Bits Bucket For April 11, 2010
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Consumers in U.S. Face the End of an Era of Cheap Credit
April 10, 2010 http://www.nytimes.com
Even as prospects for the American economy brighten, consumers are about to face a new financial burden: a sustained period of rising interest rates.
That, economists say, is the inevitable outcome of the nation’s ballooning debt and the renewed prospect of inflation as the economy recovers from the depths of the recent recession.
The shift is sure to come as a shock to consumers whose spending habits were shaped by a historic 30-year decline in the cost of borrowing.
“Americans have assumed the roller coaster goes one way,” said Bill Gross, whose investment firm, Pimco, has taken part in a broad sell-off of government debt, which has pushed up interest rates. “It’s been a great thrill as rates descended, but now we face an extended climb.”
Overheated wages will be the time they start to raise interest rates. I think wages will stagnate for a 0% to 1% annual increase the next ten years. We could have ZIRP the next decade.
ZIRP is the eleventh commandment: Thou shall not pay interest.
And Goldman Sachs said it was good.
Goldman Sachs? Where the hell is the government regulation here?
(from http://www.freedom-to-tinker.com/blog/appel/intractability-financial-derivatives )
The paper shows the example of a high-volume seller who builds 1000 CDOs from 1000 asset-classes of home mortages. Suppose the seller knows that a few of those asset classes are “lemons” that won’t pay off. The seller is supposed to randomly distribute the asset classes into the CDOs; this minimizes the risk for the buyer, because there’s only a small chance that any one CDO has more than a few lemons. But the seller can “tamper” with the CDOs by putting most of the lemons in just a few of the CDOs. This has an enormous effect on the senior tranches of those tampered CDOs.
In principle, an alert buyer can detect tampering even if he doesn’t know which asset classes are the lemons: he simply examines all 1000 CDOs and looks for a suspicious overrepresentation of some of the asset classes in some of the CDOs. What Arora et al. show is that is an NP-complete problem (”densest subgraph”). This problem is believed to be computationally intractable; thus, even the most alert buyer can’t have enough computational power to do the analysis.
Arora et al. show it’s even worse than that: even after the buyer has lost a lot of money (because enough mortgages defaulted to devalue his “senior tranche”), he can’t prove that that tampering occurred: he can’t prove that the distribution of lemons wasn’t random. This makes it hard to get recourse in court; it also makes it hard to regulate CDOs.
Thanks for sharing the link.
You can’t regulate the results so you regulate the process. This, of course, means that you can by stymied if no one at the securitizer is willing to talk and people are willing to forge fraudulent documentation.
Goldman Sachs? Where the hell is the government regulation here?
Chris, your innocence is touching. Really.
Goldman Sachs (Obama’s #2 campaign contributor) OWNS this Administration and just about every senator and representative on Capital Hill. GS and the entire Wall Street coterie will get stern lectures for the benefit of the cameras and yahoos, while their rape of Main Street continues unchecked.
Sammy, it was a totally tongue-in-cheek comment. The SEC and Fed (and their global counterparts), the IMF and the bond rating agencies were all in the bag for these thieves years ago. There were people ten years ago that were calling for the heads of the thieves and the SEC did nothing. They knew exactly what they were doing.
My point in the post was that this ain’t over and that people need to be pointing this out everywhere they go, as well as to be aware of where their retirement nest egg is going. These lying plutocrats will fully enslave a huge portion of a generation of people to either their debt or to the after effects of it while the losses are “socialized” (i.e. covered by you and me). The bailout was just the tip of the iceberg compared to the $500 trillion dollars still outstanding in all the market side bets will make things look even more horrifically bad.
But Sammy, remind which president held office when ALL the fed watchdog agencies were systematically gutted?
“…remind me…”
Ecofeco, you seem to confuse my lack of enthusiasm for this administration with some sort of admiration for the smirking chimp and his eight-year reign of epic incompetence. What do you not understand about BOTH PARTIES SUCK?
I forgot that you do. Your writing often seems partisan, but I remember that you actually don’t like either.
I feel that everyone on the blog thinks that both parties suck. Anybody feel like defending their scum?
The ability to separate lender from repayment risk is the kernel of the problem.
Fix that and you fix the problem.
Precisely, neuromance.
All of this financial “innovation” to reduce risk has had the exact opposite effect (as most of us would have guessed).
It was designed to reduce the risk for the dealmakers/middlemen, not for the lenders/debt holders.
Guess who those middlemen are?
…the large financial institutions who run our government.
But Sammy, remind which president held office when ALL the fed watchdog agencies were systematically gutted?
Hmm - to what are you referring? I.e. what agencies, and what gutting are we talking about? I’m not familiar with any agencies that are responsible for overseeing the Fed.
Not trying to bait - just looking for info.
“The ability to separate lender from repayment risk is the kernel of the problem.”
Ex…..actly!
That’s why I’ve patriotically volunteered to “pull the chain” on the US Guillotine when the “Head” of Goldman Sucks puts his shiny dome under the sharp edge so that he can experience “skin+ in the game.”
Just doing my part.
ZIRP-a dee-doo-dah, ZIRP-a-dee-ay
I ain’t payin’ no interest today
Plenty of money, comin’ my way
Wonderful feeling, wonderful day!
—
The Song of Wall Street
They can open a new at Disneyland: Market Mountain.
Song of New Jersey
_
Born down in a dead man town
The first kick I took was when I hit the ground
You end up like a dog that’s been beat too much
Till you spend half your life just covering up
ZIRP in the USA, it was ZIRP in the USA
It was ZIRP in the USA, ZIRP in the USA
Funny funny, we might see interest rise!
Almost every single credit-card I had “adjusted” the adjustable rate from the 7-10% range to 30% and I’ve never missed a payment on anything in my life. That’s not a roller coaster, that’s a rocket. I called them, the story was the same “oh, everyone is getting increases, we can’t do anything for you”. Same with the wife’s couple of CC’s.
I paid them off last week, every single one.
Their reasoning is sickening to me. Chase told me bold-faced that interest rates were rising as a result of new legislation (wait, you mean the legislation that’s supposed to help us avoid being brutally raped by a credit card company?!?!?). Thanks US GOV, for coming up with anti-raping CC laws, and making sure they don’t actually come into effect until almost a year after you pass them giving CC companies plenty of time to screw the little man over.
I’m fine with paying reasonable interest, 30% is not reasonable. The -mob- wouldn’t ask for that kind of vig for gods sakes.
The CC companies are just begging for people to file for bankruptcy.
Agree with you NC. Their usuary rate increases fecked everyone who had a balance Options:-
1. Pay the increased payments. Fecked.
2. Want to pay but cannot. The min payments exceed your capability : Fecked.
3. Not pay, and spiral your whole credit situation which could even get to stage of IRS taxing you for debt forgiveness. Fecked.
4. Not pay and pursue bankrupcy. Even in which you will still be required to make payments. Fecked.
4. Not pay and pursue bankrupcy. Even in which you will still be required to make payments. Fecked.
Only if you file chapter 13.
If you make more than the median income for your county, you can not file chapter 7 thanks to bankruptcy reform. It seems as if the rules for debtors were tweaked just before the incredible debt explosion…makes you think.
We pay our Chase cc’s in full each month, never ever been late either, and we got the same BS too. You’re not alone. My cc went from 8.25% to 15.25% on purchases. My 820+ FICO and perfect payment record seems unimportant to them. They have us by the …
It’s nice to be a bank.
Same case here too; rates set at 15% despite a perfect payment history. No problem though because we have a zero balance every month.
It’s the principle of the thing. We clear our balance too. It makes you feel like your ability to pay and good character means nothing.
Awaiting wipeout, same here, but your habits do count for something. You can get a new card that will have lower interest for a couple of months!! Ain’t that something.
A couple of weeks ago I had to make a biggish purchase at Sport Chalet for my daughter’s camping trip. We shopped all over for discounts but the bill was still hefty, so they offered me an additional 20% off if I took out a new Visa. I did. They checked my credit and gave me an instant $1800 AND a card with 40k in credit. I just got the actual card and the conditions. APR is 12.99% for purchases and transfers and catch this: TWENTY THREE POINT NINETY NINE percent for cash advances. Oh, and of course it’s all VARIABLE. I guess I’ll pay for the purchase when I get the statement and never use the card again. In a couple of years they’ll send me a notice of termination due to inactivity. So what….
It’s socialism in action.
Since banks cannot charge those outrageous fees and penalties to those who have checkered credit history, they have to at least make some money by punishing people like us who have been responsible with our finances.
That’s the only way and the American way…..
Let’s wait until the health care goes into full gear.
How do you get socialism from banks just being greedy SOBs? You know, the very same SOBs who got BAILED OUT and now want to raise interest rates.
It’s extortion, not socialism.
Try to pay less attention to propaganda and pay more attention to facts.
It’s not socialism; it’s unchecked corporatism. Now stop your whining, serfs: this is what you voted for.
I didn’t vote for this crap.
That said, do you really think things would be -any- different if we’d have voted for the “other” guy?
The whole thing’s a racket.
If you voted for any establishment-approved, bankster-funded, MSM-anointed Republicrat, you did indeed vote for this crap. Unwittingly, but that’s no excuse.
I love how the clueless excuse corporatism and then call it socialism.
Stupids.
There I was , slouching towards serfdom and …BOOM…here I AM!
Question: If we go into a ‘double dip” recession ( as if we aren’t already), where can a formerly productive member of society find a decent and stylish Pauper’s Wardrobe, and how many States will be in the new America after it implodes?
wutzin’yerwallet? not my capital one card…used it the other day, told it was expired. Called them. Seems they aren’t going to be sending me a new one. Deadbeatitius. (808 fico). So I’m getting my first AMEX card. Things are getting wierd.
Wow, that is weird. First time I’ve heard of something like that.
Thanks for the info.
Rates up for US credit users? Look at Greece today screaming they will default if they have to borrow at 7%! If the EU cave in and let them borrow 30-40 billion at 5% next week it will poor oil on the water for a few days but the next crisis in a PIGS country will push the euro down by another 3-5 percent and the game is on again. Debt on top of debt. It’s turtles all the way down.
I have a Chase cc with 5% for gas, groceries and some other stuff plus 1% for the rest. I also get 250$ for every 200$ - kind of sweet. last month they sent me a new contract for an “improved” card: 1% for everything, a yearly limit and no 250 for 200. I called them to cancel it, 5 minutes later (after telling me a few times they can’t change it back) they suddenly asked me if I’ll change my mind if they reverse the changes … I’m happy again (and paying whatever I’m spending every two weeks or so - just to be 1000% sure I won’t pay them any interest EVER)
So cash is king, eh combo?
But as one who has saved up cash, what if good and services start to disappear or fall in quality rather than becoming cheaper?
Is the price of college going to come down? Is airfare going to become cheaper? Health care?
Only assets are going to become cheaper, not consumer goods and services — the reverse of the 1982 to 2007 period.
“So cash is king, eh combo?”
Indeed it is.
“Is the price of college going to come down?”
If you have the cash for college then you get to go to college; if you don’t have the cash for college then you don’t get to go to college. Cash rules.
“Is airfare going to become cheaper?”
Those who have the cash get to fly. Again, cash rules.
“Health care?”
Same thing: Those with cash get good health care. Those without cash do without. Cash rules.
“… what if goods and services start to disappear or fall in quality rather than become cheaper.”
They probably will disappear or fall in quality because there is not enough cash around to support many goods and services. Once a cash-scarce tipping point is reached cash-starved businesses that supply goods and services fail, taking the supply of goods and services with them.
If there was enough cash available to support these businesses then they wouldn fail and thus the goods and services would remain available. Still again, cash rules.
Combie - those that have cash to fly, will get flagged as a potential terr’ist.
I don’t think he means cash as in actual greenbacks. A credit card with the checking account to pay it off counts as cash. Or, I think you can use the debit card directly.
This is one place where I guess we *have* lost freedoms: the freedom to disentangle from the “system.” I found out just how plugged into the System I am when I moved: I had to change so many addresses, switch insurance, driver’s license/plates, mail address etc. After that, mail addresses began to change themselves, and I received all sorts of coupons and catalogs at the new addresses. They know so much about me…
But you can’t blame this on Obama. This all arose with the advent of computers.
The War on Drugs and corporate marketing took most of your privacy (and rights) away a long time ago.
The War on Drugs and corporate marketing took most of your privacy (and rights) away a long time ago.
I agree. What do you think were the top freedoms or privacy taken away? Drug tests are one of them probably.
Little know fact: sometime is the late 60s or early 70s, the federal court ruled that you could not be drug tested without a search warrant.
4th Amendment and all that.
Gone.
The same with no due process of property seizures in drug arrests.
Blatantly unconstitutional.
In other words:
Those who have the cash to do X can do X. Cash rules.
By golly, even in Weimar Germany cash ruled! In fact by this logic cash rules in Zimbabwe and has ruled in every civilization in history that used some form of “cash”.
Lol. Weimer Germany? Zimbabwe?
Take a look around you, are you surrounded by Weimer Germany or Zimbabwe conditions?
I feel like you missed my point entirely. Nowhere did I claim that I was surrounded by Weimar Germany or Zimbabwe conditions. Maybe the following slight re-write will clear up what I was trying to point out:
“So cash is king in Zimbabwe, eh combo?”
Indeed it is.
“Is the price of college in Zimbabwe going to come down?”
If you have the cash for college in Zimbabwe then you get to go to college; if you don’t have the cash for college then you don’t get to go to college. Cash rules in Zimbabwe.
“Is airfare going to become cheaper in Zimbabwe?”
Those who have the cash in Zimbabwe get to fly. Again, cash rules in Zimbabwe.
“Health care in Zimbabwe?”
Same thing: Those with cash get good health care in Zimbabwe. Those without cash do without. Cash rules in Zimbabwe.
Weimer = Weimar.
It’s amazing to me how so many people can view the world so differently when they are presented with the same information.
But we don’t live in Zimbabwe so your point is lost on me.
But we do live in the U.S. and as of now there is a huge demand for U.S. dollars - that’s because having U.S. dollars will solve a LOT of problems the lack of U.S. dollars have caused.
Your statements boil down to:
Those who have the cash to do X can do X. Cash rules.
“those who have the cash to do X can do X is a tautology. It’s true everywhere at all times. Therefore everywhere and at all times “Cash rules”. And indeed - no matter what news there is, your response is “cash rules”. It’s like hypnopoedia in Brave New World. You’ve said “Cash rules” 64,000 times and now it’s the truth in your mind and you see it everywhere.
You keep using the the phrase “cash rules”. I do not think it means what you think it means. When you use it you mean that people who have money are better off than people who don’t have money. This is silly to continually point out. Everybody already knows this. The expression “cash rules” usually refers to a situation where there’s been a huge deflation in assets - typically houses or stocks - and they can be purchased for dirt cheap by people with cash. I don’t see this in my world.
“When you use it you mean that people who have money are better of than people who don’t have money. This is silly to continually point out.”
Is it? Do you ever read those posts that appear on this blog that talk about raging hyperinflation?
“The term ‘cash rules’ usually refers to a situation where’s there’s been a huge deflation in assets …”
A deflation in assets such as a massive decline in the price of houses? Or the availability of good paying jobs?
“I don’t see this in my world.”
I can tell.
In my neighborhood a 1400 sq. ft. 70’s rancher in a sea of other 70s era ranchers just sold for 280K. That’s your idea of deflation? It would rent for about 1200-1500/month. I guess that’s a great “cash is king” buy, huh?
Zeus is obsessed with crawling up vertical rock he’s never seen before.
There’s a twisted analogy to what’s happening politically in there somewhere.
Zeus’s climb buddy is from Zimbabwe. Unless Soviet guerillas are fighting Chinese guerillas and the local populace is divided into two ethnic tribes who have been fighting for a 1000 years there is little in common with the strange d’USA.
A better analogy is the gruesome and complex situation on Alpha Centari. Pathetic but beautiful in a cosmic way. I wish Geitner and Paulen were there to straighten things out.
Prices will not decrease.
Only quality, quantity, and any hope of enforcement of the rules will decrease.
Well. We were at zero interest rates so they didn’t have anywhere to go but up.
We have plenty of other real problems other than some changes in rates.
“Even as prospects for the American economy brighten, consumers are about to face a new financial burden: a sustained period of rising interest rates.”
It isn’t going to happen unless some big changes are made. Right now the push is a war on savers. If savers would pull their money from the banks and put it where the banks can’t lend it then interest rates will rise, not until.
“Even as prospects for the American economy brighten, consumers are about to face a new financial burden: a sustained period of rising interest rates.”
This has been already predicted now for how many years? Stopped clocks eventually get the time right, given they remain stopped for long enough.
Bill Gross is a tool. He wants Uncle Sam to buy a bunch of his crappy gov paper.
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
“Iceland” is in foreclosure.
“America” is paying their mortgage with credit cards.
“Afghanistan” is under daily attack for no reason.
“China” is billowing black smoke from the outdoor grill.
“North Korea” is inhabited by a pack of wild dogs.
“Greece” is sinking.
…Beautiful day in the heighborhood.
“Mexico” is having the neighborhood narco war.
“New Orleans” is having the usual shootouts.
“Oklahoma City” is having mall shootings.
“Spain” is having 19% unemployment.
My goodness, at least Wall Street is on solid footing. I’d hate to have Wall Street setting up a 70% rally with 40% of the trading volume that was in 2007. That would mean “a head fake” crash is coming.
Oh, wait! What!?!?!
Roidy
Use great care when navigating past “Somalia” as you return from any shopping trip on the mainland.
Yeah, some “rally” - virtual non-participation from the fleeced investing public, just hedgies and black box trades, while their breathless touts in the financial media try to talk up the “recovery” to lure the last of the sheeple in for a final shearing. “Crisis contained” is the watchword of the day. I think we in here know better.
“CA” is $500,000,000,000 underwater on its pension obligations…
Is it legal for CA to reduce existing and promised pensions?
I don’t think so. San Diego has failed several times to roll back pensions, which were even granted illegally and failed. The tax payer get to fund any shortfalls.
See, gardening does things that computers can’t.
Dubai Shubai….
Big Deal. My backyard is big enough to play whiffle ball.
Top that.
Dubai should save its islands by declaring them a libertarian society. Where no religious moral laws apply (where alcohol is legal, prostitution and escort services are legal, and drug use is legal) and just impose a 5% sales tax or a 5% tariff. No other taxes.
Sooner or later with most nations going in the direction of imposing more serfdom, one is going to get smart and compete for the best talent and go the opposite direction of individual liberty.
Iceland.
Enlighten me. Lots of people are leaving Iceland these days.
Link(s)?
Wikileaks…
It’s a start.
http://www.linux-magazine.com/Online/News/26C3-WikiLeaks-to-Conquer-Iceland
http://tinyurl.com/ygfy56b
Thanks. Good find.
I’ve said it before but it bears repeating: libertarianism is naive at best.
Get back to me when you figure out how to solve the 7 Deadly Sins. Then it might work.
Many people are living as free as they can all over the world despite the state.
No government can control all the people. There are too many people to watch.
I think Libertarians ought to put away the scorecard and stop nittering about whether they are 100% free or not. There are a lot of ways to live a freer life without sanctioning the government. These ways just take some thinking.
Harry Browne wrote “How I Found Freedom in an Unfree World” in the early 1970s and its suggestions are timeless. I apply his suggestions to my life and am happier that way than if I followed what others would want from me.
Another good find. I had completely forgotten about Harry Browne, although it’s the way I’ve been living since I was a bill paying adult and learning how the system was very lopsided.
The problem is in the end Harry Browne did not follow his own advice in two areas: First, he gave in and got married. His daughter lives in Southern California and is some sort of celebrity. Second, he ran for POTUS for the LP.
His advice on non-marriage is great advice. The problem is that most women want marriage. That is, they want government to be a partner in their romantic/intimate relationships.
Anyone remember Abbey Hoffman’s book called, “Steal This Book”?
“Steal This Book is, in a way, a manual of survival in the prison that is Amerika.”
Published in 1971, it’s recommendations are timeless.
http://www.tenant.net/Community/steal/steal.html
By Susan Davis
NEW ORLEANS–Republicans and tea party activists are fond of accusing President Barack Obama of being a socialist, but today party gadfly Ron Paul said they had it wrong.
“In the technical sense, in the economic definition, he is not a socialist,” the Texas Republican said to a smattering of applause at the Southern Republican Leadership Conference.
“He’s a corporatist,” Paul quickly added, meaning the president takes “care of corporations and corporations take over and run the country.”
Supporters of the Texas lawmaker appear to represent a significant number of the 3,500 attendees here, fueling speculation that Paul is likely to win the straw poll later today. The Campaign for Liberty, Paul’s political outfit, declined to discuss how many of his supporters were at SRLC.
The Texan’s supporters often descend on political gatherings to vote for him in 2012 straw polls. In February, he won the Conservative Political Action Conference’s straw poll with a hefty 31% of the vote.
Fascism = Corporatism in the Benito Mussolini sense.
Actually Clinton fit the same mold. There have been no true Democrats for quite some time. Clinton was as corporation friendly as they come. Especially the big multi-national ones.
“In the technical sense, in the economic definition, he is not a socialist,” the Texas Republican said to a smattering of applause at the Southern Republican Leadership Conference.
“He’s a corporatist,” Paul quickly added, meaning the president takes “care of corporations and corporations take over and run the country.” Ron Paul
Wow. Finally. Could THIS be a rhetorical “smoking gun” that could be used to help unite the rational of both parties?
I have, and many here, have said many times that the corporations have taken over both parties and the bitter left/right fights are a distraction hiding the corporate takeover of our country.
Questions.
1. Could Ron Paul’s above quotes be used to convince more on the right of the fact of corporate takeover or would they just think Obama was the corporatist and the Republicans somehow were not?
2. Is it harder to convince the left or the right of America being under the control of Corporations?
1. They would just think Obama was the corporatist and the Republicans somehow were not.
2. The right. They’re still blaming everything on welfare queens (CRA) and too much regulation. Has anyone heard a Teapartier call for more regulation of Wall Street?
“Has anyone heard a Teapartier call for more regulation of Wall Street?”
I tend to agree with most of what the “tea-partiers” are asking for; and I also think actual enforcement of existing regulations, as well as more and better regulation of Wall Street, is obviously needed.
How about abolishing the so-called “Federal Reserve Bank”? What have those asshats done lately besides create and spread worldwide financial disease and famine? I say cancel their charter; then prosecute and throw them into prison after a fair and speedy trial.
I tend to agree with most of what the “tea-partiers” are asking for
Briefly, what are the tea-partiers asking for and why are the asking for it?
“Briefly, what are the tea-partiers asking for and why are the asking for it?”
Briefly, a return to constitutional law and a smaller more accountable Federal government.
“To protect and defend the Constitution of the United States” is an oath everyone in the U.S. military has taken and the tea-partiers tend to share that goal.
Briefly, a return to constitutional law and a smaller more accountable Federal government.
Thank you but why do they want this? I mean what are the detriments that we are facing that make so many people desire the above?
Because we don’t have an accountable federal gov and laws that are constitutional what are the results?
Too many in prison, no jobs or what?
And I’m not playing, I’m trying to figure out a unifying theme that involves the social contract between the people, the government a and business.
Anybody?
I agree that the tea partiers want : “a return to constitutional law and a smaller more accountable Federal government.” These are great goals BUT
1. What do the tea party people think would change if the above goals came true?
I know what they want to change. I need to know what they think would happen if their goal would come true.
Anybody?
I keep telling you folks, the teaparty is nothing but an MSM distraction.
In the engineering world, they would be the equivalent of a safety valve and nothing more.
And yes, the corporations run this country and have ever since 1862 when they were given personhood status. The thing that’s changed recently is they have dropped most, but not all of the pretense. Only the naive still think the government runs things.
As I say, you have problem with Corporate Communist Capitalism©®™, comrade?
I cannot take seriously any group of people rallying around Sarah Palin as a presidential contender.
I can take them somewhat seriously. Freedom is a good thing to fight for but I still want to know what it is in their lives they think would change or what they want to change in a practical manner.
What I’m trying to see is if some of the oppressions they perceive are caused by corporatism as much or more than government. There are some isn’t there?
I no longer see the difference between the 2.
I no longer see the difference between the 2.
What I’m trying to see is if some of the oppressions the Tea Party perceives are caused by corporatism as much or more than government.
There but there are some. If some of these can be pointed out in a believable manner The Tea Party can be more useful to help America.
Drug testing is one. It’s a corporate invasion of personal freedom’s and privacy.
Americans (who have jobs) work with out many vacations or time of, could that be a freedom issue?
etc? etc?
“I know what they want to change. I need to know what they think would happen if their goal would come true.
Anybody?”
Rio,
They want the America they grew up in. They want Americana cira March, 1957.
Better be careful what one wishes for, one might get it. As a matter of fact, we may get America cira 9000 BC if we aren’t careful.
Roidy
Tea party bumper stickers “I love my country, but fear my government”
While I agree with the movement’s core principles, they need to get Sarah Palin far away from them to be taken seriously, why not have Ron Paul be their leader.
“they need to get Sarah Palin far away from them to be taken seriously”
I agree, they are losing credibility every time she steps up to the podium. I also think Fox News is making a big mistake taking her on in any role other than a guest commentator.
“why not have Ron Paul be their leader”
Ron Paul should just continue to work independently within the system and good freedom loving voters will flock to him regardless of party.
Let’s see how they deal with the immigration issue. If I’m right they will be a 100% hard right, zero tolerance and anti-amnesty block that will permanently turn away the largest and fastest growing demographic groups. The leaders of the GOP have a real problem on their hands if the Tea Party goes all vigilante on them. So if the sh*t hits the fan will the Oath Keepers step in and take over?
‘Tea Party’ seems to have become a stand-in for every right wing bugaboo anyone can think of. The one Tea Party event I attended seemed narrowly focused on fiscal issues and outrage about bailouts.
Sheesh, for years people complained that the right was too entwined with the social conservatives and should concentrate on fiscal, and now that a movement has come along that finally does that it still is demonized.
And just because a Tea Party convention invited Palin to speak, it does not mean they are “rallying around” her. There is still lots of ambivalence about her in conservative circles. I’m not talking about media types but the actual politically active people I know. They can’t be that different from the rest of the country.
I can’t distinguish between Fox News and the national GOP. The Fox network is the official channel of the Tea Party. They send their top cable stars to promote the GOP at all their national events. If the Tea Party would reject the GOP attempts to co-opt their movement I might support them.
Yeah I have the same problem with the Democrats and MSNBC.
My motto for 2010: “Keep Americans safe…protect CORPORATIONS!”
Maybe I ought to make it… TBTF: “Citizens For Global Profits”!
“Hope and Change the Giant Vampire Squid Across the Face of Humanity Can Believe In.”
Kinda hard to fit that on a bumper sticker, but it’s the truth.
I find it hard to believe that Obama himself is a corporatist. Don’t forget how many of his campaign donations were individuals who gave less than $50 — hardly your lobbyist types. Also don’t forget that Obama blasted the Supreme Court for the campaign-ad ruling…at highly visible State of the Union Address. Also please do not forget that this country was ~3 Senate votes away from a Public Option in health care. Sorry, the corporatists are not in the White House. They are in the Senate, and they are retiring at a pretty good clip. The lobbyists will have to cultivate a new crop.
It’s an insult to hear this type of talk from Ron Paul, of all people. Doesn’t he want to get rid of government, which would allow corporations even more leeway to feck us? Or does he still believe that, after the last 35 years and the last 10 years especially, that corporations will rule us in benign self-interest?
Is he on crack?
I find it hard to believe that Obama himself is a corporatist.
Well I have to admit, after reading your post I think Obama might be a little less of a corporatist than I thought but here’s a thought of mine.
The Republicans are more corporatist than the Democrats BUT the Democrats have become corporatists almost as much as the Republicans.
Therefore the Democrats becoming almost as corporatist as the Republicans represents a greater betrayal of the middle-class because it was the Democrat’s function to be more for the people.
The small contributions were from people who banked on free houses and free cars from Obama. “Obama will give us free houses” has changed to “Where is my Obamamoney”.
Wrong. The contributions came from people who were sick and tired of the status quo.
As for, “where’s my free money” well what’s good for the goose is good the gander, eh?
“If you are in the hip pocket of any political party, prepare to be sat on.” ~ Gary North
I sincerely doubt it…the voters that do turn out will vote along their party lines. There will be no ground swell change, the predicament we are in can’t be fixed it has to and will fail.
P.S. Here in the city of Columbia, S.C. we just had local city council elections. Turn out of registered voters…27% wow what a ground swell, in other words very few.
No surprise to me, bottom line is most folks haven’t a clue, don’t care, and are far more concerned if Tiger will stay married or bang another one. I am left thinking most folks really don’t have much of a life.
One of my tax clients was unaware that our economy is in dire straits. Her whole frame of reference is that the mkt is “up”, and she is still employed.
Sadly, wmbz may be correct
“… the predicament we are in can’t be fixed it has to and will fail.”
If you are talking about the predicament of too much money owed and promised and not enough money to pay what is owed and promised then I agree 100%.
A lot of people are going to be doing without in the coming years as this Great Contraction thingy rolls along.
No matter how much the Fed and friends run the virtual printing presses, there just never seems to be enough cash to go around these days. Doesn’t this violate some kind of basic conservation law?
Perhaps if they printed up batches of actual green paper dollars and dropped them out of helicopters flying over Main Street, USA, a different result would occur…soon we could all be carting our wheelbarrows to the grocery store to purchase bread and milk.
“No matter how much the Fed and friends run the printing presses, there just never seems to be enough cash to go around these days. Doesn’t this violate some kind of basic conservation law?”
We Americans collectively have lost somewhere around seventeen-trillion dollars of “wealth” during the past several years. Fed an friends have come nowhere close to replacing this seventeen-trillion.
Down the road a bit are more trillions of “promised money” that will also be lost. Fed and friends will not be able to replace this money either.
There’s no conservation law being violated: Things are at last beginning to balance out.
It’s painful. Everywhere I look, and anyone to whom I talk, provides immediate evidence of economic pain. It makes my back hurt to contemplate it.
“Perhaps if they printed up batches of actual green paper dollars and dropped them out of helicopters flying over Main Street, USA, a different result would occur”
How do you think people were able to buy homes over the last year? And how do you think the government was able to fund the tax credit? A majority of that activity came from printed moneys. Give credit where credit is due.
That little tiny bit of printing to lure greater fools into catching themselves falling knife real estate apparently wasn’t enough to offset the vacuum inside the vortex of the credit crunch.
“If you are talking about the predicament of too much money owed and promised and not enough money to pay what is owed and promised then I agree 100%”.
Correct! That is exactly what I am referring to.
If you live in place where most voters are in the hip pocket of any political party, you get sat on even if you are not.
Where I live only Democrats can win elections, and the ballot access laws are rigged to prevent primary challenges to incumbents. Most Republican districts are the same.
Most of the swing districts, where people matter, are where rich people who only care about themselves live, in Manhattan and the suburbs. Hmmm.
and the ballot access laws are rigged to prevent primary challenges to incumbents.
How do they do that?
They require a high number of signatures, every one of which can be challenged in court — and deleted based on any little deviation from a form — a nickname, the wrong date, the wrong time, some letters right on the line, etc.
You need $60,000 for an election lawyer to get on the ballot, even if you do everything right.
And money or people with political deals to collect the signatures, because if you do so and anything isn’t perfect, the judges (appointed by the machine) will throw you off the ballot for fraud.
On top of that, only the special interests show up to vote in the Democratic primary (or Republican elsewhere in the state). To run on Election Day as an independent takes three times the number of signatures.
Virtually every state legislature and member of Congress runs unopposed in NY.
Virtually every state legislature and member of Congress runs unopposed in NY.
Thanks. That news is very depressing. There has to be challengers in the primaries most every time for the system to function honestly and properly.
I wonder if this is the way it is in many other states.
This has got to change.
Wow. Not that it matters to anyone else, but anyone can file for any office here, in any party, as long as they file by the normal deadline. There is no gatekeeping per se.
It’s worse than you can imagine. Many of the state legislators have relationships with neighborhood “non-profits” funded exclusively be “member item” grants from the legislators, which is all most of them care about (which is why the budget always passes 212 to zero). And they all have huge staffs.
Well guess who collects all those signatures — three or four times the required number to ensure they can’t be challenged — on behalf of the incumbents? Those staff members and grantees whose jobs depend on it.
There is a whole class of people who run this system. Offices are passed on within the family. The incumbent resigns mid-term when they are done, and a new incumbent is appointed in a special election no one knows about.
People in government, who are actually trying to produce public services, see the political class as a kind of fungus, even though they are their “elected” bosses. The idiot voters think they can change things with votes for President, Governor or Mayor, but whoever they elect has to pay off the fungus.
Democracy? Why bother.
It IS indeed like this in most of the states.
Very high barriers to entry.
Are you all getting the picture yet?
I’m in Texas and we get sliced and diced so the republicans can stay in power. The democrats did some of this too but the Republicans took it to a whole new level.
Check out this district re-draw for 2002-2004,
en.wikipedia.org/wiki/File:TravisCountyDistricts.png
This one was eventually thrown out on appeal but 90% didn’t and so now 50% of all Latinos now live in red districts.
You can always join ‘em, sort of, albeit, somewhere else:
http://freestateproject.org/
Most Republican districts are the same.
Not true. If you look at the 435 seats in Congress. Democrats will win roughly 100 seats no matter what. Pubies only have 35/40 seats.
Identity politics by Blacks, Latino and some political groups have destroyed any meaningful chance of electoral reform in this country for good.
“The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government - lest it come to dominate our lives and interests.”
-Patrck Henry
“There had to be household destruction,”
Foreclosures forcing Floridians to pile in with parents, relatives
By KIMBERLY MILLER
Palm Beach Post Staff Writer
Posted: 6:48 p.m. Saturday, April 10, 2010
Deb Jacobs left home nearly four decades ago, saying goodbye to her mom and dad to start her adult life.
Now, at 58 years old, she is returning.
No longer able to afford her mortgage, and following a failed attempt to get a loan modification on her West Palm Beach home, Jacobs is moving in with her 89-year-old mother in Wellington.
Hers is among 1.2 million households that have been lost to the recession as job cuts and foreclosures forced families to move in together or kept adult children at home.
The numbers, revealed in a Mortgage Bankers Association report last week, were gathered in a study of 80 metropolitan areas nationwide, including South Florida, between 2005 and 2008.
And while households decreased during the three-year period, populations in those areas grew by 3.4 million.
“I’m going to be 59 years old next week. I’m not a kid anymore. I’ve been living on my own since I was 19 years old,” said Jacobs, who is on disability and endures thrice weekly dialysis treatments for kidney failure. “It’s been a real nightmare.”
The housing crash has left national home ownership levels at 67 percent, down from a high of 69 percent in 2004. At the same time households formed through renting a home or apartment also declined between 2 and 4 percentage points, the study found.
Normal rates are between 1 million and 1.5 million new households per year.
Gary Painter, a University of Southern California professor who wrote the report, said Florida’s high unemployment rate of 12.2 percent and steep decline in property values makes it particularly vulnerable to household loss — an occurrence that leads to real estate surpluses, slower market recovery and crowding.
The percentage of homes with more than one person per room grew from 2 percent to 10 percent between 2005 and 2008 among households with residents born in the U.S., the report found.
Immigrant households considered crowded grew from 15 percent to 17 percent during the same period.
The study also suggests that families who have moved during the recession are more likely to become renters.
“People are moving in the wrong direction in terms of home ownership,” Painter said. “People who used to own their home lost it, and people aren’t taking the first step to rental and then to home ownership.”
The association, along with the Research Institute for Housing America, sponsored the report because it wanted more than anecdotal information about housing trends.
Painter said he wasn’t surprised by the number of households lost because he was seeing increasing home vacancy rates without subsequent increases in rental rates.
“There had to be household destruction,” he said.
The “household destruction” that results in doubling-up frees-up spending money that would otherwise be “wasted” on rent or housepayments. This maintains consumer spending to a degree but it also hoses the banks.
The banks will not allowed to be hosed, this much is clear.
Hence this freed-up spending money will eventually work its way into the banks coffers where it will stay. Such action by the banks work to furthur reduce the supply of money in circulation.
The contracting money supply furthur contracts economic activity which puts more pressue on households to double-up … and the beat goes on …
Banks will whine until they are paid off in full one way or another. Government will continue to direct all funds in that direction under the guise of “keeping people in their homes” or direct cash handouts “required to keep our financial system intact”. The injustice will prevail.
American’s across the land are armed to the teeth, fearful of everthing and distrustful of each other.
I’m gonna just keep my head down when Hwy flings an M-80 firecracker off of the roof !
That photo of Debra Jacobs is perfect; a caricature of everything that has gone wrong in the U.S. and Florida. I hope she’s a tobacco user.
“Smoker.”
But why use one word when 10 will do?
She could chew tobacco.
Milton Friedman: Alan Greenspan’s Legacy
Source: WSJ (1-31-06)
“Over the course of a long friendship, Alan Greenspan and I have generally found ourselves in accord on monetary theory and policy, with one major exception. I have long favored the use of strict rules to control the amount of money created. Alan says I am wrong and that discretion is preferable, indeed essential. Now that his 18-year stint as chairman of the Fed is finished, I must confess that his performance has persuaded me that he is right — in his own case.”
“His performance has indeed been remarkable. There is no other period of comparable length in which the Federal Reserve System has performed so well. It is more than a difference of degree; it approaches a difference of kind.”
“It has long been an open question whether central banks have the technical ability to maintain stable prices. Their repeated failures to do so suggested that they did not — whence, in part, my preference for rigid rules. Alan Greenspan’s great achievement is to have demonstrated that it is possible to maintain stable prices. He has set a standard. Other central banks around the world, whether independently or by following his example, are following suit. The timeworn excuses for central bank failure to stem inflation will no longer do. They will have to put up or shut up.”
“Alan Greenspan’s great achievement is to have demonstrated that it is possible to maintain stable prices. He has set a standard.”
Greenspan’s greatest achievement was creating misery for the American people. Asset bubbles and collapses. A culture of speculative gambling. Inflation and stagnant wages. Overwhelming public and private debts.
Is this going to hurt enrollment?
2006: “The Chicago School of Economics”
2010: “The Chicago Tool of Economic Destruction”
LOL, I see how my post above can be confusing but I was making a joke about the discredited views of Greenspan and the Friedman/Chicago School of economics.
Sorry, any Chicago hate-talk has been shifted to the Obama and the “Chicago way” of political thuggery. Whatever that means.
Does anybody know if Mr. Friedman has since retracted his retraction? I guess not.
It might prove difficult, given that dead men tell no tales. I am not so sure that statement really applies to defunct economists, though.
Tee hee! Sorry. I had him mixed up with Martin Feldstein.
I had him mixed up with Marty Feldman.
Milton Friedman died November 16, 2006.
Marty Feldman died 2 December 1982.
I liked Marty.
Roidy
I thought Corey Haim died, not Corey Feldman?
Sir Greenisspent wouldn’t recognize a 14% “Interest-rate Horse” if it bit him on both ears…
Ron Paul: Barack Obama is Not a Socialist
From the WSJ
By Susan Davis
NEW ORLEANS–Republicans and tea party activists are fond of accusing President Barack Obama of being a socialist, but today party gadfly Ron Paul said they had it wrong.
“In the technical sense, in the economic definition, he is not a socialist,” the Texas Republican said to a smattering of applause at the Southern Republican Leadership Conference.
“He’s a corporatist,” Paul quickly added, meaning the president takes “care of corporations and corporations take over and run the country.”
The guys been reading our mail, eh? Except he conveniently overlooks that his party is the corporatist kung fu master.
Straining at a gnat and swallowing a camel…
Next he is going to say Obama is not an American citizen.
Someone said the other daythat you had to be born on American soil to be eligible for the presidency.
So I looked up the Constituion. The only requirement was than one be “natural born”. When I looked up the definition for that I found that US courts had ruled that the children of American citizens born overseas are considered to be “natural born” US citizens.
Next he is going to say Obama is not an American citizen.
scoff all you want but I seen a copy of his birthcertificate on the internet that proves Barak HUSSAIN Obama was born in Kenya, Indonesia.
that makes him French I think and france are not corportist but they are really socialism .
“was born in Kenya, Indonesia”
LOL! You’d think that if the birthers were going to circulate phony birth certificates on the Internet that they would at least get their geography right. Then again they and their tea party ilk can’t even spell correctly.
What makes you think that birthers or fox are interested in the truth?
FOX news at its finest.
add a w
ww.msnbc.msn.com/id/21134540/vp/36204129#36204129
Oh dear god we’ve got a frenchman in charge. It makes your blood run cold, but it explains everything. He’s gonna turn us french.
He’s too monogamous for a frenchman. I doubt he is one. Martian perhaps, French no way.
He’s too monogamous for a frenchman.
I knew he wasn’t Brazilian either.
“He’s a corporatist,”
Hark, I hear the “TrueBeliever’s™ / “TrueDeceiver’s™” / “TrueHypocrite™” / “TruePurity™” Angels singing the refrain:
“Lower Capital Gains Taxes!”
“Lower Capital Gains Taxes!”
“Lower Capital Gains Taxes!”
Geez, looks like they’re all Democrapts in the Corporate Choir, same as always…
Ron Paul is a populist not a conservative.
Not that that’s a bad thing.
Calling him a corporatist is dangerous. He could care less about being called a socialist, in fact he probably welcomes and encourages it because it is pure nonsense.
But, corporatist - that might upset the two-party wet dream so many people seem to enjoy - the one that keeps their noses to the grindstone and keeps them going to the same banks over and over again for more debt. We can’t have that can we? The people have to have something to believe in if they are to keep consuming and servicing their debt.
Clarification: even though my position will be eliminated, I *may* still have a job in the district, but I won’t know until August.
I’m only partially screwed, unless Chinese water torture is considered a good way to spend the summer.
This whole “recovery” is absurd and an insult to the middle class. While we still sit with frozen wages,job insecurity and the prospect of higher interest rates the PTB are expecting us to run out and get into even more debt. I guess they didn’t receive the memo: debt is no longer a viable substitute for income. Small wonder they’re trying to reinflate the housing bubble. Without HELOC money there is no way J6P can return to his spending spree of buying fancy cars, Harleys, motorhomes, jet skis, etc.
“While we still sit with frozen wages,job insecurity and the prospect of higher interest rates the PTB are expecting us to run out and get into even more debt.”
You forgot higher taxes. On the national, state and local levels. They’ll be picking our pockets for the next 10 years +.
Thank goodness for TABOR here in Colorado. I’m still paying aout the same property taxes I paid 10 years ago.
The Feds on the other hand…
Hello and good morning, wonderful HBB!
I have been around since Prof. Bear was GetStucco. I was even addicted at some point. Well, I know we are some of the smartest bunch of people in the US of A and beyond. I never posted, till now. I know if I post early there will be someone graceful enough to give me their opinion on the housing market in 32250. Supposed to be close Jacksonville Beach, Netpute beach. My girlfriend grew up in Jacksonville. She just went to visit. She has come back to Orange county (where we are both renting) amazed at the fact that houses 4 blocks from the beach are around 200 accroding to zillow. I know we do not like zillow around here. She also found this: 125,000, from 1960, 2bdrm, 1,023 sq.ft. What do I tell her? She thinks that she would love to have a house and retire there for example. Do I stop her or encourage her? Are those properties cash flow positive if you rent them? Are taxes exceptionally high? Are hurricanes going to take it away soon? Are special insurances unaffortable? I have been pessimistic re housing prices, especially in West side LA, but it seems that the losses could be limited in terms of price depreciation in FL. She thinks most houses there are 200 or 250. Is that the case? Those who know, what would you advise her? Truly, L-pianist
A house purchased for under $75k could be cash-flow positive if it were in a decent neighborhood. Anything higher than that and property tax and inusrance will eat you alive. $1k/mo could rent something really nice. You do the math.
For clarification: Tax and ins on $100k is about $500/mo. Throw in association fees and mortgage payment and you just got priced out of being a landlord. Florida in general is still underwater.
wow! I pay $240 month for a 350K house. Ya gota love TABOR.
“The OC”… California?
I fly over this area all the time and its “KB Homes -type” urban sprawl (much of it half-built) as far as the eye can see. Add to that the prospect of virtually no good-paying jobs for hundreds of miles and you have a picture. Nice beach, though.
Thanks so much for the info Press!
L-pianist
Don’t do it. Stop her. No. Yes. Yes. Yes. Don’t know. Don’t.
Thanks Alpha!
This is her first time reading the blog. And your answer convinced her without having a serious discussion. I told her about you. Thanks EVERYONE too!
L-pianist
Get a new girl friend(s).
Most things I have read have the market bottoming around 2015. I never had anyone think it would take until year 32250.
Ah, good point. If she can hang on until 32250, it’ll probably pencil out.
nice one!
We’ll all be cyborgs by then, so no houses needed.
I once had a girlfriend who wanted to have a beach house.
“Had.”
Florida is still FUBAR. If you have to live there either rent or do a few years of research. Ideally, both.
THANKS ALL OF YOU! She actually listened while I was away. She read herself (first time on any blog) and immediately started calculations that between rent (at present) in Orange County, and a mortgage in FL, she could afford starting payments toward a 400,000 house/townhouse in California (OC).
L-pianist
I was enjoying reading the small article on Centerpoint Condominiums in Tempe, AZ yesterday. I live in the “shadow” of these beasts and get to see them nearly every day. It seems lately that more and more upper-floor windows are missing from the building. They just sit there and I can’t imagine them being finished anytime in the near or even distant future…
Supposedly there is 180 million dollars already invested and spent building the site up, and at least one tower was pretty well finished up (developer says 90% but I don’t believe it) with kitchens etc already installed. Problem is, when the developer went belly up they were unable to convince anyone that getting A/C up and running in the building was a critical priority. The summer came and went and temperatures inside the building reached insane heights (bagholder says it reached 190 degrees F in there). End result? warped cabinets and doors, ruined interiors. So much for the “90% finished” tower.
The company currently holding the bag (the remnants of the former mortgager) says it’ll take another 75 million to finish up the property, and -there- is the real problem. Even if we assume the 75 million $$$ estimate is completely realistic (very unlikely considering the source) we’re talking about a 375 unit property. That means on average you need to invest 200,000$ PER UNIT to finish the property up - not including any costs associated with actually buying the buildings! During the height of the bubble they were talking about 300,000$ per unit, but consider the situation today where several expensive luxury condo’s were built all around tempe town lake (and in central phoenix) - and most are nearly empty. As an example, last I heard of another big project (44 Monroe condo tower) had a grand total of 15 units sold (out of over 200 available) before they too fell into issues with lender takeover by the feds etc.
There is no market for these properties. Even if they GAVE you the property it’d be impossible to finish them up and making a profit in today’s market. They only made sense in bubble-land.
Nobody bid. I have a feeling these things are going to sit there empty for a LONG time.
As long as twenty years ago I used to fly over vacant “road patterns” complete with paved streets and curbs and sidewalks that had been abandoned since the ’70s in parts of Florida. I would wonder: How did this happen? What economic event would have to take place for something like this to occur?
Some of the abandoned “road-patterns” from the ’70s are still there.
I was out flying yesterday from Roanoke Virginia to Knoxville TN, at an altitude low enough to make out details on individual houses. I’m amazed at the number of abandoned, or at least very sparse developments. In most cases the roads have been put in through a farmer’s field in typical subdivision arrangement of parallel roads and culdesacs. But very few houses. Sometimes not even any grass. A couple that I saw looked like very high end houses–one or two per street. All of this is very much ‘flyover country’ in upper East Tennessee. THere’s also an enormous prepared commercial site along I-40 at the turnoff to Pigeon Forge (Ghastly place!). THey spent years quarrying fill for the site–now completely abandoned. I’d hate to be the one financing that dea.
A small plane is a great tool to see “behind the curtain” in this “crisis”. I wish more people could see the view and witness with their eyes how greed has been trumped by reality. Its not all just about words and numbers.
“I live in the “shadow” of these beasts and get to see them nearly every day.”
Are the tower cranes still there?
No, no cranes, these buildings reached their completed height. They were using service elevators on the sides of the buildings to raise equipment to the individual floors (the elevators are ripped off the building at this point, but the tracks are still there).
From a distance they seems mostly completed - big concrete towers with glass windows intact. Once you get closer you realize how many windows are missing and how unfinished everything really is. It’s a HUGE eyesore at ground level, just a total mess down there. The reason vagrants are getting inside so easily is because the building is completely open at the base - there is no closed off ground floor (it hadn’t been completed). It’s all the rage among college kids here to get inside there and mess around.
I stayed at the Tempe Palms Hotel for a conference last summer. The Center Point construction effort had already been halted, and the two idled tower cranes were swinging with the wind. The abandoned project looked like a major liability from the street level up to the tower cranes. The construction performance bonds likely failed too; just words on paper.
I have a feeling those things are going to be imploded. They’re practically destroyed inside from two summers’ worth of 150+ degree interior temperatures having warped all of the wood cabinets and trim. No doubt there’s also water damage and mold problems, and vandalism by college kids and homeless people who have been wandering around inside due to a lack of security.
I was in downtown PHX last night with a friend and as we were walking past the 44 Monroe condo (where all of the units were just foreclosed), I mentioned to him that it must be kind of creepy for the few people living in it. A youngish couple was passing us, and the woman said “It’s NOT creepy…” So we struck up a conversation—turned out they rent a place in the building and like it well enough, and that the condos were all about to be re-marketed at hugely reduced prices so they were waiting to buy. They were originally asking over $400K for one bedroom units, and according to her the new asking price was somewhere around $160 for the smaller condos. Given the fact that the HOA is probably astronmical, that’s still on the high side.
Reminds me of Landmark on Central. Used to be an apartment high rise, got converted into luxury condo’s. Last I saw you could steal a unit there (prices between 35,000$-90,000$ depending on view, size, etc). Trouble is, when they “converted” these old apartments, they failed to do anything except slap a clean coat of paint and some fancy cabinets in. The plumbing is failing building-wide, and the multimillion dollar central AC system is breaking down (requires replacement but the hoa doesn’t have the cash to do the work). There is talk of everyone having to use window units soon, and fears that the building cant handle that sort of electricity draw. I heard from a resident that they spent weeks without AC over the last few months, and the worry is it will be out of commission sometime in the summer making it unlivable (take centerpointe’s 190F summer as a primer on what happens if that AC system goes out). Top it off with 700$ a month HOA fees and massive vacancies thanks to the majority of the building being in forclosure. I wouldn’t buy at -any- price.
Places at the Landmark are going for as low as $19,000—and these are places that used to go for over $200 at the height of the insanity. HOA on a small place is over $1000/mo due to the AC problems. I’m not sure what the status is right now, but last I heard the building system (old water chiller unit) was not repairable, and they couldn’t find a comparable replacement. So yes, they were talking about putting compressors on all the balconies and running the refrigerant lines into each individual unit, and no, a building with electrical service that’s 40 years old probably won’t be able to handle that.
I see they finally auctioned off the Chateaux on Central. Going rate was around $200 per unit, for places that they’d hoped to sell for between 1.5 and 3 mil. Maybe now they’ll actually finish the thing.
http://www.nypost.com/f/print/news/business/metal_are_in_the_pits_2arTlGNbMK7mb1uJeVHb0O
There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.
The banks, which do the Federal Reserve’s bidding in the metals markets, have long been the government’s lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.
Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.
Maguire — in an exclusive interview with The Post — explained JPMorgan’s role in the metals pits in both London and here, and how they can generate a profit either way the market moves.
“JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer,” Maguire said.
In the gold pits, Maguire sees HSBC betting against the precious metal’s price without having any skin in the game in the form of a naked short.
“HSBC conducts an ongoing manipulative concentrated naked short position in gold. Silver is much easier to manipulate due to its much smaller [market] size,” Maguire added.
Also during the CFTC hearing, Jeff Christian, founder of the commodities firm CPM Group, said that the LBMA, the physical delivery market for gold and silver in the UK, has been using leverage, which is another way to depress the price of gold and silver.
Christian said that the LBMA — the same market Maguire trades in — has leverage of about 100-1 on the gold bars settled on the exchange. In layman’s terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal.
The remaining requests would have to be settled for cash equivalent. “That is tantamount to a default on the trade,” says Bill Murphy, chairman of the Gold Antitrust Action committee.
Maguire goes further and calls it a fraud: “If you sell something you do not own, then that is fraud.”
Back in 2007, Morgan Stanley agreed to settle a $4.4-million lawsuit brought by precious-metal clients, who alleged that Morgan offered to buy gold and silver and store it for the investors, but never purchased any metal and still charged them storage fees.
How would we get an actual audit of all the physical gold held by our government? I think taxpaying citizens are entitled to an “annual report”.
Do you think its coincidental that the Fed is pushing back so hard on Ron Paul’s bill to audit them? Nobody has actually inventoried the gold supposedly stored at Fort Knox in over 50 years.
http://treo.typepad.com/got_gold_report/
Commitment of Traders report indicates a sudden surge in gold and silver short positions,no doubt by the usual too-big-to-fail suspects with naked shorts backed by taxpayer bailouts. Trouble is they might already be underwater on these shorts and gold’s momentum slows no signs of slowing. Let’s see if the manipulation works as always, or ends up blowing up in their faces.
Would the government really fake a recovery?
http://www.youtube.com/watch?v=6NgfzAAskF0&playnext_from=TL&videos=xiKsGoecE2g&feature=sub
Remember the old saying?
“Fake it ’till you make it!”
From The Daily Capitalist
I am tired of the cheerleading by the mainstream press where they see every positive sign as a sure sign of recovery and every negative sign as “unexpected.” Every article I read on new data from the Wall Street Journal or Bloomberg is the same–with mind numbing regularity. Worse is that they always find some economist to give them a positive quote to the effect that we are “turning the corner” or “the recovery is self-sustaining.”
Here are some examples from recent news. These aren’t cherry-picked:
Wholesale inventories rose by 0.6% in January; sales increased 0.8 percent, the 11th consecutive increase.
WSJ: “far above expectations.” The title of their article was “Wholesale Inventories Surge.”
Bloomberg: “larger than anticipated.” Bloomberg always likes to line up some optomistic economist: “’Firms are seeing more reason for optimism in the outlook and are looking to build inventories to fill future sales growth,’ said Zach Pandl, an economist at Nomura Securities International Inc. in New York.”
Don’t you have to have sales to spur inventory?
Initial jobless claims rose by 18,000 for the latest reporting week of April 3, up to 460,000.
WSJ: ” jobless benefits rose unexpectedly last week.”
Bloomberg: “More Americans unexpectedly filed claims for jobless benefits …”
Job Openings in US decrease to 2.72 million in February (- 4.6%). They fell for the first time in three months. There are more than 5 people vying for every opening, up from about 1.8 when the recession began in December 2007.
WSJ: They didn’t even report this.
Bloomberg: I have to admit they didn’t gild the lilly here. But they add that Home Depot is hiring “for the first time in four years.”
One in five US jobless–20%–are unemployed after a year according to a new Pew study.
WSJ: Again they missed this story.
Bloomberg: Kudos. They reported this fairly because it was Pew’s data. They did mention that 162,000 new jobs were added in March.
162,000 jobs added in March. Of those, 48,000 were government workers, many related to the U.S. Census. These aren’t real “economic” jobs.
WSJ: “created jobs at the fastest pace in three years.” Their headline was: “Employers Added Most Jobs in Three Years in March.” They noted that YoY that employment down another 1.8% and unemployment rate unchanged at 9.7%. Toward the end they mentioned that the broadest measure of unemploment (U-6, Marginally Attached Workers) was up from 16.8% to 16.9%. And at the very end they note that average hourly earnings (wages) for workers declined 0.1%.
Bloomberg: Pretty much the same. Instead of Home Depot adding jobs, this time they used another favorite, Caterpillar as an example. Funny, they forgot to mention that wage earnings declined, again. Both articles quote economists who think things are getting better.
Institute for Supply Management’s index of non- manufacturing businesses (services) rose to 55.4 from 53 in the prior month. This is another good sign, especially if looked at in isolation.
WSJ: “‘It looks like the recovery is definitely here in the service sector,’ said Adam York, an economist with Wells Fargo Securities.”
Bloomberg: “higher than anticipated.” “’The recovery is looking increasingly self-sustaining,’ said James O’Sullivan, chief economist at MF Global Ltd.”
Private-sector jobs in the U.S. dropped by 23,000 this month. This ADP report was at odds with the BLS numbers which showed employment gains.
WSJ: “The news rattled investors and economists who had expected March would show a gain in payrolls.” Economist Joel Prakken, chairman of Macroeconomic Advisers said the ADP report didn’t include any weather rebound or census hiring and that the numbers were reasonable.
Bloomberg: “Companies in the U.S. unexpectedly cut payrolls.” They also blamed it on the weather and quoted Mr. Prakken as well. They again cited Caterpillar as a company that is hiring.
Personal spending (PCE) increased by 0.3% in February, but personal income was flat and savings were lower. PCE is really weak overall. No one connected the dots that said consumers had to resort to savings to make purchases. See my article: “Consumers Draw Down Savings For Personal Consumption.” PCE is really weak overall.
WSJ: They reported the facts. They didn’t make a note of the connection between a rise in PCE and a decline in savings.
Bloomberg: “Consumer spending in the U.S. rose in February for a fifth consecutive month.” “’Considering the circumstances, this is a fine performance with the job market still not strong,’” said Michael Moran, chief economist at Daiwa Securities America Inc. in New York.” They noted that savings declined as a result of spending and declining wage earnings.
Oh really?
LOL.
For my money you can’t get enough “aggravation quotient” until some MSM Airhead (no offense to the Airhead Beemer riders!) say “nascent recovery” four or five times.
Roidy
http://www.guardian.co.uk/world/2010/feb/14/americans-prepare-for-apocalyptic-disaster/print
Not everyone is buying the MSM “happy days are here again” snake oil. Preparedness is a booming business. People sense a financial reckoning day ahead that is going to bring turmoil and ugliness.
“At some point over the next couple of years, and no later than 2013 after the U.S. presidential elections, the long-term need for so-called short-term “emergency” lending, of which the discount window is but a small part, will sink in. Around the same time, the “temporary” expedient of fiscal stimulus will begin to look permanent. As we have warned readers for years, this will spell rising inflation and taxes in the best case, with a potential for a major debt and currency crisis if the process does not go according to plan.” - Eric Janszen - itulip.com
i think his point is that the low interest rate policy is supposed to be a temporary fix. we have gotten to the point where we are addicted to low interest rates and need them “permanently” just to sustain a meager recovery at best.
the next downturn (he predicts in 2013) will be the big one.
J A P A N
Well so far, I’m batting 1000 with my prediction of more “unexpectedly.”
What’s really scary here is the number of people who are losing their UI. Contrary to popular donkey braying, even the extension have run out for many people.
Whenever I deal with a local business person (owner or manager, not clerk or server) I ask how their business is doing compared to Spring of 2009. The list of people I’ve asked include my boat servicing guy, local pizza joint owner, the manager of a more upscale restaurant, my real estate owner/broker friend, and the local quick-lube center manager. All say their business is better than last year. Some have added positions. The real estate owner/broker admits things are just a bit better for him. Last year I was worried our pizza joint was going to close because there were so few patrons whenever we were there. The number of diners in the place is definitely up now compared to most of 2009.
Are we back to 2005? No.
I’m hearing mixed. Same sources.
Act now and she’ll throw in the pvc-pipe to finish the plumbing!
Tyvek house is finally for sale!
http://daytona.craigslist.org/reo/1686800367.html
Hmm, how do I emote a barf?
Roidy
IMHO, a half-finished house is worth $0. Any value can can extract from it should be considered a bonus.
Its good to hear she is “taking offers” on a house that’s for sale. I wouldn’t have it any other way.
289K? SOB would have to pay ME 289k to take that POS!
From the East Valley (AZ) Tribune:
Obama Going Off the Deep End
A recent analysis by Roger Simon of PJTV Media maintains that Obama is showing signs of mental illness. A wide variety of commentators have observed that Obama displays severe narcissism. Obama is conceited, and he is demonstrating a serious disassociation from reality.
A recent case in point was Obama’s bizarre and meandering 17-minute, 2,500-word answer to the simple question about how he could justify raising taxes for ObamaCare during a recession when citizens are already overtaxed. Obama’s wildly inappropriate answer left the audience stunned and led commentator Charles Krauthammer to mockingly say, “I don’t know why you are so surprised. It’s only nine times the length of the Gettysburg address, and after all Lincoln was answering an easier question, the higher purpose of the union and the soldiers who fell in battle.”
This lapse of delusion occurred in front of a friendly audience. Overall, Barack Obama seems to be slipping into a slightly more delusional state these days.
On Monday, following his embarrassing answer on Saturday, Obama stopped by the Washington Nationals home opener to loft an effeminate toss toward home plate constituting the ceremonial first pitch. After this display, Obama was mucking it up in the press booth talking about his love of the Chicago White Sox. The announcers asked Obama which players he supported growing up a White Sox fan. After hemming and hawing for about 30 seconds, Obama responded that he grew up in Hawaii and was actually an A’s fan. Again, he avoided mentioning any players by name. Obama seems to believe that he can say whatever he wants, and not reap the consequences or be forced to defend his empty assertions. Obama behaves in a manner so disconnected from reality that he is shocked when someone has the audacity to question him. Obama acts like his word is infallible.
In March of last year Obama was on “60 Minutes” with Steve Kroft. Throughout the interview as Kroft questioned about the economic downturn and people losing their life savings, Obama just kept laughing. A one point CBS’s Kroft stopped him and asked, “Are you punch drunk?” How will the American people react to seeing their president laugh off their predicament? Obama’s inappropriate laughter clearly demonstrated he has lost touch with the pain that people are feeling.
Obama portrays himself as the larger-than-life figure towering above the political fray. At the summit when Obama was pushing his health care package through Congress, he attempted to act as if he were the chief arbiter of truth. With petty insults, he slapped down what the Republicans proposed and audaciously claimed his was a “bipartisan bill.” Obama distorts the truth with such frequency that one must start to question if Obama even realizes he is lying or is so disassociated from the truth that he believes what he says.
A further example of Obama’s delusions of grandeur occurred when he gave himself a “good solid B plus.” Believing that his presidency was an above average success when America is hurting is absurd. Obama went so far as to claim that he would give himself an “A” once health care was passed. Obama is not living in the same reality as the rest of us.
As Charles Krauthammer wrote, “Not that Obama considers himself divine. (He sees himself as merely messianic, or, at worst, apostolic.) But he does position himself as hovering above mere mortals, mere country, to gaze benignly upon the darkling plain beneath him where ignorant armies clash by night, blind to the common humanity that only he can see.”
Obama sees himself as the greatest man to be president in all time. He truly believes it when he said “we are the ones we have been waiting for,” and “this is the moment when the rise of the oceans began to slow and the planet began to heal.” He believes that he can do anything he pleases and the people will love him for it. Obama plans to radically transform this country and go down in history as, in his mind, the greatest ever. Obama is clearly disconnected from reality.
I love The Onion. So Funny.
link: http://www.eastvalleytribune.com/story/152636
The announcers asked Obama which players he supported growing up a White Sox fan.
And he didn’t name any!!????? Dang, he’s a slow learner…
The correct answer: “All of them”.
No, the correct answer would have been Harold Baines.
“All of them”
It would appear his favorite players were the ones who did nothing to contribute to the team’s effort and complained the loudest. Or maybe it was the owners of the team who could qualify for “too big to fail”. Probably both.
But the “All of them” answer seems to work in a buncha tight spots.
Couric: “I was curious, what newspapers and magazines did you regularly read….”
Palin: “All of them…” Source: CBS
Beck: “Who is your favorite founder?”
Palin: “All of them because they came collectively together with so much diversity”
Beck: “Bull Crap”
(But when pressed Palin said Washington because he was “a statesman”) source: politico
Relax~Laugh a little~ AC-CENT-TCHU-ATE the POSITIVE
That’s all a bunch of nonsense. You can just ignore it. I never thought that the East Valley Tribune was a good paper, but I never realized that it was so lame.
(Sigh). And to think I was so reluctant to vote for McCain because I thought he was in early Alzheimer’s.
Instead we got to see the Peter Principle at work. Community organizer to POTUS with a few weeks as Senator in between- what did we expect?
“Roger Simon of PJTV Media maintains…”
“Founded in 2004 by a network primarily, but not exclusively, made up of conservatives and libertarians led by mystery writer, screenwriter, and blogger Roger L. Simon, and until 2007, Charles Johnson of Little Green Footballs…”
per Wikipedia
Little Green Lunatic’s and crowd…no bias there
lol
Yesterday, I went to an auction of high-end condos in Wilmington, DE. I am curious how the prices realized compared to other areas. The well advertised auction was for 20 units in the River Tower At Christina Landing. The auctioneer stated that these were the last remaining of 180 total units. However, I was told that some units were earlier taken off the market and rented out by the developer. The auction was ‘bidder’s choice’ for two groups of units. Minimum bid was $95,000 and three units in each group were guaranteed to sell. Group A was comprised of larger units (1,346 - 1,476 square feet) and were said to have the best views. The ‘previous asking’ prices ranged $604k - $692k. The first unit sold for $385; 2nd $375; 3rd $350; 4th $325; 5th $290. Then the bidding was stopped for the remaining 3 units in Group A. Group B were 1,026 - 1,286 sq ft and had ‘previous asking’ prices of $381k - $476k. The first unit sold at $220. The second unit sold at $215k. At that price, 8 of the 10 remaining units sold in a matter of a few minutes. Only the smallest 2 units did not sell. I figure that the price per sq foot was about $165/sq ft. There was obvious demand at that price. Sound reasonable?
Hey DE…..
How things in Sussex and Kent counties?
I do not know about the Sussex. Lots of developments never got off the ground in Kent, but there does not seem to be a lot of inventory for existing homes. From what I can see, prices for existing dropped about 30%. The paper had a story today that YOY resales increased 14% in New Castle and 30%+ for both Kent and Sussex.
We’re heading down to sussex sometimes in the next 45 days. We have a few shacks on our radar.
If anyone will be at NAB next week send me a message on twitter (@reamworks) and we can meet for a drink and talk bubble at ground zero!
http://www.telegraph.co.uk/news/worldnews/europe/greece/7578918/Eurozone-agrees-EU30bn-Greek-bailout.html
Despite an explicit clause in the EU charter that forbids bailouts, EU nations are ponying up thirty billion euros “in case” Greece asks for a bailout. Color that money gone. Of course the EU leaders are claiming this is not a taxpayer subsidy of Greece’s corruption and reckless spending habits. These guys know the game is up, but are trying to calm the markets and stall for time, since a Greek default will take the Eurozone down with it. Oh, and the IMF, which is heavily funded by the U.S., is offering another 10 billion Euros. Color that money gone, too. The trouble is, the taxpayers of northern Europe - the ones who will get the tab - aren’t as lobotomized and quiescent as their American counterparts. They are going to be very pissed off when they see that their “leaders” went ahead with this fraudulent bailout over the strong objections of their own citizens, especially when Greece ends up defaulting anyway.
I like how they say:
“In an emergency video conference, the finance ministers of the 16-eurozone nations agreed on a complex three-year financing formula that generates an interest rate of “around 5 percent.”
This is less than commercial market rates — which have soared above 7 percent on Greek 10-year borrowing in recent weeks as the debt crisis dragged on…”
in the same breath they say:
“This is certainly no subsidy”
It seems rather clear to me that if the rate is less than market rates, then it’s being subsidized. No?
It becomes a subsidy when the Greeks laugh at EU requests for repayment.
You do remember that most Americans were against TARP and it went through.
Most Icelanders were against IceSave and reports suggest this will go through.
The banks will plunder until there are riots and governments are overthrown.
Most Americans may be against bailouts, but like the mindless sheep that they are, they negate that supposed opposition by voting for pro-bailout corporatist puppets like Obama and McCain. The predatory elites have nothing to be concerned about from such stupid, gullible herd creatures.
But what has that got to do with Tiger Woods, dammit?!
http://www.independent.co.uk/news/world/europe/pop-star-julia-alexandratous-sex-tape-gives-greece-a-welcome-break-from-debt-crisis-blues-1921838.html
LOL. The Greek media has torn a page out of the MSM handbook. When the masses get riled up over the fiscal train wreck their leaders have created, nothing works to distract them like a “leaked” pop star’s sex video!
Guns ‘n Roses, folks.
errr, I meant bread ‘ circus
Interesting week. Friday, did my taxes and rearranged my banking assests. What became very, very clear was the war on savers. Any interest made was just redistributed back to the IRS in my tax filing. Why even get interest and give it to them? Any money sitting in the bank not drawing interest is used by the bank free of any fees.
So, here’s the situation. Had some CD’s in the 3% range come due and the new rate is 0.7% (for two years) regardless of sum invested or just leave it in the money market for 0.6%; no brainer on that choice. Teller says to go upstairs (this is at a credit union) because the investment guy is making people happy by giving a better deal (investment guy works for said credit union). Didn’t hurt to check, so I went upstairs. The deal was to lock up your money on a three year deal tied to some stock market derivatives. Example if the market is at 10,000 and in three years goes to 12,000 you make 20%, of course he played down the market going from 10,000 to 8000 and you didn’t collect anything until term. Bottom line is that the same institution gets free use of your money and the ability to play the market with it at the same time while leveraging it out on loans.
The only way to stop the banking games is to withdraw all savings from the bank and put them in a safety deposit box; this will force the banks and government to react. Maybe now is the time to buy gold and PC metals and store them in a safety deposit box. And at the same time get house owners to stop paying mortgages that are underwater in undesirable locations.
“The only way to stop the banking games is to withdraw all savings from the bank and put them in a safety deposit box; this will force the banks and government to react. Maybe now is the time to buy gold and PC metals and store them in a safety deposit box. And at the same time get house owners to stop paying mortgages that are underwater in undesirable locations.”
You are correct. We really do have the power to take control of our government/banks, but without any mass organization the power goes untapped. If there was any way we could get everyone together on this…
But my safe deposit box is in a bank.
I’ll add pay with cash no credit card use.
Buy local as local merchant might tuck some of that away.
Pay off your home loan
I personally feel that the biggest reason nobody would join in a bank-boycott revolution is because of a common fear that Americans have that their “comfortable routine” might get interrupted and they might miss an episode of “American Idol” or that their lawn may turn brown or something. Ostrich heads are frimly planted in the sand.
‘Maybe now is the time to buy gold and PC metals and store them in a safety deposit box.’
Think copper.
Ron,
I closed my Morgan-Stanley account this past week. Let the blood sucking vampire squid find another donor.
I pulled all my accounts out of Wachovia in December 2009 and put them in a well-run local bank. Vote with your money.
We have our house $ out of the banking system, and put it in a liquid TD Ameritr**e account on the Brokers side (not the Banking side). It’s insured through a London Ins. firm, not just the SIPC.
Banks can tap your safe deposit box at will and make up a perfectly legal reason to do so.
The only truly safe place is a fireproof safe in your house.
You want a return on your money? It’s now up to you to figure out how to do this… yourself. Hint: think more physical and unorthodox.
Our credit union allows unlimited additions to existing CDs at the original interest rate. We have a CD paying 5% that’s growing quite a large balance as other CDs and Treasurys mature. See if your credit union does the same.
If you’re getting 5%, stick with those guys! The best I’ve seen here is 3% long term jumbo.
2901 Broadway San Francisco, CA 94115
hilltop-mansion-in-san-francisco
In San Francisco, California, you’ll discover a $45 million hilltop mansion with views of the Golden Gate and the North Bay from nearly every room. This Italian Renaissance home is complete with a Grand reception hall, elegant formal rooms, marble stairway, seven bedrooms, seven-and-a-half bathrooms, library, music room, office, recreation room, elevator, garden and private tennis court. The home was built in 1927 and is located on the Gold Coast in the Pacific Heights sub district of San Francisco.
MLS NUMBER 322933
MLS SFRAN
I think it is about 8000 sq ft or about $5600/ sq ft. Gee. I can sell mine and get 30 or 40 sq ft of that.
What a deal!
Roidy
Hmm,
According to the Inflation Calculator that house cost $3.7 million in 1927. I wonder what it really cost then? $250K?
How to find this out?
Roidy
I looked at the interior pictures.
How do I emote a barf, again?
These images show an interior design disaster. Of course, I’m in N. Louisiana, so that makes me a member of the “Great Unwashed”. Don’t take my personal tastes with any credibility.
Roidy
What? You don’t like the ‘Gilded Age” look?
(when even the ornations had ornations. frankly, I hate it as well)
Roidy, just put the number in reverse order.
$288,938
So, it cost about $288K in 1927? That means it would be about $3.5 M today.
The current owners want 13 times the nominal worth today? I did find out that they dropped the price $10M already. It was listed for $55M.
Man that’s a lot of money.
The current owners want someone who wouldn’t be as careful about their money as they should be to buy that place. Nick Cage would.
Roidy
http://news.yahoo.com/s/ap/20100411/ap_on_bi_ge/eu_hungary_elections
Meanwhile, in Hungary, a far-right party backed by black-shirted paramilitaries is poised to make electoral breakthroughs in today’s elections. Investors aren’t going to like this. The socialist party in power is being drubbed over its policies that brought economic ruin to much of the population.
Couldn’t happen here…..
Of course it can’t. We have Corporate Communist Capitalism©®™.
We need a new flag,I propose we adopt the old Soviet flag but replace the hammer and sickle with a golden GS.
http://www.telegraph.co.uk/news/worldnews/europe/hungary/7578561/Hungary-elections-first-step-to-power-for-far-Right-since-Nazi-era.html
For the first time since WWII, an avowedly neo-fascist party has won a place in a European government with 17% of the popular vote (tripling its previous support). That should give pause for thought. The previous socialist government accepted a $35 billion bailout from the IMF in 2008 to head off an economic collapse. The government failed the people and now the people are increasingly turning to those offering simple, radical solutions. We’ve been down this road before and know how the story ends. Once again collective amnesia has overtaken both the Europeans and the US.
Call it a hunch, but with ultra-nationalism on the rise in Hungary, the odds are pretty good the IMF, and by extension US taxpayers who provide 30% of its budget, is going to get stiffed big-time.
Good thing ultra-nationalism and black-shirts haven’t produced any problems in the past… oh, wait… ummm… well, not recently…
Yeah, this can’t end well.
This story is evolving and newer reports will probably be there for the next PNW and/or construction defects thread.
A major high-rise apartment building in downtown Seattle is going to be razed due to uncorrectable construction defects. The 25 story building is only 9 years old.
The building owner has informed officials at the Seattle Department of Planning and Development (DPD) of the extensive construction defects, which principally involve corrosion of post-tensioned cables and concrete material and reinforcement placement deficiencies. The post-tensioned cables are corroding because the ends of the cables were not properly protected with corrosion preventative paint, and the grout used to seal the cable ends and anchors was not the specified non-shrink grout and was defectively installed. As a result, water leaked into these areas and caused the cable ends to rust, and then corrode.
There’s a certain humor in the massive amounts of construction defects in a building owned by a construction workers’ labor union.
Here’s a story link.
http://www.prnewswire.com/news-releases/belltown-apartment-building-to-be-vacated-and-dismantled-90537069.html
Note that the source of the story is a law firm specializing in real estate litigation.
There is irony in that, indeed.
But what were the city inspectors doing all that time, hmm?
Some of the venerable British and European newspapers, in stark contrast to the US counterparts, still have commentators who will tell it like it is instead of shilling for their corporate pimps. Ambrose Evans-Pritchard cuts through the BS on the Greek bailout, while the financial media touts on this side of the Atlantic will cheerily be proclaiming “Greek crisis contained!” instead of “Iceberg ahead!”
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7578938/The-Greek-people-are-being-punished-for-Europes-errors.html
Last week’s rise in spreads on Hellenic two-year bonds to 730 points over German debt is proof that Greece cannot tap capital markets at bearable cost. It must spiral into default unless the EU-IMF rescue mechanism is activated. “There is no point waiting for an accident to happen,” said Nomura’s Laurent Bilke.
As I write, it appears that EU experts have agreed on a package of €20bn to €25bn at 350 points above the IMF tariff, or 5pc. This achieves nothing. Such wishful thinking has plagued the Greek/EMU crisis from the start. Simon Johnson, the IMF’s former chief economist, said Greece needs €110bn to have any hope of pulling itself out of a tail-spin, given that the twin cures of default and devaluation are blocked. Even that may not work. Greece must squeeze a further 13pc of GDP from the budget to stabilize debt costs by 2012, and do so during a slump when every euro of tightening leads to €1.5 to €2 in lost demand. “The risk is of a vicious downward cycle,” Mr Johnson wrote in the Huffington Post. (excerpt)
Gov’t inspectors do their deeds, but absolutely do not offer any warrantees. Suffer I guess!!
While You Are Finalizing Your Taxes…
Assuming you owe, of course (if not, you’ve probably already filed) consider the following.
Do you feel like you’ve gotten any sort of “representation”?
Have any of the crooks in our financial markets gone to jail? Banking executives? Congresscritters? The OTS examiner who their own inspector general said fraudulently helped Indymac backdate deposits? The guy(s) at Indymac who did that? Lehman’s executives? All the other banks who also resorted to bogus “window dressing”? How about Sarbanes-Oxley, that was supposed to prevent this? How about the supposed “clampdown” on off-balance sheet games, which should have prevented any of the several trillion that our banks currently hold off balance sheet - with real values of “god knows what”? How about The Fed’s Maiden Lane I-III, all of which I allege were unlawfully setup? How about the blatant lies before Congress by Bernanke, including claims that the Maiden Lane portfolios not only wouldn’t lose anything but also that they held “high quality” assets and were not being actively managed (both of which we now know factually were false statements.)
There are hundreds more, of course.
So what do you do?
Well, you could refuse to pay. But then the IRS comes after you.
Last year we sent tea bags. A peaceful protest.
This year, I think you should print out a picture of a jar of Vaseline and attach it under the paper clip with your check, in recognition of the fact that we’ve all gotten and continue to get screwed by the raw corruption and fraud that permeates Wall Street, Constitution Avenue and Pennsylvania Avenue - both 1600 and 1500.
(From K. Denninger)