December 15, 2009

Bits Bucket For December 15, 2009

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




RSS feed | Trackback URI

387 Comments »

Comment by In Montana
2009-12-15 06:32:31

Good morning. Our last big mill is shutting down. http://tinyurl.com/yclzw3r

This is the end.

Comment by exeter
2009-12-15 06:52:38

That’s nothing. We’re used to that in the northeast.

 
Comment by Ben Jones
2009-12-15 06:58:59

Sorry to hear that. When I go back to Texas, I’ll drive through towns that used to be bustling with activity from the boom days. I mentioned before that anyone who wants a depression hasn’t lived through one. I also think arguing about inflation/deflation or recession/depression is like arguing about the weather. What ever the case, if it’s so, every man, woman and child will know it.

Comment by arizonadude
2009-12-15 07:04:23

Yes that sucks.They are basically trying to shut down the mills here in ca.They have done a great job of that.So many huge companies have left this state and you basically have one company left standing that dominates the lumber market.they own about 2 million acres so I dont know what will happen to them.

Comment by exeter
2009-12-15 07:08:54

Embrace the race to the bottom. The sooner we get to the bottom, the quicker J6Pack will realize the supply side mantra is a lie.

(Comments wont nest below this level)
Comment by oxide
2009-12-15 07:57:57

One man’s Demand Side is another man’s Entitlement.

You’ll never convince J6P otherwise, even if he lives in a tent.

 
Comment by DinOR
2009-12-15 08:31:02

“Embrace the race to the bottom”

Sorry, I’m going to have to take serious exception to that. That’s like saying the Bataan Death March would have been so much better off had the prisoners been forced to ‘run’?

If this were ‘just’ about driving down unrealistic HOME prices ( and putting The REIC out of business ) then I could get onboard. But now that ( as Ben suggests ) even innocents are getting dragged into the malestrom I’ll take my sweet time if it’s o.k w/ you?

 
Comment by packman
2009-12-15 08:35:44

Bad analogy.

The problem is - the longer it takes to get to the bottom, the more innocents will get dragged in.

Housing stimulus is a great example - the tax credits, the MBS purchases, etc. It’s prolonging the race to the bottom, enhancing the profits of the REIC at the expense of the general population in the form of higher taxes and inflation.

 
Comment by exeter
2009-12-15 08:37:41

Cmon… embrace walmart… cheap is good…. especially when the global wage arbitrage drives wages to the floor!

Aren’t you enjoying it?

 
Comment by DinOR
2009-12-15 09:46:13

packman,

Yeah I’m not sure it was my ‘best’ turning of a phrase but an unbridled desire to see the most pyrotechnic ’show’ isn’t going to help either?

I don’t think anyone has a lock on the right to be impatient or bitter about this and there -are- days where I just can’t take another minute of this! But I’m not sure what not wanting to see the entire country slide into oblivion has to do w/ embracing Walmart or low wages?

Quite the contrary, these are the very things I sought to avoid from the git go. Not sure why they’re being assigned to ‘me’?

 
Comment by In Montana
2009-12-15 09:58:26

“That’s nothing. We’re used to that in the northeast.”

So are we. It’s down to one from 6-7 when I first came here in 1975. But it still hurts. This was *the* Other Shoe in the local economy. I thought it might close before 1990 but it kept rolling along.

So things ought to get real interesting now.

 
Comment by cashedin05
2009-12-15 10:14:32

You may wan’t to tell that to the current President and Congress. They are building a new form of supply side where the Government controls the money and 10 cents of every dollar trickles down to the citzenry. The other 90 cents goes to “right minded” organizations/unions and over paid Federal employees.

Give me Reagan’s supply side any day.

 
Comment by DD
2009-12-15 10:21:22

Cmon… embrace walmart… cheap is good…. especially when the global wage arbitrage drives wages to the floor!

Aren’t you enjoying it?

As soon as wages in other countries meet our minimum wage, poof. The goose is cooked. Not that far off.

 
Comment by DD
2009-12-15 10:24:28

Give me Reagan’s supply side any day.

Methinks you are mistaken,Cashed. RR was instrumental in raising taxes and driving up the deficit and then it continued with GW then C, Then fully recognized with GW again.

You keep saying that word, but I do not think it means what you think it means.

 
Comment by packman
2009-12-15 10:45:35

But I’m not sure what not wanting to see the entire country slide into oblivion has to do w/ embracing Walmart or low wages?

You’re mixing mine and exeter’s posts.

I don’t want to see the country slide “into oblivion” either. But one man’s oblivion is another man’s solid financial foundation. We don’t have to get to 50% unemployment to fix this economy. And we don’t have to all start shopping at WalMart (heaven forbid - ugh).

What we do need to do is take our lumps, and learn our lesson. We are not. Instead we are building a foundation for an even greater fall down the road. It may be anywhere from maybe 10-50 years from now - but it will happen. And I doubt we’ll survive it.

(Assuming we survive this one)

 
Comment by cashedin05
2009-12-15 10:54:23

Ok. Reagan had his ups and downs, first term was an up, second term was a down. Anyway, the current bunch is going to blow any spending, taxing and deficit setting records off the map. Reagan, Bush, Clinton, Bush and former Congress’ will seem like pikers.

 
Comment by DinOR
2009-12-15 12:34:38

packman,

Just to observe brievity, I actually ‘did’ combine the posts. I think it’s only too obvious we ultimately -will- have to revert to a “solid financial foundation”.

But are we sure going cold turkey/white knuckle is the answer? Since the PTB have already determined that’s not going to happen, what’s ‘to’ embrace?

 
Comment by obamanator
2009-12-15 14:17:46

“Methinks you are mistaken,Cashed. RR was instrumental in raising taxes and driving up the deficit and then it continued with GW then C, Then fully recognized with GW again.”

Whomever said this better go back and read a history book. RR LOWERED taxes from the Peanut Farmer’s ridiculous 70% rates and also LOWERED the deficit in his first term to almost a BALANANCED BUDGET, despite the likes of Ted Kennedy and Tip O’neill declaring his budgets DOA. You forget that Congress was controlled by the DEMS his entire eight years. I get sick and tired of you Dems trying to re write history to make your loser President’s look good.

GW LOWERED taxes again- the same ones that Barry wants to take away!

Fact is, I’ve never met a D that did not want to take someone ELSE’s money away and give it to someone else. Your man Barry is going down as the WORST president in 100 years. Thank GOD he will be a one term president. Then hopefully we can undo what damage he’s done.

 
Comment by packman
2009-12-15 14:33:14

RR LOWERED the deficit in his first term to almost a BALANANCED BUDGET

Say what?

Deficit as a % of GDP:

1980: 2.6%
1981: 2.9%
1982: 4.5%
1983: 5.5%
1984: 4.8%

May want to check your facts there.

 
Comment by alpha-sloth
2009-12-15 15:07:49

Postwar president’s increase of national debt to GDP from beginning of term to end:

Roosevelt/Truman -24.3%
Truman -21.9
Eisenhower -10.8
Eisenhower -5.4
Kennedy/Johnson -8.2
Johnson -8.3
Nixon -2.9
Nixon/Ford +0.1
Carter -3.2
REAGAN +11.3
REAGAN +9.2
Bush 1 +13.1
Clinton -0.6
Clinton -8.2
Bush 2 +6.9
Bush 2 +11.9

Anybody see a pattern?

 
Comment by DD
2009-12-15 15:36:53

+1000 alphy

 
Comment by cashedin05
2009-12-15 17:34:30

Obama +100%

 
Comment by alpha-sloth
2009-12-15 17:39:05

I should have said ‘increase or decrease’- those are negative signs in front of every single free-spendin’ democrat, positive signs in front of every single republican (except Eisenhower and Nixon’s first term).

 
Comment by DD
2009-12-15 18:14:07

Not according to RR JR.

 
 
Comment by yensoy
2009-12-15 08:14:56

Dont need to make packaging material if there is nothing else being made that has to be packaged!

(Comments wont nest below this level)
 
 
Comment by pressboardbox
2009-12-15 07:25:04

“What ever the case, if it’s so, every man, woman and child will know it.” -I still think the Eddies will never get it.

Comment by exeter
2009-12-15 07:50:15

He will eventually. Lifes hardships tend to season and grey everyone irrespective of how much of a twit they are.

(Comments wont nest below this level)
 
 
 
Comment by Eddie
2009-12-15 07:11:44

This is what unions, OSHA, and the other thousands of regulations have led to. Just wait until ObamaCare and Cap N Tax arrive. Good times ahead.

Comment by exeter
2009-12-15 07:18:09

Support union labor Eddie… besides… you don’t have a choice.

Comment by oxide
2009-12-15 08:30:08

Unions are outdated, especially if they represent unskilled and semiskilled work which is easy to replace. What is the worst that a union can do? Go on strike? Going on strike means going to China. Going on strike means hiring H1-b’s or “undocumenteds.” Going on strike means hiring scabs, which aren’t difficult to find these days.

(Comments wont nest below this level)
Comment by measton
2009-12-15 09:25:11

Unions are outdated, especially if they represent unskilled and semiskilled work which is easy to replace. What is the worst that a union can do? Go on strike? Going on strike means going to China. Going on strike means hiring H1-b’s or “undocumenteds.” Going on strike means hiring scabs, which aren’t difficult to find these days.

Which is exactly why the elite love globilization, which is exactly why everyone in the US will see there wages fall until we are competetive with people who live in a box and eat one bowl of rice a day.

 
Comment by DD
2009-12-15 10:28:09

Which is exactly why the elite love globilization, which is exactly why everyone in the US will see there wages fall until we are competetive with people who live in a box and eat one bowl of rice a day.

And the 5 day work week will disappear, the insurance coverage provided by some corps will disappear, pensions will definitely completely disappear, any safety at all at the workplace will be a forgone conclusion. No vacation at all. No holidays, 8-5 or 9-5 PFFFT gone.
YEP, you get rid of unions and even you ‘consultants’ will see your bread and butter disappear.

 
Comment by packman
2009-12-15 10:51:23

Yeah and of course without protection of the key laws - I’m sure slavery will make a full comeback, as will stoning of adulterers, burning of witches at the stake, etc. Without building codes we’ll all be reverting to outhouses. Without the EPA of course we’ll revert right quick to dumping raw sewage into the rivers again.

Etc. etc.

You keep building that strawman, there. I for one do not buy it.

 
Comment by DinOR
2009-12-15 12:40:17

packman,

Thank you. And if any of that -were- true, how much of that blame our we willing to shoulder ourselves? It’s incredible to me just how attentive people are when they’re listening to you, now that they’ve seen just how important having a job is?

Where was all this lavish attention during the last 2 booms? Guess we were all too busy daytrading our ETrade accounts or shopping Home Depot online for the latest curb appeal for our next flip?

If not having to beat people over the head and repeat your acct. # FOUR times is part of the “bottoming process” they yes, that’s something I can embrace.

 
Comment by ecofeco
2009-12-15 19:35:37

History has shown time and time again WITHOUT fail that the PTB WILL resort to abuse of the populace if given half a chance.

Surely you’ve been keeping up with current events? I mean really, how can you say you don’t think it would get that bad? Seriously?

 
Comment by CA renter
2009-12-16 04:21:22

Comment by packman
2009-12-15 10:51:23
Yeah and of course without protection of the key laws - I’m sure slavery will make a full comeback, as will stoning of adulterers, burning of witches at the stake, etc. Without building codes we’ll all be reverting to outhouses. Without the EPA of course we’ll revert right quick to dumping raw sewage into the rivers again.

Etc. etc.

You keep building that strawman, there. I for one do not buy it.
————————-

What’s your take on it then, packman?

I fail to see why people don’t understand how we are all being forced to the bottom. Globalization has done nothing good for the countries with resources. Who cares if we can buy our food processors for $15 instead of $30? If the one made in China is loaded with toxins and designed to break down in a year (as opposed to the $30 one lasting 20 years), what is gained?

If the means to get cheap goods is to reduce our wages (therefore reducing the purchasing power of our citizens over the long run), what is gained?

 
 
 
Comment by arizonadude
2009-12-15 07:22:30

Talk to GM and them how those unions are working out.

Comment by Eddie
2009-12-15 07:32:07

And the airlines, the steel industry, the electronics industry. You name an industry and as soon as the stench of unions come near it, the industry collapses.

(Comments wont nest below this level)
Comment by X-GSfixr
2009-12-15 07:51:31

Might I suggest that the stench of the Wall Street bean counter management class has had as much to do with it as the so-called “unions”

I’ve been on both sides of the management-union divide. Bad management comes before bad unions.

 
Comment by X-philly
2009-12-15 07:58:50

And they have formed an unholy alliance to eff over the average working stiff who just wants to support his family.

 
Comment by palmetto
2009-12-15 08:01:34

Wall Street has the BEST union and community organizers EVER! And don’t Congress and da Prez know it! Play ball, or we’ll kneecap EVERYONE by taking da system down.

 
Comment by Skip
2009-12-15 08:20:07

Southwest Airlines is fully unionized and often mentioned here as a well run company.

 
Comment by Spokaneman
2009-12-15 08:41:38

Southwest airlines employees have a much different attitude than the employees of the legacy carriers, due in large part to good management and the legacy of Herb Kelleher. I recently saw a WN first officer handing excess cabin bags down to the ramp crew. You would never see that on a legacy carrier, it would be a gross violation of the union work rules.

Hopefully, the WN union personnel and management have learned from the mistakes of the legacy carriers, but only time will tell.

 
Comment by aNYCdj
2009-12-15 08:59:13

Eddie:

I don’t usually answer you, but its Not the unions per se that is the problem, it is the years of pushing the line inch by inch year after year and it compounds to the point where unions pay is way out of line with what is reasonable.

We have a Teachers “rubber room: which is no different then GM’s “Job bank” teachers are paid to do nothing while waiting to see if they get fired or go back to the class room, some even years.

While the average kids is barely functional when and if they graduate. Its an embarrassment to have remedial courses to get accepted at a city college.

What unions were originally for was for workers in company towns where half the people worked for the company and the other half were in retail services to that company.

It was supposed to protect workers from humiliating and scum bosses and for a long time it worked.

But as above inch by inch they went overboard and were basically destroyed

Right now the union NABET (my friend who worked at CNN) won a class action unfair labor practices against CNN after CNN basically outsourced all its technical help because 9-11 cost them an arm and a leg in all the OT and union pay… of course NY and DC were the only unions shops left at CNN

Was that the right thing for Time Warner to do? people slept in the vans at ground zero, covered with dust, taking showers at the Y and churches, vans got clogged with the dust so they would not start…all sorts of stories from cameraman and techs to get you the story, and then next year to be outsourced because of the cost.

 
Comment by Backstage
2009-12-15 09:25:16

Bad management comes before bad unions.

You bet. If there was no greedy, bad management, there would be no unions. Now we have unions, and the unions have greedy, bad management. What happens next?

 
Comment by Eddie
2009-12-15 10:27:59

I love the left’s mantra of evil greedy people. Without greed there’s be no company in the first place. As much as the leftists hate to admit it, people start companies to make money. They don’t start companies to make the world a better place or give employees health insurance. They start companies with the goal of getting rich and in the process hire employees.

Destroying the companies will not make the employees and richer. Forcing unionization through card check will only lead to outsourcing and/or closing the whole thing down. In the end a weak employer is bad for the employees.

I can’t for the life of me figure out why you people don’t understand this.

 
Comment by DD
2009-12-15 10:31:39

Bad management comes before bad unions.

Name one corp that isn’t giving their top BAD mgmnt bonuses yr after yr while taking away from the entire company of employees, and it will be a novelty to be sure.

 
Comment by oxide
2009-12-15 11:09:09

Eddie, if I answered your post the way I want to, I would likely be banned.

 
Comment by Stpn2me
2009-12-15 11:58:09

Destroying the companies will not make the employees and richer. Forcing unionization through card check will only lead to outsourcing and/or closing the whole thing down. In the end a weak employer is bad for the employees.

I can’t for the life of me figure out why you people don’t understand this.

I dont always agree with you eddie,

But I also notice no one has refuted this last statement..

 
Comment by Hwy50ina49Dodge
2009-12-15 12:41:15

“…As much as the leftists hate to admit it, people start companies to make money. They don’t start companies to make the world a better place” :-)

Hey Haskel, The Beave’s Mom (or Mrs. Cleaver as you always call her) wants to know what you did with the AFB donation can, the Beave claims that you had it last! ;-)

The American Foundation for the Blind / Helen Keller:

AFB is recognized as the leading organization to which Helen Keller devoted her life. Keller worked for AFB for more than 40 years, and was instrumental in the foundation of the Talking Books Program, among many others. She remained with AFB until her death in 1968 — lecturing, writing, fundraising, lobbying and providing an example of committed action for the public good. Under the terms of her will, Helen Keller selected AFB as the repository of her papers and memorabilia, which AFB has carefully preserved and arranged in the Helen Keller Archives located in New York City. Helen Keller was a important person that influenced the world.

 
Comment by DinOR
2009-12-15 12:43:52

aNYCdj,

You’ve alluded to that story before, thanks for putting it in terms of REAL human impact! I guess so many of us were watching that unfold 24/7 we never stopped to think of the sacrifices of those that covered it.

Thank you for making that clear.

 
Comment by X-GSfixr
2009-12-15 12:56:31

“….why you don’t understand this.”

If your worldview is that labor is an unavoidable expense, and Dong6pak is directly interchangable with J6P, then congratulations, you can align yourself with the greedy bastard/Wall Street crowd.

Most of the guys I know that actually MAKE THINGS for a living try to do a decent job of paying their employees, so they can concentrate on the work at hand, and not have to take second jobs to have insurance, or pay the rent. They are also smart enough to figure out that demand for their products will drop, if all their customers are living in mud huts.

Unfortunately, a lot of these guys are being run out of business.

For those who have bad/non-existant memories, it was the Wall Street sharks who pushed for a lot of the outsourcing that has happened…….a company could make a profit building/making things here, but the sharks were looking for profit + 50%.

Many small and mid-level manufacturers didn’t want to do business in China, due to no intellectual property protection, and the government’s capital restrictions. But many were put in the position of either outsourcing, or going out of business.

So, our manufacturers are having to compete against products that use stolen/exported under duress intellectual property (so, no R & D costs), that perform maybe 80% as well as the latest US-designed/built stuff, but cost 80% less. (At least until they run all their competition out of business)

Even if your labor is free, it’s hard to compete against that.

 
Comment by DD
2009-12-15 13:27:40

But I also notice no one has refuted this last statement..

Stpn, sometimes we just Ignore that which spews.

 
Comment by DD
2009-12-15 13:30:48

Many small and mid-level manufacturers didn’t want to do business in China, due to no intellectual property protection, and the government’s capital restrictions. But many were put in the position of either outsourcing, or going out of business.

+10000%

 
Comment by Hwy50ina49Dodge
2009-12-15 13:38:57

In refutation! ;-)

“…In the end a weak employer is bad for the employees” ;-)

Right, so you argument is… that while it was a “growing concern”… ENRON was a weak company, right?

BWAHAHHAHAHAHHAHAHHAHHAHAHAHHHHHHHHHHHHH!!! (fpss™)

 
Comment by Hwy50ina49Dodge
2009-12-15 13:41:25

“…So, our manufacturers are having to compete against products that use stolen/exported under duress intellectual property (so, no R & D costs), that perform maybe 80% as well as the latest US-designed/built stuff, but cost 80% less. (At least until they run all their competition out of business)

Even if your labor is free, it’s hard to compete against that.”

Shakespeare: “Oh, what cost $$$$$$$ thou art ingredient: Toxicity!” :-)

 
Comment by VaBeyatch in Virginia Beach
2009-12-15 15:05:50

A big issue I see is that so many smaller to mid sized companies get bought out by the larger companies (to be fair this is often an exit strategy from the beginning). If there isn’t something to replace it (started by the people that made the cash from the sale), then you can see shedding of workforce and consolidation of employers.

 
Comment by ecofeco
2009-12-15 19:46:02

“Greed is good?”

Oh dear. Where did we hear that one before? Oh yeah, just before the Savings & Loan fiasco.

Greed is stupid and destructive. There’s a reason it’s one of the 7 Deadly Sins and there’s a reason they’re called “deadly.”

Do not confuse “ambition” with “greed.”

 
 
Comment by Nudge
2009-12-15 15:51:32

Gosh, there he goes again. Eddie wrote: “.. figure out why you people don’t ..”

Sigh. As if we are some kind of monochrome, lookalike batch of clones with identical beliefs, and from Eddie’s POV there is nothing to differentiate between any of us.

Eddie, did you give all your kids the same first name in order to make it easier for you to remember? Jeez.

(Comments wont nest below this level)
Comment by ecofeco
2009-12-15 19:47:46

Darrel, Darrel, and Darrel?

(bonus points to whomever gets the reference)

 
Comment by aNYCdj
2009-12-15 21:06:40

DinOR:

And that’s the point with eddie…if Nabet had done its patriotic duty and suspended all the union rules the massive OT turn around time,double,triple time pay…maybe CNN wouldn’t have outsourced the help…we will never know…..he put in 100 hours wk ($3000 wk take home) taking turns napping in the van…it was an ordeal just to go 15 blocks with 2-5 gal gas cans for the van had to be escorted by police though 5 check points lest anyone though he was a terrorist…with a press pass….

You’ve alluded to that story before, thanks for putting it in terms of REAL human impact! I guess so many of us were watching that unfold 24/7 we never stopped to think of the sacrifices of those that covered it.

Thank you for making that clear.

 
 
 
Comment by ET-Chicago
2009-12-15 07:26:01

This is what unions, OSHA, and the other thousands of regulations have led to.

If there’s anyone who deserves to step into a time machine and experience an unsafe workplace with sweatshop wages and conditions, it’s probably you.

Comment by exeter
2009-12-15 07:32:19

You’re very correct given his age.

(Comments wont nest below this level)
Comment by jane
2009-12-16 00:31:13

This comment is in response to packman. Packy, I read every single post of yours and find you to be extraordinary. Calm and analytical. That has got to explain why you, as a professional, have landed and prospered in jobs with 40 hour work weeks.

Now, I’m not saying I’m the sharpest knife in the drawer. But (at least in strategic matters - seeing the direction of a business and advising on structure and function) I can hold a conversation with an EVP as a business partner. And due to ridiculous amounts of overeducation with a solid grounding in classics, I kan reed and rite gud.

I have never had a job where I have been able to put in less than 50 hours a week, except during the first month or so when I was just walking around. I am currently a consultant in a firm that is renowned for its balanced life practices. I have logged my fourth straight sixty hour week. I’m not proud of it. I’d rather be home reading or walking the dog. I don’t waste time at work. I’m quiet. There is simply that much stuff that needs to get done that has my name on it.

You are a formidable intellect, and I will be proud to shake your hand at the next meet up. I ask this with all humility:
So what the heck am I doing wrong?

 
Comment by packman
2009-12-16 08:55:51

Not sure if you’ll read this - so I’ll respond in today’s BB….

 
 
Comment by Eddie
2009-12-15 07:37:11

A union comes down to this. I make $X an hour no matter what. I do a good job, I make $X. I do a crappy job I make $X. I show up for work on time, I make $X. I show up for work late every day I make $X. I screw the bolt in tightly, I make $X. I screw the bolt in only 1/2 way and the door falls off the Chevy after 7000 miles, I make $X. I show up sober, I make $X. I show up drunk/high I make $X. And no matter what, I will never be fired.

There is no incentive for performing and there is no detriment to not performing. And given a choice between doing the bare minimum and going above and beyond for the same reward, most people choose option A.

(Comments wont nest below this level)
Comment by drumminj
2009-12-15 07:45:37

I show up drunk/high I make $X. And no matter what, I will never be fired.

You make the argument to the extreme, but I agree this is a shortcoming of the current incarnation of unions. They protect the under-performers, and as a result hold back the good performers (cough teachers’ unions cough).

Collective bargaining isn’t a bad idea overall, and that’s the benefit of Unions. Sadly, these days they’re often corrupt and too powerful.

 
Comment by X-GSfixr
2009-12-15 08:17:43

Eddie, I don’t know if you are a certifiable idiot, or just play one on TV.

I’ve terminated several people when I was a supervisor in a union shop. It’s not that difficult to terminate someone for performance issues. All you have to do is document the poor performance, per the company/union negotiated contract. And if the guy is as worthless as you say, it won’t take long. Believe it or not, most people don’t want to work with f-ups….it makes life harder for everyone else.

Drugs, the same. All I had to do is send anyone I thought was under the influence (per an agreed set if criteria) to the aid station. If it came up positive, automatic thirty day suspension, and termination if the employee didn’t complete rehab. Plus, the Feds pulled your A&P.

Another example……once, my boss’s-boss came down on the shop floor and fired a guy, because he was being investigated for a felony that had nothing to do with work. Screw due process and the contract, he didn’t like the guy anyway, so he thought he would bypass the system and show him the door. The guy was never charged, but had to file a grievance to get his job back. Eighteen months and a negotiated monetary settlement later, the guy is back at work with 18 months of back pay, and a PO’d at the world attitude.

And this is a “union” problem?

In my experience, the guys that bitch the most about the unions have never worked at a company that had crappy, arbitrary management, or were wannabe “Little Hitlers” themselves.

 
Comment by mariner22
2009-12-15 08:34:11

Like everything else, unions or labor associations can do good or bad - Labor organizations can insure fair wages, fair work conditions, benefits and prevent malicious treatment of employees (remember when Walmart locked in employees in stores overnight!).

Unions can also go overboard and extract unreasonable pension benefits threatening to bankrupt many cities/towns. While many factors were involved, the strike at Boeing just as the economic collapse was getting warmed up certainly encouraged Boeing to open their second assembly line back East.

 
Comment by DinOR
2009-12-15 08:38:33

X-GSFixer,

But remember, guys like you and I COME from an aviation background! When you have a problem w/ your aeroplane ( it’s not like you could just pull over to the side of the road? )

Not to take Eddie’s side or any of the other standard-issue neo-con talking points, but he may have been more referring to the teachers/postal emps. etc. I can share plenty of horror stories where it would take molestation charges to get them from drawing a check. IMHO.

 
Comment by X-GSfixr
2009-12-15 09:22:10

Agreed……our shop was in a “right to work” state, in a “Red” state where the typical J6P viewed both the union and management with equal suspicion. It worked out okay, because the union leadership knew they had to perform to keep their members. Everyone knew that if labor costs got out of line, work could (and would) be sent somewhere else.

Different mindset with the UAW……..of course, we never had a history of company thugs beating up and killing union members.

Their problem (like a lot of people seem to have) is that they think the climate in their general vicinity is the same as the rest of the country. The UAW/Big 3 should have been looking at the writing on the wall around 1985-90, and started taking the cram-downs in pay and benefits, like most of their customers were being forced to take.

OTOH, cutting everyone’s pay to $10/hr makes no difference, when management decides they can generate more profit by moving manufaturing to places that pay $5/ a day, and their employees live in mud huts by the riverbank.

 
Comment by measton
2009-12-15 09:29:33

It’s a balance, if management has all the power you have slave labor. That’s there ultimate goal right. If unions have too much power you have inefficiency. Both are bad for the country. The former results in no middle class and rule by the elites who control a much larger percentage of a smaller pie. The later results in inflation and poor service in a closed system or loss of jobs in a globilized system.

Currently management has all the power, and you are seeing the destruction of the middle class in this country. My guess is Eddie will eventually be going down with the ship he’s just not smart enough to know it.

 
Comment by James
2009-12-15 09:47:38

On the union experience: This is a report from a bunch of former Boeing guys related to me about why they hated the union. They felt like the company was getting dragged down by the union and non-productive activities they sponsored.

I’ve hired a bunch of really good techs away from a union shop (Boeing). The engineers are forced to go through the union protocol to decide who gets overtime there.

The union thugs call the shop all the time and figure out who is working. If it isn’t one of the senior guys, they force the company to write the senior guys a check because the company went out of order of selection.

The union guys take turns calling the shop phone in after hours, all night, to find out if they can get some free money.

Many of the engineers have to take an extra tech on the job to balance the union freeloader that is busy talking on his cell phone all night. As you can imagine it drives cost like hell and only large scale work can get done. Engineers end up doing the work themselves quite often.

There were some layoffs at the plant I’m mentioning. The union guys realized some specialized technicians (RF) were all kept. So, every bolt turning monkey got himself reclassified as that type of specialist. Lots of unqualified people suddenly became RF specialists. We have to do a lot of careful sorting in resumes. A lot of the mechanical assemblers like to appear as electronics specialists. Other guys that work power supplies that connect to RF transmitters also like to call themselves RF too. It is a beast to do the hiring with all the collective noise.

….back to my regular scheduled rant.

The public employees unions are among the worst. It used to be that govt work was low paying but high security. Clearly become unsustainable with too many high paid people. Don’t know when that will finish. I do think guys like Exeter will ride this country right into the ground with that kind of union BS.

Every time I’ve had to deal with a union it has been difficult to say the least. From what I’m hearing, Toyota employees are happier on average than GM, F workers. Part of the reason is they don’t have the unions on their backs. Toyota works hard to move workers around to make less repeatative motion injuries. GM will let the slackers with tenure select the easiest tasks. Absenteeism is rampant in the GM factories with high $ replacements as the only option. Toyota rewards you for attendance by paying your sick time and giving a bonus for perfect attendance. They also have the option to selectively reward outstanding workers. And they listen to the workers with out the long drawn out union process. They give bonuses for finding improvements, something the unions frown on because they like “make work”.

Anyhow. The situation is a mess in the country. The unions, like the environmentalists are now the establishment. The original purpose has long since been accomplished. They are just morphing into some blood sucking leaches killing innovation and progress. And I’m talking both groups here.

 
Comment by exeter
2009-12-15 10:11:19

I’ve never seen such a raft of limpwristed squealing in all my life. If you don’t like collective bargaining, don’t join a union. It’s really that simple. But don’t forget to give up your 40 hr week and paid holidays.

 
Comment by DD
2009-12-15 10:38:02

It’s really thatTHIS simple. But don’t forget to give up your 40 hr week and paid holidays.And 9-5 hrs, safety, insurance, pensions-those are disappearing anyway, and each contract time your pay will get reduced till the corp has you at bare bones minimum wage.
Wait for it. wait for it…coming to a job near you soon.

 
Comment by packman
2009-12-15 10:55:19

It’s really that simple. But don’t forget to give up your 40 hr week and paid holidays.

I’m not a member of a union - never have been. But in all my jobs I’ve always had 40-hour work weeks, with flexible hours in fact, and paid holidays.

Exactly how do you reconcile that?

Am I some kind of freak anomaly?

No. I am the norm for non-union full-time workers.

 
Comment by In Colorado
2009-12-15 11:38:23

I’m not a member of a union - never have been. But in all my jobs I’ve always had 40-hour work weeks, with flexible hours in fact, and paid holidays.

Are you paid by the hour? Because in every salaried job that I’ve ever had the expectation was there for plenty of unpaid overtime.

 
Comment by oxide
2009-12-15 11:53:23

Freak anomaly? Probably not. You’re probably a skilled worker. The only leverage an unskilled worker has is if they walk out en masse, to the point where it’s easier to bargain than replace the entire workforce. Corporations have learned how to get around this.

Skilled workers, on the other hand, are in enough demand that they pretty much bargain for themselves. But be careful and remember the old saying: If you can do your job from your computer in your home, then Apu can do your job from his computer in Mumbai.

 
Comment by Stpn2me
2009-12-15 12:03:36

The guy was never charged, but had to file a grievance to get his job back. Eighteen months and a negotiated monetary settlement later, the guy is back at work with 18 months of back pay, and a PO’d at the world attitude.

And you agree with this? The guy needs to find another job….

 
Comment by Al
2009-12-15 12:07:01

“The only leverage an unskilled worker has is if they walk out en masse,…”

Unfortunately this provides no leverage anymore, when there are plenty of unskilled workers ready to walk in en masse. Regardless of the good and bad of unions, they’re pretty toothless right now.

 
Comment by packman
2009-12-15 12:09:31

The only leverage an unskilled worker has is if they walk out en masse…

Or they could… acquire a skill.

 
Comment by packman
2009-12-15 12:14:52

In that respect - IMO the worst thing about unions is encouraging people to stay locked into dead-end jobs. By rewarding the status quo they discourage advancement of individuals, and thus that of the economy as a whole.

 
Comment by Hwy50ina49Dodge
2009-12-15 12:55:25

ROTFLMAO! :-)

“I’ve never seen such a raft of limpwristed squealing in all my life.”

Aye! Well said, Capt’ exeter

 
Comment by X-GSfixr
2009-12-15 13:20:22

“……agreed with this?”

I didn’t have to agree or disagree. That decision was made a lot farther up the food chain.

The point I was trying to make, was that he was terminated for a bull$hit reason by a mid level manager (who, BTW, used his position to protect his buddies when they damaged a customer’s airplane), and would have had no recourse, if he had been working in a non-union shop (guy was a 10 + year employee).

The reason it is so hard to terminate a union employee, is that the unions have insisted on rules to prevent idiot managers on all levels from terminating employees for no good reason.

One of the reasons I left that company……I’m old fashioned, and believe that someone who has been accused of something has the right to contest the charges. I wasn’t too popular with the above mentioned manager, when I refused to “right up” guys for bull$hit reasons, when guys who contributed to the problem got off scott-free, because they were someone’s buddy, or got to tell their side of the story first.

Sometime, try being investigated, charged, tried, and (figuratively) executed, before you even know someone has a problem with something that you were accused of doing, when in fact you weren’t even near the situation.

These are my experiences…..yours may vary. There are always two sides to every story, and both sides usually have some truth.

 
Comment by DinOR
2009-12-15 13:31:23

X-GSfixer,

Hmm, I hadn’t heard all the background ‘noise’ on that one? But suffice to say, even in the military, it’s the “last guy to touch the plane” that has the most on the line!

With or withOUT a union. It has so much to do w/ our “upbringing” within the Av. complex that it makes me wonder why they ever considered going union ‘anyway’?

My guard unit is having a very difficult time keeping on some of the FT guys. It’s a very demanding env. and many have determined that ( especially considering the weather and diff. shifts ) that it’s just not worth it? It’s pretty high turnover, at least in my book?

 
Comment by DD
2009-12-15 13:35:30

Exactly how do you reconcile that?
packy- No, This is how you Recondile that.
In the late 1800s-1900s you will note, if you read some history, that until men and women fought for safe working conditions, no child labor etc, That is what set up the groups that turned into unions that fought to change 7 day work weeks.
And eventually through the decades, employers found out to get and keep skilled workers they had to match other companies “benefits”.

So,packy, That is how you reconcile that you and other “non union” employees get 5 day work weeks etc

Sheesh.

 
Comment by X-philly
2009-12-15 13:37:20

I wasn’t too popular with the above mentioned manager, when I refused to “right up” guys for bull$hit reasons, when guys who contributed to the problem got off scott-free, because they were someone’s buddy, or got to tell their side of the story first.

This is exactly my friend’s situation. He was wronged - partly due to mid-manager’s negligence. Mismanager colludes with HR to make victim the culprit. Union is supposed to protect, but because both parties to the incident are ahem union brothers…the guy who is most connected wins!

And right now my friend is caught between a rock and a hard place: the company and the union. Although there may be a silver lining here - union boss is trying to use this situation to get the mis-manager replaced.

It is shaping up to be one heck of a cluster-fu@k.

 
Comment by DD
2009-12-15 13:39:59

So, this doesn’t bother you at the gov or Fed level or bankers, or non union companies, or deal makers in your town/city/valley? This behavior is acceptable for you because it is “free market”? Oh brother people.

 
Comment by packman
2009-12-15 14:09:05

Are you paid by the hour? Because in every salaried job that I’ve ever had the expectation was there for plenty of unpaid overtime.

Some yes, some now. Some jobs I’ve had did pay overtime, some didn’t. None required overtime as a general rule, though it was sometimes necessary during peak times. If not paid directly, usually it was rewarded via bonuses or other means.

 
Comment by packman
2009-12-15 14:19:41

And eventually through the decades, employers found out to get and keep skilled workers they had to match other companies “benefits”.

So,packy, That is how you reconcile that you and other “non union” employees get 5 day work weeks etc

Sheesh.

If companies only had to “match” other unionized companies - they how do you explain the fact that there are lots of companies that provide benefits that are above and beyond what are demanded by the unions?

- Salaries that are beyond what are negotiated
- Bonuses
- Holiday parties
- Extra time off due to seniority (after N years)
- 401k’s
- Stock options
- etc. etc. etc.

They do do this to attract workers, and to not lose existing workers. They do it to try and beat out their peers, not to just match them (generally).

My point is - improved working conditions would have happened regardless of the existence of the unions. Yes the unions pushed them along, but - as stated many times - their time has passed. Things like 40-hour work weeks are much more a function technological advancement - automation and such - than of unions.

 
Comment by alpha-sloth
2009-12-15 15:25:08

My point is - improved working conditions would have happened regardless of the existence of the unions. Yes the unions pushed them along, but - as stated many times - their time has passed. Things like 40-hour work weeks are much more a function technological advancement - automation and such - than of unions.

If working conditions would have improved anyway, why did people fight and die in attempts to unionize? Why didn’t they just sit back, relax, and wait for the good times to come? Oh, they would have come later? How much later? And how do you know? Any real world examples?

Seems to me you’re bending history and human nature to fit in with your wishful-thinking philosophy.

 
Comment by DD
2009-12-15 15:33:14

+1000 alph

 
Comment by cashedin05
2009-12-15 17:41:53

“If working conditions would have improved anyway, why did people fight and die in attempts to unionize?”

They were down with the communist struggle.

 
Comment by ecofeco
2009-12-15 22:18:36

No packman, you are not a “freak anamoly.” Just part of a shrinking group.

Most people I know work OT, don’t have pensions, and really aren’t paid very well and have expensive “benefits.”

As for getting “skills” most people would like to. Doesn’t mean they have access to do it.

 
Comment by packman
2009-12-15 22:56:35

Doesn’t mean they have access to do it.

The law requires that educational institutions not discriminate by race, sex, religion, etc. Thus yes - they do have access.

 
Comment by ecofeco
2009-12-16 01:48:04

No, they don’t.

 
Comment by CA renter
2009-12-16 04:42:29

Packman,

If everyone were to acquire “skills,” then the pay for those “skilled” jobs would drop because of the excess labor.

I’ll have to respectfully disagree with you about pay increasing over time. How does that work?

You get your pay and benefits because non-union employers have to compete with union employers. If a union job offered better pay and benefits, wouldn’t you apply for that job instead of the non-union job?

The non-union workers have been riding the coattails of the union workers for a long, long time.

Like rats on a sinking ship, the capitalists (executives, bankers and financiers) have forced the workers to turn on each other. You have much more in common with a UAW worker than with Lloyd Blankfein.

What part of that don’t people get?

 
 
Comment by X-philly
2009-12-15 07:42:48

Unions were formed to combat unsafe and inhumane conditions in the workplace, true. Fast forward to present: most of the benefits of union membership accrue to the leaders and those connected to them. I had to do some research on an unfair company policy for a union worker in my acquaintance - come to find out the union agreed to this policy which is intended to bone an aggrieved employee.

That said, the blame for this company’s demise cannot be laid at the feet of the union or its workers. When will the fatcat salaries of the executive suite be addressed? When have they ever taken meaningful paycuts? When have process improvement suggestions that come up from the ranks ever been considered, let alone implemented?

It’s no secret that the higher up the salary ladder, the less ACTUAL work done. Eff the executive suite - a bunch of incompetent useless boobs as far as I’m concerned. Not to mention an absolute drain on the company’s books.

(Comments wont nest below this level)
Comment by Kirisdad
2009-12-15 09:34:59

IMO, the problem with unions is not the corruption, but the fact that it’s political. Union officials are subject to elections and that always involves pandering to the largest voting bloc. That usually is the unskilled portion of the membership(one man, one vote). They are also the most disgruntled group with the least challenging/boring positions. Contracts are negotiated to protect and placate with little emphasis paid to performance and incentive.

 
Comment by X-philly
2009-12-15 10:17:18

Agree about the political piece, but in this neck of the woods, it usually is entwined with corruption:
Tony Forte goin’ down
Here’s the indictment.

 
 
Comment by drumminj
2009-12-15 07:43:39

If there’s anyone who deserves to step into a time machine and experience an unsafe workplace with sweatshop wages and conditions, it’s probably you.

Seriously, WTF. Can we stop the personal attacks here? Geez.

There are a lot of people I disagree with on this blog. Plenty that annoy me. Guess what I do? I IGNORE them. It’s really easy. Just don’t read the posts, and don’t respond. It turns out it works really well.

(Comments wont nest below this level)
Comment by ET-Chicago
2009-12-15 08:15:20

Seriously, WTF. Can we stop the personal attacks here? Geez.

My response to this particular poster was pretty mild (IMO), and the point is he’s sadly lacking any historical perspective. I stand by that point.

 
Comment by DD
2009-12-15 10:40:43

I stand by that point and also the one that is, most of you are spouting off about certain unions. Not all unions are uaw-ish etc. And although there are and have been certain egregious acts in the past, probably the future, they pale by comparison to Wall Street, the Fed and so forth that you are conveniently forgetting. WHY?

 
Comment by DD
2009-12-15 10:43:37

BTW, unions would never have had to be formed in the first place, if not for unscrupulous owners/ corporate/mgmnt liars,thieves,thugs who still to this day refuse to pay ( offshore-lockups) and have safe working conditions. As long as the owners/shareholders/corporate get their every last Scrooge-like penny/schilling/farthing, they don’t give a rats butt how they get it.

 
Comment by obamanator
2009-12-15 14:22:54

Sure, because we know there are no corrupt unions or leaders. Sure. the union leaders care about their workers and never rob the funds or run companies into the ground.

Unions worked real well for our domestic auto industry didn’t they?

What are you, some MoveOn.org flunkee?

 
Comment by alpha-sloth
2009-12-15 15:34:05

What are you, some MoveOn.org flunkee?

What are you? Someone who names himself after someone he purports to hate? Obsess much? You should read some Freud. (You’ll probably have to read some when you get to high school.)

 
Comment by exeter
2009-12-15 16:41:02

Clearly another coward in hiding which begets the question…

Why must keyboard tough guys hide behind an alternate username? Meeting them in person would never happen as they’d be too scared.

 
Comment by ecofeco
2009-12-15 22:23:17

The car companies screwed themselves when they told Williams Edward Deming to take a hike.

Look him up. A perfect example of arrogance and pride leading to ultimate destruction… of American car companies.

 
 
Comment by 2banana
2009-12-15 07:45:22

It is amazing that anyone survived or immigrated to America as it was sooooo terrible back then…! :-(

(Comments wont nest below this level)
 
Comment by michael
2009-12-15 07:54:36

unions have done alot of good…that does not excuse them from the bad they have done.

(Comments wont nest below this level)
 
Comment by wolfgirl
2009-12-15 07:57:18

My grandfather died in a coal mine.
At one time the unions served an important purpose. I’m not sure they do now though.

(Comments wont nest below this level)
Comment by Bill in Carolina
2009-12-15 08:08:05

Back to the closure of that mill- do you think that maybe, just maybe, it has something to do with too much supply and lack of demand.

Just a thought.

 
Comment by ET-Chicago
2009-12-15 08:21:47

At one time the unions served an important purpose. I’m not sure they do now though.

If jobs continue to be offshored and wages eroded, unions should be able to maintain or even increase their relevancy.

To do so, however, unions need to stop their internal bloat and corruption, and expand their reach into white collar sectors.

 
Comment by DinOR
2009-12-15 08:40:23

Bill in Carolina,

Right, here in Oregon, things were so bad just in Feb., they didn’t KNOW where to set prices for dimensional lumber!?

I mean, they really didn’t! When there’s no bids..?

 
Comment by Rancher
2009-12-15 08:53:33

Bids? No one’s building. Down here there
is an nothing being built. NOTHING.

 
Comment by maplesucks
2009-12-15 09:44:39

To do so, however, unions need to stop their internal bloat and corruption.

Just like the greedy banksters and mgmt, the unions today exist only to maximize their own profits period. Who’s the greedy biatch now?

 
Comment by LehighValleyGuy
2009-12-15 10:08:41

unions need to stop their internal bloat and corruption, and expand their reach into white collar sectors.

You’re asking for the tooth fairy. Let me explain something. Work is supposed to be a voluntary exchange of time and effort for money. If workers are in a situation where they have no economic choice but to work in substandard conditions, then there has already been a severe distortion of the free market in labor. Introducing a union into the picture only adds a new bureaucracy and a new bunch of fat cats. True, existing workers may benefit from unions, but at the expense of freezing out more new people from the workforce.

The real answer is to do away with the distortions which gave too much power to corporate bosses in the first place.

 
Comment by In Montana
2009-12-15 10:09:10

“Just maybe, it has something to do with too much supply and lack of demand”

That, and the converse too, as it needed chips from other mills and loggers who do cleanup and I think they were having trouble getting those the way they used to.

Plus Missoula is not a good location for shipping anymore if you’re not using the railroads.

 
Comment by DD
2009-12-15 10:48:53

The real answer is to do away with the distortions which gave too much power to corporate bosses in the first place.
And Safety concerns.

Also to Montana’s comment,

shipping anymore if you’re not using the railroads.

This speaks directly to one of our issues and getting infrastructure up to modern standards. Why is Germany/France excelling at Mass transit via high speed railways? and we are “the biggest and best country in the world” puff puff, and yet we are so behind the curve with all our corporate buffoonery?
Corps and lobbyists for corps would rather spend a buck on SPA trips than into making SURE we are indeed the biggest and best.

 
Comment by ET-Chicago
2009-12-15 10:54:24

Let me explain something.

Let me explain something.

Your onanistic free market wet dreams gave us innovations such as child labor, unsafe factories, and seven day work weeks. The modern conventions of the workplace — things we largely take for granted — were brought about for all workers because of the unions’ power in an earlier era. The almighty invisible hand doesn’t look out for the little guy. It will not in the future.

Do serious issues exist with unions? Of course; I’ve never claimed otherwise. But unions have had and can continue to have a vital role in balancing out the corporate urge toward profit-at-all-costs.

 
Comment by chilidoggg
2009-12-15 11:51:38

I’ve come to the conclusion that the existence of unions is a sypmtom of a larger cancer, that being the oversupply of unskilled labor, forced upon the citizens by an aristocracy that allows too much immigration and too little and too expensive education. The purpose of unions is to artificially withhold the supply of labor. Certainly someone has to get the minerals out of the ground; it should be prohibited from being anyone’s livelihood. And before anyone starts screaming about collectivism and Fidel’s marching everyone out to the sugar cane fields, there can be a middle ground. Maybe high school graduates can work in the mines for a year or two and then get a full scholarship for two year technical training, and then maybe they’ll be able to MAINTAIN the machines that other persons, educated in something other than liberal arts, DESIGN so that the process becomes less inhumane. Or we could just outright buy slaves. I prefer the former.

 
Comment by DD
2009-12-15 13:38:14

well, chili give up your credit, your ownership of property, your 5 day work week, your safe working conditions, your 8 hr work day, your insurance, holidays, weekends off, and so on.
Give em up, Go tell your employer (unless it is you) that you will work straight through and by the way, tell the employer that lighting and heat or ac isn’t important to you either. Nor is ventilation.

 
Comment by Al
2009-12-15 14:17:54

“The almighty invisible hand doesn’t look out for the little guy. It will not in the future.”

Unions can only be successful when the invisible hand is working in their favour. If workers aren’t receiving benefits (wages, work conditions, etc) in keeping with the market, then they can organize to rectify the imbalance. If the benefits are already in line with the market, then any success in negotiations will cost jobs in the long run. The invisible hand always works, we just don’t always like the outcomes.

 
Comment by michael
2009-12-15 14:23:05

“well, chili give up your credit, your ownership of property, your 5 day work week, your safe working conditions, your 8 hr work day, your insurance, holidays, weekends off, and so on.
Give em up, Go tell your employer (unless it is you) that you will work straight through and by the way, tell the employer that lighting and heat or ac isn’t important to you either. Nor is ventilation.”

unions are like the pedahpile priest…let’s forgive him for all the good he has done.

not.

 
Comment by DinOR
2009-12-15 15:05:30

“Nor is ventilation”

Oh come on now guys, please, just stop.

Besides, not 6 months ago we were forming a “jumping in” circle to kick the living tar out of FB’s and Loanowners ( which is what they were known as at the time ) and all of a sudden everyone wants to The Amurrrikan Worker’s Hero?

Please, stop, it’s embarrassing.

 
Comment by DD
2009-12-15 15:38:59

unions are like the pedahpile priest…let’s forgive him for all the good he has done.

not.

Really? that is what you got?

 
Comment by alpha-sloth
2009-12-15 16:04:04

Please, stop, it’s embarrassing

I agree. The ‘unions never done nothin good ever’ knuckleheads are embarassing. I guess that’s what happens when you learn history from Rush.

 
Comment by alpha-sloth
2009-12-15 16:06:26

r (dammit)

 
Comment by ET-Chicago
2009-12-15 16:24:42

The invisible hand always works, we just don’t always like the outcomes.

I agree that the invisible hand should always work for some interested party.

When the rules are stacked against so many, however, is it even fair to say the invisible hand can operate effectively?

 
 
 
 
Comment by edgewaterjohn
2009-12-15 08:49:53

I wonder how much this might an action in response to the high fuel prices witnessed last summer? The timing is horrible for the workers, but this might be evidence of the ongoing damage caused by the ongoing oil games.

From the article:

“At times, those materials were hauled in from the Midwest, and then hauled out again to distribution centers.”

“The locational advantage of this particular plant has been diminished over time,” Swanson said.

 
Comment by Carlos4
2009-12-15 09:28:29

Im sorry to have to say it, but it looks like what we in the Midwest went thru in the 80’s and 90’s, giving us the rust belt tag. I guess we’ll have to start calling Northern timber country the sawdust belt. Not to worry, though, there is life after $25/hr employment. It just takes some adjustment.

 
Comment by GrizzlyBear
2009-12-15 13:29:27

Same thing is happening all over WA and OR. In fact, the unemployment numbers just cam out for Lewis County, WA, and they rocketed up from 11.9% to 14.1% month over month. That’s a HUGE increase, especially given seasonal hiring, and only .1% less than the recession high of 14.2% last March. Contrary to what all the Eddies of the world like to parrot, this recession is showing no signs of waning.

Comment by DinOR
2009-12-15 15:11:30

Grizz,

Not to mention outlying counties where it’s even worse! Deschutes, Klamath, Jackson.

As I mentioned late last week, it just seems to come w/ the turf up here? I can’t ‘tell’ what it was like when I got out of the service in 1989 up here. Truly awful.

So what in creation gave any realtwhore’s economist the powder to say it’d be different this time in the PNW? Certainly no ‘assertion’ I have ever made? It’s -always- worse here.

 
 
 
Comment by REhobbyist
2009-12-15 06:39:34

Hi all. I was just perusing a thread from two days ago. I criticized Peter Schiff for schilling gold. Sammy and Bill defended Schiff because he has always pushed gold. I disagree with their view. If Schiff is peddling gold at $1200/ounce, he knows that people who buy it are very likely to lose money,even though he predicts that gold will hit $5000/ounce. This makes him no different than house or MBS salesmen in 2005, who, all on this blog agree, were thieves, but who truly believed that houses would go up forever.

I wouldn’t vote for someone who cares more about lining his own pockets than taking care of his constitutents.

Comment by Brett
2009-12-15 06:53:26

5000 for gold?????? How about silver?
For the first time I hate my ancestors…

 
Comment by michael
2009-12-15 07:58:57

go to itulip dot com and check out their latest case for gold.

interesting read.

Comment by michael
2009-12-15 08:11:54

Asylum Markets of the post FIRE Economy – Part I: Locked Up

 
 
Comment by DinOR
2009-12-15 08:44:11

REhobbyist,

Your point is not lost one ‘me’ sir! I CALLED Peter’s office earlier this year ( when the Dow was around 7k ) and at length, his wholesaler admitted that, (yes) even Peter was underwater on his positions!

So… if bears can’t make money in ‘this’ market ( WhenTF ‘can’ they!? ) Again, trading (1) Bubble for another.

 
Comment by mariner22
2009-12-15 08:48:12

First, Peter Schiff gives you his advice for free - if you want to buy gold you can go to a local coin shop (Schiff still doesn’t sell coins), open an account at Schwab and buy GLD/IAU, DGP or whatever, open a goldmoney account or go to the Perth mint (among other options). If you want Schiff to buy you gold at the Perth Mint he will charge you 3% (one time, no storage fee for non-segregated gold at the Perth Mint). There is nothing unreasonable about these fees - he isn’t charging 2% yearly + 20% upside like some hedge fund crook.

Second, If you believe in the value of the US dollar as we continue to print trillions to pay for deficit spending then just hold cash. As David Walker (former GAO head under Bush) has repeatedly stated we are headed for a much worse nightmare in the future due to unfunded liabilities - I am not optimistic the American electorate will make the hard choices to cut spending we cannot afford - we will just print money and let the chips fall where they may.

Right now we take advantage of the dollar being the world’s reserve currency AND fear of the world’s economy going into the toilet, so foreigners continue to buy our debt. That will not last and there is already evidence (last week’s 30 year auction) demand is going away.

Unfortunately, there is a fine line between the world’s fiat currencies going bust and a Mad Max world where only guns and canned foods have value. I have bought gold in the event we do not cross it.

Comment by DinOR
2009-12-15 09:52:23

mariner22,

You might be missing the bigger picture here, at least where Peter is concerned. He can and ‘does’ charge ongoing fees if you open an account w/ EuroPac.

Do any of us really need to pay ongoing fees to lose money on an ongoing basis? My point was that, even w/ an economic meltdown at his back ( as a bear ) he was -still- losing client’s money. Didn’t want to get into Mad Max scenarios ( as we often ‘do’ here? )

Comment by mariner22
2009-12-15 10:58:17

DinOR -

I have no idea where your information about ongoing fees comes from. I can attest from first hand experience, there are no ongoing Perth Mint fees - you pay Schiff 3% to buy gold/silver/platinum and storage is free. You do have to pay a smaller commision when you sell.

I also have brokerage experience with Peter - you put money thru Pershing, and his brokerage surrogate sends you (or you can talk over the phone) the recommended foreign stock list. You pick, pay a commission for buy/sells, no ongoing fee. I actually would perfer a managed stock account where you do pay a 1% fee because it is difficult to judge when to sell a stock and buy something else, but as of right now there are no managed stock accounts other than his China Mutual fund.

I wasn’t convinced on his buy foreign stocks - “decoupling” during the crisis, however, he has been right about everything else so I funded a brokerage account early this year and obviously the returns have been spectacular. If we get the double dip that I expect I doubt foreign stocks will be untouched. On the other hand, if we get Schiff’s hyperinflation, holding lots of US dollars isn’t going to work either. Diversification is important as well as safety when targeting investments in the coming storm (assuming you don’t buy the optimists scenario that all will be fine….).

(Comments wont nest below this level)
Comment by DinOR
2009-12-15 13:15:20

mariner22,

Actually I spoke w/ them early this year and… a LOT of mgrs. have been forced to alter their fee structure so you may well be right?

Personally I think it’s great that he’s been able to turn things around but going off of 2008, it was as much a disaster for him as it was for anyone else in the biz.

My main reservation is that he ( like his father Irwin ) go about things w/ such a sense of conviction. They have a tendency to see what they ‘want’ to see! If you’ll recall his father was one of the great all-time tax evaders and he went to prison for it. Not ‘that’ is conviction!

 
Comment by DD
2009-12-15 13:42:40

They have a tendency to see what they ‘want’ to see!

Which goes so well with the Above dialogue prior to this.

 
 
 
 
 
Comment by Leaving Ohio
2009-12-15 06:45:30

More MSM coverage of the “new normal” in today’s NYT:

Poll Reveals Trauma of Joblessness in U.S.

More than half of the nation’s unemployed workers have borrowed money from friends or relatives since losing their jobs. An equal number have cut back on doctor visits or medical treatments because they are out of work.

Almost half have suffered from depression or anxiety. About 4 in 10 parents have noticed behavioral changes in their children that they attribute to their difficulties in finding work.

Roughly half of the respondents described the recession as a hardship that had caused fundamental changes in their lives.

Comment by Brett
2009-12-15 06:50:36

I lent money to a good friend of mine earlier this year; she coulnd’t find a job immediately after graduation with a master’s in public policy and criminal justice… almost everyone said she was overqualified… she never paid me back

Comment by combotechie
2009-12-15 07:23:15

Er, perhaps the reason she didn’t pay you back is because she couldn’t get a job.

Comment by robin
2009-12-15 18:51:31

+1

(Comments wont nest below this level)
 
 
Comment by Eddie
2009-12-15 07:28:37

A good rule of thumb is this…

If you lend money to anyone with a master’s in English, History, PoliSci, Philosohpy or Public Policy and Criminal Justice…..you ain’t gettin’ your money back. Ever. Not because the person doesn’t want to pay you back. But because working for $7.50 at Starbucks is the ceiling of their career advancement.

Comment by Brett
2009-12-15 07:34:31

She ended up getting a job finally a couple of months ago, but I feel bad asking for the money back…
Although I couldn’t imagine borrowing money from somebody and not paying back… I would feel bad about it… Some people don’t care about stuff like that, which I do not understand

(Comments wont nest below this level)
Comment by drumminj
2009-12-15 07:51:13

but I feel bad asking for the money back…

In conversation, just ask if her finances are looking better than the were XXX months ago (when you loaned it to her). Hopefully she’ll get the hint. If not, you can press the issue, and ask when she thinks she’ll be in a position to pay you back.

It’s been said many times on this blog, but lending money to friends/family usually is a bad idea. It’s best to simply treat it as a gift, and be pleasantly surprised if you are paid back.

 
Comment by combotechie
2009-12-15 07:55:08

“… but I feel bad about asking for the money back.”

You need to get past this feeling if you want your money.

“I lent money to a good friend of mine earlier this year…”

A good friend would pay you back.

 
Comment by combotechie
2009-12-15 07:57:40

“When someone shows you who they are, believe them the first time.” - Maya Angelou

 
Comment by michael
2009-12-15 08:15:07

i never loan friends money…i just give it to them.

 
Comment by Captain Credit Crunch
2009-12-15 08:30:03

Ask for something other than money ;)

 
Comment by DinOR
2009-12-15 08:48:07

Captain Credit Crunch,

Don’t laugh. There’s been an investigation ( again on Craigslist ) of opportunists preying on vulnerable women in a sex for rent scam.

I ‘did’ think though that drumminj’s “XXX months ago” comment was something of a Freudian slip though?

 
 
Comment by iftheshoefits
2009-12-15 08:24:28

A better rule of thumb is, when you lend money personally to anyone, treat it as a gift. Don’t say as much to the recipient, because they will feel personally affronted. But don’t ever expect it back, because you’ll most likely never receive it back. That way you won’t be disappointed. If you expect that you’re really going to need the money at some point, then don’t lend it in the first place.

This applies no matter how rich or poor or moral/amoral or whatever the recipient is.

(Comments wont nest below this level)
Comment by DinOR
2009-12-15 08:51:05

iftheshoefits,

Same goes for relatives. I will say though that one of our best friends had their car broke into while visiting their in-laws in the nicest part of town.

As usual they didn’t intend to stay long so she left her purse in the car ( locked ) and came out to a smashed window! We’re passing the hat for them but truthfully, they’ve done so much for US over the years, I just hope we can salvage their Christmas, that’s all.

 
Comment by aNYCdj
2009-12-15 09:12:14

DinOR

I will never understand why people dont get full glass ocverage on cars…its cheap and all you need is one claim like this every 10 years and it pays for itself…

plus criminals seem to know you are broke when they smash your window.

 
Comment by DinOR
2009-12-15 10:18:52

“criminals seem to know you are broke”

LOL, spoken like a true New Yorker! She had the Xmas $’s in her purse ( about $300 ) but what really hurt was she had her SS card and DL in there too!

 
Comment by aNYCdj
2009-12-15 11:18:05

To this day I NEVER understood why anyone would carry a SS card with them.

Even when i apply for jobs i don’t bring it… i guard it with my life…when i do bring it its usually in a vinyl zippered bag with my papers, some fresh donuts and a soda hangin out in it …..never in my wallet

 
Comment by alpha-sloth
2009-12-15 16:12:33

Muggers don’t take fresh donuts?

 
 
Comment by lavi d
2009-12-15 11:43:30

…. anyone with a master’s in English, History, PoliSci, Philosohpy or Public Policy and Criminal Justice…working for $7.50 at Starbucks is the ceiling of their career advancement.

Chuckle

(Comments wont nest below this level)
 
Comment by robin
2009-12-15 18:54:02

Article in the LA Times recently by a newly-minted BA in Political Science. Last two years put forth 600 applications. Two responses, one interview. No job.

(Comments wont nest below this level)
 
 
Comment by 2banana
2009-12-15 07:47:08

Maybe she thought you were an obama stimulus project…

 
Comment by Lion-O
2009-12-15 11:58:20

I had a couple friends not pay me back. Now my excuse when someone else asks is…I’m waiting on a couple loans to friends to be payed back. As soon as they are, the money is free for you.

 
 
Comment by REhobbyist
2009-12-15 07:04:24

That’s our experience. My husband and I have recession-proof jobs and money saved. Over the past year I have paid college tuition for two kids (not my own), provided housing for a sister and health insurance for some relatives. In 2010 we will add another college kid (a nephew). I’ve postponed my planned retirement until 2011. My main regret is that it’s not tax-deductible. My secondary regret is that work keeps me from spending more time on the HBB!

Comment by drumminj
2009-12-15 07:52:38

In 2010 we will add another college kid (a nephew).

Will you adopt me? ;)

 
Comment by DinOR
2009-12-15 08:53:48

REhobbyist,

Sounds OH… so familiar. Sadly neither the wife nor I have RP jobs but… You keep wondering where the “relief” is going to come from? We’ve helped so many people over the years you just kind of wonder if the “pay off” isn’t in the next life?

God love you btw.

 
 
Comment by measton
2009-12-15 10:12:31

An equal number have cut back on doctor visits or medical treatments because they are out of work.

Sounds like cutting back on Starbucks, no problem.

 
 
Comment by Brett
2009-12-15 06:45:38

Walking home after having brunch on Sunday, I stopped by an open house of new condos (Spring Tower) in downtown Austin, which is near the lake. Some beautiful views of the Texas Capitol, Town Lake, Texas Country, University of Texas Tower, etc…
However, the units are SMALL…
1 bedroom units start at around 565sq ft in the mid 200s to low 300s
Larger one bedroom units (~700 sq ft) go anywhere between low 300s to low 400s
38 (or maybe 32) cents per square foot in HOA fees per month
All units have stackable washer and drier units… Why would anyone pay over a million dollar for the 3 bedroom units and end up with stackable washer and driers??????
The salesperson tried to hook up with their preferred bank who performs almost transactions to explore financing options
Oh yeah! He also wanted me to take advantage of the great 8k first-time homebuyer credit!!!!
He even talked about short-term appreciation of the units and what a great deal I would get…

Comment by packman
2009-12-15 07:09:36

We still have quite a ways to go, especially given all the reflation efforts. Seems like Austin is behind the curve by quite a bit?

I remember in about 2000 seeing condos in San Fran going for $700+k. I remember thinking how insane *that* was at the time - for anything other than penthouse suites to go for that much. And that was San Fran - a small peninsuala, in a fairly desirable area, and in the early stages of the bubble. Those probably ended up going for 1.3M+ during the peak I’ll bet.

I can’t fathom that much for condos in Austin. Sorry - I know Austin’s a neat place, but it’s not exactly an island or something. It’s Texas - y’know - land of the wide open plains and such. There’s no shortage of land there.

Comment by Brwtt
2009-12-15 07:24:05

The Spring is not the most expensive condo development. They are in the process of completing The W, Four Seasons residences and The Austonian, which has over 100 units that are over 1M. It’s huge!!! 60 stories or so…”Also, it is the tallest all residential building west of the Mississippi.”

 
Comment by ET-Chicago
2009-12-15 08:03:06

I can’t fathom that much for condos in Austin. Sorry - I know Austin’s a neat place, but it’s not exactly an island or something.

Austin’s a great town, but I’m somewhat surprised that condos ever reached those prices, never mind condos still floating in that range (wishing prices or no).

Comment by Brett
2009-12-15 08:14:25

This is what the Real Estate community says about downtown Austin:

“In summary, while it remains a buyer’s market — fundamentals suggest that the market may be nearing an inflection point. For units priced below $500,000, it’s probably a good time to take a deal. For units over $500K, and especially units over $1,000,000, idiosyncrasies in the jumbo loan market and reduced demand will create buying opportunities for a while to come. But sometime in the next 12-18 months, it likely that the downtown Austin condo market will sell out completely. “

(Comments wont nest below this level)
Comment by ET-Chicago
2009-12-15 08:35:59

But sometime in the next 12-18 months, it likely that the downtown Austin condo market will sell out completely.

To which I say: Come look at the once highly touted downtown Chicago condo market, the place where every Midwesterner without a chaw in his mouth allegedly wants to live.

The sales have dried up, and there’s six years of unsold new condo inventory downtown (source: Crain’s Chicago), nevermind all the “pre-owned” stuff.

 
Comment by DD
2009-12-15 13:46:09

nearing an inflection point

Is that what you do in a church.. oh excuuuuse me, genuflection, Which just might be the same thing!

 
 
Comment by Skip
2009-12-15 08:32:08

I was in Austin this past summer and it seemed like everyone I met had moved there from California.

(Comments wont nest below this level)
 
 
 
Comment by Eddie
2009-12-15 07:16:30

Putting aside the price of the condos….explain to me why stack able w/d is a bad thing. I know we’re all supposed to hate stainless steel because it’s a symbol of excess or something. But I didn’t get the memo about stackable w/d units.

Comment by Brwtt
2009-12-15 07:26:26

Small loads!!! I had stackable when it college, and you spend more time doing laundry b/c of reduced capacity… Full-size is the way to go!!!

Comment by Kim
2009-12-15 07:55:47

Whirlpool Duet is full size and stackable.

(Comments wont nest below this level)
 
 
Comment by wmbz
2009-12-15 07:34:41

“But I didn’t get the memo about stackable w/d units”.

Nor do I, they make perfect sense in many applications. I have had them before. My 82 year old mother has a full size stack-able simply because she has to do no bending over to load or unload the dryer.

Comment by Brett
2009-12-15 07:39:24

You need to see how tinny their ’stackable’ units are… It’s not the fact that they are stackable, it’s the fac that they are very small….

(Comments wont nest below this level)
Comment by wmbz
2009-12-15 08:08:41

I have only had the full sized, but very familiar with the small ones. Their size is only suited for perhaps one or two people in cramped quarters.

 
 
 
Comment by pressboardbox
2009-12-15 07:37:53

I never am able to reach the controls of the washing machine whenever I stack the dryer on top of it.

Comment by DD
2009-12-15 13:47:42

Foot stool.

(Comments wont nest below this level)
 
Comment by alpha-sloth
2009-12-15 16:16:07

I had the same problem when I tried to stack my refrigerator and stove.

(Comments wont nest below this level)
Comment by Left LA
2009-12-15 21:07:01

LOL

 
 
 
Comment by Skip
2009-12-15 08:27:52

Those are nothing compared to the combination washer/dryers you find in Europe.

Comment by oxide
2009-12-15 08:43:11

I’ve only been to Europe once, and I’m curious. How do Europeans cope with smaller washers? Do they just spend more time doing laundry? Are there more places to contract laundry out? Servants? Do they wear the same clothes 3-4 times before washing them? Or do they just have a less varied wardrobe? I have the same types of questions about tiny kitchens. I guess they live the same lifestyle as Manhattan.

[I once knew a guy whose entire wardrobe consisted of 6 pairs of jeans and 30 white undershirts, plus socks/undies. He just wore the same thing every day. Oh, and he worked out, which is why he could get away with an unvaried wardrobe. He did have two button-down shirts if he needed to dress up.]

(Comments wont nest below this level)
Comment by Skip
2009-12-15 11:33:31

My friend I stayed with started a load every morning before she left for work.

 
Comment by oxide
2009-12-15 11:59:42

A ha, thank you Skip. It’s nice to get some new information. Sounds like the Manhattan plan. Few people in Manhattan truly cook. They just go to the deli.

 
Comment by Elanor
2009-12-15 12:51:37

I rented an apartment in Rome that had a washer and dryer. The dryer was not vented. There was a bin to collect the extracted water that had to be emptied after every load. We were just glad to avoid laundromats and didn’t mind washing/drying smaller loads.

 
Comment by WHYoung
2009-12-15 13:30:06

My European friends (Germany) have a large condo with a utility room but only have a small Italian front loader washer, NO dryer even though they could easily afford one. When I mentioned a dryer, it wasn”t anywhere on their “wish list” as they considered it damaging to their clothes. They hang all laundry out to dry on those accordion like thingies. I know for sure they’ve owned some of the t-shirts they wear for 5+ years, and they still look great due to gentler handling.

They definitely have smaller wardrobes. They buy fewer but higher quality items than we tend to. If you ever browse in stores over there, except for places like H&M, you’ll see the prices are much higher. (Comparison shop imported brands… whew, a revelation, and the reason I always bring them Levis or similar for presents.)

Also, they aren’t the hard-core shoppers we are… shops in many places are open much more limited hours than we are used to (closed Sundays, few open evening hours, etc.). So if they have a day job there is less of an “opportunity” to shop. They make a big grocery / necessities trip every Saturday and buy at the green grocer, baker and butcher during the week.

 
Comment by alpha-sloth
2009-12-15 16:38:43

That’s interesting WHYoung, because i heard (NPR?) some guy saying that one of the problems with the european union operating as a single business entity was that it was so culturally dissimilar and he used as an example washing machines. He said that because Italians lived in smaller quarters and had smaller but nicer wardrobes, they preferred small front loaders and no dryers. However, Germans have larger dwellings and larger, more casual wardrobes (much like Americans he claimed), and therefore preferred full-sized washers and dryers.

Maybe your friends are nontypical? Or maybe the guy is full of it. (When I lived in London, I had a full-sized POS front-loader and a clothes line.)

 
Comment by WHYoung
2009-12-15 17:00:39

Not sure if my friends are unusual, but doubt it… their utility room is shared (because of the plumbing) by the co-owners and there was one washer for each unit but no dryers, even though other owners are families.

While I’m not doubting there is a market for dryers there, it was mostly the “why in the world would we ever want a dryer” attitude that stuck in my mind. When I first met him 20 years ago (as a grad student in the US) he kvetched about the lack of clothes lines in the student housing and thought that the dryers ruined his clothes.

I think Germans might be a bit more like us in some of their ways/tastes, partly because of the military bases there. The woman in this German couple grew up in a town, next to a big American AFB, that catered to our troops. Spent her childhood eating McD’s, going to English language movies, etc.

 
Comment by alpha-sloth
2009-12-15 17:57:15

Yeah, I don’t know, I’ve never spent enough time in Germany to get a feel for their washing machine situation and habits, just repeating what I heard. The guy may have been stretching to make a point. I’m sure he’s right in other ways, like I doubt the avg italian drinks the same beer/wine as the avg german, but that’s another topic.

 
Comment by WHYoung
2009-12-15 18:28:13

Agreed, different countries, different tastes, and not sure washer/dryer habits matter much…

My German friends use one of their storage rooms as a wine cellar, mostly full of Italian and French wines, but partly I think because they love reds and stocking up at the co-ops is also cheaper. On the road trip road trip I took with them last August, the car was full to bursting with French wines on the way back.

 
Comment by alpha-sloth
2009-12-15 20:14:38

Can I come visit your friends? :wink:

 
 
Comment by DinOR
2009-12-15 08:57:32

Skip,

I’ve never seen them ( but I’ll take your word on it! )

See, this is where we kind of get caught straddling issues. Unlike a lot of folks, my wife and I have made the commitment to “live small”. Lot of people here talk the talk but…

(Comments wont nest below this level)
 
Comment by Anon In DC
2009-12-15 21:36:15

The WSJ had an article recently that dryers just are not as big in Europe as in the US because of higher fuel cost. Also is n’t the washing that wears out the clothes not the drying ?

(Comments wont nest below this level)
 
 
Comment by iftheshoefits
2009-12-15 08:37:37

We have a stackable pair, full size. The washer failed in 4 years, and it’s just the two of us and we do 2-3 loads/week average. Fixing it would have cost more than replacing it as the entire drum mechanism went bad. It sounded like an airplane was taking off when it went into spin cycle.

We found out clearly through our maintenance mechanic, verified through a number of on-line discussion boards, that this is pretty much the way things are with the inexpensive front loaders. The drum hangs and it’s not naturally balanced. We were able to find a single replacement that matched our stacking bracket, but it’s not as nice a unit as the original.

Eddie, do you always intentionally try to bait people in everyday face-to-face conversations when you have a somewhat different point of view? I know it’s well established that people behave differently on-line, but this seems to come so naturally to you.

Comment by DinOR
2009-12-15 09:00:58

iftheshoefits,

And I can appreciate that. We had a front loader that was so loud in Spin you couldn’t hear the TV three rooms away. When it finally died a gruesome death, I couldn’t wait to get rid of it!

I’ve never gone the stacked route, our dinky condo isn’t set up for it in our dinky laundry room. It’s not even big enough to store dirty clothes until it’s their turn. Sucks.

(Comments wont nest below this level)
Comment by X-philly
2009-12-15 09:42:09

I had that situation, sounded like a freight train rolling through the living room when the washer went into spin cycle. I told my LL about it she raised hell with the guy from Sears when he came to look at it.
“Get that POS outta my apt. yadda yadda”.

Turns out it was a packaging bolt that hadn’t been removed by the DIY installers. It’s a stack unit, it’s OK for now but when I get me own place I’ve got my eyes on a beautiful side-by-side whirlpool rig. Oh yeah.

I’ve seen the washer-dryer in one unit jobs, but do not trust.

 
Comment by DinOR
2009-12-15 09:56:23

x-philly,

Exactly, and that ’should’ have been our cue? When you have to “brace” the damn thing just to move it ( presumably cuzz’ it’s so high-tech! ) it should have been a flag right there.

There are automotive size springs that suspend the whole thing w/ heavy duty ’shocks’ below to keep the whole drum free floating. We had problems w/ ours from Day 1.

 
Comment by Rancher
2009-12-15 12:31:30

We bought two full size stackables for the
pantry so my wife wouldn’t have to go down
stairs. Very efficient units and they have little bells that sound the cycles. They are so
quiet that you don’t even know they are running.

 
Comment by Chris M
2009-12-15 13:21:45

I love my water-wasting, non-European, full size top loader. There will never be a water shortage here in northern Illinois, so why should I care? Usually we have too much of the stuff actually. And fresh water keeps coming down from the sky, as this thing called rain. It’s truly baffling to me that people around here bother trying to conserve water with front loading washers. Penny wise, and pound foolish.

 
Comment by packman
2009-12-15 13:30:13

Two points Chris:
- Not all places are like Illinois. Some places actually *do* have occasional water shortages - like California - the most populated state in the country.
- That water has to be heated, so water isn’t the only resource you’re using more of.

 
Comment by DD
2009-12-15 13:50:18

And fresh water keeps coming down from the sky, as this thing called rain.

And Packman notes correctly, so far 1.6 “so far this yr..09.

Yet, 22 ” in NOL. Wow. Imagine that. whew.

 
Comment by Chris M
2009-12-15 15:24:55

Water shortages are a local problem. Yet the push for water conservation seems to be a national one. And people like my mom fall for it, and buy an expensive and unreliable washer to “do their part”. So much entertainment is produced in California, and their views tend to be desertocentric. I’ve even seen public service type announcements on kids’ channels like Nickelodeon. I have to re-educate my kids - there is no water shortage here! We don’t live in the desert. Don’t worry about it! How exactly does my water usage affect Californians 2000 miles away? All the water I use goes down the Mississippi, into the ocean, and eventually into the clouds to fall as rain again.

I concede the point about hot water. Yes my washer does use more energy that way. I am actually pretty conservative about the hot water. I try to run the washer on “cold”, and I turn off the shower while I soap up. I also get on my kids’ case, since otherwise they’ll just stand in the shower for 15 minutes. I tell them to just fill up the tub if they want to soak in the hot water. When they’re done, I leave the tub full for a few hours, to transfer all that heat energy to the air in my house.

Natural gas really is a limited resource. And it’s the best source of heat for residences. Yet California wastes huge amounts of it on electric power generation. I guess because they’re too touchy for coal or nuclear. This does affect me, since there will be that much less fuel for heating when it’s -10F outside here.

 
 
Comment by In Montana
2009-12-15 10:28:46

So how inexpensive are you talking about? My hubby is jonesing for those fancy frontloaders but they seem to be 800-1000 each and it would take a long time to make up all the money we’d supposedly save. We have well water anyway so I’m not sure where the savings re.

(Comments wont nest below this level)
Comment by iftheshoefits
2009-12-15 12:01:31

It was a Sears Kenmore, in the $500 range on sale.

We really like the stackable/front loaders in concept, very space efficient and water and energy miserly. But if you need a new one every 4-5 years, not very sustainable, is it?

 
Comment by Stpn2me
2009-12-15 12:21:04

I just bought DW a washer and dryer in the Kenmore Elite series. I am almost ashamed how much I paid, but they are nice. They play a little song for you when they are done and you can steam clean and actually hang clothes in the dryer! I have to buy detergent with the “HE” on the box though…

Best money I ever spent…

 
Comment by Rancher
2009-12-15 12:33:53

Normal washers use between 30-40 gallons a wash cycle, the new efficient ones use 7. Our
units cost about $2,600 and it’s worth it for me since my wife loves them….We’re on a well too, with water that’s the best we’ve ever tasted.

 
Comment by X-philly
2009-12-15 13:00:20

Which brand?

I was looking at Whirlpool and LG

 
Comment by Rancher
2009-12-15 14:34:07

LG with the optional SS insides, well worth
the money. Compared to old style washers
and dryers, these units are from Star Wars.

They are so quiet that I didn’t even know they
were on when I was right next to the door to
the pantry.

 
Comment by VaBeyatch in Virginia Beach
2009-12-15 15:29:32

I was thinking I’d look for front loaders that you find in a laundromat. Just not sure if the dryers share a heat source? Figure they would last forever in a home environment.

 
Comment by robin
2009-12-15 19:07:45

Frigidaire Gallery SS Washer and non-SS Dryer bought over 5 years ago. Energy Star, quiet, low energy usage, reliable. We recommend!

 
 
 
 
 
Comment by REhobbyist
2009-12-15 06:54:57

I’m seeing houses on the MLS lately that were foreclosed and resold off the MLS earlier this year and are now being flipped. Looks like some agents have a pipeline to buy foreclosures before they reach the market. They get them at rock bottom prices, do a little cosmesis, and list them. And there’s no MLS history. The only way to track them is to look up the mortgage history.

This is bad because they raise the comps. Sheesh.

I was hoping to buy another foreclosure this winter. But so far, in my town (Sacramento) foreclosures are priced higher than they were a year ago. I might have to wait another year.

Comment by exeter
2009-12-15 07:04:44

Cosmesis. I like it.

 
Comment by arizonadude
2009-12-15 07:08:25

Now the euphoria is coming back into the market.FHA, 8000 credit and boom you have another bubble coming on.I dont know how this will all end but sales are picking up from what I have seen.People are rushing in thinking we have hit bottom.

Comment by oxide
2009-12-15 07:41:00

Last night on the PBS Newshour, they spoke to Steve Bartlett of the Business Roundtable. Here’s a fun exchange:

————
JUDY WOODRUFF: President Obama in that “60 Minutes” interview used the term fat cat bankers. He said: I didn’t run for office to help people like that out. How do you and others in the banking industry respond?

STEVE BARTLETT: Well, let me just say that name-calling never really improves good communication, so I will just leave it at that.

JW: But, I mean, does that improve, do you think, the ability to get this problem resolved?

STEVE BARTLETT: Well, the best way to solve these public problems — and we’re all in it together. We agree with the president on the need for more loans. We have suggested some ways that the government can do better and that we can do better.

And — but, mainly, it’s about the economy. So, as the economy improves, we will make more loans. But, you know, sort of public — good communication is never helped by calling names, and so I won’t.
——–

Am I detecting a hint of arrogance on the part of the banks?

I know I joke about a “public option” bank, but to this semi-liberal it’s sounding more and more like a good idea. The government is backing up consumer credit of every kind these days: FHA loans, small business loans, student loans*, even FDIC deposits. And yet for each, the government contracts out the actual servicing to private companies. If it weren’t for the government backing, the private businesses would have a lot less loan business, and they’d have no mortgage business at all? Why let the private companies take their skim off the public dime? Just apply directly with the government.

And if the banks whine about “government takeover,” well then the banks can back up their own damn loans. Might make them think twice about whom they lend to.

——-
*Student loans were public. Bush privatized them, Obama is currently returning them to public. Rush calls that a “government takeover” of the student loan industry.

Comment by oxide
2009-12-15 07:54:03

oops, this was supposed to be a separate comment, my bad.

btw, here’s the link to PBS: pbsdotorg/newshour/bb/business/july-dec09/bartlett_12-14.html

(Comments wont nest below this level)
Comment by Hwy50ina49Dodge
2009-12-15 13:29:07

Tankxs! ;-)

 
 
Comment by packman
2009-12-15 08:00:10

So, as the economy improves, we will make more loans.

There we go - back to that again.

“Good economy” = “more debt” is constantly programmed into our heads by the PTB.

(Comments wont nest below this level)
Comment by DinOR
2009-12-15 10:03:23

packman,

That lept out at me too. Should read: “As our… comfort level w/ risk increases and the coast is clear, we’ll ‘think’ about taking our heads out of the sand!”

Until then..?

Well, where’s the help in that? Talk about Sunshine Soldiers.

 
 
Comment by Housing Wizard
2009-12-15 09:09:53

Who ever comes up with the money should call the shots in my
book . Oxide ,I agree with you and I have often thought that
in light of the Government’s role in lending these days that allow
Banks and investment Houses to make a commission again ,without taking on the risk ,those banks shouldn’t be complaining .
But if people really knew all the wheeling and dealing that is done
where the Government is used as the fall guy ,they would be outraged ,

Wall Street looks at the little pawns of people like little ants that are there
to feed their money bags ,and likewise the Government
coffers are there for them . I thought welfare was for the down and out ,not keeping unfair profit margins for
Wall Street /Banks /Corporations/,Insurance Companies /REIC.

(Comments wont nest below this level)
 
Comment by LehighValleyGuy
2009-12-15 09:23:07

I know I joke about a “public option” bank, but to this semi-liberal it’s sounding more and more like a good idea. The government is backing up consumer credit of every kind these days…

You’ve identified the problem, but as with health care, “public option” goes in the wrong direction. An industry is screwed up because of government meddling? Well then, let the government take over the whole thing! Bzzt, try again.

And if the banks whine about “government takeover,” well then the banks can back up their own damn loans. Might make them think twice about whom they lend to.

NOW you’re talking sense.

(Comments wont nest below this level)
Comment by Eddie
2009-12-15 10:52:43

Bank of Obama, fully unionized of course. Business hours 10-2 on weekdays with a 45 minute lunch for all at 11:30. Closed weekends, customer support lines available 9-3 M-Thurs. All with the warmth and customer service found at the post office.

Will lend to anyone with a pulse. If you can pay the money back, great, if not, don[t worry about it, we have a a $100 bill printing press in the back and can cover it.

Make $15K a year but want an Escalade? No problem, you’re approved!!

On welfare and need a new iPhone? Here’s your “loan” wink, wink, nudge, nudge.

Unemployed with no desire to get a job and need a $750K mortgage? Here’s your contract. Congratulations home owner, here are the keys to your sweet new pad. And hey, again if you can’t pay us back…printing machine.

 
Comment by Rental Watch
2009-12-15 15:36:28

“Too Big to Fail” should not exist. If you are that big, then the government should be all over you in terms of regulation, so much so that there will be an incentive to break up big companies.

If you are smaller, you are on your own.

 
Comment by aNYCdj
2009-12-15 21:23:21

Hey Eddie YOU worked at Chase Manhattan Bank in the early 90’s….????? Sounds exactly like them

——————————————
Bank of Obama, fully unionized of course. Business hours 10-2 on weekdays with a 45 minute lunch for all at 11:30. Closed weekends, customer support lines available 9-3 M-Thurs. All with the warmth and customer service found at the post office.

 
 
Comment by Blue Skye
2009-12-15 09:32:29

“Might make them think twice about whom they lend to.”

Apparently that is what they are doing and that is what the complaint is.

My impression is less arrogance on the banker side and more lack of credibility on the White House side. HAHA, he has spent his whole admin so far supporting the bankers.

Just farting noises.

(Comments wont nest below this level)
Comment by oxide
2009-12-15 11:36:24

It’s not really Obama’s credibility that’s the problem. The President’s agenda has been sidelined mainly by 1)too-big-to-fail and 2)4-5 backstabbing Senators. And that’s really all. If he can survive this, he’ll be looking very good by 2012.

 
Comment by DinOR
2009-12-15 13:22:19

oxide,

Maybe that’s half the problem? Stop worrying about a second term and knuckle under w/ what it’s going to take to get us to Friday!

You’ll recall while I’ve never really subscribed to “the… failed… policies… of… the… LAST… eight… years..,” ( I’ve certainly not blamed B.O for the current debacle in the slightest? )

I don’t think any of us can afford to the luxury of thinking passed our next paycheck, right now anyway. If he’s the wonder kid he ran on, four years should be ample.

 
Comment by DD
2009-12-15 15:42:53

four years should be ample.

Depends on how many he has gunning against him/policies ala lie berman etc and every other NOrepublican, as well as the spineless Dino’s dems in name only.
Not saying I am pleased, but listening to some in this new crowd of faux noise listeners, they would throw their mother into the fire at first instance.

 
 
Comment by ahansen
2009-12-15 10:13:09

I watched this interview last night with my jaw on the floor. The guy was beyond arrogant in both his demeanor and his tone. Smug, stuffed, it seemed he was making a conscious effort not to sneer as he lectured the producers about the definition of “capital” and criticized the audience for our “ignorance of economic reality.” Even his talking points were pompous.

Judy Woodruff did an admirable job of restraining her right hand–I would have hauled off and smacked him a good on right there on national TV.

(Comments wont nest below this level)
Comment by Bill in Carolina
2009-12-15 10:35:19

I’m picturing Alice from the Dilbert cartoon strip saying, “Must…control…fist…of…death!”

 
Comment by oxide
2009-12-15 11:31:13

Oh, i was the same way alena. By the way, the link I posted above has both the transcript and the video, so you can see arrogance in action.

You know, I really hope that Obama or one of his staff his listening to this. I guess I’m not a nice person, because I want this attitude to be punished, and hard.

 
Comment by GrizzlyBear
2009-12-15 14:24:31

I don’t understand why anchors don’t get some balls and ask “is the smug attitude and contempt for the average citizen a prerequisite for furthering one’s career as a banker?”

 
Comment by obamanator
2009-12-15 14:33:12

It’s always about ME with Barry. Only HE can save the world. It’s all Bush’s fault. The man has lied and broken every campaign promise. It’s the Chicago way of politics.

Did you hear him today? Just pass SOMETHING to save HIS Presidency. Just cut deals to get it done. Screw the fact that 61% of us don’t want this. Screw the fact that this bill is pure fantasy and will end ruin our healthcare system. Screw the fact that is does nothing about tort reform or reducing healthcare costs by allowing interstate choice. Screw the fact that he wants to cut a minimum of half a trillion from medicare. Screw the fact that he knows he is playing accounting games with putting off the benefits for years while starting the taxes now.

Screw the fact the deficit is going up 2 trillion dollars a year.

Where’s the CHANGE?

 
Comment by GrizzlyBear
2009-12-15 15:45:13

“Screw the fact that 61% of us don’t want this.”

Link, please. I call horsesh!t on this statement.

 
Comment by oxide
2009-12-15 17:10:30

You’re a little fuzzy on who those 61% are.

 
Comment by DD
2009-12-15 18:18:33

Maybe 61% of those elected, but those #s don’t jibe with all of American citizenry, especially those w/o jobs.

 
 
Comment by measton
2009-12-15 10:20:36

+1

The public private partnership no matter where it is applied is nothing more than a wealth stripping machine.

Medicare Advantage costs US gov 14% more than Medicare

Banks make all the profits and give tax payers the risk/losses when the SHTF

Mercinaries and contractors over charge gov, gov and military heads then rotate onto boards of said mercinary companies.

We need one or the other, completely private with no backing or a completely gov option to compete with private banks.

(Comments wont nest below this level)
 
Comment by Wee Willy
2009-12-15 10:37:13

In Ontario student loans are a mixture of government and private loans. If a particular college has a default rate on government loans exceeding 30% that college must make up the difference to bring the default amount down to 30% That makes colleges much more selective about which students receive government loans.

(Comments wont nest below this level)
 
Comment by Hwy50ina49Dodge
2009-12-15 13:22:03

“…Well, let me just say that name-calling never really improves good communication, so I will just leave it at that.” :-)

Bugs: “eh, really Doc, because I was “all ears” when exeter said:

“I’ve never seen such a raft of limpwristed squealing in all my life.”

(Comments wont nest below this level)
 
Comment by tresho
2009-12-15 13:56:51

That Newshour interview makes Steve Bartlett look like an idiot. Have the same people interview Paul Volcker and William K. Black, and the rest of us might even learn something useful. From today’s Bloomberg dot com:
Two years after the start of the deepest recession since the 1930s, no U.S. or European authority has put in force a single measure that would transform the financial system, based on data compiled by Bloomberg. No rule- or law-making body is actively considering the automatic dismantling of banks that Volcker told Congress are sheltered by access to an implicit safety net… Volcker is leading a chorus arguing for restricting the size or primary functions of financial institutions. “He is spot on,” Joseph Stiglitz, a Columbia University professor who won the Nobel Prize in economics in 2001, said in an e-mail.
In the U.S., Congress isn’t likely to pass final legislation until next year, as Obama and the Democratic leadership have made health-care overhaul the top priority and lawmakers face resistance from Wall Street banks, hedge funds and the U.S. Chamber of Commerce. Financial companies historically are the largest donors to congressional election campaigns, according to the Center for Responsive Politics in Washington.
“It’s insanity that the too-big-to-fail institutions are even bigger today than they were,” said U.S. Senator Bernie Sanders, a Vermont independent, in an interview. “God forbid we have another financial crisis.”

Governments should separate deposit-taking banks from those that use their own money to trade and issue securities, said Irving Kahn, 103, who has worked on Wall Street since 1928.

(Comments wont nest below this level)
 
Comment by Chris M
2009-12-15 13:57:48

I can’t stand this attitude that small business owners just need to borrow more money. If my small metal stamping shop is losing $20K every month, exactly what good is a loan going to do for me? IMO, debt is something to avoid if possible. But apparently Obama thinks it is the lifeblood of small business. Never mind that half of our customers packed up for China. All we really need is a loan. Duh!?

(Comments wont nest below this level)
Comment by tresho
2009-12-15 14:02:19

But apparently Obama thinks it is the lifeblood of small business. He’s not alone.

 
 
Comment by CA renter
2009-12-16 05:09:01

Couldn’t agree more, oxide.

Let the party who takes the risks make the profit. Not sure why we need the current group of banks anyway. The govt is backing almost everything.

(Comments wont nest below this level)
 
 
 
Comment by Asparagus
2009-12-15 07:09:31

I just got an update on a bank owned property, it had been listed for 380k, went under contract, now it’s re-listed, a month later, at 415k. No change in ownership.

Absolutely insane.

Comment by exeter
2009-12-15 07:13:29

GMAC and Fannie are notorious for labeling their reo as “in contract”. A year later, the same shack is still listed……”in contract”.

These lender servicing companies and GSE’s are blowing smoke. I stumbled onto what I believe to be a massive shadow inventory. Ben and I have discussed it some. Like banks and wall street, these people cannot be trusted.

Comment by packman
2009-12-15 07:23:05

I stumbled onto what I believe to be a massive shadow inventory.

Come on - fess up. You afraid of the black helicopters, or are you going to give a link?

(Comments wont nest below this level)
 
 
Comment by Rental Watch
2009-12-15 15:37:51

I hope they get the extra $35k. It’s $35k less than the rest of us will be spending on bailing out that bank.

 
 
Comment by packman
2009-12-15 07:11:11

We are most definitely experiencing a bounce right now.

And it most definitely will not last.

Comment by oxide
2009-12-15 09:34:55

I hope not, pack. My soon-to-be neighborhood (MD suburb) is zillow-ed at $350K for 1950’s shacks on 1/8 acre. But I’m starting see a few of these at $150-180K, billed “as-is.” That’s in my price range, but I think it’s a lousy value. Maybe in a couple years the decent houses will be $135K and the fixer-upper will price at $100K or less.

But I doubt it. It’s a prime neighborhood for fix and flip. I mean real fix-up, not just paint and Pergo.

 
Comment by Rental Watch
2009-12-15 16:11:27

I think it depends on what segment of the market you are looking at. At the very low end of any particular market, I think the bottom is behind us (markets where prices have already fallen 50-60%). At the medium/high end of any market, I think the bottom is yet to come.

 
 
Comment by DinOR
2009-12-15 09:03:37

And just why SHOULDN’T Realtwhores (TM) have first crack at foreclosures?

See guys, while were all blathering on about the Evil Fed and going long on gold this has been happening -right- under our very noses! Hope everyone’s happy?

 
Comment by Rental Watch
2009-12-15 15:28:22

But appraisers don’t count foreclosures in comps…the resale is the only way to start getting real comps (where the buyer can have time to get debt, etc., as opposed to all cash, on the courthouse steps).

 
 
Comment by exeter
2009-12-15 06:55:02

The trials of a howmuchamonther(millions of them)…… It’s an SNL type parody‏ No need to watch, just crank the volume and enjoy some Christmas humor.

http://tinyurl.com/ybu3m69

Apologies in advance if repost.

Comment by Captain Credit Crunch
2009-12-15 08:44:39

It’s a savvy post. Don’t pay, stay as long as you can, heal your own balance sheet.

 
 
Comment by packman
2009-12-15 07:01:34

The Federal Reserve z1 data came out the other day. Of note - it’s becoming increasingly apparent that the PTB are struggling to keep us on a higher plateau of mortgage debt. Will they succeed?

Comment by Professor Bear
2009-12-15 08:27:32

The question appears to be whether mortgage debt’s plateau is permanently high.

Comment by packman
2009-12-15 08:44:02

Guess it depends on what is the definition of “permanently”.

The 1960’s plateau is over 40 years old now.
The 1980’s plateau is over 25.
The 1990’s plateau is over 15.
2000’s plateau??

FWIW - I’m guessing that - unlike previous plateaus - we’ll probably come down significantly from the peak, simply because the peak was *so* much higher this time. However there’s no way we’ll get back down to pre-bubble levels I’m thinking, short of complete financial system collapse; most likely including a very significant war. Note that it took WWII to get to pre-1920’s levels. Even 10-12 years of full-on depression didn’t do it.

Comment by Professor Bear
2009-12-15 09:27:16

It doesn’t appear that many plateaus are permanent in the long run.

(Comments wont nest below this level)
Comment by packman
2009-12-15 09:29:58

Guess it depends on what is the definition of “long run”.

:razz:

 
 
 
 
 
Comment by Sammy Schadenfreude
2009-12-15 07:05:47

http://www.randpaul2010.com/?utm_source=Master+List+from+Eric&utm_campaign=ea60191677-History+In+The+Making&utm_medium=email

Dr. Rand Paul (son of Ron Paul) is having a “money bomb” Internet fund-raiser tomorrow, December 16, to support his run for the Senate. If you want GENUINE change and a principled stand against out-of-control government spending and bankster bailouts, here is your chance to stand up and be counted.

 
Comment by cougar91
2009-12-15 07:08:27

Some Anti-Eddie news this morning: Credit card delinquency and charge off to rise again after brief period of decline…. BUT I though Eddie said it is *ALMOST* back to 2005 as far as he could see?

NEW YORK (Reuters) - Capital One Financial Corp and Discover Financial Services reported that credit-card charge-offs rose in November — a sign that consumers remain under stress.

In a regulatory filing on Tuesday, Capital One said the annualized net charge-off rate — debts the company believes it will never collect — for U.S. credit cards rose to 9.60 percent in November from 9.04 percent in October.

In another regulatory filing, Discover said its charge-off rate rose to 8.98 percent from 8.54 percent after two months of declines.

“American consumers are still hurting and especially coming into the Christmas season,” said Ken Crawford, senior portfolio manager at Argent Capital Management.

Capital One, the third-largest U.S. issuer of Visa-branded credit cards, said the accounts at least 30 days delinquent — an indicator of future loan losses — went up to 5.87 percent from 5.72 percent.

————————————————————————————–

NEW YORK, Nov 23 (Reuters) - Moody’s Investors Service expects recent declines in credit card charge-offs to reverse course in the coming year as delinquencies climb higher and drives charge-offs to their peaks by mid-2010.

The charge-off rate measures those credit card account balances written off as uncollectable by credit card firms.

Moody’s October credit card index showed a drop to 10.04 percent in the charge-off rate, below the 11.49 percent all-time high set in August.

October’s decline benefited from a large but technically driven improvement in Citibank’s charge-off rate, said Moody’s. It noted a change in bank policy that increased the amount of time between an account holder going bankrupt and when the account is deemed to be a charge-off.

The rating agency predicts charge-offs will peak at between 11 percent and 13 percent by next year’s first half.

“This trend in rising delinquencies will lead to increases in the industrywide charge-off rate,” said William Black, senior vice president at Moody’s

Comment by pressboardbox
2009-12-15 07:35:00

Everybody leave Eddie alone. He is just the Kendra Todd of the after-bubble bubble. My wish is that he gets his own tv flipper type show to document his behavior as did Ms Todd.

Comment by Eddie
2009-12-15 10:54:41

Is that Kendra from Girls Next Door? I didn’t know she was a real estate flipper.

Comment by cougar91
2009-12-15 14:46:56

In your dreams. Search for Kendra Todd on U-tube and see how she very much denied there was such a thing as a housing bubble…. back in 2005/2006.

Bahahahahaha.

(Comments wont nest below this level)
 
 
 
Comment by WT Economist
2009-12-15 07:42:28

Charge offs are when the banks decide to admit losses, not when they occur.

If the banks actually do recover to an extent by paying federally mandated low interest rates to savers, and gouging borrowers, charge offs will increase.

Comment by cougar91
2009-12-15 07:59:17

Except delinquency seems to be rising again after a brief decline, according to the latest report. That will lead to further charge-offs in 2010 as the report states.

Comment by packman
2009-12-15 08:08:34

Amazing thing is that delinquencies are rising again in the background of prices rising. Imagine when prices start to fall again (which I think they are).

(Comments wont nest below this level)
 
 
Comment by polly
2009-12-15 10:54:15

“Charge offs are when the banks decide to admit losses, not when they occur.”

It is also possible it is a tax play. Could be that they have to take the charge off before they take the deduction and they are doing a balancing act between looking like their loan portfolio is in trouble and getting tax liability down. Accounting is an art as well as a science.

 
 
Comment by Eddie
2009-12-15 07:49:59

OMG!! 95% of people are paying their Capital One bills on time. How could I have been so wrong? The world is ending after all.

Comment by cougar91
2009-12-15 07:57:41

FAIL. 100% - 5.87% = 94.13%, not even rounding it will get you 95%. I know 1% in your mind doesn’t mean much, after all you like to mix facts with fictions, but the rate increased, not decreased, kinda contrary to your it’s about as good as 2005 comment.

 
Comment by Housing Wizard
2009-12-15 09:32:27

Eddie ,people have been advised to pay their credit cards and live in their house for free . Of course there are people who can’t
pay either ,you know job loss and all .

During desperate times you would think that Congress/Senate would know that standing law would be there to get around . By forgiving forgiven debt on mortgages people just walked from mortgages while they keep paying credit cards that aren’t so easy to default on .

No doubt in 2005 when they got laws passed that it would be harder to default on credit cards ,they didn’t think about real estate .

 
Comment by Hwy50ina49Dodge
2009-12-15 09:37:44

OMG!! 95% of people are paying their Capital One bills on time.

Hey Haskel, you forgot to mention this:

89.34% of the credit card payees… were able to pay (unbelievable) …an extra $1.25 more than the minumum due! ;-)

 
 
Comment by edgewaterjohn
2009-12-15 08:43:20

“American consumers are still hurting and especially coming into the Christmas season,” said Ken Crawford

More and more I’m getting a funny feeling about January. Collective social expectations have been pumped all year - culminating in this holiday shopping period. Will we soon learn how far those expectations have outrun reality?

In other words, will this economy crap 7mm new jobs on January 4, 2010?

Comment by Eddie
2009-12-15 10:41:15

OK you got me. The world is ending tomorrow because a few more deadbeats aren’t paying their bills. I’ll sell all my holding this afternoon and put all my money in a 0.015% checking account like you.

Comment by packman
2009-12-15 10:59:16

Eddie - your sweeping exaggerations don’t exactly help your case.

(Comments wont nest below this level)
 
Comment by edgewaterjohn
2009-12-15 11:16:54

Actually my checking account is a no interest checking account because I don’t like the minimums required for interest checking. Just keeping ya honest!

(Comments wont nest below this level)
 
 
 
Comment by FB wants a do over
2009-12-15 10:45:25

I believe the original goal was to keep the credit card users on life support and milk them for interest for as long as possible.

Today’s credit card users are being bludgeoned with higher rates, late fees, and over limit fees. When’s the last time you saw someone declined at a checkout? Suspect it rarely happens.

Seems to me the Banks have collectively become too greedy. Credit card users are falling off the debt treadmill and they can’t get back up.

 
 
Comment by cougar91
2009-12-15 07:17:35

NYT does detail profiles on the American jobless… hopelessness and dramatic lifestyle changes. Apparently they do not have a sense of the “Eddie”, who said we are back to 2005 (or at least as far as his eyes can see):

Poll Reveals Trauma of Joblessness in U.S.
Published: December 14, 2009

More than half of the nation’s unemployed workers have borrowed money from friends or relatives since losing their jobs. An equal number have cut back on doctor visits or medical treatments because they are out of work.

Almost half have suffered from depression or anxiety. About 4 in 10 parents have noticed behavioral changes in their children that they attribute to their difficulties in finding work.

Joblessness has wreaked financial and emotional havoc on the lives of many of those out of work, according to a New York Times/CBS News poll of unemployed adults, causing major life changes, mental health issues and trouble maintaining even basic necessities.

The results of the poll, which surveyed 708 unemployed adults from Dec. 5 to Dec. 10 and has a margin of sampling error of plus or minus four percentage points, help to lay bare the depth of the trauma experienced by millions across the country who are out of work as the jobless rate hovers at 10 percent and, in particular, as the ranks of the long-term unemployed soar.

Roughly half of the respondents described the recession as a hardship that had caused fundamental changes in their lives. Generally, those who have been out of work longer reported experiencing more acute financial and emotional effects.

“I lost my job in March, and from there on, everything went downhill,” said Vicky Newton, 38, of Mount Pleasant, Mich., a single mother who had been a customer-service representative in an insurance agency.

Comment by Eddie
2009-12-15 11:00:11

““I lost my job in March, and from there on, everything went downhill,” said Vicky Newton, 38, of Mount Pleasant, Mich., a single mother who had been a customer-service representative in an insurance agency.”

——

38, a single mother and a customer service rep…Vicky, your life was downhill long before the layoff. All this country song is missing is a broke pickup and a dying dog.

You people don’t really fall for this MSM crap do you? Oh no look how awful everything is. It’s so bad that 38 year old uneducated single mothers are not prospering like they used to in the good old days.

Why would that insurance company hire her? She probably takes time off to be with the kid, won’t work weekends and costs an arm and a leg in insurance costs. When an Indian employee answering phones requires no insurance, no time off for the little brat’s school play and will work any shift.

 
 
Comment by arizonadude
2009-12-15 07:26:00

THE msm makes it sounds like charge offs are not an issue and declining.I imagine people are racking up credit card debt and then defaulting just like they did with helocs.Nothing has changed.To easy to screw the system.

Comment by Eddie
2009-12-15 11:02:05

Obama has taught them well. Paying back debts is for suckers. And after all banks are run by “fat cats” according to Mr. O. So if people owe money to credit cards and credit cards are run by banks, which are run by fat cats, it stands to reason that defaulting is the right thing to do.

You don’t want those “fat cats” to get even fatter from people’s repayment of debt do you?

Comment by Chris M
2009-12-15 14:45:23

I get the same feeling about Obama. It’s like he thinks that easy credit is the solution to all our problems. He just needs to “get the banks to loan”. But what if I don’t *want* any more debt?! I’m paying down my mortgage, and socking away $1000/month in an ING account. I’m not about to go on a spending spree just to help juice the economy. My small business has been struggling for 12 months now, and our cash reserves are getting low. Pay cuts are a very real possibility in the near future. Luckily, I can still get by with less, since I did not indulge in the easy credit that our president foolishly endorses.

 
 
 
Comment by Brett
2009-12-15 07:35:52

I forgot how many 30k millionaires exist in the US

Comment by DinOR
2009-12-15 09:07:19

Brett,

Right, and there’s nothing inherently ‘wrong’ w/ making $30k a year ( except when you try to ‘act’ like you’re a millionaire? )

Comment by Brett
2009-12-15 14:38:09

I was specifically talking about a frelance artist that works part-time as a waiter trying to show her fake LV purse during brunch (I do know how to spot fake LVs, and hers was definitely not original)…

Comment by DD
2009-12-15 15:22:53

maybe she likes the look but is frugal, or can’t afford the real deal. What is wrong with that? did you ask her if it was real and did she answer honestly?

I like the look of a few high end things, but $- no way.

(Comments wont nest below this level)
Comment by Brett
2009-12-15 15:41:10

I meant to say *waitress, and it’s not real… You can easily spot fakes b/c of stitching quality, symmetry in the patterns and other qualities… Trust me, she was not wearing the real deal

 
Comment by DD
2009-12-15 15:44:23

Still, is that a problem? that it wasn’t real? Everything we have is a knockoff of some sort. Note cell phones, fashion, cars you name it, it was designed and improved on and certainly made in a much cheaper price point.

 
Comment by Brett
2009-12-15 15:53:54

The problem is not that is was fake; the issue I have is some of these wanna be millionares that all snobby and douchey, but dont’ have anything to back it up with… and pretend to be ‘rich’ and ‘glamorous’ by wearing fake stuff or max out credit cards with a single item… when actually talk to most of them, you realize they work in retail at the mall, are waiters/waitresses and have 4 roommates b/c they cant afford a place…

 
Comment by DD
2009-12-15 18:20:30

Not keen on snobbery, arrogance, and douchery at any juncture. Agreed.

 
 
Comment by Chris M
2009-12-15 15:30:41

I don’t even know what “LV” means. We do have some great garage sales around here, though. :)

(Comments wont nest below this level)
Comment by DD
2009-12-15 15:35:42

louis vuitton. those brown vinyl-leather-ish handbags with gold letters LV on them.

 
Comment by Brett
2009-12-15 15:39:41

That’s the monogram design… there’s more than that!

 
Comment by Brett
2009-12-15 15:42:13

And it’s not vynil, it’s canvas, but they also have other materials…

 
Comment by DD
2009-12-15 15:45:38

Thanks Brett. I personally don’t know the difference.

 
Comment by Brett
2009-12-15 15:54:56

I blame my mother for knowing these things

 
Comment by Va Beyatch in Virginia Beach
2009-12-15 17:01:27

Every time I hear Louis Vitton all I can think of is the song “Swap Meet Louie” by Sir Mix Alot.

 
 
 
 
Comment by AnonyRuss
2009-12-15 22:02:20

“the issue I have is some of these wanna be millionares that all snobby and douchey, but dont’ have anything to back it up with… and pretend to be ‘rich’ and ‘glamorous’ by wearing fake stuff or max out credit cards with a single item”

http://www.youtube.com/watch?v=oKwA8pFJvJc

 
 
Comment by wmbz
2009-12-15 07:40:13

We needs mo’ money…

Fannie, Freddie Overseer Said to Consider Seeking More U.S. Aid.

Dec. 15 (Bloomberg) — Fannie Mae and Freddie Mac’s federal regulator is renegotiating the companies’ financing plan with the U.S. Treasury Department and may seek an increase to their $400 billion federal lifeline before the end of the year, according to people familiar with the talks.

Treasury and Federal Housing Finance Agency officials are also debating whether to lower the cost of the companies’ dividend payments on their borrowings from Treasury, according to these people, who requested not to be identified describing the internal deliberations.

Fannie Mae and Freddie Mac, the largest sources of mortgage money in the U.S., have used $111.6 billion of their $400 billion in backup financing in less than a year. The companies say their 10 percent annual dividend payment, which comes to about $5 billion apiece, costs more than either have earned in most years and adds to their draws on Treasury.

FHFA spokeswoman Stefanie Mullin, Treasury spokeswoman Meg Reilly, Freddie Mac spokesman Doug Duvall and Fannie Mae spokesman Brian Faith declined to comment.

The financing plan instituted for Fannie Mae and Freddie Mac requires them to reduce their $1.57 trillion combined mortgage portfolios by 10 percent annually starting next year and caps their debt issuance at 120 percent of their assets.

The Treasury and Federal Housing Finance Agency seized control of the mortgage-finance companies almost 16 months ago amid fears the two were at risk of failing.

Comment by packman
2009-12-15 08:11:31

Thanks for the info.

Cripes.

Comment by packman
2009-12-15 08:12:54

Just to clarify - I believe this is outside the TARP, and from the general fund, right? E.g. maybe as part of the $1.1T general spending package for 2010?

 
 
Comment by iftheshoefits
2009-12-15 08:40:57

Given the stellar condition of their balance sheets, does this come at all as a surprise?

 
 
Comment by wmbz
2009-12-15 07:46:07

Producer Prices in U.S. Climbed More Than Forecast (Update2)

Dec. 15 (Bloomberg) — Wholesale prices in the U.S. increased more than anticipated in November, led by a jump in fuel costs and a rebound in truck prices.

The 1.8 percent increase in prices paid to factories, farmers and other producers was more than twice as large as anticipated and followed a 0.3 percent gain in October, according to Labor Department data released today in Washington. Excluding food and fuel, so-called core prices also exceeded the median estimate of economists surveyed by Bloomberg News.

Near-record excess capacity and a jobless rate that is projected to average 10 percent in 2010 may prevent suppliers from passing on a rebound in commodity costs even as the economy recovers. Federal Reserve policy makers, meeting this week, have said they expect inflation to remain “subdued” in coming months, allowing them to keep interest rates low.

“Competition is brutal,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc., a New York forecasting firm, who forecast producer prices would rise 1.2 percent. “If somebody raises their prices, someone else won’t. We’re squarely in the disinflationary camp. There is way too much spare capacity.

 
Comment by John Danger
2009-12-15 08:02:38

Interesting fact:

Columbia mall (Columbia county - 4th and 8th from 100 best places to live in 2006 and 2008 respectively according to Money magazine - see wikipedia), upscale store (I can’t say which or how do I know that, but trust me …) (in the category of 100$ a lipstick or 20$ a cup of coffee or 50$ a pair of tin earrings).
As I was saying, Columbia mall, upscale store, bit paper hung behind the counter:

Blah, blah, we are xxx$ (big amount) behind last year, blah, blah, low traffic, blah, blah, things will get better, blah, blah, it’s up to you (read “you really have to push this junk”) to make up the difference.

Three things are interesting here (from my point of view):

1: Something is starting to happen in an area where house prices dropped less than 10% from the peak
2: People are really delusional about the future (like soon it will be like before or even better)
3: People are really obsessed about growth, it’s like constant growth is a normal part of a business (a few decades of Federal Reserve intervention in the economic cycles probably has its merits)

Comment by edgewaterjohn
2009-12-15 08:39:12

Grow or Die: the Ponzi Economy’s dirty little secret.

 
Comment by oxide
2009-12-15 09:12:34

I know whereof you speak. ($96K median income in 2006)

The “something” that is happening is that the guilt is catching up with the upper middle class . How can you spend $100 on lipstick when you know that there are thousands of families could really use that $100 for, you know, food or heat or a coat for the kids. They don’t all believe the “I deserve it because I’m a producer” schtick.

($20 for one coffee? I have a hard time believing that. Even if it’s the store I think it is.)

Comment by John Danger
2009-12-15 12:27:01

Those were examples used to illustrate the kind of store I was talking about (they don’t actually sell lipstick, coffee or earrings).

 
 
Comment by polly
2009-12-15 11:04:08

Growth in sales is the metric the use to set the bonus for the manager of the department/store/region/etc. During the bubble, this was good for them because growth in sales was pretty much guaranteed, even if the manager didn’t do much. Now, not so easy a target to hit.

Welcome to the real world, retail.

 
 
Comment by wmbz
2009-12-15 08:04:34

Citigroup’s Exit From Bailout Clouded by Citi Holdings Assets.

Dec. 15 (Bloomberg) — Citigroup Inc. Chief Executive Officer Vikram Pandit, emerging from a U.S. bailout with higher capital levels and loan-loss reserves than any peer, still has a $617 billion reason to worry.

That’s the amount of assets left in Citi Holdings, the division that Pandit set up to strip his bank of unprofitable businesses, troubled loans and securities. While the bank has unloaded almost $100 billion of the assets so far, getting stuck with the rest may hinder earnings for years, analysts said.

“I wouldn’t say that all of their issues are completely behind them,” said Bill Tanona, an analyst at Collins Stewart Inc. in New York who rates Citigroup “hold.” “We still have a soft economic environment and high unemployment, so losses are likely moving higher in the short term.”

 
Comment by wmbz
2009-12-15 08:13:35

Regulators Resist Volcker Wandering Warning of Too-Big-to-Fail.

Dec. 15 (Bloomberg) — Paul A. Volcker visited nine cities in five countries in the past eight weeks to warn that bankers and regulators “have not come anywhere close to responding with necessary vigor” to the worst economic crisis in 70 years.

“There is a lot of evidence that financial weaknesses brought us to the brink of a great depression,” Volcker, 82, said Dec. 8. at a conference in West Sussex, England. He told executives there that the changes they’ve proposed are “like a dimple.”

Two years after the start of the deepest recession since the 1930s, no U.S. or European authority has put in force a single measure that would transform the financial system, based on data compiled by Bloomberg. No rule- or law-making body is actively considering the automatic dismantling of banks that Volcker told Congress are sheltered by access to an implicit safety net.

There’s little evidence that policy makers are heeding Volcker, the former chairman of the U.S. Federal Reserve. More than 50 regulatory overhaul proposals have been submitted in the U.S. and Europe, the data compiled by Bloomberg show. Lawmakers and regulators have debated new rules for capitalization and leverage, central clearing for derivatives trading, oversight of hedge funds and ways to monitor systemic risk.

Comment by Professor Bear
2009-12-15 08:29:07

He will later enjoy the pleasure of saying, “I told them, but they wouldn’t listen.”

Comment by James
2009-12-15 22:14:11

Hey PB,

My thought on Volcker. I would guess he is not with us for much longer. Not sure he is interested in that kind of ego stroke.

 
 
Comment by ET-Chicago
2009-12-15 08:39:06

He told executives there that the changes they’ve proposed are “like a dimple.”

Like a dimple … or more like an ass pimple?

You can tell us, Mr. Volcker.

 
Comment by Hwy50ina49Dodge
2009-12-15 09:25:44

“…no U.S. or European authority has put in force a single measure that would transform the financial system”

Here’s a “novel idea:

“So BIG,…it has the “resources” to save itself!” ;-)

 
 
Comment by Left LA
2009-12-15 08:38:04

I saw the movie “Collapse’ a couple of nights ago. It is a documentary that is basically a sit-down interview with Michael Ruppert. The style is very similiar to “The Fog of War”.

To those who read this board (except Eddie), there will be no big revelations. However, it was interesting and a bit bone-chilling at times.

 
Comment by wmbz
2009-12-15 09:09:46

New York Factory Index Declines to Five-Month Low (Update1)

Dec. 15 (Bloomberg) — Factories in the New York region unexpectedly expanded at the slowest pace in five months in December, indicating manufacturing may provide less of a thrust for the economy in coming months.

The Federal Reserve Bank of New York’s general economic index fell to 2.6 from 23.5 in November, the bank said today. Readings above zero signal manufacturing expansion in the state and parts of New Jersey and Connecticut. In October, the index jumped to 34.6, the highest since May 2004.

Measures of orders, sales and employment all declined during the month, pointing to an uneven pace of expansion in manufacturing, which led the U.S. out of the worst recession since the 1930s. Companies may be limiting orders to ensure the progress they’ve made in paring inventories this year.

“The pace of manufacturing-sector improvement has slowed noticeably,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said before the report. “Production conditions are now more in equilibrium.”

Futures on the Standard & Poor’s 500 index extended declines after the report, falling 0.5 percent to 1,102.6 at 8:41 a.m. in New York.

Wholesale prices in the U.S. increased more than anticipated in November, led by a jump in fuel costs and a rebound in truck prices, a separate report from the Labor Department showed today.

The 1.8 percent increase in prices paid to factories, farmers and other producers was more than twice as large as anticipated and followed a 0.3 percent gain in October.

Fed Meeting

Fed policy makers, who begin a two-day meeting today, will keep their benchmark interest rate close to zero to bolster the economic recovery, according to the median of 97 economists in a Bloomberg News survey.

Comment by polly
2009-12-15 11:27:06

Shocking news that factories slow down after the “get it in the store by Christmas” deadline passes.

Comment by In Colorado
2009-12-15 11:39:45

I thought that everything sold in stores was made in China.

 
 
Comment by Dave of the North
2009-12-15 12:39:21

There’s that “unexpectedly” word again…

 
 
Comment by wmbz
2009-12-15 09:11:41

Housing bust’s aftershocks hurt Rockies region. ~ USA TODAY

Las Vegas and Phoenix have taken such a hit from the housing crash and recession that they’re dragging down much of the Rocky Mountains region and masking more stable economies in Denver, Salt Lake City and Albuquerque, says a report out today.

“The West is a microcosm of the rest of the country,” says Robert Lang, co-author of the research by Brookings Mountain West, a partnership of the Brookings Institution and the University of Nevada-Las Vegas. “It has its highs and lows. It has metros slowly recovering and others that remain dead in the water.”

Boise, capital of Idaho, a state that boasted the nation’s fastest-growing economy two years ago, finds itself in as dire a spot as Las Vegas and Phoenix. The three are among the most troubled metropolitan areas in the nation, the report says. All three depended heavily on the real estate industry, with about 13% of their non-farm jobs in construction and real estate.

Comment by DinOR
2009-12-15 10:13:00

wmbz,

I think this plays directly into DennisN’s telling of his friend from the BA that called ’some’ realtor up in Boise to buy him ’some’ houses back in… 2006?

Uh… any particular ‘kind’ of house? No, just 3 or 4 should do! Just a “random walk” by specuvestors dragging the rest of us down for the short-term gratification of the few. Still I’m not sure I see a direct connection between LV and Denver?

 
 
Comment by X-GSfixr
2009-12-15 09:47:13

OT: My daughter’s solution to teenage pregnancies:

Quit wasting money on sex/abstinance/birth control education.

Instead, give every teenage male in America a laptop, and a subscription to “World of Warcraft”.

(I was afraid to ask her how she knew this would work…….subliminally, dads know what’s going on, but we really “don’t want to know”.)

Comment by CA renter
2009-12-16 05:31:36

Unfortunately, I think she has a point.

 
 
Comment by cactus
2009-12-15 09:54:25

We may and probably will get inflation in many things (taxes)

But the overall impression I get is deflation and a lower standard of living going forward. If one has to pay more in taxes, food , gasoline, don’t get much if any pay increase, dollar falls over time and have to compete with BRICKs for food and oil and jobs then it just gets tough to live large.

Comment by In Colorado
2009-12-15 11:18:21

Or to live at all.

People I talk to are still hoping for the best, but many are starting to accept the inevitable. Many have or will fall off the “middle class” wagon and will never be able to get back on it again.

 
Comment by measton
2009-12-15 11:23:41

+1

Throw in rising interest rates and you will see further downside in housing guaranteed.

 
 
Comment by Hwy50ina49Dodge
2009-12-15 10:02:28

News from behind “The O.C.” Curtain: ;-)

(Hwy wonders how much they owe on their “Student Loans”) ? :-)

Five people charged in $3 million loan fraud:

December 14th, 2009, posted by Mathew Padilla, OC Register

“The DA filed a complaint last month against Cuc Huong Doan in Santa Ana, Trieu Thi Nguyen in Rosemead, Nafees Ahmad Quidwai in Fountain Valley, Sabiha Quidwai in Fountain Valley, and Mailan Thu Tran in Newport Coast.”

“Tran, a mortgage broker who previously owned Money One Lending in Westminster, masterminded the scheme to take out multiple loans on properties while hiding certain facts from the banks, according to the District Attorney.”

“For example, the District Attorney alleges that on Oct. 2, 2006, Tran and Doan got a $250,000 mortgage from Bank of America on Doan’s $407,000 home in Corona, despite already having a mortgage on the property. Here’s more from the DA:

They are accused of claiming on the loan application that Doan was an executive at a fictional company named Westcoast Biolab making a six figure salary. Two days later, the defendants are also accused of applying for and receiving an additional fraudulent $235,000 mortgage loan from Wells Fargo for the same home owned by Doan. Tran and Doan are accused of falsifying the application by not reporting Doan’s two other mortgages and falsely providing the same fake company, job, and salary information. The defendants are accused of receiving approximately $500,000 from the bank in cash, checks, or wire transfers for personal use.”

 
Comment by DD
2009-12-15 10:18:43

http://tinyurl.com/y8h3j7r

New-home sales rose 24% and pending home sales jumped 32% in October from a year earlier, but estates with wine cellars, infinity pools and servants’ quarters saw their prices drop 7%. Basketball star Shaquille O’Neal and rapper 50 Cent were among the bigger names to take losses or pull their homes off the market.

Some luxury sellers are still weathering the storm. While the former home of the Detroit Lions took perhaps the biggest beating of the year, the former mailing addresses of Leona Helmsley, Nicolas Cage and Bernie Madoff still have no takers. Here are five property duds whose oversized infamy was matched by their inflated price tags:

 
Comment by wmbz
2009-12-15 11:29:42

To bad someone didn’t jump and yell you lie! When this d-bag was spewing this bilge. Al “the earth has a temperature” Gore, just trying to create an air of ‘emergency’ by lying.

Inconvenient Truth for Gore as Arctic Ice Claims Don’t Add Up.
~ London Times ~ 12-15-09

The former vice president said new research showed that the Arctic could be completely ice-free in five years, but the scientist his estimate was based on denies the timeline.

There are many kinds of truth. Al Gore was hit by an inconvenient one yesterday.

The former vice president, who became an unlikely figurehead for the green movement after narrating the Oscar-winning documentary “An Inconvenient Truth,” became entangled in a new climate change row.

Gore, speaking at the Copenhagen climate change summit, stated the latest research showed that the Arctic could be completely ice-free in five years.

In his speech, Gore told the conference: “These figures are fresh. Some of the models suggest to Dr. [Wieslav] Maslowski that there is a 75 percent chance that the entire north polar ice cap, during the summer months, could be completely ice-free within five to seven years.”

However, the climatologist whose work Gore was relying upon dropped the former vice president in the water with an icy blast.

“It’s unclear to me how this figure was arrived at,” Dr. Maslowski said. “I would never try to estimate likelihood at anything as exact as this.”

Comment by Lip
2009-12-15 17:23:31

wmbz,

This climate crap, especially Al’s, has made me even more skeptical about many other scientific claims. These scientists don’t do anything productive. They just keep sucking on the government tit and as long as they get their next year’s funding, then a few lies really don’t matter.

While watching some History channel documentary the other night they were talking about how they found some rocks that dated back 4,600,000,000 years when the earth was first formed. Its you can’t even tell me what the weather is going to be next week, how can you tell if a rock is 4.5 million or 4.5 billion years old??? Oh yeah, 4.5 billion is more news worthy.

IMO a lot of them are full of BS

Lip

 
 
Comment by wmbz
2009-12-15 11:32:52

Southern California Home Prices End Slide in November (Update1)

Dec. 15 (Bloomberg) — Southern California house and condominium prices halted their slide for the first time in more than two years last month as federal tax credits and low mortgage rates increased sales, MDA DataQuick said.

The median price was $285,000 in November, little changed from a year earlier and up 1.8 percent from $280,000 in October, the San Diego-based research company said today in a statement. Last month was the first time since September 2007 that the median didn’t drop from a year earlier in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties.

Home sales and prices in Southern California were helped by the extension and expansion of the tax credit for first-time buyers, which had been set to expire last month, and by mortgage rates at historic lows, MDA DataQuick said. The median price in Southern California still is being kept low by the sales of foreclosed homes, which accounted for 39 percent of all existing-home sales in the region last month.

“This market is still really lopsided,” John Walsh, MDA DataQuick’s president, said in the statement. “Foreclosures and short sales are huge factors. There’s still not a lot of discretionary buying and selling outside the more affordable markets. Anybody who can sit tight is doing just that.”

 
Comment by Mike in Miami
2009-12-15 11:39:06

Economy couldn’t be better!
Judging by the repayment of bailout loans from GM to GS the economy is under full steam once again. Coporations that took $100s of billion in bailout funds are quickly returning those monies once compensation packages of their mangement was threatened. To come up with that kind of money in that short of a time business and profits must be better than they ever were, despite record high foreclosures and 10+% unemployment.
I am sorry if that has already been discussed previously, but I find it rather “remarkable”. What is going on? Enron style accounting? Where did they get all that money from when they were at the verge of bankruptcy…or so they claimed. I don’t have a degree in accounting but something doesn’t add up. There seem to be a couple of $100 billion extra dollars floating around. Any idea, theories, guesses, info…

Comment by bink
2009-12-15 14:17:51

The banks were supposedly using stock sales to pay off the loans. Where GM got billions when they still aren’t even turning a profit is way beyond me. I have no doubt the timing is related to bonus season, though.

 
Comment by oxide
2009-12-15 17:17:49

GM is only paying back a little bit as a PR stunt. Like a minimum payment on a credit card.

As for the other banks, they were not as on the verge of bankruptcy as they claimed. Tim Geithner says that the banks were bailed out with something like 250B(?); the full 700B wasn’t necessary. Geithner also expects that $145 of that will be paid back in the next year. The government is expected to lose money, probably on GM and AIG.

Comment by CA renter
2009-12-16 05:42:22

While they try to focus everyone’s attention on the TARP, they are transferring losses to the taxpayer by refinancing private debt into govt-backed debt (GSEs and FHA, etc.). Additionally, the govt has officially backed a number of different types of debt. I believe we are potentially on the hook for trillions of dollars, but the MSM is just keeping us focused on the TARP.

 
 
 
Comment by iftheshoefits
2009-12-15 11:58:00

Here’s a fun Craigslist rental posting today out of Salt Lake:

http://saltlakecity.craigslist.org/apa/1511336366.html

What’s notable about this rental posting, you say? OK SFH, older but looks nice, rent is competitively priced. Nothing remarkable, except to note that the contact person is Ryan Kirkham, president of the Salt Lake Board of Realtors, who is the Salt Lake Tribune’s go-to guy in every real estate article for the obligatory “real estate has bottomed” quote.

So, I assume there must be an MLS listing and they’re renting “until the market turns around”. Sure enough, I find one - Utah MLS #: 871782, listed at $279,000, or 311x monthly rent.

Just too delicious an irony for me not to pass it on here.

Comment by bink
2009-12-15 14:13:33

A realtor should know better than to type in all caps. Ugh.

 
 
Comment by wmbz
2009-12-15 12:03:09

HD Supply to cut 350 jobs, close branches.
Atlanta Business Chronicle

HD Supply Inc., which The Home Depot Inc. sold in 2007, plans to cut about 350 employees as its losses mount.

In a filing with the Securities and Exchange Commission on Tuesday, HD Supply noted a loss of $267 million in the third quarter and a loss of $346 million on the year. Sales dipped 27 percent to $1.9 billion in the third quarter and fell 27 percent on the year to $5.8 billion.

The company now plans to consolidate 25 branches and cut 350 employees to trim its costs, it said.

Through nine months, it has taken $13 million in charges for this reorganization, closed three branches and cut 65 employees. It expects total charges of $45 million to complete the reorganization by the middle of 2010.

HD Supply is one of the largest distributors of construction, industrial and maintenance supplies in North America. In 2007, Home Depot (NYSE: HD) sold the unit for $8.5 billion to Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice. Through three quarters of 2009, HD Supply made $231 million in revenue from the sale of products to Home Depot.

Comment by aNYCdj
2009-12-15 21:38:50

well did HD see the writing on the wall and sell or did Bain offer a price that was outta this world?

 
 
Comment by wmbz
2009-12-15 12:10:06

ITEM: Washington ~ At a time when the White House is projecting the largest deficit in the nation’s history, Uncle Sam is trying to recover billions of dollars in unpaid taxes from its own employees.

Federal workers owe more than $3 billion in income taxes they failed to pay in 2008. According to Internal Revenue Service documents, 276,300 federal employees and retirees owe $3,042,200,000.

The IRS tracks the voluntary compliance rate of federal employees and retirees each year, and each year feds come up short.

You would think income tax compliance would be higher than this among federal employees. After all, their salaries are paid from tax receipts and if they fail to pay their fair share they’re setting a terrible example for the rest of us who may be even less inspired to cough up our hard-earned money to Uncle Sam.

On average, each of last year’s federal delinquent employees shortchange the government a little more than $11,000.00. In ONE year!

Comment by edgewaterjohn
2009-12-15 13:48:51

How many more examples of waste and corruption need to be presented before the statists/Keynesians admit that the gov’t does not have the complete control over this economy that it professes to have?

It’s like watching the Three Stooges man a howitzer battery.

 
 
Comment by wmbz
2009-12-15 12:59:31

Homebuilder sentiment index dips in December.
US homebuilder sentiment index slips 1 point in Dec. despite homebuyer tax credit extension ~ Tuesday December 15, 2009

LOS ANGELES (AP) — Even a holiday gift from Uncle Sam couldn’t brighten the homebuilders’ outlook in December.

The National Association of Home Builders said Tuesday its housing market index fell by one point to 16 this month, reflecting concern that job losses and a slow economic recovery will continue to stifle demand for new homes despite the extension of a federal tax credit for buyers.

The latest reading is the lowest since June, when it fell to 15. This was also the first monthly decline since October.

The worsening outlook was something of a surprise because it came one month after the industry received a major boost from Congress and the Obama administration.

New home sales got a lift this year from low mortgage interest rates and an $8,000 federal tax credit for first-time homebuyers. The incentive was set to expire on Nov. 30, but Congress extended it through April and expanded it to include $6,500 for existing homeowners.

“This is shaping up to be a bumpy recovery period for the housing market,” said David Crowe, the NAHB’s chief economist. “While some families may be just starting to factor the expanded tax credit into their potential home buying plans, many are hesitating because of the poor economy.”

Comment by packman
2009-12-15 13:12:59

Simple - the housing stimulus was based on borrowing from future demand.

Homebuilders - meet “the future”. It is your new ruler.

 
Comment by edgewaterjohn
2009-12-15 13:51:32

“This is shaping up to be a bumpy recovery period for the housing market,” said David Crowe

How big are the bumps allowed to get before it’s a double dip?

 
 
Comment by DD
2009-12-15 13:25:50

Want some politics with your breakfast? Click the graphic below. George W Bush is most blamed at 26 (Obama is at 3), and by 45-24, respondents answered that Democrats are more likely to create jobs over Republicans. The party ID from the survey is 20-33-38 R-D-I.

That’s some Republican resurgence. Note also that among this group, the expectation is for jobs to get better (39) or stay the same (36), not worse (22) and 46% think jobs will come back. (In this survey, 60% of respondents have been out of work for less than 6 months, and 40% more.)

For those of you tearing your hair out over health reform, there are bigger problems in this country than Joe Lieberman’s outsized ego. It isn’t that he and the rest of the Senate is not helping on health care. It’s that they’re really not doing much of anything for anyone.

 
Comment by fries with that?
2009-12-15 13:44:26

Finally, here’s a serious mainstream media article on the “shadow inventory” of foreclosures, and what future demand for foreclosures might look like.

It also covers topics such as the failure of loan modifications, the prospect of rising interest rates, and the effects of an end to homebuyer tax credits.

Comment by tresho
2009-12-15 14:27:03

That article did mention ’shadow inventory’ but emphasized foreclosures already on the market. It did not put shadow inventory into perspective.

 
Comment by packman
2009-12-15 14:29:50

Except it doesn’t give any figures for estimated shadow inventory, only for rates of foreclosures (something that’s pretty well known).

There’s no way the banks will put out numbers of actual shadow inventory - foreclosures held off the market. Estimates there run anywhere from 600k or so to 3M or so (if you include seriously-delinquent).

Comment by wmbz
2009-12-15 15:32:05

“There’s no way the banks will put out numbers of actual shadow inventory” -

You are right, no way. I have spoken with a few folks in the foreclosure business that say the same thing.The estimates are wide and varied.

 
 
 
Comment by tresho
2009-12-15 13:46:15

From Bloomberg dot com today:
The U.S. House is considering reinstituting the Depression-era Glass-Steagall Act, which barred bank holding companies from owning other financial companies, Majority Leader Steny Hoyer said. The Glass-Steagall law barred banks that took deposits from underwriting securities. The 1999 law that repealed it enabled the creation of “financial holding companies” that combine banks with insurers or investment banks.

Enactment of that law has generated debate about whether it helped spawn reckless lending practices and financial speculation that led to the meltdown of credit markets last year and the $700 billion U.S. bailout of troubled banks, including Citigroup.

Former Citibank Chairman John S. Reed apologized in a Nov. 6 interview for helping engineer the bank’s merger with Travelers and for his role in building a company that took $45 billion in U.S. assistance. Reed also recanted his advocacy of the repeal of Glass-Steagall.

The 1998 merger depended on Congress repealing Glass- Steagall before a five-year deadline that otherwise would have required Travelers to sell its insurance underwriting business.

“We learn from our mistakes,” Reed said in the interview. “When you’re running a company, you do what you think is right for the stockholders,” Reed said. “Right now, I’m looking at this as a citizen.”

 
Comment by measton
2009-12-15 14:06:11

Dec. 15 (Bloomberg) — The U.S. House is considering reinstituting the Depression-era Glass-Steagall Act, which barred bank holding companies from owning other financial companies, Majority Leader Steny Hoyer said.

A renewal of the 1933 law “is certainly under discussion” by House members, Hoyer told reporters in Washington today. The Glass-Steagall law was repealed in 1999 to help pave the way for the formation of Citigroup Inc. by the $46 billion merger of Citicorp and Travelers Group Inc.

“As someone who voted to repeal Glass-Steagall, maybe that was a mistake,” said Hoyer, a Maryland Democrat.

Well it’s closing the barn door after the cows are out, but hopefully it will be the start of something. I’ll believe it when I see it.

Comment by tresho
2009-12-15 14:28:50

Well it’s closing the barn door after the cows are out, but hopefully it will be the start of something. That barn still has plenty of cows that have not yet escaped. I see smoke coming out under its eaves.

 
 
Comment by DD
2009-12-15 14:26:18

http://tinyurl.com/y9wrn5h

House foreclosure buying dips as inventory rises.

Hmmm.

 
Comment by obamanator
2009-12-15 14:39:17

dd, how’s that 8% unemployment rate your boy Barry promised us? How many jobs did he create wasting our 787 BILLION dollars? Why did he LIE about the number and keep repeating that lie over and over? HOW many jobs “saved”?

yeah, Barry is such an honest man. Such change.

Don’t get me started on global warming.

 
Comment by wmbz
2009-12-15 15:15:10

Catch-22: Credit checks on jobless keep jobless unemployed
The Orlando Sentinel ~ Business Dec. 15, 2009

ORLANDO, Fla. — In the murky waters of the labor pool, a toothy surprise is waiting for the unemployed who’ve fallen behind on their bills.

It bit Tommy Powers when he applied for a job at a motorcycle dealer this fall. Powers, who was laid off in April 2008, had just graduated from mechanic’s school and figured he had a shot at getting back into the workforce.

But the dealer checked his credit history, and the job prospect vanished.

“They said I needed better credit,” said Powers, 54, of Orlando. “I’ve been laid off so long, mine’s not as good as it used to be.”

Employment experts say companies of all kinds are increasingly reviewing the credit histories of job candidates before making a decision about whom to hire. The idea, disputed by many labor advocates, is that credit history serves as a barometer for how dependable someone might be - or how tempted they might be to dip into the till.

But with unemployment stuck at double digits, and with more than 35 percent of the jobless out of work for more than six months, the practice creates an insidious feedback loop, critics say.

The pattern goes like this: Without a job, a laid-off worker can’t pay bills and his or her credit history takes a beating. Without decent credit, they’re rejected by potential employers and can’t get a job. More bills go unpaid, and credit crumbles further.

Comment by packman
2009-12-15 15:18:43

The pattern goes like this: Without a job, and without sufficient savings or disciplined spending habits, a laid-off worker can’t pay bills and his or her credit history takes a beating. Without decent credit, they’re rejected by potential employers and can’t get a job. More bills go unpaid, and credit crumbles further.

Fixed that for them.

Comment by DD
2009-12-15 15:32:04

Unless they were in school and not making the BIG paychecks you are so used to packy. Or they had had their original paycheck reduced so many X that there wasn’t room for a savings, or they had a health event that made them use up their savings. But then no one is a perfect as some.

 
 
Comment by wmbz
2009-12-15 15:39:50

Question?

When did checking ones credit rating become a prerequisite for employment, in general?

Comment by ET-Chicago
2009-12-15 16:19:15

Follow up question: Is it legal to discriminate against prospective employees based solely on credit ratings; if it is legal, why is it legal? A bad credit rating is not a crime.

 
Comment by Va Beyatch in Virginia Beach
2009-12-15 17:11:56

Popular with the gov’t for security clearances. Now everyone loves background checks and the like.

Comment by DD
2009-12-15 18:25:24

imho, this is a bad shift, lots of folks won’t be getting jobs that should but for - and I say this with the caveat- health events, loss of jobs etc. Real reasons for loss of fico. It would seem that as with most issues, one- company- should be looking at finding out why, 1st, before dismissing applicants.

(Comments wont nest below this level)
Comment by aNYCdj
2009-12-15 21:55:06

Oh DD you are so out of touch with reality. First you need ADULTS in HR to actually think about things like that. a 22 year old Brittney clone wouldn’t have the foggiest idea what you are talking about.

This would be my First edict as King: the oldest person in your company does the interviewing. No more 22 yo Brittney’s or Courtney’s or Amber’s…

You must have a qualified Adult to screen resumes and do the hiring.

when i was 21 and applied for my first tv job the chief engineer was 62 and I had to convince him that i could show up at 530 am and sign on the transmitter before i got the keys.

But today even If i give bouncy little Chloe a cd with all the latest rap and hip hop songs she still has no clue about what the job entails…and figures i’m too old anyway…

————————————————-
one- company- should be looking at finding out why, 1st, before dismissing applicants.

 
 
 
Comment by ecofeco
2009-12-16 01:50:18

Credit checks for employment became popular somewhere around the early 1990s.

 
 
 
Comment by wmbz
2009-12-15 15:35:24

Sahara closes two hotel towers due to low demand.
LAS VEGAS REVIEW-JOURNAL

The Sahara has closed two of its hotel towers for the holiday season due to low demand, the property confirmed through its public relations firm.

“Two towers of the Sahara Hotel will remain dark based on demand through the holiday winter,” an e-mail statement said. “Upon further demand, Sahara Hotel will make more rooms available.”

How many of the property’s 1,720 rooms remain open and how many people were laid off was not available.

The property also closed its buffet last week, something that happens every year during the holiday season.

Los Angeles-based SBE Entertainment owns the property.

The closing of two towers comes as Binion’s Gambling Hall & Hotel downtown closed its 365 rooms indefinitely yesterday and cut 100 jobs.

 
Comment by wmbz
2009-12-15 15:42:59

The North Face files lawsuit against parody.
AP –

ST. LOUIS - The North Face Apparel Corp. is suing a small suburban St. Louis-area company called The South Butt and the teenager who started it. The lawsuit filed last week in federal court in St. Louis seeks unspecified damages and asks the court to prohibit The South Butt from marketing and selling its parody product line.

Comment by DD
2009-12-15 15:49:40

Sorry to NF inc, but SB is funny.

And then today some in the senate are whining/crying elephant tears over the ‘pirating’ of intellectual property. Okay when corps do it, but apparently not okay now that China is doing it willynilly, and lots of US workers are working in China now… woopsy daisy.
ALERT : Slippery slope.

 
 
Comment by wmbz
2009-12-15 15:54:21

An arcade owner in eastern England discovered something of a gold mine when it comes to getting revenge on bankers. His new game is similar to whack a mole. Except whack a banker offers plastic, besuited, bald men all in a row. Bopping them on the head has been so popular, the arcade owner says his mallets are wearing out.

National Public Radio®.

RENEE MONTAGNE, host:

Good morning. I’m Renee Montagne. An arcade owner on seaside pier in Suffolk, England discovered something of a gold mine in beating up bankers. His new game is a take off on whack a mole. Except whack a banker offers plastic, bald men in suits all in a row. Bopping them on the head has been so popular, the arcade owner says his mallets are wearing out. And at 65 cents a go, players can come back for more without breaking the bank.

Comment by measton
2009-12-15 17:11:46

I want one for the house.

 
Comment by Muggy
2009-12-15 18:22:59

I will go in $50 to get one for PB.

Comment by DD
2009-12-15 18:26:54

Let’s get one for the HBB hookups!

 
 
Comment by SDGreg
2009-12-15 18:38:16

Here’s an online version:

http://www.gamesclub.com/whack-a-banker.htm

 
 
Comment by Sammy Schadenfreude
2009-12-15 17:40:36

Wanted to share an e-mail I got today from Ron Paul’s Campaign for Liberty organization.

Dear Friend of Liberty,

My son Rand has the status quo running scared in his race for Kentucky Senate. First, he outraised his opponent. Next, Rand took the lead in the polls. And now, the party insiders are scrambling.

We just found out that the National Republican Senatorial Committee has formed a joint fundraising committee to support Rand’s opponent. These party bosses are desperate to keep Rand out of the Senate because they know he will fight against the big government, high taxes and out of control spending that they helped create. Rand can win, but he needs your help.

On Wednesday December 16th, the grassroots are holding a Money Bomb for Rand. This date is of course the anniversary of the Boston Tea Party and the day we made history together by raising $6 million in one day. Please visit http://www.RandPaul2010.com and consider contributing whatever you are able. Every single contribution will help.

This situation reminds me of my return to Congress in 1996. A host of big name national Republicans did not want me back and came into my district to campaign for my opponent. But, with hard work and real grassroots support, I was able to win and come to Washington to fight for Liberty.

We can achieve the same type of victory for Rand if we all come together!

Again, I hope you can participate in Rand’s Money Bomb on December 16th at http://www.RandPaul2010.com

In Liberty,

Ron Paul

 
Comment by DD
2009-12-15 18:12:56

Topic:
U.S. House of Representatives
Monday, Dec 14, 2009 14:15 EST
Dear nobodies
A congressman writes to his constituents: “Thank God for gerrymandering”
By Michael Lind

http://tinyurl.com/yej6aze

Thank God for partisan gerrymandering. I owe my many terms as your member of Congress to the fact that our beloved district is rigged. After the 2000 Census, members of my party in the state Legislature drew the borders of my district to avoid the neighborhoods of people likely to vote against me, with limbs going out to rope in likely voters. The district goes down the highway, veers away at a right angle, wriggles through a parking lot and down an alley, flares out to take in an apartment complex and then shrinks again to avoid a suburb. Some people think the district looks like a boa constrictor that swallowed a porcupine. Others think it looks like Bart Simpson squashed by a steamroller. I think it’s beautiful.

I’m writing you now, my dear constituents, because, after the 2010 Census, my friends in the state Legislature, if they retain the majority, have promised to redraw the lines of our beloved district to give me an even safer seat, if that can be imagined. Some of you will be assigned by the Legislature to other newly gerrymandered districts. Not that I’ll notice. Unless you’ve given me more than $10,000, I wouldn’t know you from Adam.

 
Comment by SDGreg
2009-12-15 18:29:26

‘Makeover’ family battles foreclosure
TV show remodeled home five years ago

http://tinyurl.com/yav48k8

“Brian Wofford, a widowed father of eight whose home was transformed five years ago on the ABC show “Extreme Makeover: Home Edition,” is battling to save his Encinitas house from foreclosure.”

“In 2004, the “Extreme Makeover” team spent a week expanding the house from 1,212 square feet to 4,337 square feet and adding amenities such as a gym and backyard hot tub with a built-in, 15-inch flat-screen TV.”

I guess it wasn’t enough just to remodel the existing house. For some reason it needed to be more than tripled in size!

“The Woffords bought the home in 1989 for $186,700, property records show. He owes $770,000 on the house, including $140,000 in home equity loans, some of which went into his business.”

There are a lot of missing details on how he managed to balloon the debt by almost a half million dollars.

North Coast Calvary Chapel Pastor Mark Foreman said, “They’re going to land on their feet because their trust is in the Lord and somehow God’s going to take care of them.”

Statements like that make me want to hurl.

Comment by SaladSD
2009-12-15 21:46:54

We were discussing this story at the gym tonight. This father bought the house 20 years ago, for 189K (and we’re assuming a down payment was involved, since it was the late 80s) he gets a free makeover that triples the square footage, so I”m guessing the house was “worth” over a million during bubble time, and now the guy owes 770K? He claims 140K of that is an equity loan, so are we to assume the rest is the mortgage? How did this happen?

Comment by SDGreg
2009-12-15 22:43:51

You noted the same thing I did. Where did all the extra money go? When you more than triple the size of the house, isn’t that closer to a new house rather than a makeover. It must have been awful being one of the neighbors during that “makeover”.

Comment by CA renter
2009-12-16 05:55:20

The father was a widower who lost his wife to cancer, IIRC. They had eight children and lived in a ~1,200 sf house. The “Extreme Makeover” show almost always tears down a dangerous/unsuitable house and rebuilds a new one. This isn’t the first story where things didn’t work out, from what I remember.

Still, I also wonder where all that debt came from (maybe having to raise eight kids as a single parent with a failing business?). I thought the Extreme Makeovers were done for “free.”

We were familiar with that house, and the crowds were far worse than the actual construction. You couldn’t drive within a couple of blocks of that house during the filming.

(Comments wont nest below this level)
 
 
 
Comment by SaladSD
2009-12-15 21:57:57

Found this on the Leucadia blog (a community of Encinitas):

Submitted by Reader X:
In 2003, before the show aired, Wofford owed $330,000 on the house. After the show aired in 2004, they refinanced into a $450,000 loan. Then in January 2005, they took out a private party second position loan for $136,000. Then July 2005, they refinanced again into a $735,000 with the now defunct IndyMac Bank. Then in March 2007, they took out a second position HELOC with IndyMac for $70,000. The Notice of Default was filed on 7/22/2009.

So, that means that they borrowed almost $440,000 after the show aired

 
 
Comment by Sammy Schadenfreude
2009-12-15 19:12:10

http://www.huffingtonpost.com/

Bailout II: Citigroup getting a $38 BILLION dollar tax break. A bailout by any other name….

Is THIS the “hope & change” you Obama supporters had in mind? And please don’t remind me that McCain and Bush were just as bad; I’m already painfully aware. That’s why I supported Ron Paul.

Comment by James
2009-12-15 22:26:28

Sammy, I’m reposting this tomorrow. You beat me to it.

 
 
Comment by measton
2009-12-15 23:11:51

NEW YORK – Citigroup Inc. said Tuesday that the Abu Dhabi Investment Authority has filed a claim against the bank seeking to either terminate a deal to buy $7.5 billion worth of its stock or receive damages of more than $4 billion.

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds in the world, invested $7.5 billion in Citigroup in November 2007, offering the New York-based bank needed capital to offset big losses from mortgages and other investments.

The fund received equity units that paid a high annual dividend. The units were to be converted into Citigroup common shares at a price of up to $37.24 a share between March 15, 2010, and Sept. 15, 2011, making the fund one of Citi’s largest shareholders with a 4.9 percent stake.

At the time, the fund’s managing director said the investment reflected its confidence in “Citi’s potential to build shareholder value.” But the bank proved to be among the hardest hit by the credit crisis and rising loan defaults, and received one of the biggest taxpayer bailout packages — $45 billion in aid and protection against losses on more than $300 billion in assets.

Since the end of November 2007, Citi shares have tumbled 89 percent from the $33 range to less than $4. At $37.24 per share, the conversion price would amount to more than 10 times Citi’s closing stock price Tuesday of $3.56.

The fund’s arbitration claim, filed in New York, alleges “fraudulent misrepresentations” in connection with the sale.

In a statement, Citi said it believes the allegations are “entirely without merit and intends to defend against them vigorously.”

Ha ha Ha Ha!!! Help Ha Ha can’t stop.

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

Trackback responses to this post