The Nation's Financial Condition

[RedFromMI]

You expect stasis? Or are you being facetious? We have a polity seemingly hopelessly divided by class , income, and religiousity most likely as a result of deliberate plutocratic propaganda for the last 40 odd years followed by a pandemic that has illuminated the decline in educational and wisdom. As a capper we have a slow uneasy sense of dread creeping in as the natural world begins to be exhibit more immoderation.

I’m sort of surprised things are as calm as they are. Could be like a slip fault. Pressure keeps building, and building, and building until it lets go with a “bang”!!

They already went bang. The Jury rendered the verdict: the top 20%ers win in America. And the bottom 80% will continue to fall behind.

"The deliberate plutocratic propaganda has American conservative voters wearing tinfoil hat, and bickering about Mr. Potato head instead of demanding that their school districts teach kids how to code, and how to weld or build homes.

There is no bang. There's the quiet desperation after Reagan and then the Clinton Dems sold out the working class, all while FoxNation told voters Mr. Potato head was more important than infrastructure......including, as you point out very well: education.

Education is fake news.

We don’t need no education. Teachers, leave us kids alone!

All in all it's just another brick in the wall...

[Typical Lax Dad]

You expect stasis? Or are you being facetious? We have a polity seemingly hopelessly divided by class , income, and religiousity most likely as a result of deliberate plutocratic propaganda for the last 40 odd years followed by a pandemic that has illuminated the decline in educational and wisdom. As a capper we have a slow uneasy sense of dread creeping in as the natural world begins to be exhibit more immoderation.

I’m sort of surprised things are as calm as they are. Could be like a slip fault. Pressure keeps building, and building, and building until it lets go with a “bang”!!

They already went bang. The Jury rendered the verdict: the top 20%ers win in America. And the bottom 80% will continue to fall behind.

"The deliberate plutocratic propaganda has American conservative voters wearing tinfoil hat, and bickering about Mr. Potato head instead of demanding that their school districts teach kids how to code, and how to weld or build homes.

There is no bang. There's the quiet desperation after Reagan and then the Clinton Dems sold out the working class, all while FoxNation told voters Mr. Potato head was more important than infrastructure......including, as you point out very well: education.

Education is fake news.

We don’t need no education. Teachers, leave us kids alone!

All in all it's just another brick in the wall...

Hey teachers! leave those kids alone!

[a fan]

Any of my Republican friends want to take a wild guess as to why the Dow is surging today?

Is it because Trump's de-regulation----even though not one poster can name a Federal Reg that was pulled that helps their business in a meaningful way?

Or is it because we just borrowed $1.9 Trillion, and are about to pump it all over America?


Take your time. This should be easier to answer now that someone with a D by their name is in the White House....

[youthathletics]

Any of my Republican friends want to take a wild guess as to why the Dow is surging today?

Is it because Trump's de-regulation----even though not one poster can name a Federal Reg that was pulled that helps their business in a meaningful way?

Or is it because we just borrowed $1.9 Trillion, and are about to pump it all over America?


Take your time. This should be easier to answer now that someone with a D by their name is in the White House....

You make too much sense, then trip over yourself. So by your logic, the stock market should never go down, since each side spends in to oblivion. I do like how you threw in the curve ball to take us off track about de-regulation....nice touch.

[a fan]

Any of my Republican friends want to take a wild guess as to why the Dow is surging today?

Is it because Trump's de-regulation----even though not one poster can name a Federal Reg that was pulled that helps their business in a meaningful way?

Or is it because we just borrowed $1.9 Trillion, and are about to pump it all over America?


Take your time. This should be easier to answer now that someone with a D by their name is in the White House....

You make too much sense, then trip over yourself. So by your logic, the stock market should never go down, since each side spends in to oblivion.

No. That's not how it works.

How it works is: when new massive spending bills pass...and trillions in fresh dollars get pumped through the economy? It's like steroids. So yep, the last vestiges of steroids wears off after a several quarters, and the markets settle down as the spending slows. Then out comes the Congressional checkbook. Rinse. Repeat.

Cut spending to where our current taxation sits. Watch what happens.

I thought you'd like that deregulation snark. There are still voters out there who believe deregulation is what spurred the economy, while at the same time, they can't name a single Federal regulation that was removed that affects their employer.

[cradleandshoot]

Any of my Republican friends want to take a wild guess as to why the Dow is surging today?

Is it because Trump's de-regulation----even though not one poster can name a Federal Reg that was pulled that helps their business in a meaningful way?

Or is it because we just borrowed $1.9 Trillion, and are about to pump it all over America?


Take your time. This should be easier to answer now that someone with a D by their name is in the White House....

You make too much sense, then trip over yourself. So by your logic, the stock market should never go down, since each side spends in to oblivion.

No. That's not how it works.

How it works is: when new massive spending bills pass...and trillions in fresh dollars get pumped through the economy? It's like steroids. So yep, the last vestiges of steroids wears off after a several quarters, and the markets settle down as the spending slows. Then out comes the Congressional checkbook. Rinse. Repeat.

Cut spending to where our current taxation sits. Watch what happens.

I thought you'd like that deregulation snark. There are still voters out there who believe deregulation is what spurred the economy, while at the same time, they can't name a single Federal regulation that was removed that affects their employer.

Who gives a rats rear end about deregulation? If at the end of 2020 your 401 k was up 12% who gives a chit about deregulation. Who gives a chit about any federal regulation that does not directly effect your401K account. If your 401K is headed in the UP direction that is all that matters.

[Kismet]

Who gives a rats rear end about deregulation? If at the end of 2020 your 401 k was up 12% who gives a chit about deregulation. Who gives a chit about any federal regulation that does not directly effect your401K account. If your 401K is headed in the UP direction that is all that matters.

If your 401K was only up 12% in 2020 might be time for a new money manager.

[SCLaxAttack]

Who gives a rats rear end about deregulation? If at the end of 2020 your 401 k was up 12% who gives a chit about deregulation. Who gives a chit about any federal regulation that does not directly effect your401K account. If your 401K is headed in the UP direction that is all that matters.

If your 401K was only up 12% in 2020 might be time for a new money manager.

Which would be the problem unless you’re one of the 48% of Americans over the age of 55 who have no retirement savings or pension plan they can retire on.

And the average 401k amount by age group sucks, never mind the median. The middle and lower classes in America are screwed.

https://www.investopedia.com/articles/p ... ce-age.asp

[holmes435]

[PizzaSnake]

Any of my Republican friends want to take a wild guess as to why the Dow is surging today?

Is it because Trump's de-regulation----even though not one poster can name a Federal Reg that was pulled that helps their business in a meaningful way?

Or is it because we just borrowed $1.9 Trillion, and are about to pump it all over America?


Take your time. This should be easier to answer now that someone with a D by their name is in the White House....

You make too much sense, then trip over yourself. So by your logic, the stock market should never go down, since each side spends in to oblivion.

No. That's not how it works.

How it works is: when new massive spending bills pass...and trillions in fresh dollars get pumped through the economy? It's like steroids. So yep, the last vestiges of steroids wears off after a several quarters, and the markets settle down as the spending slows. Then out comes the Congressional checkbook. Rinse. Repeat.

Cut spending to where our current taxation sits. Watch what happens.

I thought you'd like that deregulation snark. There are still voters out there who believe deregulation is what spurred the economy, while at the same time, they can't name a single Federal regulation that was removed that affects their employer.

Who gives a rats rear end about deregulation? If at the end of 2020 your 401 k was up 12% who gives a chit about deregulation. Who gives a chit about any federal regulation that does not directly effect your401K account. If your 401K is headed in the UP direction that is all that matters.

“If your 401K is headed in the UP direction that is all that matters.”

Ah, the cri de cœur of the libertarian: “I’ve got mine, forck everyone else.”

[cradleandshoot]

Any of my Republican friends want to take a wild guess as to why the Dow is surging today?

Is it because Trump's de-regulation----even though not one poster can name a Federal Reg that was pulled that helps their business in a meaningful way?

Or is it because we just borrowed $1.9 Trillion, and are about to pump it all over America?


Take your time. This should be easier to answer now that someone with a D by their name is in the White House....

You make too much sense, then trip over yourself. So by your logic, the stock market should never go down, since each side spends in to oblivion.

No. That's not how it works.

How it works is: when new massive spending bills pass...and trillions in fresh dollars get pumped through the economy? It's like steroids. So yep, the last vestiges of steroids wears off after a several quarters, and the markets settle down as the spending slows. Then out comes the Congressional checkbook. Rinse. Repeat.

Cut spending to where our current taxation sits. Watch what happens.

I thought you'd like that deregulation snark. There are still voters out there who believe deregulation is what spurred the economy, while at the same time, they can't name a single Federal regulation that was removed that affects their employer.

Who gives a rats rear end about deregulation? If at the end of 2020 your 401 k was up 12% who gives a chit about deregulation. Who gives a chit about any federal regulation that does not directly effect your401K account. If your 401K is headed in the UP direction that is all that matters.

“If your 401K is headed in the UP direction that is all that matters.”

Ah, the cri de cœur of the libertarian: “I’ve got mine, forck everyone else.”

So what the flying flip do you want me to do? You expect me to hope my 401 K goes into the tank to make you happy? How effing dumb are you crusty? Why don't take your FLP self rightiousness and go stuff it.

[PizzaSnake]

Any of my Republican friends want to take a wild guess as to why the Dow is surging today?

Is it because Trump's de-regulation----even though not one poster can name a Federal Reg that was pulled that helps their business in a meaningful way?

Or is it because we just borrowed $1.9 Trillion, and are about to pump it all over America?


Take your time. This should be easier to answer now that someone with a D by their name is in the White House....

You make too much sense, then trip over yourself. So by your logic, the stock market should never go down, since each side spends in to oblivion.

No. That's not how it works.

How it works is: when new massive spending bills pass...and trillions in fresh dollars get pumped through the economy? It's like steroids. So yep, the last vestiges of steroids wears off after a several quarters, and the markets settle down as the spending slows. Then out comes the Congressional checkbook. Rinse. Repeat.

Cut spending to where our current taxation sits. Watch what happens.

I thought you'd like that deregulation snark. There are still voters out there who believe deregulation is what spurred the economy, while at the same time, they can't name a single Federal regulation that was removed that affects their employer.

Who gives a rats rear end about deregulation? If at the end of 2020 your 401 k was up 12% who gives a chit about deregulation. Who gives a chit about any federal regulation that does not directly effect your401K account. If your 401K is headed in the UP direction that is all that matters.

“If your 401K is headed in the UP direction that is all that matters.”

Ah, the cri de cœur of the libertarian: “I’ve got mine, forck everyone else.”

So what the flying flip do you want me to do? You expect me to hope my 401 K goes into the tank to make you happy? How effing dumb are you crusty? Why don't take your FLP self rightiousness and go stuff it.

Crusty?

Clever.

Just admit the totality of your concern re regulation is how It impacts you and your “401k” which is, I guess, shorthand for your finances.

I’d stuff it but I just gorged on a huge slice of humble pie, so I’m good, thanks.

[cradleandshoot]

Any of my Republican friends want to take a wild guess as to why the Dow is surging today?

Is it because Trump's de-regulation----even though not one poster can name a Federal Reg that was pulled that helps their business in a meaningful way?

Or is it because we just borrowed $1.9 Trillion, and are about to pump it all over America?


Take your time. This should be easier to answer now that someone with a D by their name is in the White House....

You make too much sense, then trip over yourself. So by your logic, the stock market should never go down, since each side spends in to oblivion.

No. That's not how it works.

How it works is: when new massive spending bills pass...and trillions in fresh dollars get pumped through the economy? It's like steroids. So yep, the last vestiges of steroids wears off after a several quarters, and the markets settle down as the spending slows. Then out comes the Congressional checkbook. Rinse. Repeat.

Cut spending to where our current taxation sits. Watch what happens.

I thought you'd like that deregulation snark. There are still voters out there who believe deregulation is what spurred the economy, while at the same time, they can't name a single Federal regulation that was removed that affects their employer.

Who gives a rats rear end about deregulation? If at the end of 2020 your 401 k was up 12% who gives a chit about deregulation. Who gives a chit about any federal regulation that does not directly effect your401K account. If your 401K is headed in the UP direction that is all that matters.

“If your 401K is headed in the UP direction that is all that matters.”

Ah, the cri de cœur of the libertarian: “I’ve got mine, forck everyone else.”

So what the flying flip do you want me to do? You expect me to hope my 401 K goes into the tank to make you happy? How effing dumb are you crusty? Why don't take your FLP self rightiousness and go stuff it.

Crusty?

Clever.

Just admit the totality of your concern re regulation is how It impacts you and your “401k” which is, I guess, shorthand for your finances.

I’d stuff it but I just gorged on a huge slice of humble pie, so I’m good, thanks.

Snake, I didn't invent the 401K system. Since the days of your employer eliminating company pension plans, that is the option given to blue collar America. If you don't take advantage of it, your nuts. I certainly am not evading or avoiding paying taxes on my contributions, they are deferred until i start taking money out. Then I pay my 10% to Uncle Sam. When a bunch of us boomers start retiring and drawing off our 401K accounts the government will reap the harvest of that 10% they had to wait for. No matter what happens the government will get that money back.

[Farfromgeneva]

Hey! We’re all tapping our home equity to live again! Dope!

FINANCE
Cash-Out Refinancings Hit Highest Level Since Financial Crisis
Home prices have soared during the coronavirus pandemic, prompting more borrowers to pocket cash from refis

By Orla McCaffrey
March 11, 2021 5:30 am ET
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Americans extracted more cash from their homes through cash-out refinancings in 2020 than in any year since the financial crisis.

U.S. homeowners cashed out $152.7 billion in home equity last year, a 42% increase from 2019 and the most since 2007, according to mortgage-finance giant Freddie Mac. It was a blockbuster year for mortgage originations in general as well: Lenders churned out more mortgages than ever in 2020, fueled by about $2.8 trillion in refis, according to mortgage-data firm Black Knight Inc.

Some borrowers viewed cash-out refis as a way to cushion themselves against an uncertain economy last year. Others wanted to build and redecorate, and being stuck at home gave them the time to do the paperwork. Homeowners also had more equity available to tap: Though home prices tend to fall during economic downturns, they jumped during the Covid-19 recession.


Total home equity cashed out
Source: Freddie Mac
Note: Dollar volume of equity cashed out through refinancing of prime, first-lienconventional mortgages. 2020 figure is an estimate.
.billion
2000
'05
'10
'15
'20
0
50
100
150
200
250
300
$350
“The support coming from home equity is unparalleled in helping smooth out the degradations from Covid,” said Susan Wachter, an economist and professor at the University of Pennsylvania. “For those who are in the position to refinance, it’s a major source of support.”

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The median existing-home price rose to about $310,000 in December, an increase of almost 13% from December 2019. The acceleration in price growth has spread past cities to suburban and rural areas as Americans re-evaluate where they want to live during and after the pandemic.

Cash-out refis got a bad rap after they exploded in the run-up to the 2008 financial crisis. Borrowers tapped their homes like they were ATMs. When home prices plunged, they were left owing more than their homes were worth. Now, in 2021, many economists expect home prices to keep growing.

“There are genuinely a lot of people who want to buy homes to live in,” said Daryl Fairweather, chief economist at real-estate brokerage Redfin Corp. “They’re not just buying them to buy them or speculating that home prices will continue to rise. People are buying because they want them and they’re not trying to sell again the next year.”

Low rates—the average rate on a 30-year fixed mortgage fell below 3% for the first time last year—also made cash-out refis appealing. They could become less popular if mortgage rates continue to rise, as they have in recent weeks.

Mortgage originations by credit score, quarterly
Source: New York Fed Consumer Credit Panel; Equifax
.billion
Less than 620
620-659
660-719
720-759
Greater than 760
0
200
400
600
800
1000
1200
$1400
Cash-out refis let borrowers essentially swap their current mortgage with a fresh one that has a higher balance. That allows a homeowner to pay off the old mortgage and still have cash left over.

The median credit score of new refis last year approached 800, near the top of the scoring range, according to the Federal Reserve Bank of New York. That includes refis in which the borrower didn’t take cash out.

SHARE YOUR THOUGHTS

Did you do a cash-out refi in 2020? Are you considering one now? Join the conversation below.

Todd Kennedy lowered the mortgage interest rate on his North Texas home by almost a percentage point when he refinanced late last year. Mr. Kennedy, who has a credit score around 780, also cashed out about $30,000 in equity to pay for home improvements including repairs to his home’s foundation and new flooring.

Mr. Kennedy said he started considering a refi when his mortgage company, Mr. Cooper Group Inc., reached out with an offer last November.


“They said, ‘Hey, you’ve already got equity. We can do a lower rate and get cash back,’” Mr. Kennedy said.

Wendi Comello of St. Louis closed on a cash-out refi last week. It was made easier by her home’s steep price appreciation. She bought it for close to $95,000 in 2014. It appraised for about $150,000 this year.

Ms. Comello used the cash to pay off two loans worth a combined $8,000, including one that helped her with the down payment on her Federal Housing Administration mortgage. She also plans to pay off credit-card debt and renovate her 1950s-style kitchen, including adding more cabinet space for her growing collection of kitchen gadgets.

Still, Ms. Comello’s credit score in the 600s prevented her from locking in a lower rate. The refi pushed her mortgage rate up to 4.3% from 4%, and her monthly payment went up by about $50.

There can be other pitfalls to cash-out refis. When homeowners refinance into new 30-year mortgages, they essentially reset the clock on their payments. Over time they can add years to the life of their loan and as a result end up paying tens of thousands of dollars in additional interest, not to mention closing costs.

Additionally, the 2017 tax overhaul said that borrowers typically can’t deduct the interest on the cash-out portion of a refi unless it is used to improve a home.

Some borrowers like the idea of paying off credit-card debt with their cash-out refis, since mortgage interest rates are much lower than the typical credit-card rate. But a mortgage, unlike a credit card, is a secured loan. That means that borrowers who fall behind on credit-card payments don’t risk losing an asset, while borrowers who fall behind on home loans risk foreclosure.

Eric Henning, a mortgage loan officer in Gig Harbor, Wash., said a number of his customers have taken out larger-than-usual sums of cash to do major renovations or additions. Tight housing inventory—the number of homes for sale is at an all-time low—has made it hard for families who are looking for larger homes.


“They can’t find a house to move into, so they’ve basically decided to make their homes work long term,” Mr. Henning said.

Still, borrowers who did major cash-out refis withdrew an average of $50,000 last year, down from $59,000 the year before, according to the New York Fed.

Before the housing-market crash that followed the financial crisis, almost 90% of borrowers who refinanced chose to extract cash. Last year, about one-third of refinancers chose the cash-out option, according to Freddie Mac.

How Mortgages Work in the U.S.
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Write to Orla McCaffrey at [email protected]

[Farfromgeneva]

Like this move a lot by Kayak.

https://www.wsj.com/articles/search-eng ... 1615294800

[CU88]

r's are continuing to push tax cuts.

Senators John Thune (R-SD) and Mike Crapo (R-ID) and Senate Minority Leader Mitch McConnell (R-KY) are leading an effort to repeal the estate tax.

According to Michael Hiltzik of the Los Angeles Times, this tax falls on estates over $11.7 million, about a fifth of which are worth $50 million or more. The average estate affected by the tax is worth $30 million, and it affects about 2,500 people a year. It is enacted on capital gains that have not been taxed during the original owner’s lifetime, and usually involves stock.

While Crapo calls the tax “the most unfair tax on the books,”

https://www.latimes.com/business/story/ ... eform-lies

[Farfromgeneva]

PROPERTY MANAGEMENT

Multifamily Executive
NMHC Rent Payment Tracker: 80.4% of Apartment Households Paid Rent by March 6
This marks a 4.1 percentage point decrease from the share who paid rent through the same date a year ago.
By Mary Salmonsen
Charlotte City Councilmember LaWana Mayfield has called for a moratorium on new apartments in the city.
Courtesy Pixabay
According to the National Multifamily Housing Council’s Rent Payment Tracker, 80.4% of apartment households made a full or partial rent payment by March 6, based on a survey of 11.6 million professionally managed units.


This marks a 4.1 percentage point, or 474,942-household, drop from the share of apartment households who paid rent through March 6, 2020. Last month, 79.2% of households made a full or partial payment by February 6.

“On behalf of the multifamily industry, we are deeply appreciative of how leaders in Congress and the Biden administration worked with us to develop legislation that will deliver direct financial support to those facing distress due to the pandemic,” says Doug Bibby, NMHC president. “… We are especially pleased that the bill includes NMHC-supported provisions that will assist the nation’s apartment residents and housing providers—including rental assistance, direct stimulus checks, and expanded unemployment benefits. Taken together, along with the funds included in the stimulus package passed in late 2020, this represents a truly significant investment in the 40 million Americans who call an apartment home and the nation’s rental housing industry."

With the American Rescue Plan on its way through Congress, the Rent Payment Tracker’s data partners are optimistic about its impact on renters and the multifamily industry, based on upticks in collections performance following the past two stimulus packages.

In this month’s Rent Payment Tracker Webinar, BH Cos. president and CEO Joanna Zabriskie reports that a number of the company’s tenants had paid their rent forward following the CARES Act—something that had not been at all common among its renters before then.

BH Cos. continues to offer payment plans for renters in need and remains proactive in getting in touch with renters who have missed payments in order to educate them on payment programs. According to Zabriskie, of the renters that take on payment plans, 60% to 70% get paid current within a month.

Chase Harrington, chief operating officer at Entrata, notes that while some renters are electing not to pay rent despite the ability to do so, owing to eviction moratoriums, the number is very small. Greg Willett, chief economist at RealPage, adds that collections had been fastest to deteriorate on the West Coast, particularly in Seattle and Portland, and notes a risk of further drop-off as rental assistance fills in unpaid rent gaps.

In response to administrative issues related to rental assistance distribution, Yardi has created a software package to facilitate fund distribution, according to Jeff Adler, vice president of Yardi Matrix. “This is a heavy lift, and it’s not going quickly,” he says.

As far as overall collections, Adler notes that the Midwest has held strong, particularly in Columbus, Ohio, Indianapolis, and Detroit. The exceptions were downtown Chicago and downtown Minneapolis, though performance remained strong in these cities’ suburbs. According to Zabriskie, in the current environment, renters are looking for “what the properties are offering less than for location”—when renters don’t have to commute, a suburban community with larger spaces is more appealing than a Class A high-rise downtown. Concessions are still driving rentals in these asset classes, with some properties are “burying” concessions over the course of longer lease terms.

When asked how close the recovery is, industry experts say that while the suburbs are already doing well, the most expensive urban cores—particularly international gateway cities—still have a two- to three-year road back to recovery, with the greatest pain felt in the smallest properties. Workers returning to offices will be the most important factor in these cities’ performance, as well as the share of workers who ultimately choose to work from home full time.

[PizzaSnake]

FFG, think a permanent work from home stance will lead to residential upsizing as well as a concomitant downsizing in commercial?

[Farfromgeneva]

Would like to think folks could make due with less but given the obsession folks have with new big houses on postage stamp lots even when they’re hardly above builder grade I’m sure people will upsize when they can afford to do so.

I don’t believe work from home is this permanent condition though. Probably more likely staggered weeks for decent sized employers and a 20-30% reduction in metropolitan office space needs - used to be like 400sq ft per employee And 4-5 parking spots/thousand outside super dense metros. That’ll go down. But engineers often over optimize and miss the mark like the pirate ship ride at amusement parks. Communication that isn’t face to face, and zoom is, IMO, screen to screen, is a weaker quality. Mental tennis Etc. I expect managers will find quality of output in complete work from home is down and will shift back to in office work largely. We will see.

[PizzaSnake]

As long as we tolerate this shite in the name of profits we are a poor excuse for a civilized nation.

https://www.nytimes.com/2021/03/13/busi ... covid.html