Monthly Archives: July 2016

Republicans on Dodd Frank

Just in case anyone thought that the Democratic Party intends to stand idly by while President-elect Donald Trump and the Republican Party move to undo many of the financial reforms of the last eight years, one of its most outspoken members pledged this week to fight Trump and the Republicans every step of the way.

On Thursday, Trump’s transition team began releasing some of its plans, laying the groundwork for how the Trump administration will fulfill some the promises Trump made on the campaign trail and deliberating about cabinet positions.

One of the main tenets of the Trump team’s plan is the “dismantling” of the Dodd-Frank Wall Street Reform Act, but Sen. Elizabeth Warren, D-Mass., said Thursday that she and the rest of the Democratic Party are prepared to work with the president-elect if he wants to “increase the economic security of middle-class families.

But if that’s not Trump’s plan, Warren warned that the Democrats will fight back.

“I will put aside our differences and I will work with him to accomplish that goal,” Warren said of Trump in a wide-ranging blog post on her website. “I offer to work as hard as I can and to pull as many people as I can into this effort. If Trump is ready to go on rebuilding economic security for millions of Americans, so am I and so are a lot of other people — Democrats and Republicans.”

But Warren doesn’t want to see Trump and his fellow Republicans undo much of the work done by the Dodd-Frank Act and the Consumer Financial Protection Bureau.

“But let’s also be clear about what rebuilding our economy does not mean,” Warren wrote.

“It does not mean handing the keys to our economy over to Wall Street so they can run it for themselves. Americans want to hold the big banks accountable,” Warren wrote.

“That will not happen if we gut Dodd-Frank and fire the cops responsible for watching over those banks, like the Consumer Financial Protection Bureau,” Warren continued. “If Trump and the Republican Party try to turn loose the big banks and financial institutions so they can once again gamble with our economy and bring it all crashing down, then we will fight them every step of the way.”

Warren, the chief architect of the CFPB, is a passionate supporter of banking regulation and accountability. During the Senate Banking Committee’s hearing on the Wells Fargocross-selling scandal, she called on Wells Fargo CEO John Stumpf to resign, pointing out what she said was his “gutless leadership.”

Warren acknowledged in her blog that much of Trump’s messaging during the campaign spoke to the real issues that many Americans have with how business is done in Washington.

“If we have learned nothing else from the past two years of electioneering, we should hear the message loud and clear that the American people want Washington to change. It was clear in the Democratic primaries,” Warren wrote. “It was clear in the Republican primaries. It was clear in the campaign and it was clear on election day. The final results may have divided us — but the entire electorate embraced deep, fundamental reform of our economic system and our political system.”

Warren said that Trump’s campaign tapped into the anger that many Americans feel about their station in life right now.

“The truth is that people are right to be angry. Angry that wages have been stagnant for a generation, while basic costs like housing, health care, and child care have skyrocketed,” Warren wrote.

Warren noted that Trump won the presidency “under a Republican flag,” but states that the traditional Republican way of doing business was rejected, in the primary, during the campaign and on election day.

Investors look to buy a home

unduhan-77Many investors in states with more expensive housing markets look to other states to purchase their investment properties.

As it turns out, many of those less expensive housing states are red states, that is, states that traditionally vote Republican, and many of the out-of-state investors are from blue states, or states that traditionally vote Democrat, according to a new report from ATTOM Data Solutions, a fused property database.

The report shows that 3.4 million single-family investment homes nationwide are owned by an out-of-state investor. That is about 16% of all single-family investment homes.

Here are the top 10 states with the most investment homes owned by out of state investors, where those investors are from, and if the state is red or blue – based on the most recent presidential election:

10. New Jersey

Single-family investment homes: 108,919

Where out-of-state investors are from: Pennsylvania with 42,361

9. Pennsylvania

Single-family investment homes: 1113,070

Where out-of-state investors are from: New York with 24,699

8. Michigan

Single-family investment homes: 116,137

Where out-of-state investors are from: Illinois with 22,271

7. California

Single-family investment homes: 117,139

Where out-of-state investors are from: Texas with 15,534

6. Texas

Single-family investment homes: 139,358

Where out-of-state investors are from: California with 51,069

5. Georgia

Single-family investment homes: 159,899

Where out-of-state investors are from: Florida with 39,691

4. Arizona

Single-family investment homes: 162,069

Where out-of-state investors are from: California with 55,822

3. Tennessee

Single-family investment homes: 185,116

Where out-of-state investors are from: Florida with 40,000

2. North Carolina

Single-family investment homes: 202,431

Where out-of-state investors are from: Florida with 38,045

1. Florida

Single-family investment homes: 365,959

Where out-of-state investors are from: New York with 51,967

Increased before elections

Consumers grew more confident in the economy the month leading up to the presidential election.

The Index of Consumer Sentiment increased 5% from September, according to the Survey of Consumers conducted by the University of Michigan.

The index increased to 91.6 in November, up from 87.2 in October and 91.3 last year. Current Economic Conditions increased from 103.2 in October and 104.3 last year to 105.9, and the Index of Consumer Expectations increased 7.4% from last month’s 76.8 but down 0.5% from last year’s 82.9 to 82.5.

An article by Jill Mislinski for Advisor Perspectives explains what this means historically:

The Michigan average since its inception is 85.4. During non-recessionary years the average is 87.6. The average during the five recessions is 69.3.

“The recent gain in sentiment was driven by an improved outlook for the economy,” said Richard Curtin, Survey of Consumers chief economist. “The most striking finding in early November was that both near and long-term inflation expectations jumped to 2.7% from last month’s record matching lows of 2.4%.”

“These increases must be replicated before they can be taken to indicate a troublesome development; thus far, the data has simply repeated the March 2016 peaks,” Curtin said. “Nonetheless, it may be viewed as added justification for next month’s expected interest rate hike.”

Since the election, experts have presented conflicting opinions on the probability of an interest rate hike in December.

“The expected small increase in interest rates had little impact on favorable buying attitudes, and still supports a 2.5% increase in real consumer spending during 2017,” Curtin said. “Unfortunately, the November data must be accompanied by the proviso that it was collected before the result of the presidential election was known late Tuesday.”

November’s final estimates could look very different.

“The shock victory of Donald Trump means that the final estimate of confidence reported later this month could be much lower, not least because Hillary Clinton appears to have narrowly won the popular vote,” Capital Economics Economist Andrew Hunter said.