Bits Bucket And Craigslist Finds For July 21, 2007
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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county budgets- they can chop heads big time, but it’s going to be a big event. May make taxpayers wake up to federal waste…….
We had a story on the news in New York this week. The city has been paying $4,000.00 per month per vehicle to rent Ford Explorers for city employees. They’ve been spending $1.6 million a year to lease 125 vehicle’s. Just another example why taxes are so high here.
The home lenders took fraud lessons from the auto folks…
The city has been paying $4,000.00 per month per vehicle to rent Ford Explorers for city employees.
Tip of the iceburg.
The public employee prima donna parasites are worthy of nothing more than distain.
Only thing that matter to these leeches are the number of days left before they retire and how much is their pension going to be.
I never heard a gov worker speak of a goal or accomplishment- always pension and days off- theRE bust will bring them into the light
Look, state employees always get paid less than market rate because they take part of their compensation in the form of pensions and healthcare benefits. It was part of the bargain when they sought and accepted that job.
As long as the best and the brightest think they need $200,000 a year to be successful, you’re going to have unimaginative, under-educated drones in government.
I work a government job and I am a hard worker. I’m so good at what I do that I’ve caused some serious waves where I work (not all of them good). I will be funding my own retirement, and I can live well under my salary (the same salary my coworkers bitch about). If we paid higher wages we could attract better employees who are now working in private industry, but our fiduciary responsibility to the taxpayers leads us to keep the wage as low as it can go. (The union here is declawed.)
I don’t understand why the self-employed whine so much about govt employees. If you want that kind of job security, go for it. I know you won’t, because you’re making more money being self-employed. So quicher whining.
I don’t understand why the self-employed whine so much about govt employees. If you want that kind of job security, go for it. I know you won’t, because you’re making more money being self-employed. So quicher whining.
I think it depends on what government product you are talking about. If the self employed could choose from a menu of what government services they would like to purchase I would think it would be a rather tiny menu. What are the services that you think government can do better than the private sector?
Most government money goes to popular programs that are so basic that people forget about them. Our sea and air ports, road networks, water supplies, and sewage treatment are all examples of services to the public that private industries have repeatedly tried to provide and failed. The reasons should be obvious. Roads require expensive rights of way and constant care as do ports. Water is always necessary and sewage is always generated. Having municipal services available and functioning is a great aid to society. Getting on the road is not like going to the grocery store, and to a huge degree that people forget it is the road network that makes the grocery store and other modern retail options possible.
Even with the war something like 90% of the country got suckered into it. It was a set up and much more expensive than at first revealed. Did Haliburton really save us money? Will contracting out for the next war help?
Trying to bring this back to housing, there are basic issues that relate to the bubble. How do we decide how government should use tax options such as Land Value Taxation and tax appraisal schemes like CA Prop 13. How should lending be regulated? Should be continue to allow restrictive suburban zoning where densities have increased and greenbelts have put pressure on development? None of these critical issues necessarily results in or requires more or less government.
I have to agree with gator and KC. We’re not all parasites. Some of us do kick butt and blow whistles. Hell now they send me into troubled depts to look for waste and clean it up. You libertarian types should be f@cking shaking my hand >; )
Sure I get paid crap but what’s a idealist like me to do? It’s the people I know who are self employed that seem to be soulessly searching for their next big deal - no thanks. Been there (film industy, software business analyst), done that
True libertarians recognize those services that government can and should provide and those that are pure waste. That said, $4K per Explorer ought to offend everyone.
I recently asked a state government employee if his state managed pension contained any of these risky mortgages investments. He said it didn’t matter because the Kansas taxpayers are on the hook if the pension goes south.
Until the taxpayers are sick of eating dog food in retirement while the state pensioners eat fillet mignon. What the gov’t giveth the gov’t can take away with but a single vote…
I’m with RMB with this. With public pensions massively underfunded in states all across the country, the idea that taxpayers will simply be squeezed to kick up the cash required to keep retired public employees in the promised pensions while current public service needs go unfunded is delusional. Laws will be changed and promises will not be kept. For one reason…there isn’t the money to pay. See Comptroller Walker’s speeches for further info. It’s not going to be pretty when financial reality sinks in. And those promised health benefits in retirement…if corporations can repudiate retirement promises, watch states and counties do the same.Doesn’t matter what the laws currently state…when the money isn’t there, it ain’t there.
In many cases, retirement benefits are gauranteed by the state constitution or city charter. So its not so easy to repudiate these things.
Having actually worked for the great state of CA, let me tell you what it’s really like.
Pay = sucks.
Pension = any chance they got, the CA goverment underfunded the pension plan, so they had more money to use elsewhere. We had a shitty contract which allowed this, if they could show the pension was “fullyfunded”. I took my money and ran - which means the portion put in by the goverment, plus interest earned by my money, stayed in the system, and I will never see it.
“All those in favor of amending the constitution?”
“Aye!”
“Motion passed.”
I hate those Govt. employees, especially the ones in IRAQ, they come back missing a leg and expect me to foot the bill
doug-home,
You might want to append a little “[sarcasm off"] tag to those kind of statements, JIC somebody misses your point.
“The answer to any question starting, ‘Why don’t they–’ is almost always, ‘Money.’”
Robert A. Heinlein
“Beware of strong drink, it may cause you to shoot at tax collectors … and miss.”
Robert Heinlein
My favorite RAH quote. Right up there with “specialization is for insects” and “I want to see whether that’s a head he has on his shoulders, or just a place to hang his ears.”
I grew up reading him.
Ever read “The Roads Must Roll”? I’d say it’s a pretty good case against public unions.
$4,000 a month to lease a Ford Explorer? I would guess that about a quarter of that is being kicked back to the city official(s) who approved the lease. Just my opinion.
Nah! The lease went through his BIL’s company.
KCMO new mayor Mr. Funkhauser declined to be driven in a leased Lincoln Town Car with 2 police officers. The lease 2 year lease that was entered into 2 days before he was sworn in by the previous mayor Kay Barnes cost the taxpayers $160,000 a year. The “Funk” has declined to use the Town Car and drives his early 1990s’ model Toyota Corrolla. The liberal media is all over this down to earth guy. There is hope.
KCMO new mayor refuses to drive a new Lincoln Town Car that costs $160,000 per year to operate. Mr. Funkhauser drives his early 1990s Toyota Corrolla instead. He has taken a lot of heat for this. He is a down to earth guy.
Jerry Brown did this too. Also, he never wanted the governor’s mansion and instead rented a small condo dow the street from the capitol. Yet people gave him crap for it too. We vote for people to reduce spending and then when they do, we complain. I never understood that.
Those numbers don’t add up.
125 x 12 x $4000 = $6,000,000.
How much is an Explorer? $22k? Maybe it’s $400 per month, that would be $600,000 per year. So basically two typo’s…
We get the same thype of thing in school districts, which are very successful in raising bonds and taxes to support thier cause. A few years back an Irvine, CA teacher I met was complaining about how they lacked funds for simple classroom supplies. A was incredulous, asking how a school district in one of the wealthiest cities could have these kinds of trouble. She responded they have plenty of money, but the problem was that they had a 1 - 1 ratio between high paid administrators in the district and teachers… Hopefully, the coming fallout will force massive restructuring on all kinds of waste and fraud in government, but If I recall what happened in OC during the bankruptcy, they will only cut services that folks need and want, to force higher taxes.
The amount they pay school administrators is a scandal. The amount of administrators (as compared to, say, aides for disabled students or special needs teachers) is a scandal.
CEO pay is also a scandal. Admin pay shot up as a result of the increasing disparity of pay in our society, only admins in schools are actually paid LESS than their counterparts in the corporate world. The fact that they’re in government has actually kept it down a bit.
This is the result of dropping the top marginal tax rate so far. I’m sorry, but it’s true.
So you do not think that a school superintendent who oversees 600 employees and a multimillion budget is not worth 150k a year? The typical CEO with the same kind of responsibilities will make twice that and even more with stock options. Just the other day I saw on Yahoo finance a CEO pocket 24 million from stock options. Education is the most important job in our society and it is always underfunded. I spend hundreds of dollars a year, out of my own pocket, to get supplies for my students.
You’ve answered your own question. I agree that ONE competent administrator that makes 6 figures is needed for the average school district.
The problem is when there is one six figure administrator for each teacher. The correct ratio is at least 8 to 1.
What school has those figures? I agree that 8:1 is a huge problem. You need to get active in your community and get rid of some of the dead wood at the school district.
LAUSD reportedly can fill the Rose Bowl with six-figure administrators.
My city just built a $50,000.00 roof over a picnic table in a park. Consultant contracts are known as taking a ride on the gravy train.
Musta been a cheap consultant. Usually they make out with at least 150.
I’ll tell you one thing: it’s almost always cheaper to have staff do a project than hiring an outside firm. That privitization nonsense in the 1980’s was bogus. However, it can cost more to do inside jobs if the inside people are incompetent.
Our city spent over 1 million dollars for a visitor center. The parking lot is almost always empty. Government on all levels are always creating more government. That is why the employment numbers each month shows a large percentage of jobs that are being created in this county are government jobs. This trend cannot be sustained. Too many people are in the wagon. Socialism at its best.
Everyone with some free time should go and listen to the 1st part of the 3rd hour with Jim Puplava of Financial Sense Newshour.
http://www.financialsense.com/fsn/main.html
He plays excerpts from Ben Bernanke’s congressional hearings. Ron Paul is asking some questions as well, he “gets it”. Very enlightening for those folks who may need a bit of a refresher on inflation and it’s causes, as well as other macro economic issues.
I like his financial discourse thus far. It’s just the rest of his agenda I can’t handle.
You mean the part about reducing government roles to those defined within the constitution? If you’ve followed RP at all, you’ll also note that he’s not talking about any level of government below federal. When he says “eliminate the Department of Education” (for example) he only means getting the Feds off the state’s back; he’s not saying the state shouldn’t provide a public education.
http://tinyurl.com/2zvmvz
St. Pete Times: Tampa Bay Area Dr. kills himself, housing market likely at fault:
“He purchased a 2,700-square-foot home in Valrico for $208,300 in 2000. Amid the booming real estate market of 2005, he bought two more parcels in a gated, 32-home Brandon subdivision called the Vineyard and paid more than $1-million to build two houses on Vintage Way.
Then the market slowed.
“I knew he was having some financial difficulties,” said Steve Bristol, a real estate agent who sold Francis and his wife the Valrico home where they lived for seven years.
Francis’ wife, Rosanna, could not be reached by the Times.
Recently, Bristol said, the couple moved to one of the Vineyard homes. They put the Valrico house up for sale, then took it off the market and decided to refinance, Bristol said. Francis was found in the second Vineyard home, at 510 Vintage Way.
Records show that over the past six years, he took out nearly $2-million in mortgages on the three homes.”
http://tinyurl.com/2tbhq5
“Shortly after 8 a.m. on July 9, 38-year-old Michael Silver Jr. of Hoboken was found dead in his apartment on Garden Street with a single gunshot wound to the head. Although no suicide note was recovered from the scene, medical examiners determined it to be a suicide shortly after the Hoboken Police detectives and the Hudson County Homicide Squad arrived.
Silver, a real estate associate with Hoboken’s River Street Realty, was single, without children, and appeared to have had no roommates, according to Hudson County Prosecutor Edward DeFazio.”
Shades of 1929.
This is the really sad part of the housing bubble.
“This is the really sad part of the housing bubble.”
No, it’s called culling the heard of the weak gene pool.
You first, mofo. It’s spelled “herd.”
unnecessary. delighting in others misfortunes means they will delight in yours.
Yes, and contrast this with yesterdays thread where there was no shame and people were quick to file BK.
The money that was made truly came at others’ expense. We have to learn to consider the impact of our money-making activities have upon others. Don’t RE people worry about karma at all? Don’t people realize that what goes around comes around?
This blog has bashed realtors a lot, and it seems for good reasons. However, back in 1989 when my then-husband and I bought our place, we stumbled across an excellent realtor, Larry Harley. Larry had studied sociology in college. He was one of those true Christians, a do-gooder good guy. He told us he wanted to make a good living, but he wanted to help people, too. Since everyone needs housing, he figured being a realtor seemed like a good way to reach both objectives.
My husband and I had never bought a home before. Larry helped us every step of the way. When all the homes we looked at were too expensive, he found good homes that were more in our price range. He examined all the loan papers we signed, and he was there for every meeting we had to have with loan officers, title personnel, etc. He was hard-working, decent, and fun. I didn’t realize how lucky we were to have had such a good realtor until I started reading about recent trends in real estate.
Has anyone else met a decent realtor lately?
Yes, I found one, for rentals and she has been great.
I had a great one in Terre Haute, Indiana. Very honest and helpful and we stayed friends long after I bought and sold the house. Wish she was in San Diego because I still haven’t found one I feel I can trust.
Karma? What’s that? The operative phrases in today’s society are, “Do unto others before they do unto you,” and, “No good deed goes unpunished.”
/sarcasm
“Self-destruction is the effect of cowardice, in the highest extreme.”
Daniel Defoe
Wow, you just described my life when I was in college.
“‘I knew he was having some financial difficulties,’ said Steve Bristol, a real estate agent who sold Francis and his wife the Valrico home where they lived for seven years.”
What’s the difference between this RE puke and a whore who sleeps with her client even though she knows it will give him a virulent, drug resistant STD?
Not that you have any experience with that or anything…
So you think it’s okey-dokey for someone to be pushing RE to another person they know is in financial trouble? If so, you appear to be the one with the experience.
I think Beachguy was making a subtle joke about you being with a hooker with a virulent STD. I could be wrong but I think he was just having some fun.
Oh sorry. A little tired this morning…
This blog cracks me up. We get offended when we think somebody implies that we have been involved in shady real estate dealings but take no offense at all when somebody implies when we have been sleeping with disease-ridden hookers.
At least we have our priorities straight.
hahaha thats funny.
LOL, NYCityBoy. Kind of like your comment the other day about water vs. liquor.
LOL @ Sunset
Both the RE buyer and the john are aware of the risks they are running…they’re both adults. It’s the john’s wife or girlfriend who is the possible victim here.
pension bagholders
housing market likely at fault:
It’s all “W”’s fault.
It’s Saturday. Why are you trolling? Chill.
One way or another there will most likely be many more similar stories to come. Wait till they discover they have judgments and tax liens, and cannot get a job without having almost all of their pay docked.
We had a family in my neighborhood when I was growing up that spent like there was no tomorrow. They always had the best of everything. We envied them so much. The rest of the neighborhood was thrifty and cautious. Needless to say that family went bankrupt at least twice. The father suffered at least one complete breakdown. And now they have nothing for retirement. Bad money habits are so destructive but god forbid CNBC and other shills really talk about the dark side of out of control consumerama.
You got that right. We are bombarded with messages 24/7 telling us to live for the moment, you can have it all, you deserve it, make your dreams come true (we all deserve to have our dreams come true, don’t we?).
The media played a huge role in the bubble.
Your post sounds like an advertisement for a credit card, or sex pills!
If erection or spending lasts more than four hours see a doctor immediately.
“but god forbid CNBC and other shills really talk about the dark side of out of control consumerama. ”
That reminds me of a conversation Glenn Beck had with a Wall Street type the other evening on his show.
The Wall Streeter explained how the top 40% of Americans were holding up the economy with their spending, and that is how the economy could keep chugging along despite some obvious weaknesses being experienced in the rungs below the top 40%. Glenn Beck shouted, “But do we want to live in a country like that?” The Wall Streeter exclaimed with a huge smile, But you do live in a country like that!” and that’s why Wall Street doesn’t have to worry about what’s going on with the little guy. As long as the top 40% keep spending, we’re going to be fine. (Paraphrased, sorry couldn’t find link)
I think I will walk over to Wall Street and break a few windows today.
That was my reaction. Luckily the 5 hour drive helps me keep my composure.
I’m wondering when the backlash will start against these types. Not violence per se but a galvanized attempt to reel these people in.
Here, take this big slab of petrified wood from Utah and break some for me, too.
If history is any guide, it will come, but it will not come until the pain is very deep.
Then, Wall Street, look out.
Commercial RE- 18 month lag
how’s your commercial market doing ?
BTW my lag time on a post is 20-30 minutes-is that par?
testing post lag time…7:53 by my watch as I type.
posted comment instantly. Ben must hate you.
Not at all. Can you explain how software works? I can’t really lift the hood and observe the functions.
Ben, the engine ain’t under the hood anymore! LOL.
Ben, you have to manually approve some posts? That is what I always figured was going on. Either that, or perhaps it’s a anti-spam feature in wordpress.
It doesn’t have anything to do delays like those seen in e-mail transactions, as http is generally instant or broken.
I posted a new comment and the screen went white and said it looked as though I had already posted that comment before. I then rewrote the post and low and behold both posts were there. Go figure.
Sometimes it’s delayed because of a “bad word”, sometimes it’s a link, sometimes it’s just cranky. NBD. Patience!
This might help explain post delays: In complex networks constructed of multiple routing and switching nodes, like the ARPANET and the modern Internet, a series of packets sent from one host computer to another may follow different routes to reach the same destination. This technology is called packet switching.
http://en.wikipedia.org/wiki/Packets
Nope. Most travel time is measured in milliseconds.
Commercial RE- 18 month lag
how’s your commercial market doing ?
There is a project near my rental in Valencia, CA, it is on the corner of McBean Pkwy & Newhall Ranch Rd., big project that is going nowhere. After a year they have one small structure framed, nothing else. Would not be surprised to see locks on the gates soon. Most of commericial retail is in the final stage and not much else starting construction.
http://tinyurl.com/2j9ly6
Town for sale on eBay after owner kills himself:
“Daniel La Paille, a Los Angeles entertainment manager, bought Bridgeville in August 2006 for $1.25 million from Orange County banker Bruce Krall.
In November, La Paille shot himself, according to the Los Angeles County coroner.”
http://tinyurl.com/2lgj7p
Man is killed in a standoff with deputies:
Two SWAT team members fired, killing the former Sarasota firefighter and local real estate broker.
He recently held licenses as a real estate salesman and mortgage broker, state records showed.
What a maroon. Sarasota isn’t volunteer, correct? He should have been set for life.
Instead he probably drank the kool-aid and “invested” in multiple properties and found his decent retirement turn into a giant evil debt.
It’s starting to sound a lot like the Dave Ramsey show in here … the “I’m in RE trouble” calls have picked up a LOT in the last few months.
This is sad. As bad as bankruptcy is, it is better than suicide.
Not in Japan.
Only if your creditors can’t go after your heirs.
Otherwise, honorable debtor is going to have to slave away for the sake of the family.
As the SALARIIMAN says, “Gaman shite hou ga ii desu.” (”It’s best to endure it.”)
Incidently, this philosophy is extended to financial policy. Instead of letting the banks die for their bad loans, the whole country was forced to gaman-suru through a decade-long deflation.
Once these folks figure out that turning in the keys won’t necessarily get them off the hook for the 6&7 figure loans they took out when they rolled the dice on RE, suicide will start to look like an attractive option to many of them. Servicing the bums down by the wharf in order to come up with rent money can’t be considered an attractive lifestyle upgrade from driving around looking like a hotsh*t, successful investment guru. I don’t care how they rephrase the job description.
When Russia collapsed they noticed an enormous surge in suicide by men, 40 years and older who had been successful under the previous system. It seems that men have a extremely difficult time dealing with a loss of status at that age and see suicide as a better alternative to living with the shame of failure. I wouldn’t be surprised to see a surge in suicides (and murder/suicides, how could the wife and kids ever live without them?) in otherwise stable people who go from riding high to losing everything in this bust.
I sense a bunch of new Law & Order plots are about to be written. There was one episode years ago where they labelled those types of guys “family annihilators”.
Yeah… remember the day traders?
Women (and gay guys): stay away from Mr. Get Rich Quick. After he Gets Broke Quick he may prefer to kill you than face you…
otherwise stable people
Funny how financial stability gets confused w/mental stability. Once the facade is removed however…..
Yeah, when you’re poor and mentally ill, you’re “crazy” and get locked up…when you’re rich and mentally ill, you’re “eccentric” and “free thinking” and everyone wants to be like you.
Everybody loves a person with money…
interesting comments. The remedy seems to be humility, simple living, and blending into the woodwork, as opposed to being a peacock. I’ve been doing that for years. Nice thing about this is no one preys on you. For me, a $40 per month health club membership and swimming ten miles per week is far cheaper and pays off more than to look cool in a McMansion with a boat in the side driveway.
Me, too, Bill. I’ve been very humble for years, too. LOL
Nice post Bill in PHX. That’s great advice - and “laying low” might just save one’s life if this really goes south - especially in the big cities.
Thanks. I don’t mean you have to live in a low class area to live a humble, simple, nonmaterialistic life. I live in a clean area in a quiet apartment complex. I do not like ghetto blasters and the like. I once lived among college students and had enough of their drunkenness and rap “music” (ahem), at 1:00 a.m. I just do not want to appear that I have more than my neighboring renters. I really don’t have more. The major material objects I have are gold, silver, and platinum bullion safely hidden away (not on my premises). Other than that, some furniture, two bicycles and a 4 year old Toyota economy car. And paper savings bonds (also tucked away not on my premises). Everything else is electronic - mutual funds, electronic treasuries, electronic savings bonds…I would not trade this portability lifestyle for becoming a bullseye target by gold diggers, burglars, and other individuals whose purpose is to separate you from your wealth.
Bill,
I enjoy your posts. If I’m not being too nosey, would you share with us your current asset allocations? Just the percentages. Thanks.
Thanks! I came across this of late. If you are still checking, 6% precious metals, 25% government securities / money market funds, and the rest in equities. My goal is to get to 10% precious metals though. My real estate holdings are very insignificant, less than 2% since I have a timeshare.
All over this morning are stories about PE/Debt buyouts totally falling out of bed. Chrysler, Boots in the UK. Also the junk bond market fell apart yesterday.
Don’t worry. According to my co-workers that will have no impact on housing. Stupid lending and rising home prices are not connected in any sort of way. That should ease your mind.
NYCB, I’m sure your co-workers are an unending source of amusement, no?
Unemployments rapid rise in Sarasota, SW Florida.
http://heraldtribune.com/article/20070721/BUSINESS/707210432
Wow, those are significant increases.
Fed’s Poole says subprime investors deserved to lose money… http://tinyurl.com/ywvvah
He’s still yammering about containment, but it’s a start.
“The punishment has been meted out to those who have done misdeeds and made bad judgments,” Poole told reporters in St. Louis after a speech on the market for mortgages to borrowers with sketchy or weak credit histories.
This is total bull$hit. Those Wall Street jerks got huge bonuses, and continue to get huge bonuses, based upon the games that they played. That is the only psychological factor keeping the market up in Jersey, Brooklyn, Westchester, Queens, etc. When they have to give that money back, and do hard time, then they will have paid the price. Until then, this goofy looking ba$tard should shut his piehole.
Well, I liked the aprt where he said “‘It is terribly important that we do not have bailouts,’ Poole told reporters. ‘If you make some bad bets, you take these losses. That is what investors in these hedge funds should be aware of.’”
I assume you agree with this statement…?
Pure and utter bull#hit. You know that it is you and I that will pay for the gambles these hedge funds have taken. They will talk against bailouts on one side of their face and whisper “relief” to the big boys from the other side. I don’t trust these guys any further than I can throw Rosie O’Donnell.
I can see you like Poole, et al. even less than I do…
There’s the rub. There is a big op-ed piece in this morning’s WSJ by Carnegie Mellon University economist Allan H. Meltzer entitled “Let ‘Em Fail.” The basic point is that the best way to stamp out excessive hedge fund risk taking is to let them crash and burn without government intervention.
Now if only the PPT could be brought on board with this philosophy. The problem is that with all the handwringing over systemic risk, the PPT offers de facto “too-big-to-fail” insurance, which encourages rather than reigns in excessive risk taking. I basically agree with Meltzer, but I am not at all confident that our top economic policymakers are on board.
Of the Fed members, Mr. Poole had been the only one to publicly express concern about the Federal Reserve Policies of easier moneys. He voted against the drop in rates, he is still voting to raise rates. His concern has been inflation and there are numerous speeches reflecting such concern.
“First, inflation pressures may continue to intensify, particularly for prices of non-energy and non-food items. The FOMC will have to sort out whether the data indicate that more rapid price increases are a temporary blip on an otherwise steady long-term outlook or an indication of a more fundamental inflation problem. Second, the FOMC will be following incoming data closely to determine whether the recent moderation in economic growth is likely to persist into the summer and beyond. Finally, at what point will we perceive that FOMC policy actions have been sufficient to maintain long-run price-stability?” May 11, 2005
and
“Policy bias exists because turning points in economic activity–peaks and troughs of business cycles–are infrequent. Changes in economic activity as measured by output and employment are highly persistent.” Oct 14, 2005
I can understand not liking him because of The Federal Reserve’s belief in “old school” economics as taught at the major schools and universities in the US. The Federal Reserve is reactive as opposed to proactive. He commented on the housing boom in 2001 “Should the central bank act to temper a housing boom” Sept 5, 2001. Federal Reserve policy is to use asset prices to determine monetary policy. There is a lot of evidence to suggest that Mr. Poole may be the only Federal Reserve member to have expressed discontent with the Fed’s policies.
and I am throwing this one in for GS and PPT followers.
“…Clearly, it would be a mistake for the central bank to attempt to roll back a market move that was in fact fully justified. That is a very good reason for the central bank not to target the market directly. The central bank should leave this kind of judgment to market mechanisms. …” Sept 5, 2001
What does fully justified mean? This suggests that he is not happy with PPT (if it is used…which I am not convinced).
“Mr. Poole had been the only one to publicly express concern about the Federal Reserve Policies of easier moneys.”
Perhaps Mr. Poole feels a greater sense of stewardship towards McChesney-Martin’s legacy than does Mr. Bernanke.
“The job of the Federal Reserve is to take away the punch bowl just when the party starts getting interesting,” referring to the need to raise interest rates when the economy is at its most active.
http://en.wikipedia.org/wiki/William_McChesney_Martin,_Jr.
It’d be nice to see them step up and do something meaningful, like say de-list FNMA!
exactly - it’s pretty stomach-turning to see citi and chase and the other bankers ‘punished’ with double digit earnings/profits of late.
“Capitalism without failure is like religion without sin.”
That is a great article.
“I find it odd that apparently sophisticated investors in non-prime mortgage-backed securities now claim surprise that many non-prime adjustable-rate mortgage borrowers are facing payment shock because of the increase in short-term interest rates,” Poole said. “Mortgage originators persuaded many relatively unsophisticated borrowers to take out these mortgages.”
Finally someone at the fed calls a spade a spade.
Went for a 4 mile walk yesterday and found: 1) a lot of houses for sale last year have been pulled off the market 2) a lot of houses that never put up a forsale sign were empty, brown yards with tall weeds or someone cleaning the junk out 3) houses that have been forsale 8-12 months ago still had forsale signs on them.
Parade Magazine pushing real estate in the D.C area…
Can you afford a second home?
“Owning just one home isn’t enough for a growing number of families. From rustic cabins to beachfront manses, second homes accounted for 36% of all residential property sold in the U.S. last year, according to the National Association of Realtors.”
“Fueling the market are recreation-minded baby boomers, awash in savings or equity from their primary homes. Some are buying with an eye toward retirement or as an investment, while others want a vacation getaway to enjoy now and pass on to their children later.”
http://www.parade.com/articles/editions/2007/edition_07-15-2007/Second_Homes
Apologies if already posted…
They stole that from the washington post who published that in their washington post magazine last Saturday.
“Fueling the market are recreation-minded baby boomers, awash in savings or equity from their primary homes. ”
I guess all 3 of those are looking at second homes. All the boomers I work with are so colossally unprepared for retirement that it saddens me. But here again we have the “boomers to the rescue argument”. Ludicrous!
Boomers are unprepared because many of them plan to keep working after they reach 65. What they don’t realize is that most of them will, as they get older, be forced out of their career jobs. And at their advanced age they will only be considered for menial, hourly-pay jobs, such as a call center worker or Wal-Mart greeter.
It is perhaps the greatest sign of this society’s preoccupation with self importance that so many think it will be THEIR choice to work past 65. Of course certain professionals of advanced age and valuable experience will always be in demand - but most of the folks alluded to here are just worker drones - and there’s a new class of them every year.
Considering the negative savings rate in this country, I wonder what the term ‘awash’ means nowadays?
Check out the comment section in that shill rag.
Last year my daughter couldn’t get a summer job. This year she walked in the door and was hired and then two weeks later another business called her and asked if she could go to work. I have seen lots of ‘now hiring’ signs all over Salinas, Monterey, Pacific Grove and Carmel. My daughter is a pharm. tech. so she’s not minimum wage and it will her pay her way through college.
These job openings can only be the result of people moving from this high cost of living area. I am also seeing a lot more commercial RE going empty and fewer high end businesses.
That is interesting my company has just hired about half a dozen new people and may be looking for more. Projects appear to be lining up for the next year or so. What happens after who knows, but there does seem to be a small mini boom going in tech right now.
I’m in the east Bay Area, and I notice the same thing. Now Hiring signs ALL over the place, and many empty commercial spaces.
Hey, I’m in Orange County CA, and I’ve noticed quite an increase in commercial real estate going empty and for sale/lease. Cities such as Santa Ana, Tustin, and especially Irvine. For a local, try driving around the area of Tustin/Irvine near Jamboree and Red Hill north of the Orange County Airport. Empty commercial space all over the place! Easily in some areas it’s 30-50% vacant, in formerly occupied buildings. Of course, this is the area was where New Century was located, but c’mon, New Century didn’t have THAT many buildings!
Tons of retail space is still being built, too. Some of it looks to me like a failure in the making, such as the large furniture complex at the 405 and Harbor starring Wickes. That’s just MHO. They aren’t fully opened yet, but some stores have been open since late last year, and I see almost no traffic into the place.
Maybe everyone’s doing the Curcuit City thing - fire the better paid and hire the cheaper.
Maybe it’s because the illegals are going home? (doubtful)
I think it may be true that unemployment *IS* low, nationally.
However, inflation in food and fuel has been atrocious, the dollar is (rationally) sinking, the gubmint is awash in debt, as is the consumer, and the housing market continues to rot from the foundation.
I guess the ol’ econ prof was wrong: we can have inflation without rising wages, and low employment in a recession.
By the number of vehicles by the side of the road here in Gainesville, we ARE in a recession. And yet, according to MONEY, our unemployment rate is 2.5%. This seems about right (although many who can work don’t around here).
Sign of the credit crunch: saw an ad on TV for “Rent-A-Rim”, promising a discounted rate: 22″ rims for the price of 20″’s. Wait, so you RENT the f—ing rims?! No wonder Mr. Rim Job looks like such a poser: he is one!
This place never advertised before, but apparently they’re hurting for customers now. I heard from a mechanic that the guys with blinged out cars do everything on credit; now I have proof. Gotta have them rims to-day! Be-fore payday!
The hiring anecdotes posted here jibe with the upward trend in Federal income tax receipts. The cloud on the horizon is whether or not the Florida malaise will spread. It’s basically a recession down there.
“I guess the ol’ econ prof was wrong: we can have inflation without rising wages, and low employment in a recession.”
Your econ professor was right, but you have to think globally these days. Wages ARE increasing and employment IS increasing, just not in this tiny corner of the world.
Chindian wages up 20%
Commodities up 10%
US wages up 0%
Result: Chindians can buy more stuff. US workers can buy less stuff.
Look for this trend to continue until a factory worker in Des Moines has exactly the same standard of living as a factory worker in Shanghai or Bangalore.
My daughter is a pharm. tech. so she’s not minimum wage and it will her pay her way through college.
A pharm. tech? What is that? I worked in my dads pharmacy when I was a kid for 15 years, I was called a clerk.
A week or so ago I posted along the lines of “Has anyone else noticed how some commentators are starting to say non-prime instead of subprime when referring to bad loans?”
Fast forward to yesterday’s Wall St thread and lo and behold: here’s Ben quoting Mr Poole (St Louis Fed) using that exact word.
Calculated risk posted some great charts yesterday on ALT-A, a load of which were additionally downgraded yesterday. Hence, the segue-way to non-prime. Only the panic is still contained.
Blackstone and Fortress both closed Friday more than 25% below their IPO price.
OT post: 32-year-old who lives with his mother gets his Hummer H2 trashed by eco vandals… http://tinyurl.com/3xrm42
It’s humorous that the article doesn’t even question the fact that this guy is living with his mother but yet he bought an expensive, gas-guzzling behemoth. Our culture is f’ed.
Exactly. Good catch. F’ed indeed.
How many times do you get a hummer with your mother?
That’s just wrong. Ewww. Icky.
Five?
Look at that guy. You know he wears his pants low so that his boxer shorts are showing. He probably has a $10,000 stereo system in that H2 that rattles every window in the neighborhood when he comes thumping along. I didn’t see the hubcap-sized chain that I am sure he wears around his neck. I bet he also has a pit-bull tied up in the backyard. Once again, there may be more to this story than anybody knows.
“The neighborhood in general is very concerned with the environment,” said Liem, whose Prius gets about 48 miles a gallon compared with the Hummer’s 14 miles a gallon. “It’s more liberal leaning. It’s ridiculous to be driving a Hummer.”
What a bunch of self-righteous SOBs - I’m very much an environmentalist, but this smacks of close-minded intolerance and had the opposite effect of preserving anything, they just trashed more of the earth’s resources. The guy’s gonna buy another vehicle. And who cares what he looks like?
I think his look is very important. He looks like the stereotypical white hip-hopper. There is a reason stereotypes develop. They are usually accurate. I bet he drives through the neighborhood way too fast, even when kids are around. I bet he blasts rap music every time he drives down the block. This could just be an angry neighbor messing with him and disguising it as an environmental message. I bet the neighbors secretly wish they could break his knee-caps. His look has a lot to do with the situation.
“Yo, dawg, my ride! S’up?! Dang, they wrecked my sh!t,yo!”
Welcome to the ‘hood!
ROTFLMAO
Betcha he “bought” on credit. Because if he’d had any money, he would have insured the vehicle properly. And he wouldn’t be whining to the DC government about his s*** getting messed up now.
Lord that is JUSTICE! You couldn’t write this stuff. Is this a great country or what?
thank you Utah, you said it better than I could have. Prius owners are just as image-concious as this guy. If they were really interested in protecting the environment, they would have bought a used car instead of adding to the vehicle population with a new Prius!
The South Park episode where Stan’s dad buys a “pious” is a great one…
I thought it was Kyle’s dad … “Ever since you bought that Prius, you’ve been in love with the smell of your own farts!”
Exactly.
Thank you! Trashing a car is actually worse for the environment.
I am so sick of self-righteous so-called environmentalists who parade around in their new Priuses. If you gave a s***, why don’t you ride a bike? And if you have to drive, run the old Camry to the end of its life instead of sending it to a landfill.
His neighbors are posers. Just like he is. End of story.
Not Easy Being Green
By INVESTOR’S BUSINESS DAILY | Posted Thursday, March 22, 2007 4:20 PM PT
Environment: Feeling a bit smug about owning that hybrid? Better rein in that contempt for those who still drive primitive conventional cars. It seems that a Hummer is more ecologically friendly than a Prius.
http://www.ibdeditorials.com/IBDArticles.aspx?id=259455997533377&kw=prius
Oh man, that’s just too good to not post (sorry, OT):
“Yes, the Hummer will burn much more gasoline and discharge more emissions than a Toyota Prius driven the same distance. But a car’s ecological footprint — if we may twist an environmentalist phrase — is more than just fuel mileage.
Hummer: Is this demon machine actually a friend of the environment?
The feature that makes the Prius such a draw for the environmentally conscious is really its weak spot: the battery. Like all hybrid batteries, it’s of the nickel metal hydride variety. The nickel for the Prius is mined in Sudbury, Ontario, and smelted at a plant nearby. Toyota buys 1,000 tons of nickel from the plant each year.
So far, so green? Maybe not. The landscape around the plant at the city’s edge alarms environmentalists. Some eco-activists blame the bleak, lifeless countryside near the facility in part on its 1,250-foot smokestack that belches acid-rain-causing sulphur dioxide.
‘Sudbury remains a major environmental and health problem,’ says David Martin of Greenpeace Canada. ‘The environmental cost of producing that car battery is pretty high.’
But there’s more. From the Sudbury plant, the smelted nickel is shipped to Europe, where it’s refined in Wales. Next, it’s sent to China, where it’s manufactured in nickel foam. The nickel is then moved to Japan, where Prius batteries are made.
But the long, fossil-fuel-burning journey doesn’t end there. After the batteries are placed in the Prius, some of the nickel is round-tripped back to North America while some is shipped to Europe in cars sold outside Japan.
This useful information comes not from the investigative efforts of the mainstream U.S. media that allegedly exist to keep the public informed; it’s brought to us by Chris Demorro, an enterprising reporter with the newspaper of Central Connecticut State University, The Recorder, and London Mail reporter Martin Delgado.
While the Prius digs a deep environmental rut, the Hummer H3 plods on with a much lighter touch. An H3 costs $2.07 per lifetime mile to operate in environmental terms, while the Prius costs $2.87. Figures are courtesy of CNW Marketing, which rates cars on the combined energy needed ‘to plan, build, sell, drive and dispose of a vehicle from initial concept to scrappage.’
Then there’s the expected life span of the Prius: 100,000 miles, or a third of the Hummer’s, says CNW. Toyota would have to go through the same ‘build, sell, drive and dispose’ process three times for three Priuses to provide the same amount of service provided by one H3.
We know some hybrid owners buy them for the fuel mileage and are not obsessed with global warming. But that doesn’t mean a hybrid is necessarily a good choice, especially after the EPA lowered the 2008 model’s fuel efficiency rating. The hybrid king of mileage actually gets a city-highway average of about 46 mpg, down roughly 16% from earlier ratings.”
That young man needs to straightened out. Al Gore should fly out in his private jet to that young mans home and make him aware of the damage he is doing to our environment.
Maybe Gore should straighten out his own druggie kid first.
The Charger jersey he is wearing I believe it is Shawn Merrimen. I wonder if the vandals did the Merrimen sack dance after they “sacked” his car?
What really bothers me about this guy is in the picture he is wearing a Charger jersey and in the video he has on a Raider jersey….
The PhotoShop editor at the paper must be a Charger fan. LOL
It’s his money and his life. If he works hard to afford his vehicle, that is her perogative. Maybe he has to take care of his mother. It says it’s his dream vehicle, if it’s the one thing that is important to him, to have it vandalized right after taking ownership is a pretty hard hit. And to whine about the fuel use is funny, because the impact of one prius versus one H2 is pretty minimal. The people I know who drive prius, generally have very long commutes. Maybe the prius owner still buys more fuel? In the 80s people didn’t like heavy metal grits, now Ozzy Ozborne’s Crazy Train can be heard in Oldsmobile commercials. Same with the Cult, and other rock bands, that people like Tipper Gore tried to have banned. This is just the next wave, a way to rebel, perhaps kids speaking out trying to get attention but no one cares or notices. (No, I drive an Accord, when I drive, but walk to work everyday as my commute went from 60 miles a day to around 1.5).
Oh yea, if he was as mean as they were, he should spray battery acid on the neighbors priuses, and watch it eat thru the modern weak paint products on vehicles (because of EPA standards or something).
While vandals deserve a public flogging, I’ll admit that I chortled when I about Hummer Boy getting his pimped-out, 12-mpg ride trashed. This country cannot afford the wastefulness and over-the-top consumption of energy and natural resources that Hummers and their owners epitomise.
Sammy, read the above post about which is more eco. very interesting.
I still think driving horrible gas mileage cars is terrible. I love Ferraris but am starting to think I might not want to own one since they are so wasteful.
This made me think of a Del Taco cook/chef whatever they are called when coming back from Las Vegas last weekend to LA. We were at the Del Taco next to the large thermometer at Bunboy, not sure what that city is called. Well that guy had these huge huge huge diamond looking earrings. I was asking my friends if they saw him and I just dont understand if people want to look rich, you have to be rich. Well whatever.
To keep this on a HBB topic, its amazing to see the stretches of new housing between the Inland Empire and Las Vegas. I now have a running joke at work about the only places getting developed are right next to the freeway under the huge power lines (Fontana). I work at a Civil Engr Land Planning firm in case anyone cared, which makes this more funny.
Austin American Statesman article on booming local housing market
http://www.statesman.com/sports/content/business/stories/other/07/21/0721homes.html
The median price of an existing home in Central Texas kept rising in June, up 7 percent to $191,050. If the median price rises 5 percent this month, it will top $200,000.
The increase reflects the region’s strong job and population growth and suggests that Central Texas doesn’t suffer from the overbuilding that has plagued some housing markets.
“Austin has experienced record-breaking growth in home sales for the past four years,” Charles Porter, chairman of the Realtors board, said in a statement. “Overall, the Central Texas housing market has been resilient and continues to be one of the best investments money can buy.”
Yes, things have still been heading up in Austin, at least in my neck of the woods.
A house down the street for me (3/2 ranch 1700-ish sq ft) was just listed for $239k and has a contract pending. They bought it for $170k 6-8 months ago (at least that’s what the selling realtor said when he stopped by my house asking if I was looking to sell). They did some work to it - new tile and cabinets in the kitchen and re-did the master bath, but certainly nothing worthy of a $70k mark-up. Prices have been heading up in this neighborhood for the past two years, but I was utterly astonished at not only their asking price but the fact it was under contract in a week.
It’s hard not to sell into this market before the bottom falls out like it has elsewhere in the country. I know what’s coming, but I can’t bring myself to pack up and sell and find a rental. I have a feeling I’m going to look back and regret staying put, at least a little bit.
ABX-HE-A 07-1 now under 70, and both the 07-2 and 06-2 “A” indices are under 80.
(Not to mention ABX-HE-BBB 07-1 at 45.89 and ABX-HE-BBB- 07-1 at 42.10)
On 20th June they were at 90.39, 67.95 and 59.79 respectively.
Strewth.
Last week NYCResident had asked about the goings-on at 59 John Street. I’ve reported on that ridiculous development several times. I don’t have any official news but it looks completely dead in the water. This was a bad bubble idea. I don’t think it will ever happen.
I had to go to flyover country last week. On the ride to LaGuardia (I seldom get off the island) I was once again astounded at the number of condo projects going up in Brooklyn. In the middle of rundown neighborhoods are these huge luxury buildings. Sometimes I feel like I’m living in a Salvador Dali painting.
I had to go to D.C. this past week, visited some of the old haunts on my free time. Seems like the same thing is going on there, despite the downturn. I guess the larger metro areas still have a ways to go in the correction. I don’t see that in Denver, though, but maybe I’m not looking in the right places, or maybe it’s already “been there, done that” from the 90s boom.
NYCboy:
I still cant believe all the construction here in Long Island City hundreds of luxury condoze and now they are renting them and only 1 subway stop the 7 at vernon jackson……its still a hike to get there. I guess its going to get real crowed real soon….plus there are no real supermarkets in the area either. Maybe thats why the located Fresh Direct in LIC…………LOL!
I guess the plan is to spend all your money on a place to live so you CAN”T afford a car, since no one is building any parking garages or under the building parking that i can see…i think they are even tearing one down. And you know how tiny and narrow the streets are, its an old section of town.
But you might have a view of the city to go with that luxury condo. Bwahahaha.
OOPS that will cost you DOUBLE my boy……..
You can olny afford the side they looks towards queens…..
You get a view, until someone builds a bigger condo building between you and the city.
These Houses are in my neck of the woods. This is why I rent.
MLS ID: (http://www.mcenearney.com/search/advanced.php enter at the bottom under “MLS ID”
AX6373789 $600k
AX6413059 $680k
AX6435032 $950k
AX6390144 $725k Townhouse
AX6411053 $1250k Townhouse
Disgusting what people expect.
Anyone know what happened to Paladin?
Probably being held in a concentration camp on the west coast till this all blows over.
What would an internment camp look like for the HBB bloggers? I’m guessing we would all be reporting to TXChick within a matter of hours.
Yup, and she’d make us eat at iHop and torture us by making us give the waitress $100 tips and then we’d go to the adopt-a-thon and help place abandoned dogs. All while she’s shorting HB stocks and checking out cool houses in Nebraska on the internet. LOL
You say that like it’s a BAD thing….
Nope, it’s all good.
I’m inclined to believe it would look like the NAR version of Gitmo.
Lawrence Yun would no doubt be in charge of interogations.
All housing bubble stories would have to be hidden inside tennis balls and accidently thrown over the fence to Ben’s compound during exercise hours.
Prisoners would have to recite “Sir, it’s a great time to buy or sell a house” before entering the chow hall.
Toll Brothers would construct all NAR outbuildings.
Prison cells would be built by Centex.
All morale calls to relatives would include endorsements to buy second homes.
Countrywide would finance it all.
Waterboarding would be the norm for infractions.
LOL! And David Learah would post the weather reports.
Paladin posted a month or so ago that his work was completed with the meltdown of the sub prime lenders.
the latest from philly: in the local (s.philly) paper, almost all of the ads have taken out the prices! same ads, same bull about “buy now before they’re all gone”…..but no prices on most. no doubt the preparation for a major lowering, trying to get it done under the radar.
Crisp home to be sold at auction:
http://www.eyeoutforyou.com/home/8637987.html
As they say on Ben’s blog, BWAHAHAHAHA!!
Newport Beach developer cant pay his loan in Bakersfield:
http://www.bakersfield.com/hourly_news/story/194128.html
I meant to type Sacramento developer.
More BWAHAHAHAHA!!
LOL
Stucco must be sleeping late this morning, so I’ll post this for him:
http://www.signonsandiego.com/news/business/20070721-9999-1n21jobs.html
“Real estate, construction woes slow Calif. job growth to a crawl
Hiring in California was hit by a bad case of June gloom last month as the effects of the real estate slowdown seeped into the job market, according to data released yesterday by the California Employment Development Department.”
“Things are looking pretty bad,” said Alan Gin, an economist at the University of San Diego. “It’s conceivable in the next couple months that we might see negative job growth – a fall in jobs.”
Economists pinned the blame for slow job growth on the local housing market. In the past year, home sales declined 24 percent, meaning less work for mortgage and real estate brokers. And applications for residential-construction permits have declined in nine of the past 10 months, meaning less work for builders.
“It really is the real estate market that’s causing this,” said Kelly Cunningham, an economist at the San Diego Institute for Policy Research. “Even though job growth in the visitors industry and the professional business sector is still positive, we’re losing as many jobs as we are adding.”
“For the past year, Cunningham and Gin have been predicting that San Diego would be able to survive the real estate slowdown without falling into a recession. Now they say they are not sure.
“If this trend keeps going on for the next couple months, it would suggest that we might have a recession before the end of the year,” Cunningham said. “Not a big recession, but a slight one.”
Cunningham added that if the number of real estate foreclosures begins to increase substantially – which he doesn’t think will happen – a recession could be more severe.”
Wow, he used the R-word!
(And notice how he’s covering his a$$: “if the number of real estate foreclosures begins to increase substantially – – a recession could be more severe)
Dang, an earlier post in this thread pointed out the same thing happening in the Sarasota area. Early warning signals?
Cunningham added that if the number of real estate foreclosures begins to increase substantially – which he doesn’t think will happen – a recession could be more severe.
Ahem…
http://piggington.com/june_foreclosures
Same article:
“Financial and real estate companies shed 400 workers last month, contributing to a decline of 3,500 since the previous June. As was the case statewide, the largest growth area locally was in leisure and hospitality, thanks to the creation of summer jobs. The industry added 3,200 jobs last month for a gain of 6,500 from year to year.”
So job growth is in the high paying, seasonal leisure and hospitality sectors….
Have an apartment building in Riverside where mo. rents are $800/mo. Needless to say, area attracts those struggling to make ends meet. Had some real nice folks renting, tho, until neighborhood gangs chased them out. Hookers turning tricks on flat bed trucks out front, meth dealers cooking up drugs in the bathtub, homeless living in the garage, and illegals packed 30 people into one 2 bedroom apartment — these are a few of my landlord war stories and why I’ll be putting the building on the market soon. BTW, six years ago when I purchased the property, it wasn’t like this…
Spikesurfer,
just curious, will local laws allow you to evict all the tenants before you sell, or are you stuck with them? and 30 people in a 2 bed…are there local zoning or health laws that prohibit this, and will the cops enforce them? Just curious. If you can’t sell, can you turn it section 8, and if so, does that give you any enforcement options?
Sorry for your troubles, sounds like a nightmare.
Surprised by now we have not seen any stories about people holding contests to raffle off their home -ie- pay $100 and write a winning essay and win our house. States outlaw them as lotteries. Hmmm, a raffle would help save all these FBs. Lotteries certainly help the government (us) with fund-raising/shuffling.
Spotted on a Grants Pass traffic island yesterday: A fresh scrubbed obviously well fed girl of fifteen or sixteen with blond pigtails and a pink bow wearing a Catholic school girl dress and white bobby socks, carrying a little girl purse on her elbow. Did I mention, she was also “cute”? She was holding a cardboard sign saying “homeless, hungry, please help”. She was raking it in like you wouldn’t believe. Probably had her Camero parked across the street. I wonder if her parents knew what her summer job is.
What street intersection?
Grants Pass Pkwy & NE Terry Ln.
I had to park and watch this spectacle for awhile. It was unbelievable. It’s a good thing traffic was heavy because if it wasn’t, that is a good way to get snatched by a predator.
Maybe cause an accident too. You report, we decide, lol.
You sure about the age? Local club uses that outfit as a to attract patrons.
Almost as good as the “thong babes” selling hot dogs in Daytona Beach.
I remember the neon colored thongs on the tan & curvy hot dog sellers. They always had a que of middled-aged portly pale strip club patron type males lined up down the side of the road . . . !!
So now we’ve stooped to vilifying the honest, hard-working, weinie-hawking thong babes… Is NOTHING sacred in these troubled times?!? Do you want those poor weinie-girls to starve- is THAT what you want?!? You know, if more people would patronize the weenie-women, they just might be able to afford more to wear than just a thong- did anyone ever think of that? Whatever hapened to love for our fellow-man and thong-babe?
You’re right, my bad. Shame on me. Maybe I’ll have to buy a wienie, even though I hate the things. They do seem to be comfortable in their rags tho.
Ahwatukee/Phoenix rent is decreasing!
My lease I recently signed was a belated lease agreement, due to my roommate not signing off for a few months. It took quite awhile for them to get that signature. But now the lease is up for renewal and the current one expires October 7. The 12 month lease is lower than the old rate! LOL. Okay, it’s only $8 per month lower, but a cut is a cut. Who says rents are going up? I live in a clean part of Phoenix, no trashy homes in the area like parts further north. My new rent will be $958 per month. I’m going to get this paperwork through to the management office today. Oh, my FB neighbors are in houses in the $500,000 to $1.5 million range. Happiness is rent deflation and this all flies in the face of recent articles posted by well-meaning fellow bloggers saying rents are going up. Well they are going up in certain locales. Not mine! Woo Hoo!
See, you too can make money in real estate. It’s just that we are sitting on options for cheaper digs years down the road. The FB does not have that option to relish.
My rent in Ahwatukee Mountain Park did’t go up either. And I haven’t re-newed the lease. SFH 1500 sq ft 2.5 bedrooms 2 baths 1200 month.
What happens when your “floating interest rate” is @ 10.3% and expected to go up again, in one of the most bubbly of worldwide housing locales…
http://www.nzherald.co.nz/section/8/story.cfm?c_id=8&objectid=10453026
A prediction of future financial pain, coming our way as interest rates rise in our country?
Fascinating:
http://www.iht.com/articles/2007/07/10/europe/letter.php
“The ocean floor is the final spending frontier for the world’s richest people. Journeying to see what’s on the bottom aboard a personal submersible is a wretched excess guaranteed to trump the average mogul’s stable of vintage Bugattis or a $38 million round-trip ticket to the International Space Station aboard a Russian rocket.”
I like it. Gives a new meaning to being underwater (or wait, isn’t this what it originally meant??). Let’s send all the hedgies down under (and I don’t mean Oz).
What was that series with the underseas adventurer? I think Lloyd Bridges starred in it. They ain’t creating any more ocean, or are they?
July 20, 2007, 8:44 pm
Subprime in Beverly Hills
Posted by MarketBeat Staff
Ianthe Jeanne Dugan reports on the ever-flowing ripples of the subprime-loan fallout.
How did the subprime mortgage fiasco ripple out to a Beverly Hills plastic surgeon?
The doctor, Raphael Nach, bought stock last October in Moody’s Corp. What he didn’t know at the time, he says in a lawsuit filed July 19, was that Moody’s had given “excessively high ratings” to bonds backed by subprime loans. He claims Moody’s stock price, which has been on a gradual slide in 2007, was inflated because of the ratings.
http://blogs.wsj.com/marketbeat/2007/07/20/subprime-in-beverly-hills/?mod=hpp_us_blogs
Yet even more BWAHAHAHAHA!!
Thanks for the humor. Hard to believe that real estate is so hard to make money in.
Barclays Spars Over Its Losses at Bear Stearns
By Kate Kelly and Carrick Mollenkamp
Word Count: 817 | Companies Featured in This Article: Barclays, Bear Stearns
Signaling the frustration among investors who were hurt by bad bets on the risky subprime-mortgage market, Barclays PLC is sparring with Bear Stearns Cos. over a loss that could be as high as $400 million, according to people familiar with the matter.
Barclays is a onetime supporter of a hedge fund at Bear, the Wall Street firm, that put billions of dollars into subprime securities.
http://online.wsj.com/article/SB118497732836973593.html?mod=todays_us_nonsub_money_and_investing
Barclay’s vs. Bear Stearns?! BWAHAHAHAHAHA! That’s like watching “Predator vs. Alien” - let ‘em both lose.
“Kramer vrs. Kramer”
Bull Stearns vs @ Bear Market
From the Web to Court, a Real-Estate Broker Battles Lennar
By MICHAEL CORKERY
July 21, 2007; Page B1
STUART, Fla. — A dispute between a local real-estate broker and one of the nation’s largest home builders has mushroomed into a legal battle reaching all the way to Wall Street.
At the heart of the fight is a Web site started by Mike Morgan, the real-estate broker, to collect complaints and dispense advice about what he considers shoddy workmanship on homes built by Miami-based Lennar Corp.
“People tell me I am the Ralph Nader of the housing industry,” Mr. Morgan said in an interview.
http://online.wsj.com/article/SB118497334751573541.html?mod=todays_us_nonsub_money_and_investing
This looks good…
NOTICE: This site is NOT affiliated with Lennar Homes Corporation. Lennar Homes Corporation has NOT authorized or approved of this site. This is an independent site providing information to home buyers, home owners and concerned citizens. If you want to visit the official web site for Lennar Homes, click on the following link: http://www.Lennar.com
Substandard Workmanship
Code Violations - Deadly Defects
“Lennar Homes Killed My Husband”
http://www.defective-homes.net/
How to Save by Selling
Your House Online
By Marshall Loeb
From MarketWatch
Despite the recent slump in the housing market, many Americans are still paying a walloping 6% commission to real estate brokers.
At first blush, 6% may not sound like much, but consider: According to the U.S. Census Bureau, the average price of a home is $313,000, which means the average seller has to pony up nearly $19,000 in broker fees. This is a hefty penalty for selling your own home, one that more and more Americans are unwilling to pay.
http://www.realestatejournal.com/buysell/tactics/20070720-loeb.html?refresh=on
Out here in my neck of the woods, sometimes the more land you own, the poorer you are.
One such parcel sprouted a sign: “Realty Action Auction Service (or some such nonsense), date, be here, bargain,” etc. I drove by on my way outta town on that date and saw only a few cars, but what appeared to be some scuffling going on.
When I got back into town a few days later, the sign now had: “Realty Action Auction Service: Sold in 15 minutes!!”
I think the scuffling was the one FB who made the mistake of showing up. Took 15 minutes to get him to sign. True story. Things are slowing down here.
The housing bubble in London has made it into the lore of Harry Potter. As I sat down last night after buying my copy at midnight I found that the Dursley family home had appreciated so much that they thought Harry was causing them so much trouble they would abandon the home so he could steal it for the money!
Wife noted the same (she has already plowed through six chapters since making her midnight purchase last night…).
Usually, all the time, I just read the comments posted here. However, I must make a quick comment. If history is a guide (1920’s, 1900’s. 1890’s) Reform only comes after a long painful path that effects a large portion of the society by the time it reaches its maturity.(income gap, child labor) then comes furious reform in a short period of time.(New Deal, Sherman Anti-trust). The rest of the time our government works on the idea of incremintalism. I’m afraid were not in any of the those situations right now……..more like pre-civil war politics. No middle ground. Ironically, the Civil War was the largest mover of government policy ever.
I believe The Economist is missing something important, which is that actions speak louder than words. Furthermore, words without action can have the opposite effect from their putative purpose, thanks to psychological blowback.
Monetary policy
From helicopter to hawk
Jul 19th 2007
From The Economist print edition
America’s economy looks weak, but the Fed’s chief has been right to emphasise the risk of inflation
http://economist.com/opinion/displaystory.cfm?story_id=9516452
Ron Paul
Paul the apostate
Jul 19th 2007 | LAKE JACKSON, TEXAS
From The Economist print edition
Is this would-be president brave or crazy?
RON PAUL, a libertarian Republican congressman from Texas, likes to say what he thinks. And among the things he thinks is that the census is a violation of privacy. He has opted out of the congressional pension programme. He claims never to have voted for a tax increase, or for an unbalanced budget, or for a congressional pay rise and never to have gone on a congressional junket. He wants to return to the gold standard. Most notably, he strongly opposes the Iraq war and has from the beginning.
Mr Paul is running for president.
http://economist.com/world/na/displaystory.cfm?story_id=9514241
Monetary policy
Allowing himself a smile
Jul 19th 2007
From The Economist print edition
In the past year, Ben Bernanke has shown a deft touch at the Fed, but the economy may be weaker than he thinks it is
http://economist.com/finance/displaystory.cfm?story_id=9516503
I am guessing there were black swans under the lid…
Accountancy
Bearing it all
Jul 19th 2007
From The Economist print edition
The perils of derivatives and fair-value accounting
TO MANY investors, hedge funds are impenetrable “black boxes”, moving in mysterious ways and holding indecipherable positions. This week, however, investors in two troubled Bear Stearns hedge funds were given a peek under the lid. What they were shown was black indeed.
http://economist.com/finance/displaystory.cfm?story_id=9523386