The New Market Is Here To Stay In California
The Desert Sun reports from California. “A Palm Springs home known as a masterpiece of modernism sold Tuesday for $15 million. In the end, the famed house underperformed a bit. Christie’s New York, the auction company, initially believed the house would bring upwards of $25 million. During the bidding, even the auctioneer seemed surprised. ‘We’re at $15 million. Fair warning, now, $15 million,’ he said, taking long pauses as if waiting for an onslaught of additional offers.”
“‘It was very intriguing,’ said Eric Scharf, a new resident to Palm Springs. ‘As a semi-student of architecture, I’ve known about it for years. (The low bid) was surprising.’”
“‘Everyone was a little surprised,’ said Bob Bogard, director of marketing and communications at the museum. He said it’s being a house may have influenced the bidding, considering it would require additional expense for upkeep. Still, the audience was disappointed by the outcome.”
The Daily Bulletin. “Six California areas top a nationwide monthly foreclosure report published today, and San Bernardino and Riverside counties rank right up there with the rest of them. The number of California foreclosure filings has more than doubled since April 2007 to almost 65,000.”
“‘That’s really all we’re looking at lately is bank-owned properties and short sales,’ said Jack Ritoli, broker (in) Chino Hills.”
“‘The foreclosure is a thing we have to get used to now,’ Ritoli said. ‘A lot of people moved to the Inland Empire from L.A. and Orange County, but they bit off more than they can chew.’”
The San Gabriel Valley Tribune. “Chris Vigil, a broker and licensed appraiser in Santa Fe Springs said the foreclosures resulted from subprime loans issued in 2003 and 2004. He said we’ve yet to see the consequences of subprime loans from 2005 and 2006.”
“That means high foreclosure numbers will be the norm for some time to come. ‘What waters everything down is the sheer volume of foreclosures, shortsales and REOs,’ he said.”
“Industry analysts and Realtors in the Southland seem to have adopted a ‘get used to it and acclimate’ mantra when it comes to the current housing market.”
“‘This is the new Inland economy we have to work through,’ said Steve Johnson, director of the Southern California region for Metrostudy. ‘It’s not going to be short in duration. It’s something we have to experience for many quarters ahead,’ he said.”
“Vigil agreed and said the new market - with plenty of supply but fewer qualified buyers - is here to stay. ‘The agents have to adjust,’ he said.”
“Johnson said the Inland Empire is experiencing more than just depressed real estate values. ‘One of the more significant spin-off problems for high growth areas is the fact the national retail chains and restaurants are stopping any projects they had planned,’ he said. ‘So you’ll see this wonderful expansion come to a screeching halt. We are already seeing negotiations stall and stop in commercial centers.’”
The North County Times. “North County foreclosures reached a new high in April, and a forward-looking indicator suggests that the region’s foreclosure crisis will not be going away soon. For the fifth straight month, the number of homes entering the foreclosure process surpassed the number of homes sold.”
“‘This is a slow train wreck that we’ve seen coming for a while,’ said James Hamilton, an economics professor at UC San Diego. ‘And the more homes you have for sale, for whatever reason, the more that depresses the price. I don’t think there’s any way to slice that and come up with a different conclusion.’”
“Local politicians, teachers and lawmakers are bracing for the delivery Wednesday of what is expected to be the worst state budget news since a $38 billion gap triggered the ouster of former Gov. Gray Davis.”
“‘Here we go again, yet another budget crisis,’ said Shaun Bowler, UC Riverside political science professor. ‘It’s back to the future.’”
“The only suspense is the degree to which the news will be bad, said Jack Pitney, government professor at Claremont McKenna College in Los Angeles County. ‘The big question is whether it is going to be horrible or just bad,’ Pitney said. ‘Good is not an option.’”
The LA Times. “Bonnie Cooper has seen plenty of slumps since she began selling furniture in 1968, but nothing like the scene outside the window of the Ontario sofa store where she now works.”
“‘It’s scary out there,’ said Cooper, a saleswoman at Salmo’s Custom Sofa. ‘I think this is the tip of the iceberg — there’s more to come.’”
“Cooper said she noticed traffic in the parking lot begin to fall off about three years ago, about the time the housing market began to soften. She sensed Levitz was in real trouble last year, when ‘they would run a humongous ad and [the turnout] would be pretty sparse. People were not responding,’ she said.”
“Acting at the request of the politically powerful real estate development industry, Orange County has agreed to postpone collecting fees for housing construction projects, without any analysis or discussion about the effect it will have on the county’s finances.”
“County officials and building industry representatives characterized the measure as an effort to help builders hit by the credit crunch and the real estate downturn to get projects off the ground.”
“One supervisor, however, questioned whether it would stimulate growth and another critic dismissed it as a favor to the building business.”
“Asked why there was no financial study, which is a common facet of virtually every proposal that could affect county finances, Tim Neely, director of planning and development services, said: ‘We weren’t asked to analyze the fiscal impact.’”
“Though it passed unanimously, one supervisor questioned the proposal. ‘To approve it as a stimulus package — I don’t know if that’s appropriate,’ Supervisor Chris Norby said.”
“Darrell Nolta, a close observer of county government, criticized the move as a favor for developers. ‘There are many, many people who need to be helped’ because of the economic downturn, Nolta said. ‘Not the builders.’”
The Bakersfield Californian. “The houses look clean from the outside. But the insides of Bakersfield’s foreclosures can be filthy and trash-strewn, a perfect playground for pests.”
“‘They’re just thoroughly infested with roaches, with rats, with black widows,’ said Jared McCaa, who owns Bakersfield’s TMC Pest Management. About one-third of the bank-owned homes he’s hired to treat have serious pest problems, McCaa said.”
“‘We have some (occupants) who leave the house a mess and pests just gravitate toward it,’ said real estate agent Fabiola Delgadillo. Many repossessed houses sit vacant for months before banks dispatch a real estate agent to prep them for sale.”
“‘By the time Realtors are able to go in … it’s not very pretty,’ she said.”
“McCaa recalled one Oildale job where neighbors came out upon his arrival, furious that pests from a foreclosed home were migrating into their yards and houses. ‘They chewed my ear for the better part of five minutes,’ he said.”
The Mercury News. “The stagnant housing market took a toll on downtown Livermore this week, as a developer scrapped ambitious plans for a large-scale mixed use project at the former Lucky’s shopping center. Despite a lack of funding to continue with the project, Anderson Pacific found a willing buyer for the 5.4-acre lot just behind downtown: the city of Livermore.”
“Anderson Pacific bought the land in 2005, mostly using an $8 million loan from the city. When the housing market crashed — killing the developer’s ability to raise money for construction — it looked like the developer would default on the city loan when it came due this week.”
“Instead, the city agreed Monday to buy Anderson Pacific’s remaining interest in the site for $2.1 million.”
“Former Councilman John Stein said he would have rather seen the property go into foreclosure. ‘They could have just taken over the property and saved $2.1 million,’ Stein said. ‘And if they own it, how are they going to find a buyer? The developer couldn’t find one, so chances are the city won’t, either.’”
“Project manager Eric Uranga added that because of equity remaining in the project and the fact that the developer has already completed costly design and entitlement work, the site is worth more than it was when the process started.”
“Stein was skeptical. ‘That’s an amazing thing,’ Stein said. ‘It’s probably the only place in all of California where the land value has gone up.’”
The Santa Cruz Sentinel. “In Santa Cruz County, April saw a 50 percent jump to 113 single-family home sales from 75 in March, according to Gary Gangnes of Real Options Realty. The median price remains $100,000 below last year’s median.”
“‘I think we’re bouncing off the bottom,’ said Gene Harding, a real estate agent with Bailey Properties. ‘The bulk of the sales [in Watsonville] are bank-owned properties. They’re coming on the market at prices where people say, ‘I can do that.’”
Inside Bay Area. “Red ink mounted at Sterlent Credit Union during the first three months of 2008, and the credit union said it is working with a possible partner to help address its financial woes. In recent years, Sterlent embarked on a program to sell home equity lines of credit to its members. But the crash in residential real estate caused many of those loans to fail.”
“‘Like many other financial institutions in similar situations regarding delinquent loans secured by real property, we continue to work with these member borrowers and under full guidance of our regulators,’ Sue Raines, CEO of Sterlent, said in an e-mail response to questions from this newspaper.”
“Pleasanton-based Sterlent reported that it had $3.1 million in delinquent loans at the end of March. About $2.9 million of those delinquent notes were adjustable rate real estate loans, according to the quarterly filing.”
East Bay Publishing. “‘The pear trees were so elegant, before all the development. All the subdivisions.’ The Lady Friend who has lived in northern California many more years than me, was speaking of Brentwood. What prompted her comment was a front page story in Sunday’s San Francisco Chronicle. ‘Brentwood: Boom to Bust.’”
“In the evening of that same day the Lady Friend and I met an engaging but troubled young couple at a Mother’s Day party. The husband was a small contractor, employed by realtors and bankers to clean out houses that have been foreclosed. He and his wife do the labor together.”
“They wouldn’t be doing such dirty, laborious, guilt-ridden work, but for the hard times. The man hasn’t had a new construction job for months.”
“They talked about what people leave behind: cellular phones, TVs, digital cameras, clothes, and, most pitiable, brand new children’s toys. ‘They just walk away,’ they said. It’s as if they’d been hit by a natural disaster.’”
The Voice of San Diego. “A couple of national stories this weekend questioned what had been reported as a growing trend, that upside-down homeowners are deciding to walk away from their homes as an economic decision. I asked you for your insight, anecdotal or otherwise.”
“Here’s what reader BG, a homeowner in Paradise Hills, had to say: ‘My immediate neighbor to the west told me he decided ‘to rent for $1,000/mo rather than pay off a mortgage at $3,000/mo.’ He and his wife (both senior citizens), walked away. I don’t miss their noisy dogs, frankly, but having a house next door in foreclosure is not a good thing. At least he has it listed for sale.’”
“BG said they’d lived next door to each other since the mid-1980s, and theorized the neighbors must have withdrawn the equity from their house to end up with a mortgage payment that high. They urged BG to buy their house before they moved to Riverside County.”
BWAHAHAHHAHAHHAHHAHHHHHHHHHHHHH!!!
You just got punk’d, dude!
This walk-away FB obviously wasn’t taking all the marvelous tax advantages into account.
…theorized the neighbors must have withdrawn the equity from their house..
senior citizens? Although age is not a certain path to wisdom, they may have had the gumption to put some of that away for a rainy day..
“Martha, i’ve got a plan where we can can build a huge bank account and then cut our living expenses in half by renting wherever we want to live. It’ll take a couple years and some risky maneuvering, but if I’m correct and we’re watching a RE bubble form, it’s almost guaranteed.”
“My immediate neighbor to the west told me he decided ‘to rent for $1,000/mo rather than pay off a mortgage at $3,000/mo.”
It’s nothing personal just business.
But wait, we were just told that wasn’t happening!
lol
That REO won’t even make it back on the market in 2008. Anyone who thinks its close to done is drinking the cool aide.
Got Popcorn?
Neil
“‘Everyone was a little surprised,’ said Bob Bogard, director of marketing and communications at the museum.”
Don’t Bogard that house, my friend, pass it over to me.
“For the fifth straight month, the number of homes entering the foreclosure process surpassed the number of homes sold…”
That is music to my ears.
““‘I think we’re bouncing off the bottom,’ said Gene Harding, a real estate agent with Bailey Properties. ‘The bulk of the sales [in Watsonville] are bank-owned properties. They’re coming on the market at prices where people say, ‘I can do that.’”
…and we got another bottom bouncer! Hurray!
I’m suprised a place like Watsonville has not been black listed by lenders.
Tell me a scary ghost town story…
“Johnson said the Inland Empire is experiencing more than just depressed real estate values. ‘One of the more significant spin-off problems for high growth areas is the fact the national retail chains and restaurants are stopping any projects they had planned,’ he said. ‘So you’ll see this wonderful expansion come to a screeching halt. We are already seeing negotiations stall and stop in commercial centers.’”
“Despite a lack of funding to continue with the project, Anderson Pacific found a willing buyer for the 5.4-acre lot just behind downtown: the city of Livermore.”
Unbestinkinglievable. The city council ought to be tarred, feathered and run out of town on a rail, but you just KNOW someone is profiting from this transaction. We have a blowhard on our own county commission who has been advocating hard for a useless expressway way out in Bumf*ck, because it would make his own land holdings more valuable. When that didn’t fly, he started throwing tantrums and then tried to get some youth sports park project funded. That didn’t fly either. More tantrums and name calling. The guy is a toxic dickoff. Shame he didn’t burst a blood vessel.
first thing i thought of when i read that article was it’s an inside job.. someone’s related to someone or similar..
Immediate inside job thoughs here too.
My, are we a suspicious lot ?
This might be a good time for them to vote themselves a pay increase.
Right state, wrong city….that would be San Diego.
No matter if the city is dancing around bankruptcy, there’s always time for SD pols to vote themselves a pay increase.
Maybe the city council is taking hints from the Fed. Reserve. Anderson Pacific is too big to fail!
I’m seeing that in Idaho- retail space has really grown over the last few years, but a few projects mentioned in the newspaper or advertised with roadside signs have yet to develop. Across the RR tracks from my office is a pasture with a sign for a mixed use development: “coming in 2007″. I’m still waiting.
Like I said yesterday, I really hope those roving mobs of IE zombies head WEST looking for food, not east!
Voodoo Economics?
Anyone? Anyone?
They will go east, az_owner. That’s why there are so many less-educated people out there: BECAUSE THEY CANNOT COMPETE IN CALIFORNIA.
if you stopped replying to him, he just might go away.
“Like I said yesterday, I really hope those roving mobs of IE zombies head WEST looking for food, not east!”
good thing 700 miles of empty barren, scorching desert separate the IE from the populated metro regions of Arizona.
Only if they knew that there are zillions of foreclosed empty mcstuccos out in arizona with all that copper piping i am sure that the IE zombies would bound over the deserts and rimrock canyons like the hulk to get to that copper piping . That is , after they have finished pillaging and stripping the IE down the bone.
Scary Ghost story II:
Daddy….why are there all those space available..space available…space available signs all over… and the funny round bushes blowing all around here?
Those are tumble weeds son….all started many years ago with the great housing bubble…before you were born…..the folks that survived just let this inland empire return to its original dirt condition. Nice en peacefull now.
Good. It’s about time we stopped wrecking whatever little bit of wild space and agricultural land we have left. I mean, come on. What is the justification for having families of 4 living in 4,000 square feet while every last creature on Earth has to go packing?
“…Still, the audience was disappointed by the outcome.”
Well obviously, no one from Ben’s blog was sitting on their ass@s at this development …er, I mean outcome.
Neil, where you the second bidder?
The audience was disappointed ? was it comprised of Realtors ? The rest of us rarely cheer for higher prices.
Could be. I hear that most of them have a lot of time on their hands these days…
The Neutra house really is a modern masterpiece and the renovation was impeccable, done by a couple with unlimited time, money and taste (wife was an architectural historian). But the marriage didn’t survive the stress of the renovation. Thus the sale.
I saw the announcement for the Kauffman House in the NYT and ApartmentTherapy. The presale was 15 to 25 mill, just to let you know how low the bidding went.
Trying to fob off a house as “piece of art”. Whatever. I’m sure everyone thinks of their house that way. Should have just sold it as a “piece of shit”. Would have gotten more interest.
Nonsense, this is a Neutra.
Actually, that house is a piece of art, completely unlike most of the crap out there.
When the former owners, Beth and Brent Harris, bought the Kaufmann House for $1.9 million in 1993, it was very different than its original design, experts on the home said.
But no expense was spared in recent years during a $5 million renovation to restore it to its original splendor.
So wait a second… $15M-$1.9M - $5M is still $8.1M minus the auction commision! Not bad!
Neil, where you the second bidder? You found me out.
That place is art. Bummer there are no jobs nearby… I don’t think every home will go to zero. But could I live in a place where every deck screwhead pointed in the same direction? Yikes! I’d have to have a HUGE closet to hide my lifestyle (like about two offices worth…). 
Got Popcorn?
Neil
“Acting at the request of the politically powerful real estate development industry, Orange County has agreed to postpone collecting fees for housing construction projects, without any analysis or discussion about the effect it will have on the county’s finances.”
Yet more proof that all who said Orange County is a ‘diversified’ economy… were straight up lying out their bungholes.
Of course, on this blog… we knew that already.
“County officials and building industry representatives characterized the measure as an effort to help builders hit by the credit crunch and the real estate downturn to get projects off the ground.”
Yeah!! Go baby! I’m all for it. Keep that inventory ballooning!
The OC isn’t diversified in ANYTHING, not just the economy. I should know, I grew up there. IMO, it purely exists as a status-y address for the NIMBYs from LA.
As my buddies would say: all hat, no cattle.
Where is Gary Watts when we need him for comedy?
Packing 6 hamburgers in a bag at Burger King.
Auction Heaven, where have you been hiding??? Long time between posts!! I missed reading your rants.
Thank you, sir.
Oddly, I haven’t had much to rant about lately.
All of you fine people raised your voices and soundly defeated- or will defeat- the bailouts, so I really prefer sitting back and lurking.
You’re all doing a wonderful job.
Carry on.
“…The number of California foreclosure filings has more than doubled since April 2007 to almost 65,000″
65,000 x 2.5 people + animals = how many: New “bitter renter’s”
Those of you from southern Orange County may be familiar with Dan Harkey: president, CEO, and sole owner of Point Center Financial in San Juan Capistrano. (His wife Diane is the controversial mayor of Dana Point.) Readers of this blog who reside in San Luis Obispo County may also be familiar with Harkey, whose company repordedly provided financing to Rancho Obispo’s builder Ron Hertel, a.k.a. Mr. Mold.
Dan Harkey is also the managing member of an investor group that now owns a 28-acre ocean-blufftop parcel in Carpinteria (13 miles south of Santa Barbara). The previous owner, developer Richard Ehline of La Quinta, has allowed the property to slip away in Chapter 11 bankruptcy. The property is currently the subject of a bankruptcy auction. (The minimum bid is $12 million, and all sealed bids are due by this Friday at noon.)
If you’re interested in learning about the events leading up to the auction and its possible outcomes, pack a lunch and visit us this week at the Santa Barbara Housing Bubble Blog. Thanks for reading.
Saint Barbara
“‘This is the new Inland economy we have to work through,’ said Steve Johnson, director of the Southern California region for Metrostudy. ‘It’s not going to be short in duration. It’s something we have to experience for many quarters ahead,’ he said.”
What is the clue that he is a true: “Optimist”
“They wouldn’t be doing such dirty, laborious, guilt-ridden work, but for the hard times. The man hasn’t had a new construction job for months.”
Guilt Ridden ? What Baloney, I’d have not one iota of guilt cleaning out those properties and would happily E-bay the better left over pickings of Hamo OverExtendedConspicuousConsumption.
Yeh, those unopened children’s toys were bought on a credit card that the owners have no intentions of paying. Their credit rating is already shot, no point in paying back their credit cards anymore.
If my husband made me be a maid, I’d dump him.
Except when it’s “playtime”, right?
Watch out for IE zombies, BTW
“Vigil agreed and said the new market - with plenty of supply but fewer qualified buyers - is here to stay. ‘The agents have to adjust,’ he said.”
But not the lenders… “it’s: Yeah, no problem, all 4 of you qualify, collectively speaking.”
I don’t think there’s any way to slice that and come up with a different conclusion.’” said James Hamilton, an economics professor at UC San Diego.
Why do I have the feeling this guy will never get a job on Wall Street?
Hard to judge a man by a newspaper quote.
James Hamilton is actually a very good economist. His blog is econbrowser .
Is there any actual “analysis” on that site? All I see are links…
“Hard to judge a man by a newspaper quote.”
“I don’t think there’s any way to slice that and come up with a different conclusion”
Agreed… I was pointing more to Wall Street…and how they “package” your signed escrow doc’s.
Gotcha. I misinterpreted.
“‘I think we’re bouncing off the bottom,’ said Gene Harding, a real estate agent with Bailey Properties.”
Since we’re nowhere near the bottom, this must be a reference to all the JT ream-jobs he’s witnessed lately. Bouncing off the bottom indeed!
“we’re near bottom”, “we’re at bottom”. “we can’t go lower than this”, “we’ve reached bottom”, “We can only go up”, “buy now because prices are going up”
I just ripped a Realtor about this. She had nothing to say. I told her I was still interested in buying but I will offer a huge lowball offer to the asking price. I told her to stop making idiotic statements. She was speechlessand surpisingly very cooperative. Stand your ground people.
I love reading posts like these.
“She sensed Levitz was in real trouble last year, when ‘they would run a humongous ad and [the turnout] would be pretty sparse. People were not responding,’ she said.”
Substitute: Fed.. for… Levitz… Hoz, maybe I have it wrong.
The first thing that goes are the furniture shops. The next thing that picks up are the pawn shops (consignment autos, add in the blanks _________).
“‘It’s scary out there,’ said Cooper, a saleswoman at Salmo’s Custom Sofa. ‘I think this is the tip of the iceberg — there’s more to come.’”
I can count 5 furniture stores that have closed on my regular travels just in my neighborhood
“Christie’s New York, the auction company, initially believed the house would bring upwards of $25 million. During the bidding, even the auctioneer seemed surprised. ‘We’re at $15 million. Fair warning, now, $15 million,’ he said, taking long pauses as if waiting for an onslaught of additional offers.”
40 pct off sale on $25 million dollar homes! Get one while they last!!
“Darrell Nolta, a close observer of county government, criticized the move as a favor for developers. ‘There are many, many people who need to be helped’ because of the economic downturn, Nolta said. ‘Not the builders.’”
Hey Darrell, I know for a fact one developer who does not need help…
Google: Donald Bren
“‘They’re just thoroughly infested with roaches, with rats, with black widows,’ said Jared McCaa, who owns Bakersfield’s TMC Pest Management. About one-third of the bank-owned homes he’s hired to treat have serious pest problems, McCaa said.”
Technically speaking, at least these homes are not vacant.
Wifey and I walked through an REO the other day that was a huge mess. She commented, “at least there aren’t rats”.
I responded, “Yeah, if there were rats they would have formed a welcoming commitee”. LOL
Wifey and I walked through an REO the other day that was a huge mess. She commented, “at least there aren’t rats”.
U won’t notice any rat problems till night. They keep still if U come in the same room where they might be . I have had them in my den-bedroom-study room and after i go to sleep they start rustling and moving about. When i got up and checked the area where the noise came fron the rat would stop making noise.
U need to sneak up on them very quietly if there is a noise of rats and mice rustling about in a room. if u happen to startle it and get on e in the open it will make a sudden startling dash to escape . I have surprised & flushed rats out of a hidden corner and attempted to swat them with a broomstick but prefer to kill them with traps and rat poison . Squashing a rat is nasty and not for the faint of heart.
Rats/mice will scurry along power and telephone lines , and i suspect that any small opening into a house, even a 1″ crack they will enter that house.
“‘They’re just thoroughly infested with roaches, with rats, with black widows,’ said Jared McCaa, who owns Bakersfield’s TMC Pest Management. About one-third of the bank-owned homes he’s hired to treat have serious pest problems, McCaa said.”
that might be one of the few job sectors IN CA which might actually be growing. I know that Orkin is hiring.
I have had rat problems in my house before. Just put out some rat killer granules, those blue pellets which come in packets, in dark hidden corners along flooring near the walls, and behind furniture . Gopher elimination is another specialty of mine.
I love home pest problems. May make a career move and become a pest elimination specialist.
Peter,
Care to give any gopher tips. I’ve recently acquired a gaggle of them in my front yard.
Mike
HI SVGUY,
Probe and penetrate the ground with a 12 to 20″ ft long metal rod or long screwdriver till u find the underground gopher cavities . The cavites will be no more than 1 foot away and about a foot beneath the ground from the burrow holes and mounds.
U will know u found a cavity when the rod suddenly meets no resistance as U are probing the ground. Carefully stick a 1/2 to 3/4 ” diameter ” hollow aluminum metal tube or maybe discarded copper piping( same length as the earlier metal rod)deep into the ground where the cavities are. Make sure dirt is not clogging the tubes. Pour small amt of anti gopher pellets down the tube, carefully depositing it into that cavity. Use a funnel.
Quicky remove the tube and cover the opening u made in the ground with that tube. Use a 2-4″ flat rock or other lid, and cover over with dirt. Don’t let any dirt get down that hole you made to access the cavity.
U may need to do this 5-10 times in different areas of the yard. Point is to get that poison gopher pellet into those cavities carefully and quicky cover those openings. May need to do this over a period of several days even up to a week , but has worked for me. It is environmentall safe too.
If U buy the tall canister of anti-gopher pellets at home depot they have instructions on the label close to mine. Difference is i use a tube: they say use a long spoon. Other wise the cavity probing /finding part is the same.
I made our first lowball offer today.
I fully expect it to be rejected but like aladinsane I feel I must do my part to combat the delerium.
The seller is motivated by divorce but would need to negotiate short sell or come up with bukko cash to accept my offer.
I’ll respond to any “competing bids” with my best wishes for a happy and timely closing.
Thank you for doing your part to restore sanity to pricing.
“Many repossessed houses sit vacant for months before banks dispatch a real estate agent to prep them for sale.”
I was wondering what “they” were doing with all their “free time”. I mean besides “dancing” & collecting 26 weeks of unemployment.
I feel a: “A Forth Day” beginning to emerge.
It’s been averaging about 6 months up here. Some get listed right away, but for the most part it’s a while before you see them listed. Not surprising, though. Hey, these lenders are swamped by the foreclosure tsunami, and lord knows they don’t have the funds to staff the personnel needed to move their unwanted homes. Have you heard how long it’s taking to get short-sale approvals? Friggin nightmare to say the least. What’s hilarious is I’m hearing that by the time these short-sale deals are approved, the deal is no longer a deal and the buyer walks. DOH!! The lenders are overwhelmed is all it is, so don’t put on the tin-foil hat on this one and think the lenders are purposely holding back their inventory for some “keep-the-market-propped-up” reason. I’ve been hearing that lately and I firmly believe it’s nonsense.
Why don’t the lenders just put all their bored brokers to work on listing the REOs?
In empty houses, thieves see copper profits
http://tinyurl.com/4waalr
It’s time we started shooting copper theives and gang sign taggers on sight.
I been doing that anyhow, when I see someone that looks vagranty or slothful or just like they don’t belong in the nabe, or else they’re wearing stupid shoes that irritate my artistic sensibilities. Sometimes I wonder in my brain if I should make sure that the fellows deserve it before I shoot them, but then I answer, in my brain, ‘Nope. That sort of vacillating candy-assery is just a big waste of time.’
This IS what you’re suggesting, right? Okay, then. I’m with you.
People are getting desperate these days. Last week in Richmond,CA, over 3,000 gallons of solvent leaked out of a tank. Why? Because thieves stole the brass the drain cock! So not only are people getting desperate, but they’re apparently completely stupid too.
I saw that story. It must have been a mistake, though, because the tank was labeled “empty”. Who in the world would purposefully douse themselves in toxic chemical just in exchange for a bit of mid-priced metal?
And here I thought I was the only member of the evil-thinking HBB gun club.
“in my brain”
That never gets old, does it?
“when I see someone that looks vagranty or slothful or just like they don’t belong in the nabe, or else they’re wearing stupid shoes that irritate my artistic sensibilities… I shoot them”
I remember you…
You’ll never take me alive, Copper.
“You’ll never take me alive, Copper.”
http://www.youtube.com/watch?v=UVF3iC_voyU
There were a couple of reports this week in our local Maine paper about folks coming back to their cabins and cottages and finding them stripped of copper. They’ve also been stealing plaques of the veterans’ graves…
“In empty houses, thieves see copper profits”
U know who is stealing the copper out of those foreclosed homes? undocumented illegals or their devil offspring who worked on Housing tract contruction projects in 1000’s of tracts all over the IE . Very likely underpaid or exploited by their contruction contract employers, paid dirt cheap, or maybe not paid at all in some cases, and they are taking it out by stripping REOs of valuable metal. In another area , i have seen these immigrants strip a car in a salvage yard quicker than U can blink an eyeball.
Now that they are out off work due to recessionary construction slowdown, and desperate and hungery, they will steal a few dollars worth of copper for meal money. I know quite a few places in the LA area which will take salvage metals NO QUESTIONS ASKED!!!
I am wise to the workings of the LA illegal alien underground economy. There is a vast fencing network for stolen hot goods operating in LA inner third worlds ghetto pockets. I call them Hot pockets.
Can I extend this blanket stereotyping to anyone who doesn’t look like me or do I have to check their papers? Just for convenience.
meth addicts are known to strip houses too. I saw a special on meth and a former addict showed one house they picked bare.
Where are these companies paying for this copper and wouldn’t it be the county’s best interest to start policing who is selling large quantities of copper repeatedly? Are guardrails and little league bleachers getting ripped off now? Why isn’t anyone doing anything to stop it at the scrap yards…
“Why isn’t anyone doing anything to stop it at the scrap yards… ”
The local /county /state does not have the resources and manpower to police every scrapyard/ salvage yard /auto junkshop in Ca, especially in the flourishing blackmarket/underground economy in LA- area. Ca and local municipalities are broke as it is and can barely provide minimal basic policing as it is.
I live near the long beach/LA port area and 1 mile from me along alameda st and in wilmington /gardena area there are tons of salvage srcap metals dealers . Makes sense as much it it is loaded onto nearby cargo ships and exported to China
A lot of shady deals take place in these scrap/ junk yards, as u would know if you’ve seen a lot of crime movies.
Scrap metal dealers and buyers out here are probably run and financed by mafia- type outfits/criminal syndicates.
The Local gov’ts and agencies are probaby bribed and/ or just look the other way.
Only a fed/ state/local combined major crime task force could deal with this, and i think the priority of the crime fighting agencies is more focused on fighting mort fraud and combatting terrorism and drug busts.
“McCaa recalled one Oildale job where neighbors came out upon his arrival, furious that pests from a foreclosed home were migrating into their yards and houses. ‘They chewed my ear for the better part of five minutes,’ he said.”
I’m sorry, the neighbors or the pests?
I thought the pests chewed his ears for five minutes.
What’s the difference?
I heard they had to use Round-Up, to get rid of the human infestors…
“‘They’re just thoroughly infested with roaches, with rats, with black widows,’ said Jared McCaa, who owns Bakersfield’s TMC Pest Management. About one-third of the bank-owned homes he’s hired to treat have serious pest problems, McCaa said.”
‘And the more homes you have for sale, for whatever reason, the more that depresses the price. I don’t think there’s any way to slice that and come up with a different conclusion.’
———————–
And this guy’s a freakin’ PROFESSOR?!?
Cut him some slack. At least he did not say “real estate always goes up, in the long run” or “the market will bottom out in early 2009.”
True, he could just be trying to say something - *anything* - to keep from sounding like chicken little to the average nitwit…
When I go off this blog, it’s amazing how many people bitch about “doom and gloomers” who can’t see what an amazing investment real estate is, and that all the price drops are due to media hysterics. It takes guts to speak your mind out in the open, especially in liberal University towns.
Well, real estate is a great investment, if you understand it and have the patience to invest wisely. Those folks who say “real estate is an amazing investment” typically don’t understand what makes real estate a good investment. Here’s a hint….it’s cash flow.
When your yield on cost is significantly greater than your cost of debt (say, 2% more than the cost of debt), and you can borrow 75% of cost, then you can acheive cash flows pretty easily at 10%+ per annum on your cash investment, AND with enough diversification, over long periods of time have a good hedge against inflation, AND shelter a portion of your income with depreciation that you may never need to recapture if you utilize 1031 exchanges, AND over long periods of time, actually have appreciation in the value of the asset. Seems pretty good to me.
Now simply buying a house as an investment because “it will go up” despite that home not fitting the above financial description? Well, that’s just stupid.
Why would people in a university town (i.e., students) be against the crash? You’d think young people would be dancing in the streets right now.
“Well, real estate is a great investment, if you understand it…”
I have a friend from a very wealthy family that owns lots of syndicated commercial real estate. Their Proposition 13 taxes barely rise, and the syndicate will outlive those who acquired many of their properties. They’re patiently waiting it out right now, sitting on 100’s of millions. My friend never was too sharp himself, so the family bought him a San Jose home outright years ago; lucky. They have a business team that has been very successful despite several vicious real estate cycles in the Santa Clara Valley. When the weather was blustery they’d take the King Air down to Palm Springs. While their family’s teen youth were in Boulder going to school I was toting a rifle-n-rucksack for Sam. Not much else to understand.
Yeah, it’s been the GOPs in my midst who’ve announced they don’t want to be exposed to any news/facts that allude to Recession or dropping house prices. They start spouting affirmations and cheerleader rants. If all else fails they bring up Bill Clinton and BJs.
Students aren’t against the crash, and they rarely buy anyway. It is the university staff with government or tuition funded sinecures who think they deserve a bailout for speculating on the Good Life, often subsidized by the University as it tries to compete with private salaries. A significant number is rethinking going back into the private sector, I’ll bet.
“BG said they’d lived next door to each other since the mid-1980s, and theorized the neighbors must have withdrawn the equity from their house to end up with a mortgage payment that high. They urged BG to buy their house before they moved to Riverside County.”
Let me guess: BG = Brilliant Goon?
BG sounds like my kinda neighbor. Especially when he/she said:
“I don’t miss their noisy dogs, frankly…”
I don’t know why some dog owners seem to think that barking is something that the rest of us must be subjected to. Keep the #!&*ing dogs quiet already.
Amen. Bark-training dogs is not rocket science. It can usually be done in a few days. Dogs, like children, require discipline. Most people equate discipline with cruelty, judgmentalness, or some other undesirable trait. They want to be in control, but they don’t want to be in control. Therefore, they simply won’t do it. Maddening.
“‘By the time Realtors are able to go in … it’s not very pretty,’ she said.”
“McCaa recalled one Oildale job where neighbors came out upon his arrival, furious that pests from a foreclosed home were migrating into their yards and houses. ‘They chewed my ear for the better part of five minutes,’ he said.”
What, that’s IT?! Five minutes of jabbering? ‘Ear chewing’?! From surburbanites? Boo hoo. He should prance around flinging confetti with joy that that’s all that was inflicted upon him. If IIIIIII was a pest in that area I’d have forgone the chastisement in favor of a more flavorful plan. See, I would have been hiding in the shrubs when he drove up and then when this McCaa fellow–he just sounds juicy, somehow–he would get out of his truck and stand there with his clipboard looking all wise and smug and juicy–that’s the time! That’s the time, baybee! I would pounce! Bounding right out of the shrubs. Then there’d be a bit of dramatic screaming and kicking and SCiFi channel B-movie type of event, where I bite him or make a web type thingie, or both, and before you know it this McCaa guy would be tucked tidily up in the crawlspace in a freakish cocoon, struggling weakly, and in no condition to complain about irate neighbors.
I mean, jeeze, count your blessings, my good man. It could be SO much worse. If I was in charge, it WOULD be so much worse. It’s just regrettable that I’m not in charge.
Of course, this would all be firstly based upon the premise that I was ‘a pest’, with SCiFi movie skills. But I’m not. I’m a girl. A girl with good ideas, is what I am.
… but you’ll go easy on copper thieves and taggers?
How many beers so far tonite and what kind OG?
Naw, we just shoot those copper thieves and taggers first, then ask questions later. Remember, this is the evil-thinking HBB gun club.
Pests? They need some Utah rattlers to see how much worse it really could be…
That would probably solve their rat problem-
For those of us who want a “better” way to spend our stimulus checks, here’s one of many people who could really use it. The phone number to the Seneca Healthcare District (contact Louise Strussel) is 530-258-2067:
CHESTER, Calif. (May 13) - A 20-year-old man who crashed his truck into a stand of pine trees as he headed home after learning his sister had been killed has died, hospital officials said.
A memorial fund has been set up by the Seneca Health Care District to help Joane Carrigan pay for her children’s funeral expenses.
http://news.aol.com/story/_a/brother-killed-2-days-after-sister/20080514093909990002?icid=1615988631×1202436137x1200304515
I’m not getting a stimulus check. I guess I’m paying for everyone else’s.
Thanks.
Speaking of Livermore and Dublin, for the local crowd, what do you think is going to happend to those condo developments north of 580? Any stories of upside down “owners”. Redfin has some of them listed at prices bordering lunacy. East Bay is still far from affordable by any measure.
I’m guessing that due to gas prices and the fact that most Bay Area exurbs are heavily populated by mostly middle class workers who fled the center core, these areas are going to get eventually have a severe reduction in prices… which is good because that will continue to put pressure on East Bay prices.
Im looking in this general area (more northward towards Danville though). This area had never really been “affordable” and it definitely isn’t now. I’m guessing alot of these home were bought with Alt-A and option ARMs which wont reset for a couple more years. Prices are still falling though slowly, im starting to see 3000+ sqft with 10K lots under 1 mil.
My father upon retirement sold a 3 bed 2 bath house with pool in Walnut Creek in about 1998 for approx. 280,000 as I recall. Sold the first day it was listed (no shi*!). Very nice cul-de-sac house. He used about $240,000 of that to buy a nice house in Pine Grove (Amador County, Sierra Foothills).
So as late as ‘98, you get something really nice in Walnut Creek for that price.
i’d guess that they, along with all the new developments over the Altamont, through Tracy and then along 120 all the way to 99 will be 50% rentals for the next ten years or so..
“Local politicians, teachers and lawmakers are bracing for the delivery Wednesday of what is expected to be the worst state budget news since a $38 billion gap triggered the ouster of former Gov. Gray Davis.”
Heeeere we go again! I can’t help but point out the obvious irony here: The richest state with the richest people and the most expensive houses has perhaps the WORST budget and close to the WORST schools. They’re getting ready to cut 4 million from our local schools in my East Bay city. This is a fairly well-off city too and the parents who paid dearly to live near the schools are going absolutely ape over it. Their solution has been to have rummage sales, strange proposed parcel taxes that the old folks balk out, and other equally ludicrous plans.
What’s more, none of them that I talk to are willing to entertain the reason behind these budget problems: expectations from the state in regards to home prices and old laws like Prop 13. By doing so, they would be admitting to being part of the problem. That and it probably seems humiliating that they pay so much to live here and get almost 3rd world country standards in return.
I bluntly tell people that if you want to raise kids, the Bay Area is probably not the best place to do so.
“3rd world country standards in return”
I wonder if that has any correlation with the number of 3rd worlders we’ve imported over the last 20 years?
The people in this state simply refuse to pay taxes and grouse over anything that costs them a few bucks extra. As a result we have the worst roads around. Remember all the complaining about a paltry auto registration fee that Arnold used as his platform to get elected ?
“The people in this state simply refuse to pay taxes and grouse over anything that costs them a few bucks extra.”
Isn’t California the 12th highest revenue per capita in taxation?
With economies of scale one would think that would be plenty of money to go around.
Maybe there is waste?
Thank you Dude
I pay $5700 in property tax per year. Personally I think that is enough. Waste ? Don’t get me started. Vallejo is just the tip.
I think CA is spending about $5900/kid/year right now (I read that in some publication last year), so that means your taxes aren’t even enough to pay for one of your kids to go to school. Furthermore, CA is among the lowest per capita spenders for education, even without factoring in the high cost of living in the state.
In other words, your property tax is extremely low.
Mexico is what happens when there is no money for infrastructure or planning or upkeep.
Get rid of the illegals! It would save us over $20 billion per year.
Dummy.
the state shouldnt have raided the gas taxes which were supposed to be for road improvements, so they have to come up with another fee to pay for something that was already accounted for… there needs to be laws to shield taxes for their original purpose its all a cash grab, wasn’t the lottery for schools I wonder how much of that has been raided. This is why I’m against all new taxes, they never go where they are supposed to when we voted for them.
I got hit with that Gray Davis Car Registration on my very first auto purchase, I expected a $400 car registration, instead I opened my mail and saw I owed the state $1200! That is insane to pay $1200 a year to register a vehicle and its not like you can take the vehicle back or that this information was available before making the decision to purchase said vehicle. Damn right I voted for Arnold and got a $800 rebate that registration hike was excessive. In fact that was the only reason I voted to recall Davis was that registration hike.
You live in Davis?
” The richest state with the richest people and the most expensive houses”
—————
Maybe it’s all just an illusion?
Jetsonboy,
If you think Prop. 13 is part of the problem then you might be part of the problem as well.
Mike
Hi Svguy:
Can you expound on that? I’m not sure I understand you.
-Big V
Sorry for the late reply V, I go to bed early and rise early.
The history behind Prop. 13 is during the early 70’s real estate here was going bananas percentage wise. Property taxes were being raised exponentially. Prop. 13 was a voter revolt against this. Even if you don’t have an extremely low tax base from years long ago you still benefit from it. Every home owner benefits from the annual increase cap.
As far as trying to use education costs as an example try this.
I had a discussion with an old timer about this very subject.
He was complaining about his property taxes as he owned two homes. I replied about his taxes going to the schools, etc.
His response was that his kids graduated decades ago. It opened my eyes a little bit. My point is that maybe certain households may get a greater benefit than their tax payment may justify that year. But remember in most cases they’ll be paying that slightly increasing amount long after they stop using said benefit.
As for Jetsonboy I wasn’t trying to attack him personally. I just have a belief that Governments, as I do in my own life, should live within their means. So when I hear people banging the higher tax drum I get irritated. Not Olympia girl irritated, just irritated
Remember we all benefit from Prop. 13 and lower taxes in general.
Mike
I know. I tell people all the time that it would be cheaper to live in an area with an “udesirable” school and just send your kids to a good private school than it is to overpay by a million bucks to live in a “good” school district. I don’t think parents want to admit that they’re really just there for the prestige.
The problem is the public sector UNIONs and their outlandish pensions. 100k retirement at 50yrs old for a policeman. Plus, we need to go back to a 6 month assembly and state senate.
A 90-day assembly session would be better yet. Less time to create mischief.
I see your 90 day government and raise you 72 hours.
Policeman? Heck, there was a LIBRARIAN in San Diego that retired a few years ago with a $750,000 lump sum payout plus $125,000 annual pension. I read about it in an article discussing the DROP program, which is one in a long list of outrageous benefits the public unions and San Diego city council cooked up.
When families leave an area the quality of life goes down for everyone. Parents generally care more about things like parks, neighborhood safety, etc., and households with children tend to stay longer than singles and childless couples, and are more invested and active in the neighborhoods they live in.
San Francisco has the lowest percentage of households with children (only 13%), and it is a city of richy rich young folks. The cost of living here has driven many of the artists and creative types that made this city so interesting.
Still, a beautiful and amazing city, but the yuppies get annoying.
When the housing bust gets here, maybe it’ll get more down to earth again.
Why is my post not appearing? I didn’t even talk about panties, I don’t think, so Ben would not have screened it for that reason. (My panty posts never ever make it to the big time.)
Look, all I did was suggest that this McCaa guy would be a tasty snack for some enterprising bug mutant, and he should count his blessings. Right? Right. Anyone can see that.
It’s kinda like sunglasses, it’s on your head (up above)
ROTFLMAO!!!
what’s wrong with panties?
Update on some of SoCal’s beach cities (Manhattan Beach, etc.), from Kaye Thomas’ blog:
http://www.beachcityrealestateinfo.blogspot.com/
“If you are looking at a home under $800,000 there are still a few programs that will let you buy with 10% down, a conforming first loan and a second for the balance providing you have almost perfect credit and money in the bank in addition to your down payment. However most people are buying with a minimum of 20% down.
If you are looking for a property in the $1 million plus range then you are going to need 25%-35% down along with high FICO scores and cash reserves in the bank…”
25%-35% down payment on $1M plus houses. Interesting, you actually have to have *money* to buy a house in California!
She does go on to say that the world isn’t ending, sales are still happening, and “Most buyers never know when the market has reached the bottom until long after it has happened”, but beyond the sale pitch, she usually does a pretty good job of summarizing the “on the ground” actualities.
“25%-35% down payment on $1M plus houses. Interesting, you actually have to have *money* to buy a house in California!”
There are about 200 or so sales of 1 million$ plus homes in the LA hi-end coastal areas each month. LA county has a polulation of over 10 million so were talking about a tiny proportion of the polulation able to buy into the hi end .
Problem is La times gives to much coverage to the hollywood jet set ent crowd, who along with the basketball jockeys, are about the only ones who can currently buy these homes
If you are looking for a property in the $1 million plus range then you are going to need 25%-35% down along with high FICO scores and cash reserves in the bank…”
O frabjous day! Callooh! Callay!”
He chortled in his joy.
‘Twas brillig, and the slithy toves
Did gyre and gimble in the wabe;
All mimsy were the borogoves,
And the mome raths outgrabe.
We’re starting the return to a normal world! Hey, wait a second… 35% down is a Fannie loan (or FHA) on a $1.12M home! Bwaaa haaa ha.
When I get home, a good bottle of wine is being oppened.
Got Popcorn?
Neil
Debtritus Debtris
“They talked about what people leave behind: cellular phones, TVs, digital cameras, clothes, and, most pitiable, brand new children’s toys. ‘They just walk away,’ they said. It’s as if they’d been hit by a natural disaster.’”
I would like to apply for a job with this guy’s company. I would SO love to take “treasures” left by others.
Sounds good to me too - I bet I can “out-dumpster-dive” Mr Slim…
foreclosures resulted from subprime loans issued in 2003 and 2004. He said we’ve yet to see the consequences of subprime loans from 2005 and 2006.”
But I thought they had learned from past mistakes, and knew what they were doing. NOT!
–
“The number of California foreclosure filings has more than doubled since April 2007 to almost 65,000.”
Holy Pig! With some 4M mortgages with meaningful mortgage(s) in CA (34M nationwide) that is 1.625% a month, or 19.5% Annual Rate. And the rate has been going up month after month.
Ja
And based on NODs in the pipeline it should continue to go up for the next 6 months, minimum, more likely the next couple of years.
–
“meaningful mortgage(s)” was meant for mortgage amounts.
Jas
‘The big question is whether it is going to be horrible or just bad,’ Pitney said. ‘Good is not an option.’”
Oh lawd have moycee.
–
“‘Here we go again, yet another budget crisis,’ said Shaun Bowler, UC Riverside political science professor. ‘It’s back to the future.’”
And yet another BIG California bubble that burst (both tech bubble and HB were lot bigger for CA economy) and the Governator will leave things in as bad a shape as he inherited.
Jas
Wednesday, May 14, 2008
Frum: Rich getting squeezed, too
…
Until March of this year, the federal mortgage insurance corporations did not cover loans bigger than $417,000. Jumbo loans, as they are called, could cost substantially more. And in today’s panicky market, the rate on a jumbo loan has at times spiked as much as a point-and-a-quarter higher than a smaller loan.
Result? In California, only about 15.5 percent of homes sold in February 2008 were financed with jumbo loans, down from almost 40 percent in February 2007.
These conditions have triggered an accelerating decline at the top of the home market. And that decline in turn could — stress “could” — severely weaken the balance sheets of upper- as well as lower-income households.
is the FB bailout bill dead ?
tia
Big V
You are obviously employed by gov’t.
Watching the recovery efforts in China by the Communist government is very embarrassing, when compared to the pitiful efforts our government made during Katrina. The Chinese government is doing everything possible, pulling out all the stops. Even with crap equipment they are doing something. I wish I could say the same for the embarrassing bunch we have in the WH. International jokes, all of them.
“Watching the recovery efforts in China by the Communist government is very embarrassing, when compared to the pitiful efforts our government made during Katrina. The Chinese government is doing everything possible, pulling out all the stops. Even with crap equipment they are doing something. I wish I could say the same for the embarrassing bunch we have in the WH. ”
The effort by the chinese army units is indeed heroic . That area of Sichuan which was astride the epicenter is very mountainous difficult terrain, and all the roads have collapsed. Add to that the onset of heavy rain making the rescue effort 3-4 times as difficult. Getting into the many remote towns and villages with those conditions would be a major task even for our gov’t. The terrain there is similar to the rocky mts of Colorado but with 10 times the population. .
A 7.9 quake if it hit LA would inflict 1000’s of casualties, and be about 50 times greater in magnitude than the 6.7 northridge quake. Though i doubt that we would have a tragedy as that SINGLE schoolbuilding collapse which buried 900 chinese schoolkids with few if any survivors.
joe momma
You are obviously employed by gov’t.
Yea, it was a shame that the Dems who ran New Orleans and Louisiana were more interested in making Bush look bad, than trying to save their own people.
What an embarrassment.
Schwarzenegger relies on lottery for bail-out
By Matthew Garrahan in Los Angeles
Published: May 15 2008 01:41 | Last updated: May 15 2008 01:41
Arnold Schwarzenegger is looking to California’s lottery to solve the state’s budget crisis and wants to raise billions of dollars by selling bonds backed by future profits from the game.
With the slump in the property market and an economy that is nearing recession, the governor revealed on Wednesday that state revenues had fallen $6bn, leaving California facing a projected deficit of $24.3bn.
He could always pull a “Wilson” and raid Calpers (public employees retirement fund) .. about $250 billion is sitting there, ready for the taking.
I coulda sworn I read it was near $750 billion.. but maybe not.. or maybe the higher number included all assets or something.
leaving California facing a projected deficit of $24.3bn.
I’m going from memory… but let’s see if I can recall.
January, projected deficit of $14B.
Around march or April: $20B
Mid-May: $24B (Let’s keep to round numbers for discussion.)
Or California’s budget deficit, for 2008, is growing at $2B per MONTH! Holy crap! What’s sad, is that I could believe the deficit could reach $36B to $40B by the end of the year. (Shudders…) This is one state! One year…
Delaying meaningful cuts is only making the problem worse.
I could wonder when CA’s bond rating might be cut… but with the bond insurers, I think we’ve seen those ratings are a joke.
Got popcorn?
Neil
3/4 of the budget is medical and schools. They passed a law saying they were cutting Medical payments by 10%, and they got sued by the health care providers saying that cut would close all the hospital trauma centers and most public clinics.
We HAVE to get our hands around healthcare costs or every state and the nation is bankrupt…. TORT REFORM. Change from 51% of jury 51% convinced (more likely than not burden of proof) of neglagence to 66% of jury 66% convincend (substantially likely burden of proof).
That change in burden of proof could drop malpractice insurance costs 80+% and slice 20% from medical care costs.