Friday, May 20, 2016

BOOM: San Fran home prices record high, Two-thirds would struggle to cover $1,000 emergency

With high demand and a tight market, Bay Area housing prices continue to soar, setting record highs in April in Santa Clara and Alameda counties.
The median price of a single-family home in Santa Clara County hit seven figures for the first time last month: $1 million on the button. Prices grew even dizzier in San Mateo County, where the $1.2 million average matched the previous record, set in May 2015.
The East Bay also saw a run-up in prices, with the median Alameda County home reaching $750,000, up more than 10 percent from the previous month. Tugged upward by prices in Walnut Creek and other high-end areas, the median Contra Costa County price grew to $525,000, its steepest in seven years, according to new housing figures released Wednesday.
“We just don’t have a market under $700,000 in Walnut Creek,” said Alain Pinel agent Margaret Garber-Teeter. “And even at $700,000, you’re going to be in second-tier schools. So there’s still an affordability problem for young families, unless their parents help them, and a lot of young families get help.”
US Home Ownership – Massive Downtrend

source: tradingeconomics.com
http://www.tradingeconomics.com/united-states/home-ownership-rate
Poll: Two-thirds of US would struggle to cover $1,000 crisis
NEW YORK (AP) — Two-thirds of Americans would have difficulty coming up with the money to cover a $1,000 emergency, according to an exclusive poll released Thursday, a signal that despite years of recovery from the Great Recession, Americans’ financial conditions remain precarious as ever.
These financial difficulties span all income levels, according to the poll conducted by The Associated Press-NORC Center for Public Affairs Research. Seventy-five percent of people in households making less than $50,000 a year would have difficulty coming up with $1,000 to cover an unexpected bill. But when income rose to between $50,000 and $100,000, the difficulty decreased only modestly to 67 percent.
Even for the country’s wealthiest 20 percent — households making more than $100,000 a year — 38 percent say they would have at least some difficulty coming up with $1,000.
“The more we learn about the balance sheets of Americans, it becomes quite alarming,” said Caroline Ratcliffe, a senior fellow at the Urban Institute focusing on poverty and emergency savings issues.
Harry Spangle is one of those Americans. A 66-year-old former electrician from New Jersey, Spangle said he thought he would always have a job and “lived for today” but lost his job before the downturn. He said he would have to borrow from friends or family in order to cover an unexpected $1,000 expense.
http://bigstory.ap.org/article/965e48ed609245539ed315f83e01b6a2

Bernie Sanders – Why Do We Spend Trillions On War And Not On America


James Risen – Pay Any Price: Greed, Power, and Endless War on Terror , Crackdown on Whistleblowers

Caterpillar Retail Sales Fall For Record 41 Consecutive Months

For Caterpillar, the great recession was bad, for about 19 months. In May 2010, after declining sharply for just under two years, CAT posted it first positive global retail sales comps and never looked back... until December 2012 when comp sales once again turned negative and have been negative ever since. For the past 41 months!


The breakdown showed that contrary to popular opinion, there has been no pick up in demand for heavy industrial machinery anywhere around the globe.
  • Caterpillar global 3-mo. retail machine sales down 12% vs March 13% fall, Feb. down 21%
  • North America machine sales down 11% after falling 8% in March
  • Asia/Pacific sales April down 10% after falling 14% in March
  • Latam sales April down 37% after falling 34%
  • EAME (Europe, Africa, Middle East) sales April down 6% after falling 8%
  • Power systems sales: April down 34% after falling 41%
And a quick comment from Axiom's Gordon Johnson who reminds us that CAT's sales guidance implies a rebound in the second half, yet North America sales are worsening.
While some modest improvements were observed (i.e., the declines in Asia/Pac slights moderated in Resource Industries & were up for a second straight month in Construction), declines in North America look to be deepening in both Construction & Resources.

This seems to be a bad start for a company guiding to a back-end loaded rebound in 2016 sales.
Don't worry Gordon: there are always millions in buybacks to fix anything "bad"

SFi030 Mike Rivero - Earth is a big slave plantation

The Collapse of the European Union: Return to National Sovereignty and to Happy Europeans?

Imagine – the European Union were to collapse tomorrow – or any day soon for that matter. Europeans would dance in the streets. The EU has become a sheer pothole of fear and terror: Economic sanctions – punishment, mounting militarization, the abolition of civil rights for most Europeans. A group of unelected technocrats, representing 28 countries, many of them unfit to serve in their own countries’ political system, but connected well enough to get a plum job in Brussels – are deciding the future of Europe. In small groups and often in secret chambers they decide the future of Europe.
Take the TTIP – under pressure from their masters in Washington, behind closed doors under utmost secrecy – and most likely against their own personal good – a small group of European Commission (EC) delegates without scruples, without any respect for their co-citizens, without consideration for their children, grand-children and their children, only interested in the instant laurels and pay-back – to be sure – from the colonialist, usurper and warrior number One, the United States of Chaos and Killing, they are ready to put 500 million Europeans and their descendants at peril.
It cannot be said enough what horrors the TTIP (Trans-Atlantic Trade and Investment Partnership) would do to the people of Europe; and that is based on the little we know from the 248 pages ‘leaked’ by Greenpeace Netherlands of the ultra-clandestine negotiations taking place. ‘Negotiations’ is the most unfair term imaginable, since all the rules are imposed by Washington, the same as with the TPP (Trans-Pacific Partnership, involving 11 Pacific countries and the US – but not China and Russia).
Though TPP negotiations are finished, none of the 11 Pacific partners, nor the US Congress have approved the treaty. There is hope that even if ‘negotiations’ by the secret EC traitors and Washington should come to conclusion, at least some of the 28 EU countries may not approve. To be valid, the treaty needs to be approved in unanimity. The new rightwing Austrian frontrunner for Austrian’s Presidency, Norbert Hofer, has already said he would not sign the TTIP agreement. Similar remarks have been made by the French Minister for Foreign Trade, Matthias Fekl, who said, “There cannot be an agreement without France and much less against France.”
Under the TTIP, the citizens of Europe would lose out on all fronts. Europeans would become literally subjects of a corporate empire, led by the United States of America. EU countries would stop being sovereign nations, even more so than is already the case under the current Brussels dictate. As the secret TTIP documents reveal, the agreement would be the death knell for Europe. Here is what Susan George, philosopher and political analyst and President of the Planning Committee of the Transnational Institute in Amsterdam has to say:
  • The food we import would be chemically treated, would be genetically modified, would have no labels. You wouldn’t know exactly what is in your food. You could buy chicken that has been rinsed in chlorine, you could have beef that was raised with hormones, you could have biosynthetic food made out of one gene of a plant another of an animal, and this would not be labeled.
  • In the area of agriculture again, it is very likely that we would lose a great many farmers, because if we lower the tariffs of agriculture we will have a flood of American [highly subsidized, GMO]-corn and basic grains flooding into Spain and that will ruin a lot of farmers, exactly the way the ”campesinos” in Mexico were ruined by the North American Free Trade Agreement, the NAFTA.
  • ln the area of health, the pharmaceutical companies [want] to get rid of generic drugs. They have already succeeded in forcing the generic drug companies to repeat all of the clinical trials that they have already had to do with the same identical medicine but which has a brand name. To make it a generic drug you have to start all over again: clinical trials, blind tests, and so forth. So medicine would become much more expensive.
But most important:
  • [The TTIP] is about giving corporations the freedom to sue governments if they don’t like a law that the government has passed.
    We have a lot of examples now, because in hundreds of bilateral treaties this private judiciary system exists, and for example, the government of Egypt raised the minimum wage and a company, an important company, Veolia, from France, sued them because they would have to pay their workers more. This case has not been decided yet, but one case that has been decided is for example, Ecuador, which refused that an American petroleum company could drill in a particular region. Well, they said this is a protected area and you cannot drill here. And the company said, ah, we will sue you; and they won. And they have a fine on Ecuador of 1.8 billion dollars which is a lot of money for a small and fairly weak country.
This simply means that private corporate courts would be above the laws and courts of sovereign nations. There would be no sovereignty left; not even the little idependence Brussels has not yet destroyed. EU nations would all be under the rules of an Anglo-American led corporate empire.
You may read Susan George’s full article here http://www.defenddemocracy.press/suzan-george-%CE%BFn-ttip-new-european-movements/, as well as my recently re-published one http://www.globalresearch.ca/the-transatlantic-trade-and-investment-partnership-ttip-would-abolish-europes-sovereignty-the-eu-would-become-a-us-colony/5417382.
And then there is TiSA, the ‘Trade in Services Agreement’, of which even fewer people are aware. It is also being ‘negotiated’ in secrecy, involving 23 WTO members (Australia, Canada, Chile, Chinese Taipei, Colombia, Costa Rica, the EU (28 countries), Hong Kong China, Iceland, Israel, Japan, Korea, Liechtenstein, Mauritius, Mexico, New Zealand, Norway, Pakistan, Panama, Peru, Switzerland, Turkey and the United States). Altogether, we are talking about 50 countries; 49 of them bent to submit to one, the Unites States of Wars, Crimes and Domination. It doesn’t take a lot of imagination to realize that, again, Washington is calling the shots. Actually, the TiSA talks, similar to those of the TTIP, are infiltrated by US corporate trolls and lobbyists, making Washington the representative for the US corporate empire and, of course, for Wall Street.
According to WTO, TiSA would be opening up the market for ‘trade in services’, meaning – expect privatization of all public and social services, like health care, education, social security systems, pensions, transportation, postal services, telecommunication, water supply and sanitation, solid waste disposal – and more would all be subject to buy-outs by transnational corporations. Just look at Greece, trying hard to pay back their ill-begotten debt, selling off her national social capital, or life capital, to the detriment of the poor – by now the majority of Greek – who depend on it. Once a country has signed the trade agreements, there is no way back. It has opened its social and public sectors to rent seeking private corporations.
Like with the TTIP, should a government at a later stage realize that privatization of, say water services, did not bring the promised benefits for the people, it cannot go back and re-nationalize, or municipalize this service. Remunicipalization of water services is currently happening in France, of all places, the country with the most privatized public water supply systems. In 2012 the government and municipalities of large cities decided to re-take these vital public services. This is currently ongoing. Under TiSA rules it would not be possible. Worse – once TiSA is signed, a country cannot decide to exempt a particular sector included in the list for potential ‘liberalization’, for example, health, education and other vital social services. Corporate arbitration courts, similar to those of the TTIP, would be set up for TiSA. – These ‘negotiations’ are taking place in Geneva, under the auspices of WTO – in secret – and driven by rules, sticks and carrots, imposed by – you guessed it – Washington.
If the EU were to collapse today, both the TTIP and the TiSA talks would come to a standstill. Anyone of the 28 EU countries, or better even of the 19 Eurozone countries, could bring the EU down. A Grexit, a Brexit, a fiasco emerging from the forthcoming rehash of the Spanish elections – or a firm decision by a government to default on its (mostly) troika imposed debt, could bring the house of cards of the dollar pyramid scheme to fall – and erase once and for all the enslaving dollar-euro hegemony. Debt could be renegotiated in newly restored national currencies. Remember, the euro is barely 15 years old. So – returning to national currencies should not be dramatic, but rather a sigh of relief – relief from a debt trap, and relief from Washington’s and Brussels’ boots of oppression.
Imagine what a collapse of the EU and the euro-zone would mean for the Greek people. Though, rumors have it that more than half the Greek are still adamant in hanging on to the destructive euro, I bet, its collapse would have hundreds of thousands dancing in the streets. Syriza could forget the currently negotiated additional €3 billion austerity budget cuts – even less pension and higher taxes for the poor.
To be sure, Greek debt relief will not come from the current EU/EC-troika constellation. To the contrary, the German Minister of Finance, Wolfgang Schaeuble, has ever harsher words for Greece, as if he was threatening pushing Greece out of the EU. An empty threat, as everybody should know by now. Washington, also the masters of Germany, will not allow a Grexit, or a Brexit or an exit by any EU member. Washington needs the EU ‘intact’ to eventually serve as a slave partner in TTIP and TiSA.
What happened and continues to happen to Greece may serve as a (learning) example for other ‘weak’ southern EU countries to follow – unless, yes, unless, Greece or another country under EC-troika imposed economic and financial stress and strangulation takes the bull by the horns – taking a drastic decision: Exit the EU and the euro-zone, jump-start the local economy with a local currency, and negotiate the illegal and fraudulently imposed debt at their terms. That may bring about the end of the nefarious euro-zone – and the US-created European Union.
Be aware, the EU as it exists today, is not the invention of Europeans; it is a construct thought out immediately after WWII by the US, so as to keep Europe under her control – and to create a buffer zone vis-à-vis communism, the Soviet Union. It worked so far. This idea still prevails, as we see every day how Russia and her leader is being demonized and slandered by the western media. Let us be frank, if it weren’t for the strategic clear-headedness and foresight of President Putin, we – Europe – would be for the third time in 100 years enmeshed in a world war. And if we let this Washington imposed trend continue, Europe will become an Anglo-American  slaveland. Just look at TTIP and TiSA.
A true federation of sovereign European countries down the road, perhaps even with a common currency and a real central bank, may be a viable long-term solution for Europe. But – and this is the most important BUT, such a Europe will have to be designed by true and honest Europeans – am I dreaming? –  and absolutely without any influence of the United States of America. None.
Anyone of the 28 EU countries could return happiness to the people of Europe; could take the pain, frustration, fear and anxiety away; could reinstate national sovereignty, could bring national pride and local – instead of global – economy to the fore – by exiting the EU, by forfeiting the euro, by taking the reign of their people into the hands of a sovereign, democratic government.
A simple exit by one country – Greece, Portugal, Spain, Ireland, the UK, France… you name it, could bring the ferocious debt machine to a grinding halt, opening the opportunity of joining a new, more just and more equal monetary scheme – the nascent combined eastern economic space of China, Russia, BRICS, SCO (Shanghai Cooperation Organization) and the EEU (Eurasian Economic Union).
To be sure, time is important. Not for nothing Obama is pushing for speedy conclusions and signing of the disgraceful TTIP. The signing of these predatory agreements, TTIP, TiSA, TPP, is a key agenda item of Obama’s Presidency; his corporate and military legacy – NATO expansion is part of it – may depend on it.  Once these treaties are signed, there is no way back. If the TTIP is ratified despite all logic, and if subsequently the EU fell apart – each country would still be held accountable to the terms of the agreement. Hence, time for an EU collapse before signing of the TTIP and TiSA is of the essence.
This radical solution may be too much even for staunch EU / Euro opponents. Many of them still seek, hope and dream of a reformed EU. They still live under the illusion that ‘things’ could be worked out. Believe me – they cannot. The Machiavellian US-invented venture, called European Union with the equally US-invented common currency – the Eurozone – has run its course. It is about to ram the proverbial iceberg. The EU-Euro vessel is too heavy to veer away from disaster. Europe is better off taking time to regroup; each nation with the objective of regaining political and economic sovereignty – and perhaps with an eye a couple of generations down the road envisaging a new United Europe of sovereign federal states, independent, totally delinked from the diabolical games of the western Anglo-American empire.
Peter Koenig is an economist and geopolitical analyst. He is also a former World Bank staff and worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, RT, Sputnik, PressTV, Chinese 4th Media, TeleSUR, The Vineyard of The Saker Blog, and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe. He is also a co-author of The World Order and Revolution! – Essays from the Resistance.

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The Best US Cities For Jobs... For Now

The top cities are dominated by the tech community, with San Jose, CA and San Francisco, CA taking the top two spots in the overall ranking.
Here is the list of top 25 cities based on their overall ranking - Bloomberg points out that San Jose has risen from No. 7 to No. 1

As Bloomberg reports, Glassdoor Inc., a career website, published its list of the top 25 cities for jobs based on factors such as salary, job satisfaction, and cost of living.
Breaking down the details, here is the list for the median salary component - again led by tech heavy cities such as San Jose and San Francisco.


Job satisfaction...


And cost of living... note how incredible the cost of living is in San Jose and San Francisco, surely indicative of the run up in tech companies over the past few years in Silicon Valley, as those high wages and overzealous cash infusions by venture capitalists led to higher cost of living.

We assume this excludes living in a box in someone's front room.
Established tech communities such as San Jose, San Francisco, as well as up and coming tech cities such as Seattle, Boston, and Austin dominate the lists. "This demonstrates why so many people are looking to move to the San Francisco Bay area: Job satisfaction, work-life balance, and hiring opportunities are unparalleled compared to anywhere else in the country. It's not a surprise to see cities like Seattle and Austin at the top since they all have rising technology communities, great institutions for higher education and research, as well as affordable neighborhoods." said Dr. Andrew Chamberlain, chief economist at Glassdoor.
While we're happy for all of these tech heavy cities making this list, we would caution those reading not to pack up and head to the West Coast just yet. While Silicon Valley has undoubtedly had a good run, the reality is that the second great tech bubble has popped, and impacts are only just beginning to be felt.
* * *
As a refresher for those who are curious, here is a quick timeline chronicling the bursting of the second tech bubble. We first pointed out back in January of 2014 when venture capitalists first started to grow overly speculative and began to pour large sums of money into tech start-ups that the second tech bubble had arrived - at that time there were more than 30 companies in the US, Europe, and China that were valued at $1 billion or more by the private markets.
Our analysis was confirmed a year later when investment bankers had to deliver the news to Dropbox that there was no way it could IPO at its $10 billion private valuation, let alone provide any upside to recent investors.
Then in January of this year we pointed out that as markets were crashing, more and more "unicorns" (companies with a private valuation in excess of $1 billion) were going to be forced to raise capital at lower valuations, and these down rounds would eventually lead to firms having to admit that they'd have to go to market at a much more humble valuation than once thought.
Only one month later, we showed that the bursting of the bubble had made its way to the real economy by way of mass layoffs at all of these once up and coming technology companies. One executive recruiter said at the time "I think what we're seeing is bigger than a small correction. Everyone thinks it will be different this time, but it never is."
And finally, just today we reported that the aggregate of all of the aforementioned events has now made its way into Silicon Valley's real estate market. Luxury homes are now staying on the market longer, and the reality is finally starting to hit home: "The peak is behind us, and that's becoming clearer and clearer to builders and buyers" said an agent of real estate consultancy John Burns.

We Are Now Seeing An Unwind of Faith Of Central Banks: Mike “Mish” Shedlock