Housing Bubble, credit bubble, public planning, land use, zoning and transportation in the exurban environment. Specific criticism of smart growth, neotradtional, forms based, new urbanism and other top down planner schemes to increase urban extent and density. Ventura County, California specific examples.
Squeezing a nickle? Okay... I don't see any reason why mortgage rates wouldn't be correlated with Treasury rates... My son was asking me about the economy this weekend, and we got into a discussion about how the fed was [probably] trapped at ZIRP, and how this, based on Japan's experience, probably doomed our economy to slow growth and monetized deficits spending up to the point that folks figure we can no longer sustain our debt payments and there's a rush to the exits...the idea of a currency collapse seemed foreign to him...I wish it seemed foreign to me...
Picking up nickels in front of steamrollers. Mortgage rates are low enough now that there just isn't a lot value in their going lower.
I do not understand the strength of the JPY at all. They have been eclipsed at everything they used to do best. Internal borrowing doesn't cut it in a borderless trading world. The Olympus fiasco is a shot across the bow. IIRC the Toyota Camry has the most US domestic content of model regardless of nameplate. Worst of all is their lack of domestic resources. They do not have an end game so they keep playing for time.
"Jeffrey Cote was driving home from work one evening this spring when he noticed a light on inside Unit 312 of the Little Tokyo Lofts."
"This was the industrial loft he had bought in downtown Los Angeles for $647,000 — with no money down — at the top of the market in 2007. He thought it would be a great investment. It was also the loft he had abandoned less than two years later, after filing for bankruptcy and expecting the bank to foreclose."
Somewhat on topic.. http://www.businessweek.com/news/2012-12-03/fed-s-dudley-sees-impediment-in-mortgage-bond-rate-spreads While there is “solid evidence” the Fed’s monthly purchases of $40 billion in housing debt have been effective in lowering yields, “the impact of monetary easing on the economy through housing and mortgage finance has been impeded to some degree,” Dudley said today in opening remarks at a workshop on mortgage rates held at the New York Fed. For the Fed’s stimulus to achieve its “full impact,” he said, lower yields on mortgage-backed securities must pass through to interest rates on home loans. “To the extent that the primary-secondary rate spread widens, the reduction in pass- through limits the full impact of the policy actions,” he said.
6 comments:
Squeezing a nickle? Okay...
I don't see any reason why mortgage rates wouldn't be correlated with Treasury rates...
My son was asking me about the economy this weekend, and we got into a discussion about how the fed was [probably] trapped at ZIRP, and how this, based on Japan's experience, probably doomed our economy to slow growth and monetized deficits spending up to the point that folks figure we can no longer sustain our debt payments and there's a rush to the exits...the idea of a currency collapse seemed foreign to him...I wish it seemed foreign to me...
Picking up nickels in front of steamrollers. Mortgage rates are low enough now that there just isn't a lot value in their going lower.
I do not understand the strength of the JPY at all. They have been eclipsed at everything they used to do best. Internal borrowing doesn't cut it in a borderless trading world. The Olympus fiasco is a shot across the bow. IIRC the Toyota Camry has the most US domestic content of model regardless of nameplate. Worst of all is their lack of domestic resources. They do not have an end game so they keep playing for time.
Alrighty then:
http://www.latimes.com/news/local/la-me-loft-squatter-20121202,0,2916945.story
"Jeffrey Cote was driving home from work one evening this spring when he noticed a light on inside Unit 312 of the Little Tokyo Lofts."
"This was the industrial loft he had bought in downtown Los Angeles for $647,000 — with no money down — at the top of the market in 2007. He thought it would be a great investment. It was also the loft he had abandoned less than two years later, after filing for bankruptcy and expecting the bank to foreclose."
Somewhat on topic..
http://www.businessweek.com/news/2012-12-03/fed-s-dudley-sees-impediment-in-mortgage-bond-rate-spreads
While there is “solid evidence” the Fed’s monthly purchases of $40 billion in housing debt have been effective in lowering yields, “the impact of monetary easing on the economy through housing and mortgage finance has been impeded to some degree,” Dudley said today in opening remarks at a workshop on mortgage rates held at the New York Fed.
For the Fed’s stimulus to achieve its “full impact,” he said, lower yields on mortgage-backed securities must pass through to interest rates on home loans. “To the extent that the primary-secondary rate spread widens, the reduction in pass- through limits the full impact of the policy actions,” he said.
Okay...that's the what...nothing on the why...
Not so much on topic:
http://www.youtube.com/watch?feature=player_embedded&v=mFkdsPKARgE
Rob,
I agree on JPY and have bought puts on FXJ.
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