Who Isn’t Ready To Begin The Journey?
It’s Friday desk clearing time for this blogger. “By all indicators, Treasure Coast housing values continue to fall. At last, property appraisers are tumbling to that fact. After reporting increased valuations for 2006, local appraisers calculate that total assessed values finally declined in 2007. Welcome to our world.”
“When asked to explain why values in Port St. Lucie (down 19.7 percent) and Sebastian (off 14 percent) were particularly hard hit, Indian River County Property Appraiser Dave Nolte pointed to their disproportionately large percentage of General Development communities.”
“‘They were sold to a lot of absentee buyers who didn’t know what they were getting into (i.e., inflated prices),’ he said.”
“Analysts also say ’shadow inventory” must be factored in. So thousands more for-sale signs are just waiting to sprout. Property appraisers may say such data don’t enter into their calculations. Have our government officials repealed the law of supply and demand? Obviously not.”
“Two years after the height of the real estate boom, the slow housing market may finally be catching up to the Nashville area as the number of homes on the market here grows and prices drop. Much of the price-cutting that has occurred has been from homebuilders, who are under pressure to reduce inventory, said Mark Dobberstein, a broker in Murfreesboro.”
“‘When de mand was larger than supply, it could have a few warts and it was still sellable,’ he said. ‘Now it needs to be market-ready.’”
“Atlanta real estate agents trying to weather the slumping market by selling foreclosures have run into an unexpected problem. City code inspectors have begun ticketing some listing agents, holding them liable for code violations on run-down properties they are selling, often for out-of-state institutions.”
“‘Realtors are hurting right now,’ said Rick Hale, a Midtown agent who represents lenders with properties in some of Atlanta’s toughest neighborhoods. ‘This is not cool. They think we are just going to get reimbursed. But it doesn’t work that way. They are going to ruin some careers over this.’”
“The Strafford County real estate activity figures for the first six months of 2008 have been released, and show that the upward trend in property foreclosures continues. Bill Cormier of Hourihane and Cormier, while describing the housing market as ‘challenging,’ also said his company had experienced a pickup in activity in June, over May. He also noted that even in the downturn, they were moving three to six properties each week.”
“‘I continue to be bullish. This is a great real estate market for buyers. Prices have dropped 20 to 25 percent, and my belief is, as we head into the fall and the election that we will see people take advantage. Now there is affordable housing all over the place,’ said Cormier.”
“After years of favourable conditions for home sellers, the North Shore real estate market appears to be giving buyers the upper hand, according to a new report issued by the Real Estate Board of Greater Vancouver. Although housing prices, on a year-over-year comparison, continue to show single-digit percentage increases, we are beginning to see more price reductions in properties listed on the market today,’ David Watt, president of the Greater Vancouver Real Estate Board, said in a press release.”
“However, lower listing prices do not mean that home prices are decreasing, he explained in an interview. ‘It’s not even that prices have gone down, it’s just that they aren’t marked up,’ he said.”
“Is eight really enough? How about way too much? If you’re a spin-happy Minneapolis realtor, it’s not so bad. According to the Minneapolis Area Association of Realtors, the Twin Cities now has 8.11 homes for sale for every buyer.”
“In a July 2 post on the MAAR blog, one realtor claims we ‘appear ready’ to experience a rebound. ‘We are justified in celebrating the encouraging signs, but the housing market continues to face a variety of challenges-a large oversupply of homes for sale, lender-mediated property sales, tightened lending standards, tepid buyer activity, weakened home prices and home owners in positions of negative equity, among other grimace-inducing factors,’ he writes. ‘These challenges will thwart a quick rebound from our current conditions and make the road back to a balanced market a long and gradual journey. The encouraging news today is we appear ready to begin the return journey.’”
“Of course, who isn’t ready to ‘begin the journey,’ with homes sitting on the market for 159 days, negative equity becoming a major issue for many homeowners who didn’t put 20 percent down, and renting becoming a more money-wise option than buying in the Twin Cities?”
“A shrinking residential market has real estate agents asking the City of Northlake for help. Two months ago Susan Maher of ReMax/Regency in Franklin Park asked Mayor Jeff Sherwin if the city could suspend its ban on putting open house signs on sidewalks or parkways.”
“The residential real estate market has slowed down, although Maher said there are still buyers. ‘The whole market, not just Northlake, has slowed up because of funding issues,’ Maher said. ‘Everything was on a boom because (lenders) were just giving away loans.’”
“U.S. banks are merging at the slowest pace in at least 15 years as the mortgage-market collapse depletes capital and makes lenders wary of buying firms saddled with bad loans. ‘Why would you want to buy somebody else’s problems when you’re still trying to figure out what your own are?’ Robert Patten, a New York-based analyst said. ‘Banks don’t know when the next guy is going to walk in and hand them the keys for a place.’”
“The company that for years brought hundreds, if not thousands, of people to Bella Vista in hopes of selling them a piece of the ‘village’ has gone out of business. National Recreational Properties Inc., with an office in the Village Center along Arkansas Highway 340, ceased operating in the city last week, according to a woman still on the payroll.”
“NRPI was known for its late-night cable commercials starring former TV star Erik Estrada, who tried to sell lots mainly to retirees.”
“The company will continue to offer its approximately 2, 000 Bella Vista lots through its offices on the West Coast as best it can, he said. ‘As the owner and seller of properties, we’ll entertain anyone interested,’ said Joe Joffrion, executive vice president and chief legal officer for NRPI in California, adding there probably won’t be much in the way of offers.”
“At 23, Adrienne Dodge didn’t think she’d be able to buy a house, but the fourth-grade teacher at Lakewood Elementary School closed on her new home last week. Dodge is one of 170 teachers who were given home loans and help with closing costs on new homes through a joint effort of the S.C. Department of Education and the State Housing Finance and Development Authority.”
“‘Just being a first-year teacher with a car payment, etc., I was just looking to rent,’ said Dodge, who bought a condo close to Lakewood Elementary School. ‘But this is just awesome. The money I would have been spending on rent is going toward something I own.’”
“JoLea Wegner, a math teacher at Socastee High School, also didn’t think she’d be able to buy a home any time soon.’I couldn’t have gotten a home loan without this program because my salary as a single parent is just too low,’ Wegner said.”
“‘I own a home here now. I am definitely tied to the area,’ she said.”
“Having studied America’s mortgage meltdown and the parties who struck the match, it’s hard to resist cheering the reckoning for Countrywide Financial Corp. Already, the nation’s largest home lender was under federal investigation for fraud, as executives allegedly understated the risks of investing in mortgage-backed securities.”
“It was reported that former CEO Angelo Mozilo - who cashed out as his company tanked - had cut special home loans for members of Congress.”
“Of course, Countrywide’s comeuppance is nothing to celebrate, since its senior managers dragged down so much with them. Still, it’s refreshing to see prosecutors pursuing alleged corporate abuses with vigor.”
“While some out there are eager to place the blame for the nation’s economic woes on ill-informed borrowers, in fact it’s a two-way street. Private lending institutions got in on the game, too, seeing securitization as a way to off-load loan risk onto investors.”
“Wall Street, meanwhile, salivated over the potential yield from securities backed by ‘nonconforming’ loans. Lenders were happy to oblige by originating these risky loans.”
“When they couldn’t pay … well, you know the rest. This cautionary tale of alleged greed trumping responsible lending practices is one for the books.”
Another historic week! My thanks to those who support this blog. Please check back this weekend for news, your market observations and topics.
Indymac officially failed.
http://www.fdic.gov/bank/individual/failed/IndyMac.html
I got out early from IndyMac for my CD’s and I just cashed and deposited the check on July 02, I hope it doesn’t go NSF.
I went with BofA they gave me an off book CD rate.
IndyMac Bank, F.S.B., Pasadena, CA, was closed today by the Office of Thrift Supervision. The Federal Deposit Insurance Corporation (FDIC) was named conservator….
“The Federal Deposit Insurance Corp. will run a successor institution, IndyMac Federal Bank, starting next week, the Office of Thrift Supervision said in an e-mail today. Customers will have access to funds this weekend via automated teller machines.”
THE THRIFT IS DEAD! LONG LIVE THE BANK!!!
seriously, this is too ridiculous, The OTS shuts down a savings and loan (stock was at pennies), FDIC takes conservatorship, Charters an actual bank, and hands over the keys…oh yeah, some serious deposit money was left on the tables, but thats ok the ATM’s workin just fine.
Otis torts, “Well, guess thats that.”
“Just have some papers you need to sign, and I’ll be on my way.” Fedic renumerates.
Gramm opined, “Quit yer whinin and starts yer signin you aint winnin, so stops denying.”
Countrywide Financial Corp.
Tan Man was part of the start up of IndyMac….cmon ben. you know Im on.
http://www.usatoday.com/money/industries/banking/2008-07-11-indymac-shut-down_N.htm
Indiana Loans and the raiders of the lost part…
Next?
I have some money in Wachovia. I will rectify that Monday.
If you’ve got less than 100,000, I’ve heard it’s no big deal to get the cash from the FDIC - ‘course, you might not wanna find out just how *not* a big deal…
Argh. I went to the FDIC website to evaluate my main bank before I chose them, but I don’t really know whether or not my evaluation was good. I use FNBO. Maybe I shoud diversify banks. I also $5k in IndyMac CDs in my IRAs.
http://www.thestreet.com/story/10424243/1/is-your-california-bank-financially-safe.html
http://www.bankrate.com/brm/safesound/commmm.asp?fedid=527954
(If anyone’s still awake, bored, and sober, that is)
Jimmy Mack, there’s a new sheriff in town…
IndyMac, Indy
Oh, IndyMac
When are you comin’ back?
Oh, IndyMac, Indy
Oh, IndyMac
When are you comin’ back?
My debit card is missin’ you
My Alt-A loan feels the same way too
I’ve tried so hard to be on time
Like I promised to my very last dime
But this lender keep’s a coming’ round
They’re tryin’ to refi me down
IndyMac, Indy
Oh, IndyMac
When are you comin’ back?
Oh, IndyMac, Indy
Oh, IndyMac
When are you comin’ back?
Need your loanin’
Need your loanin’
Lender calls me on the phone
About three times a day
No, my wallet’s not listen’ to
What the lender has to say
But this indebtedness I have within
Keeps reachin’ out to refi for another day
IndyMac, Indy
Oh, IndyMac
When are you comin’ back?
Oh, IndyMac, Indy
Oh, IndyMac
When are you comin’ back?
Need your loanin’
Need your loanin’
Good job~
Just made my donation! When are you going to start taking Euros instead of USD?
Oh, no, a Minnesota post. One of my cousins is/was a real estate agent there. And I’ve been hesitant to ask my aunt about his status in that field.
Too early in the day to call my aunt. So, I called Uncle Google instead.
Cousin is indeed still in real estate. Which means that the Arizona Slim mouth (aka The Troublemaker) should avoid the topic of real estate when talking to aunt.
Wise advice to give to one self Arizona
Slim,
Is Reid Park Zoo a worth seeing with the family?
Eric
Atlanta: “City code inspectors have begun ticketing some listing agents, holding them liable for code violations on run-down properties they are selling, often for out-of-state institutions.”
“They noted the city code gives officers leeway to cite anyone from the owner to someone who has the ability to control or maintain the property.”
————————————-
LOL! Who wants to be a real estate agent? Show hands!
I do. I write a lot against agents of all sorts (real estate, insurance, etc), but I fear using the trademarked term such as Realtor. But if I _was_ a Realtor, it would give me some clout, and maybe allow me to disparage my new brethren.
So if the test isn’t too hard, I think it would be worth it to get the title. Plus, the annual fee to stay a member would be offset by all of the AdSense income I’d make with the millions of links I’d get from people saying “See, this Realtor gets it!”
My business card would have me in my Christian Mom Pose (with the big hair), and the back would say:
1. They are building more land.
2. It’s not different here, or anywhere.
3. Housing rarely goes up more than it costs to keep.
4. You will never be priced out forever.
5. A house is almost never a good investment.
6. Now is not a great time to buy.
7. You probably can’t afford it anyway, but I list rentals too.
I’m sure you meant:
1. They a®e building more land.
2. It’s not diffe®ent he®e, or anywhe®e.
3. Housing ®arely goes up mo®e than it costs to keep.
4. You will neve® be p®iced out fo®eve®.
5. A house is almost neve® a good investment.
6. Now is not a g®eat time to buy.
7. You p®obably can’t affo®d it anyway, but I list ®entals too.
A.B Dada,
Perfect. Don’t change a thing. Most refreshing. It’s been my approach for years. There are about as many mutual funds as there are stocks. Remind me again, why is it that we see fit to keeping so many of these people employed in redundant products ( especially when 80% of them can’t keep pace with their index? )
Given the last few years, it hasn’t been a matter of making money on/with Wall Street. It’s been more a matter of trying to move forward IN SPITE of Wall Street.
Annuities s*ck. “Managed” accounts s*ck. Investing for the “long term” doesn’t work any more.
etc. etc. You know “I” like it!
I am starting to think the new motto should be:
“Worry about the short-term, and the long-term will take care if itself”
Anyone see Goodfellas? Makes me wanna go Billy Batts on a fundie.
Sell now or be priced in forever.
How’s that for real life JT treatment?
Let ‘em squeal - run a few more of the faint-of-heart out the business. The rest should remember the sensation for quite a while.
“Someone who has the ability to control or maintain the property”
Like, hm, let’s see, THE NEIGHBORS?
naw.. that’d be tresspassing.
Aside from the owners, who has legal right to be on a property.. several city agencies (cops, fire, utilities). Then there’s anyone who has a contract with the owners that specifically allows it (RE agents, pool boy, work-contractors, etc.)..
I wonder if the maid knows she could be cited..
As long as there’s not a no-trespassing sign, then you can be in the yard.
Mr. Vincent,
I wondered about that? As much as I hate realtors, just listing the home shouldn’t subject them to code violation liabilities. Especially selling abandoned homes. They’re just trying to get someone that ‘might’ appreciate the home in there. Oh and get 6%.
I agree Dinor, its quite strange.
Oh BTW, I remember you from that “other” blog out in Cali. Hope all is going well for you.
“Of course, who isn’t ready to ‘begin the journey,’ with homes sitting on the market for 159 days, negative equity becoming a major issue for many homeowners who didn’t put 20 percent down, and renting becoming a more money-wise option than buying in the Twin Cities?”
A lot of the people who “began the journey” earlier this year buying up “bargain” REOs are going to lose their shirts. In most places, home prices have a long way to fall before home prices are in line with incomes and rents. The market is likely to overcorrect because the house of cards that is the US economy is imploding. The reason is that American consumers can’t get any more money to spend–they can’t earn more, borrow more, or save any less than they already are.
Keep the popcorn popping,
Red Baron
Do the following to get through the depression: 1. Get and keep a job 2. Rent a place or live in an RV so you can be mobile for your job 3. Save at least 25% of your after-tax income 4. Eliminate debt unless you could pay it back if you lost your job.
5. Stop repeating same message over and over and over and over and over.
5. Stop being a jerk to others who post here.
Wow, coming from you Bruce that means a lot- I mean, you’re Bruce Dickenson!
You’re a real corker…what’s your message again?
1. Buy as much gold as you can.
2. Do your own due diligence and make sure to bury the gold in all the corners of the world.
3. Don’t keep any money at all in banks.
4. Go up in the mountains as often as possible and drink alcohol and look down on creation.
5. Go-juice and gold prices are going to go to the moon
6. Fiatscos are going to zero - don’t have any at all
7. Be ready to fly out of the country at a moment’s notice using the gold coin you’ve saved for this purpose. One must get to a different country because it will be safer since they don’t allow handguns.
8. Bury all family members with a gold coin in their mouths so they can pay the ferryman
Wait, I made this last one up. But did I miss anything? Oh yeah, before you worry about the splinter in your brother’s eye, take the plank out of your own.
The thing that bothers me is that this is not only not a path to greatness, it leads away. Try this instead: 1. Take risks, 2. Crash and burn until you figure things out, 3. Profit. It is scary and messy, but tends to work and sometimes has most wonderful results.
“The encouraging news today is we appear ready to begin the return journey.”
Getting half off on the rest of the journey of the Titanic when it’s taking on water is no bargain. I want no part of that journey. This is still a very dangerous time to be buying.
Get a 4-wheeler and a couple cases of beer and party on dude! (You don’t even have to ride , just park in front of gas station and chug with buddies.)
Work is a 4 letter word. Have fun!
35″ Northern this afternoon - boo - undersize for lake - tossed back. crap. 15.5 inch Brookie tasty.
“Do the following to get through the depression: 1. Get and keep a job 2. Rent a place or live in an RV so you can be mobile for your job 3. Save at least 25% of your after-tax income 4. Eliminate debt unless you could pay it back if you lost your job.”
Definitely worth repeating—might have new visitors to the blog who haven’t been warned. Also, thanks for the reminder.
The year is half over, have you done more than post here? If not, go and hit up Ben’s Paypal button and send this boy some money. If you get even an hour a week of great links and greater discussions, you’re saving yourself dozens of hours having to find this stuff yourself. What’s that worth to you?
How about $25? He keeps it going, gets frustrated, so pay the guy now!
Done….I just gave 25 using Paypal.
Gave $15. Money’s tight, but it’s money well spent.
“Wall Street, meanwhile, salivated over the potential yield from securities backed by ‘nonconforming’ loans. Lenders were happy to oblige by originating these risky loans.”
———————————
…..and, some of us “little people” were claiming a housing bubble as far back as 2002 while most of the bubble-headed media, and self proclaimed experts making big bucks could not see it.
So, any article that comes out now that tries to explain what happened makes me LOL. Some of us knew what was going on and what the consequences were going to be a long time ago.
Orange you on the run, yet?
____________________________________________________________
“It was reported that former CEO Angelo Mozilo - who cashed out as his company tanked - had cut special home loans for members of Congress.”
“Of course, Countrywide’s comeuppance is nothing to celebrate, since its senior managers dragged down so much with them. Still, it’s refreshing to see prosecutors pursuing alleged corporate abuses with vigor.”
Yeah, it seems like it would be so easy for the guy to disappear. Just sell all assets, put money in wife/kid’s names, take a bunch of gold off to a foreign country where bribery is de rigeur, and live the rest of his days in peace like any other old carrot.
From the North Shore News article:
“According to the board’s recent report, overall prices in the Greater Vancouver area were up 7.3 per cent in June compared to the same time last year, bringing the average residential property selling price to $564,982 last month.
In North Vancouver, since June 2007, the benchmark price of a detached home increased by 4.7 per cent to $893,639, the average attached home price increased by 8.1 per cent to $608,225 and the average condo price rose by 4.4 per cent to $386,212.
In West Vancouver, over the past year, detached home prices have risen by 0.9 per cent to an average $1,428,139, while the average attached home price increased by 4.9 per cent to $719,783, and the average condo selling price was up by 6.9 per cent to $711,268.”
Yikes…100% unsustainable prices. Buh-bye, Vancouverites, who bit at those.
It appears we had a WORDLWIDE housing bubble. Even in places like Ireland and New Zealand.
When is someone going to write a book called “Dow 6000″?
Darn right the Bubble was worldwide. The weird thing is, despite the huge variety of cultures across the globe, everybody reacted to it pretty much the same way.
See “Property Deflation Sets In,” from the Korea Times.
http://tinyurl.com/5mwjqa
mmm. I think global, too. I just got back from vacation in several European cities, as well as smaller towns. There were a surprising number of real estate agency/offices. In one small French town we passed 7 in a 2-block radius. I wasn’t paying any attention to real estate the last time I was in that region, so cannot say if it’s always been that way? However, it seemed noticeable and strange.
Paris real estate was a bit cheaper than Vancouver according to the realty storefronts. Vancouver appearts to be flirting with a meltdown, although I have no idea how anything will play out, and have stopped trying to guess. You win, mr. future, I have no idea which way you’re going.
Oh, I think the future holds Vancouver real estate at the bottom of a massive hole.
Toronto’s, too. Sky-high prices for crap when we passed through ( I had to get a newspaper to read the r.e. ads of course ) on our way to a family reunion in Northeast Ontario….
“Oh, I think the future holds Vancouver real estate at the bottom of a massive hole.”
agreed - it’s the how not the where that holds the mystery for me. should have said that more clearly!
Dow 6000 - that’s what I’ve been waiting for. Still am, but it’s getting closer. When I posted on a tightwads board that I was out of the stock market until it went down to 8000-9000 Dow, I was informed that that was never going to happen - impossible - you see, the companies are too well capitalized. Looks like they’re losing capital at a mighty fast rate, and we’re a lot closer to Dow 9000 than we were a year ago.
We went to see Hellyboy II tonight. Very much worth the $$. Extremely well done & very funny. Plus, the fight scenes and wreckage reminded me of the condition of the economy. Phil Gramm must have very good investments if he’s not feeling any pain and telling us that the recession ( ha !) is in our heads. Idiot.
I just got back from visiting relatives in Salisbury, MD for the past couple of days. There’s a small town nearby, Hebron (pop. ~1000), that wants to develop a large area of land that would add ~1600 homes and shopping centers. The locals are trying to fight it, but apparently unsuccessfully. I can’t imagine who they think is going to flock there. My uncle says the area is a popular with PA and NY retirees who sell their homes for a windfall and pay cash. Still, that’s an enormous town expansion.
http://www.delmarvanow.com/apps/pbcs.dll/article?AID=2008806260360
Right over the Sussex Co. DE border… Salisbury, MD basically. Are they $#^%$^ nuts?????? Why would anyone buy in Salisbury when you’re that close to no tax Delaware? And with the growing inventory in that area, it makes no sense.
What made the FDIC closing down banks so effortless in the past, was they could always find another bank to take over problems, but now oh so many banks are home-less orphans…
“U.S. banks are merging at the slowest pace in at least 15 years as the mortgage-market collapse depletes capital and makes lenders wary of buying firms saddled with bad loans. ‘Why would you want to buy somebody else’s problems when you’re still trying to figure out what your own are?’ Robert Patten, a New York-based analyst said. ‘Banks don’t know when the next guy is going to walk in and hand them the keys for a place.’”
good lord.. Has there been a single moment in any day of your life when you had even the slightest inkling that even the tiniest patch of the sky might not be falling?
‘Why would you want to buy somebody else’s problems when you’re still trying to figure out what your own are?’
As I waken from my long nap and before I pop a brew, the same question should be asked by all prospective buyer of anything in this market! Houses, stocks, bonds - they are all problems.
I am very depressed this evening. Several months ago, I made a stupid ass prediction on the number of BKs in the stock market. I was wrong.
My SA predictions were based on $115 avg oil and the corporate debt was still as bad as last June.
No more estimates from me. They are off the chart.
I shall change my sign on from hoz to ‘Arbiter de materiei obscura ‘.
“Darkness of slumber and death, forever sinking and sinking. ”
Henry Wadsworth Longfellow
Just keep fishin’ hoz. Everyone will weather this, or they won’t.
Michigan man shoots and kills his Realtor ™
http://www.businessweek.com/ap/financialnews/D91LB27O1.htm
Having dealt with about 10-15 Michigan realtors over the years, it seems a little extreme, but it’s a plan, man.
Today’s Smackdown:
The American dream turns into a quagmire
Commentary: ‘Credit Crunch the sequel’ bigger than the original
By MarketWatch
LONDON (MarketWatch) — To paraphrase a recent newsmaker, America’s mortgage chickens are coming home to roost.
The incipient collapse of Freddie Mac (FRE) and Fannie Mae (FNM) will in all likelihood dump an additional $5 trillion in debt onto the national books by making explicit the companies’ dependence on the American taxpayer as their ultimate backstop.
No glib politician, let alone Treasury Secretary Henry Paulson, will be able to talk their way out of this one.
And the world’s leading sources of capital, China and the Gulf oil states aren’t about to sign on to support the political priorities of Washington, D.C. politicians looking to subsidize home ownership and get themselves re-elected.
Instead, America is just going to have to work its way through this mess on its own.
It will not be a pleasant process.
Wall Street will cherry-pick the productive mortgages, and the rest will be dumped on everyone else’s doorstep.
People who didn’t borrow cheap money they couldn’t afford and who paid their mortgages on time, will nonetheless have to pony up more taxes to cover the losses incurred by their profligate fellow citizens at the prodding of an elected class that sought to extend homeownership to every American capable of casting a vote.
Maybe, just maybe, the political class will finally have to own up to making some difficult choices: eliminating a couple of aircraft carriers for a start, and that $100 billion a year they spend on the department of education.
It might be a good idea to scrap that new air tanker contract too, given that they can’t seem to get it awarded anyway.
If they had any real guts, they’d use this occasion to get rid of the mortgage interest deduction. After all, given that Congress’ popularity rating is in single digits already, why not take advantage of the opportunity?
And if the Iraqis can’t use their oil wealth to outsource their internal security needs with oil pushing $150 a barrel, they’re never going to be able to.
A high school teacher of mine used to say it didn’t matter how much money the government borrowed because it was a measure of how much faith Americans had in their future.
We’re about to find out.
Americans are MAD, it’s pitch-fork time:
http://tinyurl.com/5e567d
The end of the Gilded Age is upon us.
The people are against any F-word GSE bailout. Furthermore, we neither have the time nor the money to execute such a bailout. Those are the 2 reasons why I believe that it will not happen.
I still just don’t understand what we can do about it. Everyone complains, everyone knows what’s wrong, but it doesn’t seem like we have the power to fix it.
We write to congress people, our senators, our governors, mayors and officials at City Hall. But it all seems to be in vain. They just don’t care or listen. They carry on as they always have and if they get voted out, the next person does the same thing. Or worse yet, the sheeple just vote the same politicians back in time and time again.
I read this blog (and other sites) almost every day. And much like politics at work, it just infuriates me. But what can be done? All the complaining needs to stop. It’s time for action, but what action is there to take? It’s like no matter what we do, there is always someone bigger and more powerful there to shut us down. I feel so very lost sometimes.
I can move jobs if I want to get away from the politics (just to end up in another similar situation), but it’s not so easy to move countries. But packing up and running isn’t the answer either. We need to fix the problems. But how?!
If there was an easy answer, it would have been proposed by now. Half the people think the government needs to bail out every FB to save America, the other half cringes at the thought of throwing taxpayer money at a problem that will just get worse, and instead want the market to shake this out on it’s own (most of us on this blog I assume fall into this category). Just look at it as one big sociological experiment, enjoy the show, and whatever happens, don’t forget to learn from it. History always repeats itself…
Hailey, I share the same frustration. Sadly, I haven’t yet come up with an answer. I’m encouraged by the moves Ron Paul supporters are making (now taking steps to take over local government - city council, tax assessor/collector, etc), but in the end I’m not sure how fruitful that will be. When it comes down to it, it’s not just about action in that sense. Other people need to be converted. They need to be educated. In my experience, most people aren’t open to this.
For example, my girlfriend sent out an email urging people to email congress and ask them to take “common sense measures to reduce oil prices” or some such. No doubt a form letter (funny that I’ve gotten emails from a few airlines asking me to do the same thing). I replied, asking what control congress has over oil prices, mentioning it’s a global market, suggesting she look at the price of oil in terms of gold, euros, yen, or francs. I suggested that the dollar devaluation is a large part of the rise in oil prices, and sent links illustrating there is increased demand as well, from China, India, and other emerging economies.
I got no response. When asked about it, she said it was “too complicated”.
I’m all for people making different decisions than I would prefer/pursue, but they better be educated decisions, and they better be able to justify them. I’m not sure how to get people to care about those pesky “facts” and to educate themselves. But I think that is the key. If we don’t hold the positions of power, then we need the numbers. Unfortunately, as each day passes I become more convinced that will never happen.
J
It’s so frustrating to know something is wrong and it’s double frustrating to know what needs to be done, but have no power to make it happen. I knew we were doomed for sure during the 2000 election. Regardless of how anyone feels about Al Gore, I found it frightening to hear so many say they wouldn’t vote for him because he was too smart or they didn’t want to be lectured, or he was too serious. Then that was topped by people in 2004 that would actually say they wouldn’t vote for Kerry because he looked French. Now we have king dittohead telling people to totally screw up the platform process on the dem side. I know platform process doesn’t mean much anymore and hoards of people don’t know it exists or what it’s for, but come on already - why not educate people on the process and get them involved in a positive way. Even when we disagree on this blog, there is research, intelligence, common sense, humor and reasoning. But I believe this is a minority - the inmates are running the asylum.
You can back people like T. Boone Pickens, who has a viable energy plan. Contact him via the pickensplan website and ask how you can support him. Locally, I’ve decided to contact the fellow who has put together a pretty good, very detailed mass transit/light rail plan for the Tampa Bay area. I want to know how I can support him. If you have local farmstands and produce sellers, support them. Find out how you can convert your vehicle, if possible.
Most of all, communicate with people who are of like mind to you and don’t suffer fools gladly. It’s time the mouthbreathers get out of the way.
Frag that! I have no idea if Mr. Pickens has a “viable energy plan”; but at least he has a plan.
“A good plan, violently executed now, is better than a perfect plan next week.”
Gen. George S. Patton III
Our government has not had an energy policy in 40 years.
“We need to fix the problems. But how?!”
I’m convinced that enough people will have to feel enough pain before enough people will demand change and possibly get that change. That pain is coming, and lots of it. People have been too comfortable for too long. The frogs in the pot are finally starting to notice that the water’s getting warmer. Soon it’s going to be scalding. Will they jump out or perish?
Pickens doesn’t have many who like him. In politics.
Does that mean his chances are… slim?
Unpopular with politicians and political types?
Couldn’t imagine a more ringing endorsement to me.. Sign me up!!!
Quotes dug up by Rich Tascano over at the Voice of San Diego:
“[House] price increases largely reflect strong economic fundamentals, including robust growth in jobs and incomes, low mortgage rates, steady rates of household formation, and factors that limit the expansion of housing supply in some areas.” — Fed Chairman Ben Bernanke, Oct. 20, 2005
“[The housing downturn] looks to be a very orderly and moderate kind of cooling.” — Fed Chairman Ben Bernanke, May 18, 2006
“All the signs I look at [show] the housing market is at or near the bottom.” — Treasury Secretary Henry Paulson, April 20, 2007
“I don’t see [subprime mortgage market troubles] imposing a serious problem. I think it’s going to be largely contained.” — Treasury Secretary Henry Paulson, April 20, 2007
“Given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited.” — Fed Chairman Ben Bernanke, May 17, 2007
Looks like we’re OK boys and girls….doesn’t it??
Maybe not!
Office of Thrift Supervision shuts down IndyMac
Friday July 11, 7:09 pm ET
By Alex Veiga, AP Business Writer
Office of Thrift Supervision steps in and closes IndyMac Bank; FDIC takes over operations
LOS ANGELES (AP) — IndyMac Bank’s assets were seized by federal regulators on Friday after succumbing to the pressures of tighter credit, tumbling home prices and rising foreclosures.
Where is the accountability Curt? Pitchforks and blood.
Be afraid DC. Be very afraid.
“I think as far as the adverse impact on the nation around the world, this administration has been the worst in history.”
President Jimmy Carter
June 2007
(The White House response: Carter is becoming “increasingly irrelevant”.)
I really disliked Carter, but he is correct.
“I really disliked Carter, but he is correct.”
Ditto!
You know you’re a POS when Carter can slam you and it sticks!
Mike
“Looks like we’re OK boys and girls….doesn’t it??”
It’s not a big leak and there’s no reason to be concerned. We’re just letting in a little ice cold Atlantic water to chill the champaign.
Indymac is now under FDIC control!!
OT: IndyMac is officially gone.
http://www.fdic.gov/bank/individual/failed/IndyMac.html
Went to my political club today (R winger) and a local realtor came up and pleaded for someone else to take his board job because real estate is so bad now he can’t come to meetings - meaning what? He has to work more or - ?? And this guy is a well established CE-ranchland agent, not some wet behind the ears kid doing resi. Good thing the traffic at my bl-g is low or I’d feel guilty.
But it seems obscene to not say something about the market when the mayor here is talking about “affordable housing initiatives” and setting aside all sorts of City time to *talk* about it.
IndyMac is DOA!! Just the start!! http://www.marketwatch.com/news/story/regulators-close-indymac-bancorp-/story.aspx?guid={70BB963E-92BB-4BC5-B039-30BFDEA63D8D}
Wow, Fox reporting feds took over IndyMac…
Is Bloomberg into this “J T” thing?
Lehman Takes `Pounding’ as Speculation Hurts Shares (Update1)
By Yalman Onaran
July 11 (Bloomberg) — Lehman Brothers Holdings Inc., the securities firm that lost almost 75 percent of its market value this year, sank to the lowest since 2000 in New York trading as customers’ votes of confidence failed to halt speculation that the stock may drop further.
“JoLea Wegner, a math teacher at Socastee High School, also didn’t think she’d be able to buy a home any time soon.’I couldn’t have gotten a home loan without this program because my salary as a single parent is just too low.”
Thank goodness teachers here in Canada are paid the professional salaries for the professionals they are.
My 39-year-old brother is a HS history teacher in a Pennsylvania public school and makes at least $125,000. That seems professional to me.
It is a different world once you go below Virginia as far as Teacher pay, benefits and job security are concerned.
The Northern states pay to educate the future teachers of America and then ship them down South to where there are actually jobs.
Teaching positions pay very, very well in the Mid-Atlantic states on up the seaboard, so you see very little turn-over compared with Southern states.
Eventually all the Yanks that move south will want the same perks they get up North and their taxes will go up as well.
Just like the textiles moving from New England to PA to NC to Mexico. It is another example of the lowest common denominator or path of least resistance coming into play.
Not sure about the entire south, but in AR pay seems to vary significantly by school district and quite a few of the districts pay reasonably well by my reckoning.
A friend of mine’s wife graduated (locally) and got a local teaching job starting at 29k. This was probably 5-6 years ago. When you consider that teachers have better than average benefits (including a state pension), work 9 months out of the year (which makes her example compare to about 40k for a normal job, not bad for a recent grad) and have much better than average job security (it’s difficult to fire a teacher for anything less than sex with a student, and even that gets paid leave for a bit), I would say it’s a reasonable pay.
California has a budget deficit to the tune of 15B.
But the public employees can retire at 50, with full pay for the rest of their life.
For a salary of 100K, that’s 100K per golden year, and
let’s say average of 30 years left, that comes out to be 3 millions.
Think taxes.
38 yr old SIL makes less than half that in CA being a HS history teacher. He does after school, coaching, dept chair and some other stuff to make a little more, but not nearly that.
I call BS. No 39-year-old in a public school in America makes $125k solely as a highschool history teacher.
I second the BS call. If he’s making that much, there’s another stream of income there.
Well, they usually just have a bachelor’s degree. They don’t get paid much in CA, but my teacher friends were all getting more than I was fresh out of college with a degree in molecular biology. I’m making more now, but that’s because I went into one of those related fields where it’s hard to find people.
Teachers are the most overpaid profession in America.
Luckily, they do not have to guarantee their product. Education in America reflects a great deal on our decay as a notion, I am deeply saddened by what I see and the lack of accountability.
Yes, you’re so right Frank Giovinazzi. My daughter’s $31,000 per year job as a high school language arts teacher certainly reflects their inflated wage. You betcha.
“Thank goodness teachers here in Canada are paid the professional salaries for the professionals they are.”
The issue isn’t teacher pay, but the obscene price of housing.
“‘I own a home here now. I am definitely tied to the area,’ she said.”
If she only knew how literal that statement will become, for her.
Darn, someone else beat me to the quote. I guess she doesn’t realize all the lost opportunities that she’ll be missing in the long run. It’s nice to know I’m not the only one who zeroed in on the quote.
It was interesting watching Kudlow tonight as he was harping on the steep rise in import prices. Says now that the FED should support King Dollar. The Dollar at this point is more like the Joker. Will Bernanke pull an Ace out of his hat? Will Queen Bee Paulson and the Treasury sting the market with a nationalization of Fannie and Freddie? Will BankMan and Robbin’ catch the falling Joker? Stay tuned next week for another episode…
Same time same bail-out channel
Did you get my message : )
I live in Fl.
Got it Tom.
Perhaps you should know a little bit more about Larry Goldilocks Kuntlow.
From search for “larry kudlow drug addict” for what it is worth
You see, both Kudlow and Cramer have skeletons in their own closet. Kudlow nearly had drug and alcohol abuse destroy both his career and his life. Ironically, Cramer is also an admitted addict. His new book, “Confessions of a Street Addict,” is in part both a response and confirmation of some extremely unflattering charges (including insider trading and conflicts of interest) made in another book by a former employee of his. There is no doubt that both Cramer and Kudlow have an interest in lowering the character bar for whom is allowed the privilege of getting paid to pontificate on TV.”
“However, lower listing prices do not mean that home prices are decreasing, he explained in an interview. ‘It’s not even that prices have gone down, it’s just that they aren’t marked up,’ he said.”~~
What!? He’s joking, right?
That made my brain hurt.
We have accounts at Wachovia. I’ve been telling hubby maybe it’s time to get them outta there. What banks (we’re in SE region) would be safe?
M.
I would think that at this point any bank that was in a previously high growth area(growth for growths sake) and any bank in an area of rapidly declining area are unsafe.
This would put most banks in the Southeast, West and Upper MidWest in peril.
The SouthEast is dependent upon new people moving in to keep the balloon in the air. The West Coast is dependent upon flexible credit terms to keep the balloon in the air. The upper Midwest is dependent on some kind of economic recovery for outdated factories.
I would say the Southeast will hold up the best for a while, but like the Southwest US, they are probably more dependent upon growth for growth’s sake to keep things humming. Take that away and there will be a lot of illegal immigrants with a hard decision to make. The standard of living(crime from gangs and illegals who no longer can get day jobs) might become so bad that the growth will come to a stand-still and people with very shallow roots might go back to more affordable areas.
Almost any non European or American bank. Japanese, Chinese, South American, Korean, ICICI (Indian)…. Banks that do not have large exposure to commercial loans…60% of the portfolio. Ideally 25% a bank can handle.
We are still in the early innings, maybe the bottom of the third. Problems to surface include but are not limited to: Credit Card defaults, commercial paper defaults, corporate bond defaults. These will all happen in the next two months. These will make the housing problem seem like a Sunday stroll.
“Problems to surface include but are not limited to: Credit Card defaults, commercial paper defaults, corporate bond defaults.”
Ditto #2! You’re on a roll tonight, hoz!
NPR just reported an unidentified source indicated the Fed will offer lines of credit to FNM and freddie.
Whoa! Northlake, IL made the HBB! Wow! Just Wow!
We had family in Northlake, they sold their house (it had the cutest little garden with a waterfall) when WMT came to town. It is the automotive section of a WMT now.
Since most HBBers have no idea - allow me to say - Northlake and Franklin Park, IL need to be added to the long, very long, list of good working class places molested by this boom.
If Mr. Brett Favre signs with the McCaskey Bears ….?
“Brett Favre with a broken leg is better than any quarterback we have had in the last 12 years”
Why stop at 12? Since Sid Luckman - Although Mr. Harbaugh has done wonders as a coach.
I hope Mr. Favre signs for lotsa moneys.
Harbaugh is doing good things at Stanford!
He played some high school ball across the street at
Palo Alto High.
(Shallow Alto for V and the Puss)
Mike
Just wondering if anyone caught this iphone gag on The Soup today. It’s hillarious. It’s funny because with the way the economy is going right now, I thought the release of the new iphone was badly timed today. This guy pokes fun at how his iphone can show him the best way to walk somewhere, since he can’t afford gas. And how it can download large documents like eviction notices.
http://youtube.com/watch?v=cDZUk67FpB0
Very funny. Thanks for the link.
light rail, mass transit plan in the Tampa Bay region??? An plan now is at LEAST TEN years to late…oh but you say start now or ten years from now what will we have? Its not going to happen….the infrastructure cost is way beyond the cost that Floridians can afford ….. if you believe the Tampa Bay area will have any viable mass transit I have a bullet train to Disney World I will sell to you