Bits Bucket For June 18, 2010
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The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Waaaaah Please uncle sugar just keep extending & pretending.It’s not the buyers “fault”!
Thousands of home sales depend on tax credit extension.
USA TODAY
Thousands of pending home sales may be in jeopardy unless Congress extends the June 30 deadline for buyers to close on their deals and claim a tax credit.
The Senate on Wednesday approved a three-month extension, giving buyers until Sept. 30 to close, but it’s attached to another bill that still has to be passed by the House.
The extension would apply only to buyers that met the April 30 deadline to have signed purchase contracts in hand.
The tax credit is worth up to $6,500 for repeat buyers and up to $8,000 for first-time buyers.
Many pending deals are in danger of not closing by June 30 because of delays that aren’t the buyers’ fault. Some appraisals are taking longer to complete, and some lenders have been overwhelmed by a crush of mortgage applications that landed before the tax credit expired April 30.
And soon enough the April 30 deadline will be extended as well. This is going to become like GM rebates. Every car, every model, every month GM has a $3000-5000 rebate.
But we can’t worry about that. Oh no. The CEO of BP said something about small people and we need a 7 day news cycle on that. Never mind the 13 trillion debt. Never mind the fact that a US president just unilaterally confiscated $20B from a private corporation without any due process. Hey but did you hear game 7 of a basketball series was on last night? Now that’s important stuff.
If the 20 billion wasn’t pressured from BP, do you think they would have walked?
BP could have told the prez see you in court.
Did BP commit crime(s) on that rig?
Has BP come clean about short cuts?
They have upped the damage estimate to the $40 bn to $100 bn range. If BP offered to set up a fund at a given fixed dollar amount, there is a good chance it will prove inadequate.
Markets Hub: Oil Spill Impact Broadens
June 18, 2010
The ramifications for the energy sector from the deepwater drilling ban in the Gulf of Mexico are huge and now the fallout on the economy is also growing. This is coming at a time when financial markets are already questioning the economic outlook, leaving markets still searching for conviction. BP itself has had a brutal week, with all three ratings agencies downgrading the company. Paul Vigna, Madeleine Lim and Steve Wisnefski discuss.
“Never mind the fact that a US president just unilaterally confiscated $20B from a private corporation without any due process.”
I think it is great when the President acts to protect our Nation’s interests.
I just wish he had hammered Megabank, Inc as hard as he is BP.
Seconded.
I think it is great when the President acts to protect our Nation’s interests.
Does the rule of law play a factor in what you think is “great”?
Sure, it’s good for the pres to step up and pressure them. But he, as head of the executive branch, should be standing for the rule of law first and foremost.
The Constitution says he does have that right.
Is that “law” enough for you?
Are you kidding me? You’re complaining about BP having to put $20 billion (spread over 4 years) in an escrow account when they are currently polluting the crap out of the Gulf of Mexico. I’d love for you to go and try and be a dolphin living in this cesspool.
Try and think of the planet we live on, the planet that wanton greed is destroying. It makes me sick….
BP made six billion in profits in the first quarter of this year. They used to make $43 million in profits per day….. They can damn well afford to pay to try and correct their catastrophic mess.
At least then the rebate is coming from the private sector, and not the public.
I saw an ad on the TV the other day where a residential broker was touting the continuation of the $8,000 credit for some listings, but this was coming from the seller/broker combo (rebate at escrow for costs, etc.).
Great, back to giveaways in the more normal sense…where the seller gives away, not the government.
Chumming the waters to draw in the fish so they can be netted.
It’s only for buyers who were under contract before expiration, but whose closing dates have been pushed off.
So far. If housing prices begin to tank look for more of the same.
If Uncle Sugar can offer a few billion in tax credits to save hundreds of billion in equity losses then that’s what Uncle Sugar will do.
On the other hand, if those first-time buyers who took the $8K credit as incentive to get off the fence end up losing big time due to further home equity losses, the notion of resurrecting the tax credit channel to lure more buyers into catching themselves falling knives may prove politically untenable.
But I suppose if the dollar is driven down sufficiently relative to gold and everything else, it is possible that nominal housing price declines are largely behind us at this point.
Congress is trying to survive. They will find a way to keep this going until early November - election day. Real estate is based on politics, not the market anymore.
“Real estate is based on politics, not the market anymore.”
The problem is that with so much financial innovation in recent years to provide those in high office the tools to manipulate markets (computers, derivatives, etc), why would a hubristic band of power mongers pass up the opportunity to use those tools to maximum personal advantage?
Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation’s highest foreclosure rate, and Reid is facing a tough re-election campaign.
“But I suppose if the dollar is driven down sufficiently relative to gold and everything else, it is possible that nominal housing price declines are largely behind us at this point.”
The dollar is dropping compared to investor class stuff (gold, stocks) which are being bid up the high and mighty. The dollar is dropping against the necessities of life (food, energy) based upon increasing demand from the growing lower-middle classes around the world. But demand for middle to lower class luxury items such as houses seems to be contracting.
“But demand for middle to lower class luxury items such as houses seems to be contracting.”
Falling demand for houses + weakening dollar = U.S. housing price stability.
Real estate has always been about politics. Didn’t you know ever increasing home/investment prices is guaranteed under the US Constitution? I thought everyone knew that.
“It’s only for buyers who were under contract before expiration”
Unless they change the date of the contract. But that would be fraud and that never happens with a mortgage.
By KEN RITTER, Associated Press Writer Ken Ritter, Associated Press Writer – Thu Jun 17, 7:23 pm ET
LAS VEGAS – Some 500 people have been arrested in a nationwide crackdown on mortgage fraud, and federal officials pointed to Las Vegas as one of the centers of the scams that pumped up home prices until the housing market bubble finally burst.
Let me see if I have this straight: The original deadline of June 30 is no more. Now we’ve pushed things out to September 30. Which means that, if you signed the contract by April 30, you have five months to close the deal.
There’s something that smells funny here. I mean, come on. Even during the dizzying heights of the housing bubble, it didn’t take five months to close on a house.
One more thing: There’s this little birdie that tells me that a lot of the “need extra time” folks aren’t going to be able to find financing. I don’t know where it flew in from, but it’s a very persistent bird. Dang thing won’t shut up.
One reason given for the extension was that some of the houses placed under contract were short sales, and the interested parties in the transactions are stating that it’s almost impossible to close a short sale in 60 days.
I still think we haven’t seen the last of the tax credit for home sales. I understand that many of you have different opinions, but time will tell.
If nothing else, the National Association of Realtors is a lobbying entity with many feet on the street in each and every congressional district.
Flame away with your logical, coherent arguments- Washington is immune to them.
I can’t help thinking that if people need that tax credit so badly, they can’t afford to buy anyway. FBs in the making.
“…if people need that tax credit so badly, they can’t afford to buy anyway. FBs in the making.”
Government-sponsored adverse selection is what is keeping the housing market afloat…good luck keeping that going!
The other situation that is out there is where a multi-unit building is trying to get the necessary number of sales to be able to close on the units.
If a multi-unit building doesn’t have more than 51% of the units sold, then it is not doable with the GSEs, regardless of how much you are putting down, or your credit score.
How the worm has turned and the MSM wiggling with it.
Mortgages and Frauds and Prosecutions, Oh My !
Here come Da Feds, Oh Dear !
Who will take care of the squirrels ?
What is taking so long is the banks approving short-sales. In other words: Banks deciding to release inventory slowly. Giving them more time is criminal IMHO. I am sick of every “new rule” benefitting the banks - it is as if they own the government or something.
Speaking of criminality, here’s a little tidbit from Firedoglake:
Reid Seeks Bubble Re-Inflation
Key graf:
“While the sales have already been made, and this would just extend the processing, handing out this money to incentivize home purchases, basically to keep prices from bottoming out, is bad public policy. Moreover, it will encourage tax fraud on a large scale…”
They are deluged with requests.
“Thousands of pending home sales may be in jeopardy unless Congress extends the June 30 deadline for buyers to close on their deals and claim a tax credit.”
A good number of those deals could still close if - gasp! - sellers agree to lower the price to compensate for the lost tax credit. I know its obvious to HBBers, but apparently not to our nation’s senators.
It may be obvious to them, but since presumably around 100% of them are home owners, they have a vested interest in propping up housing prices.
If anyone has the data, I would be curious to see a distribution of senators by the number of homes they own; I would not be whatsoever surprised to learn a number of them own multiple homes as part of their wealth portfolios.
Aside from their second and third homes, the thing most dear to them is NAR campaign donations.
Thanks for the reminder. More generally, the Congress is heavily dependent on FIRE-sector campaign contributions of all stripes.
I think it’s simply buying votes and not a personal “vested interest” (though many Elected Officials have made silly real estate transactions, too.)
There are many homeowners on the HBB, like myself, who don’t mind if house prices fall back to realistic levels, like 2x median salary
I’m one. I mean it hurts, yeah, but at the same time lower prices all around means that the family members living with us now can finally move out!
Not if they were using the tax credit as a down payment.
“A good number of those deals could still close if - gasp! - sellers agree to lower the price to compensate for the lost tax credit.
It’s not about the house price. It’s about people who don’t have two nickels to rub together getting their hands on an $8k chunk of change- a princely sum to many of them. They’ll throw their financial lives away for it.
If they were waiting for conventional or even FHA loans they wouldn’t need more than 30 days to know one way or another if they were going to get funding. I guess that they’re trying to get more short sales closed, too.
The tax credit has nothing to with buyers and everything to do with artificially propping up the RE industry.
Say what you will but this is pure political bullshit, screw the federal government.
BP Oil Spill: Against Gov. Jindal’s Wishes, Crude-Sucking Barges Stopped by Coast Guard
59 Days Into Oil Crisis, Gulf Coast Governors Say Feds Are Failing Them
Eight days ago, Louisiana Gov. Bobby Jindal ordered barges to begin vacuuming crude oil out of his state’s oil-soaked waters. Today, against the governor’s wishes, those barges sat idle, even as more oil flowed toward the Louisiana shore.
Louisiana Governor Jindal frustrated over decision-making red tape.
“It’s the most frustrating thing,” the Republican governor said today in Buras, La. “Literally, yesterday morning we found out that they were halting all of these barges.”
Jindal is NOT Huey Long. Huey Long would have pulled the State Police into the fray and started another Civil War.
Roidy
I think it would be fantastic if Jindal told the Coast Guard to go fluck themselves.
P.S. I’ve worked with one of Huey Longs direct decendents. Quite a character.
Does the coast guard give a reason for stopping the barges, or are they just randomly throwing their weight around? I thought that Thad Allen seemed like an ok guy.
My dad was coast guard… seemed like a pretty normal bunch of guys. I suspect they are trying to coordinate and also do no harm.
We are in the deep waters now, science experiments and best guesses.
The people on the gulf are in the “god help us” mode.
Nevada’s unemployment rate to reach No. 1 in U.S.
Nevada now has the highest unemployment rate in the nation. The official numbers come out tomorrow, but News 4 has learned that the statewide jobless rate will reach 14 percent for May.
That surpasses Michigan, which had held the number one spot until this week, when its unemployment rate dipped to around 13.5 percent.
Pffft. What’s a little unemployment? Harry Reid is doing a great job and should be re-elected. Did you hear his opponent wants to allow young people to opt out of Social Security and keep their money to invest as they see fit and not throw down a government run black hole? Man, what a nutjob. We need Harry Reid to continue providing the kind of leadership that makes Nevada #1 in joblessness.
On November 2nd, vote Harry!
And when those people who opt out lose all their money on hare-brained investment schemes, do you think the government will really let them starve to death when they become elderly?
I’m no big fan of our Social Security tax, but letting some people opt-out is something I’m skeptical of….
Good point Reuven. Or better yet, who says they will save it at all? Most of the young ones here at work save ZERO in their 401(k)s
Many, MANY people have zero in their 401s. Constant wage cuts, job losses or raises not keeping up with real inflation will do that.
The equity or bond market will suck the money down the black hole way faster than SS. Ask anyone who bought and held starting in the 90’s. What we need is a truely inviolate trust fund, but that will never happen.
Spokaneman,
I’ve made that suggestion numerous times. If public companies want Institutional Sponsorship ( and a “401k safe for consumption” rating ) then they can subject themselves to even more rigorous auditing/accountability.
If that’s too much bother for you ( or you have something to hide? ) then your company will not be invited to participate! Fannie & Freddie for instance?
They brought in the gambling to pull them up in the Great Depression. Who will dream of going to Las Vegas when it resembles Detroit.
In every “recession” I’ve lived through, there was always someplace in the US that young people could move to find jobs. That seems to be missing.
In the early days the economy of Vegas was supported by gambling, in the latter days it was supported by building.
Because gambling was so lucrative in Vegas competiton began to spring up in various states, counties, cities and indian reservations. This competition took its toll on Vegas.
So Vegas was forced to out-build it’s competitors in an effort to offer something its competitors couldn’t. This building fed on itself, it kept Vegas alive. But all this building was powered not by gambling revenues but by borrowed money. Now that the borrowed money is no longer available for Vegas and gamblers have a lot of places to gamble that is closer to where they live there is really not much reason for Vegas to exist.
“Now that the borrowed money is no longer available for Vegas and gamblers have a lot of places to gamble that is closer to where they live there is really not much reason for Vegas to exist.” True, there are more opportunities for gambling elsewhere, but there are some activities people do not want to or cannot engage in close to home. It can only survive on becoming more extreme on over-the-top.
“… but there are some activities do not want to or cannot engage in close to home.”
But are there enough of these people - people with the money - to travel to Vegas to support these extreme activities that allows Vegas to survive?
Chumps have been gambling on credit there for as long as I can remember.
Nevada will prolly then legalize prostitution in Clark county and Washoe county.
Seriously a possibility, now that other states have casinos all over the place, which keep people out of Nevada who would otherwise go there.
Gee, for some reason, the monorail song from the simpsons keeps running through my head:
What about us brain-dead slobs?
You’ll all be given cushy jobs!
“…..to support these extreme activities that allows Vegas to survive?”
What extreme activities????? I want details man… I WANT DETAILS!!!!!
(yes, I do seem to be living life vicariously through this blog)
Um, prostitution is pretty much available most places as well, (Not that I know personally), so I cannot imagine that legalizing prostitution in Clark County will have a noticable impact on tourist dollars. (hey lets book a convention in LV rather that Debuke because hookers are legal in Vegas). I think the new Vegas is just going to die the slow death that the old Vegas (downtown) did. 30 years from now, the strip will be a decaying mess of partially closed hotels and casinos. There will always be some people that will go for the old Vegas mystique, but not enough to make the hotels and casinos profitable, and certainly not enough to fund the lavish projects of the past 20 years. Times, they are a-changing.
think the new Vegas is just going to die the slow death that the old Vegas (downtown) did. 30 years from now, the strip will be a decaying mess of partially closed hotels and casinos.
I’ve stayed just north of the Strip, and, yeesh, that’s a mistake I’ll never make again. Talk about a trashed-out, run-down part of town.
Don’t know how things are just south of the Strip, but if they’re like the area just north of it, steer clear.
I cannot imagine that legalizing prostitution in Clark County will have a noticable impact on tourist dollars.
Wait until CA legalizes pot. Then everyone east of NV will get their herb from us. Nyah-ah-ah!
I think the new Vegas is just going to die the slow death that the old Vegas (downtown) did.
In a way, I hope you’re right. I’d like to see Vegas go back to what it was in the ’60’s - a hip little getaway for SoCal folks.
Of course, they are going to have to bulldoze several tons of stucco first, otherwise it’ll fill up with illegals, gang-bangers and meth-heads like a gigantic Palmdale.
I’m not a big gambling hound or partier, but I’m guessing there’s a lot of people like me that enjoy a weekend now and then at the Wynn or Mandalay Bay. No way am I going to hang out at some two-bit Indian casino.
I am a junket gambler, nothing comes close to what Vegas provides as far as atmosphere, comps and service. Vegas will revert back to being an entertainment, recreation and gambling destination once trading houses is over.
Also, the NGC keeps close tabs on the Casinos, makes sure their payouts match their advertisements and routinely spot checks the computer chips in slot/poker machines.
Indian casinos are second or third rate at best, they make their own rules and have the worst odds. Also, if you are not a Tribe member, check your rights at the reservation border.
“In the early days the economy of Vegas was supported by gambling, in the latter days it was supported by building.”
Are those 2 things fundamentally different?
“in the latter days”
Before Vegas was a gambling capital, it was one of Brigham Young’s LDS colonies. And today, there is an LDS temple across town from the casinos. The Mormons have a saying about ‘opposition in all things’ which is nicely captured by the contrasts in Vegas history and ‘latter-day’ constitution.
“Are those 2 things fundamentally different?”
Michael, you win the thread. My hat’s off.
Gives new meaning to: “…the house always wynn’s”
Nevada’s unemployment rate to reach No. 1 in U.S.
We are NUMBER ONE!
Number one in foreclosures, number one in shadow inventory and now number one in unemployment.
If you’re going to have a real-estate spawned recession, don’t try it without Nevada!
Beyotches…
Nevada is melting down in terrific fashion, and it has nothing to do with Harry Reid, contrary to what brain dead partisan yahoos like Eddie want people to believe. First and foremost, tribal casinos in neighboring states and throughout the country have put a serious crimp on state gaming revenues, and ultimately jobs. In a state where, historically, more than 80% of the workforce had some relation to the industry, that’s devastating in and of itself.
To make matters worse, Nevada went all in on the housing bubble. The overbuilding was of epic proportions, and that is evident anywhere you look. I have family in Nevada, and have been floored by the level of overbuilding. Most of those construction jobs have completely disappeared, and the ancillary businesses which fed off them are on life support, if not DOA as well. I can think of a handful of contractors I know personally who have already gone BK.
Add in to all of this the fact that Nevada has done a poor job of recognizing the need to transition from a casino based economy to something more sustainable and that leads you to where Nevada finds itself this very moment- nowhere.
For the record, he Governor in the state of Nevada, Jim Gibbons, is a Republican. If any one person should bear the brunt of the blame for the current situation, it’s him.
it has nothing to do with Harry Reid, contrary to what brain dead partisan yahoos like Eddie want people to believe…<snip>…For the record, he Governor in the state of Nevada, Jim Gibbons, is a Republican. If any one person should bear the brunt of the blame for the current situation, it’s him.
Yes…Harry Reid is f’ing things up at the federal level. It’d be the state government that’s responsible for f’ing things up at the local level.
On an unrelated note, can I suggest continuing the transformation from BanteringBear -> GrizzlyBear -> GrumpyBear? You seem continually grumpy….
You have to love how he is “conveniently” never mentioned.
14% UE. I wonder what the REAL UE is? Has to be close to 20%. Say, isn’t that “depression” era numbers?
“Add in to all of this the fact that Nevada has done a poor job of recognizing the need to transition from a casino based economy to something more sustainable and that leads you to where Nevada finds itself this very moment- nowhere.”
Nevada should stay a casino and tourist based economy. That is the bread and butter, trying to change into something other than casinos and tourism is why Nevada is in its current predicament. I blame the California transplants who try to change every place they migrate into the same wheel and deal nightmare they left behind.
You’re mistaken. Nevada has no choice but to try to diversify. They’ve been in denial about the effects of the tribal casinos, and that’s why they find themselves where they are today. It’s change or die. They’re dying.
Let’s see, capital gains tax jumps from 15% to 20% Jan. 1st. Death tax goes from 0 to 55% Jan. 1st. Cap & Tax and on and on. So 2010’s down draft was just a warm up, for sure. I’d say 1st.-2nd. quarter 2011 will be a real dozy. Buckle up, and assume the crash position!
We’re gonna need a bigger bailout!
I hate the thought of a death tax. More accurately, I hate the thought of taxing money that’s already been taxed. You paid for that money, you should be able to give it to anyone you wish, penalty free. Just like any other possession you pass along.
You can’t give it to somebody tax free when you’re living, either. There’s a $10k limit for “gifts.” I’m not a member of the lucky sperm club, so I could care less about it.
Limit’s now $13,000, but still annoying that you can’t buy your kid a car for college graduation supposedly.
However, the “death tax” can be very important fairness tool. (And yes, I know some of you are going to hate my argument.) Right now there is no exemption amount, instead there is simply no estate tax and very little step-up in basis on existing assets. In 2011 it goes back to a $1,000,000 exemption and the rest of the estate is taxed, but all gets a step-up in basis. In 2009 the exemption was $3,500,000 which is more fair, and I prefer a $5,000,000 exemption which is how much a hard-working, frugal person could save in their lifetime which means a couple could leave their heirs $10,000,000 tax-free with good planning.
Without the death tax the super saver couple would not have to worry about an AB Trust or planning issues, but their children would have to pay income tax on any sold assets after the first 1.1 million. So the $10,000,000 in real estate bought for $200,000 means the kids would be taxed on about 8.7 million dollars worth of gains, but an income tax, not an estate tax.
But the loss of the step-up in basis for “smaller” estates is not the main reason I oppose the removal of the death tax. Money in wealthy families allowed to go unchecked means long-term all the wealth would be concentrated in a few families. $100 invested for 10 years at a 10% return will grow to $259. But that same money invested for 100 years will grow to $1,378.000. Wealthy families don’t need to use their assets so they would never pay ANY taxes on the money and in a few short generations Paris Hilton’s great grandchildren would own yours. Literally.
I believe in very high exemptions. And I believe something has to be done so farm families don’t have to sell land or small family businesses don’t have to break up the business to pay estate taxes. But I do believe in an estate taxes for estates worth far more than a person can possibly earn in a lifetime. I’d apologize to Bill Gates and Warren Buffet for this attitude, but they agree with me.
Warren Buffet and Bill Gates seem to be of the opinion that death txes should be unnecessary if you give it all away. They’re trying to get their fellow wealthy to pledge to give away at least half of their wealth (average giving is about 12% at that level.) They say that they expect those that take the pledge will start giving above that level because they can…
Yissiree, fourth quarter 2010 is going to be the mother of all profit taking. If anyone has any long term gains built up in any long term investment, selling in the fourth quarter and buying back in January makes perfect sense. All of that selling has to have a huge impact on valuation.
And, if your rich uncle is even close to going to that great beyond, perhaps a little hastening is in order. Not suggesting anything unseemly, though.
As far as equities go, “long term” to me means holding it for two months.
You leave me over 1 million and I’ll gladly pay the inheritance tax on it. Or anything for that matter.
Because I too, am not a member of the lucky sperm club. Nobody but the weak, spoiled and greedy would complain about paying tax on free money.
Agreed, but I’m coming from the perspective of the one who died, not the lottery winner. And no, I’ve never inherited, nor do I plan to inherit, any sort of windfall.
“You can’t take it with you.”
Let’s give it all to the Government so they can dole it out to the communist revolutionaries in the unions, community organizations and student activist groups. May as well call it a national suicide tax rather than a death tax.
+1
“General notions are generally wrong.”
~Lady Mary Wortley Montagu
Only in a general sense. Not always.
That’s why the Lip family loves to watch Mythbusters.
This week they proved that that helium filled footballs don’t fly farther that air filled balls and that
Its impossible for a human to catch a bullet with their teeth (like duh).
they also proved that you can…indeed…polish a turd.
You can’t shine sh*t.
Besides flies and FBs, most of the Earth’s inhabitants can’t eat it, either.
“Besides flies and FBs, most of the Earth’s inhabitants can’t eat it, either.”
Dung beetles, cockroaches and ants? And don’t forget my own canine companions who enjoy a nice dig in a litter box or a chance to munch road apples.
(And give me the “What? Who me?” look when I yell at them to get away from said treats or push them away when they come up to breath on me so proud of this new doggy mouthwash!)
And don’t forget my own canine companions who enjoy a nice dig in a litter box…
To a dog, cat food tastes good even after it’s been through the cat.
Thanks, Ol’Bubba. That was one of my dad’s favorite sayings. Brought a smile to my face.
Mythbusters is awesome! The guys are my heroes, and Keri is hawt.
My fave was the episode they did on Jaws - ability to pull barrels underwater, ability to shoot and explode an air tank, etc.
I never get tired of watching that 700 mph rocket sled just -evaporate- an automobile. Must have seen it two hundred times.
Its not impossible to catch a bullet with your teeth. However, it is greatly more difficult if it has been fired from a gun.
That’s a good one!
Citigroup Looking Past Volcker May Seek $3 Billion for Funds
June 18 (Bloomberg) — Citigroup Inc. plans to raise more than $3 billion for its private-equity and hedge funds, even as U.S. lawmakers consider banning banks from owning and investing in so-called alternative funds, people with direct knowledge of the plan said.
Citi Capital Advisors, which oversees about $14 billion, may seek $1.5 billion for private equity this year and $750 million for hedge funds, said the people, who declined to be identified because the plans aren’t public. An additional $1 billion is targeted next year for hedge funds, the people said.
“Citi must be comfortable enough that whatever happens, even in the extreme version, they’ll be able to move ahead with these businesses,” said Steven Kaplan, a professor at the University of Chicago Booth School of Business who studies the private-equity industry. “I don’t think any of these bills envisioned not being able to manage someone else’s money. It’s the bank capital that’s still an open question.”
Sounds like the taxpayer-insured too-big-to-fail Megabank, Inc financial scam operation is destined to continue beyond the end of the financial crisis du juor.
Northwest, Florida
New beach signs proposed:
“WARNING: Federal Law Prohibits Smoking Within One Mile of the Beach. If You Are Smoking While Reading This Warning, You Are Already Dead. However, Since You Were Warned of the Potential Risk, Neither the Federal Government or BP is Legally Liable for Your Death.”
Proposed Florida Tourism Marketing Ad:
“Florida’s Beautiful Beaches, We’re Still Here, We Just Have a Darker Tan.”
Copyright 2010. Florida Board of Tourism. All Rights Reserved.
Seriously, the oil spill is nothing to laugh about, but sometimes you need to laugh to keep from crying. It is sad when you live in Florida, it is 95 degrees outside, and you have to tell your child that we can’t go to the beach but let’s go outside and run through the water sprinkler to cool off.
Years ago, a Florida RE agent used the following sale pitch on me.
“If you wiggly your feet in the sand of our beaches, you’ll never leave”
Yup, it’s kinda like the la brea tar pit thing.
I’ve heard a bunch of Florida tourism commercials on our local cable news channel here in Chicago. They’re claiming their water is as clear as ever. I could understand if they were advertising for the Atlantic coast or something, but they were pushing “northwest Florida”. Um, are you sure your water is still clear around there?
We took our kids to Panama city beach several times while visiting LA (lower Alabama). Probably one of the most pristine sugar sand beaches I have visited. The good news I think is that oil on a sandy beach is relatively easy to isolate and clean, scoop it up and burn it or filter it, as you can get too it fairly easily.
The Louisiana marsh land will be infinitely more difficult.
I was on Perdido Key yesterday. Stepping onto the beach, 150 yards wide sugary white powder beach infront of me. Running along the edge of the water, about ten feet wide, golden sand, for miles. That golden sand was oil infused. The gulf water was brownish in color, no easily identifiable tar. Lots of cleanup sites with heavy equipment, and in some places 30 feet high mountains of sand (that “golden” sand) piled up. Crews shoveling listlessly some material (that sand) from the edge of the water into black plastic bags. Huge piles of bags in some places.
So how does one clean that oil “easily” from tens of miles of beach? This is not in tar form. Take the sand grain by tiny grain and wash it? To which depth did it sink in?
Do I want to eat seafood that swam in this? Oh no.
Does the sand / water smell? Yes, in the immediate vicinity.
The mood was somber, a deep “I’ve got the Blues” mood.
Thanks for the vivid description! Wow, what a bummer. And to think - the oil is still gushing out! Or is it? I haven’t seen any reports on the collection efforts in a few days.
Sorta like Houston
“The length and severity of depressions depend partly on the magnitude of the ‘real’ maladjustments, which developed during the preceding boom and partly on the aggravating monetary and credit conditions.”
Gotfried Haberler, Prosperity and Depression, 1937
What about “fake” fixes effect on prolonging duration of the decline?
“Real maladjustments”, such as evolving into a consumer based economy while basing production overseas?
Shh!
You’ll upset the Consumer. They will start to save money, pay cash, and forgo $400 trips to the Mall to buy all of the junk that China sends us.
Oh wait! Now you’ve done it! They heard you. The Cargo Cult has crashed.
Thanks, combo! Thanks a lot.
Roidy
Or using myriad government subsidies to direct an unsustainably large share of employment and production on building and trading residential and commercial real estate?
Nah, couldn’t be — real estate always goes up.
Banks are licking their chops over oil-spill hush money:
http://www.ajc.com/business/spill-could-benefit-ga-551620.html
its all about the banks. always.
Did anyone see Leno last night? He devoted a part of his monologue to BP, which he kept calling “BS”. Called Tony Hayward a “weasel” and said that as Hayward “testified” (Leno wondered why they call it testifying when it should be called “testilying”) in front of Congress he was sweating like a Brit at the dentist. And The audience went wild.
Expect a lot of yelps from across the pond on how mean and rotten the US is for objecting to one of their multi-nationals turning the Gulf into asphalt.
Leno monologue was pretty funny.
Here is the link:
http://www.nbc.com/the-tonight-show/video/monologue-617/1234749/
It’s much better when a foreign corporation is responsible for an environmental disaster than a domestic one (e.g. Exxon). It makes it far easier for politicians to extract environmental cleanup costs and damage compensation out of the perpetrator when they (BP) and their investors are mainly across the pond.
I’d be curious to know the nationality of the guy who disregarded the recommendations of the Transocean and Halliburton reps.
And if he was even qualified to make the kind of decisions he was making.
Someone touched on it a day or two ago. There are all kinds of procedures done in all kinds of industries that people do automatically, because they had learned that problems happen when you skip that step. Call it conventional wisdom, or “tribal knowledge”.
Over time, when everybody does the preventative steps automatically, the original problem becomes a very rare event. Give it more time, and pretty soon the old guys retire, and all the new guys know is “I don’t know why we do it, but this is the way we’ve always done it.”
This is when some manager/MBA steps in, and eliminates the procedure as a cost saving measure, because “we’re spending too much money on a procedure to prevent something that rarely happens.”
Eventually, something blows up in someone’s face. This is the point when the press releases get sent out, saying something like “nobody could see it coming”.
X-GS,
You got it. I ‘know’ it’s a pain to put on your hearing/eye protection, get clearance from the Tower ( wait til’ they get down refueling etc. ) just to re-set a breaker!
But there’s reasons we ‘do’ things they ‘way’ we do? What’s been my experience ( when you’re in a particularly ‘rebel’ mood ) is simply take yourself -out- of the equation!
No… I do ‘not’ feel like inventorying every tool kit in the shop! Pesonally I think it sucks and the off-going shift just DID it! Hey, take a deep breath.., go work on Forms in Plans & Sched. get a cup of coffee and another deep breath. But fer’ God’s sake ( don’t assume you know better! )
What would happen to Social Security & Medicare if the concept of legalizing 12 millions undocumented workers is approved into law?
Medicaid is the current program for low/no income poor.
What would happen? The insolvency of those two programs would simply be earlier than later.
Who are these 12 million “undocumented workers?”
Now 12 million illegal aliens, that’s a problem!
It Must Be Nice to Be a Public Employee
————————–
Highest-Paid State Pensioner Rakes In $261,037 A Year
The Empire Center has out a new database of the pensions of 342,543 New York State retirees on SeeThroughNY.net, and I gotta say it looks to me like the party’s at George M. Philip’s house.
Philip, former executive director of the NYS Teachers’ Retirement System, tops the Empire Center’s list of pensioners, pulling in $261,037 per year.
“An Empire Center analysis of the newly posted data found that 1,378 NYSLRS retirees have pensions of $100,000 or more. Retired police and firefighters accounted for two-thirds of these six-figure allowances. While PFRS members are only 8.5% of all pensioners, they receive 16.6% of total pension payments.
“As of April 13, maximum annual benefits for retired NYSLRS members totaled nearly $7.2 billion.”
Gee, the former director of the pension program gets the biggest pension, that doesn’t imply any gaming of the system does it now?
No since he’s public sector employee, he’s not gaming the system, he’s not greedy either.
How dare you?
Did you just say that?
You must be a Republican! How dare you coming to this forum?
“that doesn’t imply any gaming of the system does it now?” LOL
And let me guess ( the system is now broke! ) You know, if there’s anyone that should be hacked off about that situation ( shouldn’t it be the remaining pub. employees within that system? )
Papers love to run w/ those headlines ( sure to generate lots of comments from readers ) but I’ve checked into it. The ‘average’ employee hasn’t fared nearly so plush? In fact I recall the avg. CalPers retiree ( for instance ) gets about a TENTH of that!
Until there’s dissention ‘within’ the ranks, what can possibly change? Of course w/ that kind ret. salary they can hire a PR firm to deal w/ the fallout.
“The ‘average’ employee hasn’t fared nearly so plush? In fact I recall the avg. CalPers retiree ( for instance ) gets about a TENTH of that!”
Yeah, it’s the same with teachers too. It really ticks me off that when administrators negociate their salaries there isn’t a peep about it in the press but when teachers are it’s all over the news. The superintendent of San Diego City Schools makes nearly twice the salary they did 10 years ago. Spending per student in the district increased 34% between 2002 and 2008 with the increase in spending due to non teaching salaries and benefits, in other words more administrators. And bigger salaries for them too.
Wickedheart,
As always, the yardstick I use ( and Congressionally Approved yardstick I might add ) is the military. A HS grad Master Sgt. w/ 20 years will bring in about $1,852 a mo. in ret.
A college grad 0-6 ( Navy Capt. ) w/ 20 ‘in’ will get roughly -twice- that at $3,880 a mo. ‘Twice’ is one thing, but TEN TIMES!? I’ve played w/ the Ret. Calculator ( a guy can dream can’t he? ) and an 0-10 ( which I don’t even know what rank that is? ) w/ FOURTY FIVE yrs. of service would get around $206,000 annually.
( If in fact such a person ‘did’ exist )* As far as most of us can tell, these “superintendents” become their own org. ‘within’ an org. and then the sky’s the limit!?
I think we could fire all the superintendents, and not even notice a difference. They are the ultimate leaches.
“and not even notice a difference”
Yeah! ( too funny ) Least of all the kids? Does your kid even ‘know’ who the super ‘is’?
DinOr O-10 is a four star general. The army has a maximum of ~12 of ‘em. They normally retire before the 40 year mark. You DO however have to be careful comparing military pay. Service members get housing as well as pay, but the value of this is HIGHLY variable, from a bunk in a tent, or a timeshare on a tiny submarine bunk, to family housing that resembles normal suburban housing. The corners of the pay tables are largely theoretical: eg the only way to be a private with more than 20 years in is to be serving a prison sentance at Leavenworth.
Jim A,
Good points I hadn’t taken into consideration! I may have further skewed the data in that just b/c “I” am eligible under the ‘old system’, even most senior officers are under the newer ‘High 3′ sys.
Either way, your mil. ret. is computed from “base pay” so even though you may have earned any number of “special pays” while on active duty, that all goes bye’ bye’ when doing your final calculations. AFAIK, only a handful of sr. O’s get to ‘remain’ in base housing -after- ret?
And I’m not by any means implying there’s a ‘perfect’ parallel.., in theory, one ‘could’ retire as early as 37! My point was that pub. sch. emps. should be absolutely up in arms over these huge disparities! Personally, I’ve seen what mil. officers GO thru and they can HAVE the diff!
“the only way to be a private with more than 20 years in is to be serving a prison sentance at Leavenworth”
Ain’t nothing private about it!
“It Must Be Nice to Be a Public Employee….”
You should join them and it can be nice for you too.
If we all join them, where does the money come from? The magic money fairy?
Question of the day. Will PB submit to the realization that it’s a good time to own gold.
Gold is just the latest (recycled) bubble. Buy gold now and get priced in forever!
I didn’t mention anything about buying gold
Gold is being pitched by late night salesman on porno channels, something smells fishy here.
Keep your money and stay away from gold.
It’s that retrun of principal idea.
Question is what were you doing watching gold ad’s at that hour of the night?
I mentioned a couple of days ago how gold has already enjoyed a massive runup versus the dollar over the past decade: A price increase from $300/oz to $1250/oz can be conversely viewed, with gold as the numeraire, as a devaluation in the gold price of dollars from 0.0033 oz/$1 down to 0.0008 oz/$1, or a price decline of 0.0025 oz/$1 in the gold price of dollars. In percentage terms, this is a price reduction of dollars (in gold terms) on the order of 100*(0.0025/0.0033) = 76 percent.
If you think further declines in the gold price of dollars are likely, then go for it! I personally have my doubts, especially given that the current fundamental force in the market for gold, dollars and Treasurys is the animal spirit known as panic, which tends to drive investors out of dollars and into gold and Treasurys. Once the panic subsides, I expect gold and Treasurys to decline relative to dollars.
No way would I buy gold right now. My question is, should I sell? I have about 2.4oz in nice, old coins. I don’t need the cash. In fact, I’m a little cash heavy right now. I do expect the gold price to drop at some point, and I will probably buy more then. But I think I will hold on to the coins for now. They might come in handy in a real Mad Max scenario. Also, they look pretty.
“My question is, should I sell?”
If I owned any gold (I don’t), I would not sell it all now, but I would diversify by taking some chips (e.g. coins) off the table.
We were among the weak hands who sold gold to raise money for living expenses back when it was down around $300/oz. In retrospect, we should have followed Greenspan’s advice and cashed out some of our home equity wealth gains, and left our gold coins in the safe deposit box. At the moment, gold is at the opposite end of the range relative to alternative investments relative to where it was ten years ago.
I just have a gut feeling we’ll be seeing $1600 spot for gold in the winter or early spring of 2011. At that time I will take some chips off the table but not get out completely.
“I just have a gut feeling we’ll be seeing $1600 spot for gold in the winter or early spring of 2011.”
That sounds like as reasonable a guess as any; seems like it largely depends on (1) panic-driven flight-to-quality demand for gold; (2) central bank or IMF manipulation of the price, as those in control of reserve currencies can always buy or sell no matter what the spot price happens to be.
Let’s see what happens to gold once Israel bombs Iran.
If you think further declines in the gold price of dollars are likely, then go for it! I personally have my doubts, especially given that the current fundamental force in the market for gold, dollars and Treasurys is the animal spirit known as panic, which tends to drive investors out of dollars and into gold and Treasurys.
No, the fundamental force in the market for gold is that it is money that no one can print.
Hope that helps.
The weird thing is Gold is not nearly as useful as any of the other metals I buy at work. Steel, Copper, Brass, Bronze, Aluminum, and Stainless Steel all cost a fraction of what Gold costs, yet they’re incredibly useful. Copper, Nickel, Aluminum, and some others have come down dramatically in price over the last month of so. But Gold continues to defy gravity. Gold is obviously special for some reason. I think animal spirits is a good description.
Gold is obviously special for some reason
Yes…it’s price is not a function of industry, like all those metals you mention. Gold isn’t used in cars, iphones, etc (at least not in large amounts). That is why the price of other metals has fallen - demand for those material goods is down.
“The weird thing is Gold is not nearly as useful as any of the other metals I buy at work”
That may be true, but last time I checked, the Getty Museum wasn’t displaying any goblets made out of aluminum.
Gold is just the latest (recycled) bubble. Buy gold now and get priced in forever!
And how many people that you know outside of this blog are buying the precious?
If the average person isn’t buying, can it really be a bubble?
If the average person isn’t buying, can it really be a bubble?
The average person not only is not buying, but has approximately 0% of his portfolio in gold. Thus, the only possible change in public attitude is towards buying gold, not away from it.
Tell us again how that is a bubble, PB?
Would O’Toole consider it to be a conspiracy if high-level government officials coordinated measures to reduce foreclosures and otherwise keep homes that should be going on to the market, off the market? One need not “believe in conspiracies” to take notice of something which is already occurring.
Foreclosures drop dramatically in San Diego County
By Roger Showley, UNION-TRIBUNE STAFF WRITER
Thursday, June 17, 2010 at 3:18 p.m.
Foreclosure activity might have dropped off last month as lenders modify some mortgages or authorize more short sales.
Foreclosure filings and notices of default fell dramatically last month in San Diego County, but analysts did not see this as evidence of less distress in the housing market.
Default notices totaled 1,623, down 22.9 percent from April and 46.9 percent from a year ago, MDA DataQuick reported Thursday. Foreclosures numbered 1,021, down 15.8 percent from April, but up 3.7 percent year-over-year, because of a moratorium on foreclosures in place at the time.
Analysts said the declines might represent further signs that lenders are shifting from taking legal action against homeowners who can’t pay their mortgages.
“We’ve been talking for a year now how a growing amount of distress will be handled outside the formal foreclosure process,” said DataQuick analyst Andrew LePage, “mainly through short sales (homes sold for less than the mortgage balance) and to some extent loan modifications and other methods.”
He said the short-term trend has been uneven, sometimes up, sometimes down month to month.
“If you look at quarters, the general trend has been less going into the formal foreclosure process,” LePage said. “We know short-sales are up significantly, as are loan modifications, and some would argue there have not been nearly enough loan modifications, but there are more than there were a couple years back.”
Sean O’Toole, founder and CEO of ForeclosureRadar.com in Discovery Bay, said lenders seem to be timing their actions to coincide with changing economic conditions. Earlier this year, he noted, foreclosures and defaults increased as the stock market improved and home sales and prices stabilized. But in recent weeks, as those markets have faltered, distress actions have fallen back.
“I don’t believe in conspiracies, but at some point it becomes a sensible strategy to manage the books,” O’Toole said.
…
More in the article from O’Toole:
“We’ve got an awful lot in the pipeline and at this pace, it’s going to take years to work through this,” he said. “It’s a question of do you rip off the Band-Aid fast and have a sharp sting or rip it off really, really slowly.”
The good news is that various reports show delinquencies rising at a slower pace — an indication that distress is easing and various housing submarkets are stabilizing. The Mortgage Bankers Association put California’s first-quarter delinquencies at 10.9 percent of all homes with mortgages last month, down from 11.3 percent in the fourth quarter.
But that still leaves some 1 million homeowners in California who are not making their payments, O’Toole said.
“If you were to foreclose on those folks en masse, it would certainly create panic and fear,” he said.
What will become of all these FBs over the next several years? Will banks eventually kick those who lived rent free for many months or even years? If these FBs are allowed to stay in their homes, will they end up so deep in mortgage debt that they will have no hope of ever repaying it?
I had conversations with two different people in my immediate circle over the past week about their friends or relatives who walked away from their underwater California mortgages (investment properties in both cases). And then there are all these FBs living rent-free in homes they own on paper. Even if they eventually have to leave, there is a good chance that they will come out ahead of dupes who tried to play by the rules by either renting or buying a home within their ability to make good on the mortgage contract.
A system which rewards cheaters and punishes those who play by the rules is not tenable. Small wonder the U.S. housing market collapsed!
My neighbor paid $380,000 in 1997 for the home behind me in Long Beach, CA and refinanced the property to $1,400,000. They stopped making payments in February 2009 and are still in the house. A NOD was filled in Aug 2009 .
they have the Porche, Range Rover and all the toys.
Where else could you get $1,000,000 in just 2 days.
The U.S. housing situation is a real-life version of the old Roadrunner cartoon, but with Wile E. Coyote spending a “longer than expected” period of time spinning his hind legs in thin air off the edge of the cliff.
How the F do you re-fi 4x value of property in 10 years? That sounds criminal even by bubble standards!
This is exactly what we need… more government and FCC BS regulations
FCC seeks more Internet regulation
The Federal Communications Commission on Thursday began a push for greater regulation of the Internet.
The agency’s commissioners voted 3-2 to open for public comment three proposals for how to regulate broadband transmissions and connections. It’s the first step in a process that could result in new rules by fall.
Brett
Care to provide a few details supporting your anger. Or are you one that hates all regulation. Like say regulation of deep see oil well drilling?
No, we love regulation, especially when it’s directed at other people and makes us feel powerful and wise.
I propose a new regulation: that measton is not allowed to travel more than 5 feet from his house without LVG’s permission. It’s for your own safety.
I am against all regulation, so shoot me.
FCC seeks more Internet regulation
It’s my understanding that ensuring net-neutrality (if that’s the goal) can be done simply by improving competition.
Many places in the US are served by only one or two utilities. Comcast or Verizon wouldn’t get very far with attempts to break net-neutrality if there were four more competitors in each market.
Unfortunately, due to physical limitations (only so many lines will fit on a pole or in a trench) the best way to foster competition in the market, is by “line-sharing”. This is where the one or two providers are forced to offer their lines at cost to competitors.
The FCC dropped it’s line-sharing rules years ago. I believe it’s time to bring them back.
I’d prefer to regulate internet providers like Utilities.
They can only make X% each year. If they make more then rates are reduced on users. If new capacity is needed or the company looses money then rates go up.
Same with Cable. Cable should service the lines and that’s it. Anyone who wants to provide content has to bid for a channel in an open market forum. No one entity can control more than 10% of channels.
Users pay an access fee and then purchase content.
This creates a free market for content.
The current system, which the interent providers would love to emulate strangles content and free markets.
I work in and on the Internet. I was one of the early adopters. (1995) I owned several businesses during the boom days.
Let me tell you, this is a GOOD thing they doing.
Are they all scum?
Rubio faces foreclosure on Tally home; his campaign says it’s resolved
By Michael C. Bender Palm Beach Post Staff Writer
Posted: 7:44 p.m. Thursday, June 17, 2010
TALLAHASSEE — Republican U.S. Senate candidate Marco Rubio is facing foreclosure on a Tallahassee house after missing five months of mortgage payments, according to a lawsuit filed in Leon County Circuit Court.
But Rubio’s campaign spokesman said Rubio and David Rivera, a U.S. House candidate from Miami who co-owns the home with Rubio, have paid $9,200 owed to Deutsche Bank and the foreclosure has been withdrawn.
No documents in the court records on Thursday indicated that the foreclosure had been shelved. Phone calls to Rivera and a bank attorney were not returned.
“It’s been resolved,” Rubio spokesman Alex Burgos said.
Rubio’s personal spending has been an issue in his high-profile U.S. Senate campaign after records showed he charged $16,000 in personal expenses to a Republican Party of Florida credit card.
I’ve heard of members of congress sharing houses and apartments in Washington, D.C. while they’re in office, but this is the first I have ever heard of a senator and potential representative going in on a house together outside of D.C. and their home state. Strange indeed.
“outside of DC and their home state”
What state is Tallahassee in on your world?
Doghouse Riley, FSU ‘78
(smaking side of head)
Duh! I read it as TN. But in my defense, that was before my caffeine boost this AM.
If this CA tax credit goes away without anything to replace it, things could get very interesting in the housing market for the next 2 1/2 years (through 2012), particularly given the schedule for prime, alt-A and other above-subprime ARM resets. Given persistently high unemployment plus the effort to use the tax credits and other incentives to beat every last qualified prospective buyer into purchasing a home, I can’t imagine where new demand could originate.
From the description in the article, there is quite a bit of manic desperation among those trying to qualify for the application. Nothing like stirring up new waves of hair-of-the-dog mania to cure the hangover from the greatest real estate bubble in the history of Planet Earth!
Homebuyer tax credit going fast
By Roger Showley, UNION-TRIBUNE STAFF WRITER
Thursday, June 17, 2010 at 4:39 p.m.
Looking to snag that California first-time homebuyer tax credit? Better get cracking.
As of Thursday, 15,220 applicants had applied for $78.1 million in credits — nearly 80 percent of the $100 million available — after just six weeks, the Franchise Tax Board said. Last year, a similar tax-credit program also filled up quickly.
Spokeswoman Brenda Voet said at the current rate of 3,000 applicants per week, the full $100 million might be exhausted by July 1.
But Voet said the agency will accept at least 28,000 applications to account for duplicates and ineligible requests. Once credits are approved, homeowners will be guaranteed the rebates, even if the $100 million ceiling is slightly exceeded.
“Some people have panicked and sent in an application more than once, wanting to ensure it is received,” she said. “other people may have not completed the form as accurately as they wanted to, so we’ve had quite a few duplications.”
…
Applications for First-Time Buyer Credit received as of 06/15/10
As of: Estimated appls Requested credit
5/04/10 430 $2,351,000
05/11/10 2,470 $13,283,000
05/18/10 4,830 $25,473,000
05/25/10 7,330 $38,357,000
06/01/10 9,760 $50,948,000
06/08/10 12,740 $65,787,000
06/15/10 15,220 $78,108,000
So, just having your Ca Income Tax Liability wiped out for 3 years, caused a panic to buy? (Remember, non-refundable=no check for difference. To most families it amounts to less than $1,000 over 3 years.) I knew people were sheeples, but wow, they are stupid.
Seems like the government (both CA state and federa) is all about trying to entice stoopid people into buying homes…rent now, or get priced in forever!
“Some people have panicked and sent in an application more than once”
And some people probably sent in an application more than once in the hopes that they might receive more than one credit.
Arizona’s new immigration law goes into effect in July 29th…But this law goes into effect June 30th for EVERYONE working in Arizona as of June 30th:
State of Arizona Department of Revenue:
Senate Bill 1185 Employer Information
Mandatory Changes to Arizona Withholding
Revised for wages paid after June 30, 2010.
Senate Bill 1185 (Laws 2009, 1st Reg. Session, Chapter 2) amended the amounts required to be withheld for Arizona withholding purposes. Through June 30, 2010, the amount required to be withheld was a percentage of federal withholding. For amounts withheld on or after July 1, 2010, the amount required to be withheld will no longer be a percentage of federal withholding. Amounts withheld on or after July 1, 2010, must be based on a table prescribed by the department.
The department has prescribed a withholding table based on a percentage of gross taxable wages. “Gross taxable wages” is the amount that meets the federal definition of “wages” contained in IRC § 3401 and that will be included in box 1 of the employee’s federal Form W-2 at the end of the calendar year (i.e. gross wages net of pretax deductions, such as the employee’s portion of health insurance premiums).
Employees subject to Arizona income tax withholding must fill out a new form that will go into effect on July 1, 2010, and give the completed form to their employer.
Resident employees working in Arizona and nonresident employees subject to Arizona income tax withholding should complete a revised Arizona Form A-4 and give the completed form to their employer.
Resident employees working outside Arizona and already subject to Arizona withholding, should complete a revised Arizona Form A-4V and give the completed form to their employer.
People receiving annuity or pension payments and already subject to Arizona withholding, should complete a revised Arizona Form A-4P and send the completed form to the payor of the annuity or pension.
To ease the transition, the department has included examples on each form to assist employees in making a new election. To assist with the selection of the proper percentage, the department is also providing interactive forms that will “do the math” for the employee.
You may find all of the revised forms on the Withholding Forms page.
Excellent reader comment about today’s NYT Jack Krugman article concerning deficit hawks in Germany and the U.S.
“We are headed for a huge disaster. We just don’t seem to understand that the cure for the recession is going to take a long-term commitment to government stimulation at all levels: local, state and federal. Critics of this program are simple tools of the rich and well-connected in Washington, who are using cut-backs in government as an excuse to trim government benefits and programs for the poor, the working class and the middle class. This is not about some theoretical fear of deficits or higher interest rates - simply put, it’s an excuse to wage war on everyone who’s not rich or paying for a vote in Congress. This has very little to do with actual economics and everything to do with good old-fashioned class warfare. What is really sad is that working people and wage-earners of ordinary incomes are being recruited to protest government spending. These people don’t understand the big picture enough to realize they are blowing themselves up economically. They are truly economic suicide-bombers, and they are doing a lot of damage to the rest of us. We are never going to get out of this mess until ordinary people stop dreaming and voting for the rich.”
But if Krugman is correct, the $1-2 trillion in stimulus already spent should have created a lot of jobs. I don’t see where he shows any proof of that. What did that money do?
Tell us what things would have looked like without any stimulus. There is no denying that short term stimulus improved things. You can argue about the long term, but right now we have no inflation and high unemployment despite the debt. I’m all for borrowing to create jobs and improve infrastructure. I’m do not support borrowing to support war, tax breaks for the elite, welfare, long term unemployment.
My thesis holds that everything the FED does is for the elite and the banks, thus as soon as the elite have been bailed out of their bad positions and are sitting on a mountain of cash the FED will let things crash, unemployment be damned.
We’d be a trillion dollars less in debt without the stimulus, that’s how things would look. Show me the jobs created. At $100,000 per job created, a trillion would create 10 MILLION jobs. Where are they?
1. Again how much higher would unemployment be without a stimulus??
2. To build a highway which creates jobs you need to pay for more than labor. It’s not simply 1 trillion devided by 100,000.
3. You would not be a trillion dollars less in debt, why because if the gov spends a trillion dollars building infrastructure that creates jobs, and those employed people pay taxes, and keep making their house payments, and buy stuff from other people who pay taxes and those people need less in gov services. A trillion spent creates much more than a trillion increase in GDP and drives up tax returns and cuts down on expendatures in other areas.
So I don’t get it. Why are we stopping at going a trillion dollars in debt? We should go 10, 20 or even 30 trillion in debt overnight and start building roads and houses and bridges and buildings and everything - a chicken in every pot! GDP will go up way more than the debt, everybody will be working and buying stuff from other people and they’ll all be paying taxes.
By the way, you may be interested in an Orbo from Steorn since you appear to believe in perpetual motion. They no doubt have a great deal for you.
It called an absorption rate.
Most people often mistake “if x amount is good, then more must be better!” often with disastrous and deadly results.
Wow. So if I borrow a million dollars, I’m one million dollars richer. I’ve just created one million, or maybe more, in GDP. Tell you what, you give me a million, I’ll pay you back 30% in taxes, we’ll call it even.
This is like the twilight zone.
Two words: Bond vigilantes.
http://www.bloomberg.com/apps/news?pid=20601087&sid=awUMmb1Vtaes
I don’t understand what’s excellent about this comment. It seems to represent either the class of people who don’t understand mathematics or the class of people that believe in candy-crapping unicorns - or both. Even primitive man knew that if it cost 100 calories of energy to gather 50 calories worth of food it was a bad bargain. So help me out here:
What’s great about this comment?
If the government takes $40K from person A and pays person B $40K to work a government job, has the government’s finances improved or worsened?
If the government prints $40K out of thin air and pays person B $40K to work a government job, has the government’s finances improved or worsened?
How long is “long-term” commitment?
Aren’t a lot of FDR’s programs still in place?
If you take the idea of government stimulation ad nauseum (with respect to how much/how long) how does it work out?
What does the fact that in 1939 a survey of random people in a gallop poll responded more than 2 to 1 that the FDR’s policies were delaying recovery?
Does the fact that the business community felt even more so that the policies were causing more harm than good mean anything?
What do you make of the Treasury Secretary’s comment in his diary at the time:
?
If I think you make too much money, am I entitled to take some of it from you?
How much is too much money?
How many trillions of dollars does the deficit need to be before we’ve solved the problem?
Even primitive man knew that if it cost 100 calories of energy to gather 50 calories worth of food it was a bad bargain.
Primitive man also didn’t quite get that if he spent 100 calories to plant 50 calories worth of seed, he would get 1000 calories out of it over time. It’s a very good bargain if you ask me.
But *shhh* don’t tell the conservatives that. Alllll they do is shout “tax cuts good, develop infrastructure bad” like those idiot sheep in Animal Farm.
shhh - don’t tell Oxide that he didn’t answer any of the questions and instead started talking about conservatives, tax cuts and infrastructure development. Nice misdirection; I totally almost fell for it.
I do like your argument about seeds however. It does seem like each government job sprouts into two or three more government jobs. That appears to be spot on. In what way is this good? Should everybody work for the government? Can the government just print as much money as necessary to pay us all?
I think Animal Farm is more about what happens in the type of world you apparently want. Interesting you mention it.
I don’t believe that just repaving all the potholed roads is going to add any jobs in the long run. Is any other kind of infrastructure development being done? Not that I can see.
I forgot another question:
If you are starving to death, how long can you keep yourself alive by eating your arms and legs?
How long can you continue to heat the room by burning the legs of the chair on which you used to sit?
How long can you dine on geese that lay golden eggs before you run out of both geese and gold, consequently starving to death?
If you cut your head off and stand on it, will you be taller?
I havet another question:
If you are starving to death, how long can you keep yourself from eating anyone with a layer of fat.
Take away all supports in an environment of high unemployment and I can guarantee you that the rule of law goes out the window. You will have massive political instability in this well armed nation.
massive political instability
Ah yes, the usual bugaboos. Instability, chaos, anarchy, unless the government continues to expand voraciously and exponentially. No one will be able to eat, sleep, or blog without help from the government. Things could get awful scary, so let’s give the huge government set everything it wants. It works in North Korea, right?
Bugaboo? Perhaps you slept through history class, Miss. Antoinette?
Funny you should bring up the French revolution. As I recall, the French government spent lavish amounts of money on frivolous things. That doesn’t sound anything like our present-day government, does it?
I can guarantee you that the rule of law goes out the window
When you get right down to it, you can’t guarantee me of anything and neither can the government. As far as I know, nobody born yet came out with some sort of guarantee.
Yes but you can significantly reduce the chances of it. Tell us LVG, if you lost your employment and people stole everything from your house or you just ran out of food and your family was starving in front of your eyes, what would you do???
I don’t wan’t a large poor starving unemployed mass of people living anywhere near me or family or friends. The world can get ugly pretty quickly even here in the US.
Oh I can guarantee you a lot of things. Did you sleep through science class?
LOL. No, I sure didn’t. Pick one of the things you can guarantee me of and let me know what it is. Be sure you don’t die before you are able to tell me, and be sure I log in later to see your response, too. I’d hate for the guarantee to be broken in some manner.
Gravity.
Funny, I don’t feel any older.
Death.
Wow, what was that? Another whole minute. Okay, maybe I feel just a little bit older now.
War.
Another minute. Maybe you meant I’ll get old making the very, very long list.
2nd Law of Thermodynamics.
I’m I getting warm yet? Maybe it’s just entropy I feel.
There are 3 sides to a triangle.
I hope I’m not being too pointed.
The Earth is misnamed as it is 3 quarters water.
Have I dampened your ignorance yet?
Pure gubment worshipping by Eco and mead ton.
“…What is really sad is that working people and wage-earners of ordinary incomes are being recruited to protest government spending.”
Now, now…they are full of “TrueAnger™”
Listen, just extend Shrub’s 2001 tax breaks for the wealthy, while continuing the 8 year WAR to promote the Cheney-Shrub initiated policy of: Shazam-Islam-is-now-democracy!…problem solved.
Isn’t that their/our money anyway?
We just don’t seem to understand that the cure for the recession is going to take a long-term commitment to government stimulation at all levels: local, state and federal.
Yes, we must be retarded not to understand that. After all, wild printing and spending has been so successful in the past. Let’s see, there’s … and don’t forget …
?
Do you mean Jack Klugman or Paul Krugman?
Business as usual at the Fed post-financial-crisis (though perhaps “they” should wait until the crisis actually ends before drawing any conclusions)…
* BUSINESS
* JUNE 18, 2010
Fed Emerging Intact From Challenge to Its Power
By JON HILSENRATH
As the House and Senate move to finalize regulatory-overhaul legislation, the Federal Reserve has emerged as likely to retain most of the power and independence Fed officials have feared they might lose.
On Thursday, senators on a panel meant to reconcile competing versions of the bill voted 10-2 to kill a provision that would have made the president of the Federal Reserve Bank of New York a White House appointment. The position is now an internal Fed appointee. Fed officials said the change would have politicized the institution.
Rep. Barney Frank (D., Mass.) participated in a House-Senate panel Thursday debating the Fed’s role.
Lawmakers’ efforts to remake the Fed comes amid popular angst directed toward the central bank for its failure to head off the financial crisis and for the dramatic corporate rescues it engineered.
A rethink of the Fed has been part of the broader financial overhaul legislation expected to be completed in Congress this month. The House-Senate conference also has resisted a House attempt—popular in Congress but adamantly opposed by the Fed—to subject the Fed’s interest-rate decisions to regular audits by the Government Accountability Office, which Congress oversees.
In a tentative compromise, the GAO would gain limited authority to scrutinize the Fed’s crisis decisions and the Fed would disclose, with a two-year lag, details of loans it makes to banks through its discount window. The Fed now does not disclose discount window loans.
Rep. Ron Paul (R., Texas), who championed wider audits, described the compromise that has been worked out as a partial victory for Fed critics like himself. “We will hopefully get more information than we were able to get before,” he said in a telephone interview. But “the fact that the Fed is allowing this to get through means there could be some roadblocks for us … there is no way the Fed is going to allow us to know exactly what they do.”
…
Escape Artist
The central bank avoided the most severe proposed changes.
NEW PROVISIONS FOR THE FED:
* Congressional audits of crisis decisions
* Lagged disclosure of discount window loans to banks
* Commercial banks barred from helping to pick Fed bank presidents
WHAT THE FED AVOIDED:
* Congressional audits of monetary policy decisions
* Presidential nomination of New York Fed presidents
* Loss of role as supervisor of small banks
For the record, a number of posters here, including me, already spotted the financial panic as early as the time of the so-called Credit Crunch of August 2007. By that dating, the financial crisis is almost three years old already and still going strong behind the MSM “green shoots of recovery” headlines.
June 18, 2010, 12:06 a.m. EDT
House-Senate panel disagree over solution to ‘too big to fail’
House and Senate lawmakers vote to limit capital costs for community banks
By Ronald D. Orol , MarketWatch
WASHINGTON (MarketWatch) — House and Senate lawmakers on a committee to work out differences in sweeping financial-regulatory bills on Thursday agreed to disagree on their approaches to managing banks that are “too big to fail,” and on how to ensure such failures don’t wreak havoc on the markets.
The House and the Senate approved sweeping bank reform bills, written in response to the financial panic of 2008. They mark the most significant expansion of the regulations governing U.S. financial firms since the Great Depression.
…
Sir Greenisspent is now a Knighted Prognosticator!
His speaking about complacency… has ol’ Hwy in a real “conundrum!”
Says Greenspan: “This is regrettable, because it is fostering a sense of complacency that can have dire consequences.”
Yet, he argues, not all market signals are so benign:
Greenspan: We’re In Danger Of Being The Next Greece!
Provided by Business Insider, June 18, 2010:
Former Fed Chair Alan Greenspan has an op-ed in the WSJ arguing that the runaway Federal Deficit threatens to turn the US into the next Greece.
From asset market wealth effect cheerleader to Cassandra — he has sure come a long way in a few years’ time!
Isn’t Greenspan they guy who headed the commission that hiked regressive payroll taxes to “save Social Security” following the cut in progressive income taxes under President Reagan.
If you are 50ish, middle-class and wondering why you feel so poor after a life time of hard work, look no further than the Greenspan FICA tax hike of the early-1980s…
That lifetime is far from over, because they also hiked the retirement age for those of that generation as well.
And now you’ll have another mixed of tax increases and benefit cuts to “save Social Security.”
Our generation gets to work longer and enjoy less Social Security benefit payments in order to help The Greatest Generation pay for their Winnebagos. Sounds fair to me…
Our generation gets to work longer and enjoy less Social Security benefit payments in order to help The Greatest Generation pay for their Winnebagos. Sounds fair to me…
If there’s any consolation, the Greatest Generation is getting too old to drive a Winnie. Not that they won’t try, of course, but expect to see fewer of them on the road.
And, speaking as a bicyclist, I’m grateful. Elderly RV drivers scare me.
The “full retirement age” was increased from 65 for those born in 1937 and earlier to 67 for those born in 1960 and after. Big whoop.
SS in its present form can be “saved” with any number of possible solutions, including:
Raising the full retirement age well above 67 (maybe 75?) to keep up with the increasing lifespan. Also raising the minimum SS retirement well above 62 (maybe 68?). Average lifespan was about 65 when SS was started, so that’s the retirement age that was chosen.
Uncapping the limit on wages subject to SS tax.
Increasing the SS withholding from the present 12.4% to whatever it takes to achieve long-term solvency.
Greatly increasing the percent of retirees’ SS payments that are subject to the income tax.
OR, abandoning the current vision for this income transfer program and turning SS into a needs-based operation. Phase in the change over perhaps a 20- or even 30-year time frame.
As mentioned before, I once saw a bumper sticker on a large motor home that said, “Your Social Security Taxes At Work.”
Assuming you can find a place to work until you are 66 (me) or 70 (Mrs. Spokaneman).
Not a huge job market for people in thier 60’s. I harbor no delusions that if I lose my job, I will be able to replace it in a any reasonable period of time. I’ve planned accordingly, but I’m assuming many have not.
Many CAN’T.
Don’t tell me the WSJ editors have still not read the Fed’s memo: LOW INTEREST RATES DO NOT CAUSE ASSET PRICE BUBBLES.
* JUNE 18, 2010, 6:10 A.M. ET
SNB Rate Freeze Raises Specter of Swiss Housing-Market Bubble
By Neil MacLucas Of DOW JONES NEWSWIRES
ZURICH (Dow Jones)–While Switzerland’s central bank Thursday painted an encouraging picture of the country’s economy it also raised a warning about the danger that a housing market bubble is developing.
The Swiss National Bank Thursday froze its interest rates near zero as expected by most analysts, but said historically low rates mean Switzerland’s banks and mortgage institutions need to be more prudent in their lending and mortgage policies.
The Swiss economy is now one of the best performers in Europe, but the uncertainty caused by the debt crisis in the euro region, and the franc’s rise against the euro, mean the SNB isn’t yet able to raise interest rates to smooth the growth trend.
The consequence is that rates, and, consequently, mortgage lending costs, are near a record low, and are likely to remain so until December at least.
This gives would-be home owners access to one of the cheapest sources of house financing in the world, and some Swiss banks are now bending their own lending rules to try and cash in on the demand for the perceived safety of bricks and mortar.
According to a survey conducted by the SNB among 30 Swiss domestic mortgage lenders in the first quarter of the year, the volume of new home loans that didn’t meet bank lending standards surged to 6 billion francs ($5.4 billion) last year, from around CHF2.5 billion in 2006.
“There’s certainly a moral-hazard risk in the whole banking sector, and the SNB is quite right in warning about the dangers of unchecked credit growth,” said Janwillem Acket, chief economist at Bank Julius Baer in Zurich.
…
‘Tired’ Tony Hayward ’savaged’ by Congress, say UK media
But the Daily Mail took a tougher line against the hearing, saying the BP boss was “treated like Public Enemy No 1 by American politicians” and that the occasion was “billed as a chance for Washington’s finest to ’slice and dice’ Tony Hayward. It didn’t disappoint. BP’s chief executive was subjected to a grilling so savage yesterday it was more like ancient Rome than Capitol Hill.”
Hayward was “abused and heckled” according to the Daily Express with committee members “determined to get their pound of flesh in what at times appeared to be a rather public execution on Capitol Hill.”
Let’s get the CEO of ExxonMobil to dump a tanker of oil on the White Cliffs of Dover, and then dump a few tankers worth into the Thames.
Wonder how friendly the Brits would be then.
Well, its not like it won’t happen again, is it? Probably be a US company next time.
And bottom line, its all our fault - especially the US with the amount of gas we all desire.
And bottom line, its all our fault - especially the US with the amount of gas we all desire.
Seconded.
I will NOT take the blame in a society that gives me no choices.
I would love to buy products with recycled packages. I would love to have better mass transit. I would love to buy affordable high mileage cars. I would love to see less plastic used in every thing I touch.
But beyond expensive boutiques and catalogs, I DON’T have that choice.
So you expect “society” to provide you with products to buy, but you’re complaining about what’s being offered. That attitude doesn’t seem like it will generate much progress. Maybe try to build your own electric car? Or bike? You’ll probably find that gasoline power sets a very high standard. I am looking forward to seeing this new Nissan Leaf when it comes out. I hope they figure out the heater, though. A heat pump at -15F = no heat. I’m worried that they’ll only be available in California, and other warm climates.
Congress is just about the most worthless organization in the history of the world.
These public hearings are all about the sound byte and photo op for the next election. When Senators and Congressman are forced to answer questions under oath, in a public forum about their back alley deals, them I’ll believe that things are changing for the better.
A housing recovery made of straw
Jun 15th 2010, 15:46 by R.A. | WASHINGTON
A DATA-RICH new report from Harvard’s Joint Center for Housing Studies analyses the state of the American housing market in 2010, and finds it wanting. Government interventions in housing helped stabilise prices and boost sales from last autumn through this spring, but:
A number of other conditions are still weighing on the housing market. One of the biggest drags on the housing market is the high joblessness rate. With more than 7.8 million fewer establishment jobs than in December 2007, unemployment held at 9.9 percent in April 2010. If the past is any guide, the strength and sustainability of the housing recovery will depend most on the bounceback in employment growth…Unfortunately, most economists predict that the unemployment rate will remain elevated as discouraged workers reenter the labor force amid slow gains in jobs.
Homebuilders are concerned. The latest Housing Market Index from the National Association of Home Builders (which measures builder confidence) showed an unexpectedly large drop in June:
Snapping a string of two consecutive monthly gains, builder confidence in the market for newly built, single-family homes fell back to February levels, before the beginning of the home buyer tax credit-related surge, according to results of the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. The HMI dropped five points to 17 in June.
…
“Data rich”
Does it “…change the paradigm by leveraging existing content and re-purposing it, thus creating new synergistic opportunities by allowing the right people to own it?”
Suppose the Fed or other deep-pocketed government entity used unlimited financial fire power to purchase both gold and Treasurys; wouldn’t that serve to explain this conundrum?
Like The Economist writers, I personally cannot conceive of a market-fundamentals-based explanation, but perhaps someone who understands the situation better than I could offer one?
Buttonwood
Something doesn’t fit
Why are both Treasury bonds and gold performing so well?
Jun 17th 2010
“ALICE laughed: ‘There’s no use trying,’ she said; ‘one can’t believe impossible things.’ ‘I daresay you haven’t had much practice,’ said the Queen. ‘When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.’”
Occasionally investors can believe impossible things, as they did when dotcom stocks with no profits were valued at more than flourishing multinationals. But they can also believe in incompatible things, which is even more striking.
Take the recent surge in the gold price to a nominal record of $1,251.20 an ounce. Owning gold is traditionally seen as offering protection against inflation. And inflation is very bad news for owners of government bonds. But the ten-year Treasury bond yields just 3.3%, a level that is towards the low end of the historical range.
There is something remarkable about this combination. You would expect the performance of gold and Treasury bonds to be inversely correlated. When gold was at its real all-time high in 1980, the ten-year Treasury-bond yield was 10.8%. Fixed-income investors had suffered years of negative real returns in the 1970s.
…
I suggest people are more afraid of the Fed’s printing press running amok in panic than the recession per se.
Metals Stocks
June 18, 2010, 11:59 a.m. EDT
Gold futures rise to fresh record, soar past $1,260 an ounce
Gold futures close at record
By Claudia Assis and Nick Godt , MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures soared to a fresh record on Friday as more investors jumped into bullion’s bandwagon, ready to chase better returns and wary of riskier bets such as stocks.
Swiss Franc Takes Center Stage Again
The Swiss franc has swept up to yet another record high against the euro after the country’s central bank stepped back from its policy of seeking to hold the franc down.
Gold for August delivery rose $12.40, or 1%, to $1,260.70 an ounce. It hit an intraday high of $1,262 an ounce earlier.
“People are tired of their zero percent T-bills, afraid of the stock market, and afraid of the double-dip recession,” said James Cordier, a portfolio manager at OptionSellers.com in Tampa, Fla. “People are pouring into gold even at this high level.”
…
Where’s the mystery? The propping up of these was publicly announced from almost from the beginning and was even discussed here.
Suppose the Fed or other deep-pocketed government entity used unlimited financial fire power to purchase both gold and Treasurys; wouldn’t that serve to explain this conundrum?
No, the Fed is buying Treasurys. Gold is being bought by others who are very concerned about… the Fed buying Treasurys.
Hope that helps.
Ol Hwy’s thickest bookmark folder is titled: “The Bad, The Worse & The Ugly”…(seems to get thicker day by day,) it nearest competitor is titled: “The Professional, The Ethical, The Corporation”
This story an be filed in either one
By P.J. Huffstutter, Los Angeles Times, June 17, 2010
Tomato king Frederick Scott Salyer’s journey from boardroom to jail cell:
(The former head of SK Foods awaits trial on 12 counts of corruption in an alleged scheme that ripped off consumers. It’s the latest chapter in a saga of family infighting.)
“…SK Foods sold its customers organic paste that wasn’t organic, changed production dates to make the product seem fresher than it was and altered quality-control documents to hawk paste with mold content that was higher than levels permitted by the FDA, according to court documents.
“You can solve all your problems with a label printer,” Scott told Glen McClaran, a former SK Foods president, in 2007, according to court documents.
To ensure that the companies would buy SK Foods’ tomato paste, Scott allegedly directed his subordinates to bribe purchasing managers to make sure the inflated deals were signed.
By the time creditors forced SK Foods into bankruptcy protection in May 2009, the banks alone were owed about $195 million. Bankruptcy trustee Bradley D. Sharp said he discovered that SK Foods funds were used to buy a $1.5-million lot in Maui and a $2.6-million Lake Tahoe condo and to operate a $1.5-million jet, among other things.
The Bankruptcy Court found there was evidence that, after federal agents raided Scott’s home, he liquidated business assets worth $3 million to $7 million and transferred the money to overseas banks, according to court documents. Then last year, he left the country and went to Europe.
On Feb. 4, Scott flew back to the U.S. to meet with Sharp about the SK Foods bankruptcy. FBI agents arrested him at John F. Kennedy International Airport.
Eleven people have been charged in connection with the SK Foods case. All but Scott have pleaded guilty.
SK Foods’ plants were sold for $39 million to a Singapore firm. Salyer American Fresh Foods, which was debt-free when Scott bought it, is now in receivership.
Scott and SK Foods, the government said, conspired to inflate prices on millions of pounds of processed tomatoes sold to 55 companies in 22 states. It was an alleged scheme that ripped off consumers and reaped big profits for Salyer.
From humble Southern roots, the Salyers became one of the most powerful agricultural families in the West. And Scott’s legal woes are rooted in a litigious family tradition.
For three generations, the Salyers fought one another in court to control multimillion-dollar corporations and, at its peak, oversaw a land empire three times the size of San Francisco. Yet the dynasty ultimately couldn’t withstand the infighting, particularly the falling-out between Scott and Fred.
“…..operate a $1.5 million dollar jet….”
BFD. Can’t buy much “jet” for 1.5 mill, even at 2010 prices.
I think that was operations/maintenance costs. Would be nice to work for that kind of coin, eh? But then again, right now you’d be looking for work!
…t
Surely you are not implying that a large corporation would… break the rules, defraud customers and investors and intentionally poison people, would they?
The free market woulda fixed that!
Another of thousands of examples of candy assed, bed wetter, thumb sucking policies.
Toy soldiers run afoul of school’s weapons ban AP
PROVIDENCE, R.I. – Christan Morales said her son just wanted to honor American troops when he wore a hat to school decorated with an American flag and small plastic Army figures.
But the school banned the hat because it ran afoul of the district’s zero-tolerance weapons policy. Why? The toy soldiers were carrying tiny guns.
“His teacher called and said it wasn’t appropriate,” Morales said.
Morales’ 8-year-old son, David, had been assigned to make a hat for the day when his second-grade class would meet their pen pals from another school. She and her son came up with an idea to add patriotic decorations to a camouflage hat.
Earlier this week, after the hat was banned, the principal at the Tiogue School in Coventry told the family that the hat would be fine if David replaced the Army men holding weapons with ones that didn’t have any, according to Superintendent Kenneth R. Di Pietro.
But, Morales said, the family had only one Army figure without a weapon (he was carrying binoculars), so David wore a plain baseball cap on the day of the pen pal meeting.
“Nothing was being done to limit patriotism, creativity, other than find an alternative to a weapon,” Di Pietro said.
I got suspended one day for wearing stripped stocks and another day for wearing a sweater with a horse on it, during a presentation about a local animal shelter - only solid colored sweaters were allowed. Was it stupid and annoying? Yes. Was my mom really pissed that I couldn’t wear stripped socks, but the tiny Dolphin shorts I was wearing for an after-school activity were ok? Yes. Did I know the rules and break them? Yes. Am I glad I went to a Catholic high school with uniforms and little ability for girls to outspend each other in the keeping up with the Joneses world? Hell yes.
Rules suck and forcing kids into narrow boxes is not always the best thing. But if the rules are bent for some, why not all? This kid should be allowed his portrayal of weapons. The next should be allowed to wear gang colors. The next should be able to slur minorities and gays. Not. Kids are in school to learn. They no longer get slapped alongside the head when acting out (and I’m sorry but some of them should.) They don’t have to hear criticism or learn to win AND lose like a true sportsmen. They can complain about everything and throw attitude at everyone at anytime. I think expecting them to follow a few dress codes is just not that big a deal.
On the other hand, kids being sent home for wearing flag clothing not outlawed by the school on another nation’s holiday would have me on that campus screaming bloody murder. Much different when kids have to follow rules that don’t actually exist.
Fuel Taxes Must Rise, Harvard Researchers Say ($7 gallon gas to meet Obama’s targets for emissions?) The New York Times
To meet the Obama administration’s targets for cutting greenhouse gas emissions, some researchers say, Americans may have to experience a sobering reality: gas at $7 a gallon.
To reduce carbon dioxide emissions in the transportation sector 14 percent from 2005 levels by 2020, the cost of driving must simply increase, according to a forthcoming report by researchers at Harvard’s Belfer Center for Science and International Affairs.
The 14 percent target was set in the Environmental Protection Agency’s budget for fiscal 2010.
Voting to raise gasoline taxes will be the kiss of death for any legislator.
This is the best idea ever and it will never happen.
We should tax gas up to 5-6 bucks a gallon.
and Slash payroll taxes with the proceeds.
No, the best thing that could happen would be to get rid of the tax breaks for large SUVs and accelerate electric car production, and stop making every damn thing out of plastic.
Measton, you do realize that most of the nation has NO mass transit to speak of, right? And that transportation costs are already a large portion of the cost of going to work, right? Especially for the poor.
Plastic is not a bad use of oil, assuming it’s not all disposable crap. I have plenty of things made of plastic that will last for decades.
Plastic is not a bad use of oil, assuming it’s not all disposable crap. I have plenty of things made of plastic that will last for decades.
so who gets to decide what’s a “good” use, and what isn’t? I thought what mattered is the dependence on foreign oil? Now you’re saying some causes of dependence (your plastic goods) is okay? But others aren’t?
I need a flow chart….
Awesome! More cheap oil for Chinese and Indians to burn…..
As opposed to more US dollars for Iran to spend on nuclear weopons and terrorism, or well all of the middle east to spend on terrorism and the spread of militant islam.
If China and India were smart they would do the same and crush Iran and the middle east, they have plenty of problems with militant islam. If not we could just tax any import based on energy content from countries that did not impose this energy tax.
In the process of taxing gas and cutting the payroll tax we would decrease the cost of labor in this country.
You sound like George Bush there with your Islamic terrorism rhetoric…
China and India are a lot smarter than us that’s why they will not follow the Western suicide agenda. The middle east will be happy to settle to fund their terrorism in Yuan and Rupees.
“…China and India are a lot smarter than us”
2.6 Billion humans…who are being turned into American template consumers…yep, they are really smart & very horny too!
BWAHAHAHicHAHAHicHAHAHAHAHicHAHAHic* (DennisN™)
had lunch with my boss today. she said the oil spill was horrible. i told her i know something going on that’s much worse…the QE policy of the federal reserve.
she said no way…at least innocent animals aren’t dieing.
did i also mention she is meeting with an attorney next week to plan a strategic default on her condo…so her and her new husband can buy a house ASAP since interest rates are so low?
i live in the twilight zone.
Michael’s biggest workday challenge: Acting as if he has respect for this boss.
Arizona Slim,
LOL, you and I have been on the 1099-side way… too long! It’s obvious we’d forgotten “Acting as if” is an important job ’skill’ these days!? ( Especially if you’re say an underling at WaMu )
O.k bad example.., CountryWide.., NO… I’m stumped.
But DinOR and Slim, you can’t say what you really want to say to your clients, can you? We all have to act to stay in business. Every day I’d like to give some of my patients a piece of my mind, but I button my lip and smile.
Rod Serling couldn’t make this stuff up.
Crissy Dodd the gift that keeps on giving!
Mohegan Sun Casino Owners Received $54 Million In Stimulus Money.
Indian Tribe That Runs Connecticut Casino Earning $1 Billion-Plus Per Year Got Government Check.
With the support of Sen. Chris Dodd, D.-Conn., the federal government has awarded $54 million to Connecticut’s politically well-connected Mohegan Indian tribe, which operates one of the highest grossing casinos in the U.S.
The tribe runs the sprawling Mohegan Sun casino, halfway between New York City and Boston, which earned more than $1.3 billion in gross revenues in 2009. Each tribe member receives a cut of the profits, a number a tribal official said was “less than $30,000″ per capita per year. The stimulus money is a loan from a U.S. Department of Agriculture rural development program that is meant to help communities of less than 20,000 people that have been “unable to obtain other credit at reasonable rates and terms and are unable to finance the proposed project from their own resources.”
Last of the Moe Higgins.
BWAHAHHAHAHAHHAHAHHAHHAHAHAHHHHHHHHHHHHH!!! (fpss™)
Love it when the “savages” get money from the US Gov’t!
How does a sovereign nation qualify for a USDA loan program?
Look it up. The USDA loans money all over the world for ag projects.
Lessons From the Gulf: Too Many ‘Black Swans’ to Handle:
Posted Jun 18, 2010 by Aaron Task Yahoo Finance
“…Crisis Playbook: Deny, Dodge, Delay
So when crises do occur — be it on the Deepwater Horizon or Massey Energy’s Upper Big Branch Mine or in Goldman’s marketing of CDOs — Finkelstein says corporate executives almost uniformly reach for the same “playbook”:
Crank up the PR machine.
Deny responsibility.
Lobby hard.
Attempt to limit legal liabilities.
In other words, not much has changed since the credit bubble rocked Wall Street, after which corporations put intense focus on “risk management” — at least rhetorically.
“These events occur more often than people think and companies are not really good at estimating probabilities when it comes to low-probability events.”
While no apologist for big business, Finkelstein notes “some of the types of situations — such as what’s going on in the Gulf — are so incredibly complex there’s a real question on whether risks can be managed at all.”
(Really? Hwy’s had this notion in his head, that the more times you do something, (Increased frequency) …the greater the odds SOMETHING UNEXPECTED might just happen?)
So, when was Big Oil going to stop?…4,500…5,500…6,500…7,500
http://en.wikipedia.org/wiki/File:Gulf_Coast_Platforms.jpg
So, now,… now everyone’s full of “TrueAnger™”)
“…In the aftermath of disaster, the message from Wall Street CEOs to oil company executives and former Fed chairmen is pretty much the same: It was a 100-year flood. Nobody could have seen it coming. I feel bad for the lives ruined and the money lost…but it’s not my fault.
“There’s still a fundamental problem…across organizations in realizing that very low probability events — so called ‘Black Swan’ events — occur a lot more often than we like to think,” says Sydney Finkelstein, management professor at Dartmouth’s Tuck School of Business. “These events occur more often than people think and companies are not really good at estimating probabilities when it comes to low-probability events.”
On CNBC worldwide exchange they mentioned Chinese workers who work for foreign firms are on strike for higher wages. Christine Tan it seemed like only foreign firms were targeted.
“Chinese workers who work for foreign firms are on strike for higher wages.”
Seems as though they are unaware of the reason said foreign firms hired them.
They probably know foreign firms won’t run over them with a tank.
+1
State pension plans in crisis: underfunded by $1 trillion?
June 18, 2010
FORTUNE — When the majority of the country’s 225 state-sponsored pension plans release their annual reports this month, the numbers will paint a bleak picture. Unfortunately, the reality may be even worse.
According to the Manhattan Institute for Policy Research, pension plans for public school teachers, which comprise about half of states’ total pension liabilities, were underfunded by $933 billion dollars in fiscal year 2008, almost three times the amount that the plans had reported.
A missing trillion dollars here, and another trillion there, and pretty soon you are talking about some serious money!
Huntsville’s Constellation contractors getting the bad news beginning today.
HUNTSVILLE, AL - Huntsville’s Constellation contractors find out as early as today about what’s left of the rocket program, and that means hundreds of layoff notices beginning next week.
NASA’s Marshall Space Flight Center began sending letters to contractors Thursday telling them how much money they have left to spend on Constellation for the rest of the fiscal year ending Sept. 30.
Contractors said Thursday they’ve been waiting for these “scope of work” letters to decide how many layoffs they have to make.
An estimated 1,750 workers support NASA’s Constellation program here, a Marshall spokeswoman said Thursday. Most perform computer, engineering and technical work.
NASA has estimated 30-60 percent of Constellation support employees nationwide will lose their jobs in what the agency calls a “replanning” of the program. No NASA civil service workers will be affected.
Arizona Spends $1.25M to Save 250 Squirrels
Rope Bridges Expected to Save Five Squirrels a Year From Being Road Kill
Arizona is spending $1.25 million to build bridges for endangered squirrels over a mountain road so they don’t become roadkill and then monitor their health.
The money is being spent, officials said, because cars kill about five of these squirrels each year.
While most suburbanites may be baffled why anyone would protect a pesky squirrel, these are Mount Graham red squirrels, a breed once thought to be extinct. Only 250 of them are known to live near the top of Mount Graham.
The Federal Highway Administration grant will be used to build rope bridges over the lone road through the squirrels’ habitat, according to Arizona Department of Transportation Community Relations Director Timothy Tait. The DOT plans to install 41 of the “canopy tunnel crossings” at a cost of $400,000.
Another $160,000 will be spent on cameras to monitor the bridges, and the rest of the money will fund a project to monitor the rodents.
That works out to about $5,000 per squirrel.
Too funny. Isn’t taking care of squirrels the job of FBs?
Insane.
But a perfect example of somebody’s insider political favor.
It’s always the minorities get hit the “hardest”, it’s just not “fair”.
Foreclosure crisis hits minorities harder.
June 18, 2010
NEW YORK (CNNMoney.com) — The mortgage meltdown is hitting the African-American and Latino communities harder than whites, a new study has found.
Of borrowers who took out mortgages between 2005 and 2008, some 8% of both African-American and Latino borrowers have lost their homes to foreclosure, compared to 4.5% of non-Hispanic whites, according to a study by the Center for Responsible Lending, released Friday.
The racial and ethnic disparities continued even after controlling for income differences. The center’s research shows that African-American and Latino borrowers were about 30% more likely to get higher-rate subprime loans than white borrowers with similiar risk characteristics.
The racial and ethnic disparities continued even after controlling for income differences. The center’s research shows that African-American and Latino borrowers were about 30% more likely to get higher-rate subprime loans than white borrowers with similiar risk characteristics.
The other day, I posted a portion of a letter that I wrote to the Arizona Attorney General’s Tucson office. In it, I suggested that the difficulties I had with my mortgage originator could have been retribution for going with a fixed-rate loan rather than the ARM that the loan officer was pushing on me.
So, I don’t discount stories like this one.
Ditto for the story written by the NYT’s Gretchen Morgensen about Countrywide. Seems that their software was set up to steer people into subprime loans, even when their credit was good enough for prime.
Sorry, I don’t have a link to the NYT story, but I seem to recall reading it during the summer of 2008.
Since minority subpopulations had a lower homeownership percentage than majority subpopulations, measures to use “affordable housing” demand stimulus to turn all American households into homeowner households naturally had a disproportionate effect on minorities.
I put almost 40% down when I bought in ‘04. Does that make me a racist?
It makes you a green supremacist.
Since it was the Dems’ stated goal of putting more minority and low income people into house ownership, it’s not surprising that these are the people most affected. This is what happens when you stuff people into mortgages at any cost.
Habitat for Humanity deals with the same population, and they have a much lower foreclosure rate. I guess that has something to do with the fact that future Habitat homeowners go through quite a bit of screening.
And they’re expected to help build their house. Here in Tucson, the work requirement is 200 hours for a single parent household and 400 hours for a two-parent household. If they can’t work on a construction site, well, there’s plenty to do at the office or in the Habistore, which sells used furniture, appliances, and building materials.
Never mind the fact that low income folks are usually the FIRST to be laid off.
Hey Big V
Re: Your comment about me yesterday
I don’t have to worry about taking “revenge” on my ex. She does a fine job of fooking up her life, all by herself. I guess you can say she is “empowered” now. Screwing around with payback on her would be the same as kicking a blind, three-legged dog.
Your experience may differ.
X-GSfixr, it’s also worth noting that letting go is healthier for you as well…
Ken Crane’s Closing ~ TWICE.COM 6/18/2010
Hawthorne, Calif. - Ken Crane’s, a fixture in Southern California TV retailing, is liquidating all merchandise and will shut its doors within 60 days.
The privately held business found itself “powerfully affected by the nation’s unusually severe and continuing economic downturn,” the Crane family said in a statement, and “a steep, relentless decline in same-store sales activity led to the difficult decision.”
The 62-year-old business shut four of its 10 stores in January as part of a restructuring that also saw the departure of senior VP/COO Steve Caldero.
“This is unquestionably the most painful business decision our family has ever had to make,” said president Casey Crane. “We have been a home for employees, a place of trust for our customers and vendors, and a source of pride and leadership among our competitors for many decades. As painful as this is, we plan to end this as fairly as we can for all concerned.”
The chain, founded in 1948 by Casey’s father Ken as a Magnavox-exclusive dealer, was a high-service specialty A/V retailer renowned for being a West Coast showcase for new products and technologies, including Panasonic’s 103-inch plasma display, which it presented exclusively in California in 2007.
The company posted its best year ever in 2006, growing by more than 40 percent. But by April of 2008, after being battered by the ailing Southern California housing market and weak local economy, Ken Crane’s implemented an aggressive workforce reduction, making across-the-board cuts in overhead to maintain its viability.
“The company posted its best year ever in 2006″
I do feel badly for people that owned well-run companies that are failing during the downturn.
But I do think it is interesting and telling that their “best year ever” was in the era of “Every New Home Comes with a Big Plasma!”
For all you FB’s out there be sure and check your SpaghettiO’s tonight before dinner.
Campbell Soup recalls SpaghettiOs
Varieties with meatballs may contain undercooked meat.
WASHINGTON - Campbell Soup Co. is recalling 15 million pounds of SpaghettiOs with meatballs after a cooker malfunctioned at one of the company’s plants in Texas and left the meat undercooked.
The Agriculture Department announced the recall late Thursday. Campbell spokesman Anthony Sanzio said the company is recalling certain lots of the product manufactured since December 2008 “out of an abundance of caution” because officials don’t know exactly when the cooker at the Paris, Texas, plant malfunctioned. Officials believe it happened recently but aren’t sure, he said.
Uh-oh!
Poor irrelevant Hilary, she goes to Ecuador to throw out this little ditty. Arizona is lucky to have their current Gov. Screw the federal gov. they don’t enforce the immigration laws, so states have to defend themselves, and should.
Arizona Governor Vows to Fight Any Federal Lawsuit Over Immigration. Law. ~ June 18, 2010
Arizona Gov. Jan Brewer speaks to reporters outside the White House in Washington, Thursday, June 3, 2010, after a private meeting with President Barack Obama. (AP)
Arizona Gov. Jan Brewer expressed outrage Thursday over Secretary of State Hillary Clinton’s comments that the Obama administration will sue over Arizona’s controversial immigration law — and Brewer said she’s ready for a fight.
Clinton said in an interview with a TV station in Ecuador that the Obama administration “will be bringing” suit against Arizona for its immigration law, though the Justice Department for weeks has said that the issue is still under review.
I can’t say that I’m a huge Jan-fan, but I have to say that the photos of her with Obama were priceless.
She was sitting in her Visiting Dignitary Chair with a “Yeah, right!” expression on her face. And Obama didn’t appear to enjoy being in her presence.
That’s an Arizona woman for you. Fearless and never hesitant to call it the way she sees it.
“That’s an Arizona woman for you. Fearless and never hesitant to call it the way she sees it”.
Good for Arizona women!
That’s the way it is in my life, I am surrounded by women who speak their minds, as it should be, and I love’um for it.
Bring on the cat fight! Rowww!
I always fall back to the supposed 70% of Arizonans (of those who were polled) who are in favor of this law. How can anyone (even Obama) argue against that?
Countries with the Most Millionaires
June 18, 2010 BusinessWeek
As the financial markets rebounded in 2009 and developing markets continued to grow, lost wealth around the world returned. Despite the volatile global economy, many households gained or regained millionaire status last year, according to a new report by the Boston Consulting Group. The study finds global wealth increased 11.5 percent in 2009, to $111.5 trillion, just short of 2007 levels. When measuring assets under management — cash deposits, money market funds, listed securities, and onshore and offshore assets, but not wealth attributed to investors’ own businesses, residences, or luxury goods — the U.S. continued to lead with more than 4.7 million “millionaire households,” followed by Japan and China.
http://finance.yahoo.com/banking-budgeting/article/109838/countries-with-the-most-millionaires
A sure sign the rest of us are going to get thrown to the wolves on the next, soon to come, go ’round.
“You can get wood. You can get brick. You can get stucco. Boy, can you get stucco.” - Groucho Marx