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Well That Hasn't Happened Before - Exhibit 3
We have never, ever, seen a larger Fed-fueled, mal-investment boom in private construction...
While some see new record highs in private construction spending as a signal that everything is 'normal' again, it is that 'normal' that we should be most afraid of as extremely cheap money in the form of loans backing this construction (which will never go down in value thanks to The Fed's omnipotence) will lead inevitably to a glut or over-supply... or, as we have seen recently, a collapse in credit will disable these highly-levered property speculators from rolling debt.
The distorted picture being painted by 'unemployment trends' and constant reassurance by any and every talking head that - thanks to the stock market's renaissance - everything is set for escape velocity merely places the entrepreneur once again with misleading signals... either a) they do not invest due to uncertainty or b) they pile in speculatively and lose thanks to Fed promises.
Be careful what you wish for... the last 2 times property construction rose at 50% YoY was the top...
Chart: Bloomberg
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Not since Lehman?
I tried to register the website www.sincelehman.com
Someone has already taken it
The boom has still 1-2 years to go so don't sweat about it just yet.
You can still put an addition on your house and sell before it becomes a subtraction!
Section 8 housing. Only in America.
This time IS going to be different.
Ilion,
Wanna bet? I say it ends this year.
...said like an obedient PINKO FASCIST COMMIE, no doubt!
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
http://www.scamner.com/check/globe-report.com
do like China - build shit for nothing
Au contraire.Their five year plan says they will be forcing peasant into the cities.
A reverse Mao.
Sounds like a slam dunk!
do concrete buildings last 5 years with no people to maintain them?
Maybe China employs a city worth of maintenance and engineers to fix the things with no people living in them.
Communism works for a short time till the get USA style Debt!!
When you're a jew and can PRINT/COUNTERFEIT your own currecy [especially AFTER 'Bretton Woods' was abandoned, & a 325 million -1 happenstance probability succession of jew FED CHAIRS took charge of the money printing/counterfeitting brigade]......
Well ~ I guess you can do all kinds of weird things that have never been seen before &/or don't make sense to AVERAGE people [whom have been programmed to hate the IMBEDDED, arbitrary, number 6 million &, well, allow you CARTE BLANCHE]...
TM...
Please undertake future attempts to focus the criticisms on the NeoCon/NeoLib power-seeking/war-mongering (usually secular) Ziofucknuts of mostly Khazari descent (and their 'christian' friends) rather than the 99%+ of jews that don't have a single damn thing to do with the current mess the world is in.
Thanks in advance...
WHO run Bartertown?
Correct... but they sure don't send checks from the spoils out to the other 30 million..
We got everything you want honey, we know the names
We are the people that can find whatever you may need
If you got the money honey we got your disease In the jungle, welcome to the jungle
Watch it bring you to your knnn knne knees, knees
I want to watch you bleed Welcome to the jungle we take it day by day
If you want it you're gonna bleed but it's the price to pay
And you're a very sexy girl that's very hard to please
You can taste the bright lights but you won't get there for free
In the jungle welcome to the jungle
Feel my, my, my serpentine
Ooh, I want to hear you scream Welcome to the jungle it gets worse here every day
Ya learn to live like an animal in the jungle where we play
If you
Just like....CHINA!
The Fed is setting up the public sector for an even bigger failure.
These folks in DC will never learn.
Last step to a world currency that is not the dollar.
A Global 'Euro'... run by unelected and unaccountable and almost certainly unkown individuals. How wonderful for all the Global Financial Elite and their parasitic/predatory enabling minions.
Don't think they are going to make it in time however unless Russia and China are already in on the scam...
Money laundering in the construction industry?
Cannot do that without a few banks receiving deposits and allowing withdrawls.
Tranactions and accounts exempt from IRS red flagging.
I'm sure that isn't happening in America!
Tivoli in Summerlin is a classic example. 50% occupancy of stage 1 and you'd think the'd stop until leases caught up...nope...stage 2 and 3 already buliding out.
Last time around half of Las Vegas construction was funded through Lehman. We were left with empty half finished buildings and a Strip so overbuilt they had to make up a story about construction defects to tear a big brand new hotel dow. Malinvestment looks just like this.
seeing a lot of big houses being built on builder speculation. builders will keep building as long as they can get credit. now with easy owebomba financing everyone can buy a 3000+ sq ft house.
In construction, credit is an income. If one asshole will finance it, it's a foregone conclusion another asshole will build it. And draw an income off of the "construction ".
I don't give a hoot what the project is. Snowball stand, apartment building, warehouse..... Once the loan docs are signed, it is a giant sigh of relief. Kinda like holding a winning lottery ticket. Ok, boys, we got some dough to play with.
And with the banks standards now full retard, your even more special when you get financed now! I mean, your privileged. It's the world I live and work in.
Pardon my skeptisism of the above bloomberg chart, but Im calling booosheeit. I live in a suburb of DC. One of weathiest counties in the country. Back in the Heyday of the Magoo and Fwank induced everyone should be homeowner you couldnt drive 1 mile without coming across home construction. Now, NOTHING< NOTHING...
Anecdotal ..just saying..boosheeit on this fucking chart..
I believe private construction spending would include commercial and multi-family, as well.
I live in Brooklyn and the number of new high rises in downtown Brooklyn is insane. The skyline is peppered with cranes. There are also TONS of new smaller multi-family condos and such popping up everywhere.
This summer is going to see a big supply glut and real estate is going to take it's first real hit.
This is, of course, based on my highly technical and proprietary "eyeballs and brains" model, which more folks need to learn to apply these days.
It's been a couple months since I have been to DC. But coming in from the east, on NewYork Ave, I've made it sport to count tower cranes. I've lost count at 25 before.
I designed and Engineered five seperate million dollar plus homes last year, on spec for a new wave of finance geniuses turned developers ( The last wave had a lot of Attorney turned developer geniuses). I told them not to do it, dont make them so big or exspensive and basically they told me they know the market better than the Architect. So now they sit with 5 million dollar homes, unsold for over a year complaining that there is no inventory, there are price wars, how come they arent selling? It's almost like these I-Banker guys actualy believe their own bullshit. Just this morning in the Sunday paper I read another article about bidding wars on homes and price increase due to lack of inventory and spit out my coffee laughing.
Sunday paper? It's like a flashback to 1995.
I designed and Engineered five seperate million dollar plus homes last year, on spec for a new wave of finance geniuses turned developers ( The last wave had a lot of Attorney turned developer geniouses). I told them not to do it, dont make them so big or exspensive and basically they told me they know the market better than the Architect. So now they sit with 5 million dollar homes, unsold for over a year complaining that there is no inventory, there are price wars, how come they arent selling? It's almost like these I-Banker guys actualy believe their own bullshit. Just this morning in the Sunday paper I read another article about bidding wars on homes and price increase due to lack of inventory and spit out my coffee laughing.
thanks for the personal anecdote. it was interesting.
here in denver they seem to be building only big upscale homes and apartments/condos. And putting in a lot of new mobile homes....
The way that I go every morning to work is an older (70s era) neighborhood that is under going an unbelievable renaissance. Not a week goes by that they are tearing down a ranch sytle (3 or 4 bedroom sized house in the 2,500 sq ft range) and putting in place a 5 thousand square foot HGTV Dream Home Giveaway type house. Been going on for the last year to year and half, and showing no signs of slowing. They do appear to be selling. It is a suburb near Atlanta, so I bet they are all Atl Federal Reserve employees! Crooks....sigh.....
But are they selling for the asking price? Developer incentives baked into the price?
what was once public spending on construction
become private spending on "utilities" construction
or reconstruction or infrastructure modernization?
i wouldn't know. anonymous octopus, ownership, is sailing,
sailing all the seas.
There are no bulldozers sitting idle in NC
I am in the process of trying to buy a 1400ft cabin at the top of a mountain. I am asking comparable price as another foreclosure and fannie mae still holding out. I am about 40k under asking.
The future has already been written. It is obviously going to turn out ugly in untold and unprecedented ways, but no one knows when until it manifests itself to the masses. With that said, there is nothing new under the sun, for all is vanity like grasping at a breeze.
The final inning in the banker game will be to get the consumer to accept massive unemployment, massive inflation, and government monitoring and control of everything so that they can get you and your future generations to work as cheaply as possible in order to pay for their QE ponzi and everhthing it has created as far as debt to fall to the consumer. The unknown is at what point all this bread and circus becomes blood and revolution.
Thank god for the black economy.
Where would we be today without it?
In the Cincinnati area, the major constructions are always on government subsidized projects or large tax incentive corporate construction; mostly the former. The joke is the best thing Northern Kentucky has going is the Cincinnati City Council. They are spending tens of millions on a "street car"; yep a street car for a city and county that already built two stadiums on the back of tax payers and had several mayors and council members caught taking "kick-backs", but no one is in jail. That is because there is no straight white males that have been "busted" or framed yet. With a homosexual and African-American city council; you can't loose and can't be prosecuted (TPCTJ -Too Politically Charged To Jail"). For a city and county in lots of debt; you can see what the future will bring; I doubt the "Street Car" will be fully operational and it will NEVER have a positive return, but it looks and sounds "NEAT".
Don't you know that the only thing holding Cincinnati back are the streets which need a 'street car'. This goes for California whose hoping the bullet train from Fresno to Merced will get done soon so people can make that arduous trip in a real hurry.
Just import another 11,000,000 people through 'comprehensive immigration' and bingo over supply problem solved.
Just like the USSR. People can't afford houses? Build more and then bulldoze them! Retail vacancies hit unprecedented highs? Build more mini-malls and bulldoze the old ones!
This lunacy will end when it gets ended for us.
i'm hoping when they open up the local walmart as living quarters, i can get a spot near the rest room...but not too close if you know what i mean...what with all the plumbing issues and such.