Throwing Away Money In California
Marketplace reports from California. “Tess Vigeland tours the wasteland of foreclosed homes near Stockton, California, and meets a family that’s resorted to squatting in their own home. Vigeland: ‘Dan Sinclair’s a 43-year-old systems analyst who lives in Patterson with his wife Esmeralda and their three small children.’”
“We were heading out on a walk around his neighborhood. Dan wanted to show me just how many homes were for sale or simply abandoned. Sinclair: ‘All right, so here’s a house you can see is in disrepair. I mean, it’s not bad, but their lawn is not mowed. That’s one of the signs is when the lawn goes dead, you know that people aren’t living there anymore.’”
“We only had to go three houses before finding another dried-up lawn with a sign that said ‘bank-owned.’ As we rounded a corner, the Sinclairs’ neighbors got up from their front porch and asked what we were doing. Larry and Kathy Fiddler have lived here since the development went up four years ago.”
“Larry Fiddler: ‘It’s a shadow of its former self, really. Everybody’s gone just about but five of us.’”
“Vigeland: ‘What’s happened to your home value?’ Fiddler: ‘It’s gone down probably 35 or 40 percent.’ For a while he and Kathy mowed the lawns of nearby empty houses… until there were too many. ‘Fiddler: ‘Well, that one there just recently… I think they vacated it.’”
“Vigeland: ‘Are these foreclosure here?’ Fiddler: ‘That one is, that one is, this one next door, that one there, so yeah, we’re pretty much surrounded.’ Kathy Fiddler: ‘Kind of a little ghost town… little ghost street.’”
“We continued on to the next ghost street where the Sinclair’s house is. They bought their house three years ago. It’s 3,600 square feet, including a four-car garage and a pool. Their purchase price: $440,000.”
“Sinclair: ‘But the prices kept going up. At one time, our house was worth over $600,000. In fact, a model just like this they were asking $699,000 — and now things have entirely collapsed.”
“A similar house down the street is already in foreclosure and the bank is entertaining offers for under $200,000.”
“The Sinclairs stopped paying their mortgage in October when the payment jumped from $3,000 a month to $4,000. Now they’re basically squatting in their own home, living there for free. Sinclair: ‘We had to start making some hard choices, which included going into foreclosure on our house and kind of starting again.’”
“Sinclair: ‘We would do it if the equity was there, but in a case where we’re already so behind… Imagine that for five years, say, we’re gonna pay four grand a month and then we’re just gonna be back up at what we bought the house for. We feel like we’re throwing away money.’”
The Bakersfield Californian. “By one measure, you could say about $2.1 million worth of Kern County mortgages vanished March 27. A similar amount could be disappearing every business day as the real estate market grinds back to solid ground.”
“The $2.1 million figure comes from a Californian survey of foreclosed properties sold back to the market on a recent random day: Thursday, March 27. Sales of 16 bank-owned homes recorded that day totaled more than $3.3 million, property records show.”
“Failed mortgages made against the 16 properties — all drawn up in 2005 and 2006, totaled more than $5.4 million, The Californian’s survey found.”
The Fresno Bee. “Fresno’s mosquito fighters are getting an early start this year — and they’re already finding their work is cut out for them, in part because there are so many neglected swimming pools.”
“Home foreclosures and unsold houses seem to be the main reason for the increasing number of so-called ‘green pools,’said David Farley, manager of the Fresno Mosquito and Vector Control District.”
“Farley’s district already has identified more than 1,000 such pools this season, a jump over the 650 identified last year, he said. In a normal year, the district may have tracked down 200 to 300 neglected pools, Farley said.”
“‘It’s just overwhelming, and new ones every day,’ said Farley. ‘I don’t know what percentage we have, but that may only be half.’”
From Business Week. “The crowd of 2,000 people who showed up for a big sale of foreclosed real estate on Mar. 16 at the Los Angeles Convention Center. Auctioneer Jeff Stokes got the crowd warmed up, asking attendees to raise their yellow bidding paddles—
“Look at that, a sea of yellow’ and exhorting: ‘Who came here to buy some property today?’”
“The event’s sponsor sold 119 properties in four hours—nearly one house every two minutes. ‘With so much inventory on the market and other builders discounting, it puts everyone in a bind,’ says builder Dennis Freeman, who auctioned 42 new condos in Palm Springs at an event run by Kennedy Wilson on Mar. 15.”
“Want a three-bedroom ranch in Bakersfield, Calif.? A duplex in San Diego? Homes there had been foreclosed on by lenders such as Citibank and Wachovia. Several of these lenders had booths on site to offer loans to buyers.”
“For folks used to bubble pricing, there were some surprisingly deep discounts. A four-bedroom house in Palm Springs that had previously sold for $1.2 million went for $625,000. A two-bedroom cottage in Los Angeles’ trendy Silver Lake neighborhood that had traded hands two years ago for $887,000 got picked up for $285,000.”
“Edwin Beeks, retired from the U.S. Navy after being wounded in Iraq, picked up a four-bedroom ranch house in Lancaster, Calif., with a bid of $95,000. The previous owner paid $255,000 in 2005, borrowing 95% of the purchase price from a subprime lender.”
The San Francisco Chronicle. “The economy also lost 67,000 more jobs than originally estimated in January and February, bringing the first-quarter total to 232,000, the Labor Department report said Friday.”
“Seventy-two percent of Californians said the state is in recession, and more than half believe it is moderate or serious, according to a poll by the Public Policy Institute of California released last month. Pessimism over the state’s economy is at it highest point since the organization began the survey a decade ago.”
“‘Recession? Phooey,’ said Rebecca Robins of Oakland, who routinely hears stories about lost homes and jobs from clients at her veterinary clinic. ‘If we don’t slip into a full-blown depression, we are going to be very, very lucky.’”
“On the other hand, Jason Bennett of San Francisco said that while job losses are unfortunate, the current unemployment rate would have been enviable during much of the 1980s.”
“‘Much of the news has been (about) overleveraged companies and individuals, and this pain is primarily (happening to) those that overspent and undersaved,’ said Bennett, who works in the retail industry. ‘Once we shake it out, we’ll be in a much healthier position.’”
The LA Times. “It used to be a high point of Goldy Anthony’s life. Every six weeks or so, as a kind of personal morale booster, she and a group of girlfriends would make appointments to see a Beverly Hills plastic surgeon for little touch-ups. He was ‘an artist’ with Botox and Juvederm, she said.”
“Afterward, in a carefree mood, the ladies would dine at a popular restaurant on the Sunset Strip.”
“No more. The sub-prime loan crisis, the housing slump and the general decline of the economy have claimed another covey of victims. Anthony is in the real estate business, and under current conditions, the cosmetic treatments — at $1,800 or more a pop — can no longer be squeezed into her budget. It’s the same with others in the group.”
“‘We used to make appointments together,’ Anthony said. ‘Then they started saying, ‘I can’t go next week.’ People didn’t have the money, but they were ashamed to tell you.’”
“‘I would rather have Botox than go out to dinner, but it’s just gotten so bad,’ said Anthony, 41, who is looking for a job since her career in the mortgage business went sour. She has not had the facial treatments in months.”
“And what’s been happening in Beverly Hills is apparently happening around the country. After years of steady growth, the cosmetic surgery business seems to be going through a rough patch.”
“Cathy Hollingsworth is not in the real estate business; she manages a clothing store. But the 42-year-old mother of two from San Jacinto said she is holding off on $20,000 worth of surgery because she doesn’t think it would be fair to her family in a shaky economy.”
“Her husband’s job with an engineering firm appears to be secure, but the four-bedroom home the family bought 2 1/2 years ago has lost value. On their street in a brand-new subdivision, four or five houses now sit empty.”
“‘If we weren’t upside-down in the house, I probably would take the money out and have it done,’ said Hollingsworth, ‘I’ll have to see how long I can tolerate wearing a girdle.’”
“Sinclair: ‘We would do it if the equity was there, but in a case where we’re already so behind… Imagine that for five years, say, we’re gonna pay four grand a month and then we’re just gonna be back up at what we bought the house for. We feel like we’re throwing away money.’”
‘Buying’ is throwing your money away!
People are finally waking up! I used to be very against people walking away from their mortgages if they could still pay but were just underwater, but now I am all for it. Throw off the chains, give it back to the bank, and I will be able to buy sooner rather than later.
Unless the actual holders of the mortgage paper get a real JT-ing, nothing much will change.
Jingle mail is a step in the right direction.
There’s something that doesn’t seem fair about how this is being handled. Some people in non-recourse states get to walk away and maybe even forgiven in their state on top of by the feds for the tax consequences. Others are in recourse states that don’t forgive. I guess that only counts on short sales for tax purposes, but some people end up owing nothing and others are on the hook for hundreds of thousands of equity that has gone down the tubes. It’s all FUBAR.
OK - so a 440k loan (assuming they put nothing down) at 6% is $2400 a month. Doable for a systems analyst and 3600 sq ft.
How’d the Sinclairs get saddled with a $4000 payment?
Isn’t that where the real story is?
You are forgetting the impounds, like taxes, insurance (mortgage and fire, maybe even earthquake), and HOA.
That alone will put in another $500-750/month.
I also agree with those that propose walking away. Why bother? Stick it to the fraudsters, er, I mean banksters.
Also, Ben, these numbers coming out of good ol’ CA are serious. That Palm Springs home was shaved 50%. That one in Silver Lake, is down 67%. Where is LA Investor Girl? I know she bragged about the Westside, but it is only a matter of time for that area and the mighty South OC.
Yeah, it’s different here!
The only thing different is we are seeing 50-70% haircuts while other parts of the country will not go that low. Heck, a bubble home for 100K would have to go for 30-50K to get that low. Don’t think it will happen unless those kinds of homes are real crapshacks.
RE: Heck, a bubble home for 100K would have to go for 30-50K to get that low. Don’t think it will happen unless those kinds of homes are real crapshacks.
If there is no job base for a given area why can’t housing values fall to $30/50k.
Northern New England has scores of former mill and mfg.’ing towns that are now inhabited by populations who’s sole means of existence is some form of government check.
With the cost of gasoline being what it is, these places are now essentially economically obsolete, because no one can afford the commute to more substantial employment bases.
My guess is we’re are on the verge of another “Oakie”s era.
That’s if anybody can afford a tank of gas to get them to TX.
I noticed that too and assumed that the Sinclairs had “made some equity work for them” during the boom, since they mention the rise in “value” from when they’d purchased. I’m sure there was a refi in there.
So they would be willing to pay the mortgage if the market didn’t go down - would they pay if the value was flat? How much would it have to go up in order for them to decide it’s worth paying the mortgage? And it seems to me that banks will catch on to this one and it will be just that much more difficult or expensive to buy a house.
I am sure that when their house was “worth” $600K, they pulled out some equity via a refi or HELOC. So they partied with the $160K of free money from the bank and now they’re living in the house for free. These are the victims that Congress wants to bail out.
Sinclair: ‘We would do it if the equity was there, but in a case where we’re already so behind… Imagine that for five years, say, we’re gonna pay four grand a month and then we’re just gonna be back up at what we bought the house for. We feel like we’re throwing away money.’”
So they are assuming the house will appreciate back to price they paid in five years - 2013.
Wearing a girdle? What is wrong with this woman? Get yourself moving instead of sipping fancy crap after loading yourself up with botox and whatever else. Upside down in a a house and thinking of plastic surgury. She needs a lobotomy.
Has to wear a girdle at 42 yrs old.Oh the misery of it, oh shame on me. Start working out bit-h, and jogging. Maybe she’ll get a new boy friend who will work it off her.
“The Sinclairs stopped paying their mortgage in October when the payment jumped from $3,000 a month to $4,000. Now they’re basically squatting in their own home, living there for free. Sinclair: ‘We had to start making some hard choices, which included going into foreclosure on our house and kind of starting again.’”
“Sinclair: ‘We would do it if the equity was there, but in a case where we’re already so behind… Imagine that for five years, say, we’re gonna pay four grand a month and then we’re just gonna be back up at what we bought the house for. We feel like we’re throwing away money.’
_____________________________________________________________
“Now and then it occurs to one to reflect upon what slender threads of accident depend the most important circumstances of his life; to look back and shudder, realizing how close to the edge of nothingness his being has come.”
Upton Sinclair
Very clever laddie; throwing in a quote from Upton Sinclair. You are a true scholar!
Good one, eh?
Bonus Upton:
“In the twilight, it was a vision of power.”
Another Sinclair quote:
“…“When facism comes to America it will be wrapped in the flag and carrying a cross.”
Of course, this is from Sinclair Lewis, not Upton Sinclair, but I have been thinking about it, now and again these days.
“And what’s been happening in Beverly Hills is apparently happening around the country. After years of steady growth, the cosmetic surgery business seems to be going through a rough patch.”
The horror! I predict a huge slowdown in sex because everyone will look so much uglier.
‘I would rather have Botox than go out to dinner’
After running this blog for a few years, I’m starting to think there is something odd about people in LA.
A lot more of of these so called “Home Owners” will be squatters…eventually.
I skip the twice a day visits to Starbucks that my co-workers make, and usually bring a sack lunch instead of going out to eat. The money I save completely pays for total land maintenance, manicured everything, etc. The place looks fabulous and I just have to make my own coffee and lunches. I guess she feels her face looks fabulous if she just skips going out to dinner enough to pay for her botox. More power to her if she can make that sacrifice.
She has not had the facial treatments in months.”
Anthony is the one with the frown now.
To me, some people are ugly, but it is because of the imperial attitude that they throw about, their lack of manners, and an an overall behavior that is un-feeling and un-sophisticated. No amount of painting and sculpting the outer shell will offset the fact that the inner energy is gross and heavy and thick.
I wonder how many people would get Botox if they just called it Botulism Toxin. Now that they show Botox goes from the face to the brain in rats, maybe it’s not such a bad thing that all these poor FB’s can’t afford their treatments anymore.
What was going through the mind of the first person to come up with this concept?
“Hey, I’ve got a great idea — I’ll inject poison into my face!!!”
I wish she’d botox her ovaries. We need less of these people on this planet. With so many retards like this living in the USA i’m ashamed for all of us.
Eh. It’s probably a no-brainer for her (pun intended). Lose some much un-needed body fat, as well as a few wrinkles.
By George, I think you are right Ben!
Ben, there is.
IT IS CALLED:
POSERS!
Not everyone, but sooooo many are only interested in how they are precieved by everyone else, instead of what is real life.
When we lived in LA the possers were more a source of entertainment to us. We lived our lives the way we wanted and hung out with like minded people and mostly just made fun of the possers. Cheap entertainment.
Trust me Ben, it isn’t just L.A. The entire nation is loaded with really strange people.
“‘I would rather have Botox than go out to dinner, but it’s just gotten so bad,’ said Anthony, 41, who is looking for a job since her career in the mortgage business went sour. She has not had the facial treatments in months.”
What a joke. These people are so screwed up. And it’s not just women. Anyone seen Kenny Rogers lately? Or how about Axl Rose? Bruce Jenner, anyone? These guys look like they’re wearing cellophane over their melon. They resemble shiny wooden dolls. The walking horror show is so absurdly twisted, it boggles the mind.
Naw…just some of ‘em. And the people doing the Hollywood thing, by and large, ain’t really from around these parts….
lainvestor girl was one strange cookie.
Sex won’t decrease, alcohol consumption will just increase. Seinfeld.
No offense to anyone overweight but one of the funniest bumper stickers I ever saw was, “You can drink an ugly girl pretty, but you can’t drink a fat girl thin.”
Beauty may be skin deep, but ugly goes clear to the bone.
– Redd Foxx
One of my good friends liked to say after a really ugly guy would try to hit on her at a bar “There’s not enough alcohol in the whole world for THAT.”
brown bags always worked for me.
I dunno…but brown paper bags always did the trick for me.
Wait, what was the second brown bag for?
In case someone came to the door.
In case the first one falls off…..
I don’t hold it against these women for getting plastic surgery. If you think about it, it is their men who only go for airbrushed, peroxidized barbie dolls with impossible anatomies who are driving this trend.
Look at all the teenage boys who mercilessly put down girls who aren’t ‘perfect’ and the only women they find attractive are touched up pictures on the Internet.
Just think just how decadent we have become as a society.
Then, no offense, the girls need to learn how to cope.
This is no freakin’ excuse. In fact, thsi is the dumbest thing I’ve heard.
Not dumb at all: The girls have learned how to cope…by getting plastic surgery and spending hubby’s equity. Didn’t you read the article?
It’s symbiosis.
Well then, they’ll just have to learn how to un-cope.
And the man might just go off with the younger model anyway.
Their meal ticket has flown away.
When did women become so desperate to get and keep men, particularly women who are old enough so they don’t have to find a good father or provider? I’d rather be poor and alone than miserable with a partner.
I went to meet with a real estate agent who was about 25. On his wall was a picture of Donald Trump with 3 young “ladies” wearing bikinis. I asked him what the story was with the Turmp picture and he said that one of the ladies was his new wife. After that I decided I couldnt take anything he said seriously.
Ew. If that were me, I’d keep that kind of stuff very private.
So who wants a teenage boy? They’re “boys.”
Real men appreciate real women - no airbrushing or botoxing…
LOL!
“Every six weeks or so, as a kind of personal morale booster, she and a group of girlfriends would make appointments to see a Beverly Hills plastic surgeon for little touch-ups.”
I can’t even fathom the shallowness, stupidity and banal character of these Calif. twits. Holy Christ.
DOC
I sorta kinda know of one of these surgeons in CA. Her income has been slashed radically.
Her kids (sponges basically) have been cut off. Fun times all around!
Glad those kids/sponges get their ‘wake up call’.
Like I mentioned last week, 2 mds told me their lease was going way up and not coincidentally their patient load seems to be dropping, 2 of ‘em took the morning off. Cancellations.
Don’t think they’re waking up to anything. They (the kids) are still parroting the mantra, “Oh this is all temporary. California houses only go up, etc.”
Fun, fun.
I read somewhere that 15% of all plastic surgery in the world is performed in SoCal. This trend could collapse the economy on the Westside. $200k Beverly Hills mansions for everyone!!!!
“I read somewhere that 15% of all plastic surgery in the world is performed in SoCal. This trend could collapse the economy on the Westside. $200k Beverly Hills mansions for everyone”
The center for cosmetic /plastic surgery in beverly hills is a small area near Wilshire and Santa Monica blvd. Lots of rich BH ’s doctors offices as well as major westside banks located there. BH’s is all about rich doctors, banks, and lawyers offices .
Betcha she doesn’t have a dime saved for retirement either.
Silly you. Her touch-ups were supposed to be the basis of her retirement!
Where do I even begin with this insanity?
The older I get the more I realize that so much of the economy is just craptastic sh!t we sell each other and using debt, to top it off.
2/3 of the world starves and/or is jobless everyday and here we have Botox addicts inc. Okay, okay, I collect sportscards and other things. However, plastic surgery touchups is just insane.
Now, where are those phone numbers to the local candlemaking store and the lady who teaches (s)crapbooking?
Just check out what you really do need to survive. Then, add in a few things on top to be happy (whatever floats your boat), and you’ll see how little it takes to get there.
The economy has always been all smoke and mirrors as long as I have been alive.
I never know which to marvel at more, the fact that in this country people can SELL just about anything or the fact that people will BUY just about anything. I guess it takes both to make the money go round…
“Sell them their dreams. Sell them what they longed for and hoped for and almost despaired of having. Sell them hats by splashing sunlight across them. Sell them dreams - dreams of country clubs and proms and visions of what might happen if only. After all, people don’t buy things to have things. They buy hope - hope of what your merchandise will do for them. Sell them this hope and you won’t have to worry about selling them goods.” unnamed business promoter 1923.
I agree with you. I was driving around the area just north of “downtown Disney” in Orlando today and despairingly wondered if anyone there had a job that didn’t involve retail, real estate, or working at an amusement park. Some parts of town look as if they are coming off a Dubai-like building spree.
I have occasionally considered Botox but I figured it costs too much. Maybe if the cosmetic surgeons get hungry they will offer discounts! Will check it out…
Please don’t, az. You’ve gotten along this far without it, why risk any semblance of permanent damage? When I first heard about this many years ago, it just felt very wrong and dangerous (injecting botulism in my face??). The benefits are temporary, but who knows about the real dangers of long term use? I consider the people using it now are the guinea pigs. They are the early adopters, and personally, I don’t buy first generation anything. I wait until the early bugs have been worked out.
Please think long and hard.
BayQT~
An why spending your energy caring about how you looke beyond healthy and happy? And I don’t get this what’s wrong with someone wanting to look their best idea so they can feel better about themselves. I thought the way to feel better about yourelf was to be better and do better and build a real and deserved sense of self respect. I just don’t care what anyone else thinks about how I look or trying to fool anyone into thinking I’m any certain age.
Ok, the one thing you never go “discount” on is plastic surgery or any kind of surgery for that matter.
Breast Enlargements
Buy Two Get One Free
Only for the mathematically challenged
A friend got laser eye surgery in Tijuana at 60% off the California price. I was horrified, but it turned out OK for her.
Latest study from earlier this week found botox gets in your brain. Your Brain!
http://www.bloomberg.com/apps/news?pid=20601103&sid=a4B_t.tm4Kpc
don’t do it
So do cell phones, so I’ve read.
For some like az_l with a good brain it pays to wait; for many others it’s not clear it matters much.
So does alcohol, I’ve found.
“‘If we weren’t upside-down in the house, I probably would take the money out and have it done,’ said Hollingsworth, ‘I’ll have to see how long I can tolerate wearing a girdle.’
She’s 42 and needs a girdle? How about changing your eating habits, buying a treadmill and using it daily, and taking some responsibility for health. My goodness, what a spoiled, self indulged brat she is.
I’m older and wear a size 3. Really not that hard, really.
Have you ever noticed how bad people look after too much plastic surgery. They start to look like characatures of themselves.
…tolerate wearing a girgle.
Hahahaha. They have a financial girdle tightening more and more every day.
Maybe tht will be the new bubble. Lowtech versions of plastick surgery. Girdles, corsets etc. Although as everyones standard of living goes down maybe she will slim down through walking to work, or the food pantry, or picking up cans on the side of the road. 20k for elective cosmetic surgery? arrrrhhhh
Heh, girdles, eh….? Well, I say we do one better and all pitch in and buy this lady and her gal friends a chastity belt to prevent them from having kids….
It’s not just for ladies anymore…
http://www.morrisdesigns.com/gv.htm
“I’m older and wear a size 3. Really not that hard, really.”
In fairness, if you read the article, she lost 150lbs, and has a lot of extra skin. You can see where that would be unattractive. The effort has got to be the same as an alcoholic who’s sobered up, or a junkie who’s cleaned up. So, cut her some slack.
Ok, my apology for being so harsh.
She lost the weight with gastric bypass surgery, not with diet and exercise.
Perhaps if she had lost the weight non-surgically, she wouldn’t have so much excess skin and “need” more surgery?
Or, she could have dieted and exercised and lost the weight for free. Then, with the money saved on gastric bypass she could have the excess skin removed.
Whatever. Seems like she’s addicted to food AND spending.
She was 300 pounds, so the skin would be very bad.
And anyone who’s willing to have half their digestive tract cut away, and to live on 1/2 a cup of food a day for the rest of their life has probably already tried diet and exercise.
You have got to be kidding, right? cutting her slack??? HA! She is cutting herself some slack. think about it… from one access to the next. When is cali going to fall off anyway?
Where have you been? Haven’t heard of Spanx? Women are back to wearing all sorts of contraptions again. I can remember my mother wearing a girdle or get this - what they used to call a merrywidow. I knew I never wanted to care enough to go through the discomfort of those things.
I’d dump that self absorbed bimbo in a heart beat… Of course I would have never married her in the first place, plastic is easy to spot.
Have a friend who imho is getting way to much done for 2+ yrs and SHE forgot our cocktail rendezvous. It must be the botox, cause this gal wouldn’t ever forget a cocktail rendezvous.
But she looks good.
“I’m older and wear a size 3. Really not that hard, really.”
Ok. I’m jumping in here, too. This is mainly informational. Everyone can benefit from changing eating habits and adding exercise, but not everyone can (or should) be a size 3. I’m not a BBW nor a teeny tiny, but I do know that lots of things come into play regarding size ….genetics, height, frame. In fact, the US is notorious for vanity sizing. 30 years ago you couldn’t find a size 0 or 00, but they are all over the place now. What was 3 or 4 then were probably the current 0. Some interesting info in the links below.
http://en.wikipedia.org/wiki/Vanity_sizing
http://en.wikipedia.org/wiki/US_standard_clothing_size
Anyway, there you go. My 2 cents. (sorry if this is a double post)
BayQT~
Actually, when I’m at a healthy weight I wear a size 10 or 12. The hips, they are wide, and the bottom, she is big.*
And I’m five inches over the average height too, so that comes into play. People still tell me I’m thin so it’s not the clothing size that metters.
*I spent a year or so just out of college where I was underweight due to financial hardship, so I can truthfully state that they Will. Not. Shrink.
Guess I can count myself lucky. My weight goes up, my weight goes down but the shape remains the same! Just have to keep a couple of sizes of jeans around. (Yes, I know that it’s not optimal healthwise, but wtf can you do? I oscillate about the mean.)
I oscillate about the middle, myself.
Obviously, if spoiled rich women are resorting to *girdles*, we need legislative action in Washington D.C. NOW.
Touché’ sir..
I am literally speechless after reading this. The vapid shallowness of these women is staggering. Lord help us if this really is the norm for the area.
I am recently divorced and these women are all thats out there it seems. I don’t even try to date anymore I don’t want to take on somebody elses bad debt or credit. Living alone sucks but being with one of these shallow souls is much worse.
It’s better to be alone with yourself than alone with somebody.
Amen Lost.
After seeing your website and where you live, it wouldn’t matter if ‘you’ had a warm body next to ‘you’, the views are incredible and a dog would work just fine.
Lost,
just spent some time on your website…loved it. Beautiful job, beautiful place to live, and great dogs. Who’s Archy’s pal?
No name?
A cowboy ain’t happy without lonesome…
Thanks, Des. This country is awesome. (More slideshows next week.)
Hey, Spike, Archy has a pack-o-pals! All rescues from around the country: Spanky (Moab), Blueeze (Ridgway, CO), Moki (Jackson, CA), and Jasmine (Kanab, Utah). You’ve not lived till you’ve run wild in the desert with a pack of wild and crazy dogs (check out the Desert Dogs slideshow on my site for a typical day out here). We dig the desert! Thanks for the good comments! We dig Ben, too!
Wild & crazy - just about sums up the Blue Cattle dog!
Lost, seeing that you appear to appreciate fine Australian canines, keep on the lookout for a Red Cattle Dog, or the ever so rare Stumpy-Tailed Cattle Dog.
Google it, and you will be amazed… the tails aren’t docked, they grow like that!
These dogs need a BIG area to run around in, need lots of exercise, and can’t quite be trusted (I still bear the facial scars of a little “nip”), so they certainly aren’t kid’s dogs.
However, excellent companion/working dogs. Enjoy them - a friend for life.
My divorce lawyer friend (a great guy actually, who is not a slimeball) always used to tell me when I was single: “You may really want to be married, but I see people all day long who really want to be single.” Sobering.
Caution!
It’s shallower than you can ever imagine out there…
People drowning in debt, as a result.
See Me-Dig Me
My wife is an accountant, so that wasn’t a problem. She keeps my hobbies in check. Always reminds me that since I am a librarian I should use the library services more, instead of buying books. Hard, I am a book lover.
Still, nice to know that our one and only CC is paid off every month and that there is no other debt in our lives.
There is nothing like the feeling of being debt free! It’s infinitely better than that feeling of “buyer’s remorse.”
I don’t think it’s quite as superficial up here in Marin as LA / OC, but it’s a very serious problem up here as well.. we’re just not as close to Hollywood, that’s our excuse..
I came to Montana in 1975 to get away from SoCal. My best friends were trying to break into the Biz, and were obsessed with looks and comparing themselves. Most people I knew were name droppers, hangers on, everything revolving around show biz like there was nothing else in the world. There were other things there, great things going on - the universities and other industries - but I just couldn’t get away from the show bizzy side enough.
Getting away was a good move on my part.
Vapid shallowness. So true. Just as the days of Noah were…
I’m watching a cheesy sci-fi movie right now. “10.5″.
Plot: “The entire city of ‘Browning’ just disappeared” (swallowed by the earthquake fault line). Population 2477…
More than that is happening in Fresno alone! I’m on these blogs too often when everything reminds me of the housing market.
Got Popcorn?
Neil
That’s because we see the housing meltdown as metaphor.
The southern end of the San Andreas is overdue for a major quake, meaning it could go soon or not for another 25 years. Let’s say it were to rupture soon on a stretch near San Bernardino. How many damaged houses in the Inland Empire and in the Victorville area would end up abandoned and eventually bulldozed?
“The southern end of the San Andreas is overdue for a major quake, meaning it could go soon or not for another 25 years. Let’s say it were to rupture soon on a stretch near San Bernardino. How many damaged houses in the Inland Empire and in the Victorville area would end up abandoned and eventually bulldozed”
Three major catastrophic events could put the coup de grace on the LA bubble decline and turn it into a collapsing smoking heap of rubbish:
1 7-7.5 earthquake
2 LA City Race Riot
3 terrorist attack
The chances of any one of those events happening next three years is 50%.
In event of a major quake leveling the IE U will see all those cheaply-built mccrappers collapse like matchsticks
peter m,
That sounds like a subjective assessment of probabilities, do you do risk analysis for a living?
“Edwin Beeks, retired from the U.S. Navy after being wounded in Iraq, picked up a four-bedroom ranch house in Lancaster, Calif., with a bid of $95,000. The previous owner paid $255,000 in 2005, borrowing 95% of the purchase price from a subprime lender.”
he’ll need that Iraq training out there in the desolate wasted windblown Lancaster desert flats, with similar dangers lurking from assorted desert crazed loonies, transplanted inner city gangstas,, methheads, jackbooted skinheads, ect.
This buyer maybe needed terrain and conditions approximate to Iraq to re-adjust back to civilization.
I think they should just give these foreclosed outer hi-desert properties out in the remote boonies for free to vets. They are down to under $100,000 anyway and there will be ton’s of abandoned gutted properties left to rot in the hi-desert anyway next 3-5 years.
I assign probabilities to those events at 3%, 2%, and 1%, respectively, yielding a joint probability (sorry, forget the statistical term) of ~5%. To get a 50% chance of occurrence would require 1-in-5 odds for each. Get real.
Peter m said:
2 LA City Race Riot
Nitpick, it will be an old fashioned working class riot. The tension between the Mexicans and those of African decent isn’t so much race, but about economics.
This goes into education (both opportunity and the value placed upon it), transportation (cost in time and money to job centers) , and a bunch of other factors.
Did I mention I’m into infrastructure development and not handouts? One draws business. The other scares it away. I consider education the most valuable step in infrastructure. Yes… I’m overeducated for my job. Cest la vie.
Got Popcorn?
Neil
1) The earthquake would have to be much stronger than that. Historically, EQ did not kill many people in USA as someone would think. The only exception was SF in 1905. Large EQ like 1926 in Santa Barbara on Charleston in 1880’s had killed less than 500 people. San Andreas in actually east of LA, the earthquake would have to occur 80 miles west from it to hit significant concentration of population.
Either way, I consider LA as one the ugliest cities in this country and it has implausible Third world feel. Take out the mountains and subtropical climate, and what is left is monotonous, poorly constructed, and extremely unkempt suburbia. Actual physical damage to the city would be improvement.
“The earthquake would have to be much stronger than that. Historically, EQ did not kill many people in USA as someone would think. The only exception was SF in 1905. Large EQ like 1926 in Santa Barbara on Charleston in 1880’s had killed less than 500 people. San Andreas in actually east of LA, the earthquake would have to occur 80 miles west from it to hit significant concentration of population.”
Major 8.0’s along san andreas fault occur about every 100 -150 years. last really major 8.0+ was the 1850’s fort tejon quake about 60 miles north of LA , but Area waS unpolulated. The GREAT Owens Valley quake of 1870’s was an 8.0+ and was on a major offshoot fault line running along east side of Sierra nevada but also in unpopulated area.
The next big quake will come from a subsidiary offshoot fault running thru la basin such as the sierra madre fault, newport beach fault, or Santa Susana fault. It will most likely be centered in East San fernando valley, the scene of the last two EQ’s of 1971(sylmar) and 1994(northridge).
The great 1933 Long beach EQ was caused by slippage of the newport/inglewood fault just off the pacific ocean. these fault lines may be small in size compared to the San Andreas but a 6.0/7.0 EQ along these faults would do a lot of damage due to close proxmity to the major urban centers of LA.
Falut lines running thru LA basin may lie dormant for 100’s-1000’s of years before slipping. There are 100′’s of these dormant faults crisscrossing LA basin. All of them are in some way off- shoot subsidiary branching faults off the great San Andrea trunk fault, but many of them could snap and create 7.0’s of their own accord.
I hope you were enjoying some good popcorn during the movie, Neil.
“‘Much of the news has been (about) overlevereged companies and individuals and the pain is primarily (happening to) those that overspent and undersaved’, said Bennett, who works in the retail industry.”
Bennett may soon discover (alas) that the money that used to come from those who “overspend and undersaved” was fed into the retail industry.
This was the money that provided her a job.
Things that are hard to miss:
800 pound elephant in an apartment
67,000 jobs
______________________________________________________
“The economy also lost 67,000 more jobs than originally estimated in January and February, bringing the first-quarter total to 232,000, the Labor Department report said Friday.”
I think the phrase is “800 pound gorilla,” because adult elephants weigh three to six tons! But your figure is “close enough for government work.”
It’s early in the game and I expect the the elephant to outgrow it’s apartment…
It’s just a “hedonically adjusted” elephant.
Elephinks are cute.
Foreclosuregeist
“Vigeland: ‘Are these foreclosure here?’ Fiddler: ‘That one is, that one is, this one next door, that one there, so yeah, we’re pretty much surrounded.’ Kathy Fiddler: ‘Kind of a little ghost town… little ghost street.’”
Classic, aladinsane, classic.
How did everyone miss it?
Wow, a lot of Schadenfreude going on in the comments section. Have you people no mercy on your fellow man?
I care about the 200 or so people in my life, everybody else is just a passing vein of human flotsam and jetsam that shows up on my computer screen to be mocked, whenever possible.
I suggest you look in the archives from a couple years ago to see how much mercy was showered on all the “jealous bitter renters” here.
I am a lifelong renter who wants to move into the housing market. I found this blog about 6 mos ago and made the mistake in one of my initial posts of saying that things weren’t that bad yet (because my city was one of the last for the bubble to pop, and I was naive).
Man it was *unbelieveable* the names I got called and the nasty welcome I got on this blog. But then I realized that people here actually missed these legendary real estate agent trolls so much they were finding them among any noobs who were suggesting the entire country was not as bad as CA of FL (it’s different here!).
There are a lot of smart, but mean people here. Luckily, there are a lot of smart cool ones too and that’s why I keep comin’
Surely you jest. I try not to have too much mercy on people who, through their own fault and folly, create their own hell. It just makes matters worse and reinforces their self-perception as a “victim,” which is an absolute insult to those who are truly victimized.
A majority of the people “suffering” are doing so only because they were spendthrifts, undisciplined and/or greedy.
I don’t know if you’ve been around this blog much, but I’d say the Schadenfreude for this thread is below par. Heck, Sammy Schadenfreude hasn’t even commented on this thread.
I saw a gleaming, giant Hummer yesterday (here in O.C.) with a personalized license plate which (translated) read, “One Mile Per Gallon.”
Is this Larry Kudlow?
Every time I see that man or read his name, I’m reminded of the Godfather scene in the car after the meeting w/the 5 families when Marlon Brando called Don Tatallia “a Pimp”.. Kudlow is nothing more than a Wall Street Pimp (probably with a cocaine addiction to boot)..
aladinsane:
There were similar job losses in 1991, 2001, what’s the big deal? Recessions happen, all we need is another infusion of easy credit and easy times are here again!
Easy, isn’t.
Yes, recessions are natural part of the economic cycle. However, I believe that we facing one the gravest recession in postwar history where USA is the epicenter of it. We have falling dollar, debt beyond repayment, two wars, shrinking tax base, aging population and unfavorable demographics, and completely incompetent government that does not see or acknowledge all these problems. With McCain coming as a president, who completely wants to continue old, failed policies; I do not see the future positively at all. So far, FED proposed bailouts to banks, and dimness the real economic picture with this country. Government interferes with market forces, creates completely unpredictable economic conditions. All government meddling is contra-productive, look how the state sponsored socialism ended in Europe. We do not have yet any central planning committee, five year plan, and nationalization style of failed companies like British Northern Rock. It seems we are heading that way.
A little Botox will make that rough patch look new again…
“And what’s been happening in Beverly Hills is apparently happening around the country. After years of steady growth, the cosmetic surgery business seems to be going through a rough patch.”
One of the things I find fascinating with the unraveling of this mess is all the collateral damage it has created…. I shorted TMA & CFC as no brainers a while ago (but closed out too soon!!) and also knew all the secondary love me & my lifestyle businesses were in for a bruising as well so I shorted HOG and HZO (bikes and boats) last summer too, but, dang it, I missed the botox plunge.. not sure there was a good short there anyhow, but it ain’t over yet either.. I do like the notion of going long on brown bag manufacturers however… I think Amazon will do okay through it all as these scaled down stay-at-home dolls will be more inclined to shop online now vice showing their wrinkles and sags in public… oh, the horror !!
Potemkin Village Idiots
A two-bedroom cottage in Los Angeles’ trendy Silver Lake neighborhood that had traded hands two years ago for $887,000 got picked up for $285,000.”
Whats up with SL. All i hear is that is a gentrification hotspot and a trendy, upscale, LA major hot zone for trendy yuppies, ect.
That $285,000 is a major major reduction, though it must be a really puny 600- 800 sq ft early 20th cent crumbling REO fixer.
I don’t buy that gentrification(GF) argument for SL-i believe there will be some reverse GF in many older areas surrounding the LA dwtn which may have been on the cusp of GF but may backslide with the coming severe recession/city/ state budget woes, problems with idle gangs and illegals made worse by recessionary job losses.
I used-home shopped in Silverlake in 1999. If it returns anywhere near that status, I would steer clear. Think “The Shield” neighborhood (though I believe “Farmington” is based on Echo Park/Rampart area).
Parts of Silver Lake have nasty freeway exposure and creeps, but other parts have lots of fixed up homes with views. The gentrification is real. Before people started improving places it was mostly dumpy all around.
Just to say that silverlake in the late 90s had a lot of really Fed up areas. From what I’ve seen lately it looks a lot better lately, but go a little farther east and its trying to gentrify but still sucks. I can’t wait to see the suckers that paid 850k for those post war 900sf crapshacks bend over. Such pompus asses. I’ve seen some flip houses already deteriorating.
Ben, you really must love the California thread every day.. it’s a sad and predictable commentary on this whole mess..
That’s because Californian economics is a freakin’ mess, and there’s no way to convince people of it either.
Actually, I like our Governor.. everythign in his life (fat cigars, harleys, million dollar homes, big rings, Botox bride, $200 shades) are advertisements for potential stock shorts.. Hell, he’s a walking short ad..
“I would rather have Botox than go out to dinner”
Either Botox is highly addictive or vanity is a progressive mental disorder…
Went to look at a house today… not going to buy.
Getting a feel for things in the bad part LA southbay. Still 500K asking price for a hood house. Nice house but on a unpaved side street with major potholes. The houses on the street surrounding it were vry small (
Re: The Botox discussion. I once got stuck by a bee on my John Thomas. I went to the Dr’s and asked him for something to take away the pain but leave the swelling.
(actually an old joke…)
“John Thomas”? I’ve never heard that one before. Is that a Texas thing?
Monty Python’s Meaning of Life, specifically Graham Chapman
btw: I’ve been monkeying around with a blog and realized I’ve posted wrong link in my URL. Nothing (well almost nothing as I did a post very early on) to do with housing. ! It is travel related.
I drove through Marina Del Rey yesterday, the home of my stored possessions for the last 2.5 years. Near to my now-former storage facility (on Del Rey Ave), they built some condos on a former industrial area home mostly to storage units and tow lots. Not the most ideal location, but perhaps time and development will morph the area into a real neighborhood. MDR does have some great areas.
Anyway, saw two of the best sign twirlers so far. I would have to say they are nearly as good as the San Diego twirlers. I wish I had video. For those of you who have not experienced the California sign twirler, it is quite the talent.
Agreed. Some sign twirlers should be on TV.
I saw them too, on Lincoln, right?
OT: Just caught this on the way home. Haha!
http://i117.photobucket.com/albums/o72/muggyFL/CWB.jpg
“Demand low home prices” yeah, I like it!
I just got back from Baskin Robbins because I had to have a sundae to make me feel better. We went to the Tri-City Animal Shelter to save one of those foreclosure cats, and were told that we had to either be homeowners or get permission from the homeowner before we could adopt a cat. So they’re just gonna kill the cats instead of giving them to a renter, becuase you know there aren’t any landlords who would give a note like that. The homedebtors are the most likely people to bring the cat back. They are the ones causing the problem! Poor little foreclosure pets; they’re being murdered needlessly.
Are you aware that Txchick is very active in rescuing pets?
I have a topic for Californians to discuss, and i intend this as a serious discussion. What will the state government likely do to close its 10% (and growing) budget deficit? Not what they should do, but what is likely outcomes? Will it be tax hikes on high warners? More fees and penalties? Cutbacks in state services, which ones? Will these changes make california unliveable, or just be minor annoyances.
Here is some of what I expect, based on past state actions. Year one, lots of new bond issues to put off the pain one more year.
Democrats will want to increase taxes on high income earners, republicans will stop this, but expect gridlock in the process. Look for more backdoor tax increases, more agressive phaseout of deductions, more agressive state AMT tax, more fees for late filing and late payments.
More fees and penalties on everything. Traffic, parking, auto registration, state parks. Last recession, speeding tickets went from $100 to $271.
Taking earmarked money for the general fund, education money, transportation earmarked funds. Look for a freeze in new highway projects and this money transferred to the general fund.
Lower reimbursements for Medical? More beaucratic hoops to get reimbursed so that doctors will give up trying.
Library closures? Community college closures? Hospital closures? Freeze on police and firefighter hiring?
A call to relax proposition 13 limits to property taxes; probably never happen, but now would be a good time for tax-happy polititians to try.
Would california really become unlivable, or will we muddle thru like in past recessions?
David,
Suggest you repeat your post in next week’s “Weekend Topics” call, rather than let it die at the bottom of this thread.
That subject is worthy of its own thread IMHO.
I agree. Folks will really get out there and try to fix the unfairness in the property-tax system (federal deduction and Prop 13), but the old geesers will stop it. We’ll end up cutting basic services even more, and that will cause people to leave the state in large numbers. California is going to lose it’s status over the next few years, and will try to compensate for it by raising fees on everything. This will not be easy for anyone.
Red light cameras at every intersection? Speed limit cameras? Until now these have been installed to encourage safe driving. When times get tight these will be seen as cash cows. Like slot machines that payoff for the local governments.
I’ve been wondering if they’ll cancel dental and vision benefits from their health insurance plans.
Traditionally the state government takes money away from the counties and cities in recessions to balance their budget.
Starting to hear a lot of of the “D” word on the lips of regular people……
“‘Recession? Phooey,’ said Rebecca Robins of Oakland, who routinely hears stories about lost homes and jobs from clients at her veterinary clinic. ‘If we don’t slip into a full-blown depression, we are going to be very, very lucky.’”
Will there be an update to the Credit Suisse ARM reset chart? It’s been a year.
yes,
Double Dip Deflationary Deleveraging Decision
it comes with slice of inflation, yummy.
I picked it up on sale at Wal-Mart. If I start leading out, is that double plus good systemic risk? Voz wants to be happy, not sad. I dont like the hard talks, but they are necessary for the greater good.
Just need $3 trillion infusion of credit to prop things up for another 2-3 years, come on Bernake…
Comment by robmypro:
“The entire nation is loaded with really strange people.”
LA has no lock on weirdness. I’ve lived in many parts of this county and it is everywhere I’ve been. It’s been more in vogue than ever to hear cash-out transplants bad-mouthing their departed western environs for the simpler life in the south. I cringe when I hear people wax poetically about their newly discovered “southern charm” (which goes about a cm deep and after that it’s superficial). Having been there done that (Georgia/Carolinas/Virginia) - I have to stifle the urge to burst out laughing like a maniac. Give me the southern wit of Roy Blount Jr. and Brunswick Stew and you can have the rest.