April 19, 2007

Bits Bucket And Craigslist Finds For April 19, 2007

Please post off-topic ideas, links and Craigslist finds here.




RSS feed | Trackback URI

142 Comments »

Comment by flat
2007-04-19 04:05:25

bail coming FRE FNM and WM
is that 42 billion so far ?
the fnm,fre comes from taxpayer’s pockets

Comment by Ben Jones
2007-04-19 04:14:16

So far, that isn’t a penny from taxpayers. IMO, the real threat of a bailout would be for the GSE bondholders.

Comment by flat
2007-04-19 04:17:24

can FRE or FNM fail ?
if not then it’s taxpayers that offer the guarrantee

Comment by Ben Jones
2007-04-19 04:25:05

Of course they can fail. But we’ll see who volunteers to pay for the 1. portfolios and 2. the guarantees. Don’t forget they have massive derivative positions behind both. Can AIG fail?

(Comments wont nest below this level)
 
Comment by rvdoc
2007-04-19 05:24:59

If you read their charters you will find that the “guarantee” is a tiny fixed amount that is dwarfed by their portfolios. What many assume to be a cart blanch guarantee in fact does not exist. Buyers of their bonds “assume” full backing by the US govt - an implicit guarantee. Sure hope they read the fine print.

(Comments wont nest below this level)
Comment by sigalarm
2007-04-19 06:39:15

Don’t assume that the portfolio is holding a great deal of this recent junk mortgage (at least in the case of Fannie). They have been in the business a long time, and they relish their conforming 30 fixed loans that pump money to them every month like clockwork. The fundamentals of where the money comes from, and how much of it they take in every month makes the restatement / accounting boondoggle all the harder to understand.

 
Comment by jim A
2007-04-19 11:20:10

Keep in mind, almost everyone who wasn’t in the last decade of their loan refinanced between 2002 and 2004 when rates hit rock bottom. There are very few people indeed who are paying off year 20 of a thirty year loan today.

 
 
 
Comment by Jas Jain
2007-04-19 05:14:41


Most of the Fed and USG intervention in recent years has been to bail out bankers and financiers. No?

Of course, the argument is that by bailing out the bankers and financiers they are saving the US economy and thus the “Little Guy,” that Louis Rukeyser often talked about when he talked about the stock market.

We have created conditions whereby what is good for bankers and financiers is good for America. 30-40 years ago it was said of General Motors.

Jas

Comment by palmetto
2007-04-19 05:41:06

“We have created conditions whereby what is good for bankers and financiers is good for America. 30-40 years ago it was said of General Motors.”

Great point, Jas. The difference, of course, is that General Motors provided jobs, pensions and a halfway decent product, back in the day. The bankers and financiers provide offshoring, outsourcing and massive transfers of wealth. They provide very little in the way of employment and their “product” is debt.

(Comments wont nest below this level)
Comment by pressboardbox
2007-04-19 05:57:26

but the massive glass buildings are so pretty.

 
Comment by Blue Skye
2007-04-19 06:07:19

The bankers provide significant political campaign contributions. Take a look at who was backing Hillary (brrrrrrr) in the NY race.

 
Comment by packman
2007-04-19 06:10:58

Great follow-on point!

I think if the average person was aware of just how much of our wealth is owned by people who don’t actually produce a physical product, they would be shocked and would call for heads to roll. Unfortunately it’s easily observable when you look at the buildings around you - just notice how many banks there are, and how many of our opulent downtown buildings are banks. Does it really take that much of our economy just to hold our money? And they don’t even *physically* hold it anymore - they just manage numbers in a computer.

I realize that naturally as society gets more complex, there’s more work to be done in managing our money. But the work should be a *decreasing* portion of our total economic output, not an *increasing* portion.

 
Comment by GetStucco
2007-04-19 07:07:04

“The difference, of course, is that General Motors provided jobs, pensions and a halfway decent product, back in the day.”

The bankers and financiers serve a similar purpose, for the top 0.5% of the wealth distribution — the part that pays the bulk of political campaign contributions.

 
Comment by Jas Jain
2007-04-19 07:44:56

“The bankers and financiers serve a similar purpose, for the top 0.5% of the wealth distribution — the part that pays the bulk of political campaign contributions.”

I study my Adam Smith religiously. The master said that bankers and financiers (especially traders) have no allegiance to any nation or people. They will take their capital to any end of the globe.

I can guarantee you one thing — bankers and financiers will take their capital and move it somewhere outside the USoA. But, first they will milk the American People for all they are worth and more. The two bubbles over the past dozen years were to milk American People for more than what they are worth. During 2008-10 jobs will be gone, capital will be gone and some of the bankers and financiers will move to their new capital in Shanghai. They will still be able to collect rent (also know as interest) on their capital from the American People remotely. Aren’t globalization and technology wonderful?

Jas

 
Comment by GetStucco
2007-04-19 07:53:58

Jas — Unfortunately, I totally agree with you.

 
Comment by TulipsAllOverAgain
2007-04-19 09:05:19

Packman said:

“I think if the average person was aware of just how much of our wealth is owned by people who don’t actually produce a physical product, they would be shocked and would call for heads to roll.”

I was just thinking about this the other day. I saw a newshow on the mansion building going on near Greenwich, CT, home to many hedge funds. We’re talking 40 to 60k square foot palaces being built for hedge fund managers and their new found wealth.

This type of wealth used to be reserved for the Rockefellers, Carnegies and Gates of the world who actually created huge industries that produced something.

Now you can just trade other people’s money, take a huge share of any gains, and be fantastically wealthy. But nothing tangible has been produced, you’ve just extracted a fee from exchanging ownership interests in the productive assets. How long can that last?

Meanwhile, back in China, the citizens are such great savers they can’t even get a shopping mall more than 10% full. Such a striking contrast with the U.S. in terms of industry, thrift and planning for the future.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aHdszWoQEitA

 
 
Comment by chicagobubbleblog
2007-04-19 06:14:16

Agreed, the little guy always gets it in the end. Literally and figuratively.

(Comments wont nest below this level)
 
 
Comment by arroyogrande
2007-04-19 07:53:49

Couldn’t they just loan out non-existent money and never release financial information? When was the last time they released financials?

 
 
Comment by GetStucco
2007-04-19 07:05:11

“Freddie Mac and Fannie Mae pledged to buy tens of billions of dollars of new subprime mortgage loans over the next few years to help prop up the market.

This WSJ article (on p. A3 of today’s print edition) suggests that Fannie and Freddie plan to step up to the plate as the Superfund for toxic mortgages. I like the writers description of the plan (”prop up the market”).

Unlike the case of the environmental Superfund (CERCLA) Act to clean up toxic waste dumps, there are no rules governing who pays for the cleanup costs. I would not be surprised to see Senators Dodd and Frank try to sneak in a taxpayer-funded subsidy to help Fannie and Freddie shoulder the burden.

Comment by manraygun
2007-04-19 08:08:02

Freddie Mac may provide $20B to help loan market

http://www.latimes.com/business/la-ex-subprime18apr19,0,839351.story?coll=la-home-business

“The summit fueled no expectation of a taxpayer bailout. Earlier this month, Sen. Charles E. Schumer (D-N.Y.) called for a federal infusion in the hundreds of millions of dollars to rescue beleaguered borrowers from unaffordable mortgages.

But Dodd, who is chairman of the Senate Financial Services Committee, has been aloof to the plan, and Sen. Richard C. Shelby (R-Ala.), the panel’s senior Republican blasted it today.

“It’s a bailout,” Shelby said. “You can’t save people from themselves in the marketplace.”"

Comment by Sophia Tesch
2007-05-13 13:20:49

I just want to know what course, seminar, or old boys’ group get together, handed out the “You can’t save people from themselves in the marketplace.” Bologna! I have heard those exact words repeated from apathetic legislatures and socio-economic biased people so many times that I am skeptical about it being an original thought. It seems like the standard cliché answer for a question like “Why isn’t the legal system protecting the citizens of this country from fraud and ‘I’d sell you my granny for the right price’ policy?”. What is really sad is that those who created the problem will end up capitalizing off of it probably increase profits while those at the bottom of the financial food chain will have been exploited once again…and the game continues.

(Comments wont nest below this level)
 
 
Comment by John Fleming
2007-04-19 08:35:20

I think it’s already going on. Mac and Mae is the US government’s and Bernanke’s helicopter.
I wonder who’s checking their books, if they have any.
In my humble opinion, this is the key of the game…

Comment by GetStucco
2007-04-19 10:04:54

“Mac and Mae is the US government’s and Bernanke’s helicopter.”

That is a good hypothesis, but I have no idea how the average U.S. citizen can test it, given the limbo black hole status of Fannie’s balance sheet. I find it quite bizarre how yesterday, Fannie and Freddie supposedly did not buy subprime loans, and today, they are making Senator Dodd highly pleased by their offers to pick up the slack left by Wall Street subprime investors who got cold feet. Are there any rules governing what Fannie and Freddie can do, or do their charters give them cart blanche to load their unreported balance sheets with toxic loans that the private sector is unwilling to touch?

(Comments wont nest below this level)
 
 
Comment by yensoy
2007-04-19 11:07:45

I don’t mind this at all….. that is if they can buy subprime debt for pennies on the dollar

 
 
Comment by Lisa
2007-04-19 08:21:09

“Bail coming FRE FNM and WM”

Does anyone think this will make any kind of meaningful impact? Slow the decline? Or worse, prevent it??

I have three hopes: 1) These lousy credit risks won’t WANT to stay in houses that aren’t worth what they paid for them and 2) By the time AltA blows up, the numbers will just be too big for any bailout and the market will tank and 3) Tighter lending standards will make it more and more difficult to keep prices where they are.

The thought that a borrower could act irresponsibly and then get “help” to stay in a house they can’t afford which just keeps housing out of reach for people who are financially responsible is sickening.

Comment by Matt_in_TX
2007-04-20 06:27:31

“The thought that a borrower could act irresponsibly and then get “help” to stay in a house they can’t afford which just keeps housing out of reach for people who are financially responsible is sickening.”

This is the best summary of this issue that I have read.

 
 
 
Comment by jmf
Comment by flat
2007-04-19 04:28:15

those charts say it all- like the guy from mort bankers that sold in 05= briliant

Comment by WT Economist
2007-04-19 05:13:32

I would have sold too, though probably sooner (and to soon), if my houses was an investment. As it is, my house is a place to live.

The good scenario is that we have a couple of years of slow growth, but no severe recession, because the rest of the world pulls the U.S. along rather than the other way around. Meanwhile, housing prices fall and affordability is restored. People’s consumption and profits come down a peg, and it hurts to an extent, but sky doesn’t fall as a more solid base is established.

It could happen. Other things could happen too. And I think our business and political leadership runs the gamut from the rapacious to the clueless.

Comment by aladinsane
2007-04-19 05:16:54

Can overly baggy 1930’s dictator pants ever make a fashion comeback?

We have leadership that is grist for the comedy mill, and little else.

For now.

(Comments wont nest below this level)
 
 
Comment by Jas Jain
2007-04-19 05:23:23


Didn’t one of the Chief Ecomists of NAHB or NAR sell his home in 2005? I think that it was most likely Seiders of NAHB.

Dallas Fed President Fisher said (in 2005, I think) that he sold his home near DC and didn’t buy when he moved to Dallas. He said that he was happy to rent.

Watch what people do.

Jas

Comment by aladinsane
2007-04-19 05:26:08

I sold in 2005.

Guilt by association?

Or just getting out at the top?

(Comments wont nest below this level)
Comment by LILLL
2007-04-19 07:47:14

I sold in 2005 also.

 
Comment by NoVa Sideliner
2007-04-19 08:12:01

Nah, you were just getting out a the top! Good move. Have no guilt, unless ou were one of the engineers of this debacle.

I’ve been wanting to sell out, but being “trapped” in a low-interest mortgage that costs less than what I earn on CD’s means that I’d be giving up that nice item. Then there is the cost and hassle of moving, so I guess my house is “a place to live”. For me, it’s cheaper than renting the equivalent, though I should take in mind the opportunity cost of the equity.

Anyway, for now, I ride it out, being in one place for the long term anyway. But if had investment properties, you can bet they’d be long gone. (I was looking for such properties a couple of years back and found nothing that would “cash flow” at all around here in the DC ‘burbs, at least nothing that wouldn’t be landlording hell.)

In the meantime, I have pleaded with (my wife’s) relatives to ditch their rental properties, but they refuse. The equivalent “yield” on those is about 3% at current rent/values. Awful. Yet since they are paid for, and only because the places are paid for, they’re cash-flow positive — most years, not in bad maintenace/tenant years — so my rellies think it’s free money rolling in. Arrghhhh! They could get more in just I-bonds. Easily.

 
Comment by aladinsane
2007-04-19 08:17:28

I plied my trade as an engineer, on the good train housing bubble, for 4 years…

My wife and I got off @ a very nice station~

 
 
 
 
Comment by rvdoc
2007-04-19 05:34:01

Interesting that the factual data as presented when summed up leads me to conclude that we will have one hell of a hard landing while Mark seems to be pitching more of a soft landing scenario. Probably doesn’t want to scare his fund buyers into pulling all of their money out and stuffing it under the mattress. LOL

 
Comment by GetStucco
2007-04-19 18:57:02

‘This is all great news for renters and buyers who are patient. Over time, housing prices and interest rates should decline, resulting in improved affordability. This adjustment, however, will take time and occur over a period of years, not months. Housing is illiquid and prices are sticky. As a result, potential buyers should exercise patience and not jump back into the housing market too early. A year ago, I described the state of the U.S. housing market as “the next NASDAQ bubble.” The NASDAQ took over 2 ½ years to go from peak to trough. I suspect that housing prices could display a similar pattern, and we are still over a year away from the bottom. Given these risks, I prefer renting versus owning, and an investment strategy which favors defense versus offense.’

He is right the correction will take years, not months, but wrong about the limit to two years. Housing busts typically take longer than stock market busts to play out. This one is just beginning, and follows the biggest and longest-duration price bubble in U.S. history. The conjecture that bottom will be reached in two years thus is wildly optimistic.

Comment by CA renter
2007-04-20 01:42:59

Agree, GS.

This will take MANY years, as there will be some attempts at bailouts which will force us to go through a Japanese-style deflation, IMHO.

Too bad they won’t just rip off the band-aid. Now, we all have to sit like toads while the sewage piles up around us ever so slowly.

Wish the HBB’ers could take care of this. We’d be through it within 5 years or so. Now, if there’s a bailout, we’ll be lucky to see daylight in 10 years or more.

 
 
 
Comment by jmf
2007-04-19 04:23:57

Salient Features of the U.S. Economy Before the Fed Eased in 1995 vs. Now

keep this report in mind when you hear the bubbleheads pointing to the fed easing campaign in 1995

The Fate of the Greenback—Have We Lost Control of Its Fate?

http://immobilienblasen.blogspot.com/

Comment by aladinsane
2007-04-19 04:38:51

Nice work jmf…

Did anybody happen to catch last night’s moment of zen, on The Daily Show?

It involved the manufacture of one ply green, black and white pieces of toilet paper, in costco quantities…

 
Comment by jmf
2007-04-19 04:40:42

with all the doom and gloom out there it is good to remember how tough the times were 40 years ago… :-)

have added

Monty Python - Four Yorkshiremen

Comment by speedingpullet
2007-04-19 09:16:03

“When I were a nipper, we’d get up BEFORE we went t’bed!”
“We lived in paper BAG in middle t’ROAD!”
“We ‘ad GRAVEL fer breakfast!”

They don’t make ‘em like that any more ;-)

 
 
Comment by aladinsane
2007-04-19 05:00:04

Some people have no bank account, many spent their money on consumer goods

But i’m just a natural born armchair financier doing what I think I should

O’ yeah, doing what I think I should

And I don’t give a damn about a hyper-inflated Dollar, turn em into troy oz’s, as quick as I can

For a wailin’ economy and a situation so bizzare, the only things that I understand, poor bouy, the only things that I understand

When I was a little baby, my momma said “Hey son. Travel the world and learn it’s charms and sing what must be sung, poor boy, Sing what must be sung”

Now that i’m a grown man, i’ve traveled near and far, I’ve learned that a bottle of brandy and a fast internet connection

The only ones who ever care, not so poor boys, the only ones that ever care…

 
 
Comment by wmbz
2007-04-19 04:26:13

This is an end run right into the tax payers pocket book, no surprise though.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aHBQ18suu7Es&refer=us

Comment by flat
2007-04-19 04:31:49

see Ben’s post above
I agree w you=fre,fnm are about a capitalist as the post office

 
 
Comment by BubbleViewer
2007-04-19 04:44:16

A slight bit of honesty from an Albuquerque area realtor on RealtyTimes.com
“Our economy can only support so much on certain price ranges which reflects the current market. Many investors are now finding themselves scrambling trying to sell there 285,000 investments which was worth 340,000 now is probably worth 295,000. They might have made money before the boom ended but now they are making mortgage payments on empty homes. It will be a while before our local econmy catches up to the Albuquerque Metro Area Market. “

Comment by geeah
2007-04-19 04:54:53

yeah but the problem here is the Realtors and stubborn sellers are still thinking that what price a property was bought for is what it is worth.

Comment by packman
2007-04-19 06:22:38

It is actually - by definition. A product’s worth is exactly what someone’s willing to pay for.

However what most people don’t realize is that the worth is only established when the sale is made, not when the price is asked. I may think my house is worth $1 million dollars, but it’s not until someone actually pays me $1 million dollars for it.

When someone buys a house for $500k, that’s what the house is was worth - but only to the seller, not to the buyer. If the seller turns around and tries to sell the house for $500k, and gets no takers, then the house isn’t actually worth $500k to *them*, it was only worth $500k to the person they actually bought it from.

Put to the extreme - I could buy a pack of gum for $300 from neighbor. Is it worth $300? Yes it is - to my neighbor, as the sale is made. It’s not worth $300 to me unless I can turn around and sell it to someone else for $300.

Comment by PDXrenter
2007-04-19 06:44:24

Put to the extreme - I could buy a pack of gum for $300 from neighbor. Is it worth $300? Yes it is - to my neighbor, as the sale is made.

No, it isn’t worth $300 to your neighbor. If it was, he’d just as likely NOT sell it to you. But, anyone with a room temperature IQ would EAGERLY sell it for a ridiculously high (and RARE) offer of $300.

geeah’s point is simple. That’s why they talk about ‘comps.’

(Comments wont nest below this level)
 
 
Comment by Isoldearly
2007-04-19 07:54:52

“…sellers are still thinking that what price a property was bought for is what it is worth”.
You nailed it; questions of the day: What will change that thinking and how long will it take?

 
Comment by Isoldearly
2007-04-19 07:54:52

“…sellers are still thinking that what price a property was bought for is what it is worth”.
You nailed it; questions of the day: What will change that thinking and how long will it take?

Comment by Claire
2007-04-19 11:11:29

Sellers are thinking their property is worth what their neigbor bought/sold theirs for in 2005/06, because some of them bought houses in the 90’s early 2000’s and certainly think their house is worth more than that.

(Comments wont nest below this level)
 
 
 
 
Comment by mrktMaven FL
2007-04-19 05:05:10

BOSTON (MarketWatch) — D.R. Horton Inc. early Thursday said profit in its latest quarter fell 85% from a year earlier as the company booked land-related charges and said it continues to grapple with a challenging market for residential housing.

D.R. Horton said its fiscal second-quarter net income fell to $51.7 million, or 16 cents a share, from $352.8 million, or $1.11 a share a year earlier.

http://www.marketwatch.com/news/story/dr-horton-earnings-down-85/story.aspx?guid=%7BF63249FA%2DB51B%2D41EC%2DA8B7%2D144E55A71BEB%7D&dist=TQP_Mod_mktwN

Comment by luvs_footie
2007-04-19 05:13:22

Oh well their shares should be up nicely today.

Comment by WT Economist
2007-04-19 05:14:12

They still have profits?

Comment by luvs_footie
2007-04-19 05:21:44

And this time next year?

(Comments wont nest below this level)
 
Comment by Neil
2007-04-19 06:42:44

My thoughts exactly, how the heck did they still pull a profit?!?

Either they are cooking the books and will be out fast, or DR Horton has been able to move inventory.

Did anyone look through the details to see if they cash flowed?

Got popcorn?
Neil

(Comments wont nest below this level)
 
Comment by rntrinAZ
2007-04-19 06:58:39

Maybe they’re reporting incentives given out as profit. Kinda like the banks reporting neg-am “payments” as profit.

(Comments wont nest below this level)
 
 
 
Comment by flat
2007-04-19 05:22:50

anyone have a line on the builder lot sales?
tia

 
 
Comment by mrktMaven FL
2007-04-19 05:22:26

Florida abandoning Save Our Homes to save homes.

Comment by aladinsane
2007-04-19 05:27:01

No house left behind?

 
Comment by palmetto
2007-04-19 05:35:32

Got one of those links, mrktMaven? This is huge news. Of course, it has a long way to go. The sales tax has to be voted on by the Floridians. There will be much howling from all the special interests, including the local governments. There will be much propaganda, for and against.

Comment by Gatorfan
2007-04-19 05:52:22

Here’s a link:

http://www.sun-sentinel.com/news/local/southflorida/sfl-0418propertytax,0,5699806.story?track=mostemailedlink

It does have a long way to go. It has to go through the Senate with a 3/5th majority, get signed by Gov. Crist, get approved by the voters in November 2008, and then get through any court challenges.

While I definitely hope it passes (I’m all a FairTax proponent), I’m way too cynical to think that will end up passing through all those hurdles.

Comment by palmetto
2007-04-19 06:25:54

Gatorfan, it will pass, I think. This is about far more than housing. Below is part of my post from last night:

“As far as higher sales taxes go, sales taxes as the chief source of income for governments are the wave of the future. It’s inevitable, because what with all the globalization and immigration, income and property taxes just aren’t practical. Rampant tax evasion is already going on in other countries like Brazil. The Florida House has studied this and realizes that if states don’t get ahead of the curve and get on board with sales tax, the federal govmint will get there first and states will be sucking hind tit, begging for their share. This way, the states that eliminate property and income tax in favor of the sales tax will be in the driver’s seat, taking back state’s rights and exerting more control over their collective destinies, deciding what share the federal govmint gets when it finally bows to the inevitable and eliminates the income tax. This goes far deeper than just appeasing property owners. It has to do with the future of the state and the country, for that matter. It’s about time the federal govmint was decentralized, anyway. The states that get on board with this will be the firstest with the mostest.

Florida’s proposal exempts food, medicine and housing from this tax. The basic necessities are exempt, so the poor won’t suffer. Yes, fuel will take hit. That’s maybe the only area where the poor will see a burden from this. But we’ll cover that with vouchers or something like that.

Yep, there will be a lot of howling before this is over. But provided the law is written such that property taxes are revoked permanently in favor of the sales tax hike, it’ll pass.”

Sales taxes as government revenue are inevitable and there’s really no way to stop it. Not just Florida, but all states will have to go this way, if they are to survive. It is inevitable also that the internet sales will be taxed. And it doesn’t have to be complicated. Sales tax will be imposed at the point of origin and paid to the state in which the business originated, not to where it was delivered. How will they track that? Simple. If you have a business in any state, you will be provided with a program that automatically links to the department of revenue of that state to track your on line selling.

(Comments wont nest below this level)
 
Comment by NoVa Sideliner
2007-04-19 08:42:24

get through any court challenges.

The legal beauty of constitutional amendments, as opposed to straight up laws passed by the legislature, is that court challenges against it are very unlikely to work, though there are some (fools) I have seen who have said things like “This proposed amendment [to the Constitution] is unconstitutional” (!)

The big question is whether the proponents of this change can rivet the public’s attention long enough to get over the other hurdles. That’s a long time span, and it’s hard to keep the public focused on relief that is literally a few years away.

I wish them luck in any case, if for no more reason than that it’s an excellent real-time economic experiment that everyone else in oother states can learn from once it takes effect.

(Comments wont nest below this level)
 
 
 
Comment by Michael Fink
2007-04-19 05:53:03

Also, as much as everyone knows I hate SOH, I truly think that this is a red herring.

The reading I have done says that; if everything goes well, the first “tax relief” that we can see will be 09-10. Anyone want to gander a guess as to why they would want to swap (or partially replace) prop tax with increased sales tax around that time? I will hazard a guess and say that the govt econ people know that we are going to see more massive deprecation, and anything that they do (with prop tax) is going to result in decreased revenues (because of decreased values). So, right about the time the housing market starts swirling around the bowl, we swap prop tax for sales tax? Hmm.. I might have my tin-foil on this morning, but I think that this is just a plan to keep tax revenues high in the face of a busting housing market?

Comment by mrktMaven FL
2007-04-19 06:05:01

One specevestor I know likes the idea of abandoning SOHs and increasing sales taxes. Apart from benefitting him personally, it will benefit out of state owners including other specuvestors. He thinks this measure will rekindle another Florida housing boom and wants to aggresively buy more property now. At the end of the day, if it passes, do you think second home owners including rental property owners will OR should be excluded from the benefit?

Comment by scdave
2007-04-19 08:57:21

mrktMaven FL;….Seems the motivation is twofold…#1..To stem the net migration out of the state of retiree’s and encourage new entrant’s…#2..To stabilize the revenue stream in that you can forward plan on what you will receive….IMO, I can’t imagine they will subsidize a Non-Owner Occ. with this tax benfit…

(Comments wont nest below this level)
Comment by scdave
2007-04-19 09:07:19

Gee’s…Just had a 2nd thought so I am responding to my own post….No state income tax….No Owner Occupied real property tax….Retiree buys a cheap home…Establishes Residency…Pays the home off allowing you to blow-off the high insurance prem…All your passive income now (State) tax free…Interesting….

 
 
 
 
Comment by lurker
2007-04-19 10:16:16

Maybe I’m missing something, but won’t this hurt retail stores/small businesses in FL? Won’t people travel to Alabama or Georgia or use the internet to go shopping without paying the high sales tax? Wouldn’t this be a problem for a state like FL where every other person seems to have their own little store or business?

And won’t this hurt tourism at least a little bit?

I’m probably thinking about this wrong.

Comment by chilidoggg
2007-04-19 11:43:13

This is going to work out just great, Florida. No one’s going to drive to Georgia and Alabama to buy toilet paper and underwear. When you want more sales taxes, you want more… people! Once word gets out to the Canadians and the British and the New Zealanders and the Mexicans, they’ll flock to Florida in droves.

 
 
 
Comment by jstab
Comment by flat
2007-04-19 05:42:47

by the time you breakeven the trees will offer privacy !
so they’re right

Comment by Max
2007-04-19 07:16:48

It looks like one of those artillery shooting ranges.

 
Comment by scdave
2007-04-19 08:59:19

That picture is disturbing….

 
Comment by HelloKitty
2007-04-19 10:29:10

peeping tom paradise

Is it only in CA where there are fences and walls everywhere?

Comment by But_Im_Not_Dead_Yet
2007-04-19 11:24:21

Here in Wisconsin we do not have walls between houses like in CA. Our policemen eat far too many donuts to jump over any walls while chasing criminals….

(Comments wont nest below this level)
 
 
 
 
Comment by flat
2007-04-19 05:33:39

wow - financials anyone ?
The short sale closed on the day of filing for Notice of Trustee Sale in November. The bank, in their deduction schedule, showed the entire period of January through September 2006, as mortgage interest paid, making our write-off 4 times larger than I expected. [Maybe I’m ignorant: is this supposed to happen, and I just didn’t know?] Also, the bank didn’t 1099 us! I talked to the supervisor in the collections department eight weeks ago, and he said our file was noted as “do not issue 1099.” The super interpreted this to mean that the bank must have thought it wasn’t worth it. I was planning on claiming insolvency to the IRS through my job loss, anyway, but they didn’t even give us a 1099!

Comment by chilidoggg
2007-04-19 11:47:43

wow! why don’t you forward this post to the IRS with your name and SSN, and see what their response is.

Comment by Matt_in_TX
2007-04-20 06:46:54

If the bank didn’t write it off, this is revenue neutral to the IRS.

 
 
Comment by Mystry62
2007-04-19 12:31:20

you must be a Dave Ramsey subscriber…. I caught that on the board the other day.

 
 
Comment by mrktMaven FL
2007-04-19 05:36:40

From MiamiHerald:

Florida’s powerful housing industry is hoping state lawmakers’ bid to revise property taxes will inject life into the anemic real estate market.

Realtors, home builders and mortgage bankers contend significant property tax reductions are necessary to jump-start the sluggish market. On Tuesday, they joined a rally in Tallahassee pushing for steep cuts.

They also plan an advertising campaign to press legislators to come up with a fix, and developers from around the state, including the Builders Association of South Florida, plan another demonstration in the state capital next week.

http://www.miamiherald.com/932/story/77766.html

Comment by aladinsane
2007-04-19 05:48:02

i.e.,Tallahassie Lassie?

Well, the marching orders come from Tallahassie

Whoa, they’ve got a low finance chasis, whoa

Maybe looks a little crappy

Whoa, but to me it reeks of not classy, whoa

Yeah, my Tallahassie Lassies , down in F.L.A.

 
Comment by palmetto
2007-04-19 05:51:57

They’ve recognized the futility of trying to get the insurance industry to drop the rates. In fact, the dirty little secret is that those efforts have backfired badly and now Floridians are on the hook for reinsurance, without having gotten anything in exchange. They should never have tinkered with the insurance issue in the first place. Floridians have only themselves to blame for their high insurance rates, really. All the coastal building, plus the lawmakers allowed the insurance companies to set up separate divisions in the state just to cherry pick risk. There’s nothing that can be done as far as insurance goes, so now they concentrate on taxes.

As to coastal building, I wonder how property owners along the west coast of Florida are going to like it when the drilling platforms go up 45 miles off the beaches? Oh, sure, maybe you won’t see the rigs, but you’ll be stepping and swimming in the sludge. The Gulf of Mexico is a soupy sewer to begin with and it is about to get worse. Much worse.

Comment by Neil
2007-04-19 06:47:24

I remember when the California beaches always had tar on them…

Interesting.

But if the rigs are 45 miles out… so be it. That’s not in water Florida can control. And I somehow doubt US drivers are about to give up full size trucks and SUVs… so we need that oil.

Bummer… my folks have a place on the west coast of Florida. Nice area too… not as pretentious as the east coast, but livable.

Soon the price will be back down to where people can buy in. ;)

Neil

 
 
Comment by Michael Fink
2007-04-19 05:57:25

Well, at least one newspaper recognizes this for what it is.

This is a housing market bailout, disguised as a tax cut. Of course the housing market is going to take off again; J6P will see that he can buy more house for the same monthly payment, and the prices will shoot right up to “soak” up the difference between old price, and the MTG payment with prop tax removed.

This is a housing market bailout, not a tax break. Also, see my tin foil hat moment in an earlier post for a more cynical view behind the timing of this bailout.

 
 
Comment by michael f
2007-04-19 05:52:42

Florida is no longer affordable to retirees. I was thinking about retiring to Florida but compared to Maryland (DC subburds) the same $800,000 would cost an additional $10,000 a year in taxes ($6,000 to $16,000) and an additional $4,000 in homeowner insurance ($1,000 to $5,000). I know there are no state income taxes but that savings will still not equal anywhere near the additional costs.

In my opinion the number of retirees moving to Flordia is going to slow to a trickle until the property tax and insurance problem is fixed.

Comment by Neil
2007-04-19 06:51:36

In my opinion the number of retirees moving to Flordia is going to slow to a trickle until the property tax and insurance problem is fixed.

Florida had three primary niches in the global economy. The high end tourism will do ok. But the other two niches, retirees and low cost business relocation… are done. They will stall and by the time they restart other states will have permanently grabbed the business.

Florida is toast beyond measure. Don’t give me wrong, I really like that state. But Florida thrived by being low cost; now Florida is going to discover how extreme the economic cycles are in a high cost state. Cest la vie.

Got popcorn?
Neil

ps
A coworker is relocating to Jacksonville. (Just no hope of buying in California.) I was able to persuade him to lease at first. Ok, he’ll catch a falling knife eventually… But even holding off one year should help their long term finances.

Comment by T_Slim
2007-04-19 08:42:50

Better to catch a falling knife in Jax than in central or south Florida. If you go to rents.com, you’ll see inventory in Orlando, South Florida, and Jax out the ying yang. There are plenty of properties to rent!

 
 
Comment by But_Im_Not_Dead_Yet
2007-04-19 11:28:35

Didn’t (or still does?) Florida have really, really lax personal bankruptcy laws that protected people assets, etc. such that people like OJ Simpson moved to Florida first, THEN declared bankruptcy?

I remember reading about this somewhere. And now, aren’t all those bankruptcy migrators essentially “trapped” in Florida. For example OJ, would he ever be able to relocate out of Florida (to escape prop taxes and insurance)?

 
 
Comment by luvs_footie
2007-04-19 05:57:37

TREASURIES-Bonds add gains after jobless claims data.

NEW YORK, April 19 (Reuters) - U.S. Treasury debt prices rose on Thursday, extending earlier gains, after a higher-than-expected reading on weekly jobless claims hinted at a softer labor market.

The government reported that initial filings for unemployment benefits were 339,000 for the week ended April 14, above the median forecast of 323,000 among economists polled by Reuters.

 
Comment by Hoz
2007-04-19 06:06:14

China government releases 11.1% rate of growth in the first quarter. Sparks volatility by delaying report till Asian market close.
(home run)

US Dollar continues to trade at record lows against the euro and sterling on expectations that US economic growth will continue to slow.

Japanese Yen makes gains on China led stocks. Asian outliers get hammered at the open as Nikkei loses 1.7% on the day.

Japan February tertiary industry index higher by 1.0% m/m, better than expected. Couples with Fukui commentary that consumer spending remains solid in boosting yen strength.

April Japan Tankan manufacturing survey remains unchanged at +28. Non-manufacturing improves 3 points to +26. Lends to speculation that Bank of Japan may raise rates after all.

Swiss April ZEW survey higher than expected, improves to -3.5 compared to consensus estimates of a -20.5 drop.

Canadian March consumer price index rises 0.8% on the monthly comparison, advances 2.3% on the annualized. Survey results lend to rate hike speculation supportive of Canadian dollar strength.

Australian April consumer inflation expectations rise 18.3%. Although bullish, figure remains below the previous month’s +21%.
April 19
Daily Fx

In the timeless words of Gregory Peck: “Thar she blows”

Comment by aladinsane
2007-04-19 06:22:50

April is always the cruelest month…

Comment by Hoz
2007-04-19 09:01:46

When April with his showers sweet with fruit
The drought of March has pierced unto the root
And bathed each vein with liquor that has power
To generate therein and sire the flower;

I like middle English better or even Elizabethan

Men are April when they woo, December when they wed. Maids are May when they are maids, but the sky changes when they are wives.

Comment by Chip
2007-04-19 18:36:24

“…but the sky changes when they are wives.”

No joke. I keep reminding my son of this. Currently, he doesn’t seem to be listening.

(Comments wont nest below this level)
 
 
 
Comment by ronin
2007-04-19 09:31:30

dollar is not a record low against the sterling, just lower than recently

Comment by Hoz
2007-04-19 09:49:23

26 years on the sterling for cash trades , record lows on the futures exchanges.

 
 
 
Comment by Arwen U.
2007-04-19 06:10:44

Some individual houses on the market in Northern VA:

9701 LAFAYETTE AVE, MANASSAS, VA 20109
List Price: $259,900
Prior Sale: $450,000 4/10/2006
-42.2%

39 TURNSTONE CT [Fixtures Removed], STAFFORD, VA 22556
List Price: $536,900
Prior Sale: $910,950.00 9/2/2005
-41.1%

7908 MARTHA WASHINGTON ST, ALEXANDRIA, VA 22309
List Price: $372,750
Prior Sale: $600,000 02/09/2006
Listing Date: 04/16/07
-37.9%

2307 OLD TRAIL DR, RESTON, VA 20191
List Price: $349,900
Prior Sale: $510,000 11/14/2005
Listing Date: 01/11/07
-31.4%

6847 MANDALAY CT
GAINESVILLE, VA 20155
List Price: $514,900
Prior Sale: $740,000 3/14/2006
-30.4%

I’ve noticed that as this “Spring Sting” goes forward, I’m discovering worse numbers. http://novabubblefallout.blogspot.com/

Comment by flatffplan
2007-04-19 06:19:17

the Alexandria deal surpises me , but manasty and homes 20 miles from the beltway should get slaughtered

 
Comment by Robert
2007-04-19 06:52:04

above post excellent reason not to put up a down payment

Comment by GetStucco
2007-04-19 12:38:47

Right — falling prices definitely favor buyers not putting any skin into the game. Good thing the FHA is coming to the rescue now with relaxed downpayment requirements; that way the U.S. taxpayer can be put on the hook for guaranteed payments to the banking industry when unqualified subprime borrowers get foreclosed on houses they cannot afford.

 
 
Comment by flatffplan
2007-04-19 07:21:31

arwen
that alexandria house sale is fraud
nothing down there is worth over 400k
it’s da hood , yo

Comment by zeropointzero
2007-04-19 08:10:32

Yeah - it’s an “Alexandria” address — but it’s in Fairfax County, down near Fort Belvior, and not far off Route 1. Bank-owned and sold very strictly “as is” according to listing. Goofy stuff - wonder how they conned/scammed a $600,000 sale.

Comment by Arwen U.
2007-04-19 08:16:01

wonder how they conned/scammed a $600,000 sale.
Ay! There’s the rub! Very good question. But they did. How many more of these are out there . . .

(Comments wont nest below this level)
Comment by zeropointzero
2007-04-19 09:10:22

I’d love to find out, that’s for sure. Hope you or some other blogger can get more on the fraud beat here in NoVa. AND - for everyone who loves a good fraud caper - this guy is GREAT: http://www.bubbletracking.blogspot.com/

 
 
 
 
Comment by arlingtonva
2007-04-19 07:27:27

Those numbers are huge! And that’s just the listing price. I thought prices were kinda flat. That’s really surprising.

 
Comment by GetStucco
2007-04-19 11:17:02

Good luck to Congress at bailing out 40% market value drops off homes with previous sale prices north of $500K.

 
Comment by ChrisO
2007-04-19 11:39:19

Wow, the DC exurbs are in freefall. This is even faster than I thought it would be. As to that “Alexandria” house, well, you’d have to pay me to live in that nasty part of Fairfax County. Certainly not $400k type of living down there.

 
 
Comment by rntrinAZ
2007-04-19 06:40:05

“Door-to-door effort aims to fend off foreclosures in Arizona”
http://www.azcentral.com/news/articles/0419predatory-loans0419.html

Comment by rms
2007-04-19 07:38:43

“We want homeowners facing foreclosure to know they have options,” said Sophia Tesch, a Mesa ACORN member. “There are many Valley victims of mortgage fraud and predatory lending.”

There’s that victim crap again!

 
Comment by Tortious
2007-04-19 08:43:56

It is all a cover story for protecting the lenders. After all, the banks and Wall Street will not get any sympathy from anyone.

 
 
Comment by flatffplan
2007-04-19 07:23:31

acorn is a commie deal= gov bail is their goal

 
Comment by josesixpack
2007-04-19 07:46:38

Last night on the way home from work, I heard a loan advertisement unlike any that I had heard before.

In the ad, the speaker basically describes the nighmare scenerio of what happens to someone stuck in an adjustable interest only home loan that is resetting to higher payments.

Then, they say that, with housing values off, it may not be possible to refinance, even though rates are at historical lows, due to lack of equity and tightening lending practices.

The solution, buy another property and finance with them using this new special loan. This new loan would be interest only, with 12 months of zero payments. Then, simply rent the property out, and pocket the rent.

Then use this rent for the next twelve months to suppliment income and make the rising payments on their home loan.

I am not making this up. Heard it on AM 1000 in San Diego.

Comment by rms
2007-04-19 07:57:41

This is a good example of another professional industry, Mortgage Banking, bottom feeding for the all mighty dollar. It is very much like the 1-800-lawyers television ads that ask if you or someone you know was injured on the job.

Comment by Arwen U.
2007-04-19 08:42:00

josesixpack,

It *might* work, but it still sounds like delaying the inevitable. Not to mention the risks/work of landlording.

Comment by CA renter
2007-04-20 02:21:49

Won’t work because you’d have to be paying to live somewhere else while renting out “your” new house. I’d assume the rent coming in for those 12 months would be used to pay for you rent (or mortgage) in another home.

Or am I not getting the gist of this????

(Comments wont nest below this level)
Comment by josesixpack
2007-04-20 06:34:15

Ca Renter
This ad was aimed at those who already had a home with a toxic loan and can’t keep up with payments. They were trying to sell the idea that this person could stay in their home, and purchase a home to rent out. With no payments for 12 months, they could use the rent to support the increase in payment for their primary residence.

Arwen, I agree. Kind of lkie an airplane dumping fuel in an attempt to lighten the load to clear a mountain pass.

 
 
 
 
 
Comment by aladinsane
2007-04-19 07:55:53

Cool Clear Lack Of Water…

“San Francisco and Sonoma county residents are requested to reduce water consumption in preparation for the summer after one of the driest winters on record. The Hetch Hetchy reservoir, which supplies San Francisco, is 46 % full, while Sonoma County’s water supply, Lake Mendocino is dangerously low. Lake Mendocino water provides water for 600,000 residents in Sonoma and Marin counties, recreation on the lake and on the Russian River, and also maintains habitat for a threatened species of salmon.”

Connect The Dots.

Comment by aladinsane
Comment by cassiopeia
2007-04-19 11:04:38

Interesting, aladinsane, I haven’t read the book, but the description sure sounds a lot like what Jared Diamond says about the Maya.

Comment by aladinsane
2007-04-19 11:31:19

David Stuart’s writing is similar to Jared Diamond, if you like masterpieces~

(Comments wont nest below this level)
 
 
 
 
Comment by Brad
2007-04-19 08:27:05

we’re looking straight down the barrel of Japan style RE bubble popping deflation, all prices including commodities trending down, the Fed will raise rates to protect the dollar…

Comment by Hoz
2007-04-19 08:54:14

IMHO, not very likely - China is driving the cart and as long as they are paying for coal, steel, copper, cobalt, corn, soybeans and every other tangible commodity there will be no price breaks in commodities. RE is not a commodity and I agree with you that it is dropping and will continue to drop for the next 12 years.

Comment by Blue Skye
2007-04-19 11:58:32

Maybe that cart is ahead of the horse.

 
 
 
Comment by Arizona Slim
2007-04-19 08:30:41

Tucson MSM beginning to get a clue…

http://www.azstarnet.com/business/179075

But a late-year housing market pickup is still predicted. (Don’t ask me why.)

Comment by PDXrenter
2007-04-19 09:56:49

Because, like Gary Watts says, this year’s housing market “IS INVERTED!!!!”

 
 
Comment by michael
Comment by packman
2007-04-19 09:57:22

Is there any way to get past months’ data? I don’t see any links for it. Seems like they’d have that data available though.

Comment by michael
2007-04-19 11:16:18
Comment by michael
2007-04-19 11:20:43
(Comments wont nest below this level)
 
 
 
 
Comment by mad_tiger
2007-04-19 10:46:55

Drapes, chandelier, and chain link fence not included:

http://tinyurl.com/ywnuou

Comment by the_voz
2007-04-19 15:26:50

oh the horror…..that is absolute rubbish.

 
 
Comment by GetStucco
2007-04-19 11:14:48

What is the best antidote for the dire consequences of loose lending standards? Even looser lending standards, of course! I can’t wait to see what kind of smoke and mirrors are used to hide the tab of looser FHA standards to the U.S. taxpayer. My leading guess is that the cost will be buried in the form of a future bailout, as FHA loans are Federally guaranteed, and relaxing downpayment requirements increases the risk of future foreclosures (which will be guaranteed by taxpayers).
——————————————————————————–
FHA reform would help US subprime borrowers-lawmakers
Thu Apr 19, 2007 12:45pm ET140

WASHINGTON, April 19 (Reuters) - Subprime borrowers facing foreclosure could save their homes with help from a federal housing program now facing reform, the program’s administrator and lawmakers said Thursday.

“We are on track to help 60,000 (subprime borrowers) this year. With this reform we can easily help 200,000 more,” said Brian Montgomery, chief of the Federal Housing Administration, a depression-era program that insures low-income home buyers.

Between 1996 and the end of last year, the FHA’s share of new mortgages slipped from 9.1 percent to just 1.8 percent as the subprime mortgage market grew.

Those subprime loans to borrowers with damaged credit were often easier and faster to secure than FHA loans.

On Thursday, lawmakers debated how best to reform the program and get back borrowers now in troubled subprime loans.

“Quickly reforming (FHA) will open up opportunities for people who have been thrown into the subprime market and find themselves in great difficulty now,” said Rep. Maxine Waters, the California Democrat who heads the housing panel on the House Financial Services Committee.

By insuring loans on low-cost homes, the FHA helps borrowers get more affordable mortgage payments. Subprime lenders, on the other hand, charge higher rates for their loans.

Many subprime loans offer low interest rates early in the life of the loan but spike within a few years. That jump in rates has been blamed for increasing mortgage delinquencies and foreclosures.

“Clearly the FHA has a role to play in finding solutions to this country’s rising foreclosure rate,” said Illinois Rep. Judy Biggert who is the top-ranking Republican on the housing panel.

Montgomery said that his agency is weighing whether it can offer new mortgages terms to “delinquent borrowers who, before the reset, had good credit.”

Federal law requires the FHA to calculate the costs of such a change, Montgomery said, and “we are doing that right now.”

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-04-19T164528Z_01_N19317903_RTRIDST_0_USA-SUBPRIME-FHA.XML&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=InvArt-C1-ArticlePage2

 
Comment by Schnooks
2007-04-19 11:17:02

CNN “is the housing market in freefall” Pulte numbers way down… further than they thought.

 
Comment by Mystry62
2007-04-19 13:07:09

OK, I apologize if I missed out on a thread talking about this over the weekend, but I just opened last Sunday’s St. Pete Times and saw an article about Weblo.com As if speculating int he real world wasn’t enough…..

 
Comment by nycjoe
2007-04-19 13:59:41

This nauseating news from brownstoner.com, Brooklyn’s ARMs-race cheerleader.

The same person has owned this brick townhouse at 39 Willow Place in Brooklyn Heights since 1974, which might explain why it’s priced so cheaply. The photos in the listings, however, show that the house is in decent shape, though certainly lacking the jaw-dropping interiors of some houses in the area. Still, $2.5 million for a 25-footer in Brooklyn Heights? Not only that, but the price was dropped from $2,775,000 within ten days of it hitting the market earlier this month. What gives? What’s the catch?
—–
Why so cheap, locals reasoned? Because they wanted a bidding war, and got one, apparently. Posters told of a dozen bids over 3 mil. Wake me up when 2005 ends here in Brooklyn! Every day it’s another milestone shattered. Unfookin-believable.

 
Comment by John Fleming
2007-04-19 14:23:45

Anyone heard of Paladin lately!

http://www.paladinreports.com/

Should we worry?

Comment by Chip
2007-04-19 18:55:57

John - I’ve been wondering about Paladin lately, too. Could be he is swamped with work and family issues — I think he mentioned something about that is a post before he took a break — from which he didn’t return. I’ve seen a number of blogs start up and fail, not due to any lack of good intention by the founder, but because of the huge number of hours of hard work it takes to research and make posts and to moderate responses. I think that Ben’s blog is a significant anomaly — the guy never gets a day off and the quality of his posts and threads never diminishes. Not alone, I’m sure, I find that remarkable — I have a lot of time available and can’t even keep up with reading all the replies to every post, if I want to get anything else done.

 
Comment by Chip
2007-04-19 19:00:01

In my blather I wandered far off your main point — Paladin. For those readers unfamiliar with our Paladin, he posted specifics about some outstanding sleuthing of mortgage fraud that he did, for which he received a ton of encouragement from posters here to press on. He’s the only one I remember reading about who actually contacted authorities, including someone in the FBI, about the frauds — with some decent results. It’s been several months since we’ve heard from him.

Comment by CA renter
2007-04-20 02:35:22

I e-mailed him & will post if he responds…

 
 
 
Comment by Chip
2007-04-19 16:19:00

Just returned from Sarasota — hope this isn’t a repeat of a previous post. From the Atlanta Constitution:

“Homeowners in many parts of Georgia won’t get the promised $100 average rebate from a property tax cut approved by legislators last week, according to state and county officials.

“The Association County Commissioners of Georgia said Tuesday in a letter to Lt. Gov. Casey Cagle and House Speaker Glenn Richardson (R-Hiram) that the tax breaks will range from $101 in rural Hancock County to $51 in suburban Forsyth County.

“State Department of Revenue figures show a much wider range, with residents of Towns County in North Georgia getting an average break of $23.92. Homeowners in unincorporated Greene County, east of Atlanta, would get $35.68. Statewide, the average rebate in unincorporated areas of all 159 counties would amount to $68.31, according to the Revenue Department.

“Residents of cities such as Atlanta and Decatur would likely get a little more than $100 on average because they pay higher taxes.

“Rep. Jeanette Jamieson (D-Toccoa) was surprised to learn how small the rebates will be in many parts of the state. In two of the North Georgia counties she represents, homeowners would get less than $55 on average, according to the Department of Revenue.

“‘What happened to that $100 per homeowner?’ she asked. ‘If they were promised $100 and it turns out to be $68 (statewide), what do you think people will think?’”

ROFL — This politician is worried about a perceived $32 shortfall in a property-tax “break?” Georgia’s taxes are not as high as Florida’s, but they are about half as much and that’s a lot, IMO. A half-tank of gasoline isn’t going to buy many votes, but it sure should generate a lot of snickering and eye-rolling.

 
Comment by Sophia Tesch
2007-05-13 12:25:24

I have read some of the comments here. I appreciate the open discussion about the foreclosure and predatory lending issue. In answer to the comment about ACORN being communist, I respectfully disagree. The reason I joined ACORN is that complaining to my friends and co-workers about how out of hand the government and large corporations, especially in certain industries, has gotten did nothing. Everyone is “waiting for the world to change” as the song says. ACORN actually has the guts to be loud and say something about it, to take on the money and the power players. That may appear to some as stepping on toes, yet I would say that some toes need to be stepped on for the greater good. The everyday citizen needs to know they have a voice and a power to do something about what is going on. Most people feel there is an imbalance in the economic and power structure. The people have been forgotten by policymakers in the decision-making process, left behind in the quest of “the haves and the have mores” as President Bush named them. ACORN expresses and encourages democracy in its purist form. I encourage you to learn more about it before casting judgments.

As for the victim mentality that is easy to throw out there. Not everyone is a specialist in everything. I would venture to say that is impossible for most. The people we have met because of this issue did not want more, they just wanted a fair deal. Therefore, people put their trust in professionals. In this case it was misplaced. There was a time when ethics were such that someone could do that, there were basic ethical standards that one could rely on. That is no longer the case. That is why ACORN called attention to this situation. I am not saying that either side of this issue is “perfect” ACORN is working to offer financial education to our members and communities so that people can avoid these tragedies. In closing, there has been some outright fraud going on as the blogger from San Diego mentioned. The bubble has burst on these loans and this type of unregulated lender. Although the correction process is painful, America as a whole will be better off for it when the dust settles.

 
Name (required)
E-mail (required - never shown publicly)
URI
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Trackback responses to this post