Thursday, June 28, 2012

The REAL reason for improved Real Estate

The corporate media... ugh.. What can we say about them but just..  Ugh!

Their relentless non-stop 24/7 pursuit to push the lies of economic optimism and 'recovery' would almost be admirable if not for the fact it is so harmful and dangerous.

We discovered this nonsense from NY Times today:

After Years of False Hopes, Signs of a Turn in Housing -- "After several years of false hopes, evidence is accumulating that the optimists may finally be right.  The housing market is starting to recover. Prices are rising. Sales are increasing. Home builders are clearing lots and raising frames."

And the sun is shining, the birds are chirping, the cows in the meadows are 'moooo-ing' and flowers are in full bloom in all directions, as far as the eye can see....

Ugh! is right..

The rest of the NY Times article actually is more dreary in tone about housing than the exaggerative headline and opening paragraph suggested.

Still, let's say the Times article is 100% correct (which it isn't)... Why would there be a positive turn in housing?  Is it that more people are now able to secure adequate lending?   Or are good paying jobs springing up in abundance to allow people the means to pay their mortgages?


OK, actually No, not at all..
If housing is recovering (which its not), its more to do with this...

Overseas buyers seek shelter in U.S. real estate -- "Buyers from all over the world are snapping up U.S. real estate the way prospective brides yanked discount wedding gowns off the racks at those Filene’s Basement sales of yore.

Yes, some of the buyers are the super rich, like the Russian billionaire who allegedly bought an $88-million New York penthouse for his daughter. But others — upper-middle-class professionals and small business owners — are scooping up condos, townhouses and single-family homes. They’re buying in suburbs as well as cities. Nearly 40% are using their new homes as primary residences..." (MarketWatch)

That's interesting isn't it?  Gotta love how much the US dollar has devalued vs other currencies.. Thanks Fed.

And so, who is buying up American homes?

"Canadians were by far the most frequent buyers, representing one out of every four dollars of international real estate purchased. Chinese nationals, Mexicans, Brits and Indians followed...  most of them pay cold, hard cash."
~ The United States... 11th Province of Canada

How nice for them...  And why would international vultures.. ~cough... um, I mean people seek ownership of American homes?

"U.S. real estate can be a great investment for foreign nationals. The real estate crash that began several years ago has produced some extraordinary bargains...  International buyers view the U.S. as a safe haven for their money, governed by the rule of law and respect for property rights. Nearly a third of foreign purchasers viewed U.S. real estate as a “secure investment.” "

That's lovely..  Nice to see others benefiting and profiting off US misery with the full blessing of US leaders who actively encourage it.

Of course the ability of Americans to buy homes is not improved upon but who cares right?  As long as the real estate market is improving..  By any means necessary, yes?

Yep everything is super.. why, look at South Florida for instance... real exciting what's happening there...

Brazilians snap up South Florida real estate sparking new boom -- "Waves of wealthy Brazilians are landing on South Florida’s shores and spending millions of dollars on vacation condominiums, clothes, furniture, cars and art, all of which are much less expensive here than in their homeland...

A Miami real estate broker said, "The dollar exchange rate now is very good for the Brazilians, so now is the time to buy. And on top of that, the prices of the properties, they went down big time, about 50 percent. It's a big discount.”  (CNBC)

Ahh yes.. gotta love a dramatic discount on housing that only non-Americans can benefit from?
~ Is the Brazilian volleyball player passing secret plays to her teammates or secretly middle-fingering America?  We'll get back to you...

"The economic impact would be even greater, say local economists, if Brazilians, like Europeans, could come and go using only passports rather than wading through the red tape of applying for tourist visas.  In recognition of this obstacle, President Obama recently discussed the subject with Brazil’s President Dilma Rousseff during her first official visit to the White House"

Funny how the NY Times never made mention Once of this trend as to why real estate is improving.  The assumption is American buyers purchasing homes from American sellers, and the real estate market finally on the way to prosperity and happiness for all..

Let's be honest, how can anyone celebrate or root for a US "recovery" that is mainly for the benefit of the very wealthy and for non-Americans?

When foreigners are buying up US homes because they are dirt cheap and make super investment opportunities i.e. foreign house 'flippers' while Americans are denied mortgages, how do we benefit?

When US corporations' profits go up while maintaining a skeleton work force of employees mixed with disposable temps, how do we benefit?

When the stock market goes up and up based on outright direct manipulation and rigging by the Fed while it creates inflation i.e. overall rise in cost of food, fuel, clothing, etc, how do we benefit?

How do WE Benefit??!!

We don't... yet the media pushes the lie that we do.

Its a new world we're living in.. one where realistic optimism is replaced by manufactured, contrived positivism; a world where the "haves" shred any pretense of empathy for the "have-nots"

The mindset is simple: There's going to be an American "recovery" and we're all going to celebrate it dammit!!  And its going to happen because of Americans' standard of livin improving OR in spite of it!

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