Money for Mansions

It continues. I've blogged about Obama's bifurcated economy before, how his policies drive wealth inequality to previously unheard of levels. Obamanomics is about reflation, not fundamental economic growth. Why work?  Reflation (i.e., printing cash) helps those with money. Everyone else, not so much, particularly our children and grandchildren who are inheriting the debt that is driving reflation.  They are getting crushed by Obama's policies.

The latest news is there is a shortage of mansions on the housing market. They are darn near sold out. We are talking about the top end of the upper crust.

A study from Altos Research, the Mountain View, Ca., real-estate research firm, found that inventory in the nation's 90 wealthiest ZIP codes fell 15 percent over the past year, slightly faster than the broader market.

But in the richest ZIP codes, inventory is down more than 50 percent. In a ZIP code in Carmel, Calif., inventory fell 76 percent over the past year. There were only four homes left on the market priced at $1 million or more as of the end of May, according to Altos.

A mansion no longer on the market.

In Palm Beach, Fla., the number of $1 million-plus homes has plunged by 70 percent, falling from 89 to 26. And in the Old Greenwich, Conn. ZIP code, there are only 10 homes left priced at $1 million or more, down 58 percent, according to Altos.

"I don't recall seeing the market like this, and it's come so quickly," said Cristina Condon of Sotheby's International Real Estate in Palm Beach. She said buyers have poured into the market in recent months, many from overseas. American buyers are also piling in—some from higher-tax states like California, lured by low taxes and still-low prices in Florida. 

Condon said one of her listings that sold in the past year is a $11.3 million property on the Intracoastal that had six bedrooms, two baths, and Tuscan-inspired gardens, along with a pool and a boat dock.

Interest in her remaining listings remains strong. She cited strong interest in a $34.9 million lakefront estate in Palm Beach as an example. The 13,278-square-foot mansion has 7 bedrooms, 8 baths, a sprawling pool overlooking the Intracoastal Waterway with outdoor loggias.

Meanwhile, food stamp rolls continue to swell.

Food stamp particpation grows
as unemployment declines.

The latest data released by the Department of Agriculture indicated that in March, a notable 168,888 individual recipients were added to the food stamps program with the current total increasing 2.85% on a year-over-year basis.
Individuals receiving food stamp benefits increased to 47.72 million which, as a ratio of the overall civilian non-institutional population now stands at a whopping 19.48% of the population.

Households receiving food stamps benefits increased by 109,731 to 23.11 million households with the current total rising 3.86% above the level seen a year earlier.
As participation continues to swell, so too has the total nominal benefit cost climbing 2.58% on a year-over-year basis to $6.34 billion for the month.

There is a lot to like about this economy if you are rich. Elsewhere, there's an open invitation to the cycle of dependency, but not much in the way of economic opportunity. For the present, and most importantly our future, we need policies that favor real growth of the real economy.