Lower prices but even lower inventory? - Patrick.net
In some markets, rents rose almost as much as home values fell. Take Chicago, for example, where rents were up just over 9 percent annually while home values were down just over 10 percent. The same is true for Minneapolis, where the divide is nearly the same. In San Francisco and Detroit, rents are up around 5 percent while home prices are down the same. It begs the question, as the rent vs. own divide grows, will the rental bubble suddenly burst?
Americans More Confident in Housing Recovery – Bloomberg
Sixty percent of people surveyed last month had positive views about the housing market and 70 percent expected property values to improve over the next two years, according to the survey released today. About 63 percent of respondents said they considered real estate a good investment, up from 52 percent last year, the Irvine, California-based broker reported.
Indeed, home prices rose three standard deviations from rental prices, a sure sign of a a housing bubble, and the Fed ignored it every step of the way.
At Bank of America, which until late last year was the nation’s largest mortgage servicer, two employees testified that they had raised concerns about whether documents were being properly notarized, but managers told them to proceed. One vice president said documents in her department were checked only for “formatting and spelling errors,” not the underlying figures or facts in the case.
Meredith Whitney was right - Fortune
“States have pushed more and more expenses down to the local level,” Whitney tells Fortune. “And municipalities don’t have the money to make up the difference. That is where you see the real strain, especially after the American Reinvestment Recovery Act expired in June 2011.”
Germany Fails To Meet Its Own Austerity Goals – Spiegel Online
Bay Area economy is rebounding, but long-term hazards loom – Contra Costa Times
To be sure, the Bay Area job market for technology, knowledge industries and high-end manufacturing has surged. But these industries don’t always produce huge numbers of jobs, and job growth hasn’t benefited all parts of the region’s economy.
“It’s almost a tale of two economies,” Maasry said.
Let’s All Foreclose Together (hat-tip Patrick)
Holy Cow! What’s Good For You Is Good For Our Planet – Archives of Internal Medicine
Is red meat bad for you? In a word, yes. In this issue, Pan et al describe the outcomes from more than 37 000 men from the Harvard Health Professionals Follow-Up Study and more than 83 000 women from the Harvard Nurses Health Study who were followed up for almost 3 million person-years.
This is the first large-scale prospective longitudinal study showing that consumption of both processed and unprocessed red meat is associated with an increased risk of premature mortality from all causes as well as from cardiovascular disease and cancer. In a related study by Pan et al, red meat consumption was also associated with an increased risk of type 2 diabetes mellitus.