Coalition mulls finance options to boost housing supply

Developers complain of difficulties raising finance from banks for new schemes

 

The Government is exploring ways of providing finance to builders in a fresh attempt to boost the supply of homes in Dublin.

It is one of a series of measures discussed at a Cabinet sub-committee which heard there was little sign of construction activity on the ground in the capital, despite planning approval for up to 21,000 new homes.

Many developers complain that difficulties raising finance from Irish banks is a key obstacle blocking progress on new developments.

Ministers on Monday discussed ways of expanding the State’s pension reserve fund to provide up to 90 per cent of finance for developers for individual building projects where demand for housing is high.

While the idea of exchequer funding for builders is likely to be highly controversial in light of the property collapse, the Ireland Strategic Investment Fund is a sovereign wealth fund.

This means it would use a combination of money previously held in the national pension reserve, along with private investment, to provide up-front finance for builders.
Demand for housing

There have been discussions concerning provision of up to €500 million through this route, though some sources on Monday suggested more funds would be needed to make inroads into demand for housing.

The committee meeting was chaired by Taoiseach Enda Kenny and included Minister for Finance Michael Noonan, Minister for the Environment Alan Kelly and Minister of State for Housing Paudie Coffey.

Other ways of boosting the housing supply discussed by the subcommittee included:

Lowering local authority development levies, to make it cheaper for builders to start housing developments;

Expanding the role of the National Asset Management Agency to play a more central role in facilitating the construction of thousands of new houses and apartments;

Greater investment in infrastructure – such as water pipes, power lines and roads – to make priority-zoned lands usable for housing.

In the Dublin areas alone, it is estimated that up to €165 million in infrastructure could deliver up to 65,000 homes.

This Content was originally posted on : Carl O'Brien 

Radziwill: scale, deflation will continue to decrease

In the following months this year deflationary scale on an annual basis will continue to decrease, and the speed of these changes will largely depend on the situation on the raw material markets, ' says Finance Minister Artur Radziwiłł.

 

 

"August's CPI reading (0.6% YOY) was in line with the expectations of the Ministry of finance, and slightly higher than market expectations. The CSO data indicate already the sixth consecutive month deflation scale reduction in Poland, "said the Minister in a comment.

 

He pointed out that in comparison with previous years reported a smaller drop in seasonal food prices and non-alcoholic beverages, and food price deflation has been on an annual basis from 1.7 percent to 0.7 percent.

"We estimate that the base inflation in August stood at 0.3-0.4 percent on an annual basis (to 0.4 percent a month before). A sustained since July 2014, the deflation in prices of consumer goods and services is the result of several factors. the negative output gap (which translates to low inflation base) and still low in energy and food prices, "he said.

"We anticipate that in the next few months of this year, the scale of deflation (in annual terms) will continue to decrease, and the speed of these changes will largely depend on the situation on the raw material markets," he added.

GUS reported Tuesday that deflation in August amounted to 0.4% in terms of monthly and annual-0.6 percent. Economists interviewed by PAP szacowali, that the prices of goods and services fell in August by 0.7 percent on a yearly basis, and the month-by 0.4%.

As written in wtorkowym communication of GUS the greatest impact on the price index of consumer goods and services in total were in August lower by 0.8% and food prices lower by 1.5 percent, prices of clothing and footwear. In August, also staniał transport (by 1.1%).

Chip Hollingsworth: 5 secrets you should never keep from your financial advisor

The best relationships are based on honesty and trust. That's true for your personal relationships as well as your relationships with professionals who help you with your problems. You shouldn't keep your symptoms a secret from your doctor, and you shouldn't withhold pertinent information from your lawyer. Doing so can lead to unfortunate consequences. This same idea applies to your relationship with your financial advisor.

It's important that you're upfront and honest when meeting with your financial advisor. Here are the top 5 secrets I've seen clients keep to themselves over the past 25 years.

'I'M THINKING OF DIVORCING MY SPOUSE/GETTING MARRIED'

Many clients feel that a change in their marital status has no impact on their financial plan. That's simply not true; a change in marital status can affect future generations.

A well-designed financial plan will address prenuptial agreements, beneficiary designations, transfer-on-death designations, inheritance distributions, blended family concerns and legacy planning. If the financial advisor is kept removed from your plans of divorce or marriage, they won't be able to implement these considerations into your financial plan.

'I HAVE A LOT OF CREDIT CARD DEBT'

A few thousand dollars here and there on credit cards might seem irrelevant if you're able to make the minimum payments, but the cost of this consumer debt can be astronomical over time. For example, it could take you about 30 years to pay off a credit card with a $10,000 balance and 20 percent interest - even if you pay the minimum monthly amount. And, you will have paid $16,000 in interest to the bank.

Do yourself a favor, and let your financial advisor know about your credit card debt. He or she can help you figure out a credit card debt reduction plan so you can avoid paying a large amount of interest.

'I'M GOING TO BE A CAREGIVER'

While a client might not have a health issue, they might find themselves in a caregiver role or being financially responsible for the care of someone. Inform your financial advisor if you're going to be a caregiver so they can create a comprehensive financial plan that includes liquidity needs, risk management measures and anything else you might need to prepare for the expected and unexpected needs.

'I CARRY LARGE DEDUCTIBLES'

Many people have recognized that carrying large deductibles can keep home and auto insurance as well as health insurance premiums low. During your meeting with your financial advisor, they should ask why you're carrying large deductibles, but in the event that they don't, let them know that having this level of liquidity is important. You don't want to have to surrender a variable investment on a down-market day.

'I DON'T FULLY UNDERSTAND RISK'

A good financial advisor will know their client's risk tolerance. But unfortunately, some clients agree to a more aggressive portfolio design that they don't fully understand. Never be timid to ask questions. It's your money, and you're paying for the advice in some fashion. Don't walk away from your hard-earned money without knowing how it's going to be handled - especially in volatile markets.

Chip Hollingsworth writes for GOBankingRates.com (), a leading portal for personal finance news and features, offering visitors the latest information on everything from interest rates to strategies on saving money, managing a budget and getting out of debt.

Monday's stock market debacle stinks of a robot-driven flash crash

FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.

Paul Schatz, president of Heritage Capital, says Monday's stock market plunge looked a lot like the May 2010 flash crash. In an article for Investment News Schatz wrote, "I believe that high-frequency trading was responsible, not for the whole stock market decline, but for the quick acceleration and pricing dislocations or anomalies." He continued, "Remember, HFT thrives when markets are volatile and liquid. Not so much in quiet and less volatile markets." Schatz points to the big declines in the value of healthcare and biotech ETFs despite their largest holdings being some of the most liquid names in their respective industries as evidence of a HFT-driven flash crash. 

Ray Dalio says the Fed's next move is QE4 (Business Insider)

Ray Dalio, the founder of Bridgewater Associates, the world's largest hedge fund, thinks the Fed's next policy move won't be to raise interest rates. Instead, Dalio believes the central bank will embark on a new quantitative easing program. Dalio thinks "it should now be apparent that the risks of deflationary contractions are increasing relative to the risks of inflationary expansion because of these secular forces." He continued, "Our risk is that they could be so committed to their highly advertised tightening path that it will be difficult for them to change to a significantly easier path if that should be required."

The top advisor concerns (Eaton Vance)

Investment Management firm Eaton Vance surveyed 1,006 financial advisors about their biggest market concerns. The survey found advisors are most worried about market volatility, preparing for the possibility of rising interest rates and generating income in a low-return environment. Interestingly, 87% of advisors noted at least some of their clients were wary of equities.

Schwab fined $2 million for net capital deficiencies (Think Advisor)

Charles Schwab was fined $2 million by the Financial Industry Regulatory Agency for net capital deficiencies. Think Advisor reports, "The deficiencies arose because on each of those dates, Schwab had inflows of cash that exceeded the amounts it could invest with existing facilities, so instead, Schwab transferred $1 billion to its parent company for overnight investment," according to FINRA. Schwab says the transfer occurred because it was trying to avoid keeping too much cash at one institution and that the money was always safely with the company's parent. Schwab self-reported the matter, according to the settlement.

Savant Capital buys the Corcoran Group (Financial Advisor)

Savant Capital has agreed to buy the Corcoran Group, a firm catering to "high- to ultra-high-net-worth, senior-level corporate executives for publicly traded and private equity companies," according to Financial Advisor. The acquisition brings another $4.5 billion AUM to Savant Capital, which has offices in 11 states. Terms were not disclosed. 

This Content was originally posted on Jonathan Garber

US-NATO Military Deployments, Economic Warfare, Goldman Sachs and the Next Financial Meltdown

What is the relationship between war in a military theater and "monetary fighting"?

A demonstration of war is perpetually a monetary undertaking which bolsters overwhelming corporate hobbies. The behavior of US-NATO military operations is completed for the benefit of effective budgetary establishments.

US drove wars in the Middle East under the compassionate mantle of the "worldwide war on terrorism" to a great extent serve the hobbies of Wall Street, the Anglo-american oil aggregates, the supposed 'resistance builders", the biotech combinations (Monsanto et al), Big Pharma and the corporate media.

In any case, present day fighting is in no way, shape or form constrained to the circle of military and insight operations. Washington not just forces financial assents on nations which don't bolster its royal motivation, it likewise encourages the inside and out destabilization of national economies. While the Pentagon and NATO coordinate military operations against sovereign nations, Wall Street does simultaneous destabilizing activities on monetary markets including the gear of the oil, gold and outside trade markets coordinated against Russia and China.

It's called "budgetary fighting", it's a piece of the same worldwide plan, it's actualized nearby and as a team with the Worldwide organization of the US-NATO's military machine.

In such manner, Obama's "Turn to Asia" coordinated against China including the arrangement of US maritime strengths in the South China Sea, is strengthened through simultaneous destabilizing activities on the Shanghai stock trade. A definitive goal is to undermine –through non-military means– the national economy of the People's Republic of China.

War and Financial Warfare

Is budgetary fighting composed with political choice making relating to real military and knowledge operations?
Demonstrations of budgetary fighting oblige insight; they regularly oblige meeting and coordination at the most abnormal amounts of government. While the choice making procedure between the military-insight mechanical assembly and the corporate budgetary framework is in no way, shape or form coordinated, it regardless covers through an arrangement of cross arrangements and interviews.  

Overlapping appointments

Adequately reported, the super keeping money establishments on Wall Street and their related flexible investments apply their impact at the largest amounts of the US government including the State Department, the Pentagon and the White House.The arrangement of cross-arrangements together with corporate campaigning is a piece of this procedure. National security consultants and previous Pentagon authorities are delegated to the World Bank, and so on. Previous PMs, senior government authorities tackle counseling positions with significant saving money organizations, CIA authorities are included as guides in key exchange arrangements, and so on. On the other hand, Wall Street brokers are named to key positions in government.In ahead of schedule August, Goldman Sachs named NATO's previous Secretary General Anders Fogh Rasmussen as a money related expert.In the course of the most recent five years (2009-2014), Rasmussen was effectively included in arranging NATO's philanthropic besieging strikes in the Middle East also NATO military arrangements on Russia's doorstep in Eastern Europe, the Baltic States and the Black Sea.Amid his stretch as Prime Minister of Denmark (2001-2009), Rasmussen was included (under a neoliberal approach plan) in disassembling Denmark's welfare state close by the privatization of state resources.Rasmussen's counseling exhortation will be utilized as a feature of Goldman's political campaigning in the EU, in particular the procedure of impacting political and vital choice making.In addition, Goldman's multibillion dollar venture choices, its inside exchanging operations, its different theoretical activities on the products, forex, valuable metals markets, and so forth, require nitty gritty inside data/political coordination relating to geopolitical and military issues.Rasmussen joins a not insignificant rundown of unmistakable authorities and political identities who are going about as specialists for Goldman Sachs.