Housing Prices over 60 Years

More evidence that home prices have been, more or less, constant since WWII.  The bubble was completely unusual so be sure that your house will not be a good long-term investment.  There is a good chance that someday the government will decide that it is a huge give away to subsidize people’s homes with large interest rate deductions.  Imagine when the choice is between the home deduction and paying for medicare and social security in the future.  The latter two are likely to win in the future as the deficits have to be faced realistically.

…home prices have actually been pretty steady over time. In fact, if you look at a fifty-year period after World War II, home prices were absolutely steady. In 1947 the Case-Shiller index stood at 110, and in 1997, adjusted for inflation, it stood at 110 again.

via Chart of the Day: Housing Prices Since WWII | Mother Jones.

Our Democracy: The Money Hurts Coral Gables, Too

This is my view on our weakening democracy.

We all know that our political system now runs on money and powerful political advertising (“the message”).  There is very little effort or opportunity to discuss transcendental economic, financial and social problems that afflict our society.  Campaign issues are fabricated and simplified to draw support from one or another groups of voters, even though the issues are not relevant for governance.

Our democratic system was created on a philosophy of openness and access, but now our democracy is, in point of fact, mainly open to those who influence the system through money and their subordinate organizations (political parties), who select their candidates and supply the money or the wherewithal to get the money (fund raising).

Ideally, the system should be more open, less gerrymandered locally and nationally and less influenced by monied interests.  We understand that an open system is a goal, an ideal.  But there should be a better balance between monied interests and an openness that allows for more public participation, an open government and less outright influence peddling or corruption.

Our politicians are drawn to openness and participation during campaigns, but in governing our city there is plenty evidence that the politicians are afraid to subjects the decision making process to greater community involvement.

Coral Gables is not exempt from the deficiencies of our current system in which limited groups finance election campaigns.  A passive electorate (none more passive that Coral Gables!) has failed to educate itself and fight against the government decision making that limits access to public opinion.  We will soon be occupied by the annual budget exercise of the City of Coral Gables and, if it were not compulsory by law, we might find it hard to get access to speak.

Coral Gables Impasse Hearing: Openness for a Few

For those who might have taken up the recommendations from the Coral Gables PAC and the Residents for Government Reform to attend the Coral Gables City Commission Impasse Meeting, you will notice that unless you were able to squeeze into the meeting room you would not have heard a word.  About 90 percent of the audience chairs were taken up by t-shirted members of the International Teamsters Local and the balanced seemed to be a few residents with interest in the Impasse Meeting, onlookers and the press.

A TV set outside of the room was blank and Coral Gable TV did not carry the event.  It is sad that the City Commissioners are reluctant to let a bit of light into city events, let along promote resident participation and government openness. At least that is the message one gets from the recent event.

For the Record: New Home Sales Way Down

Nothing much to add to this.  It’s hard to be an optimistic right now.

Sales of newly built homes dropped to their lowest level since the government started tracking the numbers more than four decades ago, with demand for home purchases down in all four regions of the country.

The Commerce Department reported Wednesday that new homes sold in July at an annual rate of 276,000, down 12.4 percent from June and down 32.4 percent compared with the same time last year.

via New home sales hit lowest level.