May housing construction disappoints

From the WSJ:

U.S. Housing Starts Fall 6.5% in May

A gauge of new-home construction fell in May after several months of gains, the latest sign of the housing sector’s uneven recovery.

Housing starts fell 6.5% in May to a seasonally adjusted annual pace of 1.001 million, the Commerce Department said Tuesday. That marked the first decline in four months and was bigger than the 3.7% drop forecast by economists.

The decline was broad-based across regions and type of construction. Single-family housing starts fell 5.9%, while multifamily fell 7.6%. April’s surge in home building was revised down slightly to 12.7% growth from 13.2%.

“Housing has yet to establish clear upward momentum again,” said Jim O’Sullivan, chief U.S. economist at High Frequency Economics.

Newly approved applications for building permits, an indicator of future construction, fell 6.4% in May to 991,000 on a sharp decline the volatile multi-family segment.

But in one bright spot, single-family permits jumped 3.7% to 619,000, their fastest rate of increase since September 2012. Single-family construction represents the bulk of the housing market and is considered a better gauge of demand.

In a note to clients, economists from IHS Global Insight described the rise in single-family permits as “one nugget of very good news.”

Overall, Tuesday’s report showed that the road to recovery for the housing industry remains a bumpy one. Home building came roaring back in 2012 and the early part of 2013, only to be derailed by a rise of mortgage rates and a run-up in home prices that sidelined many prospective buyers. An unusually cold winter further depressed housing-market activity over the winter months.

This entry was posted in Demographics, Economics, Employment, Housing Recovery. Bookmark the permalink.

66 Responses to May housing construction disappoints

  1. anon (the good one) says:

    @pourmecoffee:
    Every time a Bush neocon speaks about Iraq, a giant Monty Python foot should come down and crush them
    http://t.co/s3AJavPALF

  2. chicagofinance says:

    FRIST……for real people that is….

  3. Street Justice says:

    http://www.washingtonpost.com/politics/three-vying-for-house-majority-whip-will-address-gop-colleagues-day-before-vote/2014/06/17/fb516296-f68d-11e3-8aa9-dad2ec039789_story.html

    A tightening three-way race for House majority whip, the chamber’s third-ranking position, will enter its final stretch Wednesday morning when the contenders address a closed forum in the Capitol basement, making short speeches to their colleagues a day before Thursday’s leadership elections.

    With Majority Whip Kevin McCarthy (R-Calif.) expected to easily win the contest to succeed Majority Leader Eric Cantor (R-Va.), the gathering will be center stage for an intensifying debate over whether House Republicans should move further to the right following Cantor’s defeat in a primary.

  4. Street Justice says:

    https://twitter.com/ChuckCJohnson/status/479099776646905856/photo/1

    Charles C. Johnson
    ‏@ChuckCJohnson
    “He is always terrific.” — Obama on Peter Roskam who is running to be Majority Whip. pic.twitter.com/jibvJvo7eM

  5. JJ says:

    Who can afford new housing anyhow? The cost is much higher than an existing home and in NY/NJ the taxes are outrageous on new construction.

    Builders trick you when they give you estimated taxes then around 1-3 years after you move in you get creamed with property taxes that insantly devalues your house. Plus you can only be a Virgin once. You cant get a huge news construction prem when you sell in 10-15 years as all buyers see is a ton of maint coming up and high taxes.

  6. Painhrtz - from Sabbatical says:

    Street move further to the right ie more social issues. what the morons refuse to see the real reason for the Cantor loss is that despite the rhetoric regarding Brat immigration’s stance was a fallacy, instead it was a referendum on a big government insider more concerned with his place in the Republican party. As well as open primary voters from the other side jumping in to take out a known enemy. If the stupid party would put to bed their constant tilting a social windmills and stop paying lip service to small government while spending like drunken Portuguese sailors they may get somewhere. Otherwise going more to the right is always a losing proposition.

  7. Fast Eddie says:

    President Barack Obama has seen an erosion in support for his foreign policy plummet to an all-time low, according to a new Wall Street Journal/NBC poll released Wednesday.

    According to the poll, just 37% of respondents said they approved of Obama’s handling of foreign-policy issues, an all-time low. Meanwhile, 57% said they disapproved, an all-time high.

    Some other highlights from the poll:
    •Obama’s overall approval rating sits at just 41%, tying an all-time low.
    •His approval rating on handling the economy also sits at 41%, which is down 1 percentage point from last month. It’s the same number from March.
    •Obama’s favorability rating is underwater — 41% said they view him positively, while 45% see him in a negative light.
    •When asked their predictions on the rest of Obama’s term in office, 54% said they thought he “cannot lead and get the job done,” compared with only 42% who said the opposite.
    •Over the last 12 months, 41% of respondents said their views of the Obama administration have “gotten worse.” Only 15% said they have “gotten better.”

    I’m embarrassed and ashamed at what this man has done to our country and what he represents. Every time I listen to him speak, I hear a man that sounds unconvincing and lacks leadership abilities. Forget about his political affiliation; he is simply not equipped to be a President.

  8. Street Justice says:

    Chuck Woolery @chuckwoolery
    Call me cynical. This Benghazi attack suspect could have been picked up for over a year. Obama picked him up when needed him. Period.

  9. Juice Box says:

    Nearing Peak? As in Peak Stock buyback?

    80% of the companies in the S&P 500 index are buying back stock and borrowing cheaply to do this. Draining all cash and borrowing to boost the stock price means there won’t be any money left for acquisitions, retooling or internal investment if this keeps up, leverage up on cheap money.

    Latest numbers are in.

    S&P 500 Stock Buybacks Jump 59%

    http://online.wsj.com/article/PR-CO-20140618-906480.html

  10. Juice Box says:

    I have a new name for Washington’s Football team “The Turncoats”

    Six Washington Redskins trademarks were cancelled by the U.S. Patent Office in a ruling on Wednesday. The ruling was made because the terms were found disparaging at the time they were registered.

    http://www.washingtonpost.com/local/us-patent-office-cancels-redskins-trademark-registration-says-name-is-disparaging/2014/06/18/e7737bb8-f6ee-11e3-8aa9-dad2ec039789_story.html

  11. grim says:

    Just heard something about food stamp usage being down 4% from peak.

    Is it just because the poor have now resorted to eating dogs, or is the economy improving?

  12. anon (the good one) says:

    @pourmecoffee:
    Reminder: Dick Cheney makes better sense if you add, “– , Clarice” to the end of his sentences.

    “We won in Iraq, Clarice.”

  13. Street Justice says:

    11. –

    If your (minimum wage) salary increases, is it possible it makes you less eligible for other government benefits?

  14. anon (the good one) says:

    cynical

    Street Justice says:
    June 18, 2014 at 10:05 am

    Call me cynical.

  15. grim says:

    13 – So what you are saying is that a $15/hr minimum wage and a household income of $75k should entitle you to welfare?

  16. Street Justice says:

    CNN Had no trouble finding him in May of 2013

    http://www.cnn.com/video/data/2.0/video/world/2014/06/17/damon-benghazi-ahmed-abu-khattalah-intv-2013.cnn.html

    anon (the good one) says:
    June 18, 2014 at 10:37 am
    cynical

    Street Justice says:
    June 18, 2014 at 10:05 am

    Call me cynical.

  17. Sima says:

    Based on personal experience, finally in May the number of contract job openings in NJ seemed to be up.
    But many of the contract jobs are for workers at a lower hourly rate than in 2011 (same exact jobs, but offering from $5. to $20. less per hour).

    The NJ pharmaceutical industry is now filled with contract workers – they all got laid off, but companies still need to get the work done, so many are now rehiring the original workers as contract workers. Definitely seems like musical chairs.
    And hiring and laying off of contract workers is very disruptive to everyone. It takes a while for a contract worker to get up to speed, gain real knowledge etc in a job, and then BAM, out he/she goes after 6 months for ‘budget reasons” alone.

    I don’t know of a single contract worker who isn’t stressed out over the job situation and living in “survival mode”. (And don’t say to look elsewhere in other states because companies only like to hire local people.)

    I also see that discount stores are still doing a thriving business here in north NJ.

    So in answer to Grim’s question – the economy may be improving, but it sure looks to me to only be a minimal improvement.

  18. Sima says:

    And now this article – Is New Jersey Like Detroit?
    http://www.newjerseynewsroom.com/state/is-new-jersey-like-detroit

  19. Michael says:

    Sad. They basically are taking advantage of their skilled work force to increase their profits. This is why the promotion of everyone being educated is bad for everyone. When everyone gets skills, it drives down the price of skilled jobs.

    This is a got damn mess, and it’s all due to greed. Say what you want about me, but this shi! is wrong in every way possible.

    Sima says:
    June 18, 2014 at 10:51 am
    Based on personal experience, finally in May the number of contract job openings in NJ seemed to be up.
    But many of the contract jobs are for workers at a lower hourly rate than in 2011 (same exact jobs, but offering from $5. to $20. less per hour).

    The NJ pharmaceutical industry is now filled with contract workers – they all got laid off, but companies still need to get the work done, so many are now rehiring the original workers as contract workers. Definitely seems like musical chairs.
    And hiring and laying off of contract workers is very disruptive to everyone. It takes a while for a contract worker to get up to speed, gain real knowledge etc in a job, and then BAM, out he/she goes after 6 months for ‘budget reasons” alone.

    I don’t know of a single contract worker who isn’t stressed out over the job situation and living in “survival mode”. (And don’t say to look elsewhere in other states because companies only like to hire local people.)

    I also see that discount stores are still doing a thriving business here in north NJ.

    So in answer to Grim’s question – the economy may be improving, but it sure looks to me to only be a minimal improvement.

  20. Street Justice says:

    15 – I can’t tell if you’re being sarcastic but what I’m saying is that for people near or below the poverty level, regional increases in their wage might make them ineligible for other government programs that supplement their income like the SNAP program.

  21. JJ says:

    You do realize the vast majority of people had no clue who Cantor was?

    6.Painhrtz – from Sabbatical says:
    June 18, 2014 at 9:38 am
    Street move further to the right ie more social issues. what the morons refuse to see the real reason for the Cantor loss is that despite the rhetoric regarding Brat immigration’s stance was a fallacy, instead it was a referendum on a big government insider more concerned with his place in the Republican party. As well as open primary voters from the other side jumping in to take out a known enemy. If the stupid party would put to bed their constant tilting a social windmills and stop paying lip service to small government while spending like drunken Portuguese sailors they may get somewhere. Otherwise going more to the right is always a losing proposition.

  22. Libturd in the City says:

    Maybe they are all buying their shares back since it’s at a nice low price compared to where it will be tomorrow?

  23. Libturd in the City says:

    “You do realize the vast majority of people had no clue who Cantor was?”

    I had no clue. Then again, I don’t follow politicians as if they were celebrities. It would be like admiring serial killers.

  24. Juice Box says:

    re #22 – It is not the buybacks necessarily but the issuance of massive amounts of NEW CREDIT to sustain it.

    Something I have mentioned in the past… Bankers at the WEC in 2011 stated they were counting on 100 Trillion in new debt issuance this decade, after all the next bubble needs to be bigger than than the last.

    Here was the statement from the WEC in 2011

    “The world’s expected economic growth will have to be supported by an extra $100 trillion (£63 trillion) in credit over the next decade, according to the World Economic Forum. This doubling of existing credit levels could be achieved without increasing the risk of a major crisis, said the report from the WEF ahead of its high-profile annual meeting in Davos.

    But researchers warned that leaders must be wary of new credit “hotspots”, where too much lending takes place, as the world emerges from a financial catastrophe blamed in large part “to the failure of the financial system to detect and constrain” these areas of unsustainable debt.

    “Pockets of credit grew rapidly to excess – and brought the entire financial system to the brink of collapse,” said the report, written in conjunction with consulting firm McKinsey. “Yet, credit is the lifeblood of the economy, and much more of it will be needed to sustain the recovery and enable the developing world to achieve its growth potential.”

    The global credit stock has already doubled in recent years, from $57 trillion to $109 trillion between 2000 and 2009, according to the report. The WEF said the continued demand for credit could be met “responsibly, sustainably – and with fewer crises”. However, it cautioned that to achieve this goal, financial institutions, regulators, and policy makers need more robust indicators of unsustainable lending, risk, and credit shortages.”

    More news on the subject of buybacks juicing the stock markets around the world.

    http://dealbook.nytimes.com/2014/06/16/china-surpasses-u-s-as-largest-corporate-debt-issuer/?_php=true&_type=blogs&_r=0

  25. Comrade Nom Deplume, a.k.a. Captain Justice says:

    Anecdote of the week:

    On Monday evening, I went to Costco to fill the tank and also fill a couple of gas cans. There were two other cars in the station. As I took the cans out of the trunk, I looked over to my left and right. Everyone there was filling gas cans.

    Hmm.

  26. grim says:

    Republicans are worse than hippies, no idea who or what the want to be. Growing old wandering, looking to find themselves.

    Go left! No, go right! No, go center! Exposed as charlatans, good riddance.

  27. grim says:

    Time feels ripe to abolish the two party system

  28. 1987 Condo says:

    #25…lawn mowers….

  29. grim says:

    Funny, I used the last of my gas can yesterday.

  30. Michael says:

    Modern monetary theory. Research it. Debt doesn’t matter. Well it matters, but not to the extent that people think it will destroy our economy. That’s the problem, people are stuck on simple economics 101. They do not understand complex economics of modern times. That’s a lot of the right wing’s problem, they worry about bs. Debt is pointless to worry about. To stop govt over it in modern times is a joke. It means they completely don’t understand modern economics.

    “Because the government can issue its own currency at will, MMT maintains that the level of taxation relative to government spending (the government’s deficit spending or budget surplus) is in reality a policy tool that regulates inflation and unemployment, and not a means of funding the government’s activities per se.”

    http://en.wikipedia.org/wiki/Modern_Monetary_Theory

  31. Michael says:

    Amen!

    grim says:
    June 18, 2014 at 12:13 pm
    Time feels ripe to abolish the two party system

  32. Libturd in the City says:

    “He likes it! Hey Mikey!”

  33. JJ says:

    I have some interesting real estate news. So the condo I own has six models, all two beds 1.5 bath. Owners pay own heat, water, electric and is responsible for own windows, doors balconies and each unit insured for same. Therefore the maint is identical for all units. Now we have 20% of units in arrears. Interesting. ALL the arrears come from the least desirable units. Slightly smaller, no balcony or prone to flooding. So of the six models, two lowers and smallest upper are all the arrears. The three larger upper units have no arrears.

    Even stranger one guy behind in arrears is advertising cash only. Is he hoping someone who pays cash does not do title search to realize they owe like 8k in maint?

    Condos in general dont disclose hardly any info and lots of arrears and lawsuits going on so much that a new board member may not even know all the details till year two of serving on the board

  34. Anon E. Moose says:

    Grim [26];

    Are they any less charlatain then the Johnny One-Note Democrating Party? Every issue has only one answer; “More Cowbell [Taxes, Regulation, Government]!”

  35. Painhrtz - from Sabbatical says:

    JJ not commenting on Cantor just the stupid party’s ability to read the reasons for the loss.

    Personally I hope the entire system falls apart, politicians are like rats get rid of one 2 take the original rats place

  36. Michael says:

    30- This is also why old school politicians and businessmen using economic theories from a 100 years ago can’t understand why raising the minimum wage actually has more benefits than negatives. They are taking too simple of analysis of the situation. They use extremes in pointing out why the minimum wage is bad. For example, they suggest that if you raise it to 10 why not 30, and make everyone rich. That’s an extremist speaking. They are not allowing for open thoughts. They just see it as the owner paying more for workers, which is too simple of an approach. If they understood that a little rise in the minimum wage every so often (when it is needed to jumpstart economy) brings way more benefits to the economy than negatives. Of course they are not capable of understanding why and how it is beneficial. All they see is more costs for the worker. Such a simple minded view.

  37. Fast Eddie says:

    The United States Patent and Trademark Office has canceled the Washington Redskins trademark registration, calling the football team’s name “disparaging to Native Americans.”

    Why stop here? Go after the Atlanta Braves, KC Chiefs and Cleveland Indians as well. I think the name the “Giants” is offensive to tall buildings and large people. Don’t name your team the Bengals or Bobcats because that’s insensitive to animals. The Red Storm? Offensive to weather patterns. Of all the the ills in this country, this is the focus.

    http://www.washingtonpost.com/local/us-patent-office-cancels-redskins-trademark-registration-says-name-is-disparaging/2014/06/18/e7737bb8-f6ee-11e3-8aa9-dad2ec039789_story.html

  38. Michael says:

    You need some taxes and some regulation. Of course the democrats take it to the extreme to pad their friends wallets, but theoretically, taxes and regulation are needed. Our infrastructure was built by govt. The private sector would have never taken the risk to do these projects. If they did take the risk, they would demand an unreal profit for the risk. Corruption is the problem, not taxes and regulation.

    Anon E. Moose says:
    June 18, 2014 at 12:58 pm
    Grim [26];

    Are they any less charlatain then the Johnny One-Note Democrating Party? Every issue has only one answer; “More Cowbell [Taxes, Regulation, Government]!”

  39. 1987 Condo says:

    Rule #1, rent, don’t buy a condo!

    If you think the local housing market is difficult to understand get a handle on, as I painfully learned (60% realized loss over 12 years) each condo development is it’s own little micro economy as well…

  40. Michael says:

    Imo, one of the best lines you have written. So true and on point, it’s not even funny.

    “Of all the the ills in this country, this is the focus.”

  41. Michael says:

    What a great analysis.

    “Should be a great game again. But people who expect a blow-out: like NOT going to happen.

    Netherlands is a counter-attacking team, so Spain with its offensive gameplay will of course suit them better than Australia probably does. NED can easily get into trouble when they have to make the game (have more of the possession of the ball) and when the defense is set properly like Algeria did yesterday.

    NED played against AUS 3 times and were not able to beat them. Two draws and one loss (at home) in friendly matches, doesn’t say it all but still.AUS can give the Dutchies a really hard time when they just do what they do best: great and tight defense, and hard (but fair) and dynamic gameplay.

    Don’t expect a 5-0 or something like that, not gonna happen. And if it does happen…just totally forget about this post of mine. ;)”

  42. JJ says:

    I agree. Whever money I save I only save myself personally a fraction of the money. And deadbeat nieghbors I dont like will get an equal savings from my work even though they did nothing.

    However, I like saving money so much I dont mind doing it for whole building. Stuff I am doing like grieving taxes, trying to get rid of association loan, tackling arrears and getting federal block grant funds for sandy repairs are all long term fixes. Meaning 2-3 years to kick in. So folks in arrears/forclosure only have the choice to pay up or give up by the time the savings kick in.

    Only difference is my time frame is forever.

    Condos do make sense for second homes in flood zones. Although most folks dont even realize it yet. The master association policy does not charge second home owners any extra. The master policy per unit is usually cheaper than a regular flood policy as it covers less. Just sheetrock back and mechanicals and no improvements. If you buy a upper unit by the water that is all you need. Your unit wont get water and it covers all the mechanicals etc.

    Other pain is investors have to join the board. Otherwise they can pass flip fees, sublet fees, change rental rules etc. Joining board is a lot of work. Which sometimes causes folks to buy more than one unit in a single building as they dont want to be on multiple boards and they they have concentation risk.

    Currently my building is unwarrantable which means no mortgages, helocs or refinances. Which oddly is a good thing as it is protects folks from themselves. Of all the unit in arrears not a single one over paid. Most are way above water. But all took out helocs and refinances between 2002-2008 when building could get mortgages and now they are ruining the building. Bank needs clean financials to start mortgages again and I am on track for that by January 2017. A five year break from mortgages is great. New buyers are cash. Current folks are paying down mortgages, cant take out HELOCs or defaulting.

    By 2017 we will have all the units with a lot of equity. And a lot of new owners which sets us up nice for next decade unit the next bout of bubble madness.

    I had a chance to buy a second unit at an even better price but I passed on it. I did make sure a primary homeowner bought it. I dont want to many rentals as it could cause new rules. Reason is in short term I dont know effect of folks defaulting will have on the building. Long term it is great, as new folks buy, move in and start paying maint. Short term it can drive values way down. Which plays into my tax greivance and helps me get maint down as units start paying. But ruins comps.

    39.1987 Condo says:
    June 18, 2014 at 1:16 pm
    Rule #1, rent, don’t buy a condo!

    If you think the local housing market is difficult to understand get a handle on, as I painfully learned (60% realized loss over 12 years) each condo development is it’s own little micro economy as well…

  43. Michael says:

    Too funny!!!

    “It’s a sad state of affairs how the conservative voters always vote against their own best financial interests. I guess maybe some may have a different issue that drives them, such as abortion or they want the death penalty but mostly what you hear from them is about taxing the poor wealthy people. I guess they don’t realize it’s a zero-sum game in that when they vote to lower taxes even more on bankers and the ultra-wealthy someone has to make up the difference and so they pay higher taxes.

    The most powerful individuals and corporations have a louder vote than the rest of us, so they are able to convince folks that the middle-class doesn’t need money as much as the top dogs and they swallow that line. I saw a post from a man recently who says he makes under $50K/year. This man was posting some statistics about income in the US and he wanted to show how taxes had gone up for the top earners, so he gave the percentage in 1984 and compared it to a marginally higher rate at some point since then. He did not bother to go back to 1979 when the top rate was in the 75% range and is much lower now than then. I wonder why he didn’t list that one? Poor guy…..”

  44. Michael says:

    This is so well written. Wish more people could understand this. Half of you will just blow this off because it doesn’t line up with your party lines and what they tell you to think….sad

    “An ethical answer to that question: as much as they EARN, by their own merit.

    The problem is not rich people versus poor people, the problem is the rich people that get the government to use force on their behalf”

    What about rich people who made their money unethically? Like those who created the derivatives banking that tanked the economy? The problem with notions of “as much as they earn by their own merit” is that it belies the potential for unethical business practices, legalized and legitimized by the system. It belies the inherent hierarchical nature of the system, and that some people are undeniably victims of such. It assumes that money earned, is money deserved and money earned justly. It assumes that meritocracy is legitimate, with presumes absolute equality in access to opportunities in life, and it denies social barriers of prejudice, poverty and the ability/desire to conform to society.

    The problem is that neoliberal/neoconservative political and economic theory misses much of the inherent nature of societal construction and its detriment. It creates ideological bubbles that dogmatically insist on abstract theoretical discussion of interactions and products of society, but deny the potential greater complexity. Allow me to show you:

    “An ethical answer to that question: as much as they EARN, by their own merit.”

    Another ethical answer to that question is a just a fair distribution of wealth that doesn’t deny the potential detriment of society to some, whilst still allows for the self-determination of others to succeed to standards above their peers. An ethical society allows for increased prosperity at the hands of increased effort/ability yet doesn’t lose it’s humanity in the process and still cares for the well-being of all its members and doesn’t allow the influence of over-prosperity to give some unfair advantage to manipulate others in various ways. And ethical society wouldn’t let wealth disparity hit levels we see now and an ethical society wouldn’t produce rational members who attempt to justify fundamentally unethical modes of thought.”

  45. Michael says:

    44- There is no attack on the rich in that post. There is no jealousy. There is only logic. Rags, you consider yourself a proponent of logical thinking. Why is this so hard for you to understand then?

  46. anon (the good one) says:

    dude, how can a Fundamentalist be a logical thinker?

    Michael says:
    June 18, 2014 at 2:29 pm
    44- There is no attack on the rich in that post. There is no jealousy. There is only logic. Rags, you consider yourself a proponent of logical thinking. Why is this so hard for you to understand then?

  47. anon (the good one) says:

    it’s all due to minimum wage. it would be full employment and great economy if people worked for free

    Michael says:
    June 18, 2014 at 11:04 am
    Sad. They basically are taking advantage of their skilled work force to increase their profits. This is why the promotion of everyone being educated is bad for everyone. When everyone gets skills, it drives down the price of skilled jobs.

    This is a got damn mess, and it’s all due to greed. Say what you want about me, but this shi! is wrong in every way possible.

    Sima says:
    June 18, 2014 at 10:51 am
    Based on personal experience, finally in May the number of contract job openings in NJ seemed to be up.
    But many of the contract jobs are for workers at a lower hourly rate than in 2011 (same exact jobs, but offering from $5. to $20. less per hour).

    The NJ pharmaceutical industry is now filled with contract workers – they all got laid off, but companies still need to get the work done, so many are now rehiring the original workers as contract workers. Definitely seems like musical chairs.
    And hiring and laying off of contract workers is very disruptive to everyone. It takes a while for a contract worker to get up to speed, gain real knowledge etc in a job, and then BAM, out he/she goes after 6 months for ‘budget reasons” alone.

    I don’t know of a single contract worker who isn’t stressed out over the job situation and living in “survival mode”. (And don’t say to look elsewhere in other states because companies only like to hire local people.)

    I also see that discount stores are still doing a thriving business here in north NJ.

    So in answer to Grim’s question – the economy may be improving, but it sure looks to me to only be a minimal improvement.

  48. 1987 Condo says:

    Income inequality and Climate Change…real issues, but I doubt we really could figure out how to affect a change.

    BTW, time to pivot, start being concerned about bubbles, robust economy, inflation, worker shortages, oil shortages, stock market increases, Paul Volker…

  49. Ragnar says:

    Gross, a couple of guys are jacking each other in comments while saying my name. Whatever else the trolls are trying to say is pretty much an unintelligible word salad to me.

  50. Michael says:

    48- wow, I’m the idiot. Now you have top capitalists finally acknowledging the problems of not paying your workers enough and keeping the profits for yourself. I want an apology from some of you who called me an idiot, lefty, and jealous of the 1%. You are wrong and be a man and admit it.

    “Income inequality has been a hot button issue of late. While many big earners on Wall Street, and elsewhere in the financial industry, may not fully grasp the plight of workers, Pimco’s Bill Gross is not one of them and the wage discrepancy concerns him.

    “It’s a fundamental factor that will influence not only the U.S. economy, but global economies going forward… It will be destabilizing,” the PIMCO founder and CIO told Yahoo Finance’s Lauren Lyster.

    “Labor and capital have to share in the rewards of a productive economy and for the past 25 years labor has gotten the short end of the stick.” Gross suggests that Henry Ford had the right equation when he doubled workers’ wages 100 years ago. “Ford knew way back when, when he paid five bucks an hour to his workers in Detroit, that workers buy cars and that if they were earning a dollar an hour as opposed to five they wouldn’t be able to afford a Ford.”

    Gross says we are in need of policies that bring the balance between capital and labor back. “Minimum wage, higher taxes on the rich and all that in combination,” he suggests.

    “Ultimately wage earners have to earn a decent wage or else capitalism can’t continue in a productive way.””

  51. Michael says:

    The response an idiot gives when he can’t defend his backwards and outdated beliefs. That’s right, he goes on to call them trolls and fails to respond to the argument. Rags, I don’t know how the hell you are making the money you do. You lack common sense and are blinded by your extreme beliefs. So keep going with the troll line when you can’t defend your principles.

    Ragnar says:
    June 18, 2014 at 4:23 pm
    Gross, a couple of guys are jacking each other in comments while saying my name. Whatever else the trolls are trying to say is pretty much an unintelligible word salad to me.

  52. Michael says:

    Well said. Doom and gloom times are over. Now we race towards new bubbles in the next 10 years. Can’t wait till people like fast Eddie realize they missed their chance at cheap real estate. When wage inflation kicks in, current pricing will be a joke.

    1987 Condo says:
    June 18, 2014 at 3:50 pm
    Income inequality and Climate Change…real issues, but I doubt we really could figure out how to affect a change.

    BTW, time to pivot, start being concerned about bubbles, robust economy, inflation, worker shortages, oil shortages, stock market increases, Paul Volker…

  53. JJ says:

    1. View Park-Windsor Hills, CA- $159,168
    2. Baldwin Hills, CA- $157,033
    3. Ladera Heights, CA- $132,824
    4. Mitchellville, MD- $118,022
    5. Fort Washington, MD- $114,243
    6. Kettering, MD- $107,008
    7. Woodmore, MD- $103,438
    8. Friendly, MD- $82,827
    9. Hillcrest, NY- $76,960
    10. Uniondale, NY- $76,553

    10 Black Towns with highest Income, you go Uniondale, lots of Rich Homies!! And home of the NY Islanders

  54. JJ says:

    Income inequality is a myth

  55. Michael says:

    How? Picketty proved it with data, lots of it. Where did you get this from? Some extremist site like this one. Btw, this author believes that the pie is infinite. He is an idiot. Clearly pushing bs.

    http://www.nationalreview.com/articles/287643/income-inequality-myth-michael-tanner

    JJ says:
    June 18, 2014 at 4:55 pm
    Income inequality is a myth

  56. Comrade Nom Deplume, a.k.a. Captain Justice says:

    [37] Eddie

    “Why stop here? Go after the Atlanta Braves, KC Chiefs and Cleveland Indians as well”.

    That’s coming. Groups have already gone after Cleveland.

  57. Comrade Nom Deplume, a.k.a. Captain Justice says:

    Lt. Cmdr Mchale < Vigoda

  58. anon (the good one) says:

    A Irishman, Mick goes to the doctor complaining of stomach pain… (self.Jokes)
    submitted 7 hours ago by mickarooney

    Doctor: “Well I cant find anything wrong with you , it must be the drinking”
    Mick : “Ill come back when you’re sober Doctor”

  59. anon (the good one) says:

    [-] leComte_deFrouFrou 131 points 4 hours ago
    Oh boy Irish jokes! I got one.

    Jimmy, an Irishman, has a certain routine. Every Friday night he visits his local pub and orders 3 pints. He instructs the bartender to serve him all three at once, and he takes a sip from one, then another, and then the third all in turn. He continues this until he’s drunk all three pints.

    The bartender asked him one day what this ritual was all about, and Jimmy told him “this pint is for me, this pint here is for my brother Liam who moved to the USA, and this pint here is for my brother Michael who is working in Australia. They’re my best mates but I hardly see them anymore, so every Friday I have a pint for each of ’em to honor our kinship.”

    So years go by and Jimmy’s routine never changes, until one day he visits the bar and orders two pints. The bartender, having grown very fond of Jimmy, suddenly looks very sad and asks him

    “Jimmy I’m so sorry, did one of your brothers pass away??”

    “No mate they’re all fine, but my doctor told me I need to quit drinking”

  60. chi in People's Republic of Ithaca says:

    I went into the Rite Aid down the street & they sell beer!!! OMG this is truly G-d’s Country.

  61. Anybody got any good recipes for dog?

  62. chi (61)-

    Call me when that Rite-Aid will sell you a vial of hash oil.

  63. Street Justice says:

    I think Bill Gross is slowly losing his marbles. What the fcuk wold a rich elitist like him know about income inequality?

    ccb223 says:
    June 18, 2014 at 3:05 pm
    Wanted to drop this little nugget in here…from the horse’s mouth:

    http://finance.yahoo.com/blogs/daily-ticker/pimco-s-gross–income-inequality-a-risk-to-capitalism-as-we-know-it-161436850.html

  64. The biggest bond daddy of all time is anything but a capitalist.

  65. phoenix says:

    For Joyce….
    Baltimore police officer slit the throat of a dog —
    “I’m going to [expletive] gut this thing,” witnesses heard him say, according to the charging document.

    http://www.wbaltv.com/news/police-dogs-throad-cut-officer-charged-with-animal-cruelty/26553714

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