My afternoon train read:

• Apple’s First Computer Was A Better Investment Than Apple Stock  (priceonomics) see also Why Apple Makes Only One iPhone, and Doesn’t Want to Make a Phablet (Video) (All Things D)
Olick: Rising Mortgage Rates, Home Prices a Lethal Brew (CNBC)
• Deutsche Bank’s Six ’13 Rally Busters (Fox)
• Public and private saving and the long shadow of macroeconomic shocks (Vox)
• The ‘cult of capitalism’ and U.S. moral decline (MarketWatch)
• How Congress Quietly Overhauled Its Insider-Trading Law (npr)
• Have U.S. states figured out a way to avoid a global race to the bottom on taxes? (Wonkblog) see also Blame FDR and LBJ for ‘Moocher’ Paradox in Red States (Bloomberg)
• In Dubai, the number of Abandoned Luxury Cars lying around is kind of a Problem (Messy Nessy Chic)
• How to Find Your Purpose and Do What You Love (Brain Pickings) see also “This is your life. Do what you love and do it often.” (Holstee)
• Flickr Finds No. 31 (Colossal)

What are you reading?

 

Don’t Believe New Housing Bubble Hype
Chart
Source: WSJ

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

15 Responses to “10 Wednesday PM Reads”

  1. willid3 says:

    hm…the wild west of wall street..maybe it needs to be moved to say Pecos so it would fit in?
    http://blogs.wsj.com/moneybeat/2013/05/28/why-there-is-no-justice-on-wall-street/?mod=WSJBlog

  2. sudeepj says:

    About your “New housing bubble hype”, from my limited perspective as a frustrated first time home buyer in the SF bay area, prices in the desirable neighborhoods – with good school districts, not unreasonable commutes have reached or exceeded the 2005-2007 price points. Most indices that show that we are still way below the bubble era prices are weighed down by the prices in the undesirable areas. I am not sure what the implications of this are.. Certainly the banks are a lot more careful in lending practices this time around. No NINJA loans, no obfuscated ARMs, no loans without documentation, no loans against flipper properties, no loans without a sizeable down payment.. But it does not mean that prices have not ran far ahead of median incomes. For e.g. my household income is at least 25-30% more that the median household income in the areas that I want to buy in, but the price of a median home there is far out of reach. We may not experience a systemic crisis after a housing crash, but the couple that buys a 750,000 shack next to a train track will sure get hurt.

  3. theexpertisin says:

    I enjoyed the two red state articles. Really.

    Don’t call those in the southern region slackers. It took ‘em a while to realize how to play the gravy train after observing the largess of an earlier era. Now they are evidently playing catch up with northern urban areas.And who is to say that many folks on the receiving end of government benefits in the south are not ex- northerners who can enjoy a better climate and the beach while receiving free stuff? Lots of students I tutor here in coastal North Carolina have Ohio, Pennsylvania and Michigan roots.

  4. Let’s start with the premise that mortgage interest rates will eventually normalize. 3% loans won’t be around forever.

    Add a second premise that median household income will struggle to keep up with inflation for a few years yet. Buyers representing new households – those who actually drive the market over the long term – won’t be able to afford to pay more anytime soon.

    In that case, the current rise in house prices is not sustainable.

  5. Too much . . . whatever one thinks of the IRS, I suspect virtually NONE of these groups should have been receiving tax exempt status . . . freeloaders.

    25 tea party groups sue Obama administration, IRS

    “The complaint, filed by the American Center for Law and Justice, alleges that the Obama administration overstepped its authority and violated the First and Fifth amendments to the U.S. Constitution.”

    http://goo.gl/B4jrl

  6. Mike in Nola says:

    Interesting article on some of the big investors in single family starting to back out and some losing money. Allegedly Blackrock is making money, but that admit they have 15% of houses needing renovation.

    http://www.bloomberg.com/news/2013-05-29/carrington-stops-buying-u-s-rentals-as-blackstone-adding.html

  7. Mike in Nola says:

    Oops meant Blackstone.

  8. VennData says:

    We Made A Big Gamble On Americans Wanting To Sit Around And Mindlessly Watch TV For Hours Straight, But It Paid Off

    http://www.theonion.com/articles/we-made-a-big-gamble-on-americans-wanting-to-sit-a,32622/

    Job creators need their taxes lowered.

  9. call me ahab says:

    well . . . that piece by Paul B. Farrell at Marketwatch sure was pleasant

    I guess the Buddhists are right- life is suffering

  10. VennData says:

    Top U.S. tax breaks to cost $12 trillion over decade, benefit wealthy: CBO

    http://www.reuters.com/article/2013/05/30/us-usa-fiscal-taxbreaks-idUSBRE94S1FS20130530

    not NEARLY enough if you want any more jobs

  11. PeterR says:

    This morning’s Dilbert fits right in with the theme . . .

    Check out the giant robotic flea built to suck out company assets!

    http://www.dilbert.com/strips/2013-05-30/

    “The weird part is that it seemed reasonable at the time.”

    Have a grueling day out there, Earth bio-units.

    HAL
    2013 — A Space Odyssey