Of Oil and Houses

[admin]

According to Ed Wallace

1. There is no shortage of oil. No peak oil yet.
2. Speculators are pushing prices up.
3. Republicans want to drill, but the demand is not there.
4. “Free” money from the Fed is causing speculation.
5. It’s a way for the Fed to help the banks to make up housing losses.
6. Housing crisis is not over yet. 13% to 15% of houses in America are vacant. According to WSJ, that will take 9 years to clear the backlog.

Ed Wallace of Bloomberg Businessweek writes that speculators, looking to make a buck on commodities, and the Federal Reserve are to blame. Wallace says that speculators, like banks and investment houses, dumped hundreds of billions of dollars into oil futures, artificially inflating the price. And he says they have all that extra cash, because the Fed is loaning out money at historically low prices, and the most profitable thing to do is to buy up commodities like oil, silver and gold.

http://www.wbur.org/media-player?url=http://hereandnow.wbur.org/2011/05/04/high-gas-price/&title=Who%26%238217%3Bs+To+Blame+For+High+Gas+Prices%3F&segment=high-gas-price&pubdate=2011-05-04&source=hereandnow

http://hereandnow.wbur.org/2011/05/04/high-gas-price

Ed Wallace’s Bloomberg article:
http://www.businessweek.com/investor/content/apr2011/pi20110419_786652.htm

[jpinpb]

I just heard it on KPBS. 9 years of inventory. YIKES!

[jpinpb]

I just heard it on KPBS. 9 years of inventory. YIKES!

[jpinpb]

I just heard it on KPBS. 9 years of inventory. YIKES!

[jpinpb]

I just heard it on KPBS. 9 years of inventory. YIKES!

[jpinpb]

I just heard it on KPBS. 9 years of inventory. YIKES!

[Eugene]

The percentage of vacant houses is an old fallacy (most vacant houses are second homes / vacation homes). The role of the Fed is exaggerated too. Money is “free” because interest rates are low. Interest rates are low because there’s not enough demand for borrowed funds: the household sector is deleveraging (outstanding household debt has been going down every month since early 2008)< and businesses aren't investing. Commodity speculators are the only ones left to borrow.

[Eugene]

The percentage of vacant houses is an old fallacy (most vacant houses are second homes / vacation homes). The role of the Fed is exaggerated too. Money is “free” because interest rates are low. Interest rates are low because there’s not enough demand for borrowed funds: the household sector is deleveraging (outstanding household debt has been going down every month since early 2008)< and businesses aren't investing. Commodity speculators are the only ones left to borrow.

[Eugene]

The percentage of vacant houses is an old fallacy (most vacant houses are second homes / vacation homes). The role of the Fed is exaggerated too. Money is “free” because interest rates are low. Interest rates are low because there’s not enough demand for borrowed funds: the household sector is deleveraging (outstanding household debt has been going down every month since early 2008)< and businesses aren't investing. Commodity speculators are the only ones left to borrow.

[Eugene]

The percentage of vacant houses is an old fallacy (most vacant houses are second homes / vacation homes). The role of the Fed is exaggerated too. Money is “free” because interest rates are low. Interest rates are low because there’s not enough demand for borrowed funds: the household sector is deleveraging (outstanding household debt has been going down every month since early 2008)< and businesses aren't investing. Commodity speculators are the only ones left to borrow.

[Eugene]

The percentage of vacant houses is an old fallacy (most vacant houses are second homes / vacation homes). The role of the Fed is exaggerated too. Money is “free” because interest rates are low. Interest rates are low because there’s not enough demand for borrowed funds: the household sector is deleveraging (outstanding household debt has been going down every month since early 2008)< and businesses aren't investing. Commodity speculators are the only ones left to borrow.

[bearishgurl]

That’s a good point, Eugene. I DO think there is a high percentage of vacancies in very distressed parts of the country, such as Detroit, MI. However, many, many people have vacation homes which are never rented and always left furnished with supplies for family and friends to visit. I believe the bulk of vacation homes nationwide are owned free and clear. Whenever I visit certain lakes in the southwest part of the country in the summer, I see many vacant homes, some with private boathouses and quite a few are over 2500 sf with multiple garages. The lawn is mowed and all is well.

The same is true of homes here in SD county which are owned by persons living in other countries (such as Mexico). Many are “vacant” with an alarm system, pool servicer and gardener and the owners come and enjoy them whenever they are able to :=]

I think this vacancy figure (that needs to be absorbed thru sales) is high but I can’t say by how much.

[bearishgurl]

That’s a good point, Eugene. I DO think there is a high percentage of vacancies in very distressed parts of the country, such as Detroit, MI. However, many, many people have vacation homes which are never rented and always left furnished with supplies for family and friends to visit. I believe the bulk of vacation homes nationwide are owned free and clear. Whenever I visit certain lakes in the southwest part of the country in the summer, I see many vacant homes, some with private boathouses and quite a few are over 2500 sf with multiple garages. The lawn is mowed and all is well.

The same is true of homes here in SD county which are owned by persons living in other countries (such as Mexico). Many are “vacant” with an alarm system, pool servicer and gardener and the owners come and enjoy them whenever they are able to :=]

I think this vacancy figure (that needs to be absorbed thru sales) is high but I can’t say by how much.

[bearishgurl]

That’s a good point, Eugene. I DO think there is a high percentage of vacancies in very distressed parts of the country, such as Detroit, MI. However, many, many people have vacation homes which are never rented and always left furnished with supplies for family and friends to visit. I believe the bulk of vacation homes nationwide are owned free and clear. Whenever I visit certain lakes in the southwest part of the country in the summer, I see many vacant homes, some with private boathouses and quite a few are over 2500 sf with multiple garages. The lawn is mowed and all is well.

The same is true of homes here in SD county which are owned by persons living in other countries (such as Mexico). Many are “vacant” with an alarm system, pool servicer and gardener and the owners come and enjoy them whenever they are able to :=]

I think this vacancy figure (that needs to be absorbed thru sales) is high but I can’t say by how much.

[bearishgurl]

That’s a good point, Eugene. I DO think there is a high percentage of vacancies in very distressed parts of the country, such as Detroit, MI. However, many, many people have vacation homes which are never rented and always left furnished with supplies for family and friends to visit. I believe the bulk of vacation homes nationwide are owned free and clear. Whenever I visit certain lakes in the southwest part of the country in the summer, I see many vacant homes, some with private boathouses and quite a few are over 2500 sf with multiple garages. The lawn is mowed and all is well.

The same is true of homes here in SD county which are owned by persons living in other countries (such as Mexico). Many are “vacant” with an alarm system, pool servicer and gardener and the owners come and enjoy them whenever they are able to :=]

I think this vacancy figure (that needs to be absorbed thru sales) is high but I can’t say by how much.

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