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Obama Abruptly Waives 1980 Foreign Investment in Real Property Tax Act
Submitted by Gordon T. Long of the Financial Repression Authority
Obama Abruptly Waives 1980 Foreign Investment in Real Property Tax Act
The Financial Repression Authority has consistently shown that Regulatory changes which “Ring Fence” US investors choices is a cornerstone of the Macro-Prudential Policy of “Financial Repression”. Through stealth programs like FATCA and PFIC the US government has steadily and quietly limited Americans ability to take cash out of the country and to invest abroad, other than through profitable public exchange traded products sold by the financial industry. However, it is one thing to shut the doors to American investing abroad but it is quite another to fully open the doors to foreigners! It begs the question why, why now and why the change needed to happen so urgently?
This week, as the BOJ, ECB and PBOC all continued to aggressively expand credit the Federal Reserve was “full ahead” in the process of withdrawing approximately $1 Trillion of liquidity to achieve its December FOMC decision to increase the Fed Funds rate by 0.25%. To counteract this policy initiative and the alarming collapse in the HY & IG bond market, the US government immediately opened the floodgates to easy foreign credit in a major policy reversal. A policy decision which was rushed through congress with almost no time for congressional debate. Obviously what was not lost on the White House was the fact that the now troubled $2.2 Trillion of High Yield bonds peddled to yield starved investors since the financial crisis matches 2/3’s of the $3.5 Trillion increase in the Federal Reserves balance sheet during the same period.
FIRPTA was implemented during a better era for Americans in response to international investors in the late 1980s and early 1990s buying U.S. farmland, as well as the more publicly visible buying of trophy U.S. property by the Japanese. The US government has now expediently waived FIRPTA.
President Barack Obama signed into law a measure easing a 35-year-old tax on foreign investment in U.S. real estate, potentially opening the door to greater purchases by overseas investors, a major source of capital since the financial crisis.
Contained in the $1.1 trillion spending measure that was passed to avoid a government shutdown is a provision that treats foreign pension funds the same as their U.S. counterparts for real estate investments. The provision waives the tax imposed on such investors under the 1980 Foreign Investment in Real Property Tax Act, known as FIRPTA.
“FIRPTA has historically made direct investment in U.S. property a non-starter for trillions of dollars worth of foreign pensions,” said James Corl, a managing director at private equity firm Siguler Guff & Co. “This tax-law modification is a game changer” that could result in hundreds of billions of new capital flows into U.S. real estate.
Foreign investors have flocked to U.S. real estate since the global economic meltdown, drawn by the relative yields and perceived safety of assets from office towers and shopping centers to apartments and warehouses. The demand has helped drive commercial real estate prices to record highs. Many foreign investors structured their purchases to make themselves minority investors and bypass FIRPTA.
REIT Purchases
The new law also allows foreign pensions to buy as much as 10 percent of a U.S. publicly traded real estate investment trust without triggering FIRPTA liability, up from 5 percent previously.
“By breaking down outdated tax barriers to inbound investment, the FIRPTA relief will help mobilize private capital for real estate and infrastructure projects,” Jeffrey DeBoer, president and chief executive officer of the Real Estate Roundtable, an industry lobbying group, said in a statement.
Cross-border investment in U.S. real estate has totaled about $78.4 billion this year, or 16 percent of the total $483 billion investment in U.S. property, according to Real Capital Analytics Inc. Pension funds accounted for about $7.5 billion, or almost 10 percent, of the foreign total, according to the New York-based property research firm.
“Foreign pensions are such a low percentage of foreign investment in U.S. real estate because of FIRPTA,” Corl said.
Investment Surges
Foreign investment has surged from just $4.7 billion in 2009, according to Real Capital. Foreign buying this year as a percentage of total investment in U.S. real estate is about double the 8.1 percent average in the 10 years through 2012.
Despite a perception that FIRPTA was a response to the wave of Japanese buying of trophy U.S. property in the late 1980s and early 1990s, including Rockefeller Center and Pebble Beach, the act was actually passed in 1980 in response to international investors buying U.S. farmland. Under old rules, foreign majority sellers had to pay 10 percent of gross proceeds from the sale of U.S. real estate as well as additional federal, state and local levies that could increase the total tax burden to as much as 60 percent, according to the National Association of Real Estate Investment Trusts.
The change “is a huge deal,” said Jim Fetgatter, chief executive of the Association of Foreign Investors in Real Estate. “There’s no question” it will increase the amount of foreign investment in U.S. property, he said.
Warning
The FRA predicts that Americans will face significant increases in US property taxes over the next five years starting in 2016. With the change in FIRPTA Americans should additionally expect property values to increase in 2016-2017.
Clearly, foreigners, the “1%” and property owners will all gain from this, but most Americans will simply face significantly increasing property taxes on elevated asset values to fund the ever increasing government debt burden.
Americans owning a house can be expected to initially focus on their net worth being higher, and not that they once again will have even less disposable income. Some will learn painfully why the number one killer of small business is cash flow, not profits..
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We are getting the shaft...over and over. Just got my health Insuarnce bill yesterday. starting Jan 1st...up 11%. Then I watched that bitch Hillary last night...she has a bladder problem...LOL She didn't make it back on stage after a commercial break...yikes. Merry Christmas to all at ZH. Love the site...and if you are offended by me saying "Christmas"....go fuck off.
Everything a governement touches, turns to crap - Ringo Star
This will strengthen the US dollar.
Bend over Americans and grab your ankles ....
So taxation without repesentation?
The Fed has changed the game some. They may yet announce more QE BUT!
In the meanwhile, some of the shadow inventory must be moved in the interim.
So banks, hedge funds and private equity need some buyers right now to move some of that inventory.
The show must go on after all!!
Houston apartment vacancies climb as energy, construction layoffs mount
http://www.bizjournals.com/houston/morning_call/2015/12/houston-apartmen...
I just posted this on another thread but it's astounding to hear the truth from a major player in the apartment rental business compared to what the DC-controlled "everything is awesome" media reports.
The sharp rise in aprtment vacancies, the inability of developers to get loans since banks no longer have faith in "house prices never drop" mantra, and the shrp slowdown in sales in many marlets shows the true gloom in the housing market now. Commercial RE is in even worse shape I read unless you are in a strip mall and run a vet clinic, Starbucks, car wash or a nail salon.
buy stuff here so we can nationalize it when we go bust.
Thanks!
It was a payoff to the ChiComs to keep buying our bonds.
Why would Obama make an urgent move to encourage foreign investment in US? Simple. He is desperate to push off the fall of the house of cards till after he leaves office. Trump just yesterday said as much: http://www.bloomberg.com/politics/articles/2015-12-19/trump-predicts-u-s...
& just like that! with the stroke of a putter (I mean PEN)! Policy is conducted in the USSA!
No only when progressives are in power.
You mean "progressives" Like George W. Bush? Unless you are just blatantly calling anyone and everyone for 100 years progressives, who vote in a sell out way you are full of shit. The reality is BOTH parties, regardless of what they espouse have sold Americans down the river. A huge amount of what has gone wrong in the past 15 years can be laid at the feet of REPUBLICANS who controlled ALL THREE BRANCHES of government from 2002 to 2006 and yet what was there huh? More of the same. Because what is REALLY the problem is FASCISTS. Say it with me FASCISTS! You know like HW Bush, GW Bush, the Clintons and Barack Obama. Guys like Rubio and Cruz. All Fascists. All the Republican and Democratic congressional leaders from the past 20 years and on and on.
Please though, keep trying to lay the blame at the feet of progressives instead of FASCISTS so you can continue to divide the common people against one another. Nobody likes Fascists, but quite a few people believe that Progressives are people who try and help out those who have historically gotten the shaft. Barack Obama is a FASCIST he's about as progressive as Mussolini and Hitler.
I wish people would quit with the Democrat vs Republican, Conservative vs Progressive, Liberal vs Libertarian bullshit labeling. It's FASCIST GLOBALISTS who can say they are whatever the fuck they want. The point is when in office we need to look at voting records and by that measure OBAMA IS A FASCIST just like George W. Bush before him. Fascism is the problem it has a name. It means the merger between state and corporations in a crony capitalist TOTALITIARIAN system of governance. It's not Socialist, it's not "Progressive", it's certainly not Libertarian or Green Party. It's FASCISM for fucks fucking sake let's call it what it is so we can get some traction and maybe change things. Blaming it on Democrats, or Liberals or Libertarian Tea Baggers or Republicans is bullshit. It's the GLOBALIST FASCISTS that are the problem. Period. All the rest of those labels divide people. If you only criticize one party you are the very definition of an Idiot in the old Greek root sense of the word. One who knows NOTHING about politics.
+100. Thank you. I have been wanting to type that for days.
People need to stop with the red or blue flag waving or name calling and see it for what it is - we live in a Facist state.
Progressives are individuals who believe there is a governmental solution to individual problems. Their first article of faith is that everyone is a blank slate and with government intervention they can be perfected. Just like the communists and the fascists, they believe that central planners can more properly direct individuals.
I suggest you read the Constitution and then learn the rules of the Senate. Unless you have 60 votes in the Senate, which only the Dims have had in my lifetime (in 2009 - 2010), they can block anything the other Party wants to do. That includes the Prez unless the Prez is a lawless bastard like BO and just enforces laws he wants enforced. The ones he doesn't like.... fuck'em, don't enforce them. Point being, Dingy Harry and the Dims blocked everything Bush tried to do with reforming SS, Medicare, tax code, etc. etc. etc.
You need to pay more attention to what in hell goes on in DC. Check the national debt on 12/31/2008 to what it is now. You have been seriously out of touch for the last 15 years. Comparing Bush to BO is like comparing a street corner drug dealer to Osama Bin Laden. Yeah, both are bad, but hardly comparable.
"...what has gone wrong in the past 15 years can be laid at the feet of REPUBLICANS who controlled ALL THREE BRANCHES of government from 2002 to 2006 and yet what was there huh?"
Not Republicans - NEOCONS!
Yeah, like the American people wanted to invade Iraq?! Get off the Heglian thing. All these major politicians of whatever stripe were captured long ago or you would never have heard of them.
Exactly right.
Exactly right.
This also 'bails-out' much of the commRE sector, which is poised to collapse. Loads of commRE investors (BANKS & assorted managed wealth funds) will now be doing their best to unload US commRE to any/all foreign buyers, ASAP.
But allowing foreigners to buy US farmland is damn-near treason, IMO. Farmland was already too expensive to facilitate transition to a younger generation... now, such a transition will have to go first through a foreign buyer/seller, as no young US farmer will be able to afford farmland for the foreseeable future.
These moves will at best slow the collapse, not prevent it. This legislation as well as the Fannie Mae loan which allows non-title-holder income to be included in loan qualification, are designed to influence a soft landing that ain't happening. They cannot increase the pool of buyers enough to cover the over valued assets. At best they can prevent a sudden collapse. That said deflationary pressures are nigh impossible to divert until some tangible form of price discovery is found.
At best they are trying to extend the peak-to-trough period as long as possible. Again we seem to be looking to Japan for guidance. Better a multi-decade Greater Recession than a few years of honest price discovery that destroys the oligarchs paper wealth and all to real control.
http://www.texasmonthly.com/the-daily-post/oils-price-drop-is-spreading-...
It's an effort to assist all the money laundering through US real estate while keeping the bubble going just a little bit longer.
Every MSM article I have seen on Trump, every single one carefully hikes its rear leg and pisses on his parade. Easy to discern the outline of the Beast opposing this man.
Well, I know who they're telling me to vote for. Psychology 101.
Yep. It's a pre-bankruptcy sale. Thanks again DC, sarc.
You got that right Hand Full O Dust. Home sales in my region are weak, bank stocks high (starting to cave), and REIT index high (starting to cave). What is a banker's shill to do but keep those sector stock from cratering? Just legislate to open the doors to high net worth oligarchs and investment firms to buy into those companies' stocks. Ergo, stop the gap down hopium.
Result is to attempt to halt an impending drop in asset value or blow the bubble even bigger. As rents and building costs climb from this move, fewer Americans will be able to afford rent and home ownership. Ergo, fewer renters and buyers leaving investments being eaten up by overhead costs with slowing income.
Let's see if the IYR jumps tomorrow.
FTFA: "There’s a silver lining to the oil slump however, Verma said. As vacancies mount in Class B and C properties, there may be opportunities for companies like Verma’s to purchase properties on the cheap, he said."
Yeah, BTFD!!
JRobby, The show must go on after all!!
This is a brilliant move by Obama. Keep in mind that the US needs to keep inflating its economy to survive. Deflation collapses the system.
And the government can always tax these foreigners later on. These are mostly dishonest money, anyway.
I know. We all want to see deflation, right? After all, my healthcare insurance went up over 30%, if I am not mistaking.....don’t have the exact number in front of me.
Deflation = more freedom. Inflation = enslavement. In this case, DC is willing to sell some of us to foreign interests.
And pricing the middle class and poor out of everything won't collapse the system? They want to keep prices up to pay for bloated government (taxes) and enrich TBTF banks.
TPTB will certainly hope that this offsets any anticipated future weakening of the USD as, in my opinion, that is precisely what the government is hoping to accomplish by letting down a historic barrier to increased foreign investment.
Now, ZeroHedgers, what do you think will be the outcome of such quickdrawn policy change? That is, in the end, once the uppermost beneficiaries, both domestic and foreign, have taken their pull at the teet, will there by anything flowing?
Long powdered milk...
2016 rally of the USD due to FIRPTA being removed
2016 continued weakening of the USD due to poor technicals and market psychology
The gamblers are begging for an excuse to buy.
As intended, this will attract foreign Oligarchs, especially the Chinese ones.
It's called the Mudas Touch.
Instead of gold, it's shit.
Too much to hope its stage 4 bladder cancer., I suppose.
Those foreigners buying that land you want next door? They dont have to pay Preezycare taxes! Great example of giving the real estate to foreigners, courtesy of the failed nation-state that is US Fedcoat .gov.
So I guess this means that the 'dual passport' Israeli's are moving HERE, (instead of Madagascar).
I guess more people are running away from US so this insensitive may not bring much anticipated money in. Chinese government is very serious about money leak from the country.
US gov will sell off National Parks next.
Agstacker
Not sell them but give them away to the Chinese as Chinese Embassy gifts (soverign property of China where YOU can't nor the police can't go)
Too much to hope it's polonium poisoning, and she'll die a prolonged painful death, withering away to a final slither of shit on a hospital trolley, with all the press documenting it for posterity, and my personal shits and giggles, I suppose.
@ Winston.... It never ceases to amaze me how ONLY on this site...nobody holds back. Thank You for that laugh out loud. +1 clicked.
Winston- Hillary has been covering up an illness for years (probably a heart condition). Remember her fainting spells and that one that was so bad she passed out, clonked her head and wore those super-thick glasses afterwards? That was NOT "dehydration" like they claimed.
I know, probably an inoperable brain tumor pressing on the optic nerve,amongst other things.
Some could argue her whole skull is filled with a malignant tumor.
Can't wait to see how the Clintons spin not releasing her medical records.
Her email saga is far from over IMO, so she has a gracefull exit.
'email saga' would be a euphemistic term for 'violate-my-sworn-obligation-to-use-only-my-assigned-gubmint-email-account-for-any-and-all-official-email-communications-,-and-instead-establish-my-own-domain-and-run-official-email-communications-through-server-located-in-a-closet-in-my-home-,-and-then-endeavor-to-cover-it-all-up' saga...
She is 'venal' personified.
Only a saga because of how long its dragging on.
The Praetorian guards are going to get very antsy if it gets covered up.
Could turn very Greek.
The FBI will recommend prosecution to the DOJ but not announce that they have done so. Their stand will be leaked. The DOJ will decline to prosecute. A day or two of news then it's all forgotten.
Hillary is merely one "cell" in the larger tumor that is D.C.; and ain't it a wonder that the "excisists" can only manage to target schools, churches, and organizations that help the disabled!
@WC,
She was using numerous devices. Been wearing a wig too.
EMF knows no net worth and is an equal opportunity killer.
Ask Teddy Boy Chappaquidick Kennedy.
Hitlery's Owners...see a trend?
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015...
Canada is a surprise.
Society for "Human Resource Management" not so much.
Animal farm.
Jewish United Fund - $400,000
largest donor on the list
So will Bill be her VP?
true, it was not "dehydration" but it was the fact that she is losing synapses connecting what little she has left in that lying factory inside her noggin
Its obvious Hillary had a small stroke and, as often required following a stroke, she wore thick fresnel prism glasses to correct for a temporary vison distortion that followed the stroke.
Yep, our "Representatives" and "Public Servants" in Govt are tripping over one another in a race to sell out the general public.
It is all pocket money to them.
We do occassionally hear of them having taken what amounts to 'pocket money' bribes, probably after they've pissed off the wrong people.
What makes it even more frightening is that many of them can be bought for so little.
They are only doing it for our own good. I'm sure it hurts them more than us. Their sacrifices will be written of for centuries to come.
In all honesty, this actually has more to do with public infrastructure development using foreign pension funds and not residential real estate... P3s with highways, water, airports, energy, rail, etc.
Bullshit. It has everything to do with the crony capitalists, 1%ers and politicians getting their taste.
It has everything to do with raising taxes by hook or by crook to contiue to assimilate the entire economy and economic salves under the government's thumb.
Their biggest sin is that they don't care. They're indifferent to us
And I'll second that Merry Christmas and if you are offended by "Christmas", may you choke to death on your Holiday dinner
woah -- I'm not saying its right or wrong, just giving a different opinion based on what I'm seeing in different markets (infrastructure). You can downvote me all you want, I never said it DIDN'T have anything to do with 1%rs or cronies... read my post again... it's selling US infrastructure and real assets to foreigners... not little fucking houses, our highways and rail infrastructure.
Merry Christmas to you too, you capitalist-holiday-celebrating prick ;)
and 2 - it's a way to bailout underfunded domestic pension funds by selling muni-owned assets to foreigners.
I don't know if you've ever seen my other posts where I state that I'm buying rail or other infrastructure and companies -- but I am. I'm white, I'm American and I'm 'one-of-us'. I'm a few weeks away from buying a company to save 40 US jobs and then hire additional workers. I haven't given up on this country nor do I plan to. And, I'm only in my early-30s with no outside capital but what I've piecemealed together myself.
We're all getting a bit "touchy"....this shit has all gone all for too long, with each corrupt manipulation being used as justification for the next. Trust in this government is DEAD.
Just part of the transition as the US becomes more like Greece,
and many other third world countries,
governed by a lying, two-faced president,
who facilitates permanent public debt servitude,
and auctioning off the nation's property and rights (TPP etc.)
to the global bankster syndicate.
Not to mention BHO's Wahhabi friends buying up assets and, by extension, politicians of the future.
Imagine the Imperial Powers given to Donald Trump.
I can hardly wait...Just think what he can do, he is quite bold.
this tells you a lot of muni-bonds are about to detonate as local business activity dries up. They're gambling on an influx of foreign cash to drive up real estate to increase property tax revenue.
BTW watch that ACTUALLY turn out to be Fed Bux laundered offshore and then back domestically into real estate to hide the fact Fed.Gov is once again screwing its own in desperation to keep the muni-bonds solvent.
Where is the inflation? Well, let's see.......My company's health insurance costs for next year got hiked 37%. My property taxes went up 8% last year. My property taxes are now like a second mortgage, except I'll never pay it off. Food costs keeps rising (while package sizes shrink). The cost of ammo keeps rising (if you can even find it in the stores anymore). That's where the inflation is.
Yeah, gas costs went down, but not a major expense as my commute is only 10 min long anyway & I ride my motorcycle half the year. Oh, and TVs are cheaper. But I only buy a new TV once every 5-6 years anyway.
On top of all that, the interest I get on my savings is just about zero. But, if I have any kind of balance on my credit card, I have to pay 19.99%. Sounds fair.
So, basically, inflation is UP on all the things that DO matter and down on all the things that don't. It is painfully fuking obvious, yet the current crop of Central Bankers can't see it. Or, more likely, pretend not to.
rgb - see, this is the problem. "Oh, and TVs are cheaper. But I only buy a new TV once every 5-6 years anyway."
Don't buy a Tee Vee. You fill your head with sewage, you are gonna have problems.
I watch very little TV these daze. And most of what I do watch are movies off my streaming service.
Of course, during my formative years, I watched a shitload of TV. So the damage is already done.
Yabba dabba rubble...time for the next Real Estate Bubble..
>>>>that bitch Hillary last night...she has a bladder problem<<<<
Red Dragon to Team Depends. Red Dragon to Team Depends; there is a leak in the White House.
" Then I watched that bitch Hillary last night...she has a bladder problem'
She has much more than a Bladder problem. The biggest problem is between her ears!
My Health insurance also jumped, but only 9% this year. I believe the big jump will come in 2017 which will likely be between 30% and 100%. I'll probably dump it at then end of 2016 as I suspect most americans will too, although many americans may start dumping it this year as the rate hikes in some states may be just be too expensive.
Maybe not. The Trumpinator says he will get rid of ObummerCare.
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All that inflation we have exported for 40 years has to be allowed to comeback eventually.
Yes, the big glob of goo the Greenspan sent out ten years ago in his panic manic printing has been wandering the globe and now wants to come home
MERRY CHRISTMAS HOHOHO!
Merry Christmas!
I'm sorry but you are not allowed to say the "C" word anymore.
Also, take down that Xmas tree before the senitive progressives in your neighborhood pull you out of your house and burn you at the stake.
And a happy New Year!
More "Change" for American Citizens. My bet is that this was not just Obama, but the Republicans as well. The GOP sold out entirely, and no longer are the "opposition party", but they pretend so it looks good. Can't have a "good guy" without having a "bad guy" to compare to.
Wasnt it about this time in the early stages of US History when the guns came out and a few real Americans decided to fucking kill the bad guys?
"The GOP sold out entirely, and no longer are the "opposition party","
Yeah, We now have a single party system, we just get to public between to candidates that offer the same thing, but just say it differently.
Futurama - The thrill of politics (Jack Johnson vs John Jackson Debate)
https://www.youtube.com/watch?v=Ll3iyvbsRDM
They were never opposing each other, just the faux opposition for the camera.
And there is no big bucks domestic or otherwise to begin buying any damn thing so the FED will proably be doing the back door buying...
Farmers have been getting shafted by banks, markets and administrations for years. Just ask the Ranchers fucked over by Jon Corzine or any family farm.
I wonder how Dianne Feinstein and her husband makes out with this? How many farmers on BLM land will get booted and have foreign hedge funds et.al. acquire that land?
Thanks for the downvotes, Flakmeister!
Making it easy for foreign suckers to buy before the crash.
Houston’s housing market is shifting from a seller’s market to a buyer’s market, according to a new national report.
The Bayou City saw the second-highest home inventory increase nationally, according to Redfin Corp.’s latest housing market tracker.
http://www.bizjournals.com/houston/news/2015/12/18/home-inventory-grows-...
Barry and the NAR are desperate now that the RE market is starting to plunge ... ooop,s I mean revert to the mean which means down 40-60% in many overpriced locations
Exactly, Banks, Hedge Funds & Private Equity still hold a lot of RE that they will need to sell now as markets dive. They need the cash! Bonuses are coming up!
texas toast.
Houston’s housing market is shifting from a seller’s market to a buyer’s market, according to a new national report.
This doesn't make sense and it's not in the article?
I live in Houston and I'm not seeing it. New construction in my neighborhood starts at 750K and goes up to 1.2 million for houses that were thrown up overnight and are practically stacked on top of one another.
<< Houston’s housing market is shifting from a seller’s market to a buyer’s market, according to a new national report. >>
It's the very first sentence. Put down the Bong ... it's too early.
I see it now. I suspect I now see a summary because of this: You've reached your 3 ARTICLE LIMIT for this 30 day period
http://www.bizjournals.com/houston/blog/drilling-down/2015/12/houston-oi...
BTW, retail sales in Houston area are way down...a yuuuuuuuuuuuuuuuuuge drop month over month and yoy.
Looks like you over bought there, Pard.
Not me. I bought a house with cash built in the 20's on a good sized lot about 10 years before this clusterfuck started.
They were doing that in 2006 and 2007 too, right before everything went to sh*t.
Who has the biggest 'stash of Dollars'? Chine, right?
No doubt, along w/ odummy's sign off on elevating the BRICS bank status within the IMF, this was another thing the Chinks demanded to avoid them pulling the plug. This way, China has one more desirable thing (besides gold) to purchase w/ their 'stash'.
.
They sold a stack of our treasuries. So now we get it back?
"Who has the biggest 'stash of Dollars'? Chine, right?"
US federal Reserve as unlimited number of dollars, and unlike China has a license to print as may dollar as they wish.
"This way, China has one more desirable thing (besides gold) to purchase w/ their 'stash'."
FWIW: its mostly Chinese & EU business people looking to get there money out of their homelands. China has capital controls in place, and one loophole is to buy property overseas. In the EU, they have negative interest rates and a flood of refugees that is causing taxes to soar.
However, I am not sure if this law change will drive up RE much further. I suspect that the smart money is already out of China and the EU, and I don't think there will be a title wave of foreigners looking to buy US RE. Simply because they don't have any cash left to get out. Also the dollar has been going up as the EM/EU implodes which is making US assets more expensive. Perhaps I am wrong, but that the way I see it as of today.
I expect the O-man to make a lot of speeches overseas, especially in the ME, when he retires.
Yes, $1MM a speech to hear his great learned wisdom (or is it actually for repayment?).
The whole speech-for-fee scam is nothing but a system for thinly veiled bribery payments.
There will not be any demand for him.
Gitmo Guys LLC is already booking a speaking tour for him and his soon to be Senator wife.
"his soon to be Senator wife"
He/she.
I see this as a way to encourage outflows from EM's, the Chinese have got money (Regardless of the anti-Chink fear porn weekend Tyler posts) and U.S.gov wants, NEEDS, this money to go into Dollars, U.S. property, businesses.
Why?
Because more and more people, who used to invest in the U.S. (You remember when the U.S. had a middle class) now can't afford to, 'What disposable income?'...gone!
So, yet another move by the desperate U.S.gov and its handlers to maintain Dollar hegemony.
The U.S. Dollar is in its vinegar strokes!
Here's what I'd like to hear from a politician in a debate...or, ultimately, the president of the United States; The middle class could help itself by buying goods made in the USA. That would mean avoiding phony foreign made American brands. And by essentially refusing to buy foreign goods. Same goes for the lower class and upper class.
In the United States a good spending Christmas season mainly helps China and the rest of the world. Our spending is where China gets the money to buy up property here.
When people realize how desperate they are they start doing things to help themselves, and stop doing what's not in their best interest.
American consumers are the ones who have sent their jobs overseas, but is little different from all else that plagues us....something for nothing. It is what is driving ALL of the markets...even home buying. People used to buy a home to live in and now they are all "investments"...buying more and bigger than you need so as to ride the fed generated inflation bubble to sell in five years for a fat (but illusionary) profit. The consumerist, corporatist economy feeds from this but like selling crack to an addict, they find their customers less and less able to pay. The answer of course is credit which is like compounding the addiction of consumption with that of credit
"That would mean avoiding phony foreign made American brands. And by essentially refusing to buy foreign goods. Same goes for the lower class and upper class. "
its very hard to manufacture stuff in america due to the Sh*tpile of regulations. Only very hard margin products make any sense. That said, bringing home manufacturing would help some, but not return to the days of the 1950's, 1960's, as most production would be highly automated.
"When people realize how desperate they are they start doing things to help themselves"
LOL! When people get desperate, they just call for more gov't "to fix the mess that gov't created in the first place". What you stated would only work if the IQ of Americans was substainally higher than it is today. I doubt the average IQ in the US is anywhere near 100, probably closer to 80 or 85.
Whatever gets in the way of manufacturing here must be, within reason, corrected. But its more than a dollars and sense consideration.
Broadly, does Levi's make anything in the United States? Very little, if anything. And...my understanding is that the Toyota Camry has the highest percentage of American content. Tough decisions.
Forget that local soup kitchen or, otherwise, favorite charity...Consider that buying American builds pressure to employ people rebuilding the social infrastructure that has been so badly eroded. Pay a little more for American products and cut back on "charity incorporated." Reduce the size of the river of money going overseas.
I would contend that the cry for more goods and more goods that Americans want should be loud and vociferous.
"I doubt the average IQ in the US is anywhere near 100, probably closer to 80 or 85."
and they worship power and military so much they wold be the first to welcome any invaders as liberators
Organization on a scale that will make a difference nationwide is impossible. You should be thinking 'what do we need on the Ark' because the water's rising. Nothing will stop the flood. Lost cause for most.
Vinegar strokes, had to look that up, this could last a long while..
Invest in commercial. And don't worry about the lack of tennants.
Just what I thought... If you can't beat-em, join-em...
That exact thought is what makes corruption work.
Last year Houston was dubbed the top city for commercial real estate investment in the country by the Urban Land Institute, followed closely by Dallas and Austin.
The then-booming energy sector pushed Houston to the top of the list. This year’s annual report from ULI’s “Emerging Trends in Real Estate” shows that Houston sunk to No. 30.
http://blog.chron.com/primeproperty/2015/10/report-houston-sinks-from-be...
My cousin lives there in Houston and said there's too-many-to-count lease cancellations by energy companies.
Yep sucker em in then. Devalue the dalla like they did in 1985
Paul Ryan has got this.
What was Boehner supposed to do? Repeal Obamacare, overturn RvW, balance the budget? Defund Planned Parenthood.
Didn't some guy once say something about waking up homeless in our country. Looks like He was only 225 years early.
It's called selling your country out from under you. Now if they just increase our national debt and double property taxes...
The Chinese billionaires doing what the Saudi's did to London. Buy the best property and leave it vacant with no maintenance.
And if you saw what happened to the foreclosures without maintenance that is what is coming.
Desperate ?
Another day in the chapter 9 bankruptcy proceedings of the US.
Nail on the head. The wholesale liquidation of this once great nation continues unabated.
Obama pimps the US.
"The FRA predicts that Americans will face significant increases in US property taxes over the next five years starting in 2016."
The people have the unalienable right to property. We are being duped into paying for that right. Close scrutiny of thier process shows it fails in law. Property taxes upon the people is an exploitation of the ignorance (of law) of the people, perpretrated by their sworn servants.
When the arsons start, burn your house and move to Belize.
I do not and will not fear my servants.
Americans, and apparently now a growing number of foriegn investors will be kicking in to keep those six figure wonders that "administrate" your city & county paid.
Individual Free Cash Flow:
Junk Bond Yields Negative on the basis of yield to maturity, Investment Grade marginal yield, Treasuries marginal, Muni's face Bankruptcy Legislation after the election which will potentially destroy Pensions and Bonds.
Stocks either go down or neutral for 3 years at least?
Commodity businesses yield lower level of jobs
Retail volume questionable for local sales taxes
TTP yields H1b expansion to unlimited white collar exposure - for software development, accounting and many other fields offshored
Pension sustainability exposure due to extended low yield impact to pension asset portfolios with many long term assumptions of 7%+
Social Security no COLA
All Income sources have exposure notwithstanding what happens to number of jobs
Property taxes will have huge escalation regardless of higher values given other limited sources of muni revenue and cost increases
I dont see how single family doesnt have exposure on affordability - todays interest rate level has carried real estate - but the long term doesnt look good
Detroit is betting on Bangladesh Town now. African Town was a complete bust.
Detroit is betting on the Muslim take over with the endorsement of BanglaTown.
'The main religion in Bangladesh is Islam'
The Republican governor cheers it on;
"Gov. Snyder joins Bangladeshis in opening"
Gots to get a holy rok and git dat Haj fing goin
What doe the FHRITP guy have to say about this?
Money laundering capitol of the world. Forward
...you have owners. they own you. [/george carlin, rip]
This is so that one day we will wake up and our country will be owned by the PBOC and the People's Liberation Army... and they will demand we hand over sovereignty because they own our land, apartments and businesses.
nah, he be lining his pockets the chicago way
Possession is nine tenths and they got no boots on the ground
And you can bet that the banks are behind this.They figure that enough time has elapsed so that they'll be able to bring back their home loans scams once again.As soon as property prices really start to pick up they'll create the next financially engineered con game to hit the general public.Besides,with ObamaCare being a failure you can guarantee that baby-boomers will be borrowing on their property once again to get medical attention fast.
Everything the asshole-in-chief does is by design!
His last 400 days will rip the last few pages of the Constitution to shreads!
The cocksuckers in D.C. lead by the POS republican't party will be cheering their dear leader!
P.S. Fuck the little punk, Paul "pussyboy" Ryan!