Bits Bucket For April 10, 2010
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The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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The surreal, never-ending housing bust story really does never end, does it?
* HOMES
* APRIL 9, 2010
Foreclosures Hit Rich and Famous
By CRAIG KARMIN And JAMES R. HAGERTY
The rich and famous now have something in common with hundreds of thousands of middle and lower-class Americans: The bank is about to take their homes.
Houses with loans of $5 million or more will likely see a sharp rise in foreclosures this year, according to a RealtyTrac study for The Wall Street Journal.
Banks had scheduled a foreclosure auction of Richard Fuscone’s Westchester County, N.Y., mansion this week. But the former top Wall Street executive declared personal bankruptcy, delaying the auction.
Just this week, a Tudor mansion in Bel-Air belonging to film star Nicolas Cage was in foreclosure auction and reverted to the lender. On Wednesday, Richard Fuscone, a former top Wall Street executive, declared personal bankruptcy, forestalling a foreclosure auction that had been scheduled this week on his 14-acre Westchester mansion. Last month a Manhattan condominium owned by Italian film producer Vittorio Cecchi Gori was sold in a foreclosure auction for $33.2 million.
In February alone, 352 homes nationwide in this category were scheduled for foreclosure auction, the final step before a bank acquisition. That is the largest monthly number of these so-called notices of sale since the financial crisis began. By comparison, in all of 2009, there were 1,312 such notices.
Economists say the super-wealthy are among the last to lose their homes in a mortgage crisis because they usually have high savings, better access to credit and other means for staving off foreclosure. But many of them work in financial services and other industries hit especially hard by the crisis, and have seen their wealth shrink in the market crash.
While the numbers are modest compared with foreclosures at other income levels, they suggest the possibility of a sudden spike in bank takeovers of the wealthiest Americans’ property. Typically half the notices of sale result in homes being turned over to creditors, though the figure could be slightly lower for the richest Americans who have more financial options, according to Daren Blomquist at RealtyTrac.
Big borrowers are more likely to default than ordinary people, according to data from First American CoreLogic. Its loan database, reflecting more than 80% of the overall home-loan market, includes 1,700 loans with balances of $4 million or more. About 14.8% of those loans were 90 days or more overdue at the end of January, compared with 8.7% for all home loans tracked by First American. Sam Khater, a senior economist at First American, said the bigger borrowers may be more prone to stop making payments when they have lost all their home equity.
Mr. Fuscone, Merrill Lynch’s one-time head of Latin America, put his mansion up for sale in November, asking $13.9 million. But he couldn’t find a buyer.
The court had scheduled a foreclosure auction for Thursday for the 18,471-square-foot mansion—with two swimming pools, two elevators, six fireplaces, 11 bathrooms and a seven-car garage. The personal bankruptcy filed in U.S. Bankruptcy Court Wednesday temporarily freezes the foreclosure process.
Reached by phone, Mr. Fuscone declined to comment. Brokers and real estate tracking companies say that his home is one of the most expensive properties to face foreclosure proceedings yet.
The phenomenon is not limited to the New York area. Banks have taken over homes with loans of $5 million or more in Georgia, North Carolina and Colorado, RealtyTrac says.
Mr. Cage had tried to sell his 11,817-square-foot Bel-Air property for $35 million but failed to get any offers, said James Chalke, a real-estate agent who had the listing. At a foreclosure sale Wednesday, the property attracted no bids from investors and so was acquired by the foreclosing lender. Annett Wolf, a spokeswoman for Mr. Cage, said he had no comment.
A representative of Mr. Cecchi Gori, producer of more than 200 films including “Il Postino” and “Life is Beautiful,” said his financial situation is improving.
…
Out of my way…We’re 1st of the Worst Today according to Forbes and msnbc
“The worst-selling housing markets in America
On the list: San Diego, Cincinnati, New York, San Francisco and St. Louis.By Francesca Levy
updated 7:07 a.m. CT, Fri., April 9, 2010
Milwaukee, Wis., is home to Miller Brewing, one of the country’s biggest beer makers. That’s good news for home-sellers there, they probably need a drink more than ever. Milwaukee is the big city with the worst-selling housing market in America.
Last year in Milwaukee, unsold homes clogged the market — 42 percent more at the end of 2009 than the same time the previous year. During the housing boom, developers built copious luxury condominiums to meet rising demand, often far from the city center. Now that the market has contracted, those gleaming but remote designer apartments are harder than ever to sell, affecting the larger housing market…”
http://tinyurl.com/y3rc2es
Nobody in the Greater Milwaukee Area saw this coming ..except Ben and a few others on the HBB ?
Yeah Right…The Rusty Iron Curtain of the RE Mafia couldn’t hide this news or fool us Forever!
All the Chicagoans moving to Milwaukee and Madison in search of a slightly scaled back, cheese-curd filled life either can’t sell their own homes or can’t find jobs up there. So one of the major demographics for those silly condos got stucco.
Jobs !!
We don’t have time for any stinking jobs in Wisconsin.
We’re too busy trying to move and flip these 1920-50 era energy sucking rat traps with each other to make room for more condos.
Buy condos buy…buy condos buy.
The bad news is that Cage may have to steal the Declaration of Independence for real this time. Actually, if he has to make a boatload of movies that would not be bad at all. He has grown on me as an actor.
Just more evidence that everyone leveraged. Even if Cage can get a few gigs at $4 Million a pop, that’s 10-15 movies after taxes that he has to do! Seems impossible.
Thus, he will have to steal the Declaration of Independence.
4 million a pop? Cage makes $20 million a pop last time I checked!
“He has grown on me as an actor.”
Take your hands…. off… the bunny.
I always liked him as an actor, but after reading about his greed disease and the subsequent blame of his adviser when things didn’t work out on his flipping fantasy, I’ve had a change of heart about the guy.
Wow — I was thinking along the same lines. The world may enjoy a richer heritage of Nicholas Cage movies, thanks to the incentive for him to work his way out of a large overhang of bad debt.
Could one source of the recent uptick in consumption spending be people living in $1m+ homes who stopped paying their mortgages?
WSJ Blogs
Developments
Real estate news and analysis from The Wall Street Journal
* Without the Fed, Mortgage Rates Bounce Around
* Friday Diversion: Diane Keaton Relists; Twitter Co-Founder Sells
* April 9, 2010, 9:39 AM ET
The Rich Are Different: They Default More Often
By James R. Hagerty
In today’s Journal, we take a peek at foreclosures of the rich and famous.
One of our findings was that people who bought some of the most expensive homes in America now are far more likely to be behind on their mortgages than are ordinary Joes–though the ordinary Joes aren’t doing very well either in that department.
We got this interesting data from First American CoreLogic, whose loan database covers more than 80% of the overall home-loan market. That database includes 1,700 mortgage loans with balances of $4 million or more. About 14.8% of those loans were 90 days or more overdue at the end of January, compared with 8.7% for all home loans tracked by First American.
What’s going on here? Sam Khater, a senior economist at First American, said his theory is that the borrowers with huge loans may be more inclined than people of lesser means to decide it isn’t worth paying the lender any more once the value of the home crashes far below the loan balance.
Another possibility is that many of those borrowers were high rollers on Wall Street who have lost much or all of their incomes and no longer can keep up their Gatsby-esque lifestyles.
Many of them, of course, were able to stave off foreclosure for a long spell. “If you take your average subprime borrower who loses his job, he has almost no savings to fall back on,” says Joe Garrett, a bank consultant at Garrett, Watts & Co. in Berkeley, Calif. So foreclosure may occur within months. “A wealthy borrower can last much longer,” Mr. Garrett notes. “He’s got a variety of investments that can be liquidated over time.”
Don’t expect the homeless shelters to be thronged with former owners of mansions, though, because there just aren’t that many real mansions (as opposed to tacky suburban McMansions). Zillow dot com, a real estate data firm that has market-value estimates on about three-quarters of all U.S. homes, says 36,167 of them are valued at more than $5 million. That’s about 0.04% of all U.S. homes in Zillow’s data base.
My guess is that these high priced foreclosures consist of
1. Retired rich who lost money during the crash and or have see the dividends and more secure investments return less and less.
In my area I’ve seen a few mansions go on craigslist for rent. I can’t imagine these people would rent if they were not in bad shape financially.
2. People who used to make piles of money off those with free money from home equity loans. That money is gone. The bailout really was concentrated in a small # of hands.
I was watching an episode of “Stage this house” on Canadian HGTV, Its like everything that happened in the US all over again. Lots of Beamers and Mercedees on the roads and unreal hosing prices.
Does anyone know what the average incomes in Toronto, Montreal, Vancouver and Edmondton are.
I met a lady back at home in Henderson, NV that is from Saskatoon and she made a comment as to how housing pricices in Canada are increasing and how strong the Canadian economy is. I agree that they have faired somewhat better than the US economy, however they have still been affected.
In Montreal the Shell refinery is closing and I know othera areas that are loosing jobs, Vale Inco has had one of the longest strikes in history, however I don’t know where the STRENGTH of the Canadian economy is??
Commodities, oil, denial.
PRINCETON, NJ — Fifty-seven percent of registered voters say the economy will be extremely important to their vote for Congress this year, making it the top issue in the 2010 elections. Healthcare, unemployment, and the federal budget deficit rank behind the economy in importance, with the environment the least important of the seven issues tested in the March 26-28 USA Today/Gallup poll.
< Voters will have a lot of soul-searching to do before the November elections, asking themselves such questions as “What did my representative in Congress do to keep the nation from falling into an economic crisis? “
And of that 57% more than 99% will have no clue that at the root of all of these problems is The Federal Reserve and its printing press. The voters will wedge their craniums between their butt cheeks and vote their most narrow self-interest once again. And in the distance you will hear a faint laughing sound coming from a chrome-domed bearded academic and his many henchmen.
Polls are fun.. but it’s quicker to just scan the MSM headlines. Whatever dominates them is what dominates people’s brains.
In real life, what does a person care more about.. the state of the economy (whatever that means) or keeping their own job? It has to be their job.
Since this survey says more voters are concerned with the economy than unemployment, it must follow that they think their jobs are secure, which is good news for incumbents.
Americans’ Confidence in Banks Remains at Historical Low Gallup 4/06/10
The percentage of Americans saying they have a “great deal” or “quite a lot” of confidence in U.S. banks is now 20% — not much different from the 18% of a year ago or the 22% of last summer. Four in 10 Americans currently say they have “very little” confidence in U.S. financial institutions.
Wow.. that’s an interesting.. err.. fact.
Having lost confidence in banks, where are they keeping their money these days?
How true, Joey. When I talk to individuals they are far more interested in keeping their own job, pay, benefits, raises, more than any interest in what would be best for the overall economy. “I’m different/special!”
I didn’t even pay attention to the fact that this was from Princeton, NJ. These people have Bernanke and Krugman in their backyards and still cant’ figure out why our economy is destroyed? I think if we just spend our way out of our debt problem everything should work out well.
What a country. Most people say they will cast their vote for government based on what has happened in the private economy, and not things the government is actually responsible for.
How about a little soul searching about their own lifestyle, and spending relative to earning? Given what happened in consumer borrowing, I can see where representatives in Congress got their idea of how to run public fiscal policy.
+1000. People are dumb.
What’s the point of voting? The system is fixed.
I recently quit voting. But I was on strike against this system in other ways: I dumped my real estate in the 1990s, came close to marrying a decade ago, but decided for the better. Never became a father.
I’m not a model citizen. The only sanction I give to the system is that I pay all my taxes due. That’s only to keep out of their prisons and to keep my wages from being garnished.
Let the tax recipients do all the child bearing and the voting. They are beginning to find out that the few productive people in this country don’t have enough to feed the parasites.
Out of the $1.5 billion given to five states to prevent foreclosures, for Arizona it will only help 4,000 out of 50,000 homes threatened by foreclosure.
They are beginning to find out that the few productive people in this country don’t have enough to feed the parasites.
And they’re starting to figure out why. It’s because many of the productive people are really just lazy corporate-socialists who are too busy sucking the milk out of the people and stealing taxpayer money through government contracts, or by supporting policies that gut our capitalist economic base in favor for more profits for the corporate socialists shareholders.
This was an OK bargain when the corporate-socialists would create jobs in the USA but they got too selfish and greedy. They felt they were entitled to a utopia where they made more money by outsourcing. I think a lot of them think they are superior to other people because they scoff at people who used to have a job and stuff. You can see it in the way they talk and write.
They forgot to take care of the country that enabled them to get rich. They felt entitled to take but not give back.
A lot of them brag how cool and rich they are to their friends.
But they forgot patriotism. They forgot their people and they forgot their country.
Patriotism was more about protecting shared values. But multiculturalism appeared and no one really cares anymore. Patriotism these days is about what America once was - nostalgic. Not about what it became, a cesspool of entitlement programs for corporations and lazy individuals.
I have a nephew who is turning 34 this year. Worked one year in his life. He’s not a corporation. There are tens of thousands like that and posters on this blog mentioned them. You are blind to them because you refuse to believe individuals can be productive and independent.
It’s because many of the productive people are really just lazy corporate-socialists who are too busy sucking the milk out of the people and stealing taxpayer money through government contracts, or by supporting policies that gut our capitalist economic base in favor for more profits for the corporate socialists shareholders
I’d call it corporatism. Even unemployment is corporatism because it keeps the people from rioting after their wealth and jobs have been taken. The new health care bill has no public option no regulation on insurance company profits, the wall street bailout was for wall street and insiders and not for the benefit of the masses.
..and stealing taxpayer money through government contracts..
Rio..
You have absolutely no objection to taking “taxpayer’s money” (i.e. Producers; Earners; To pay tax you must work and earn money.).. and simply giving it away to your friends. You don’t call that theft. You call that type of stealing “noble” and “just”.
But when government takes it from producers and then LENDS some to that haunting, corporate boogieman of yours, you start popping off about it.
It might be helpful if you find one or two solid principles to guide you through life, and so minimize your hypocrisy footprint.
+ 1,000,000
You are blind to them because you refuse to believe individuals can be productive and independent.
Wrong. I see myself in the mirror every day.
Unlike you and Jeddy, I’ve owned my own businesses my whole life.
I’m the capitalist in this discussion. You are the worker.
Hey Jeddy,
Banks just didn’t borrow money. The banks sucked money never to be repaid like a giant vampire squid. Banks r Bloodsuckers.
Here’s a good piece on Goldman Sacs:
http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine
Patriotism was more about protecting shared values. But multiculturalism appeared and no one really cares anymore.
I disagree. A lot of people still care no matter the change in our country’s racial and cultural makeup.
rio..
First you say workers can’t be capitalists, and now you say multiculturalism has to do with racial/cultural makeup.. Please buy a dictionary.
Joey,
Don’t be mad Joey. Of course you have a point that a worker can be a capitalist.
Many, including me, just consider an entrepreneurial business owner to be more identified as a capitalist than a worker. The definition below is supportive to this view. Note the word “especially”.
Capitalist: a person who has capital especially invested in business; .merriam-webster
Your second point about multiculturalism not having a relation with our racial/cultural makeup is so strange I’ll let you explain it.
Workers don’t buy stock? Don’t invest their money in business? Cannot be great believers in capitalism?
People who have wealth, great or small or in between don’t work, can’t work or if they do, are never defined as “workers”?
——-
and no.. i’m not gonna define multiculturalism for you, but being possessed of a compassionate soul, I’ll give you a hint.
They don’t stick “ism” on the end of a word just for kicks.
No Joey,
That’s not it, You’re not going to explain your second point about multiculturalism not having a relation with our racial/cultural makeup because you don’t have the guts.
and yeah.. You make me sooooo mad, Rio. You really get to me. I am beside myself.
So I said to that self standing beside me, “Myself, you need to get away from Rio and unwind a little. You need a vacation. A week of fun should do it.” He agreed.
see ya..
Joey,
I told you at 18:43:45 you didn’t have the guts to explain your point about multiculturalism not having a relation with our racial/cultural makeup.
Then what happened?
at 18:49:18 Joey: “See ya”
Run Rabbit run.
We could partially change a fixed system. Vote A LOT of incumbents of both parties out and let them know WHY. Then they would fear not being re-elected. We just don’t exercise our power to affect the incumbency rate.
No?
I want to know how Bill’s 34-year-old nephew has been able to support himself all these years without working. Does he live off mom and dad or the taxpayers?
“What did my representative in Congress do to keep the nation from falling into an economic crisis? “
Typically, nothing.
They might try voting no when the issue of raising the national debt arises. Or at least have an honest discussion about it.
Meh. More than anything else, people want stuff without having to pay for it. The government knows that and delivers.
Who here really hates deficits so much that they’d vote for a tax increase? Nobody.
SEC/US Regulators Have Lost Their “Moral Compass,” Have Now Become a Training Camp, Grad School & Employment Agency for Wall Street!
by Paul B Farrell, JD, PhD 4/9/2010
Under Chris Cox’s weak chairmanship, critics characterized the SEC as a combination pro-management training camp, graduate school and employment agency. Why? Most of their alumni go directly to work as fund and securities industry insiders, directors, ICI staffers, legal counsel and lobbyists. So it‘s no wonder they all have close working relationships, before and after. This regulatory agency operates like the classic three monkeys who ‘see no evil, hear no evil and speak no evil,’ especially when it comes to acting in an oversight capacity of mutual fund managers exercising controls over Washington politicians, Congressional committees and also staff regulators at the Securities and Exchange Commission.
“The fund industry’s moral compass is broken” said John P. Freeman in his Senate testimony. Freeman, a former SEC staff attorney, professor of law at the University of South Carolina, and along with Eliot Spitzer and Jack Bogle, is one of the SEC’s loudest critics. Freeman was echoing an indictment similar to one made a year earlier by Don Phillips, managing director of the highly respected Morningstar fund data trackers.
“Broken moral compass!” What great imagery and a powerful indictment of the fund industry and a great headline journalists love quoting. But what happened? Why was the industry’s “moral compass broken?” Reading Freeman’s testimony before Congress made it painfully obvious why the fund industry’s moral compass is broken. The $10 trillion fund industry’s moral compass is broken … because the SEC’s moral compass is broken.
http://wallstreetwarzone.com/securities-exchange-commission/
I guess Paul is under the impression that ‘they’ the SEC had a moral compass to begin with. I think not, a track record is a pretty good indicator.
A co-worker’s boyfriend works for Moodys. He wants to be a bigshot financial guy. We have gotten into several heated discussions. Talking to these young guys makes me want to puke. The level of indoctrination is just awful. They can rationalize any evil. By their second year in that industry I don’t think they could spell “moral” or “compass”.
I can not remember the last time I drank a soda pop.
Soda sales to fizzle as people cut back
Study: 74 percent say they plan to spend same or less in ’10
April 9, 2010
NEW YORK - Most consumers plan to drink about the same amount or less this year, costing beverage companies about $8 billion in sales, according to a study release on Friday.
About 74 percent of consumers surveyed said they planned to spend the same or less on soft drinks, according to the study by the business advisory firm AlixPartners. For carbonated sodas, about 25 percent planned to spend less, while only 18 percent said they planned to spend more.
The trends were similar for other soft drink categories, including bottled teas and sports and energy drinks. Only bottled juices and coffees saw the number of consumers planning to spend more outweigh those who planned to cut back, according to the survey of 1,000 U.S. consumers.
Soft drinks have a problem in that “name brand” sodas aren’t necessarily any better than cheap “store brands” or local independent brands like Shasta. When money gets tight people can easily dump Coke/Pepsi and buy Shasta colas for half the price.
When money gets tight..
..or they can buy cheap beer, drown their sorrows, and kill two birds. Three if we include less dental work.
Colored high fructose bubbly water is not that different…
Good beer is much more important… as the Germans say “Beer is liquid bread”.
“You can’t be a real country unless you have a beer and an airline — it helps if you have some kind of a football team, or some nuclear weapons, but at the very least you need a beer.” –Frank Zappa
I’m curious about the 18% who plan to spend more on soft drinks. Who would make such a plan? It’s like planning on not exercising, or smoking more- it may well occur, but you hate to map it out in advance. (Conversely, maybe they’re hard-nosed realists who should work for gov budgeting agencies.)
I ran our 2010 family budget earlier this week. We were planning to spend 16.2% more on soft drinks, 11% less on steak and steak substitutes, 13.8% less on mindless entertainment, 12.9% less on pop culture nonsense, 79.3% more on whiskey and whiskey substitutes, 98.4% less on propaganda based news content and 100% more on tar and pitchforks.
It’s good to do a budget and know where the money is going.
The decimal spaces in your percentages show your sense of humor.
I’m a bit surprised by the tar and pitchfork increase of 100%. For you, I would have expected a higher figure.
Just out of curiosity, can you tell us what products comprise “whiskey substitutes”?
Vodka
Templeton Rye is the way to go.
Just read NYCB’s post out loud to my partner and we really did LOL. Actually, we just got engaged but fiancée sounds so snooty.
I’m enough of a cheapskate to pay attention to what I spend on pop. And prices have definitely increased over the last few years. I used to stock up when it was $2.50 for a 12 pack. Now I’m lucky to ever see $3.00. It’s usually more like $3.66 or $4.00.
And regarding HFCS, I got diabetes in ‘06, and I swear it was from drinking too much pop. I switched to diet since then, and I limit myself to 1 can/day. If I’m thristy, I chug some water. I never touch regular pop any more. That stuff is poison, I say.
Recovering alcoholics may be planning to buy more soft drinks in the future.
Two months ago a study was published and showed just two cans of soda per week increases your chances of pancreatic cancer by 87%.
Drink water.
I like a Coke every so often. It’s the Real Thing.
We get free pop at work. At home we buy the genric stuff. Safeway cola isn’t half bad.
Gave it up. I was a Coca Cola fan myself. The costs of drinking it are far more than the benefits though. Learn to enjoy bottled pure water.
Better yet, get a good water filter (Berkeley or AquaRain) and stainless steel canteen and enjoy pure clean water for pennies a glass, and without throwing more plastic into landfills.
I like a Coke every so often. It’s the Real Thing.
I only drink about 10 sodas a year, but when I do, it’s always a Mexi-Coke in the glass bottle. They still make it with sugar south of the border. (And in most other countries, too.)
Drink Mexican Coke in glass bottles. Real sugar. Costco often carries it.
I need a Coke, burger and fries about once a month.
Do your research on high fructose corn syrup used in most soft drinks. The stuff is terrible for the human body. No wonder we have so many porkers running around and diabetes is a national epidemic.
high fructose corn syrup
I’m wondering how much of it is in the foods in the USA. A lot I think.
I go back to USA to visit for a month and I gain 12lbs. But I’m not doing anything different (unless American beer is different than Brazilian beer) After 2 months back in Brazil the weight’s gone.
There is no high fructose corn syrup in anything down here but they sure like their sugar.
I’m wondering how much of it is in the foods in the USA. A lot I think.
Yup, it’s in a really high proportion of processed foods here. Corn and soy are heavily subsidized here (while sugar is subject to tariff). That top-down policy bias influences our entire food supply, especially processed foods.
Soy is not necessarily a good product. It suppresses the thyroid, causing higher TSH levels in some people and ironically can increase their LDL levels of cholesterol. Instead of trying to substituting soy for meats, just eat salmon. Mercury is low in Canadian salmon.
There’s been an amusing ad in NY campaigning against a proposed beverage tax… Shows a mom complaining that the tax will add “over $5″ to a kitchen counter piled full of soda, powdered drink mix, etc. and saying it will tax families and hurt their food budgets…
I just can’t get worked up over a “sin tax” on sugary stuff that no none really needs to consume at all. Now a tax on healthy food might be a real hardship.
Sponsored by a beverage trade group of course.
I wouldn’t mind a “sin tax” on junk food and soda. But then neither makes up a big part of our budget. The same for alcohol and tobacco products..The people i know who consume the most in those categories are the ones with the least income.They also weigh the most.
My whole problem is calling it a sin tax. Don’t call it a sin tax; call it what it is: a medical offset tax on junk that kills you.
I’m wondering when fried foods get hit. The whole point of fried food is it is an inexpensive way to add calories (and flavor) to otherwise cheap food items.
If you fry in healthy oils, it’s actually good for you. Fat isn’t the enemy, it’s carbs. Countless studies have shown this, but the scientific/dietary community thinks it’s ‘too confusing’ to explain that most everything they’ve been preaching to us for the last 20 years is incorrect. Plus demonizing carbs pisses of some very powerful agricultural and processed food manufacturing interests.
“My whole problem is calling it a sin tax. Don’t call it a sin tax; call it what it is: a medical offset tax on junk that kills you.”
I would enthusiastically support this tax if it actually went towards medical programs or research. However, Cook County, IL charges an addition 10% tax only on certain junk foods and the money goes into the general revenue stream. The other issue is how they define “junk food”. Soda is excluded AFAICT, as well as items containing flour (or some such nonsense), making a Kit Kat exempt from the tax, but a plain old Hershey bar 10% more expensive. I’m of the opinion that the tax should be charged on foods where more than 33% of the calories are from fat.
TAMPA — The ongoing financial crunch is likely to get worse for local governments in Hillsborough County due to steeper than expected declines in property values
http://www.tampabay.com/news/localgovernment/steeper-drop-in-property-values-create-more-budget-woes-in-hillsborough/1086459
Expect many cuts to local services and few cuts to salaries and pensions.
Oh yea, count on it, and the cuts will be in “non-essential” services first. I always ask if they are non-essential then why do we have them in the first place? Of course everyone knows the answer but won’t say it, in public. Got’s to give jobs to people who can’t hack in the real world!
“Got’s to give jobs to people who can’t hack in the real world!”
Such as cousins, brother-in-laws, sons, nephews, daughters, etc. Those public dollars provide private fiefdoms.
Keep the roads maintained, the water flowing, the garbage picked up, law enforcement and criminal justice, emergency services, code enforcement. I guess those would be essential services. Hillsborough has an excellent public health program, I’d hate to see that go by the boards, since I use it (paying the sliding scale), but it could probably be phased out, with many of its functions given over to the Judeo-Christian Health Services clinics, which is pretty well-run also. I’d be happy to pay them sliding scale.
I wish they would do that here….I spent so much $$$ on my car last year new struts and springs due to this…
Last week i missed a huge one right in the middle of a crosswalk in Astoria….i wonder if someone tripped and got seriously hurt at night how much they could sue the city for?
—————————————–
Keep the roads maintained
I work in Brevard County on the other coast. Our revenues our down about $5 million for this year, and expecting about $37 million down next year. This will be the 3rd year of substantial cuts. And yes, we have taken salary reductions.
Here’s what’s interesting. The local Libertarians are making a serious run for control of the local Republican Party, and our Board of County Commissioners. 2 of 5 are Liberts and 2 are running for different seats in November. They have aligned themselves deeply with cops, fire guys & public works saying that the real purpose of government is public safety and infrastructure.
Well hell, that’s where all the money is. That’s where the unions are, the big money & pensions. So they’ve painted themselves in a corner, because without those folks taking hits, there isn’t enough money left to balance the budget. It is a brilliant political move however.
More than 150 Rochester School District employees could be laid off at the end of this school year, according to budget numbers released this week. Including the elimination of vacant positions, the district could have more than 400 fewer jobs next year.
http://www.democratandchronicle.com/article/20100410/NEWS01/4100344/Ax-hovers-over-Rochester-school-staff
Maybe just maybe they will get the hint that forcing kids to read write and speak English is mandatory in this type of economy…we cannot let kids grow up to be a drain on the taxpayers.
Muggy…how about forcing prisoners to read and understand the New York Times before a parole board to gain their freedom.
I’m fact-finding:
If I made about $65k/yr., is there anywhere I could live within one hour from Santa Monica that would have o.k.-to-decent public schools?
Wow, I just read about the Polish plane crash. How ironic, a plane full of Poland’s leaders on its way to Russia to commemorate the slaughter of Poland’s leaders (by Russians) in WW2, crashes while landing and kills everyone on board. There’s gonna be a lot of suspicions about this.
Obviously, this was not meant as a reply to you, Muggy. Sorry ’bout that.
Wow. And I’m flying to that area tonight. Nice!
Don’t worry, they put Pooty-poot in charge of the investigation. He’ll straighten things out by mid-afternoon. And surely put all suspicions to rest.
“Is there anybody here qualified to lead the investigation of the mysterious hen house burglary last night?” Mr. Cow scratches his chin and looks around.
Letting out a methane blast he widens his eyes. “Yes, you. You over there, Mister Fox. You look like you are more than qualified to get down to the bottom of this travesty. Look into that awful crime and let us know what you find out.” Mr. Cow then went back to eating grass in the pasture.
LOL…you ARE a city boy, aintcha??? (There is no “Mr.” cow. A cow is the female of the species.)
“There’s gonna be a lot of suspicions about this.”
My 1st thought too, besides feeling sick for Poland’s loss.
one hour.. taking into account average rush hour traffic speeds? Or will you only be working grave yard.. on weekends..
noonish to 8ish, lots of weekends…
I’m thinking you’ll have to commute from the “inland empire”. One hour is doable, when there is no traffic. I’m thinking two hours each way.
This is why we fled SoCal and never looked back.
Poway
- Good news: Outside SD proper, which might help one escape the tax man’s attempts to plug the budget hole left by the SD City Pension liability debacle
- Bad news: CA State funded; though the schools are excellent, job security is currently tenuous
This is nowhere near 60 minutes from Santa Monica.
Were you thinking of public schools from the standpoint of your employment, your kids’ education, or both?
Poway is good from both respects, but again, job security is a big current question mark in a state with a budget hole that is too big to calculate…
“job security is a big current question mark in a state with a budget hole that is too big to calculate…”
That is the best you have, PBear? I am really disappointed. I know somebody else that would have been disappointed in you.
At least give it a good, “in a state with a budget hole so large that even Madonna would blush”.
Good question PBear. If I move to LA I will be re-entering production, and ditching teaching, so it is for my kids only.
Muggy,
An hour to S.M. on these freeways? Let’s just say they are now parking lots. Map Agoura Hills or the school district of Oak Park, adjacent to Agoura Hills-young families area. Your kids could go to top notch schools, and you could possibly take Kanan Rd over to Santa Monica and avoid the 405 San Diego Fwy (nightmare traffic). Santa Monica and surrounding areas are for the rich. (Pricey) Maybe another Angelesnesta has some other feedback?
We live in Thousand Oaks (Ventura County), north on the 101 fwy, past Agoura from L.A. Good Schools (Conejo Valley USD),another possibility for a homebase. Kanan Rd is close enough. Kanan Rd is a pretty canyon drive to Pacific Coast Hwy. It’s like taking the back way into S.M., if I recall correctly.
Thanks Wipeout, are these places where Mrs. Muggy could stay home without having to worry about a home invasion?
Muggy,
We’ve been “house hounds” today (looking at sq ft and what we could fit into-not buying yet), so I’ve been gone. OK, back to helping you.
Oak Park is a highly educated, very nice/pretty area, and Mrs. Muggy would probably L O V E it. The schools are fantastic, it’s very safe, parks, libraries, very young families. Expensive, but you could rent something while you saved and wait for prices to continue to come down. (They are.)
You might not be able to afford an Oak Park McMansion, but maybe a nice average one-story -3 or 4 bd w/ small pool, if you were frugal and saved and bought in neighboring Agoura, which is nice too and has good schools. Oak Park & Agoura are hotter than Thousand Oaks.
Thousand Oaks is further north (up the 101), and is another safe young family area. Although, it’s a further trip to Kanan. The schools here are excellent, although we are seeing more of the illegal population move in (but still safe). So who knows what will become of this area. Housing is slowing coming down here too. You’ve got time to save.
You can email me at awaitingwipeout@verizon.net, and I can link you up to lots of info. If I can help you, it would be my pleasure. Will SMUSD hook you up with a relocation person? I would push for that. I’ll map some areas and see what canyons (staying off the fwys)are the best for a SMUSD career.
Muggy,
Oh, I’m sorry. I thought you were staying in education. Of all the areas that are highly educated, young family, safe, and beautiful areas within driving distance to more urban areas, the ones I mentioned are great. On the newer side, housing built 1960+, the schools rock. Advanced Placement, College Prep classes offered in Oak Park, Agoura Hills, Conejo Valley (Conejo Valley=Thousand Oaks ). These are great areas. Thousand Oaks runs 10 degrees cooler in the summer, then the other two. If you want to live in kidsville (with excellent schools) you’ve got to check these areas out.
Muggy,
I’ve stumbled on to an idea for you, while house hunting on trulia.com. Go to snapshot and in the city type in “Los Angeles” in the city box, and “Ca” in the state box, and it should get you to the most expensive areas. Now keep going down the price slide until you get to the $2,995,000- prices and below, and a whole map of the L A area will show, including the 101 Fwy. You’ll see Calabasas, then Agoura/Oak Park, then Thousand Oaks, and you’ll have a good reference map of L A. You’ll see where Malibu, Santa Monica, Culver City,and other locations are. It’s a good map.
Muggy- when you change houses or price ranges, the map pops up without the windows for each property blocking your view.
Rent in Culver City. 10 min from SM
cereal
How’s the school district in Culver City? Is it a good LAUSD area, or is it incorporated?
Culver City (not that I’m that familiar with it) strikes me as more of an adult area, more than a young family area. What’s your take? Isn’t that a high rent area?
But what do I know. I don’t like Thousand Oaks, way to many yuppie a-holes with brats.
I’m shallow-ed out.
ditto
Depending on the time of day, that may only be 10 miles.
Muggy get a compass & AAA map.
Put the point on a town called Santa Clarita.
Adjust the pencil to a 35 mile radius arc.
Draw a circle
Favor places North / West
Check for Metro link stations as park & ride options
LOTS & LOTS of Great RENTALS
Hwy,
Great suggestions, but what a freak’n drive over the hill into Santa Monica/L A (from Santa Clarita -6 Flags Magic Mountain area). I think MetroLink is a great idea, but it doesn’t go far enough into the city. The Metro (subway system) may not work either.
1800commute is L A’s rail system # for print material via snail mail or metro.net
Santa Clarita is really hot during the summer, but it is cheaper. Muggy could use it as a stepping stone into a house in a good school district. Littleman is 3 1/2 iirc. I just don’t think Santa Clarita is a workable location.
My husband (an EE/Inventor) didn’t like the place or the people.
Santa Monica and Brentwood have very good public grade schools. Rents are high. And they aren’t hiring teachers. Nobody is hiring teachers for awhile. Stay put.
Nationwide cities and townships will be raising taxes and fees to cover the never ending subsidies. Here in our poor state we have a bus system that has never done a thing but operate at a loss. So what to do? Raise the fare price? No way, that would be “unfair”, so as most brain dead city managers do…Raise taxes, we ain’t seen nothing yet! Funny thing is happening here though we have some bleeding hearts that are starting to complain about taxes. Imagine that! I though the new regime was going to make the evil rich pay for everything. How’s that working out so far?
Sales tax hike urged to fund buses, roads
Residents would pay extra penny
thestate.com
A plan being shaped by government officials will ask Richland County voters to open their wallets this fall to improve bus service and roads through a penny-on-the-dollar sales tax hike.
About two-thirds of the tax revenue would be used for road projects and the remainder for operation of the Midlands’ buses.
Much more can be done with a 1-cent tax hike - the maximum allowed - than smaller amounts, County Councilwoman Joyce Dickerson of St. Andrews said Friday.
“We’re looking at a one-cent tax,” said Dickerson, who is leading development of the plan. “It gives us the best bang for the buck - anything less would be much less worthwhile.”
With the support of city of Columbia officials, County Council has been considering how to keep the bus system running. Friday, with city officials in the room, they began to finalize the decision.
The increase would generate an estimated more than $2 billion over 25 years before it would expire - nearly triple what a half-cent tax would produce.
It could be extended with voter approval.
The increase - slated to appear on the Nov. 2 ballot - would bring Richland County’s sales tax to 10 cents on the dollar for meals and 8 cents otherwise. Those would be among the highest in South Carolina.
“No way, that would be “unfair”, so as most brain dead city managers do…Raise taxes”
Those city “managers” sure aren’t going to recommend cutting their own salaries and benefits. They aren’t going to cut the salaries and benefits of the public unions. They are going to raise your taxes and cut services.
Here in NYC we pay over 6% to the state and 3.5% to the city. The mainly worthless MTA employees get high salaries and incredible benefits. Every politician has a huge staff of highly paid bureaucrats. The city is falling apart but salaries and benefits are lush.
Expect more taxes. That is the message.
I remember as a kid that sales tax was 4%.
It is all breaking down. The government is too big and trying to get bigger. Something has to give. I know we have our eye on the exits. People at work ask me if I’m ready to buy and I just start laughing. I think that’s better than shouting out, “how f—ing stupid are you?”
“Those city “managers” sure aren’t going to recommend cutting their own salaries and benefits”.
Hell no, that’s never even part of the discussion.
Just like the 535 in D.C. automatic pay raises and life long benefits.
It’s for the chidrens.
Much more can be done with a 1-cent tax hike - the maximum allowed - than smaller amounts, County Councilwoman Joyce Dickerson of St. Andrews said Friday.
That woman is a genius. I wonder if shes single and available..
I don’t know if she’s single but with a name like “Dickerson” I’m guessing she’s available.
I bet if they raised the sales tax by 5% they could confiscate even more money from citizens, I mean consumers. Just think how much they could be “done” then. Utopia at last.
This stupid beyatch has to be kin to Pelosi.
“This stupid beyatch has to be kin to Pelosi”.
I will say that here in S.C. we have some world class morons, who occasionally make the national stage.
If you really want to puke then listen sometime to the most ignorant man in D.C. it’s our congressman Jim Clyburn. He can barely form a sentence and when he does it’s completely unintelligible.
The clown Clyburn was once a school teacher here, which answers many question as to why we consistently rank second or third to last, in the nation. As we say in S.C., thank god for Mississippi.
Yes they raise taxes and once they have the extra tax money to use and spend on thier programs and others not related to the reason the tax was increased then they say “look what we have done for you!!!”.
There was a study done here in the The Big Apple that it was a waste to taxpayers money to buy and retrofit buses for handicapped people…the time lost getting them on and off messed up bus schedules, plus seats lost on buses…
It would be slightly cheaper to buy hundreds of handicapped equipped mini buses and give them curb to curb transportation..
————————————————
Sales tax hike urged to fund buses
Oops it was a lot cheaper 30% or more …
Jewish World Review April 7, 2010
Parting Company By Walter Williams
http://www.JewishWorldReview.com | Here’s the question asked in my September 2000 column titled “It’s Time To Part Company”: “If one group of people prefers government control and management of people’s lives and another prefers liberty and a desire to be left alone, should they be required to fight, antagonize one another, risk bloodshed and loss of life in order to impose their preferences or should they be able to peaceably part company and go their separate ways?”
The problem that our nation faces is very much like a marriage where one partner has broken, and has no intention of keeping, the marital vows. Of course, the marriage can remain intact and one party tries to impose his will on the other and engage in the deviousness of one-upsmanship. Rather than submission by one party or domestic violence, a more peaceable alternative is separation.
I believe we are nearing a point where there are enough irreconcilable differences between those Americans who want to control other Americans and those Americans who want to be left alone that separation is the only peaceable alternative. Just as in a marriage, where vows are broken, our human rights protections guaranteed by the U.S. Constitution have been grossly violated by a government instituted to protect them. The Democrat-controlled Washington is simply an escalation of a process that has been in full stride for at least two decades. There is no evidence that Americans who are responsible for and support constitutional abrogation have any intention of mending their ways.
You say, “Williams, what do you mean by constitutional abrogation?” Let’s look at just some of the magnitude of the violations. Article I, Section 8 of our Constitution lists the activities for which Congress is authorized to tax and spend. Nowhere on that list is authority for Congress to tax and spend for: prescription drugs, Social Security, public education, farm subsidies, bank and business bailouts, food stamps and other activities that represent roughly two-thirds of the federal budget. Neither is there authority for congressional mandates to the states and people about how they may use their land, the speed at which they can drive, whether a library has wheelchair ramps and the gallons of water used per toilet flush. The list of congressional violations of both the letter and spirit of the Constitution is virtually without end. Our derelict Supreme Court has given Congress sanction to do anything upon which they can muster a majority vote.
Letter from JWR publisher
James Madison, the acknowledged father of the Constitution, explained in Federalist Paper No. 45: “The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce. … The powers reserved to the several States will extend to all the objects which in the ordinary course of affairs, concern the lives and liberties, and properties of the people, and the internal order, improvement and prosperity of the State.”
Americans who wish to live free have several options. We can submit to those who have constitutional contempt and want to run our lives. We can resist, fight and risk bloodshed and death in an attempt to force America’s tyrants to respect our liberties and human rights. We can seek a peaceful resolution of our irreconcilable differences by separating. Some independence movements, such as our 1776 war with England and our 1861 War Between the States, have been violent, but they need not be. In 1905, Norway seceded from Sweden; Panama seceded from Columbia (1903), and West Virginia from Virginia (1863). Nonetheless, violent secession can lead to great friendships. England is probably our greatest ally.
The bottom-line question for all of us is: Should we part company or continue trying to forcibly impose our wills on one another? My preference is a restoration of the constitutional values of limited government that made us a great nation.
Lose an election, threaten secession. These ‘patriots’ are pitiful.
Whatever happened to all of those good Hollywood liberals that were going to leave the country if Bush got reelected? Oh, that’s right, they stayed. Our loss.
i have carefully read the Constitution and nowhere does it mention an Air Force or a National Park.
I think this time we should let the South secede. I would certainly reduce the federal deficit because most Southerners couldn’t live without their SSDI & FEMA trailers.
They could return to the original constitutional principals and reinstitute slavery. Though I’d expect a bit of a fight this time around from those who would be enslaved.
Good luck! We could call it the Confederate States of WalMart.
1. They could return to the original constitutional principals and reinstitute slavery.
2. We could call it the Confederate States of WalMart.
Sentence #2 is a gut buster. I almost did spill my coffee.
And I’m still trying to figure out why sentence #1 and #2 seem to compliment each other so well.
Good luck! We could call it the Confederate States of WalMart.
Yeah, I guess Confederacy of Dunces has already been used.
Seriously, I live in Flyover (Ky), and our state government makes the Federal gov look like a model of efficiency and honesty. We’re gonna secede and do better? Ha!
And when they secede, will their social security and medicare benefits still be available in their new country(s)? Cause if not, that could be a real show stopper around here.
Would they secede state by state, or do they wish to form a new Confederacy? Let’s talk . . .
Is the Federal reserve boxed in on low interest rates?
In order for the Federal government to keep borrowing and spending at an unprecedented rate interest rates must stay low. Otherwise the interest costs will become overwhelming. Since low interest rates are allowing the government to pile on massive amounts of new debt, what happens when the Fed can no longer hold down borrowing costs? Will the debt service become crippling to the government. Is the U.S. government now the ultimate sub-prime borrower taking on massive amounts of new debt, with thoughts of being able to just refinance it later.
“boxed in on low interest rates” = pushing on a string (and pretending to control the world)
The man that believes he can control the world is in for a rude awakening. Unfortunately, we are the ones that are going to pay the price for Bernanke’s rude awakening.
Just got a call from our real-a-tor about our offer.
Asking price: $189,900.00
Offer: $139,900.00
Counter Offer from seller: $171,900.00
Our response: Have a nice day…Next.
We’ll be looking at 2 foreclosures today, one have been on the market for over 2 years.
One foreclosure we looked at had an asking price of $215,000.00 it was dropped yesterday to $164,500.00. We like the house, but it is to big for the two of us. However if we were to make an offer it would be below $140,000.00.
They came down $18,000 on their counter-offer? That is a lot. I’m not saying it’s a deal. If they came down that much then clearer there is a lot more to the downside. Don’t be in a hurry. Let the cows come to you.
No hurry here, just out making a couple of low balls, to see how negotiable things are.
Sounds like you’re having a good time, wmbz. Enjoy - you deserve it!
wmbz
Are you working with a foreclosure specialist who is well connected?
What condition are these homes in?
Where are you?
W
We are in central S.C. and the real-a-tor we are hooked up with handles foreclosures mostly. The two that we are looking at now are vacant and in good condition, in long established neighborhoods. Both are out of state owners. One was a rental for a year, but the tenant did take good care of it.
Just cosmetics, I am not going to get involved with any of the disasters that we have seen out there.
I love that area. I was wondering what size homes you were looking at? One or two stories, and the age of the homes?
Sounds like the banks are still playing hardball. What’s your take? Are you staying away from short sales?
We’re avoiding them like the plague. Too many obstacles, like life isn’t hard enough!
The houses we are looking at are between 1500 and 2000+ sq.ft. It’s just the two of us, we would like a large kitchen, master bedroom and bath with some walk in closets. The problem we have had is that most houses are very traditional, and we aren’t. We don’t need or use a formal dinning room, don’t need a separate living room,etc. Just like a good bit of openness.
Anyway we have only looked a few foreclosures, no short sales. We have looked in several new developments that aren’t selling, but I really don’t like the tree less cookie cutters that are all over the place down here. So we’ll keep right on looking until the right one/deal comes along.
wmbz
New is souless, no real mature landscaping or trees, and the HOA is a totalitarian nightmare. It feels like a landlord situation. We’ve done new twice, and are now looking for an older one-story 2,000 sq ft charmer, with mature trees, and a possum who visits us.
Yeah, the right house takes time.
wmbz:
which way are you looking NE out 2 notch road Dentsville …or toward Cayce?……do the trains still cross assembly street…at grade level?
I don’t recall if you mentioned it was an REO….. so what is it and who owns it?
You and I are pretty much at the same point in this journey by the way. I can succinctly say I don’t give a motherf_ck if these GSE’s and non-GSE’s owners accept my offer or not. Here’s a snippet of my response to a a realt-whore who was informing me that the shack I’m interested in is still available;
“A decision maker at B of A said their supply of REO will grow 600% in 2010. Given current conditions and on the basis of sound forecasts, there will be plenty more to chose from as time goes on. My experience since 2007 is that nicer and nicer stuff comes on the market at lower and lower prices. Eventually a price level will be hit that will induce a flurry of sales activity. We’re not there yet.”
The fact is I’m not making any offers until the the empty pocket buyers go away and that won’t happen until the BS $8k tax credit goes away.
Bad Chile is another guy here who has a set of balls and willing to go to his grave before EVER giving leverage to the sell side.
F_ck all you sell side lying scum. I got a bulletin for you…. The buy side has been grossly under-represented in transactions for decades and you’ve taken full advantage of it. Prepare for a reversal of fortune.
Mr. Exeter, I don’t always like your politics but I love your anger!
Just beautiful.
Thanks for the name check. I appreciate that I’m not alone on this world of REIC Ponzi schemers. Fortunately, unlike many of the HBBers from 2006, I have always had the support of my spouse, the esteemed Mrs. Chile, who probably hasn’t been by here in years. But having her support - and the HBBs - makes this easy, and in a way, fun. Watching our predicitions come true both frightens me and makes me proud to have been here as long as I had. Guess I owe Ben another donation.
======
Jumping in on this rant, the thing that gets me is that the REIC constantly talks about “don’t make an insulting offer!”
Well, I’ve got news for the REIC and sellers: your initial listing price insults me. I’m offended that my wife and I have spent hours looking at listings and occasionally actually making visits only to realize that a listing that says “large bedrooms” may mean they’re actually less than 100 square feet. I’m offended that others definitions of “new” means that the parts were purchased new in 1989, sat in a basement for 18 years, and then were installed by a wide-eyed middle-aged bloke with more back hair than brains that thought a cup of coffee and a copy of “Home Improvement for Dummies” qualified him to install natural gas lines without a permit.
No, jerks, I’m offend that you actually think that by virtue of you deficating in a toilet for the past ten years increases its value by $200,000, that your inability to perform basic maintenance on a home makes the home “rustic” and more valuable, and that your rookie paint job that would get you kicked off “Trading Spaces” somehow qualifies as edgy enough to make me want to mortgage mini-Chile’s future for your failed attempt at being a contractor.
Sorry, REIC, I’d rather go to my grave with the knowledge that I gave as little to the vigorish of the Real Estate Ponzi scheme as possible, yet wealthy enough to afford to have Mrs. Chile not work for a few years as we avoid the two-income trap.
Bad Chile
You should take a bow too. I love your anger and your “voice”. Kudos to you.
I can’t believe new cheap cabinets w/ granite counter tops, some ceiling fans installed, a paint job (taupe, what else),and pergo floors add $100K+ on a 40-50 yr old shack. What did that cost? F**king nerve.
Saw a 1,460 sq ft flip today that really ticked me off. $500K, L A area
I’m guessing Mr. Exeter has never SOLD a house.
I don’t have to guess that the same dumb a$$ who defends the actions of banks, corporations and the rest of the elite would come out and cheerlead for the REIC.
A certain blog owner told you to beat feet long ago. Get miracle ear.
OOh ooh ….. a Dawg fight we have it all here
exeter
Take a bow. Thank you for taking the words out of this lady’s mouth. We looked at a redone (auction) flip today in the Los Angeles (San Fernando Valley) area. $500K for under 1,500 sq ft w/ no water features in the yard. One bathroom was a butt ugly redo. No master either, just a 3 (sm)+2. I would bet the UHS were the flippers. (expressions and vibes)Delusional.
“Newspapers are dying. Their ability to shape public opinion may be gone today. This has happened in less than 15 years. The magnitude of what this represents has not been faced by the Establishments.”
~Gary North
Our local fish wrap raised it’s subscription rate and wand ad fees…That should solve their problems.Next they’ll be asking for a gubmint bailout.
wand=want
Newspapers are dying a well-deserved death because the political correctness of their editorial boards, the liberal bias of most journalists, and an unwillingness to buck either their corporate owners or sponsors makes truth-telling anathema to these shills.
Almost all the mass media has been totally perverted by the most Orwellian forms of political correctness. Some stories deemed fit to disseminate; others go down the memory hole. Example: if five young white males went around bashing elderly Asian females in NYC, it would be given saturation coverage while all the usual talking heads piously bemoaned depraved white male insensitivity. However, when the perps are “disadvantaged minorities”, the usual media omerta on naming their race/ethnicity applies and the story will rapidly disappear with minimal coverage.
http://wcbstv.com/local/asian.women.attacked.2.1621825.html
Part of the problem with print journalism is that it changed from being a “craft” to being a “profession”. In years gone by young people learned how to be a reporter on the streets, and were much more aware of the realities of life. Now journalists go to college to “study journalism” and try not to dirty their hands in the reality of life on the streets. This breeds the liberal bias.
My brother has been trying to earn a living in print journalism since 1970. He constantly refuses to face the reality that he will never make a living wage, and that he should figure out something else to do with himself.
But his ego puffs up and he defends his lifestyle as a “professional” who does “creative work”.
Since 1970? That is a working lifetime of delusional thinking.
Not meaning to criticize. But people whose delusions become part of their identity - better give up. In this case, the meme is ’starving for my art and not selling out’. With my ex husband, an Ivy-educated deadbeat and con man, it was ‘I am a millionaire entrepreneur’, although he never did manage to stay lien-free unless somebody else was supporting him.
Sammy here is where we disagree..I dont think they have a liberal bias, becuase having a bias means you can think and make decisions.
Lots of reporters i have met only got the job because of looks or a great voice…..not much upstairs.
the liberal bias of most journalists
journalism is dieing for several reasons
1. Articles can be cut and pasted on the internet. You can get a lot of info without subscribing.
2. Internet has taken massive amounts of add revenue. Corporate, help wanted, real estate, etc.
3. Corporations trying to make a profit have realized that journalism costs money, better to copy and paste, and hire a few people to give their opinion.
There are plenty of left leaning and right leaning rags out there. It’s hard to call FOX news, wsj, economist etc liberal mainstream media.
Sweet! The Zestimate on our old house is now within $1,500 of what we sold it for in 2005. This is $33,400 less than the list price was when the current owners yanked it off the market and decided to rent it out. This is more than $70,000 below its peak Zestimate. So much for Charlotte, NC being “different” and “special” and all of that other bulls–t. Bwahahaha.
I sold my San Jose house for $670K back in May 2006. My purchasers defaulted and the house resold in 2008 for $540K. Current Zillow price is $504K for what it’s worth.
* WEEKEND INVESTOR
* APRIL 10, 2010
Mortgages: Why It May Be Time to Refinance Your Loan
By NICK TIMIRAOS
With the Federal Reserve out of the mortgage market and the economy gaining strength, some economists are warning that mortgage rates, still near historic lows, will soon start rising.
That presents a tough choice for borrowers with adjustable-rate mortgages or home-equity lines of credit: Should they trade their low-rate loans for more-expensive fixed-rate loans? Or should they stick with a cheap rate and gamble that it won’t adjust sharply higher?
The answer depends on how long borrowers plan to live in their current home and how much interest rates are going to rise. Those who plan to move in a few years probably don’t need to lock in a fixed rate unless they think rates are bound to jump.
Mortgage rates already have ticked up a bit since the Fed ended its purchases of mortgage-backed securities a week ago. Average 30-year fixed mortgage rates stood at 5.20% on Thursday, down from 5.32% on Monday but still up from 5.18% a week earlier, according to HSH Associates. The Mortgage Bankers Association calls for rates to rise to 5.8% by year end, a level unseen since November 2008.
Adjustable-rate mortgages, or ARMs, have been hovering around 4% or even lower. Many offer fixed rates for an initial three-, five-, or seven-year period before resetting annually. ARMs are tied to short-term interest rates, and rise when the Fed increases the federal-funds rate. The financial markets are betting on the Fed to start raising rates by the end of this year. The question is how high those rates will go. No one knows.
If the Fed boosts rates by two percentage points, it would bring adjustable-rate mortgages into rough parity with today’s fixed-rate mortgages. But waiting for the Fed to raise rates all the way to there could be risky, because fixed-rate loans could rise, too. The question boils down to taking guaranteed pain now or risking even more pain later.
The decision turns on how long borrowers plan to live in their houses. “If your ownership period is less than three years, you’re on pretty good grounds to gamble and avoid the closing costs of a refinance,” says Lou Barnes, a mortgage banker in Boulder, Colo. Closing costs average 2% to 3% of the loan amount.
Borrowers who plan to live in their homes for the long haul may be better off refinancing into a fixed rate. Greg McBride, senior financial analyst at Bankrate.com, says he is worried that many ARM borrowers have their “heads in the sand” and won’t refinance to fixed rates, which are still near historical lows, because their current variable rates are even lower. If rates spike, it could come as a nasty surprise.
…
Why should they be afraid of any nasty surprises with regards to interest rates?
I just came back in from my morning bike ride and all the birdies in the trees were going ZIRP, ZIRP, ZIRP!
The Wall Street Journal
* HOUSE TALK
* APRIL 9, 2010, 11:50 A.M. ET
Speeding Up Short Sales
By JUNE FLETCHER
Q: When I bid on a short sale, why does it take months to hear back from the seller’s lender, even though the offer is close to the broker’s price opinion? Would it speed things up if I added a provision that the offer becomes invalid after three months, or some other time period?
—Mountain View, Calif.
A: You won’t need Zen-like patience to wait for a lender to approve your short sale bid any longer. That’s because this week, new federal rules were implemented to give lenders financial incentives to expedite and streamline the short sale process.
But bear in mind that these rules don’t cover all loans: Only those that aren’t guaranteed by Freddie Mac or Fannie Mae, which have their own short-sale procedures. Moreover, the homeowner must be behind in payments or at risk of default; the unpaid principal balance must be equal to or less than $729,750, and the total mortgage monthly payment must be greater than 31% of the borrower’s income. So if you’re looking to buy someone’s McMansion or vacation home, you may still face a lengthy wait.
For all these properties that don’t fall under the new federal guidelines, the process is still likely to remain grueling, simply because it’s complicated: Sellers have to document hardship. Brokers need to offer their opinion of the property’s current value, based on comparable sales. Lenders need to determine whether their net proceeds from the short sale would exceed what they’d get if the property went into foreclosure, and must make sure that the proposed transaction is “arm’s length” (that is, that the buyer isn’t a friend or relative of the seller, or worse, a “rescue scammer,” that is, someone who promises to “save” your house if you sign over the deed, or who promises to negotiate with your lender on your behalf for a fee. And all parties to the original loan, including investors who own even tiny pieces of it (there may be a long list), servicers and private mortgage insurers must sign off on the sale.
Furthermore, sometime during the process, one of the parties who are being asked to take a loss may insist that the sellers take a personal note to cover some of the debt after the sale goes through. In that case, the sellers may decide to let the property go into foreclosure instead of proceeding with the sale. Or the sellers’ circumstances may change—for instance, they may go into bankruptcy—which could delay or halt the sale.
During this entire ordeal, the paperwork is handled by the lender’s loss mitigation department, which is undoubtedly swamped with applications. Short sales are the number one category of distressed property, rising to 17.1% of all sales in February, according to the latest Campbell/Inside Mortgage Finance Survey.
So putting a time limit to your offer isn’t going to do you any good. It’s better simply to look for short-sale properties that fall under the federal guidelines or to concentrate on “pre-approved” properties that are being handled by experienced negotiators.
…
South Carolina Bank Becomes 42nd to Fail This Year
THE ASSOCIATED PRESS
Regulators shut down a bank in South Carolina on Friday, the 42nd bank failure in the United States so far this year amid mounting loan defaults, especially in commercial real estate. The Federal Deposit Insurance Corporation took over Beach First National Bank, based in Myrtle Beach, S.C., with $585.1 million in assets and $516 million in deposits. Bank of North Carolina, based in Thomasville, N.C., agreed to assume the assets and deposits of the failed bank.
Thanks for picking that up - I forgot to do my BFF report because I was disappointed that we’ve had only one bank failure in the past two weeks. Either that, or it was a nice morning and I took mini-Chile for a walk to the park.
You know, because I don’t own a house. That is why.
I’m not sure he knows the difference, but I figure being nice to him might offset his anger when he realizes in 17 years that his parents are second-class citizens, ineligible to vote (see above, useless, I know) due to their lack of ownership of land.
http://www.rollingstone.com/politics/story/32906678/looting_main_street/print
Latest from Rolling Stone’s Matt Tabbi - seemingly the only journalist willing to tell the truth about the extent of Wall Street’s predatory behavior toward main street. Some 20 Jefferson County, Alabama public officials have already been indicted or sentenced for their dirty deals with JP Morgan and other banksters, but of course no one is talking about bringing criminal charges against the banksters who created the swindle. Predatory banksters acting in collusion with corrupt officials elected by stupid, complacent mouth-breathers is a recipe for disaster, especially when the banksters can act with seeming impunity thanks to buying off both political parties. Just as Goldman Sachs helped Greece hide the extent of its debts and reckless financial deals, so are they helping corrupt municipal officials finance public works that threaten to bankrupt entire communities.
From the article:
“And here’s the kicker. Last year, when Jefferson County, staggered by the weight of its penalties, was unable to make its swap payments to JP Morgan, the bank canceled the deal. That triggered one-time “termination fees” of — yes, you read this right — $647 million. That was money the county would owe no matter what happened with the rest of its debt, even if bondholders decided to forgive and forget every dime the county had borrowed. It was like the herpes simplex of loans — debt that does not go away, ever, for as long as you live. On a sewer project that was originally supposed to cost $250 million, the county now owed a total of $1.28 billion just in interest and fees on the debt. Imagine paying $250,000 a year on a car you purchased for $50,000, and that’s roughly where Jefferson County stood at the end of last year.”
—
And some say we should reduce or eliminate regulations on Wall Street. Without ‘government guarantees’ somehow these guys would have to straighten up. If you believe that, Birmingham has a sewer system to sell you. Just take over the payments…
Here’s the part that got me:
“Once you follow that trail and understand what took place in Jefferson County, there’s really no room left for illusions. We live in a gangster state, and our days of laughing at other countries are over. It’s our turn to get laughed at. In Birmingham, lots of people have gone to jail for the crime: More than 20 local officials and businessmen have been convicted of corruption in federal court. Last October, right around the time that Lisa Pack went back to work at reduced hours, Birmingham’s mayor was convicted of fraud and money-laundering for taking bribes funneled to him by Wall Street bankers — everything from Rolex watches to Ferragamo suits to cash. But those who greenlighted the bribes and profited most from the scam remain largely untouched. “It never gets back to JP Morgan,” says Pack.
Anybody who votes for politicians of either party, i.e. John McCain or Barak Obama, who is beholden to these Wall Street sharks, should be under no illusions as to who these politicians will serve (hint: it ain’t you) or their own culpability in the abysmal caliber of our elected officials. One hopes that the rubes of Jefferson County, Alabama, will have learned a hard lesson about turning a blind eye to crooked governance or voting for con men election after election.
anybody who votes for politicians of either party
Does that not include Republican Ron Paul and his son Rand?
Actually, Sammy, I may come to agree with you. If Obama continues through his whole four (or eight) years without there being some serious prosecutions of banksters, and at least a wholehearted attempt to restore oversight to Wall Street, then I will agree with you and Tabbi that we are indeed a banana republic. Who knows, maybe I’ll even vote for a Teabagger.
)
(But if Sarah! gets elected, by golly I’ll secede from the Union!
You assume that the opponents of the crooked politicians were not also crooked or would not have been corrupted.
Is it better to not vote? Or should you run for office instead?
I don’t assume that at all. I look at whose money is supporting their campaigns. Rand and Ron Paul got negligible support from Wall Street. I refuse to vote for candidates like McCain or Obama who received most of their funding from the financial “services” sector.
OK. So, on a national or state level, there may be meaningful choice. Choose the candidate that receives the least funding from financial services. Local candidates may receive none.
Would a successful non-funded candidate necessarily remain uncorrupted?
If we throw out every experienced politician are we then electing people who can be more easily duped?
” while only 18 percent said they planned to spend more.”
Almost 1/5 say they plan to spend MORE on soda’s? I can imagine their their New Year’s Resolutions:
-Gain Weight
-Make my marriage worse
-Tell the unemployment office I’m really employed when I’m unemployed
-Drink more colored brown water with High fructose corn syrup to rot my insides.
Indeed; why set yourself up for failure?
if you don’t plan for failure, you’ve shown a failure to plan
Dingle Barry is out pimping tax credits, it’s not a handout it’s a hand up…Buy dat house now, or be homeless forever!
Obama advertises tax breaks ahead of Tax Day
Obama urges Americans to take advantage of tax breaks for homebuyers, college students, others
WASHINGTON (AP) — Just ahead of Tax Day, President Barack Obama is urging Americans to take advantage of tax credits for first-time homebuyers, college students and others.
Obama used his weekly radio and Internet address Saturday to promote some of the tax benefits in last year’s stimulus bill, saying they could save people hundreds or even thousands of dollars and were available to more than 100 million Americans. Even those who file before the April 15 deadline can amend their returns if there are savings they missed, Obama noted.
“No one I’ve met is looking for a handout. And that’s not what these tax cuts are,” Obama said. “Instead, they’re targeted relief to help middle-class families weather the storm, to jump-start our economy and to bring the fundamentals of the American dream — making an honest living, earning an education, owning a home and raising a family — back within reach for millions of Americans.”
Credits taxpayers may be eligible for include:
–Up to $8,000 for first-time homebuyers. The credit will be available through the end of April.
–Up to $2,500 for college expenses.
Everybody is desperately trying to weasel out of their commitments……..OOPS
From LIQCity:
Looks like the hotelification of Long Island City is experiencing a hiccup… one of the more prominent hotels planned for Queens Plaza has been Starwood Capital’s ‘W Hotel’ offshoot ‘Aloft’, which is now officially in foreclosure, and worse:
The developer, Queens Plaza Development, filed plans to build a 16-story hotel at 29-37 41st Avenue in Queens Plaza near the Queensboro Bridge, Department of Buildings documents show. Last year, Starwood’s Web site identified the 249-room project as By the Bridge, with an opening date of Dec. 31, 2010, but that information is no longer available on the site.
The loan went into default in October 2008, and the bank sued in April 2009 for the loan and the guarantee. The defendants said, according to court papers, that the bank should simply take the property back in a deed-in-lieu of foreclosure action, but the bank refused, instead pursuing the money directly instead of the property.”
And the NYS Supreme Court sided with the bank. Ouch.
Video of the week — It’s a brief summary of the current state of affairs. They sold us down the river.
http://finance.yahoo.com/tech-ticker/davidowitz-wall-st.-d.c.-bigwigs-%22buried-our-country-…-they-sold-us-down-the-river%22-463509.html?tickers=c,xlf,jpm,gs,ms,^gspc,^dji
Great Tape . The very people that created the problems are the ones in charge of solving the problems .
Anyone heard anything about the $8k tax credit for empty pockets getting extended?
No, I check every several days with a real-a-tor and of course the MSM. So far I have not heard or seen anything stating an extension is in the works.
Could happen any minute though.
I’m dumbfounded when I hear people who believe they need to hurry and buy now in case this goes away–as if house prices that are in a decline won’t simply decline faster without this handout.
Last time it was extended kind of at the last minute too. Congress probably likes it that way - the less time they spend fighting about it, the less negative press. Also, the REIC needs to at least pretend there is a sense of urgency to get buyers in.
FNM’s 3.5% cashback to empty pockets expires May 1. I’d love to see this one go away permanently. No FED backstopping MBS market, no $8k price backstopping and no cash back=Doom for sell-side-scumbags.
Absolutely!
Thing is, so many props out there and so many expect or are used to some sort of crack fix. I always expect a new program to pop up to ‘help’ the market. We’ll see.
The objective should be to purge the stupid-money from the demand side.
Today’s anxious buyers need to be taken out of the buyer pool. They are out once they make a purchase.
The more people that buy, and the quicker it happens, the sooner the buying stops, and the sooner prices can fall.
I don’t care about a tax credit and I don’t care who gets one.. It’s a tax cut. It doesn’t cost taxpayers a dime. It is a cut. If it costs anybody anything, it costs government. They must deal with having less money to blow off.
Get these buyers out of the market. Reduce demand. Supply will increase no matter what.
The way to create a sense of urgency is to let them expire. That way people know without a doubt it’s gonna expire. Then do another one.
I said it before.. they should have one every month or so.. Must sign a deal in the first 5 working days or sit on your hands for weeks.
Well the home down the street from me is sale pending. I’m not sure what they were asking or what they are accepting but if I find out I’ll let you guys know. The last home that sold very recently sold for over asking price. This most recent home was on the market for about three weeks.
I was talking to my retired next door neighbor the other day. He said during the peak homes in this neighborhood were going for about $2M. Now they are at $1.4M so obviously there has been some fall back. I was serious when I told everyone I don’t track our home value.
This from yesterday -
“Comment by Pondering the Mess
2010-04-09 09:26:04
Agreed.
This ticks me off. I see this all the time around here; ancient Baby Boomers who refuse to retire, yet who are plenty wealthy (paid-off house, vacation house, boats, etc.) and who expect my generation to pay a stupid high price for everything so they can get even wealthier. Meanwhile, they spend most of their time here grumbling about their pension not being large enough to my generation who won’t be getting a pension (or affordable housing, or the higher ranking positions until they leave, etc.)”
Most of the Boomers I know who can retire, will retire. And even those who are well set, know that they are just one health crisis away from financial disaster. Given the trends, we can expect that Medicare or insurance will cover less every year and cost more out of pocket, both in premiums and deductibles and co-pays. Many boomers will get no pension and their 401Ks have been hammered by losses.
With the memory of the inflation of the 70s, we also understand how quickly wealth can evaporate. And we now live in a time of great uncertainty. When you retire, you have to plan for no increase in income and limited ability to get back into the workforce and you have to plan for 20 years or more. I don’t understand how anyone can consider retirement at 65.
And just how ancient are they? The oldest boomers haven’t hit 65 yet.
Forecast warns state can’t pay June bills
Options include approval of short-term borrowing, budget director says
ALBANY — New York is on track to run out of cash in June, Gov. David Paterson’s top budget official said Friday.
Capitol bureau
Saturday, April 10, 2010
The Paterson administration is also pushing lawmakers to complete the 2010-2011 budget, which was due April 1, with plans to offer weekly rather than biweekly stopgap appropriations to keep the government running.
“Our cash flow problems are unprecedented,” state Budget Director Robert Megna said during a news briefing in which he laid out plans to deal with the crisis — including the possibility of short-term borrowing, a practice that was supposed to have been halted in the early 1990s.
Even though the state’s revenue projections are holding up, Megna said they will likely come up $1 billion short in June due to a convergence of bills such as $4 billion that is supposed to go to local school districts.
Additionally, payments for Medicaid providers, state employee payroll and income tax refunds go out during that period.
Tax Returns of the Living Dead
26 tax preparers charged with ID theft and other scams
Fri, Apr 9, 2010
Dead people were claiming tax refunds and the children of strangers were listed as dependents.
Those were among the bold scams that 26 Bronx and Manhattan tax preparers were allegedly using to claim the bulk of about $95 million in refunds since 2001, prosecutors said Thursday.
Besides seeing dead people, investigators also spotted deductions for businesses that don’t exist, inflated commissions and identity theft of people living in Puerto Rico, frequent victims of such scams because they have social security numbers but don’t have to file federal tax returns, prosecutors said.
Exactly a week before the April 15th tax filing deadline, authorities on Thursday announced “the largest coordinated takedown of tax preparers in history” calling it, what else, “Operation Brass Tax.”
Undercover IRS agents posed as clients and recorded some of the defendants promising to concoct fake business losses and inflate other deductions, prosecutors said.
“In a criminal twist on the old proverb about death and taxes, some of the defendants charged today allegedly even filed for tax refunds using the identities of dead people,” said Preet Bharara, Manhattan U.S. Attorney.
Six of the charged tax preparers remain at large while 16 were arrested Thursday and were expected to appear in Manhattan Federal Court, officials said. Four others had been charged previously and will face the new accusations at a later date, officials said.
I watch my affairs as best I can. My tax guy is honest (afaik) but he knows everything, and that’s a bit uncomfortable.
Then again, the banks have everything too.. hundreds if not thousands of strangers of unknown character have access to whatever personal information they might require.
I once read a column about tellers… what inspired them or led them into a bank job. Many are simply attracted to money. They like the feel and smell of it.
I guess it’s being a federal offense deters all but the most confident from taking advantage.
Summary Box: Wal-Mart’s Price-cutting
Analysts Say Wal-Mart Stores Price Cuts Hard To Separate From
(AP) PRICE CUTS: Wal-Mart Stores Inc. is trumpeting what it calls a large round of price-cutting on all of its products, including food. The world’s largest retailer says it will cut prices on 10,000 items in stages.
THE SKEPTICS: Analysts question whether the changes differ meaningfully from the retailer’s usual promotions. They also note Wal-Mart’s prices undercut competitors less than they used to.
THE REASON: Analysts say the cuts are Wal-Mart’s way of responding to toughened competition. The company’s fourth-quarter report showed store traffic dropped.
They remodeled one near me.. now it looks and feels just like a Target. The isles are much wider and lots of things are no longer there. And after years of learning the layout, everything was moved to different parts of the store.. Gotta hunt for stuff now.
It used to have all sorts of weird little cheapo treasures as well as the usual name brand bargains. Almost anything under the sun stuffed into some nook or cranny.
I’m needing some refill rolls for my FoodSaver vacuum thing I bought there. I look everywhere and nothing. I ask. Nope. We don’t sell FoodSaver anymore.
I am seriously thinking about dumping WMT… maybe buy some TGT.
How Dubai’s $14 billion dream to build The World is falling apart
10th April 2010 UK Mail
Of Dubai’s absurd dreams, none has failed more spectacularly than The World - 300 man-made islands sculpted from sand; only ‘Greenland’ has been built on. And as Adam Luck reports, the $14bn dream has left a trail of death, debt and deception.
http://www.dailymail.co.uk/home/moslive/article-1263987/How-Dubais-14-billion-dream-build-The-World-falling-apart.html
The hubris of these people is staggering. If there’s a god, I have to believe he’s getting ready to lay these schemers low.