Just as in China, America- through monetary tightening and tax policy- is fighting a housing bubble. In an environment of stagnant wages and rising interest rates and house prices out of whack with incomes, the government is secretly fighting a war. Pervasively low borrowing rates for years, which has not only encouraged home buyers, but has also encouraged investors from the U.S., China, Russia, and many other nations to buy homes as investments, has caused an enormous bubble to form. Another major contributor to this bubble is commercial real estate. No- not the price of commercial real estate- but the deflation in retail and office space due to technology, e-commerce and the office sharing movement, respectively. Because of value deflation from oversupply and under-need in retail and office markets, investors and builders have turned to residential investments as safer bets. This has pushed home prices too high and caused too much residential construction. Rate hikes and stagnant wages will cause a fast decline- soon.
Former Chairpersons Janet Yellen and Alan Greenspan have both acknowledged existing asset bubbles, generally. Chairman Powell, however, in his recent testimony to Congress, specifically denied a housing bubble. He is not wrong- he is just being deceptive. He is managing the problem- in the same way that financial analysts and traders refuse to mention the potential housing crisis for fear of causing a panic and another economic collapse. Real estate is the only asset class that Chairman Powell specifically said is fairly valued. Since when does a Fed Chairman give his analysis of a specific asset class like real estate? Oh- right- Alan Greenspan said the same thing in 2006. Hmm. I’m dubious when the Fed Chairman makes a point of mentioning that real estate looks all clear.
Rising interest rates, despite a lack of notable or noteworthy inflation, in concert with tax policies that are unfriendly to real estate, are taking hold and affecting housing markets … quietly … as the Fed barely mentions the “b” word (bubble), while one clearly exists.
Denial is not a river in Egypt- it’s a concerning stream of consciousness.
Neil S. Siskind, Esq., President
The Siskind Law Firm
Neil Siskind is the Founder & Chairman of The Fatherhood Assignment
Learn more at: http://www.neil-siskind-the-fatherhood-assignment.org/
Neil Siskind is the Conservator of the Neil S. Siskind Nature Preserve
The Neil S. Siskind Nature Preserve is over 7 acres of environmentally-pristine waterfront land in a magnificent setting along New York’s majestic Hudson River. The Preserve includes a variety of species of animal and plant life, and is a precious example of the thoughtful maintenance of New York’s priceless open spaces. The land’s uses are limited to outdoor recreation such as hiking and climbing, and the study of ecology, nature and land use. The Neil S. Siskind Nature Preserve allows for the intelligent contemplation of our valuable natural resources and the most effective ways to maximize them and keep them protected.
Neil Siskind, Founder, “National Fatherhood Day” – March 29th
Read about the non-profits and charities whose missions Neil Siskind supports and promotes: www.neilsiskindsupports.com
Caring is Free®
You can read what clients and associates say about Neil Siskind at: http://siskindlawfirm.com/neil-siskind-bio/.
Neil Siskind’s Volunteer Work:
– Memorial Sloan Kettering Cancer Center, Volunteer
– Memorial Sloan Kettering Cancer Center, My Fundraiser- Help Neil Siskindhelp children with cancer to be more comfortable: http://mskcc.convio.net/site/TR?px=3182108&fr_id=2632&pg=personal
– Make-A Wish Foundation- Help Neil Siskind make sick children’s wishes come true by creating your own fundraiser: Neil-Siskind/Help-Make-A-Child-Smile.htm
– DonorsChoose.org- Donate to one of my needy public classrooms: http://www.donorschoose.org/NeilSiskindGiving
– Champion Children– We seek to inspire people through stories of children who have overcome challenges: http://siskindlawfirm.com/neil-siskind-champion-children/
Neil Siskind’s Pro Bono Work:
– Saving Senior Citizens- Protecting New York’s senior citizens from fraud and financial abuse www.savingseniorcitizens.com
– Senior FreeStart Business– Pro Bono: We seek to help put senior citizens in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/
– Veteran FreeStart Business– Pro Bono: We seek to help put Iraq and Afghanistan war veterans in the right direction so that they can face the challenges of the modern economy: http://siskindlawfirm.com/free-start-business/
– In development: The Neil S. Siskind School of Hope: A free school to teach inner-city youths the skills of entrepreneurship and importance of economic self-sufficiency.
Neil Siskind’s Government Work:
– Suffolk County District Attorney’s Office, Boston, MA, 1994, Intern
– Office of Senator Christopher J. Dodd, Newington, CT, 1992, Intern
– Hartford County Department of Probation, Hartford, CT, 1991, Intern
Neil Siskind’s Community Assistance:
Financed & operated a legal clinic providing low-cost legal services to struggling Long Islanders during the recession to help clients resolve debt, organize finances, and launch new businesses.
Neil Siskind’s Professional Curriculum Vitae: http://neilsiskind.com/
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