The Housing Bubble

Can I throw out a question to the Californians here: how do you track sales histories and comparables now that the registries are off-line? Even Zillow does not show anything any more. Or do I need to get myself to the county in question and look it up in person at the courthouse?

Wow, something else no could have seen coming LOL. I’m telling ya this coming year is going to be more fun than a SNL comedy skit.

Banks in Need of Even More Bailout Money!

Article Tools Sponsored By
By EDMUND L. ANDREWS and ERIC DASH
Published: January 13, 2009

WASHINGTON — Even before word came on Tuesday that Citigroup might split into pieces to shore up its finances, an unpleasant message was moving through Congress and President-elect Barack Obama’s transition team: the banks need more taxpayer money.

In all likelihood, a lot more money.

Mr. Obama seems to know it; a week before his swearing-in, he is lobbying Congress to release the other half of the financial industry bailout fund. Democratic leaders in Congress seem to know it, too; they are urging their rank and file to act quickly to release the rescue money. And Ben S. Bernanke, the chairman of the Federal Reserve, certainly knows it.

On Tuesday, Mr. Bernanke publicly made the case that one of the most unpopular and most scorned programs in Washington — the $700 billion bailout program — needs to pour hundreds of billions more into the very banks and financial institutions that already received federal money and caused much of the credit crisis in the first place.

The most glaring example that the banking system needs even more help is Citigroup. Though it already has received $45 billion from the Treasury, it is in such dire straits that it is breaking itself into parts.

Like many banks, Citi is finding that its finances keep deteriorating as the economy continues to weaken.

Even some of the bailout program’s harshest critics acknowledge that things most likely would be even worse without it, and that the bailout had accomplished its most important goal, which was to prevent a complete collapse of the financial system.

Since last September, no major banks have failed and the credit markets have thawed somewhat.

But analysts said the problems are still acute, if less apparent on the surface. Banks have received $200 billion in fresh capital from the Treasury since last fall and have borrowed hundreds of billions of dollars more from the Fed. But in the meantime, the economy fell into a severe downturn last fall that is likely to continue until at least this summer.

Economic crisis may put pressure on democracy…

By Robin Kwong in Taipei

Published: January 14 2009 08:56 | Last updated: January 14 2009 08:56

Democratic institutions worldwide could come under increasing pressure this year as a result of the global economic downturn, warns Freedom House, an international rights organisation.

Christopher Walker, director of studies, said the impact of the financial crisis would present severe challenges “to all sorts of topographies of states”; the full effects on civil and political freedoms around the world remained to be seen.

Governments are likely to face increased social tension as a result of rising unemployment; this may be particularly acute in southeast Asian countries such as Malaysia, Indonesia and the Philippines, where millions of migrant workers are expected to return from overseas without work.

The warning comes as Freedom House found liberties declining around the world for the third consecutive year in 2008, after five years of expansion at the beginning of this decade. Some 34 countries saw falls in freedom last year, according to the group’s annual Freedom of the World survey, released yesterday for the first time in Asia.

North Korea remains the least free country in the world; Finland is the freest. Sub-Saharan Africa saw the worst setback in freedoms, with nearly a quarter of its countries seeing falls.

Mr Walker said the decline was largely because “governments least welcoming to democratic freedoms marshalled their resources” after the ‘colour revolutions’ in post-communist states such as Ukraine and Georgia between 2000 and 2005.

Authoritarian states, led by Russia and China, were employing more sophisticated methods against opposition – including judicial investigations, media censorship and internet control – to curb freedoms. “The tools that are used to suppress freedom are more nuanced and more institutionalised.”

Copyright The Financial Times Limited 2009

Median sales price in Detroit metro area falls 46 percent YOY in 2008.

Median sales price in Detroit in 2008: $ 7,500.

Demolition permits outpace building permits. For every 4 houses built, 5 torn down.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20090114/BIZ01/901140383

“In the city of Detroit, the median price for a home was halved in 2008, to just $7,500 from $15,000 in 2007.”

I thought that was a typo, but that is what it says.

The average UAW wage is 27 dollars an hour, or around 55k a year. Bit of a disconnect, no?

“Analysts are fearful that banks’ credit problems, which up until now had been largely concentrated in mortgages, are spreading to other portfolios, like credit cards and auto loans, setting up 2009 to be another year of multibillion dollar losses.”

One more to file under who could have seen this coming. You mean to tell me that debt defaults are not contained? And that debt, is debt, is debt?

http://finance.yahoo.com/news/Stock-futures-point-lower-apf-14056612.html

Hedge-Funders Are Bullish on Gold, Guns, Inflatable Lifeboats

http://nymag.com/news/features/all-new/53372/

Not exactly bullish for real estate.

Nortel files bankruptcy. From globeandmail:

Former technology titan Nortel Networks Corp. is expected to file for bankruptcy protection as early as today, sources say, a move that will likely see what was once Canada’s great corporate success story broken up and sold to foreign rivals.

Bloomberg: Retail sales fall 2.7, ex autos 3.1

Retail sales were projected to fall 1.2 percent after an originally reported 1.8 percent drop the prior month, according to the median estimate of 78 economists in a Bloomberg News survey. Forecasts ranged from declines of 3.5 percent to 0.3 percent.

Sales fell 0.1 percent for all of 2008 compared with the prior year, the first decrease on record. November’s decline was revised to 2.1 percent from a previously estimated fall of 1.8 percent.

I was “asked” to move from the securitization and derivatives group to tax-exempt tax group. It’s better than losing my job, but I’m getting too old for so much change. I hope I enjoy it as much.

The market looked like it was going to turn yesterday. We straddled the downtrend line throughout the day and closed right on it. It closed at 871.79. As a result of today’s retail sales number, however, it looks like we’ll bounce away from that line. It’s going to be an interesting day b/c 850 to 865 is support.

China’s trade figures:

Exports were down 2.8% (exports to US down 4.1%)
Imports down 21.3%

China’s surplus $39B 1st time it did not hit a new record. 40.2B would be record and for the last 6 months of 2008 China’s surplus is only $197B, but who is counting.

China’s exports are doing fine, but the consumption side of the ledger is a nightmare for us and Europe. To sustain the exports it is probable that China will continue to buy sovereign debt from the US and Europe.

Blingada, bangada…boom!

Tiffany cuts forecast, posts holiday-sales decline:

http://www.marketwatch.com/news/story/Tiffany-cuts-forecast-posts-21/story.aspx?guid={54971975-E469-4544-AB77-81731C1499E0}

Starmucks coffee still $9.99 per bag at Stater Bros…

BWAAAAAHAHHAHAHHAHHHA!!!!!!

Hey now… leave Donald “Pucker-lips” sTrump alone, he’s an American genius!

“These real estate tycoons imported the global financial crisis to Israel,” said Gill Beeri, managing director of Ramat Gan, Israel-based Ayalon Financial Solutions Ltd. Its Smadar fund lost 14.1 percent in the first 11 months of last year. “There’s increased concern that these companies may default.”

Billionaires Burn Israeli Savers on New York, U.K. Land Deals:

http://www.bloomberg.com/apps/news?pid=20601109&sid=aknybsZJKX2w&refer=home

LONDON — Swiss bank Union Bancaire Privée kept hundreds of millions of dollars of its wealthy clients’ money in Bernard Madoff’s alleged Ponzi scheme despite warnings from its own research team, according to people familiar with the matter.

While others in the investment community had questioned Mr. Madoff’s strategy and chosen to stay away, the instance offers a sign that red flags were raised within one of the large institutions that actually invested with Mr. Madoff.

…”
WSJ

Some firms did not perform due diligence, those that did ignored the analysis. UBP screwed with its customers. Like all F’k ups, it deserves to go under.

Next?

Jan. 14 (Bloomberg) — Greece had its sovereign credit rating lowered one step by Standard & Poor’s, which cited the country’s weakening finances.

The rating was cut to A- with a “stable” outlook, S&P said today in a statement from London. Greek stocks and bonds fell after the announcement.

as someone here on the board pointed out a few months ago, here is a little something for Mr. Schrenker who was apprehended today

remember kids it’s down the road not across the street
http://www.cuppatea.org/rememberkids.jpg

Exclusive analysis, Part 1: The staggering cost of new nuclear power

A new study puts the generation costs for power from new nuclear plants at from 25 to 30 cents per kilowatt-hour — triple current U.S. electricity rates!

This staggering price is far higher than the cost of a variety of carbon-free renewable power sources available today — and ten times the cost of energy efficiency (see “Is 450 ppm possible? Part 5: Old coal’s out, can’t wait for new nukes, so what do we do NOW?“)….

http://climateprogress.org/2009/01/05/study-cost-risks-new-nuclear-power-plants/

Solar et al are a lot less expensive than 25 cents /kwh. The link is to climate progress which analyzes the paper and gives a link to the pdf.

It is the first detailed study in 30 years of the cost in the US of a new nuclear reactor.

Annie get yer gun and pocket knife!

“Hunter said unnamed Obama officials have said bases such as Pendleton could be tapped to house detainees moved out of a shuttered Guantanamo.

Camp Pendleton officials referred questions about the proposal to Defense Secretary Robert Gates, whose spokeswoman Cheryl Irwin said that if Obama does order Guantanamo closed, military bases are not ruled out as possible relocation sites”

Could the next bubble be luxury apartments? Here in Norfolk, VA there are tons of new apartment buildings going up. Condos sit empty and unsold. Rents are trying to go up, but at least with the company I’m with they have more openings than ever. Oh, and about 1000 new apartments coming on the market, all of which will probably be priced at the extreme of the market. Luxury, aka hardwood laminate, stainless steel and granite or something similar to it.

My wife is going to quit her job as a teacher after this school year. Taxes are so high on the additional income, it’s just not worth it. It got me thinking - maybe moral hazard isn’t that rewarding risky behavior makes people repeat the risk again. Maybe it’s that it causes good people to give up.
Is it even remotely possible that the more the government bails out the people that caused this crisis, the more the responsible people will stop producing and buying? Maybe the 50% of people that always take their obligations seriously, the backbone of this country, now have in the back of their mind “gee, another $2 trillion I gotta pay back, why work?” Or “I gotta pay back another $2 trillion, better not buy that new car”! I know that Ben, and many on this board have said not to worry about these $trillions, that there’s no way to pay it back, but for many people financial responsibility is not so easy to turn off.

Why don’t they ever consider doing something for the people who didn’t screw up?

my husband has been introducing me to “the Godfather” movies, which I have never seen before.

one line I love: “hold your friends close, hold your enemies closer.”

and so I do. frequently I check the Builder Online and Big Builder Online sites for interesting info.

today’s article of interest:
Starting Over: The economic crisis forces the home building industry to reassess the fundamentals of its business.

I would like to respond to this post from yesterday..

If your libertarian utopia is really a possibility, could you please direct us to a region in the world where **no** government infrastructure, healthcare, education, military, etc. exists and where the people of this region have greater measures of health, wealth, literacy, etc.?

Please back up your theories with credible examples, as it would really help to convince those of us who doubt libertarianism and Darwinian capitalism will result in a more successful society.

The fact that violent thugs have at all times ruled over the ignorant masses does not in anyway disprove my assertion of what is good and in the best interest of man kind. But there is a VERY STRONG correlation between government size and economic collapse.

Some people set about to solve “world hunger” but this requires resources and a productive society. A libertarian “utopia” simply requires that individuals stop systematically stealing from and killing each other.
This is something that could be “decided” upon and made a reality and the result would be increased prosperity.

Everyone who promotes this tax or that tax to fund this or that “public good” takes some very arrogant positions:
1) They know better than everyone else on where to invest
2) Their sence of value is better than everyone else’s
3) They may steal to accomplish their goals, but no one else may
4) They may kill to accomplish their goals, but no one else may

The closest example I have would be the decades that followed the revolutionary war. There was no wide-spread government education (yet people were far better educated), the vast majority of roads were privately funded (and were being built at a rapid pace), our heath care was among the best in the world at the time, and no standing army was necessary to defend the country (we had militia).

Clearly the non-libertarian approach has failed repeatedly throughout history and the closer societies got to the libertarian ideal the greater their economic productivity and standard of living.

“Everyone who promotes this tax or that tax to fund this or that “public good” takes some very arrogant positions:
1) They know better than everyone else on where to invest
2) Their sence of value is better than everyone else’s…”

Last night I heard some idiot talking head on TV say “we should have raised gasoline taxes as the price went down”. No one challenged him. I wanted to yell at the TV “who is this WE? You mean YOU want other people’s money, to steal as you deem appropriate! You want the money of the delivery man, the truck driver, the guy driving to his restaurant job, etc. Perhaps in your Godlike generosity you will deem to disburse this money to those you favor. It’s not your money!!”

Fed official expects start of recovery in 2nd half

In a speech Wednesday at the University of Delaware, Charles Plosser also said that the unemployment rate probably won’t drop anytime soon, but that he doesn’t expect it to rise to double digits, as it did during the recession of the early 1980s.

“I expect the housing sector will finally hit bottom in 2009 and the financial markets will gradually return to some semblance of normalcy,” said Plosser, adding that the current recession could be one of the longest in the post-World War II era.

“We must consider the possibility that our presence in these credit markets will deter private-sector participants from returning to and restoring these markets to health,” he said. “To prevent our policies from having these perverse effects, we should consider gradual increases in the cost of borrowing from these facilities to discourage their use and encourage other participants to return to the markets.”

“Clarifying the criteria under which we will intervene in markets or extend credit, including defining what constitutes the ‘unusual and exigent’ circumstances which form the legal basis for the Fed’s nontraditional lending, will be essential if we are to mitigate the moral hazard we have created,” Plosser said.

http://finance.yahoo.com/news/Fed-official-expects-start-of-apf-14058587.html

Mixing sports and real estate on ol’ NYC:

The Yankees have hired a division of a prominent Manhattan residential real estate brokerage, Prudential Douglas Elliman, to help sell some of their prime real estate: unsold premium seats and luxury boxes at the new Yankee Stadium.

Levine said that hiring Prudential Douglas Elliman was not an indication of a slow sales pace on high-end seats at the $1.3 billion stadium. Seven luxury suites remained to be sold, out of 59, and about 1,000 of 4,000 premium seats were available.

Link.

It is really depressing watching our economic system be destroyed like this. These people that are in power are basically handing our money, and our kids money, to a bunch of criminals that were running a legalized Ponzi scheme. The economic life of this country is being sucked right out of it by a bunch of gangsters.

All these firms that ran themselves into the ground should be allowed to fail. PERIOD. Use the money to pay back those that held FDIC accounts.

I do not recognize this country anymore. I am so over this country, this government, and the gangsters and morons in it.

Stock market fall down, go boom.

Someone emphasized the point yesterday that the money banks receive today can be lent once and only once. After making a loan, banks need to keep it on their balance sheets. Compare this to yesteryear’s originate and distribute securitization model and you’ll understand why asset prices are falling around the globe. The print and distribute machinery is broken.

FIRST!!!! (on this blog to get walking papers in 2009…..)

Signed,
(ex-) GSfixer

The bailout is working, says he:

Sure, you can question how the money was used — many of us have — but you can’t quarrel with the fact that a financial meltdown has been avoided as a direct result of the government’s extraordinary interventions …

… Who has benefited from all this? Every investor, every household and every business in the United States.

Rebuttals?

Anybody catch the PBS film “Ascent of Money” last night? It was awesome! Great survey of many of the issues discussed here: manias, credit bubbles, etc. Much discussion of recent events also. You can watch it online on pbs’s website under /wnet/ascentofmoney/

This doesn’t effect Alaska’s budget does it?…Hey, Ms. “Barracuda”… get those bully oil companies to re-negotiate those field lease’s, the lower 48 American brother/sister states (That can’t just see Russia …right over there…) is getting ripped off!

“The retail numbers were dismal,” said Jim Ritterbusch, president of Ritterbusch and Association. “They drove the stock market and then we got spanked again.”

Oil prices tumble with US inventories bulging:

http://finance.yahoo.com/news/Oil-prices-tumble-with-US-apf-14059874.html

The Greatest Depression is here.

“Our economic problems are due to loose monetary policy, central economic planning, and the parasitic expenses of government. Unless we assess these problems honestly, we unfortunately have a long way to go until, like the junkie, we hit rock bottom.”

Ron Paul

OK, this is priceless! Why? Because this house is in that Lennar Riverbend(over) development, where it used to be you couldn’t touch a place in there for under $250,000. Seriously. They planned on having million dollar homes along the river, pool and clubhouse, gated, etc. None of which has happened. Instead, you, too, can buy a home in a stucco gulag and live the good life, wondering when your place will be broken into or tagged by a gang. BOO-YAH!

Just for example, in 2000, I purchased a little 1970s concrete block shack on some land, not far from there for only slightly less than that. Sold it at the top of the bubble for about double. Awesome. (Palmster blows on nails, buffs them on chest, gazes modestly at fingertips with downcast eyes.)

http://tampa.craigslist.org/hil/reb/981017563.html

Thus far, Nasdaq and SPX are holding their 50 pct retraces. Dow looks shaky, however.

Posted earlier today, but not going through due to the link presumably. Posting again without the link:

Seattle area HBB/Seattle Bubble meet-up! Eli and I finally got it on the schedule. Come and join us in North Seattle (Wallingford) if you’re in the area and can make it!

DATE & TIME: Tuesday January 20th at 6:00 PM
PLACE: Kate’s Pub (Wallingford; located near I-5 and many bus routes)
RSVP: Optional; E-mail eli at-sign eligoldberg dot com and we’ll save you a spot.

Dutch bubble update:

I have been trying to rent a new home, but was not able to close the deal up to now. It’s a nice home in a good location but pretty small. I am offering the owner nearly 3% of the asking price (it is also for sale) for renting the place 1 year. Even his realtor thinks this is a fair offer considering the conditions, but he thinks he can get a better deal. W’ll see about that…

Next time I will start offering a yearly rent of 2-2.5% of the price That is still way over the rental prices in the government-controlled sector though. As you can see, something must be wrong with the Dutch market if yearly rent is in this range (used to be in the 10-12% range here, twenty years ago)

My vote for a 2009 theme song

http://www.youtube.com/watch?v=cA30Bh00_MA

SPX closed at 50 pct retrace level, 842.62. Amazing mumbo jumbo, no?

Radar Logic’s 1-day, 7-day and 28-day moving average prices per square foot all dropped below $200 for the first time at this (tail) end of the cycle as of 12-Nov-08:

Transaction Period End Date = 12-Nov-08

RPX.SD.1 RPX.SD.7 RPX.SD.28
$188.87 $193.01 $199.86

This is today’s data release, but it is reported with a 2-month lag, at least to non-paying customers like me. I expect it to keep dropping for the foreseeable future, as PPSF was in the low-$100K’s in early 2000, and even so, I know people who thought prices were overvalued at that time:

Trans Per End Date / RPX.SD.1 / RPX.SD.7 / RPX.SD.28
3-Jan-2000 $128.65 $130.14 $134.24

Sobering comments from a CEO who apparently lacks the motive to paint lipstick on the pig:

JPMorgan chief says 2009 will be bleak
By Francesco Guerrera in New York
Published: January 14 2009 18:48 | Last updated: January 14 2009 21:30

The US financial and economic crisis will worsen this year as hard-hit consumers default on credit cards and other loans, Jamie Dimon, chief executive of JPMorgan Chase, has predicted in an interview with the Financial Times.
…
EDITOR’S CHOICE
JPMorgan keen to exploit newfound edge - Jan-14

“The worst of the economic situation is not yet behind us. It looks as if it will continue to deteriorate for most of 2009,” said Mr Dimon. “In terms of our sector, we expect consumer loans and credit cards to continue to get worse.”
…
”When we look back at industry excesses in areas such as highly leveraged lending and securitisation, it is clear that some of these markets will never come back,” he said. “In the next few years, the industry will go back to basics: serving individual and corporate customers as best as we can.”

Will Apple take a bite out of markets tomorrow?

Jan. 14 (Bloomberg) — Apple Inc. Chief Executive Officer Steve Jobs, who said this month that he is being treated for a nutritional ailment, will take a medical leave of absence through the end of June. The shares fell 10 percent.

Chief Operating Officer Tim Cook will take over Apple’s day-to-day operations….

U.S. may extend more aid to Bank of America in a bid to help it digest Merrill Lynch.

WSJ

U.S. loses another bid to jail Madoff

“Ellis said Manhattan federal prosecutors failed to prove Madoff is a danger to the public or a flight risk. In the end, Ellis said Madoff could stay at home so long as the “portable” valuables at his Manhattan home are inventoried, and all outgoing mail is inspected.”

I’m really beginning to wonder what dirt Madoff has on the people allowing him to stay out of jail. Unbelievable.

And why is he allowed outgoing mail? The only humans he should have access to are his lawyer and a few prison guards.

More inflationary preasure?

“Gannett Co., Inc. said Wednesday that it would furlough most workers and executives for one week during the current quarter as the company grapples with a difficult economy and advertising climate.”

Jan. 14 (Bloomberg) — Motorola Inc., the second-biggest U.S. seller of mobile phones, is cutting 4,000 more jobs as the economic slump erodes consumer spending.

About three-fourths of the cuts will come from its mobile devices unit, Schaumburg, Illinois-based Motorola said today in a statement. The reduction follows 3,000 cuts disclosed in October as the declining phone business leached profitability.

Banker and mortgage broker arrested for forcing woman to preform oral sex in order to obtain a loan.

tampabay.com/news/business/banking/article967516.ece

HYDERABAD, India (Reuters) - India’s fraud-hit Satyam Computer Services Ltd (Bombay:SATY.BO - News) named two audit firms on Wednesday to restate its results after being caught in the country’s biggest corporate scandal, threatening its survival.

KPMG and Deloitte will restate results prepared by Satyam’s previous auditor, the Indian unit of PricewaterhouseCoopers (PWC), which said its opinions on the outsourcing firm’s financial statements may be unreliable, given the revelations of fraud announced by Satyam’s founder and chairman Ramalinga Raju….”

“…Satyam’s previous auditor, the Indian unit of PricewaterhouseCoopers (PWC), which said its opinions on the outsourcing firm’s financial statements may be unreliable…”

That is an understatement. “may be unreliable” All Indian companies audited by PWC are now unreliable. I wish I could laugh like faster, I’ll try - BWAPAHAHABWAP.

“…Despite strong evidence that capital flows and transactions by foreign buyers slowed significantly during 2008, offshore investors plan to boost investments by 73% over the next 12 months, according to the survey of the association’s 200 members, which hold a cumulative $1 trillion in real estate, more than 37% of it in the U.S. Foreign lenders, meanwhile, said they intend to step up financing of U.S. purchases by 58% this year, according to the survey….

Association members show “a growing confidence and interest” in U.S. real estate, said AFIRE Chief Executive Officer James Fetgatter, adding that their investment plans for the U.S. “resemble the flight to quality that is creating the demand for U.S. Treasuries.” The main question, of course, is whether buyers will get beyond kicking the tires and make a deal.

Overwhelmingly, AFIRE members pointed to the U.S. as the primary target for their real estate investment dollars — on average, 45% of their portfolio is invested in American property. In all, half of the top 10 global cities favored by foreign investors are in the U.S. this year. Other top cities include San Francisco, Los Angeles and Houston. Interestingly, half of the top 10 cities were in Asia last year — however, Tokyo and Shanghai ranked a distant fourth and fifth place in the most recent survey, garnering about half the votes of the top three….

# Respondents reported that finding attractive U.S. investment properties is becoming less difficult, with fewer than 20% describing it as “very difficult” — the lowest percentage holding that opinion in the last five years. In 2004, nearly 60% described it as very difficult.

# For the first time since 2002, when respondents said “finding attractive opportunities” was the greatest challenge to investing in the U.S., in 2008. Seven percent said attractive opportunities were very easy to find, with 18% describing it as “somewhat easy.”…
CoStar

Obama would spend bailout funds on housing crisis

By JIM KUHNHENN
Associated Press Writer

WASHINGTON (AP) — President-elect Barack Obama would spend the remaining $350 billion of a financial bailout fund on expanded lending and reduced foreclosures and would not use the money to help other industries, lawmakers said Wednesday after discussions with Obama emissaries.

There was 1 layoff announced in Wisconsin this week Wausau Paper will be closing down its Appleton Facility sometime this year moving to Brokaw, WI. Many states are reporting 1 0-5 mass actions.

Then there is California

Adobe Systems Inc. is laying off 75 employees at 601 Townsend St. in San Francisco on Feb. 3.
Advanced Medical Optics is laying off 61 employees at 510 Cottonwood Drive in Milpitas on Jan. 17.
Belkin International Inc. is laying off 84 employees at 501 West Walnut St. in Compton on Jan. 16.
Castaic Brick is laying off 77 employees at 32201 Castaic Brick in Castaic on Jan. 7.
Downey Ford is closing down and laying off 63 employees at 9500/9207 Lakewood Blvd. in Downey on Jan. 18.
Exelixis Inc. is laying off 76 employees at 249 East Grand Ave. in South San Francisco on Jan. 5.
Gregg Industries Inc. is laying off 81 employees at 10460 Hickson St. in El Monte on Feb. 11.
Health Research Association is laying off 79 employees at 1640 Marengo St., 7th Floor in Los Angeles on Jan. 30.
Irvine Regional Hospital and Medical Center is closing down and laying off 510 employees at 16200 Sand Canyon Ave. in Irvine on Jan. 15.
KLA-Tencor Corp. is laying off 153 employees at One Technology Drive in Milpitas and 81 employees at 160 Rio Robles in San Jose on Jan. 19.
Lam Research Corp. is laying off 149 employees at 4300-4650 Cushing Parkway in Fremont on Jan. 20.
Naked Juice Plant is closing down and laying off 52 employees at 533 West Foothills Blvd. in Glendora on Jan. 30.
National Semiconductor Corp. is laying off 151 employees at 2900 Semiconductor Drive in Santa Clara on Jan. 13.
Palm Inc. is laying off 107 employees at 950 W Maude Ave. in Sunnyvale on Jan. 19.
Pearson Ford is closing down and laying off 130 employees at 4300 El Cajon Blvd. in San Diego on Jan. 19.
Qualex Inc. is laying off 68 employees at 18250 Euclid St. in Fountain Valley on Jan. 16.
Riverside Cement Co. is laying off 84 employees at 19409 National Trail Hwy in Oro Grande on Jan. 30.
Seagate Technology LLC is closing down and laying off 43 employees at 155 & 195 S. Milpitas Blvd. & 311 Turquoise Drive in Milpitas on April 3.
Shutterfly Inc. is laying off 70 employees at 3157 Corporate Place in Hayward on Jan. 16.
Starwood Vacation Ownership Inc. is closing down and laying off 218 employees at 190 Carousel Mall in San Bernardino on Jan. 19.
Symantec is laying off 38 employees at 350 Ellis St. in Mountain View on Jan. 13.
Symantec is laying off 55 employees at 20330 Stevens Creek Blvd. in Cupertino on Jan. 19.
United Industries Corp. is closing down and laying off 50 employees at 4139 Bandini Road in Los Angeles on Jan. 15.
Vertis Communications is closing down and laying off 88 employees at 1345 Doolittle Drive in San Leandro on April 5.
Vishay Siliconix is laying off 97 employees at 2201 Laurelwood Road in Santa Clara on Feb. 6.

A few of these companies are in BK or undergoing reorganization and as a result these may not be true ‘out of work’ personnel. Some of these are verified with media reports.

Oh no, say it ain’t so, Joe!

Secret Agent Man star Patrick McGoohan dead at age 80.

(Maybe he couldn’t bear to live in a world without Ricardo Montalban, and his fine Corinthian leather,let alone no Chrysler Cordoba.)

McGoohan was the first made for TV James Bond type spy for the good guys . He was quite the ladies man with his 6′2″ good looks and British accent. He bore surprisingly little resemblence to his actor Dad, Mr. Magoo Han.

San Diego RE from the CME

MAY09 140.00A —- UNCH 140.00

NOV12 145.00A —- UNCH 145.00

Few reasons I can fathom to buy a house in San Diego for 3 years. I would be afraid to put a bid in, I might get hit.

Faster and option traders check out this options screen.

http://www.nse-india.com/marketinfo/fo/optionKeys.jsp?symbol=Nifty&instrument=-&date=-

What do you gentle folks think? less cluttered, more available info? Thoughts?

Options screen for the Indian Nifty delayed quotes.

Ecuador default prompts first sovereign credit swaps auction
By Laura Mandaro
Last update: 1:48 p.m. EST Jan. 14, 2009
SAN FRANCISCO (MarketWatch) — Holders of credit protection on Ecuador debt lined up to get payouts from the sellers of credit-default swaps Wednesday, in the first auction held for sovereign-debt default since administrators Creditex and Markit started holding these auctions in 2005. The auction followed Ecuador’s decision last month to stop payments on a second set of bonds. The initial results indicated the debt was worth about 32.4 cents on the dollar, meaning that sellers of protection would have to pay about 68 cents per dollar to holders of this protection, Markit said”

I am sure I hold some Ecuador sovereigns in a fund. lol

What would the payout be on US Treasury debt defaulting? (Ecuador was in a weird position and this was an unusual case, but aren’t they all unusual.)

From the Ethics exam finance

“(8) Imagine you are a Fund-of-Funds manager, and you have the good fortune to get in early on “great” manager who has demonstrated stable returns and who is so amicable and magnanimous that he doesn’t even charge management or performance fees despite his libor + 600 record. Even though you originally invested in good faith, you begin to suspect that all may not be as it seems. However, you get a 5% load on every new investment, and seemingly quite “real” management and performance fees of $182,000,000 PER YEAR. Yes, PER YEAR!!, for doing precious little. What is the best course of action for your suspicions?

(a) Never admit to suspecting anything. There is a statute of limitations and they won’t be able to take all of it from you.
(b) Act surprised. Make sure you’ve the BEST lawyer on retainer.
(c) Payout as much as possible to family and friends as payroll for work undertaken. It will be hard to get that back.
(d) Kill the Golden Goose, and insure, at least, you won’t go to the Big House.
(e) Seppuku with one of the samurai swords you’ve been collecting.”
Cassandra

The questions about how you treat your MIL’s investments is cruel - but true.

http://news.bbc.co.uk/2/hi/europe/7827708.stm

there ya go hoz, riots in Riga….. they do it a whole lot better than the Icelandic riots.