Median Home Prices Rise in April: RE/MAX

May 18th, 2012
The RE/MAX: National Housing Report found that the national median home price rose for the third straight month in April, indicating that the housing recovery in 2012 is continuing. The report surveyed 53 metropolitan areas and found that the median home price was $161,000, 3.2 percent higher than in March and 5.9 percent higher than in April 2011. February marked the first time in 18 months that home prices experienced an increase, and data from March and April shows a positive trend.

Arizona REIT Will Start Trading on NYSE

May 18th, 2012
Healthcare Trust of America Inc. is looking to start trading its Class A common stock over the New York Stock Exchange.

Gerner & Kearns Appoints New Associate

May 18th, 2012
Gerner & Kearns, Co., L.P.A. announced recently that Michael Lubes has been appointed as an associate in the firm's Collections Practice Group.

Why Republicans Aren’t the Only Ones to Blame For Polarization

May 18th, 2012

The working assumption of many political commentators in Washington is that politics is more polarized than it has been in decades and that it’s the Republican Party’s rightward drift that’s to blame. The evidence bears this out—in part. But it also suggests a more complex story.

First, the electorate has polarized. Over the past two decades, the public’s ideological self-description has changed significantly. In 1992, when Bill Clinton campaigned for president as a reform-minded New Democrat, fully 43 percent of adults thought of themselves as moderate, compared to 36 percent conservative and 17 percent liberal. As the 2012 election got underway, the picture looked quite different. Moderates had declined by 8 points, to 35 percent, while conservatives and liberals had each gained 4 points, to 40 and 21 percent respectively.

As Alan Abramowitz has recently shown, a similar shift occurred among voters in presidential elections. In 1972, fully 71 percent placed themselves at or near the ideological midpoint, compared to 29 percent at or near the extremes. By 2008, the share of the electorate at or near the mid-point had fallen by 17 points—to 54 percent—while the share at the extremes rose to 46 percent.

Second, the parties have sorted themselves out along ideological lines. Since 2000, the share of Republicans calling themselves moderate or liberal has fallen from 37 to 27 percent, while the conservative share of Democrats has fallen from 25 to 20 percent. Republicans are more conservative than they used to be, and Democrats are more liberal. Conservatives have increased their share of the Republican Party by 9 points; liberals have increased their Democratic share by 10 points.

Over a longer period, Republicans have changed somewhat more than Democrats. Between 1972 and 2008, Abramowitz finds, Republican voters shifted rightward by 0.7 points on a seven-point scale, from 4.7 to 5.4. (On this scale, 1 means extremely liberal, while 7 means extremely conservative.) Meanwhile, Democratic voters shifted to the left by 0.5 points, from 3.7 to 3.2. Among Republican voters, the percentage of conservatives rose from 55 to 78 percent, while liberal voters among Democrats rose from 38 to 55 percent. Among party activists—the kinds of people who dominate grassroots organizations and presidential primaries and caucuses, the gulf between the parties has become even more pronounced.

The gap between voters and all adults—the former being more conservative—reflects age differentials in ideological commitment. Today, there a direct correlation: the older the person, on average the more conservative. And because older adults vote at much higher rates than young adults, the electorate is even more conservative than the population as a whole.

The story thus far is one of moderate asymmetry: both parties have shifted away from the center, Republicans somewhat more so than Democrats. But a simple fact has accentuated the difference: Because there are twice as many self-styled conservatives as liberals, ideological sorting is bound to produce a more predominantly conservative than liberal party—even if the percentage-point shifts are comparable. As recently as 2000, moderates outnumbered liberals within the Democratic Party by 44 to 29 percent. Today, even after a sharp rise in the liberal share, liberals and moderates are essentially tied, 39 to 38. In 2000, conservatives already outnumbered moderates and liberals by 2 to 1 within the Republican Party, and now it’s 3 to 1. So while there is a liberal Pelosi wing and a moderate Hoyer wing in the House Democratic caucus, among House Republicans we find only shades of conservatism. (That is not to say that differences among Republicans don’t matter; just ask John Boehner.)

So far I’ve left out Independents, whose share of the electorate is large and rising. But bringing them in doesn’t change the story very much. To be sure, Independents are the only major classification still dominated by moderates (41 percent of the total). But just since Obama carried the independent vote in 2008, conservatives have increased their share by 5 points while moderates have fallen by the same amount. Independents are moving with the tide, not against it.

These numbers don’t tell the whole story, however. There’s another key development: above and beyond their ideological disagreements, conservatives and liberals have come to understand the practice of politics differently. In a survey taken right after the Republican sweep in the 2010 midterm elections, 47 percent of American said that it was more important to compromise in order to get things done, versus 27 percent who thought it was more important for leaders to stick to their beliefs even if little got done. Liberal Democrats weighed in on the side of compromise, 58 to 16, moderate Democrats by 64 to 17. But conservative Republicans (the overwhelming majority of their party) favored sticking to their beliefs by 45 to 26. Ten months later, after the debt ceiling fiasco, an outright majority of adults favored compromise, including 62 percent of Democrats and 63 percent of liberals. But pluralities of Republicans and conservatives continued to favor leaders who stuck to their beliefs.

Unlike most other Americans, conservatives seem to believe that compromise represents defeat. It would take a subtle historian to explain why. Perhaps they think that because so many forces are pushing in the direction of bigger and more intrusive government, compromise will alter the pace of change but not the direction. If so, a politics of intransigence represents their only hope; never mind the risks.

There is nothing wrong with a frank and honest debate between two visions of our country’s future. But for the foreseeable future, neither party can definitively defeat the other. The only alternative to reasonable compromise—the sooner the better—is a level of gridlock that would paralyze our economy and eviscerate what is left of our reputation. All of those contributing to our current era of polarization would be wise to take heed.

Publication: The New Republic
Image Source: © Jim Young / Reuters

American InfoSource Acquires Ascension Capital Group

May 18th, 2012
American InfoSource LP: (AIS) announced that it has acquired substantially all of the assets of Ascension Capital Group, Inc., (ACG).

Have MSR Values Finally Hit Bottom?

May 18th, 2012
Let's assume that the recent downdraft in rates won't get any worse and then ask this very basic question: will those buying MSRs at today's rock bottom prices look like geniuses when the smoke finally clears?

Balancing Preservation and Transformation in Cuba: A Conversation with Eusebio Leal

May 18th, 2012
Cuban flag in front of buildings

Event Information

May 18, 2012
10:00 AM - 11:30 AM EDT

Falk Auditorium
Brookings Institution
1775 Massachusetts Avenue, N.W.
Washington, DC 20036

Register for the Event

 



Cuba is undergoing a gradual economic and social transformation that potentially carries great importance for the island nation, as well as for its relationships with the United States and the rest of Latin America and the Caribbean. Part of this transformation includes the physical redevelopment of Old Havana, spearheaded by Dr. Eusebio Leal, the city’s chief historian and a leading public figure in Cuba. Dr. Leal has led the government’s efforts to remake Havana as a prime destination for travelers from around the world—more than 2.7 million paid a visit to Cuba last year alone—while at the same time preserving the city’s cultural, urban and architectural heritage.  

On May 18, the Latin America Initiative and the Metropolitan Infrastructure Initiative at Brookings will host Dr. Leal for a discussion on progress to restore Old Havana, establish a self-sustainable financing system to preserve Cuba’s historical sites, and promote tourism. Brookings Nonresident Senior Fellow Richard Feinberg and Robert Puentes, senior fellow and director of the Metropolitan Infrastructure Initiative, will provide commentary on the opportunities and challenges of urban redevelopment in today’s Cuba and its effects on the wider Cuban economy. Brookings Vice President and Director of Foreign Policy Martin Indyk will provide introductory comments and Senior Fellow and Deputy Director of Foreign Policy Ted Piccone will moderate the discussion.

After the program, panelists will take audience questions.

Participants

Panelists
Eusebio Leal

Director
Old Havana Restoration Program and Historical Center

Short Sales and Loan Mods Help Stabilize Home Prices

May 18th, 2012
Home prices are beginning to stabilize thanks, in part, to loan modifications and the increasing use of short sales.

Wells Fargo Auctioning $200M of Nonperformers

May 18th, 2012
Wells Fargo & Co. is in the market with a $200 million package of nonperforming residential loans, according to investors that have been briefed about the deal.

Regulators: Forcing Firms to Admit Guilt Could Endanger Lenders

May 18th, 2012
Requiring defendants to admit guilt in a settlement or consent order could delay remediation, spur more litigation and threaten safety and soundness, financial regulators told a House panel this week.