From the WSJ:
Why the Housing Rebound Hasn’t Lifted the U.S. Economy Much
American homeowners are finally digging out of the hole created by the housing crisis. But their housing wealth is playing a much smaller role in the overall economy than it did before the downturn.
Home equity has roughly doubled to $12.1 trillion since house prices hit bottom in 2011, according to the Federal Reserve. As a result, a key gauge of housing wealth—homeowners’ equity as a share of real-estate values—is nearing the point seen a decade ago, before the downturn.
Such a level once would have offered a double-barreled boost to the economy by providing owners with more money to tap and making them feel more flush and likely to spend. But today, that newfound wealth has had little effect on behavior. While the traditional ways Americans tap their home equity—home-equity loans, lines of credit and cash-out refinances—are higher than last year, they are still depressed.
…
Home equity’s effect on consumer spending is at its lowest ebb since the early 1990s, according to Moody’s Analytics. The research firm estimates that every $1 rise in home equity in the fourth quarter of 2014 would translate to about two cents of extra consumer spending over the next 1 to 1½ years. That was a third of the impact home equity had before the bust, Moody’s said.
…
The impact is more muted now despite the fact that home equity per homeowner has roughly doubled. At the end of the second quarter, the figure was about $156,700, up from $81,100 in the second quarter of 2011, according to Moody’s Analytics chief economist Mark Zandi. Though the homeownership rate has fallen, the total number of households has increased, meaning the number of households that own hasn’t changed much since the housing bubble burst in 2006, Mr. Zandi said.Why aren’t homeowners feeling flush again? For one thing, since rising home prices over the past few years largely have made up for ground lost during the recession, many owners might not even realize they have equity to tap.
The percentage of homeowners who were underwater, or owing more on their mortgage than the home’s value, dropped to 8.7% by mid-2015 from 21% at the end of 2011, according to CoreLogic. Yet the percentage of homeowners who thought they were underwater fell by merely one percentage point to 27%, according to housing-finance company Fannie Mae.
…
“Consumers are definitely more conservative financially than they were 10 years ago. They’ve seen that house prices can be volatile,” Mr. Duncan said.
…
“We’re at an inflection point,” Mr. Zandi said. “Since the crash, it’s all been about repairing homeowners’ equity but now that house prices are returning to prerecession levels, we will see homeowners’ equity driving consumer spending, home improvements and economic activity.”
Frist
Funny seeing Zandi’s name after a long hiatus. Was just thinking about him recently as I was spending a lot of time in the borough. Was so random to see him working out at my gym before I changed gyms.
Let’s put Punkin and anon together to take a shot at that ‘escape room’ in Montclair.
Natch, I’ll make some ‘revisions’ to the maze to make it a bit more challenging for them…
Montklair doesn’t have any anti-pit bull ordinances, does it?
3-
Anon can’t even “escape” from mom’s basement.
Ben,
Done for the day. In Manhattan in about 30 min. If u still want to meet up, say where
Bring a rubber.
[3] Splat
That would be funny to watch.
[7] libturd
The comeback here that involves Gator is a gimme putt so I’ll just pick up my ball and score a birdie for this hole.
[3] splat
I’ll bring the ammo and popcorn
Nom (9):
Admit that you giggled like one of your girls when you first read it.
[11] lib
I chuckled but it didn’t rate a giggle. Sorry
If I were to open an escape room, it would be based on the Hostel movies.
2 – You need to find a better gym – DMC is a regular at the Golds in Wayne.
[14] grim
Wayne is a bit of a hike
Buying some votes?
HR 4102
Bill Action: Introduced, November 19, 2015
To provide for the establishment of a mechanism to allow borrowers of Federal student loans to refinance their loans, to amend the Internal Revenue Code of 1986 to extend the exclusion for employer-provided educational assistance to employer payment of interest on certain refinanced student loans, and for other purposes.
Done for the day. In Manhattan in about 30 min. If u still want to meet up, say where
aha…sorry it was a joke about hipster shops in Brooklyn. I’m teacher in NJ remember?
These jerkoffs. They get to use the U.S. infrastructure and customer base, but avoid the taxes? Do they honestly think this can last long term? Is there any type logical thinking going on here? Keep chasing short term profits at the expense of long term profits. Guys are total geniuses(sarcasm).
The U.S. does offer a competitive regime. What money is Ireland putting up to help these businesses besides offering lowering taxes? Is Ireland paying for the roads in America that their businesses use to ship the medication and perform business? Are they paying the social costs of the customers in America? Are they paying the militaristic cost of upholding these markets? They don’t pay for crap, hence why they can lower the rates to almost nothing. This whole system is going to crash because of this bs.
You have to pay taxes, you have to pay workers a decent wage, and you can’t overcharge on a product in order for the economy to function properly. Take away funds from any of these areas and you kill the economy. Sickening to watch this happen.
“The U.S. doesn’t offer a competitive regime. We do,” said Fergal O’Brien, head of policy at IBEC. “It’s perfectly sensible to move to a better corporate tax environment.”
http://www.bloomberg.com/news/articles/2015-11-23/pfizer-s-v!agra-tax-dollars-head-to-dublin-as-u-s-loses-again
[17] Ben
I knew that but answered reflexively. You could have been off or something. Brooklyn hipster reference went right by.
Article to be scrubbed from the Internet in 3..2..1
https://www.washingtonpost.com/archive/politics/2001/09/18/northern-new-jersey-draws-probers-eyes/40f82ea4-e015-4d6e-a87e-93aa433fafdc/?postshare=7281448290025183&tid=ss_fb
In Jersey City, within hours of two jetliners’ plowing into the World Trade Center, law enforcement authorities detained and questioned a number of people who were allegedly seen celebrating the attacks and holding tailgate-style parties on rooftops while they watched the devastation on the other side of the river
[18] punkin,
You do realize that business done here is taxed here, regardless of domicile, right?
Yes, but then what are they paying Ireland taxes for? Don’t act like this money isn’t needed to help support the American market. It’s a FACT that AMERICA is being cheated out of tax money through this process. What the hell does IRELAND OFFER BUSINESSES BESIDES CHEAP CORPORATE TAXES? DO THEY GET STUCK WITH THE BILL FOR MAINTAINING A MARKET THE SIZE OF THE U.S.? NJ HAS A BIGGER MARKET THAN IRELAND.
Why do you make excuses for economic behavior that will hurt the economy long term, esp the American economy? You think the American market can continue to support buying products at current cost with all our buying power being shipped to other countries in the name of higher profits and tax evasion? Can’t wait to see your face in 20-30 years when we can’t pay doctors or lawyers like yourself, what they rightfully deserve, because the American consumer has been raped and pillaged. Zero sum game, shifting business to foreign lands has severe consequences, just ask China or any other country that protects their native business.
Comrade Nom Deplume, hoping NJ Transit doesn’t crater says:
November 23, 2015 at 2:38 pm
[18] punkin,
You do realize that business done here is taxed here, regardless of domicile, right?
Transfer pricing
A yoga instructor who teaches at the University of Ottawa says she is fighting to keep her program alive after the school’s student body suspended it over concerns that “cultural issues” relating to the class could offend students.
Jennifer Scharf, who has been offering free weekly sessions at the university’s Center for Students with Disabilities since 2008, told the Ottawa Sun that she was informed in September that the program would not come back for the fall semester.
In an email exchange between Scharf and a representative of the university’s Student Federation — which was viewed by the newspaper — a student wrote that “while yoga is a really great idea and accessible and great for students… there are cultural issues of implication involved in the practice.
“Yoga has been under a lot of controversy lately due to how it is being practiced,” the email continues, and which cultures those practices “are being taken from.”
The Student Federation, which operates the center, went on to say that many of those cultures “have experienced oppression, cultural genocide and diasporas due to colonialism and Western supremacy… we need to be mindful of this and how we express ourselves while practicing yoga.”
Student Federation Acting President Romeo Ahimakin told the Ottawa Sun that the class has been put on hold until a way can be figured out “to make it better, more accessible and more inclusive to certain groups of people that feel left out in yoga-like spaces.
“We are trying to have those sessions done in a way in which students are aware of where the spiritual and cultural aspects come from, so that these sessions are done in a respectful manner,” he added.
But Scharf, who instructed about 60 students each week in the program, said, “people are just looking for a reason to be offended by anything they can find.”
Scharf says she offered the student body leaders a compromise by suggesting she change the name of the course to “mindful stretching,” but after some debate, they couldn’t reach an agreement.
“I guess it was this cultural appropriation issue because yoga originally comes from India,” she told CBC News. “We’re not going through the finer points of Scripture. We’re talking about basic physical awareness and how to stretch so that you feel good.”
Scharf added that she is “fighting so hard” to keep the class.
We need Trump
Tariff everything from Ireland up the wazoo.
chi- Would I be committing micro-aggression by heartily concurring with Scharf’s statement? I can’t wait for the great purge of college administrative fools, so they can be thrust into the poverty they deserve and finally have something real to complain about.
But Scharf, who instructed about 60 students each week in the program, said, “people are just looking for a reason to be offended by anything they can find.”
It’s common sense policy if you care about your country’s economy. That’s the issue here, what kind of “Americans” are pushing this policy through?
Say what you want about the Chinese govt, but at least they protect their business and market. We have people giving away access to the greatest market in the world for “free”. Can’t make this stuff up. Bonkers. Trump is right, we hold the cards, what kind of deals are negotiating? Makes no sense.
You have to question their agenda, who in their right mind would push these policies through when it comes to trade? No one that cares about the American market and economy, that’s for sure.
phoenix says:
November 23, 2015 at 6:22 pm
Tariff everything from Ireland up the wazoo.
[23] grim
“Transfer pricing”
Which is regulated. Don’t think for a second that the USG doesn’t scrutinize this. They do and will take issue if they think it’s a dodge. That’s why so many companies get APAs from the IRS (or used to–may be discontinued. Not my area of expertise. There are practices at some firms that only do this)
[22] pumpkin
The market corrects this by forcing a country to reform its taxes or erect barriers.
And I appreciate that you are concerned that I won’t be paid what I’m worth. I’m concerned too, which is why I’ll take my cut now, thank you.
Want capital and jobs to stay here? There’s the carrot and the stick. Threats of the stick simply beget expatriation. Sander Levin wants to do something about expatriation but all he will rally do is increase it. There’s a reason it looks like a rush to the exit; why do you think that is?
One policy the Government can make is, only pay for Medicare,Medicaid drugs that are US Companies. We are the only Country that do not negotiate drug prices. This Companies makes Billions from us.
And I’ve said it her repeatedly; the only thing that will stanch the flow is protectionism. But there will be changes, massive ones, and I’m guessing many folks won’t like what they voted for.
[31] yome
The gov can be a market participant. But what do you do when a company says “that’s my price, take it or leave it”? What if it’s a drug like sovaldi, expensive but cheaper than the alternative? Do you abrogate their patent? Spark a good old fashioned trade war?
Like I said, be careful what you wish for.
Hoboken is a real mess.
http://www.nj.com/hudson/index.ssf/2015/11/no_water_for_the_turkeys_hoboken_burst_pipe_may_no.html#incart_2box_nj-homepage-featured
33
it is like saying Walmart dont have the power to negotiate prices. Canada does it. They need our market ,we have the power
Hilarious Hoboken…
“My favorite part of this was how the initial repairs were delayed for nearly 5 hours because one of our great municipal employees decided to drive their new army truck into the hole created by the water main break. Dozens of employees standing around wondering how such and idiot could make so much money. Eventually, United Water was able to remove the truck with their own crane”
http://hoboken411.com/archives/116970#comment-225002
Comrade,
Go a step further. You always warn against protectionism; what will happen? High level bullet points will suffice
You call their bluff. Does anyone in this country buy that drug without insurance? And the government makes up what percentage of medical spending again?
I assume (could be way off) that the drug is sold internationally for much less cause that’s the usual routine. So the gov can buy it using a proxy and bring it home.
The aforementioned half measures are just that. The gov needs to get out of this market entirely that it has and continues to f up.
Comrade Nom Deplume, hoping NJ Transit doesn’t crater says:
November 23, 2015 at 7:13 pm
[31] yome
The gov can be a market participant. But what do you do when a company says “that’s my price, take it or leave it”? What if it’s a drug like sovaldi, expensive but cheaper than the alternative?
“Only last week, the Treasury Department issued some new administrative guidelines in this area. Without actual legislation, though, there isn’t very much the Obama Administration can do to prevent these exercises in corporate tax-dodging, and Republicans on Capitol Hill have displayed little eagerness to coöperate in a crackdown.
The Pfizer–Allergan deal will be the biggest inversion yet, and it is nothing short of a disgrace. Drug companies like Pfizer have long benefitted from taxpayer-funded research carried out under the auspices of organizations like the National Institutes of Health and the National Science Foundation. Now, Pfizer is seeking to avoid paying the taxes that are due on its profits, particularly profits generated by its overseas subsidiaries. Even though the Obama Administration doesn’t have the legal powers to block the Allergan transaction, it should seek to shame Pfizer and its board of directors into calling it off.”
39- http://www.newyorker.com/news/john-cassidy/the-pfizer-allergan-merger-is-a-disgrace
[37] Joyce
Imagine if certain products suddenly aren’t imported. Not just BMWs but food, toys, clothes. Scarcity affects prices
Over time, domestic production will ramp up. But your choices are limited, quality is iffy, and the aforementioned price imbalance isn’t fully corrected.
Increased domestic production will be fought by, of all people, the left. Enviros will fight new development tooth and nail.
And we don’t replicate the 50s. We will no longer sell to the world; the world can get it elsewhere and foreign capital will help those who aren’t producing for themselves.
Speaking of foreign capital, or FDI, that will take a huge hit. Lots of horrible a attend from that.
Now, this won’t be absolute, but even marginal changes will be felt. And the greater the marginal change, the greater the effects. And this is just the view from 25,000 feet. Up close, I predict strife and dislocation similar to the rust belt happening but in a much compressed timeframe.
And , pumpkin, avoiding taxes isn’t illegal.
But impose new rules. See what happens. For every reaction, there is an equal and opposite reaction.
Comrade,
I agree. Things will change. As I said to LW previously, just because bad laws and regulations are in place now… they shouldn’t be considered hands off for the sake of “stability.” If we reformed the healthcare industry (true reform of course), that would include a massive dislocation as it reduces its size from 1/5 of the economy to something much less. Ditto for the FIRE industries if we ever had monetary reform. And others as well.