Recent comments by Rajesh

"Demand for apartments is seemingly insatiable."
+

"Rent growth is being held back by the fact that rents (on a nominal basis) are at record‐high levels and the labor market is still relatively weak, generating little compensation increases for many workers. The marriage of these two factors is making it difficult for landlords in many markets to increase rents at a faster pace."

Demand for cheap apartments is seemingly insatiable.

If landlords can't increase rents when the vacancy rate is 4.0%, what will happen when construction catches up with demand and the vacancy rate increases?

That's some acceleration. Snark

Bubblisimo Gerkinov wrote:

Your lucky your government didn't bail him out.

UPDATE 4-Mozilo gets record fine, BofA also to pay
| Reuters

Former Countrywide chief Angelo Mozilo agreed to a settlement of $67.5 million to resolve charges of duping the home lender's investors while lining his own pockets, but Bank of America Corp (BAC.N) will pick up two-thirds of the tab.

Where do you think Bank of America got the money to help Mozilio pay his fine?

Bubblisimo Gerkinov wrote:

only did 5 years in jail

How many years did the Tan Man get?

Moon Im Lovin It! : buy now or forever be priced out.

Vonbek777 wrote:

Good thing the earth isn't an expectant mother with contractions.

One moon is enough.

lawyerliz wrote:

So they bought it back under a different name

Let me guess, they financed the purchase through Bank of America.

ResistanceIsFeudal wrote:

omen is nemo backwards

2014 backwards is 4102, the number of steps one must climb when approaching the Vatican.

The return of noob goldberg and vonbek777 make me feel as if something exciting is going to happen soon.

It's an omen.

lawyerliz wrote:

do I have a stupid Bank of you know where story

I don't know. Do You?

Apple in talks to buy Renesas stake in chip design unit: Nikkei
| Reuters

Renesas owns 55 percent stake in Renesas SP Drivers, its joint venture with Sharp Corp and Taiwan's Powerchip.

Apple expects to complete the stake purchase by summer, the business daily reported on Tuesday.

The U.S. company "apparently wants to meld" the design of core display components into its overall product development as image quality becomes a crucial selling point for smartphones, the Nikkei said.

Sharp, which owns 25 percent in Renesas SP, is expected to sell its stake to Apple if the U.S. company asks, the newspaper said.

The data are in: life under Putin is a continuous downward spiral into despair

In most countries, the happiness curve bottoms out somewhere around middle age - 47 in the U.S. and 41 in the U.K., for instance. This usually happens long before the average person is expected to die, with one major exception: Russia. In Russia the curve doesn't bottom out until age 91. Essentially, life under Putin is one continuous downward spiral into despair.

Graham explains it bluntly: "What's going on in Russia is deep unhappiness." In the Organisation for Economic Co-operation and Development's Better Life Index, for instance, Russians rated their general life satisfaction a 3.0 out of 10. Three-quarters of Russians are "struggling" or "suffering," with only 25 percent "thriving," according to their responses to a 2012 Gallup survey. Contrast these figures with the U.S., where life satisfaction is a robust 7.6 and nearly 60 percent are thriving.

Russia is getting what it wants:
BBC News - Ukraine crisis: Nato suspends Russia co-operation

On Monday, Russian President Vladimir Putin told German Chancellor Angela Merkel he had ordered a partial withdrawal of Russian troops.

But Nato Secretary General Anders Fogh Rasmussen told reporters: "Unfortunately, I cannot confirm that Russia is withdrawing its troops. This is not what we are seeing."

Ministers from the 28-member bloc gathered in Brussels for their first meeting since Russia's annexation of Crimea.

They are looking at options including situating permanent military bases in the Baltic states to reassure members in Eastern Europe. Russia's actions in Ukraine have rattled nerves in Estonia, Latvia and Lithuania, which were part of the Soviet Union during the Cold War.

Putin has agreed to stand by while the E.U. annexes Ukraine. He has appealed the West's sense of justice to protect Russian speakers in Ukraine from discrimination. What a girl!

Cinco-X wrote:

Do we?

How else can we accelerate the trend?

You mean Austin Danger Powers?

Vonbek777 wrote:

Can't we just sell vacation homes on the moon to the 1%?

The real money is in selling them oxygen once they are living there.

burnside wrote:

develop additional strengths

What does not make me stronger, destroys me.

BP has had their entire investment in Russian oil stolen from them twice. Its different this time

I wonder if I can IPO my neutrino transceiver company even though the design isn't working yet.

sum luk wrote:

what ceo would want to rush into the arms of the ruskies at this point

Blame it on the Oil

Nemo wrote:

Russia gets what they want

Russia doesn't get what they want (a Russian friendly Ukrainian president and high trade barriers between Ukraine and E.U.) but Crimea may have to be a consolation prize. But only if the Russian economy doesn't collapse (good luck with that.)

ResistanceIsFeudal wrote:

alcohol

I stay away from performance enhancing drugs. Not that there's anything wrong with that.

burnside wrote:

no two of which can be correct at the same time.

This is where fuzzy logic comes in handy.

Rose Colored Glasses
Global factory growth lost momentum in March: PMI
| Reuters

JPMorgan's Global Manufacturing Purchasing Managers' Index (PMI) dipped to 52.4 in March from 53.2. It held above the 50 mark that indicates growth for the 16th month.

"Although growth is cooling from the highs reached at the end of last year, the picture remains one of continued expansion, suggesting manufacturing will remain a contributor to both global economic growth and job creation," said David Hensley, a director at JPMorgan.

A sub-index measuring employment rose to 51.5 from 51.3. The new orders sub-index sank to 53.2 from 54.6.

I'm more of a fuzzy math/fuzzy logic person.

Greece wants no third bailout, euro zone hopeful but cautious
| Reuters

Greece was cut off from markets in 2010 as the true scale of its debt burden became apparent. But after four years of painful measures to contain debt, two bailouts worth 240 billion euros ($330 billion) and a hit on private bondholders, the Greek economy is expected to return to modest growth this year.

Encouraged by falling bond yields, Greece is considering ending its four-year exclusion from bond markets by selling 1.5 billion-2 billion euros of five-year bonds in a test issue in the first half of the year.

Pigged Rose Colored Glasses Im Lovin It!
U.S. construction spending barely up as homebuilding tumbles
| Reuters

Construction spending in February was curbed by a 0.8 percent drop in private residential construction projects, which was the largest fall since last July.

However, a 1.2 percent surge in spending on nonresidential construction projects, which include factories and gas pipelines, lifted overall private outlays to their highest level since December 2008.

The decline in private residential construction was led by a 1.1 percent drop in single-family home building.

Cr wrote:

Usually private residential construction leads the economy, so this is a good sign going forward.

U.S. construction spending barely up as homebuilding tumbles
| Reuters

Construction spending in February was curbed by a 0.8 percent drop in private residential construction projects, which was the largest fall since last July.

However, a 1.2 percent surge in spending on nonresidential construction projects, which include factories and gas pipelines, lifted overall private outlays to their highest level since December 2008.

The decline in private residential construction was led by a 1.1 percent drop in single-family home building.

Outsider wrote:

I think it's pretty safe to say we're out of recession territory.

Let's see what retail sales for March and April look like. We can tell that the decline is weather related because it broke from the trend in August due to Blame it on the snow .

Outsider wrote:

Is this what happens when blogs hit old age?

Grey Panthers

ResistanceIsFeudal wrote:

They will be disposed of

In a sustainable, low-carbon, environmentally friendly manner?

Hu Knows
China HSBC manufacturing PMI hits eight-month low in March
| Reuters

The final Markit/HSBC Purchasing Managers' Index (PMI) fell to an eight-month low of 48.0 in March from February's final reading of 48.5. The outcome was in line with last week's preliminary PMI reading of 48.1.

The index has been below the 50 level since January, indicating a contraction in the sector this quarter.

"The final reading of the HSBC China Manufacturing PMI in March confirmed the weakness of domestic demand conditions," said Hongbin Qu, HSBC's chief China economist, in a statement accompanying the survey.

"This implies that first quarter GDP growth is likely to have fallen below the annual growth target of 7.5 percent."

Earlier, the National Bureau of Statistics' official PMI rose to 50.3 in March from the previous month's 50.2, in line with forecasts.

The HSBC/Markit PMI is weighted more towards smaller and private companies than the official index, which contains more large and state-owned firms.

emergency hotdog wrote:

the main risk is for the guy that was scalping you for the 1/8. he might have to sell one of his yachts.

the main risk is for the guy that was scalping you for the 1/8. he might have to sell one of his yachts. ask his congressman for a bigger bailout. Fixed It For Ya Now back to the yacht race

gab wrote:

Fed Funds rate (the rate the Fed really controls)

Surprise! The FOMC wants the Fed Funds closer to 25 bps instead of the 6 bps it is at now. The Fed doesn't control the Fed Funds rate after all.

I keep forgetting that fraudulent accounting is no longer illegal; it's mandatory.

gab wrote:

Most expansions end when the Fed raises interest rates in response to perceived inflation or inflationary fears.

Graph: 30-Year Conventional Mortgage Rate - FRED - St. Louis Fed

Mortgage rates are up 100 basis points.

josap wrote:

steady increase in senseless shootings by police.

Peace Dividend!

What's the point of all the cool new toys the MIC is seeing to Police departments if they don't get to play with them once in a while?

Whiskey wrote:

It helps to have the memory of a goldfish.

To do what?

Republican Paul Ryan to unveil U.S. budget plan on Tuesday
| Reuters

U.S. Representative Paul Ryan on Tuesday plans to unveil a 10-year balanced budget plan that seeks to bolster Republicans' campaign credentials as the party of fiscal prudence but also leaves them open to fresh attacks over deep cuts to social programs.

The House Budget Committee, which Ryan chairs, said in a statement that it has scheduled a vote on a budget resolution on Wednesday. Under House rules, the document must be made public at least 24 hours before it can be considered by a committee.

Ryan has revealed no details of his plan, but Republican leaders in the House of Representatives have said it would achieve balance within 10 years, as Ryan's budget plan proposed last year. It is widely expected to contain many elements of his past budgets, including deep cuts to social safety net programs such as Medicaid health care for the poor and food stamps.

The task of eliminating deficits within a decade, however, is expected to be more difficult this year because of slower economic growth forecasts from the Congressional Budget Office, which predict $1.4 trillion less in tax revenue collections over a decade compared to forecasts made a year ago. Many Republicans are also clamoring for increased defense spending in the wake of the Ukraine crisis.

Rob Dawg wrote:

What about modest to moderate growth justifies any Fed action at all?

No preset path. Data dependent.

Because the job market is weak, the Federal Reserve will taper asset purchases and maintain low interest rates for a considerable period.

Because risk premium are lower than normal, the Federal Reserve will taper asset purchases and maintain low interest rates for a considerable period.

Because inflation is below target, the Federal Reserve will taper asset purchases and maintain low interest rates for a considerable period.

Because economic growth is modest to moderate, the Federal Reserve will taper asset purchases and maintain low interest rates for a considerable period.

sm_landlord wrote:

Community development is part of the Fed's mandate?

FRB: Community Reinvestment Act (CRA)

The Community Reinvestment Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations. It was enacted by the Congress in 1977 (12 U.S.C. 2901) and is implemented by Regulation BB (12 CFR 228). The regulation was substantially revised in May 1995 and updated again in August 2005.

Taper. Low interest rates for a considerable period. Its not easy being green

Taper. Low interest rates for a considerable period. Elmo!

Taper. Low interest rates for a considerable period. Its not easy being green

Go ahead and blame the Federal Reserve. That's why Congress created it.

sm_landlord wrote:

Yellin backpedaled today.

The market choose to interpret the speech today which reiterrated what Bernanke and Yellen have been say for a year as Yellin backpedaled today.

The message is the same but the players put a bullish spin on it today.

FSB's Carney says to crack too-big-to-fail bank barriers by December
| Reuters

The FSB is the regulatory arm of the Group of 20 leading economies (G20) and Carney said progress is expected by December on requiring the world's top banks to hold capital in case the bank fails.

The aim is to shield taxpayers who had to shore up lenders in the 2007-09 financial crisis.

The derivatives industry will also be asked to agree a way for derivatives contracts to be amended so their closure can be suspended for a day or two to give regulators time to wind down a bank that has failed.

"We are looking to put ourselves in a position by Christmas to have cracked the two biggest issues," Carney told a reporters after an FSB meeting in London.

Are you a believer? Santa

Blame it on the snow

Another weather related weakness. Good thing winter will end in a few months.

More evidence of stealth hyperinflation:
Euro zone inflation drops to lowest since 2009
| Reuters

Euro zone inflation hit its lowest level since November 2009 in March, a shock drop that raises expectations the European Central Bank will take radical action to stop the threat of deflation in the currency bloc.

Annual consumer inflation in the 18 countries sharing the euro was 0.5 percent in March, with the pace of price rises cooling from February's 0.7 percent reading, the EU's statistics office Eurostat said on Monday.

Economists polled by Reuters had predicted a 0.6 percent reading - itself worrying for an economy that is barely pulling out of a record-long recession after a crisis that nearly broke up the currency area.