New Home Sales Decline 7.8% In January (Back To 1995 Sales Level) – Did Mortgage Rate Increases Lower NHS?

By Anthony B. Sanders

Despite America’s growing population, new home sales are only back to levels seen in 1995 when the Clinton push for homeownership began. It was called “The National Homeownership Strategy: Partners in the American Dream.”

They should have called it “Partners in the American Scream” since the house price bubble burst in spectacular fashion.

newhomesales

After the house price bubble burst starting in Q4 2007, median prices for new homes and existing homes diverged.

Continue reading New Home Sales Decline 7.8% In January (Back To 1995 Sales Level) – Did Mortgage Rate Increases Lower NHS?

The Albatross Of Debt: The Stock Market’s $67 Trillion Nightmare, Part 2

By David Stockman

In Part 1 we postulated that the chart below embodies nothing less than the nightmare that will be coming to Wall Street right soon. It means, in effect, that you can climb the financial tiger’s back for an extended time, but when you reach the mane its generally impossible to get off alive.

Needless to say, we have reached the mane. What drove the US economy for the past three decades was debt expansion—-private and public— at rates far faster than GDP growth. But that entailed a steady ratcheting up of the national leverage ratio until we hit what amounts to the top of the tiger’s back—that is, Peak Debt at 3.5X national income.

Continue reading The Albatross Of Debt: The Stock Market’s $67 Trillion Nightmare, Part 2

The Under-utilization of Housing Wealth In Retirement…

By Anthony B. Sanders

The Under-utilization of Housing Wealth In Retirement (Is Credit Too Tight and Shared Appreciation Mortgages As A Solution?)

There is an interesting event coming to Washington DC — the 2018 Housing Wealth in Retirement Symposium brought to you by The Funding Longevity Task Force at The American College of Financial Services and the Bipartisan Policy Center (BPC).

The goal? The goal for the Symposium is to facilitate collaboration among stakeholders – including regulatory agencies, NGOs, and the financial services community – to address the under-utilization of housing wealth in retirement.

The speaker list is excellent. The Urban Institute’s Laurie Goodman is the apparent headliner.

Here are my two cents (which has been devalued to less than a cent).

The American population is aging and many are entering retirement. But are they prepared?

First, The Federal government and its stakeholders have already tried to get more households to be stakeholders (that is, homeowners). And this happened.

Yes, the great leap forward in home ownership ultimately failed after almost reaching 70% before subsiding back to around 64%. That is, trying to get marginal households to switch from renting to owning. (By lowering credit standards and down payment requirements).

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Continue reading The Under-utilization of Housing Wealth In Retirement…

Is it Ever Different This Time?

By Jeffrey Snider

As my colleague Joe Calhoun likes to point out, nothing is new, everything has happened before. We like to think that’s not the case, as the saying goes every generation thinks it has invented sex. What changes is the form, the format largely remains the same. Human beings in 2018 are the same as they were in 1918.

Quite recently, the stock market suffered a bout of liquidation. Whether or not that has concluded isn’t yet determined. The reasons for it, at least those given in the mainstream, tend to be related to how things are so good. Inflation is about to breakout, the economy booming with it, and so the Federal Reserve will be forced to move faster than its otherwise snail’s pace. This is bad for stocks apparently.

So, we get headlines like thisInflation Fears Rattle Stocks.

Continue reading Is it Ever Different This Time?