Bits Bucket For October 28, 2009
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The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
October 28, 2009
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Good Morning again! Coffee time is here and tipplers
are welcome! Still darker than the back side of the moon and cold as all heck. Big fire going and the dogs and cats are all scrunched down nearby. Cheers.
Sounds cozy! I myself have one cup to go before reaching optimal caffeination for the day…
Good Morning HBB gang. It’s a wonderful October morning in Wisconsin. The world my be a mess but you couldn’t tell it from Fall mornings in the flyover country.
I saw the early morning sun hitting the trees and leaves after shaving and showering this am. I had to go out on my balcony for a cup of coffee to soak in the sights. My neigbors dog was out rolling in the leaves and acknowledged me with her friendly woof, a playful crouch and a happy tail wag.
My 13 great burr oak leaves are brown and nearly all down but the sun was shinning through the brilliant reds, translucent yellows and dazzling golds of the maples and others. It’s about 45 degrees and I could see my own breath and coffee and life…never tasted so good…hidden from the rest of the world.
…the colors…the colors.
Halloween…is coming and we celebrate.
Then it soon, it will be the …snows…the snows…
…another cup of coffee and I return to reality.
Its snowing here on the front range, from Cheyenne all the way to Denver. They’re saying that maybe 14 inches by the time its over tomorrow.
My family lives in northern MN on the edge of the Boundary Waters Canoe Area Wilderness(BWCA) and Quetico Park.
They have had snow. Soon it will a gathering of the deer hunters, my brothers famous heart attack breakfasts and friendly bargaining for the best deer stands at my mothers place.
My BIL and sister have 600 acres. If I go home and things are slow at my mom’s place. They have a always have lot of deer and a warm fire in their log home.
She just says bring our old Winchester and your silly face home this year…and I say, maybe…maybe..
your silly face home this year
Now I have a picture of you.
LOL
an early hard freeze hosed our fall colors here. Meh.
They need to change “global warming” to ” crazy-arse global changes.” CA had a record rainfall a few weeks ago, 20″ inches in some places in 48 hrs. Lake Nacimento rose 19′, we need it!!
Nary a drop here.
‘We’ need it.
Who you calling we, Kimosabe?
“an early hard freeze hosed our fall colors here.”
Looking at the stock market, it did a number on the “green shoots”, too.
Ahhh my childhood days…..I grew up in southern CT lots of SF ranches lots of kids walking distance to the schools…even in rain we walked lots of us.
So Halloween was a Big night usually over 100 sometimes 150 but one year incredible great weather 72. beautiful red sunset, and we ran out…my mom stared using the candy we just got to make new bags…total count for the night 207. next year it was cold and damp and we had a lot left over.
But now very few kids where i live queens and last year we could barely even give way 15 …….
——————————————
Halloween…is coming and we celebrate.
Good to know the sun shaves and showers. Gotta stay neat!
Hey, gotta keep you Tarheels advised and up to date on world events Bill.
Morning All
Many of you have shared personal, up close realities on the current state of the recession. Until quite recently, I haven’t had much to contribute - until now.
My sister lives in Ohio, but works in PA. She worked at a dry cleaner for ten years, the plant closed Sept 1. She is collecting UE and hopes to retrain into medical. She spent two weeks with us recently and I was shocked at how tuned in she is to the current economic situation. (We were raised NOT to discuss such matters publicly period - odd). - Her husband is/was construction worker - you can guess how that’s working out.
My niece here in WI will end her 25 year position with AT&T December 1. Nice severance - one year, and they offered a relocation for same salary $$$$$$.
The problem? House, children, husband’s somewhat safe job at Dean’s (whom bought out Golden Gurnsey - lost cadilac health insurance, same salary). She also feels um…guilty for considering a move due to aging parents. Sigh.
Our only son moved back home due to layoff in HVAC. He too has returned to school and is leaning toward nursing profession. I feel bad for him, but on the plus, he has loving parents who support him.
Many more anecdotes on close family and friends in the past few months who have lost income and purchasing power, children moving back home (late 20-30 something), and cost cutting on purchases.
Hubby and I are going to give supermarket gift cards to our unfortunate family and friends inside Christmas cards, which will be mailed before Thanksgiving.
And no stupid form letter on how wonderful our lives are - arrgh.
Best always,
Leigh
P.S.
Yes we did see this coming, and my nightmares were confirmed here on the board.
Seventeen acres may not seem like much, four bed/three bath home - but we felt in our souls that we may be the shelter in the storm that is brewing.
Congrats Muggy!
Leigh
Seventeen acres is “not much?” I’d be OK with a 1/5 acre and delighted with 1/2 acre.
Yeah, I wondered about that statement as well. Not only is that a huge space, seventeen acres of raw land in western WA goes for well over $500k, and into the several millions depending upon location. With a house on it, you’re talking millions. It’s reserved for the very wealthy.
Developers would be licking their chops over any parcel over ten acres here. Yes, still.
A friend of mine is fighting a developer that purchased a five acre lot next door to her house. He razed the historic house - after promising he wouldn’t of course.
Then submitted plans to township for a 45 unit development. Which the twp. approved, due to certain, *ahem* considerations.
Why’s she fighting it? She can’t afford the legal fees against a lawyered up developer. Her property just skyrocketed in value. Sell the place for a boatload of cash and move out into the country to get away from the riff raff.
No, the proposed development would diminish her property’s value. (They had to change the zoning to get this proposed townhouse hell approved.)
A group of likeminded members of the community have joined forces with her, they’ve lawyered up as well.
Depending on how the rulings proceed, they’ll enlist the aid of PA DEP - Pa. Dept. of Environmental Protection.
The developer is new to the game - he’s taking his proceeds from a profitable business to cash out on the real estate madness. To date he’s been able to buy local officials, but I do not believe his pockets are deep enough nor his connections so impressive that he’ll be able to purchase county and state officials.
This sounds interesting, X. Keep us posted please.
OK
“Seventeen acres may not seem like much, four bed/three bath home - but we felt in our souls that we may be the shelter in the storm that is brewing.”
I remember when you were shopping for that place and its description made it seem sanctuary-like. Your family is lucky for your prescience. Destined to be the future well loved family matriarch? We’ve also been shopping for the expandable home w/that in mind. I’m feeling without a doubt someone will be joining us somewhere in the future, whether its a one of my in laws after the loss of the other, another family member who is well respected in his industry but is slowly burning out due to incredible hours or a friend in need.
CarrieAnn,
It is a sanctuary
Nice thing about this property is the ability to garden and thousands of gorgeous trees (some fruit).
Best to you in your search.
We lucked out with a foreclosure in very good shape, save for the paint colors - yeah, I know. LOL.
Only four houses on our…um…street…er…road?
Grizz -omg 500K? Yikes.
Best,
Leigh
CarrieAnne and Leighsong: I’m the same way. We have more house than we need, but I have a feeling that we may be taking people in at some point.
Sounds like a lot of us here are lifeboats for people in our lives. I was going to say we might be enablers for people making bad decisions but this recession is beginning to shape up as a depression.
I agree with your “shelter in the storm” commetn, and I feel much the same way. Here’s to hoping we’ll be up to the task.
Very Practical gifts Leigh……I hope after this debacle we realize its just a day to be with friends and family. And the frenzy was just a shameful display of stupidity.
Of course we have so many business models that are tied to those 4-6 weeks..that wont survive otherwise, If we acted reasonably.
————————————————
Hubby and I are going to give supermarket gift cards to our unfortunate family and friends inside Christmas cards
This year we made a larger than usual contribution to the local Salvation Army. More than just about any organization, those folks are on the front lines.
Living in a community of mostly retirees, we don’t see the carnage of the Great Recession up close. Our offspring and with one exception the sons and daughters of those we know have all managed to keep their jobs so far.
Retired seniors as a group are probably in better financial shape than all but two groups: Wall Streeters/banksters and federal employees. We definitely don’t need another $250 payoff from Obama.
Thanks for keeping in touch, Leighsong. It sounds like Depression stories I’ve heard - families helping families and friends. We’ll know it’s really bad when we hear more stories about families feeding strangers, which was very common 75 years ago.
hear more stories about families feeding strangers,
Frontline last night, or online. CLOSE TO HOME.
Several boarders taken in.
The Bucket List - Laugh until you cry
Carter hands Edward an article about Kopi Luwak, Edward’s favorite coffee.]
Carter Chambers: Read it.
Edward Cole: [reading] Kopi Luwak is the world’s most expensive coffee. Though for some, it falls under the category of “too good to be true.” In the Sumatran village, where the beans are grown, lives a breed of wild tree cat. These cats eat the beans, digest them and then… defecate.
[pauses]
Edward Cole: The villagers then collect and process the stools. It is the combination of the beans and the gastric juices of the tree cat that give Kopi Luwac…
[Carter starts laughing]
Edward Cole: … its unique flavor… and aroma. You’re shitting me!
Carter Chambers: [laughing] Cats beat me to it!
[Carter and Edward both laugh hysterically.]
Leigh
“The U.S. Treasury Department is in talks with GMAC Financial Services Inc about a possible third cash infusion to the company, an Obama administration official confirmed on Tuesday night.”
http://www.cnbc.com/id/33502913
Might as well give the idiots a blank check, cmon man!!!!
i obtained a short video from the talks:
http://www.youtube.com/watch?v=bQEnzrRyo3c&feature=PlayList&p=A7721D940DC34266&index=0&playnext=1
You would think GMAC would be flush from all that Cash for Clunker money.
NOT!
How did GMAC earn its “too big to fail” status? Or maybe I should ask which counterparty is most at risk in event of its collapse?
Look at which private equity fund purchased GMAC. Then look at who sits on the board of said private equity fund.
I thought JP Morgan acquired GMAC.
GM currently owns 9.9% of GMAC and a blind trust owns an additional 14.6% of GMAC. As part of agreement that allowed GMAC to become a bank holding company, GM has been required to sell its ownership in the trust by Dec. 24, 2011.
Additionally, following various capital support actions the U.S. Treasury owns approximately 35.4% of GMAC with Cerberus owning 22% and other Cerberus investors owning the remaining 18.1%.
Cerberus BOD of course, contains one former Vice President and one former Secretary of the Treasury.
I guess JP Morgan just processes payments, or something. Last year I called on my loan through GMAC, and it was JP Morgan on their automated system.
Let’s see.
GMAC finances GM purchases.
GM is owned by Obama and his union lapdogs.
GMAC is getting bailed out yet again with tax dollars.
And you’re surpised by this because……
Eddie, Skip’s point was that Dan Quayle chairs Cerberus’ board of directors and John Snow, Bush’s second to last Treasury Secretary, is also on the board. You are always so partisan. GM/GMAC is a perfect demonstration of Republicratic cronyism. We are screwed by both parties equally, in collusion with big business. You need to pull your head out of the political sand and see things clearly.
SO the fact that GM is owned by Obama is irrelevant. Must be nice to live in that world of yours.
“SO the fact that GM is owned by Obama…”
This is not fact, but another deluded fantasy of yours. You’re slipping…
Eddie, did you read Skip’s post?
“GM currently owns 9.9% of GMAC and a blind trust owns an additional 14.6% of GMAC. As part of agreement that allowed GMAC to become a bank holding company, GM has been required to sell its ownership in the trust by Dec. 24, 2011.
Additionally, following various capital support actions the U.S. Treasury owns approximately 35.4% of GMAC with Cerberus owning 22% and other Cerberus investors owning the remaining 18.1%.
Cerberus BOD of course, contains one former Vice President and one former Secretary of the Treasury.”
Obama? Got the numbers to back that up?
I always thought it was because of derivatives contracts held against them? If they fail then so many contracts have to be paid and it topples things?
Without GMAC, GM is floating downstream, dorsal fin down.
They put your money where their mouth is.
…The filing comes amid similar troubles in the commercial-property arena. Mall-giant General Growth Properties and hotel-chain Extended Stay Inc. filed for bankruptcy in the past year, and more commercial-company real-estate ventures could fail amid an inability to refinance debts and reduced customer traffic as consumers continue to pull back.
The difficulties are a blow to Capmark’s private-equity owners. In 2006, a group led by Kohlberg Kravis Roberts & Co., Goldman Sachs Capital Partners and Five Mile Capital Partners paid $1.5 billion in cash to acquire lender GMAC’s commercial real-estate business, which they renamed Capmark.
…
WSJ - By MIKE SPECTOR, LINGLING WEI AND PETER LATTMAN
…
Ya just can’t make this stuff up - sigh.
Leigh
While the debate on TBTF among central bankers rages on in the international financial press, some TBTF institutions are already breaking up. I certainly hope we are seeing the onset of an avalanche. The international banking system would be far more stable without so many 800 lb financial gorillas roaming the planet, any of whose failures could bring down the entire global economy.
Finance and Economics
Restructuring ING
Breaking up
Oct 27th 2009
From Economist.com
A dramatic restructuring for ING. Which big European bank is next?
IF ICELAND is the place that has suffered most from the banking crisis, the Benelux countries can make a justifiable claim to second place. After the calamitous sale of ABN AMRO and the subsequent dismemberment of Fortis, ING, the biggest bank in the Netherlands, announced on Monday October 26th that it was splitting itself up. The bank will sell its insurance businesses, divest the American arm of its ING Direct online-banking unit and carve out some bits of its Dutch retail activities. By the time the restructuring is done, in 2013, the bank’s balance sheet will be 45% smaller than it was in September 2008.
…
Shrinkage: Bad for George Costanza but good for world banking.
Let’s talk when they shrink the true PTB banks - JPM, GS, Citi, Barclays come to mind.
Until then - shrinkage is basically the PTB taking out the competition.
(note that I didn’t include BofA or WFC on that list; Citi is questionable - they’ve historically been but seem to have fallen out of favor)
I have to believe that this is an attempt to hide “bad assets” to create an entity with enough negative net worth to save the rest of the company.
The tax credit will be extended to April 30, 2009 with a maximum of $7,290. That is 1% of the loan limit of $729,000.
My early analysis is that this will be very harmful. The Prof should have shorted the heck out of the housebuilders. People will see that the credit is getting SMALLER. I think that will have an emotional and psychological impact. By reducing the size I believe that will hurt the industry nearly as much as doing away with it. This, in my opinion, will prove to be a hollow victory for the REIC.
Personal finance
Look who got the homebuyer credit
By Eileen Ambrose eileen.ambrose@baltsun.com
October 27, 2009
The first-time homebuyer credit is set to expire in several weeks, and there’s a push among those in Congress and the housing industry to extend and even expand the generous credit that gives people as much as $8,000 to buy a house.
But no extension should be granted unless Congress and the Internal Revenue Service deal first with issues of fraud surrounding the credit.
The Treasury inspector general for tax administration last week reported that the IRS appears to have allowed tens of thousands of ineligible taxpayers - including some 4-year-olds - to claim millions of dollars in homebuyer credits.
…
I wonder how much they will piss away trying to clean up that mess?
Evidently, the plan is not to clean up the mess, but rather to sustain and expand it. Note that the “first-time home buyer” qualification has been eliminated from the program’s description. Next thing you know, they will be renaming it the “Real Estate Investment Tax Credit.”
I have maintained since the termination date of the “first-time home buyer tax credit” program was first announced that it would be extended and (potentially) expanded, and it looks like I was correct.
Now I will turn my prediction into a temporarily-stopped clock: So long as there is no jobs recovery, every time over the next few years that this program is due for termination, the Congress will instead vote to extend it. Only when unemployment begins to decrease and housing prices have reached yet another temporarily-high plateau will the program finally be officially made a permanent real estate subsidy, as home prices would fall if it were ever ended, and that would be bad. Get ready to claim your four-year-old child’s new home purchases on your taxes again
.
Who are these blind politicians who cannot see that high housing prices lead to a poor economy? Less discretionary income due to high monthly shelter costs means less consumption. I thought they wanted people to consume more. Propping up Megabank, Inc. with boatloads of free cash while forcing J6P to pay his debts through hard work will do nothing to help consumption. If they really wanted to continue the shenanigans, they would wipe out J6P’s debt, and offer him more credit. It’s all just a game anyway, right? Why not just call a do over?
including some 4-year-olds
I wonder how much they will piss away trying to clean up that mess?
ncluding some 4-year-olds
I wonder how much they will piss away trying to clean up that mess?
I would think most four-year-olds are potty-trained.
It’s easy. Put people in jail.
Fraudulent claims are a big reason home sales spiked with the credit. Many people were buying in order to claim the credit when they had no business in doing so. That said, hurrying up to buy a house in order to get an $8k rebate is beyond foolish.
It’s easy to say that, but once they quit paying their mortgage it appears they will get to live there for a long time for free. Somehow as a renter I really feel like a loser. Of course, I have zero debt and can afford to loose my job for a year. But that’d hurt my nest egg.
grammar again:
lose my job…
loose my demonic sign-altering, hacking, mischief-making propensities…
How could the Congress possibly resist the chance to renew a program which is so rife with fraud?
‘Stimulating’ tax fraud
By Boston Herald editorial staff
Monday, October 26, 2009 - Added 2d 18h ago
There’s a move afoot in Congress to extend the first-time homebuyer tax credit program that was designed to help stimulate the nation’s economy by getting home sales going again.
But a stunning lack of oversight of the existing program should give every taxpayer pause about extending it beyond the Nov. 30 deadline, or expanding it to include all homeowners.
For starters, it might have been a good idea to require that folks filing for the $8,000 credit provide documentation to prove that they had actually, you know, bought a house.
…
“For starters, it might have been a good idea to require that folks filing for the $8,000 credit provide documentation to prove that they had actually, you know, bought a house.”
They should have to prove they bought a house AND that it is their primary residence.
Wouldn’t requiring verification of home purchase and primary residency reduce the stimulative benefits of the tax credit subsidy program? It would be something like the dampening effect on mortgage lending applications of requiring income verification.
Wouldn’t requiring verification of home purchase and primary residency reduce the stimulative benefits of the tax credit subsidy program? It would be something like the dampening effect on mortgage lending applications of requiring income verification.
+1
If you want to reinflate a bubble, best thing to do is to try and recreate the conditions that contributed to the bubble, including leaving the door wide open for fraud-driven speculation.
LOL.
BRILLIANT dig there, Prof. One of your all time best.
I’m so glad our Congress wants to renew a stimulus program which hands out $8K to four-year old and foreign national non-home buyers, not to mention IRS employees interested in getting some of the taxpayers’ gravy. Where does the Treasury Secretary stand on the renewal of this tax fraud-ridden program?
Home buyer tax credit fraud called ‘disturbing’
WASHINGTON (Reuters) — Thousands of individuals claiming the first-time home buyer’s $8,000 tax credit may have been trying to scam the system, including purported 4-year-olds and illegal immigrants, according to a watchdog report released Thursday.
Treasury Inspector General for Tax Administration J. Russell George told a House panel that more than 19,000 people filed 2008 tax returns claiming the credit for homes they had not yet purchased. George said his office had identified another $500 million in claims, by some 74,000 taxpayers, where there were indications of prior home ownership.
He told a House Ways and Means oversight subcommittee that they also found 580 taxpayers under the age of 18 who claimed $4 million in first-time home buyer credit. One was 4 years old.
“Some of our findings, while preliminary, are somewhat disturbing,” George said. Among the most striking instances of fraud include 4-year-olds, non-U.S. citizens and IRS employees inappropriately claiming the benefit, he said.
…
I’m not sure whether the 4 yo purchase is considered as a scam. It might fall in the ‘loophole’ category. Is there a requirement specified by the IRS that a 4 yo (or age limit) to purchase a home?
Stupid gubermint just never gave it a thorough thought before rushing out all these subsidies.
It sounds like someone substituted their child’s social security number for their own.
I’m guessing a minor can’t sign the necessary contracts to own real estate.
4 yo cannot enter into a contract.
Therefore, 4 yo cannot buy a house.
Therefore, 4 yo cannot qualify for the credit.
You could assign a property to the 4 yo but they cannot buy it.
An adult could purchase the house for a minor if they were the trustee of a trust holding cash or other saleable assets for the minor. The trust would be the legal owner but the minor could be the beneficial owner. Not sure if such a transaction would qualify for the credit or if it is only for “natural persons” as the tax code puts it. And, please remember, the house has to become the purchaser’s primary residence. Can a trust have a primary residence? Do you look to the beneficial owner?
The idea that this is what happened in the transactions mentioned in the report is pretty much laughable. It is just plain old fraud.
“Some of our findings, while preliminary, are somewhat disturbing,”
“instances of fraud include 4-year-olds, non-U.S. citizens and IRS employees inappropriately claiming the benefit, he said.”
As long as it`s not a 4-year old IRS employee who is a non-U.S. citizen inappropriately claiming the benefit. Now that would be somewhat disturbing.
Original reports were that IRS employees were also participating in tax credit fraud.
More Government Home Credit Scams
by Connie Hair
10/26/2009
Thousands of people are scamming the First-Time Homebuyer Credit for hundreds of millions of dollars, according to the testimony last week of a Treasury Department Inspector General. Now Congress apparently wants to extend this program again without fixing it.
…
Geez. Let the stupid thing expire. if home prices take another dive, they can start it back up again.
The tax credit temporarily cleared a lot of debris in my market but it also stimulated a lot of defaults. People are no longer trying to hold on to their sinking debt-traps. They are capitulating left and right. That’s why we’re seeing record delinquencies.
The knowledge that buyers are paying 50 pct off with 8 thousand dollars from the government is shattering the housing bubble delusion down here in Florida. Hopes and spirits are completely crushed. Envy, bitterness, and anger are on the rise.
“debt-traps”
That would be a great title for a movie, like the Money Pit. Tom Hanks could star in the ” Debt Trap”.
Envy, bitterness, and anger are on the rise.
That is just so wrong.
What happened to the Florida of old - where so many slackers, malcontents, escapers from the real world and dreamers eventually showed up and settled.
Everyone had their little corner of the state staked out:
Miami was for the Cubans and retired Noo Yawkahs
Midwestern retirees liked the Gulf Coast.
the Keys and Key West - for the bohemian, drunkards, and all around fun/lazy people.
And the rest of the state was cracker/redneck/biker.
Anything that ailed a soul could be treated with a healthy dose of Florida sunshine and the cool breeze coming off the Atlantic Ocean.
Now it’s home to two of the seven deadly sins (plus bitterness),
a regular location for the show COPS and has its own FARK thread. wtf went wrong?
#1 Well we started drug testing employees….and not executives
that puts a foul taste in anyone’s mouth
#2 We fell in love with being upscale and we didn’t realize we had to pay the monthly upscale cost to survive.
#3 We let people buy orange groves and cheap livable trailer parks and kick people to the street cut down all the trees to put up luxury condozes all with government approval and nary a word from the environmentalists who wanted a piece of that pie to get away from the riff raff
#4 and don’t forget even social services had stopped using the word Clients and now welfare recipients, the disabled, the poor are now known as CONSUMERS of our services.
——————–
wtf went wrong?
What went wrong with Florida?
Funny I suppose but you could say exactly the same things about California. I grew up there, loved the place but I hate what it’s become and would never go back.
Well, OK, parhapse Sonoma or Medecino but Southern California can pound sand for all I care.
On a related note, has anyone here ever read Kim Stanley Robinson’s “The Gold Coast”? it captures this sentiment perfectly.
Sleepr Cell
I remember So Ca in the early 60’s, having grown up in the San Fernando Valley (No Hollywood). Ventura and Los Angeles Counties for the most part, look and feel 3rd world now. I read just the other day, Thousand Oaks will have a Hispanic (think illegals) majority population no later than 2035-40. T.O. use to be where educated folks with no tattoos and piercings lived. The K-6 near us (in T.O.) is 55% anchors.
Day Laborers are in Westlake Village now, standing around by the onramps. So Ca is toast. You were wise to get out.
No, it will tell people to buy now or lose the credit forever, because you lose money the more you wait.
Recipe for unlimited housing subsidies:
1) Enact a new housing subsidy program, to provide for “affordable” housing;
2) Note that real estate prices have increased as a result, which is evidence the program is working well;
3) Call for the program’s renewal when it is due to expire, on the grounds that real estate prices would fall if it were allowed to end, which would be bad;
4) Collect campaign contributions from REIC constituents as a reward for voting in favor of the program’s renewal.
Lather — rinse — repeat.
Muggy, take note! I don’t expect the swirling fraud allegations to slow down the Congress one iota in their rush to renew the “‘”‘”‘first-time’”‘”‘” homebuyer credit.
Toddlers Buy Houses When Stimulus Trumps Reason
Commentary by Kevin Hassett
Oct. 26 (Bloomberg) — The huge economic stimulus blew up in the faces of its supporters last week. The legislation led, we now know, to a massive tax fraud. If ever there was an object lesson in the perils of rushing out a stimulus plan, this is it.
…
No Proof Needed
That’s right: Congress passed a law that made it possible to have the IRS mail you a check for $8,000 if you claimed you were a first-time homebuyer. That’s all you had to do — assert that you deserved the credit. The IRS didn’t require you to provide proof that your claim was genuine before your check was put in the mail. Sound like a recipe for fraud?
The tax fraud was so widespread and egregious that it almost makes you laugh.
Did you forget to buy a house before claiming the credit? Not a problem. “We identified more than 19,300 electronically filed 2008 tax returns on which taxpayers claimed the First-Time Homebuyer Credit for a home which had not yet been purchased,” reported J. Russell George, the U.S. Treasury inspector general for tax administration, who testified about his department’s investigation.
Prior Home Ownership
Did you claim the credit even though you owned a home previously? Not a problem. George said his office found almost 74,000 claims “by taxpayers who had indications of prior home ownership within the preceding three years.”
Were you unable to purchase a home because you haven’t finished preschool and don’t know how to read the forms? Not a problem. George cited the “more than 580 taxpayers younger than 18 years of age who claimed almost $4 million in First-Time Homebuyer Credits. The youngest taxpayers receiving the credit were 4-years-old.”
The shocking facts go on and on. About 3,200 claims were filed with individual taxpayer identification numbers, rather than Social Security numbers, suggesting that alien residents joined American citizens in partaking in this rip-off.
…
(Kevin Hassett, director of economic-policy studies at the American Enterprise Institute, is a Bloomberg News columnist. He was an adviser to Republican Senator John McCain of Arizona in the 2008 presidential election. The opinions expressed are his own.)
I’m going to see if our cats can qualify as first-time house buyers. That would be frickin’ sweet.
Do they work for the IRS? Are they foreign cats (say Siamese)? Are they under the age of four?
Apparently, none of the above criteria necessarily would eliminate them from eligibility.
They are 12 so they are probably too old for the FTHB program. They seem to enjoy licking themselves. That must count for something.
Aren’t there laws against cat-houses though?
I am going to adopt a cat today- then buy a house. I can see lots of pet adoptions will help that problem.
I’m sure the well known 1,750,000 Democrat residents of Chicago’s cemetaries will all wind up applying for, and receiving the credit.
These are very active deceased people who also never fail to vote when Cook County Democrats or the Electoral College needs them.
Only mean-spirited neocons would deny these folks (some of whom are over 175 years old) a few extra dollars.
“I’m sure the well known 1,750,000 Democrat residents of Chicago’s cemetaries will all wind up applying for, and receiving the credit.
These are very active deceased people who also never fail to vote when Cook County Democrats or the Electoral College needs them”
Note :
***this is an alleged gop factoid that the remaining three(3),frustrated Republicans there have failed to prove in the last 80 years***
That’s OK. The extra votes in Florida in 2000 balanced things out.
If you’re going to take potshots, then I will too. I wonder how many of these fraudies are hard-working “real Americans” who hate government, vote Republican, and then complain that “their” SS check and “their” unemployment check is not enough.
Only mean-spirited neocons
Cobalt, it’s you!
Yup, that’s me - harshin’ everybody’s mellow an disrespectin’ authority.
Well it’s a tough job but somebody’s got to do it…
how did you come up with your handle, if you don’t mind me asking…
(I like cobalt blue but I’m partial to cerulean)
Well it’s a tough job but somebody’s got to do it…
LOL
(I like cobalt blue but I’m partial to cerulean)
I like Thalo.
All blues but Prussian blue, I used to say, ’til I found out it can protect you from dirty bombs.
How soon after exposure to radioactive cesium or to thallium does somebody have to receive Prussian blue to avoid illness and death?
Prussian blue should be taken as soon as possible after exposure. However, even when treatment cannot be started right away, patients should be given Prussian blue as soon as it becomes available because it is still effective even after time has elapsed since exposure.
from the FDA website. Who knew?
“I’m going to see if our cats can qualify as first-time house buyers. That would be frickin’ sweet.”
Oooo. Thats an awesome idea! I’ve got four of the furry little bastards and it’s time they started pulling their own weight. Thats a cool 32K right there!
My friends cat got invited to play soccer for the People to People Student Ambassador Programs. Now she (the cat) can buy herself a home when she returns!
I’m going to have a talk with our dog about this. You’re right, Sleepr, these pets are slackers.
Sounds like just another way for the Gov to reward criminals with Tax payer money. No different than TARP.
I wonder how many houses changed hands only on paper. Let’s see, the house is in my name, but if I transfer it to my wife: $8,000. OK, less the 2% transfer tax: $6,400. If I were at the IRS, I’d run a report on houses that sold for $80,000, just for fun.
It’s a tax credit for everyone in the family, even the 4 year old.
Yes but what was the velocity of the $8,000 once it got into the fraudsters’ hands? That’s the important thing.
Shoot, Mugs could buy 2 now!
And yet many of you want this very same incompteny federal government to run the health care system. They can’t administer an $8,000 tax credit without losing $500M to fraud. But Obama and Co. will make health care more affordable and less prone to fraud.
Sounds reasonable.
Irrelevant. At the current rate of private insurance premium increases it won’t be long until only the elite have any kind of insurance.
That is ridiculous. It’s the same illogical argument as buy now or be priced out forever. If only the elite have insurance, how do you propose the big bad evil insurance companies will stay in business selling only to 1 or 2 % of the population?
Easy. By elite, we mean the healthy folks. Youn, in good shape, with a good job? GReat, have some insurance. Get sick? Have cancer? Ooohhhh, so sorry, no policy.
Maybe they can start medical credit programs for all the non-elite. Basically, just lifetime loans that the sheep can work to pay on for their life, like their homes.
No its not ridiculous. The costs continue to outpace inflation year after year. I know plenty of middle class folks who are either uninsured or underinsured. Many of the uninsured I know are folks who work for small companies that can no longer afford to offer any kind of coverage o their employees.
When I tell my underinsured friends that we have $20 copays for for office visits and a prescription plan they quick to remind me of “how lucky you are!”. And these are not deadbeats working in menial jobs. They just can’t afford $1000 month to insure their families. And some have pre-existing conditions, which makes it worse.
Sure, I have good insurance, and as others like to do I could shrug the plight of my friends off and rationalize it away: they’re losers, deadbeats, etc. But the truth is I came very close to their situation when I was laid off 4 months ago. I’ve been under the knife twice in my life: I had my appendix and more recently my gall bladder removed. I have learned from friends that even something like that in your past gets you blackballed when buying individual coverage.
Maybe they can start medical credit programs for all the non-elite. Basically, just lifetime loans that the sheep can work to pay on for their life, like their homes.
When the credit flowed more easily a few years ago companies like GE Capital provided this sort of service. Of course it was the working poor that got flim flammed into this.
Can any of you public option boosters name 5 drugs and or medical devices invented/developed by the government? How about 5 drugs that came out of Canada? England?
You take profit out of health care you take away innovation. You take away the next cancer drug. You take away the next generation of MRI.
I have a friend whose father had an operation that blew my mind when I heard of it. Basically a heart surgeon used a GPS like device to look at his heart real time and measure how much or how little the heart was producing fibers. Then again, real time, the surgeon would destroy the excess fibers being produced. I’m not medically inclined so my explanation is about as un-technical as it gets. But it’s incredible stuff that was unheard of 10 years ago. And the devices used were created by a for profit company which cost a ton I’m sure. I can guarantee you that when Obama Care is enacted that kind of innovation will be stopped in its tracks. There will be no incentive for anyone to come up with it if there is no profit.
Personally I will pay $1K a month for insurance and know that if I need it, the absolute best care is available for me as opposed to getting it for “free” (yea right) and having mediocre options.
You take profit out of health care you take away innovation. You take away the next cancer drug. You take away the next generation of MRI.
I recently listened to a story about a family who lost their health care, after faithfully paying their premiums, because the wife gave birth to twins and they didn’t fill out the requisite paperwork to add new members to the plan. Never mind the fact that the insurance company knew the woman was pregnant and covered the prenatal care and delivery.
I don’t want to stop the health care industry’s profits, I want to stop their abuses. Even if it takes a poorly-run government plan to give these asshats a reality check.
Link
In Colorado
$14K a year to Kaiser Permanente HMO for premiums (Individual Plan-2 healthy adults), co-pays,eye drops that fell out of their “formulary”. It’s breaking our backs. I’m looking for a fed job.
And yet many of you want this very same incompteny federal government to run the health care system
Congress has government-run healthcare.
I want that.
No they don’t. They have private insurance paid for by the govt. That is a far cry for govt run insurance which will lead to govt run everything. Try to see the difference.
Try to see the difference.
Thanks for the correction.
I don’t understand why Norges Bank’s interest rate increase would result in its value dropping relative to the dollar. Unless the exchange rate movement is a red herring.
Oct. 28, 2009, 9:06 a.m. EDT
Norway hikes interest rates
By Steve Goldstein, MarketWatch
LONDON (MarketWatch) — Norway’s central bank on Wednesday became the first of the major European institutions to hike interest rates since the credit crunch began.
The Norges Bank, joining counterparts in Australia and Israel, lifted rates by a quarter point, moving to 1.5% from 1.25%.
The rate hike was expected by economists as the central bank had considered lifting rates last month.
The increase has been so well flagged that the country’s currency has been losing ground this week against its major rivals, the euro and the dollar.
…
“I don’t understand why Norges bank interest rate increase would result in its value dropping relative to the dollar.”
“The increase has been so well flagged…”
There’s your answer: Buy on the rumor, sell on the news.
Holy cripes! See my response below, made before I saw yours.
Holy cripes squared!! Your thinking process parallels mine!
Seek help IMMEDIATELY!!!!!
Unfortunately it appears my health insurance won’t cover the necessary procedure or drugs.
The Norges Bank, joining counterparts in Australia and Israel, lifted rates by a quarter point, moving to 1.5% from 1.25%.
The rate hike was expected by economists as the central bank had considered lifting rates last month.
There’s your answer. Buy on the rumor, sell on the news. The Krone’s been kicking butt all year, up about 20% vs. the USD.
“I don’t understand …unless (it) is a red herring.”
From Norway’s smorgasbord of financial options, an overripe red herring rate increase might result in some leaving the party early.
Just sayin’.
Goldman will likely see the GDP today…
And will trade off it accordingly. They have plenty of their people running the government and someone will get them a peek today, so watch the trading patterns. If we sell off all day, expect a bad headline number tomorrow.
Any number negative with ALL this stimulus, and we crash…there will be immediate talk of another giant stimulus package to try to slow the free-fall.
Wall Street is expecting and demanding confirmation that the recession “is over”. So the numbers are too big to fail…
I was thinking that too. I’m looking for a late afternoon spike as confirmation that the DC stooges dutifully informed their GS masters that the preliminary GDP will be “up to expectations”.
I couldn’t agree more, edgewater and FBwants. The game is fixed. I wonder how many quarters in a row they’ll be able to jack up the GDP?
Son of a gun, I blew that one. GS even lowered their estimates for the GDP. Something’s afoot.
Wall Street is expecting and demanding confirmation that the recession “is over”.
Wait until they see the Christmas sales numbers. They will be a solid reminder that the recession is anything but “over”.
Sure, they’ll get a blip in GDP growth, fed by C4C and D4D, but we all know that all they did was cannibalize future sales.
There’s no way the number will be negative. We’ve been told for months that it will go back into positive territory in the 2nd quarter.
Absolutely. Then we will be told to get out there and spend, Spend, SPEND!
Problem is: J6P’s credit line has been cut and his income is less than last year’s. As other’s have predicted, we will see many retailers go out of business after Christmas, and those that survive will scale back, closing many stores along the way.
Hi Prime (+ others), late yesterday I saw your post about being surprised that the Treasury auction went as well as it did since the Fed had announced the Treasury bond purchase/QE will be easing soon and were looking for evidence that Fed had or had not participated in the auction. I believe the Fed does not directly purchase newly issued Treasury bonds during the initial issuance auction but only does so in the off-the-run secondary bond market, thus you will not find any evidence of Fed purchase in the initial bond auction itself.
A few days ago I posted how I was surprised to find TIPS being part of the Fed bond purchase effort and now I am more than a little worried about my TIPS position if the bond vigilantes decided to wake up and the CPI do not catch up or don’t nearly rise as much as interest rate. I found evidence of this in the late 70’s, and plotted a graph here (10 year bond rate vs. CPI):
http://tinyurl.com/yfk8t4n
I fear it is a possibility that TIPS holders will be greatly surprised in the lack of performance vs. hits from rising interest rates.
Is that the 10-year standard rate, or the 10-year TIPS rate? I didn’t think TIPS existed back in the 70’s; not sure though.
Hi packman, that’s the 10 years Treasury rate (standard).
Guess I’m missing something. If you’re concerned about TIPS vs. CPI, shouldn’t that be the comparison? Standard 10-year has a loose relationship with CPI; not an official one like TIPS is supposed to.
I would if I could find TIPS rate back that far, but I couldn’t thus I had to substitute the 10 years bond rate. My primary purpose was to see if interest rate rises in general, which hurts values of all bonds including TIPS, does CPI usually follows suite closely which makes TIPS OK to own in such an environment (after all it is suppose to insulate you from such an event). TIPS is only as good as the official CPI # says so and in a rising interest rate environment, if the CPI does not catch up to the rising interest rate, TIPS will not perform, right?
if the CPI does not catch up to the rising interest rate, TIPS will not perform, right?
Depends on what one’s view of “perform” is. If you gauge it vs. standard of living, then performance vs CPI is appropriate (if you assume CPI is accurate). if you gauge it vs. other investments, then maybe not so much. Keep in mind that other investments (including 10-year non-TIPS) have extra risks associated with them that TIPS do not, so if the risk equation changes, they will change relative to TIPS. E.g. during a financial meltdown CPI may go down, as will TIPS (or flat at least), whereas 10-year yields may go up, if there’s a perceived risk of default and/or high inflation in the future.
>E.g. during a financial meltdown CPI may go down, as will TIPS (or flat at least), whereas 10-year yields may go up, if there’s a perceived risk of default and/or high inflation in the future.
What I fear is the following scenario, however likely or unlikely:
1) Bond vigilantes forced interest rate up.
2) CPI does not follow suit, or not nearly as much.
Same end result as your example.
Coincidentally there is an article on WSJ on TIPS and how it is currently already richly priced:
“TIPS Buy Peace of Mind, But at a Steep Price
Inflation-protected US government bonds are generally a great core holding for ordinary investors. That’s especially true in uncertain times like these, when many worry that a spike in prices is just around the corner.
But here’s the secret of TIPS: You don’t buy them because you know where inflation is headed. You buy them so you don’t have to care.
Shares may boom or slump, inflation may rise or fall, but if you buy a long-term inflation-protected bond that pays 3% a year above inflation, that’s what you get.
TIPS have performed well this year—the sector is up around 9% since Jan. 1. But their good performance means that many of these bonds are now distressingly expensive. That’s especially true for the shorter-term bonds, which mature within the next five years or so. Today’s bond buyers may not realize it, but they are locking in poor investment returns. With prices at current levels, longer-term bonds, particularly those maturing in 20 years or more, look like better values.
The real yield on five-year TIPS has tumbled and is now below 1%. The seven-year is merely yielding 1.22%, mainly because bond market players are betting on short-term deflation. For regular investors, what matters is that these yields look weak.
What’s more, TIPS yields are based on the official inflation rate, which arguably understates true inflation for many people. The higher the “real” yield on your bonds, the greater your cushion.”
Big difference though between buying new vs. buying on the secondary market right?. Seems like since the whole purpose of buying TIPS is inflation protection you’d just buy them new and hold them to maturity, thus not worry about the secondary market at all.
So then for example if you were looking to buy TIPS right now, and you’re worried about the value of currently-sold secondary offerings dropping - then just buy primary offerings instead. The nature of TIPS is such that they will always provide positive yield - at something above CPI, do they not?
But then I’ve never bought TIPS, nor have I bought on the secondary market, so I may be missing something.
Example:
———–
- 2008 10-year TIPS goes for 3.0% yield, and say a $10,000 bond is thus valued at say $7,000, as sold in 2008.
- Due to inflation expectations, value goes up 9% in one year - now worth $7,630*
- Now you’re looking to buy some TIPS.
- Current 2009 10-year TIPS still going for 3.0% yield, same as last year.
Why would you buy a secondary-market 10-year bond, with 9 years to maturity, for $7,630, when you can get the same bond but with 10 years to maturity for $7,000? The only reason might be if you expected inflation to be really high in that 10th year (say 10%); however since you’re buying TIPS - that doesn’t matter - it’s inflation-indexed, so your bond would also yield 10+%.
Seems to me like TIPS’ secondary market prices wouldn’t vary at all vs. primary market prices, due to this nature. However apparently that’s not the case, since you say the sector is up 9% since January. Are you sure you’re not referring to flat-rate bonds and not TIPS?
If not - what am I missing?
* Meant to add a note for the asterisk - basically to the effect of my almost-last paragraph - why would TIPS bonds rise 9% in 10 months? Doesn’t make sense to me.
I think what is missing is that generally speaking, new issue auction bidding process makes on-the-run TIPS (or regular Treasury bond) prices to closely match that of the off-the-run prices, even though the off-the-run prices tend to be slightly less expensive / have higher yield due to difference in the frequency of trading. So it is not possible to buy newly issued TIPS at 3% real yield right now.
Here is the result from Monday’s TIPS auction, not cheap at all vs. regular bond:
NEW YORK, Oct 26 (Reuters) - Monday’s scramble for 5-year bonds that protect against inflation suggests that investors are uneasy about the potential of rising prices as the dollar weakens and government borrowing continues to surge.
Five-year breakevens grew to 1.61% on Monday from 1.57% late on Friday. This meant they were performing like regular five-year Treasuries. Five-year breakevens were at minus 0.22 percent at start of the year.
Thanks for the info.
Re: the discussion the other day about the Fed buying treasuries - it appears indeed they are just now finishing up their purchases - this week.
link
…
The Fed also ends its $300 billion Treasury-buying program this week, removing one level of support for the market. “People are anticipating a cheapening of the U.S. market” as the Fed’s buying ceases, Mr. Tucci said.
…
I also replied to Prime’s post yesterday about the status of QE, let’s hope the filter doesn’t block it. The Fed does not participate in on-the-run opening auction, only off-the-run secondary market, so you will not find any evidence of Fed purchase in the initial auction.
Thx - I didn’t know that actually.
Does the treasury post any details about who buys? (Other than the general foreign purchase info) I don’t see that info on the TD website at least.
Check NY Fed website for their policy on identification of purchasing parties:
http://tinyurl.com/bfd7vv
Will the end of the Fed’s T-buying program imply low yields and a stable currency will subsequently be balanced by lower stock prices?
Yep…
You’re a one man blogging show.
And a very happy Great Crash Anniversary Day to you, too.
MarketBeat
WSJ.com’s inside look at the markets
* Factory Inventories Still Falling
* Goldman Sachs Cuts GDP Estimate
* October 28, 2009, 9:50 AM ET
Financial Historian on ‘29: ‘Great Crash’ Vs. ‘Break in the Market’
By Matt Phillips
Today marks 80 years since the best known part of the 1929 stock market collapse, a two-day rout on Oct. 28 and Oct. 29 of that year. The equities crash brought a painful close to the period of unbridled financial optimism that was the 1920s.
…
This may rightfully belong with yesterday’s post by ahansen, but the article above notes that there was a giant dead cat bounce after the 1929 stock market collapse which was quite similar to the green shoots stock market rally we experienced from March 2009 up to the recent past.
Today’s offering comes from Richard Sylla, Henry Kaufman Professor of the History of Financial Institutions and Markets at New York University:
‘Because their teachers and their history books said so, most people know that the Great Crash of 1929 caused the Great Depression of the early 1930s. I am not one of these people.
What I know is that the Dow Jones Industrial Average closed at 306 the day before Black Thursday, October 24, 1929, and at 199 on November 13, three weeks later. That drop of 35 percent was the Great Crash. I also know that on April 17, 1930, the day before Good Friday, the Dow closed at 294, or 96 percent of its level before Black Thursday. In other words, almost all of the decline of the crash proper had been undone by a recovery of 48 percent in the Dow between Halloween ‘29 and Easter ‘30. Most people don’t know that, or if they ever did they forgot it.
On Good Friday ‘30, the New York Times referred not to the Great Crash, but to “the break in the market last Fall.” The Times that day also noted that the day before, April 17, “average prices worked higher and a few outstanding issues shot up smartly to new high prices for the year to date,” and that “British interests were investing heavily in these issues.”’
…
Late yesterday Mr. Eddie posted the following:
“And when I fly back and forth to NY to visit said Megabank without exception my flights are 100% full. “But that’s because the airlines cut the number of flights” reply the HBB crew members. Wrong. There is a flight to LGA every hour on my airline. There is a flight to Newark every 2 hours. Just like there always has been, and on the same type of plane, a 757. Same number of flights and every single one is full.
And in NYC - home of the crumbling Wall St economy - try finding a hotel for under $300 a night in the financial district. Hell, on Manhattan for that matter. Not happening kids.”
Just by spending 5 minutes on hotels dot com and hotwire dot com found the following Manhattan hotel rooms for tonight (10/28):
Central Park Area Hotel
Midtown West / East
$129 per night
Thirty Thirty Hotel New York
Flatiron / Union Square / New York
$244 per night
Hotel Pennsylvania
Madison Square Garden / New York
$254 per night
Plenty of hotels for < $300 per night. I think you should do more research as you maybe wasting money on over priced hotel rooms.
Maybe I’m wrong, but none of those hotels you listed are “in the financial district”, right?
Yes, but he also said none can be found in the entire borough of Manhattan:
“Hell, on Manhattan for that matter. Not happening kids.”
-1 for my reading comprehension skills.
Eddie’s too busy flying to NYC and conducting business with Megabank, Inc to have time to do any fact-finding research.
Heck if he wanted to come over here in the UGH borough of Queens, just 6 stops on the 7 from grand central or a $10-15 cab to midtown There is a LaQuinta that was advertising $99 on weekends…
LaQuinta wouldn’t do for our Eddie, now would it?
Check out the reader reviews for the $254 a night Hotel Pennsylvania on tripadvisor:
Terrible: 752
Poor: 387
Average: 605
Very Good: 375
Excellent: 99
Here’s a travel tip from someone who travels a lot: when the ratio of terrible/poor to very good/excellent is 10:4, you stay away.
Here is one rated 3 stars for $221 I found on Priceline (Hotel Penn was rated a 2 star).
Should I go ahead and book it for you?
Park South Hotel - $221Per Night
3-Star
3 star hotels offer a higher level of guest service with several amenities. Guestrooms and public spaces place a greater emphasis on style and generally offer such conveniences as hairdryers, iron and board, and a fitness room. On-site dining is offered but may not be available for all three meals. New York, NY (Midtown East - Grand Central) .
85% Recommended on TripAdvisor:
85% Recommend
4.0 of 5 stars 325 reviews
Excellent 93
Very good 166
Average 32
Poor 18
Terrible 16
Eddie, in all seriousness, you should hire me to book your travel / vacations and pay me commissions based on the $$$ I can save you. Seriously, I would be rich.
Wow!! Hairdryers and an iron board? Where do I sign up for that level of luxury. OK you’ve made your point, you can find a dump for $220. Congrats.
We stay at Hotel Pennsylvania every two years for the 2600 magazine HOPE conference. It’s a dump but it suits the conference well! Nothing like a multimode fiber cable hanging 18 stories from the Penn rooftop conf room to the 2nd floor space that used to be Sports Authority. It carries the internets and live video streams for the talks. Good times. Will be there summer 2010.
>you can find a dump for $220
How can it be a dump when it is rated 3 stars and Excellent + Very good reviews outnumbers Poor + Terrible reviews by 259 to 34, using your own criteria you stated just one post above to judge if a hotel is a good one or a dump?
Or are you one of those persons who believes the higher the price you pay for something is the first and only indicator you need for what you are getting, regardless of the actual quality of what you are buying? Do you apply the same rule-of-thumb to your real estate transaction is well? If yes, let me know because my sister’s house is for sale at $720K but I will ask her to jack up the price to a cool and even $1m just for you, so that way you know for sure you got a great house.
It’s a no name hotel on 28th st in Chelsea (looks like from the address). Maybe that doesn’t constitute dump to you, it does for me. Just like a driving a 12 year old Hyundai screams practical a to b transportation for some, yet screams econo s**tbox to me. Different strokes I guess.
Regardless, it’s $220 a night for at best a budget class hotel. Meaning there are people who are paying $220 a night to be just this side of Motel 6. Not exactly the great depression now is it?
I never said anything about a great depression, did I? I was just trying to prove to you that a decent hotel can be found in Manhattan for < $300 a night, which you said “not going to happen”. Apparently I was wrong about that because anything less than 4 stars is a dump to you, but I guess you are in a whole class by yourself there, since you only stay in 4/5 star hotels.
Someday I hope to be just like you and stop being such a penny-pinching peasant.
“Not exactly the great depression now is it?”
Eddie, you need to read more about the Great Depression. 75% of people were employed and going about their lives in a relatively normal fashion—even during the Great Depression.
People were even buying luxury items and staying in higher-priced hotels; they were just doing it a bit less conspicuously than usual.
You should not assume that _everyone_ was standing in the bread-lines during GD-I.
Really? Hmmm. Here I was thinking 100% of the people were in bread lines from 1929 to 1939. Thanks for the history lesson.
Luxury goods actually did fall off a cliff during the GD:
Sales of the Cadillac 12 in 1930: 5725
Sales in 1933: 952
Sales in 1937: 474
When Cadillac or Lexus or BMW sales fall 80-90% from 2007 levels, then you can start talking about depressions. Until then the notion is absurd that we are anywhere close to a depression type situation.
You should not assume that _everyone_ was standing in the bread-lines during GD-I.
In 1937, my then 21-year-old dad was driving a used ‘34 convertible Ford he had bought while working at a cement plant and driving to Vegas for fun weekends. Of course, he was living with his parents, but still… far from any bread lines.
I got the impression that GD-1 harmed a lot more people on the east coast and midwest.
OK I should have qualified that with “a hotel that isn’t a dump for under $300″.
Hotel Pennsylvania?!?!? Good lord man, I wouldn’t let my dog stay there. And still they charge $254.
Here are some breaking news on airlines which you claimed was packed based on your observations that the economy is booming thus airlines are packed with passengers. Apparently these guys didn’t get the memo (I do believe the air traffic has picked up vs. awful last quarter of 2008, but no where nearly as good as you say it is):
Oct. 28 (Reuters) - American Airlines parent AMR Corp (AMR.N) will eliminate up to 700 jobs as it downsizes its maintenance and engineering operations, the company said on Wednesday in a letter to employees.
Oct. 28 (Bloomberg) — US Airways Group Inc., the smallest full-fare U.S. airline, will cut 1,000 jobs as it drops 44 percent of daily flights from Las Vegas and ends Philadelphia service to five European cities to help stem losses.
Apparently these guys didn’t get the memo (I do believe the air traffic has picked up vs. awful last quarter of 2008, but no where nearly as good as you say it is):
But they sure took their bonuses, YOY, YOY.
Again, someone pointed out that flts were cut,eddie thinks not, but it is fact. Just not the ones he is on. Those are the business routes where some biz person might pay a higher last minute cost.
And air traffic has “picked up”?, well when their fares are so cheap, it would seem that way, but as you guys are so good, do the math. It doesn’t pencil out the same way.
Ok you want to play press release games which mean absolutely nothing in the bis scheme of things? Fine with me.
ATLANTA — Improvements it has made in on-time performance helped Alaska Air Group post a profit for the third quarter. The Seattle-based operator of Alaska Airlines and Horizon Air said Thursday it recorded an $87.6 million third-quarter profit, or $2.46 a share, compared to a net loss of $86.5 million, or $2.40 a share, a year ago.
Or how about
NEW YORK - JetBlue earned $15 million, or 5 cents per share, in the third quarter, compared with a loss of $8 million, or 3 cents per share a year ago. The total number of paying passengers on JetBlue flights rose 6.3 percent
And then finally for a little international flavor
BEIJING (AP) — China’s three main state-owned airlines said Wednesday third-quarter profits surged as an economic recovery helped to boost travel. China Southern Airlines, the country’s biggest carrier by passenger numbers, said profit for the quarter ending Sept. 30 was 284 million yuan ($41.6 million), or 0.04 yuan (0.5 U.S. cents) per share.
Still don’t know whereof you speak.
Just those 2, and they were the only ones that did NOT take bonuses. And they generally treat all their employees well. Overall? They don’t keep making bad business decisions, buying things that aren’t necessary, nor do they take bonuses during this economy.
If you remember Q3 of 2008 the airlines suffered due to high oil prices so this quarter the comparison from a year ago is much easier.
Jul-08 $126.16
Aug-08 $108.46
Sep-08 $96.13
Also I don’t doubt for a minute things are going much better in China vs. the rest of the world either, so no argument from me on these press releases.
That proves my point the economic recovery is uneven at best, being supported by trillions of dollars put on the Fed Reserve balance sheet, not booming as you say it is.
Maybe the word booming is a stretch, point taken. But compared to the non-stop doom and gloom exhibited here it is.
On a scale of 0-10 it’s a -12 in here and it’s a +6 for me. Comparatively speaking it is booming.
To me booming is a 9 or 10. A 6, slightly better than average. I don’t argue it can be a 6 right now in terms of GDP growth for Q3, based on the Fed balance sheet ramp up alone. But just wait for the negative consequences of such actions to catch up later on, and believe it me it will (so far you only seen the positive reactions mostly).
For me, booming implies strong growth. The airlines are cutting flights and cutting headcount.
Even your “+6″ suggests growth. The reality appears to be contraction, even if you are not seeing it on the flights that you take.
Warren Buffet always says invest in what you know. What I know is over the past 6 months, I can’t remember a flight i’ve taken that wasn’t full. The last flight I took home from NY was on Monday. I got to the airport a little early and wanted to get on an earlier flight. Even though there is a flight on the hour, every hour starting at 6:00am, there was not 1 seat I could get on for the next flight. Not only that, I looked on the board and there were 36 people on the stand-by list.
You can throw out all the press releases you want about layoffs. When I see 36 stand-bys on a flight where there is hourly service, to me that says people are flying. Might also indicate why Delta is up about 100% YOY. But what do I know, I only fly 5 or 6 times a month all over the country. I’m sure reading press releases gives a much better first hand look at the airline business.
Well if you want to invest in an airline stock based on what you are seeing in the airport alone, that’s all fine by me. For me I would rather look at the company and the industry as a whole, their current and past valuations, their balance sheet and their cash flow to determine if a stock is a good investment or not.
36 stand-bys
Those 36 weren’t just show ups, they were booked on later flights and those later flights went out much lighter.
If there is a seat, they try to go early. Used to be people got charged to change their tickets. Now airlines cater to anyone and everyone with no questions.
I agree about the Pennsylvania being a dump (at any price).
I have been on this board since 2005, at first watching our opinions and ideas ridiculed, then slowly seeing our predictions [which everyone dismissed] become realities. I remember many of these quotes. It is very gratifying to know our common sense has been validated. BTW I am still renting in Florida after selling my NYC coop apt in 2006. My retirement and move was based on knowledge gained from reading the Bubble Blog. I am beginning to look to buy now [mostly at 40-50% off foreclosures] and will probably purchased in the spring of next year. The one thing about the bubble that did suprise me is how slow everything moved. Who says you can’t time the RE market??? Gordo
Great work, Gordo!
The HBB has been an extremely valuable resource the last few years; for those who could act upon the info available.
We should help Ben support this blog with some $$$ whenever we can, IMHO!
When buying at 50% off, one can still loose 100%. Amazing isn’t it?
Unless we reach Armageddon, Gordo can’t lose (not “loose”) 100% buying a house with cash. And if we reach Armageddon, we’ll all lose 100% of everything.
And if we reach Armageddon, we’ll all lose 100% of everything.
Not all Amageddon’s are created equal. During geopolitical firestorms (e.g. revolutions - military or otherwise), not everyone dies of course. Property is often confiscated - but not usually all property.
If I could spell/type well, I wouldn’t be an engineer. I do comprehend the difference between loose and lose. Loose the dogs, lose the dame.
Gordo didn’t say he was paying cash, did he? In case you are correct, I agree that houses can never go to Zero! Well, there is Detroit.
Loosen the dogs.
The looser the better.
Loosen the dogs.
Who loosed the dogs out?
“The one thing about the bubble that did suprise me is how slow everything moved.”
In light of what we now know about the lengths to which the PTB are willing to go in order to prop up real estate bubbles, the slow pace of the correction is not whatsoever surprising.
Gordo, I wish you a long and productive retirement in Florida. I bet you’ll have a lot of fun with the money you saved, even after paying cash for a nice house.
New home sales unexpectedly tumble in SeptemberOctober 28, 2009 10:06 AM ET
All Thomson Reuters newsWASHINGTON (Reuters) - Sales of newly built U.S. single-family homes unexpectedly tumbled 3.6 percent in September in their first drop since March, but the inventory of new homes available at the end of the month shrank to the smallest in 27 years, government data showed on Wednesday.
September single-family home sales totaled 402,000 units at an annual pace. Analysts polled by Reuters had expected new home sales to rise to a 440,000 unit annual pace from a revised 417,000 units in August, which was originally reported as 429,000 units.
The median sales price rose in September to $204,800 from $199,900, while the average sales price rose to $282,600 from $256,500
And note how in many articles the SSM/MSM is working hard to spin this decline as justification for the extension of the first time buyer credit.
Apparently, since the first time buyer program won’t expire until the end of November, it is not working very well, as evidenced by the decline in new home purchases. Perhaps this is due to the effect of $8K in free money to buyers earlier this year in pushing up home prices out of affordability range for new buyer incomes?
Since the program is currently still in effect, it is pretty hard to point to the current drop in new home sales as evidence of the terrible things that would happen if the program is not renewed.
Didn’t the NAR just tell us that sales went way up?
Seasonally adjusted, numbers to be revised, & etc.
I’m watching CNBC (I know, I know) spinning the housing numbers. I get a kick out of the housing expert, Diana Olick. She continues to be bearish about real estate, and is pretty well informed. Whenever she reports some bad RE news, the other CNBC commentators are silenced. Just now someone asked her whether commercial real estate is “the next shoe to drop.” She answered, “what do you mean by the ‘next shoe to drop’ - it’s already dropping.” Then she described how the Mortgage Bankers Association has had to put their own building on the market that they just moved into a year and a half ago. A silent pause afterward; no comments. Then luckily there was “breaking news” about Madoff stuff.
I am shocked that CNBC hasn’t fired Diana O yet for telling the truth. How do you like that cheerleading mindless turd Dennis Kneale? What a joke!
My dream is to put on boxing gloves and knock Dennis Kneale OUT. He’s such a fat turd that it wouldn’t be difficult, but the guy needs a little bit of sensibility and understanding knocked into him.
It’s the chocolate ration all over again.
No way.
This has gone way to far. I already woke with a bad dream and now NOW you tell me chocolate is going to be rationed.
Rushing out to stockpile now.( ala Oly-note fear and trembling in my post)
As predicted here!:
Oct. 28 (Bloomberg) — Sales of new U.S. homes unexpectedly fell in September, a sign the housing recovery may lose momentum after a government tax credit expires.
Sales decreased 3.6 percent to a 402,000 annual pace, lower than the median forecast of economists surveyed by Bloomberg News, figures from the Commerce Department showed today in Washington. The median price of a new home dropped 9.1 percent from September 2008.
the ubiquitous “unexpectedly” line present and accounted for
http://www.bloomberg.com/apps/news?pid=20601087&sid=aqefq0RL5oW8
Now it is all the more essential to renew the
first-timehome buyer tax credit, as otherwise, the recovery may stumble…I guess they’ve don’t understand that you can’t push a string or herd cats.
It won’t make much of a difference over time. Like the auto sales, they’ve sucked a lot of buyers forward. In addition, people are shocked when they learn about the new comps. There is no clear incentive to hold on to yesteryear’s overpriced debt-traps.
We looked at a neighborhood where on of my wife’s coworkers lives. She grew extremely bitter after learning about the new comps and how much lower we are willing to pay. She said the tax credit is allowing a lot of riffraff into her once exclusive neighborhood. Some people paid near half a million to live here, she argued. How can they sell them for so much less?
Another coworker overheard the conversation and immediately offered my wife her home for sale. She didn’t want to make any money on it. She just wanted to get back what she paid in 2006. ROTFLMAO!!
“She said the tax credit is allowing a lot of riffraff into her once exclusive neighborhood.”
“Beware… of the riffraff !”
They probably rented and they’re the only ones that HAVE any money now.
lol
I especially like how this co-worker assumed that banks never underwrote any half-million dollar loans to “riffraf”.
allowing a lot of riffraff into her once exclusive neighborhood.”
One as.shat who owns here, snobbishly told my neighbor, “he doesn’t like renters” sniff sniff.
After many yrs of renting-a LL’s dream tenant, they moved. But we are still here. As s
Thanks, for the silver lining, MrktMaven. I was so busy concentrating on the tax credit propping up prices that I didn’t think about the fact that prices continue to decrease.
Hello everyone…
To those of you concerned,
Those helicopter accidents here in afghanistan were not my unit. Thanks for all of you who have asked me and sent me well wishes. We are all fine here, but please pray for those lost…..
Stpn2:
I’m glad you got back to us on that. I worry every time I hear this type of news but of course no loss is good. I will keep those lost and their families in my thoughts today.
Glad to see you’re safe. Can we send normal chocolate now? Or hot cocoa?
I don’t think they put cocoa in the singles like they do for koolaid. A friend and I sent some International Coffee mocha mix, plus some funnels to get the powder into narrow-mouth bottles. Not sure if the boyz liked it.
gladness seconded.
prayers always for your safety.
They will always like hot cocoa….
Step, DD’s school is putting together a care package. Besides Kool-Ade, can you give me a few other items soliders like to see in the mail? TIA
M & M’s…Oreo’s (double stuff). Socks. Soap. Deodorant.
Thanks….
Recession driving boom at local community colleges:
NYT
BOSTON — Winston Chin hustles on Tuesdays from his eight-hour shift as a lab technician to his writing class at Bunker Hill Community College, a requirement for the associate’s degree he is seeking in hopes of a better job.
He is a typical part-time student, with one exception. His class runs from 11:45 p.m. to 2:30 a.m., the consequence of an unprecedented enrollment spike that has Bunker Hill scrambling to accommodate hundreds of newcomers. In the dead of night, he and his classmates dissect Walt Whitman poems and learn the finer points of essay writing, fueled by unlimited coffee, cookies and an instructor who does push-ups beforehand to stay lively.
Similar booms have forced many of the nation’s 1,200 community colleges to add makeshift parking lots, rent extra space and keep thousands of students on waiting lists this fall. While Bunker Hill offers two midnight classes — the other is Psychology 101 — and Clackamas Community College in Oregon holds welding classes until 2 a.m., others have added classes as early as 6 a.m. to make room for the jobless and others whom the recession has nudged back to school.
The deluge also includes an unusually large number of recent high school graduates, diverted from more expensive four-year colleges by the economic downturn.
Virtually every state is dealing with enrollment booms at community colleges, the American Association of Community Colleges says, with some in California reporting increases of 35 percent. The demand comes amid deep cuts to higher-education budgets, but also at a hopeful time for community colleges: President Obama recently announced a $12 billion plan to increase the number of community college graduates by five million by 2020.
I have always been down on community colleges. Unless you are trying to get into a trade, it’s a waste of time. But anyone trying to better themselves gets kudos to me. We are going to have to reinvent this country and get back to creating things. You can train to become a plumber or electrician and probably make six figures in some area’s.
When I retire from the military, I was thinking about taking a carpenter’s course or two. Me and a hammer never got along
, and if I buy a house, it might come in handy.
I have always been down on community colleges. Unless you are trying to get into a trade, it’s a waste of time.
Many people have used this as an economical step to a 4 yr, or even while they raised a family and worked 1 or more jobs. The community college has long been a vital part of many communities. Not everyone gets into college with the help of being a minority or wealthy/super poor-grades.
One of my friends went to a two community college because she didn’t have much money. She got a two year Associate RN Degree in Nursing. She then got into one of the old 2 year CRNA anesthesia schools. She kept working and taking required college courses and later applied to Medical School.
She’s one fantastic MD. Nobody has EVER thought to ask her where she attended community college.
They merely say …”Thank you Doctor”
Oh…and some people DO say “Thank you Colonel”, because she’s also a Lt. Col(0-5) in the USAR.
Community colleges put out some of the better citizens in all our communities. They have a vested interest in said community.
Thank you Col.
My sister (back in the day) was waitlisted at her #1 college of choice. She convinced them, however, to guarantee her a spot for the January semester. She went to a community college for one semester and knocked a bunch of “101″ courses off her list at a fraction of the cost.
knocked a bunch of “101″ courses off her list at a fraction of the cost.
see.
“and if I buy a house, it might come in handy.”
+1000 on that one.
I went into architecture to honor my ‘touchy - feely’ side (it certainly wasn’t for the money) but I have the greatest respect for the honest building trades. (note that I said “honest”, most developers dont count)
I also know which end of the hammer to hold and more or less built the house I currently live in. Skills like that are invaluable and I know from experience that I do better work than 75% of the wood butchers and paint slingers out there.
Plus I’m just f-ing cheap
I have been working almost forty years now after getting two associate degrees from North Seattle Community College. I did have some preliminary training in the USN while serving four years as an avionics technician. I have never been unemployed and even now there is almost no danger that I will become unemployed. Thank you NSCC !
Congrats for being such a good citizen/student.
Continued blessings.
I went to a state college and I know several students went to community college at the same time to save money.
Are you wealthy but homeless? Lucky you.
For well-off folks who don’t own a home now and don’t mind renting for a while, this is a something of a golden era. That’s because renting–particularly at the high end–has become such a startlingly good deal in some cities.
There’s no telling how long this period will last. But sellers of fancy homes, while refusing to drop their asking prices, seem happy to lease them out for a year or two on the cheap. It was true earlier this year, but it’s even more so now, thanks to some hefty rent reductions.
Falling rents at the high end reflect the overall trend among landlords across the board. Green Street Advisors, a real estate research firm in Newport Beach, Calif., analyzed data from two firms that follow rents, New York-based REIS and Dallas-based Axiometrics. Green Street calculates that the apartment companies it follows, which include AvalonBay Communities ( AVBPRH - news - people ), Equity Residential ( EQR - news - people ), Essex Property Trust ( ESS - news - people ) and others, will experience 13% to 15% drops in their rental operating income (that’s rent minus property taxes, fix-up costs and other routine expenses) on average during this recession.
We’ve been looking at preliminary data we’ve assembled as part of a new Forbes index of luxury rental homes. In November, we’ll debut the index, which will cover fancy rental homes in 10 cities. But our early analysis of four of the cities–Chicago, Atlanta, Houston and Boston–shows just how good life can be for wealthy renters right now. (Obviously, the opposite is true for landlords who own high-end homes.) That’s because, compared to what the owners are willing to accept for purchase bids, rents have dropped quite a bit
(Excerpt) Read more at forbes.com …
The number of Washington area homeowners in foreclosure has more that doubled in the past year, according to a report to be released Wednesday that shows the problem remains most acute in a few counties and could get worse as more borrowers fall behind on their payments.
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/27/AR2009102703940.html?hpid=newswell
Yay, we’re fashionably late! *opens a bottle of wine*
Unfortunately, prices for houses in any DC area where someone might ACTUALLY want to live are still sky high. I’ll start chuckling with self satisfied shadenfreude when prices in the Logan Circle area start falling below the half million mark.
Andres Duque thought he got a real steal when he paid $125,000 for his Little Haiti condo. But four years later, similar units are selling for $35,000 and even less.
And so, faced with the prospect of being underwater on his mortgage — owing more than the unit is worth — for the next 20 years, Duque, 33, made what seemed to him like a rational choice: to cut and run.
He stopped paying the mortgage….
http://www.miamiherald.com/251/story/1298873.html
Good news for Birmingham!
Birmingham foreclosures up 336% in 3Q.
Birmingham Business Journal
The Birmingham metropolitan area’s third quarter foreclosure rate jumped 336 percent over the same time in 2008, according to industry data.
With a total of 2,622 homes in foreclosure in the third quarter of 2009, Birmingham had the worst rate among Alabama’s largest metros and ranked 83rd nationally, according to RealtyTrac’s latest foreclosure market report released Wednesday.
Mobile ranked 99th in RealtyTrac’s standings with 791 homes in foreclosure. Its year-over-year foreclosure rate was up 82 percent for the quarter ended Sept. 30.
Montgomery’s third quarter 2009 foreclosure rate increased 115 percent compared to the same span in 2008. However, it dropped 27 percent compared to the second quarter of 2009, the best in the state. Overall, Montgomery ranked 144th nationally in third quarter.
Birmingham’s third quarter foreclosure rate fell 1.35 percent from the second quarter of 2009 while Mobile’s fell 10 percent.
Huntsville’s rate grew 108 percent in year-over-year third quarter comparisons. The rate fell 22 percent compared to the second quarter of 2009. Huntsville ranked 155th nationally.
Tuscaloosa ranked 190th nationally with its year-over-year third quarter rate increasing 128 percent.
Las Vegas had the nation’s worst foreclosure rate in the third quarter of 2009 with 40, 408 homes in foreclosure, a 53 percent increase over the previous third quarter. Utica, N.Y., led the nation with the least amount of foreclosures with only 25 homes in foreclosure and a decline from the same time last year of 3.8 percent.
* St. Louis foreclosures increase 32%
* Hawaii foreclosures up 63% in September
* Jacksonville foreclosures up 64% in 3Q
* MN foreclosures drop 11 percent in August
* Honolulu 133rd for foreclosures in Q3
40, 408 homes in foreclosure,
The 40, was in the line above the 408..is that really 40,408? foreclosure homes in 3rd q? That seems really high.
Census: ‘Brain gains’ for high-tech cities
AP
who moved from different counties within the same state’ text per DC request; Net migration …
By HOPE YEN, Associated Press Writer Hope Yen, Associated Press Writer – Wed Oct 28, 8:27 am ET
WASHINGTON – Many college graduates are passing up industrial centers and former hotspots in the Southwest, which have been hit hard by the recession, in favor of life in urban, high-tech meccas. Their moves are fueling a resurgence of brainiacs in parts of California, North Carolina and Texas.
Census data released Tuesday offer the first detailed look at U.S. migration data, broken down by education and income, since the recession began in late 2007.
The data covering 2006-2008 show that Austin, Texas, Portland, Ore., Charlotte and Raleigh, both in North Carolina, and Seattle saw large jumps in residents with at least a college degree. Each offers the promise of specialized tech jobs and hip lifestyles.
San Francisco, with its burgeoning biotech industry, saw significant increases in residents with advanced-level graduate degrees. Houston, home to NASA and several medical centers, saw gains in more educated residents but also those with only a high-school degree.
In contrast, metropolitan areas with high rates of foreclosures, less tech-based economies or increasing unemployment saw declines or slower rates of growth in residents with a college degree or higher. They included Los Angeles, Atlanta, Orlando, Fla., as well as New Orleans, Detroit and Cleveland.
“During this economic downturn, young, educated professionals are heading for the high-tech ‘cool’ metros rather than the fast growing upstarts of the mid-decade,” said William Frey, a demographer at Brookings Institution, who analyzed the data. “The investment in knowledge industries and young professional amenities in places like Austin, Raleigh and Seattle is now paying off.”
The United States is becoming increasingly educated. More than one in four U.S. residents now has a college degree, with many recent graduates looking for jobs in a depressed economy. States and cities are also striving to boost their tax bases and stay competitive by attracting highly educated and higher income residents.
According to the data, cities with higher levels of education did not always translate to the highest incomes.
Austin, Seattle and Charlotte all saw large gains in the number of residents who earned an income of $65,000 a year or more. But they were outpaced by places such as Bakersfield, Calif., and Sun Belt regions such as Phoenix and Las Vegas, which had larger jumps in richer residents.
Frey attributed the differences to younger college graduates in the high-tech areas who are moving up the career ladder and have not yet reached their peak levels of income.
Among other findings:
_The top five metro areas with the largest gains in residents earning $65,000 and more were Phoenix, Riverside, Calif., Dallas, Las Vegas and Houston.
_Median home values ranged from $68,200 in Odessa, Texas, to $739,700 in San Jose, Calif., the only metro area with a median home value above $700,000. Six other areas, all in California, have median home values in excess of $600,000: Santa Cruz, San Francisco, Salinas, Napa, Santa Barbara and Oxnard.
_The percent of foreign-born residents ranged from 0.9 percent in Altoona, Pa., to 36.9 percent in the Miami-Fort Lauderdale metro area.
The data comes from the American Community Survey. The information was collected over three years, from 2006 through 2008, providing a snapshot of every U.S. community with at least 20,000 residents.
“During this economic downturn, young, educated professionals are heading for the high-tech ‘cool’ metros rather than the fast growing upstarts of the mid-decade,”
The world is topsy turvy when Raleigh is now considered cool.
“Austin, Seattle and Charlotte all saw large gains in the number of residents who earned an income of $65,000 a year or more. But they were outpaced by places such as Bakersfield, Calif., and Sun Belt regions such as Phoenix and Las Vegas, which had larger jumps in richer residents.”
$65,000 a year considered rich? That’s decent money I suppose for Raleigh or Charlotte. But rich?
Here in Norfolk/Virginia Beach area Raleigh looks AWESOME. Tech companies, lower costs for housing, basements, etc. A $200K Raleigh home would run you $400K+ in our area it seems. Most tech jobs are gov’t contractors and there you get stuck with highly-educated (college degreed) boring people that often don’t have good skills.
Whenever I look at homes locally I want to cry then start looking at Raleigh and NoVA/DC.
…hip lifestyles…young professional amenities…high-tech ‘cool’ metros
Suggestion for Ms. Yen : add “green,” “bicycle-friendly,” and “new urban”; get a quote from Richard Florida; add 7 more cities–
and you can do a “10 Most Amenable Cities for Young Hip Professionals” article for FORBES magazine. It’s about time for another one.
Thats surprising salaries would be low for new grads what with the hi-tech shortage and Rep Gifford introducing a bill to triple the H1-B visas.
$65K in Raleigh starting matches or often beats what people get here in Southeastern Virginia, and housing costs twice as much here. The only reason I can figure is that lenders love to give loans to military people (I think they can dock their pay or something). Housing allowances mess our market up something fierce.
“Six other areas, all in California, have median home values in excess of $600,000: Santa Cruz, San Francisco, Salinas, Napa, Santa Barbara and Oxnard.”
Is that a typo with Oxnard? That’s the biggest sh!thole on the southern California coast. I could see neighboring Ventura or Camarillo being higher, but Oxnard?!
Foreclosure plague: It’s spreading
Las Vegas always wins the title for worst foreclosure rate in the country. But these 5 cities have the fastest-growing foreclosure rates. And they’re not the usual suspects.
Biggest increase: McAllen, Texas
Foreclosure rate: One in 251 homes
Percent increase: 1,197%
The foreclosure plague rocked McAllen, Texas, during the third quarter. In fact, it showed the fastest growth rate of any city in the country compared to the second quarter.
Located in one of the poorest sections of the country — in the Rio Grande Valley, five hours south of San Antonio — it is a classic border town. It relies heavily on trade with Mexico, with 35% of its retail market coming from Mexican nationals coming to shop and dine, and unemployment is high. The area’s rate now stands at 11.4%, compared with Texas’ overall 8.2%.
Still, until this quarter, it had counted a low foreclosure rate among its assets. In fact, that helped propel the city to No. 26 on CNNMoney’s Best Places to Launch list in 2009.
Dick Henry, president of Greater McAllen Association of Realtors, said the area didn’t start to feel the housing crunch until late 2008. The wave crested the city slowly through the first part of 2009, with July actually being a strong month. “But boy, August and September went straight to hell,” Henry explained.
He worries, too, that things will get worse because most of the region’s loans are ARMs.
“People get sucked into the lower money down, and then they can’t afford their homes once rates are jacked up,” Henry said. “I now see 110 pages of foreclosure listings per month, compared to 45 pages in the first quarter. I don’t see that slowing down anytime soon.”
McAllen is the town that was featured in Atul Gawande’s June 1 article in the New Yorker - one of the most expensive health care markets in the country.
If anyone missed it, after the w-s: newyorker.com/reporting/2009/06/01/090601fa_fact_gawande
The author also did a good interview with Terry Gross on Fresh Air.
If You’re Going to Buy a House, Do it Now
By Martin Hutchinson
Contributing Editor
Money Morning
http://www.moneymorning.com/2009/10/27/housing-market-bottom-2/
(The Mess That Greenspan Made -blog link)
Gag,
They really have pulled the fire pump truck up to the kool-aid reservoir and are hosing down everyone in sight.
That’s because they also have the gasoline tanker backed up to the fire.
the itulip folks have this posted on their website…pretty darn good if you ask me.
http://www.youtube.com/watch?v=w5EFEQ9aY6o&feature=player_embedded#
Here’s a good laugh.
Most stressful jobs that pay the least. Take a look at what is in the top five, at #4? LOL
http://tinyurl.com/yl8a8qq
As a former reporter, I’d agree with that. Of course when I was doing it I was also taking photos, laying out pages, writing obits, etc. Oh, and I made about $17,000. And that was only 10 years ago.
Most reporters work at small community papers and would be lucky to make $25,000, let alone $32,000. Daily deadlines can be a pain, especially in a small town where your are required to write 3 or 4 stories a day, attend a council meeting and call the cops every few hours to make sure you didn’t miss anything crime-wise.
what, you didn’t have a scanner?
they all seem to be somewhere between 60 - 70%. i am sure 60 - 70% of all americans think their job is stressful….just like everyone thinks they are underpaid.
Testing 1, 2, testing 1, 2…
Come in good buddy. 10 4
Professional Auction Staff Wanted (Upper East Side)
Date: 2009-10-28, 11:56AM EDT
Attention ALL APPLICANTS:
Auctioneers, ring men, Licensed Real Estate sales persons, accomplished promoters, greeters, block clerks and exceptional employees…
We are looking for top quality, talented individuals to staff Manhattan Auctions.
We are a licensed and bonded eco friendly auctioneering company based in Manhattan, NY.
We have a variety of available positions. If you are bright, consistent, stable and teachable please respond with your qualifications and interests.
NO ATTACHMENTS OR PERSONAL PROBLEMS PLEASE!
Thank you for contacting Manhattan Auctions about mutual business opportunities.Please reduce, reuse, REPEAT and recycle our free message.
Sincerely,
CEO Manhattan Auctions
* Compensation: Dependent upon job type and sales volume
What’s a ring man?
Those GQ looking tuxedoed guys running up and down the aisle on crack urging you not to throw ahhhhhway your money on rent…..a bid baby ……bid bid bid!
Raise that paddle HIGH…come on you can reach for a home.
“We are a licensed and bonded eco friendly auctioneering company based in Manhattan, NY”.
“eco” friendly. LOL! What they don’t breath or break wind?
If you are bright, consistent, stable and teachable please respond with your qualifications and interests.
Well that leaves out a lot of folks,
NO ATTACHMENTS OR PERSONAL PROBLEMS PLEASE!
What does this mean? haha.
What the hell is “eco friendly auctioneering”?!!!!
“eco” friendly. LOL! What they don’t breath or break wind?
ROTFLMAO.
No methane please, were “Eco Friendly”
It means they adhere to the new strict U.N. world saving mandates.
They may only auction in low hushed tones, inhaling more than exhaling saving their breath, and never letting one rip. Wearing only peaceful non-threatening earth tones. The room must be set up by a feng-shui state authorized professional.
They may only eat boiled dead tree bark, & only drink reconstituted effluent from the waste water treatment plant. (Mean while the U.N. serves Kobe beef & fine wine).
In other words pure advertising BS! but some suckers will read it and believe it means they are “green” people, and that’s a good thing.
Number Of Women Buying Handguns Increasing.
CHICAGO (CBS) ―
Local gun shop owners say they’re seeing an increase in the number of women shoppers right now. The reasons, they say, are many, including the downturn in the economy and violence on the street.
According to the National Shooting Sports Foundation, about 48 percent of people taking their first handgun seminars this year happen to be women. CBS 2’s Pamela Jones reports on the growing trend.
“It’s very dangerous out there. I mean, there’s people getting robbed here and there,” said Josie Santiago. “It’s just for protection.”
Santiago says she’s always thinking about the danger lurking on the streets of the Chicago area. It’s a big reason why she visited Illinois Gun Works in Elmwood Park.
Not only did she shop for a new weapon, but she also wanted to find out about taking firearms training from the pros.
“It’s better that you know how to use it,” Santiago said. “You know, take the class, take the course, protect yourself.”
It seems like Josie is preparing to wail “Make my day”
Hey, youse talking to me?
Everybody RUN!
The homecomming queens gotta gun
Its been five years since the beginning of the meltdown and the system that created the crash is still alive and kicking . Lip service to the middle and upper middle class and bonuses for the culprits . The moral hazard of not
conducting a entire overhaul of the faulty systems that padded the pockets of the Chosen is apparent . At least after the 1929 crash they enacted laws to stop Wall Street from being able to reek the damage that the 1929 Stock Market crash did to the economy . The Politicians are not effective in correcting the mistakes because of their masters the Blackmailing Lobbyist .
The Politicians are just going to have to admit that the systems have failed at the expense of Main street and you can’t kill the host or the Majority in order to protect the Chosen Elite .
The Power Brokers would like Americans to believe that the issue is lack of pure capitalism and freedoms . The issue is lack of regulations and stacked decks and rigged games and monopolies in favor of the lobbyist .
I predict that the PTB will continue to ransack the US until there is nothing left to steal. Then the US will dissolve with little warning as the USSR did.
This is the most likely scenario.
For of those of you who have not been keeping up with world events over the last 20 years, here’s a recap:
USSR collapses and becomes plain old Russia again, with more capitalism and less communism.
China has yet another “cultural revolution”. As with Russia it involves more capitalism and less communism.
Europe move towards a single market via the ECM which then morphs in to the EU forming an economic region equal to the United States.
The United States has no major restructuring over the same course of time and even sees a measurable decline in the averages person’s standard of living and increasing disparity between J6P and the top .5%. There is more socialism and less capitalism, but the socialism is only for the big corporations with the citizenry being forced to pay more and more for less and less.
No, I did pull this information out of my rear nor the conclusion. This information and conclusion are courtesy of some well respected geopolitical intelligence websites such as Stratfor, the Economist and Financial Times (London) among others.
“…did not…” sheesh I absolutely cannot proof my own writing.
Just took a look around the MLS here in Los Angeles and noted that in a lot of areas, new listings in the last couple of weeks were undercutting current pricing by a fairly significant amount.
It appears that people who needed to unload their properties wanted to make sure they caught the $8,000 house buying stampede.
Ultimately, this will probably have an effect on future comps.
In a demonstration of the law of unintended consequences, the $8000 tax credit may have produced capitulation? Wahoo!
Late reply:
“What I mean is, I don’t think of myself as owning a house. I think of myself as owning a mortgage. One day I WILL own my house, but right now I’m renting from the bank, is all.”
That’s the right way to look at it alright, Oly… Smart. Renting from the bank, but also making small incremental “purchase” payments (e.g. principal pay-down). One day you will own.
“Still a very sad story. Those poor kids.”
Yes, I feel for the kids and others who are experiencing all-too-real human tragedies.
I just have a hard time with the victim-think; their financial situation was of their own making. They chose to run their business with high leverage, and should do so with an understand of all that that implies.
The pain she went through due to her mental-health issues, and the pain that her family is still going through, I empathize with.
making small incremental “purchase” payments
It is called ‘Lay away’.
“I bought a house on lay-away!”
Too funny—I never thought of it that way, even though it’s a great analogy…
More green bamboo shoots with 3-hub sauce:
Struggling US Airways said on Wednesday it will cut some 1,000 jobs next year, shift nearly all of its flying to its three hubs and Washington, and suspend several international routes.
It’s a major retrenchment, and Chairman and CEO Doug Parker said he hopes it gets the airline making money again.
US Airways Group Inc. said the job cuts will happen in the first half 2010 and will include 600 passenger and ramp service workers, 200 pilots, and about 150 flight attendants. The airline will close crew bases in Las Vegas and at LaGuardia airport in New York on Jan. 31, and in Boston on May 2.
It’s also scaling back international flying. It is suspending flying between Philadelphia and London Gatwick; Birmingham, England; Milan, Italy; Shannon, Ireland; and Stockholm. US Airways is also formally giving up its government permission to fly between Philadelphia and Beijing, which it had never used.
I thought Eddie that the airline biz was booming?
It is, just booming in reverse.
This jobless recovery is really kick azz.
USScare, err USAir is lucky to be in business. The company that is USAir is really America West. AW bought USAir and kept the name as they foolishly thought having a better name would get rid of their horrible service. It was a crappy airline before the merger it’s even worse today. I say don’t stop at 1000, fire the whole employee base and just be done with the whole fiasco.
I sure can’t argue with that. There was a reason they called America’s Worst.
“US Airways is also formally giving up its government permission to fly between Philadelphia and Beijing, which it had never used.”
Yeah…Well that’s at least one smart move. I don’t imagine too many of the Boyz from south Philly would be all that excited to step off the plane in China !
In my book it will always be known as “Agony Airlines.”
Anybody remember Sabena?
Such A Bloody Experience, Never Again.
Sabena. A truer motto ne’re was writ.
Although I used to enjoy Sierra Pacific Scarelines
and Sierra Maybe when they flew the Owens Corridor.
But NZ had the best. Aspiring Air—with a hitching post for your horse at the tarmac.
I flew it when it was Allegheny Air (Agony Air).
Mortgage applications dropped a third week for the week ended Oct. 23 as refinancing cooled and the end of the tax credit for first-time purchases drew nearer. The Mortgage Bankers Association’s index of applications declined 12 percent to 562.3 from the prior week’s 641.
The index of home purchase applications dropped 5.2 percent while the index of refinances slumped 16 percent. Refinancing remains the majority of mortgage activity, but its market share eased last week for the second week in a row to 62.3 percent of all applications, down from 65 percent in the week before.
Even though congressional discussions to extend or modify the $8,000 tax credit for first-time home purchases has intensified, no final action has been taken and the current benefit is set to expire at the end of November.
Interest rates remained above 5 percent for a third straight week, even as it eased somewhat. The Mortgage Bankers Association measure of the average 30-year fixed interest rate fell to 5.04 percent from 5.07 percent in the previous week. The average rate reached 4.61 percent in March, the lowest since the group began tracking it in 1990.
The average interest rate for 15-year, fixed-rate mortgages edged up to 4.53 percent from 4.51 percent.
The average interest rate for one-year, adjustable-rate mortgages fell to 6.79 percent from 6.86 percent.
Another band aid on a bullet wound, they’re gonna need mo money, soon.
CIT Gets $4.5 Billion in Loans Through ‘Diverse’ Lender Group
Oct. 28 (Bloomberg) — CIT Group Inc., the 101-year-old commercial lender seeking to avoid collapse, received $4.5 billion in financing by expanding an existing credit facility.
The loan came from a “diverse group of lenders” including bondholders, who also supplied the company with $3 billion of financing in July, New York-based CIT said today in a statement distributed by Business Wire.
A competing $4.5 billion loan from billionaire investor Carl Icahn was “unfunded,” CIT said in the statement.
“Despite several requests from the company for information and multiple deadline extensions, the company has yet to receive a signed credit agreement and evidence of Mr. Icahn’s ability to fund the commitment,” CIT said.
Really? Another shocker…
Cards From Largest Banks Would Break Law, Pew Says (Update1)
Oct. 28 (Bloomberg) — None of the credit cards offered online by the 12 largest U.S. banks would meet requirements of new federal curbs on the industry’s rates and fees, a report from the Pew Charitable Trusts said.
All of the cards surveyed used practices considered “unfair or deceptive” by the Federal Reserve, according to the report released today by the Philadelphia-based nonprofit organization. The study examined almost 400 cards advertised by banks and credit unions and compared terms for cards offered in July 2009 and December 2008.
The Credit Card Accountability Responsibility and Disclosure Act, which takes effect in stages, will require banks to apply payments to higher-rate balances first, limit rate increases and ban practices such as “universal default,” or raising rates based on a missed payment with another lender. Most of those rules are scheduled to begin Feb. 22; others took effect Aug. 20, 2009, and some such as limits on gift-card fees are set to start Aug. 22, 2010.
“Our research shows the most harmful practices the card act targets remain widespread,” said Nick Bourke, manager of Pew’s Safe Credit Cards Project, which began studying how the industry treats consumers in 2007.
Cardholders haven’t benefited from historically low interest rates, even though the Fed lowered the federal funds rate to near zero to ease lending for banks, the report said. Credit cards became more costly for American families in the first half of 2009, which makes them a potentially dangerous part of most Americans’ financial lives, according to the report.
In and out quick before my last grad class tonight, then I’ll put the finishing touches on my thesis.
From Packman last night:
Don’t do it.
I’ve lost my ShoRtS on SRS. It’s too frustrating - there’s a class action lawsuit in fact.
(well, my socks anyhow)”
I’ve had SKF, SRS, and FAZ during the last year, but I didn’t join any class action — are you party?
DinOR and Muir set me straight before I ‘went long’ like everyone else that got fried. I actually cleared a few Ben’s, but I was more just trying the whole process out. I still like the idea of the traditional buy low / sell high technical analysis thingy that combo mentions here and there, and I am going to get into that after grad school (as well as Taleb and some other authors).
As always, not financial advice.
I’ve had SKF, SRS, and FAZ during the last year, but I didn’t join any class action — are you party?
I looked into it and thought seriously about it, but decided against it. For starters you have to agree to be a “primary plaintiff” or something to that effect - I think implying that they may call on you to give witness, and I just don’t have the time. And in general from what I hear of class action suits is that the peon plaintiffs end up getting very, very little money back - the vast majority goes to the lawyers.
So I decided to take it as a Caveat Emptor / Mea Culpa - lesson learned, don’t ever do that again. I no longer do any leveraged ETFs - long or short. For that matter most ETFs in general are bad news - pretty much pure speculation, IMO.
I’m a party to the SRS, but not expecting much (if anything) back on it. In fact, I used to file quite a number of these claims as part of my previous job, but even when he lost thousands on a trade, the most I ever saw my boss get back was $50 or so. The lawyers make out like bandits, that’s true, but the case will go forward with or without you and $20-$50 buys a lunch or dinner.
I am hoping to get a major win from the Cost co class action.. you know probably something like a Big Screen tv sort of win, well okay, just a picture of one on a discounted coupon.
yuck yuck.
Frontline- Close to Home.
Documentary about job losses, home losses etc. Upper East Side.
One major disturbing fact was that the majority of people who were without jobs and for long long periods of time, were people over 50.
There are so many aspects of this that are going to change the face of America forever.
Todays uplifting documentary is Medicated Children.
Caught your post post, PB!
The age discrimination for those over 50 is staggering.
Anybody want to guess why? Resentment by the younger generation?
Nope. Guess again.
Uncle Buck to dollar naysayers: “The reports of my death have been greatly exaggerated.”
Dollar Rally to Last for ‘a While,’ Jim Rogers Says (Update2)
By Theresa Barraclough
Oct. 28 (Bloomberg) — A rally in the dollar may last for “a while” as equity and commodities markets decline, said Jim Rogers, chairman of Singapore-based Rogers Holdings.
“Everybody is pessimistic on the dollar,” Rogers said in an interview with Bloomberg television in Singapore. “Whenever you have everybody on the same side of the boat, you know what you have to do. We may have a rally in the dollar, a decline in commodity prices or stock prices for a while.”
Rogers, an author whose books include “Investment Biker” and “Adventure Capitalist,” said in an Oct. 8 interview that there may be a rally in the dollar, although it won’t be “sustainable.” He said at a financial forum in Hong Kong in January that printing of the U.S. currency to help revive the economy would weaken the greenback and Treasuries.
…
Could well be, but…
The recent equity gains have really helped reduce the projected federal budget deficit, which in turn helps the dollar. That’ll be true as long as equities remain high, since there will be lots more cap gains revenue coming in. That’s only true for this year though; next year unless stocks continue their skyward run, cap gains revenue will go down, and the deficit will look worse again (relatively speaking - meaning worse than its already-dismal level).
In the end, the dollar’s strength is tied to spending levels. Unless spending is reduced significantly - beyond just letting the stimulus play out - the deficit will remain in the $500B+ range for years, and the U.S. debt will continue to climb, putting continued downward pressure on the dollar.
This of course is assuming there isn’t significant *new* spending - including the Fed buying additional MBS etc, which also puts downward pressure on the dollar. If another stimulus package is required, or all of TARP ends up getting spent after all - watch out.
Man took pay from NJ company he never worked for.
(AP)
SOMERVILLE, N.J. – An Illinois man has admitted banking more than $470,000 in paychecks from a New Jersey company he never worked for.
Thirty-five-year-old Anthony Armatys (AHR’-muh-tees) of Palatine, Ill., pleaded guilty Monday in New Jersey Superior Court to one count of theft as part of a plea bargain.
Prosecutors say Armatys accepted a job with Basking Ridge, N.J.-based telecommunications company Avaya Inc. in September 2002, then changed his mind. But the company’s computer system never removed his name from the payroll.
Paychecks were deposited into his bank account until February 2007, when Avaya auditors discovered the mistake.
Prosecutors are recommending a six-year prison term and restitution. Sentencing is scheduled for Jan. 8.
What? Avaya was dumb enough to give away the money. Did the guy somehow lie to make this happen?
Didn’t anyone get a clue when he wasn’t showing up for any of the Christmas parties?
Our stupidity makes you a criminal!
Transports made new closing lows. Is it time to push the sell button?
It’s just my humble opinion, but I think the current market situation can best be represented by those scenes from WWII submarine movies, where you hear:
“Ow-oogah!! Ow-oogah!! Dive!! Dive!!”
Yep. The sucker rally may be just about over.
http://wtopnews.com/?nid=25&sid=1796701
New flood of foreclosures likely to hit area
Tens of thousands of additional foreclosed homes are expected to flood the Washington area soon, and the housing crisis is sending “ripple effects” down to renters and school-age children, according to a report released Wednesday.
More than 100,000 mortgages - almost 8 percent of all loans in the region - were delinquent in June. Further, 51,500 were more than 90 days past due, the report said.
Ouch.
and the housing crisis is sending “ripple effects” down to renters and school-age children,
That would be those school-age children who bought houses with the $8k tax-credit?
You Cheat, I Cheat, as Wall Street Acts as Model.
Oct. 28 (Bloomberg) — Trickle down really does work. Consider these inspired words, from an online reader of USA Today, reacting last week to news that Americans were lying, cheating and law-breaking to get their hands on an $8,000 tax credit for first-time homebuyers:
“The system is scamming you, so why not scam back a little,” wrote the reader, using the name “None in 08.” “You’ve seen what crooks in Washington and on Wall Street can get away with.” So “it’s time to get yours.”
Amen, brother. What are role models for, anyway?
People who make their livings studying the business world’s ethics — and lack thereof — say it doesn’t take a nutburger to sense there’s some systemic unfairness at work.
“The heavy hitters, the high-rollers and the powerful have been getting away with this type of thing, so people say, ‘Why shouldn’t I get my few cents?’” says Thomas Bausch, a professor of management who teaches business ethics at Marquette University in Milwaukee.
The public is onto the fact that the casino known as the stock market operates with one set of rules for the high rollers and another for the little people, says Barbara Porco, director of program development at Fordham University’s School of Business Administration, in New York City.
The truth is the public may have a better chance gambling at a casino than on Wall Street. At a casino, Porco said, “Whether it’s the five-dollar table or the thousand-dollar table, everyone plays by the same rules. That’s not how it works in the stock market, where you have different rules for different groups.”
Cue the Looters
Regrettably, the financial market casino of late has all the ambience of looters storming the neighborhood after natural disaster has struck.
Regrettably, the financial market casino of late has all the ambience of looters storming the neighborhood after natural disaster has struck.
Apt analogy.
However the second set of looters gets table scraps compared to what the first set got.
In fact often the first set of looters will step aside, waiting for the second set to make its move, then mug them, leaving them worse off than if they hadn’t looted in the first place.
How’s that for analogy extension?
“The system is scamming you, so why not scam back a little,” wrote the reader, using the name “None in 08.” “You’ve seen what crooks in Washington and on Wall Street can get away with.” So “it’s time to get yours.”
Nailed it.
I saw a Ditech commercial this smorning that had graphics that were a blatant rip-off of Twitter ( blue sky with clouds and little bird etc).
I just sold my 2007 Toyota Tundra pickup, all set up for a camper, to the local dealer for about 10k under what I paid for it new. It only has 9k miles and is in pristine condition.
The dealer and I made the “deal” yesterday, and since then, he’s taken on another one for a trade, he now has about 6 on his lot. He told me their general manager was really worried and wished he hadn’t made the deal with me now. Maybe just sales talk, but this was after the check had been signed to me, so no need to say anything, and I’ve now bought about 5 Toyotas from them, so they kinda know me. This is the first one I’ve lost money on on resale, I usually run them forever (yup, that should make me really old…but I live in a time warp).
I bought it with bubble money, so figure I lost some to the bubble, won some. I was frankly, really worried about selling it at all. Nearby Carbondale, Colorado (I’m in Glenwood Springs) laid off 23% of their city staff today. Granted it was only 5 people, but the percentage was big. My nephew in Hawaii says nothing is selling over there.
OTOH, my new Casita trailer arrives tomorrow and I’m going to hit the road with it, using my FK Cruiser, a very popular vehicle in this area. Yet the dealer had only one on his lot. He said Toyota has practically quit making them, have scaled back their factories and staff. He actually was quite frank about worrying about he economy. I tried to tell him the recession is over, but he didn’t look like he believed me…
And we’re only 45 miles from Aspen. Maybe I’ll wait and buy back my truck in a few months for less than I sold it for…
my FK Cruiser
I thought you liked your Cruiser?
But I still like your blog, Lavi, it’s cool.
like your blog, Lavi,
Me too.
Sorry about all the typos, I’m writing while driving down the road at 10 mph in a blizzard while listening to an old Sons of the Pioneers CD and singing along to the song “Listen to the Wind” and trying to make coffee using the cig lighter and also trying to get a weather update on my iPod. (FJ Cruiser, not FK.)
Wow, Chin, you are such a multi tasker. Be careful of all that snow. Over a foot I hear.
I just made all that up, so not to worry. I’m actually caving in the Flattops right now, so can’t even see the snow.
“…listening to an old Sons of the Pioneers CD”
Rusty Richards is a friend of mine.
From Post Chronicle:
“Costco Wholesale Corp plans to accept food stamps at its warehouse locations nationwide, its chief financial officer said in an interview on Wednesday.
“Given the economic times and hardships out there, this is a valuable tool for some of our members,” Chief Financial Officer Richard Galanti said in an interview.”
At the risk of sounding like a hardass here… folks on food stamps probably shouldn’t be spending $50 on store memberships.
Darn it. In So Ca, we call the library, book stores, and Costco, “Mexican Free Zones”. We enjoy shopping without screaming unruly anchors, and hearing Spanish. I’m bummed.
If it will help Americans on a Food Debit Card, who are down on their luck stretch their benefits, more power to them.
The illegals in Ca get an Electronic Benefit Transaction Card that they can:
1. take $ out of their bank acct.
2. write checks against it
3. buy general mdse
4. feed their fat a**es
Costco says it food stamps, but in Ca it’s for everything.
Reagrding the Costco Membership Card for EBT Card holders (in Ca), I would bet you, they waive the annual fee (in secret). Good trade off.
(Many of my illegal neighbors drive Escalades, Navigators, Expeditions, Excursions , etc…, and many of their wives don’t speak English.Anchor babies give them a third income, and 2 underground economy jobs w/no taxes paid.)
IF I go, I go with a friend who has membership. I don’t believe the 50. is worth it to me. Unless someone buys weekly, those huge quantities, it isn’t worth it IMHO.
All Costcos to accept food stamps:
“Because about half of Costco’s customers are small businesses and the rest tend to be more affluent than shoppers at traditional grocery chains, Galanti said, executives had assumed there wouldn’t be much response to it accepting food stamps but realized that assumption may have been wrong.
“Certainly this economy was a wake-up call,” Galanti recently told investors. “It is not just very low-end economic strata that are using these (who) typically don’t have purchasing power.”
Food retailing consultant Bill Bishop, of Willard Bishop Consulting, said Costco’s decision shows how pervasive the pressure on consumers has become. He said more and more grocers are seeing their sales peak and fall based on when assistance benefits are distributed.”
Copyright 2009 The Associated Press
Dammit. Ok, I’m out of the market until after June.
“Senators agree to extend tax credit for first-time homebuyers, expanding it to repeat buyers
By Stephen Ohlemacher, Associated Press Writer
On 8:00 pm EDT, Wednesday October 28, 2009
WASHINGTON (AP) — Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.
The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.
Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.”
http://finance.yahoo.com/news/Senators-agree-to-extend-apf-2450736379.html?x=0&sec=topStories&pos=3&asset=&ccode=
The credit is sure popular alright — with fraudsters and other sorts of crooks…
* The Wall Street Journal
* REVIEW & OUTLOOK
* OCTOBER 29, 2009
First-Time Fraudsters
A tax credit so silly even a four-year-old can exploit it.
It’s hard not to laugh when viewing the results of the federal first-time home-buyer tax credit. The credit, worth up to $8,000 for the purchase of a home, has only been available since April of last year. Yet news of the latest taxpayer-funded mortgage scam has traveled fast. The Treasury’s inspector general for tax administration, J. Russell George, recently told Congress that at least 19,000 filers hadn’t purchased a home when they claimed the credit. For another 74,000 filers, claiming a total of $500 million in credits, evidence suggests that they weren’t first-time buyers.
Among those claiming bogus credits, at least some of them were definitely first-timers. The credit has already been claimed by 500 people under the age of 18, including a four-year-old. This pre-K housing whiz likely bought because mom and dad make too much to qualify for the full credit, which starts to phase out at $150,000 of income for couples, $75,000 for singles.
As a “refundable” tax credit, it guarantees the claimants will get cash back even if they paid no taxes. A lack of documentation requirements also makes this program a slow pitch in the middle of the strike zone for scammers. The Internal Revenue Service and the Justice Department are pursuing more than 100 criminal investigations related to the credit, and the IRS is reportedly trying to audit almost everyone who claims it this year.
Speaking of the IRS, apparently its own staff couldn’t help but notice this opportunity to snag an easy $8,000. One day after explaining to Congress how many “home-buyers” were climbing aboard this gravy train, Mr. George appeared on Neil Cavuto’s program on the Fox Business Network. Mr. George said his staff has found at least 53 cases of IRS employees filing “illegal or inappropriate” claims for the credit. “In all honesty this is an interim report. I expect that the number would be much larger than that number,” he said.
…
* The Wall Street Journal
* REVIEW & OUTLOOK
* OCTOBER 29, 2009
The Big Mac’s Currency Lesson
McDonald’s departure from Iceland is a suggestive economic indicator.
…the lesson here is not about the dangers of globalization or the virtues of buying local. Since Iceland’s banks collapsed last fall, and its currency with them, the cost in local currency of all imports, and not just fast food, has soared. This has done nothing to “cushion” the blow to Iceland’s economy from what amounted to an international run on its banks. What it has done is added a currency panic to a financial panic, and made Iceland’s prospects bleaker than they otherwise might have been.
In countries such as Ireland, some critics of the euro have claimed that membership in the currency bloc has made its economic woes that much more painful, and that Ireland would have been better off if it could have depreciated its way out of trouble. In the U.S., too, there’s a chorus arguing that we can devalue our way toward prosperity. But debasing one’s currency makes a country poorer, not richer. Just ask the residents of Reykjavik, who now must travel 900 miles to get their Big Mac—in Dublin.
Under the Bits Bucket head.
“Earn Your Masters in Real Estate Management” ?!
Most egregious Google photo ad EVER! (And over the years, Ben has had more than a few…..) The guy with the “sold” sign looks like he needs a thwack with tx’s 10 lb. trout.
Gad, the irony.