The Housing Bubble

Merry Christmas Eve !

God bless us everyone

especially all our troops overseas & my son in Iraq

Recession Alters Migration Patterns in U.S. ~ WSJ-12-24-09

The recession has had a profound effect on migration patterns in the U.S., reversing the flow of people to former housing-boom states such as Florida and Nevada, the latest data from the Census Bureau show.

In the year ending July 1, 2009, Florida — once the top draw for Americans in search of work and warmer climes — lost more than 31,000 residents to other states, the Census Bureau reported Wednesday. Nevada lost nearly 4,000. The numbers are small compared with the states’ populations, but they reflect a significant change in direction: In the year ending July 2006, Florida and Nevada attracted net inflows 141,448 and 41,640 people, respectively.

“The recession coupled with the mortgage meltdown stopped the dominant migration story of the last decade in its tracks,” said William Frey, a demographer at the Brookings Institution, a Washington think tank. “The real question is when the Sunbelt states are going to be able to come back. These new numbers suggest no end in sight.”

Merry Christmas Eve everyone!!!

This is my fifth Christamas overseas, the second in the last three and a half years. Yet I am still overwhelmed to be serving our nation. Pray for our military members all around the world on this day…..

Also,

How about that Dow? Sales plunge and forclosures up! I think I may buy that mustang afterall!

Totally OT (thankfully, I’m the BB!).

I saw Avatar last night. Has anyone else seen this movie yet? I won’t put in an spoilers for anyone, but I was very disappointed (and had low expectations). I found it just barely watchable. The villains were totally over the top (I mean, OVER the top psycho killer type villains), the plot line was incredibly thin, the acting was between mediocre and poor… The political message was overpowering.. I just walked out of the room wondering what the heck is going on when the critics are giving this thing 4 stars and 2 thumbs up. I found it somewhat entertaining, although, frankly, I was looking for the “FF” button through much of the movie. The visuals are very good (the CGI), but, once again, they seem to not really know what to do with it (we’ll make a cool world and cat people who don’t seem to really follow the laws of physics.. And then we won’t explain, at all, why these people don’t fall the laws of physics). Once again, another “Matrix-esque” CGI show, without anything like a Matrix backstory to explain what’s going on.

I can’t remember a movie as hyped in recent history that I was so disappointed in (well, perhaps Matrix 2/3). The politics.. OMG.. 9/11, Iraq, Vietnam, oil production, energy utilization, corporate ethics.. It’s all in there. And unfortunately, all done in such a manner so to assault your senses with the directors opinion, rather than making a statement and letting you determine for yourself. There’s no thinking allowed in this movie; all the conclusions are drawn for you, and the conflicts are at about a 3rd graders level.

I would give this movie (not that anyone asked), 1.5 stars (out of 4). The CGI is good, and it’s not a 1 star (unwatchable) movie. But my goodness, make sure you don’t go in with high expectations.. Go for the CGI/art, that’s the good part. The rest is just a segue between the computer graphics.

Health Care Bill passes the senate. How would it affect the middle class?
I’m still not clear about specifics in the bill. Anyone know what this bill has in it.

Martin

Speaking of good will towards men…can anyone in the DC area recommend movers? I’m hoping to do the vast majority of the non-furniture stuff myself (with friends) since I’m getting possession of the apartment on Saturday and can’t use the freight elevator until the morning of New Year’s Eve, but I need movers to do the furniture. It will take a real truck - a pick up or a full size van won’t work - at least not under the time constraints in place, though I wouldn’t be surprised if two guys could pull it off as well as three.

Help!

http://www.pittsburghlive.com/x/pittsburghtrib/news/s_659234.html

Home sales are up and prices are down. Whodathunkit?

AHHHHH!

I just ran into a nice guy from high school, he’s a Realtor now.

Nooooooooooo!

A very Merry Christmas and Happy New Year to all. And if you’re not into Christmas, then Happy Holidays to you. I hope that all here and their loved ones have a happy, healthy, and prosperous 2010.

“The America Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”
-Alexis de Tocqueville

Well Alexis, it appears that day has arrived.

USA RIP?
Dec. 24, 2009

I’ll make this quick, but after 6 ( ! ) hearings and endless delays and prevarications and accusations by the former owner/attorney, (she accused my husband of getting a key from the tenant’s association and she accused the judge of an ex parte conference and wanted him to recuse himself from the case because she had voted for him at this last hearing), we finally were able to enter the office at 4:30 p.m. two days ago. Yikes ! Cats had been living in it, it was piled quite high with junk and filth, and it was quite depressing. ( She had gotten her legal files out prior to our entering, as verified by our attorney and the officer of the court.) However, our attorney and the officer of the court who had to be with us in case she made trouble ( she didn’t ) said they’d seen worse, and our atty. said it was a very nice size. We had a take-away company come and clear all of the trash out ( no legal documents were left whatsoever as our atty. had verified ), and strip all of the old carpeting out with cat stains on it…once that was done, and we got the locks changed, it began to look better. It was roomier than I had thought. Right now, we’re trying to decide whether to put down tile for a medical office, or go with parquet for a legal/accounting office. Any advice from the blog members ? We’re going to have all of the old wallpaper stripped ( she wrote all over parts of it with black magic marker ) and the walls painted an off-white. There is a short in the electrical and the plumbing has to be straightened out, plus I think the sump pump has to be replaced, but actually she left the bones of the office in good shape. I hope that this will be an end to the harassment. I hope she gets some help, actually. So, altogether, it turned out pretty well considering.

Never thought I’d say this, but kudos to Barney Frank and Paul Kanjorski for what appears to be some good reform regarding the ratings agencies. Their oligarchy, as empowered and enforced by the SEC, played a major role in the housing bubble of course.

Unfortunately it’s locking the barn door after the horse has escaped, however appears to be a good change nonetheless.

Did anybody read Grizzley’s post yesterday about his own healthcare situation? As one who hasn’t been to the doctor in 18 years (i’m 44), it really struck a cord with me. (To summarize he takes care of himself, but without health insurance, is at the mercy of the wellness gods)
Joe the lawyer had some sparkling advice for expensive medical bills-ignore them until they go into collection, then offer 25 % of the bill.
I have another technique and I’m two for two with it. as usual all comments welcome!

Situation: you are billed some astronomical sum for medical care, what to do?

First: send a letter indicating all the things you think are wrong with the bill, i.e. it’s unconscionable, the charges are no where near commensurate with the services received.

Second, when you get the next invoice send it back in with a check for $ xx (name your figure, $10 worked for me), but print on the back the following restrictive Indorsement:

FOR ACCOUNT #xxxx, indorsement hereon by indorser hereby satisfies all claims and demands by indorser against (your name) or his spouse for goods or services provided by indorser or any other party to (your name) from xx/xx/2009 to xx/xx/2009. Indorser hereby waives all claims and discharges (your name) and his spouse of all claims indorser may have against (your name) or her spouse.

the upshot is that the indorsement moves the discussion from whether or not services were rendered to whether or not the hospital accepted or did not accept the offered settlement. I don’t send an acccompanying letter along telling the billing department that the check is in fact an offer to settle. If you don’t lose the cancelled check, it’s pretty conclusive that they accepted your offer. They just process it like the knobs that they are. Voila!! That ugly indebtedness is wiped away.

Of course , should they attempt to collect or tarnish your credit history they can be sued for harassment or libel.

It only works for “disputed” money owed, so it doesn’t work for electric bills. But we know how hospitals pad their bills. Make sure yo save the check and that embellished first letter disputing the charges. I taped the check to a piece of paper and ran it through the printer, using large font for the ACCOUNT NUMBER and tiny font for the rest.

Enjoy the Equinox!

I know brokers have talked up stocks they were trying to unload from their “book” for years, but I think there is something especially sinister about forming CDOs and marketing them to any sucker with money to invest and then making bets that the CDOs will default by buying credit default swaps.

Am I just naive, or will this be the start of criminal action against Goldman et al?

http://www.nytimes.com/2009/12/24/business/24trading.html?_r=1&hp

And all through the mall there arose quite a chatter
They ran from the stores to see what was the matter
Cause over by Santa a picture was snapped
A good lookin lady jumped off of his lap
The children in line sceamed out Mom can you see!
The parents all said that`s just his Christmas tree
The manager yelled at the guard and the elf
Get Santa a present to cover himself
The mothers all blushed and their faces turned red
As visions of Santa now danced through their heads
Santa just smiled cause the doctor was right
The Viagra he gave him would be working all night
He told Donner and Blitzen I`m feelin so good
It`s been two-hundred years since I`ve had Christmas wood
And as Santa walked out on that cold winters day
That good lookin lady got into his sleigh
It`s a good thing that old Mrs. Claus never knew
What that lady and Santa were going to do
But that good lookin lady saved Christmas they say
Cause you can`t get down the chimney with your d##k that way.

Ho Ho Ho
Merry Christmas

My lazy American students

By Kara Miller
December 21, 2009
Boston.com

IT WAS the kind of student conference I hate.

“I’ll do better,’’ my student told me, leaning forward in his chair. “I know I’ve gotten behind this semester, but I’m going to turn things around. Would it be OK if I finished all my uncompleted work by Monday?’’

I sat silent for a moment. “Yes. But it’s important that you catch up completely this weekend, so that you’re not just perpetually behind.’’

A few weeks later, I would conduct a nearly identical conversation with two other students. And, again, there would be no tangible result: No make-up papers. No change in effort. No improvement in time management.

By the time students are in college, habits can be tough to change. If you’re used to playing video games like “Modern Warfare’’ or “Halo’’ all night, how do you fit in four hours of homework? Or rest up for class?

Teaching in college, especially one with a large international student population, has given me a stark - and unwelcome - illustration of how Americans’ work ethic often pales in comparison with their peers from overseas.

My “C,’’ “D,’’ and “F’’ students this semester are almost exclusively American, while my students from India, China, and Latin America have - despite language barriers - generally written solid papers, excelled on exams, and become valuable class participants.

One girl from Shanghai became a fixture at office hours, embraced our college writing center, and incessantly e-mailed me questions about her evolving papers. Her English is still mediocre: she frequently puts “the’’ everywhere (as in “the leader supported the feminism and the environmentalism’’) and confuses “his’’ and “her.’’ But that didn’t stop her from doing rewrite after rewrite, tirelessly trying to improve both structure and grammar.

Chinese undergraduates have consistently impressed me with their work ethic, though I have seen similar habits in students from India, Thailand, Brazil, and Venezuela. Often, they’ve done little English-language writing in their home countries, and they frequently struggle to understand my lectures. But their respect for professors - and for knowledge itself - is palpable. The students listen intently to everything I say, whether in class or during office hours, and try to engage in the conversation.

Too many 18-year-old Americans, meanwhile, text one another under their desks (certain they are sly enough to go unnoticed), check e-mail, decline to take notes, and appear tired and disengaged.

Of course, it would be wrong to suggest that all American students are the same. I’ve taught many who were hardworking, talented, and deeply impressive. They listened intently, enriched class discussions, and never shied away from rewrites. At their best, American students marry knowledge and innovation, resulting in some astoundingly creative work.

But creativity without knowledge - a common phenomenon - is just not enough.

Too many American students simply lack the basics. In 2002, a National Geographic-Roper survey found that most 18- to 24-year-olds could not find Afghanistan, Iraq, or Japan on a map, ranking them behind counterparts in Sweden, Great Britain, Canada, Italy, Japan, France, and Germany. And in 2007 the American Institutes for Research reported that eighth graders in even our best-performing states - like Massachusetts - scored below peers in Singapore, South Korea, and Japan, while students in our worst-performing states - like Mississippi - were on par with eighth graders in Slovakia, Romania, and Russia.

We’ve got a knowledge gap, spurred by a work-ethic gap.

Which brings me to another grade-challenged student, who once sprinted across campus to talk to me.

“I’m really sorry I missed office hours,’’ he said. “Do you have time to talk?’’

“I have a meeting in a couple of minutes,’’ I said. “But you can walk with me.’’

“OK,’’ he said. “I really enjoy your class, and I think I can do better. How can I improve my grade?’’

I looked at him sideways. “Well, you might start with staying awake.’’

“Yeah,’’ he grinned, looking at his shoes. “Sorry about that. There’s always stuff going on in my dorm late at night. I have to learn to be better about time management.’’

Of course, he had it exactly right. Success is all about time management, and in a globalizing economy, Americans’ inability to stay focused and work hard could prove to be a serious problem.

Nowhere, sadly, is this clearer than in the classroom.

Kara Miller teaches rhetoric and history at Babson College.

Merry Christmas to all.

Stpn2me……I’m totally and completely opposed to the wars we are involved in, but I certainly appreciate the fact you are prepared to serve our country at the behest of our elected government.

I sincerely hope you and all your comrades return in full health, both physically and mentally.

Cheers to everyone for a great 2010.

Even Eddie……..anyway, where is he?

Housing Crash Leads to a Falloff in Divorces

http://online.wsj.com/article/SB126126644360798923.html?mod=googlenews_wsj

“Shadow inventory” of divorces?

Groucho : ‘You can have any kind of a home you want. You can even get stucco. Oh, how you can get stucco.”

Housing crisis cuts U.S. mobility

By Dennis Cauchon and Paul Overberg, USA TODAY
The numbers of Americans moving to new states fell sharply this year, a casualty of the collapse in housing prices and the severe recession.

The Census Bureau reported Wednesday that fewer Americans moved this year than during any other time this decade.

“People are trapped,” says Yi Zhao, a Washington state demographer. “They can’t sell their house or they have a hard time getting credit for a new one.”
…

Bobcat Closing in Bismarck
12/24/2009

While many of us have the holiday off from work, nearly 500 Bobcat employees are leaving their jobs for good today. The West Fargo based company is shutting down manufacturing in Bismarck today after decades of operation.

For a final time, 475 employees will exit this building today. Many of which have worked years, or decades, in the plant constructing skid steer loaders, but also making friendships.

Shortly before the sun rose on the Bismarck Bobcat plant, for the final time on Wednesday, workers made their last entrance into a plant that many have dedicated their lives to.

“Started here back in the 70s. It ain`t a bad life, but everything comes to an end sooner or later,” said Roger Remmick, longtime Bobcat employee.

Among them 58-year-old Remmick, a painter of Bobcat equipment since his early 20s, said he felt like he was entering a wake rather than beginning his shift. “Nobody really wants to be here, but it`s the last day, might as well take it and say goodbye to your friends. I`ve met guys who work here and I`ve met their kids. Their kids even work here.”

Benson’s Economic & Market Trends
Jingle Mail, Jingle Mail~ Richard Benson Dec 24, 2009

Jingle All The Way;
Oh what fun it is today,
To just walk away!

Jingle Mail (also known as strategic mortgage default) is the happy-sounding phrase used by banks and mortgage servicers to describe homeowners who simply walk away from their homes and mail the keys back to the bank. The banker can hear the keys jingling in the envelope from a distance so even before it’s opened, he knows that for this loan the jig is up. Jingle Mail appears to be the new fad of giving over this holiday season, and next year many more of our neighbors will be seen mailing back keys. For a high percentage of the ten million homeowners with material negative equity, thought will turn to action even if they can afford to make the mortgage payment, because Jingle Mail can put a lot of money in their pockets!

Why are homeowners willing to walk away even if they can afford it? First, the government’s program for mortgage loan modification is an abject failure. To date, only a small percentage of home loans have been put on trial modification and of those that actually go to final modification, a very high percentage re-default and foreclose anyway. This program is not working because neither the Obama Administration or the banks or Fannie Mae/Freddie Mac, are willing to face cutting the principal owed on the mortgage balance to a realistic number. Second, Jingle Mail can be very profitable!

Here’s why Jingle Mail makes so much more sense than continuing to pay an inflated mortgage. Think about your average high-end homeowner. Let’s call him Joe. A few years ago, Joe listened to Alan Greenspan and took a huge amount of money out of his house with an adjustable rate or option ARM mortgage. If he bought that house for $900,000 with an option ARM mortgage of $850,000, since most of his interest has been accrued, his mortgage balance has now risen to $1,000,000, while his house has fallen in value to $600,000, leaving it worth $400,000 less than his mortgage balance. Ouch! His situation is crystal clear: He can pay forever, and never own the house!

http://www.321gold.com/editorials/benson/benson122409.html

http://www.eia.doe.gov/emeu/steo/pub/gifs/Fig15.gif

Economic recovery???

Prediction for next year: Next year’s expiration dates of housing market stimulus programs will be greeted with surprise announcements that they will be renewed, similar to the extension of Dough-4-Dumps beyond November 30, 2009. The strength of the recovery crucially depends on keeping these programs in place indefinitely.

* The Wall Street Journal
* DECEMBER 24, 2009

New-Home Sales Drop 11.3% As Impact of Stimulus Fades
BY KELLY EVANS

The U.S. economy is showing more signs of recovery, but new data on housing and household income underscored concerns that the economy could lose momentum next year as the impact of government stimulus fades.

Sales of newly built homes fell 11.3% in November to a seven-month low, the Commerce Department reported, as the government’s tax credit for first-time buyers was originally set to expire. “The housing rebound has so far been largely supported by government programs, raising questions of sustainability as these programs come to an end next year,” said BNP Paribas economist Anna Piretti.
…

¡ɹɐǝʎ ʍǝu ʎɹɹǝɯ ɐ puɐ sɐɯʇsıɹɥɔ ʎddɐɥ

Mortgages
Dec. 24, 2009, 10:18 a.m. EST

30-year mortgage jumps back over 5%
By Steve Kerch, MarketWatch

CHICAGO (MarketWatch) — Mortgage rates rose for a third straight week as the 30-year loan climbed back above the 5% level for the first time since Oct. 29, Freddie Mac said Thursday.

The mortgage agency’s weekly rate survey showed the national average on the 30-year mortgage at 5.05%, up from 4.94% a week ago but below its year-ago average of 5.14%. The 15-year loan, a popular refinancing choice, also jumped, to 4.45% from 4.38%. A year ago the 15-year loan was at 4.91%.

Adjustable-rate mortgages rose as well, but only slightly. The five-year Treasury-indexed hybrid ARM averaged 4.40%, up from 4.37%. The hybrid was at 5.49% a year ago. One-year Treasury-indexed ARMS averaged 4.38%, up from 4.34%. Last year at this time the ARM was at 4.95%.

To achieve the rates, the 30-year loan required the payment of an average 0.7 point; the other three loans needed 0.6 point. A point is 1% of the loan amount, charged as prepaid interest.

“Although interest rates for 30-year fixed-rate mortgages are above 5% this week for the first time since the end of October, they are still around 0.5 percentage points below this year’s peak set in mid-June,” said Frank Nothaft, Freddie Mac chief economist. “ARM rates increased by a lesser amount as the market consensus calls for no rate hikes by the Federal Reserve in the immediate future.”
…

Aloha and Mele Kalekemaka fron the Valley Island.
Wishing everyone a safe and happy Christmas. Wife is on the mainland with mom for Xmas. Just started on my first cup of homegrown. House is quiet and cold. Should get up to 80 today though.
Slept out on the deck last night. Watched falling stars for hours. A friend works for a mediun small window washing company. The are averaging 25 job applications a day. That is about how many workers he has. He could turn his staff over each week if he wanted to.
Maui has always been boom and bust. Welcome to the bust. The last few months have been one large garage sale as people leave the island. In the boom the state gave us brand new highways. They enlarged the airports. And a spiffy new interisland ferry. Well the ferry is done. Roads are wide open. And airport gates remain unused.
This is my third bust. And the biggest. Pattern is always the same. We are just ending the shake off the fleas stage. Up comes the backwater stage. The seeds for the next boom are planted. And this can last a lot longer than you think. I think the next boom will be in alt energy. Right now I pay $.30 kw/hr for power. Gas is close to $4.00.
Tourism is half of what it was. That model is pau, broken, done.

tonto.eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIMUS1&f=M

Oil imports don’t seem to be rising with economy?? I don’t understand why it takes them 3 months to release this kind of info.

The bond market has caught a whiff of recovery and budding inflation pressures. Next year the Fed will have to reveal whether it is serious about keeping the lid on inflation as the jobs recovery gathers steam.

Bond Report

Dec. 24, 2009, 11:36 a.m. EST

Treasurys slip after jobless claims, durable-goods orders
By Deborah Levine, MarketWatch

NEW YORK (Marketwatch) — Treasury prices declined on Thursday, pushing 10-year yields to four-month highs, after a pair of government reports showed jobless claims fell and a measure of durable-goods orders increased.

The data added to evidence of economic growth and deterred interest in U.S. debt during the holiday-thinned trading session.

Yields on 10-year notes (UST10Y 3.78, +0.03, +0.80%) rose 2 basis points to 3.78%, the loftiest seen since August. A basis point is 0.01% and yields move inversely to prices.

Yields on 2-year notes (UST2YR 0.95, +0.03, +3.70%) also increased, up 2 basis points to 0.94%, after having touched the highest on a closing basis since late October.

The Labor Department said first-time jobless claims in the latest week fell by 28,000 to 452,000, lower than expected by economists surveyed by MarketWatch. See more on jobless claims.

Separately, the Commerce Department said orders for durable goods, excluding volatile transportation orders, rose 2% last month. See more on durable-goods orders.

The claims and goods orders data “both smacked of an improved tone and helped maintain the pressure on bond prices,” Andrew Wilkinson, senior market analyst at Interactive Brokers, wrote in an email.
…

5) OECD Oil Consumption - Oil consumption in OECD countries increased by 413,000 b/d from June to July and decreased by 359,000 b/d from July to August, resulting in a consumption level of 43.46 million b/d in August. Average OECD oil consumption in 2009 through August was 43.83 million b/d, versus 46.10 and 47.68 million b/d in 2008 and 2007 respectively.

6) Chinese & Indian liquids demand - Oil consumption in China increased by 205,000 b/d from June to July and decreased by 115,000 b/d from July to August, resulting in a consumption level of 9.28 million b/d in August 2009. Average oil consumption in China in 2009 through August was 7.84 million b/d, versus 6.92 and 7.29 million b/d in respectively 2008 and 2007. Oil consumption in India decreased by 274,000 b/d from June to July and 52,000 b/d from July to August, resulting in a consumption level of 2.64 million b/d in August 2009. Average oil consumption in India in 2009 up to August was 2.86 million b/d, versus 2.60 and 2.43 million b/d in 2008 and 2007 respectively.

The Fed’s efforts to flatten risk premiums like pancakes appear to be working very, very well. Party on like it’s 1999, bulls!!!

The Financial Times
On Wall Street: A tonic that works too well
By Henny Sender

Published: December 23 2009 15:44 | Last updated: December 23 2009 15:44

Easy money in the form of zero interest rates is working its magic, reflating prices of financial assets in markets around the globe. In response, investors desperate for yield are plunging into riskier assets.

A few months ago, JPMorgan’s weekly Global Data Watch was advising readers to plough into the recovery trade, and then into the reflation trade. Now it is counseling them to “go for yield.”

“Investors should look for high beta and more distressed sectors to outperform,” it noted in mid-December. Those sectors include “high yield, collateralised loan obligations, AAA subprime securities and commercial mortgage backed securities.”

Is this Christmas 2009 or 2007? CLOs – vehicles that invest in bundles of bank loans – were supposed to have disappeared. And wasn’t it writing insurance on subprime securities that blew up AIG?

As asset prices recover, the question being asked is whether zero interest rate policies, especially in the US, are working too well, and are no longer reflecting more sober economic realities.

Yields in the junk bond market have fallen from 20 per cent to 9 per cent. This year, returns in the market overall were 56 per cent and those in the lower rated CCC group returned twice as much.

On its outlook call for 2010, Morgan Stanley’s analyst, Greg Peters told listeners: “We like the junkiest of the junk for next year.”
…

It’s shocking, but not surprising to watch one’s own country commit suicide, but the U.S. Congress is in a panic mode, and, in its confusion, is trying to end the grand political experiment begun 220 years ago.

“The current [medical care] bill does nothing to restrain the forces that are propelling healthcare costs into the stratosphere, namely: regulatory bans of insurance competition, the out-of-control medical malpractice industry, federal programs and subsidies, and a tax code that favors a third-party payment system – which alienates the patient from the cost of his care.” Multi-trillion dollar monstrosity.

The paragraph above is taken from an excellent brief summary of the consequences facing the people of the United States as their supposed leaders in Washington fall all over themselves to push through a frighteningly expensive socialized medical care bill.

The paragraph below applies absolutely to the present controversy although it was written 15 years ago.

“A mandate requiring all individuals to purchase health insurance would be an unprecedented form of federal action. The government has never required people to buy any good or service as a condition of lawful residence in the United States. An individual mandate would have two features that, in combination, would make it unique. First, it would impose a duty on individuals as members of society. Second, it would require people to purchase a specific service that would be heavily regulated by the federal government.” It’s Not Constitutional!!!

Just spoke with a local jeweler that I know. He said up until the last 2 days business was very slow. As of this afternoon he will have set a record for his stores Christmas sales. In over 30 years he said he has never seen anything like it, he is as happy as a clam.

Never underestimate the great American consumer! That’s what they do and no one does it better!

Arrow Trucking shuts down, thousands of truck drivers stranded
By KGNS News

Reports say Arrow Trucking based in Tulsa, Oklahoma unexpectedly shut down, leaving around 1,400 drivers without a job.

Arrow trucking has a station in Laredo. No trucks, no personnel, nothing, just an empty space.

Just three days before Christmas, Arrow Trucking told their drivers where to leave their trucks in the nearest arrow station without any answers.

Drivers were confused not knowing what just happened.

Jailhouse docs choose inmates over insurance.

NEW YORK (CNNMoney.com) — More doctors are dropping their private practices, choosing to go to work behind bars treating murderers, rapists and other hardened criminals.

Better pay, better hours, retirement benefits and free malpractice insurance are just a few of the reasons why physicians are picking prisoners over civilian patients.

Dr. Kurt Johnson, now a full-time physician to inmates after closing his solo practice this year, says he’s earning more, working less and spending more time with his family.

In 2009, private contractor Prison Health Services (PHS) saw a 77% increase over 2008 in the number of respondents applying for job opportunities.

At the University of Massachusetts Medical School, this year 22 of 150 new students chose the correctional health care clerkship as their first choice, more than double the typical response.

“Students are looking for an employer who offers flexible work hours and a steady paycheck. Correctional health care offers both,” said Dr. Michelle Staples-Horne, medical director for the Georgia Department of Juvenile Justice, adding that doctors who have stayed with a government agency long enough also benefit from pension plans.

Typically a salaried job with steady work hours, correctional physicians can earn starting salaries of around $140,000, according to Staples-Horne, roughly the same as the average school loan for graduating med students.

Yesterday, I had shared the fact that I don’t have health insurance, and that I’ve been suffering from a terrible stomach ache for around a week. CA Renter mentioned starting a charity for me, and I DO NOT want any charity. I WOULD NOT even consider accepting it. There are far more needy individuals than I. The only reason I posted what I did was in response to the discourse, and to highlight my struggles as someone who is uninsured. I will deal with this myself, though I appreciate her thoughtfulness, and especially the kindness of Elanor. Should anyone be wondering if good hearted people still exist, they need only read what these kind women posted as well as a few others.

Also, for insight into the contempt some health care industry insiders have for the plight of the common man with no insurance, read NoSingleOne’s comments.

Back in the USA, we could swear that we read a headline yesterday telling us that new home sales were rising. Today comes this Bloomberg headline:

“Sales of New Homes Unexpectedly Fell in November.”

That didn’t seem to stop consumers. They spent more! At least, that is what the noise said. Where did they get the money? Incomes apparently went up a little. Spending went up a little more.

And then there is another item on Bloomberg News this morning. A new law will take effect in February. Like every new law, it disrupts the old laws by which people organized their lives. This one decrees that credit card companies shall henceforth cease the practice known as “universal default.”

If a fellow defaults on one credit card, the other credit card companies rightly figure he’s likely to do the same to them. So they take precautions, cutting him off from future credit.

But the authorities want people to spend - apparently, even people who can’t pay their bills. So, they are outlawing the practice of “universal default.”

The term “unintended consequences” was invented for these occasions. As usual, the law produces the exact opposite results from those the politicians wanted. The credit card companies are tightening up on all their accounts, realizing that after the new law goes into effect in February, they will be less able to identify the bad accounts quickly and less able to control their losses.

According to Bloomberg, this threatens $9 billion in holiday season sales.

Blah…blah…blah…noise…noise…noise…

It’s best to shut it out…listen for the sound of reindeer bells…and look for a bright star in the East.

~ Clipped from The Daily Reckoning

Hey what happen to Barry’s bull$hit pay czar on this deal?

Regulator approves millions for Fannie, Freddie execs ~WASHINGTON
Thu Dec 24, 2009

WASHINGTON (Reuters) - The top U.S. housing regulator said on Thursday it approved 2009 pay packages of up to $6 million each for the chief executives of government-controlled mortgage giants Fannie Mae and Freddie Mac.

The approvals were part of a wider decision by the Federal Housing Finance Agency on executive salaries at both firms. FHFA Acting Director Edward DeMarco said, on average, executive pay at the companies had dropped 40 percent from where it stood before the government seized them last year.

In filings with the Securities and Exchange Commission, the companies said Fannie Mae CEO Michael Williams and Freddie Mac CEO Charles Haldeman would each receive up to $6 million in total compensation for 2009.

Freddie Mac said the same figure would apply to the Haldeman’s pay package for next year, as well.

Fannie Mae and Freddie Mac, which play a role in funding three-fourths of all U.S. residential mortgages, were seized by the government and put into conservatorship in September 2008 at the peak of the credit crisis.

To continue playing that role in the U.S. mortgage market, Fannie and Freddie must “attract and retain the talent needed to accomplish these objectives,” DeMarco said.

Test

Oh man, you know the end is near when two top ranking lunatic moonbat kooks can no longer get along!

Susan Sarandon, Tim Robbins split after 23 years

LOS ANGELES (AP) - One of Hollywood’s most enduring couples has separated.

Susan Sarandon and Tim Robbins, partners for 23 years and parents of two sons, split up over the summer, publicist Teal Cannady said in a statement Wednesday. She did not elaborate. They were never married.

Sorry, Virginia …
David Kyle Johnson ~ Va. News

Parents should stop teaching their kids to believe in Santa Claus. Reading stories about Santa is fine, and encouraging generosity and imagination is great. But tricking children into believing that an omniscient fat man, with a red suit and rosy cheeks, will slide down the chimney bestowing presents on Dec. 24 is just flat-out immoral.

First of all, it’s lying. It’s one thing to lie to save someone’s life, but stop kidding yourself. “It’s fun to watch the kids get excited” is hardly a noble cause. Nor is it harmless. I’ve amassed recollections of “finding out the truth about Santa,” and many were stories of genuine embarrassment and resentment. The systematic deception makes children feel taken advantage of or like the butt of a joke.

JIngle mail. First heard of it in 1955 , when working for State of Cal.
Real estate appraiser told me that in 1933 that people would come into the office and drop off their keys to their house when they owed $750 on the house, but they could buy a better one for $500.

Wasn’t a question of money to pay for loan, but just want to upgrade their living and lower the loan by 33%.

Amazing. We may see the same thing happening!

JackO

Good cheer for all you have survived to another Christmas Eve, time for the rum and noggin, and a hearty Christmas meal tomorrow

May the one above render his blessing on to you, even though you may disbelieve! May the world be good to you and yours, even though you may not deserve it!
May you remember the passed, enjoy those present, and believe in the future.

May you keep your weapons on hand, may your soul be at peace, and may the little problems in the world miss you completely.

Prepare for the worst, and enjoy the world if the worst does not happen!

Contribute what you can to better the world, your country, your state , your city , and you family, no matter how you contribute, contributel
Be not a taker unless you need!

JackO

Merry Christmas to all!

Really. All of you! Be safe and stay warm.

test - I’m at work.

Merry Christmas everyone. Please take care of yourself

Q. What’s the difference between Santa and Tiger Woods?

A. Santa knows it is best to stop after three ho’s.

Merry Christmas, from the U.S. Treasury to all members of the Real Estate Industrial Complex! Please pass the bubbly, so I can help respike the housing market punch bowl…

* The Wall Street Journal
* DECEMBER 24, 2009, 4:05 P.M. ET

U.S. Uncaps Support for Fannie, Freddie
By JESSICA HOLZER and MICHAEL R. CRITTENDEN

WASHINGTON — The U.S. Treasury said it would provide capital as needed to Fannie Mae and Freddie Mac over the next three years, effectively opening its checkbook to the government-controlled companies in a bid to reassure investors in their debt.

Treasury also will end its purchases of the companies’ mortgage-backed securities and terminate a never-used short-term liquidity facility set up for the firms and the Federal Home Loan Banks.

And it moved to allow the companies to shrink their giant portfolios of mortgage securities more slowly, though it said it was still “committed to the principle” of reducing the portfolios.

Treasury announced the moves in a Christmas Eve press release, a week before its authority to change the terms of its agreements with the companies was set to expire. After Dec. 31, Treasury would need the consent of Congress to make such changes.

So far, the government has pumped $60 billion into Fannie Mae and $51 billion into Freddie Mac to keep each company solvent since it seized the firms in September 2008 under a legal authority known as “conservatorship.” The companies, threatened by mounting mortgage defaults, were headed toward collapse.

At the time, the Treasury pledged to inject up to $100 billion of capital apiece as needed into the companies in exchange for preferred stock paying a 10% dividend. The Obama administration earlier this year doubled that commitment to $200 billion.

The new terms announced Thursday would allow the cap on Treasury’s support to increase by the amount of the total net loss the firms experience over the next three years, beginning on Jan. 1. The cap in place at the end of 2012 would apply thereafter.

The changes come as Fannie’s and Freddie’s regulator, the Federal Housing Finance Agency, on Thursday approved multimillion pay packages for the firms’ top executives. The pay announcement and the sweeping increase in the government’s commitment to backstop the companies are certain to stoke anger from the companies’ critics on Capitol Hill.

“The Obama administration’s decision to write a blank check with taxpayer dollars for the continued bailout of Fannie Mae and Freddie Mac is appalling,” said Rep. Scott Garrett (R., N.J.). He argued the timing of the announcement, on Christmas Eve, was “designed to try and sneak the bailout by the taxpayers.”
…

Merry Christmas to Ben and all the wonderful HBBers!

For those who have been here since the beginning, this is our **5th** Chrismas together! This bubble is going to take a long, long time before it’s resolved.