What happens when your builder goes bust? For some, their life savings disappear – ABC News

https://www.abc.net.au/news/2021-11-29/tas-family-despair-as-builder-woes-put-house-dream-in-limbo/100653544

  • The Iskanders are one of a number of clients of a Tasmanian builder left in the lurch after the company went broke
  • Sisters Maddy and Victoria Stansfield say they could lose their life savings after work stopped at their home
  • Labor’s Jen Butler says consumers have better protections when “buying a toaster” than when building a home in Tasmania

Simple math explains real reason for Musk’s Twitter poll on selling Tesla stock — RT Business News

https://www.rt.com/business/539627-musk-to-sell-tesla-stock-looming-tax-bill/

Tesla CEO and billionaire Elon Musk asked his Twitter followers over the weekend if he should sell 10% of his Tesla holdings, and they
said yes, but media reports claim he has to sell the stock soon regardless of the rhetoric.
According to a report by
CNBC, Musk faces a $15 billion tax bill on stock options expiring next
year, which is likely the real reason he considered selling 10% of his
Tesla stock in the first place.



Also on rt.com
Elon Musk speaks out after internet votes YES to him selling 10% of Tesla stock

As Musk himself declared, he doesn’t take a salary or cash bonus
from Tesla, thus his taxable wealth comes from stock awards and the
gains in the company’s share price. Musk was awarded Tesla’s stock
options back in 2012, which allows him to buy 22.86 million Tesla shares
at the fixed price of only $6.24 each. As the company’s shares closed
at $1,222.09 apiece last week, his gain on these options now totals just
under $28 billion.

Musk’s stock options expire in August 2022,
but in order to use them, he has to pay the income tax on the gain at a
combined rate of 54.1%. Simple math shows that at the current price, his
tax bill is around $15 billion.



Also on rt.com
Tesla could lose $300 billion after Musk’s itchy Twitter finger strikes again

Musk himself indicated that he will start selling Tesla stocks to
gain on expiring options at the Code Conference in September, saying: “I
have a bunch of options that are expiring early next year, so… a huge
block of options will sell in [the fourth quarter] – because I have to
or they’ll expire.

The Twitter community has been divided on
Musk’s poll. While some fretted that their Tesla holdings will drop
when Musk starts selling, some said it’s high time billionaires paid
their due. Musk himself said, “much is made lately of unrealized gains being a means of tax avoidance,” referring to plans proposed
by the Democratic Party in the US Senate, who want billionaires to be
taxed on their stock gains when the price of their shares goes up, even
if they do not sell their stocks.



Also on rt.com
Elon Musk now worth more than oil giant ExxonMobil

Many people suggested the fate of billions in taxes should not be decided by a Twitter poll. Oregon Senator Ron Wyden tweeted: “whether
or not the world’s wealthiest man pays any taxes at all shouldn’t
depend on the results of a Twitter poll. It’s time for the Billionaires
Income Tax.

We are witnessing the Twitter masses deciding the outcome of a $25B coin flip,” Venture investor Chamath Palihapitiya said, while Berkeley economist Gabriel Zucman tweeted that he’s “looking forward to the day when the richest person in the world paying some tax does not depend on a Twitter poll.”

Customs and Border Protection Seizes Imports From Chinese Company Backed By Kerry Investments

https://www.nationandstate.com/2021/11/08/customs-and-border-protection-seizes-imports-from-chinese-company-backed-by-kerry-investments/
U.S. Customs and Border Protection last week seized imports from a Chinese company backed by an investment group in which climate czar John Kerry holds a $1 million stake. Kerry and his wife are invested in Hillhouse China Value Fund L.P., part of the Hillhouse investment group that is a top shareholder in a Chinese…

The Federal Reserve’s Assault on Savers Continues | Mises Wire | MCViewPoint

https://mcviewpoint.com/2021/11/03/the-federal-reserves-assault-on-savers-continues-mises-wire/

If the federal government does not protect the American people from the Fed’s reckless monetary policies, which have caused prices to accelerate and have blown up another financial bubble, then the public “could go on strike” and withdraw their money until banks pay us a market rate of interest.

https://mises.org/wire/federal-reserves-assault-savers-continues

Murray Sabrin

The front-page headline in the Wall Street Journal on October 14 says it all, “Inflation Is Back at Highest in over a Decade.” The Labor Department reported that the Consumer Price Index (CPI) increased 5.4 percent from a year ago. This should not have been a surprise to Federal Reserve chairman Jerome Powell and his fellow board members nor to its hundreds of PhD economists who drill into the economic data to forecast the economy…

REPORT on What is Propelling Australia’s House Prices | COMMUNITY ACTION ALLIANCE FOR NSW (CAAN): HOUSING INEQUALITY WITH AUSSIES LOCKED OUT!

https://caanhousinginequalitywithaussieslockedout.com/2021/11/01/report-on-what-is-propelling-australias-house-prices/

From Four Corners copied for the record! It’s crook! (ed)

https://www.abc.net.au/4corners/four-corners–what%E2%80%99s-driving-australia%E2%80%99s-real-estate-frenzy/13612062

Going, Going, Gone: What’s driving Australia’s property frenzy

“I just don’t believe how much prices have jumped. These prices are far exceeding what I think is a fair and reasonable market price.” Buyer’s agent, Sydney

Across Australia, property prices are going through the roof, pushing the total value of residential real estate to a staggering nine trillion dollars.

“It is definitely the hottest market I’ve ever seen with the low supply, the lower interest rates and the cost of borrowing, money being so cheap.” Real estate agent, Brisbane

When the pandemic hit in 2020, there were fears the property market would collapse. Instead, house prices have risen at the fastest pace in at least three decades.

“We thought it would stop for a pandemic, but it hasn’t. I think it’s gone against all the experts and predictors out there; it just keeps going.” Auctioneer, Melbourne

City prices are eye watering, and the phenomenon is spreading. As people seize the chance to work from home, a stampede of buyers has sparked a property buying frenzy in regional Australia as well.

“Properties in Tasmania are literally selling within around about 48 hours. I’d say that for every property that we sell, we could probably sell it 10 times over.” Real estate agent

On paper, it’s made many homeowners across Australia millionaires. In reality, it’s seen buyers mortgaged to the hilt, while others are priced out altogether.

“The great Australian dream has been about home ownership. It’s now become a lot of people’s nightmare.” Housing policy expert

On Monday, Four Corners tracks the property price boom that’s fuelling risky and irrational behaviour and investigates what is driving it.

“People are buying property sight unseen from another state. People are waiving their rights to finance…they’re not doing building inspections…there’s a lot of people taking a lot of risk.” Buyer’s agent, Tasmania

For many people, the housing market has become unaffordable and it’s creating a generational divide. Home ownership among those under the age of 45 has plunged to levels not seen since the 1950s.

“For my generation it means a lot less home ownership. I feel it’s very unfair.” Sydney home hunter

There’s a sense of despair and disillusionment from many who have worked and saved, only to see their dream slip out of sight.

“I did everything right. I did everything that every politician has ever told us to do… The situation’s left me feeling completely defeated.” Nurse, Tasmania

As the divide between the haves and have nots grows, housing experts warn there will be consequences.

“Housing has become, rather than a place of security where you raise a family, something that you seek to create wealth from and speculate on. So, that is a really big shift over the last 40 years. And it’s one that I don’t think will serve the future well.” Housing expert

Going, going gone, reported by Stephen Long, goes to air on Monday 1st November at 8.30pm. It is replayed on Tuesday 2nd November at 1.00pm and Wednesday 3rd at 11.20pm. It can also be seen on ABC NEWS channel on Saturday at 8.10pm AEST, ABC iview and at abc.net.au/4corners.

Transcript

minus

Four Corners

1st November, 2021

GOING. GOING, GONE.

ADRIAN PISARSKI, EXECUTIVE OFFICER, NATIONAL SHELTER: The great Australian dream has been about home ownership; it’s now become a lot of people’s nightmare.

ELLY CLARK, HOMEBUYER: The last zoom auction we were on, we had 28 people registered to bid and it went nearly a million dollars over the guide….

How China’s Model of Dictated Economic Growth Blew Up, by Wolf Richter | STRAIGHT LINE LOGIC

https://straightlinelogic.com/2021/10/23/how-chinas-model-of-dictated-economic-growth-blew-up-by-wolf-richter/

The Chinese government steered prodigious amounts of debt towards real estate, and now China is paying the price. Perhaps a planned economy isn’t such a great idea after all. From Wolf Richter at wolfstreet.com:

The debt-fueled property & construction bubble that drove its growth turned into a huge explosive mess with an enormous amount of debt.

It’s mind-boggling just how important the residential property sector is to the Chinese economy, to what extent government-dictated economic growth was achieved by building more apartment towers, and it’s even more mind-boggling how much debt residential property developers have racked up, and how much household wealth is tied up in the property sector at multiple levels. Then there are the demographic headwinds the property sector has been facing for years, that are coming to the forefront. So now there is a property crisis in China that is making the US mortgage crisis of 2008 look like child’s play in terms of magnitude. The central government has been trying to deal with rampant real estate speculation and prevent it from going even more haywire and take down the financial system and the economy.Continue reading→