dimelab dimelab: shrinking the gap between talk and action.

disconnect Topic in The Credit Debacle Catalog

disconnected story (1); Economic Disconnect (1); significant disconnect (2).

Dr. Housing Bubble Blog Fri 2010-07-30 15:22 EDT

Banks cherry picking individual foreclosures that show up on the MLS in Culver City and Pasadena with proof: Southern California lenders pushing out properties in Culver City with an average price tag of $300,000. Median sale price for city is $600,000. Shadow inventory average price is $443,000 with loans at an average of $552,000. 141,000 homes in Southern California are distressed yet MLS only reflects 83,000 total properties.

...Prices even today are disconnected from market fundamentals. Inventory is still growing and the shadow inventory figures remain elevated...The bulk of properties are sitting hidden in bank balance sheets and are part of the shadow inventory...For Pasadena, for every one listed foreclosure or short sale, you can be assured that there are 5 other properties sitting in the depths of a bank balance sheet. Keep in mind this is for a highly desirable area...the numbers look nearly the same in Culver City. For every one distressed property on the MLS, you have 5 others hidden in some bank balance sheet. Now when I look at this data what I see is a façade in Southern California real estate...Banks are basically trying to avoid facing the music and realizing the reality that these properties are overpriced (people can't even keep up with their payments). Does any of this data look like a healthy market?

000; 000 home; 000 total properties; 141; 300; 443; 552; 600; Average; average price tag; Banks cherry picking individual foreclosures; Citi; Culver city; distressed; Dr. Housing Bubble Blog; Loans; median sales price; MLS; Pasadena; proof; property; reflects 83; Shadow inventory average price; showed; Southern California; Southern California lenders pushing.

Tue 2010-04-27 08:22 EDT

Anecdotal Economics: A Chicken in Every VAT

...The retail consumer is back, and she* is in the mood to shop, we reliably are told. The Census Bureau reported March 2010 Advance Retail and Food Service Sales improved 7.6 percent from a year ago, and for 1Q2010 are 5.5 percent above 1Q2009...So why do state sales tax revenues tell a different, disconnected story? In the Nelson A. Rockefeller Institute of Government's April 2010 State Revenue Report, which chronicles the woeful status of state tax collections, concludes that sales tax collections fell almost 9.0 percent in 2009, a statistically significant 2.8 percent more than the reported decline in retail and food service sales made up estimated by the Census Bureau...It's a significant disconnect between theory (Census Bureau) and reality (actual sales tax collections), much as the similar, significant disconnect between the Employment Situation reported by the Bureau of Labor Statistics (theory), which appears to be masking the true extent of unemployment in America with all those marginally attached and discouraged workers, and the meaningful decline in actual payroll tax withholdings (reality), as reported by the Treasury Department in its Daily Treasury Statements...

Anecdotal Economics; chickens; VAT.

Tue 2007-10-23 00:00 EDT

Economic Disconnect: Superfund Strong Arm and a Game of Chicken

(MLEC; SIV coverup)

chickens; Economic Disconnect; game; Superfund Strong Arm.

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