Stamps

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Macleans
Is B.C.’s plan for first-time homebuyers as crazy as it sounds?

B.C. Premier Christy Clark got an earful last week when she announced a plan to subsidize down payments for first-time home buyers. In a move seemingly designed to secure votes in next year’s provincial election, Clark’s government promised to match the funds saved up by eligible buyers up to $37,500, or five per cent, of their home’s purchase price. Better yet—or worse, depending on your point of view—the loans, secured as a second mortgage, are structured so they will be payment- and interest-free for five years.

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MIT
RETHINKING HOW THE HOUSING CRISIS HAPPENED
NEW RESEARCH CASTS INTO DOUBT THE CENTRAL STORYLINE OF 2008—THAT THIS WAS EVER A SUBPRIME CRISIS TO BEGIN WITH.

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Caixin
7 Things to Know about China’s Bond Rout

*Note how wonderful clear this article is*

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Guardian UK
French workers win legal right to avoid checking work email out-of-hours
From 1 January, workers have ‘right to disconnect’ as France seeks to establish agreements that afford work flexibility but avoid burnout

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Quartz
The uncomfortable racial preferences revealed by online dating

Black women want black men.
All other women want white men.

All men want asian babes (except the asian men who go for a bit of latina)
No one want no black chick~!

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  • CSArichardo

    Happy New Year.

    Yes housing in Canada and in the Vancouver area is crazy. Giving first time buyers a big loan (second mortgage) and not requiring principle or interest payments for 5 years is a major disaster waiting to happen. However as a politician she has an election next year and if she wins a new 4 year term she might decide to retire at about the time “shit happens” !?

    I think part of the financial crisis was and remains the fact that a home or other investment gets carried at market value and not book value on your personal balance sheet. In a bubble environment this expands the borrowing capacity and contributes to over optimistic expectations (more borrowing against the rising assets value) and then a downturn when the cash gets needed, sales drop asset prices and everyone goes insolvent ?? I think Steve Keen would want to dampen this acceleration in borrowing capacity as its happening?? How …. maybe in a rising environment a 5 year historical average price becomes the value used for new borrowing capacity !?

  • CSArichardo

    The internet dating article also concluded:

    “Perhaps most surprising is that among men, all racial groups preferred another race over their own.”

    Now this is a dating/sex site so you have to remember that.

    If I was a guy in the basement, living with my mother, I would probably be looking to date someone more exotic than my mother !?

    If I were a feminist I might think that there was some “sexual objectification” going on ?? I suppose that observation could also have a racist angle to it !

    In fact you can find or create any data set to prove any point !!??

  • amoeba

    Happy New Year!

    I made it!

    Here comes Kuroda with his New Year’s Resolution.

    “I am convinced that the coming new year will be one in which Japan’s economy will take a big step forward toward overcoming deflation,” he said.

    http://asia.nikkei.com/Politics-Economy/Policy-Politics/Kuroda-sees-Japan-taking-big-step-toward-ending-deflation

    Good luck.

  • amoeba
  • amoeba

    What does it mean?

    http://www.telegraph.co.uk/business/2016/12/31/companies-run-loans-build-cash-sooth-economic-uncertainty/

    “Figures from the Bank of England show non-financial companies’ deposits rose to £428.5bn in October”

    (At the same time loans to commercial companies have fallen)

    I think this is one of the “excess savings” things that I am struggling with. Those deposits have all be loaned into existence, so there is an equivalent £428.5bn pile of debt assigned to somebody. Unless the companies spend the cash by employing labour, buying goods from other companies or returning dividends to shareholders, the debts cannot be paid off.

    Rising consumer debt is good or bad?

    “By contrast, she noted, “consumer credit has held up well with a monthly rise of £1.6bn in October, in line with the average for the six months before the vote”.’

    Obviously Ruth thinks it is good.

    With an engineering background in control systems I have always tried to put systems into a steady state, and minimise fast and slow moving deviations from the set point. I think this is possibly a big hinderance to understanding economics.

    • I wish I knew.
      I am starting to think that `no one knows`.

      The Brad Setser article (today) is on this.

      There is no doubt that `loans make money` (deposits)
      But, it is also true, that `deposits` are a basis for making loans.

      I have been round so many times … that I now fear getting on the roundabout.

  • CSArichardo

    Excellent talk by Simon Sinek at IQ Millenial Question with Tom Bilyeu.

    Well worth the listen and the themes. Leaders are confused with how to deal with them. Good humour turns to serious issues of parenting, technology, impatience and environment with the need for corporations to pick up the slack of “growing up” their young employees with real life skills ???!!

    It’s not the kids fault ??!!

    https://www.youtube.com/watch?v=bJTNNXL0W1w&vl=en

    • Last time I was `home` … my mother complained about the `youth` having an elevated sense-of-entitlement.

      I asked her … where they got the idea from~?

      She went back to watching the television.

      • CSArichardo

        I love my mother too .. but they both have baggage !!??

        Your mother was not the problem … it was your mother’s training !!???

        Same for my mother !

        I… and you … moved on from there !!?

    • Yes … that was a top video.
      Thanks Richardo.

  • JMac

    “A radical scheme to give every citizen a universal basic income (UBI), regardless of whether or not they work, is set to be piloted by two Scottish councils this year.”

    “Under UBI, welfare benefits such as Jobseekers’ Allowance, working tax credits and state pensions are replaced by a single, unconditional flat-rate payment, regardless of whether the recipient is in work. Any money earned above this is subject to taxation.”

    http://www.independent.co.uk/news/uk/home-news/scotland-pilot-universal-basic-income-ubi-snp-fife-and-glasgow-scheme-a7505411.html

    • CSArichardo

      I think Finland beat Scotland 1 – 0 !!?

      http://www.cbc.ca/news/business/basic-income-finland-1.3918671

      • JMac

        The Finnish experiment is only for payments to the unemployed. The Scottish experiment is payments to everyone regardless of employment status.

        • CSArichardo

          Scotland 2 – 1 and we wait for the trickle up to begin ?!

    • amoeba

      It will be a total mess, cost three times as much as the current mess and not survive twelve months.

      • JMac

        Yes, a post code system such as this can be easily abused. The best part of this experiment will be to discover how many ways it fails.

    • I guess they know that `England` will have to bail-them-out … and won’t~! … So they can have another referendum on it.
      If they do it … then they are (IMO) just `causing trouble` (on purpose).

  • CSArichardo

    Stamps ! Is this where you are coming from ?

    “The drug addict mother who stamped her 21-month-old daughter to death had her face slashed in a ‘revenge attack’ in jail. Kathryn Smith was left with a two centimetre stab wound on her cheek after being jumped by as many as 10 lags on a prison stairwell.”

    http://www.dailymail.co.uk/news/article-3591178/Killer-mother-23-stamped-baby-daughter-death-face-slashed-prison-revenge-attack-two-inmates.html