Bits Bucket And Craigslist Finds For November 25, 2006
Please post off-topic ideas, links and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
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dow vs. inflation and gold / no records in sight
some good charts and interesting stats like
It is also interesting to note that the inflation-adjusted Dow is now a touch less than three times higher than where was in 1929 and a little over double where it was in 1965.
http://immobilienblasen.blogspot.com/
Ben,
This is in the Sarasota Herald tribune today. Maybe you can post this story for peoples comments.
Foreclosures down locally
Though the Sarasota region is bucking the trend, some say ARMs will cause trouble.
By STEPHEN FRATER
stephen.frater@heraldtribune.com
The torrent of unpalatable real estate data is enough to ruin some folks’ holiday appetite.
But there might be some good news despite the fact that the Sarasota-Bradenton market led the state in the third quarter with an 11 percent erosion in median sales price.
QUIETER YEAR FOR FORECLOSURES
Foreclosures are rising in many cities across the nation, but Southwest Florida seems to be bucking the trend so far.
From the front page of the AZ Republic
“Mortgage troubles are rising - Valley foreclosures nearing 2-year high”
“Last year, financially strapped homeowners in the Valley were able to escape foreclosure by selling homes quickly for a profit. Others refinanced and pulled out equity that they used to pay off other bills. Many switched to adjustable-rate mortgages with lower monthly payments.
But now, there are many more homes on the market, so houses are selling more slowly and in some cases for less money. The initial low “teaser” interest rates on those adjustable mortgages are climbing, bumping up monthly payments. And many struggling homeowners already have tapped out most of their equity and run up their credit cards.”
http://www.azcentral.com/news/articles/1125foreclosure1125.html
All in all a very honest article, but I wonder how bad it must be if they have this on the front page. Shouldn’t this be the worst foreclosure rate in about 20 years?
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the stock market has by far outperformed every other asset class over the last 20+ years.
But in the last 5 years gold has outperformed the Dow.
Hey Gekko, I know you also are into Vanguard funds. And from another post below, I think you read that Warren Buffet is worried about dirty bomb attack potential in NY or Washington. If that happens, your mutual funds will collapse. That’s the advantage of having individual stocks so that you can put trailing stops on them. In the event of a terrorist nuke attack, gold will outperform stocks by far. Gold would probably triple or quadruple in price right after the attack and stay high to anticipate the response to terrorists - a renewed full fledged war on terror joined by Japan, China, even some western European nations. I would not be mostly into equities, nor mostly into gold. I recommend savings bonds - interest on bonds can be deferred from taxes, which is a great way to keep the money out of the 2007 Congress’s pickpocket hands.
So the Dow is declining versus gold. Does that mean the Dow is a better value than it has been at that peak? Or does it mean that gold is becoming properly valued and has been severely undervalued from 1981 to 2001? I’m hedging on all fronts. My basis in Vanguard’s 500 index fund is 19% below its NAV. My basis in Vanguard’s small company growth index fund which I started investing in a year ago is 11% under its NAV. And I buy gold and platinum bullion coins regularly. I like the American Eagles (gold and platinum) and the Buffalo golds, but I also buy pre-1933 Swiss Helvetia 20 Franc coins. My safe deposit boxes are getting heavier.
wacth this chart from brett sttenbarger. looks like a haircut or a bearmarket vs gold.
very impressive
http://photos1.blogger.com/x/blogger/7619/1931/1600/648072/Dow2.gif
Christmas shopping is blasting ahead - no effect from the housing bubble pop…
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The offers were unbelievable this year and I felt like I had to come out and see it for myself,” she said.
• Official numbers won’t be available until next week, but Peter Cooper, general manager of the Mall at Tuttle Crossing, said yesterday was “as good a day after (Thanksgiving) as I’ve ever seen.” The mall’s department stores were busy, and shoppers packed such stores as Abercrombie & Fitch and Hollister, he said.
And people weren’t just window shopping — a good sign for continuing holiday sales, Cooper said.
“When you see packages in their hands, you know it’s going to be a good season,” he said. “It’s been a stellar crowd and people are in a great mood. For whatever concerns people have about the economy, it doesn’t seem to stop them from starting the holiday season with a bang.”
• At Eastland Mall, general manager Richard Hunt said traffic was “a little heavier than last year.”
Anchor stores at the East Side mall “are pleased so far” with the stronger turnout, which probably was the result of promotions by the retailers, he said.
• Customers also were out in force at Polaris Fashion Place. A group of women among the early birds even dressed the part, wearing matching T-shirts decorated with tinsel, said Angela Krumpelman, Polaris marketing director.
“They had a cart that they were pushing that had bags in it,” Krumpelman said. “And they had bags in hand, as well.”
The mild weather and big sales at JCPenney and Macy’s helped bring out people, as did demand for the Nintendo Wii and PlayStation 3, Krumpelman said. Per-person sales, even before yesterday, have been on the rise, a good sign for the rest of the season, she said.
• At Easton Town Center, where the mild weather caused many to bypass parking garages in favor of surface lots, yesterday’s sales were up by single-digit percentages over a year ago, spokesman Mike Duffy said.
Yesterday at Sam’s Club the flat screen TV’s were selling like hot cakes I counted 8 sold in the short time I was in the store buying our after Thanksgiving turkey on sale. Loads of shoppers, carts over flowing with lots of Chinese electronics. In the check out line one worn out looking couple was purchasing a flat screen and digital camera, they paid with two credit cards. Watching all this just reminds me how well trained we Americans are when it comes to spending money we don’t have on things we don’t need. Merry Christmas!
And all that stuff will be cheaper after January 1. Ridiculous.
There still is room on the old Visa? With all the “good deals” out there the credit cards will be maxed out by Christmas. Just in time for Spring 2007.
The default rates on credit cards are moving into the 30% range so after maxing those babies out they’d better not make a late payment.
Chase just sent us an update flyer. Their default rate should we not be so timely would be 32.9%. I can’t help but feel the banks are tightening the noose.
On the local tv news last night they interviewed a couple waiting outside a Target store at 5 am. They were asked why they came out so early. The man answered that they had two kids who wanted some things and they just had to get them. Another man had a cart full of electronics … a flat screen, lots of computer crap, and of all things a clothes iron (I wonder who’s getting that bad boy). He said he spent about $1300, but he saved hundreds. My mom was right when she used to laughingly say, “The more you spend, the more you save”.
How is the money getting from the helicopter drop-off points into the buyers’ hands?
“How is the money getting from the helicopter drop-off points into the buyers’ hands?”
LOL. Spending Nervosa:
“A psychological materialistic disorder characterized by abnormal perception of ones self-image, constant craving for expensive knick-knacks, and binge shopping, followed by self-induced requests for more credit cards. It affects adults of all ages, usually the middle class with low net worth.”
Bulemia nervosa
“A psychological eating disorder characterized by abnormal perception of body image, constant craving for food and binge eating, followed by self-induced vomiting or laxative use. It affects adolescents or young adults, usually female”
Customers also were out in force at Polaris Fashion Place. A group of women among the early birds even dressed the part, wearing matching T-shirts decorated with tinsel, said Angela Krumpelman, Polaris marketing director.
“They had a cart that they were pushing that had bags in it,” Krumpelman said. “And they had bags in hand, as well.”
If only some Dawn of the Dead zombies would eat these embarassing excuses for human beings. Matching t-shirts to celebrate their shopping?! What a-holes!
When you go to a variety of stories covering Black Friday in google news, there’s definitely a commonality. Many contain quotes from shoppers such as “Well, I only came for the [insert hot item here], but maybe I’ll pick up [insert more unnecessary garbage here] while I’m out…I mean, I was camped out all night, after all.” or “well, I’ve got 4 kids/2 kids in private school/we’re not rich, so I had to come out here and get the best bang for my buck!” I still can’t decide what to make of it all. I’m curious to see how this holiday season will shake out overall, or if BF was it, and the rest of the season will be weaker than expected. Time will tell, but I’m guessing if holiday sales exceed expectations, we can look for a FF rate hike in early 2007.
The Department of Homeland Security is rounding up porcine Americans and hearding them into stores with cattle prods. “Hiyahh! Git on! Go purchase!” shout the DHS officers as the elephantine Americans lope toward the stores rubbing their enormous, stinging behinds. But seriously, their appears to be plenty of credit capacity left for a MAMOTH holdiday season shopping spree.
The retailers know the economy is weak. They’ve engineered a lot of hype to things started early because they know the best strategy is to get shoppers in the door early on. There’s no telling what will happen later. All the big retailers like WalMart have announced big cuts right out of the chute. They wouldn’t do that if they thought this was going to be such a great shopping season.
The estimate is that each shopper will spend between $700-800 on gifts this year. They’re going to be disappointed by my shopping performance.
My wife and I really hate the pressure of buying gifts for family members we see a few times a year and vice versa and our xmas gift opening session last year was 2 hours long and we decided last holidaze that we were done, except for giving gifts to kids, we don’t want any gifts, nor are we going to give gifts. As it turns out, my 2 brother-in-laws were as sick of the whole spectacle as we were and the whole family is excited about the prospect of just a family get together, sans gifts.
Of course we always hear that this is the retailers “make or break” season.
Are they just bad businessmen the other 11 months of the year?
You will be reported to the Department of Homeland Security for your unpatriotic and unchristian celebration of Christmas without presents.
We need an investigation by a “Committee on Un-American Activities” as in the ’60s.
“unpatriotic and unchristian celebration of Christmas without presents”
Bill O’Reilly and Fox News will do a hit piece on your non observance of Xmas. Oh! I forget, Christmas is a religious holiday.
Go down to Mexico for xmas sometime~
In Catholic countries, easter is the much bigger holiday and xmas is barely celebrated. Refreshing to see it so low key.
Was in PV a few years ago during the holidaze and it seemed like every 29th business had just a token amount of xmas display, hardly anything.
Interesting. I spent my fourth grade December in Costa Rica. It was quite a change. They did go crazy with fireworks for New Years eve.
Once you’ve seen a low key xmas overseas, (i’ve been in Portugal, Mexico and New Zealand) you realize just how much we overdo it…
I bought most of my holiday gifts already. 8 cat teeth cleanings, 5 dog teeth cleanings, and 1 cat spay, for the pets of the adults. For the 10yrs old thru teenagers I’m considering these books “The Teenage Investor : How to Start Early, Invest Often & Build Wealth“, “Complete Idiot’s Guide to Money for Teens “, “Money Basics for Young Adults“. [If you have any better books suggestions let me know.] For the under 10yrs olds I haven’t thought of anything yet but I will not buy them some stupid toy to add to their immense collection of junk. And for my very elderly mother who has mild alzheimers and wants and needs nothing, I am traveling back to CA with her youngest great grandchild (age 2) who she has never seen (I’m taking my niece the mother too). And the genius college kid gets a laptap computer. [Suggestions on what to buy welcomed.]
It would be interesting to have a thread on how those of us on this blog are spending (or not spending) money on holiday gifts. I do remember as a child going shopping on black friday with my mom and sisters. It was fun, a family event really. Something to do the day after Thanksgiving.
Open up an IRA for the under 10 kids. Buy a couple shares of a few different solid companies and show them how to monitor them.
for the novice investor..consider index ETFs as a good starting point…
low cost, good diversification, easy to track performance..
start with the S&P 500 SPDRS (ticker: SPY)
Don’t want to sour the kids when the indices start trending steadily downwards. Go energy & commodity!
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The Wealthy Barber by David Chilton
http://www.armchairmillionaire.com/features/wealthybarber_excerpt.shtml
See Gekko;…You can offer positive iformation without getting political….I even ordered the book…Going to read it and then pass along to the kids….Thanks for the post…
Not spending a dime. BTW, I know how much those teeth cleanings are. 13 of them!!!! How bout some tender vittles for mom?
Yeah, it is expensive. But for my extended family all their pets are greatly loved (2 of the dogs getting their teeth cleaned are mine). There isn’t any “mom” — all of these pets are fixed (except for the new formerly stray kitty — she was spayed on Monday). For some reason people have lots of money to spend on toys for themselves, their kids, and even their pets, but when it comes to vet bills they cringe. Surely spending money to keep a pet healthy is worth more than some soon to be discarded boring or broken electronic gadget.
By the way, if any of you want to further the cause of spaying and neutering hillbilly pets please visit SNAP (Spay and Neuter Assistance Program. To see how critical this mission is just take a look at the result of uncontrolled hillbilly pets breeding at Qambio.org - spay and neuter hillbilly pets.
Here’s the link to Qambio.com (not org - my mistake above)
Qambio.com - Bunny the hillbilly dog
I suggest Arts, Crafts or Hobby for ANY age…..
Real painting easels, coloring sets, even simple lego sets are far better for the minds of kids than a playstation or other miscellaneous plastic Taiwanese crap.
I’m scanning and restoring an old pile of family photos and slides. The nieces and nephews are getting giftcards for books. If I purchase something, it has to be something that the recipient truly needs. I hate giving cluttery gifts.
“It would be interesting to have a thread on how those of us on this blog are spending (or not spending) money on holiday gifts.”
I’d be interested in hearing that too Ozarkian but I’d like to hear it done as a comparison to say 5 years ago…..compare to pre-bubble days.
Myself….all cash spending and the number of gifts slashed incredibly….and somehow, I feel it will be one of the nicest Christmases ever.
We decided to stop exchanging gifts a few years ago, in my family. Instead, we make a hamper up for a needy family: food, clothes, toys - and that both is fun and means that we end up trading less junk. The kids still get gifts.
I think a lot of the happy retail noise is bull!@#$. I live in a shore vacation town and every merchant asked will always say they had a great year until you get them alone and do a little prodding.
http://www.azcentral.com/news/articles/1125foreclosure1125.html
Mortgage troubles are rising
Valley foreclosures nearing 2-year high
Catherine Reagor
The Arizona Republic
Nov. 25, 2006 12:00 AM
The number of people losing their homes to foreclosure or falling behind on their mortgages in metropolitan Phoenix is near a two-year high, the latest and most tragic sign of the Valley’s housing market slowdown.
NEW YORK (CNNMoney.com) — Wal-Mart Stores Inc. reported surprisingly weak November sales on Saturday, even as U.S. bargain-hunters jammed stores in search of gifts at the start of the crucial holiday shopping season.
The world’s biggest retailer estimated that November sales fell 0.1 percent at its U.S. stores open at least a year.
Those damn poor people aren’t holding up their end of the bargain. Wal-Mart will be forced to reduce costs, laying off any employee whose wages have risen above $10/hr.
They should start outsourcing WalMart top management jobs to India. Perhaps then we would see if their low price policy is still sound.
My favorite turkey’d-up woman story:
At Target, about 400 people stood in front of six storefronts just after 5:30 a.m. Another 100 would arrive within 20 minutes, in time for the 6 a.m. opening.
Dixie Bass said she planned to spend about $400 and guessed she would save $100, but on one of her bathroom trips to Walgreens she got a $189 ticket for running a red light, “so this is really no deal.”
Mr. Average America: Mmmm, let me see. I paid $400,000 two years ago for my house with no down payment and a no interest loan. A year ago it was worth $450,000. Now I hear it’s only worth $425,000. I took out a house equity loan of $15,000 for buying carpets and took a 10 day holiday in Hawaii so that wiped out that loan. I owe about $5,000 in credit card bills but I’ve kept up the minimum payments so far. Now, if I add up the numbers….Eureka! I CAN afford that $4,000 flat screen HD t.v on sale AND I still have $1,000 left! The only thing I’m concerned about is the no interest loan re-set next year. Oh, well. It doesn’t really matter. The NAR is saying prices will start back up in the spring and then I can get again.
On January 1st, 2008 the T.V. commentators will be summing up 2007, and they’ll all use one word - FORECLOSURE. Americans are going to be pissed and will be clamoring to Congress for relief. The Homeowner’s Relief Act will mandate a “morotorium” on increases in adjustable rate mortgages and will extend the tax advantages of a mortgage beyond 100% of the homes worth.
And watch the dollar plunge in the process. I don’t think so…
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The liberal media’s doom-and-gloom economic pronouncements about lackluster holiday spending is an annual tradition. “Worst Holiday Shopping Season Expected In Years” is always repeated year after year regardless of reality.
Hey man, we all know how much you hate us “liberals…” let’s get back to the bubble now, mmkay, one-track?
I am sorry but I hate liberals too - only for their quest for making us a drab gray socialist society. But I am an extreme liberal (and also an atheist) in regard civil liberties. You think a Repub executive branch and Repub congress are bad. Wait until 2008 when we have Demos who talk the talk and walk the walk of socialism in those two branches.
I despise liberals for their sheer hypocrisy. I’ve known quite a few and almost without exception they were uptight, sanctimonious whiney hiney-holes who never seemed to see the blinding contradictions between their political views and their private conduct. They’d rhapsodize about the joys of diversity, but blaunch at the thought of their son or daughter marrying a black or Puerto Rican, and thought because they were sickly-sweet to their Latino nanny they were somehow enlightened.
Of course, today’s “conservatives” are a bad joke for the most part, especially the smirking chimp Bush and his neo-con handlers. NOBODY in the corridors of power is looking out for the productive middle and working classes in this country, with the lone exception of Rep Ron Paul of Texas.
Tancredo is pretty good too.
Dr Paul is a good man. I’m proud to say I bought him his first Shiner Bock.
Good on you Ben. I’d gladly buy Dr. P all the Guinness or Bass Ale he wants if I ever run into him.
Dubya’s administration stocked the coolers full of AIPAC’s koolaid, and today the middle east security situation is worse than ever. Dubya’s “my way or the highway” arrogant style of government has setback the conservative movement several decades, IMHO.
You are correct regarding a total lack of concern for the working middleclass; the rich got a lot richer, and the working poor got the medicare act (we couldn’t make it without the card!). The middleclass got preditory lending foisted upon them by everyone in the financial business. Dubya deserved to lose both sides of the house.
BTW, I’m a slightly right of center conservative who doesn’t trust either party.
Yes, and when 2008 arrives, we can look at the ever shrinking US dollar, the exploding debt service, the fiscal destruction of the middle class, the enormous job losses, the ongoing housing/mortagage collapse, the massive credit bubble and we can thank the Republicans for doing their best to destroy the country.
Gekko
Correct about the liberals. Of course, the liberal opinion will be followed by Kudlow on CNBC and the lying spin merchants on Fox telling us the economy is doing great, people have more money in their pockets than ever before and it’s because of the tax breaks inititated by the Republicans.
They will fail to mention the trillions of dollars in national debt as far as ther eye can see because it doesn’t matter (lol). Or the 40 million Americans without health insurance because it doesn’t matter. Or the money hole created by Republican lies and deception in Iraq because it doesn’t matter. Or that the US dollar is losing value faster than a car that’s run out of gas and quickly becoming the currency of a third world country. It doesn’t matter. Or that millions of Americans are in debt up to their eyeballs because it doesn’t matter. Or that company pensions have collapsed. It doesn’t matter. Or that good paying jobs have left and continue to leave the USA for other countries. It doesn’t matter. Or that wages in real terms are not keeping up with the cost of living because it doesn’t matter. Or the image and the prestige of the US is in the toilet world-wide because of the Republicans. It doesn’t matter. Need I go on?
Of course, if you’re making $400,000 + a year and have an off-shore bank account, then you should certainly keep going with your line of thinking. Donating 5% of your income to charity should ease your conscience.
Strange thing I’ve noticed about non-liberals. They are suddenly much more liberal when they lose their jobs or get very sick and have to battle the insurance companies. Someone I know at the gym was working for CountryWide Financial and was laid off 3 months ago. He was gung-ho on Bush. Gung-ho on the war. A typical lock stop moronic Republican who followed the party line like a good little conservative lap dog. However, he’s having no luck finding a job and he’s running out of savings real quick and he has a BIG mortgage payment due every month. After 6 years of hearing him blow hard and blather on about how the Boy Wonder In The White House was going to go down in history as one of the greatest Presidents ever, he’s now starting to bitch and moan about Iraq, the lies the government is telling about the inflation numbers…and….WAIT FOR IT…..how his medical insurance is running out and how the country really needs to do something about the medical health insurance industry. Gee! Who would have thought!
Nice Counter Punch Mike…..Gekko Is just a Ideological menace on the Blog…Just ignore his posts…..Ben has already warned him several times….
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“Ideological menace”?
That means you’re wrong all the time, Gekko.
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My parents came to this country at age 18 and 25 with $2 in their pockets, couldn’t speak the language, and had a third grade education. They learned the language, worked hard, saved, sacrificed and built a life in a new country. My parents never asked nor wanted any handouts from the government. I never heard them once complain that the government wasn’t doing enough for them - unlike many of “victims” of today’s society. Now they are both comfortably retired and living well after a lifetime of hard work. I met a gentleman the other day who came to this country from Vietnam with “empty hands” in 1991. He couldn’t speak the language when he came here but he learned. He worked hard as a busboy cleaning up dirty dishes and saved and sacrificed. He eventually saved up $10,000 and started a cleaning business. Day and night he worked and eventually built it into a multi-million dollar company. He is now employing 2,000 Vietnamese in Vietnam by starting a canning operation there.
While I have had more opportunity than my parents and the gentleman from Vietnam, I have done my fair share of hard work and sacrifice - and I never wanted or asked for anything from the government - other than to get out of my way. The government should not penalize success by excessive taxation and redistribution of wealth. Success should be REWARDED in this country, not penalized and villified.
I have very little sympathy for the whiners and complainers and “victims” who don’t work hard and sacrifice and save and live beyond their means and then want the taxpayers to bail them out. This is why I’m a conservative Republican and why I despise liberalism.
Gekko, thank you for the background. I’ll note that my grandparents were also not born in this country and also came here with nothing. One of my grandfathers became a lawyer and spent his career fighting for the unions. The other became a successful business owner. And both of them were Democrats (as is the rest of the clan, even the two MBAs).
But getting back onto the topic here: nobody has said that you are not entitled to your opinions. You have, however, been asked to keep your most obvious political swipes and venom off this board, as the subject matter here is real estate not the ongoing battles of America’s political parties. Is that too much to ask?
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It’s funny that multiple posters here freely put down conservatives, Republicans, and Bush and nobody accuses them of “political swipes and venom”. I don’t mind their posts because real estate/the economy is intertwined with politics and I like hearing other’s opinions on political impacts on real estate/economy. I am not trying to turn this into a political discussion. However, I think my posts stick out because I’m in the small minority here.
You are not alone. I have the same beliefs as you do.
As do I.
If you are an American Conservative, as is George W. Bush, then here is what you believe:
1. Government spending and growth should be maximized, and funded by massive government debt.
2. The purpose of the military is nation building.
3. Social services, such as medicare, should be expanded whenever possible.
4. Individual rights should be subsumed to the government’s interest in keeping everybody safe.
You modern day conservatives are the best liberals this country ever had!
Except that the real liberals don’t stop at writing massive unfunded checks - they actually try to make the programs succeed.
Real liberals operate under the fundamental delusion that human beings are basically good. Real conservatives know better.
on the contrary, liberals want a lot of regulation, because they believe people cannot be trusted.
Exactly, Jose!!
Ah, yes! The typical right wing cry of looking back at what was as opposed to what is! Reminds me of that line in the movie, “In The Heat Of The Night”, when Endecott (the white cotton farm land owner) slaps Tibbs (the Chicago black cop) across the face for having the audacity to question him. Tibbs slaps him back twice as hard and Endercott, as he massages his face and tears well up in his eyes, replies, “At one time I could have had you shot for that.” Typical Republican response. At one time…….
Who gives a flying f*ck what WAS. This is the here and now. This ain’t the America of 1945 or 1970 or even 1980. This is a whole new ball game where there are multiple players on the sports feild as opposed to one super-team (USA) which was streets ahead of the nearest team for years. If the US doesn’t wake up and respond to that instead keeps spouting Republican sound bites like, “Staying the course” or, “We are working hard and making progress,” we are in a lot of trouble.
As for your remark, “I have little sympathy for the whiners and complainers who don’t work hard and save…” Go and look at the (possibly illegal) workers in the produce fields of Southern California. They probably work harder than you have EVER worked and in far worse conditions. They have no health insurance, suck up toxic pesticides every day AND they probably don’t whine and complain but enable right wingers like you (and liberals like me) to buy a lettuce for 70 cents instead of $3 if it was picked by a US worker. You probably think they should feel lucky because they have a job. After all, your response would probably be, “In their own country they only make $2 a day.” That’s the typical right wing response to situations I just described.
How about the coal miners in Virgina who end up with with black lung disease and die in their own body fluids. Do you think they don’t work hard? Rent a documentary called “Harlan County” and look at the image of yourself in a share holders meeting in New York when some miners heckle the board of the mining company as they ask for better medical attention and several company shareholders, dressed in $2,000 suits, react angrily and insist the police remove the miners.
How about the cleaners who get up at 4 am and work for minimum wage scrubbing floors and cleaning toilets so people can work in clean surroundings. You think they don’t work hard?
Yes, I’m a liberal. My parents (long dead) were liberals. My grandfather came from Ireland to the UK when he was 9 years old and his brother was 12 years old after their parents died. The elder brother worked as a coal stoker (age 12) and my grandfather worked mending shoes (9 years old). He probably took less than a week off from work until the day he died and his total wealth was a few British pounds and the watch he got from the company he worked for for over 40 years. Eight of his children (my uncles who I never knew) and who worked hard but had nothing, died in WW1 protecting the great British Empire. Or at least the very rich assets of the British wealthy upper classes. Much like young kids in America are dying each day in the Iraq war trumped up by asset rich Republicans who have never even served in the military. Bush, Cheney, Rumsfeld, etc.
Yes, I’ve worked hard. I’m careful with my money but I try not to look down on the less fortunate. Even more to the point, I try NOT TO EXPLOIT the less fortunate.
You right wing a**holes make me sick with your greed and dreams of empire, achieved through exploitation. “They have no bread? Then let them eat cake.”
Calm down, Paddy, and have a drink or ten. Typical Irish.
FYI. 25% Irish. 50% scots. 25% Australian but born in the UK.
I agree with everyone here when it comes to working hard. My grandmother is over 80 and still works 40 hours a week at the factory that she started after living through the Great Depression and raising 8 kids on almost nothing. I put myself through college and grad school and have been on my own since I was 18 and the independence, life lessons, and pride that comes of now making a comfortable wage is priceless.
However, I do live in SoCal, and I’d FAR prefer to pay $3 for a head of lettuce than 70 cents and then make up the difference in welfare, medical bills, hospital stays, and schooling for illegal farm workers kids. Don’t believe the hype from either party - my grandmother worked the fields when she was young and if we got some of the entitlement morons off their keysters they could do it again. I’am all for supporting seniors and the disabled so that they can lead comfortable lives - everyone else works. If you don’t do anything for yourself educationally, then you get to do menial labor - nothing wrong with it.
I agree with everyone here when it comes to working hard. My grandmother is over 80 and still works 40 hours a week at the factory that she started after living through the Great Depression and raising 8 kids on almost nothing. I put myself through college and grad school and have been on my own since I was 18 and the independence, life lessons, and pride that comes of now making a comfortable wage is priceless.
However, I do live in SoCal, and I’d FAR prefer to pay $3 for a head of lettuce than 70 cents and then make up the difference in welfare, medical bills, hospital stays, and schooling for illegal farm workers kids. Don’t believe the hype from either party - my grandmother worked the fields when she was young and if we got some of the entitlement morons off their keysters they could do it again. I’am all for supporting seniors and the disabled so that they can lead comfortable lives - everyone else works. If you don’t do anything for yourself educationally, then you get to do menial labor - nothing wrong with it.
I don’t agree that lettuce would be $3 a head without illegals. Al Rantel talked about a study that was done and how much more goods and services would be without illegal help…it was like pennies….like 3%.
I think those who want unlimited immigration say $3 a head, to make people feel like we MUST have immigration to survive. We don’t.
If you are looking for a party that is going to downsize gov’t and stay out of your way be sure to let us know when you find one. The republicans haven’t walked that talk for some time now.
Amen.
that’s all nice, but what’s your solution?
THE solution is;….If Gekko does not fire the first shot, none of this happens….
The solution is to bite the bullet and get out of Iraq which was a war trumped up by neo-cons in order to control (under the pretence of that Freedom and Democracy b.s) the flow of oil because the US has run out of the one commodity which made it powerful. Cheap and abundant oil. You do that by realizing that by looking at history and facing reality. That is, the USA has never won a war in the past 100 years without the help of other countries and that other countries (France, Britain, Spain, Russia, Portugal, Germany, etc.) all tried to occupy countries and all got their asses kicked. So the US should stop picking fights because it never wins. The US needs get out of Iraq now without losing more lives - or get out later with the loss of many more lives but the US WILL get out.
Next, you get rid of the BIG tax breaks handed to the wealthy 1%. Then you stop the multi-national corporations sending billions of $$ in profits (along with their CEO’s profits) off-shore.
You make sure EVERYONE has at least basic medical care. It has to be worked out carefully because corruption is now rampant in the USA because of Republicans. You negotiate with the drug companies (as every other country does) concerning prices instead of letting the drug companies set the prices. That was Bush’s gift to his pals in the drug industry. Much like his tax breaks for the oil corporations was a gift. The money saved you put elsewhere where it benefits the many and not the elite few……….and NOBODY on this blog is part of the elite few despite what they might think because they wear a $5,000 watch.
And pleeeeze….don’t tell me that the Democrats are for bigger government. Not after these incompetent Republican clowns have increased the Federal payroll to the point where it’s off the chart.
Ok, so this is your list:
1. Leave Iraq. BTW, we would be back to the region in 5-10 years due to Iranian/Syrian meddling. I rather get it right than wrong. I also do not subscribe to the ‘its about oil’ moonbat conspiracy, as there was far more oil being sent out of oil courtesy of the UN w/o the trouble before Saddam was overthrown. I do think the Iraqis should pay us back for our expended costs with their oil. I am almost 100% certain that leaving Iraq in shambles will lead to a wider conflagration as well as enboldened international terrorism, and eventually a western nation will lose an entire city. Maybe then people will take threat of Middle Eastern instability and the global effects of it’s influence seriously. Perhaps then the cost of not pulling out a bloody win at the least will seem dirt cheap in comparison. Additionally, the US military is way underfunded and undersized for what it is tasked to accomplished.
2. Raise taxes on the top 1%. Artificially limit corporate profits, limit CEO pay. I’m smelling the whiff of socialism here and it stinks. Been tried, no thanks. I also don’t buy into Pat Buchanan like protectionism. I do not know what the long term solution to the American ceding of industrial production to other nations could be, but I do know it’s not government sponsorship or tarrifs or restrictions. Look at Airbus with all of it’s multi government support, I will be surprised if they are even in buisness 10 years from now. The european model of high unemployment, restrictive work rules and out of control entitlements is not what we need. Members of the EU and other nations like Russia face population meltdowns as they are producing fewer children, but their pension and worker funded programs suffer from a projected future lack of workers to service the old. The US has the same problem but less severe, at the moment.
3. Provide massive government healthcare paid for by I dont know what. Medicare and social security are already massively underfunded but our budgets are out of control. Where will this $ come from? When you say provide healthcare for everyone, whom are you referring too? Do you also include illegal aliens? There is no such thing as healthcare that is simultaneously affordable, unfettered, and a small goverment burden. Good quality is expensive, universal coverage tends to come with many restrictions and waits, we all know the cost of medicare. Again personal responsibility comes into play. when you are young and mainly healthy, you seldom need medical care except for checkups and emergency coverage. To be able to bank that coverage to your elder years when you do need frequent medical coverage and service makes sense. I also blame quite a bit of the health problems in this country on the gluttonous behavior of Americans stuffing their faces with far too little exercise. Medical breakthroughs and the drugs invented in the last 40 years are nothing short of miraculous. That invention comes at a price earned by those medical companies. Why shouldn’t drug companies set their prices? There is value to their product, especially if it otherwise adds 20-30 years to human lifespan.
Relating back to housing, fat asses driving from mall to drive thru in their overtuffed sweatpants, is a side effect of forced suburban life, an effect of overpriced housing costs. If they got out of their SUV and walked, laid off the fast food and Cinabons, they might not need that diabetes or heart medication that’s keeping their fat asses alive.
What I did not see in your statement was any mention of large scale cutbacks in goverment entitlements, spending programs and other taxpayer funded pensions. For the record, I have been seriously disgusted with the drunken sailor credit card spending of the last 6 years. I am disappointed there has been zero accomplished on social security future solvency. Frankly, it will have to be pared back and some future leader will eventually have to bite the bullet.
If you are in favor of decreasing the federal payroll which you implied was a negative, i’m all for it.
Now, to relate this back to this blog, and housing. I’m not sure the answer to toxic mortgages is more government regulation, and I will really be pissed when the talk of government sponsired bailouts of homeowners and mortgage banking is proposed. I would welcome a crackdown on predatory lending and tighter regulation of lending standards.
Good retort Finnman! On all points! Yes, I think in 5 to 10 years we will consider the 2003-2006 Iraq warfare a tea party because the whiners put a lot of pressure to get us out of this war on terror. It’s going to get very severe in the future. I don’t intend to be a frequent flyer in 4 years - my flying days will be over. And I’m probably going to choose a city to stay long term instead of move every 2 years as a high-paid consultant. The libs will make this world a much more dangerous place because of their aversion to national security. Already they are gearing up for a swift pullout if Iraq. The vacuum will fill in with an even worse regime than Saddam’s. Welcome to the 21st century!
If a cesium or cobalt salted truckbomb goes off in front of Grand Central Station, watch what happens to the value of Manhattan Real Estate and all US urban real estate in general when the area is contaminated and has to be evacuated for 20 years. The lunatics are coming for us.
See this link for the ultimate in bubble popping (make sure you scroll down to the fallout contamination maps of DC and NYC, you would end up with the same level of long term contamination as Chernobyl on the entire island of Manhattan)
Dirty Bombs: Response to a Threat
Also, the BBC movie ‘Dirty War’ depicts what I am talking about. The end of that movie shows central London quarantined for decades, property values plummeting.
excellent post finnman!
The libs dream away the reality of easily-obtained radioactive material to make dirty bombs with. The threat is severe. That an a dirty bomb attack hasn’t happened yet does not mean it will not happen at all. Libs are too stupid to understand. After such attacks, libs will scamper into the woodwork like the cowards they are. Then maybe after 20 years such a serious attack will be forgotten and the libs will continue again to chirp their anti-American monkey slogans. Libs are like crickets. You hear them chirp chirp chirp. Then when a threat occurs they get quiet. When the threat leaves, chirp chirp chirp. The silence from the libs lasted about 4 months after the 9/11 attacks.
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Buffett: Nuclear attack ‘virtually a certainty’
OMAHA, Nebraska (AP) –Investment guru Warren Buffett offered a bleak prediction for the nation’s national security, saying a terrorist attack on American soil is “virtually a certainty.”
Envy and dislike of the United States have fueled rage against the country even as the ability to build a nuclear device has spread, Buffett said Sunday at the final day of Berkshire Hathaway Inc.’s annual meeting.
“We’re going to have something in the way of a major nuclear event in this country,” said Buffett, the firm’s chief operating officer. “It will happen. Whether it will happen in 10 years or 10 minutes, or 50 years … it’s virtually a certainty.”
Washington and New York would be the top two targets because terrorists want to traumatize the country and kill as many people as possible, Buffett said.
Chemical or biological attacks are similarly high risks, Buffett said.
Buffett is the second-richest man in the world with holdings in Coca-Cola Co., American Express and The Washington Post, but his main business is insurance.
Berkshire Hathaway’s insurance companies — particularly General Re Corp. — took a dlrs 2.4 billion underwriting loss because of the September 11 terrorist attacks in New York and Washington.
The companies are now writing policies on terrorism but limiting their liability in any nuclear, biological or chemical attack. Only the federal government can ultimately insure property and other damage from a major terrorist attack, Buffett said.
The 71-year-old Buffett and vice chairman Charlie Munger met with the news media the day after they spent six hours answering questions from some of the more than 10,000 Berkshire shareholders gathered for the annual meeting.
Find this article at:
http://research.lifeboat.com/cnn.htm
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Bill - how are you going to avoid flying if you’re going to have a house here and a house in another country?
You got a point there. Maybe I will have to just accept that I will fly less often. Currently I fly about 17 trips per year.
you guys are scared! watching too much fox news?
Quote from Mike;
” the USA has never won a war in the past 100 years without the help of other countries and that other countries (France, Britain, Spain, Russia, Portugal, Germany, etc.) all tried to occupy countries and all got their asses kicked. So the US should stop picking fights because it never wins. The US needs get out of Iraq now without losing more lives - or get out later with the loss of many more lives but the US WILL get out.”
My response:
During WWI only the last minite intervention of US ezpeditionary forces prevented imperial Germany from overrunnibg france and defeating the allies.
President Woodrow Wilson, A classic Liberal Democrat,got the US involved in WWI. US soldiers killed in wwI;150,000
WWII: without US intervention Great Britain would have been forced to surrender via starvation or repeated bombing attacks to Germany, and Hitler would have gained control over the entire European continent. Without US sending lend-lease aid to russia, She would have probably been knocked out as well. President Roosevelt, a great liberal, got US into WWII which cost 500,000 US soldiers lives. For what purpose? A ship ferrying US troops to Africa got sunk by a u-boat, drowning 900 US troops instantly. Did we cut and run? Allied warplanes mistakenly bombed an italian village, killing 2000 innocent italian inhabitants. Did we cut and run?
Korean War: Without last minite intervention of several US divisions, which got pretty well decimated but barely stopped the Nkoreans at the pusan perimeter, Nkorea would have overrun entire korean penninsula and won a great communist victory, and we would not have a free democratic Skorea today. Pres. Truman, a great liberal Democrat, took US into that war. US casualties in korean conflict: 34,000 killed, 5x seriously wounded/maimed.
IMHO the stakes in IRAq are as great as all the previously mentioned conflicts, maybe more so because the enemy(Islamic Fascism) poses a direct threat to the US mainland. If we decided to cut and run, then Iran moves in and dominates the Middle east, and our allies(Saudi arabia,kuwait,Emirtaes)will shift their allegiance to IRAN. It would be a major power shift felt all over the globe, and China, Russia, and probably most of erurope would align with Iran. Then Iran would have few obstacles building a nuclear bomb.
“Investment guru Warren Buffett offered a bleak prediction for the nation’s national security, saying a terrorist attack on American soil is “virtually a certainty.”
To get the unweldy US democratic system into a single unified militarized society for confronting the War on terrorism unfortunately requires an event such as 911, pearl Harbor, or the blowing up of the Maine in havana Harbor which precipipated the Spanish-american war of 1895. The US population when sufficiently jolted can become an enraged engine lusting for blood. This occured right after 911 when democrats amd republicans alike were athirst for hot bloody war against Al-queda and islamic Fascism.
I don’t suppose there would be much technical difficulties in exploding a radioactive dirty bomb in New York or Los Angeles harbor. I am sure that Iran and NKorea would happily supply the know-how to the worldwide terrorist blackmarket network. I guess with the leftist liberal wing of the democratic party wanting to dilute the Patriot act and other Homeland tough security enactments, it would be only a matter of time before we witness a dirty bomb attack in a major US city in the near future.
what drives me nuts is the incessant infatuation of people like Chuck Schumer on port security. Yes, it is necessasry and is a vulnerable gap, but so is the entire Southern US border. Installing x-ray machines to scan containers that are already in the NYC harbor is way too late to be effective in the multi layer defense of the US. The right strategy is to prevent the Johnnie Jihadis from getting the material and shipping it in the first place. The only place that can occur is out of the US, in the Middle East.
It’s coming, and the repurcussions to the housing market will be astounding.
You’re right, since we have no border security, why bother with port security. And of course you can rely on the Homeland security folks…the bush admin is noted for it’s ability to put the most competent, skilled personnel in crucial jobs…NOT. Chertoff is just a lawyer and a political hack who never managed more than a hundred people before being given Homeland, the biggest federal government department ever created, with the biggest budget ever. Well, there was Katrina, as the Chief ultimately in charge of FEMA, one of his departments, he did nothing but cover his a$$. If you are relying on the jokers in Homeland Security for their expertise, then you may also want to invest in condos in Sacramento.
A Democrat is a Republican that’s been arrested.
Gekko - Help!….. I look and look and can’t find the liberal media!
The International Council Of Shopping Centers website, is a good source for retail holiday feedback at the end of Dec- projections, beginning of Jan -met expectations or not?
Front Page news from the AZ Republic, which seems to get what’s happening here in AZ. It’s kind of shocking that this main stream newspaper put this on the front page. Does that mean it’s actually worse?
Mortgage troubles are rising - Valley foreclosures nearing 2-year high
“Last year, financially strapped homeowners in the Valley were able to escape foreclosure by selling homes quickly for a profit. Others refinanced and pulled out equity that they used to pay off other bills. Many switched to adjustable-rate mortgages with lower monthly payments
But now, there are many more homes on the market, so houses are selling more slowly and in some cases for less money. The initial low “teaser” interest rates on those adjustable mortgages are climbing, bumping up monthly payments. And many struggling homeowners already have tapped out most of their equity and run up their credit cards.
“A lot of people with rising mortgage payments due to adjustable loans can’t refinance now because their credit and debt situation has changed,” said Margie O’Campo de Castillo of Arizona Dream Realty in Phoenix. “They are faced with finding a way to sell their home fast or lose it.”
http://www.azcentral.com/news/articles/1125foreclosure1125.html
If it is ok with you folks, I would like to initiate a non-scientific poll here on Ben’s Blog. Why?, I am just curious to see how we stack up of savers.
Poll Question: What is the non-mtge debt profile of Ben’s Bloggers as a percent of his/her gross income and what is his/her savings rate as a percent of the same? savings rate=401k+match, IRA, non-retirement, etc.
I’ll go first..
Debt=$0, therefore 0% of gross
Savings, 401k+company contributions = 30% of gross, non-retirement = 35% of gross, investment income equivalent to 15% of gross
if you need help with this, please send me your social security number, birthdate, and various account numbers and I will take care of the rest..please email this info to http://www.yourstolenidenity.com...
just kidding..
I have no debts. I pay off my credit cards every month. I’m retired. I rent now but sold 2 properties (jointly my wife and I owned one property each). I have enough money in the bank (in CD’s) to last me for two life times. I also trade the stock market with a substantial amount of money (which I can afford to lose) and the profits allow me to leave the CD’s untouched. I own a 24″ tv which is 2 years old (not flat screen) which I bought after my 12 year old t.v gave out and I have no interest in buying a $5,000 tv so that I can watch the same crap but bigger. I buy my computer(s) at PC Club. If you need to know ask me why. I drive a 1995 vehicle with 130,000 on the clock. My wife drives a Camry with 55,000 on the clock. I service both cars. When my car dies, I’ll go to a government auction and buy another. I am flooded with credit card offers every week, including pre-printed checks for my use. I use them as scratch paper. My wife and I eat out once a week at a nice, reasonably expensive, restaurant. I was thinking of buying property again once the exotic loans have taken their (what I firmly think will be) a deadly finacial toll BUT, I’m now thinking twice about owning property because I feel there is a method to this property boom madness. That is, turning as many of the population into property owning cash cows for the government. If my wife and I need anything we buy it but we search for the best price first and we NEVER buy on impluse. If my sons need something they have only to ask. I’ll lend them the money with no interest but they seldom ask.
I am a life long liberal who gets a kick out of listening to idiots who make less than $70,000 a year and are 3 months wages away from bankruptcy court, blather on about Republican values.
What else do you need to know?
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Happiness is a state of mind and as long as you’re happy, that’s all that matters. I do believe that life is a delicate balance and that while you must save for the future, you need to enjoy today (within reason).
I’m a vicious saver, but I also pick my shots and splurge on luxuries that I can afford and pay cash for - Lexus, $700 Suits, $5K Watch, etc. And life is too short to clip coupons in my opinion.
Gekko
If you paid $5,000 for a watch so you can tell the time….you’re dumber than I thought.
He is either a complete bullshitter or a pathetic troll who derives his self worth from possessions. Either way . . . yeech.
Interesting market, wristwatches…
The right kind of Swiss watch, with the right name and the right functions and right era, could be worth $10k to $500k, and more than likely, it isn’t going to be a rolex…
I read recently, that wristwatch sales are down bigtime amongst youth, worldwide.
Not necessarly. If I had enought money I would like a fancy gold watch. Esp. like the Corum gold coin watches.
Corum gold watches aren’t anything close to what i’m talking about. Complicated functions on watches with names like Patek Phillipe, etc. will get you the big money. Some of the more valuable ones are 1/10th as flashy as a Corum, in looks.
I am partial to Frank Muller watches. Now that guy makes truly intricate and extremely cool time pieces. A true master craftsman. Unfortunately like most geniuses he went insane a couple years back and stopped making watches. As I understand he sold his company and is hold up in Switzerland getting drunk. Try to get the older watches that he actually designed and created.
http://tinyurl.com/yyjhfj
I am partial to Franck Muller watches. Now that guy makes truly intricate and extremely cool time pieces. A true master craftsman. Unfortunately like most geniuses he went insane a couple years back and stopped making watches. As I understand he sold his company and is hold up in Switzerland getting drunk. Try to get the older watches that he actually designed and created.
http://tinyurl.com/yyjhfj
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It’s no sin to treat yourself if you can pay cash and afford it. I wear the watch every single day and I’ll keep it for the rest of my life. Yes, it’s top tier in terms of holding value/appreciation - but that’s not why i bought it. i bought it as a reward for hitting certain personal income and net worth objectives.
I agree. Indulgences are good for savers. I don’t understand why TxChick is so at odds with whatever you say. I admire both Gekko’s opinions and Tx’s. My own indulgences actually tie into my career. I like to travel - within the U.S. I like great accomodations. I have to keep my frequent flier miles up to get the ability for free upgrades to first class. When I am contracting on the east coast and fly back home west 4 times per quarter, I don’t want to sit by a screaming kid for 5 hours. I get “free” upgrades on most of my trips. Other than travel with great hotels and first class, I’m a cheapskate and like inexpensive things. Going to the beach just to get away from the Phoenix heat is enough for me in the summers. I don’t think anyone’s indulgences are foolish. Hey socialist Mike, if Gekko likes a $5,000 watch, it is his choice. It is not foolish. Maybe you like Havana cigars, which I would not take $10,000 to consume one. So BFD.
I just use my phone for a watch.
Mike, Don’t let the haters get you down! It is fascinating for me to watch the middle class of this country getting crushed and smiling (and spending) all the way down…..Perhaps America has truly been Hannitized? These folks, while feeling superior to anyone who dares to be or think differently are being looted night and day: We have an AMAZING spendthrift government, a black hole for cash war in Iraq and to smooth it over they just print more dollars and cheat from future generations. This is creating one bubble after another and all the while we give subsidies to large oil, financil and insurance entities..(as long as you have strong lobbyists you get exactly what you want in the USA)…What will health care, higher education, insurance, food and shelter cost in US dollars going forward and what will create enough domestic real wage growth to pay for it?
Swissluxury
You nailed it perfectly with less words than I used.
Swissluxury…i echo Mike’s words.
“Poll Question: What is the non-mtge debt profile of Ben’s Bloggers as a percent of his/her gross income and what is his/her savings rate as a percent of the same? savings rate=401k+match, IRA, non-retirement, etc”
My debt percentage is 2.14%.
I’ve been having high income of late and very low expenses, so my combined retirement and non-retirement is about 50% of my income. My 401k+matching+traditional IRA contributions amount to just around 10.5% of my current income.
No debt, not even a mortgage. Renting.
No debt, zip, zero, nada.
Ok, here is some idea of what my economic houshold is like.
Non Mtg Debt = $0 (since 2001), so 0% of Gross. We live by the Amex green card - lots of credit activity, but always paid in full.
Savings however are on hold (down from 12% of gross) due to spending 2005 on vacation recovering from employment. Great for the soul, not so for savings.
The new job is ramping up but income is currently only ~65% of previous (expcted to get back to previous par in ~2 years due to nature of contract). Household cash flow is positive, but tight. It would be less tight if we weren’t on track to pay off our mortgage in 12.5 years total. People who know have questioned why we did that - even after explaining why, not everyone grasps the big picture of total payments at the end (about $0.31 in interest for every $1 in principal/down payment vs. a usual $1.25 and up in interest for typical loan). Sad to realize that some people can’t see past the monthly payment even when you spell it out in flashing lights.
It’s tough being the sole income for a family of 4, but really worth it to have my wife stay home and raise the kids. We see ourselves at something of an economic low spot right now, but we’re glad we didn’t over extend and are able to get by during such a time.
Unlike some others here, who seem to have been born into affluence and scoff at anyone who was not, I come from a lower-middle class home and grew up outside of Detroit among people who’se idea of making it was to get a job at the Ford plant instead of one of the suppliers.
I’d write more, but my daughter needs someone to play with. ttfn.
I came from lower middle class, myself. I’m a boomer, but was very square in high school - no drugs. And I earned my MS degree in CS. All that I have is through my own hard work and taking advantage of opportunities all along while my “competitors” were too drugged up to make good decisions. After the year 2000, my strict past has been showing very well on my Quicken charts. I also am a fitness fanatic (a slim 47 year old who never smoked and worked out regularly since age 17) and think health is as important as accumulating wealth.
The collectivists here and out in the real world want to take your money and freedom, Bill, in the name of “economic justice” or “fairness” or some such nonsense. These leftists are our true enemies (even more than the neo-cons) and cannot be reasoned with. I hope we can deal with them the correct way one day soon.
Mark, that is exactly true, and it really amazes me that people who did not like Bush could have voted for the Libertarians instead of the Demothefts. America is full of idiots who don’t understand the Democrats are serious about that equality b.s. The only equality leftist regimes delivered in history was equal misery - see pre-1990 Russia, see North Korea.
“These leftists are our true enemies (even more than the neo-cons) and cannot be reasoned with. I hope we can deal with them the correct way one day soon.”
This seems a little harsh Mark for a utopian who has posted that he is a citizen of the world, opposed to governments and borders. Apparently you as a citizen of the world are happy to institute pogroms and political executions in pursuit of your personal goals. Have you considered investing in real estate in North Korea? You might feel right at home.
Interesting saver question.
Let’s see. Self-employed so I put away the max 30-something percent/yr in my SEP-IRA, plus save an additional 8-9% in CDs or stock accounts. Car paid for with cash, pay off credit cards each month. Rent here in Seattle, have mortgage on weekend house/rental property in Austin with a balance that’s 70% of current appraisal, no HELOC’s. Finished off student loan payments a couple of years ago. So, earnings are pre-tax are 160K and current debt total (mortgage) is 260K, and savings rate is about 24%.
Wife (29) and I (28) earn $165,000 yearly in total wages.
First the debts:
We collectively have $100,000 in school loan debt, but at least that’s the only thing. Because we financed it a couple summers ago at the ridiculously low rates of 2.62% and 3.00%–with the concomitant tax deduction–we elected to take forever to pay it off. Right now a dollar saved in our 5.50% E-loan savings account earns us more interest than it would save by paying off a dollar of our student loans. If the spread ever turns away from our favor, we’ll pay down the debt.
Now the savings:
We save about $2500 a month in a 5.50% savings account (balance only $26,000 at the moment but we just started working in 2006, and had $15,000 in credit cards that we paid off the first half the year). $2,500 in savings is about 30% of our net monthly income and about 18.2% of our gross. We are saving for a home to buy when the time is right. We both work for a place with a defined contribution pension plan–but she gets the better deal. Her place of employ is exempt from social security taxes. Mine is not–so I contribute to my own pension plan and freaking social security that I’ll probably never see. If only the IRS Form 4029 worked for employees working at institutions that do not also have an exemption. I’d turn Christian Scientist in a minute. If it weren’t for Social Security I’d have a great retirement annuity.
Debt: 0% (credit cards are paid off monthly)
Savings:
401k = 10% of gross (6% for max company match, which is another 4%)
Downpayment fund = 35% of gross
Additionally, I have six months’ gross in my emergency fund, which I could probably stretch out to a bit shy of a year, given that I’m used to living on one paycheck a month to fund my downpayment savings. Depends on what COBRA coverage would run.
Just doing my part to correct America’s negative savings rate!
We probably have a non-representative sample here, but even so the numbers being quoted show just how far away from the mean many of the blog regulars are.
I also have zero debt. I currently rent but didn’t have a mortgage when I sold in 2004. I am in my early 50’s.
I don’t save explicitly for retirement outside of my (Australian, government) employer’s compulsory Superannuation plan. This is very generous, actuarial studies indicate that the defined benefits are equivalent to about 15% of gross salary, plus the return on the 5% of salary I contribute myself.
That said, I will be putting almost my entire savings/investments (several years’ gross income) into my own Superannuation plan before 30 June 2007, and as much as I can afford afterwards until I retire. That approach (due to tax changes this year) gives you very significant advantages here.
We also have no debt, two vehicles (one is 10-years old), both paid off. We rent, so no mortgage. Use credit card for everything, but pay it off once or twice a month.
We have a family of five, so our savings rate is not as high as most here, though we do have a defined-benefit pension plan. We also contribute about 5% of gross pay toward a Deferred Comp Plan and Roth IRA.
We have a fair amount of money in cash (& various equities), which we intend to use for a down-payment, college for kids, retirement supplement and “rainy day fund”.
From the front page of the AZ Republic
“Mortgage troubles are rising - Valley foreclosures nearing 2-year high”
“Economists say that nearly 40 percent of all home loans in metropolitan Phoenix are adjustable-rate mortgages, or ARMS. Nationally, about 30 percent of home loans are ARMS.
As mortgage payments rise, many homeowners fall deeper into debt.
Household debt has climbed to 132 percent of disposable income. It is the first time since the Great Depression that Americans are spending more than they make and saving next to nothing.”
http://www.azcentral.com/news/articles/1125foreclosure1125.html
If the main newspaper in town is showing this on the front page, you know it’s bad here in AZ.
Depends on who you ask
Debt: My opinion - 0
IRS opinion - 3%
I’m gonna win.
Hello everyone - long time reader, first time poster. The following bubble summary by Gary Shilling is going on my short list of links to give out to kool-aid drinkers. It’s a very good synopsis of what is occuring, and is about to occur:
http://www.fxstreet.com/fundamental/analysis-reports/the-coming-collapse-in-housing/2006-11-23.html
My apologies if this article has been discussed already…
I live in a bubbly area (Concord/Walnut Creek, CA) where my official bubble realization moment was a 1500 s.f. ranch (with practically a strip of sod for a front lawn) that was being “offered” at $965,000 last year. The only property I ever bought was $76 per square foot.
This blog’s value cannot be underestimated - and thanks to all of the posters that have educated me
-D
Thanks Dynabyte - that is a fantastic article!!!!!
Summarizes arguements very nicely and includes numerous helpful graphs - i just sent the link to several people i know.
I’m not a wealthy person, I’m only in my 20’s, but have a family. The only debt we have is on the car, and the APR on that loan is lower than the interest we are paid on our savings at UFB Direct. We pay our only CC in full every month, and we earn AA miles while doing that. We try save 25% of my net pay, so that in a few years we can buy a house with a fat downpayment.
I don’t know what other gen-Y’ers attidude toward debt is, but mine is “the less debt - the better”.
Oh, and BTW, I am very thankful to Ben and all the informative participants on this blog for helping me see the light.
Very interesting NYTimes article on New Orleans destroying welld esigned but deteriorating public housing for ‘new’ crap boxes that will last 10 years.
make sure you watch the interactive slideshow
All Fall Down
Great one from Ben Stein:
A Formula for long Term Happiness
http://finance.yahoo.com/columnist/article/yourlife/11994
Mr. Stein write of people he knows in their 50s and early 60s. He implies from the hippie days where drug use was popular, the ones who never took drugs have more happiness than the ones who lacked the self control. I think self-control is the main point he’s trying to get across:
“The men and women I know who have spent a lot of time smoking pot have, by and large, thrown their lives away in the pursuit of feeling no pain. There are exceptions, but typically they can barely get out of bed, let alone pursue a career aggressively or save in a disciplined way…Basic, long-term sobriety seems to me a precondition for a successful life, and certainly a precondition — in most cases — for a life of prudence as far as money is concerned. The man or woman lost in marijuana-induced bliss cannot and will not be able to evaluate investment options and pick the best ones — it’s that simple. One of the many blessings of sobriety is to be able to invest sensibly.”
I thought I was the only one who observed this until Mr. Stein wrote the article nearly two weeks ago. I’ve never been into drugs and attribute my success and triumphs to marching to my own drum - like enjoying reality.
What the hell would happen to America if people stopped using illegal drugs? Imagine all the extra dough we would have for a mortgage :).
I smoked dope a few times in high school, and I won’t lie, I enjoyed catching a buzz with my friends. In college I didn’t indulge at all, and developed a mild contempt for people who were pushing thirty and still toking. The thing that bothers me most about it is that every toker is contributing to the drug trade, which is a nasty, nasty business. I’ve traveled enough in South America to see what drugs and the drug trade have done to those countries, and I put the blame squarely on the North Americans who can’t get through the day, or life, without trying to alter their reality.
The federal government’s “War on Drugs” causes the misery of the drug trade, not users. No decent person wants to imprison someone for ingesting certain plants, or anything else. It’s none of their business.
“The men and women I know who have spent a lot of time smoking pot have, by and large, thrown their lives away in the pursuit of feeling no pain. There are exceptions, but typically they can barely get out of bed, let alone pursue a career aggressively or save in a disciplined way…Basic, long-term sobriety seems to me a precondition for a successful life, and certainly a precondition — in most cases — for a life of prudence as far as money is concerned. The man or woman lost in marijuana-induced bliss cannot and will not be able to evaluate investment options and pick the best ones — it’s that simple. One of the many blessings of sobriety is to be able to invest sensibly.”
I have to take it to stop seizures and deal with depression. Had a great job w Gateway but we all know what happened to that company. So not always true, but lately that sums it up for me. Tried to stop for awhile but it only made the depression worst.