“The International Buyer Has Been Absent” Unsold Hamptons’ Mansions Pile-Up As Bubble Bursts

Just a few months ago, Hamptons 2nd home-hunting was an elitist’s dream. Home sales were surging (highest sicne 2007’s peak) even as home prices soared (in the face of bad weather and economic angst). But that has all changed. As Bloomberg reports, sales of luxury homes in the are have tumbled 16% YoY in Q3, prices have plunged 18% YoY, and inventories are surging (up 34%). The reason is simple, as one realtor notes, “the international buyer has been absent.” Mid-Summer, The Wall Street Journal could not be more excited about the bubble in Hamptons’ homes…  As the peak spring season for home sales begins, the market across the region is showing considerable strength, especially in the Hamptons, with its deep pool of affluent summer-home buyers. Despite frequent winter storms that snowed in many Hamptons properties on the eastern end of Long Island, the number of sales from January […] Read More

Calling The Fed’s Bluff

Via ConvergEx’s Nick Colas, If U.S. stocks have stabilized – granted, a big “If” – you can thank the fact that markets don’t believe the Federal Reserve’s outlook on interest rates.  According to the latest CME Group’s contract pricing, Fed Funds rates will end 2015 at 43 basis points. That essentially signals a less-than-100% chance of being at 50 bp in 14 months; the Fed’s own estimates are for Fed Funds to reach 127 basis points by that time. Only three of 17 Fed officials who submit estimates for inclusion in the now-famous “Dot Plot” are lower than the market’s own estimate of future monetary policy.  Looking at 2016, the disparity between market expectations and Fed estimates is even broader.  Policy makers at the Fed believe rates should be at 2.17%; the Fed Funds futures contract sits at 1.27%. In the everlasting debate about whether markets want good or […] Read More

The Secret Back Story to Russia and Ukraine that Americans Never Learned In School

Preface:  We believe that Soviet communism was an abomination.  Stalin was certainly a tyrant: he killed countless political enemies or threw them into insane asylums.   We also have littler tolerance for useful idiots who defend communism as a force for good.  In short, we hate Soviet era communism. And Putin also runs Russia like it’s his plaything, with little regard for the desires of his people. But U.S. warmongers have also been hyping the Russian threat with self-serving lies – and committing atrocities and telling lies – for some 70 years.  As an American, my concern is keeping America from destroying itself.  And – unless we learn our history – we could get in a lot of trouble. America Launched the Cold War Even Before World War II Had Ended Joseph Stalin and the Soviets were key in helping the U.S. to defeat the Nazis.  20 million Russians died […] Read More

When $1.2 Trillion In Foreign ‘Hot Money’ Parked At The Fed Dissipates

Wolf Richter   www.testosteronepit.com   www.amazon.com/author/wolfrichter It fits the pattern of gratuitous bank enrichment perfectly, but this time, the big beneficiaries of the Fed are foreign banks. A JPMorgan analysis, cited by the Wall Street Journal, figured that in 2014 the Fed would pay $6.74 billion in interest to the banks that park their excess cash at the Fed – half of that amount, so a cool $3.37 billion, would line the pockets of foreign banks with branches in the US. This is where part of the liquidity ends up that the Fed has been handing to Wall Street through its bond purchases. Currently, the Fed requires that banks keep a minimum balance of $80.2 billion at the Fed. Banks can keep up to $88.2 billion at the Fed as part of the “penalty-free band.” In theory, as “penalty-free” implies, there’d be a penalty on balances above $88.2 billion. But the […] Read More

Polls: Americans Are Sick of the War On Terror, War On Drugs … And All of the Other Failed U.S. Wars

Americans Turn Anti-War The American people are now overwhelmingly opposed to more war in Ukraine, Syria, Iran and elsewhere. A new Wall Street Journal/NBC poll shows: Americans in large numbers want the U.S. to reduce its role in world affairs even as a showdown with Russia over Ukraine preoccupies Washington …. In a marked change from past decades, nearly half of those surveyed want the U.S. to be less active on the global stage, with fewer than one-fifth calling for more active engagement—an anti-interventionist current that sweeps across party lines. A Pew poll from December found a majority of Americans – more than ever before in Pew’s 50-year history of polling this question – think the U.S. “should mind its own business internationally and let other countries get along as best they can on their own.” A Pew/USA Today poll conducted over the weekend found that Americans  oppose – […] Read More

Say Goodbye To “Net Neutrality” – New FCC Proposal Will Permit Discrimination Of Web Content

Submitted by Mike Krieger of Liberty Blitzkrieg blog, The concept of “net neutrality” is not an easy one to wrap your head around. Particularly if you aren’t an expert in how the internet works and if you don’t work for an ISP (internet service provider). In fact, I think that lobbyists and special interest groups make the concept intentionally difficult and convoluted so that the average person’s eyes glaze over and they move on to the next topic. I am by no means an expert in this area; however, in this post I will try to explain in as simple terms as possible what “net neutrality” means and what is at risk with the latest FCC proposal. I also highlight a wide variety of articles on the subject, so I hope this post can serve as a one-stop-shop on the issue. The concept of “net neutrality” describes how broadband […] Read More

2011: Madness: 39 Things That Are Driving Ordinary Americans Absolutely Crazy

July 21, 2011 Source: Micheal Snyder – BLN Contributing Writer Have you noticed that almost everyone seems really angry these days?  Frustration with the government and with most of the other major institutions in our society seems to grow by the day.  According to a brand new ABC News/Washington Post poll, 80 percent of Americans say that they are either dissatisfied or angry with the government.  Americans are deeply divided about what the solutions to our problems are, but what almost everyone can agree on is that our problems are getting worse.  Watching all of the madness that is going on in Washington D.C. and in our state capitals is almost enough to drive anyone absolutely crazy.  Our nation is drowning in an ocean of debt, jobs are being shipped overseas at an alarming rate, thousands of stores are closing, poverty is exploding, greed has become a national pastime and […] Read More