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One Economic Datapoint, Two Vastly Different Interpretations
Earlier today, Case-Shiller reported that in May, housing prices dropped by 0.18%, the biggest decline since July 2014. Hardly a euphoric validation of the Fed's rate hike intentions.
So what was the mainstream media's take on the topic? It all depends on who you ask.
or the WSJ.
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WSJ has always been a propaganda mouthpiece for Wall Street. You are more likely to find devils in heaven than truth in the WSJ
+1 Agree
... lust in translation ...
I don't know how this can be true. Case Shiller uses lagging information that is 90 days old and typically takes even more time to publish a report. I'd be surprised if they had already processed May's data.
"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way."
Gotta' love that spin, bitchez!
Tsk, your applying reality to a fairy tale and that's not allowed......
Grab the popcorn and watch all of the "experts" laugh - wait, not just laugh but disdain, ridicule and berate Peter Schiff on Fox back in December 2006 for saying that we were no where near a "housing bottom". https://www.youtube.com/watch?v=_HFNJw7xGSA
Those who forget history...you know the rest.
Well, prices solidly stalled...
I think it's worse than that. In an environment of miniscule volume a few mansions or luxury condos sold while other inventory languishes despite drops in asking price COMPLETELY skews the median. In the bubbly areas price appreciation for the low to middle has been non existant for a year. In fact you're seeing price REDUCTIONS. But again 2 mansions selling vis a vis 2 small price reduced SFHs is enough to skew the median up or flat.
Bloomberg has a report about Trump selling a penthouse ofr 40% off asking price after lising it for 2 years.
most everybody owning a home built the last 40 years is in some sort of planned development.
I have 134 units in mine of which 27 are my model.
I have a lot on the golf course and since I am older my house is upgraded nicely and since I do not have kids, the house is in good shape.
The same hous with a family, not so upgraded and not on course sells for 500k 3 months ago and mine goes this month for 600k.
Is that really 20% price increase?
or a flipper buys a house for 250, and puts in 60k and sells for 350. Is that really a 40% increase?
or a flipper buys a short sale for 200, puts in 20 and sells for 300. Is that really 50%.
I hope you get the idea. Calculating prices increases is total BS. Even if done on a square foot basis it means nothing, becase of location, condition and upgrades.
once homes in silicon valley and SF (and other very costly areas) stop selling it changes the game.
Chinese are paying cash for homes in the Bay Area. Illiterate farmers they are not. My understanding is that they are using front companies and working with local agents. They buy up 3 or 4 contiguous lots at a time, demo everything, and build 2- or 3-story town homes at triple the density. The original lots with one home might go for $600K per, the resulting town homes fetch $1.1M+ each, 2 or 3 to the lot.
This is the power of cash. The rolling failure of our local debt-based economy only plays into that strength. The situation around here is extremely grim. I was offered twice what I paid for my shabby place, but it was not nearly enough; I work in Silicon Valley and need to live here, if I had taken the money I would have become a renter even at a 2X multiple in 10 years of ownership (I still owe a lot on it).
But this is the only actual use for fiat, exchanging fictional wealth in one place for real wealth in another. Here in the Bay Area we are being eaten alive by it. It's insane. It's like a fire.
Not to worry, I hold stock in Pets.com, I mean myspace...whatever San Fran will never go down...unless there is an earthquake...or you live on top of a hill...but Silicon Valley will keep everything together with magic internets of everything wisdom!
Look! A diamond encrusted unicorn turd!
everything is horribawesome!
Why stop there. Take it to the next level. The obama admistration says about housing, "Its the best it has ever been under my plan"
Yes, and we didn't really "lose" the baseball game, we came in second. Bullish!
If all it did was drop 0.18%, then in the new double-seasonally-adjusted-blame-the-weather-disinflationary times, that represents a solid up-tick.
Double-Plus Good!
Sure, solid, resting on a foundation of declining incomes, ZIRP, $18 Trillion in debt, and one year of $79 Billion per month of .gov buying Mortgage Backed Securities and Lord only knows what other crap from the TBTF banking cabal.
The whole fucking Ponzi rests on pillars of salt.
… and NOT very good salt!
Cue the rain........
Did the Reuters piece come out before the WSJ (in time enough for a tap on the shoulder...)?
Someone at Reuters just lost their job.
More like, back to the re-education camp. For real. The only way to keep your job in Big Corp America is to push the corporate propaganda agenda all the time even in your sleep. If you lose your job by being too truthy, on the next job you dial that back a little. You ask permission more often. You smile and overlook things. In a few years you don't even notice what you have done to yourself all you notice is that you have a job, you just got a promotion, your wife looks better after that last breast augmentation and your children are doing better on their new meds.
Liv'n da life, niggas.
it's an even bigger line of bullshit if you work for a brokerage company or a "financial asset management" firm. The more often the lie is repeated the more it is accepted as the truth.
Your truth was never more than an agreement about events. Humans make shit up as they go. All the time. About everything.
I am an animal, I look at all the things humans accept as true and from here you all look completely unhinged.
Well, I think they're just covering their bases - it's the "stopped clock" syndrome - so they can point back to one or the other article and say "See, we were right!"
The WSJ article was supposedly written by one Laura Kusisto, who should take up an honest living, like streetwalking or selling heroin, or maybe even both. She must have to avoid her eyes when she looks in a mirror.
Media outlets all have their own propaganda lens ,rosy or dark they all distort the news with their message.
Lumber is laughing.