Bits Bucket for January 19, 2011
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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Dollar Weakens Before U.S. Housing Report; Stocks, Index Futures Decline
The dollar weakened for a second day on speculation the U.S. housing market remains subdued. European stocks and U.S. futures fell as Chinese shares led emerging markets higher while commodities rallied to a two-year high.
Brown Burdens Mayors, Businesses by Unloading California Deficit on Cities
San Jose Mayor Chuck Reed can look out his City Hall window and see three Adobe Systems Inc. downtown towers, housing 2,000 workers, created in part with incentives California Governor Jerry Brown wants to eliminate.
The software maker built the towers with the help of $35 million in city redevelopment money, Reed said last week in a telephone interview. He and nine other California mayors plan to meet with Brown, himself mayor of Oakland from 1999 until 2007, to persuade him not to shut the authorities that provide low- cost funds for development. The idea is part of the governor’s budget proposal.
Tax-advantaged development financing provides one of the “few tools we have to keep jobs in California,” Reed said.
Brown’s “vast and historic” plan to realign state and local revenue has mayors seething and county executives wary about being saddled with the costs of fixing California’s broken budget. Some local leaders say the governor’s proposal will shift $5.9 billion in costs to counties while slashing $5.8 billion of social-services spending, increasing the burden on municipalities, to help close a $17.2 billion 2012 deficit.
At a very real level, we need for government to do less and or pay them more. So what we’re seeing here is that choice being forced on local, rather than the state government.
But…but…what about the *fishing museums*!
Fishing Museum Is Symbol of Waste in Georgia
http://www.nytimes.com/2011/01/18/us/18fishing.html
Of course the traditional item to cite like that is 500k from the highway trust fund to preserve Lawrence Welk’s birthplace.
Corporations have all governments over a barrell when it comes to corporate welfare. They can say “help me build my posh HQ, or I’ll move to another state.” If all states say no to the posh HQ, then corporations build their posh HQ in Bangalore or somewhere else. I see no solution to this, until the world becomes flat. Then corporations will have their choice of slaves, assuming there are any raw materials left.
We’re facing this now in our little burg. The old HP/Agilent site, which at one time employed 3000+ has been nearly empty for almosta decade now.
Some firm that does business with NASA is looking around Colorado for a place to set up shop, claiming that up to 7000 “clean energy” jobs will be created.
These “saviors” are pandering for corporate welfare and are playing the different candidates (about 10 different cities in Northern Colorado) against each other. The local MSM tells us that they will find the old HP site to their liking and that they will “fall in love with Loveland”.
Of course the 7000 promised jobs are pure BS.
http://www.reporterherald.com/news_story.asp?ID=30788
Here’s a nice little excerpt:
“Elvir Causevic, executive director of the Technology Acceleration Program at the lead agency behind the plan for ACE — the Aerospace Clean Energy Manufacturing and Innovation Center — earlier Tuesday had toured the Agilent Technologies campus, a candidate in the site selection process.
…
“You’ve ruined our plan,” Causevic told councilors and a City Hall audience. “We were going to go with greenfield, and take two years, and here you show up with this 800,000 square feet ready to go.”
Causevic’s comment does not by any means seal a deal between his agency, the Colorado Association for Manufacturing and Technology, and Loveland.
In fact, councilors later heard that consummating an agreement will take money, and it could be a lot.”
Well ain’t that a surprise!
Of course, I say let Ft. Collins, Windsor , Greeley or Longmont be the chumps holding the corporate welfare bag, their citizens on the hook for the millions their communities will have to borrow and fork over to “ACE”. There’s no reason why Lovelanders can’t commute to jobs in those communities (assuming those promised jobs materialize).
Yup, just a part of the business plan nowadays. They’re aren’t fools.
I like the use of the word “consummate.” It brings in the exact connotation of what this is about.
“assuming there are any raw materials left.”
I can see landfill mining (AKA scavenging) as a viable business in the future. There will be plenty of cheap, hungry labor available.
“I can see landfill mining (AKA scavenging) as a viable business in the future.”
Thank goodness we’re saving for the future _somehow_—even if only in our landfills.
yep…it’s all the posh HQs CA built that got them into this trouble.
you nailed it.
Fort Worth gave a tax break to RadioShack for merely signing a 3 year lease.
“I see no solution to this, until the world becomes flat.”
Or until the cost of shipping goods and materials transglobally becomes prohibitive. (post peak cheap oil) Then the pressure will be to slowly revert back to start to finish production in single factories with labor force geographically close to end consumer.
+1
And then we will have nothing to fight over. Sounds like a plan to me.
If all states say no to the posh HQ, then corporations build their posh HQ in Bangalore or somewhere else. I see no solution to this,…..
I see an easy solution. First, the Courts should have been much more active in preventing private companies from getting special treatment. simply make it illegal, everywhere. You can’t make “special deals”…
Everyone gets treated equally, therefore, there is no financial incentive for businesses to pick on place over another. It must find things like quality of life and education, etc as the basis for establishing a business. they also won’t have an incentive to pack their bags and go elsewhere, unless they find a really cheap place where taxes are low for EVERYONE.
As for moving oversees, place a huge import tax on everything. These businesses all want to make stuff somewhere else and ship it back to have us as customers. This will create a disincentive to move abroad with our factories. That’s how you “level the playing field”….although I hate sports references. It should also be illegal to use taxpayer money to build stadiums for private use. If the teams want them, they can pay for them. And don’t give me any of that “multiplier effect” from increased business. It’s a scam. All these ventures have NEGATIVE financial impact on their tax base.
Isn’t that what people have been yapping about for years get state government off our backs…home rule…decisions should be local?
well you got it…
Brown Burdens Mayors, Businesses by Unloading California Deficit on Cities
Brown was Governor when Prop 13 passed. His solution to bankrupt cities and counties was to shift their burden onto the state government which at the time ran a surplus.
The surplus didn’t last long.
So now Brown is going to reverse his own set of mandates from 3 decades ago.
Hey, at least he learned a lesson!
Nothing new here, sh*t rolls down hill. Force the crisis to emerge at a lower level. Strong localities will muddle through, the weak will BK.
Boom towns and ghost towns are, after all, part of American lore.
Strong localities will muddle through, the weak will BK. Boom towns and ghost towns are, after all, part of American lore ??
Exactly ejohn…..I just read something the other day that the insurance industry & Medicare are wanting the hospitals to consolidate to improve efficiencies like making better use of state of the art equipment…Small hospitals. most in small towns a rural communities just cannot afford this new equipment….
Congressmen from rural districts aint gonna like that.
Many small hospitals (they are called critical access hospitals if you want to look it up) get special reimbursement rates from Medicare. They get their actual costs (as defined by their accounting rules, so it might not be actual cost the way a normal person understands it) plus a percent or so instead of the Medicare reimbursement schedule. Because of the special reimbursement rate, they have just about zero incentive to reduce costs. And if you go above a certain number of beds (I think it is 20) you get kicked out of the program. So expect ice storms in Hades before you see too much in the way of consolidation.
San Jose Mayor Chuck Reed can look out his City Hall window and see three Adobe Systems Inc. downtown towers, housing 2,000 workers, created in part with incentives California Governor Jerry Brown wants to eliminate.
Would it be possible to incentivize Adobe to come up with a better web editor than Dreamweaver? And, oh-please-oh-please, to improve Illustrator so that it measures up to what Freehand was?
Oh, yes, a girl can always dream…
I’m a Republican but Jerry Brown is my hero. You just never know what he’s going to do next..lol
I thought California didn’t need “incentives” for people and companies to move there?
Locally, the Ford guys announced that they will stay in Claycomo, thanks to getting $400 million bucks from the state of Missouri.
Where’s this 400 mill coming from?
Basically, making the Ford guys buy their jobs. Again.
(Bloomberg) - Ally Financial Inc.’s GMAC Mortgage unit agreed to drop about 250 foreclosure cases in Maryland that were tied to defective affidavits, the company said Tuesday. “We’re dismissing the cases but they will be re-filed,” Proia said. “The intention is to re-file the cases to go through the new foreclosure procedures in Maryland.”
GMAC’s decision comes after a Maryland nonprofit, Civil Justice Inc., agreed to drop a class-action lawsuit on behalf of homeowners whose foreclosure documents were signed by GMAC employee Jeffrey Stephan, Anthony DePastina, an attorney for Civil Justice, said in a phone interview.
Stephan said in sworn depositions last year and in 2009 that he signed as many as 10,000 affidavits a month without checking their accuracy in a practice that has come to be known as “robo-signing.”
The SEC Just Hired This Woman To Oversee Asset Managers — Guess Which Bank She’s From.
Goldman Sachs’ former Asset Management CIO, Eileen Rominger, just got a new job as the head of the SEC division that oversees asset managers and hedge funds, Dow Jones reports (via FoxBusiness).
Rominger managed equity funds at Goldman before she was made chief investment officer for its global portfolio management teams.
lol
I understand hiring people who have knowledge of how business is done, but you should also have complete outsiders to ask the dumb questions. Such as, why is it done that way?
me me emeeeee i need a job and boy can I ask some DUMB questions….
Commodities Boom Signals Growth as U.S. Companies Benefit
U.S. investors should welcome, not fear, climbing commodity prices.
The increases are “largely a reflection of the fact that the pace of economic growth, particularly in the U.S., has picked up,” said Nariman Behravesh, chief economist at consultants IHS in Lexington, Massachusetts, and a former Federal Reserve official who has been covering the global economy for more than 35 years. “It’s not something to be worried about.”
Since the new year the MSM eCONomists has tried to tell us…
The middle class (consumers) doesn’t matter
High commodity price (fuel & food) don’t matter
What a way to start the new year.
Maybe the MSM eCONomists don’t matter too, eh?
“U.S. investors should welcome, not fear, climbing commodity prices.”
The continual Doublespeak becomes mind numbing over time.
Ask investors in Tunisia how those rising prices worked out over there.
It’s fine speak if you’re a “US investor.” If you’re a “US unemployed,” not so much.
“If you’re a ‘US unemployed’, not so much.”
A job is a terrible thing to waste.
I am amazed at the number of people I work with who are hoping to be enticed by an early-retirement offer so they can leave their cushy and well-paid jobs.
Where are you combo? Send these ungrateful cush folks to DC, where they can retire and move away, leaving all the housing* to meeeeeeeeeee!!
———-
*and I mean real housing, not Condos for Cuties.
I am amazed at the number of people I work with who are hoping to be enticed by an early-retirement offer so they can leave their cushy and well-paid jobs.
To them I have this to say:
Be careful what you wish for. I know of more than a few people, including some in my own family, who went into mental and physical declines after they retired.
“Be careful what you wish for. I know of more than a few people, including some in my own family, who went into mental and physical declines after they retired.”
Slim,
What about those of us who have already experienced the decline?
Every friend of mine who has retired tells me it’s wonderful and I should retire right now. Of course their husbands are still working.
Of course their husbands are still working.
And, let me guess: The husbands are still working because they need some time away from the wives and their endless “honey-do” lists.
I would rather work than be in this retirement mode that’s for sure . I know people that love the retirement mode ,but it’s just doesn’t suit my personality very well I guess .
Well, the bitter truth be known, I work more
and harder than before retirement, it’s just
that I want to, not that I have to.
One more sign of mental deterioration.
A mechanic that I know retired.
After six weeks of him hanging around the house, his wife was going around all the area airports, trying to find him a new job.
After six weeks of him hanging around the house, his wife was going around all the area airports, trying to find him a new job.
Sounds like what Betty Ford told Jerry after he was no longer President of the United States: “I married you for life, but not for lunch.”
“Be careful what you wish for. I know of more than a few people, including some in my own family, who went into mental and physical declines after they retired.”
I’m convinced that our whole model of retirement is fundamentally flawed. The abruptness of the change from working to non-working is in large part what is so bad for people; it is not uncommon for it to lead to an identity crisis.
I think a better model would a gradual shift from working to non-working; in other words, first drop back to four days a week, then three days a week, etc etc.
This would be great for people, but unfortunately, not many businesses are able or willing to go along with this.
For a couple, a happy retirement depends on a number of things IMO.
1. You have adequate assets and monthly income. This may mean downsizing/moving to a lower cost state as we did, so outflow doesn’t exceed income.
2. You each have interests (more than one) that don’t involve the spouse. If you and your spouse also have common/shared interests, that’s a bonus.
3. You both have relatively good health going into retirement. That usually runs out before the money runs out. The lucky ones drop dead on the tennis court.
4. You know a number of other retirees, or you start meeting them very soon after you retire. I can’t overemphasize the benefit of living in an “active retirement” community where most of the other folks are your age. OTOH, in Sarasota we were the only geezers in our neighborhood of newly-built houses, so we never became friends with any of our neighbors. Here, it’s common for the survivor to stay in the community after the spouse has died, because of the close support network we all have.
We’ll be starting our 7th year of full retirement here later this year. Only time we get bored is after about the third cold, sunless, dreary winter day in a row.
Saw this coming.
Intially, the FED tells us growth is causing the inflation.
Next, inflation continues to gain momentum afterwhich the FED says they didn’t see the inflation coming.
“It’s not something to be worried about.”
Its the only thing you should be worried about.
The Eight States Running Out of Homebuyers
by Douglas A. McIntyre, Michael B. Sauter and Charles B. Stockdale
Tuesday, January 18, 2011
http://finance.yahoo.com/real-estate/article/111848/the-eight-states-running-out-of-homebuyers?mod=realestate-buy - -
Michigan Nevada Arizona California Illinois Georgia Oregon Florida.
The single biggest problem in the U.S. real estate market is simple: There are very few homebuyers…That seems obvious, but the “buyers’ strike” has caused house prices to drop, along with an epidemic of foreclosures.
Way to stay on the ball, MSM. HBB knew this four years ago.
But: “buyer’s strike?”
That whole article is rubbish. I’m loathe to say that reading is ever a complete waste of time, but reading that article sure was!
NYC poised for a rapid recovery? Buyers striking? Do they really believe that they write or are they just trying to put food on the table?
But: “buyer’s strike?”
More like a “jobs that pay enough to afford the overpriced houses” strike.
Right. Cut the price and the strike will be over.
“buyer’s strike?” No, they have already used up the buyers with a pulse.
Get Ready For Another Housing Crash
Published: Tuesday, 18 Jan 2011 | 11:49 AM ET
By: John Carney
Senior Editor, CNBC.com
The best evidence that we’re headed for a double-dip in housing is the quality of the mortgages during the recent period in which the housing market seemed to improve in many areas.
In the Freddie Mac review of Citigroup’s performing loans that I mentioned earlier today, the portion rated as “Not Acceptable Quality” was as high as 32 percent in the fourth quarter of 2009.
Now there have been indications in the past that a mini-housing bubble was being built during that period. The Federal Housing Authority, for instance, was backing some very questionable loans. The home-buyer tax credit was allowing individuals to buy loans with no money down. All the bad practices of the 2005-2007 bubble seemed to be back again.
It would have been great if Freddie Max had taken the time to identify the “not acceptable quality” mortgages BEFORE backing them with taxpayer money.
If you don’t bust corrupt entities they continue to reek their
damage . Isn’t the basic psychology of Banks/Wall Street to
pass crap to someone else . No longer is there a feeling of
responsibility to other entities ,but just a feeling of what can I get away with ,which is the mind-set of a criminal actually
that is a menace to Society .
When financial institutions/Investment houses think that their only responsibility is to make quick money (by no means the good old fashion way )
,and they will take advantage of any loophole
in the law or de-regulation that allows them to be more skilled at legal con artistry and fleecing than financial services
than we are doomed if we allow this .
These corrupt entities have proven that they can’t regulated themselves , if anything they required regulation and constant over site and they are a menace to Society much along the same lines as the Drug Cartel is .
Not only were their financial instruments of mass destruction a fraud ,but they created one of the biggest Ponzi-schemes in History with fake leverage and a financial crisis that ended up being a wealth destroyer for most Americans . Is this a value add on to a Society ,I think not .
Since these entities control the Government ,and even get bailed out by the government ,its useless to say its the Governments fault to try to transfer blame because they are all one entity scratching each others back . Does the fact that a policeman wasn’t there to catch a criminal lesson the crime of the criminal ?
I’m still in the market. I am ready, willing and able to buy. Let’s talk about the PRICE. $30 per sq ft? I’m in. thank-you.
“Buyers Strike”
First they strike pay dirt - sorry I meant dirt poor pay, then they go on credit score sabbatical.
Finally, they refuse to buy!
While I appreciate the author not bottom calling and encouraging purchase right now, the author doesn’t seem to understand the data. Perhaps it is because the conclusions do not seem to be based on historical data going back for much more than 5 years. It blames the whole financial crisis on a home buyers “strike” which has caused “devastation.” The funny thing about it is that he views this conclusion as “simple.” No talk about returning to normal sales values, continued lack of affordability even if unemployment levels rose to normal levels, the surge in investor owned and second home property in the last 10 years, changing liquidity and underwriting standards, the threat of rising interest rates, etc. Rather it seems to be focusing on jobs. While I agree jobs should be the focus, and historically has been, the author should have recognized that the appreciation was primarily a leverage construct and not one caused by low unemployment and wage inflation.
You get what you pay for holds true in hotels. Had to bail out 12 days early from extended stay. Next door neighbor was living like a college dorm resident. He and his buddy who has his own room would finish a case of bud per day. Tv on at 3am and so on. so last night I moved two hotels over. I am paying a bit more. I don’t think anyone is on this floor, the top, besides myself and I have a corner unit. I set it up for 14 days in case I encounter similar dregs.
Beats the he’ll out of a year lease and then to be stuck with a construction worker beer addicted neighbor
He must be in his 20s. He will be lucky if he looks younger than 60 by age 40.
“He must be in his 20s. He will be lucky if he looks younger than 60 by age 40.”
Ahh, but think of the memories Bill.
He’ll remember the girls being more plentiful and prettier than they really were.
Also, what is it about the “sand states” that attracts riff-raff like sugar attracks flies?
lol, esp florida.
Personally, I think it’s because the truly shiftless know they can sleep on the beach and not die from the cold. I think it’s that simple.
IMO, there’s an archetype in our lizard brains that sez “warm breezes, sun and palm treeeezzz …soak up the sun and you get some breathing rooommm from having to find your next meeeaaalll…you don’t have to metabolize tissue for heeeettt…”
The kicker: given that bulky protective clothing is minimal, and there is a hefty older contingent frailer and slower than you are, it’s ez-er to pick pockets, shoplift, grab purses, and run away than if you were in New York City. Or in any of the Northeast/Gary Indiana ghettoes whence you sprang forth with the others in your litter.
If you are a younger reptile, there is lots of skin on view for free.
THAT’s why I think scuzzballs and cons gravitate to the sand states. Warmth is the final refuge of the played out, cf Ratso Rizzo in Midnight Cowboy.
Also, what is it about the “sand states” that attracts riff-raff like sugar attracks flies?
Come on now, I think Bill’s a nice guy at heart :-).
LOL
It’s like they say….if you remember the 60’s you didn’t really experience them.
“what is it about the “sand states” that attracts riff-raff like sugar attracks flies?”
Bathing suits?
Get Ready For Another Housing Crash
Published: Tuesday, 18 Jan 2011 | 11:49 AM ET
By: John Carney
Senior Editor, CNBC.com
The best evidence that we’re headed for a double-dip in housing is the quality of the mortgages during the recent period in which the housing market seemed to improve in many areas.
In the Freddie Mac review of Citigroup’s performing loans that I mentioned earlier today, the portion rated as “Not Acceptable Quality” was as high as 32 percent in the fourth quarter of 2009.
Now there have been indications in the past that a mini-housing bubble was being built during that period. The Federal Housing Authority, for instance, was backing some very questionable loans. The home-buyer tax credit was allowing individuals to buy loans with no money down. All the bad practices of the 2005-2007 bubble seemed to be back again.
And now we know that this perception was correct. Mortgage quality had fallen off a cliff. If Citigroup’s mortgages were this bad, we can expect the same level of problems at Wells Fargo [WFC 32.49 -0.26 (-0.79%) ], Bank of America [BAC 15.00 -0.25 (-1.64%) ] and every other major US mortgage lender.
What does this mean for housing? It implies that home prices may be due for a another crash, as lenders try to avoid incurring losses from mortgage put-backs by raising credit quality once again. Much of the supposed health of the housing market may have been just another easy money illusion.
http://www.cnbc.com/id/41133468 - -
Greetings from Hawaii - the Big Island. Lots of for sale signs up around here, and many signs that say - “water view lots for sale,” that lead to neighborhoods where the infrastructure is not complete. One could view that as a sign of new development, but the signs look somewhat old and no houses appear to be in the construction phase. The expensive luxury shopping districts are fairly deserted, but you can never find a spot at Walmart. One of the reasons I booked is that so many hotels were offering 50% off deals and can now see why. I asked to change rooms, and they said I pretty much had my pick between floors and views. I asked them if it would be a problem I would be diving most of the time and thus couldnt vacate my old room until late at night and they responded it was not an issue. The diving has been good off shore, but near the coast storm surge is decreasing visability and creating rip currents. Whales are plentiful and seem unphased by Citi’s disappointment.
Again, proof that a thriving middle class is needed, contrary to Citibank’s claims to the contrary.
I highly recommend you take one of those day tours that ends up on the top of the volcano where the telescopes are.
It seems a bit pricey but it’s truly a once in a lifetime experience that is worth the expense. It’s more or less a whole day tour as they take you around to a number of scenic places in the interior (on roads were you are not supposed to take a rental car) and pace how quickly you go up in elevation (since you are going from sea level up to about 14000 feet). And take a sweater/jacket, I took the tour in April and by the time we got to the top it was snowing!!! Unforgettable.
Snow is visable at the top, and that tour is on my list. We did the drive around the Island a few days ago to see Volcanoes National Park and various other sites which took about 15 hours and I’m trying to decide if I want another long road trip (I think the trip around the Island is around 7 hours without stopping). I still am not used to the time change yet. I cant sleep past 4 am, despite the face I am going to bed at midnight or later. I appeciate your suggestion and will take it into further consideration. Might as well see everything while I am here. Did you go night diving and see the giant manta rays near the Kona airport? I did a combined night manta ray and deep reef dive. Spectacular. Saw many different species for the first time.
Not much of a swimmer, so no diving for me unfortunately, but sounds great.
Didn’t make it all the way around the island, but everything was beautiful. Was traveling with military friends so we were able to stay in the national park at Kilauea Military Camp.
There are some nice hikes around the volcano caldera and going to see the active lava is great.
Also there are some orchid growers that can be interesting to visit.
And for fun or kitsch souvenirs try Hilo Hatties, bought some great “aloha wear” dresses there.
Tried to do the telescope trip on the Big Island. Booked it for one of the 15 or so days a year when the cloud cover kills the visibility. Ended up checking out the lava at night and then talk story with the B&B owners and their friends. Not what we were looking for, but a pretty good evening all around.
In our younger, carefree days before kids (5 years ago) we took the rental car up to the top of mauna kea. We’ve done a lot of hiking and climbed mountains and what have you, but the feeling you have up there at the top with the ocean surrounding you, maui in the distance..undescribable for me, a non-poet.
If there’s snow now I imagine taking a Pontiac Vibe up there would be a bad idea right now…
another place we weren’t supposed to go with the rental car was “south point”–that was a cool ride as well and worth the trip. I love the Big Island.
I took my rental Altima to South Point and watched the sunrise two days ago. There were two bumps after which I had to make sure I still had inflated tires and a bumper. Luckily, no issues. Did you jump off the cliffs? Pretty cool.
They had significant snowfall last night both here and on Maui, which I can see from the beach. Today is rained out with flash flood warnings, so I am sitting on the covered balcony, venturing out to the beach to see the turtles and the rainbows during the rare intervals in which there are breaks in the clouds. Its a cool 65 today compared to the normal 82.
elevation (since you are going from sea level up to about 14000 feet) ???
Haleakala bike ride down the hill was a blast….
We went to Maui Sheraton in Nov. and they gave us the best room in the house, out on the point for cheap. Those rooms were $1200/night a few years ago but we paid a few hundred. The hotel was busy but apparently no-one could afford what we paid in the whole resort. The flight was crazy cheap. Demand an upgrade.
We did Maui TWICE last year. Flights from Portland were $280 RT. Those days appear gone. Here’s to hoping for a double dip!
Thanks for the news Natalie. Big Island is probably our next trip. Have you been diving at Molokini off Maui? I’m not certified but have gone diving there 3 times. (unfortunately I don’t think ANYONE takes uncertified divers anymore, at least not to Molokini) One of my best memories is when, after I demonstrated I could hold my own down there, the boat I was on had an extra dive master who was told to take me solo. The other DM took about 8 people with her, LOL. While they went to the usual sites, he took me to the edge of the crater about 40 feet down to look into the blue abyss about 400 feet below. In…credible. Saw some white-tipped reef sharks and a HUGE trevally. I’ve heard Molokini’s back side is amazing with lots of big “fish” too.
Another fond memory is hearing the whales underwater while snorkeling the south shore near Ahihi. ….sigh….
A sea turtle swam right toward me off the coast of Maui while I was snorkling on another trip. I had to swim backwards and he was still barely 3 feet away. Got some great pictures on a stupid little underwater single use film camera.
I didn’t know the Big Island had a Mall * Wart. Costco yeah, but Wal*Mart?
That is one place I would love to live if not in NW Oregon where we are now. Somewhere on the cusp of the weather. That DR Horton development up north must be cheap by now, yeah?
From the Jan 14th Energy Daily (no link, because it’s behind a pay wall):
———-
An unsettled Commodity Futures Trading Commission voted Thursday to propose a phased approach for setting position limits for speculators in energy and other commodity futures markets. (By George Lobsenz)
———-
I don’t want to paste the rest of the article, but it goes on to say:
1. The new position limits are required by the new Dodd-Frank financial reform law.
2. Dem Senators warned the Commissioners not to cave to Wall Street lobbyists and make limits too high.
3. Commissioners doubt that the commodity price spikes in 2008 were caused by runaway speculation, and therefore doubt that position limits are needed. (”my fear is that, at best, position limits are a cure for a disease that does not exist or at worst, a placebo for one that does.”)
4. Some people think that position limits will drop the price of commodities. Commissioners say no.
5. But Commissioners voted to set limits anyway, simply to gather more info. They figure that that if speculation WAS the cause of the spikes, then setting limits would stop spikes.
6. Because of the uncertainty, the Commission proposed only one concrete limit: “speculative ’spot-month’ positions to 25 percent of the deliverable supply for a given commodity, with a conditional spot-month limit of five times that amount for entities with positions in exclusively cash-settled contracts.”
7. There was also a limit that ‘“non-spot-month” position limits of 10 percent of open interest in a covered contract up to the first 25,000 contracts and 2.5 percent of open interest thereafter.”
I don’t understand all of this. But I admit I like what I’m hearing. I do not look kindly on price speculation in necessary goods like oil and foodstuffs. The rich are profiting off the sick and hungry.
“The rich are profiting off the sick and hungry.”
The more things “change” the more they stay the same.
Thats the american way I thought.
“6. Because of the uncertainty, the Commission proposed only one concrete limit: “speculative ’spot-month’ positions to 25 percent of the deliverable supply for a given commodity, with a conditional spot-month limit of five times that amount for entities with positions in exclusively cash-settled contracts.””
Am I reading this right: for cach-settled contracts, one entity is allowed to control 125% of the deliverable supply???
They call that a LIMIT??? You are still allowed to buy more than ALL of the deliverable supply??
I think that you can only own 25% of deliverable supply if you’re using leverage. But if you have cash, you can buy all the current deliverable + 25% of the futures, (?) which I guess is important for foodstuff like the wheat harvest. And you can only own those commodities for a month, and then you have to sell, maybe to prevent manipulating supply to drive up price.(?)
I agree…if this is a “limit,” the WTF were they doing before?!? I’m afraid this is beyond me. Prof Bear would know this. Whatever it is, it sounds like cash is king again.
Does anyone else see taxes in general worldwide doing anything else except going up short, medium, and long term, to raise revenue for taxing authorities to manage the effects of inflation and simultaneous recession/depression ?
I’m thinking that if you are sixty or older and have anything in an IRA,might as well take it out and pay the taxes on it soooner rather than later. Then, re-invest it wisely and discretely, hopefully.
This is why my 401K contributions are to a Roth 401K. Granted, they could change the rules at any time, and probably will. We’ll see how it turns out.
Some places have actually cut taxes recently - Slovakia and Australia come to mind.
Many places have instituted flat taxes - Russia comes to mind.
Cutting taxes is a way of attracting investment. The Celtic Tiger (Ireland) used it quite effectively for 20 years.
Others will too.
Cutting taxes is a way of attracting investment. The Celtic Tiger (Ireland) used it quite effectively for 20 years.
Yes and look how well it worked for them???
2banana and taxes. He’s got only one drum, but he bangs that MF!
Banana wants a banana republic for everyone but his corporate masters.
It worked out pretty well, until their primary business became real estate speculation.
This “inflation and simultaneous recession/depression” will, down the road a bit, set up a situation whereby stocks will take a huge tumble and those with cash will get to reap a large harvest of quality issues at fire sale prices.
The global shortage of cash, as implied by your observation that taxes worldwide will be going up short, medium and long term, is going to set up a huge drawn-out stock market decline as the short-term needs for ready cash by stockholders will outweigh the long-term needs for financial security.
Governments around the world will have to pick their poison:
1) Higher taxes/ less spending, which can be hard when a large portion of your populace is dirt poor
2) Print money, which causes inflation and … especially hurts the dirt poor.
Either way they could end up doing a Tunisia, with riots in the streets and the president/prime minister/king fleeing for his/her life.
ben bernake said there is no inflation, so he prints more money.
“Either way they could end up doing a Tunisia, with riots in the streets and the president/prime minster/king fleeing for his/he life.”
Which sets up near perfect conditions for fire sales of stocks (for those who have the cash, that is.)
I’m not sure I’d want to buy any Tunisian stocks right now.
Also, when inflation was rampant in Mexico no one held onto cash. The precious was very popular back then (70’s), its closing price was reported daily on the nightly news.
When inflation was rampant in Mexico it was localized and there was still a lot of consumption in the US. We have a global currency devaluation going on with the printed dollars being ever more concentrated.
We are at the tipping point.
Rising gas and oil prices will leave little for other things and we will see a global drop in demand and rising unemployment.
I read an article this AM talking about this in China.
Actually, I think that inflation is worse on the middle class. They can have a life savings wiped out in a few months time of hyper inflation. The poor live from paycheck to paycheck they do not prosper in inflated times but their pay does go up with inflation. Right now people that put a little money in savings are hit the hardest. The artificially low returns on saved money, it is hurting them and is killing the social security system since the trust fund only invests in government bonds. These artificially low rates caused the housing bubble and are a bigger reason for the social security crisis than the usual suspects, living longer etc. A decent return would have created an adequate trust fund.
“The poor live from paycheck to paycheck they do not prosper in inflated times but their pay does go up with inflation.”
When I lived in Mexico it seemed to me that the poor suffered more under high inflation. Of course, the USA isn’t Mexico.
“invests in government bonds.”
Invests??? No, the is gone—spent long ago. It can only be replaced in the future via additional taxation or borrowing.
At some point the stock markets have to reset themselves, in accordance with the real value of the assets underlying the stocks. But the dead-cat bounce of March 2009 just never seems to end.
I would not worry about it, but I have some money in a 401(k) that I would like to invest in something before I retire in 20 years.
They’re not making any more land.
I think one of the drivers of the housing bubble was the psychology of the 201K holders. After stocks tanked, they were looking for something more tangible to invest in. And boomers remember the inflation of the 70s when saving for a down payment was like swimming upstream.
I would gladly pay the 10% penalty on my 401K right now. I rather have half now than nothing later. I called my plan’s administrator. According to them there’s no way I can get that money out without quitting my job (not an option). Any bright ideas, anybody?
1. taxes will rise significantly while federal expenditures will drop significantly to make up for a 41% federal funding shortfall.
2. the largest budget items are: SS, medicare and defense. The interest on the debt is off limits. So cuts will have to be made in the first 3 mentioned. Those cuts will be voluntary or otherwise but they will come to a retiement and medicare plan near you.
3. I have the feeling that government will in some way, shape or form confiscate 401K accounts to make up for the funding shortfall. Maybe a solidarity tax on withdrawls, maybe outright theft, means testing and witholding regular scheduled SS payments, etc.
There’s simply not enough revenue to keep all the promises that have been made in the past.
The only other way out is running the printing press to cover the difference. See Mish “ECB Allows Irish Central Bank to Counterfeit 51 Billion Euros”
I wish my 401k had a Roth option.
“There’s simply not enough revenue to keep all the promises that have been made in the past.”
I think the problem is demographic. And I think boomers will have to accept less than our parents got in their old age. But our children may be OK if we do. I think part of the solution could be for boomers to shift into job sharing/mentoring and to work part time past the traditional retirement age of 65. We could continue to pay into SS and Medicare while collecting benefits. Maybe reduce SS benefits by 20 cents for every dollar earned after full retirement age (as defined by SSA).
Job sharing with young workers would reduce unemployment and pass on knowledge. Young workers would gain experience to enable them to move into full time work. Older workers would have more free time to pursue other interests.
Does anyone else see taxes in general worldwide doing anything else except going up
What if you’re looking for a posh HQ in Northern Colorado?
I wouldn’t call the old Agilent site in Loveland “posh”
Functional, well built … yes
Posh … no
but whatever HQ they decide on, I predict that their taxes will go DOWN!
One of the advantages of retirement accounts is that they generally are not subject to seizure in personal bankruptcy. I think In Montana knows a lot more about bankruptcy law than I do, so maybe he will comment.
Cashing out an IRA into “regular money” may put these funds at risk. Rolling them over into a Roth may permit you to pay taxes now and still protect them.
Depends on state law. Montana makes 401ks and IRAs including Roth the same as defined benefit plans, not subject to execution. There is an exception to IRA protection for alimony and child support.
The money must be in the account before the lawsuit is filed. That’s better than I thought; usually it’s before the cause of action even arises. So if something bad happens and you feel vulnerable, there’s still time. Trouble is the limit on yearly contributions prevent you from shoveling a lot of money in at the last moment. It’s better to have been contributing the max all along.
YMMV.
Well I take that back. The statutes are not as clear about 401(k) plans as I had thought.
Either I was hallucinating, or the last legislature monkeyed with it again.
Really? It is ususally the IRAs that are more dicey. 401(k) money is technically still owned by the company, so it shouldn’t really need a special rule to be exempt from bankruptcy.
Yes you must be right, of course. That must be why no one thought to make it explicit in statute.
going up short, medium, and long term, to raise revenue for taxing authorities ??
Plan on it…Just not in the way we are accustomed to….THE new way will be through elimination of loopholes & deductions in the current tax code along with broadening the tax base (Fee’s, sales & excise tax etc.)….Just look at the provision in the health care legislation requiring any service over $600. requiring a 1099 although it looks like it will get removed…
Point is, what is coming at us will be multi faceted, new and hard to avoid…..
Natalie, thanks for posting about Hawaii!
Here’s the information, promised yesterday, about off base housing in NC. I know very little about military externalities, such as housing allowances, that might serve to warp asking prices. I do know that there are lots of little towns along the coast further toward the Atlantic where the externalities, if any, might not apply. The closest ‘non base’ town up from Jacksonville is New Bern, about twenty miles, far enough that it is not commutable if you need to be within arms’ reach of whatever you’re doing on base, that have the retired military culture which I find so refreshing. Jacksonville proper, driving through it, is a 20C nighmare of asphalt and strip malls. Maybe there’s an Old Town, I don’t know. OTOH, there are no residential areas other than trailer parks along the strip mall. And given Carl Morris’s tale of righteous independence, I now view trailer parks in an entirely different light.
I hope I am not violating any terms of posting by placing these ads here. These are a representative sample from a couple pages of ads from the Camp Lejeune Globe (camplejeuneglobe dot com).
100 OCEAN SPRAY-Cedar Point. $115,000. The location and condition of this home make it a great buy, It is on an FHA approved foundation and VERY close to the beaches! Great 10- ecation for either base. Outside shed for extra storage. Don’t let this one get away! Call Bluewater RE ask about our Military Advantage Program bluewatermilitary dot com
105 IVEY RIDGE PLACE-One of a kind contemporary styled 3 bedroom, 2 bath home located on large wooded lot at end of quiet cui de sac’ in lovely Acorn Forest. The heated and cooled sunroorn looks out onto the natural beauty of the wooded back yard. The loft style master bedroom is a spacious 16xl7. and comes with its own private bathroom and a walk in closet that accesses a large area for storage. The heat pump was recently installed and has new ductwork too!! This is a fabulous buy at only $149,900!!
109 CORRAL WAY-Spacious and affordable 3 bedroom, 2 bath home located at end of quiet cui de sac in lovely Horsecreek Farms. Fabulous floorplan with eat in kitchen, formal dining area, living room with fireplace and huge den!! Qualified buyer can move in and rent until closing. A steal at only $154,000!! CHOICE Realty
O BAY HARBOR CT-Gape Carteret. $110,000. This is a great starter home for. any ‘young family starting out. Fenced back yard. Large open split floor plan. Set in the middle of the cut-a-sac. Home warranty
offered. VA loan payments would run $539.60 a month for P&1. Can’t rent for that anywhere! Bluewater Real Estate
114 SPARKLING BROOK WAY-Another gorgeous home in •the elite section of Land’s End in Brookstone. A four bedroom, three bath with tons of room for the family. One bedroom and bathroom is situated
upstairs for the teenager that wants their privacy! This is one of the most popular plans in this price range. Reserve this beautiful lot & home early and pick all the colors to truly make this your dream house! Mls# 110196 $215,000. Call Choice Realty
$258,835. This beautiful home has all the upgrades at no extra cost! Plantation shutters,stainless steel appliances, granite counter tops, irrig. system, well with rock garden & water feature. Bonus room plus family room and Liv rm. Back yard has a patio deck area & 4 ft black vinyl coated fence. This immaculate home is midway between Camp Lejeune and Cherry Pt, minutes from Emerald Isle beach! Priced to sell! Call Bluewater Real Estate
118 SUTTON DR-Cape Carteret. $208,000. Well kept golf course house that is in move in condition with most of the furnishings included. All it needs is you. Good location to either Camp Lejeune or Cherry Point! Call Bluewater Real Estate
300 BROOKSTONE WAY-The Dogwood floorplan. A 4 bedroom, 2 bath home for the growing family! This spectacular home has plenty of living space. Situated on a beautiful lot in desirable Brookstone Pointe. Matching stainless steel appliances to include microwave and refrigerator! Garage door opener with keypad. Close to schools, base and shopping. Low county taxes. Reserve this lot and pick all color schemes to make this your personal dream homel Mls# 114248. Call Choice Realty
417 MOSS SPRING Swansboro. $215,000. Quality built 3 BR Ranch, Stainless Steel Appliances, Large Master Bedroom, M Bath w/2 Walk In Closets, Double Vanity, laundry Room, Double Car Garage, Open Floor Plan, Fireplace in Great Room, Bamboo Flooring, Window Treatments, Cathedral &, Vaulted Ceilings, Carteret Co Schools, Centrally Located Between Cherry Pt & Camp Lejeune, Nat. Forest less than 1 mile away! Great Hunting & Fishing! Call Bluewater Real Estate
510 Ocean Spray Drive Carteret. $149,900. Immaculate! Open floor plan with vaulted ceilings in every room. 20 ft kitchen/dining w/breakfast bar and all appliances (gas range)! 25ft family room, walk in closet and sliding glass doors. Private master suite, double carport, RV parking, shed with electric. W/Rainblrd Irrigation. DW on permanent foundation. Good location to either Camp Lejeune or Cherry Point. Call Bluewater Real Estate
313 BROOKSTONE WAY-The Maple. - A 4 bedroom, 2 bath home priced at just $175,000. This beautiful home has plenty of living space. Matching stainless steel appliances to include microwave and refrigerator! Garage door opener with key pad. Close to schools, base and Shopping. Low county taxes. Reserve this lot and pick all colors. Mls# 114812. Choice Realty
376 WHITEHOUSE RD-$119,900! Charming farmhouse to be split out with about 1/2 acre. (Buyer can purchase more acreage if desired.) 4 bay building, garage and shed included. Sheetrock walls over heart pine. Aluminum siding over wood siding. Off Hwy 58 just 2 ½ miles from Emerald Isle bridge, nice location for either base. Country kitchen, formal 0R & LR, plus 3 other rooms, 1 bath and separate laundry mi. large screen porch across the front. Great potential! Call Bluewater RE
Please note I view these prices from the lens of the greater DC area, so for me, they are at a good starting point. In that latitude, the climate will not kill you or impoverish you with heating oil costs in the winter. Assuming you have shade and proper orientation in the summer, I would think you might have a chance at a comparatively reasonable monthly nut.
From the standpoint of structural economics, around military bases, I suspect you don’t get the two income effect on pricing. If you are married and have children, there are precious few occupations that will allow you to uproot every two years and find work that will both cover day care and leave an economic profit.
So I would think if you are a trailing spouse, you accept a different lifestyle, one that is family centric and independent, or one whose livelihood derives from virtual sources. In the larger society, it is vanishingly rare to find a purposeful family centric culture, e.g. one that offers a steady job for twenty years for a critical mass of people. Core values shape up differently in predictable surroundings.
Quite the difference from what I see in the DC area, where flocks of twentythirtysomethings congregate in flocks wherever they can afford to, all still looking for mates. Or among the twentythirtysomething kids of my few remaining friends in CT, who are un- or underemployed, living back in their parents’ houses, with a background sense of foreboding, left scratching their heads and wondering what went wrong. It doesn’t help the anxiety to tell them that for the most part, they didn’t bring it on themselves, that they are mere passengers in this post industrial decline.
And given Carl Morris’s tale of righteous independence, I now view trailer parks in an entirely different light.
That’s funny. Me, too. It still feels a little weird, though, I must admit.
“[T]hey are mere passengers in this post industrial decline.” Thank you for that post, and this line especially peaked my interest. Perhaps the banks’ debt leverage game was not the cause or origination of an inevitable collapse but merely the excessive drugging of a terminally ill patient, and the government regulators and high level politcians looked the other way or helped fuel the game because it was easier than facing the truth. What role does the USA have in globalization after outsourcing labor? If we lose control of the financial system through over-regulation, taxes, charges, etc., what do we have? This board is better on cause and effect than most, but I am not sure we are entirely there yet.
Good starting point? Listings like that have me drooling. And you’re right, that’s a good climate for ye olde Oil City Plan.
FYI and update on the massive layoffs (30%-50%) of the union police and firemen in Camden, NJ.
Yesterday - these unions made it as tough as possible for the city. Interviews with police and firemen how these layoffs will lead to chaos, how the public will be endangered, how people are going to die, all the blood/sweat and tears they put into their jobs, etc.
News footage yesterday of them packing their equipment, crying, marching to city hall and putting down a pair of boots for each person that was laid off. All the while telling anyone who would listen on how the mayor was endangering the public, etc.
AND ALL THE WHILE - the mayor was stating (day-after-day) that if the police and firemen unions gave real concession - there would be NO layoffs.
Guess WHAT was on the TV news this AM???? The police union is in talks with the mayor (the day after the layoff took place). The news reported that the police union is now considering the concessions and that all the laid off policemen may be rehired. So far – no word on the firemen’s union.
Bottom line - the public servants will cry, distort, pressure and whine up to and after the layoffs take place.
Only when they see a mayor (or governor) is serious, do they even think of real negotiations.
After all - it is just taxpayer money.
This is why I don’t believe the states, counties and cities will be bailed out.
I think people don’t remember that there were inner city areas that were damaged and nearly abandoned in the 60’s and 70’s and stayed that way for decades until some yuppies decided it was cool to be gentrifiers. I think that some of the poorer communities will be hollowed out and left for a very long time.
If only somebody would stand up to the banksters’ demands and call their bluff one day…
Government when threatened turns itself inside out. The vital services, the bone and muscle, migrate outward so as to shield from harm the precious fat within.
2banana…
If your house catches fire - do you plan to put it out yourself? It WOULD definitely save taxpayer funds.
Why Green Energy Can’t Power a Job Engine (Evergreen Solar closes factory in Massachusetts)
New York Times | 01/19/2011 | Edward L. Glaeser
…
Joshua Lerner’s superb book “Boulevard of Broken Dreams” (Princeton University Press, 2009) reviews public efforts to support start-ups and entrepreneurship worldwide and reminds us that “for each effective government intervention, there have been dozens, even hundreds, of failures, where public expenditures bore no fruit.”
Failed public investments, like the money spent in Devens, reflect the fact that public officials are rarely skilled venture capitalists and that governments pursue many objectives that lead them away from solid investments. It’s easy to see why any governor would be excited about a green-energy manufacturing plant in a less prosperous area of his or her state. But the same forces that made Devens political catnip meant that it was unlikely to be a long-term success.
‘public officials are rarely skilled venture capitalists’
Exactly. I have no faith in my state’s “economic development” team to pick a winner. It’s all feelgood BS and schmoozing, with little to show for it. Montana especially is prone to jumping on trendy ideas at the end of their run.
“It’s all feelgood BS and schmoozing” describes to a T a high tech/nanotech startup “Innovation Park” in South Bend, IN. Just this morning another article ran in the local rag singing its praises, complete with pics of twentythirtysomethings in lab coats looking all techy (hey, maybe we’ll become the next Intel!) but overlooking the fact that none of these companies have grown beyond a handful of employees. I also suspect that a lot of the activity is refunelled grant money from Notre Dame to bolster its credentials as a research university.
In other words, it’s an expensive, yet somehow quasi glamorous, boondoggle. Oh, and did I mention that none of these future Microsofts are paying anything in taxes?
lol! We’ve got one of those here, too. They do great PR!
We have them here in Tucson too. A local news blogger-buddy calls them The Cloth.
Hahaha! so is Cloth a developer or developee? I can’t tell the difference here anymore, I just know they’re doing some great stuff, because the paper says so.
Here is an example of what is widespread in my neck of the woods.
Type: MTG
Date/Time: 3/6/2006 08:16:53
CFN: 20060129830
Book Type: O
Book/Page: 20008/1077
Pages: 17
Consideration: $250,400.00
Party 1: PTAK SCOTT T
PTAK LISE M
Type: MTG
Date/Time: 3/6/2006 08:16:53
CFN: 20060129831
Book Type: O
Book/Page: 20008/1094
Pages: 6
Consideration: $62,000.00
Party 1: PTAK SCOTT T
PTAK LISE
Type: MTG
Date/Time: 10/10/2006 08:57:05
CFN: 20060571782
Book Type: O
Book/Page: 20939/542
Pages: 7
Consideration: $78,800.00
Party 1: PTAK SCOTT T
PTAK LISE
Notice Of Lis Pendens
Type: LP
Date/Time: 11/14/2008 13:46:50
CFN: 20080413832
Book Type: O
Book/Page: 22953/1738
Pages: 1
Consideration: $0.00
Party 1: DLJ MORTGAGE CAPITAL INCORPORATED
Party 2: PTAK SCOTT T
CITIBANK FEDERAL SAVINGS BANK
PTAK LISA M
CITIBANK NATIONAL ASSOCIATION
PTAK SPOUSE
———————————————————————–
Owner Information (as of today)
Name: PTAK SCOTT T
Mailing Address: 258 LA MANCHA AVE
ROYAL PALM BEACH FL 33411 1327
Sales Date Book/Page Price Sale Type Owner
Feb-2006 20008/1076 $313,000 WARRANTY DEED
PTAK SCOTT T
Exemptions
Applicant/Owner Year Detail
PTAK SCOTT T 2011
A $250,400.00 first and a $62,000.00 second on the same day for purchase. A $78,800.00 cash out refi 7 months later. Stopped paying within months, Notice Of Lis Pendens filed 11/14/2008. And still lives in the house today, now on someones balance sheet it still shows an asset of $313,000 and they still get a $50k exemption. The county has the Total Market Value: at $136,467 for 2010 with the $50k exemption a taxable value of $86,467 and total tax due of $2,245.
Wow, thank you for that info. So which is worse, that the guy lives in the house rent-free, or that the bank keeps a $135K house on the books for $313K?
This is far from over.
My friend, who is a realtor, argued that high condo prices (+$300/sq ft) and rentals (+$2.00 sqft per month) are here to stay in central Austin, Tx.
‘everyone wants to live here’ and ‘real estate is local’. He said I should be ’stop throwing my money away in rent’ and ‘grow up and invest my money in real estate’ because ‘it always goes up in the long term’.
I wonder if the NRA trains all realtors to always use the same arguments when discussing real estate.
werent they saying that 5 years ago too?
Unfortunately, prices haven’t changed much…
——————
In 2010, MLS condo sales grew by an amazing 50% over 2009 results. With 168 transactions plus a significant number of non-MLS sales at the Austonian, Four Seasons, Spring, and BartonPlace, 2010 was a strong rebound year.
While sales volumes increased, pricing remained essentially unchanged at $294 per square foot - a 1% decline from $296 / sq foot in 2009. Because the average unit size increased by 3% to 1,142, average sales price increased 4% from $330K to $344K.
In addition, % of ask increased slightly to 95% while average days on market slid from 88 to 99 days.
‘grow up’?!
I remember when peer pressure was only used to push drugs, not condoze.
Translation = I need my commission so buy something!
I went though the same discussion with a co-worker.* He didn’t tell me straight out to “grow up,” but he had that standard attitude that renters are losers, and that he followed his parents’ advice that real estate is the best investment. When he turned a certain age, he owned a very very nice house outright.
I will turn the same certain age very soon, but all I will have is a decade of throwing money away on rent, a leeetle bit of cash that is reaping NO return, and a massive guilt trip for being a slacker.
——
*the same coworker who bought that house in the California in the early 80’s and reaped enough apprectiation to buy outright in another state in 2000.
I’m confused. Are you implying he was right?
At the time, yes, he was right to buy real estate. He made a killing in the 90’s appreciation and wisely used the profit to buy a home outright. If you add our age differences and the fact that I spent many more years in college, he effectively started his career 19 years ahead of me. In those 19 years, jobs went unstable and housing went out of reach, for me.
What I am trying to do is tease out whether this difference is due to some fault on my part, or whether it’s a decline in general. I guess the take-home message is “don’t bother with advanced college degrees.”
So he is taking credit for having the good luck to have bought at the “right” time, but seems to think times have not changed. “You don’t have to be a weatherman to know which way the wind blows.”
And don’t think you are at fault, if your degrees have given you work that is a vocation as well as a paycheck than you are luckier than most.
I got a MS… graduated at 24
I am pretty happy with it!
I graduated while the recession started, and the title/college kinda put me ahead of the crowd the get my interviews!
I do not regret doing it at all!
A lot of people confuse luck with skill.
People who say “timing isn’t important” in investments have rocks in their head. I bought my house in San Jose in 1981 at a previous peak “so I wouldn’t be priced out forever”.
That house quickly slumped about 13% and stayed that way until around 1988. Then it started to go postive and eventually went up 615% over what I paid for it when I sold it in May 2006.
I could have waited another 6 or 7 years to buy and made the same profit. If I had waited to SELL another 4 years, my profit would have been cut almost in half.
Thank you for that Dennis. Job security is another huge factor. My co-worker was able to stay in the house for 15 years to allow it to appreciate. If he had lost his job or had to relocate during a price slump, he would have been toast.
You just need the same inflation HE enjoyed. I used to say, Let me buy a house and then get on my knees and pray for inflation.
That does seem to be one thing RE is good for - inflation hedge. But it might be too early to do that just yet. And it does leave one somewhat immobile.
“When I was your age, I went to work at the factory, bought a house, married, had a couple of kids. And I lived happily ever after.”
Cinderella?
Update from Arizona Slim’s nabe: Last month, I regaled you with the tale of my northwest corner boundary neighbors’ half-baked water line replacement project. In which they didn’t dig the replacement line trench any deeper than the existing trench. And said existing trench is too shallow to comply with city code.
Then they didn’t repave the section of driveway that they dug up. All they did was pile dirt there. I’m looking forward to seeing what happens after the first big rainstorm. Mega-gully where that covered trench is.
Any-hoo, there’s another house that’s of interest now. It’s two houses north of mine and was bought as an investment back in ‘05.
A variety of renters have lived there since ‘05. It’s been vacant since last July. The “for rent” sign was taken down in mid-November. I’ve been wondering if this is another one of Tucson’s many rentals that the owner/investors are giving up on.
Well, there’s quite the flurry of activity there now. Gas line replacement is in full swing. I’m wondering if a Southwest Gas worker was in the area to read someone else’s meter and detected a leak. Tenants are no tenants, you have to fix that problem pronto-pronto.
Tenants are no tenants, you have to fix that problem pronto-pronto.
Oops. My bad. I should have said “Tenants or NO tenants…”
Is that “neighbor’s half-baked water line replacement” or “half-baked neighbor’s water line replacement”?
I was trying to be nice. What I really think of this water line replacement is that it was done in a half-arsed manner.
The monarchs are reasserting themselves
LONDON – What happens in the palace stays in the palace.
A new British law that took effect Wednesday makes Queen Elizabeth II, Prince Charles and Prince William exempt from freedom of information laws, meaning many private details of their lives won’t be made public for decades.
Justice Secretary Ken Clarke says the exemption will protect the monarch’s private conversations with politicians and officials — but information advocates say it will make it even harder to hold to account a royal family that costs taxpayers millions a year.
How F-ing convenient.
They don’t want anyone to know how much Kate is going to spend on that wedding dress..
And if I remember correctly there were embarrassing recordings of some of Charles cell phone calls to Camilla that included some racy comments about feminine hygiene products.
These people need to be hung high.
2 more years
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
http://www.irs.gov/individuals/article/0,,id=179414,00.html - 26k -
2 more years?
Because the Governing Bodies are incapable of making the right decision
for the United States and it’s People , and they have breached their duty to even craft sane laws ,I move that a emergency law be
drafted by the People to ban all lobbying Congress/Senate for a period of 5 years . In addition I move that the People sue Congress /Senate for
breach of duty ,Discrimination against vast segments of the population .
I move that since the Governing body has failed to Govern and puts the United States in great pearl that threatens our security with other Nations
that this Motion is drafted for the salvation of the United States .
When a Governing Body has become so corrupted that there is no recourse for the people ,or due process ,than it becomes necessary to call for emergency measures Motioned by the People .
I just thought I would get a rise out of you this morning .
What about banning new law creation for 5 yrs? No need to all of that. DC will be a ghost town.
What about banning new law creation for 5 yrs ?
How about eliminating 100 laws each year for the next five years….I will start it off;
#1….Drug possession for personal use…
Unfortunately, as long as corporations are considered people, then a corporation and its paid shills can petition the government for redress of grievances.
HW: I second your motions.
Gary Schilling post with a tremendous amount of information.
http://www.businessinsider.com/gary-shilling-and-now-house-prices-will-now-drop-another-20-2010-12?slop=1
It was interesting how on Dylan Ratigans show website a tape of a interview a couple of days ago he was talking to a psychologist on a tape interview called “Reducing Poverty and Improving Lives .”
It was interesting how this psychologist was addressing the insanity of
the rich and how they get into this just wanting more and how nuts it
becomes . Dylan Ratigan also talks about how he was part of the Wall Street
World until he changed priorities .
I was actually shocked to the degree that Dylan Ratigan changed ,but you could see it coming on day by day ,you could see the transformation . I think Dylan Ratigan is a good guy and one of the few journalist that is exposing a lot of this nonsense that is going on that has a talk show on TV.
Never trust a man who does 180 in a matter of seconds. He was paid shill back then and still is. It’s just he has a different boss this time around.
I don’t know about that . Ratigan can’t get advertisers from Wall Street ,seems like only cleaning companies are advertisers of his
show . He doesn’t seem to be shilling for anybody if you ask me .
In fact he knows the questions to ask because he knows the ins and outs and he can’t be snowed like so many Journalist are .
At one time, Rush Limbaugh was named — rather tongue in cheek — as the “leader of the Republican party.” Yet, his ads* are all for gold dot com and Sleep-number beds, similar to Ratigan. Limbaugh is paid millions to shill; Ratigan is probably paid at least a mil. I don’t know who’s paying these guys. I doubt that gold dot com has millions.
——
*Any national corporation that dares to advertise on Limbaugh’s radio show is immediately boycotted by liberals.
Well than you would have to say all journalist are shills . A lot of times if you look at who would benefit by what the journalist is saying or doing ,than that gives you a glue as to who their
supporters are . Everything he talks about would only benefit the regular working class . It doesn’t seem to be right wing or left wing (maybe slightly left). Ratigan seems more like a practical type . He almost seems pissed a lot of the time ,as if he can hardly contain himself with what he knows is going on . He calls Wall Street “corrupt” and all sorts of truths .He ‘does education interviews also to try to educate the viewers
as to how something works . I don’t see a shill here .
” *Any national corporation that dares to advertise on Limbaugh’s radio show is immediately boycotted by liberals.”
I can see why corporations would avoid advertising on Limbaugh’s show. They don’t want to lose 10 to 15 percent of their potential market if they can help it.
Soon a way for Corporate America and the Gov to hide information from the public.
MADRID (AP) — Lawyers for Google went to court Wednesday in Madrid to appeal demands by Spanish authorities that the company delete links to websites containing information officials say violates Spaniards’ privacy rights.
Google Inc. says it’s the first case of its kind — and a Spanish decision mandating the deletion of the links could hurt freedom of expression.
Spain’s Data Protection Agency said it filed the orders against Google at the request of individuals who lodged complaints and because the original publishers of the material cannot legally be ordered to take them down.
The agency has issued 90 orders for Google to take down links. The National Court on Wednesday heard arguments from both sides on the first five orders to be appealed.
The cases include a surgeon who was absolved of charges of criminal negligence in a 1991 case but who sees a Spanish newspaper reference to the original case — and not the acquittal — whenever his name is keyed into Google’s search engine.
Another case involved a woman who was denied a local government grant years ago but reference to the case and data about her keeps appearing in searches using her name.
Google’s chief argument is that it is just an intermediary and that the original publishers are responsible for the content.
Google fears that a ruling against by the court would effectively give the U.S. search engine giant publisher status and make it accountable for the material it provides on the Internet.
“We are disappointed by the actions of the Spanish privacy regulator. Spanish and European law rightly hold the publisher of material responsible for its content,” Peter Barron, Director of External Relations for Google, said prior to the hearing.
This piece by gary shilling has some nice charts in it.
businessinsider.com/gary-shilling-and-now-house-prices-will-now-drop-another-20-2010-12?slop=1
Smart people are buying real estate.
This cohort is led by John Paulson, the hedge-fund manager who made $20 billion betting against the housing bubble. Last fall he said in a speech: “If you don’t own a home buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.”
Why is Mr. Paulson so adamant? Because he believes long-term interest rates are not going to get much lower. They have, in fact, risen since he gave that speech, but they remain remarkably low by historic standards. Low rates and the expectation that home prices will rise is his argument. For his part, Mr. Buffett has predicted the housing market will bottom this year.”
so if long term interest rates can’t go lower that means house prices have to go up yea he’s smart
Just talked to someone who took a short sale on their house. Said they could afford to make payments but even after years of paying they would not have any equity in the house and if they rented it out that the rent would not cover the payment.
They also (have great secure jobs) said that they know many others waiting to purchase but not doing so because they are seeing RE’s trying to artificially keeping asking prices up and then seeing closing sales later on the property at 50% or lower. They plan to buy as do their friends at least two years into the future when they feel prices will have bottomed. I asked if interest rates were a consideration that would push them to buy and they said no. There is definitely a new mind set in their workplace.
This is what worries me most. I’m comfortable renting where I am for the moment, and don’t want to think about buying for at least another year. And yet, in my area, there’s a strong chance that I will be priced out AGAIN. I may as well count on renting for another 20 years until I can buy outright in Podunk per the Oil City plan. At the end of the day, the best plan is to retire without a mortgage.
Do not worry. If interest rates rise, then prices will have to fall further. There are more than enough houses, and the only way to find a buyer for all of them is for them to be affordable. Higher interest rates require a lower price to be affordable.
Then, if rates ever fall, you can refi.
Buying when rates are low is a lose-lose as you can only be hurt by falling house prices as rates rise and you are locked in with an inability to refi should the need arise (like a divorce).
Buying when rates are high is a win-win as your purchase price will be lower and you can only be helped by falling rates.
These low interest rates are designed to get action in the housing market . In some places the prices are low enough and the financing
is low enough and favorable enough that it should create sales for a person that is relying on a loan to purchase .
But its not only a issue that prices have to fall to what true willing and able (qualified ) buyers would pay ,there is the issue that there is such a excess inventory of foreclosures making a normal market impossible
Over supply of houses is just a market price killer . They can try to
control releasing inventory ,but the house is getting more damaged ,and continues to be a non-performing drain to the point where it has minus value for the lender if you consider taxes and insurance
and maybe homeowners fees . You can’t just carry these asset as Hank Paulson so falsely suggested waiting for some bogus market value to return .
I think the lenders originally thought they could create some kind of higher prices than the market would actually bear ,and the Government has done everything to prop up the market to
obtain that goal ,but it only worked to a certain degree after many caught a falling knife .
I remember Hank Paulson always talking about buying toxic assets until the par value returned . Those are the word of a con artist or a person who didn’t understand the crash of a fake market ,but I think it was the basis of a lot of the plans .It didn’t work because you can’t re-inflate a false market ,or a mania .
With all the job insecurity going on out there ,this is going to cut down more demand . Couldn’t be worse circumstance for a housing market ,but buyers can get deals by this over-correction that will take place .
Interest rates going up means house prices will be going down since it is monthly payment that determines affordability. Assuming flat wages and a fixed affordability threshold, then higher interest rates would require prices to come down.
The only reason to buy would be if you think there is going to be large wage inflation sufficient to raise the affordibilty threshold faster than interest rates increase.
Then, there are still 4-5 million too many houses that at current construction rate will take about 6-7 years to work off.
Crooked mortgage broker gets 15 year sentence for Ponzi scheme.
http://www.unionleader.com/article.aspx?headline=Ponzi+scheme+mastermind+gets+15+years+in+prison&articleId=230a4c63-cfaf-42ad-a0c2-1a4367f4a62d
…the admitted Meredith Ponzi schemer was immediately whisked off to prison to begin serving his concurrent sentences…
“TruePatriot™” + “TruePurity™” + “TrueFearMongerAlways™” = Food Stamps are destroying America!
GOP spending cuts would affect millions of people:
By ANDREW TAYLOR, Associated Press Andrew Taylor, Associated Press / Wed Jan 19 2011
The Pentagon, theHomeland Security Departmentand veterans’ programs were exempted from the cuts when Republicans drew up the promise but are likely to get a good scrubbing anyway.The $100 billion promise, contained in the GOP’s “Pledge to America” campaign manifesto
The vote will be largely symbolic. The actual cuts would have to be made in appropriations bills that would have to clear a 60-vote hurdle in the Senate, where Republicans hold only 47 seats.
BWAHAHHAHAHAHHAHAHHAHHAHAHAHHHHHHHHHHHHH!!! (fpss™)
I guess they should just act like democrats and spend away?
I guess they should just act like
democratsGOPOFC&CC = “The Grand Old Pimp of Fiscal Conservatives & Compassionate Conservatives” and spend away?It’s Food Stamps for Americans…vs…Shazam!-Islam-is-gonna-b-Democracy-any-day-now-just-you-wait-n-see-right-Rummy?
Florida home prices could lose another 10% this year, TD
Bank forecast says
by Jeff Ostrowski
Florida home prices still haven’t hit bottom, according to a dreary forecast released today by TD Bank Financial Group. Prices here “could fall by as much as 10 percent as excess inventory comes into the market,” the company predicted.
“Florida’s housing market still has a long way to go before it recovers,” said Alistair Bentley, a TD economist.
In 2012, Florida’s housing market should bounce back, thanks to affordable prices, Bentley said.
Tags: TD Bank
This entry was posted on Wednesday, January 19th, 2011 at 12:05 pm
For some reason I can’t get this to post.
This Gary Shilling article has a lot of nice data.
businessinsider.
com/gary-shilling-and-now-house-prices-will-now-drop-another-20-2010-12?slop=1
This article won’t post for some reason but had a lot of interesting data from Gary Shilling. I’ll try one more time.
Remove the X’s
businessXinsider.XcXom/garXy-sXhilling-and-now-house-prices-will-now-drop-another-20-2010-12?slop=1
WASHINGTON – Private health insurance plans catering to Medicare recipients are making millions by taking money the government sends in advance — but isn’t immediately needed — and using it to make investments, federal investigators say in a report obtained by The Associated Press.
In financial parlance, it’s called “playing the float.”
In contrast with another government program that also deals regularly with health insurers, Medicare lets its plans keep the cash.
An audit by the Health and Human Services inspector general’s office estimates that private Medicare Advantage plans collected $376 million from investment income on advance payments from the government in 2007, the latest year available.
Of 50 plans audited, only two told investigators that they subtracted investment earnings from their Medicare bids for the following year. The rest pocketed the money.
Medicare typically pays the plans 46 days before they need the money to cover medical services, the audit found.
“Because federal requirements governing the Medicare Advantage program do not limit the ability of (private plans) to retain investment income earned on Medicare funds, the Medicare program loses potential cost savings,” said the inspector general’s report to Medicare administrator Donald Berwick. The report is to be released Wednesday.
How much is Medicare losing in potential savings?
If Medicare had hung on to the money for a few more weeks, the program’s trust funds could have collected $450 million in interest income from the Treasury, auditors estimated. That’s because the long-term Treasury securities Medicare invests in typically pay higher interest than short-term investments in which the insurance companies park their money.
In a written response to the audit, Medicare official said it shares the inspector general’s concern, but little can be done to change the situation.
Insurance companies on the otherhand delay payments to hospitals and doctors for months at a time so they are milking it at both ends.
WASHINGTON – Private health insurance plans catering to Medicare recipients are making millions by taking money the government sends in advance — but isn’t immediately needed — and using it to make investments, federal investigators say in a report obtained by The Associated Press.
Another nail in the U.S. private health insurance industry’s coffin.
BTW, if you haven’t read Wendell Potter’s book, Deadly Spin, do so. He provides a whole bucket of nails for the aforementioned coffin.
Insurance companies on the other hand delay payments to hospitals and doctors for months at a time so they are milking it at both ends.
Ho ho, hah hah, hehehehehehe, BwaHaHaAhHAHAHAHAHAHA!!! (Cantankerous Intellectual Bomb-thrower™)
See, Private “Bidness” Inc. is to ALWAYS to be trusted and NEVER regulated!
Get out of Corpoorations Inc. way and let them be FREE to conduct their benevolent “TruePatriot™” “Bidness” as only they know how to: “Serve Mankind!”
On top of all that the Insurance Companies are delaying patients
on treatments that should be more immediate . It’s a racket I’m telling you . This all goes back to all the little money games . Medical treatment is a immediate need . I have so many friends that are put off for months on medical complaints that could be solved a lot quicker .
It seems to me that Insurance Companies, like Wall Street, are entirely
money grubbing in their approach and it results in bad faith actions repeatedly ,which they shouldn’t be allowed when it comes to health matters ,or life or death matters . I’m telling you these people are monsters . They have the Insurance shills at the hospital in these little room and they make out like they are there to help the patient .I
talked with enough of them to know . They are there to control and influence the Doctors treatment course ,and its rationing at its most evil . I really wish that the Doctors would admit that the bad faith
Insurance Companies are controlling their actions . They define which Doctors to go to and all sorts of things they control . I told one of them that they were penny wise and pound foolish because their
stalling could create more serious conditions that could costs more money in the long run .
I’m telling you guys ,you got to get them out of the medical business ,these private insurance companies . Your never going to get
Doctors to admit what I’m saying however ,but I’m sure Doctors are frustrated with it . I was able to get nurses to admit it however .
“In financial parlance, it’s called “playing the float.”
I would have thought QE would have ended that game. What are they investing in, commodies futures?
Isn’t Medicare Advantage what Obamacare is going to eliminate? Seniors and the usual sheeple think that Obamacare cuts Medicare, but what it really cuts is crap like this.
I have a nurse friend who told me that private insurers play the float ALL THE TIME, not just with Medicare. This is why HI companies have such a complex maze of forms. For each little mistake on the form, the doctor has to resubmit. Each resubmittal is a 30-day turnaround, which means 30 more days of playing with Other People’s Money. This is one reason doctors need so many aides. Each aide learns to navigate one HI system. The fewer aides, the fewer insurance networks the doctors can belong to.
I read that one HI company had invested in bad MBS and was denying claims to make their balance sheet whole. Talk about profiting off the sick!
Anybody who thinks that Medicare is “efficient” compared with private insurance should ask their doctor about that.
The Medicare rules about what and how you can bill, and how you need to document what you do, are thousands of pages of incomprehensible, contradictory gibberish.
Doctors have to hire assistants to help them navigate through the insane complexity of Medicare’s billing rules, just like they do for commercial insurance.
The big difference is that the worst thing a commercial insurer can do is stiff the doctor on the payment.
Medicare can send him to jail.
Well ,I observed so many employees filling out paper work that they outnumbered employees working on patients . I was in 4 busy
hospital total .
I have never seen anything like it in my life . This is why I think that the entire system can be made must less complicated by
a single payer system . If you have all these money games going on
than it doesn’t fit with life or death matters . I don’t see how this adds to the efficiency of health care either . Its clear that the Doctors have been usurped by the Health Insurance Companies ,who seem to have the power position .
Its the same as the Corporation /Wall Street cartel hijacking
the Government .
I think the efficiency comes from having to deal with only one set of rules/paperwork.
Medicare advantage costs more than medicare to provide the same service. I don’t know how you can argue that private is more efficient.
Ask your doctor friends how long they have to wait to get paid. Ask them how many phone calls they have to make to get an approval from private insurance. You really don’t know what you are talking about. Medicare has rules, Insurance company rules change daily.
The chief architect of the money mess is CONGRESS.
EverBank’s currency guy, Chuck Butler, (The Daily Pfennig) Butler quotes the head of the Dallas Federal Reserve, Richard W. Fisher, who points out that the Feds large bond buying program “runs the risk of being viewed as an accomplice to Congress’s fiscal nonfeasance.”
Says Fisher: “Those lawmakers who advocate ‘Ending the Fed’ might better turn their considerable talents toward ending the fiscal debacle that has for too long run amuck within their own house. The Fed could not monetize the debt if the debt were not being created by Congress in the first place.”
Ain’t that the truth!
You can always count on this dumb ass to say something clever…
Harry Reid, Senate Majority Leader, calls Chinese President Hu Jintao a ‘dictator’ during U.S. trip. ~ DAILY NEWS ~ January 19th 2011
Senate Majority Leader Harry Reid, right, called Chinese President Hu Jintao, left, a ‘dictator’ before quickly backtracking on Tuesday.
Harry Reid has done put his foot in his mouth again — and this time he might really wish he’d been more careful with his words.
The Senate Majority Leader called Chinese President Hu Jintao a “dictator” on Tuesday — the same day Hu arrived on a diplomatic visit to the U.S. to discuss their at-times rocky relationship.
“I am going to go back to Washington tomorrow and meet with the president of China. He is a dictator,” Reid told local TV talk show “Face to Face with Jon Ralston.” “He can do a lot of things through the form of government they have.”
The inflammatory remarks were made after Ralston asked if Reid thought the lame-duck tax cut deal was a good one. The Nevada senator quickly backtracked from his statement.
“Maybe I shouldn’t have said dictator, but they have a different type of government than we have and that’s an understatement,” Reid said.
States with the Highest Foreclosure Rates - Slide Show
http://www.cnbc.com/id/29655038?slide=1
So, Nevada should just roll up the side-walks and head out somewhere else.
Police Blotter: Fight escalates at Delray restaurant over barbecue sauce
Posted: 9:49 a.m. Wednesday, Jan. 19, 2011
Boca Raton
BATTERY
In the 400 block of Southwest Second Avenue, a man called police to say that one of his roommates put on brass knuckles and a glove and hit him repeatedly on his head.
THEFT
A man laid his Apple iPhone on a counter in the men’s locker room in the 4900 block of Technology Way while he washed his face in the sink. When he finished, the phone was gone.
A 1969 Firebird was left unlocked in the 300 block of Northwest First Avenue and all four seats and door panels were removed from inside the car.
Someone stole a blue Genie lift worth $5,000 from the living room of a residence under construction in the 100 block of Coconut Palm Road.
OVERDUE RENTAL
An orange 2009 Kia Rio was rented from Hertz in the 100 block of Northwest 13th Street at the end of October. The Kia was supposed to be returned Nov. 3. The car hasn’t been returned and there is no local address or phone number to contact the renter.
Boynton Beach
BURGLARY
Corporate surveillance in the 2000 block of High Ridge Road showed a burglary and auto theft in progress. Officers and a K9 unit set up a perimeter and a man who bailed out of a stolen Ford pickup inside the compound was arrested.
Thieves broke into a blue Honda parked in the 400 block of Villa Circle and stole two gate pass keys valued at $30.
An Infiniti G35 and a Mercedes C230 were burglarized in the 2000 block of High Ridge Road in an attempt to steal the keys on the exterior glass edge of the front driver’s window and door area. The cost of the broken glass was $1,200 and the lock boxes $25, the key in the boxes is valued at $500. There are no suspects at this time.
STRONG-ARM ROBBERY
A woman sitting at a bus stop in the 1000 block of North Federal Highway had her pocketbook pulled from her arms by a man who then fled on his bike. The woman signed a refusal to prosecute form after she repeatedly explained that she had guests coming to her home that night and couldn’t take any more time to cooperate.
A man broke into a 98-year-old woman’s Boynton Beach home, threatened her life, and yanked the phone cord out of the wall so she could not use it to call for help. The thief stole $65-$70 and then fled.
CORRUPTION BY THREAT
More than 300 people gathered in a parking lot in the 1500 block of Stonehaven Drive to party. After police were called, many refused to leave. One of the partygoers told an officer that he would kill him if he ever saw him again. He was taken into custody for threatening an officer and his brother was arrested for obstruction when he tried to interfere.
Delray Beach
BURGLARY
On the day a woman was moving her things out of a property in the 1300 block of Northwest Third Street, the landlord met her there to retrieve the keys. He noticed that she was standing next to a storage shed on the property but did not think anymore about it until the next day when he discovered that the padlock and latch were ripped off the wall of the shed and a drum set, an organ, and a generator worth approximately $2,200 were stolen. Police were unable to contact the tenant to question her.
For the fourth time in a little over a month, a house being renovated was burglarized in the 300 block of Northwest Third Avenue. A neighbor discovered that the mirrored closet doors in a rear bedroom were gone, a window on the west side of the house was broken, and the rear door was kicked off its hinges.
DISTURBANCE
A man at a drive-through window at a fast food restaurant in the 200 block of West Linton Boulevard demanded more barbecue sauce, but did not want to pay for it. During the argument with the employee, the customer got out of the car and came into the restaurant and continued to yell and throw ketchup packages at the employees. After he left finally, police officers showed employees a photo of the registered owner of the car and they received a positive identification, but did not wish to pursue the incident any further.
Several people got into a loud argument in an establishment in the 600 block of Southwest Third Street about who should buy the next round of beer. They had been drinking all morning and were out of beer. When police arrived, the group did not want to make a report, they just wanted to continue to drink. They were separated and accepted a suggestion that they not drink together for the rest of the day.
THEFT
A man walking up to his house in the 200 block of Northeast 13th Avenue recognized his lawn mover in the open trunk of a white Chevrolet Impala. He also recognized the driver of the Impala as his girlfriend’s drug dealer. Apparently, the man’s girlfriend traded his lawn mower to the drug dealer for the money she owed him.
Doing God’s Work
In other news, …it’s reported that every employee of GoldenmanSucks showed up at work today.
“Doing God’s Work”
Here you go, I think God could use a hand.
http://www.palmbeachpost.com/blotter - 40k -
Better looking crowd than usual. Although the bar has been set pretty low.
“A 1969 Firebird was left unlocked in the 300 block of Northwest First Avenue and all four seats and door panels were removed from inside the car.
I usually leave my car unlocked , figuring that I leave nothing of value in the car and at least they won’t break the windows getting in. It never occurred to me that someone might steal the seats.
A common theft item among Miata owners is the factory hardtop, with a street value around $1200. It’s held in by the same clamps that attach the softtop to the windshield frame, so you just unclip it and throw in the back of a pickup or van.
Palmy, you out there?
If I am just an average Joe, with W2s, I don’t need to file anything with FL, right? I am going Turbo Tax Timmy this year…
Turbo Tax will tell you if you need to file with the state or not. And if you lived in multiple states during the year it can handle that situation as well. I’ve used it for the last 5 years or so and it’s actually pretty impressive software. And if you complete your taxes on their website (rather than buying the CD) it’ll store your information and save you a ton of time the next year. Will also make suggestions on things you may have missed based on what you entered the prior year.
Honestly, Turbo Tax will allow you to cheat if you want to, but it’s got a ton of information and guidance so anyone that wants to do their taxes correctly should be able to. Always seemed odd that Turbo Tax was so hush hush on the Timmy situation. My hunch is that they could have easily shown where specifically Timmy went astray and it would have been clear to Mr Public that he knew exactly what he was doing. Seems to me a Treasury Secretary that willingly cheated on his taxes is better than one who didn’t know how to complete them correctly.
I wonder why state budgets are in trouble…..
http://www.azcentral.com/news/articles/2011/01/19/20110119arizona-pension-taxpayers-executive-david-boggs.html
“David Boggs, 67, is set to retire later this year with a full 20-year Arizona State Retirement System pension worth about $89,000 a year for life, even though he will have fewer than seven years on the job”
(if you read the artilce, it is actualy 5.5 years on the job…..)
“the transportation-authority board, composed of elected officials from throughout Maricopa County, in 2006 agreed to give him $650,000 from public coffers to buy about 14 years of public-service credit from the pension program.”
“Boggs, who will have been in the ASRS system 5 1/2 years when he retires, said he will combine that service with 14 years of service credit the transportation authority helped him buy, along with roughly an additional year of service he is buying with his own money.”
“If Boggs didn’t have the additional 14 years of credit bought with taxpayer funds, his ASRS annual pension would be about $28,760.”
Even this!!!! WHAT????? 5.5 years, and he’d be able to retire with a pension that is 15% of his annual income????
“Boggs currently receives 46 days off a year and a $201,400 annual salary to manage a $225 million transportation-authority budget.”
So, we works less than 10 months a year, makes $200K, and can retire after 5.5 years on the job and get $89K a year for the rest of his life….
I better polish my resume. There’s a cushy job opening!
http://www.bondbuyer.com/news/vallejo_california_unsecured_creditors_bankruptcy-1022294-1.html?ET=bondbuyer:e2782:2060276a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=BB_intraday_011911
B…b…but I thought Munis always paid 100 cents on the dollar! Vallejo, CA, offers its creditors 5-20 cents on the dollar. But as long as TBTF bankers get their bonuses and bailouts, it’s all good.
Easy enough to stiff some faceless muni buyer.
Not easy to face down the public union goons.
It will come - when grandma and the pension funds next time tell Vallejo to stuff it or pay a 20% interest rate for the actual risk of thier bonds.
http://www.telegraph.co.uk/finance/globalbusiness/8270412/Brazil-slams-brakes-to-curb-inflation-risking-hot-money-tsunami.html
Brazil just raised its interest rate half a point to 11.25% (not a typo) to fend off hot money flows created by Zimbabwe Ben’s $105 billion a month free-money POMO injects to his bankster masters.
Would not a higher rate in brazil attract even MORE American dollars?
Borrow USD at 0.001%, buy brazilian bonds at 11.25%. Plus the currency appreciation. The perfect carry-trade.
“Would not a higher rate in brazil attract even MORE American dollars?”
Dig deeper into the article and you will learn this is the case: The headline of the article says: “Brazil slams brakes to curb inflation, risking hot money tsunami.”
“… risking hot money tsunami” means just what you thought it should mean. It means money will flow from elsewhere to Brazil because “real interest rates” in Brazil will be driven to five percent.