Bizarro Housing Bubble Spills Over Into “Overbid Madness”, $10 Million “Flips” In 24 Hours

Bizarro Housing Bubble Spills Over Into “Overbid Madness”, $10 Million “Flips” In 24 Hours (ZeroHedge, May 10, 2014):

While the housing bubble for anything but the ultra luxury segment has long since popped with $1.1 trillion of student loans playing a significant role in the burst, (as explained in “Stick A Fork In The “Housing Recovery“), as can be seen in the chart below which shows that the only increase in existing home sales from a year ago is that for the $500 and over price range (which accounts for only 10% of all actual transactions)….

Houses by price range_0

… when it comes to the luxury segment, things have moved beyond the simply bizarre and have entered outright surreal territory.

Read moreBizarro Housing Bubble Spills Over Into “Overbid Madness”, $10 Million “Flips” In 24 Hours

Money Laundering Exposed As A Key Component Of The Housing Bubble’s “All Cash” Bid

Money Laundering Exposed As A Key Component Of The Housing Bubble’s “All Cash” Bid (ZeroHedge Sep 10, 2013):

In August 2012, when isolating one of the various reasons for the latest housing bubble, we suggested that a primary catalyst for the price surge in the ultra-luxury housing segment and the seemingly endless supply of “all cash” buyers (standing at an unprecedented 60% of all buyers lately as reported by Goldman) is a very simple one: crime. Or rather, the use of US real estate as a means to launder illegal offshore-procured money. We also identified the one key permissive feature which allowed this: the National Association of Realtors’ exemption from Anti-Money Laundering provisions. In other words, all a foreign oligarch – who may or may not have used chemical weapons in their past: all depends on how recently they took their picture with the Secretary of State – had to do to buy a $47 million Florida house, was to get the actual cash to the US. Well good thing there are private jets whose cargo is never checked.

This is how we framed the problem last August:

Read moreMoney Laundering Exposed As A Key Component Of The Housing Bubble’s “All Cash” Bid

Flashback: The Wile E Coyote Government

Why does the American government consistently fail to foresee the future results of its own actions?

Because it is incompetent.


My take on that is, that it is impossible to be that much incompetent! This is an ‘intentionally incompetent’ elite puppet government that is looting the taxpayer until there is nothing left.

The government is ‘channeling’ taxpayer money through their friends on Wall Street into the hands of the elite behind the scenes (that control the US government, the Federal Reserve, Wall Street and the media), thereby bankrupting America and destroying the US dollar.

This is a controlled demolition.


It is managing the financial crisis Wile E Coyote style.


Added: 25. September 2008

Australia: Economist Steve Keen Warns of Bubble in Nation’s Housing

steve_keen_01
Economist Steve Keen

HONG KONG (MarketWatch) — Australia’s seemingly bulletproof economy could soon face fallout from high debt levels and purportedly misguided policies designed to pump up asset prices, according to an outspoken skeptic of the nation’s housing boom.

Economist Steve Keen of the University of Western Sydney, who claims to have accurately foreseen the global financial crisis, said he’s been dismayed by what he sees as a growing nationwide housing bubble stoked by government efforts to forestall economic pain.

Keen points to a first-time homebuyer subsidy program, various other stimulus programs, and a 4-percentage-point reduction in interest rates — policies introduced in the wake of the 2008 crash and which he termed “The Boost” — as having helped fueled a new housing boom and a 6% rise in mortgage debt last year.

“The Boost has … given Australia a dubious distinction when compared to the rest of the OECD. Yes, we are the only country that avoided a technical recession; but we are also the only country where debt levels are rising once more compared to GDP, rather than falling,” Keen wrote in comments posted on his Web site, keenwalk.com.au.

Read moreAustralia: Economist Steve Keen Warns of Bubble in Nation’s Housing

US Housing Starts ‘Unexpectedly’ Fall in December

“Unexpectedly!”



WASHINGTON, Jan 20 (Reuters) – New U.S. housing starts unexpectedly fell in December, pulled down by a drop in construction activity for single-family dwellings, a government report showed on Wednesday.

The Commerce Department said housing starts fell 4 percent to a seasonally adjusted annual rate of 557,000 units. Analysts polled by Reuters had expected housing starts to rise to 580,000 units. November’s housing starts were revised upwards to 580,000 units from the previously reported 574,000 units. The drop in housing starts was likely the result of unusually cold weather last month.

Groundbreaking activity dropped a record 38.8 percent to an all-time low of 553,000 units for the whole of 2009.

Read moreUS Housing Starts ‘Unexpectedly’ Fall in December

On the Edge with Max Keiser: The coming collapse of the US will be much worse than that of the USSR (07/31/09)

Max Keiser compares the collapse of the US and the USSR … and more.

1 of 3:

2 of 3:

Read moreOn the Edge with Max Keiser: The coming collapse of the US will be much worse than that of the USSR (07/31/09)

Bond markets defy Fed as Treasury yields spike

The US Federal Reserve may soon be forced to launch fresh blitz of quantitative easing whatever the consequences for the US dollar, or risk seeing economic recovery snuffed out by the latest surge in long-term borrowing costs.

federal-reserve
Market expects Fed will have to double purchases of Treasuries. Photo: Getty Images

Yields on 10-year Treasury bonds have risen relentlessly since March when the Fed first announced its plan to buy $300bn (£188bn) of US government debt directly, a move that briefly forced rates down to nearly 2.5pc, a level thought to be the Fed’s implicit target.

Yields have jumped to 3.69pc – after spiking as high as 3.74pc on Wednesday – pushing up the standard 30-year mortgage loan to 5.08pc and lifting the borrowing cost for corporations.

“The Fed is going to have to consider doubling its purchases of Treasuries,” said Ashraf Laidi, from CMC Capital Markets. “We could be nearing the end-game for the US dollar but the Fed has little choice at this point. We’re in a vicious circle where any policy aimed at supporting the US economy must be at the expense of the dollar.”

Related article:
Marc Faber: U.S. will go into Hyperinflation, Approaching Zimbabwe Levels (Bloomberg)

The US Mortgage Bankers Association yesterday highlighted the fragility of the US housing market, reporting that 12pc of homeowners are either behind on their payments or facing foreclosure, the highest level since records began.

Read moreBond markets defy Fed as Treasury yields spike

About 12 pct of US homeowners late paying or foreclosed

2008-world-press-photo-foreclosure
2008 World Press Photo Foreclosure

NEW YORK, May 28 (Reuters) – One of eight U.S. households with a mortgage ended the first quarter late on loan payments or in the foreclosure process in a crisis that will persist for at least another year until unemployment peaks, the Mortgage Bankers Association said on Thursday.

U.S. unemployment in April reached its highest rate in more than a quarter century and is still rising, helping propel mortgage delinquencies and foreclosures to record highs.

Such economic weakness drove up foreclosures of prime fixed-rate loans, which are made to the most creditworthy borrowers. The foreclosure rate on those loans doubled in the last year and represented the largest share of new foreclosures in the first three months of this year.

“We clearly haven’t hit the top yet in terms of delinquencies or the bottom of the housing market,” Jay Brinkmann, the association’s chief economist, said in an interview.

Read moreAbout 12 pct of US homeowners late paying or foreclosed

The Fed Did Indeed Cause the Housing Bubble

More from Catherine Austin Fitts:
Former Assistant Secretary of Housing: The U.S. is the Global Leader in Illegal Money Laundering
Rethinking Diversification

This is a MUST-READ.


To: The Wall Street Journal

Re: “The Fed Didn’t Cause the Housing Bubble”

By: Alan Greenspan, former Chairman of the Federal Reserve

Dated: Wednesday, March 11, 2009

Ladies and Gentlemen:

In his article on your opinion page, “The Fed Didn’t Cause the Housing Bubble,” Alan Greenspan attributes the housing bubble to lower interest rates between 2002 and 2005. That’s amazing to me.

My company served as lead financial advisor to the Federal Housing Administration between 1994 and 1997. I watched both the Administration and the Federal Reserve aggressively implement the policies that engineered the housing bubble. These are described at my website and in my on-line book,Dillon Read & the Aristocracy of Stock Profits (http://www.dunwalke.com).

One story, for example, is the following:
“In 1995, a senior Clinton Administration official shared with me the Administration’s targets for Fannie Mae and Freddie Mac mortgage volumes in low- and moderate-income communities. We had recently reviewed the Administration’s plans to increase government mortgage guarantees – most of these mortgages would also be pooled and sold as securities to investors. Even in 1995, I could see that these plans would create unserviceable debt loads in communities struggling with the falling incomes expected from globalization. Homeowners would default on mortgages while losses on mortgage-backed securities would drain retirement savings from 401(k)s and pension plans. Taxpayers would ultimately be hit with a large bill . . . but insiders would make a bundle. I looked at the official and said that the Administration was planning on issuing more mortgages than there were houses or residents. “Shut up, this is none of your business,” the official snapped back.”

Read moreThe Fed Did Indeed Cause the Housing Bubble

Apartment Buyers Abandoning 6-Figure Deposits

“The penthouse, which first went on the market in October 2007 at $9.25 million, has since been appraised at $6.5 million, and its owner has decided to offer the property in a sealed-bid auction-like process in March, with a starting bid of $4.995 million.” “Mr. Orenstein says the owner decided on this process because he plans to move soon to Italy with his wife and baby.”

There are many millionaires and billionaires fleeing from the U.S. right now. No big city on this planet will be a safe place in the future.


THE real estate market in Manhattan has become so unnerving to buyers that some are forfeiting six-figure deposits rather than close on deals they have made.


FORFEITED A buyer for this Spring Street penthouse, with stunning river views, walked away from the deal, and a $780,000 deposit.

At 304 Spring Street, a sleek condominium building in SoHo with stunning Hudson River views, the buyer for the duplex penthouse recently decided he would not go through with the deal and walked away from a $780,000 deposit.

At 1120 Park Avenue, a classic prewar co-op filled with multimillion-dollar apartments, it appears that a buyer forfeited a deposit of as much as $1.1 million.

Real estate agents representing buyers of at least three other multimillion-dollar properties also report clients who knowingly left deposits of more than $1 million or hundreds of thousands of dollars on the table.

In each case, the buyers had signed their contracts before the financial meltdown last fall, but decided in recent months that because values in the luxury real estate market have dropped 20 to 40 percent, it no longer made sense to go through with their deals.

Read moreApartment Buyers Abandoning 6-Figure Deposits

Santander fund seeks to halt redemptions

Spanish bank Santander has sought regulatory permission to freeze payouts from its main real-estate fund after investors sought to withdraw 80 per cent of the vehicle’s capital at once.

The bank, the biggest in the eurozone by market value, said in a regulatory filing on Monday that the Santander Banif Inmobiliario FII fund, the country’s biggest, “currently lacks the necessary liquidity” to meet redemption demands worth €2.62bn ($3.35bn), or 80 per cent of the fund’s value at the end of January.

Santander is seeking authorisation to suspend full reimbursements from the fund for two years, while it “starts an orderly programme of disposals”.

The fund, which was 67 per cent invested in residential rental properties at the end of December, lost about 15 per cent of its value between the end of the third and fourth quarters last year as asset values were adjusted to reflect difficult market conditions.

This, coupled with investors’ need for cash, triggered a run on the fund during a two-week redemption window that closed on Friday.

Spain’s residential property bubble burst almost two years ago, leaving at least 1m new houses unsold.

Read moreSantander fund seeks to halt redemptions

U.S. Foreclosures Top Quarter-Million for 10th Straight Month


A foreclosure sign sits in front of a home in Moreno Valley, California, Dec. 31, 2008. Photographer: Francis Specker/Bloomberg News

Feb. 12 (Bloomberg) — U.S. foreclosure filings exceeded 250,000 for the 10th straight month in January as falling prices trapped owners in homes worth less than the mortgage, RealtyTrac Inc. said.

A total of 274,399 properties got a default or auction notice or were seized by banks, the Irvine, California-based seller of default data said in a statement today. It was the 37th straight year-on-year increase in filings.

“This is tough to fix, because so many people are underwater,” Bruce Norris, president of the Norris Group, a Riverside, California-based investment firm specializing in foreclosed properties, said in an interview. “Until debt goes down or prices go up, this is going to be a mess.”

The housing market lost an estimated $3.3 trillion in value last year and almost one in six owners owed more than their homes were worth, online data provider Zillow.com said last week. The U.S. economy shrank 3.8 percent in the fourth quarter, the most since 1982, and payrolls plunged by 598,000 in January, pushing the jobless rate to the highest level since 1992.

Home prices have fallen every month since January 2007 and tumbled 18.2 percent in November, according to the S&P/Case- Shiller index of 20 U.S. cities. President Barack Obama may support federal guarantees for modified home loans as the administration and Congress consider ways to help borrowers facing default or negative equity.

Read moreU.S. Foreclosures Top Quarter-Million for 10th Straight Month

Former Assistant Secretary of Housing: The U.S. is the Global Leader in Illegal Money Laundering

If you want to understand the current crisis, listen to Catherine Austin Fitts.

Catherine Austin Fitts at the IRTA 08 Barter Convention

Added: 09.10.2008
Source: Google Video

Related information:

Marc Faber: The U.S. is pursuing the Zimbabwe School of Economics

Bush administration overpaid banks tens of billions of dollars in bailout, watchdog says

Ron Paul on Glenn Beck: Destruction of the dollar

Peter Schiff: Stimulus Bill Will Lead to “Unmitigated Disaster”

– Former Assistant Secretary of the Treasury Paul Craig Roberts On The U.S. Leadership: “They Are Criminals” – The Potential Here Is Far Worse Than The Great Depression

Congresswoman Kaptur Points Out The Revolving Door Between Wall Street & The White House

Paul Craig Roberts: Another real estate crisis is about to hit

Gerald Celente: The Collapse of 2009; The Greatest Depression

U.S. Property Owners Lost $3.3 Trillion in Home Value Last Year

About $6.1 trillion of value has been lost since the housing market peaked in the second quarter of 2006


A for sale sign stands outside of a home in Mount Ephraim, New Jersey on Sept. 24, 2008. Photographer: Mike Mergen/Bloomberg News

Feb. 3 (Bloomberg) — The U.S. housing market lost $3.3 trillion in value last year and almost one in six owners with mortgages owed more than their homes were worth as the economy went into recession, Zillow.com said.

The median estimated home price declined 11.6 percent in 2008 to $192,119 and homeowners lost $1.4 trillion in value in the fourth quarter alone, the Seattle-based real estate data service said in a report today.

“It’s like a runaway train gaining momentum,” Stan Humphries, Zillow’s vice president of data and analytics, said in an interview. “It’s difficult to say when we’ll see a bottom to the housing market.”

The U.S. economy shrank the most in the fourth quarter since 1982, contracting at a 3.8 percent annual pace, the Commerce Department said on Jan. 30. Record foreclosures have pushed down prices as unemployment rose. More than 2.3 million properties got a default or auction notice or were seized by lenders last year, according to RealtyTrac Inc., a seller of data on defaults.

About $6.1 trillion of value has been lost since the housing market peaked in the second quarter of 2006 and last year’s decline was almost triple the $1.3 trillion lost in 2007, Zillow said.

Read moreU.S. Property Owners Lost $3.3 Trillion in Home Value Last Year

Flood of foreclosures: It’s worse than you think

Banks are moving slowly to list repossessed homes for sale, which could mean that housing inventory is even more bloated than current statistics indicate.

NEW YORK (CNNMoney.com) — Housing might be in worse shape than we think.

There is probably even more excess housing inventory gumming up the market than current statistics indicate, thanks to a wave of foreclosures that has yet to hit the market.

The problem: Many foreclosed homes and other distressed properties that are now owned by banks have yet to be listed for sale. The volume of this so-called ‘ghost inventory’ could be substantial enough to depress already steeply falling prices when it does go on the market.

“That’s not good news,” said Pat Newport, an analyst with IHS Global Insight. “[Excess] inventory is the biggest problem in housing these days, and it leads to lower housing prices, which leads to more foreclosures.”

Read moreFlood of foreclosures: It’s worse than you think

US house price freefall continues

Home prices in big US cities fell at a record 18.2 per cent in the year to November as the stricken housing market showed no signs of bottoming out.

The drop followed an 18 per cent year-on-year decline in the prior month, itself a record, as prices fell more steeply in a wider array of cities including Boston and New York, according to the closely watched Case-Shiller index released on Tuesday.

At the same time, US consumer confidence fell to a new low in January, falling to 37.7 from 38.6 the prior month.

Read moreUS house price freefall continues

Housing meltdown: one home repossessed every seven minutes

One family will have their home repossessed every seven minutes as the number of defaulted mortgage payments jumps dramatically this year, city regulators have warned.

The number of people losing their homes nearly doubled in the three months to the end of September last year, according to new figures released by the Financial Services Authority (FSA).

A total of 13,161 properties were repossessed around the UK during the third quarter of 2008, representing a 92% increase since the previous year.

However, a large proportion of these remained unsold, with the number of homes offloaded by lenders increasing by less than 10%.

The Council of Mortgage Lenders (CML) said that the situation was only likely to worsen during 2009, with up to 75,000 repossessions expected over the course of the year as hundreds of thousands of homeowners slip behind in their mortgage repayments.

Regulators recorded a 24% rise in the number of people failing to make mortgage payments in July to September, bringing the total to 340,000. The increase was 10% compared to the previous quarter, the watchdog said.

Read moreHousing meltdown: one home repossessed every seven minutes

Global Economic Crisis Accelerating

Obama administration considers launch of ‘bad bank’ (Telegraph)

US Initial Jobless Claims Match Highest Since ’82 (Bloomberg)

Barack Obama inauguration: this Emperor has no clothes, it will all end in tears (Telegraph)

Despite billions, banks still teeter on the brink (MSNBC)

Microsoft to shed 5,000 jobs (Financial Times)

Intel to Cut at Least 5000 Jobs (New York Times)

GM Gets $5.4 Billion Loan Installment From Federal Government (CNNMoney)

US jobless claims surge, housing start tumble (Forbes)

Housing Starts, Permits in US Slump to Record Low (Bloomberg)

Banks Foreclose on Builders With Perfect Records (New York Times)

Jim Rogers: Now it’s time to emigrate, says investment guru (Independent)

Saudi prince’s firm loses $8.3B in 4Q (AP)

Investors flee after brutal losses at global markets (Emirates Business)

Indians Flee Dubai as Dreams Crash – Fall out of Economic Crisis (Daijiworld):
It’s the great escape by Indians who’ve hit the dead-end in Dubai.

China growth slows, Bank of Japan sees deflation (Forbes):
(Reuters) – China’s economy slowed sharply in the fourth quarter and Japan’s central bank on Thursday predicted two years of deflation as Asia’s largest economies buckle under the strain of the financial crisis.

Roubini Sees China Recession Despite ‘Massaged’ GDP (Bloomberg)

Asian economic woe grows as China slows and Japanese exports plunge (Telegraph):
China’s economy may have ground to a halt entirely between the third and fourth quarters of last year and Japanese exports plunged 35pc in December, underlining the scale of the slowdown in Asia.

ZIMBABWE: Inflation at 6.5 quindecillion novemdecillion percent (IRIN)

Sony forecasts $2.9bn operating loss (Financial Times)

Hedge funds’ $400bn withdrawals hit (Financial Times)

Google income drops 68% on one-time charges (IHT)

Is Britain facing bankruptcy? (Guardian)

Manufacturing outlook plummets (Financial Times)

Car production plummets as pressure for industry bail-out grows (Telegraph)

London’s Evening Standard sold to ex-KGB agent (Reuters)

AIG starts $20bn auction of Asian unit (Financial Times):
AIG, the stricken insurance giant, on Wednesday kicked off the sale of its Asian life assurance unit – one of its most prized assets – in the hope of raising up to $20bn to help repay the $60bn US government loan that is keeping the group alive.

UBS to Cut Securities Jobs, Close More Debt Units (Bloomberg)

Japanese Housewives Desperate After Currency Scheme Collapses (Bloomberg)

New age of rebellion and riot stalks Europe (Times Online)

Increase in burglaries shows effect of recession (Guardian)

Chinese media issues stinging attack on Barack Obama and George W Bush (Telegraph)

Barclays may lose control to Gulf investors (Telegraph)

Cars to be crushed in insurance crackdown (Scotsman)

Investors say jailed pilot swiped money for years (Washington Post)

Capital One Reports $1.42 Billion Loss on Charges (Bloomberg)

Nokia reports sharp fall in profits (Financial Times)

Foreclosures in U.S. Rose 81%, Topping 2.3 Million Last Year


A foreclosure sign sits in front of a home in Moreno Valley, California, Dec. 31, 2008. Photographer: Francis Specker/Bloomberg News

Jan. 15 (Bloomberg) — U.S. foreclosure filings jumped 81 percent last year (and 225% from 2006) as falling house prices, tighter mortgage lending and the longest recession in a quarter century battered property owners, RealtyTrac Inc. said.

More than 2.3 million properties got a default or auction notice, or were seized by lenders, the Irvine, California-based seller of default data said today. That’s the most RealtyTrac has documented in four years of recordkeeping. Filings rose 41 percent in December from a year earlier to 303,410.

More: 2008 foreclosure filings set record (USA Today)

The nation lost more than 2.6 million jobs last year, the most since 1945, and U.S. stocks had their worst performance since the Great Depression. President-elect Barack Obama has said the country needs to prevent foreclosures to revive the housing market and economy.

“If we don’t adopt a comprehensive national policy, we’ll have 5 million to 8 million new foreclosures in the next three years,” Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley, said in an interview. “The single most important thing is making credit available for the average person.”

Read moreForeclosures in U.S. Rose 81%, Topping 2.3 Million Last Year

Global Economic Crisis

Economy could lose 2M jobs in ’09 – report (CNN Money)

China’s Exports Decline by Most in Decade on Global Recession (Bloomberg)

Royal Bank of Scotland May Face LyondellBasell Losses (Bloomberg):
Jan. 12 (Bloomberg) — Royal Bank of Scotland Plc is the biggest lender to bankrupt chemical maker Lyondell Chemical Co. and may face losses on its $3.47 billion of loans to the U.S. chemicals company.

Royal Bank of Scotland Selling Bank of China Stake (Bloomberg)

Saab, Volvo Must Be ‘Carved Out’ To Win Aid-Swedish Official (CNN Money)

Commercial property rents collapse in London hedge fund areas (Independent):
Rents for plush offices in Mayfair and St James’s plunged almost 30 per cent last year, hammered by the declining fortunes of many of their hedge funds tenants.

Stephen King: You can’t buy confidence when the economy is in a state of collapse (Independent): Stephen King is managing director of economics at HSBC

German bond sale’s fate signals trouble ahead (Financial Times):
A German sovereign bond auction failed (!!!) on Wednesday as investors shunned one of the most liquid and safe assets in the world in a warning for governments seeking to raise record amounts of debt to stimulate slowing economies.

Bernard Madoff Will Remain Free on Bail, Judge Rules (Bloomberg)

U.K. Slumps Most Since 1989 as Home Sales Drop, Surveys Show (Bloomberg)

Zimbabwe introduces $50 billion note (CNN):
HARARE, Zimbabwe (CNN) — Zimbabwe’s central bank will introduce a $50 billion note — enough to buy just two loaves of bread — as a way of fighting cash shortages amid spiraling inflation.

Taxpayer will own nearly half of super-bank (Independent):
Taxpayers are set to own almost half of the “super-bank” created from Lloyds TSB’s rescue takeover of HBOS, the two banks confirmed today

Job losses accelerating to levels not seen since World War II (Memphis Commercial Appeal):
“There is no indication that the job situation would stabilize anytime soon,” said Sung Won Sohn, economist at the Martin Smith School of Business at California State University.
“This could turn out to be one of the worst economic setbacks since the Great Depression,” he said.

Leading economist fears decade of weakness in US


The collapse of the American property market helped to start the downturn

One of the world’s leading economists has given warning that the United States is facing a decade of financial misery, with the number of unemployed Americans set to continue to rise for years.

Robert Shiller, Professor of Economics at Yale University, who predicted the end of the internet bubble seven years ago, said: “We could have many years of a very weak economy. Big recessions are followed by years of weakness and typically unemployment keeps rising.

“To say that this will last years is not a dramatic statement. What is happening now is much worse than 1990. We could be facing a decade of real weakness.

“This is no ordinary recession. There are signs that people see this as a different story. People are talking about a depression, something that we haven’t seen previously.”

Professor Shiller’s comments come as the unemployment rate in America is rising astonishingly fast.

Last week official figures showed that the US lost 524,000 jobs in December, with the overall unemployment rate rising to 7.2 per cent – the highest level for 16 years.

With about 11.1 million people out of a job, the total number of unemployed is about 50 per cent higher than a year ago.

Read moreLeading economist fears decade of weakness in US