From NJ Spotlight:
SPECULATORS, CASH SALES CROWD OUT HOME BUYERS IN SOME NJ TOWNS
Just off Route 9 in Forked River, blocks of newly rehabilitated and elevated homes are interrupted by the occasional lot overgrown by weeds on which might sit a damaged or vacant home or a foundation naked since superstorm Sandy.
Similar circumstances are visible on Passaic St. in Trenton, scarcely four blocks from the State Capitol, although the initial cause is different. There, the mix of homes includes some newly renovated, well-maintained, deteriorating or boarded-up, and a vacant lot. The city has been busy working on foreclosures.
To real-estate analysts and academics, the circumstances reflect New Jersey’s slow recovery from the big storm and the Great Recession. That has created problems for long-term residents, but buying opportunities for property investors, the experts said. The combination feeds into changing real-estate dynamics in much of the state, they said.
One thing both towns have in common is the number of speculators purchasing properties in all-cash sales. This is worrisome given that speculators often use the properties to build rental housing or simply sit on. In order to truly turn things around, locals want are buyers that will be invested in the community. Still, speculators can be seen as a positive: They usually choose up-and-coming communities to invest in.
In both towns, “if some of these properties had been sold earlier on, they probably would have brought good prices,” said Daren Blomquist, a vice president at RealtyTrac of Irvine, CA, a leading real-estate data firm. “Now, they’ve been sitting there for several years, in many cases empty.”
That wards off individual homebuyers. “There isn’t the interest that there might have been, because these properties may be in poor condition,” Blomquist said. That brings values down and when they finally do sell, it starts yet another cycle because the low values are reflected in comparables. This means local residents have trouble getting equity loans or get lower prices when they do want to sell.
…
Rogers acknowledged that some properties have been changing hands, but not necessarily to the new homeowners the city wants. They want homebuyers who will contribute to the community now, in order to turn things around. Thus, another goal of the redevelopment efforts, she said, is to “slow down speculation” by large investment interests amassing property.The high rate of cash sales is not unknown. Some deals are always made for cash or its equivalents. Big developers write big checks for farmland. Real-estate trusts trade apartment complexes or office buildings. Cities like Newark and Trenton make single houses or lots available cheaply to new buyers. Parents transfer property to children.
But in a stable market, those deals account for about one-quarter of transactions, according to the real-estate firms. Thus, Morris County, a generally well-off area with employment centers and transportation links, had a cash sales rate of about 27 percent in the second quarter of 2006, according to RealtyTrac. It shot up for a bit, but it’s about 26 percent now.
In Ocean County, cash sales also were about 26 percent in the second quarter of 2006, according to RealtyTrac. When the recession hit, they climbed. By the first quarter of 2011, they were 46.6 percent.
…
There is another factor at play, according to James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University, who scrutinizes development trends around the state.Areas on the far fringes of metropolitan areas, with scant public transportation or indigenous industries, already are under stress, Hughes said. He has seen that in his own Hunterdon County, where he serves on an economic development group. There, rapid growth has halted and reversed.
In a 2014 study with fellow Rutgers professor Joseph Seneca, “New Jersey’s Postsuburban Economy,” Hughes documented some of the changes taking place as older, suburban residents leave the state and millennials and immigrants flock to urban areas.
In a five-year period, Brooklyn, NY, attracted one of every five people moving into the area, Hughes said. The fastest growing New Jersey suburb is Bergen County, “which had been losing people in the 1990s,” he said. Its public transit, employment centers, and proximity to New York City give it advantages over more remote areas, he said.
That trend is good news for communities on bus and rail lines, with downtowns for business, arts and restaurants, according to Hughes. Places like Somerville, and Asbury Park already have made gains, he said.
That is also good news for Trenton, according to Blomquist.
“As far as I know, it’s unique among state capitals, sitting on a river that is also the border, so it draws from another state,” he said.
…
But the gap between where New Jersey Transit’s Jersey Coast Line ends in Bay Head and the Atlantic City Line connects to Philadelphia leaves many communities without significant mass transit, Hughes said. The precipitous decline of Atlantic City jobs damages the same region’s economic prospects, he said.“Even in parts of Monmouth County, millennials are saying it was a good place to grow up, but they don’t want to live there now,” Hughes said. “Their parents couldn’t wait to get out of Brooklyn, and the children can’t wait to get back to Brooklyn.”
In the near future, Reinhart said, “the Holmdels, the Colts Necks, the Howells, the West Windsors, those communities are going to be 60, 70 years old. And they’re not Hoboken, they don’t have a lot of homes with architectural significance.”
Farther south, those who can afford the cost of building Shore homes to withstand rising tides and strong storms are still making good investments, he said. But buying a home on a large lot in a sprawling suburb no longer has the same cachet.
“I think those places are going to struggle,” Reinhart said.
FRIST!
gross miscarriage of justice……
JACKSON, Tenn. — A Tennessee teacher has been suspended after part of the gruesome horror film “The Human Centipede 2: (Full Sequence)” was played to a class of ninth- and 10th-graders.
News outlets report that according to a personnel file, Jackson Central-Merry High School teacher Michelle Blankenship was suspended without pay on April 22. The incident occurred April 20.
Superintendent Verna Ruffin says the district is investigating how and why the movie was shown to students under Blankenship’s supervision. The film is unrated in the United States. However the British Board of Film Classification gave the movie an 18 certificate, the rough equivalent of a NC-17 rating in the United States.
Ruffin says it’s unclear how much of the movie the students saw, or whether the movie was put on by a student or Blankenship.
[2] So now HS kids need to be protected from Art films?
In the late ’70s it was commonplace for Rutgers clubs to raise money by renting a print of Deep Throat or Behind The Green Door, or some other p0rn flick and then show it in a university lecture hall or the Student Center auditorium with an admission price of $1.
America at it’s finest….
https://www.youtube.com/watch?v=iwrNiRngMhc
In other “economic recovery” news…
Homeless situation in L.A. continues to worsen, according to the L.A. Times.
Headline: “L.A. sees another sharp rise in homelessness and out door tents.”
In 2016 there are now 47,000 homeless in L.A. county, up from 39,000 in 2013.
America: F yeah
Locked in jail in solitary for 7 months (and counting) without a trial
https://www.washingtonpost.com/news/morning-mix/wp/2016/04/29/fifth-amendment-battle-former-police-officer-has-been-locked-in-solitary-confinement-for-7-months-after-not-handing-over-his-passwords/
Now that’s scary.
http://www.bloomberg.com/features/2016-jared-kushner-trump-card/
“One Week in April, Four Toddlers Shot and Killed Themselves”
@NYTimes
One toddler found a gun while napping with her father.
Another one pulled a pistol from his mother’s purse.
8- People should have went Bernie, only chance at stopping this corruption by putting a poor old man as president. Instead we are stuck with two super wealthy options. Oh well, another lesson learned.
Wtf are you going to do. Nature of the beast.
Bernie was old. Nothing better than a poor old man. He is wise and has no need for money anymore. Can’t be bought.
[9],
So, what’s the solution? What are you proposing?
“There are a lot of different ways to advocate for a universal basic income: as a social!st-ish equalization of resources, as a libertarian-ish replacement for the welfare state, as techno-utopian social engineering for the coming robot-driven end of work. In his latest Janus Investment Outlook, Bill Gross is a little techno-utopian, but he also argues for the universal basic income as macroeconomic policy: helicopter-money UBI.
Money for free! Well not exactly. The Piper that has to be paid will likely be paid for in the form of higher inflation, but that of course is what the central banks claim they want. What they don’t want is to be messed with and to become a government agency by proxy, but that may just be the price they will pay for a civilized society that is quickly becoming less civilized due to robotization. There is a rude end to flying helicopters, but the alternative is an immediate visit to austerity rehab and an extended recession. I suspect politicians and central bankers will choose to fly, instead of die.”
http://www.bloombergview.com/articles/2016-05-05/basic-income-and-blockchain-courts
13- What I always talk about on this blog. He gets it. It’s going to be a different society.
Anyone putting me down for the wage inflation/inflation talk, he agrees. Got that expat? These debts can only be paid with inflation. Thinking it can be done without inflation is comical.
“The Piper that has to be paid will likely be paid for in the form of higher inflation,”
[9] twitiot
I’m gathering that’s the reason you don’t want a gun around: one of your kids might shoot you.
Admittedly, it’s a good reason. Especially since it would probably be intentional
Twitiot would probably pull a Plexico.
8. Nothing more “scary” than a strapping young man, his gorgeous wife, and warm familial relayionships.
Yes, the Kushner family is a family we should all look up to. I didn’t think you were this naive, unless you are being sarcastic. Not really sure, impossible to tell over text.
Essex says:
May 5, 2016 at 1:56 pm
8. Nothing more “scary” than a strapping young man, his gorgeous wife, and warm familial relayionships.
19. Have you ever seen a grown man naked?
lol….thanks for clearing that up.
Essex says:
May 5, 2016 at 2:10 pm
19. Have you ever seen a grown man naked?
http://www.nj.com/politics/index.ssf/2016/05/video_troopers_arrest_woman_for_remaining_silent_d.html#incart_river_home_pop
21 – I’m pretty sure he was asking you a serious question
23. Darn skippy I was…..https://www.youtube.com/watch?v=wfgO90yGusI
From Kyle Smith:
The Oculus Rift? It’s basically a smartphone you wrap around your face. Put it on; reality can’t get in. This is the appeal of drugs, too.
As with drugs, easily bored young people are particularly susceptible. Think your kids are hard to connect with now? Wait till they get themselves an Oculus Rift and begin to expend all their attention, instead of just most of it, on the Great Elsewhere. They’ll be off in a world of their own imagining: hiking up Everest. Having a light-saber duel with Kylo Ren. Joining the Kardashian family.
Considering the p0rn implications of the gadgets, we’re now within half a step of the 0rgasmatron, the Woody Allen-invented virtual-reality capsule (from the 1973 film “Sleeper,” which also accurately predicted the resurgence of fatty food and the surprising endurance of the Volkswagen Beetle), which couples short on time would use for a brisk, machine-made sexual experience. What Woody got wrong (in the scene in which Miles Monroe mistakenly enters the 0rgasmatron alone) was that tech would assume the existence of couples.
https://youtu.be/Isrd7E5nzIQ?t=1m27s
That’s nonsense
Scary fire up in Alberta by the tar sands.
Watch a 6 dash cams of the evacuation.
https://www.youtube.com/watch?v=uQZxcSRGqlo
Panderer Supreme.
https://www.hillaryclinton.com/feed/8-ways-hillary-clinton-just-your-abuela/
Love Trump’s taco bowl tweet. But the Marla bikini pic just goes to show that this guy is ……….awesome.
28. Geezus. That aint bad. I was sold a little and I’m a middle aged dude.
[28] juice
From her site, this heading:
“She knows what’s best …”
Jeez, you can’t make this up.
pumps – I’m glad you are saving up all your inflation so you can use it to pay your bills. What kind of interest rate are you getting on your inflation account?
You are comical, I’ll give you that.
Anyone putting me down for the wage inflation/inflation talk, he agrees. Got that expat? These debts can only be paid with inflation. Thinking it can be done without inflation is comical.
Go do some reading.
https://www.economicshelp.org/blog/3015/economics/why-inflation-makes-it-easier-for-government-to-pay-debt/
https://www.economicshelp.org/blog/3188/inflation/personal-debt-and-inflation/
“There are three ways for a government to pay for debt: issue new debt, collect taxes, and cause inflation. Inflation is a ‘hidden tax’ on a populace- it decreases the value of future money, and allows governments to pay off their current debt with devalued money. The United States dollar, as the world’s reserve currency, gives the United States a unique temptation to use inflation to pay off debt.”
https://dqydj.com/inflation-to-pay-off-debt-stealthily/
The Original NJ ExPat says:
May 6, 2016 at 7:02 am
pumps – I’m glad you are saving up all your inflation so you can use it to pay your bills. What kind of interest rate are you getting on your inflation account?
You are comical, I’ll give you that.
Anyone putting me down for the wage inflation/inflation talk, he agrees. Got that expat? These debts can only be paid with inflation. Thinking it can be done without inflation is comical.
“I am not ready to support Speaker Ryan’s agenda. Perhaps in the future we can work together and come to an agreement about what is best for the American people. They have been treated so badly for so long that it is about time for politicians to put them first!”
Donald J. Trump
“There are three ways for a government to pay for debt: issue new debt, collect taxes, and cause inflation. Inflation is a ‘hidden tax’ on a populace- it decreases the value of future money, and allows governments to pay off their current debt with devalued money. The United States dollar, as the world’s reserve currency, gives the United States a unique temptation to use inflation to pay off debt.”
https://dqydj.com/inflation-to-pay-off-debt-stealthily/
The Original NJ ExPat says:
May 6, 2016 at 7:02 am
pumps – I’m glad you are saving up all your inflation so you can use it to pay your bills. What kind of interest rate are you getting on your inflation account?
You are comical, I’ll give you that.
Anyone putting me down for the wage inflation/inflation talk, he agrees. Got that expat? These debts can only be paid with inflation. Thinking it can be done without inflation is comical.
“There are three ways for a government to pay for debt: issue new debt, collect taxes, and cause inflation. Inflation is a ‘hidden tax’ on a populace- it decreases the value of future money, and allows governments to pay off their current debt with devalued money. The United States dollar, as the world’s reserve currency, gives the United States a unique temptation to use inflation to pay off debt.”
The Original NJ ExPat says:
May 6, 2016 at 7:02 am
pumps – I’m glad you are saving up all your inflation so you can use it to pay your bills. What kind of interest rate are you getting on your inflation account?
You are comical, I’ll give you that.
Anyone putting me down for the wage inflation/inflation talk, he agrees. Got that expat? These debts can only be paid with inflation. Thinking it can be done without inflation is comical.
Paul Ryan’s primary opponent:
https://youtu.be/rcVsuCgYf0U
Another 362,000 workers dropped out of the labor pool in April alone.
362 thousand workers!
So now that the FBI is officially interviewing Huma and the other Aides of Hillary how long before someone is charged with making false statements to a federal official? You know the same hammer the FBI used to put Martha Stewart, Rod Blagojevich, Scooter Libby, Bernard Madoff, and Jeffrey Skilling in jail?
http://www.bloomberg.com/news/articles/2016-05-06/the-party-s-over-in-alaska
“America’s Last Frontier is in trouble. The 40-year oil boom that turned Alaska from a frigid backwater into one of the nation’s richest states is over. Not only have petroleum prices crashed, but Alaska’s supply of crude is running out. Thirty years ago the state was pumping 2 million barrels a day, a quarter of all U.S. output. But over the past decade, the Prudhoe Bay oil field, once the largest in North America, has started to reach the end of its life. Alaska’s output has fallen to 500,000 barrels a day, enough to fill only one-quarter of the capacity of the state’s main economic artery, the 800-mile Trans-Alaska Pipeline System.
With 90 percent of the general fund revenue tied to oil, the collapse has been devastating. Alaska, facing a $4 billion budget deficit, is one of four energy states that have slid into recession over the past year because of cheap oil. The state’s rainy day fund is burning through $11 million a day. If that keeps up, it will be out of emergency funds within two years.”
re # 40 – what is worse is they thought they had 10 billion barrels of oil reserves up in Alaska. It turns out maybe only 1 Billion.
It’s sad you don’t understand that the government can only issue bonds (increase debt) and not money.
The Great Pumpkin says:
May 6, 2016 at 8:37 am
“There are three ways for a government to pay for debt: issue new debt, collect taxes, and cause inflation. Inflation is a ‘hidden tax’ on a populace- it decreases the value of future money, and allows governments to pay off their current debt with devalued money. The United States dollar, as the world’s reserve currency, gives the United States a unique temptation to use inflation to pay off debt.”
https://dqydj.com/inflation-to-pay-off-debt-stealthily/
It’s also sad you think rich people have cash in their mattresses and not invested in stocks, bonds, etc and are BY DEFINITION participating in the system.
Idiot.
“The U.S. retirement landscape is starting to look like a Charles Dickens novel.
Since voluntary savings plans led by 401(k)s have largely replaced traditional pensions, it’s probably no surprise that this is the best of times for many highly paid workers. Equally unsurprising is that this is the worst of times for almost everyone else, especially the 42 percent (PDF) of workers who don’t have access to a work-sponsored plan. The stunner is just how much the luckiest among us will outpace the unluckiest on retirement day: eleven times as much.
A new report from the Government Accountability Office describes this tale of two Americas. It calculates the effect that unequal pay and limited access to retirement plans will have on today’s workers decades from now. It also offers a few suggestions for how Americans might boost their retirement income.
About 60 percent of all U.S. households have no savings in an individual retirement account (IRA) or in a 401(k)-style account,1 the report found. ”
http://www.bloomberg.com/news/articles/2016-05-06/the-rich-have-you-beat-in-retirement-too
You are clearly the idiot for thinking the way you do.
joyce says:
May 6, 2016 at 11:07 am
It’s also sad you think rich people have cash in their mattresses and not invested in stocks, bonds, etc and are BY DEFINITION participating in the system.
Idiot.
http://www.economicshelp.org/blog/3015/economics/why-inflation-makes-it-easier-for-government-to-pay-debt/
joyce says:
May 6, 2016 at 11:06 am
It’s sad you don’t understand that the government can only issue bonds (increase debt) and not money.
Do you realize there are two sides of a balance sheet?
You clearly don’t understand.
joyce says:
May 6, 2016 at 11:44 am
Do you realize there are two sides of a balance sheet?
May 5, 2016 Thursday
106 words
-Humana to exit health insurance marketplace in some states
Global Banking News – 05 May 2016
Insurance provider Humana has announced a plan to exit some health insurance marketplaces in some states.
The firm said that it is considering an exit from the Affordable Care Act insurance exchanges next year, as it seeks to curb financial losses. It said that it would evaluate its prospects in each state and take an appropriate decision.
A spokesperson said, ‘Over the next weeks, we will continue working with state and federal regulatory agencies to finalise these decisions prior to the open-enrolment period this fall.’
Was listening to someone who I thought was an analyst (tuned in mid-convo), talking about the jobs number. Seemed to be very happy with it and made a few good points, but then started into some cheerleading and I was like ‘WTF, this is an analyst?”
Turned out it was the Secretary of Labor (?) being interviewed.
From there, it went full-on political, and I heard what has to be the Newspeak Thought of the Day: When asked how the admnistration could help keep jobs in the U.S., the Secretary said that the administration “was going to reward job creators” and said that the Treasury’s anti-inversion rules “rewards companies that stay and create jobs here.”
Let’s review the logic here: A regulation that prevents companies from leaving the U.S. is a reward for domestic businesses.
Trying to figure out how to twist the logic on that one is making my head hurt.
Moose, your 2012 articles with fed charts should be updated. I agree, that trend has only worsened.
Nom [51];
That’s the beauty of the links to the St. Louis Fed graph data… as long as the data series still exists, the graph is automatically updated. The text is 2012, but the graph is 2016.
We’re talking about this 2012 article which highlighted the unprecedented decline in labor force participation during the (ongoing) Obama Depression. Revisiting the link today, the graphs are updated (perhaps unintentionally) with current FRB data, and show the trend has only gotten worse over Obama’s second term.
@BenjySarling
Right now world is begging to buy US bonds at low interest.
Farthest thing from bankruptcy.
But Trump is talking about voluntary default.
thank you Mr President
@BarackObama
74 consecutive months—more than six years—of private-sector job growth.
Let’s keep up the progress.
now i see why the GOP hates him
@realDonaldTrump
Thank you to teachers across America!
When I become POTUS we will make education a far more important component of our life than it is now.
In honor of the dear departed JJ.
China bans ‘erotic’ banana-eating live streams
http://www.bbc.com/news/blogs-news-from-elsewhere-36226141
56. Respekt
55. any time the Feds decide to immerse themselves in education, you can rest assured we are in for a bumpy ride….
This will excite Joyce more than the twitiot
http://www.cnn.com/2016/05/06/us/maryland-shootings/index.html
Sr. Schitzo [54];
How do those job numbers look when you add in population growth? Still above water? You can say the answer out loud; we already know.
Keep pounding those DNC talking points, just like you’re told. Good boy. Here’s a cookie.
If the entire country’s population were unemployed but one, the twidiot would be tweeting “Bravo, and great job Mr. President!”
74 consecutive months—more than six years—of private-sector job growth.
Let’s keep up the progress.
I read the opposite in numerous places today.
GOP Broken,
Real gross domestic product increased at an annual rate of 0.5 percent in the first quarter of 2016. Still believe that “robust” job growth?
What happened to JJ? Where has he been?
#64 – re: “What happened to JJ?”
His raft deflated.
ccb223 [64];
What happened to JJ? Where has he been?
Rode off into the sunset, like the legendary man of mystery that he is.
Oh yeah, and PR bonds went south so he may also have gone to work.
NJ dumps billions into these districts. There has to be a better way.
SAT results by High School. Read it and weep. Sort low to high..
http://www.nj.com/education/2016/05/whats_the_average_sat_score_in_your_high_school.html#incart_river_home
Watching Bloomberg TV right now. Does anyone else get the inkling that TV viewers are increasingly more likely to vote for Trump with every talking head that says he can’t win or isn’t qualified or will get decimated by Clinton?
Re: Trump polls: Suck it pollsters! https://en.wikipedia.org/wiki/Bradley_effect
69 – yep
Science proves it. Millenials are, by and large, puss1es.
http://www.cnn.com/2016/05/03/opinions/grit-is-a-gift-of-age-duckworth/?iid=ob_homepage_10-test_featured_pool
Marines may be disenrolled from Iwo Jima history
http://www.cnn.com/2016/05/05/health/iwo-jima-false-memories/?iid=ob_homepage_NewsAndBuzz_pool
And in a related story, President Obama has directed that John Bradley and Rene Gagnon be removed from the Iwo Jima Memorial and replaced with a woman and an African-American.
The Gagnon family, anxious to retain their forebear’s presence on the memorial, has directed that she be reclassified as a woman and her name change to Renee
If Hillary wins,will she sit behind the desk Monica crawled under?
How
greatawful is this?https://www.youtube.com/watch?v=HC-fs0xPO7U
Yep. With Huma Abedin shackled to the floor in Monica’s place.
If Hillary wins,will she sit behind the desk Monica crawled under?
The Gagnon family, anxious to retain their forebear’s presence on the memorial, has directed that she be reclassified as a woman and her name change to
ReneeShaniquaA little Druckenmiller for some light Maw’s Day reading:
“The lack of progress and volatility in global equity markets the past year, which often precedes a major trend change, suggests that their risk/reward is negative without substantially lower prices and/or structural reform. Don’t hold your breath for the latter. While policymakers have no end game, markets do.
On a final note, what was the one asset you did not want to own when I started Duquesne in 1981? Hint…it has traded for 5000 years and for the first time has a positive carry in many parts of the globe as bankers are now experimenting with the absurd notion of negative interest rates. Some regard it as a metal, we regard it as a currency and it remains our largest currency allocation.”
http://www.zerohedge.com/news/2016-05-07/stan-druckenmiller-endgame-his-full-apocalyptic-presentation
[77] Au Baby! I am a believer, but I don’t think it’s time to back up the truck yet. One more equity spike up coincident with a metals pullback (shaking out the weak hands and plying the muppets back into equities) and then it all begins. Yellen has to have her eye on 2135 for the S&P and she may get it, but after that….watch out.
Expat (78)-
Every equity spike these days is a BTFD opportunity for Au and Ag. However, worldwide NIRP is now pushing a lot of (smart) money into shiny. It’s all positive carry in a negative rate environment, so my guess is that we see PMs explode sooner, rather than later.
More fun reading for tomorrow’s day of fake mirth. Nobody ever sets out to become a junkie:
“The irony of QE or of Jos. A. Bank’s marketing strategy is that neither started out as an indefinite adventure. QE 1 was launched as a way to restore liquidity and prevent a run on the banks in the midst of the financial crisis. QE 2 and the rest that followed were the Fed’s attempt to engineer greater economic growth. I remember talking to Jos. A. Bank’s CFO in the late 2000s, and he was telling me how its “buy-one-get-X-free” strategy was temporary. However, then the crisis arrived, and slowly, one month at a time, its marketing campaign became permanent. Just as people who try her0in for the first time never intend to become drug addicts, neither the Fed nor Jos. A. Bank management wanted to become QE and “buy-one-get-X-free” junkies.”
http://www.zerohedge.com/news/2016-05-06/jos-bank-and-folly-quantitative-easing