Florida Condo Prices in Free Fall

Authored by Mike Shedlock via MishTalk.com,

Have a Florida condo? Can you afford a $100,000 or higher special assessment for new safety standards?

After the collapse of a Surfside Building on June 24, 2021that killed 98 people, the state passed a structural safety law that is now biting owners.

Not only are insurance rates soaring, but owners are hit with huge special assessments topping $100,000.

New Florida Law Roils Its Condo Market

The Wall Street Journal reports New Florida Law Roils Its Condo Market

Condo inventory for sale in South Florida has more than doubled since the first quarter of last year, to more than 18,000 units. While the sharp rise in Florida home insurance costs is driving some to sell, most of the units on the market are in buildings 30 years or older. Under the new law, buildings must pass milestone structural inspections no later than 30 years after they are built.

In Miami, about 38% of the housing stock is condos, the highest of any major metropolitan area in the U.S., according to Zillow. Of those buildings, nearly three-quarters are at least 30 years old. For those that have large repairs looming, many owners are scrambling to sell before Jan. 1 when building reserves must be fully funded to be in compliance with the law.

“I think this is just the beginning,” said Greg Main-Baillie, an executive managing director at real-estate firm Colliers, who oversees 40 condo renovation projects across the state.

Owners are struggling to find all-cash buyers because mortgage lenders are increasingly unwilling to take on the risk associated with these units. “It’s not the buyers that aren’t qualifying,” said Craig Studnicky, chief executive at ISG World. “It’s the buildings that aren’t qualifying.”

State law previously allowed condos to waive reserve funding year after year, leading many buildings, including the nearly 50-year-old Cricket Club, to keep next to nothing in their coffers. Now, about 40 units in the building of 220 are listed for sale but are seeing little interest.

“These units are practically being given away,” said Sari Papir, a retired real-estate agent who has lived in the Cricket Club with her partner Shaul Szlaifer since 2018. “Even if we found a buyer, what could we buy with the pennies we’d receive for our unit?”

Some are worried developers may already be purchasing condos in the building for a potential takeover, where a developer tries to gain control of a building to knock it down and build a newer, more luxurious one. These condo terminations are happening up and down the state’s coastline. While the rules can vary by building, if enough people vote to sell their units, the others have to follow along.

No Way to Escape the Assessment

Those who cannot sell and don’t have the special assessment, will be evicted and their units seized for whatever the Associations can get for them.

South Florida listings have doubled in the past year to over 18,000. Few of those units will sell, and those that do sell will be at a huge haircut.

The Journal noted the plight of Ivan Rodriguez who liquidated his 401K to buy a condo for $190,000. He then faced a $134,000 special assessment. Eventually he sold the unit for $110,000.

Got the Insurance Blues?

Auto insurance is up more than 20 percent from a year ago. In many places, private home insurance isn’t available at all. Consumers are steaming.

Insurance data from the BLS, chart by Mish

On February 17, 2024 I asked Got the Insurance Blues? Auto and Home Insurance Costs are Soaring

Car insurance is on an amazing run. For 13 straight months, insurance is up at least 1.0 percent. For 20 straight months car insurance is up at least 0.7 percent.

Home insurance, if you can get it at all from any private insurer, is also rising at a fast clip.

If you live in a flood zone, hurricane zone, or fire zone, insurance may be very difficult to get.

Proposition 103 Backfires, State Farm to Cancel 72,000 California Policies

Citing wildfire risk, State Farm will not renew policies on 30,000 homes and 42,000 business in California. Blame the state, not insurers.

On March 26, I noted Proposition 103 Backfires, State Farm to Cancel 72,000 California Policies

Proposition 103 limited the annual increases of insurance companies. State Farm responded by cancelling 72,000 policies.

The Idiot’s Response

Carmen Balber, the executive director of Consumer Watchdog, said “The industry is not going to start covering Californians again without a mandate.”

That is why we think the legislature needs to step in and require insurance companies to cover people.

Force companies to cover people. What a hoot. The insurers would all leave and everyone would be on the “FAIR” plan.

Think!

Think carefully about where you want to live. And if it’s a condo, you better be prepared for huge special assessments.

Andrey Belousov’s Plan for Russia’s War Economy

As Putin’s adviser on economics, Andrey Belousov proposed increasing the role of the state in the economy. He was a monetarist in his youth and became a Keynesian. And he suggested that the state should subjugate big business.

In the West, the main explanation for the appointment of Belousov as Minister of Defense is that Putin is preparing for a long war, and for this Belousov will rebuild the entire Russian economy in a military format. Everyone in the media asks about this. Will there be a long war?

Russia does not want a long war. But to avoid a long war, you need to be very well prepared for a long war. Otherwise, the West will never stop the war against Russia.
Therefore, Belousov’s task is to create a modern Russian army with which the West would not want to fight, but to make peace.

Belousov is a “military Keynesian,” his informal ideological name. Military Keynesians say that during a war you need to throw a lot of money into the military-industrial complex and this will be very beneficial for economic growth. And after the war, carry out the conversion of technologies from the military-industrial complex to civilian industries and thus again give impetus to economic growth and a technological breakthrough. Sounds very reasonable.

Nord Stream Gas Pipeline Attack – Another Theory

Here is one theory:

Terrorist attack on the Nord Stream gas pipeline. An “investigation” is underway. What is the picture now?
1. Chief coordinator of the terrorist attack, Deputy US Ambassador to Ukraine Christopher Smith. After the terrorist attack, he was promoted to the position of Deputy Assistant Secretary of State for European and Eurasian Affairs.
2. A group of former Ukrainian intelligence officers was created for the terrorist attack itself. 3. The group was directly led by Roman Chervinsky.
4. General management – former head of the Main Intelligence Directorate of the Ministry of Defense of Ukraine Vasily Burba.
5. Kirill Budanov, the current head of the Main Intelligence Directorate of the Ministry of Defense of Ukraine, actively participated. 6. The group was trained in the Zhytomyr region, in a deep-sea quarry.
7. At the second stage, the group worked at a military base in Romania in the city of Mangalia. 8. Equipment and technical guidance were provided by US intelligence officers. 9. The yacht Andromeda was rented from Poland for the terrorist attack.
10. The mines were directly installed by Oleg Varrava, from the main police department of Kyiv, Ruslan Rudenko, former deputy mayor of the city of Bila Tserkva, and a still unknown diver with the call sign “Marisha”. All mercenaries.
11. A terrorist attack scheme was chosen with the help of mercenaries and retired officers in order to simulate a terrorist attack not as a state attack, but as an “activist” one.
12. Thus, the organizers of the terrorist attack are the intelligence services of the United States and Ukraine, with the complicity of the intelligence services of Poland and Romania.
13. The top leadership of the USA, Ukraine, Poland, Romania, Germany, Sweden, and Denmark can be considered accomplices in the terrorist attack. They all know who carried out the terrorist attack, but they are trying to hide the criminals from their citizens.

Quote from Andrey Belousov, Russia’s New Defense Minister

An interesting quote by the new Russian Minister of Defence Andrey Belousov: ‘By preserving traditional values of the West, which are originally the values of Western Christian European civilization, Russia can become a guardian of these values. This may seem like a paradoxical idea, but it is nonetheless true. Therefore, it is incorrect to say that the West is our enemy.’

Western Police Beating Own Citizens in the Name of Israel

Amsterdam, 2024: Police Officers Assault Their Own Citizens in the Name of Israel. Medieval.

If this had happened in Iran, Russia or China, these scenes would have made international news and Western governments would have risen up in protest and anger.

‘Rules-based’ western democracy in action.

What Does it Take to Be Middle Class in the US These Days?

by Gabrielle Olya Edited by Gary Dudak via gobankingrates

Over the last decade, the household income needed to be a part of the middle class has increased significantly. In 2012, a household income of $35,364 qualified you as a member of the middle class in the U.S.; in 2022, $50,099 was the lowest minimum household income threshold.

It also takes a lot more to reach the next level of wealth. In 2012, the highest household income considered to be middle class was $106,092, but as of 2022, that high end of the middle-class household income spectrum had reached $150,298. Overall, the household income required to be considered middle class in the U.S. has increased by 41.67% during that time frame.

However, the shifts in middle-class household income requirements have not been the same in every state. In some states, the household income range of the middle class hasn’t increased quite as much as the national average. On the other hand, it’s shot up by as much as 53.15% in one state.

To find the household income needed to be middle class in each state, GOBankingrates defined “middle class” as those with an annual household income that is two-thirds to double the median income.

Here’s a look at how much the definition of middle class has changed in every state from 2012 to 2022. States are ranked by largest to smallest percentage change.

Key Findings

  • Mississippi has the lowest household income needed to be middle class. As of 2022, a $35,323 salary is considered middle class in the state.
  • Maryland has the highest household income needed to be middle class. As of 2022, $65,641 is the lowest household income that qualifies you to be considered middle class in the state.
  • The definition of the middle class has changed the least in Alaska. The household income needed to be middle class in Alaska has increased by just 23.53% from 2012 to 2022.
  • In Oregon, the household income needed to be middle class has increased by 53.15% from 2012 to 2022 — the biggest increase of any state.

Read more here https://www.gobankingrates.com

Angry Rant

ANGRY RANT: 

“If you’re not absolutely disgusted about what’s going on in Gaza, you’re lying to yourself!”

Happy TikToker loses her temper over Gaza!

What if Russia Does Not Win the Ukraine War Soon?

There are disturbing signs that the West is serious about making this a “forever war.” The idea is even worse than it looks at first sight.

By TARIK CYRIL AMAR

Tarik Cyril Ama is s historian from Germany working at Koç University, Istanbul, on Russia, Ukraine, and Eastern Europe, the history of World War II, the cultural Cold War, and the politics of memory

https://tarikcyrilamar.substack.com/p/what-if-russia-does-not-win-the-ukraine

At this moment (and for quite a while already), Russia clearly has the initiative in the war between it, on one side, and Ukraine and – de facto – the West on the other. High Ukrainian officials and military officers – including the commander-in-chief Oleksandr Syrsky and the deputy head of Kiev’s military intelligence service Vadim Skibitsky – are admitting publicly that their country is in deep trouble. Realistic observers in the West, such as Brian Berletic and the Duran’s Alexander Mercouris and Alex Christoforou, correctly point out that the West’s injections of aid cannot turn this situation around, partly because there is no way to compensate for Kiev’s lack of manpower and partly because the West itself does not, actually, have industrial resources to render support at a scale that would make an effective difference.

We also know that Russia has built up large reserves, which it has not yet committed to the fight. Moreover, there has been an intriguing shift in Russian terminology: While the term “offensive” has been avoided for a long time – with Russia categorizing its territorial gains as the result of a strategy of “active defense” – it has now popped up officially. The Russian Minister of Defense is reported to have spoken of the need to step up supplies to the front in order to “maintain the required pace of the offensive.” This may or may not have been a deliberate signal. It could also be a simple way to keep Ukraine and the West guessing. Yet, taken together with recent Russian advances and other operations – such as air strikes on Odessa and Kharkov/Kharkiv – it could mean that Moscow will launch a major offensive either this spring or summer, as many observers are expecting.

In one scenario, then, the war could end this year, with a Russian victory. The extent and precise political shape of that victory cannot be predicted. Capturing all of Ukraine east of the Dnepr/Dnipro River (plus those parts of the Zaporizhzhia and Kherson regions (oblasts) to its west? Seizing major cities such as Odessa and Kharkiv? Another strike at the capital Kiev/Kyiv? Likewise, we can’t forecast what kind of Ukraine would emerge from such a Russian victory: A neutralized and regime-changed rump state? A rump state bent on revenge and continuously subsidized by the West?

In a highly unlikely – given the West’s persistent refusal to consider a real compromise as a way out – the war could end with a negotiated peace, which, given the realities on the ground, would have to be shaped in Russia’s favor and thus would amount to victory by another name.

But it would be unwise to rule out a third possibility. It is true, that the West does not have the means to make Ukraine win. Yet it is crucial to distinguish between this fact and what Western leaderships are ready to acknowledge. The West, in short, is not rational, and it has displayed an enormous capacity for wishful thinking.

Hence, we should pay close attention to signs that the West is seeking to prolong this unnecessary war for years by any means it can. Recently, in particular, there have been several such worrying signs. Here, I would like to highlight three of them:

First, the Biden administration National Security Adviser Jake Sullivan has declared that Ukraine should, in essence, hold out this year, so that in 2025, the West can use it again to launch another offensive against Russia. The Ukrainian president Volodymyr/Vladimir Zelensky has also spoken of trying to attack again, provided his country will receive more Western weapons. Both statements are unrealistic – not a first from either Sullivan or Zelensky – suggestion, but let’s set that aside for a moment. Our question here is what harm policies based on unrealistic assumptions can still do.

Second, the Italian newspaper Republicca has published an article – most likely based on deliberate leaks – that purports to report internal NATO thinking on “red lines” in Ukraine. That is, under what circumstances NATO would intervene directly – and, conversely, under what circumstances it would not do so. In essence, the reported “red lines” – as summarized in the Ukrainian publication Strana.ua boil down to two: NATO, so this article claims, considers intervening directly, if Belarus joins the war on Russia’s side (or if Russia launches another major attack from Belarussian territory) or if Russia goes beyond Ukraine’s borders to attack either a NATO member state (duh, frankly) or Moldova, which is not a member but a target of NATO expansion policy. Once again, let’s not immediately get sidetracked by dismissing these purported NATO “red lines” as nothing but a reflection of NATO’s exaggerated sense of its own capacities. They may well be that, but that does not mean that they are not meant seriously or that they can’t do great damage. As they are, they seem to reflect a desire to keep the war in Ukraine and to deter Russia from one of its most devastating conventional options, namely a fresh strike on Kiev/Kyiv from Belarus. That points to an intention to both “cage the war in” and keep it going.

Third, the USA is continuing its push to confiscate Russian state assets of about 300 billion dollars that are currently frozen in Western banks. It has not yet succeeded in persuading the Europeans to join this operation, and on its own, Washington cannot seize – really, steal – more than a few billion. It is, however, the intention that counts here, and that is to find the equivalent of a fairytale pot of gold to go on paying for the proxy war in Ukraine.

Taken together, such Western signals remain hard to read with confidence: They could be no more than a façade of bluffs, meant to distract Russia from pursuing its clear advantage on the ground to full extent. In that interpretation, this is, in essence, a desperate West trying to cheat its way out of a clear, incontrovertible, and very discrediting defeat.

Yet, despite the fact that all of these ideas are deeply unsound, they could also reflect an earnest intention to drag this war out. Behind this could be an idea that Russia’s successful economic mobilization also has costs and may, in its current form, not be sustainable for years. That is, incidentally, the message of a recent Financial Times article that, we may be confident, does not lack political inspiration. The key fantasy here is, in short, to make the war last long enough so that the West can turn the logic of attrition against Russia.

Once again, the key question – in terms of the harm all of this can do – is not, actually, if it could “work.” It very probably cannot. The key question, instead, is what can happen while the West tries such a policy, and it fails. And there the greatest single risk is that if Moscow should ever come to believe that the West might succeed in applying a new combination of proxy war and long-term attrition, it would be sorely tempted to cut that scheme short, including by a limited nuclear strike to make clear that it will simply not accept such “new rules of the game.”

Once a “small” nuke is used, there is, of course, no telling where the escalation will end. It is a bizarre idea to think that we could end much of humanity because Ukraine needed to have an “open door” to NATO through which, however, it was not really supposed to actually ever walk.

I started writing this post before I saw a new piece of news: The Russian President has just ordered forces near Ukraine to drill for the launch of tactical nuclear weapons. I cannot say I am surprised. But we should all be very scared indeed. And, ideally, we should finally sit down and negotiate a realistic compromise.

Are the US and NATO Planning to Neutralize Kaliningrad?

by Germán Gorraiz López, Political analyst

The father of the Argentine Constitution, Juan Bautista Alberdi, in his book “The Crime of War” written in 1872 states that “wars will be rarer as responsibility for their effects is felt by all those who promote and incite them”. This anticipated by almost a century the end of the nuclear escalation that had its turning point in the Cuban Missile Crisis and culminated with Kennedy and Khrushchev signing the Nuclear Test Suspension Agreement (1962) and the implementation of the Doctrine of Peaceful Coexistence.
However, with the Ukrainian conflict we have witnessed the return of the Cold War between Russia and the US (Cold War 2.0), the withdrawal of the US from the INF Treaty and the consequent revival of the nuclear race.

NATO and the Doctrine of Containment
Joe Biden’s harsh statements about Russia (“Putin is a war criminal”) and the implementation of sanctions to achieve the economic suffocation and financial starvation of Russia as part of the Ukraine conflict have ushered in Cold War 2.0 and the return of the geopolitical thesis of George Kennan, known as the Doctrine of Containment. The foundations of this doctrine were laid by George F. Kennan in his essay “Sources of Soviet Behavior”, published in the journal Foreign Affairs in 1947. The main ideas are summarized in the quote, “Soviet power is impervious to the logic of reason but very sensitive to the logic of force”.

Furthermore, following the increase in NATO military forces with new battalions deployed on the European border with Russia, we are witnessing the violation of the 1997 NATO-Russia Founding Act by which NATO ruled out “the permanent stationing of a substantial and additional contingent of combat troops in Eastern Europe” as well as the recent entry of Sweden and Finland into NATO military structures and the fifth phase of deployment of missile shield in Europe (Euro DAM).

Will Kaliningrad be the epicenter of the new Missile Crisis?

Due to its geographical position, the province of Kaliningrad is an ideal platform for means of electronic espionage and missile batteries aimed at controlling and neutralizing possible hostile actions by the US, which makes it the likely target of a preemptive first strike.

Thus, the former NATO commander-in-chief in Europe, James Stavridis, in an article published in Bloomberg, describes Kaliningrad as “a geographical corner between Estonia, Latvia, Lithuania and the rest of NATO”, rendering necessary “the neutralization of Kaliningrad in the event that the conflict with Russia breaks out so that the Suwalki corridor, which runs along the border between Lithuania and Poland, does not fall under the control of Moscow”.

The fifth phase of the anti-missile shield in Europe (Euro DAM) started with the US deployment of the Aegis Ashore anti-ballistic defense system at the Deveselu (Romania) base, just 600 km from the Crimean peninsula, which entered into service in May 2016. Russia responded by proceeding to install in Kaliningrad Iskander missiles equipped with multipurpose warheads as well as S-400 anti-aircraft missiles, leading the political scientist Vladimir Abrémov to remark, “the province of Kaliningrad will again play the role of pistol at the temple of Europe just like two decades ago”.

Likewise Putin, in a message to the Federal Assembly, issued the warning to NATO that “Russia could also use the Tsirkon hypersonic missile, which has a speed of Mach 8 and, launched from submarines, could reach any US Command Center in five minutes, as well as the Burevestnik cruise missile and the Poseidon nuclear submarine drone”.

However, Biden’s geopolitical short-sightedness in his obsession with subjugating Russia will only increase Putin’s anger. If, following the entry of Sweden and Finland into NATO, the Kaliningrad exit to the Baltic Sea is closed, we could see a repeat of the Kennedy-Khrushchev Missile Crisis (October, 1962) with its epicenter in Kaliningrad.

A Pessimistic Economist Laments The End Of Order

via Moon of Alabama

The magazine for and by multi-millionaires and billionaires, The Economist, warns that the end is imminent:

The liberal international order is slowly coming apart – (archived)
Its collapse could be sudden and irreversible

For years the order that has governed the global economy since the second world war has been eroded. Today it is close to collapse. A worrying number of triggers could set off a descent into anarchy, where might is right and war is once again the resort of great powers. Even if it never comes to conflict, the effect on the economy of a breakdown in norms could be fast and brutal.

It is, in my view, true that the ‘liberal international order’, which after World War II largely regulated world trade and politics is in demise.

But who’s fault is that?

The examples The Economist gives to support its central claim point to one culpable nation:

As we report, the disintegration of the old order is visible everywhere. Sanctions are used four times as much as they were during the 1990s; America has recently imposed “secondary” penalties on entities that support Russia’s armies. A subsidy war is under way, as countries seek to copy China’s and America’s vast state backing for green manufacturing. Although the dollar remains dominant and emerging economies are more resilient, global capital flows are starting to fragment, as our special report explains.The institutions that safeguarded the old system are either already defunct or fast losing credibility. The World Trade Organisation turns 30 next year, but will have spent more than five years in stasis, owing to American neglect. The IMF is gripped by an identity crisis, caught between a green agenda and ensuring financial stability. The un security council is paralysed. And, as we report, supranational courts like the International Court of Justice are increasingly weaponised by warring parties. Last month American politicians including Mitch McConnell, the leader of Republicans in the Senate, threatened the International Criminal Court with sanctions if it issues arrest warrants for the leaders of Israel, which also stands accused of genocide by South Africa at the International Court of Justice.

It is the U.S., the country which arguably benefited the most from the liberal international order, which is actively destroying it.

Others, if they did not attract random U.S. rage and war against them, also saw some benefits from it. Those small to medium countries will most likely lose out should the current regime collapse.

That would not be unprecedented:

Unfortunately, history shows that deeper, more chaotic collapses are possible—and can strike suddenly once the decline sets in. The first world war killed off a golden age of globalisation that many at the time assumed would last for ever. In the early 1930s, following the onset of the Depression and the Smoot-Hawley tariffs, America’s imports collapsed by 40% in just two years. In August 1971 Richard Nixon unexpectedly suspended the convertibility of dollars into gold; only 19 months later, the Bretton Woods system of fixed-exchange rates fell apart.

Similar ruptures, like the examples above again caused by the U.S., may happen soon.

Interestingly the Economist does not name a solution or way to avoid it. It sees a collapse coming, blames -more or less- the U.S. for causing it, but does not point to way out of it.

That is an uncharacteristically pessimistic view for writers who otherwise like to paint a positive picture for those with big money.