March 28, 2009

Bits Bucket For March 28, 2009

Please visit the HBB Forum. Post off-topic ideas, links and Craigslist finds here.




RSS feed | Trackback URI

194 Comments »

Comment by wmbz
2009-03-28 03:30:19

Subprime Swindlers Reconnect to Homeowners in Scams…

March 27 (Bloomberg) — In early 2008, Cheryl Ann Montero, a California mortgage broker, held a series of free seminars in the clubhouse of the Lone Tree Golf Course in Contra Costa County, a suburban area near San Francisco. The attendees, homeowners facing foreclosure, were desperate for a rescue from their woes. Using a PowerPoint presentation, Montero delivered one.

She said her firm, Freedom Financial Solutions, could pressure lenders to stop foreclosures by challenging the legality of loan agreements, according to court records. Her fee: $2,500 upfront and a $2,000 monthly payment to cover legal costs. Promoting her services on the Web site Craigslist, Montero, a blond-haired, blue-eyed woman who looked like a soccer mom, became known as a foreclosure escape artist.

“All the real estate agents knew about her classes,” says Kay Trail, a realtor in Antioch. “She was one shrewd sister.”

She was also ripping people off, says Ken McCormick, a prosecutor in the Contra Costa County District Attorney’s office. A player in a new confidence game exploiting soaring defaults, Montero didn’t have a team of attorneys to confront lenders. Instead, her firm took a small ownership stake in some of her clients’ houses and filed for bankruptcy, temporarily suspending foreclosure proceedings on those homes, according to an investigative report filed in court by prosecutors.

In the end, she didn’t deliver lower mortgages for the 10 homeowners who paid a total of $52,000 for her services, McCormick says. Montero did have mounting financial woes of her own: In September, she filed for personal bankruptcy, according to court records.

Bleed Their Victims

“She couldn’t make it in real estate anymore, so she just changed hats,” McCormick says. “But she was taking money and doing nothing.”

The prosecutor charged Montero with 36 counts of grand theft and related charges in December. She pleaded not guilty and is free on $100,000 bail. Her lawyer, Cameron Bowman of San Jose, didn’t return telephone calls for comment.

Comment by SanFranciscoBayAreaGal
2009-03-28 10:42:17

“All the real estate agents knew about her classes,” says Kay Trail, a realtor in Antioch. “She was one shrewd sister.”

Takes one to know one doesn’t it Kay.

Comment by cobaltblue
2009-03-28 16:52:06

Not to mention her sister Snayl, who’s always been hoplessly slow.

 
 
 
Comment by wmbz
2009-03-28 03:37:29

One scam after another as usual. Cap and trade will be popping up very soon count on that…

Markey Taps FERC Over CFTC as U.S. Carbon Market Fuels Turf War…

March 27 (Bloomberg) — U.S. Representative Edward Markey says his committee should be in charge. No, says fellow Democrat Collin Peterson, this one should fall under my panel.

Markey and Peterson are jockeying for control of the biggest regulatory plum to hit Washington in years: a proposed system for trading carbon-dioxide permits that would be one of the world’s largest derivatives markets.

Depending on which lawmaker prevails, the market would be monitored by the Federal Energy Regulatory Commission, which is overseen by a subcommittee headed by Markey, or the Commodity Futures Trading Commission under the supervision of the Peterson-led House Agriculture Committee.

The winning agency would set the rules for a market that could reach $1 trillion in trades annually by 2020, according to New Carbon Finance, a London research firm. The victor also would influence the operations of companies from American Electric Power Co., the biggest U.S. producer of electricity from coal, to Goldman Sachs Group Inc., which would compete with other banks to handle companies’ carbon portfolios.

“All the big financial firms would look to provide services to their clients to help them manage their risks in the carbon market,” said Tim Profeta, director of Duke University’s Nicholas Institute for Environmental Policy Solutions in Durham, North Carolina.

The maneuvering is under way even as President Barack Obama’s climate-change goals await congressional action. The proposal, part of his projected $3.6 trillion budget for 2010, would create a cap-and-trade program to limit greenhouse gas emissions. Polluters would buy and sell government-issued emissions permits on a market.

‘Real Opportunity’

“Some believe this will create the largest new derivatives market in the world,” Senator Debbie Stabenow, a Michigan Democrat, said at a hearing last month. “It’s a real opportunity to design a transparent, efficient carbon market.”

An indication of whether FERC or the CFTC has the upper hand could come as early as next week, when a trade group including American Electric Power, Goldman and trading firm Natsource LLC may issue its recommendation.

“Most of the financial players in the market probably have more experience dealing with the CFTC, while a lot of the energy companies have more experience with the FERC,” said Dirk Forrister, who heads a panel studying the issue for the group, the International Emissions Trading Association. He is also a managing director of Natsource, a New York fund manager and carbon-credit buyer.

Michael DuVally, a Goldman Sachs spokesman in New York, declined to say which agency his company will support.

“We haven’t taken any public position” on which agency should be the regulator, said Pat Hemlepp, a spokesman for Columbus, Ohio-based American Electric.

Comment by not a gator
2009-03-28 07:19:32

Why the panic? Aren’t they already doing this overseas? Is this a matter of scale?

I know this causes more unintended problems, but personally, I’m tired of seeing costs externalized. This provides a powerful new incentive for emissions reductions. IIRC, we spend more energy heating/cooling buildings than operating cars. And that’s just dumb.

(Yes, some “pay to pollute”, but that turns into a REAL cost on their income statement, instead of a cost they DUMP on the surrounding community. Also, some companies have been preparing for this for years–see, some who PLANNED stand to GAIN, just like housing bears vs brinksman-playing financials.)

Btw, powdered coal fired at high temp + biomass waste off farms = very k3wl energy source. They do it in Northern Europe as a combined energy/heat plant. They *could* do it in thickly settled parts of Canadia and Nueva Inglesia … not to mention upper midwest (actually, it would be PERFECT somewhere like Madison, which is freezing and surrounded by farms) and even PNW/BC?

Comment by in Colorado
2009-03-28 10:05:42

Nueva Inglesia

You mean Nueva Inglaterra (New England)?

Comment by not a gator
2009-03-28 16:24:43

Yup. I couldn’t remember the spanish. All I could call to mind was IGURISU, which, of course, is Japanese.

(Comments wont nest below this level)
Comment by We Rent!
2009-03-28 20:23:47

igirisu

 
 
 
Comment by tresho
2009-03-28 11:51:42

No matter what happens, we will all be paying much more for the energy consumed than we used to. Much more.

 
 
 
Comment by ET-Chicago
2009-03-28 04:52:46

The radio show This American Life has an episode this week called “Scenes From A Recession” (episode 377), which focuses on some FBs who own subpar condos in Chicago’s Roger’s Park neighborhood, and a story where they track FDIC employees as they take over an “unsuspecting” bank.

I didn’t hear much of the FDIC story (dinnertime), but the condo story is rife with the ominous signs we’ve come to know well — overdevelopment, marginal neighborhood, lack of oversight by the city, clueless buyers, shoddy construction of “luxury” condos, too many unsold units, too many bills. A veritable trainwreck!

If you want to get your schadenfreude on, it’s recommended.

Comment by edgewaterjohn
2009-03-28 06:46:49

Thanks for the tip off. Two former coworkers both condos in Rogers in 2006 and from their stories it’s getting worse and worse up there. Knowing what they paid to be where they are - I don’t know how they sleep at night.

I’m starting to think of bailing myself this summer, it just might be the last best chance for quite some time.

Comment by ET-Chicago
2009-03-28 08:32:11

Knowing what they paid to be where they are - I don’t know how they sleep at night.

I thank my lucky stars I don’t own a place in one of our more uncertain neighborhoods, Roger’s Park included.

Comment by Mot
2009-03-28 20:07:12

It’s like Uptown - it’s been an “up and coming neighborhood” since the 30s. ;-)

Those neighborhoods will revert to type - a good place to get a hooker, score some dope, or get robbed.

(Comments wont nest below this level)
 
 
 
Comment by Manny
2009-03-28 08:22:12

Buying a condo is a bad idea in general, bubble or no bubble, recession or no recession.

Comment by Natalie
2009-03-28 08:38:55

Condos can be decent if it is a highly densely area where there are no housing alternatives or you only live there part time so you dont have to keep the place up. A quality highrise in a nice walkable area of NYC, San Fran or your favorite vacation spot at a great price might be ok.

A surburban condo that looks like, or was, a standard apartment is throwing money down the drain. If owning was a better deal than renting, why would the developer be trying to sell it to you - because he wants to leave money on the table and thinks you are hot?

Comment by desertdweller
2009-03-28 15:10:34

because he wants to leave money on the table and thinks you are hot?

of course.

giggle.

(Comments wont nest below this level)
 
 
 
 
Comment by First
2009-03-28 05:33:43

First!

Comment by Faster Pussycat, Sell Sell
2009-03-28 06:41:15

FAIL!

 
Comment by ET-Chicago
2009-03-28 07:31:47

You gotta get up mighty early to beat WMBZ, dude.

 
Comment by Asparagus
2009-03-28 10:22:26

I know the feeling, the comment count is zero, you got up a little earlier than normal…

What you don’t know is that there is all sorts of back room jockeying going on behind the scenes. People are lobbying Ben all night to be the first post…

There’s all sorts of pay-offs and power-plays at work, the rest of us should just quietly buy homes and hope for the 3rd or 4th post.

[For the literals, the preceding is not true]

Comment by SanFranciscoBayAreaGal
2009-03-28 11:16:17

For those people who like to claim FIRST, Ben can also change the time stamp ;)

Comment by tresho
2009-03-28 11:49:44

Ben can also change the time stamp Doesn’t he auction off the daily first place post?

(Comments wont nest below this level)
 
 
 
 
Comment by edgewaterjohn
2009-03-28 05:44:28

Say, the T-Shirts look really good - destined to someday join the ranks of my faded and torn T-Shirt hall of fame. It arrived yesterday, thanks Ben!

 
Comment by Maria
2009-03-28 06:05:26

Has any one observed that lot of people are driving cars with broken body parts , bumpers , headlights, tail ligths and dents in the cars.?

People don’t have money to fix their cars.

Comment by edgewaterjohn
2009-03-28 06:54:13

Riding my bike gives me intimate knowledge of the condition of people’s cars - not only their appearance but their sounds and smells too.

Yeah, maintenance is being deferred. Burning oil, leaky exhaust, etc. seem more prevalent. The best indicator though, has to be driving habits. You can really tell which drivers have their next mortgage payment on their minds as they drive to work!

Comment by not a gator
2009-03-28 07:31:40

Huh. I nearly got run into a number of times driving the bus on Friday, but it seemed like it was always some idiot kid on their cell phone.

However, I DID notice that everyone who did something SUPER stupid/aggressive, was driving a brand new car… See, that’s how they totalled the last one.

In terms of dents rolling around, that’s nothing new here … so all I can say is, my anecdotal evidence doesn’t match your anecdotal evidence. Then again, maybe GNV is “different”.

Bike traffic IS way up over three years ago, when I started riding to work regularly.

UNIV announced only 120 layoffs. That seems wicked low. However, they are mostly reducing through attrition. Med school announced 8 layoffs, attrition of 26. Yes, really! It seems like the rats ARE fleeing the sinking ship after all. (UNIV denied denied denied to the press earlier this year that the “brain drain” was occuring.) Hell, considering what is happening to undergraduate education, not to mention faculty morale, I would be fleeing if I had a chance of getting a position elsewhere too. Heck, I might have left two years ago when Machen started his “machen-ations” to muscle out faculty self-rule and put his own goons in.

Comment by not a gator
2009-03-28 07:39:11

Sorry, by UNIV I mean University of Florida, aka UF, the Gators, etc, etc.

(Comments wont nest below this level)
 
Comment by DennisN
2009-03-28 12:06:03

However, I DID notice that everyone who did something SUPER stupid/aggressive, was driving a brand new car… See, that’s how they totalled the last one.

I remember when I was in Italy back in 1980. All I ever saw were new cars: I didn’t see any “old clunkers” in the US sense. I also noticed every driver appeared to have a death wish.

Later on I realized there was a connection between the two observations.

(Comments wont nest below this level)
Comment by dude
2009-03-28 12:36:24

The Europeans tend to regulate old cars off the road, as do the Californians.

 
Comment by SanFranciscoBayAreaGal
2009-03-28 13:04:40

Depends dude about California. You can drive old cars as long as the pass the CA emissions test.

 
Comment by dude
2009-03-28 14:48:12

True that, but you must admit that the whole system tends to force older cars into the junkpile. Drive through Idaho where there is no smog test and I think it will surprise you how old many of the cars are.

 
Comment by DennisN
2009-03-28 16:13:49

Times have changed even here in Idaho. In Ada county you have an annual smog test now, although for OBD-II cars it’s only a computer test via the OBD-II connector. Canyon county is up next and the rest of the state will surely come on line in the next 5 years.

California meant to get clunkers off the road, but by putting in a dollar-limit on fixing older cars you essentiall pass on them. IIRC the limit is $600 and that won’t pay for an engine rebuild, which is what most of the smokers really need.

 
Comment by dude
2009-03-28 18:31:18

It really give you pause, doesn’t it, when the state you moved to in order to regain some lost freedom starts to resemble the one you left?

There is a topic in here somewhere…

 
 
 
 
Comment by llking
2009-03-28 08:01:50

Yup. Got a friend who works in the auto body shop specializes in high end luxury cars. He said his business drops about 50%. Most prefer using the insurance money to pay bill instead of repair.

 
Comment by Asparagus
2009-03-28 10:32:28

On a different note, I miss the old boxy Volvos.

I saw one this morning and my heart sank. Please bring those beasts back. They were like tanks, with a lot of head room, that just hit their stride at 125k miles.

With the downturn, I hope manufacturers will focus more on creating cars that last and last and last, rather than new updated looks…

Comment by JimboAC
2009-03-28 11:08:41

The ex-wife has a white, ‘84 Volvo wagon that one or the other of my two younger boys tools around in when they’re home from school. Still has a “20 Years of Grateful Dead” sticker on it. Body’s shot, though; been dinged by the boys a dozen times. There’s alot of metal in front of the driver, and I sleep a little better when out on the town in it.

 
Comment by tresho
2009-03-28 11:48:27

hope manufacturers will focus more on creating cars that last and last and last I think that’s just what they’ve been doing for the last 20+ years, and look where that’s got them. Long-lasting vehicles don’t need replacing nearly as often.

Comment by GrizzlyBear
2009-03-28 13:03:05

I beg to differ. My truck is in the shop- yet again. Bought brand new in 2005 (a GMC), and “the last truck I would ever need to buy”, it now looks like it might need a new engine at less than 70k- this after servicing it religiously with fully synthetic oil. It’s already required a new front end at 40k (4wd), rear differential, it has transmission problems, and a laundry list of other issues. There’s a reason that CEO Waggoner apologized to all customers regarding the substandard quality of their products. I can honestly say that I was ripped off by GM. I’m considering forcing them to buy back my truck.

(Comments wont nest below this level)
Comment by DennisN
2009-03-28 16:17:28

That’s sad. My 2001 F-150 4.6l V8 has been a trooper. Two recalls to replace an EGR vacuum switch and the infamous cruise-control switch. Other than that just regular maintenance. So far 61K miles with nothing changed but fluids, filters, and tires. I did recently replace the door speakers since the sound quality sucked.

 
 
Comment by Houstonstan
2009-03-28 19:58:20

tresho : Exactly !! I’ve said same thing myself and my collegues. Make a product last longer without price premium and you kill your future market.

I worked in quality over the years but now specialized as a reliability engineer in a component supplier that amongst other industries, supplies to sub system automotive suppliers who then supply around the world to car manufacturers.

Maybe this is what Globalizations really is : the Lemming approach. Breed like uhm Lemmings and driven by biological urges, abolish all risk and foresight, and jump over that cliff and start swimming and Lemming population resets itself.

(Comments wont nest below this level)
 
 
Comment by dude
2009-03-28 12:38:26

“With the downturn, I hope manufacturers will focus more on creating cars that last and last and last, rather than new updated looks…”

Two words, designed obsolescence.

Comment by SanFranciscoBayAreaGal
2009-03-28 12:51:55

Yup. That’s the same for all manufactured goods. Designed to last at the most 5 years. Break down go out and buy new product. Consumer driven society on many levels.

(Comments wont nest below this level)
 
 
 
Comment by Manny
2009-03-28 11:13:54

Funny you mention that. I took one of my cars in for service yesterday. My mechanic works on on Saabs and BMWs. We chatted a while and he said business is down somewhat on the service side.

He also sells cars and on that side business is way up. Fewer people buying new BMWs, Saabs but buying used instead.

Overall, a wash for him.

 
Comment by jane
2009-03-28 12:07:19

Not necessarily so in every case. I’ll come right out and say it: I am a caffeine addict. Because I was nursing a cup while negotiating a DC parking garage built for Power Wheels, I scraped my front passenger side door full against a bollard.

I live in an apartment complex in a wealthy town which has quite a few illegal aliens with nothing good to do between midnight and 6 a.m.

An inexpensive car that looks like it has seen better days is really not as inviting a target as a Lexus. Or a Daimler.

I call it urban camouflage, and am proud to sport it.

For the same reason, I never, but ever wear anything that could remotely be considered a status symbol. A benefit of decades long involvement in Akita Rescue is that I am never without a nice big dogge or dogges when I am outdoors. (On this last bit - I actually derive incredible delight from walking, hiking and backpacking with whatever dogge/dogges I happen to have at the moment.)

My car has never been relieved of any of its accoutrements. The gang bangers cross the street or avert their eyes in blessed silence when I walk down the sidewalk with Munchkin. My .38 is my secondary line of defense. And I can wait and watch for the prices to come down on that 40 acres and a mule. Which still cost more than I want to pay, esp. for river frontage.

Modest looks do not always reflect modest means, therefore they can be used as camouflage.

Comment by dude
2009-03-28 12:40:15

+1 on the urban camo.

Comment by Temporal
2009-03-28 14:38:45

last post again got ate by the filter

I drive a vehicle with -actual- urban camo.

http://www.hillside-honda.com/images/products/honda/scooters/Ruckus.jpg

It’s my toy, but I end up riding it more then I drive my car….. It’s my “mad max apocolypse” escape vehicle! Always thought it was humorous that Honda would make an urban designed vehicle painted in urban camo. Needless to say I ride very defensively!

(Comments wont nest below this level)
 
 
Comment by SanFranciscoBayAreaGal
2009-03-28 12:50:08

Jane, I like your thinking.

Comment by wolfgirl
2009-03-28 13:04:07

Same here. Staying below the radar is good.

(Comments wont nest below this level)
 
 
Comment by GrizzlyBear
2009-03-28 13:08:05

Aww, Jane, bless ya. I’ve got my own big bear! Have been in the breed for more than 20 years, and I can’t imagine life without one by my side. I even showed this one in his early years and, boy, was that a comedy of errors on my part.

 
Comment by Bill in Los Angeles
2009-03-28 13:26:40

I’m one of the older ones at the office and drive a 6 year old Toyota economy car. Most of the employees have Infinitis, Lexuses, Audis, BMWs, Mercedes Benzes. Only one consultant is part of that lavish lifestyle. All of us other consultants are frugal.

We are not against having wealth. Nor are we against enjoying wealth. We just don’t like members of our group (consultants) giving anyone ammunition to say that we are overpaid. Some are paid well and some not. The consultant who flaunts his wealth is one of the least productive and wastes other people’s time bragging about his $ millions and houses.

In the larger realm, hiding your wealth is getting to be more and more important. The jackboot steps are getting louder.

 
Comment by Olympiagal
2009-03-28 13:48:12

Modest looks do not always reflect modest means, therefore they can be used as camouflage.

Yar, or maybe not to hide, but just because someone simply doesn’t care. I often go yard-saling with a lovely woman who happens to have a lot of money. Well, what? She knows she’s rich. And doesn’t feel the need to prove it.
She mostly drives an old Subaru when we go saling and we argue over who saw the rickety wooden chair first and therefore gets to pay the required 50 cents before bearing it off in triumph. Cat fight! :)

In fact, I was thinking of going saling today, but it’s rainy out and I thought I’d rather sit by the fire reading, and in a little while, drinking beer and eating cheese and bread.

Besides, I got plennnnnnnty of rickety wooden chairs by now. :)

Comment by Faster Pussycat, Sell Sell
2009-03-28 17:33:56

I know a few people that fit exactly this mould - they are quite clearly very rich but simply don’t care - meaning they are not ostentatious.

They have their passions and their wealth fuels those passions and that’s good enough for them.

(Comments wont nest below this level)
 
Comment by pismoclam
2009-03-28 19:00:32

Olympiagal, how is the fishing up your way this spring? I heard that the coho run up the Columbia is better than it has been for some time. Might spur the RE market in Vancouver, Wash and Ilwacco?

(Comments wont nest below this level)
Comment by GrizzlyBear
2009-03-28 19:16:43

Steelhead has been terrible in the Chehalis River Basin. They shut it down early, in fact. The run was unbelievably paltry. A real shame.

 
 
 
Comment by Temporal
2009-03-28 13:49:59

I own a vehicle with actual “urban camo”!

http://www.hillside-honda.com/images/products/honda/scooters/Ruckus.jpg

It’s a fun little toy (spur-of-the-moment purchase) that has served me well. Fun enough that I haven’t commuted to work in my car in over a year. Plus it’s a blast outside of town for lighter offroad trail-use. When I bought it people thought it was funny, when gas hit 4.00$ a gallon everyone thought I was a genious (100 MPG). Hell, work even pays me 600$/year to ride it (they consider it an alternative form of transport).

I do point out the irony of riding an already small practically invisible vehicle designed for city use, around the urban phoenix area, that Honda saw fit to paint in URBAN CAMO! I ride -very- defensively, needless to say.

It’s my Mad Max Apocolypse vehicle, I’m just waiting to wear a bunch of leather, call myself lord humongous, and run it on the rended fat of my enemies.

 
Comment by desertdweller
2009-03-28 15:18:14

Urban Camo..while living in nyc-2nd x,
drove/parked on street. ‘76 Rabbit,
sort of white, 1 brown door. Bungie corded
front hood. nothing on the inside but strewn cords
from where a radio once was.
No one at all bothered my auto. Urban Camo.
Never locked it either. Why? hehe Great car.

 
Comment by not a gator
2009-03-28 16:35:11

I hear you on those garages! My first office job I borrowed the office Crappy Chrysler (later model than a K car, no brakes) to some meeting (probably GSA, yawn) in Arlington and put a nice dent down the side trying to back it out of the space I’d somehow shoehorned it into. While definitely not letting me live it down, everyone assured me that it wasn’t that big of a deal since their prior intern had TOTALLED one of those cars on I-95 and was now their director of grants.

I am a parking/unparking wizard now, of course. It’s amazing how good you get at parallel parking (and other maneuvering) when you have to pass a DOT skills test in a 35 footer. Or when you have to squeeze your bus out of an overcrowded lot on a daily basis… those were the days. 8^D

 
Comment by Manny
2009-03-28 18:01:38

may I ask why you don’t move?

Comment by jane
2009-03-29 07:37:05

Manny - I don’t get your question. Move where? Illegal aliens are drawn to wealthy areas much in the same way as flies to honey. You don’t think Jose himself actually signs the lease, do you? And Jose’s agent is not going to disclose that he is the tip of the spear for his twenty relatives and co-workers who will ultimately crash the place at $400/month/head. As long as they have more than they have where they come from - a certainty, given our willingness to employ them off the books and provide them with flotsam to fence - they will proliferate like maggots.

Move to another area or town? To a single family house with an open perimeter with nobody home on a predictable schedule? I have a reasonable job that doesn’t kill me. I live four miles from my ops base. For the next several years, apartment living is a super solution - low nut, no maintenance, limited access while I’m away. Plus, I guard my discretionary time. Until I get more of it, I have no taste for yard work.

(Comments wont nest below this level)
 
 
 
 
Comment by WAman
2009-03-28 06:09:37

We are supposed to close on Wednesday (April 1). Yesterday my realtor said that the underwriter needed a condition met by the lender. She said that this has nothing to do with the buyers and all is well.

Does this sound right? Will I be an April fool if I move out of my house on Monday?

Comment by Blano
2009-03-28 07:09:59

If you move out, you better have a Plan B in case you don’t close. Did your realtor say what the condition was?? If not, take that as a red flag. NEVER assume it’s a done deal.

Comment by WAman
2009-03-28 07:18:07

She said that the condition was confidential information and she did not know. Also the buyers are using a VA loan.

Comment by Blano
2009-03-28 08:06:03

You have one party to a real estate transaction saying to another it’s “confidential.” I don’t take that as something good. If it’s something that can affect closing, definitely not good. IMHO your realtor should be doing whatever she has to to find out if it affects closing.

Either way, NEVER assume a closing will happen.

(Comments wont nest below this level)
Comment by ET-Chicago
2009-03-28 09:54:42

I think Blano is spot-on all-around.

Last minute double-secret crap doesn’t smell good to me. Do you have a real estate attorney? If so, you should ask them to look into it ASAP.

 
 
 
Comment by Bill in Carolina
2009-03-28 07:18:24

Contact a real estate attorney first thing Monday morning. Since you’re asking that question here, I presume you don’t already have one.

Comment by SanFranciscoBayAreaGal
2009-03-28 10:53:41

Most importantly tell you real estate agent YOU ARE CONTACTING YOUR REAL ESTATE LAWYER ON MONDAY. See what happens or see if your real estate agent will be more open to sharing or finding out what is SO CALLED confidential information.

I agree with the Blano and ET-Chicago, it’s not passing the smell test, and the red flag is up. Have a plan B.

This is my paranoia; I’m hearing the robot yelling WARNING WAMAN WARNING.

(Comments wont nest below this level)
 
 
 
Comment by REhobbyist
2009-03-28 08:52:29

If the closing date has changed, I would change my moving date, too. Weird things are happening nowadays. When I bought a foreclosure house last month owned by Citi, Citi suspended its foreclosure division for a month, two days before we were supposed to close. Our choice was to speed up the closing by two days or wait an extra month or more. Since we had the money we were able to close early. Also, underwriters are dragging their feet on loans like your buyer’s. I would ask for details.

 
 
Comment by Maria
2009-03-28 06:12:00

I was watching a reality show called Operation Repo on the TruTv. I normally do not watch reality shows but this one is interesting.

Once Lawyer had Mercedes Benz that got repossessed , it was worth more than $100,000 a lawyer was the owner of that car, helicopter, cars and others luxury cars being repossessed.

Comment by combotechie
2009-03-28 07:04:33

From what little I have seen of this show, much of it is staged.

 
Comment by rms
2009-03-28 07:25:28

Years ago, I repo’d a really nice Mercedes Benz coupe from a woman lawyer, and the thing that amazed me were the arranged dolls inside. I mean, here’s a sophisticated woman in a professional career role, but she still clung to her dolls. No, there was not a car seat or any other thing to suggest a child rode in there — they were hers!

Comment by wolfgirl
2009-03-28 09:47:32

As a member of the Boomer generation and an old hippie, I think that very few people want to grow up anymore.

Comment by Muir
2009-03-28 16:12:49

congrats!!

(Comments wont nest below this level)
 
 
Comment by Olympiagal
2009-03-28 09:55:57

Whadjoo do with the dolls, rms? Did you play with them, make one of them be ‘Mrs. Nesbitt’ and have a tea party?
:)

Comment by wolfgirl
2009-03-28 10:29:42

Got to have cookies to go with the tea.

(Comments wont nest below this level)
 
 
Comment by skroodle
2009-03-28 10:03:42

I have a friend that worked as a skip tracer to find the guy that played the dad on Fresh Prince to repo his Mercedes.

Comment by Manny
2009-03-28 11:26:55

NOT UNCLE PHIL!! Say it ain’t so.

(Comments wont nest below this level)
 
 
 
Comment by not a gator
2009-03-28 07:34:10

Worth more than $100k or sells new for more than $100k? Unless it is a money pit antique/rare project car, I’m having a hard time believing a used Mercedes is worth quite that much. Especially the 1997-2007 (problem prone) vintages. (However, some of those classic Benzes from the 1960’s probably are, I would hazard to guess.)

Comment by Pinch-a-penny
2009-03-28 07:59:58

There are some of the late 60’s, early 70’s convertibles (200 series) that are selling for more thatn 135K. Some of the earlier 300 (The small gullwing), and 600 (Limo) series can sell for more than 500K if they are nice enough.
Now, are they worth it? that is an altogether question. As far as the reliability from 1997 to 2007, I agree wholeheartedly. You are in essence buying a way overpriced Chrysler.

Comment by not a gator
2009-03-28 10:43:50

I’ve seen pictures, those convertibles look a beaut, and the diesel engines were real beauts too. I do so love something built well.

(Comments wont nest below this level)
Comment by CrackerJim
2009-03-28 12:43:42

“…the diesel engines were real beauts too.”

You mean those 60s - 70s Mercedes diesels that you always see coming a mile away because of the black cloud coming from the exhaust?

 
Comment by not a gator
2009-03-28 16:36:56

Okay, fair is fair, but you could say the same of the old diesel dump trucks and old diesel buses.

Heck, when I got into this business we had a fleet of 20 year old coach buses from Canada that smoked like a freight train … and those were the good ones … the bad ones had blue or white smoke pouring out.

 
 
 
 
Comment by Manny
2009-03-28 11:25:45

Median income of lawyers is about $100K. Which means most lawyers have no business owning a $100K car, ever.

I’m sure a show like that likes to highlight lawyers since people think all lawyers are “rich” and it’s always fun to watch rich guys get screwed. Reality is lawyers are by and large middle class professionals.

Comment by not a gator
2009-03-28 16:45:17

Which is 2.5 median income in US as a whole, your point? Clearly there are many lawyers grossing quite a bit more than $100k.

It’s true, wealth studies have shown that lawyers rarely finish rich (net worth) because (like traders) their profession has a culture of judging each other by their spending, clothes, shoes. OJ trial assistant prosecutor once quipped that lawyers and rappers were two categories of black men where the straight guys knew more about clothing (& exactly how much it retailed for) than is typically imputed to gays. Also, lawyers have to “look good” for clients (so do accountants), which causes more spending. Finally, lawyers have horrible student loan bills (like doctors) which eat up their wages for many years.

Overall, lots of ways to go broke being a lawyer. Perhaps this is why so many go into ambulance chasing. After all, if you got your JD in a misguided bit to “get rich”, forget ethics, just go where the money is.

Anyway, all TV shows “aspiration” and overspending–even Simpsons and Roseanne Barr show portrayed more house/comfort than their income would have provided… actually, both shows were bucking the trend a bit by showing more POVERTY than was typical on tv, but they still pulled their punches. People want to see their dreams, but then build up an unrealistic expectation of affordability (Will & Grace–their apt/living situation is an oft-cited example … it’s too big/nice).

Comment by Manny
2009-03-28 18:13:32

“Which is 2.5 median income in US as a whole, your point? Clearly there are many lawyers grossing quite a bit more than $100k.”

It’s actually more like 1.75 times median. And it’s still not a lot of money. Especially in LA where that show takes place.

“Anyway, all TV shows “aspiration” and overspending–even Simpsons and Roseanne Barr show portrayed more house/comfort than their income would have provided”

That is one of the jokes of The Simpsons…that Homer is a complete doofus yet they manage to live a nice middle class life. There was even an episode where that engineer (cant remember the name) said to Homer that in any other country he would be dead. You have to lighten up a little.

(Comments wont nest below this level)
Comment by NewJerseyGuy
2009-03-29 15:34:21

That engineer was “Fred Grimes” or as Homer would say “Grimey.”

Great episode of the Simpsons

 
 
 
 
 
Comment by AZGolfer
2009-03-28 06:21:12

Good Morning All

I am up early to go play golf. Front page of the Arizona Republic - Peoria section. “Analyst: Housing market near bottom” RL Brown apparently gave a speech at Trillogy at Vistancia. He says forclosures are taking their toll. REALLY - WOW! What a joke that guy is! I can’t belive that he is considered an “expert” on housing. He has been consistantly wrong for like four or five YEARS. Prices have come down a consideral amount but - we are not done yet.

 
Comment by measton
2009-03-28 06:28:17

What’s wrong with this story titled

Obama order worries free speech groups

Free speech advocates from across the political spectrum are accusing President BarackObama of impinging on First Amendment rights and are gearing up to take their case public.

At issue is an unprecedented directive that Obama— who has long railed against lobbyists as the personification of a corrupt Washington culture — issued last week barring officials charged with doling out stimulus funds from talking to registered lobbyists about specific projects or applicants for stimulus cash.

Under the directive, which began going into effect this week, agency officials are required to begin meetings about stimulus funding for projects by asking whether any party to the conversation is a lobbyist.

“If so, the lobbyist may not attend or participate in the telephonic or in-person contact, but may submit a communication in writing,” reads Obama’s memo, which requires the agencies to post lobbyists’ written communications online.

Oh it turns out it’s the lobbyists that are up in arms over this policy.

I’m all for it.

Comment by Blano
2009-03-28 07:13:26

That doesn’t seem so bad. And it’s nothing compared to the blatant 1st amendment violation that is McCain-Feingold.

 
Comment by Bill in Carolina
2009-03-28 07:23:50

Yep, screw the unions, the ACLU, the AARP, the greens, the consumer advocate groups, and all those other stinkin’ lobbyists.

Comment by measton
2009-03-28 08:26:52

Yep, screw the unions, the ACLU, the AARP, the greens, the consumer advocate groups, and all those other stinkin’ lobbyists.

How is anyone screwed? They can still lobby for policy changes in person, they just can be present for meetings about stimulus funding of specific projects. During the last administration we had lobbiests actually writing spending bills. If lobbiests want to have some input into how the money is spent then they can submit their thoughts in writing and this will be posted on a public web site for everyone to see.

Sounds to me like good policy.

Comment by dude
2009-03-28 12:47:50

If you don’t think the lobbies are writing today’s spending bills as well, you may be a bit naive.

(Comments wont nest below this level)
Comment by measton
2009-03-28 13:06:25

Sure they can give their plan to a congressman but I suspect they have less influence if they are not in the room during the final deal making. Their puppet is on it’s own.

 
Comment by measton
2009-03-28 13:08:10

change that from congressman to official

 
 
Comment by pismoclam
2009-03-28 19:04:41

The SEIU terrorists gave $31 million to Obama for the last election. Now they want CARD CHECK!!! No sh-t GI.

(Comments wont nest below this level)
 
 
 
Comment by not a gator
2009-03-28 07:37:44

I wonder how enforceable this is. Given they don’t even enforce simple House/Senate ethics rules. E.g. (example eGregious), Chris Dodd and his sweetheart deal with the Tan Man. Hello, influence peddling, anyone? Why hasn’t he been booted out yet?

So when an African-American Demo from a dirt-poor state takes cash bribes the FBI is all over it, but when a white Demo from a rich state freely admits he took a bribe (special, BMR mortgage), he’s apparently covered in Teflon? He and Tanzillo should be sharing a cell by now!

Comment by polly
2009-03-28 11:13:02

Who is this “they” you are talking about? The House and Senate have their own rules. The executive branch has other rules - much, much stricter rules and lots of people to implement and enforce them. I have to do an ethics briefing about not taking anything of value from people (other than friends and family) every year including all sorts of threats about the dire results for even minor violations.

The executive branch people don’t enforce any rules on members of or employees of Congress. You are comparing apples and cement mixers.

Comment by not a gator
2009-03-28 16:47:59

they = themselves

I mean, where’s the outrage? Of course, party in power doesn’t police itself unless it has to do with gay sex, apparently.

not sure why the sweetheart deal wasn’t an actual bribe which would be illegal with capital I, not just fancy pantsy House/Senate rulesbreaking which goes on and on with nary a slap on the wrist … ?

(Comments wont nest below this level)
 
 
 
Comment by measton
2009-03-28 08:33:34

There is no 1st amendment issue at all here.

Lobbyists can still lobby face to face on policy. When it comes to specific projects however they can’t be present. Over the last 8 years we had lobbyist drafting legislation and spending on projects. They can still give their 2 cents on specific projects they just have to do it in writing and everything they write ends up on a web site for all to see.

Again this is good policy.

Comment by measton
2009-03-28 08:39:34

PS money does not = free speech

I’m all for limiting the flow of money from corporate America to our politicians. Individual donations that are mailed individually, ie no bundlers who then use piles of donations to curry favors.

 
 
Comment by Manny
2009-03-28 11:30:11

Lobbyist: out

Corporate Negotiating Consultant: in

See how easy that was? Obama kept his promise. No more lobbyists. Yeay!!

 
Comment by Big V
2009-03-28 12:00:09

Reminds of the Man-Boy Love Association. Their thing is that little boys should have the right to have sex with grown men if they want to.

Comment by SanFranciscoBayAreaGal
2009-03-28 12:47:03

Now that is one group I would like see exterminated.

Comment by SanFranciscoBayAreaGal
2009-03-28 12:53:41

Let me do this again:

Now this is one group I would like to see exterminated

(Comments wont nest below this level)
Comment by Olympiagal
2009-03-28 15:48:04

Go ahead and say it again, SanFranGal. Heck, say it 20 times, even.
Some people should not be allowed to live, that’s all. That’s it. Should just be flicked right off the skin of the world.

 
 
 
 
Comment by ecofeco
2009-03-28 12:22:05

Lobbyists hate it?

EXCELLENT!! Scr3w them!

 
Comment by desertdweller
2009-03-28 15:23:14

If it messes with lobbyists.. yep!

 
 
Comment by not a gator
2009-03-28 07:11:59

Thanks to those who posted the Frontline Jefferson-Hemings link. I recall the controversy at the time (DNA proves nothing! Segregation forever!) but I had no idea that it was a relationship that went on for 38 years (and carefully documented in a sense by Jefferson’s own farm books). I also never knew that most of his Black children went on to pass for white … makes me wonder if the descendants of Harriet Hemings will ever discover the truth (maybe if they run for high public office, eh?).

Anyway, I have a new academic crush! Annette Gordon-Reed! Whoo! And she’s cute, too. I’m glad there are still some smart Americans in academe… I swear I had nearly given up. (Of course, that was because I was reading two or three books simultaneously by eCONomists–as an academic field of study, it’s become a JOKE. And Roubini wasn’t born here, ‘kay?)

http://www.nyls.edu/faculty/faculty_profiles/annette_gordon_reed/

Keep being brilliant! I’m tired of my country being the joke of the Western World.

PS: seems like historians are as incompetant as eCONomists, because it took a law professor to sift through their idiocy and set them straight … oh yeah, and she published BEFORE the famous DNA testing … which was initiated by an MD, not the historians. Glad I passed up study in that field (I was interested). You should see the Frontline clips when they interviewed her, because she stands out like a halogen lamp among the dying fluorescent tubes.

Comment by ecofeco
2009-03-28 12:26:45

Impressive.

 
 
Comment by not a gator
2009-03-28 07:54:11

Been reading some more econ books. Heavily into ideology (I am reading both/multiple sides), not so big on actual numbers, but of course when they do use them they’re often GIGO.

Anyway, looking at the whole 20th century, looks like “greatest generation” pulled one of the greatest young vs. old flim-flams of all time.

They pay little into soc. sec., though a lot (relatively) in taxes (taxes were very progressive), fueling R&D & innovation on unprecedented scale, huge productivity gains, and thus prosperity for themselves.

Then, facing retirement & fixed incomes, they lobby for enormous SSI increases, while fed funds is run up to an insane rate to stop inflation (& give them a juicy deal on bonds) AND taxes are cut AND the gov’t goes into deficit spending (more bonds for sale–and the cost of all these goodies will fall on the young).

Naturally, SS tax ramps up, future gens will pay more and more, get less and less out. Rising debt service costs paralyse gov’t, less and less investment more consumption, no advances or productivity gains in future, workers see lower real wages. But top dogs are making out like bandits before they retire. Govt pushes social aid onto states, who start a race to the bottom.

Oldsters move to “low tax” states, live the good life (until they get too sick, then they remove to high tax state to get state aid goodies). Younger workers see pay cutbacks, layoffs, higher and higher taxes for less and less return, though top of income pile pays less … aspirational tax cutting.

Entire manufacturing base is hollowed out, US is a creditor nation, other countries which invested in research are kicking our ass, remaining factories hopelessly out of date, local taxes are outrageous, feds ruined by needless wars (but crazy paranoid oldsters, now in their 80’s, 90’s, were leading the charge), absolutely decayed infrastructure, rising poverty, possibly social turmoil to come?

Older boomers ruined by housing bubble, wonder why their parents never had these problems…

Florida epitome of the moral rot. Tax on intangible assets (investments, non RE) is rescinded, but now sales tax will rise … eat the poor. (I like flat tax idea, but only a national implementation makes sense, otherwise too many hideyholes for big purchases … btw, if you see a ME plate in MA, that’s a tax cheat ^_~.)

Comment by Diggs
2009-03-28 08:14:09

We have a different name for those with MA plates up here in ME :)

Comment by not a gator
2009-03-28 11:10:38

Hey, be nice. You know most of the M*******s moved to Manchester, NH for the bigger lot, lower taxes. 8-D

I have a Mass acquaintance, lived/worked in NH and AZ before eventually returning. Had lots of horror stories from working in NH (including “wanking man” who invaded company elevator & had to be hauled away). One fave is when a coworker told him, “You know what’s wrong with you, Dave? You’re not enough of an ***hole.”

 
 
Comment by Pinch-a-penny
2009-03-28 08:27:26

I think that you have valid points, but one of the reasons that the US had such a boom in the ’50s and 60’s was that there was no other country in the world that had an intact industrial base.
This allowed us to have a massive positive account balance, that allowed us to build up the infrastructure ( Eisenhowers Highway system was always meant to move troops in time of war), and dump a LOT of money into R&D. The Space program also helped in the ’60s with massive spending in R&D. Some of those defense projects in the 60’s led to things like the Internet, computers, and other interesting products like Velcro.
Now, in the ’70s other countries’ industrial base was getting back on line, and a large reduction in the trade balance ensued, and has not stopped. the trade deficit has just gotten larger. SS and all of the other things are possible only if we are making enough money to pay for it.
I would fathom that the greatest gen by now is dying off, and the older boomers are not going to be too impacted. It is the younger boomers, Gen X and Y that will have to pick up the pieces, and rebuild. Debt is NOT wealth, and War is NOT peace no matter what Winston would like you to believe.

Comment by not a gator
2009-03-28 11:03:37

You just made my point in terms of R&D. Cold war caused basic science research funding to appear–it’s been cut ever since. The rest of the West & Japan was busy rebuilding its infrastructure which meant their employment situation was similar (Germany even brought in “guest workers”).

US had best R&D science in the world, partially due to generous funding, partially by “borrowing” entire academic depts from Germany. Sure you had Nazis into gov’t, but also Jews that fled who went into universities. Germany had been preeminent, they were destroyed. They have funded heavily (Max Planck Institut) and now surpass us, arguably, also other countries very much in the game now. And while we still hang on, we destroy our system every day. India, Germany, Scandinavia looking to make a mockery of us.

Feared during Cold War that USSR was ahead… this was not true … even with their Hungarian mathematicians. :D

And new infrastructure enhanced productivity… RRs may have been run into the ground in that era, but trucking took over on gov’t-built roads. Lots of building in that era–schools, hospitals, research buildings, plants, factories, refineries. (60’s also built recreational infrastructure–NPS “lodges”, scenic highways, bridges, Tomorrowland–just fabulous, nothing like that has been built here since. stock mkt might have been churning but we were never wealthier.)

It’s sort of missing the point about the US industrial situation. Yes, we didn’t have to spend resources REbuilding, but we were building… that meant we had most modern plants (GM, for example, ramped up production big time). Our problem now is that we haven’t replaced any of this stuff since 1950’s (and yes, some was older) while other countries replaced in 1980’s and 1990’s, so they can kill us on input costs (labor is only part of the puzzle!) AND quality (ditto).

GM vs. Japan … part of MS’s success was a corporate culture that said “we’re behind, we have to catch up”. Japan saw themselves this way vis a vis US; came up with creative ways to be flexible, keep costs down, improve quality. (see Toyota’s manufacturing techniques, very clever) GM was all “we’re #1″ and saw no reason to change what they were doing. Layers of bureaucrats protected top management from even seeing any proposal that was risk-taking. They no-change-ed themselves into oblivion.

Older boomers took a huge hit to balance sheet–look for info on report that renters are now richer than homeowners. It broke down early and late boomers, I think. Older boomers are richer than younger boomers, but the older boomers still got whacked by the housing bust.

Debt and war … The 1970’s were a story of a currency debased … why? To pay for multiple wars plus “war on poverty”. Johnson tried some tricks, probably why he’s considered worst president by those who lived through him, Nixon apparently went even worse, pushing EZ money to get himself reelected, meanwhile situation was worsening… went off gold standard, inflation got messy. Look, I’m no expert, but having read some history, it’s almost like a natural law of countries, big wars result in currency debasement or heavy taxation, or both. WWII was paid off with taxes, Viet Nam, currency debasement.

As FPSS says, you can only go off the gold standard once. Reagan tried something dumb and gov’t debt went skyward… it was all downhill from there (except Clinton admin, at least to some players, of course it was going to come out of SSI, but fair’s fair; despite that, Bush II quickly erased ALL Clinton-era gains)

 
 
Comment by skroodle
2009-03-28 10:07:02

I’m not too sure that there are going to be a lot of “low” tax states in a few more years.

Comment by not a gator
2009-03-28 11:06:18

Oh, I’m sure Miss. Alab. Dakotas will stay in the lowtax game. “Let them eat cornstarch.”

In rural N Cent Fl, destitute country dwellers give their hungry children corn starch to quiet the hunger pains.

Yes You Can be fat and malnourished.

Comment by Olympiagal
2009-03-28 14:02:20

Have you ever read anything by Harry Crews, not-a-gator? Southern writer. Great stuff.
Your words brought to mind: ‘Searching for the Wrong Eyed Jesus’.

My favorite book by him is ‘A Feast of Snakes’.

(Comments wont nest below this level)
Comment by not a gator
2009-03-28 17:14:31

Definitely a name to remember! I’ll have to see what the library has in stock. Looks like he was in and out of GNV so they ought to have the full collection.

 
 
 
 
Comment by Blue Skye
2009-03-28 13:13:00

“Been reading …books. … looks like “greatest generation” pulled one of the greatest young vs. old flim-flams of all time.”

Human nature is interesting. Once we have someone to blame, it is no longer necessary to discover cause, and no longer necessary to effect change in one’s self. Unhealthy groupthink is a theme of history. I guess it is why we are so easily governed.

By the way, there are lots of those folks from the 1920s still around. The country they trusted has bilked them out of their fixed incomes by inflating the currency, so that they could relive the depression during the boom. The bust has just got to be making them cry elephant tears.

Comment by not a gator
2009-03-28 17:21:11

My relatives from the 20’s had more money than they knew what to do with (literally) during the Bush admin, so too bad so sad if they are cutting back now (though frankly, I have not heard any whining through the grapevine).

The only one who didn’t died a few years back, and his sis said he was ruined twice–first by a stockbroker, then by a wife. And he still had thousands in fin. assets/cash when he died (a lot of which went to assisted care facility for his last months) plus a pimped out Expedition or something (even though he had advanced eye problems and could see about 6 ft max) and a paid for house.

The others all died a LONG time ago, cancers and so on.

 
Comment by not a gator
2009-03-28 17:32:03

I gotta say, in my family–and YMMV–both sides (oh, AND my wife’s family), the “greatest generation” is wealthy, “lost generation” has muddled through, and the boomers are broke. Some returned to hippie lifestyle, some working their little tails off with giant looming liabilities, some have just barely gotten righted now that the kids are grown … their balance sheets are enough to make you weep.

I do have an uncle who is older Gen X. He seems okay, BUT he moved way out into the countryside to get cheaper land and he married quite late. His older brother, late boomer, who bummed around for years following a guru and also started a late family is probably on the financial edge, from what I can tell. Another “baby bust” (what they called Gen X before Gen X) relative is making oodles of money (geriatric/sports medicine) but seems to have spending habits that must surely have outstripped even his earning capacity… actually, I hope he and his wife are underwater, because they are both annoying as h***. They pulled some dodgy stuff to keep their taxes down, without consulting my mother, who as joint owner on some farms was dragged into said scheme without her consent. Sweet.

 
 
 
Comment by Kim
2009-03-28 08:35:17

I got an email from Realtytrac. It seems you can pay by the day now, instead of a monthly subscription. Its about $5 for 24-hours of access.

Another sign that foreclosures are easy to find everywhere these days: no need to pay $30 a month hunting them down.

Comment by exeter
2009-03-28 10:19:45

I got the same email. I detect this downdraft picking up in a big way right now. I hear NO denial…. silence from former yappers. I’m also seeing nicer stuff coming on line at substantially lower prices. In no way am I suggesting they’re realistic prices but the link to peak prices has been severed, regardless of attempts to control the collapse by the PTB.

Comment by dude
2009-03-28 12:58:39

I’m seeing the same effect out here, there are some nice places at reasonable prices, many REO; and they just sit, and sit, and sit…

If I was paying rent I might be tempted to buy one!

Comment by exeter
2009-03-28 13:35:02

I actually have an eye on something that just came up but I’m not sure I really want to return to VT for a host of reasons. Namely, no work but the weather is friggin’ miserable 8 months out of the year. The place would have got at least 200k at the peak and its listed at $110k. If I could get it under 60k I would strike. I’ll just monitor for now. If it sits until fall and nothing else piques my interest, I’ll go torture a realturd with a 40% offer.

I mentioned below about 0% financing for excellent credit risks. My speculative side tells me its a distinct possibility. I don’t need to be financed but if I can use someone elses money for nothing in this deflationary environment, I will do so in a nano-second.

(Comments wont nest below this level)
Comment by dude
2009-03-28 14:53:42

It will be a great day though when the fiscally prudent in society will be able to comfortably plunk down some cash for a place they call idyllic, even if they only plan to use it on the occasional weekend and during summer months.

If it comes around mine will be in the Snake river valley.

 
Comment by Silverback1011
2009-03-28 16:05:37

It will be a great day though when the fiscally prudent in society will be able to comfortably plunk down some cash for a place they call idyllic, even if they only plan to use it on the occasional weekend and during summer months.

So true, Dude, so true. Talk about (sub)urban camo. I wear the same (clean) outfits to work week after week, bring my lunch every day, and blah, blah, blah, live a pretty frugal life, etc. My aging but dependable Mazda Protege just turned over 94,000. A lady who sits down the row from me, whose husband works at an auto factory on the assembly line got not one, not two, but three new cars last month !!! One leased, two purchased. One for each of them, and one for their college-going kid. Wow !! She told me that ” there are a lot of good deals out there right now ! ” I told her that I am trying to kill my car, and that there should be another 40,000 miles left in it at least, and that I didn’t want any car payments right now. In fact, I told her that we are trying to eliminate any and all uncessary debt right now. She gave me the “weird eye” and walked away. Sigh.

 
Comment by Faster Pussycat, Sell Sell
2009-03-28 16:42:56

We are like lepers in this debt-diseased society.

I try not to associate with people like you mentioned. They just kinda irritate me, and anybody who’s seen me here knows my sharp tongue which can get ride quite rough over these people’s egos. ;-)

 
Comment by not a gator
2009-03-28 17:24:42

I just can’t do the acid tongue thing and then keep a straight face afterwards, I guess.

I told a coworker who was lusting over a new F-150 (he’s a bus driver, has no need for a truck bed, hauling, any of it) “Isn’t it nice not having to pay payments.”

“Yeah, but…”

Can’t stand people who b*tch and moan about their payment and their stupid old car, then as soon as they pay it off they load themselves up with more debt. I guess they must loooove working because they’re going to be doing a lot of it!

 
Comment by dude
2009-03-28 18:27:25

“there should be another 40,000 miles left in it at least”

FWIW, my rule of thumb have always been that a car is only a worthwhile purchase if one can estimate the initial cost as $.010/mile assuming 200K miles with adequate maintenance and repair.

In these deflationary times I’m hunting for a great car for $0.075/mile. Not easy, but I can feel it coming my way.

 
 
 
 
Comment by jeff saturday
2009-03-28 11:15:16

I know of 4 houses within 5 miles of where I am renting that are foreclosed and vacant with lock boxes and don`t show up on Realtytrac.

Comment by Temporal
2009-03-28 12:50:23

Yeah… What’s the deal with all of this shadow inventory!

There was a news story a week or so back talking about 75,000 forclosed bank-owned homes in Maricopa County alone. These are just the empty ones (not counting the untold number of homes with “owners” 3-15 months past due on the mortgage that haven’t been forclosed/evicted).

And yet, a cursory look at Maricopa county shows a -total- of around 60,000 RE listings (with both bank owned and privately owned homes for sale).

What’s the true number? How many of that 60,000 are private sellers, how many are bank owned? How many of those 75,000 forclosed empty homes are in the shadows, lurking, ready to stab you if you decide to purchase (knife catch) in their neighborhood?

Am I missing something here?

Comment by Temporal
2009-03-28 12:57:43

Here’s a link with some recent numbers:

http://www.azstarnet.com/sn/fromcomments_byauthor/283989.php

100,000 total empty bank-owned homes in Arizona, 75,000 in Maricopa county, 18,000 new forclosure filings sent out just in Feb 2009. Countless people past-due massively with no forclosure filed (and no way to bring their payments current if the bank cant work out an “adjustment”). This won’t end well……

The banks seem to even be egging the problem on, a handful of my coworkers are massively past-due on their mortgages because the mortgage companies are telling them they HAVE to be before they will consider mortgage adjustments. These people aren’t exactly setting the excess money aside to bring things current if things don’t work out. The plan is to either get a mortgage adjustment that is massively to their favor, or let the house go.

(Comments wont nest below this level)
 
 
 
 
Comment by KyleO
2009-03-28 09:31:50

As far as I know, this is the first no-reserve developer fire sale in the immediate Madison suburbs. Sure, Janesville and Rock County is taking a beating, but it’s totally different 30 miles away.

http://madison.craigslist.org/reb/1091228928.html

 
Comment by hip in zilker
2009-03-28 09:45:49

Did Builder’s Clout Trap Couple in Dream Home?

Two-part story from NPR Weekend Edition (both transcripts online already) about a couple who have been fighting politically connected (and big-time politically active) Texas homebuilder Bob Perry over their defective house all the way to the TX Supreme Court, which he owns.

Part 1:
http://www.npr.org/templates/story/story.php?storyId=102453061

You can link to part 2 from that page.

The last line:
“But the Texas Association of Builders intends to do everything it can to kill that bill and save its regulatory agency.” (yes, “its” means “ITS”)

Comment by skroodle
2009-03-28 10:18:28

Thats what happens when a state makes bribery legal.

The funny thing is, the builder got to pick the arbitrator and he still lost the arbitration case.

There is little doubt that the builder will lose an actual jury trial, but the builder is hoping the couple is dead before any money is paid out as a warning to other home buyers you can win a lawsuit, but it will take at least 20 years before you see a dime.

Comment by hip in zilker
2009-03-28 10:49:25

IIUC, the builder has lost every jury trial up to the TX Supreme Court - where he won (and where he had contributed to all the judges’ campaigns). I think the court ruled something like: the couple shouldn’t have been able to enter binding (ahem) arbitration in the first place.

And the TX Supreme Court says judges can’t recuse themselves just because a party in a case is a contributor, since if they did they wouldn’t be able to hear any cases.

Stinks. I hope it eventually goes to the US Supreme Court.

 
 
Comment by Asparagus
2009-03-28 10:43:41

Heard that story. Unbelievable.

That is the kind of stuff that leads to buying a gun and joining the local militia.

 
Comment by ecofeco
2009-03-28 12:52:40

Perry and his company are notorious shysters. He may put the squeeze on that lawsuit, but his rep is ruined forever in this state. His shady deals and barely-to-code products have been written about for years down here. The only people who would buy a Perry product these days are either from out of state or flippers.

Me? I wouldn’t buy a single damn house in this state that was built after 1969 unless it was a true custom build or I was flipping it. Illegals have decimated ALL the construction trades with low skills and bad attitudes. Between them and the meth heads/alcoholics, everything in this state is mostly shite. When I was learning about flipping years ago (never followed through as a career, just something good to know in life) I spent more time unfvcking shoddy work than actually repairing damage or age.

So yeah, I guess you could say Perry is just doing what everyone else is doing, only worse. A**hole.

Comment by Olympiagal
2009-03-28 13:56:39

Tell us how you feel, eco, ’cause I am having a hard time discerning your opinion here. :)

 
Comment by hip in zilker
2009-03-28 14:28:40

“When I was learning about flipping years ago (never followed through as a career, just something good to know in life) I spent more time unfvcking shoddy work than actually repairing damage or age.”

I heard the same from a paint / drywall guy who worked renovating foreclosed properties in Austin after the 80s boom / bust. He developed some really good skills and knowledge “unfvcking shoddy work” for a contractor who wanted things done right and tried to avoid the ones who wanted him to cover over shoddy work old or new.

Comment by hip in zilker
2009-03-28 14:48:26

Oh, and I hope Perry’s rep is ruined enough that he won’t be able to make and unmake Presidents in the future.

(Comments wont nest below this level)
 
 
 
 
Comment by exeter
2009-03-28 10:39:25

I posted this late yesterday but for the benefit of eviscerating the realtor crime syndicate, here it is again.
________________________________

CRASH!!!!!!!!!!

That was the sound of housing sales and prices collapsing in New York state. Get this….. Sales are down DOUBLE DIGITS MONTH OVER MONTH,i.e. Jan09 to Feb09.

Whuchya got to say now real estate pukes?

http://www.nysar.com/pdfs/monthsales.pdf
___________

Comment by ecofeco
2009-03-28 12:54:14

See? It really IS different! :lol:

 
Comment by desertdweller
2009-03-28 15:37:09

Whew, nice stats. Don’t you get the benz or something
if you go down that fast?

Comment by Blue Skye
2009-03-28 16:43:27

Mercedes Bends?

 
 
Comment by jane
2009-03-29 08:14:15

Well, it’s nice to see Dutchess County finally capitulating. That area is a one horse town, the name of the horse having three letters, starting with “I” and ending with “M”. When I was working there years ago, I never could understand the singularities in the house prices. This area is the cultural equivalent of Horseheads, NY, except that Horseheads has better fishing. But they presumed to asking prices on a par with Fairfield County, CT - ez access to NYC, plus endogenous culture, history and cutes. What really blew my mind is that THE YAHOOS PAID THE ASKING PRICES set by lardy, gum chewing, barely literate realtwhores!

I am by no means well travelled, not that I’m proud of it. My defense is that I have always been nose to the grindstone, knowingly, so that my children would have no debt coming out of college. But even provincial ol’ me knew that these were prices set by buffoons and swallowed by yahoos.

Hope the H1Bs - the worst offenders, from the standpoint of arrogant consumption - are wiped out.

 
 
Comment by tresho
2009-03-28 11:54:32

From today’s free DOT com: Fights break out as auto dealership closes its doors. If you’re going to go down, go down swinging. And drunk, too, if possible.

 
 
Comment by Temporal
2009-03-28 12:40:47

The system seems to have ate my previous post.

Anyway, the day of reckoning finally came for one of my coworkers. After 5 months of not making his mortgage payment (and the mortgage company telling him they would contact him soon) they FINALLY called!

And took that moment to tell him they would get back in touch in May.

Everyone used to make fun of my “frugal” lifestyle, now they make fun of me because they are living in their McMansions with their Heloc’ed new car and 10,000$ barbeque grill without paying a dime. Where does it end? Maybe I should have drank the Kool-Aid.

Get the pitchforks, I think I’m hitting the “anger” stage.

Comment by exeter
2009-03-28 12:51:43

“Where does it end?”

0% 30 year mortgages for those with minimum 20% or more down? The money changers and real estate crime syndicate will stop at nothing to resuscitate the dead housing beast but even 0% won’t work but I’d jump on something like that. Borrow 200k at 0% while yielding 3.5% on savings. Schweeet.

Comment by Temporal
2009-03-28 13:14:51

I’m starting to think your right, it’s crazy-town.

I guess I should have expected this too though…. I mean there was a TON of tom-foolery on the way up, why wouldn’t I expect there to be a TON of tom-foolery on the way down? It’s not like anything changed, the same captain is still at the helm (of the Titanic).

Comment by Faster Pussycat, Sell Sell
2009-03-28 17:20:27

Where does it end?

I wouldn’t confuse 5 months of free rent with a lifetime of servitude.

This is a marathon not a sprint.

As the posters point out below, you will indeed have the last laugh.

(Comments wont nest below this level)
 
 
Comment by Best Wishes
2009-03-28 13:45:05

Exeter, just curious, where are you getting 3.5% on your savings? Can’t find any banks offering that kind of return here in Connecticut, unless of course I tie up my money for 5 years or better.

Comment by exeter
2009-03-28 19:57:44

DOT credit union. Got a year left on a two year CD’s.

(Comments wont nest below this level)
 
 
 
Comment by ecofeco
2009-03-28 12:57:51

Patience. You WILL get the last laugh. Rest assured.

 
Comment by Bill in Los Angeles
2009-03-28 12:58:07

You will get the last laugh. Be patient!

 
 
Comment by ecofeco
2009-03-28 13:22:13

If you happen to be bored today, try googling this:

mortgage fraud arrests

over 1000 different news stories.

For even more fun, google:

securities fraud arrests

Over 6000 stories!

And last but not least:

financial fraud arrests

Over 4000 stories.

 
Comment by Zombie Banks
2009-03-28 14:27:01

I will only purchase a house with a waterwell, solar panels and a wind turbine. Where’s Lad when we really need him?

Comment by dude
2009-03-28 14:50:45

Look up that story from last month where he was quoted. He misspelled his name but you can easily get his address.

Comment by Prime_Is_Contained
2009-03-28 17:52:53

What story was he quoted in?? I missed that entirely.

Comment by dude
2009-03-28 18:22:59

That’s all I’m giving. I wouldn’t want to be accused of aiding and abetting.

(Comments wont nest below this level)
 
 
 
 
Comment by not a gator
2009-03-28 15:28:11

No One Asking For Hyundai Refunds After Job Loss

at least according to Hyundai:

You know that Hyundai Assurance program where, if you lose your job within a year of buying a new car from them they let you return it for almost a full refund? So far, no one has returned any of their new Hyundais. What does it mean?

The easiest conclusion is that none of the buyers have lost their jobs. But perhaps it just means people who are financially secure enough to be in a position to buy a new car got there by making secure bets, so they would gravitate towards a program that provides buyer protection. While on the face of it The Hyundai Assurance program looked like a way to help the financially shaky, maybe it was really a way to draw the safe money from the sidelines. Then again, it could come down a classic dealership truism that’s been around since before The Great Recession, and will remain true even after: once you drive off the lot and bond with the car and show it off to your friends, it’s hard for you to give it up.

Comments are interesting.

 
Comment by Faster Pussycat, Sell Sell
2009-03-28 16:00:44

Today’s brew of choice: an Imperial Chocolate Stout made by a upstate NY firm called Southern Tier.

This is so deliciously chocolate-y, it’s the nectar of the gods. A bit pricey but I think we’ve earned the right to indulge ourselves.

What would make it complete, of course, would be to invite some FB’s over but then I’d have to share it with them.

No, no, no. ;-)

Comment by Faster Pussycat, Sell Sell
2009-03-28 16:03:47

Oh, and for Oly, this would go perfectly to wash down a bucket of oysters. Something about the briny, slurpy, oystery taste and this seems to be a food alignment designed in food heaven. :-D

 
Comment by aNYCdj
2009-03-28 17:04:59

Faster You’re on the west side…hop over to the east side

My Gf Gets free passes to the Met Museum of Art pn mondays they are closed so you can wander all over the Rembrants… VanGohs….with no tourists..

 
 
Comment by Faster Pussycat, Sell Sell
2009-03-28 16:16:10

Oh, and for the dude that calls himself dude: sorry, I had to go all ballistic on your @ss about nettles but email me and I’ll show you how to dress them up so that they’ll knock your socks off. (cba DOT fed DOT ihg AT gmail)

If you know how to make homemade pasta (hint: it just needs flour, eggs, salt and a rolling pin - no fancy machines needed), you can stuff them in a delicious stuffed pasta called pansoti (along with other wild greens - dandelion, borage, chard) served with a walnut sauce that will knock your socks off.

My point is simple. The taste buds of the poor are the same as that of the rich. Hence, they evolved a zillion different strategies for both survival and taste all of which you will now find in the fanciest restaurants. QED :-D

Comment by not a gator
2009-03-28 17:37:44

If you ever decide to go pro, let me know. :D

Question: with all the salmonella on egg shells today, how do you prevent massive kitchen contamination when you make your own pasta?

Making american-style pie crust made me nervous, but so far no incidents. I had salmonella once (entirely my own darn fault, too), was NOT fun.

Comment by Faster Pussycat, Sell Sell
2009-03-28 17:46:34

I’d never go pro. There would be a carving knife inside the sternum of a patron within six months. Have you ever seen the climactic denouement scene in the movie Mostly Martha? That woman and her obsessiveness is me - I’d never tolerate a buncha amateurs eating my food. I have standards. :-D

On the salmonella thing, I have three observations:

[1] I buy my eggs fresh from the farmer. Yeah, even in NYC this is possible. They got laid either yesterday or this morning and later that afternoon they are in my refrigerator. (On an unrelated scientific note, this makes hard-boiled eggs virtually impossible.)

[2] You’re gonna boil the pasta. That’s gonna kill just about anything.

[3] I do not share the American obsessiveness with their “imagined” hygiene. I eat/drink unpasteurized milk, raw cheese, raw eggs, steak tartare and raw fish quite freely. Me and my food have a rational and healthy relationship.

This is not an argument against the usual hygienic logic just an argument against fear. Oh, and where have we seen that before in the financial world? ;-)

Comment by Faster Pussycat, Sell Sell
2009-03-28 17:55:48

And to answer your original question, if you think your eggs are questionable, just scrub the surface gently with highly diluted soap water and then wash in running water to remove the soap.

How hard can such basic stuff be? You don’t need anything fancy.

We have running water and flushable toilets - things that Marie Antoinette never possessed!

I need to learn how to make real pie crust - lard and all. I crave that crackly crust. Of course, my pies would be savory given that I lack the sweet-tooth and all. ;-)

(Comments wont nest below this level)
Comment by exeter
2009-03-28 20:22:38

As a connoisseur of fine pie ;), it took me years to learn how my 84 year old mother made a classic new england crust handed down to her from my paternal grandmother. Lard is a must. It will never be right with Crisco. Flour must be sifted and only just enough water to pull the flour together. Too much water and you got great material for work boot fabrication. Milk over top over crust while baking will get it to blister just enough.

Yeah… Exeter likes the kitchen. My latest success is perfecting the classic NYC marina….. with sodium bicarbonate if you can believe it!

Pizza crust is a whole different creation.

 
 
Comment by Prime_Is_Contained
2009-03-28 17:59:21

“(On an unrelated scientific note, this makes hard-boiled eggs virtually impossible.)”

??? Do tell—never heard of that!

(Comments wont nest below this level)
Comment by Faster Pussycat, Sell Sell
2009-03-28 18:15:34

Extremely fresh eggs will not peel. They have a low albumen pH which makes it attach to the inner shell membrane stronger than to itself - it will tear in other words if you want “proper” hard-boiled eggs making the yolk sulfurous. Albumen turns alkaline after quite a few days of refrigeration.

 
Comment by Faster Pussycat, Sell Sell
2009-03-28 18:22:22

making = without making.

Proof read, proof read. :-)

 
Comment by Prime_Is_Contained
2009-03-28 18:38:55

Huh—good to know! Thanks…

 
Comment by dude
2009-03-28 18:40:18

Thanks for that answer, my wife was thinking our hens were laying defective eggs.

 
Comment by Faster Pussycat, Sell Sell
2009-03-28 19:19:27

You can do anything with fresh eggs EXCEPT the hard-boiled thing (or even semi soft-boiled thing.)

If that’s how you like your eggs then put a few (or more) aside for a two weeks or more.

Gor, I need to give basic classes in food science or somesuch and I’m a born-n-bred city droid. ;-)

 
 
 
Comment by Faster Pussycat, Sell Sell
2009-03-28 18:20:39

Oh, and since I am crazy anyway, the test of a true chef is how they make a dish with the barest minimum of ingredients where there is no place to hide, and mistakes can’t be covered up.

Anybody can serve a fancy dish with truffles. Try making spaghetti aglio e olio, or a perfect French omelette. Even worse if the latter is stuffed. You need to get just about everything within 20 seconds of perfection.

It’s not easy but the results are magic. I have stage fright even when I make it for myself. :-)

Comment by exeter
2009-03-28 20:28:19

You haven’t tried my aglio e olio. As much as I hate living here, the culinary expertise is second to none.

aglio e olio- Oil, basil, salt, pepper and if the aglio is hard and brown, you’re a LOSER!!!!!!!

(Comments wont nest below this level)
 
 
 
Comment by dude
2009-03-28 18:21:26

Thanks, I will Monday.

 
 
Comment by Don't Know Nothin About Buyin No House
2009-03-28 16:19:06

S. Cal bloggers, quake-wise any extra preparation these days?

Comment by Professor Bear
2009-03-28 17:58:46

For what? To buy a home? I suggest nobody buy until after the next magnitude 7.0+ SoCal earthquake, as prices are likely to be a lot lower than currently.

Comment by Don't Know Nothin About Buyin No House
2009-03-28 18:09:04

Well not 7.0, but Luke says 4.5 - 6 high probability next several days more north of you in LA area. Bay area is slightly higher than usual too, but nobody up here is caring.

http://www.quakeprediction.com/

Comment by dude
2009-03-28 19:43:00

I’ll give you favorite quake predictor. During morning drive time pay attention to traffic reports for, “dog on the freeway”. Last decent quake in LA I realized the traffic reporter had been a bit befuddled about all the road warrior pooches that morning.

Lunch time that same day we rocked and rolled for a good 30 seconds!

(Comments wont nest below this level)
 
 
 
 
Comment by Zombie Banks
2009-03-28 17:29:26

Is that a hint?

 
Comment by Professor Bear
2009-03-28 18:03:19

Can anyone explain what gave BOA CEO Ken Lewis a case of Spitzer face? (It can be clearly seen on page 1 of today’s WSJ — check out the sharp downturns in both corners of his mouth, which resemble the recent trajectory of many banking stock charts.)

Wall Street Journal
* MARCH 28, 2009
Bankers, Obama in Uneasy Truce

Wall Street Journal
* MARCH 28, 2009

Bankers, Obama in Uneasy Truce

 
Comment by Professor Bear
2009-03-28 18:08:31

In regulation we don’t trust. I personally like the suggestion to get the courts involved. Perhaps that could serve as a fitting prelude to jail time for corporate managers who broke laws. It seems like only the inner circles of the Fed and the Treasury are interested in turning the U.S. into the U.S.S.R.

Wall Street Journal
* OPINION: POLITICAL DIARY
* MARCH 28, 2009

Fighting Geithnerism
Put not your faith in regulators.
By JAMES FREEMAN

“If companies fail, you need to let them fail,” former SEC Chairman Richard Breeden told the Senate Banking Committee Thursday. Mr. Breeden went on to trash almost every premise behind Treasury Secretary Timothy Geithner’s year of bailouts. “We seem to have policy makers who either don’t understand it or are afraid to use it,” he said of Chapter 11 of the bankruptcy code.

Turning to Mr. Geithner’s latest idea of an overall regulator of systemic risk, Mr. Breeden said: “It won’t work to try to assign planning for every potential risk in the economy to a single agency unless we want a centrally planned economy like the old Soviet Union. . . . It is particularly hard for me to see a case that any single group of regulators did such a good job [in anticipating the current crisis] that they deserve becoming the Über Regulator of the country.”

As the regulator who declined to rescue investment bank Drexel Burnham Lambert in 1990 and a leading architect of the response to the S&L crisis of the late 1980s, Mr. Breeden spoke from experience. As SEC chief in the early 1990s, he tried to make it crystal clear that no securities firm would be considered “too big to fail.” That way, the firms’ creditors would have to make their own careful judgments and then live with the results, even if it meant Chapter 11. In the event of a failure, judges, not Cabinet secretaries, would orchestrate a workout. “The rule of law is a very valuable thing,” said Mr. Breeden, especially when compared to the ad hoc rescues of the past year. Mr. Breeden added that the Federal Reserve “should be a central bank, not the world’s largest hedge fund.”

Mr. Breeden proposed a simple reform in which courts would be given the resources to quickly process an AIG-sized bankruptcy. He recommended “a special ’systemic bankruptcy’ court composed of federal District or Circuit Court judges with prior experience in large bankruptcy or receivership cases,” much as the Foreign Intelligence Surveillance Court specializes in weighing warrant requests related to foreign spying in the U.S.

Comment by Prime_Is_Contained
2009-03-28 18:37:14

“He recommended “a special ’systemic bankruptcy’ court composed of federal District or Circuit Court judges with prior experience in large bankruptcy or receivership cases,” ”

Brilliant! This is _so_ right.

Breeden for president!

Comment by Professor Bear
2009-03-28 22:35:30

Isn’t it a shame that top Fed bankers like Geithner and Bernanke are too sure of the supremacy of their proposed remedies and too far above the law to end their too-big-to-fail bailout program?

 
 
Comment by Professor Bear
2009-03-28 22:40:17

I personally would be far more confident in the concept of Fedury as Übermensch Regulator of the global economy if they had shown the faintest recognition of how serious the housing market situation had become as of August 2007 or so, back when the econoganda message was still “Subprime is contained.”

 
 
Comment by Prime_Is_Contained
2009-03-28 18:33:05

Probably late in the day to be asking this, but…

Has anyone thought about the counter-party risk on the ultra-short funds? I bought some SRS the other day, and just got around to looking at the semiannual report. They hold nothing but repo agreements with some of the biggest names not to trust right now: Bank of America, Credit Suisse, ING, JP Morgan, UBS.

That may not be the current set, since those repos were all due last Dec (date of the report was Nov 30).

But it does make me think: do I trust those firms to pay up if the bets go the way I hope?

Anyone?

Comment by Faster Pussycat, Sell Sell
2009-03-28 20:15:38

Aren’t you glad the Fed is guaranteeing your counterparty risk?

It’s the flip side of the guarantee. They quite can’t be seen to be outlawing certain kinds of bets like a third-world country although they would love to do it.

Why not enjoy the free ride while it lasts, huh? ;-)

 
 
Comment by Professor Bear
2009-03-28 22:43:52

I wonder if Congressional dolts will make exactly the same mistakes as were made in the 1930s, just to bake another Great Depression into the cake? Time will tell…

Briefing
Globalisation and trade
The nuts and bolts come apart

Mar 26th 2009
From The Economist print edition
As global demand contracts, trade is slumping and protectionism rising

Illustration by Ian Woodcock

COMPARISONS to the Depression feature in almost every discussion of the global economic crisis. In world trade, such parallels are especially chilling. Trade declined alarmingly in the early 1930s as global demand imploded, prices collapsed and governments embarked on a destructive, protectionist spiral of higher tariffs and retaliation.

Trade is contracting again, at a rate unmatched in the post-war period. This week the World Trade Organisation (WTO) predicted that the volume of global merchandise trade would shrink by 9% this year. This will be the first fall in trade flows since 1982. Between 1990 and 2006 trade volumes grew by more than 6% a year, easily outstripping the growth rate of world output, which was about 3% (see chart 1). Now the global economic machine has gone into reverse: output is declining and trade is tumbling at a faster pace. The turmoil has shaken commerce in goods of all sorts, bought and sold by rich and poor countries alike.

 
Comment by Professor Bear
2009-03-28 22:46:42

Walking away may in some cases work well in ship building, but apparently not so well in ship building contracts.

Business
Shipbuilding
Sink or swim

Mar 26th 2009 | HONG KONG
From The Economist print edition
A deluge of new ships pours into a drowning industry

LIKE unwelcome guests who will not leave, 453 container ships, 11% of global capacity, now float outside the harbours of Hong Kong, Singapore and other South-East Asian ports. They are unwanted by their hosts as well as their customers. In recent days China has quietly let it be known that it wants to rid its territorial waters of these nautical squatters.

Only five years ago huge demand from China meant that all these ships, and more, were desperately needed. This had a dramatic impact first on shipping rates, and then on supply (see chart). Between the end of 2006 and July 2008, shipyards received enough commissions to double the world’s fleet. Now these new ships—more than 9,000 vessels—are taking to the water just as demand has collapsed. The world is awash with ships.

To see how the recent boom and bust has affected value, a Hong Kong broker cites a 150-tonne “Cape class” ship that sold in 2003 for $18.5m in the used market. Critical to the price was the prevailing charter rate, then $15,000 a day. By last summer this had risen to $175,000 a day, and an identical ship sold for $85m. Rates peaked shortly thereafter at $300,000. Today rates are back where they were in 2003. Rather than try to find a buyer for another identical ship, albeit one that needed repairs, the owner dumped it for $7m to be used as scrap.

Orders for new ships have, not surprisingly, collapsed and scrutiny has shifted from what can be bought to what can be cancelled: nothing, it turns out, without great effort. South Korea’s shipyards, the global leaders, have learnt from previous busts. They typically demand 20% up front, a further 60% during construction, and the final 20% payment upon delivery. Walk away and you lose a fortune.

 
Comment by Professor Bear
2009-03-28 22:49:26

Local lenders getting TARP funds defend loan practices
By Mike Freeman (Contact) Union-Tribune Staff Writer
2:00 a.m. March 28, 2009

Banks say they’re lending. But consumers and businesses are often finding credit difficult to come by, and some are angry that federal bailout funds haven’t greatly opened the spigot for loans.

This quandary highlights the perception gap between what the public and some politicians expect from recipients of the U.S. Treasury’s Troubled Asset Relief Program and what banking industry experts say are the realities of the program, given the economy.

Bankers, including the five local institutions that have received funds through the TARP Capital Purchase Program, say they’re doing what they’re supposed to do – extending credit.

Many banks report an increase in home mortgages as interest rates have plunged to near-historic lows. Wells Fargo, for example, said it had taken in $63 billion worth of mortgage applications in December nationwide, the fourth-highest month in the San Francisco bank’s history.

But bankers also say they’ve seen a drop in demand for loans overall as the economy has weakened and loan underwriting standards – which get tougher when the economy is poor in order to mitigate risk – tighten.

So homeowners with little equity or high-dollar mortgages end up paying steeper rates or can’t get approved for refinancing. Commercial building owners find it difficult or impossible to refinance loans without putting up more cash. Credit card borrowers find limits slashed and interest rates raised.

“The notion that banks aren’t lending just is not true,” said Greg McBride, senior financial adviser with Bankrate.com, an industry research firm. “The change is whom they are lending to. Borrowers who are borderline when it comes to getting approvals are not getting approved in this environment.”

 
Name (required)
E-mail (required - never shown publicly)
URI
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Trackback responses to this post