Employment fell for the seventh month in a row and at the fastest rate in 2.5 years. The downturn shows no signs of letting up and “is consistent with GDP falling at a quarterly rate of around 0.6%, which is similar to the rate of decline we expect to see for the second quarter.”
Home prices have bottomed and are quickly recovering according to zillow. However, only four concerns around here,
1) The Long Island/Bergen County area has the highest inventory, 15 months.
2) Banks now that market has firmed may push through backlog of reos in next few months
3) Anyone with a gain on a vacation home which is taxable or a large gain on a primary residence will want to try to sell by year end. For instance a vacation home non-primary residence bungalow bought in 1982 in Long Beach Long Island for 50K is now worth 500K. At best owner could claim 50K of improvements, not much you can claim with a 900 square foot bungalow with no garage, no basement no attic on a 30×80 plot. Today that 400K gain is taxed at 15%. So income taxes owed on cap gain is $60,000. In 2013 when cap gains go to 20% and obama care tax is 3.9% taxes will rise to 23.9% on gain. So the 400K gain will be taxes at $95,600
4) As year end approaches and due to Europe, Fiscal Cliff, Election, Taxes unresolved, lay-offs on wall street still coming and fact year end is usually slow for housing that may cause some short term weakness.
However, I think we are pretty much at bottom, we may have a slight pull back in next few months, but once we hit spring selling season of 2013 if we survived the four short term events in our local area it is safe to get back in the water.
Shore 5 I would hope not , they will just meander along for years. That being said I am buying as it is time to make the move for me. Prices are so low in my area that it makes sense 5 years rent buys the place last one done with school in 4. Sell & get at least a good portion of my money back in 5 if I so choose.
Last crash, housing hit a bottom in 1992, but inflation adjusted housing hit a bottom in 1996.
The mere fact home prices have stopped falling and are rising does not mean we hit a bottom. For example if inflation is 2% and home prices rise 2% media and realtors wave victory flags. However, it is like when your boss gives you a 3% raise and then you realize your expenses rose 3%. Homes like raises you need to beat inflation rate to call it a strong rebound.
Shore Guy says:
July 24, 2012 at 8:00 am
Okay, housing has “hit bottom.” Now what? Do people realy think we are going to see a strong increase in prices on the way back to “normal” — the period 200-2007? Is that the expectation?
Nationwide, home values rose 0.2% year-over-year to a median $149,300 during the second quarter, the first annual increase since 2007, real estate listing site Zillow reported. Prices were up 2.1% from the first quarter.
Even though June marked the fourth consecutive month of home value increases, overall home prices are still down almost 24% since April 2007, when Zillow began to track home values
Read more: http://www.kcra.com/news/money/Home-values-rise-for-first-time-in-5-years/-/11797182/15656412/-/wto683/-/index.html#ixzz21XiGG4K2
Anybody have the updated Case Shiller 100 year chart?All the predictions here in 2008,who has the closest prediction to the updated?
Denver,Co Case -Shiller almost back to 2006 high in mid 2010 the dropped and climbing again to mid 2006 level
http://ycharts.com/indicators/case_shiller_home_price_index_annual_change_denver/chart#series=type:indicator,id:case_shiller_home_price_index_annual_change_denver,calc:&zoom=&startDate=7/31/2000&endDate=4/30/2012&format=real&recessions=false
http://www.ritholtz.com/blog/2012/03/i-got-your-housing-turnaround-right-here/
here is 2012 chart for 100 year average
http://thebasispoint.com/wp-content/uploads/2012/04/IfHomesDrop10PercentAThirdOfLoansGoUnderwater.png
nice chart
Case Shiller home prices April 2012
http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245335808401&blobheadervalue3=abinary%3B+charset%3DUTF-8&blobnocache=true
yo 12 Veto/Neanderthal economist has chart as he made it.
JJ: from yesterday eve
chicagofinance says:
July 23, 2012 at 6:34 pm
Since JJ does not work past 5PM, I’ll stand in here……”high frequency erection?”
A Home Buyer says:
July 23, 2012 at 5:51 pm
Hah, So I stand corrected; I only remember certain fragments of class so Ill take your word on it (after I open my ElectroMagnetics book and confirm it!). While my terminology may be wrong, the effect is still the same. High Frequency radiation has limited penetration depth.
more importantly….
chicagofinance says:
July 23, 2012 at 11:56 pm
BOOOOYA!
Flood was the producer of Violator and Songs of Faith and Devotion.
Dave Gahan on new project…
“You know, Martin and I, we collaborated on a song recently. He did what Rich does actually – he gave me a piece of music and said “have you got any ideas? I don’t really know what to do with it from this point…” And I took it away, and hopefully it will end up as something on the record. Depeche is different: we’ve got about twenty songs on the go at the moment, and we’ll keep going to a certain point. We’ll look at them and decide which ones will end up on the record. Flood’s going to be mixing the album as well. There’s a plan with it.”
“Each record that you make definitely has an influence on the next, so the simple answer to that question is yes, I think it does. I believe that this record we’re making now is the 13th studio album. That’s a lot of records. We’ve all got a really good feeling about it – everyone who’s heard tracks that we’ve recorded so far has come back with, you know, “this is going to be a good record”. It’s got a good feeling about it, and as long as we don’t mess around with it too much, which is what we’re doing right now – that’s the indulgence of having too much time – I think it will have a quality to it, a rawness to it and something that we missed out on the last album, which was very lushly produced and detailed. I hope this album is going to be less detailed and hit a bit more of a raw nerve, in terms of the production. It feels like that, but it’s still early days. But I do think the new songs are of a higher quality, somehow. They’re different, there’s something about them. Martin is writing from a different place and the songs that I’ve written are too. It just feels like we’re coming together. There’s something good happening.”
With three kids I would say my real work starts after 5pm.
chicagofinance says:
July 24, 2012 at 9:08 am
JJ: from yesterday eve
chicagofinance says:
July 23, 2012 at 6:34 pm
Since JJ does not work past 5PM, I’ll stand in here……”high frequency erection?”
Well, hopefully the experts are correct this time about bottoming. In either case, I’ll be part of the statistic for July Closings.
Hoousing prices have reverted to long term trends in many markets but not all, that does not mean that housing is now an “investment” in New Jersey, New York or even the Orlando bidding wars for forclosures.
Florida prices are still dropping and New Jersey and New York have yet to revert to mean. All depends on who’s tea leaves you read I guess. Fed says prices are still falling in NY Metro and Florida.
http://research.stlouisfed.org/fred2/graph/?g=8Yh
EVERYTHING YOU READ NOW IS RENTAL PROPERTIES.IS TRUMP FILMING HIS HOW TO BE MILLIONAIRE NEXT GIG?This article suggest buying a 3rd rental property to be a millionaire
Become a millionaire real estate mogul
(Money magazine) — Becoming a landlord has always been a well-worn path to millionaire status, with good reason: Not only does owning properties let you generate a second source of income, your tenants’ checks will help you build equity in your investment.
The case for owning rental real estate is even more compelling now thanks to depressed prices, super-low interest rates, and the fact that the shortage of rental housing is the most acute it’s been in five years, according to CoreLogic.
http://money.cnn.com/2012/07/20/real_estate/millionarie.moneymag/index.htm?iid=HP_LN
All of a sudden, it seems, everyone on Wall Street wants a foreclosed home.
FORTUNE –Your house might be a better investment than you think. At least Wall Street seems to think so.
For a while now the conventional wisdom on real estate has been that while home prices might not fall much more, they aren’t likely to go up anytime soon, either. The best personal finance advice, then, when it came to buying a house, was to buy as little as possible.
Apparently, though, on Wall Street that common wisdom about home prices is not held by all, or even many. In the past six months or so, a number of investment firms, hedge funds, private equity partnerships and real estate investors have turned into voracious buyers of single-family homes. And not just any homes, but foreclosures. Investment banks, who also want in on the action, are lining up financing options to keep the purchases going.
Take for instance private equity mega-firm Blackstone Group (BX). About a year ago, when the NY Observer profiled the firm’s head of real estate Jonathan Gray, there was no mention of single-family homes or even that the firm was looking to profit from a rebound in the residential real estate market.
http://finance.fortune.cnn.com/2012/07/24/wall-street-foreclosures/?iid=HP_LN
There’ve been a few BIG LIE/PR assault campaigns of this magnitude.
ENOUGH ALREADY!
David Welch, a veteran RE/MAX real estate agent (BIASED – he’s a realtor)
$8,000 over ask in FLORIDA
FLORIDA eminent domain laws exacerbate the problem and
FLORIDA is distressed property central
FLORIDA employment and income TRENDING DOWN/FLAT
“Comparison to 2009 survey” – Well, duh! Everything is up since mark-to-myth was instated April 2009.
Housing hasn’t hit bottom. PERIOD.
When it does, the momentum will carry it through the crust and into the mantle.
This is but a game of pass the trash – intended to deprive those who survived the prior events of their future means via future events.
There’s no job or income increases going forward. There are only Govt benefit increases (unemployment, SNAP, disability?!?). And why is it that there seems to be so much preparation for future civil unrest.
JJ’s prognostication is premature. New Senators/Reps to be assigned committee/subcommittee positions for legislation that will take months to be effected and there’s no guarantee of any result in any sort of GDP increase.
Yo 13, exactly! The bubble is reflating and w/o meaningful justification.
The underwater loan percentage is not only huge, the ratio is inverted!!! There’s no historical precedent! The road to serfdom!
*-Realty Czech
Remember Steve Martin on Saturday night life gave his speech on how to be a millionaire.
1) Get a Million Dollars
2) You are a Millionaire.
Remember, easier said then done.
I got outbid on an reo and I bid up to what numbers work. Person bid 10K higher than me, person also did financing which costs another 10K and person in an REO pays sellers tax which is another 3k. So person paid 23K more than fair value.
However, if RE is rising and this truly is bottom he will make out paying 23K above fair value. However, he or she is buying a summer bungalow that rents for 16K for summer and 1,600 off season for 320K. The house was in very good condition but needed AC in windows and Fridge and you have to furnish it. So between home price, closing costs, seller costs etc. He is in it for 350K before first tenant shows up. I bid 305K cash, was going to do 100K home equity loan on my house and pay rest in cash. Home has 6k property tax. I figured, this am my formula
4k, home equity loan
6k taxes
1k insurance
15K lost income interest on 205k I put down.
Annual cost is 26K, I am getting 16K for summer and 8 months of $1,600 rent or $12,800, total of 28,800. Which means I am making 2,800 profit which will basically be lost on repairs, lawn etc. So in other words break even.
Whoever out bid me is entering a rental property at a loss, what kind of bottom is this. I shall see if he or she can get a mortgage. They have till this Friday to sign a contract.
Mind you the person who bought house paid 200K in January 2000, I thought 305K was pricey. I think 320K which was winning bid is very pricy considering it is almost 60% higher than 200 price and it is a foreclosure. A good shape foreclosure, but still, a foreclosure
That real estate article is flawed. It states buying a home three years ago and the gains. However, Stocks, Bonds or RE bought three years ago all are up significantly. One would have made more three years ago just buying dividend stocks or long term non treasury bonds and would have had a bigger after expense income.
Today stocks and bonds are not a slam dunk. I would say RE was a fairly stupid investment in 2009 compared to other alternatives.
Remember 36 months ago on this site one with 100K to put down could have bought a 200K citigroup bonds with a 7% coupon. Three years later that bond is now worth 220K and you would have got 42K interest. Your 100K investment would be worth 262K with no cost.
The article fails to realise housing as a pure investment (not a primary home) means you had choices with your funds.
I have 200K to invest, I can buy a rental property, vacation home, stocks, bonds, commodities etc. Three years from now one who bought a home today as an investment has to have picked the right one. Tough to do. Also where is that money now. If one sells stocks today to buy RE, it is a binary event. He has to be right twice, sold stocks right time bought RE right time.
I can see,making money on multiple unit rentals not on single family homes.Property tax alone will eat your profit on single family homes.
Subprime Rally Building as Dealers Sop Up Supply: Credit Markets
The rally in U.S. home-loan securities without government backing is accelerating as investors wager the housing bust is over and supply is sopped up by bond dealers emboldened by new capital rules.
Gains on subprime-mortgage bonds from 2005 through 2007, the years that produced the most defaults leading to the worst financial crisis since the Great Depression, have soared to 5.4 percent in July, bringing returns for the year through last week to 21.6 percent, according to Barclays Plc data. Securities backed by option adjustable-rate mortgages jumped over the past month by 7 percent to the highest level since May 2011.
http://www.bloomberg.com/news/2012-07-24/subprime-rally-building-as-dealers-sop-up-supply-credit-markets.html
JJ: where are you looking for income today, if at all?
[124] [prior thread]. seif,
No, you didn’t hurt my feelings. Thanks for your consideration though.
[28] yo,
In NJ, that is very true. If you have a loan and taxes, that is roughly equivalent to market rents and possibly more. In a Ricardian model, rent shifting to government means that there won’t be any appreciable new supply of SFH rentals because newly acquired properties cannot be profitably rented. So the supply is constant. Paradoxically, I see this ossification as positive for housing prices.
2.625% 15-year fixed (no points).
Getting closer. 10-year down at 1.42.
ossification – “God darnit, Mr. Deplume, you use your tongue prettier than a twenty dollar whore.”
To be honest no much, munis. MBS and investment grade yields in last month have been straight down. Junk only stuff like LBO private equity bonds from bubble years of 2006-2007 with little investor protection pay yields. I tried to raise cash to make a bid on an REO but that fell through. Only one I wanted it.
Right now I have around 110K BAC Trups being called tomorrow. Need to find a place. A little bit maybe in Banco Standandar Pref Stk or New York Community Bank Stock, also like a bit Hartford pref stk. But really I dont feel comfortable doing more than 10K each even in spite of recent sell off. Also subprime, commerical MBS are way to risky. Also dont like risk prem at these low rates. Used to just worry about defaults, not I need to really worry about interest rate risk.
Not that I should complain, I did really way on my BAC Trup bet just getting money back at a bad time.
chicagofinance says:
July 24, 2012 at 11:00 am
JJ: where are you looking for income today, if at all?
It sounds good but it isnt. When I got a pre-appoval for a mtg recently Chase quoted me 3.75% on a 30. I was like the ten year pays 1.42, your rates are the same rates a pay day lender or pawn shop would charge. Chase guy was taken aback, he goes why. I say, I will tell you why, when I worked in bank, ten year was 8% and we charged 9.5% on a mortgage.
You are charging 2.7% times the ten year. When I was a banker doing mortgages 2.7 times the ten year bond would be 21.6% mortgage. That is outrageous. In fact I also gave out 7% one year CDs and charged 9.5% on mortgage. You guys are paying 1/2 of one percent on a one year cd and dont mortgages at almost 8 times that. That would be the same as a 56% mortgage in my day.
I think Mortgage rates should be around 1.5%
Libtard in Union says:
July 24, 2012 at 12:03 pm
2.625% 15-year fixed (no points).
Getting closer. 10-year down at 1.42.
Reporting at lunch from my private sector job. I’m still trying to figure out how the gubmint grew this company because, you know, oblammy told us it wouldn’t exist otherwise. Still haven’t figured that one out. However, I’m sure the president will be explaining how private sector built and sustains entitlement programs and the method by which he plans to expand them. I mean, after all, he helps private business grow, the least we can do is help his utopian dream, too! Right? Right? I said, right?
I had Webster play with that one
ossification – “God darnit, Mr. Deplume, you use your tongue prettier than a twenty dollar whore.”
Bruce Springsteen, suicidal and depressed in the 1980s
U.S. sells 2-year debt at 0.22%;
Can you imagine that sentence even four years ago. Less than 1/4 of one percent. And taxable income.
The municipal bond market was stronger again Tuesday as poor economic data and still-lingering economic woes forced a risk-off trade. Fixed-income markets rallied even as yields have hovered at or near record lows for several consecutive sessions.
Absolutely amazing how low muni bond yields are. From like 7% for long day munis the day Whitney was jawboning to 3% today. Huge 400bp move in 19 months.
Mortgage rates low are a joke to people in cash. They are getting killed. Grandma got run over by a raindeer and the Federal Reserve.
Are you familiar with Louie Navellier?….he pulled thing things out of hid a%%…..don’t know what to make of it….
http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AGNC
raging bull jj says:
July 24, 2012 at 12:18 pm
To be honest no much, munis. MBS and investment grade yields in last month have been straight down. Junk only stuff like LBO private equity bonds from bubble years of 2006-2007 with little investor protection pay yields. I tried to raise cash to make a bid on an REO but that fell through. Only one I wanted it.
Right now I have around 110K BAC Trups being called tomorrow. Need to find a place. A little bit maybe in Banco Standandar Pref Stk or New York Community Bank Stock, also like a bit Hartford pref stk. But really I dont feel comfortable doing more than 10K each even in spite of recent sell off. Also subprime, commerical MBS are way to risky. Also dont like risk prem at these low rates. Used to just worry about defaults, not I need to really worry about interest rate risk.
Not that I should complain, I did really way on my BAC Trup bet just getting money back at a bad time.
chicagofinance says:
July 24, 2012 at 11:00 am
JJ: where are you looking for income today, if at all?
American Capital Agency Corporation is a real estate investment trust. The Trust invests in agency pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity.
that is some leveraged stuff. 40% ytd when 30 year bonds pay 2.5%. Impressive
rocket fuel for you…the space boy….
raging bull jj says:
July 24, 2012 at 1:40 pm
that is some leveraged stuff. 40% ytd when 30 year bonds pay 2.5%. Impressive
jj: it also birthed a secondary recently, so your ripe-to-be-fcuked % may be less….
#41. Grandma and me are both getting killed.
In my next life I am going to be an irresponsible sh*thead and hope it just works out like most morons.
Chifi, lots of those funds include your principal returned as interest. I highly doubt it is actual 40%.
I rarely buy funds that invest in exotic stuff, leveraged, fund of fund stuff. I usually buy the bonds or stock straight up myself. In my 401K I do the funds.
Right now it is shocking how B rated long term Puerto Rico and Guam bonds even pay 3%. Plus I dont ever invest more than 10K in those kooky things. Might just do a 100K A rated NYS kicker bond with BAC money and just nibble into other quirky stuff with interest. Unless of course sell off continues and I can get some good div payers cheap.
[10] jj – Also, the “statistics” don’t make adjustments for mix shift. I contend that the clog in the foreclosure pipeline contributes mightily to “rising” average and median prices. Similarly, go to any blue-ribbony town and you’re likely to see more houses available in the “desirable” (read highest taxed) neighborhoods than have ever been available before the crash. Take your favorite neighborhood in your favorite town (the street where our wives who don’t give a damn about silly things like prices and taxes imagine putting up their picket fence and gardens) and you’re likely to notice way MORE inventory than was ever available. These “nice” houses are contributing more to sales than ever before skewing the data to the up side. Houses aren’t selling at higher prices, it’s just higher priced houses are selling, period.
Last crash, housing hit a bottom in 1992, but inflation adjusted housing hit a bottom in 1996.
The mere fact home prices have stopped falling and are rising does not mean we hit a bottom. For example if inflation is 2% and home prices rise 2% media and realtors wave victory flags. However, it is like when your boss gives you a 3% raise and then you realize your expenses rose 3%. Homes like raises you need to beat inflation rate to call it a strong rebound.
[34] lib,
Funny, Mrs. Deplume said the same thing.
From MarketWatch:
FHFA says home prices climb 0.8% in May
Home prices climbed 0.8% on a seasonally adjusted basis in May, following a revised 0.7% increase in April, the Federal Housing Finance Agency said Tuesday. From May 2011 to May 2012, prices rose 3.7%, the agency said, although the index is still 17% below its all-time peak set in April 2007. The FHFA purchase-only index is based on transactions bought or guaranteed by Fannie Mae or Freddie Mac.
Shore [5];
Okay, housing has “hit bottom.” Now what?
L-shaped recovery, with inflation doing all the heavy lifting.
In related news, all those who had wagers with Meat about me, today’s your day to collect.
AGNC is much more leveraged than my choice (with much more seasoned management) which is NLY. I am very happy collecting my 14% yield in my IRA. Sure AGNC is doing like 20% when you calculate in the stock appreciation, but the extra 6% is not worth the additional risk to me. I thing AGNC is around 8x levered to NLYs 5x.
Grandma got run over by her broker
Now she’s eating friskies from a can
You might say there’s no such thing as fairness
But ask her broker, he sure likes this scam
http://bottomline.msnbc.msn.com/_news/2012/07/20/12837562-zuckerberg-is-not-the-only-one-who-can-get-super-low-mortgage-rates?lite&__utma=14933801.542474641.1342954107.1342954107.1342954107.1&__utmb=14933801.1.10.1342954107&__utmc=14933801&__utmx=-&__utmz=14933801.1342954107.1.1.utmcsr%3D%28direct%29|utmccn=(direct)|utmcmd=(none)&__utmv=14933801.|8=Earned%20By=msnbc%7Ccover=1^12=Landing%20Content=Mixed=1^13=Landing%20Hostname=www.nbcnews.com=1^30=Visit%20Type%20to%20Content=Earned%20to%20Mixed=1&__utmk=111390980
Zuckerberg is not the only one who can get super low mortgage rates
bottomline.msnbc.msn.com
After seeing Mark Zuckerberg has scored a 1.05 percent mortgage rate on his $6 million California home, we have
http://bottomline.msnbc.msn.com/_news/2012/07/20/12837562-zuckerberg-is-not-the-only-one-who-can-get-super-low-mortgage-rates?lite&__utma=14933801.542474641.1342954107.1342954107.1342954107.1&__utmb=14933801.1.10.1342954107&__utmc=14933801&__utmx=-&__utmz=14933801.1342954107.1.1.utmcsr%3D%28direct%29%7Cutmccn%3D%28direct%29%7Cutmcmd%3D%28none%29&__utmv=14933801.%7C8%3DEarned+By%3Dmsnbc%7Ccover%3D1%5E12%3DLanding+Content%3DMixed%3D1%5E13%3DLanding+Hostname%3Dwww.nbcnews.com%3D1%5E30%3DVisit+Type+to+Content%3DEarned+to+Mixed%3D1&__utmk=111390980
Yo [54, 55];
Dude… http://makeashorterlink.com/
Grandma got run over by her real estate and stock broker
Now she’s eating friskies from a can
You might say there’s no such thing as fairness
But ask her real estate and stock broker broker, he sure likes this scam
she should have had a bond broker
LOL – I spent the last hour or more reading August 2008 posts here at NJRERE. Funny to read what some of us thought before the world changed. Just 4 short years ago, jeez. A lot of us had ages with a 4 handle and grim had a 2 handle.
Shlt. Housing recovery is great damn news. I’m gonna flip a bird at you damn real estate terrorists and then I’m get back to flipping some damn houses. It’s been a long cold ass damn winter and it’s damn good to see spring time again. I’m glad I held the hell out and refused to give my damn house away to some stinking low down filthy vulture trying to lowball his ass into my damn house. Now, the stinking buyers are gonna pay and pay dearly for my damn house. People have finally figured out that they ain’t making no more damn real estate. If you want my damn house, get ready to start bidding just like the old days. Yeah, payback on these stinking buyers is going to be a itch.
re…you still here?
Apple earnings due yo.
>>>re…you still here?<<<
I know young fresh faced punks like you want to see me die off don't you? You would like nothing better than to see me get hit by a damn semi or be made to give away my damn house to some cheapass, but no, I'm still right the hell here and will be here until hell freezes over. I will not die before I see cheapass radical liberal Obamaphils like you pay dearly for what you've done to these damn housing markets and this country. I would never give you the satisfaction of seeing me die.
So what you’re saying is that you are interested in renting my 2nd floor unit?
“she should have had a bond broker”
This message brought to you by Jim Lebenthal.
62. You had me at “die off”….
Geez……one word for you……….. ERISA
reinvestor101 says:
July 24, 2012 at 4:15 pm
>>>re…you still here?<<<
I know young fresh faced punks like you want to see me die off don't you? You would like nothing better than to see me get hit by a damn semi or be made to give away my damn house to some cheapass, but no, I'm still right the hell here and will be here until hell freezes over. I will not die before I see cheapass radical liberal Obamaphils like you pay dearly for what you've done to these damn housing markets and this country. I would never give you the satisfaction of seeing me die.
AAPL misses…….. look out below…..
Look at BWLD and NFLX for even more lookout below action.
young pretty girl on elevator yesterday, I quote her I feel sorry for the losers who own an Apple Iphone who think they are cool, my Samsung Galaxy III is ten times the phone, Apple is for losers.
So I file a complaint with the bank about REO deal I tried to do. Well it turns out idiot realtors screwed it up. First I said should I bid this much, then without telling me, she enters that bid into bank. Then I fill out paperwork thinking this was my first bid and put it in slightly higher. Then I call the realtor daily for six days who keeps claiming offer is pending and I have high offer, I need to wait for bank to reject.
What the idiot did instead was enter my orginal verbal offer, then enter my slightly higher offer. Bank told me at that point we were in a multiple bidding situation, which means second offer was final offer. I was to put in highest at that point. In that five day period I could have raised offer. Meanwhile she screwed me as the five days went by bank accepted other offer. I told bank the realtors screwed you out of high bid and you paid them 6% for the privlidge. Even crazier the broker screwed her self out of the 3% as the other buyers broker won it. So this is the best the Real Estate agent screwed the buyer, herself and the bank all at same time. Last time I saw that much screwing I was in plato’s retreat holding a small spoon and wearing a towel.
Sounds like this time you got the big wooden spoon.
Last time I saw that much screwing I was in plato’s retreat holding a small spoon and wearing a towel.
10 yr 1.387%
Just for you Gary.
Next week he’ll explain Outsourcing!
http://on.aol.com/video/tony-soprano-explains-bain-capital-517377950
It’s all over.
Last one out, turn off the lights.
See you at the ramparts.
WS is a joke.
Necronomy is a joke.
Skool is a joke.
Politics is a bad joke.
Dye your hair shocking pink and buy as many guns as you can.
It’s all over.
David Stockman: Capital Market Are Simply a Branch Casino of the Central Bank
This is a conservative former head of OMB under Reagan.
http://www.zerohedge.com/news/david-stockman-capital-markets-are-simply-branch-casino-central-bank
It’s all over. Give my regards to Urrp.
Who should I go to for chimney repairs in Somerset county? Has anyone had experiences with chimney repairs?
Drop a grenade down your chimney, and take to the highway. More Stockman:
“…the critique, the clamoring and clattering that you hear from the Keynesians (or even mainstream media, which is pretty clueless economically) that austerity is bad forgets the fact that austerity isn’t an elective course. Austerity is something that happens to you when you’re broke. And yes, it is painful and spending will go down and unemployment will go up and incomes will be impaired, but that is a consequence of the excess debt creation that we’ve had for the last thirty years. So austerity is what happens when you break the rules.
And somehow we have this debate going on. They’re making a mistake. They chose the wrong strategy. Do you think Greece chose the wrong strategy with austerity? No. No one would lend them money. That’s why they ended up in the place they were. Do you think that Spain today is teetering on the brink because they said, “Oh, wouldn’t it be a good idea to have austerity?” No, they had a gun to their head. They were forced to do this because the markets would not continue to lend, and even now their interest rate is again rising. The markets are losing confidence, and unless the ECB prints some more money and bails them out some more, they are going to have austerity. So the austerity upon us is the backside of the debt supercycle we had for the past thirty years. It’s not discretionary.”
Just joking about the grenade down the chimney. I don’t know any good masons; sorry.
Alex: A twelve-person Open Market Committee determining the future of our economy by manipulating rates. Sounds like central planning to me.
David: It is. They are monetary central planners who are attempting to use the crude instrument of interest-rate pegging and yield-curve manipulation and essentially buying debt that no one else would buy, in order to keep this whole system afloat. It’s Ponzi economics. Anybody who had financial training before 1970 would instantly recognize this as Ponzi economics. It is only because of the last twenty years we got so inured to prosperity out of the end of a printing press and massive incremental debt that people lost sight of the fundamental principles of sound money, which, there’s nothing arcane about it. It’s just common sense. It is not common sense to think that 50, 60, 70% of all the debt that’s being created by the federal government can be bought by the Federal Reserve, stuffed in a vault, and everybody can live happily ever after.
I called the Fed a doomsday machine well before Stockman does it here:
David: The Fed has taken itself hostage with this whole misbegotten doctrine of wealth effects, which was created by Greenspan. In other words, if we get the stock market going up and we get the stock averages going up, people feel wealthier, they will spend more. If they spend more, there is more production and income and you get a virtuous circle. Well, that says you can create wealth through speculation. That can’t be true, because if it is true, we should have had a totally different kind of system than we’ve had historically.
So they got into that game, and then the crisis came in September, 2008. They panicked and pulled out the stops everywhere. As I said, tripled the balance sheet in thirteen weeks, [compared to what] they had done in 93 years. They are now at a point where they don’t dare begin to reduce the balance sheet, begin to contract, or they’ll cause Wall Street to go into a hissy fit. They are afraid to death of Wall Street going into a hissy fit, so essentially, the robots and the boys and girls and the fast-money traders on Wall Street run the Fed indirectly.
Alex: So, in the 1960s, the Fed is taking away the punchbowl. Sounds like in 2010 the Fed is the one adding the alcohol. They are afraid to stop, lest everybody riot.
David: Yes, they got the party going, and they’re afraid to stop it. As a result of that you have a doomsday machine.
Honestly Fab…..WTF is this thing? It doesn’t even say anything….is it supposed to be funny or does it actually make a point? I guess more than 140 people in the world can do my job, so I must be too dense to appreciate it. Went right over my head…..
Fabius Maximus says:
July 24, 2012 at 7:31 pm
Just for you Gary.
Next week he’ll explain Outsourcing!
http://on.aol.com/video/tony-soprano-explains-bain-capital-517377950
Fabius [73],
I’ll admit it… I loved it! :) Ok, off to my private sector job.
ChiFi [82],
Take it simply for the enterainment value.
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