1. November 2009 by Dan Walkow, CFA, CMT.

Foreclosures are beginning to flare up in suburban and secondary metro markets for Q309, according to a report from RealtyTrac.

Dramatic increases in foreclosures from a year ago came in suburban areas previously believed to be more stable, such as Boise, Idaho, up nearly 22% from Q209. Another area, Provo, Utah, is located a distance of 45 miles outside Salt Lake City and rose nearly 11% in the same period. RealtyTrac provides an online marketplace for foreclosure properties with more than 1.5m default, auction and REO listings.

In several states, foreclosure activities drifted toward new focal points, such as smaller towns with previously self-sustaining industries. Chico, California in Sacramento Valley, and agricultural hub, had a 98% increase in foreclosures from Q308, according to the report. Read the whole thing here. 

We are not done yet!

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1. November 2009 by Dan Walkow, CFA, CMT.

Federal investigators reported Thursday that imported Chinese drywall that homeowners have linked to health problems and odors had higher levels of some chemicals than its domestic counterparts.

The investigators, however, were unable to link the chemicals, sulfur and strontium, to the health problems and smells in thousands of homes built during the recent housing boom, and said further testing was under way to determine any possible connection.

At this point in time it is difficult to determine whether this drywall issue is another form of US protectionism or if there is really a problem with imported Chinese drywall.

The government’s investigation into Chinese drywall is the largest in the history of the product safety commission, costing $3.5 million. It also puts a renewed spotlight on problems related to all types of products imported from China. Millions of tainted toys made in China had to be recalled in 2007 and 2008; problems were also reported with imported pet food. More here.

Reminds me of the asbestos issue of yesteryear. In any event this ought to be fodder for the lawyers as the lawsuits start to emerge.

If you are thinking of buying a house or condo check it out check it out closely. Vancouverites who have had to deal with the “leaky condo issue” have learned this lesson the hard way!

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1. November 2009 by Dan Walkow, CFA, CMT.

For those that follow me you already know that one of the longer term investment themes that merits attention is that of electrical power generation.

There are many reasons for this including the growth of electrical power usage from the new “computer society”, the dawn of the electrical vehicles and climate change itself. These are demand side issues.

On the supply side we have a frail old electrical grid across North America, long dated regualtory processes to bring on any major power generation facilities such as nuclear power or hydro power.

Wind power,natural gas power generation and solar offer will and do offer a modest contribution to the power supply, but in my opinion will not be sufficient over the longer term.

Coal continues to the the primary source of power generation but continued pressures to “clean up the enviroment” in North America and around the world will limit growth from this area.

Regardless of where the power is sourced it has to be “manufactured” processed and distributed.

Everything requires power these days from computers to toothbrushes and one can only surmise that it will continue to grow.

In particular is the nuclear energy issue with 26 nuclear power plants on the drawing board in the USA alone. There has been no new nuclear power plants in the US for over 30 years. I suspect that will change. See The Nuclear Wait at the NYT here.

As we roll through this “market correction” during November of 2009 we will be on the lookout to acquire more “power assets” on the cheap.

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