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"The Great American Housing Rebound"

Tyler Durden's picture




 

When it comes to provocative financial magazine covers, until now this has been the domain mostly of the Economist and Barrons. Which is why we were not surprised to see Bloomberg do all it can (and it sure can afford to do a lot) to steal the spotlight. With this week's cover page of "The Great American Housing Rebound" it may have done just that, for obvious reasons, or rather one politically uncomfortable reason. And just as expected, the blistering critique is already quite fast and certainly furious - precisely as had been intended all along.

 

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Thu, 02/28/2013 - 11:56 | 3285856 francis_sawyer
francis_sawyer's picture

Based on the artwork ~ I'm assuming that all white people live in cardboard boxes by now...

Thu, 02/28/2013 - 11:58 | 3285874 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

reparations bitchez!!!

Thu, 02/28/2013 - 12:01 | 3285892 maxmad
maxmad's picture

Hyperinflation will mean a 2 bedroom should be worth about 1.3 million (give or take 100,00) in less than 12 months!

Thu, 02/28/2013 - 12:05 | 3285906 ShorTed
ShorTed's picture

...and the Bernankhole can finally declare "victory".  Then the debt serfs can take their $1.3M to the store for a package of hotdogs and rolls.

Thu, 02/28/2013 - 12:06 | 3285912 maxmad
maxmad's picture

1.2 million will get you the package of Hot dogs... You will need to sell your call to get the rolls...

Thu, 02/28/2013 - 12:08 | 3285923 maxmad
maxmad's picture

Of course their will be a rebound in housing (if only in paper terms), the Fed is now the largest RE owner and they are ensuring inflation...

Thu, 02/28/2013 - 12:18 | 3285954 nope-1004
nope-1004's picture

Nothing racist about the picture.... lol.

Hispanics and blacks sitting in a house wading in cash.  Seriously.... how did this get by the senior editors?  Even their faces are bubbled out of proportion.

Gotta be some kind of a joke.

 

Thu, 02/28/2013 - 12:24 | 3285996 Fish Gone Bad
Fish Gone Bad's picture

The Fed buys up all the mortgage backed securities, puts the tranches back together and recreates the original mortgages.  The Fed soon owns all the houses and as such, has a monopoly on their prices.

Thu, 02/28/2013 - 13:50 | 3286427 redpill
redpill's picture

Even the CAT is black!  Someone's getting canned....

Thu, 02/28/2013 - 15:11 | 3286884 AlaricBalth
AlaricBalth's picture

Even the swan on the roof is black. I wonder what that symbolizes?

Thu, 02/28/2013 - 15:45 | 3287110 Groundhog Day
Groundhog Day's picture

and the dog is cross eyed

Thu, 02/28/2013 - 13:53 | 3286453 tip e. canoe
tip e. canoe's picture

egg-scat-ly.   question is : can humpty dumpty be put back together again?

Thu, 02/28/2013 - 12:27 | 3286024 oddjob
oddjob's picture

They stole it from MAD magazine.

Thu, 02/28/2013 - 12:40 | 3286112 edb5s
edb5s's picture

Bernanke's response: "What, me worry???"

Thu, 02/28/2013 - 13:24 | 3286326 WakeUpPeeeeeople
WakeUpPeeeeeople's picture

Nobody mentioned the squirrel in the pic. Before this mess is over, a lot of folks will need to learn how to pick out a squirrel in the top of a tree if they want to put meat on the table.

Thu, 02/28/2013 - 16:00 | 3287193 Tom Terrific
Tom Terrific's picture

No, the squirrel is looking for nuts.  He found them in the house.

Thu, 02/28/2013 - 12:43 | 3286126 nope-1004
nope-1004's picture

The picture is disturbing, on so many levels.  First of all, cash is overflowing, sending the message that there is so much of it that it is worthless.  Secondly, the peep hole into this house looks to me like I'm looking through a bubble to the inside.  And third, the only piece of furniture is a lamp.  It's just so disgusting.

 

Thu, 02/28/2013 - 12:45 | 3286140 TruthInSunshine
TruthInSunshine's picture

Mayor McBloomBerg does "blackface."

Don't drone their Big Gulps, bro!

Thu, 02/28/2013 - 12:57 | 3286166 nope-1004
nope-1004's picture

The young girl upstairs, if portrayed exactly as she is outside the house, would be a ho.  The guy downstairs with the Pinocchio nose has obviously lied about his income and is celebrating his treasure with a pirate-like facial expression.  This is obviously a hit against the subprime borrowers, the majority of whom were lower income individuals.

Business week (as said above) is now MAD magazine.

 

Thu, 02/28/2013 - 12:47 | 3286153 Raymond Reason
Raymond Reason's picture

and black cat - bad omen. 

Thu, 02/28/2013 - 13:35 | 3286381 smlbizman
smlbizman's picture

and lets make that a pit bull.....

Thu, 02/28/2013 - 14:48 | 3286730 Common_Cents22
Common_Cents22's picture

its hardly worthless, the disgusting part is its being ripped off from taxpayers and hoarded by DC elite whores and their connected business elite.   But majority of Americans are too stupid to realize it until its too late.

Thu, 02/28/2013 - 12:39 | 3286104 Shizzmoney
Shizzmoney's picture

I actually think its not.

It's pretty clear that the rentiership class is getting a little sick and tried fo us "complaining" with our "facts".  Between CitiBank issuing underlying threats to the Italians after the election, or The Economist reinforcing this view that "democracy is bad for markets" - it's pretty clear that the message being pruported is: "We can divide you at any time, we think you are all stupid suckers that we own."

That's the thing about the huge lips and noses in these pictures.  A lot of folk think it's a dig on how black people actually look - it's actually a subtle dig on ALL people taking homes, that they are "suckers" (big lips = fish/whale, a common term for degenerate gamblers) and "liars" (growing noses).

They are trolling us all.

Thu, 02/28/2013 - 14:01 | 3286504 tip e. canoe
tip e. canoe's picture

They are trolling us all.

yep, they sure are.   this is why it's important for everyone not to fall into the trap of division/derision based on cultural/ethnic/class identities, if only because it's obvious TPTMB (make-believe) are pushing the meme for all it's worth.

Thu, 02/28/2013 - 12:52 | 3286171 DaveyJones
DaveyJones's picture

"gotta be some kind of joke"

the whole economy is

Thu, 02/28/2013 - 12:09 | 3285928 Dr. Richard Head
Dr. Richard Head's picture

The please explain to me why hot dogs and beer will be cheaper at Progressive Field http://www.cleveland.com/sports/index.ssf/2013/02/indians_fans_to_pay_less_at_pr.html#incart_m-rpt-2

Oh wait, the Tribe sucks, so I guess it's a supply demand issue more than anything.  Carry on. 

Thu, 02/28/2013 - 13:04 | 3286227 socalbeach
socalbeach's picture

Beer reduced in price so you'll drink more and won't notice the hot dogs are made of horsemeat ?

Thu, 02/28/2013 - 12:11 | 3285934 El Viejo
El Viejo's picture

Bloomberg limited the size to 3 bedrooms!

Thu, 02/28/2013 - 12:28 | 3286026 Dr. Richard Head
Dr. Richard Head's picture

An 80/20 Jumbo Alt-A Option Only Arm will be required for a bungalow soon.

Thu, 02/28/2013 - 12:14 | 3285950 StandardDeviant
StandardDeviant's picture

Heh.  Welcome to London...

Thu, 02/28/2013 - 13:35 | 3286378 Common_Cents22
Common_Cents22's picture

how do housing prices rise even in inflationary environment when wages/economy are stagnant?   We will be in stagflation, not some real recovery with velocity/expansion of money picking up from real loans being made.   This is nothing but ripping off average americans/taxpayers via printing, bailouts, ruining the economy, also hurting any savers with ZIRP. 

Thu, 02/28/2013 - 18:57 | 3287996 Whizbang
Whizbang's picture

I take it you've never been to boston, d.c., or manhattan?

Thu, 02/28/2013 - 12:04 | 3285903 Divided States ...
Divided States of America's picture

Even my dog has three houses, one in my backyard, one in some empty house down the street where he shares with some homeless mutt and another one in Florida when he does decides to elope with the mutt for good. Houses for everybody!

Thu, 02/28/2013 - 12:09 | 3285926 Bicycle Repairman
Bicycle Repairman's picture

My dog has one that he shits at.  Someone better tell BOA to order up some mutt mitts.

Thu, 02/28/2013 - 12:17 | 3285968 Kaiser Sousa
Kaiser Sousa's picture

divide and conquer via the race play is just another sign of desperation on behave of the bankers and the elitist...i hope us folk here at the Zero will c past it.... 

Thu, 02/28/2013 - 12:44 | 3286135 Spastica Rex
Spastica Rex's picture

i hope us folk here at the Zero will c past it.... 

HA HA HA

Thu, 02/28/2013 - 12:06 | 3285913 icanhasbailout
icanhasbailout's picture

notice no cats are dumb enough to be involved with this

Thu, 02/28/2013 - 12:14 | 3285951 booboo
booboo's picture

yea, except for the black cat, what? You a racist or somfhun?

Thu, 02/28/2013 - 12:32 | 3286059 icanhasbailout
icanhasbailout's picture

he's just sitting aloof from it... contrast with the dog who is clearly participating, salivating even

Thu, 02/28/2013 - 12:45 | 3286143 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

look again...the cat is clearly a narc.  <sarc>

Thu, 02/28/2013 - 12:10 | 3285930 otto skorzeny
otto skorzeny's picture

francis-i was starting to panic-you haven't been around for a few days

Thu, 02/28/2013 - 12:23 | 3285990 francis_sawyer
francis_sawyer's picture

Obama droned me then turned me into a newt... But I got better...

Thu, 02/28/2013 - 12:30 | 3286040 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

a newt?

Thu, 02/28/2013 - 12:34 | 3286066 Uncle Remus
Uncle Remus's picture

You actually survived "Being Gingrich"?

*If you are capable of critical thinking, you are the resistance.*

Thu, 02/28/2013 - 12:58 | 3286200 francis_sawyer
francis_sawyer's picture

For those who take francis_sawyer too seriously about anything:

~~~

http://www.youtube.com/watch?v=xzYO0joolR0

PS ~ InTheLandOfTheBlind actually 'got it' correctly...

Thu, 02/28/2013 - 12:26 | 3286010 midtowng
midtowng's picture

What a great top indicator

Thu, 02/28/2013 - 11:55 | 3285857 kliguy38
kliguy38's picture

Tell it to the millions underwater on the mortgages......tell it to the millions in foreclosure.....tell it to the millions living with their parents

Thu, 02/28/2013 - 12:03 | 3285898 maxmad
maxmad's picture

This is why the banks are welcoming all foreclosures!!  Welcome to Zimbabwe/Weimar...

Thu, 02/28/2013 - 12:10 | 3285929 prains
prains's picture

How is it such a ludicrous idea like this can even get published? It can't have anything to do with the concentration of 90% of american media in the hands of 5 corporations can it?

Thu, 02/28/2013 - 12:36 | 3286084 WillyGroper
WillyGroper's picture

Soon these psychopaths will hire the unemployed to come to our houses & kick us square in the nads.

Thu, 02/28/2013 - 12:11 | 3285935 Son of Loki
Son of Loki's picture

Did the article mention that irritating detail of 15 million empty boxes now in Shadow inventory?

Thu, 02/28/2013 - 12:46 | 3286146 McMolotov
McMolotov's picture

Stop bringing facts into the discussion!

Thu, 02/28/2013 - 12:29 | 3286030 azzhatter
azzhatter's picture

If Bloomberg says it it must be true

Thu, 02/28/2013 - 12:32 | 3286058 McMolotov
McMolotov's picture

The message from the media is that all is well, and that if you're not swimming in money during this glorious recovery, you're doing something wrong.

Thu, 02/28/2013 - 12:33 | 3286060 The Navigator
The Navigator's picture

But see, if they inflate this bubble back up again then NOBODY is underwater or in foreclosure - problem is, How to inflate wages so new buyers can qualify for loans and keep the ponzi going.

Thu, 02/28/2013 - 11:56 | 3285864 eatthebanksters
eatthebanksters's picture

Why are all of the occupants of the house minorities?

Thu, 02/28/2013 - 11:58 | 3285873 Weisbrot
Weisbrot's picture

do you mean they are the financially opressed white minority?

Thu, 02/28/2013 - 11:58 | 3285876 francis_sawyer
francis_sawyer's picture

all the white people are living in the basement...

Thu, 02/28/2013 - 12:06 | 3285908 max2205
max2205's picture

did black folks move in that house...fucking Barry

Thu, 02/28/2013 - 12:34 | 3286061 McMolotov
McMolotov's picture

...Mixin' up the medicine.

Moonshine and meth are where the real money will be made in the coming years.

Thu, 02/28/2013 - 12:12 | 3285937 SkottFree
SkottFree's picture

If you don't understand Obamanomics maybe someone will explain it to you!

Thu, 02/28/2013 - 13:59 | 3286491 Morphine Drip
Morphine Drip's picture

Mom and dad on first floor and the kids upstairs. Just your typical American family.

 

Thu, 02/28/2013 - 14:25 | 3286625 e-recep
e-recep's picture

it is their turn to be ripped off. the whites are toast already.

Thu, 02/28/2013 - 11:56 | 3285865 Weisbrot
Weisbrot's picture

credit is not easy for most to get, if at all

many are out of work

most family incomes are lower

I guess the only ones buying are those who "occupied Wallstreet"

and this is their payoff

good job

 

Thu, 02/28/2013 - 11:57 | 3285866 IridiumRebel
IridiumRebel's picture

Almost done selling my house.....I wanna GTFO! This pig needs more lipstick!

Thu, 02/28/2013 - 12:11 | 3285932 maxmad
maxmad's picture

Probably regret it in 6 months... But cant blame ya...

Thu, 02/28/2013 - 12:32 | 3286056 IridiumRebel
IridiumRebel's picture

I broke even. You have no clue. I'll buy on the cheap in 4 yrs.

Thu, 02/28/2013 - 12:36 | 3286082 maxmad
maxmad's picture

hmmm... which side would I want to be on: The Fed or IridiumRebel's... Oh I'll go with the Fed!!!

Thu, 02/28/2013 - 12:55 | 3286187 IridiumRebel
IridiumRebel's picture

Yeah it's gonna be great being unable to move or sell after the debt bomb explodes and property taxes to thru the roof. It's a fucking bubble dipshit. The fed is creating a huge problem. I'd rather be safe than sorry.

Thu, 02/28/2013 - 13:18 | 3286315 maxmad
maxmad's picture

OK, if you say so!  Fed says otherwise, but if it helps you sleep better at night.... Because we all know that the money they are printing will never hit the housing market-LOL!!  Nice call though-Sell LOW, buy HIGH IridiumRebel!

Thu, 02/28/2013 - 14:08 | 3286549 Common_Cents22
Common_Cents22's picture

where is the demand for homes to keep prices up?  the average American is suffering from stagflation, no increase in wages/jobs and nothing for any savings.

is it just going to be wealthy investors/gubbermint taking all the housing stock and charging higher rents?

Even then, the poor tenants are the check and balance to rising prices.

Thu, 02/28/2013 - 14:16 | 3286584 IridiumRebel
IridiumRebel's picture

Are you fucking stupid? I stated that I broke even and for purchasing my home 3.5 years ago that is saying something. Couple the fact that I have to be geographically liquid as I will be entering a law school in 2014, being tied down to a house will be hard to move. Secondly, as to your printing quip, if I were able to buy homes for rental opps, then yes you are correct. As for the single housing folks who have seen wages decrease precipitously, inflation rocking hard and energy prices making a steady climb, home ownership is simply less viable for most folks. I will be able to buy again, but the fact is that we are re-entering a recession that could work into a depression should the policy response be sub-optimal. They have said it themselves that they are out of bullets. The endless printing of money will eventually be extremely detrimental to our economy. Countless empires and countries have proven this fact. They are doing nothing to combat the systemic failure that is rapidly approaching. Again, I would rather be safe than sorry. Due to my extenuating circumstances, I simply do not want to be in the market. I hope it works out for you, but math is a motherfucker as I believe that you will find out in the future. 

Thu, 02/28/2013 - 12:39 | 3286103 WillyGroper
WillyGroper's picture

In 4 yrs. you'll have the option of micro housing ala inner city blade runner or the long goodnite of soylent green. That's an optimistic view.

Thu, 02/28/2013 - 11:56 | 3285867 Robot Traders Mom
Robot Traders Mom's picture

Nice. They even nailed the diversity quota. 

Thu, 02/28/2013 - 12:21 | 3285980 Agent P
Agent P's picture

Even the cat is black.

Thu, 02/28/2013 - 12:55 | 3286190 DaveyJones
DaveyJones's picture

...and they used a basketball term

fuck, they'll probably use hair products next

Thu, 02/28/2013 - 11:57 | 3285868 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

does anyone else feel the racial overtones in this image?

Thu, 02/28/2013 - 11:59 | 3285880 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

i will answer myself... yes you do

Thu, 02/28/2013 - 12:07 | 3285915 DOT
DOT's picture

Yeah! no Asians.  That's Raciss.

Thu, 02/28/2013 - 12:12 | 3285939 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

can't decide if the lower left is asian or a member of the d ray white family

Thu, 02/28/2013 - 12:16 | 3285956 El Viejo
El Viejo's picture

I lost all feeling years ago.

Thu, 02/28/2013 - 12:18 | 3285972 DOT
DOT's picture

That's Mama Jane, BooBOO is taking a nap.

Thu, 02/28/2013 - 12:33 | 3286062 azzhatter
azzhatter's picture

No turbans

Thu, 02/28/2013 - 12:00 | 3285886 francis_sawyer
francis_sawyer's picture

Bloomberg? Rayciss?... Out of the question... Not part of his culture...

Thu, 02/28/2013 - 12:13 | 3285947 otto skorzeny
otto skorzeny's picture

bloomberg got his little anti-gun black bitch that is going to replace Jesse JR voted in here in IL the other day using a few  million $ of his judefetzen. the funny part is-the district is a shithole that he would never even drive through let alone live in.

Thu, 02/28/2013 - 12:26 | 3286017 francis_sawyer
francis_sawyer's picture

In Apartheid Israel, Jews don't live in 'shithole' Palestinian territories... This is, of course... until they DO...

Thu, 02/28/2013 - 11:58 | 3285871 Edward Fiatski
Edward Fiatski's picture

Welp. The top is in then.

"Ben, we're not closing RED again, are we, Ben?

B-b-ben..?

BEN?

BENNNNNNnnn!"

Thu, 02/28/2013 - 11:58 | 3285875 jkjacksonhole
jkjacksonhole's picture

Bloomberg Bull.....

Thu, 02/28/2013 - 13:15 | 3286301 Theosebes Goodfellow
Theosebes Goodfellow's picture

Some people aren't reading Bloomberg...

~"Billionaires Dumping Stocks, Economist Knows Why"~

http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/2012/...

 

Thu, 02/28/2013 - 11:58 | 3285878 JustPrintMoreDuh
JustPrintMoreDuh's picture

Party like its 2006!  

Thu, 02/28/2013 - 12:58 | 3286203 DaveyJones
DaveyJones's picture

and like the artist, marketing requires a new name

Thu, 02/28/2013 - 11:59 | 3285881 Charles Nelson ...
Charles Nelson Reilly's picture

soooo I shouldn't buy that 9000 sq ft 7 bedroom 5 bath home 23 miles from my office?  My wife and I love how the Walmart is only 2.2 miles away though.

Thu, 02/28/2013 - 12:27 | 3286020 Esso
Esso's picture

Hells yeah you should! As a contractor, I can tell you those $1,000/mo utility bills and the $2,000/mo property tax payments are good for the economy.

If'n you're a really good citizen, you'll bust out a bunch of windows so they can be repaired. You could damn-near singlehandedly fix the economy on your own.

You'll be a hero.

Thu, 02/28/2013 - 12:34 | 3286067 azzhatter
azzhatter's picture

How you gonna survive in only 9,000 sq ft?

Thu, 02/28/2013 - 13:02 | 3286218 DaveyJones
DaveyJones's picture

yeah, hasn't he heard, we're drowning in oil 

Thu, 02/28/2013 - 14:52 | 3286747 Common_Cents22
Common_Cents22's picture

just as long as it has granite countertops and stainless appliances.

Thu, 02/28/2013 - 11:59 | 3285882 mckee
mckee's picture

The dog is aghast at the idiocy!

Thu, 02/28/2013 - 12:24 | 3285998 Agent P
Agent P's picture

The dog is on crack...as are the rest of them.

Thu, 02/28/2013 - 12:00 | 3285883 TrumpXVI
TrumpXVI's picture

They didn't build that house (or buy it).

Thu, 02/28/2013 - 12:00 | 3285885 DOT
DOT's picture

Equivalent rent to increase, real rents continue to rise.

Thu, 02/28/2013 - 12:01 | 3285888 Edward Fiatski
Edward Fiatski's picture

Do you see the black cat sitting in the lower right? It's looking into your Soul, and it is a singal to Space Aliens to get out of Terra's housing bubble.

Thu, 02/28/2013 - 12:05 | 3285910 Charles Nelson ...
Charles Nelson Reilly's picture

that fuckin cat is racist... get Sharpton and Jackson on the phone asap.  Well... at least Sharpton as Jackson may be trying to talk his son out of blowing his brains out, or where the best cape shop in Chicago is?

Thu, 02/28/2013 - 12:01 | 3285891 buzzsaw99
buzzsaw99's picture

Obama gonna pay my mortgage!

Thu, 02/28/2013 - 12:02 | 3285893 Tsar Pointless
Tsar Pointless's picture

I have a cat that looks like the one in the cartoon.

Hey - even the cat is black!

Thu, 02/28/2013 - 12:27 | 3286021 Agent P
Agent P's picture

Sorry...I stole your line above before reading this.

Thu, 02/28/2013 - 12:03 | 3285896 Osmium
Osmium's picture

Are they selling crack out of that house?  I can't think of any other reason for the piles of cash. 

Thu, 02/28/2013 - 12:40 | 3286108 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

crack and hopium - a deadly combination

Thu, 02/28/2013 - 12:45 | 3286138 WillyGroper
WillyGroper's picture

that's a GSE.

Thu, 02/28/2013 - 14:52 | 3286754 Common_Cents22
Common_Cents22's picture

Breaking Bad is a great show!

Fri, 03/01/2013 - 18:08 | 3291807 MagicHandPuppet
MagicHandPuppet's picture

How else do you think *they* could afford it?

Thu, 02/28/2013 - 12:03 | 3285897 Dr. Engali
Dr. Engali's picture

They will need all that fiat to buy bread soon.

Thu, 02/28/2013 - 12:36 | 3286079 azzhatter
azzhatter's picture

proof that QE is working

Thu, 02/28/2013 - 12:06 | 3285899 Type 56
Type 56's picture

Here in Los Angeles I see developments that were stalled or abandoned being restarted and completed.  Paving over farmland (what's left of it, anyway) has resumed, and gravel trucks are once again ruining cars on the freeway as they carelessly spill copious amounts of rocks all over the interstate.  Construction in SoCal has resumed, everywhere you look.

Now someone, PLEASE, educate me.  Wages are stagnant or in decline, few apart from the Chinese have cash sufficient for a downpayment, and the economy remains moribund.

WHO THE FUCK IS BUYING ALL OF THESE NEW HOUSES!?!?

Thu, 02/28/2013 - 12:06 | 3285914 Edward Fiatski
Edward Fiatski's picture

In kalyforn'ya? Chinese suckers.

Thu, 02/28/2013 - 12:11 | 3285931 Bicycle Repairman
Bicycle Repairman's picture

People with wealth that are tired of a 1% ROA.  They know nothing about being a landlord.  Well, not yet anyway.

Thu, 02/28/2013 - 12:16 | 3285960 adr
adr's picture

Take a look at the census reports for LA suburbs. There are 98% Chinese towns.

That is your answer.

Thu, 02/28/2013 - 12:22 | 3285984 Shizzmoney
Shizzmoney's picture

WHO THE FUCK IS BUYING ALL OF THESE NEW HOUSES!?!?

Blackrock and Jaime Dimon.

Thu, 02/28/2013 - 14:52 | 3286753 venturen
venturen's picture

In NJ they are building condo complex(500 unit, 200 unit, 1000 units) one after another right through the real estate implosion. Since the population in NJ is declining...who in the hell are buying these places? 

Thu, 02/28/2013 - 15:00 | 3286810 Common_Cents22
Common_Cents22's picture

risk is being transferred to the private class away from banks.  how?

all those who were foreclosed are now renters.   They are just basically swapping homes.   The hit has been taken for now by the foreclosed owners in loss of equity and also banks who were all in,  and all those former homeowners are now renters in someone elses foreclosed home bought by an investor.

As our economy continues to fall, there will be plenty of rent default in the next few years,  declining rents so the investors in those foreclosed homes (you need much higher equity to even get a loan)  will experience much lower ROI.  they'll take a hit. 

We arent going to see classic inflation where wages rise and velocity/expansion of money occurs from many new loans being made.   We are in stagflation where wages and investment income are flat to declining due to ZIRP, and cost of business goes up due to govt taxes/regulation etc...   Tangible stuff that you need to live on will continue to rise (food, energy)  as well as alternatives to currency as a store of wealth.

Thu, 02/28/2013 - 12:03 | 3285900 ceilidh_trail
ceilidh_trail's picture

All it's missing is the obama phone, free healthcare and disability.

Thu, 02/28/2013 - 12:11 | 3285936 Bicycle Repairman
Bicycle Repairman's picture

Missing?

Thu, 02/28/2013 - 12:37 | 3286088 azzhatter
azzhatter's picture

And LIESman blowing Bernanke in the bathroom

Thu, 02/28/2013 - 12:10 | 3285905 Hongcha
Hongcha's picture

Does anyone else get the feeling we are nearing a climax of sorts here.  The morphine drip is installed and the patient is working the button taped to his palm, mainlining himself.  The Great Social Network Pump is finished; this housing rebound, driven by a few P.R.C. expats and dead cat bounces in a few select areas of the U.S.A., is getting pumped for all it is worth.  Japan has taken up The One's tactic of referring to the stock market levels as a sign of strength; and all around we see govts. engaged in direct pumping.

Meanwhile gasoline stays well over $4 in Kali-fornia and the working class economy hollows out like a tree infested with termites.

Washington D.C., Wall Street and Free Shit Nation are the only denizens thriving.

I think a nice tradeable short is in the wings; maybe around 153 SPY.  I wanna make some money short this abortion; perhaps an unhealthy obsession but I'm not the only one I think ;)

Thu, 02/28/2013 - 13:01 | 3286212 WillyGroper
WillyGroper's picture

Ominous sense of foreboding here. Glad I'm closer to the happy hunting ground than the shit show that's going to be left for the survivors. It's moving exponentially faster. 

Thu, 02/28/2013 - 13:15 | 3286297 Bingfa
Bingfa's picture

Last vestige of a desperate nation....

 

 

 

Cramming BS down everyone's throat and hoping half of it sticks.

Thu, 02/28/2013 - 12:06 | 3285911 Bicycle Repairman
Bicycle Repairman's picture

So this is from "Bloomberg Business Week".  It's that "Bloomberg" isn't it?  You know, gun-grabbing, third-terming, soda regulating, homeless-denying authoritarian Bloomberg.

Why should anyone give Bloomberg any credibility?

Thu, 02/28/2013 - 12:07 | 3285917 ceilidh_trail
ceilidh_trail's picture

He didn't write that!    (just owns it)

Thu, 02/28/2013 - 12:12 | 3285944 Bicycle Repairman
Bicycle Repairman's picture

I'll speculate that he approved of the cover at least.

Thu, 02/28/2013 - 12:24 | 3285993 Shizzmoney
Shizzmoney's picture

He doesn't even give a glace at it I bet; all Bloomberg probably does is write/cash the checks at the end of each month for operating expenses.

He probably got a good chuckle out of it, though.  The Bankster Jews (secretly) hate blacks.

Thu, 02/28/2013 - 12:34 | 3286065 Agent P
Agent P's picture

Of course he did, and why wouldn't he?  This depiction would seem perfectly normal to him as swimming around in mountains of cash is likely par for the course at Lil' Mike's house.

Thu, 02/28/2013 - 12:09 | 3285924 buzzsaw99
buzzsaw99's picture

bloomturd thinks his shit doesn't stink because his olds factory is burned out by the stench of the city

Thu, 02/28/2013 - 15:48 | 3287134 Common_Cents22
Common_Cents22's picture

BTV is a helluva lot more credible than the immature shills at CNBS(minus Santelli of course).    But that isnt sayin much.

Thu, 02/28/2013 - 12:07 | 3285918 Lendo
Lendo's picture

The dream of home ownership may be one of the biggest scams sold to the American pulbic. 

Thu, 02/28/2013 - 12:43 | 3286124 Darksky
Darksky's picture

#2 = retirement

Thu, 02/28/2013 - 12:07 | 3285919 GolfHatesMe
GolfHatesMe's picture

A house with one mortgage payment of future fiat

Thu, 02/28/2013 - 12:12 | 3285940 Number 156
Number 156's picture

David Lerah working for bloomberg now?

Thu, 02/28/2013 - 12:12 | 3285943 foodstampbarry
foodstampbarry's picture

Been to Washington DC lately?  Black people are living like kings in their Federal gov't jobs. This picture is entirely accurate.

Thu, 02/28/2013 - 12:14 | 3285949 q99x2
q99x2's picture

I have student loans available that I could use as a down payment whenever Bernanke gives the green light.

Thu, 02/28/2013 - 12:16 | 3285959 Lendo
Lendo's picture

Also, do you think they could have made their lips bigger? 

Thu, 02/28/2013 - 12:22 | 3285961 Hongcha
Hongcha's picture

Fuck Bloomberg; and I get the impression out here in CA that Feinstein had her little gun campaign jammed up her fat ass and snapped off.  They failed.  Take heart, lads!

Thu, 02/28/2013 - 12:17 | 3285966 caimen garou
caimen garou's picture

it's all government workers that are in that house!

Thu, 02/28/2013 - 12:19 | 3285973 adr
adr's picture

We're living a Mel Brooks movie.

Thu, 02/28/2013 - 12:24 | 3285992 Ms. Erable
Ms. Erable's picture

Which one? 'Things Are Tough All Over' or 'High Anxiety'?

Thu, 02/28/2013 - 12:43 | 3286122 Dagny Taggart
Dagny Taggart's picture

Soon to be Young Frankenstein complete with pitchforks and torches as the people storm the gates.

Thu, 02/28/2013 - 13:06 | 3286245 DOT
DOT's picture

That's just cazy talk (can't CC a pitchfork).

Thu, 02/28/2013 - 12:20 | 3285975 Shizzmoney
Shizzmoney's picture

Probably the most insensitive cover I've seen on a magazine in a while.  Not just for the racial tones; it basically (in a visual sense) asserts that the blame on the crisis was SQUARELY on poor (ie brown) people taking on these mortagages, despite the fact that they were offered NINJA loans (No Income, No Jobs, Assets) that were OFFERED to them (by banking entities that GAMED the system, under the guise of "opportunity" to buy a home) while rating agencies (taking money under the table) rated the derivitives these MBS's were attached to as AAA (when they couldn't even be sold for Zimbabwe dollars).

And I thought the cover of the Economist was bad (another, "How DARE the people of Italy choose Democracy over Bankers" tiff:

http://t.co/25YtN5KYlV

BTW Households are taking on more debt again.  I'm bullish!

http://www.businessinsider.com/household-debt-q4-2013-2

 

 

Thu, 02/28/2013 - 12:41 | 3286119 Darksky
Darksky's picture

So ACORN threatening to picket and sue the racist banks if they didnt loan to what did you call them, brown people, had nothing to do with housing problem. And the fed govt demanding loans be given to these same brown people you speak of by clinton under the Housing Affordability Act had nothing to do with it either. Banks suck, but the govt and community organizers suck MOAR!

Thu, 02/28/2013 - 13:01 | 3286215 Shizzmoney
Shizzmoney's picture

Yes, these loans were given to brown and poor people for votes.  Liberal fringe groups (backed by big banks) put a "guilt trip" on policy makers to accelerate the process.   Clinton/Bush did it for votes. Poor people were suckers for taking on the loans, despite them not knowing basic math.  But the bankers ALSO don't know basic math, as they had NO where near the capital to handle the risk these high risk loans made.

But who is worse: the drug dealer or the addict? 

The answer is neither.  The answer is the entity who ALLOWS the drug dealer and addict do their business in the first place (For drugs, its the CIA; for housing, its the Federal Reserve).

When you finally figure out that the government and the banks are basically the same entity, you'll understand this better.

 

Thu, 02/28/2013 - 14:00 | 3286496 Clowns on Acid
Clowns on Acid's picture

The CRA Act was passed ubder Carter, put on steroids by Clinton (race based...Acorn inspired), Bush was passive on the matter for the obvious reasons of Acorn, LSM etc...

Bush was the only President that did question the size / taxpayer risk of Fannie/Freddie. Same thing ..."racism" screaming fro Bwarney Frank / DEMs and LSM.

Of course it just wasn't non whoites defaulting that created credit bubble / collapse, but it was the Gresham's Law in play..."Bad money drives out good".

Securitization, collateral ratings being influenced by banks, no doc loans, robo signings... the whole system participated in the bubble. Banks made fortunes, and the MBS traders / salesmen made fortunes.

But let's understand where it started and got its legs....the CRA Act. Clinton / Rubin, Barney Frank and Chris Dodd relying on race based policies and threats to keep the gravy train moving.

Just like the Fed fiscal deficit today....just like the election / re-election of Obama.

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