Bits Bucket for February 7, 2011
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The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
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Ozzy at 62 still has it!
http://soundcheck.ocregister.com/2011/02/02/ozzy-osbourne-makes-fans-scream-at-gibson/43374/
I think I’ll be passing on visiting Ozzy at the Sanitarium up north,and Mick Jagger at the home for the has been’s. Do they relics ever ask themselves “How do I want to be remembered?”
“Ozzy at 62 still has it!”
Not to worry, I`m sure if he lives long enough they will find the cure.
LOL -Jeff that was funny. Speaking of relics, I hope his is zippered up.
A Russian real estate deal gone bad.
http://www.comcast.net/articles/news-politics/20110206/US.Fugitive.Russian.Lawmaker/
“A wealthy Russian lawmaker has fled with his family to the United States, where he says he fears assassination over accusations that some of Russia’s richest and most influential people swindled him in a real estate deal. Back home, he’s been charged with financial crimes.”
If the Black Eyed Peas halftime performance last night was not a sign of the apocalypse, I don’t know what is. Lol…
They sound like 2006 Lennar homes look.
Only as far back as 2006? I swear they recycled those space suits from Mr. Roboto.
From where I was watching:
1. Christina Aguilera stunk on ice
2. Black Eyed Peas sucked bowling balls
3. Commercials were the lamest ever
4. For the smallest, by far, home base of all, Green Bay is amazing
“4. For the smallest, by far, home base of all, Green Bay is amazing.”
But does it really make any difference where the team is from? If the Packers were bought up and moved to, say, Tuscon, wouldn’t they be the same team?
Pro football is a business. The teams are supposed to represent a city, but do they really?
Did any of the players that play for Green Bay come from Green Bay or were they all hired to play from some other place?
“But does it really make any difference where the team is from?”
Well, your honor, in support of my argument:
Exhibit “A” = NY Yankees
And then there’s the Brooklyn Dodgers.
The business models for baseball and football are completely different. Baseball keeps the money from their local media market so big markets mean lots more money. Football shares it and balances things out (though I imagine not perfectly). The two cannot be compared.
They are comparable in that they are both businesses and the fans show loyality to them as if they were something else other than businesses.
I live in the LA area, an area without a football team, something that is quite distressing to a lot of people who live in this area.
It make no sense when you think about it - whether a football team is based in LA or not - but nevertheless, there it is.
mac fans are more rabid than any NFL fan i have ever met.
Combo - football teams SHARE revenue. Like servers and busboys in a restaurant that pools tips. Baseball doesn’t. The Yankees have way more money than most other baseball teams, but the Giants don’t. A pro baseball team in Green Bay wouldn’t have enough money to turn on the lights. The Packers don’t have that problem. It changes the business analysis a lot.
“live in the LA area, an area without a football team,”
LA seems almost too big to have a team. Or, at least, the Coliseum itself is too big. You really can’t see a game from the cheap seats there very well. Not like a real football stadium.
Or did LA finally build a stadium? I’ve been gone many years.
If any team in the NFL is not ‘just a business’, it’s the Packers. I doubt they’ll be moving anywhere.
from Wikipedia
“The Packers are the last vestige of “small town teams” that were once common in the NFL during the 1920s and 1930s… The Packers are the only non-profit, community-owned major league professional sports team in the United States.”
Because they’re socialists, see?
The commies just won the superbowl.
“The Packers are the only non-profit, community-owned major professional sports team in the United States.”
Which means all the other teams are something other than “non-profit, community-owned major professional sports teams”, which makes my point.
“The commies just won the superbowl.”
The Green Bay Packers are, proudly, the only NFL team solely owned by the city they represent. Remarkable!
I didn’t watch the SB, but the commercial I saw on HULU “Imported From Detroit” from Chrysler had some heart and pride. I hope their cars match their rebirth message.
http://www.hulu.com/adzone2011#50120523
I liked that ad. There’s alot of great architecture in Detroit left over from the glory days.
JimA
I agree agbout the great architecture. I had no idea there was sulptures there. I truly hope it has a rebirth, pulled up from a second chance of the auto sector.
“Second chance” of the auto sector…. oh, you mean the “government takeover” of the auto industry.
Every time I see a rah-rah-USA commercial for Chevy*, I think of all the rah-rah-USA good ol’ boys who want a Silverado. Do they even realize that their beloved Silverado, along with everything else GM, was largely saved by the M_arxist C_ommie S_ocialist Kenyan they so love to hate?
——–
*yes, I realize this commercial was for Chrysler, I mean in general.
Every time I see a rah-rah-USA commercial for Chevy*, I think of all the rah-rah-USA good ol’ boys who want a Silverado. Do they even realize that their beloved Silverado, along with everything else GM, was largely saved by the M_arxist C_ommie S_ocialist Kenyan they so love to hate?
And they probably don’t know that some Silverados are built in Oshawa, Canada and Silao, Mexico.
Big effin’ pickup is today’s Cadillac.
“Big effin’ pickup is today’s Cadillac.”
True. Its kind of pathetic though. Why not drive a school bus for that matter?
I thought the suburban class SUV, WAS a school bus.
The short bus.
‘True. Its kind of pathetic though. Why not drive a school bus for that matter?’
My sides hurt from that one.
I didn’t watch the SB, but the commercial I saw on HULU “Imported From Detroit” from Chrysler had some heart and pride. I hope their cars match their rebirth message.
Ok - now some facts:
1. Chrysler STILL has not made a profit since it has “emerged” from bankruptcy
2. It probably never will as it is still saddled with insane union demands and pensions
3. Detroit is still a 3rd world socialist/democrat run hell hole. Nothing has changed there.
4. The 9 million dollar ad was paid for with taxpayer money. Eminem thanks you.
You guys, I get your point, and yes I know what you say is true, but it would be nice to see the U S car firms gtst (get their chit together) and we could compete in the world market with pride again.
We own a Vette, and its been a good car.
“but it would be nice to see the U S car firms gtst (get their chit together)”
FWIW the Japanese cars ain’t what they used to be. I gave up on Nissan years ago and now Toyota seems to be following them down the cost cutting rate hole.
In Colorado
I’ve owned two Nissans and I agree.Nissan has been very successful in the Hispanic market. My experience wasn’t favorable the second time around.
I owned a Honda (1979) and it lasted 10 years, racking up a lot of miles. I think you are right about Toyota.
My husband likes style and performance in his car, and I personally like one that is reliable and gets me around. We both love a car that is paid off.
“We both love a car that is paid off.”
A big favorite in our household as well.
“I owned a Honda (1979) and it lasted 10 years, racking up a lot of miles.”
In the UK Hondas are seen as the car for the geriatic set, their local equivalent of Buick. Young people over there wouldn’t be caught dead driving a Honda. Funny how marketing works.
“Hondas are seen as the car for the geriatic set, their local equivalent of Buick.”
I drive a Buick LaSabre. Recently, I took my BIL with me to visit my son in college. He (my BIL, not my son) brought along his handicapped parking hangy down tag. When it came time to use it, we couldn’t find a place to hang it. A Buick, a friggin Buick, should come with its own place to hang a handicapped parking tag!
2banana reminds me of all the management types I used to work with……..the “My way or the highway” types who are a big part of the reason unions exist to begin with.
These guys would always blast me for actually working with my union guys, not playing favorites, and not playing fast and loose with the contract/rules
My shop manager flat didn’t like a few of the guys in the shop, and kept trying to fire them. But because he never followed the rulebook/contract, so he could never make a termination stick. And every time he tried, he turned more of the guys in the shop into die-hard union types.
It was funny, because they used to beat me up (figuratively) for being “easy” on my crew. Which was strange, because I had double the terminations of any other supervisor in the shop. Why? Because I FOLLOWED THE CONTRACT on disciplinary procedures.
And it was no coincidence that the second shift guys got twice as much work done per guy, as the day shift did. Why? Because there was only myself and another foreman on duty as managers. All the other managers who insisted on fooking up the works went home at 5:00pm.
Crappy management existed for 2-300 years before unions.
Crappy management existed for 2-300 years before unions. and is the norm, not the exception.
Crappy management is job one.
Chrysler will never get out of debt until they MAKE A GOOD PRODUCT. The unions don’t design and engineer the product. Chrysler is just crap from the git go.
Japanese cars have gone downhill because they are now made in the US. At factories with $12hr shop floors and… typical crappy American management.
If it weren’t for the import tariffs, the Japanese would have put US car makers out of business 20 years ago.
Chrysler almost went out of business 30 years ago.
Not much changed since then.
Let’s not forget the FAT salaries of the CEO class in making American companies less competetive. They make much more than their workers compared to say Japan.
Personally, I though the “Oh boo hoo! Poor Detroit! Buy are cars!” was crappy. I liked BMW’s X3 ad. “Hey, look, we built and designed this car in the U.S. Consider buying it!” I considered it to be WAY more appealing. Of course, I can’t afford a BMW, but if I see a used X3 really cheap, I’ll be more more interested than before.
Detroit can go suck it.
“Of course, I can’t afford a BMW”
You and most Americans. And judging by the still weak auto sales (in spite of being 2 years into the ‘recovery’) a lot of Americans can’t afford to buy any kind of new car.
The “design” studio employs about a hundred people, max.
The assembly line guys are making $15.
The “engineering”, which is where all the high-pay salaries are, is where the money is, and that’s all done in Germany.
Just like everything else, they reduce their costs, but none of that ever translates to a lower price on the window sticker.
“1. Christina Aguilera stunk on ice”
i get really sick and tired of over-used melisma in popular music. doing it to the anthem is even worse.
the “lyric malfunction” is forgivable though.
Yes, it kills the melody, and makes a difficult to sing song impossible for the non-professionals in the audience to follow along. And no, I can’t forgive a professional singing at a major outing for not getting the lyrics right.
“…over-used melisma…”
You took the words right out of this public classical music snob / closet pop music fan’s mouth! My former violin teacher would say that she ‘gilded the lily.’
What about Italian art songs…plenty of hambone melisma in Caro Mio Ben. I can do some of it.
me·lis·ma: (–noun, plural . Music . ) an ornamental phrase of several notes sung to one syllable of text, as in plainsong or blues singing.
A-ha! So there IS a name for that annoying drama-queen vocalizing! It shows up a lot in gospel too.
I don’t know why they bothered with Aguilera; why not put Fergie on double duty for the anthem and halftime? Would have saved on travel costs…
Some refer to it as ‘coloratura’. As many critics pointed out, it makes it pretty much impossible for the fans to sing along.
Gee, I think I like the phrase”drama queen vocalizing” better. ‘Cause it’s all about showing off, not leading the crowd in song.
“Some refer to it as ‘coloratura’.”
That would be a very, very generous description of Aguilera’s melismas, to be sure!
Hmm. I’ve read several reviewers refer to her style as ‘coloratura’ (I too prefer ‘drama queen vocalizing’), and none refer to it as melisma. Is one a higher order of caterwauling than the other? I see melisma as referring to gregorian chants and the like, but I’m no musician (as everyone reminds me when I play the guitar).
Drama Queen Vocalizing has a technical name! Who knew? I know one thing… I have to change the channel whenever the Natl Anthem comes on at a sporting event because I know it will be excruciating.
The performance could have definitely benefited from a wardrobe malfunction.
Now that was a superbowl moment!
Super Bowl’s over - everyone go out and buy a house! Ot two!
Time to get ready for the red-hot spring sales season!
No superbowl commercials aired from mortgage thugs or other Housing Fraud pukes. Good.
Aside from that….. every last yard gain was a friggin’ war last night. What a joke.
“Euopean Debt Crisis…” is the headline. How can it be called a debt crisis? Isn’t it just a huge unpaid bill that needs to be paid.
Did the Titanic have a “leak crisis”? Or was the ship SINKING?!!!
Well, whaddaya know– peaceful anarchy. Could it be that people don’t really need a government watching over them every minute?
Egypt demonstrators entertain to keep morale high. (AP)
…
Inside Cairo’s main square, musicians stroll, a man reads poetry to the crowd and vendors hawk potato chips, tea, hot food , even socks.
…
Its all cool ’till you get a rock upside the head.
Or until your two week supply of potato chips and socks runs out.
where do they all go to the bathroom?
300 people have died so far in that “peaceful anarchy.”
Hey - the Muslim Brotherhood will give you affordable housing!
————————–
Emboldened Egyptians demand affordable homes
Reuters | 2/7/2011 | By Yasmine Saleh
Hundreds of Egyptians demanding cheaper apartments rallied outside a government office on Monday, emboldened to press their case by mass demonstrations calling for the overthrow of President Hosni Mubarak.
Many stood for hours outside the downtown offices with their application forms. Some shouted that they would join the protest camp in nearby Tahrir Square if officials did not give way: “If you don’t let us in, we will head to Tahrir.”
Sohir and Amr, a married couple in their late 30s who were looking for an apartment they could afford, said they would not leave the governorate office area until they got what they saw as their right.
Egypt’s population of around 79 million is growing by 2 percent a year and housing has not kept pace.
Two-thirds of the population is under 30, and that age group accounts for 90 percent of the jobless. About 40 percent live on less than $2 a day.
“The rent’s too damn high!”
“Emboldened Egyptians demand affordable homes”
Maybe their U.S. allies can help them set up federal agencies, like Fannie Mae and Freddie Mac, to help promote affordable housing?
“Two-thirds of the population is under 30, and that age group accounts for 90 percent of the jobless. About 40 percent live on less than $2 a day.”
Another interesting aspect of Egypt’s workforce:
70% of the actually employed work for the Government
The same Government the crowds are/were seeking to overthrow
And so this just in:
Egypt’s new cabinet announces 15% rise in salaries and pensions
Public sector measures announced in attempt to appease protests aimed at ousting Hosni Mubarak from power
Chris McGreal in Cairo and Mark Tran guardian.co.uk, Monday 7 February 2011 16.36 GMT
Connecting the dots, it seems Mubarak is pandering to the 70%. Maybe he is crawling up the learning curve slowly, but perhaps, we hope, too late.
Analysis: Mortgage rule could exacerbate housing slump
By Corbett B. Daly
WASHINGTON | Fri Feb 4, 2011 4:46pm EST
(Reuters) - U.S. regulators are gearing up for a landmark decision that could be pivotal in the recovery of the housing market — how much risk can mortgage lenders sell to investors without having to hold on to some of it themselves?
The new standard will determine what loans are deemed safe enough for lenders to sell without holding 5 percent of the value on their own books.
How officials choose to define these new ultra-safe loans — dubbed qualifying residential mortgages — will have implications for who can get a mortgage, the price they will pay and how quickly the struggling housing market revives.
“We are playing with dynamite here,” said Tim Rood, a partner at The Collingwood Group, a housing consultancy in Washington. “If the borrower is paying more, the borrower can’t afford as much house” and home prices would fall, he said.
http://www.reuters.com/article/2011/02/04/us-usa-housing-mortgages-idUSTRE7136K120110204 - 78k -
It has been a while since I mentioned it, so time for a repeat. When I worked on loan securitization transactions (the loans were mostly for cars, industrial equipment and some for credit card balances) we required the trust issuing the bonds to retain the riskiest 10% of the pool as an equity tranche. No exceptions no matter how safe the loans were. No exceptions for any reason. 90% was the maximum amount that could be sold. The clients whined. They sulked. They pouted. But if they wanted the law firm’s opinion letter on the validity of the bonds, they gave in.
Let’s get back to that.
I thought the major Wall Street Banks did exactly that, keeping the lower tranches of subprime securitizations on its own books, because while you could peel off some tranches off the top and make a steep profit the junk on the bottom would never, ever, be marketable.
It shows how the bankers were just not reckless with client funds, but were larding up the balance sheets of their employers with toxic assetts. They were all in it for a few years max to get their bonuses and to GTFO.
We must be getting past the SOL for clawbacks by now.
They actually took the lowest tranches, mushed them all together, got their math “brain trust” to say the magic words and turned them into new pools that issued bonds again. I believe that is the stuff that was originally termed “toxic waste.” Of course, as long as interest rates and lending standards kept going down, even this stuff paid off though a lot of it early because of prepayments (really flip sales or refinances).
When I was doing this, the stuff was not resecuritized. The tax partner said they had to continue to actually own it or it was possible 100% of the interest paid on the bonds they issued would be recharacterized as stock dividends, become non-deductible and result in huge tax liabilities for the trusts issuing the bonds. They did not screw around with that characterization. No one wanted to disclose to the bond holders that their expected payments might be reduced by 35% at any time if the whole deal was determined to be too thinly capitalized.
They actually took the lowest tranches, mushed them all together, got their math “brain trust” to say the magic words and turned them into new pools that issued bonds again.’
only an idiot would think by doing this they could pull A ratings off the top of the pile.
so are they idiots or criminals ? or both? and the worst of it is I pay for it, I get .06% on Money market and the bond market is telling me Inflation is up next. The FED in order to help banks keeps a steep yeild curve and blows a commodity bubble.
Polly,
this reminds me of a practice in my university’s cafeteria, where I worked while a student. The leftover cake (without the icing) would be added to the new cake batter. Yuck.
“I thought the major Wall Street Banks did exactly that, keeping the lower tranches of subprime securitizations on its own books, because while you could peel off some tranches off the top and make a steep profit the junk on the bottom would never, ever, be marketable.”
Then you missed one of the most entertaining/ludicrous aspects of the crisis.
The banks would keep the equity (lowest) tranches _briefly_. Then they would mix them up with the lowest tranches of other securities, call it a CDO, and sell tranches of that. Then they would take the equity tranche from that cr*p-stew, mix it up with even more garbage, and sell that too.
That the CDO’s made up of mostly various equity tranches got rated AAA boggles the mind.
Especially because they were all pooled and given “equity tranch” ratings according the rules. So there was little chance than only some of ‘em would go bad. It was all or nothing, and indeed, they went from few defaults to massive defaults very quickly indeed.
They will just use AIG to short the 5% they are expected to keep. Just like GS did. Then the gov will bail them out.
Too much micromanaging here. Just remove the government as the backer of last resort, break up these vertical monopolies (ie restore those sections of Glass-Steagal), get rid of those accounting tricks so that the ratings agencies actually have to rate correctly on mark-to-NOW, and watch the companies scramble to perform their own due diligence, as Polly says.
Keep dreaming.
The name of the game is “Rigged” and will stay that way barring some major sea change. And that won’t be pretty.
Surprising:
from the article
Federal Deposit Insurance Corp Chairman Sheila Bair wants to require 20 percent down payments to thwart the excesses that fueled the financial crisis. Industry heavyweight Wells Fargo has proposed an even tougher standard: 30 percent.
Industry heavyweight Wells Fargo has proposed an even tougher standard: 30 percent.
They’ve probably lost a bundle on low/nothing down loans and don’t want to repeat the experience.
this is fantastic news
Alas, this does not mean that loans with under 20%-30% down will not be made… it just means that whoever makes them will have to hold on to them. Still it is a step in the right direction.
wants to require 20 percent down payments ??
And what would be the consequences of this action besides making it much harder to purchase a home ??
How about rents going verticle ?? For the first time in a very long time it may become cheaper to own if you can….
“And what would be the consequences of this action besides making it much harder to purchase a home ??”
In a way you’re right. 20% won’t do much good until they unleash the shadow inventory.
Smithers, release the shadow inventory!
If you guys think the shadow inventory is being kept under wraps now, just imaginw what it would be like with no federal loan guarantees. The banks not wanting to sell for less than the loan balance on one hand and on the other hand not being able to make loans for private securitization without 30% downpayments? Yikes.
“Imagine what it would be like with no federal loan guarantees”
I’d like to SEE that, and also RAISE the banks an immediate “mark-to-market” on their REO.
Betcha most would “FOLD”.
Oh happy day
Now that bankers are flush with cash from their bailout they will be willing to crash the system again so they can pick up some real bargains.
“Now that bankers are flush with cash from their bailout they will be willing to crash the system again so they can pick up some real bargains.”
lather, rinse, repeat.
Politics & Policy February 3, 2011, 5:00PM EST
The Real Estate Lobby Is Ready to Rumble
Financiers, homebuilders, and real estate agents are uniting to save mortgage subsidies
By Lorraine Woellert
Barbara J. Thompson plans to put a human face on the high-stakes debate over whether to preserve cherished U.S. government subsidies for home loans. Hundreds of faces, in fact. Next month, she’ll lead a legion of “everyday people” to Capitol Hill to affirm the virtues of homeownership and urge Congress not to abandon federal support for low-cost mortgages. “These are your neighbors, they’re the people who teach your kids at school, they’re your firefighters,” says Thompson, executive director of the National Council of State Housing Agencies, whose members help provide loans to first-time home buyers. “The middle working class is the bedrock of our country.”
Joining Thompson’s cause will be thousands of homebuilders, real estate agents, civil-rights leaders, and bankers who aim to deliver a similar message to Congress: Preserve government support for housing. Together, these groups represent what one might call, with apologies to President Dwight D. Eisenhower, a real estate-industrial complex that transcends partisan politics, geography, and socio-economic divides.
What unites them is a desire to protect a near-century of grants, tax breaks, and insurance policies funneled in large part through the government-owned mortgage-finance companies Fannie Mae (FNMA) and Freddie Mac (FMCC), which played starring roles in the U.S. housing crisis. Fannie and Freddie bought home loans from banks and sold them to global investors with an implicit government guarantee to cover losses in the event of a default. The arrangement helped foster an $11 trillion mortgage industry and supported a housing sector that overheated—and then started unraveling in 2008.
http://www.businessweek.com/magazine/content/11_07/b4215033159758.htm - 59k -
’she’ll lead a legion of “everyday people” to Capitol Hill to affirm the virtues of homeownership and urge Congress not to abandon federal support for low-cost mortgages…. “The middle working class is the bedrock of our country.”
‘Joining Thompson’s cause will be thousands of homebuilders, real estate agents, civil-rights leaders, and bankers who aim to deliver a similar message to Congress..’
‘Together, these groups represent what one might call…a real estate-industrial complex that transcends partisan politics, geography, and socio-economic divides.’
Bedrock of our country? Civil rights leaders? Transcending socio-economic divides? Here’s one of those homebuilding middle-class guys; except he has Picassos on his mansion walls:
‘With housing sales soaring, homebuilders are the toast of this year’s FORTUNE 500–and none is riding higher than luxury specialist Toll Brothers…Toll has rewarded himself for such spectacular returns with an extremely generous pay package…For fiscal 2004, Toll pocketed a bonus of $30 million–and it would have been $50 million if he hadn’t requested that the board adjust the over-the-top formula to something more reasonable. This year his bonus, with the formula adjusted downward again, is likely to hit $29 million. “I deserve it,” says Toll. “Look at all the value I’ve created for shareholders!”
http://money.cnn.com/magazines/fortune/fortune_archive/2005/04/18/8257004/index.htm
And here’s a couple for you Business Week:
‘Just when it looks like housing construction is finally going to cool off we get another number like today’s stat from the government. Construction began in November on 2.12 million privately owned homes (seasonally adjusted). That’s up from 5.3% from October and 17.5% from last November. And it doesn’t look like this is the end of it, either, because permits are up, too…’
‘It feels to me like the buyer’s market is flipping over into a seller’s market.’
http://www.businessweek.com/the_thread/hotproperty/archives/2005/12/an_overhang_of.html
‘Weakness in Housing? Forget It
The November numbers put to rest the pessimists’ claims that the market is popping or about to. If anything, it’s gaining steam…Residential construction in the quarterly GDP reports grew at a 10% rate through the first half of 2005 and is likely to post the same 10% rate in the third quarter once these figures are revised upward again in the final GDP report for the quarter. ..’
‘Virtually no evidence points to any wavering in this sector, despite pessimists’ efforts to keep finding signs of weakness.’
http://www.businessweek.com/investor/content/dec2005/pi20051220_1661_pi001.htm?chan=search
a real estate-industrial complex
a Military-industrial complex
a Medical-industrial complex
a disappearing middle-class jobs complex
Bugs: “eh, what’s up Doc?”
don’t forget the Education-Industrial Complex.
And the insurance industrial complex.
Let’s go further. For the past 30 years, virtually the only form of federal spending that has actually been cut as a share of GDP, other than cash welfare for poor people, has been rental housing assistance for poor people in older cities — public housing and Section 8.
Not that its a bad thing — federal housing assistance did a lot more harm than good to older cities.
But meanwhile the federal government has been subsidizing suburban sprawl and excess housing size like crazy.
Much of the middle class doesn’t benefit, because the standard deduction is worth more. These days the rich don’t benefit as much either, because of the AMT. People who rent don’t benefit. People who economize on housing don’t benefit. Only affluent (but not rich) people who blow big bucks on housing benefit.
If they really want to subsidize homeownership at the expense of renting, put back that first time homeowner credit and repeal this monstrosity.
Anyone organizing a counter protest? Because I have to tell you, if the tea party actually got out there and organized a large group to support getting Fannie and Freddie and a few other groups out of the way of private lending standard mortgages, it would prove they have some measure of consistency in their message.
Less government is easy to chant. No federally guaranteed mortgages is a lot harder to say.
I’m guessing a fair number of those demonstrating in support of the mortgage deduction ARE Tea Party members. And they see no irony or double standard in their position.
The tea party hasn’t quite caught on that “less government” also means “less government cheese.”
Or maybe they’re attempting to draw a line in the (shifting) sand: This much cheese, but no more.
The problem with any political movement. Add numbers, attract hypocrites and self dealers.
“This much cheese, but no more.”
And it has to be American cheese! Wrapped in individualist slices. Like our Founding Fathers ate, under God, when they wrote that great Constitution thing! You betcha.
But it’s must be Holy Cheese…. deemed circumscribed by the one and holy bat$hit crazy high priestess of stupidity.
“And it has to be American cheese! Wrapped in individualist slices.”
Wrapped in RUGGED individualist slices.
How about a big glob of communist cheese where everyone is entitled to one bite and required to eat from the same glob?
No. I prefer the capitalist way. All for me, none for the rest of you. Now go pull yourself up by your bootstraps. No boots? Tough luck.
It also means less regulation and safety oversight and that means rocket fuel in your “cheese” and anti-freeze in your toothpaste and baby formula and all the salmonella you can eat.*
(*events that already happened just a few years ago)
TeaParty supporting friend of mine was going on and on about how the government better keep their hands off his MID. I replied by asking why, as a non-loanowner, I have to subsidize his housing.
He replied that, as a person against excessive taxation, the MID gives him an opportunity to get some of his stolen income back. (which basically means that I’m the Socialist for wanting to redistribute his redistributed wealth). I replied why not everyone give up these deductions, we pay off the debt, stop spending, then lower taxes for everyone.
After a few moments of silence I, childless, said: “Now about that Child Tax Credit thing you’re newly able to take advantage of…”
I don’t know if the disconnect exhibited by TeaBaggers is a result of ignorance or hypocrisy.
Ignorance. (and proud of it by damn!)
Was that a trick question? How long have you lived in this country?
Ooops… Good point. I stand corrected.
By the way, I’m not sure if he bought another first, or if he is renting, but he also walked away from a house in Tucson about 6 months ago, leaving the we the Socialists to pay for it.
By the way, I’m not sure if he bought another first, or if he is renting, but he also walked away from a house in Tucson about 6 months ago, leaving the we the Socialists to pay for it.
Yeah, we Tucson socialists really appreciate that. BTW, if he does any further whining in your direction, tell him that this Tucsonan said that he could kiss my cactus.
Hearsay, just like when I was talking to a limousine communist friend of mine. He said that he supports equal distribution of income and resources. I asked if he was willing to give up his substantial fortune and massive resource consuming house in a gated community. Of course the answer was no.
Calling it hearsay doesn’t make it invalid. These are real Americans with voting power equal to yours and mine. Their hypocrisy needs to be exposed. Maybe then we can get somewhere.
Who called it “hearsay”?
Barbara J. Thompson plans to put a human face on the high-stakes debate over whether to preserve cherished U.S. government subsidies for home loans. Next month, she’ll lead a legion of “everyday people” to Capitol Hill to affirm the virtues of homeownership and urge Congress not to abandon federal support for low-cost mortgages. “The middle working class is the bedrock of our country.”
She doesn’t want a true, human face. She wants to continue the masquerade. The stupid c… can go f… herself. Those policies she’s supporting have kept the cost of housing artificially high my entire working life. Trying to buy in such an environment was the worst possible thing I could ever have done financially. She needs to meet some other people, ordinary working class Americans, not just those that have leached off the system or disproportionately benefited from a rigged system during the past three decades.
Eloquently stated Greg….. I like the venom.
The Egyptian stock market has been closed since Jan. 30.
Banks were opened yesterday with people standing 100 deep to withdraw money.
The Egyptian stock market is supposed to re-open tomorrow.
Demonstration still happening daily.
A pipeline to Jordan/Israel went up in smoke over the weekend.
Egypt want to put more troops in the Sinai. Israel says no.
Sound be an interesting week…
Sound be an interesting
weeknext decade…No worries, America has the solution:
a Military-industrial complex
Motto: “Shazam!-No-Nation-we-can’t-force-into-western-democracy-behaviors-just-like-US”
Motto #2: “Give-US-Evenmore-US-Taxpayer-Funding!”
Yep.
+1 “you break it, you bought it”
-1 boring slide shows with the General Assembly
“you break it, you bought it” ??
More like HE broke it and WE bought it….
The protesters will be crushed/starved. If the choice is protect Israel or support democratic reform in Egypt I’ll bet against the protesters. By September Obama will be doing deep bows to the new Egyptian military rulers.
If the US doesn’t protect Israel, then Israel will protect itself. That brand of protection will likely involve destroying the oil-producing infrastructure in neighboring countries.
US envoy’s business link to Egypt
Obama scrambles to limit damage after Frank Wisner makes robust call for Mubarak to remain in place as leader.
By Robert Fisk in Cairo
Frank Wisner, President Barack Obama’s envoy to Cairo who infuriated the White House this weekend by urging Hosni Mubarak to remain President of Egypt, works for a New York and Washington law firm which works for the dictator’s own Egyptian government.
Mr Wisner’s astonishing remarks – “President Mubarak’s continued leadership is critical: it’s his opportunity to write his own legacy” – shocked the democratic opposition in Egypt and called into question Mr Obama’s judgement, as well as that of Secretary of State Hillary Clinton.
http://www.independent.co.uk/news/world/americas/revealed-us-envoys-business-link-to-egypt-2206329.html
Housing Bubbles Are Few and Far Between
By ROBERT J. SHILLER
Published: February 5, 2011
WHAT’S the outlook for home prices over the next decade? It’s not easy to tell. We need to confront the basic fact that near the beginning of the 21st century, the market for homes in much of the world suddenly became more speculative than ever.
This enormous housing bubble and burst isn’t comparable to any national or international housing cycle in history. Previous bubbles have been smaller and more regional.
http://www.nytimes.com/2011/02/06/business/06view.html - -
Interesting piece. I am surprised he omitted the Great Florida Land Boom of the 1920s, a manifestation of the ‘Roaring Twenties,’ from his historical retrospective of land price bubbles, as the collapse thereof in 1926, just three years before the onset of the Great Depression in the Great Crash of 1929, anticipates the recent collapse of the sequential collapse of the Housing Bubble in 2006, followed by the stock market collapse in Fall 2008. I have not explored whether the financial connection between the Florida Land Boom and Wall Street resembled in any way that of the Housing Bubble and the Wall Street mortgage securitization sump pump in the 2000’s.
I concur with Shiller that the wild card in the current bust is the effect of the Fed’s and federal government’s extreme interventions in housing. So far, the effort to prop up prices seems to have had the effect that elementary economic theory would predict: A tremendous drying up of transactions volume and increase in vacancies. How they unwind this unsustainable situation from here is anyone’s guess; mine is that while they have not succeeded in overturning the economic law of gravity, they have replaced a fast crash with a protracted ride to the bottom — similar to Japan’s (1990-2011 and counting).
…
But, of course, the relevance of this long history isn’t entirely clear. In contrast to the 19th century, when the business cycle proceeded without much constraint, we now have the Fed and an active government housing stabilization policy, both of which mitigate the cycle’s more extreme effects. And now, the Dodd-Frank law has created a Financial Stability Oversight Council, which is supposed to go even further to prevent instability.
…
At least the 1920’s Florida boom/bust gave us the Marx Bros. movies.
Does anyone have thoughts on how many more years will elapse before a majority of Case-Shiller housing questionnaire respondents will express the view that real estate is the “worst investment?”
‘With Karl Case of Wellesley College, who developed the S&P/Case-Shiller Home Price Indices with me, I have been surveying opinions of home buyers in the United States on and off since 1988. We have found a fairly steady downtrend since the early-to-mid-2000s in a number of speculative attitudes. On questionnaires, people are less likely to report that they think of housing as an investment, or to express the view that real estate is the “best investment.”
As an investment, in fact, they are more likely to see housing as risky. Although they still have solid expectations of home price increases over the next 10 years — a median of 5 percent annually, in nominal terms — those expectations have been declining and are not nearly as extravagant as they were before the market peak.’
There are STILL plenty of people who think that a return to high prices is just around the corner.
I looked at the MLS this morning, and I have to say the market is in a Mexican Stand Off (in my moderate price range). So, maybe buyers in my area of So Ca are actually seeing the light, and taking their time. But JimA, I’ve met many clueless MSM driven navie people, too. You’re right.
I am not interested in this particular home (two-story), but it did drop from $465K to $399K in 3 months. Progress. Still not under contract as of this morning.
U.S. housing reform at risk of stopping way short
Feb 4, 2011 13:44 EST
By Agnes T. Crane
America’s mortgage market almost sank the world economy. But no one has yet done anything to fix it. After blowing two deadlines, the government’s ideas are finally due out as early as next week from the U.S. Treasury, and these recommendations will frame the debate. But the danger is they will be premised on dogma that should in fact be seriously questioned.
Proposals have been circulating ever since the previous administration seized Fannie Mae and Freddie Mac in 2008. Most agree that both entities should be wound down, one way or another. But whether government should still have a role subsidizing housing finance is still up for grabs — or rather, few seem able to resist the idea that it should. The trouble is that financial types have become accustomed to a government safety net, and few of the constituencies involved are willing to challenge key U.S. housing myths.
Myth 1: Significant reform will kill the housing market.
Many fear any major overhaul of U.S. housing finance will slam a still tottering housing market. If America scraps its current system tomorrow, that’s what will happen. At a minimum, removing the government subsidy should nudge mortgage interest rates higher, potentially knocking home prices down further. But the UK took more than a decade to phase out tax deductions on mortgage interest. Homeowners, would-be homeowners and mortgage lenders can adapt to even a potentially wrenching change if there’s a five or 10-year transition period. The United States needs to get started on a plan.
http://blogs.reuters.com/columns/2011/02/04/u-s-housing-reform-at-risk-of-stopping-way-short/ - 42k -
This article is BS. She bases her mythbusting on interest rates, % homeownership, and comparisons to Europe!
Read this drivel:
——-
Myth 5: Government subsidies promote home ownership.
Home ownership rates in the United States between 1998 and 2008 averaged 67.8 percent, just ninth highest out of 17 developed nations… Moreover, the study found that American homeowners paid significantly higher mortgage rates, roughly 1.5 percentage points more, than those in Europe. That means that even if home ownership is a worthy policy goal — a big “if” in itself — then subsidizing mortgages is not the way to do it.
——
What good is the rate of homeownership if half those homes are underwater?
What good is a low interest rate if it resets in three years? (not to mention the actual principal! Does NO one even LOOK at principal?)
Less homeownership than in Europe does NOT mean that subsidies don’t promote buying at all. All it means is that American subsidies promote LESS ownership than European subsidies. (Remember nhz’s posts about the Netherlands subsidizing the huge bubble there, far worse than US?) Ross should have used American circa 1960 as her control for comparison, NOT modern Europe.
Home ownership rates in the United States between 1998 and 2008 averaged 67.8 percent, just ninth highest out of 17 developed nations
And, for a longer historical perspective, consider the period stretching from 1965 to the late 1990s, when the homeownership rate started rising dramatically. During this 30-plus-year period, the HO rate fluctuated between 63 and 66 percent. Pretty tight range.
We’re now down to a shade above 66%. And I think that we’re going to get back into that 3% fluctuation range before too long.
Another return to historic norms is in the offing.
” Significant reform will kill the housing market.
Many fear any major overhaul of U.S. housing finance will slam a still tottering housing market.”
We don’t need reform to kill the housing market, time will do it for us. America’s economy is based solely on a ‘consumption’ model. As reigns are applied to spending either voluntarily or non-voluntarily (loss of wages/lower wages) the housing market will go into free fall. Banks can’t keep holding vacant property a fire hazard, not pay property taxes, and watch property go into disrepair for much longer. Time is our ally, not the bank’s or the government’s.
Consumers Take a Compounding:
(CNN) Blake Ellis, staff reporter, Monday February 7, 2011, 5:33 am EST
Toni Riss had a credit card with a 79.9% interest rate.
The 58-year-old woman from Texas thought she struck gold when she found the First Premier card, which is aimed specifically at consumers with poor credit.
“I had an accident on a motorcycle, went through bankruptcy to pay for medical expenses and my credit went to hell in a hand basket, so I was looking for credit cards for people with bad credit” Riss said.
They granted her a card with a $300 limit — typical for new customers — and a starting rate of 29.9%, which Riss said she considered decent given her credit score.
But about six months after opening the card — at the end of 2009 — she received an unwelcome surprise in the mail.
“I about had a heart attack when I got a disclosure notice saying that my starting rate of 29.9% was going up to 79.9%,” said Riss. “It was ludicrous. Talk about a highway robbery.”
At that same time, First Premier Bank launched a new credit card with the sky-high 79.9% rate.
The card proved popular with consumers, said First Premier Bankcard CEO Miles Beacom, but the performance was bad: “A lot of the people ran up the card, defaulted and went directly to charge off.”
As a result, they dropped the rate to 59.9%. “We also tested it at 23%, 33%, 45%, but 59.9% is the one that shows the best performance and where the organization can market the product,” he said.
Since then, nearly 700,000 people have signed up for the card — and more than half of them carry a monthly balance.
“Since then, nearly 700,000 people have signed up for the card - and more than half of them carry a monthly balance.”
At a 59.9 percent interest rate?
Lol. People are smart.
If you have bad credit, even a $300 limit is better than none at all. It’s a good way to build credit after BK, especially if you charge small stuff and pay it off every month.
However, we have GOT to do something about the health care. I hear FAR too many stories of people who go into debt when a medical issue wipes them out. At the very least, it would reveal just how many of out BK’s had back medical luck, and how many BK’s are irresponsible deadbeats.
The problem is that you find out it is often a combination of both. A medical bill may have been the final issue that pushed someone over into crisis mode, but if you look at the economic behavior for the 10 years prior, there could have been enough savings to cover a $10k medical bill or a lot of it. The fact that there wasn’t doesn’t make you an irresposible deadbeat, per se, but you aren’t as careful as the next guy over. There are plenty of other issues, of course. If the big medical bill comes at the wrong time (right after going broke to pay for education, for example), there may never have been a chance to save up a cushion.
It is just harder than you think to pull meaningful data out of things like this.
I would suggest not using credit cards to pay medical bills but work with the provider. Often they won’t and proceed to sell the debt to a collection agency. Their loss, I would not bother to pay the collection agency. Medical Bills are very hard to collect on in court I have been told. And I’m willing to bet a Judge won’t set-up payments at 59% interest
“Medical Bills are very hard to collect on in court I have been told.”
Is a judgement for medical bills any less enforceable than a judgement for other debts?
I think you have been mis-informed.
Medical bills are probably hard to collect on as a practial matter because people with giant medical bills likely don’t have insurance which means that, on average, their work is lower paying and less consistent and there may not be a regular paycheck to garnish. It is because of the characteristics of the people who owe the money, not the characteristics of the debt. Oh, except for the fact that medical bills are unsecured. They can’t reposess your no longer broken wrist.
Good point, polly; there is likely a correlation there in terms of insurance and assets/income. But I still think the advice cactus was giving was off the mark.
Their ability to collect from any given individual depends on that individual’s assets and their income stream; if the capability to pay is there, the collections process will not draw a distinction based on the fact that the debts sprung from the medical arena. It is no easier or harder to collect than any other debt, if the assets/income are there to support payment.
You left out 19% unenjoyment.
No matter how responsible you are, no job/bad job = effed.
Remember, most people don’t make 50k+ a year.
ecofeco
You’re on the right track. We pay our individual plan out of pocket, having taken 12% annual increases for 5 years, our premium has doubled, and we get less coverage. Now, it’s looking like March will be our last month for coverage. For many of us middle class, we just can’t afford coverage anymore, as our incomes have taken a substantial hit. Premiums are very expensive.
I hate to make you feel even worse, but think of all that money back in your pocket instead of never seeing it again and having gotten NOTHING for it.
I effing HATE the medical insurance racket.
ecofeco
I hear you, and in general you’re right. Unfortunately, my EE husband was diagnosed with Glaucoma 2 years ago. His Surgeries saved his eyesight, but we just can’t afford it anymore. It is a racket. $1,200/mo is freakin insanity.
Our premiums didn’t go up due to the Glaucoma Surgeries. The inflation was factored in, yet the services diminished. (It’s charted per age and zip code)
The industry needs regulation. The top brass are immoral greedy sob’s. Wendel Potter (Former Cigna Bigwig)told a pretty dark tale one PBS one night. Frightening stuff.
capital one jacked up purchase rate to 15.9 %.The new credit card laws did not but screw people more, stoopid!!! I wont pay these loan sharks that kind of rate.
Any credit card company that advertises as agressively as Capital One has to be screwing over their customers. Companies that put out really good ones, don’t need spend that sort of money to attract the people they want to hold their cards.
Same is true of insurance companies. The policyholders are paying for all those Geico, Progressive, Allstate and State Farm TV ads.
Suckahs!
Don’t you know it!
Well, since we no longer have to hunt and forage for our food*, we can now hunt for the lowest insurance rates/cc rates/mortgage rates, etc.
*subject to change without notice
“The policyholders are paying for all those Geico, Progressive, Allstate and State Farm TV ads.”
Almost four years ago we switched all our insurance from State Farm to Allstate and saved $700/year. We recently switched from Allstate to Geico and saved $200/year. Deflation in the insurance industry?
“Deflation” in claim payoff and service.
I’ve gotten a Capital One promotion or two.
What do I do with them? Well, I write rude things on the application. “Crap-ital One!” is one of my favorites. I also like to say “Debt = Slavery.”
If I’m not in the mood to write, I just scribble all over the application. Sort of like a two-year-old.
Next, I put the whole shebang back in the post-paid envelope and fire it right back at Crap-ital One. Darn, that feels good.
Don’t waste your ink writing anything - just send the empty envelope back to them.
just send the empty envelope back to them.
DANG I keep forgetting to do that…lol.
Please make sure that none of your personal information (even if it is just your name and address) are printed on any materials you send back. Anything like that should be shredded.
If they used softer paper to print on, I could think of an even BETTER thing to do with their applications.
That woman on the Progressive ads gives me the creeps. She looks like a nurse in one of my worse nightmares!
‘That woman on the Progressive ads gives me the creeps. She looks like a nurse in one of my worse nightmares!’
That’s Flo. She reminds me of the 1980’s for some reason.
Professional comedienne, now making the best $ in her life. Love her!
My Costco American Express card gives me about $400 cash back and another $200 coupon to spend at costco: every year.
It is beyond me why anyone would pay for a credit card.They pay me to use their credit card, and that’s the way I like it.
Of course, we pay the bill in full each month.
Abercrombie: Some Retirees do not “make positive contributions in our community”
As a candidate, Neil Abercrombie said over and over again, “We Will Not Be Raising Any Taxes.”
But as Governor, Neil Abercrombie has a different message for many of Hawaii’s seniors—you’re not contributing, you’re escaping your responsibilities and, as Governor, I will force you to “make positive contributions in our community.”
Many retirees will be surprised to learn that the newly elected Governor has a problem with many retirees and thinks he is entitled to determine who among them are “making a positive contribution.”
Who are these “wealthy retirees?” According to Abercrombie, you are “wealthy” if you have “an annual federal adjusted gross income (over) $37,500 for single filers and $75,000 for couples.” Abercrombie assures readers that “fewer than half of current pensioners will be affected” – translation: “almost half of you will be forced to pay”.
http://www.hawaiifreepress.com/main/ArticlesMain/tabid/56/articleType/ArticleView/articleId/3692/Abercrombie-Some-Retirees-do-not-ldquomake-positive-contributions-in-our-communityrdquo.aspx
At the risk of venturing into the flames, I’m going to say the following:
I live in a community with a very high proportion of retirees. And I’ll have to say that a lot of them fit Gov. Abercrombie’s description to a tee. A more selfish, entitled bunch is hard to find.
This is not to say that all elderly people are like this. A very dear (now deceased) friend prided himself on his $4-a-day diet of oats, beans, rice, and powdered milk. And he was a very healthy fellow. A very avid bicyclist until late in his eighties.
He lived so frugally because he wanted to leave as big an estate as possible. And ISTR when it was totaled, it was well in excess of $1 million. Not bad for a guy whose highest annual salary was $36,000.
A lot of local organizations benefited from his generosity.
I bet so did the government. We have to tax the people like him so that Obama can have his superbowl party and Bush his wars.
Wow. Here I thought “making a positive contribution to the community” meant doing volunteer work and/or “donating to charity.
Silly me.
Nice try, 2banana. First, a little perspective on the link:
“Hawai`i Free Press brings out points of view based on free enterprise, small government, and individual liberty as a counterpoint to what is presented in the rest of Hawai`i print and television media. ” (In other words, a wingnut-funded one-man-band.)
Secondly, the article is a one-stop-shop for all your wingnut talking point needs, in the whiniest language imaginable. Seriously, it reads like a junior high spiral notebook. I was surprised to see no ” ♥♥ Mrs. Rush Limbaugh ♥ *sigh* ♥ ” doodles in the margin.
Thirdly, what is the editor railing against? From Ambercrombie’s original op-ed:
“But it is not right for wealthy retirees to pay no state taxes on the pension part of their income while others — people who work in Hawaii and retirees with non-pension income — pay their state taxes. People whose retirement income comes from 401(k), IRA or annuities pay state taxes…Those who are affected will be only proportionately. The proposal does not affect Social Security benefits.
Second, the proposal will align Hawaii with most other states and the federal government. It will treat pension income the same as other kinds of retirement income for tax purposes, like the people who pay state taxes on IRAs and 401(k)s mentioned above.”
http://www.staradvertiser.com/editorials/20110206_Pension_tax_would_end_preferential_treatment.html#disqus_thread
The local numbers for a national story…
CHICAGO (WBBM) – The Chicago-area economy is bracing for dramatic changes as more than 2 million Baby Boomers begin hitting retirement age.
Among projected events is greater pressure on an already depressed housing market as Boomers sell their homes. Also, there will be greater demand on government service such as Medicare, while Baby Boomers who are no longer working will contribute less in taxes.
Many employers could also find themselves short of skilled workers.
Furthermore, from 2020 to 2030, the Illinois economy is expected to grow buy just 1.4 percent a year, down from 2.4 percent this past decade, and more than 3 percent in the 1990s when the Baby Boom generation hit its prime.
Now, so far the 2010 census seems to confirm that the outmigration to the Sunbelt is continuing, albeit it has slowed a little. IIRC, IL is expected to lose two sets in the House. So that projected growth rate for the twenties (1.4%) seems all the more ominious.
Now, so far the 2010 census seems to confirm that the outmigration to the Sunbelt is continuing, albeit it has slowed a little. IIRC, IL is expected to lose two sets in the House. So that projected growth rate for the twenties (1.4%) seems all the more ominious.
Wow - seems no one wants to live under high-tax, insane unions, socialist/democrat government…
No where do they move/retire to? Oh - low tax, right-to-work, states…
Which have low paying jobs and high unemployment. I guess if you’re a retiree with a fat pension it doesn’t matter.
Where do workers flee from?
Right-To-Work-For-Less states.
That “massuhs knows better than the sharecropper/slaves” culture is a hard thing to shake.
Especially when you think you are a “massuh”
I’m a Massuh…. at least dey told me I’d be a massuh sum day if I just work hard enough!
“Among projected events is greater pressure on an already depressed housing market as Boomers sell their homes.”
Flawed premise from the git go.
HOW will they sell houses? People that make $12hr don’t buy houses. And as far I can see, that’s the new avg wage for decades to come.
How are they going to retire? Between stock market losses, housing equity drops, unfunded pensions, 201Ks, and increasing health care costs, I predict large numbers of boomers are going to put off retirement until they are incapable of work or downsized.
And I’ve got news for the policy planners. Being downsized in ones 50s is not the same as early retirement.
I also predict that boomers will die in large numbers in their 60s and 70s as poor health care, poor health maintenance, and homelessness take their toll. And that will save both Social Security and Medicare for younger generations.
And not to worry, there will be many boomer techies who will continue to work. This may be the healthiest segment of the boomer population, so they can keep their noses to the grindstone into their 80s.
Many employers could also find themselves short of skilled workers.
I have my doubts about that. We continue to have a substantial surplus of labor. The newer employees we’ve hired typically have superior technical skills to the boomers that are retiring, so I really have doubts about any shortage of skilled labor. The shortage is in jobs, not labor.
And if employers truly find themselves with a shortage of skilled labor, then they could always increase wages and benefits as one means to attract more workers. Heaven forbid should they actually spend the piles of money on which some are sitting on worker salaries instead of CEO compensation.
wow - another JimtheRealtor video.
somehow missed the link. http://www.youtube.com/watch?v=Kd_AuAMHEfc
the link: http://www.youtube.com/watch?v=Kd_AuAMHEfc
I just LUV public unions.
Remember these figures when SF and CA go begging to the Federal Government for more bail-outs…
——————————-
Retiring S.F. police brass cash in on way out
San Francisco Chronicle | 2/7/11 | Phillip Matier, Andrew Ross
In the game of megabuck public paychecks, outgoing San Francisco police brass are hauling away the gold.
New city records show that former Police Chief Heather Fong - who retired in 2009 - received a grand total of $528,595 in her final year.
The goodbye check included her final year base pay of $187,875, plus $303,653 for unused vacation, sick and comp time, plus $37,067 in other pay.
Now that she’s gone, she’s pulling down an annual pension of $229,500 for life.
Former Deputy Chief Charles Keohane, who exited in 2009, received $516,118 in his final year - $325,503 from accrued vacation, sick time and premium pay.
Another retiree, Commander Morris Tabak, clocked out with $425,558 - $173,703 in unused sick, comp and vacation time.
Of course, both Keohane and Tabak get six-figure annual pensions as well.
Hey they got nuth’in compared to the private sector.
When the CEO of Exxon retired a couple of years ago he got 400 Million cash/stock + lifetime health care + use of Exxon corporate jets + life insurance to shield his estate from Estate taxes. He was a billionaire several times over before he retired. There are thousands just like him too.
what is your point?
My point was that the public employees just get more bad press than the private sector. I would be last one to say what a person is worth. You might be worth a million bucks!
Side note: I’m pleased to see the Huffington Post get swallowed up by AOL today. Now with MSNBC merged into Comcast maybe we will finally see a clean sweep of all those left wing news outlets. I’m guessing the Democrats should be extinct by 2014 (Jane Harman dropped out today). I’m ashamed to say I voted Dem last election but I’ll never waist my time voting again.
It’s interesting that you use the word “extinct” to refer to Dems, when a study of politics v. demographics would suggest otherwise.
Well I’ll bet redistricting over the next 2 years will pretty much neutralize the demographics. Sure there might be lots of democrats out there but they are utterly powerless now that the GOP controls 75% of all the state governments.
Well I’ll bet redistricting over the next 2 years will pretty much neutralize the demographics.
Not necessarily.
In states like AZ, population growth has been heavy among Latinos. Likewise, TX and CA. So, don’t take the realities of our Southwestern population growth as a slam-dunk for the Republicans.
In Texas there will be a new voter ID system that should thin out the minority vote and new redistricting will pretty much lock in the GOP for the next ten years.
Slim, are you aware what is happening in your own state? Check this out :
“A new proposal at the Arizona Legislature will take the state’s fight with the feds to a whole new level: It would let the state actually nullify federal laws that legislators believe are invalid.”
Demographics changes so does the politics and political parties.
A Hispanic republican governor not supposed to happen, 2 Black republican congressmen not supposed to happen if you believed in demographics.
Everything changes. Political parties will adapt.
The point is that it’s very easy for the usual suspects to single out a few public servants who abuse the pension system, and then use those examples to declare the entire public pension system as corrupt.
But if you point out that the private sector has just as many high management types who retire with gold-plated plans, while leaving the worker bees with only a flat or drooping 401K, you hear only crickets.
it’s very easy for the usual suspects to single out a few public servants who abuse the pension system ??
Abuse imply’s somewhat that they are doing something wrong…They are not abusing it, they are just extracting as much as they can with the protection of their Union…As far as High Management types. let me give you a low management example then…One of my very good friends (we graduated high school together) works in the water department for the city…He reads water meters…He currently makes $84,000. per year plus the gold plated benefits…He will retire in three more years with 83% of his pay….
These numbers are NOT the national norm.
So yes, the article is a cherry pick.
What union did Robert Rizzo, former manager of Bell CA, belong to? Despite not being a member of a union, apparently, Mr Rizzo did not comport himself like one of those uber-upright titans from Atlas Shrugged.
—
New city records show that former Police Chief Heather Fong - who retired in 2009 - received a grand total of $528,595 in her final year.
The goodbye check included her final year base pay of $187,875, plus $303,653 for unused vacation, sick and comp time, plus $37,067 in other pay.
For that matter, what union did Jack “Slash-n-Burn” Welch belong to?
What union did Stalin belong to?
The Soviet Union, of course.
NickBananaRepublic,
Why do you wage war on yourself and your working class brothers?
The Economist
Greater expectations?
Inflation is rising, but worries are overstated
Feb 3rd 2011 | from PRINT EDITION
WHEREVER you are reading this article, inflation is probably in the news. Soaring commodity prices are pushing up consumer prices across the globe. The pressure is clearest in fast-growing emerging markets, where people spend a big slice of their incomes on food. China’s inflation rate is hovering around 5%, Brazil’s is approaching 6% and India’s remains close to 10%. Even in enfeebled rich economies the “I” word is back on the front pages. Britain’s consumer prices rose 3.7% in the year to December. Prices in the euro area rose 2.4% over the past year, above the European Central Bank’s goal of 2% or less.
The big worry is that global monetary conditions are far too loose, thanks both to rock-bottom interest rates and bloated central-bank balance-sheets in the rich world and to emerging economies’ inability, or unwillingness, to tighten policy enough in response. This combination suggests inflation could run out of control if left unchecked. Today’s concerns are manifesting themselves in different ways in different places (see article). In emerging markets, politicians fear social unrest and technocrats fret about economies overheating. Inflation jitters are also rising among some central bankers in rich economies, where deflation until recently seemed the bigger threat. Two members of the Bank of England’s policy committee last month voted for an immediate rise in interest rates. A prominent ECB official says increases in Europe’s imported inflation “cannot be ignored”.
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When you have few 10s of million in the bank, you can ignore a lot of things.
Try not to catch yourself a falling axe.
Governors Plan Cuts As Deficits Loom
Governors around the U.S. are proposing to balance their states’ budgets with a long list of cuts and almost no new taxes, underscoring the aim of politicians from both parties to erase deficits by shrinking government.
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Wasn’t the primary purpose of the Toxic Asset Relief Program to rid banks of these toxic assets? What went wrong with the plan, and why don’t the culpable parties get arrested for corporate malfeasance with $700 bn+ in public moneys as a result?
* BUSINESS
* FEBRUARY 7, 2011
‘Toxic’ Assets Still Lurking at Banks
BY MICHAEL RAPOPORT
During the financial crisis, investors fretted over “toxic,” hard-to-value assets that banks were carrying. Those fears have faded as bank profits have rebounded, loan delinquencies have declined, and bank stocks have soared 25% in the past five months.
But banks still hold plenty of the bad assets that once spooked investors: mortgage-backed securities, collateralized debt obligations and other risky instruments. Their potential impact concerns some accounting and banking observers.
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I thought the fears fadede when the banks were told they could hold those assets at book value, not mark-to-market value. They figured that the prices would come back to a reasonable level at some point. Well, they didn’t, at least not enough and eventually, the bonds will “pay off” at well below par and the banks will have to admit to the hit. They are going to need more capital and it seems like borrowing from the Fed at 0.25% and using the cash to make money other ways hasn’t been enough.
I would love to see the reaction if someone tried to say we need to do another TARP. Washington DC entertainment at its best.
–Like when NPRs “Toxie” died. At some point, the defaults and foreclosures work their way through a particular tranche and it is mathematically impossible to receive any more payments. But they had an extraordinarily bad bond so there wasn’t a hugh time gap between “stopped getting payments,” and “can’t possibly get any more payments.” I’m not sure how that progression might be different for middling-crappy bonds. They could conceivably carry non-performing assets on their books for years because some of these FBs might, conceivaly become current, especilly if they are allowed to remain in the “not foreclosed” limbo for a year or more.
Exactly. This stuff is still out there. Treasury and the Fed don’t have all of it. And some of the originators are still around for Fannie and Freddie to try to push bad loans back on to.
Remember FAS rule 157(d)? Back in late 2008 the FASB changed the mark-to-market rules and ever since then it’s been a rigged game.
The banks traded the stuff off to the FED at near 100% face value. Even the FED uses the face value number on their balance sheet I think.
Time-line of “mark-to-market”:
mark-to-market “deregulated”
mark-to-fantasy new standard
mark-to-market makes come back after economy collapse
mark-to-market repealed… again
mark-to-fantasy new standard… again
Maybe the goal was to let rich investors exit positions in toxic assets and to prop up the system while they did so. Sort of like a company buying back stock while it’s CEO sells. Anthony Mozillo comes to mind.
Is Anthony a friend of Angleo?
Whoops , it’s hard to keep the criminals names straight. There are just so many.
MAYBE?! HELLO?! TARP ANYONE?!
I would like to offer a random note of thanks to Ben and HBB posters for keeping an intellectually stimulating conversation alive throughout the duration of the Housing Bubble era.
Now off to work with me (though fortunately, we don’t have an underwater mortgage to worry about paying…).
Good day at work PB .
“I would like to offer a random note of thanks to Ben and HBB posters for keeping an intellectually stimulating conversation alive throughout the duration of the Housing Bubble era.”
A very _LOUD_ +1!!!
By Evan Halper, Los Angeles Times
Reporting from Austin, Texas — The lecturing from Texas leaders about how California wouldn’t be in such a budget mess if its politicians did business the way it is done in Austin has been relentless for years.
Texas Gov. Rick Perry delights in telling tales of his California “hunting trips” — hunting for businesses ready to flee the Golden State.
But the latest budget projections out of Texas have sharply changed the discussion: The Lone Star State is facing a budget gap of about $27 billion, putting it in the same league as California among states facing financial meltdowns. The gap amounts to roughly one-third of the state’s budget.
Texas’ troubles make those in the Centennial State seem small by comparison. We too were lectured that we had to “be more like Texas”, nevermind that our unemployment rate was lower during most of the recession and median HH income is higher here.
Now our budget deficits are much smaller (on a per capita basis) than those in the Lone Star state.
How much Corporate Welfare did the the Dallas Cowboys get to pay for their billion dollar stadium?
…about a billion dollars.
Scientology founder’s tenets drive Pinellas title company, under fire for rapid document processing
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In 2008, Chris Hoyer, a Tampa lawyer who runs the online Consumer Warning Network, noticed that the names “Bryan Bly” and “Crystal Moore” appeared on documents filed all over the country. Sometimes they signed as notaries, sometimes as vice president of various banks.
Hoyer discovered that both worked for NTC. Neither had any background in real estate or banking. Bly’s previous jobs included remodeling an Eckerd drugstore and working for a carnival operator.
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http://www.tampabay.com/news/scientology-founders-tenets-drive-pinellas-title-company-under-fire-for/1148529
100,000,000 unemployed middle eastern Men….it that doesent scare u nothing will !!!!
Ahh, they are way far away.
Not as bad as 1000 Wall St. CEOs.
Yup. We look for enemies in foreign lands while allowing politicians and banksters to fleece this country.
Financially we have more in common with the middle eastern men then one might think.
From WIBV (Buffalo, NY):
Questions over dead employees’ benefits
Published : Monday, 07 Feb 2011, 7:47 AM EST
Posted by: Emily Lenihan
BUFFALO, N.Y. (WIVB) - Who is to blame for millions of dollars in health care premiums doled out by Buffalo City Hall to dead employees and their families?
That’s the question taxpayers are asking. The city administration’s official position is that the Human Resources Department dropped the ball.
While the city was able to recover some money, a lot of it is gone for good.
City of Buffalo taxpayer money, nearly $840,000, flew out the door for good.
Buffalo Corporation Counsel David Rodriguez said, “That $839,000 amount is lost.”
That’s money the city paid for family coverage policy premiums of dead retirees.
Common Council Majority Leader Richard Fontana said, “And for that money to be wasted is just a sin.”
Who’s fault is it?
Rodriguez said,”It was incumbent upon the city through the Human Resources Department to stop that benefit. We can’t expect widows or children of deceased retirees to know all the details of family.”
But it’s still the union’s fault that Buffalo is having budget problems.
Right?
Remember, despite the MILLIONS and MILLIONS of dollars of waste to be found in damn near every municipality and local government, it’s still the union’s fault. (80 million in waste just in my city alone)
Got it?
The article goes on to say that the Human Resources commissioner got fired over this, because she didn’t follow a directive to get info from the Social Security Administration to help identify who died.
“Some family members didn’t know they had to call. Many don’t. In fact, many people today still don’t know that if your spouse passes on, and he was the city employee, or she was, then the remaining family members do no receive coverage.”
I think most of them knew. My experience with retired people is that they talk a lot (to anyone that will listen) about their pensions, their health benefits, what they are eligible for and what they aren’t. I’m hope I’m not that boring when I retire.
Hello. Survivors benefits? Well you can’t expect too much from the leaders of a city which has long since lost its reason for being.
Stockton, CA Tops Forbes List of “Most Miserable Cities in America”
Arnold Schwarzenegger was sworn in as the governor of California at the end of 2003 amid a wave of optimism that his independent thinking and fresh ideas would revive a state stumbling after the recall of Gov. Gray Davis.
The good vibes are a distant memory: The Governator exited office last month with the state facing a crippling checklist of problems including massive budget deficits, high unemployment, plunging home prices, rampant crime and sky-high taxes. Schwarzenegger’s approval ratings hit 22% last year, a record low for any sitting California governor.
California’s troubles helped it land eight of the 20 spots on our annual list of America’s Most Miserable Cities, with Stockton ranking first for the second time in three years.
Located in the state’s Central Valley, Stockton has been ravaged by the housing bust. Median home prices in the city tripled between 1998 and 2005, when they peaked at $431,000. Now they are back to where they started, as the median price is forecast to be $142,000 this year, according to research firm Economy.com, a decline of 67% from 2005. Foreclosure filings affected 6.9% of homes last year in the Stockton area, the seventh-highest rate in the nation, according to online foreclosure marketplace RealtyTrac.
Stockton’s violent crime and unemployment rates also rank among the 10 worst in the country, although violent crime was down 10% in the latest figures from the FBI. Jobless rates are expected to decline or stay flat in most U.S. metro areas in 2011, but in Stockton, unemployment is projected to rise to 18.1% in 2011 after averaging 17.2% in 2010, according to Economy.com.
“Stockton has issues that it needs to address, but an article like this is the equivalent of bayoneting the wounded,” says Bob Deis, Stockton city manager. “I find it unfair, and it does everybody a disservice. The people of Stockton are warm. The sense of community is fantastic. You have to come here and talk to leaders. The data is the data, but there is a richer story here.”
Link: http://www.forbes.com/2011/02/02/stockton-miami-cleveland-business-washington-miserable-cities.html
‘Located in the state’s Central Valley, Stockton has been ravaged by the housing bust. Median home prices in the city tripled between 1998 and 2005, when they peaked at $431,000. Now they are back to where they started, as the median price is forecast to be $142,000 this year, according to research firm Economy.com, a decline of 67% from 2005.’
Whoo-hoooo!!! Affordable home prices have returned to Stockton.
Now if only the rest of California could get back its affordable housing prices, perhaps the state could begin to recover.
They cited six California central valley cities among the top twenty miserable American cities; sorted from north to south: Sacramento, Stockton, Modesto, Merced, Fresno and Bakersfield. No surprise here since these are Ag based economies, and their water was cut by the ninth district court to save the Delta smelt, similar to a goldfish. The housing crash, no Ag water and packed with poor people make this a perfect storm for the entire region. There isn’t enough upside potential in this depressed region despite the low home prices, IMHO.
I’ve been pro-environment all of my life, but a thinking person really has to say screw the smelt for the greater good.
Funniest quote of the day
BRUSSELS (AFP) – The head of the European body tasked with tackling risks to the financial system warned European Union lawmakers Monday that forcing investors to take losses by restructuring national debt they now hold would reward speculators.
Wha…?
I think he means that such an action would reward speculators who are _short_ the securities in question.
People holding them long deserve to lose—they are getting paid a premium to take on that risk.
Not allowing investors to take their losses would reward the other class of speculators.
War is peace.
Slavery is freedom.
Double-speak is here.
Can’t read or write? Free iPads for you:
http://www.ajc.com/news/senate-leader-eyes-race-830314.html
Cause oh yeah, that’s gonna make the difference.
Yeesh.
Things seem so calm in here these days compared to when people would pop in and say we’re all crazy for thinking there’s a bubble in housing.
Well past the denial stage for many, but not for those who don’t frequent sites like this one.
Do you suppose we won’t get to the acceptance stage until there’s a speech delivered on the TV telling us we should be in it or well past it? A speech that says, “We’re broke! We have to…”? Or do we have to wait until the checks bounce?
I tire of the bottom callers, they are still many.
As a bubble believer, I’ve reached my own level of acceptance, I’ve accepted I may never own property. It’s dreadful yet refreshing, sort of like a shot of takillya with the worm and a cold dash of Sprite?
Bottoms up!