Daily Archives: October 1, 2011

The Associated Press: Wall Street protest’s success not easily measured

Wall Street protest’s success not easily measured

By COLLEEN LONG, Associated Press – 5 hours ago 

NEW YORK (AP) — The dozens of people in tie-dyed T-shirts and star-spangled underwear have been camped out in a granite plaza in lower Manhattan for more than a week — and show no signs of going away.

They sleep on air mattresses, use Mac laptops and play drums. They go to the bathroom at the local McDonald’s. A few times a day, they march down to Wall Street, yelling, “This is what democracy looks like!”

It all has the feel of a classic street protest with one exception: It’s unclear exactly what the demonstrators want.

“When all the bailout money was spent on bonuses and stuff everyone was outraged, but no one did anything because no one feels like they can,” protester Jesse Wilson, 22, said this week when asked to articulate the cause. “It’s time for us to come together to realize we are the masses, and we can make things happen.”

But he couldn’t say what, exactly, he wanted to happen. Handmade signs carried by some of the demonstrators — “Less is More” and “Capitalism is evil” — hardly make it clearer.

But does it matter that the protest is vague?

Academics and longtime activists give varying opinions.

“A lot of this revolves around economic justice, who gets what in this society, who has a safety net, who doesn’t and how much corporate influence exists in Washington,” said Bill Dobbs, an activist involved in the 2004 demonstrations at the Republican National Convention, and many others.

Dobbs and others say the group’s lack of specificity serves a purpose because it invites outrage over a full spectrum of societal grievances. Indeed, some demonstrators say they are against Wall Street greed, others say they are protesting global warming and still others say they are protesting “the man.”

The modern protester also expects an immediate response, thanks in part to technology, said Gabriella Coleman, a New York University professor of media, culture and communication who has studied some of the groups affiliated with the protest.

“We are in a cultural moment where people think the dictator will topple tomorrow, after four days of protests, and also the media is going to jump to pay attention,” Coleman said.

There has been a growing swell of coverage in mainstream media, but there has been loud complaining the cause hasn’t been championed fast enough — or in the way protesters want.

Newspapers, The Associated Press and television stations have covered the protests, and editorials have both poked fun and lauded the effort downtown. National Public Radio, which hasn’t aired stories, has fielded angry communiques demanding coverage.

“The recent protests on Wall Street did not involve large numbers of people, prominent people, a great disruption or an especially clear objective,” Dick Meyer, executive editor for news, explained on NPR’s website.

But observers say the approach can be difficult for media — and the average person — to digest.

“You should have a clear and convincing message, and know who is going to deliver it,” said the Rev. Herbert Daughtry, a longtime civil rights activist who has participated in protests for decades. “One of the reasons to get attention is to deliver the message.”

Misinformation has added to the confusion. For instance, a rumor sprang up on Twitter that the New York Police Department wanted to use tear gas on protesters — a crowd-control tactic the department doesn’t use. The organizing group that calls itself Occupy Wall Street retracted the claim, one of several such retractions over the past several days. On Friday, it sent out a message that Radiohead would be performing in solidarity for the cause. (The band’s management said it wasn’t playing.)

Clashes with police have resulted in about 100 arrests. Most were for disorderly conduct. Many were the subject of homemade videos posted online.

One video surfaced of a group of women shot with pepper spray by NYPD Deputy Inspector Anthony Bologna. The woman claimed they were abused and demanded the officer resign, and the video has been the subject of several news articles and commentary. Police Commissioner Raymond Kelly said internal affairs would look into whether Bologna acted improperly and has also said the video doesn’t show “tumultuous” behavior by the protesters. The Civilian Complaint Review Board is also investigating.

A group affiliated with protest, Anonymous, later posted Bologna’s personal details, including where his kids go to school. He has received threatening emails, said a police union spokesman, Roy Richter.

“Posting the information about a family police officer … that’s egregious and over the line,” Richter said.

Coleman explained the move was likely the work of one or two individuals not acting on behalf of the entire movement, since the handle Anonymous is not a collective group that makes decisions together on how to act.

“A tactic like that has been received anywhere from controversy to celebration, because someone took action to the police’s action,” she said.

A real estate firm that owns Zuccotti Park, the private plaza off Broadway occupied by the protesters, has expressed concerns about conditions there, saying in a statement that it hopes to work with the city to restore the park “to its intended purpose.” But it’s not clear whether legal action will be taken, and police say there are no plans to try to remove anyone.

“We see it as our job to make certain that people can demonstrate peacefully,” Kelly said.

Mostly, the protests have been peaceful, and the movement has shown no signs of losing steam. Celebrities like documentary filmmaker Michael Moore and actress Susan Sarandon even made recent stops downtown to encourage the group.

Seasoned activists said the ad-hoc protest could prove to be a training ground for future organizers of larger and more cohesive demonstrations, or motivate those on the sidelines to speak out against injustices.

“You may not get much, or any of these things on the first go-around,” Daughtry said. “But it’s the long haul that matters.”

Associated Press writer Tom Hays contributed to this report.

Copyright © 2011 The Associated Press. All rights reserved.

Myrtle Beach South Carolina real estate struggles to recover | Katonah NY Realtor

The market continues to work through the issues left from the real estate bust, with experts hesitant to predict what’s next until the market sells the supply of foreclosures and short sales that have flooded the inventory, forcing prices down.

“What we are seeing is a continuation of the reduction of inventory in the market,” Smith said. “We are not going to get any better until we get rid of all this inventory.”

The problem is, no one can pinpoint when that will be. There’s no way to know how many foreclosed houses banks need to unload, said Tom Maeser, real estate analyst for the Coastal Carolinas Association of Realtors.

Experts have thought the market had bottomed out, only to see prices drop even further. Smith calls it a “sloppy bottom.”

“We are just walking along in this mucky, sloppy bottom,” he said.

Prices have plummeted in the last five years, leaving many homeowners owing more on their houses than they are worth and others who want to sell unable to at the much lower price.

The median price for a single-family house along the Grand Strand has fallen from $217,108 in August 2007 to $162,000 last month, according to the MLS.

That’s good news for buyers who can get financing, which requires much more paperwork than a few years ago during the housing boom. Another plus: Interest rates hit another record low Thursday, with the average for a 30-year fixed mortgage falling to 4.01 percent – the lowest rate since Freddie Mac started keeping records on the rates in 1971. Experts predict the rates will continue to drop.

Still, the low rates have done little nationally to entice buyers, many of whom don’t have enough for a down payment or a high enough credit score to qualify amid the tighter lending standards.

Cash buyers are helping keep the Grand Strand market going; 50 percent of buyers in August paid cash. Five years ago, only 15 percent were cash buyers, according to the MLS.

“If it weren’t for those cash sales, we would be in worse shape,” Maeser said.

Signs nationally point to a rough road ahead. Sales of new homes fell to a six-month low in August, the fourth consecutive monthly decline, the U.S. Commerce Department reported Monday. New-home sales are on track to have the worst year since the government started keeping records a half century ago.

The Grand Strand market is mixed, with one single-family neighborhood showing stability by having less turnover than average while developers desperate to unload oceanfront condos are selling them to the highest bidder at steep discounts, Smith said.

“You can see both ends of the spectrum,” he said.

Experts are hesitant to predict what’s next in this kind of market, but say there are positive signs.

Builders are at it again, adding new houses to the offerings that could lure buyers who will live here to help make up for the lost investor-owners, Maeser said. And some Realtors, including Marvin Heyd of Prudential Myrtle Beach Real Estate, have seen more buyers trickle through in recent weeks.

“September we’ve seen sales spike up a little bit,” Heyd said. “We’ve seen a lot of buyers coming in in September, a lot of them paying cash. We are seeing some good signs.”

Myrtle Beach South Carolina real estate struggles to recover | Katonah NY Realtor

The market continues to work through the issues left from the real estate bust, with experts hesitant to predict what’s next until the market sells the supply of foreclosures and short sales that have flooded the inventory, forcing prices down.

“What we are seeing is a continuation of the reduction of inventory in the market,” Smith said. “We are not going to get any better until we get rid of all this inventory.”

The problem is, no one can pinpoint when that will be. There’s no way to know how many foreclosed houses banks need to unload, said Tom Maeser, real estate analyst for the Coastal Carolinas Association of Realtors.

Experts have thought the market had bottomed out, only to see prices drop even further. Smith calls it a “sloppy bottom.”

“We are just walking along in this mucky, sloppy bottom,” he said.

Prices have plummeted in the last five years, leaving many homeowners owing more on their houses than they are worth and others who want to sell unable to at the much lower price.

The median price for a single-family house along the Grand Strand has fallen from $217,108 in August 2007 to $162,000 last month, according to the MLS.

That’s good news for buyers who can get financing, which requires much more paperwork than a few years ago during the housing boom. Another plus: Interest rates hit another record low Thursday, with the average for a 30-year fixed mortgage falling to 4.01 percent – the lowest rate since Freddie Mac started keeping records on the rates in 1971. Experts predict the rates will continue to drop.

Still, the low rates have done little nationally to entice buyers, many of whom don’t have enough for a down payment or a high enough credit score to qualify amid the tighter lending standards.

Cash buyers are helping keep the Grand Strand market going; 50 percent of buyers in August paid cash. Five years ago, only 15 percent were cash buyers, according to the MLS.

“If it weren’t for those cash sales, we would be in worse shape,” Maeser said.

Signs nationally point to a rough road ahead. Sales of new homes fell to a six-month low in August, the fourth consecutive monthly decline, the U.S. Commerce Department reported Monday. New-home sales are on track to have the worst year since the government started keeping records a half century ago.

The Grand Strand market is mixed, with one single-family neighborhood showing stability by having less turnover than average while developers desperate to unload oceanfront condos are selling them to the highest bidder at steep discounts, Smith said.

“You can see both ends of the spectrum,” he said.

Experts are hesitant to predict what’s next in this kind of market, but say there are positive signs.

Builders are at it again, adding new houses to the offerings that could lure buyers who will live here to help make up for the lost investor-owners, Maeser said. And some Realtors, including Marvin Heyd of Prudential Myrtle Beach Real Estate, have seen more buyers trickle through in recent weeks.

“September we’ve seen sales spike up a little bit,” Heyd said. “We’ve seen a lot of buyers coming in in September, a lot of them paying cash. We are seeing some good signs.”

Buying the investment Bedford NY Property | Bedford NY Homes for Sale

A safer route is to find sellers who need to sell but who have equity in their homes. A real estate agent may be able to help, Hatcher said.

As part of HomeVestors, Robertson is behind the “We Buy Ugly Houses” advertisements. That’s how she comes across investment properties.

Buying an investment property

Investors can take advantage of low interest rates but should expect to pay higher than what they would pay for a primary residence, Hatcher said. Investors often must have a larger downpayment, too, of about 20 percent. Investors will also need money in reserves and cash for upgrades and closing costs.

“Collateral and skin in the game is pretty much what they want to see,” Hatcher said of lenders. “The theme would be cash is king.”

Lenders will look for buyers who have liquid funds, such as lines of credit, or cash in the bank, or money available in 401(k)s or IRAs, Hatcher said.

A lot of beginning investors think they’ll handle renovations themselves. Hatcher and Robertson recommend hiring a general contractor instead.

“Home inspectors are really picky,” Robertson said. “We make sure we use licensed trades so we do a good job for the consumer.”

‘Flip’ or rent?

During the boom, a lot of investors were interested in “flipping” properties — buying them and quickly reselling them at a profit.

That’s still occurring, but to a lesser extent. The buyer pool has shrunk because lending requirements are stricter.

Some buyers now are temporarily renting investment properties, in hopes of selling them when the market improves.

Other buyers are “keep and hold” investors who plan to act as landlords by renting the properties instead of reselling them.

Robertson said investors are getting more rental income now than ever before, because rental payments are up and housing costs down. Rents more than cover mortgage payments, she said.

“You have instant cash flow from your rental. It’s never been a better time to be a landlord,” she said.

To help determine whether an investment property is a good buy, a buyer would want a real estate agent to conduct a market analysis on comparable properties, Hatcher said.

A keep-and-hold investor may only need to get the property for 75 to 80 percent of market value after it’s rehabbed. A flipper would need to acquire a property at around 60 percent market value after rehab costs are factored in, he said.

Robertson, who started investing four years ago, thinks it’s a good time to invest.

“Most people have their money in the stock market right now earning zero, or in the bank earning half a percent. Real estate is on the bottom. It has to go up,” she said.

Time to buy?

Pros

•Low interest rates

•Prices lower than they have been in years

Cons

•Takes money

•Buying at a trustee’s sale can be risky because you can’t see inside the property or get an inspection ahead of time