The Housing Bubble

So Blue, did you do the deal or what? Party at Blue’s house!!

Bank of America forecloses on house that couple had paid cash for:

http://www.tampabay.com/news/business/realestate/bank-of-america-forecloses-on-house-that-couple-had-paid-cash-for/1072632

Desolate malls, empty offices may come soon
Report: Defaults on commercial real estate loans a looming economic crisis. Feb. 11, 2010 (AP)

WASHINGTON - Over the next several years, failed commercial real estate loans could litter American cities with empty stores and office complexes, cause hundreds of bank failures and weaken the economy, a watchdog report says.

Banks face up to $300 billion in losses on loans made for commercial property and development, according to a report released Thursday by the Congressional Oversight Panel. The panel monitors the government’s efforts to stabilize the financial system.

The report says the defaults could lead to reduced lending and cause the eviction of families from rental properties. Bank failures also could contribute to job losses and hurt the economic recovery.

Fannie, Freddie Spreads Narrowest in 17 Years: Credit Markets

Feb. 12 (Bloomberg) — Traders are driving relative yields on Fannie Mae and Freddie Mac mortgage bonds that most influence the interest rates consumers pay to the lowest in 17 years, speculating cash the companies use to buy delinquent loans will be recycled back into the securities.

The difference between yields on Fannie Mae’s current- coupon 30-year securities, which trade closest to face value, and 10-year Treasuries narrowed to as little as 0.66 percentage point yesterday, matching the lowest since 1992, according to data compiled by Bloomberg.

Senate Dems offer stripped-down jobs bill after old bill hit for paltry job-making prospects.

WASHINGTON (AP) — Stung by criticism that a bipartisan jobs bill emerging in the Senate wouldn’t create many jobs, Senate Democrats on Thursday proposed a new, stripped-down version they hope will still get support from both Republicans and Democrats.

Republicans, however, accused Democrats of reneging on their deal, putting in jeopardy a short-lived attempt at bipartisan lawmaking.

Senate Majority Leader Harry Reid’s latest bill focuses on several popular provisions aimed at boosting job creation, including a new tax break negotiated with Republicans for companies that hire unemployed workers and for small businesses that purchase new equipment. It also would renew highway programs and help states and local governments finance large infrastructure projects.

WTH? So you couldn’t make it to work for a week and the job is lost? Now you file for unemployment.

Snowmageddon could cost up to 150,000 jobs in February
New York (CNNMoney.com) — This month’s blizzards are battering jobs.

Economists estimate that between 90,000 and 150,000 jobs could be lost in February, as the snow kept people home from work and stalled hiring during the month.

Analysts had been expecting good news on the jobs front, forecasting that payrolls would expand.

Instead, both people who have jobs and those who were set to start new positions couldn’t get to work because of the weather. As a result, they’ll file for unemployment benefits.

You gotta admit GS is a piece of work (or sh!t) depending on your point of view.

Goldman Sachs faces ‘Robin Hood tax’ vote-rigging claims.

The Robin Hood Tax campaign alleged that a Goldman computer was one of two computers that allegedly “spammed” the internet poll with more than 4,600 “no” votes in less than 20 minutes on Thursday.

Technical staff for the Robinhoodtax.org.uk website said the “no” counter increased at a “dramatic rate” from 3.41pm.

The number of “no” votes jumped from 1,400 to 6,000 before campaigners – who are calling for the introduction of 0.05pc tax on banking transactions – tightened the site’s security.

Robin Hood’s security team claimed it traced the erroneous votes to two computers, one of which is allegedly registered as belonging to Goldman.

A spokesman for Goldman said the bank had “just received this information and is investigating fully”.

German economic recovery loses steam.

BERLIN (AP) — Germany’s economic recovery unexpectedly lost momentum in the fourth quarter as output failed to grow from the previous three months, official data showed Friday.

The preliminary data for the October-December period show gross domestic product was unchanged compared with the previous three months, after quarterly gains in both the second and third quarters brought Europe’s biggest economy out of a deep recession.

The German government’s Federal Statistical Office identified exports, the traditional driver of the German economy, as the “only positive contribution.”

Otherwise, imports, consumer spending, and capital investment all fell, dragging the economy to stagnation.

Man Robs Banks to Pay Mortgage:

“The 73-year-old grandfather, who walks with a slow shuffle and needs help carrying the pots he sells at his garden store, said he didn’t want to hurt anybody. But he said he needed money”

http://www.tampabay.com/news/publicsafety/crime/police-tampa-man-73-robbed-banks-to-pay-mortgage/1072526

WTH? Another turd flushes itself from the cesspool. I thought all the democraps wanted to hang with team Barry for all that hope & change.

Rep. Patrick Kennedy Will Not Seek Re-Election (AP)

For the first time in nearly half a century, there may not be a member of the Kennedy clan in Congress.

In a video message posted to YouTube, eight-term Rep. Patrick Kennedy (D-RI) says his “life is taking a new direction” and he will not be a candidate for re-election this year.

Kennedy is the son of the late Sen. Edward Kennedy (D-MA) and the nephew of President John F. Kennedy. When elected to Congress in 1994, Kennedy was just 27 and the youngest member of the House.

Do any of you think we’d be nuts to buy a 3-story townhouse? Not for the financials, but for having kids up in the third story in fire districts that aren’t totally wrapped around high-rise rescue (like, say, Jersey City or NYC).

Weather report for the deep south today is…snow 2-4 inches. Which means the grocery store shelves with be devoid of all milk eggs and bread.

I’m on the way to load up on beer, wine and booze &steaks.

China surprises by raising banks’ required reserves. 2-12-10

BEIJING (Reuters) - China sprung a surprise on global markets on the eve of its New Year’s holiday with an increase in banks’ reserve requirements, a move that can slow bank lending and tamp down on rising inflation.

Although investors had been expecting the People’s Bank of China to push the reserve requirement ratio higher after an increase last month, few thought the second rise would come so soon.

Markets were rattled by fears that the pace of monetary tightening in China would be more aggressive than had been reckoned on, potentially denting global growth.

http://money.cnn.com/2010/02/11/real_estate/Citibank_alternative_to_foreclosure/

Anybody see the citi news?
6 months no payments if you leave the place in good shape….
making a policy out of the reality

Some RE news from Coeur d’Alene, Idaho.

Some friends who were moving out of state (only to be closer to grandkids) listed their small, old house in an ‘iffy’ neighborhood and didn’t get any serious inquiries for months. They were on the verge of a radical price drop when a bidding war broke out between two young ‘first-time’ buyers. They ended up selling for $500 more than the original listing price and are moving today.

Two observations:
1. The pool of FB’s is now down to enslaving post-teenagers who were receiving driving permits at the beginning of the bubble.
2. After the acne class become mortgage slaves, there will only be one group left….ironically…the Homeless.

Now we will find out if citizens are willing to do farm work.

http://www.nytimes.com/2010/02/12/us/12farm.html

DJIA = 10K or bust

Stocks open sharply lower
Chinese New Year tiger

CHINA
Lucky money
China’s central bank announces
surprise hike in reserve ratio.
• Oil falls 2% after China hikes
• Gold drops on Beijing’s move
• More gains in year of tiger?
• Asia’s resourceful Friday
U.S. stocks fall out of the starting blocks Friday, as the Dow Industrials shed more than 100 points in early trading.
• U.S. retail sales rebound in Jan.

Would you guys follow the advice of a newsletter whose authors did not even follow their own advice? Sounds crazy…

Peter Brimelow

Feb. 11, 2010, 12:01 a.m. EST

Nate Pile is nervous but not panicked … yet
Commentary: Letter with strong record sees stocks near danger levels

- Gold hit hard, but bugs buoyant

- Market direction in next few weeks crucial

By Peter Brimelow, MarketWatch

NEW YORK (MarketWatch) — Nate is nervous. But he’s nervous a lot and still has a strong stock market record.

In fact, Nate Pile of the Nate’s Notes service was also nervous when I last checked in — when the Dow Jones Industrial Average was also around 10,000. ( See Oct. 15, 2009, column.) But he stuck with stocks and had a great year.

Over the past 12 months, Nate’s Notes is up 65.56% by Hulbert Financial Digest count compared to 34.93% for the dividend-reinvested Wilshire 5000 Total Stock Market Index.

Nate’s Notes even has some claim to have anticipated, nervously, the Crash of 2008. ( See Mark Hulbert’s Sept. 11, 2009, column.) But, as happens surprisingly often in this business, the letter didn’t follow its own advice and had a disastrous year: down 42.3% versus a fall of 37.2% for the total return Wilshire 5000.
…

L.A. mayor urges new round of city job cuts ~ February 12, 2010

Los Angeles Mayor Antonio Villaraigosa announced a second round of city job cuts Thursday — between 1,200 and 2,000 positions — and warned that much deeper layoffs would be needed if the City Council and employee unions failed to act quickly on proposals to cut payroll costs, trim services and auction city assets.

market pulse

Feb. 12, 2010, 10:01 a.m. EST

Americans more pessimistic about economy: UMich
By Rex Nutting

WASHINGTON (MarketWatch) — Ameican consumers were more pessimitic about the path of the economy in February, according to media reports of a survey released Friday by the University of Michigan and Reuters. The UMich index fell to 73.7 in February from 74.4 in January.

ITEM: “The banks that are on the front lines of small-business lending are about to get hit by a tidal wave of commercial-loan failures,” said Elizabeth Warren, a law professor at Harvard University who heads the TARP oversight panel.

~ These little items keep jumping out at us. Some 3,000 small banks are in trouble with un-collectible commercial loans…shopping centers gone sour, etc…and these enterprises cannot bail themselves out by borrowing more money. Moreover, the banks won’t be in a position to lend it to them. More evidence that the “unwinding” of the distortions in the economy will take time. Lots of it.

I was browsing Craigslist, the post-Super Bowl listings have arrived.
It’s a motley mix of unrealistic FSBO wishing prices, Accidental LLs looking for tenants, and now scam RE outfits offering fixer-uppers -
starting at $125k.

We don’t need no stinkin’ expensive fixeruppers - here’s one that is still overpriced at $45k:

http://www.realtor.com/realestateandhomes-detail/222-Bethel-Ave_Aston_PA_19014_1113209749

Greek Slump Threatens Debt Plan, EU Aid Elusive.
Friday, 12 Feb 2010 ~ Reuters

Greece’s economy shrank more than feared last quarter and the government on Friday sharply revised down its figures for the previous three quarters as well, increasing doubts about its ability to resolve its debt crisis.

A European Union government source said meetings of the region’s finance ministers next week were unlikely to put together an aid package for Greece, suggesting governments were still unable to decide how to prevent the crisis from hurting financial markets’ faith in the euro zone.

Greek Prime Minister George Papandreou, saying his country had become “a guinea pig in a battle between Europe and the international markets,” blamed bickering among EU bodies for delaying support for his country.

Businesses cut inventories, revealing caution.
Unexpected decline of 0.2 percent in December comes despite rise in sales.

WASHINGTON - Businesses reduced inventories in December, a sign that they remain cautious about the strength and durability of the economic recovery.

The Commerce Department said Friday that businesses trimmed stockpiles by 0.2 percent in December, a weaker performance than the 0.2 percent gain that economists had expected. Total business sales rose 0.9 percent in December following a 2.4 percent increase in November.

Greece: How the Bond Vigilantes Left It in Ruins.
Now, Europe is under pressure to rescue the Greeks while keeping other EU members in line. ~ Business Week

The European Union’s experiment with a single currency is deep in crisis because Europe failed to learn from the Greeks. Not today’s Greeks—the ancient Greeks, specifically Odysseus, the hero of Homer’s epic poem. Odysseus knew his limitations. Realizing he was vulnerable to temptation, he ordered his sailors to tie him to the mast of his ship. That way he could listen to the bewitching song of the Sirens without obeying their call to steer the ship onto the rocks.

Today’s Sirens are the investors and traders of the global bond market, who lure nations into tapping abundant credit at low rates when times are good. If a nation borrows too much, those open-handed investors abruptly turn into vigilantes who punish the country by making new loans scarce and expensive. Greece has fallen into precisely that trap. It got low-interest loans by promising to behave responsibly and keep its budget deficit low.

That gained it admission to the single-currency zone in 2001. But because Greece was never tied to the mast, it kept spending. Its debt is now about 125% of gross domestic product, more than double the supposed EU ceiling. Eventually, all that debt brought down the wrath of the bond-market vigilantes, who drove up yields by betting against Greek debt, precipitating what has become the worst mess for the euro since the single currency’s launch on Jan. 1, 1999.

Clueless in the Capital Meets Small-Business Ire: Caroline Baum
Feb. 11 (Bloomberg) — “Washington doesn’t get it.”

That generic statement is tripping off the tongues of populists and Tea Partiers, business groups and bankers alike. In short, the public is peeved at the politicians.

I heard it this week from William Dunkelberg, chief economist of the National Federation of Independent Business, who used his group’s latest survey to opine on Washington’s deaf ear for helping small business.

The president and Congress “pay lip service to the fact that small business generates half of private-sector GDP and employs 60 percent or more of private-sector workers,” Dunkelberg says. As far as Washington’s efforts to help this sector of the economy, “instead of stimulus, give consumers a tax cut,” he says.

Man Up, Obama, or Make Way for President Palin: David Reilly

Feb. 12 (Bloomberg) — President Barack Obama is starting to look like the second coming of Jimmy Carter. If he’s going to avoid that fate, the president had better take radical action — and fast.

That means doing more than offering belated talk about jobs, or waging ineffectual on-again, off-again bank warfare. What, after all, is the point of bashing Wall Street only to then blow bonus kisses to JPMorgan Chase & Co. chief Jamie Dimon and Goldman Sachs Group Inc. head Lloyd Blankfein?

Obama needs to ditch his professorial, community-organizer mien and start cracking some heads. Unless, that is, he is intent on paving the way for a Palin presidency in 2013.

Supporters are crying out for Obama to pull out of his tailspin. In an article in Politico, Douglas Wilder, the nation’s first African-American governor and an early Obama supporter, urged the president to get his act together.

“The need is becoming more obvious by the day,” Wilder wrote. “Getting elected and getting things done for the people are two different jobs.”

Obama’s lack of resolve even makes comparisons to Carter seem charitable. Financial blogger Eric Salzman argued that we haven’t seen such a lack of leadership “in the White House since our 15th president, James Buchanan, stood by and let the country dissolve into Civil War while trying to appease everyone.”

What’s to be done? Here are three ways for Obama to man up, chart a new course and avert the kind of debacle that tarnished his party in the eyes of a generation of voters.

Learn From Clinton

– Bring congressional Democrats to heel with a Sister Souljah moment.

Speculation about a bubble in the housing market just looks wrongheaded. Although housing market activity is certainly at elevated levels, there’s little basis for believing that it will suddenly ratchet downward. The elements of a bubble-like condition simply don’t exist, and the laborious nature of real estate transactions is so great that liquidations are extremely unlikely to occur en masse.

Gee, an optimistic article on housing from thestreet.com….

Yesterday, while sitting and waiting at the DMV for my # to be called up, I sat by an IRS agent. (recent college grad-low demand major) 20 something, tattoo on her hip, and totally clueless. She claims she has had her UHS bid on *90+ REO homes, even above the list, and she didn’t get one. She said her Agent is older, and is guiding her like a father. More like the devil wears a name pin. She went on to give me the lowdown on REO’s. As Paco Trinadad (Author- book title “Lecturing Birds On Flying”- Leverage/Quants), here’s some kia lecturing a real adult.

*embellishment I hope

File under: “When Gov’t & Business clash”… or… “Dude, you guys are interfering with FREE Enterprise!”

Shop owners: Border Patrol spooking customers:
By BRITTANY LEVINE, the OC Register

“Some business owners at a San Juan Capistrano shopping center say routine checks by the U.S. Border Patrol are scaring away customers and hurting their bottom lines.”

“…Acosta, a paralegal who focuses on immigration law, said he is thinking about moving to another shopping center. The Border Patrol’s effect, combined with the slumping economy, has decreased his client base by hundreds, he said.”

Consumer Sentiment Index in U.S. Declined in February

Feb. 12 (Bloomberg) — Confidence among U.S. consumers unexpectedly fell in February from a two-year high, signaling Americans may not be convinced the job market is turning around.

The Reuters/University of Michigan preliminary consumer sentiment index dropped to 73.7 from January’s 74.4. The measure averaged 88.9 during the economic expansion that ended in December 2007.

China Urges U.S. to Cancel Obama-Dalai Lama Meeting Next Week.

Feb. 12 (Bloomberg) — China called on the U.S. to cancel a meeting between President Barack Obama and the Dalai Lama next week at the White House, saying it is “firmly” opposed to the event.

The Chinese government has had “stern” exchanges with the U.S. on the matter, Foreign Ministry spokesman Ma Zhaoxu today said in a statement from Beijing. White House press secretary Robert Gibbs yesterday said the meeting with the Tibetan spiritual leader will take place on Feb. 18.

http://www.tmz.com/2010/02/12/brian-austin-green-trouble-on-the-home-front/

Megan Fox’s boyfriend is an FB - he’s $70K behind on his mortgage payments as (allegedly) part of a clever strategy to force his lender to agree to a short sale - he bought at the peak of the market in 2006 and now wants to bail.

About time for a clever ChinIndia entrepreneur to place a winning bet on this RE purchase..the just have to change the H yo a B

Really? Hollywood sign covered to halt homes
February 11th, 2010, posted by Jeff Collins OC Register

“The famed Hollywood sign, once created to promote a housing development, now faces encroachment by a new housing development.

The land was purchased by industrialist Howard Hughes in 1940 to build a home for movie star Ginger Rogers, his intended bride. When that relationship ended, Hughes kept the land, and in 2002, his estate sold it to the investors who now own it. Two years ago, they put it on the market for $22 million, but it hasn’t sold. It is zoned for four homesites.”

By Paul B. Farrell, MarketWatch

ARROYO GRANDE, Calif. (MarketWatch) — Wake up investors. Are you prepared for the economic anarchy coming after a global-debt time bomb explodes? Are you thinking outside the box? Investing differently? Act now — tomorrow will be too late.

Start by looking past the endless cable skirmishes between Rush, Glenn, Bill and Shawn versus Harry, Nancy, Ben and Barack. Look way past the insurgency bonding Sarah and her diehard Tea Party revolutionaries with Ron Paul’s Neo-Reaganite ideologues, Fat-Cat Bankers and the Party of No, all planning a massive frontal assault on the 2010 elections, hell-bent on destroying the presidency. All that’s the sideshow.
Europe’s debt woes won’t recede

European stocks managed to look somewhere other than Greece, Spain and Portugal early Monday, but don’t bet on that lasting.

The Big One is coming soon, bigger than the 2000 dot-com crash and the 2008 subprime credit meltdown combined. A huge market blowout. And as Bloomberg-BusinessWeek predicts: “The results won’t be pretty for investors or elected officials.”

After the global-debt bomb explodes don’t expect a typical bear correction followed by a new bull. Wall Street’s toxic pseudo-capitalism is imploding. Be prepared for a massive meltdown. Yes, already the third major bubble-bust of the 21st century, triggered once again by Wall Street’s out-of-control Fat Cat Bankers. And it’s dead ahead.

February 2000.

Nasdaq reached its zenith.

Gold was near its low. Series I savings bond fixed rates were above 3%. Everyone was laughing at gold buyers and savings bonds buyers.

9/11/2001:

After the terrorism, more and more people started “cocooning,” (Faith Popcorn’s term). Buying houses were the rage.

2010:
Gold at a zenith? Not sure yet. But the sleeper investment for the next ten years is health care - your own - through preventive measures. Secondary, my guess, is T-bills, put your new money outside retirement plans into T-bills, reinvest them at maturity. Also stay debt free. And also invest in your own career. Good paying jobs are dwindling.

Looks like the DOW may turn green by days end. Can’t end the week on a sour note. Go PPT!

Oil Declines After Report Shows Increase in Crude Inventories:
February 12, 2010, By Margot Habiby

Feb. 12 (Bloomberg) — Crude oil futures fell after a U.S. government report showed a bigger-than-forecast increase in inventories.

BWAHAHHAHAHAHHAHAHHAHHAHAHAHHHHHHHHHHHHH!!! (fpss™)

Let’s make a list perhaps there’s a “pattern”:

1. Dow 10K
2. Oil $70.00
3. Gas $3.00
4. Unemployment 14%
5.

It used to be a big bad snowstorm reaked “Havoc” on oil prices, not so much anymore…

Why Obama May Back Down On Tax Hikes for the Rich.
Congress may do what it does best — postpone a tough decision until next year. ~ Kiplinger

What a difference a year makes. Twelve months ago, the conventional wisdom was that President Obama and the Democratic controlled Congress would have their way with tax policy, ramming through tax increases on upper income folks and businesses. Now, with Democrats having lost their supermajority in the Senate, tax hikes seem to be squarely on the back burner. Instead, Job No. 1 is boosting the economy. That means tax cuts, and lots of them.

Democratic leaders are so worried about the outcome of the midterm elections that they’re determined to quickly pass a new package of economic stimulus measures, the centerpiece of which is likely to be a credit for hiring the unemployed — a break that just a few months ago was nixed because of doubts that it would work as intended and fears that it could too easily be abused. And that’s not all: Among other things, small businesses can expect Congress to revive two popular breaks for one more year: 50% bonus first-year depreciation and the higher $250,000 limit on so-called Sec. 179 expensing of assets.

They need a gubner like this in California…

N.J. Gov. Christie Freezes Spending.
With State’s Budget In ‘Shambles,’ New Governor Slices Into School Surpluses, NJ Transit Subsidies; Dems Furious. ~ (CBS)

The snow isn’t the only thing that’s causing a chill in the Garden State.

Calling New Jersey’s budget a “shambles,” Gov. Chris Christie announced Thursday he is immediately freezing all state spending.

Saying New Jersey is on the verge of bankruptcy, Christie declared a fiscal emergency, announcing drastic cuts. Among them, aid to school districts that have excess surpluses.

Palin / Nader 2012!

(More fodder for the PeeParty “TrueAnger™” tea toaderlers)

Regulators Hired by Toyota Helped Halt Investigations:

Feb. 12 (Bloomberg) — Former regulators hired by Toyota Motor Corp. helped end at least four U.S. investigations of unintended acceleration by company vehicles in the last decade, warding off possible recalls, court and government records show.

Los Angeles Judge Warns of 300 Lay Offs ~ Feb 12, 2010

Presiding Judge Tim McCoy, of the Los Angeles Superior Court, has said that the court will lay off 300 people or more in March. The court employs more than 5,500 people and will have a $79 million deficit in 2010. McCoy said the deficit is expected to increase to $130 million. McCoy said that unless they receive external help from budget cuts that have been imposed on the courts lay offs will probably be inevitable.

In March 330 employees may be laid off. By June 30th, 485 positions will be lost and in September the court may lay off 500.

After the 2 blizzards in 1 week here in MD, there is going to be a little construction boom … so much damage to gutters, roofs, etc … We usually get 18 inches of snow a year and we’re already over 80″ …The damage in my neighborhood is incredible.

This is so special… Gubmint Motors is sh!t canning an American company to move to Mexico. Go team Barry!

Union: 135-worker Columbia City parts factory to close.
Associated Press Report ~ Feb 12, 2010

COLUMBIA CITY, Ind. (AP) — A union official says about 135 people will be out of work as a northeastern Indiana auto parts factory shuts down.
Related Content

It will be the second time in a year that Fort Wayne Foundry Corp. has closed its Columbia City plant.

The company restarted the factory in July, weeks after it laid off more than 600 workers by closing plants in Fort Wayne and Columbia City.

United Auto Workers Local 2242 vice president Dave Moore says it was told by the company that General Motors was moving the work to Mexico.

The foundry makes water pumps and other parts for GM.

ATHENS (Reuters) - Greece’s economy shrank more than feared last quarter and the government on Friday sharply revised down its figures for the previous three quarters as well, increasing doubts about its ability to resolve its debt crisis.

Do you think Greece has learned a thing or two from Wall Street.

You better bail us out or this whole sucker could go down.

Pat Buchanan sees it this way: “Some are angry over unchecked immigration and the failure to control our borders and send the illegals back. Some are angry over the loss of manufacturing jobs. Some are angry over winless wars in Afghanistan and Iraq. Some are angry over ethnic preferences they see as favoring minorities over them.

“What they agree upon, however, is that they have been treading water for a decade, working harder and harder with little or no improvement in their family standard of living. They see the government as taking more of their income in taxes, seeking more control over their institutions, creating entitlements for others not them, plunging the nation into un-payable debt, and inviting inflation or a default that can wipe out what they have saved.”

Commodities Corner
Myra P. Saefong

Feb. 12, 2010, 8:31 a.m. EST

Lumber’s gain is impressive, but its foundation’s not set

Robin Hood and Goldman Sachs, the movie

By Myra P. Saefong, MarketWatch

TOKYO (MarketWatch) — It’s tough to say that lumber’s climb to its highest price level in more than two years is built on solid ground.

After all, U.S. housing starts posted their lowest annual figure since 1945, slumping to 554,000 units in 2009 — the same year in which some experts said lumber demand dropped to the lowest point in modern history. See story on December housing starts.

But there’s a bigger story here that involves everything from actual and expected demand from China and Haiti, to the impact of global stimulus measures and production cutbacks in a market that has supposedly suffered along with the globe’s major economies.

At first glance, the lumber market doesn’t appear very miserable. Charts show that futures prices for lumber climbed to a high above $280 per 1,000 board feet on the Chicago Mercantile Exchange last week, the strongest level the market’s seen since August of 2007.

That marks a more than 60% climb from a year ago even though the home-building situation hasn’t really improved.

“Housing is still weak, yet lumber remains firm,” said Patrick Kerr, a managing director at Amerifutures Commodities & Options. That could mean a lot of things.

Maybe it’s an early indicator of an uptick in housing or due to a possibly strong spring housing season ahead of the expiration of the new home buyers’ tax credit on April 30, he said. It may also signal new demand from China, which has new construction laws allowing the use of lumber.

Either way, lumber’s strength indicates “true underlying demand [and] … could be an early sign that our economy is turning up,” said Kerr.
…

Snow in Charleston S.C., snow in Rome, where the hell is owlgore? Off on his hamster powered 100ft’ house boat? We have so many questions, that only a self qualified bull sh!t artist and scam master can answer.

What do we do, it’s winter and it’s cold. Throw us a life line here Al, what’s next? Rising oceans, melting ice capes, should we sell our beach front home and buy three rows back?

OU Student Collecting Pictures of Snow in All 50 States ~ Feb 11, 2010

NORMAN, Oklahoma — A University of Oklahoma student is taking an extra interest in this week’s snow storms in the south and northeast and is working to document the events in a very unique way.

Patrick Marsh said it’s likely by the end of the week snow will be on the ground in all 50 states.

From Ardmore all the way to Dallas and even in Louisiana, the south is snowed in. For many, it’s a winter wonderland in places that rarely see such weather. But none of it comes close to the mess up north where two blizzards have blown through in a week.

Weather like this is why Marsh is studying to be a meteorologist. Even as the snow fell outside the National Weather Center in Norman, inside Marsh was tracking what could be a rare winter weather phenomenon.

Marsh, a student employee at the NOAA’s National Severe Storms Laboratory in Norman, is currently trying to collect photos of snow on the ground in all 50 states.

“On Friday afternoon, I’m going to begin asking for photos of the snow,” Marsh said. “Hopefully I’ll get photos from all 50 states, and if I do, I’ll put them into a Google Earth map and make a snow snapshot of America.”

America’s Top Places for Boomers to Retire.

http://finance.yahoo.com/focus-retirement/article/108827/americas-top-places-to-retire?mod=fidelity-livingretirement

Houston’s January sales tax allocation down 12%
Houston Business Journal ~ February 12, 2010,

Houston will have to continue to pinch pennies as its allocation of sales tax revenue from the state for the month of January declines again, according to figures released Friday by the Texas Comptroller.

The city will receive $51.4 million, down 12.4 percent from $58.7 million in January 2009. This is the third straight month of double-digit declines in the Bayou City’s portion of sales tax revenue.

Overall, the state collected $1.66 billion in sales tax last month, down 14.2 percent from the same month last year.

Texas Comptroller Susan Combs said she expects to see some revenue growth to return during the second quarter.

“Collections continue to be down in major industry sectors like retail trade, oil and natural gas production, construction and manufacturing,” she said in a statement.

100 facing layoffs as Uniondale company moves
February 12, 2010 Newsday ~ Long Island

Uniondale-based Interstate National Dealer Services Inc., which sells extended warranties for vehicles and boats, has filed a plant closing notice with the state Department of Labor, saying it will lay off 100 workers by early May and will move to Georgia.

Damn, they must have some dainty bottoms in the UK.

Store unveils cashmere toilet paper.

LONDON, Feb. 11 (UPI) — A high-end British supermarket promises its latest brand of toilet paper, made with cashmere, is “the most luxurious yet.”

Carla Smith, buyer for supermarket Waitrose, said the cashmere paper is the latest in a line that includes toilet paper with aloe vera and jojoba extracts, The Sun reported Thursday.

“Cashmere provides that stamp of quality to any fashion garment, from a designer suit to the finest luxury knitwear,” Smith said. “It’s indulgent, it’s stylish and it’s helping provide that extra softness to our new premium bathroom tissue collection.”

Georgian Olympic Men’s Luger Dies in Training Crash.

Feb. 12 (Bloomberg) — Georgian luge slider Nodar Kumaritashvili died after a high-speed crash during the final training run for the men’s singles event at the Winter Olympics, the Associated Press reported.

Kumaritashvili, 21, was thrown off his sled and collided with an unpadded steel support pole outside the track today near Whistler, British Columbia. In video replays of the crash, Kumaritashvili appeared to hit his head on the pole and lay motionless after contact.

Rap is not, nor has ever been music…

Brazil mayor bans funk, rap music as Carnival begins. ~ Feb 12, 2010

RIO DE JANEIRO (Reuters) - A mayor of a Brazilian town has banned Carnival revelers from playing funk or rap music during the traditionally free-wheeling celebrations that kick off around the country on Friday.

Mayor Jose Neto of Sao Lourenco in southeastern Minas Gerais state told Globo television he was banning songs that incite violence and disrespect authority and wanted to protect more traditional Carnival music, such as samba.

Anyone caught listening to funk — a pounding beat often with sexual lyrics popular in Rio de Janeiro’s slums — or rap during the Carnival period would have to turn it off or face arrest and up to six months in prison, he reportedly said.

“They are mass gatherings that demand better coordination, control and security that a public festival like Carnival doesn’t allow us to adopt,” Neto told Globo TV.

Funk music has long been frowned upon by police and city authorities in Rio and faced crackdowns because of its association with slum gangs who use parties to sell drugs. But the music form, which originated in U.S. slums in the late 1960s, has increasingly found a mainstream following in Brazil and as far away as Europe.

Alfa Romeo may return to N.America within 2 years ~ Feb 12, 2010

TORONTO (Reuters) - Alfa Romeo is likely to return to North America by 2012 after a 15-year hiatus, the head of Fiat SpA (FIA.MI), the company that makes the classic Italian sports car, said on Friday.

The brand was last sold in the U.S. market in 1995, and Fiat has pushed back its return several times.

“I’m a lot more confident now … that Alfa Romeo will reconstitute a product offering that is acceptable globally, and more in particular in the United States and Canada,” Fiat Chief Executive Sergio Marchionne said in Toronto.

“There is a strong likelihood that the brand will be back here within the next 24 months.”

AP is reporting the Marines in Afghanistan have launched their long-anticipated assault on the Taliban stronghold of Marjah. This could be a bloody battle. Please keep them and their families in your thoughts and prayers.

West Corp. To Lay Off 193 Workers ~ February 12, 2010
OMAHA, Neb.

The layoffs, comprising about 17 percent of the company’s Nebraska call center staff, come in response to the loss of a program. The client using the program decided to move its operations off-shore to save costs, Pleiss said.

He wouldn’t identify the company. All the laid-off employees work in the call center.

Pleiss said about 75 of the laid-off employees will be moved to a program that allows them to do similar work from their homes. He didn’t mention if they’d make the same wages.

The Great Highway Robbery Continues: How The FDIC Is Legally Transferring Billions In Taxpayer Money To Hedge Funds
Submitted by Tyler Durden on 02/10/2010 13:57 -0500

Federal Deposit Insurance Corporation Insider Trading Mary Schapiro Sheila Bair

It is not a secret to anyone who has been closely following the FDIC’s quasi criminal bank takeover practices over the past year, that acquirors of failed banks end up receiving a massive and risk-free gift in the form of taxpayer benefits via the FDIC when it comes to funding losses on a given bank acquisition. Should there be a short sale resulting in a loss to the full principal (not the cost basis mind you)? Not to worry, Sheila Bair is there to hand out taxpayer money to the hedge funds/banks owning the newly transferred assets. A recent example of this was the glaring insider trading which preceded the acquisition of failed AmTrust Bank by New York Community Bancorp, in which both NYB and those who bought calls in advance of information being made public, made massive illegal profits. And as the SEC continues to pretend like this episode never happened, we remind the intellectually subprime Mary Schapiro to finally pursue those involved, and will continue doing so for as long as it takes. But back to the FDIC: the folks at Think Big Work Small have compiled a terrific video detailing exactly how several hedge funds, currently owners of recently created shell holding company OneWest Bank, are picking apart the carcass of failed IndyMac, all the while encouraging short sales (instead of loan mods) as only that way do they get to benefit fully from the taxpayer funded FDIC loss-share arrangements which makes the IndyMac transaction an immediate slam dunk for everyone involved…except America’s taxpayers, and the FDIC’s ever depleting DIF reserve.

As the authors appropriately title the video, this is indeed a slap in our face. And this goes on every single bailout Friday when the FDIC continues handing out billions of dollars under the guise of “loss sharing” arrangements, which is simply a guaranteed profit from the acquirors’ cost basis to 90% of the original loan value: an instantaneous 30% risk free IRR.

Wow where do I sign up for this

The sky-high rates may be a sign of things to come in the market for so-called subprime credit cards as issuers who lend to the riskiest of borrowers try to figure out how to stay in business and comply with the new credit card reform law.

“We need to price our product based on the risk associated with this market and allow the customer to make the decision whether they want the product or not,” according to a statement issued by Miles Beacom, CEO of Premier Bankcard, the South Dakota credit card marketer that mailed test offers in September and October featuring 79.9 percent and 59.9 percent annual percentage rates (APRs) on cards with $300 credit limits. Premier markets credit cards issued by First Premier Bank.

Yes, It’s Legal

A national bank charging 79.9 percent interest on a credit card is legal — as long as the issuer fully discloses the terms as required by the federal Truth in Lending Act. Still, the high rate has been met with shock across the country because it is so much higher than prevailing APRs and penatly interest rates. The CreditCards.com Weekly Rate report national average for bad credit credit cards was 14.15 percent on Feb. 12.

I should note that premire bank was the only bank to give a credit card to an identity theft that targeted Measton. I don’t think there credit check standards are high.

Here is an example of the units we’re looking at. We’re thinking of writing offers in the 160k range.

http://floridamoves.com/Property/propertydetails.aspx?SearchID=12018399&PropertyGUID=11CC191E-4895-43E3-BC14-F7A492591B3A&RowNum=9

This should free up a lot of cash for new home purchases

TRENTON, N.J. (AP) — Consumers in at least four states who buy their own health insurance are getting hit with premium increases of 15 percent or more — and people in other states could see the same thing.

Anthem Blue Cross, a subsidiary of WellPoint Inc., has been under fire for a week from regulators and politicians for notifying some of its 800,000 individual policyholders in California that it plans to raise rates by up to 39 percent March 1.

The Anthem Blue Cross plan in Maine is asking for increases of about 23 percent this year for some individual policyholders. Last year, they raised rates up to 32 percent.

Kansas had one recent case where one insurer wanting to raise most individual rates 20 percent to 30 percent was persuaded by state insurance officials to reduce the increases to 10 percent to 20 percent. The insurance department would not identify the company but said it was not Anthem.

And in Oregon, multiple insurers were granted rate hikes of 15 percent or more this year after increases of around 25 percent last year for customers who purchase individual health insurance, rather than getting it through their employer.

Now that we got that pesky public option out of the way, bring out the thumb screws and water boarding kit.

The Icelandic government and opposition parties are finalising a proposal in which the bulk of the amount owed to the two EU countries would be covered by a sale of the failed bank’s assets, said the source who asked not to be named.

“They have agreed amongst themselves about the structure of a proposal,” the source told Reuters, referring to the government and opposition parties.

Britain and the Netherlands have already covered losses incurred by savers who had invested in Landsbanki’s Icesave online high-interest savings accounts and have insisted that Iceland pay the money back.

Iceland could enter into talks with the British and Dutch governments over the new proposal as early as next week, Icelandic state radio reported.

This is brilliant, telling Britain and Holland that they can use all the money made from selling the worthless POS assetts held by the departed banks.