Sellers May Not Get That Really High Dollar
The Detroit News reports from Michigan. “Michigan’s largest lender Quicken Loans Inc. is retrenching, including freezing hiring in the state, as it sets a new course in the turbulent mortgage industry. The Livonia-based mortgage giant is lowering goals for its loan writers, ending mortgages that investors no longer will buy on the secondary market, and introducing new products backed by the federal government in its effort to gain market share in a shrinking industry.”
“The culprit behind the struggling mortgage industry and Quicken’s need to adjust: the worst housing slump in nearly two decades.”
“Eight ex-employees told The Detroit News that unrealistic sales goals, in a tough mortgage market, led to their dismissal or decision to quit in August and September. They say the goals were laid out in an ‘Opportunity Letter.’”
“‘I got a letter saying they wanted me to write 10 loans by the end of the month — superstars were doing five or six a month,’ once the market took a dip, said Steven Campisi, a mortgage banker who worked in Quicken’s Cleveland office. ‘I knew what they meant: They wanted me to go.’”
“As for the mortgage industry as a whole, it should begin looking up as the credit crunch eases, Quicken CEO Bill Emerson said. ‘Credit guidelines probably got a little too loose, and now they’ve corrected, perhaps too much,’ he said.”
The Citizen Patriot from Michigan. “The number of mortgage foreclosures in Jackson County this year has reached 950 — the highest it’s been in about 20 years, maybe longer, officials said. The number is 10 times greater than it was 10 years ago, and there are still two months left in the year.”
“Officials say there are several reasons why the foreclosure rate is growing: job loss, rising adjustable-rate mortgages, an unstable housing market and flat or declining income.”
“Record homeownership levels in the state increase the probability that more people can’t make payments, according to a state mortgage brokers group. And the road to foreclosure is a slippery slope. ‘You legally only have to miss one payment to start the process,’ said Pava Leyrer, president of the Michigan Mortgage Brokers Association.”
The Business Journal from Indiana. “Pending sales of houses-those with contracts signed by not closed-plummeted 16.8 percent in September from a year earlier, according to Metropolitan Indianapolis Board of Realtors figures released today by brokerage F.C. Tucker Co. Sales in Boone County fell the most, by 42.7 percent.”
“‘Central Indiana’s housing market is continuing to balance out,’ said Tucker President Jim Litten. ‘Inventory levels are still increasing slightly, but we are hopeful that the decline in new home construction and the steady pace of existing homes sales will be reflected in sales statistics in coming months.’”
The Rockford Register Star from Illinois. “Kitzman’s Lumber and Building Materials opened in 1979 as a straightforward hardware store, but that wouldn’t be enough to succeed in 2007. Many businesses are finding that diversification is the key to growth, maybe even survival, as subprime mortgage woes and credit crunches affect the economy.”
“Kitzman’s major customers are the area’s custom home builders such as Sean Adams Custom Carpentry of Byron and Zimmerman Home Builders of Rockford. Still, housing starts for the tract builders as well as custom home builders were down more than 30 percent through May.”
“‘We’re very fortunate because not all of our eggs are in the residential market,’ said Scott Kitzman. ‘Last year was a phenomenal year. If we were just in home construction, we’d be down 10 to 15 percent.’”
The Chicago Tribune from Illinois. “A new study by a home-improvement industry research firm found that the nation’s homeowners, expressing doubt about the market, are doing fewer fix-up projects. And they’re holding the glitz.”
“‘The thrill is gone,’ said Bruce Forni, a Detroit-based researcher whose firm, TNS-NFO, this summer studied 2,900 homeowners for a trade group that held its fall meeting in Chicago last week. ‘Fewer people are saying [they're remodeling] because they want the best house in the neighborhood.’”
“Forni said the shift may come from homeowners too time-pressed to pay as much attention to their homes as in years past. But it also may be a reflection of housing-market jitters, said Forni, whose company conducted similar studies in 2003 and 2005.”
“‘Home isn’t a safe [financial] haven any more,’ he said. ‘Homeowners are uncertain about the stability of their primary investment.’”
“He also said historically low interest rates no longer seem to be spurring as much remodeling. Freddie Mac has reported that the amount of home equity cashed out through refinancing in the second quarter was down about 25 percent from the year earlier. Forni said consumers tend to have low opinions of interest rates, particularly of adjustable-rate loans and mortgages.”
“‘Maybe they just don’t have the equity to borrow against,’ he said.”
“Though the home-improvement institute’s study found a large majority of homeowners said they agreed, at least to some extent, that putting money into their homes ‘is always a good investment,’ they were less confident when asked whether home values would increase in the next two years.”
“‘That’s where it starts to get disconcerting,’ Forni said. ‘They’re not seeing near-term improvement. There could be less confidence in trying to increase the value of their home.’”
“Rick Baumgarten, president of Lee Lumber on Chicago’s North Side, said there is a big segment stuck in neutral, watching to see whether home prices drop.”
“‘Instead of spending $60,000 to do their kitchen or $80,000 doing a room addition, they’re telling themselves that the prices are coming down so much that they may be able to get a home that’s got all those things done already,’ said Baumgarten.”
“South suburban remodeling company executive Jack Philbin said he is hearing some tales of woe.”
“‘I know from talking to many of my suppliers that they’re hurting,’ said Philbin, president of Philbin Construction & Remodeling in Crestwood. ‘One company that deals with insulation and drywall tells me their business is down 50 percent. One of our millwork suppliers is having a strong cutback in staffing, getting back to the nitty-gritty of people.’”
The Standard Democrat from Missouri. “Foreclosure rates in the area are beginning to edge up, a shadowing of what is occurring in the national market.”
“‘They are by far higher this year,’ said Tom Dirnberger, Scott County recorder. ‘Every day, we’re getting one or two, and it used to be one or two a week.’”
“In fact, a record number have already been filed this year. More than 200 were filed so far this year — a sharp contrast to the 153 total filed in 2006.”
“A big chunk of the filings in Scott County deal with land fraud. ‘In Scott County, there have been at least 300 fraudulent loans — fraudulent meaning loans given on properties that were over-appraised,’ he said.”
“‘It’s just been aggressive lending practices in general,’ said Lori Fowler, a broker in Sikeston.”
“One practice has been 100 percent financing often offered to borrowers. ‘People who wouldn’t have traditionally qualified for a home qualified,’ she said. ‘Some people who were not as financially stable were buying houses.’”
“‘I think most of the real estate agents in this area think the real estate market has been a little softer this year,’ Fowler said. ‘Sellers have to be a little more patient; and they may not get that really high dollar they were getting recently for their homes.’”
The Rapid City Journal from South Dakota. “Although some areas of the United States seem to be headed for a housing meltdown, builders and Realtors in Rapid City say the market here is holding its own for the most part.”
“‘Our market, contrary to all of the negative publicity from coast to coast, is not seeing that reality,’ said Sheila Tom, president of the Black Hills Board of Realtors. ‘All real estate is local, and what’s going on here might not reflect what’s happening there.’”
“On the construction side, building permits for single-family homes is down about 18 percent in Rapid City and Pennington County in the first eight months of the year.”
“For area builders, their biggest fear is fear itself. If people perceive that the housing marketing is headed for a fall, they will be reluctant to buy a new home - or a bigger home. It could become a self-fulfilling prophecy, they fear.”
“Builders have been trying to counter the perception that the housing market is in the dumps. Meanwhile, they’ve also cut back to reduce the inventory of houses.”
“Contractor Ken Fuerst of K1 Construction in Rapid City said he built 14 houses a year during the peak times; this year he’s done about four houses so far.”
“Scott Mueller of Mandalay Homes, one of the biggest builders in the area, said his company has about 45 homes in some stage of permitting, construction or sale. That’s about half what it was in 2005, he said.”
“Black Hills home values have seen steady, not spectacular, growth over the years. The average price increase has ranged from 4 percent to 6 percent in recent years. We simply don’t have that far to fall.”
“However, Sgt. Mike Dailey of the Pennington County Sheriff’s Office said foreclosures have been on the rise. So far in 2007, the sheriff’s office has handled 74 foreclosures, compared with 58 during the same period last year and 57 in the first nine months of 2005.”
“In 1997, the Pennington County Sheriff’s Office was involved in 33 foreclosures for the entire year.”
“Jack Lynass of BankWest in Rapid City said he remains bullish on the Black Hills economy. ‘I think the Black Hills area is recession-proof; we’ve been through tough times,’ he said.”
‘Quicken has grown by 1,600 employees since 2005 to 4,100, according to the company, on the strength of the refinancing boom earlier this decade’
‘Contractor Ken Fuerst of K1 Construction in Rapid City said he built 14 houses a year during the peak times’
‘The thrill is gone’
‘Record homeownership levels in the state increase the probability that more people can’t make payments’
‘they may not get that really high dollar they were getting recently for their homes.’
No national bubble, MSM?
It finally occured to me what hid bubble increases since 2000 in the rust belt. There was a permanent demand shift down (due to population loss) that should have been reflected in dramatically lower prices prior to 2005, but the bubble hid it.
I’m amazed how cheap homes are in midwest even in counties w high income
A delivery guy that comes in here is looking at buying a house (a foreclosure). He mentioned he was in the market a few weeks ago and I pointed him to this blog trying to knock some sense into him. This past week he was telling me he was looking at a 1,200 3 bedroom with two car attached garage foreclosure priced about $97K in a middle class burb with decent schools. Bank refused his low $90K offer - that’s $75 a square foot. Said he was going to wait it out until the banks try and clear crap out for year-end in late Oct -early Nov. But, I have to admit it looks like prices are getting close to where investors might start looking for rental properties.
I plan on getting some rental properties, but prices will have to fall a lot further. There will be some investors snapping houses up, but this is historic. There is simply no way the number of investors left out there will be able to prop prices up to any degree considering the supply.
I wouldn’t try the rental market around Detroit regardless of house price drops. Speculation (of any type) is OVER in that geographic region.
You are assuming, of course that you will find renters. Remember, the market is way overbuilt and there are 2,500,000 ‘vacant dwellings’ so far…..
Not anywhere nearly as amazing as places with high prices and low incomes.
Northern Colorado, anyone?
North Idaho/Eastern WA. anyone?
You obviously haven’t been to Grosse Pointe, MI
Jack LyingAss? Are you serious?
Truth is stranger than fiction!
ROTFL
Ben. Admit it. Finding these names is one of the little joys in your life.
I can barely type because I’m chuckling that much!
Got popcorn?
Neil
Test
Having posting problems?
Hi Ben,
I’m on a 9 yo computer and refuse to get a new one : ) Just had to reboot.
Smiles,
Leigh
“Jack Lynass of BankWest in Rapid City said he remains bullish on the Black Hills economy. ‘I think the Black Hills area is recession-proof; we’ve been through tough times,’ he said”
Editorial Correction. This article was misprinted. It should have read; “Jack Lyingass of BankWest in Rapid City said he remains a bullshitter on the Black Hills economy. ‘I think the Black Hills area is recession-proof; we’ve been through tough times,’ he said. “I myself am also bullet-proof when I wear the spandex Superman uniform my mommy got for Halloween”, he added.”
–
“‘I think most of the real estate agents in this area think the real estate market has been a little softer this year,’ Fowler said. ‘Sellers have to be a little more patient; and they may not get that really high dollar they were getting recently for their homes.’”
What kind of sellers keep their property on market for more than 6 months? There are properties that have been on market for more than two years. What is wrong with these people?
Jas
Jas,
I’d like an answer to that question! We looked a property in 06 that had been listed for a year and is still listed.
They started at $427k and are now at $399k. Jeesh.
Leigh
$28k represents a whopping 6.5% drop –why didn’t you jump on this bargain immediately? You’re not one of those greedy bottom-feeders the NAR warned me about, are you?
–
Leigh,
They must be constipated! Psychologically, of course.
At some point it could be very painful. Foreclosures are the ER for many of them. Can they spell Relief?
Jas
Chuckles Harm : )
Jas, the fools referred to above have built a second home, at the same price and are HELOCed to their eyeballs.
It’s a terrible time to be a compassionate person in this mess!
Best,
Leigh
Here’s Your Sign…
“‘I got a letter saying they wanted me to write 10 loans by the end of the month — superstars were doing five or six a month,’ once the market took a dip, said Steven Campisi, a mortgage banker who worked in Quicken’s Cleveland office. ‘I knew what they meant: They wanted me to go.’”
Funny you should mention Michigan, Ben, because that’s where I was over the weekend. I went back to Michigan, to my college homecoming in dear Ann Arbor town, and here’s my report:
The condo craze hit Ann Arbor pretty hard. But the demand was saturated — quickly.
Case in point: I spent the better part of Friday with an old college friend who has done quite well for himself. (He pursued his computer geekiness to great fortune.)
Any-hoo, we both had a good laugh about the condo conversion attempt across the street. Seems that the project has come to a standstill. And the building is now occupied by a group of homeless people.
Behind his office was another laugher. A mostly vacant lot where a high-rise condo complex was to be constructed. But, alas, the developer ran out of money. A sign touting the vaporware high-rise is still on the one building that wasn’t torn down.
Here’s another one that’s at least worth a giggle. Condo building on East Liberty Street with a banner warning that only four condos are left. Banner looks like it’s been up for a few months.
Try a few years….
At what point does a county just give up?
“The number of mortgage foreclosures in Jackson County this year has reached 950 — the highest it’s been in about 20 years, maybe longer, officials said. The number is 10 times greater than it was 10 years ago, and there are still two months left in the year.”
Is it just me or Does anyone else, turn off CNBC when Maria “Fish Face” Bartiromo comes on with her shrill and talking like way to fast?
And English is my first and only language if it matters.
stanleyjohnson, you always make me laugh.
Just in from Missoula, MT - where it’s different!
From the Missoula Organization of Realtors:
Local September 2007 sales down 26 percent from September 2006.
2007 year-to-date sales down 15 percent from this date last year.
Missoula area: September sales down 25 percent from September 2006.
Year-to-date sales down 17 percent from this time last year.
Median price for September sales actually declined slightly from last year.
Median prices to date did not rise as dramatically as in the past. ( It’s typical for median price to rise when sales of lower-priced houses have stalled.)
The local market seens to have peaked in 2006.
I have a friend living in Livingston, swears “they” are bubble proof, swears it’s so “different” there…what do you think? How did fire/drought affect the area? Lots of ranches for sell around there…
No one’s talking bubble around here except me in my blog. There was a story just yesterday about how the Flathead housing problems is “different” and the reporters don’t know any better. But people from out of town or out of state have been snapping places up so it remains to be seen if the crash elsewhere will finally pull the plug on all that.
I love Livingston. I don’t know exactly what Livingston economy is based on, even after living in Bozeman for two years. I think the town economy is based on services to the ranchers in Paradise Valley and the surrounding area. Tourism plays a small role for people heading down Yellowstone. Other than that, Livingston has a lot of disgruntle Vietnam vets (often sided with them, but too negative at times) living in the twilight of a bygone era.
Bullish, like Merrill Lynch Bullish?
“Jack Lynass of BankWest in Rapid City said he remains bullish on the Black Hills economy. ‘I think the Black Hills area is recession-proof; we’ve been through tough times,’ he said.”
Is it just me or Does anyone else, turn off CNBC when Maria “Fish Face” Bartiromo comes on with her shrill and talking like way to fast?
When she was talking from the trading floor, yes. I never could understand what in hell she was saying.
Great title:
http://www.thestreet.com/s/citi-puts-lipstick-on-asset-backed-pig/newsanalysis/banking/10384449.html?puc=_tscana
Forget the “Lipstick on the pig”.. it’s going to be the “Makin bacon Season on the stupid” through 1st quarter 09
“The downgrades are coming so fast that you could go to the bathroom, come back to your desk and find you’re a junk bond manager,” says Bianco.”
Like Ben said in the W&W thread, these corps haven’t a clue what they are doing.
That’s a funny quote. I once had the temerity to go to the bathroom one day in the middle of the trading day and discovered when I got back to my desk that I was short Intel via my cat’s walking across the keyboard. Did I mention Intel was up 6% at the time? LOL
“I was short Intel via my cat’s walking across the keyboard.”
Good one. OT, but 14,000 in the rearview mirror and I’m happy.
Lipstick color?
Dark Shadows
this girl has a real sense of humor. She should offer her services to SNL.
“The big banks might like to bundle all their crummy debt and shoot the whole package into outer space. But fixing this mess won’t be quite that simple, and the markets finally agree.”
.
.
.
“”The downgrades are coming so fast that you could go to the bathroom, come back to your desk and find you’re a junk bond manager,” says Bianco.”
OT: the banks rafting up together thingy didn’t work out today
that and 86$ oil has me feeling bullish
Rising oil futures leading to higher gas prices, FB’s who financed big SUV’s that barely break single digit MPG figures, long commutes, stagnant wages, resetting ARM’s, falling home values. Man, I sure am glad I loaded up on MRE’s and ammo.
Oil is going through the roof:
“A recent study by the Canadian bank CIBC indicates that the rapid consumption of oil in the oil producing countries themselves will reduce exports and raise the price of oil to $100 per barrel. The study titled “Oil for $100 in 2008” indicates that the daily consumption of oil by OPEC oil producers, in addition to other large exporters, such Russia and Mexico, has exceeded 12 million b/d. The study added that if the level of consumption by these countries continues at this rate their export capacity will be cast in doubt.”
I was flipping through the tv channels the other day and saw the prime minister being interviewed (I think it was PBS) who said he expected oil to be $185/barrel by 2009. Wow.
prime minister of Qatar
*I should add that oil was $22/barrel when Bush took office. Vietnam said they would no longer buy american dollars for oil and saudi arabia said they’re thinking about that, too.
Is Michigan as grim as it sounds, or worse?
Somebody paint me a couple paragraph picture of Detroit and the surrounding areas?
Yesterday, I went to lunch with a couple of business owners in Michigan. One of them quoted Sam Zell, who was asked about investing in that state. Zell said that he didn’t see anything in MI that was worth his time or money.
I’ve only ever been to the Grand Rapids area. I thought it was very nice. If I thought I could handle the boneass winter weather, I’d move there. Other than the winter, what’s not to like? Good people, water resources, arable land
Grand Rapids doesn’t fit the industrial rust belt stereotype often associated with Michigan. People there go out of their way to show that it is not like metro Detroit. Lake Michigan isn’t far and the scenery especially this time of year can be good. OTOH, it is a verrry conservative region (Amway’s HQ is in a nearby town), which probably appeals to some but definitely not all.
GR used to be the furniture capital of the US, until production moved to North Carolina and then to Asia. Lotta great modern furniture came out of GR back in the day. If we ever had a revival of “Made In the USA”, my money’d be on Michigan.
Anyhoo, from all reports, Michigan is a very diverse and interesting state. You really can’t beat the people. We have a lot of Michiganders, mostly retired, in my neck of Florida. Great folks, real doers and joiners, backbone of America types. Very interesting backgrounds in industries of various kinds.
Metro detroit will be a great place for a business venture by unscrupulous investors….with the massive layoffs of the auto companies and the new acceptance of a wage that was paid last in 1973 ($14.00 per hour) for assembly workers, you can tap into these hard working morons for a wage similar to a california migrant worker…with all the unions busted here you won’t have to worry about those pesky union reps either. The people won’t move either because ..well they have always lived here and most have been working 60+ hours/week most their lives and a vacation to them is getting a long weekend at a cabin up north that was passed down to them thru the family back in the 60’s thru the 90’s when there use to be a middle
class in the area.
Detroit neighborhoods are very grim -lots of empty foreclosures. Center of the city has actually improved over the last ten years since Compuware and GM came in to the city center. Some suburbs don’t seem to have that high of inventory - high, but not Palm Beach county high. Some others are getting hammered. Here in Grosse Pointe, just about every mile long block has about 4-6 houses for sale. We have our share of foreclosures too - but this is mixed in with a sizable group that own outright. Prices are down to at least late ’80’s prices and are in line with incomes (if you are working). I’m a long way from newer subdivisions so I don’t know what the situation is with inventory. But, to tell you the truth it sounds like some areas of FL and Inland Empire are in worse straits (more inventory) because there were so many FB’s in recent years - their markets had so much velocity during the boom.
On the economic side, the state has been in a recession and have been for some time. It’s beginning to feel like a deep recession this year.
What a joke…those old GP homes are still overpriced and the snooty, filthy rich sellers won’t budge, The only homes being sold are the little dumps in GPW bought by Daddy in the Farms for a wedding present to his Daughter/Son.
Dan, you stated what I was going to say about LyingFace in Rapid City. Only funnier. Great job.
“Jack Lynass of BankWest in Rapid City said he remains bullish on the Black Hills economy. ‘I think the Black Hills area is recession-proof; we’ve been through tough times,’ he said.”
And where was Custer’s last stand?
South Dakota seems like they’ll weather the storm ok, sensible little guy builders, prices never got stupid…
But, that their insular little market looks a lot like ours now means…
Houses are Hot Potatoes, everywhere.
Pave the way, Pava Leyrer?
“Record homeownership levels in the state increase the probability that more people can’t make payments, according to a state mortgage brokers group. And the road to foreclosure is a slippery slope. ‘You legally only have to miss one payment to start the process,’ said Pava Leyrer, president of the Michigan Mortgage Brokers Association.”
Ben! Ben Jones! BenBenBen! Look at this!
Hahaha. Oh, where to start the giggles.
‘Gambling puts escrow owner’s license at risk’
http://tinyurl.com/ywm6kw
‘State officials accuse Daniel Sadek, owner of two Costa Mesa subprime lending companies and a related escrow company, of using $1 million in company funds to back personal gambling markers at Las Vegas casinos and are seeking to revoke his license.’
‘… Sadek obtained markers worth $1.02 million for gambling at the Wynn Las Vegas and Bellagio casinos based on funds from his company, Platinum Coast Escrow.’
So…the gambler screwed over other gamblers. Is this funny? Ironic? Fair? Sad? All of the above?
The article doesn’t say if he won, while on his fun trips to Vegas. But somehow I doubt it.
And you’ve gotta see the photo of this um, human, in front of his Ferrari Enzo. Good Lord. I wouldn’t buy a jug of Pennzoil from someone who looks like that. Well, not without washing my hands really thoroughly afterwards.
When I lived in So Flo, I used to hear stories of lawyers who lost their licenses for messing with the funds in their escrow accounts.
Not just there. This happens everywhere and it is one of the things that will get you disbarred on the first offense, at least in Florida.
What’s even more weird is his response to the allegation:
“In a May 2 interview, Sadek denied using escrow funds, saying that “the check was a mistake and never cashed and never written out of the company.”
Oh….so he just grabbed the wrong checkbook. I supposed his personal checkbook looks just like the company checkbook.
Hmmm……Try again, Danny. That excuse has a putrid odor coming from it.
BayQT~
I assume that you go to jail for this kind of fraud.
Who goes to jail these days though.
Oh my, he does look like a dirt bag. Actually, he reminds me a little bit of the “hipsters” you see in Williamsburg, Brooklyn. BTW, what are gambling markers?
“Though the home-improvement institute’s study found a large majority of homeowners said they agreed, at least to some extent, that putting money into their homes ‘is always a good investment,’ they were less confident when asked whether home values would increase in the next two years.”
Let us all step into the wayback machine of a few years ago…
A few years ago, there was NO, NO, NO home improvement that would provide 100% return on investment. It was only during the height of the mania that you would (I certainly keep seeing it on TV) that ‘if you spent 15K, you could raise the price by $80K.
Therefore, since we are slowly getting back to normal, there is hardly a reason for anyone to overspend on ANY improvement, as normal means that you will NOT get full payback on the money spent.
By definition, an investment provides a return higher than 100%. Therefore, very rarely can home improvements be called investments.
I think I read that the best you can hope to get back on a home improvement is something like 90%. That was supposed to be for improving a kitchen, and even so, you’re still out 10%.
Some investment.
Sounds more palatable as an “investment” rather than “what you have to do to get a buyer to maybe even look at your house.”
–
‘I think the Black Hills area is recession-proof; we’ve been through tough times…’
Yes, Balck Hills is “recession-proof” and the US is depression-proof.
All this proofing must be free.
Jas
I know this is off-topic, but turn on Cramer if you want a free laugh. Dumb-ass had a root-canal an hour ago and is still doing the show. Half his face isn’t even moving.
Good times!
Definitely taping this one… Been on 3 minutes, and I’m thinking 2:1 odds the drugs will be kicking in soon.
He sounds like Bill Murray in Caddyshack. This is priceless!
He’s always been comfortably numb.
Kudlow stole his prescription… {rim-shot}
“Hello Mr. Gopher”
Seriously, how can he spin the failure to put together the bail out fund for the SIV? That has to be freaking out everyone on Wall Street. I don’t care if they are at Citibank or the Thundering Herd, they have to know that the gigs almost up. I say almost as they’ll find a few last great fools.
Got popcorn?
Neil
–
He is in entertainment business. It is hard to sell propaganda without entertainment, no?
I personally think that he is dishonest and talks his hedge-fund buddies’ books. There are no laws against having a drink, or dinner, with your buddies.
Jas
I have lived for 25 years in a suburb of Lansing, MI which is the state capitol. Nice peaceful neighborhood. I went to the local grocery store on Saturday. I was at the checkout and they were chasing this guy, then tackled him and knocked over a display. I guess he was a shoplifter. Two weeks ago the gas station down the street closed. So I’m kind of wondering that if you triple your money on a gold coin as a way of weathering the storm, if your gonna get mugged on the way to cashing it in at the coin shop.
read “100 times to China”
or “the road”
Meanwhile, in Moron Land, a more xpensive Xmas coming, and 90% of homeowners remain clueless.
Surprise! Americans Plan To Spend More This Holiday
By Steve Liesman | 15 Oct 2007 | 06:03 AM ET
Forget the credit crunch, housing recession and slowing economy. Americans plan to open their wallets this holiday season, though maybe not on those cheap Chinese toys.
Wealth in America
CNBC’s quarterly “Wealth in America Report” finds that American plan to spend an average of $839 on Christmas gifts, up 17% from November 2006.
Spending plans surged in every region of the country–for white collar and blue-collar workers and for nearly every age group.
The survey of more than 800 Americans, conducted Oct. 4 through 6, helps allay fears that the summer credit squeeze and rising foreclosures could cause consumers to pull back on their spending.
In fact, the survey found that 74% of Americans have had no trouble getting a loan and 90% of homeowners think the value of their real estate will either stay the same or increase over the next year.
http://www.cnbc.com/id/21268631
yeah, read the question - they asked “how much do you expect to spend”… LT $200, $200-499, $500-000, and GT $1000.
then automagically, they got an “average”. oh, and 1/3 were going to spend GT $1000. Is that $1k, or $10k? and how exacly does that average work?
garbage in, garbage out.
This is yet another example of the worthlessness of the consumer confidence indicator.
It’s late so I’m not sure this will get read. It concerns California and in particular, the San Fernando Valley area.
Today, I had to travel to the Van Nuys area of the valley and took a main street which passed through the area known as Reseda to avoid the traffic clogged 101 Freeway. The street is Sherman Way.
At one point, as I approached White Oak, I saw up ahead some new construction. By the time I reached it, I had not seen a sign which showed the prices. I guessed, because of the ridiculous prices in Los Angeles, the properties, which looked like town houses, would be in the $250,000 to low $300,000. TOP and preparing to decline to the $150,000 to $200,000. Well, I almost crashed when I saw a billboard which stated: “Prices range from $750,000 to the low $1,000,000.” This particular area is a sh*thole btw.
At MOST, these properties are worth $200,000. What does this tell me? Simply, the United States is heading straight into a financial meltdown we have not seen since the 1930’s as this credit mess created by Mr. Magoo gets closer and closer to boiling point.
I guarantee we are going to watch scores of builders go bankrupt in the next 12 to 18 months OR Bernanke will devalue the dollar to the point where it will cost $4 to buy 1 Euro and $8 for a loaf of bread. You don’t have to be a financial genius to see that what we are seeing is NOT sustainable under any circumstances.