perspective, foreign websites offer significant cost savings relative to US websites, and these savings
attract US customers despite the FDA warning about risks of buying from overseas.”
Housing risk keeps rising
Housing risk high, in spite of QM.
Stable housing markets depend on the preponderance of loans being low risk
ones that are unlikely to default even under stress. In February, only 43 percent of home purchase loans were rated low risk, raising serious questions about the ability of
much of today’s loan production to withstand a stress event.
FHA is especially vulnerable in this regard,
with less than 2 percent of its recent insured loans rated as low risk.”
New data show mortgage risk continues to rise, especially in California.
“AEI experts report on risk ratings for federal agency mortgages securitized in February
2014, review trends for the NMRI series, and for the first time, release metro-level Mortgage Risk Indices
for selected California metro areas.”
Johnson-Crapo bill fails to protect taxpayers.
The bill, as was the case with Fannie and Freddie, would encourage too much of the wrong kind of debt for our economy
debt that bids up existing housing assets and the land they sit on, creating a temporary wealth effect and a crowding out of capital investment needed for a productive and growing economy and jobs growth. Worse, the result will be
another artificial housing boom and consequent bust.”
Long-term homeownership trends.
: “By 2010, home ownership was back down to 67%.
Continuing down, it fell to 65% in 2013, close to where it had been in 1980. Overall, looking across the bubble rise and fall, there has been a 40-year plateau in the mid-60% range, during which time the U.S.
has experienced two housing finance disasters.”
In other news
Netflix wants the benefits of the Internet with none of the costs.
Netflix appears to want consumers to pay for both their own connections and Netflix's connections. Moreover, depending on the pricing plans of the broadband providers, lots of consumers who are not Netflix subscribers will be
subsidizing its business. Shouldn't Netflix subscribers pay Netflix's costs?”
Is inequality an outgrowth of capitalism?
: “Thomas Piketty is making a different
and broader argument, one that intentionally rises to the level of grand theory: Embedded within the very fabric of capitalism is a powerful force pushing in the direction of rising inequality. The income generated from owning capital (everything from real estate to financial assets to intellectual property) tends to
exceed the rate of economic growth.”
Mark your calendar
4.3 Jobless claims released 4.4 March employment numbers
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