THE GLOBAL MARKET
The UK England exit of the EU-Europe Union appears to be reflecting a new Trillion Dollar Loss to Wall Street and the US. The EU and Euro Global is proving it is not a good investment now or in the future.
The result of the losses handed to the US and Wall Street since August 2015 is estimated at - 4 Trillion 500 Billion. The money did not disappear, Global and Euro Markets are continuing to capitalize on the US.
To put the -4.5 Trillion in perspective, that is enough to fund the USA Budget for 2017, 2018, 2019 and 2020 with No Income Tax Liability for the American Taxpayer.
GOVERNMENT ~ Double Bubble
The US Federal Reserve Board is planning to increase the Prime Lending Rates again, will this trigger more Trillion Dollar losses on Wall Street?
When the US Federal Reserve Board increased the Prime Lending Rate on December 16, 2015 that resulted in a -1 Trillion and -340 Billion or more, financial losses to America and American Investors.
STOCK MARKET ~ Bubble Trouble
Prior to August the future of the Stock and Bond markets was predicted at a anticipated +4.44% Annual Yield for 2016. That is about -1% below Wall Streets 100 year average.
What is not being said is that before you calculate any yield you might receive from Wall Street in 2016, (stocks, bonds, major markets and treasuries currently are in a negative yield) deduct your principal losses and the non yield months for those losses and know in all probability there is more downside to come in the near future.
Warren Buffet is exiting a number of areas in the Stock Market, should you?
A FUTURE FINANCIAL OUTLOOK
Wall Street is showing that the Global Bubble, Stock Market Bubble, has popped and is deflating consistantly since August 2015.
THE EU-EURO UNION, EURO
One of the main motivations of the EU Europe Union is worker migration within the Euro Union Countries that impact other Countries in the EU beyond their control.
One of the benefits of the EU and the Euro Central Bank is that they allow a Country to increase their debt via loans from the Euro Bank based on a lower repoted unemployment percentage. The issue is that a Country with assets may be asset deminished in some degree because of the worker migration and displacement of their citizens, in the work force, in addition to other past, present or new requirements of the EU. Possibly until their are no or lower assets left in the Country.
One of the EU concepts is that you let workers move from Country to Country and again you can increase your Country's debt. The end game is that at some point the EU oversite has some control over your Country's future. The upside of the EU is that smaller euro countries can participate like a larger GDP Country in a World Economy.
REAL ESTATE MARKET
The Real Estate Market and the Resale
Housing Market in the USA is at +1.9%
(+ one and nine tenths percent) from January
through May 2016 according to the
National Association Of Realtors.
The pit fall of the market is that middle class America housing market is in gridlock. First Time Home buyers account for about 30% of the Home Sales and 39% is Investor, Cash and Distressed Sales and homes from $250,000 to $1,000,000 plus.
The median family income has had moderate fluxations but really hasn't changed since 1996. The American family home buyer who was the dominate home buyer and seller until 2008 has become the lesser of all market home buyers.
Again the current administration leaves main street Americans without a investment future or the American Dream, a family home.
Wall Street losses have exceeded any gains since December 18, 2015. Americas economic picture keeps getting worse, faster with huge Trillion Dollar losses and double and triple digit Billion dollar losses. Nothing is being done by the Administration to institute a Global Investment Stop Loss Aggregate.
The real estate market continues to be a Bear Market due to the position of the US Federal Reserve Chair Janet Yellen whose position is, raising Prime Lending Rates as soon as the Fed can find any support to do so. There is no support for a increase, but that did not stop the Fed Chair Janet Yellen a Democratic Appointee in December 2015.
|US MEDIAN FAMILY INCOME
|US CENSUS BUREAU 6- 28- 2016
2015 FIGURES WILL BE
AVAILABLE SEPTEMBER 2016
REAL ESTATE FUTURES
Before the USA Real Estate market can recover the middle class family has to recover with more income and flexibility. This will stimulate growth in America as Real Estate and its related products and sales is approximately 50% of the US Economy. Wall Street who is posting Trillion Dollar losses quarterly is considered the other 50%.
|USA AVERAGE HOME
QUICK QUALIFIER INFO
2016 - $30,255.
2000 - $28,408.
Estimated Average Family Income
2016 - $52,000
Home Average Price
5/2016 - $239,700.
Income to Qualify with 20% Down $4333.33 Month (or $52,000. Annual)
Loan Rate 3.5% 30 due in 30 Yrs.
Payment $861.00 a Month
Taxes and Insurance $249.00
Other Debt $533.33
$1643.00 PITI and Debt per Month
Variance is estimated upward at +2%
Cash Downpayment required is
estimated at $48,000.
Red indicates a Potential Deficiency
||3.50 % v
||3.25 % v
||3.25 % v
||3.875 % v
|10 Yr. Fixed Due in 20 $6,000,000.
||0 Cost v
||5.375 % v
|0 Point Rates
|HISTORY REPEATS ITSELF
Speculation: The reality of the Gross Average Income figures shown above is they have not been adjusted for inflation. The Inflation Rate adjustment lowers the income amount according to the US Census Bureau.
Most recent example:
In 2014 the median household income was $53,657 according to the U.S. Census Bureau.
In the three consecutive years, 2012, 2013, 2014 the household income change was not statistically significant.
The Inflation Rate in 2014 was
0.8% x $53,567 = $53,227. Actual Income
Based on the Above calculation for 2015 will be released September 2016.
HOME PURCHASE COMMENTARY
The Family Average Income is $52,000. annual now in 2016. The Median Income Level is $30,311. Both Family's and Individuals may qualify to Buy Homes.
Therefore the real average income of a Americans buying a home is less than the Average Family Income of 2 wage earners, at approximately $13.54 per hour, per wage earner to reach $52,000.
As you can see there is a chance you can buy the average priced home in America if you are at the very top of the Average Family Income scale.
The other issue is the down payment of $47,940 plus Closing Costs $5,992. and any additional costs based on locality requirements.
The average American Savings Account is $9,877. US Dollars according to US Government estimates.
Interest rates are decreasing as of June 29, 2016. The real estate market is volatile with the expectation of a Fed Reserve Prime Lending Rate increase on the Feds table again in mid August.
Any increase would in all probability would result in less Resale Housing Sales.
New Housing Sales are currently having selling issues with a average sales price of $287,313 .