Bits Bucket For November 25, 2010
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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‘Twas a month before Christmas
And all through the house,
Not a Realtor™ was stirring
Not even a louse.
You might add a variation on the and substitute retailer for realtor….
I have a feeling holiday sales will leave something to be desired.
The rich will make up what is lacking in middle class holiday sales. If 10% hold 90% of the wealth they can buy a lot of holiday stuff.
http://www.insideline.com/chevrolet/camaro/2011/neiman-marcus-camaro-sells-out-in-three-minutes.html
Yeah, those 100 units will really help with unemployment.
When they said “trickle down” they really did mean trickle.
where’s the Ditech guy when you need him. he ruined so much!
The FBs were living
Without paying their share,
In the hopes that the foreclosure
Paperwork wasn’t there.
The stockings were strewn
On the floor without care
Her legs were so smooth
I think Realtors use Nair
FTC battling mortgage-modification schemes
By Ken Harney
Washington Post Writers Group
Posted Nov 24, 2010 @ 01:37 PM
WASHINGTON —
You’ve probably seen the pitches on TV and the Internet or found them stuffed in your mail: official-looking communications complete with logos and letterheads that look vaguely like those used by the Treasury, IRS and other federal agencies.
The promoters have names that resemble federal foreclosure-intervention programs such as Making Home Affordable or Home Affordable Modification. Some even flash the a photo of President Barack Obama or the great seal of the United States.
They are instead criminal enterprises posing as do-gooders who promise to get you out of the mortgage jam you’re in, whether you’re severely delinquent or deeply underwater.
They claim they can persuade your lender to cut your monthly payments, forgive all penalties, slash your interest rate and even get your loan balance reduced.
If your lender won’t cooperate, they say they’ll perform “forensic audits” on your mortgage and convince a court to cancel your entire loan transaction because of technical mistakes in the paperwork.
Bogus firms always insist on getting your money up front — often thousands of dollars — and then do little or nothing.
But now the Federal Trade Commission is cutting off the main fuel supply for mortgage modification scammers: Under new rules outlined Nov. 19, the agency plans to ban virtually all upfront payments, institute mandatory disclosure rules, and clamp new federal restrictions on lawyers who participate in mortgage modification schemes.
…
And I’m sure the bad guys will abide by these rules.
Posted: 12:00 AM
Homeowners facing eviction, foreclosure get holiday reprieve
GMAC agrees to halt procedures in Maine while it resolves legal concerns.
By Dennis Hoey
Maine Attorney General Janet Mills has negotiated an agreement with one of the nation’s largest mortgage lenders, giving some financially stressed homeowners a bit of a reprieve through the holidays.
Mills announced Wednesday that GMAC Mortgage LLC has agreed to temporarily halt the sale of several dozen Maine homes that have been foreclosed on and whose owners face eviction.
Mills estimated that just under 100 properties may be affected. The temporary halt could last several weeks pending further talks between her office and GMAC about concerns over the company’s foreclosure procedures, she said.
GMAC, which is the nation’s fourth-largest mortgage lender, has been in the news lately for its so-called practice of “robo-signing” affidavits to speed up foreclosure cases.
Mills also singled out Bank of America, another major mortgage lender, which she said has agreed not to proceed to judgment on any pending foreclosure matters in Maine until it has completed a review of its foreclosure procedures. That could happen as soon as next month.
Mills urged all homeowners, regardless of whether they have fallen behind in their mortgage payments or are facing eviction, not to give up hope.
“It’s rarely cheaper to rent something. It’s always to your benefit to renegotiate your mortgage,” she said. “We are telling people not to give up.”
…
I don’t understand, this agent of the state is negotiating in the interest of specific religious denominations?
“It’s rarely cheaper to rent something. It’s always to your benefit to renegotiate your mortgage,” she said. “We are telling people not to give up.”
Janet Mills has never owned in California.
With alleged misconduct all around, helpless homeowner awaits foreclosure
By TOLUSE OLORUNNIPA
McClatchy Newspapers
All she wanted was $50,000 from the equity in her house to help pay the bills while looking for a job in nursing. What Imogene Hall got was a brutal lesson in the sometimes shady ways of the mortgage industry.
It’s a lesson learned by untold numbers of homeowners in Florida, epicenter of the foreclosure crisis gripping the nation.
“Everywhere I turn, someone else is scamming me,” said Hall, a 49-year-old Jamaican immigrant who stands to lose her Miami Gardens home the Monday after Thanksgiving. “All I do is work hard, and I get surrounded by thieves.”
…
So if the home equity hard money lender decides to foreclosure, what about the primary lender? Or do “hard money” lenders only write mortgages on unpledged houses?
What do the hard money lenders do with the houses? It seems like most banks made the decision they would rather have an occupied nonperforming mortgaged house than a vacant falling apart one that is a magnet for crime and a property tax burden. Or perhaps the hard money lenders will only loan a small percentage of the “true” equity and then can dump the house on the market 50% off while still coming out ahead?
hard money lenders take both 1st trust deeds and 2nds. during the boom 65% was a comfortable LTV and those with 2nd positions realized a total loss.
hard money lenders tend to be mom and pops and they would rather get market value then extend and pretend.
“All I do is work hard, and I get surrounded by thieves.”
Welcome to the world of american high finance.
Welcome to the world of american high finance…
Coyote… vs …Turkey
(For those who need a “visual” Flash Card “wanted-poster” type description):
http://www.cartoonspot.net/looney-tunes/picture/coyote-1.jpg
$50,000 to “help pay the bills”? What the heck kind of debt does she have?
She just wants her $50k back, IMHO.
From reading the article, this person actually seems to be a true victim of scam-artists who used the equity in her house to skim off $230,000, the gave her the $50,000 loan she had applied for, but also saddled her with a huge new mortgage debt.
I don’t know how anyone can be so clueless as to sign documents that would put them into a huge financial hole, but I have been to a few closings and the paperwork pile is huge, the government’s requirements for transparency only cloud the issue more, and you often take people on good faith that they are doing a reputable transaction, and they are in business to stay in business with happy customers.
I actually feel bad for this person, based on the details of the story.
She got a portion of the “equity mining”, while the dealers rode away with the graft. Buyer Beware.
If it’s too complicated for you to understand, get some type of representation from someone who does understand. Don’t sign anything until you get a factual breakdown of your obligations!!!
Hey Diogenes. I will be working in Tampa starting Monday December 6.
Not that I’m interesting in becoming a slave to a house, but I noticed in New Tampa, close to Wesley Chapel, that many houses have glassed-in pools.
Is this to protect from pesky bugs?
I like the idea of glassed-in pool “rooms” as kind of a way to discourage neighborhood kids from meandering into your pool while you are gone and then having a lawsuit on your hands.
The pictures of some of those houses built in the 1990s are interesting. It appears you get more for your money on them than Phoenix houses of the same square footage. Plus a lot of green grass.
What’s the catch?
Wesley Chapel is basically Zephyrhills to me. the further you go out of Tampa, the cheaper the houses get. AS for the “glass-in” pools, I believe you will find that these are large screen enclosures. And yes, that’s to keep the bugs out. we are, after all, a large mosquito infested swamp with beaches nearby.
If you look around, there’s lots of stuff for sale. Unfortunately, much of the inventory was “purchased” by marginal, or should I say unqualified buyers with FHA and piggy-back financing to get in on the rising housing “values”. Lack of maintenance plagues many of the houses, if not most of them, and many times the prior occupants took the time to strip or damage them on their way out. You really need to shop to find what you want in an area you would be willing to live in.
As for the green grass, it only stays that way with lots of water, fertilizer and pesticides. Or, you let the “lawn” die out and just keep the weeds trimmed down. If you don’t mind maintaining a lawn, it’s nice to have. Chinch bugs, sod web-worms and fungus are happy predators of your carpet of grass.
You can hire a lawn care service that will take care of this if you don’t mind the expense.
Best wishes in finding your new place.
D.
“Everywhere I turn, someone else is scamming me,” said Hall, a 49-year-old Jamaican immigrant who stands to lose her Miami Gardens home the Monday after Thanksgiving. “All I do is work hard, and I get surrounded by thieves.”
Welcome to America!
Pillars of support gone from U.S. housing
David Streitfeld
The New York Times News Service
Published Wednesday, Nov. 24, 2010 11:49AM EST
Last updated Wednesday, Nov. 24, 2010 11:51AM EST
Over the last few years, buyers have been lured into the troubled U.S. housing market by two unusual opportunities: cash subsidies in the form of government tax credits, and rock-bottom prices on millions of foreclosed homes.
The tax credits are now history. And the supply of foreclosed homes on the market is already falling as regulators, lawmakers and state law enforcement officials press to sharply reduce the number of foreclosures.
Now, buyers and sellers are getting an early taste of what the real estate market might look like without those twin pillars of support: Sales of existing homes plunged 26 per cent in October compared with the same period last year, the National Association of Realtors said in a report Tuesday.
In some parts of the country, it was the worst October in at least 20 years, according to separate regional sales reports. Sales were down 41 per cent in Minneapolis, 28 per cent in Massachusetts and 34 per cent in Illinois.
In Portland, Ore., (down 39 per cent) and Seattle (down 32 per cent), it was the worst October since record-keeping began in 1994. In California, it was the second-worst October since at least 1994.
“People aren’t buying houses - period,” said Mark Fleming, an economist with CoreLogic, a data firm.
…
“In Portland, Ore., (down 39 per cent) and Seattle (down 32 per cent), it was the worst October since record-keeping began in 1994.”
What you talkin bout Willis? Don’t you know it is different here in Portland? Sales might be down, but prices never drop here thanks to the Urban Growth Boundary!!
True story that I have probably told here before. My “know it all” neighbors across the street told me in 2007 that prices never drop here because of the urban growth boundary, water, yada, yada, yada. Having seen the prices crash in AZ the prior year, I just mentioned to them that they “might” be right. I was just going by what happened in Arizona, but what do I know? To them, I was just a foolish renter - “throwing my money away”.
That year they put their house on the market for $350K and got a solid offer of $320,000. But, but, they don’t want to “give” the house away for that because then they would only have 20k for the next house. They paid 261,115 for the house at the end of 2004. Where did the equity go? Glad you asked. With it being different here in Oregon, they paid off some credit cards and bought a new honda civic hybrid because that is just what people do here. I am way out of place with my paid off 2 Ford diesel vehicles, both well in excess of 100k miles. Well, here we are two and a half years later. The same model house was trying to short sale for 230K but never happened. It is now a Freddie/Fanny house listed at $278,500 so I am very interested to see what it will sell for since Freddie/Fannie have the ability to actually go as low as needed to get things sold.
As for my neighbors, they re-financed their house for around $300k a couple of years ago after it didn’t sell. The husband is 50 and the wife is 45 years old. Nothing like being upside down in a house at 50 years old due to living like everyone else lives. The civic hybrid got wrecked a few months ago and so now they have a shiny new honda crz hybrid and are back to having 2 car payments. Fortunately, they know it all so I don’t worry about them. Oh, and yes they voted for Obama because they are staunch democrats with an entitlement mentality that is beyond belief. I wonder how much hope and change they have these days? They sure don’t mention much these days.
“As for my neighbors, they re-financed their house for around $300k a couple of years ago after it didn’t sell.”
These green, entitled, staunch democrats sold their house to the bank; they’ll walk after they’ve squatted for couple of years.
Hey..I’ve confessed here previously to being an R, but I know that there are plenty of entitled fools in both parties and in between.
Because *everyone knows* RE only goes up.
I generally don’t comment on political leanings and though I have leaned more on the republican side, I am not adverse to voting for whoever I think will do the best job. I really want Sara Palin to go away. Why a quitter has any political clout is beyond me. When Rahm Emanuel got healthcare rammed through, I was thinking how great it would have been instead of ramming unpopular healthcare bill through, the same energy would have been concentrated on financial reform. I would have changed my tune on the present administration if they had come out and attacked all the fraudulent activity that has taken place the past few years. If they had let things fail, made people own up that they borrowed and spent the money from their homes, that they lied on the applications when they indicated it was a primary residence and kicked out any cabinet member that hadn’t paid their taxes, what a different statement it would have made. I wouldn’t have cared if it was a Dem or Rep that made it happen.
I only mentioned it about my neighbors because they were so adamate about Obama and how great things were going to be once he took office. I guess I just like seeing “know it alls” learn a few hard lessons, though it will never change them. In their minds, it is someone else’s fault. These two neighbors are employed in the public sector and I work in the private sector and it bothers them that I am in better shape financially then they are, though you would not know it if you saw how I live vs. how they live.
My neighbors got caught in the mentality that housing always goes up and had been buying and selling along the way, right up until they got caugh holding the bag. I did tell them they should take the offer and rent for a while and see what happens. But, my advice was contrary to their mortgage officer who said housing would be better in the spring - who really has had their best interests at heart. (sarcasm intended)
“I generally don’t comment on political leanings…”
Try not to, but since your self-interest neighbors were in rapture with Obama…
FWIW, I voted for Obama too, the lesser of evils during the last election. Realize though that both parties imbibe themselves with the same lobbyist’s money.
“Pillars of support gone from U.S. housing”
The most amazing aspect of this article is that the title is, to put it generously, quite misleading. What pillars of support is he talking about? The $8K credit is gone, after having served to temporarily deplete the supply of low-end foreclosure homes and other entry-level housing. But I would hardly call a flood of foreclosure homes to the supply side, temporarily slowed by the robo-signer scancal, as a ‘pillar of support’ that is gone.
And then what about the Fed’s mortgage interest buydown program, various federal guarantees backstopping FHA- and GSE-financed mortgages, the mortgage-interest deduction, the $500K capital gains exclusion for sale of a primary residence, etc etc etc?
There are myriad pillars of support for housing which intact, but the demand side of the U.S. housing market has nonetheless collapsed, at least relative to artificially inflated prices. Eventually, market forces overwhelm any and all attempts to thwart them.
…which remain intact…
There are myriad pillars of support for housing which reamin intact
Is that biggest remaining pillar over there the 34% of Americans who have a home but no mortgage?
Interesting article for the facts, but a bit schizophrenic on the conclusions…
“If the supply of previously foreclosed homes continues to dry up, housing prices might stabilize or even rise. That would provide long-sought relief for sellers, but could keep many potential buyers out of the market and put sales in a permanent slump.”
??? doesn’t sound like a stable endpoint in this to me. Sounds like even without foreclosures, prices might still be too high. Besides, even from the article it’s not clear that foreclosures will dry up.
Seattle sales are down because prices remain absolutely ludicrous. Foreclosures are increasing, and they are the harbinger of lower pricing. It will be years before the Seattle market is healthy and balanced.
Same in San Diego, Grizzly.
Sales have slowed because the tax credit is gone, and everyone who wanted to buy with low interest rates/higher prices has already done so.
Prices are still artificially inflated well beyond what is truly affordable for most American families. Let prices drop, and those sales will pick right up. It’s funny how people seem to think prices are static, and that it’s supply and demand that will change instead. They don’t understand how price affects supply and demand. If prices drop, demand will increase; but as long as they are keeping inventory off the market and pumping more bad mortgages via FHA and the low-interest rates, things will continue to be dicey.
Santa Cruz County median home price $501,250 in October
By Jondi Gumz — Santa Cruz Sentinel
Posted: 11/24/2010 08:09:41 PM PST
Updated: 11/24/2010 08:10:17 PM PST
SANTA CRUZ - Home sales slowed in October in Santa Cruz County, as more homes entered the foreclosure pipeline, trumping record-low interest rates.
A total of 110 single-family homes sold, down 36 percent from a year ago, according to Gary Gangnes of Real Options Realty, who tracks the data.
The median price, the midpoint of what sold, was $501,250, the lowest since January when it was $480,000, and down from $727,500 three years ago.
Though sales were down, listings of single-family homes rose 19 percent. That bumped up the unsold inventory index to 8.9 months; more than eight months’ inventory can signal declining prices.
Condo owners felt the chill, too, with a median price of $285,000, down from $498,000 three years ago. Of the 31 sales, 64 percent were either bank-owned or “short sales,” where the owners owed more than what the house is worth.
Countywide, more than 1,500 homes and condos are in foreclosure, up 20 percent from last year’s record-setting pace.
…
Santa Cruz, Carmel, Santa Barbara, Malibu, La Jolla, Imperial Beach, Crescent Bay…As Huell Howser says,: “let’s go explore some of that California Gold!”
(You know come to think of it, if CA does shake, rock, rattle & roll into the Pacific ocean, it’s overall value is suddenly gonna drop big-time,…then again, think of the all re-building “oppoortunities!”)
Well there never seems to be a shortage of people trying to live in Pelican Bay.
Sacramento weather is bad compared to the coast, but at least we don’t have to worry about earthquakes. I moved to the highest ground near downtown to avoid flooding, too.
I used to skydive in Yolo just west of Davis. The Sacramento valley is largely marshland, and in the winter the dew point and air temperature gap closes producing a cold ground fog with regularity during three or four months of the winter. Peak summer temperatures there are miserable too. The coastal communities fare much better.
Those of us born in California or who lived several decades in California laugh at the majority of people who post such ridiculous statements that it is possible for California to fall into the ocean.
More likely, a major earthquake will happen along the San Andreas fault soon, and it will be costly. If this happens during this severe debt crisis, there will be a huge taxpayer bailout of California by the residents of the other 49 states.
You don’t want it and I don’t want it.
If the “big one” is really big (and yes, I also laugh at the prospect of California sinking into the ocean) there won’t be enough money in the world to bail out California. The damages alone could be in the trillions. Of course that quake probably won’t happen anytime soon.
Overall the state of California is rising due to techtonic events. It’s the EAST coast of the US that’s gradually sinking into the Atlantic Ocean. But nobody wants to hear that.
“More likely, a major earthquake will happen along the San Andreas fault soon, and it will be costly.”
Most likely, this will happen before the SoCal housing market bottoms out. It could help accelerate the price discovery process considerably.
Why rebuild anything along the fault? That’s as idiotic as rebuilding New Orleans.
Back in 1993, flooding took out many river communities throughout Minnesota, Wisconsin, Iowa, Illinois and Missouri. Several of the towns were either moved - literally - to higher ground, or not rebuilt at all. That was the appropriate route to take.
With all the unoccupied housing now available nationwide, there’s no reason to rebuild quake-ravaged areas of California. For Californians to ask people elsewhere to cover their folly is self-righteous and ludicrous.
Further, will the typical Californian be able to pay for massive increases in insurance costs and property taxes? Will they want to? Not likely.
“For Californians to ask people elsewhere to cover their folly is self-righteous and ludicrous.”
I have to agree that your typical Indiana Hoosier would likely have a tough time voluntarily supporting a welfare bred gang-banger who wears his pants literally hanging off of his azz, rubber thong slippers, a hat on sideways and jail house tattoos.
“Those of us born in California or who lived several decades in California laugh at the majority of people who post such ridiculous statements that it is possible for California to fall into the ocean.”
I always get a great laugh at people who utter such naive things as you just did. A quick look at the world atlas shows entire continents which used to be connected and have since broken apart. The idea that California is immune to plate tectonics is laughable.
Give me an example of a place that fell into the ocean within a human lifespan. Just one.
Portuguese Bend, Palos Verdes Peninsula. 1957.
Next?
I guess I really want a substantial land mass example, like the size of Rhode Island.
Geolgically, California is on solid crust just as Nebraska is on solid crust. It’s just that there is a subduction zone and California is along the Pacific rim of fire.
You folks probably think there is a thick layer of water underneath Sacramento all the way down to El Centro.
I had to hunt up a friend of mine’s old Santa Cruz place on Zillow. Quite a history.
My friend bought at $315K in 1998.
He sold at $778K in 2006.
The new FB tried to flip at $850K a year later.
That FB then tried to sell at $750K.
That FB then tried to sell at $649K.
That FB finally sold this February at $599K.
http://www.zillow.com/homedetails/927-Nobel-Dr-Santa-Cruz-CA-95060/16102518_zpid/
Good thing real estate only goes up.
Yes, but the truly sad part is that if it sold in 1998 for 315k, it’s probably worth about 400-450k tops.
So what you are seeing is another FB in a chain of FB’s.
We need some rampant housing inflation to save the FB’s.
Go Bernanke, go! print lots more money and get some higher prices.
Oh? Not working? Food prices up. Gas up. Gold up. Commodities up? Housing down? Damn!
Another “TrueBeliever’s™ “TrueConfession™” story ripped from the “maniaeconomical” boys & girls club of America!
Atlanta Business News 5:49 p.m. Tuesday, November 23, 2010
Metro home prices, sales plunge
By Michelle E. Shaw
The Atlanta Journal-Constitution
Metro Atlanta home prices and sales fell sharply in October, continuing a trend that has all but erased signs of a recovery earlier in the year.
Metro Atlanta’s October median price drop was the worst among 17 metro areas charted in the National Association of Realtors’ October report, and the median price of $109,000 was also the lowest.
Brant Sanderlin bsanderlin@ajc.com Metro Atlanta’s October median price drop was the worst among 17 metro areas charted in the National Association of Realtors’ October report, and the median price of $109,000 was also the lowest.
The median sale price for existing single-family homes fell to $109,000 in October, down 10.6 percent from a year earlier, according to National Association of Realtors data released Tuesday. Sales volume fell 22 percent.
It was the fifth month in a row that the median price dropped from a year earlier, leaving it at the lowest point since last January, when it was $105,000. Fueled by a federal tax credit, sales picked up and median prices climbed in the spring to a peak of nearly $125,000 in May, 3 percent above the same month of 2009. But since then they have skidded, with foreclosures making up a big chunk of the market and pulling down prices.
Real estate insiders and experts are not shocked, but many are worried.
“This is a typical reaction when you get into a deflationary system, and that’s where we are,” said Thomas Smith, a finance professor and real estate expert at Emory University. “People anticipate the prices are going to fall, so people stop buying. Then prices fall, but then people still don’t buy because they don’t think prices have fallen enough.”
…
Riiiiight…it’s the “deflationary mindset” that causes people not to buy a house. It has nothing to do with the fact that **prices are still too high!**
Incentive gone, Oct. home sales dive
Worst showing since 1990 blamed on end of tax credit
By Jenifer B. McKim
Globe Staff / November 24, 2010
The Massachusetts housing market hit a deep freeze in October, with little more than 3,000 single-family homes sold, the lowest number for the month since 1990, according to data released yesterday.
The scarcity of buyers pushed sales down 28 percent compared with the same month in 2009, to 3,013, according to the Warren Group, a Boston company that tracks local real estate.
Condominium sales fell by 35 percent, compared with the previous October. Only 1,185 condos were sold statewide last month, Warren Group said.
Housing specialists attributed the poor showing to the end of the federal homebuyer tax credit, which provided qualified buyers with up to $8,000 if they closed on homes before Sept. 30. The deadline motivated many buyers to make deals earlier in the year.
Sales so far this year — from January through October — are up slightly, about 2.2 percent for single-family homes and 0.3 percent for condos. But the increases come from sales made during the first half of the year, according to Warren Group.
Timothy M. Warren Jr., the firm’s chief executive, said sales for the rest of the year are likely to remain unimpressive.
“We expect that a slow November and December will make 2010 a downer,’’ Warren said. “Sales volume has declined in four of the past five years.
…
I’m sure we will see some more incentives here soon as the realtors cry more.
Posted: Nov. 24, 2010
Michigan existing home sales fall 23.3% in October from 2009
By GRETA GUEST
Free Press Business Writer
U.S. home sales fell by 25.9% in October compared with last October when buyers were rushing to find a house before the first tax credit deadline.
Sales of existing homes, condominiums, townhomes and co-ops dropped 2.2% to a seasonally adjusted rate of 4.43 million from 4.53 million in September, according to the National Association of Realtors. The rate was 5.98 million in October 2009.
There were similar results for Michigan, where sales of existing homes dropped by 23.3% to 10,279 in October compared with 13,405 in October 2009, according to the Michigan Association of Realtors. The average home sales price last month was $108,561, up 3.5% from $104,901 in October 2009.
“The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales,” said Lawrence Yun, chief economist for the national association.
But Yun expects sales to steadily improve by spring to a more normal level of 5 million units a year. CLICK!
…
U.S. New Home Sales Pull Back Near Record Lows In October
11/24/2010 10:50 AM ET
(RTTNews) - New home sales in the U.S. unexpectedly showed a steep drop in the month of October, according to a report released by the Commerce Department on Wednesday, with new home sales pulling back near the record low levels seen in the Summer.
The Commerce Department said new home sales fell 8.1 percent to an annual rate of 283,000 in October from the revised September rate of 308,000. Economists had been expecting new home sales to rise to an annual rate of 314,000 from the 307,000 originally reported for the previous month.
With the unexpected decrease, the annual rate of new home sales in October is only 2.9 percent above the record low rate of 275,000 set in August.
The steep drop in new home sales reflected significantly lower sales in the West and the Midwest, where new home sales fell by 23.9 percent and 20.4 percent, respectively. New home sales in the Northeast also fell by 12.1 percent, while sales in the South edged up by 3.1 percent.
The report also showed a substantial drop in the median sales price of new houses, which fell 13.9 percent to $194,900 in October from $226,300 in September. The median sales price in October is down by 9.4 percent compared to the same month a year ago.
…
There’s that word “unexpectedly” again!
I predicted more “unexpectedly!”
I have but one comment regarding the abysmally dismal October 2010 new and existing home sales figures:
NOONE COULD HAVE SEEN IT COMING!
Sacré bleu!
Happy Thanksgiving, everyone!
Most of all, thanks to Ben for keeping this site up and running.
Hope everyone has a wonderful and safe Thanksgiving Day.
Yes, thanks Ben, even though this year has been a doozy, its great to find the HBB still here when I have the time to surf.
Hello Ca renter ……Happy Thanksgiving to you and everybody on this
long running Blog . I decided I’m going to eat all I want today ……
Don’t worry be happy !
Right back at ya!
…(Salt spray & Beers in Encinitas, months away… ;-( )
Just give us San Diego HBB’ers a holler when you’re down this way. Hope you and your family have a great weekend!
*URP* (pardon me)
Thanks Ben.
Happy Thanksgiving from the least grateful people on the face of the earth.
I have reached the conclusion that what matters is not how well off you are, but how well off you are compared with how well off you used to be.
Most Americans have been becoming no better off, or worse off, since the early 1970s, a process that has accelerated in recent years. Look at some of the state median household income declines from 2000 to 2009 cited in this article. And although those years are comparing an economic peak with an economic trough, Americans were worse off at another peak in 2007 than they had been in 2000, and I don’t see the 2007 to 2009 losses turning around that much anytime soon.
http://www.economist.com/node/17525707
Our family dinner isn’t till this evening so I’m off with my old 93′ ford pickup to haul several of my simpler tenants to one of those “free Turkey ” dinners at a local Church.
It’s unfortunate the holidays fall in the last of the months , when all the food stamps have been squandered away , as a good majority of them have . I think I’ll wear my old clothes so I’ll fit into the food line for lunch too.
That’s really nice of you. Good for you.
My grandparents came to America out of the wreckage of post WWI Europe.
I remember hearing story of nothing to eat but turnips - cooked in axle grease. My one grand uncle never left anything on his plate - ever. It was clean enough to put back in the cupboard. Nothing ever went to waste.
They came with nothing. Worked as a maid and as a cook. Then were wiped out again in the great depression.
Their (my) relatives in Europe had it even worse in WWII and post WWII. Begging for sugar, coats and money in letters (those that survived).
Then the iron curtain came down - and no contact for 40 years. Gulags are real. Secret police are real. Having absolutely no rights are freedoms are real.
Yes America - we have much to be thankful for….
I have a similar story. During the cold war I assumed we’d never hear from any of them again. Next summer I hope to go to Poland and meet them and their kids and grandkids for the first time. My part of the family had it really easy compared to them for the last 60 years.
The trouble is, things are so good here and have been for so long that it creates an atmosphere of unreality. Life isn’t real enough anymore, hence all the neuroses, ennui and craving for novelty.
Hate to say this, but I have to agree with your assessment.
We discussed this article a couple of days ago here. It led me to find the original data at the census bureau website.
I personally think America would be far easier to govern than the EU. But this is just one man’s opinion, of course…
Turkey! Wasup!
‘Can You Serve Turkey Over Kitty Litter?’ Birdbrains Call Thanksgiving Hotline
By Comcast News
Tue, 23 Nov 2010 18:29:40 GMT
Cooking a turkey isn’t rocket science, but you’d be surprised at how many birdbrained questions people have when it comes to actually preparing the Thanksgiving staple.
“What do I do if my turkey is on fire?” “When do I have to put my turkey in the oven to have it ready exactly by half-time?”
Headquartered in Naperville, Ill., the Talk-Line is open to callers in the U.S. and Canada throughout November and December by calling 800-BUTTERBALL.
Another time, she answered the phone to a frazzled new dad whose wife had just had a baby. The man was nervous that their thawing turkey had been left out too long while they were away at the hospital and when Clingman asked him how much it weighed, the distracted but proud papa replied, “The turkey or the baby?”
How could you eat an entire Thanksgiving dinner during a half-time?
College half-time, maybe. NFL half-time, no way!
I will chime on on the hopelessness of the economy
I used to get 30-40-50 responses a week posing my resume on CL….mostly spam make $100k with a fortune 500 company….the sky is the limit….well last week i got 2 yes even the spammers have given up in this eeeeeCON oh me.
My favorite Thanksgiving poem when I was 8 yrs old:
Thanksgiving
By Ralph Waldo Emerson
For each new morning with its light,
For rest and shelter of the night,
For health and food,
For love and friends,
For everything Thy goodness sends.
Thank you, wipeout. That was lovely. Happy Thanksgiving to you and yours, and to all HBBers, may the coming year bring good things to all.
Very nice. Thanks.
Excellent choice, awaiting. How very true.
The coffee is hot here in Boise, but it’s 10 degrees outside. The leaden sky with red sunrise looking over the ice and snow makes me think I stumbled onto the set of Doctor Zhivago. At least my Mosin-Nagant is still in the rack.
Is the field still blue?
Does a bear…in the woods?
I hope so. It wouldn`t look good on that blue turf. Hell of a team though.
Here’s to hoping you cross paths with a Larisa look-alike this holiday season, Dennis.
Just my luck she’ll be married to Strelnikov.
Same temps here in mizzou, Dennis…too cold to ski!
Hot coffee here. No wind, temps in the 20’s, fire
going nicely, dogs out, cats in, my wife is warm and
comfy in bed, and all is well with our world.
Everyone have a Thankful day, we do have so much
to be thankful for.
Have Wall Street banking officials perhaps been advising their Indian counterparts?
Sleuths bust housing loan scam
OUR SPECIAL CORRESPONDENT
Mumbai, Nov. 24: Sleuths from the Central Bureau of Investigation (CBI) today claimed to have busted a multi-crore housing loan scam after conducting search operations in five cities, including Calcutta.
Ramachandran R. Nair, chief executive officer of LIC Housing Finance, Naresh Chopra, investment secretary of the Life Insurance Corporation, and Maninder Singh Johar, the Delhi-based director of the Central Bank of India, were among eight people arrested for accepting illegal gratification, while processing loans to real estate developers and other companies.
The others arrested were R.N. Tayal, general manager of the Bank of India, Venkoba Gujjal, deputy general manager of Punjab National Bank (PNB), Delhi, Rajesh Sharma, chairman and managing director of Money Matters, and two other officials of the firm.
Money Matters Financial Services is a financial intermediary that was known earlier as Daiwa Securities.
The CBI refused to indicate the size of the scam, but it was clearly on a very large scale, prompting the normally reticent bureau to hold simultaneous press conferences in Delhi and Mumbai.
…
Good find.
“‘Tis a mere flesh wound!”
Where is Jas Jain when you need him?
‘Housing finance racket a graft case, not banking scam’
Indo-Asian News Service
New Delhi, November 25, 2010
First Published: 17:51 IST(25/11/2010)
Last Updated: 17:54 IST(25/11/2010)
Top policy makers and bankers on Thursday sought to underplay the arrest of senior officials of some financial institutions and banks, saying they were but isolated cases of graft and not a major scam that can shake the system. “I do not think we should make too much of a particular incident,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters in New Delhi. “Our banking system is well regulated. Both the finance ministry and the central bank will take appropriate action.”
Banking Secretary R Gopalan held a similar view and said the amount involved in these graft cases was insignificant, looking at the financial sector as a whole. “It’s a case of individual greed not a systemic failure,” Gopalan said.
Their comments came a day after top officers of some state-run banks as also financial institutions were arrested by the premier federal probe agency for allegedly accepting bribes to extend loans to corporate houses in a housing finance scam.
The Central Bureau of Investigation (CBI) said that officials arrested included the chief executive of LIC Housing Finance, a general manager of the Central Bank of India and senior officials of Punjab National Bank and Bank of India.
…
“It’s a case of individual greed not a systemic failure,”
Ha, 1.1. Billion “individuals”… let’s see what happens when a “certain percentage” place their “single deposit transactions” into their collective: “TrueBeliever’s™ / “TrueDeceiver’s™” Bank of India
I’m thankful to Indian banksters for providing some scandalous entertainment on a day when the U.S. banking system is closed for Thanksgiving. It is immediately obvious from the great disclaimers in the MSM that this scandal is not minor.
Firms invested loan amount in stocks: CBI
NDTV Correspondent & Agencies, November 25, 2010
Original
The Central Bureau of Investigation (CBI) on Thursday said the five firms accused in the housing loan scam took loans and in turn invested in stock markets. A total of Rs. 1,000 crore was issued to these firms.
Meanwhile, LIC chairman TS Vijayan on Thursday said a new CEO for its troubled arm LIC Housing Finance will be in place in the next few days, following the incumbent CEO Ramachandran Nair’s arrest in multi-crore loan scam on Wednesday.
“Our first priority is to support LIC HFC at this point of time. Towards this we have appointed the senior most general manager Chandrashehakar as the acting CEO. He will be assisted by two other GMs. The process of appointing a new CEO is on and a CEO will be in place in the next two-three days“, Vijayan said after an urgent board meeting of the country’s largest financial institution.
Vijayan, who will be flying into New Delhi this evening, also said LIC has set up an internal inquiry panel to look into the alleged wrongdoings by its senior officials, who were arrested by the CBI in the scam.
He, however, he did not specify when the enquiry panel will submit its report.
Asked whether he has been summoned by the Finance Minister, Vijayan said, he has no appointment with the FM as of now and he is going to Delhi for an agents convention being held in Noida.
While asserting that there is no systemic failure in the company as its asset quality has not been impaired by these arrests or loan exposures, he said, “this is not a scam per se as the issue pertains to a few individuals and not about the company.”
…
A “crore” is 10 million in Indian slang, so 1,000 crore is 10 Billion.
Or about $220 million at today’s exchange rate.
Southern California housing market weakens in October
Figures show prices barely rising and sales falling to near-record lows for the month. The median price for new and previously owned homes was $283,000, up 1.1% from October 2009 and a 4.2% drop from September.
November 17, 2010|By Alejandro Lazo, Los Angeles Times
Southern California’s median home price stumbled last month and sales fell to near-record lows for an October — a weak performance with little promise for improvement as the traditionally slow season for housing begins.
The October median price for all houses and condominiums in October was $283,000, a slight increase of 1.1% from the same month one year earlier. That made for the weakest year-over-year increase since prices began their ascent last year, San Diego real estate research firm MDA DataQuick said Tuesday. Prices fell 4.2% compared with September as measured by the median price, which is the point at which half the homes sell for more and half for less.
Beverage distributor Jenia Kokotuha said he had struggled to sell a property in Malibu over the last 10 months and recently dropped the price $400,000 to $5.5 million. Kokotuha said he was able to rent the property over the summer to an “up and coming” Hollywood couple, but he had not seen much interest otherwise.
“The market in Malibu has definitely decreased due to the economic woes,” said Kokotuha, the 33-year-old chief executive of BevMarketing Group, which markets sparkling wine and other drinks. “Most of the interest has been from people who would like to lease it, with an option to buy.”
…
“…dropped the price $400,000 to $5.5 million.”
That’s a pretty big haircut, yet only time will tell if a $400,000 price reduction off the guy’s wishing price will suffice to lure in a buyer. This is where things get really interesting: How do prices of multi-million dollar homes adjust downward to their new ‘market value’ in the wake of an epic bust?
It may turn out that $5.5 million is still way too high compared to the pool of prospective buyers at that price level, especially when compared to the glut of available homes. Redfin shows there are 393 homes priced to sell above $5m in LA County, 197 similarly priced in The OC and 127 in San Diego County. Are there enough CEOs, movie stars and professional athletes in transition to fill 717 SoCal mansions and penthouse condos?
An even more swollen slice of the SoCal housing inventory is in the $1m-$5m price range. Here are the numbers of listings in these ranges, according to Redfin:
LA County 3,130
The OC 1,569
San Diego County 1,671
TOTAL 6,370
That seems like an awful lot of high-end inventory to move over the holiday season. And then there is the question of how much shadow inventory lurks at the $1m+ price range — only the shadow knows!
“Dan Edstrom, of DTC Systems, who performs securitization audits, and who is giving a seminar in California next month, spent a year putting together a diagram that traces the path of his own house’s mortgage.”
He was on a show yesterday and although he did not come right out and say it, he wants the judge to say he doesn`t owe anyone money on his house because of the broken chain of title. Evidently he is going to start giving seminars to spread the word. It is amazing to me that in most cases that I know of people who purchased or refied houses well beyond their own ability to repay the loan under any circumstances on the belief that real estate only goes up, stopped paying for years, originally at the urging of the government. Now are starting to believe that they should be given the house free and clear because “The foreclosure mills and their clients have caused themselves and this entire country a profound mess,” When it comes to their end of the transaction, they would like everyone to “bless or at least overlook the fraud committed.”
Dormant foreclosure cases in Florida starting to trickle back into courts
By Kimberly Miller Palm Beach Post Staff Writer
Posted: 5:05 p.m. Wednesday, Nov. 24, 2010
Some large law firms that handle the state’s foreclosures are regrouping and re-filing court documents that were pulled earlier this fall, claiming that flaws have been fixed and hoping to move home repossessions forward.
But foreclosure defense attorneys are crying foul. They say judges shouldn’t allow simple do-overs on what they believe amounted to fraud upon the court when attorneys submitted “robo-signed” affidavits or other questionable documents that bank and law firm employees have said were not verified, reviewed or correctly notarized.
St. Petersburg defense attorney Matt Weidner said the re-filings are placing the courts in an “absurd” position, requiring judges to “bless or at least overlook the fraud committed.”
“The foreclosure mills and their clients have caused themselves and this entire country a profound mess,” Weidner said. “Now they want our courts to sign off on their misdeeds.”
MERS has a database on who owns the mortgage (Bank, MBS, etc…), and another on who services the mortgage, and the County Recorder’s Office is the database for the the liens on a property. When a home buyer signs all the paperwork, they acknowledge MERS is the mortgage entity that all the legal docs go to, and then MERS disburses all documentation electronically and snail mail to the servicer. These lawsuits will not hold up in court imho, because the borrower signed a legal document to pay a mortgage, and didn’t follow through. My understanding is that it doesn’t matter who owns the mortgage, in reality, it’s the default to the servicer that counts. I heard a MERS Executive discuss how these lawsuits are basically mental m*sturbation, and will not hold up in court.
Each mortgage is assigned a number, and although there are “trenches” of issues, the bottom line is if the buyer is in default, MERS and the SERVICERS call the shots, not all these Attorneys and their client homemoaners. Foreclosure processing issues on a delinquent loan doesn’t give someone a free home. I believe I heard not one case has won yet.
Let’s hope so, awaiting.
Of course, people who don’t pay their mortgages should be foreclosed on. I cannot begin to understand how these deadbeats think somebody owes them a free home (while renters are expected to continue paying their rent, BTW).
Ca Renter
The President/CEO of MERS hasn’t heard of one case winning yet, and he doubts any will. He was also an Attorney, who practiced R E Law his whole life. He thinks all these lawsuits are walking on thin ice.
I guess there is an Assignment Clause for Mortgages to MERS in the paperwork upon closing escrow (since 1997 or so), so he didn’t see a way to pierce the signed document.
I’m with you. I am sick of these deadbeats whining, while we renters have no whine and dine party. Who gave these guys an opt out of loses clause? Hey, I’ve lost $ in the markets before, and accepted my decisions. That’s life, get over it.
BTW, I’m not hungry this morning. I’m fasting for a few days to get all the hidden gluten and sugars out of my body. I feel like chit. I should have stuck with lean proteins and broccoli.
I roasted a Realtor™ for Thanksgiving and I liked it.
(This is a joke for the humor-impaired.)
How many pounds? Did you stuff the Realtor? Was it ready for half-time? Are you going to have Realtor sandwiches tomorrow?
What’s the difference between a Realtor sandwich and a s…. sandwich?
The bread?
(look behind you, exeter brought his own plate & “special” dressing!)
I wouldn’t let my English Lab feast on the disgusting beast.
Besides, we roast realtards every day….. right on this blog.
Happy Thanksgiving to all of you. I’m grateful to all of you for your intelligence and humor, and to Eddie for his idiocy and humor.
Love,
REhobbyist
Just six more blowout days on Wall Street like yesterday, and Eddie’s Christmas wish for DJIA = 12K will be granted!
http://tinyurl.com/y972dkw
EddieTard and RunJoeyRun…….. running from their own stupidity.
New York State home sales fall in October
Albany – Nov. 24, 2010 – “New York state home sales fell by 7 percent in October from the previous month and were nearly 30-percent off the October 2009 sales pace, according to preliminary single-family sales data accumulated by the New York State Association of REALTORS.”
http://nysar.com/content/press/pressreleases.htm?view=22&news_id=804&news=5
30% of your entire market gone????? BHWHAHAHAHAHAHAHAHAHAHA
Robert Powell
Oct. 29, 2010, 12:55 p.m. EDT
U.S. retirement system ranks 10th — out of 14
Commentary: Netherlands tops list; China comes in last
Give thanks for U.S. retirement system
By Robert Powell, MarketWatch
BOSTON (MarketWatch) — When it comes to retirement, we here in the U.S. can celebrate the fact that we’re not France. We presumably don’t have as much reason to riot in the streets. Then again, given the results of some research just released, we have no reason to be dancing in the streets, either.
The U.S. has the 10th best retirement-income system in the world. That’s the good news. The bad news is that, one, there were only 14 countries studied in the second annual Melbourne Mercer Global Pension Index and, two, the U.S. had the sixth best retirement system in the world in last year’s study.
What gives? The researchers blame the decline in asset values in 2008 (which may not be a factor at the moment) and the rise in government debt (which is probably an even greater factor now) as the key reasons why the U.S index fell to 57.3 in 2010, from 59.8 in 2009.
…
Netherlands tops list
Ha, (Hwy drags every out of the house & garage & storage)…Let’s see, doesn’t look like the Netherlands is tops in “TrueNeeds™” stuff,… made in China!
USA! …We’re #1!
USA! …We’re #1!
USA! …We’re #1!
USA! …We’re #10!
there were only 14 countries
Where would we(USA) be if they limited it to countries with 300 million + “taxpayers-who-don’t-cheat-on-their-gov’t-reported-income-forms”?
“Realtor charged with murder for hire scheme”
http://tinyurl.com/24fy382
The corruption and criminality of your typical Realtard knows no bounds.
This links to:
“Realtor charged with fraud, theft: East Berlin woman cashed checks for real estate properties into her own bank account, police said.”
Did they move the story?
Redfin has done a fantastic job improving their web site, making it much easier to do a point-and-click search of homes for sale on the MLS. Unfortunately, they haven’t yet figured out how to map shadow inventory, but maybe they can add that feature going forward.
I especially appreciate this little bit of honesty about the future direction of home prices:
San Diego Sweet Digs
September 29, 2010
Case-Shiller: Home Price Double-Dip Warning Signs Mount
It’s time for our monthly check-in of the S&P/Case-Shiller Home Price Indices (HPI). The Case-Shiller data is generally considered to be the most reliable measure of overall home price changes for a region, since they only consider repeat sales of homes when calculating their index, instead of looking at all the homes that sold in a given month.
For the full source data behind this post, hit the S&P/Case-Shiller website (requires free registration). For a more detailed explanation of how the Case-Shiller Home Price Index is calculated, check out their methodology pdf. Also remember that the data released on the last Tuesday of a given month is for the period two months prior (i.e. – July data is released in September).
Here are the basic Case-Shiller stats for San Diego County as of July:
July 2010
Month to Month: Up 0.7%
Year to Year: Up 9.3%
Prices at this level in: May 2003
Peak month: November 2005
Change from Peak: Down 34.1% in 56 months
Low Tier: Under $320,133
Mid Tier: $320,133 to $479,594
Hi Tier: Over $479,594
Seven of the twenty metro areas tracked by Case-Shiller saw a decrease in their HPI between June and July (vs. 2 May to June): Charlotte, Tampa, Portland, Dallas, Denver, Phoenix, and Las Vegas.
The interesting data point I brought to your attention last month is now officially a trend, with two months in a row showing the same movement in the YOY chart below. Prices are still rising, but they are rising more slowly. In late 2008 when home prices began falling more slowly, it was an early signal of the eventual price increases we saw in early 2009. If this keeps up we’re basically guaranteed a double dip in prices early next year.
…
I especially appreciate…“maniaeconomical” San Diego de-preciation which someday may lead to a Green Shoots Gets Stucco precipitation!
The Irish Green party threatens to upend the “austerity plan” that the EU wants.
Even worse…
Sinn Fein said two of its lawmakers met with IMF representatives Thursday and told them “they are neither wanted nor needed in Ireland.”
Sinn Fein isn’t exactly known for “peaceful tactics”.
http://www.google.com/hostednews/ap/article/ALeqM5hAL2oSDb-iRo5ZxyAff5zhV_lUnQ?docId=b1e6434d12e84884b22ce5edbea20590
That’s right. Delivering smackdowns to UK thuggery is their speciality.
Go IRA.
Does anyone remember the days when tourism was supposed to save the San Diego economy? Not so much anymore, apparently…
Belmont Park’s master leaseholder in dispute with city
By Matthew T. Hall, UNION-TRIBUNE
Wednesday, November 24, 2010 at 8:33 p.m.
Belmont Park on opening day — July 4, 1925. / Credit: San Diego Historical Society Photograph Collection
Belmont Park in Mission Beach is rich in history. It has one of California’s two wooden seaside roller coasters and what was once the world’s largest saltwater swimming pool.
But history doesn’t pay the bills.
Tom Lochtefeld, the site’s master leaseholder, filed for bankruptcy Nov. 3, seeking time to settle a rent dispute with the city of San Diego. The falling out could mean a nauseous turn of events for a once-troubled amusement park that has enjoyed a renaissance in recent years.
…
We visited the Hotel Del a couple of weeks back, on a glorious November day. Talk about your deserted beach! There were maybe fifty people total on the vast expanse of otherwise-empty sand.
TOURISM: Owner of Hotel del Coronado seeks to restructure debt
By PAT MAIO - pmaio@nctimes.com North County Times - Californian | Posted: Monday, November 8, 2010 8:21 pm
SAN DIEGO —- The owner of the landmark Hotel del Coronado is seeking to restructure more than $630 million in debt on the property in yet another sign of growing financial struggles in the hotel industry.
“We have no plans to file for bankruptcy at this point,” said Diane Morefield, a spokeswoman with Chicago-based Strategic Hotels & Resorts, the principal owner of the 757-room hotel. “There could be a variety of outcomes.”
…
“There could be a variety of outcomes.” “however,…none that start @ $149.00″
I gotta hand it to Disney, they keep their overpriced hotels in Anaheim (as high as $400 a night for a basic room) packed most of the time.
I remember one time I visited a sister of mine who lived in La Jolla for seven years up to around 2004. Another sister and I went with her to the Hotel Del Coronado - not stay overnight but just meander about. We loved it. We mingled around and stayed on the beach area and wished to never leave. We were there for the first time as teenagers in the 1970s. We all agreed that it’s one of the top places in California. We also like Yosemite National Park and Lake Tahoe and San Francisco.
How does a 30% decline in property values work out through the lens of massive leverage?
market pulse
Nov. 25, 2010, 3:36 a.m. EST
Spain foreclosures may triple in ‘11: report
MADRID (MarketWatch) — Foreclosed homes for sale in Spain may triple in number in 2011 owing to new accounting rules that push banks to shed depreciating assets more quickly, according to a report. Fernando Acuna, the co-founder of Pisos Embargoes de Bancos, which advertises repossessed properties, made the comment in an interview with Bloomberg News. He said about 100,000 repossessed houses and apartments are now on the market, with a quarter of them listed on his website, on behalf of 25 banks. In September, the Bank of Spain began requiring banks to account for a fall in property values of at least 30% if they keep those assets more than two years.
Nov. 24, 2010, 9:37 a.m. EST
‘Greve geral’ gets underway in Portugal
Portugal’s CDS spreads hit record levels as investor jitters remain
By Barbara Kollmeyer, MarketWatch
Union members block the entrance of a Volkswagen car factory during a general strike in Palmela, on the outskirts of Lisbon November 24, 2010.
MADRID (MarketWatch) — In echoes of labor unrest seen across Europe this year, Portugal’s public and private sectors united on Wednesday for what some are calling the country’s biggest-ever strike to protest government austerity measures.
The “Greve Geral”, or general strike, called by the General Confederation of the Portuguese Workers (CGTP) and the General Union of Workers (UGT), was estimated to potentially cost the economy between 200 million and 400 million euros ($266 million to $533 million), according to reports.
The biggest effect of the strike was on transportation and health-care facilities as workers stayed home, while some private companies also shut their doors. The website of the CGTP said 84% of metro lines were affected by strikes.
…
Is it still all contained these days?
Nov. 23, 2010, 12:54 p.m. EST
Contagion fears sink Spanish, Portuguese bonds
Spanish borrowing costs soar in auction; yield spreads widen
By William L. Watts, MarketWatch
LONDON (MarketWatch) — European government bond markets were in turmoil Tuesday, as Portuguese and Spanish yields followed Irish yields sharply higher as a result of growing doubts about the ability of politicians and policy makers to contain the euro zone’s sovereign-debt crisis.
Rising bond yields underline fears that the debt crisis, which has already forced Greece and Ireland to seek bailouts, will spread to other high-deficit countries, potentially shutting them out of credit markets.
“I think anything from here is possible,” said Kenneth Broux, senior market economist at Lloyds TSB.
…
Happy Thanksgiving and $200 THOUSAND dollars is student debt:
http://gawker.com/5696300/what-200000-in-student-debt-looks-like
More detail on the Countrywide/BoFA non-transferral to trusts issue:
http://www.dailyfinance.com/story/credit/bank-of-america-mortgage-document-errors-trouble-countrywide/19728402/
Sounds to me like the gold bubble’s days are numbered. Hoarding schemes always eventually blow up.
Behind Gold’s New Glister
The revolution that opened gold investing to the masses and helped spur a record-breaking bull market was hatched in an act of desperation by an obscure gold-mining trade group.
* MARKETS
* NOVEMBER 26, 2010
Behind Gold’s New Glister: Miners’ Big Bet on a Fund
By LIAM PLEVEN and CAROLYN CUI
The innovation that opened gold investing to the masses and helped spur this year’s record-breaking bull market was hatched in an act of desperation by a little-known gold-mining trade group.
The World Gold Council, created to promote gold, was fighting for survival. Its members—global gold-mining companies—were frustrated with the council’s inability to stem two decades of depressed prices and find buyers for a growing glut of the yellow metal. Eight years ago, they were considering withdrawing funding from the trade group, a move that would have effectively shut it down.
Chris Thompson, the group’s chairman, figured the council needed to expand the pool of gold buyers, particularly in the U.S. The idea of trading gold on an exchange had been floating around for years, but various hurdles had prevented it from taking off in America.
What the council eventually managed to create in those dark days surpassed its wildest dreams: SPDR Gold Shares, the exchange-traded fund launched in November 2004. The fund, known by its ticker symbol GLD, has ballooned into a $56.7 billion behemoth.
Today, GLD is the fastest-growing major investment fund ever, according to research company Lipper Inc., and one of the most active gold traders in the market. Its presence has helped gold—which settled down 0.33% in New York trading Wednesday, at $1,372.90 a troy ounce—triple in price in recent years to fresh all-time highs this month.
As the world’s largest private owner of bullion, GLD is soaking up $30 million of gold daily, stored in a London vault that now holds the equivalent of about six months’ worth of the world’s entire gold-mining production.
…
* FEDERATION FEATURE
* NOVEMBER 16, 2010
A Significant Letter
Prominent economists write a letter to Ben Bernanke opposing QE2.
By PETER WEHNER
The Wall Street Journal has an article about an open letter sent to Federal Reserve Chairman Ben Bernanke, a letter signed by leading economists and investors.
The letter says this:
Given the list of influential individuals signing this letter, it is sure to set the financial world (and therefore the political world) abuzz. That is all to the good. We need a vigorous debate about the Fed’s plan to buy $600 billion in additional U.S. Treasury bonds. It will, after all, have the effect of monetizing the debt and devaluing the dollar, and it risks triggering inflation. And oh, by the way, it won’t create jobs.
It is exactly the wrong policy at exactly the wrong time.
…
* EUROPE NEWS
* NOVEMBER 25, 2010
Europeans Clash on Bailout
EU Officials Propose Doubling $588 Billion Fund, But Germany Spurns Idea
By MARCUS WALKER And MATTHEW KARNITSCHNIG
BERLIN—European leaders sparred over whether to commit more funds to rescue struggling euro-zone countries, as financial-market pressure on the region’s weakest economies intensified.
The European Union’s executive arm, the Brussels-based EU Commission, floated a proposal on Wednesday to double the size of Europe’s €440 billion ($588 billion) bailout fund for euro-zone governments, but the idea was dismissed by Germany, according to people familiar with the situation.
The disagreement between Brussels and Berlin comes amid growing fears that the crisis of investor confidence in euro-zone governments, which has already forced Greece and Ireland to seek international bailouts, could expand sooner or later to Portugal and Spain.
Many investors and analysts doubt whether the EU has agreed to supply enough financing to rescue Spain if the country were to lose access to bond markets. Support from Germany, Europe’s largest economy and biggest contributor to the EU’s main bailout fund, would be essential for any funding increase.
…
More NK mischief to worry about over the holidays…
1:31a BREAKING
Artillery fire heard off S. Korean island: reports
Sounds more like REALITY Q&A
Realty Q&A
Nov. 26, 2010, 12:01 a.m. EST
Walking away from a mortgage
Sometimes strategic default is the lesser of two evils
By Lew Sichelman
Realty Q&A is a weekly column in which Lew Sichelman, a nationally syndicated columnist who has been covering the housing market for more than 35 years, responds to readers’ questions on real estate.
WASHINGTON (MarketWatch) — Question: I’m from Hawaii. I just happened to come across your article on when to walk away from a mortgage. So strange as I’ve been dwelling on this issue for a couple years now.
I know you’re really busy, but since you have been in this business for 35 years, do you have someone you would recommend who I can hire to help me figure out what to do with my Orlando condo I bought as a second home? I am totally upside down on that one, and moved out of my home to keep making the payments.
I have been thinking about walking away, as I really can’t afford to do this anymore, but I do want to know all the facts and be educated about this process before I get into more trouble.
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