February 26, 2011

Bits Bucket for February 26, 2011

Post off-topic ideas, links, and Craigslist finds here.




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352 Comments »

Comment by CarrieAnn
2011-02-26 04:47:00

So is anyone here picking up their Henry Paulson coin?

I’m thinking of buying a few for, ahem, use in my various bathrooms.

From the US Mint online:

Henry M. Paulson, Jr. Secretary of the Treasury Bronze Medal 3” (778)

Price: $42.00

The obverse design features a portrait of Secretary Paulson with the inscriptions 74th Secretary of the Treasury and Henry M. Paulson, Jr.

The reverse depicts a peregrine falcon in the center, the seal of the Department of the Treasury on the left, the Great Seal of the United States on the right and the Treasury Building in the background with the date JULY 10, 2006 inscribed above. The image of the peregrine falcon represents Secretary Paulson’s commitment to conservation and his long-time interest in birds of prey.

Comment by Hard Rain
2011-02-26 07:42:01

You get a discount if at the same time you order the “federal employee sacrifice medal (666)” . It’s dedicated those supremely qualified folks who forfeited the riches of the private sector. I’ll take two please….

 
Comment by arizonadude
2011-02-26 07:45:02

when is the greenspan coin coming out? So if you run the country into the ground you get a coin?

Comment by In Colorado
2011-02-26 10:39:44

It’s been available for a long time…

…it’s called a “slug”.

Comment by Jerry
2011-02-26 14:13:23

Or the “paper dollar”!

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Comment by timmy
2011-02-26 09:13:16

Paulson should not only NOT get a coin in his name… but be JAILED & have his entire wealth (almost a BILLION) confiscated… for “financial terrorism” against the US

Comment by cobaltblue
2011-02-26 10:26:38

“Paulson should not only NOT get a coin in his name… but be JAILED & have his entire wealth (almost a BILLION) confiscated”

That would be a good start, a useful precedent, and probably an effective deterrent againt future banskster mega-crimes. For all these reasons, we will not see it happen in our lifetimes.

Such is the contempt the elite have for the “little guy”.

Such is the power of corruption, bribery, and graft within our government and judiciary.

Such is the result of the so-called “Federal Reserve”.

Comment by Housing Wizard
2011-02-26 11:58:55

We are exalting the Criminals of our Society . Why don’t we give him a big statue so the Wall Street beneficiary of Paulsons acts can go worship him on a daily basis ,and we can put it in the middle of Wall Street .

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Comment by Jerry
2011-02-26 14:35:54

To hell with this “private creating dollar falling money by the federal reserve” . At least you can’t make silver eagles/one oz of silver as fast as printed/computable paper.What will a silver eagle be worth when traded for paper money? I don’t know but common sense tells me it will hold it’s purchasing power better then the “paper note”.

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Comment by NoVa RE Supernova
2011-02-26 09:13:30

I’ll wait to buy until the Hank Paulson urinal paddy comes out.

Comment by arizonadude
2011-02-26 10:10:56

paulson tp coming to u soon via big benny.

 
 
Comment by Housing Wizard
2011-02-26 09:45:50

Henry Paulsons Coin ……now I’m really mad .

A big fat vulture should be on the other side of the coin with a symbol
of a child representing our future children right below the vulture ,
not a Falcon .

Comment by CA renter
2011-02-27 00:54:28

That picture is still haunting me, too.

 
 
Comment by polly
2011-02-26 11:03:13

The treasury building is amazing - not because of the building itself, but because of the way the entrance is set up. You walk past the iron fence and at the gate you have to go down to get to the plaza. And we aren’t talking about a few wide gentle steps. Then there is a little tent thing that you have to go to (to see if your name is on a list, I guess). Then you go up a bunch of stairs to get into the building. Around my office (this is about three blocks from our building) the older folks will tell you that wide open plaza is there so the snipers have a clear shot of anyone trying to skip getting checked on the list at the little tent. There are several roofs that would have a clear shot of most of the plaza. I must admit that I have never seen anyone on any of those roofs, so I cannot confirm the story.

Anyway, our group just got told that we are moving, so eventually I won’t be able to give any reports from the White House area. Should cut down on the number of protest days, but my commute will be longer.

Comment by Bill in Carolina
2011-02-26 12:22:06

Sorry to hear you’re moving (a PITA by itself) and that you’ll have a longer commute. Hopefully you will still be able to use the Metro.

Comment by polly
2011-02-26 13:59:03

Metro will be fine. It is even the same line. Just a few extra stops.

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Comment by CA renter
2011-02-26 17:49:17

Thanks for your updates around the D.C. area, Polly. You’re posts are always very insightful and informative.

Good luck on your move.

 
 
 
 
Comment by GrizzlyBear
2011-02-26 15:23:31

This just shows how diseased and perverted our government has become.

 
Comment by measton
2011-02-26 16:55:32

I thought the tails side had a tax payer bent over a table with Hank doing his thing and sippin a martini?

Comment by CA renter
2011-02-26 17:50:22

+1 ;)

 
 
Comment by RioAmericanInBrasil
2011-02-26 17:32:41

The obverse design features a portrait of Secretary Paulson with the inscriptions 74th Secretary of the Treasury, Tool, and Henry M. Paulson, Jr.

The reverse depicts an American middle-class worker brought to his hands an knees in the center with a peregrine falcon perched his head, the seal of the Department of the Treasury on the left, the Great Seal of the United States on the right and Henry M. Paulson is mounting the worker from behind with the date October 3, 2008 inscribed above signifying the date TARP I was signed into law by Pres. Bush. The image of the peregrine falcon represents Secretary Paulson’s commitment to conservation and his long-time interest in birds of prey.

I fixed it.

Comment by RioAmericanInBrasil
2011-02-26 17:37:24

Woa…

Dang Measton, I had not seen your post about the martini thing before I posted mine.

Well Done!

 
 
 
Comment by Spookwaffe
2011-02-26 04:56:59

They other day “Highway” made a comment in response to my question asking if anyone had worked on a job with “illegals”. He made a good point, but not the one I was trying to make.

I was talking about getting killed or injured WORKING WITH THEM. Highway was talking about the possibly dangerous product they may produce.

Those are two different things.

I don’t have a problem earning less money or more difficult working conditions; but I draw the line at getting killed or injured on the job. Its unnecessary and just plain stupid. Yet thats what I saw working with these guys.

I once quit a job because of this.

Have you ever seen someone go into shock and not know what to do?

I wasn’t waiting around to experience this.

Comment by polly
2011-02-26 07:26:52

Stop any obvious bleeding with pressure, elevate their feet, cover them to keep them warm, monitor airways.

While you do this, direct one specific person who isn’t freaking out to call 911 - if you just shout it out to a crowd sometimes no one will do it.

Comment by combotechie
2011-02-26 08:11:22

Be sure to direct the person making the 911 call to dial “nine-one-one”.

If you tell him (or her) to call “nine-eleven” he (or she) may come back and tell you that he (or she) couldn’t find an “eleven” on the telephone.

Comment by Arizona Slim
2011-02-26 08:56:12

The best way to approach this scenario is to look right at someone and holler a command: “You! Call nine-one-one!”

Once that person is dialing the magic three numbers, you look right at another person and holler another command: “You! Go stand on that corner and watch for the ambulance!”

Reason for this approach: When there’s an incident, people’s brains turn to mush. What’s needed is for someone to assert control. That includes giving simple, direct commands to others. It’s what an incident commander does.

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2011-02-26 10:20:54

Absolutely true.

I once jumped into the pool to rescue a drowning kid at breakfast while on vacation while the parents and other adults just stood around yelling hysterically. Then while I was pumping out the water, I had to bark, “Everyone. Shut up. I’m working.”

And yes, the kid turned out fine.

St00pid, st00pid adults. FAIL.

 
Comment by polly
2011-02-26 10:34:25

It is also standard advice in any first aid training. of course, they used to tell you to tell your identified assistant to go find a phone and call 911. My guess is that going to find a land line or pay phone is not a required step these days.

 
Comment by Professor Bear
2011-02-26 10:43:34

I once was walking down an inner city street with a bunch of friends, when suddenly dead ahead of us, a large male person of color was trying to drag a slim female college student into a nearby alley. The next moment, I looked around to notice it was only me, the large male person and the slim female — all my friends had spontaneously vanished. Realizing I had no hope of overpowering the guy, I started yelling at the top of my lungs, at which point he cut and ran. I helped the young lady into a nearby establishment, comforted her, and saw to it that she had a ride home. I never heard a subsequent word of acknowledgment from anyone about what happened that night, including my friends or the woman I helped, but I treasure the memory of doing the right thing when the opportunity was violently thrust into my path.

 
Comment by skroodle
2011-02-26 10:51:47

The best thing to yell is “FIRE”. Everyone is interested in a fire.

(In California, maybe “LETS GET RID OF PROP 13″ would be better).

 
Comment by Housing Wizard
2011-02-26 14:12:49

Good going PB …..you might of saved a life that day .

 
Comment by CA renter
2011-02-26 17:53:43

That is such an awesome story, PB. Thank you for doing the right thing.

BTW, I can’t believe none of your “friends” said anything about running away, or asked about what happened?!? I would have punched them out…but that’s just me. ;)

 
Comment by Professor Bear
2011-02-26 22:47:42

‘I can’t believe none of your “friends” said anything about running away, or asked about what happened?!?’

That will linger in mind as a mystery until the day I die. As I recall, I was walking with maybe three females, headed to a bar that evening with a gathering of members of an orchestra I played in at the time. Since I showed up at the bar with the young lady I rescued, they heard the story of what happened. But we never did reconcile how it was that I ended up alone with the burden of what to do…I have always attributed that to some kind of flight instinct that kicked in for the others in the group, but I knew at that very moment I could not have lived with myself if I had run off then.

 
 
 
Comment by drumminj
2011-02-26 09:50:41

Stop any obvious bleeding with pressure, elevate their feet, cover them to keep them warm, monitor airways.

While you do this, direct one specific person who isn’t freaking out to call 911 - if you just shout it out to a crowd sometimes no one will do it.

As someone who got certified in First Aid and CPR last weekend, I was glad to see this serious response from you, Polly :)

Comment by polly
2011-02-26 10:43:40

I’m not certified anymore as the last class was a long, long time ago, but somethings that you learn just stick. That stuck. The fact that I took classes both at summer camp as a teenager and as an almost adult in college helps a bit. Reinforcement is good for the brain.

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Comment by denquiry
2011-02-26 07:28:14

I think about this all the time while driving down the highway. No license, no insurance. No read de english means they can probably no read de sign. no wonder car insurance rates have like tripled in the last 7 to 8 years.

Comment by scdave
2011-02-26 11:12:27

No read de english means they can probably no read de sign. no wonder car insurance rates have like tripled in the last 7 to 8 years ??

And guess what…You can’t charge them more because they are a greater risk because that is considered “profiling”…So, “you” get to pay higher premiums so “they” can get a lower one…

Comment by Little Al
2011-02-26 19:34:09

Today, I was driving in Pasadena on my usual Saturday morning scouring of Estate Sales. I was in the left turn lane waiting for a light. An Asian woman was in the right lane on one of the busiest streets in Pasadena. She began a wide sweeping u-turn left in front of me while I had the green light. She did give me a winning smile at the end which made it all better.

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Comment by GrizzlyBear
2011-02-26 15:34:03

I read where more than 75% of illegals don’t have auto insurance. I find this absolutely disgusting. Not only do they raise all of our insurance rates, but they kill people, and there is not a cent available for reparations. I despise anyone who hires these illegal aliens, or uses them to do work on their house, etc. The burden placed on society for the selfish benefit of a greedy minority who promulgate this practice is immensely troublesome.

 
 
Comment by Hard Rain
2011-02-26 07:55:33

I was talking about getting killed or injured WORKING WITH THEM

Nephew works/worked roofing with a crew of Brazilians (that’s what he gets for not finishing high school) and has had many close calls. The good news, he was recently let go because it was far cheaper to employee the illegals.

Comment by Arizona Slim
2011-02-26 08:00:53

Back in 2005, I saw a nearby mini-dorm being built by illegal immigrant workers.

Definition break: A mini-dorm is a Tucson thing. It’s a house that specu-vestors buy for the purpose of expanding its square footage so it can be rented to students. And rent them they do — to about a dozen students at a time. For the most part, those students make lousy neighbors.

Back to my story: I tried to report the numerous unsafe worksite practices that I saw at this place, but I got nowhere.

Comment by Hard Rain
2011-02-26 08:21:08

Slim have you ever considered a position at the SEC ? if anyone can spot a violation it’s you..

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Comment by NYCityBoy
2011-02-26 10:24:16

I think surfing porn is a better qualification for working at the SEC than spotting violations. Do you surf a lot of porn, Slim? If so send them a resume. Don’t mention anything about your integrity or desire to see criminals prosecuted. That won’t help you.

 
Comment by Bill in Carolina
2011-02-26 12:24:40

+100 NYCB

 
 
Comment by talon
2011-02-26 08:32:32

Tucson lets a dozen unrelated people share a house? Or do they zone them as apartments or rooming houses?

I live near ASU so there are lots of houses around here rented to college kids, but for the most part they behave. There’s a big split level right across the street from me that was rented to a bunch of grad students who lived there for a couple of years. They moved out last spring, two weeks later a notice of trustee sale was taped to the garage, a couple weeks later somebody came in and cleaned/painted/fixed and the place has been on the market since ever since. Just last week the for sale sign turned in to a for sale or rent sign, so it looks like somebody is hanging on “until the market improves”. Hope they’re patient.

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Comment by Arizona Slim
2011-02-26 08:58:58

Tucson lets a dozen unrelated people share a house? Or do they zone them as apartments or rooming houses?

That’s a big issue in our local zoning laws. And there are neighborhood activists like me who are organizing to change those laws.

 
Comment by Arizona Slim
2011-02-26 09:00:55

They moved out last spring, two weeks later a notice of trustee sale was taped to the garage, a couple weeks later somebody came in and cleaned/painted/fixed and the place has been on the market since ever since. Just last week the for sale sign turned in to a for sale or rent sign, so it looks like somebody is hanging on “until the market improves”. Hope they’re patient.

Hey, talon! Nice to meet another Zonie on the HBB!

Your account above fits the Tucson housing market to a tee. University-area infestors see big bucks in renting to students. Nothing of the sort happens.

House gets the NOTS, then it gets fixed up and put on the market. Doesn’t sell, so a “for rent sign” is added. And it still sits there empty.

 
Comment by scdave
2011-02-26 11:21:16

Tucson lets a dozen unrelated people share a house ??

Section 503(b) of the Uniform Housing Code requires that a dwelling unit have at least one room with at least 120 square feet and all other habitable rooms except kitchens have at least 70 square feet. The size of a room used for sleeping more than two people must be increased above these minimums by 50 square feet for each occupant in excess of two.

 
Comment by polly
2011-02-26 11:38:10

With a McMansion shouldn’t we be talking about cubic feet? You could fit quite a few “rooms” on top of each other under those cathedral ceilings.

 
Comment by alpha-sloth
2011-02-26 15:51:21

The pattern around our area university (U of Kentucky) was to buy a charming little 1400 sq ft craftsman house and build a ‘vinyl box’ out back, which is a vinyl-sided house with nothing but tiny little dorm room-sized apts, that meet all the codes but destroy the neighborhood because of density problems. Some really neat neighborhoods were ruined this way.

The practice was recently banned by some zoning changes, mainly because locally powerful developers had built some large apt complexes near the U, and didn’t like the competition. Had this not happened, the zoning never would have been changed. People had been complaining for years.

 
Comment by CA renter
2011-02-26 17:57:32

Money talks.

 
 
 
Comment by Kim
2011-02-26 10:59:01

“Nephew works/worked roofing with a crew of Brazilians … and has had many close calls. The good news, he was recently let go because it was far cheaper to employee the illegals.”

My BIL is a plumber. The company let the non English-speaking employees go before anyone else. I have no idea whether they were here legally or not. Up to now BIL has been lucky enough to have 40 hour weeks thus far, but it seems his luck may be running out.

 
Comment by Mot
2011-02-26 12:29:31

> The good news, he was recently let go because it was far cheaper to employee the illegals.

Hopefully, he ratted on the company to the proper authorities.

Comment by pismoclam
2011-02-26 17:44:00

Write to Napolitano or Obama. She-he will help you ! hahahahahaha

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Comment by ecofeco
2011-02-26 14:45:47

I’ve been on many jobs with idiots who an accident waiting to happen.

Quit them as well. While being poor sucks, being poor and crippled is the kiss of death in this country.

Comment by ecofeco
2011-02-26 14:48:24

“…who were accidents…”

 
 
Comment by RioAmericanInBrasil
2011-02-26 17:44:21

Have you ever seen someone go into shock and not know what to do?

The first thing I do now is put my clothes back on.

Comment by CA renter
2011-02-26 17:59:04

:)

 
 
 
Comment by Professor Bear
2011-02-26 05:04:16

Op-Ed Columnist
Shock Doctrine, U.S.A.
By PAUL KRUGMAN
Published: February 24, 2011

Here’s a thought: maybe Madison, Wis., isn’t Cairo after all. Maybe it’s Baghdad — specifically, Baghdad in 2003, when the Bush administration put Iraq under the rule of officials chosen for loyalty and political reliability rather than experience and competence.

As many readers may recall, the results were spectacular — in a bad way. Instead of focusing on the urgent problems of a shattered economy and society, which would soon descend into a murderous civil war, those Bush appointees were obsessed with imposing a conservative ideological vision. Indeed, with looters still prowling the streets of Baghdad, L. Paul Bremer, the American viceroy, told a Washington Post reporter that one of his top priorities was to “corporatize and privatize state-owned enterprises” — Mr. Bremer’s words, not the reporter’s — and to “wean people from the idea the state supports everything.”

The story of the privatization-obsessed Coalition Provisional Authority was the centerpiece of Naomi Klein’s best-selling book “The Shock Doctrine,” which argued that it was part of a broader pattern. From Chile in the 1970s onward, she suggested, right-wing ideologues have exploited crises to push through an agenda that has nothing to do with resolving those crises, and everything to do with imposing their vision of a harsher, more unequal, less democratic society.

Which brings us to Wisconsin 2011, where the shock doctrine is on full display.

Comment by Bill in Carolina
2011-02-26 08:08:30

Rahm Emanuel, Jan 28, 2009: “Never let a serious crisis go to waste. What I mean by that is it’s an opportunity to do things you couldn’t do before.” …

Comment by combotechie
2011-02-26 08:13:27

Crisis Management has morphed into Management by Crisis.

Comment by ecofeco
2011-02-26 14:49:53

Create the problem, then SELL the solution.

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Comment by CA renter
2011-02-26 18:00:25

Or **force** the “solution,” as has been happening lately.

 
Comment by ecofeco
2011-02-26 21:22:46

That’s been happening for the last 30 years.

 
Comment by CA renter
2011-02-27 00:58:56

Absolutely true.

 
 
 
Comment by Ol'Bubba
2011-02-26 08:37:47

for an example, look at the Patriot Act, 2001.

Comment by exeter
2011-02-26 08:46:44

“for an example, look at the Patriot Act, 2001.”

Or the most egregious example, the death of 600,000 human beings in the middle east because a certain incompetent mistake lied about those responsible for WTC demolition.

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Comment by aNYCdj
2011-02-26 09:06:21

Agreed Ex….the real evil doers were in the mosques and we never destroyed even one of those.

 
Comment by skroodle
2011-02-26 11:04:08

Ummm…a lot of people knew that “curveball” was unreliable.

He was just one of the lies used to lead this country into war.

As the Senate Intelligence Committee reported three years ago:

Ø Statements and implications by the President and Secretary of State suggesting that Iraq and al-Qa’ida had a partnership, or that Iraq had provided al-Qa’ida with weapons training, were not substantiated by the intelligence.

Ø Statements by the President and the Vice President indicating that Saddam Hussein was prepared to give weapons of mass destruction to terrorist groups for attacks against the United States were contradicted by available intelligence information.

Ø Statements by President Bush and Vice President Cheney regarding the postwar situation in Iraq, in terms of the political, security, and economic, did not reflect the concerns and uncertainties expressed in the intelligence products.

Ø Statements by the President and Vice President prior to the October 2002 National Intelligence Estimate regarding Iraq’s chemical weapons production capability and activities did not reflect the intelligence community’s uncertainties as to whether such production was ongoing.

Ø The Secretary of Defense’s statement that the Iraqi government operated underground WMD facilities that were not vulnerable to conventional airstrikes because they were underground and deeply buried was not substantiated by available intelligence information.

Ø The Intelligence Community did not confirm that Muhammad Atta met an Iraqi intelligence officer in Prague in 2001 as the Vice President repeatedly claimed.

 
 
 
 
Comment by NYCityBoy
2011-02-26 09:41:11

Oh my god, Prof, you have pulled out Paul Krugman to try to help dig you out of your hole. You have called upon the High Priest of Keynesianism. This is the number one believer in Bernanke’s printing press. No amount of debt is ever enough for this guy. No bailout can ever be big enough. And this is the clown you are now stooping to in an attempt to make your point?

I know how you think every PhD should be running the world, no matter how out of touch they are with reality. Another colossal joke. But at least you are going down swinging.

I noticed that Doctor Krugman never compared the union controlled Democrat strongholds to Saddam Hussein. These are places where there has long been a monopoly of power and the henchmen of the leaders, the unions, have been greatly rewarded for their service to the chief. You failed to make that connection. You failed to make the connection that no dissent is allowed against the unions and the Dems, just like Iraq in 2002.

Yesterday one of your posts seemed to question the endless use of the printing press and then today you are using Krugman as your guide. I am really embarrassed for you.

I am sure that all the left zealots on the HBB will run to your defense. I am sure some might hurl some insults at me. Exeter and Mikey will probably make some inane quibbles that never deal with the issue of the power game the unions and the Democrats have played since 1962. Questioning those unions is not allowed by the partisans. The Thought Police can’t allow their deeply held beliefs to be questioned. It reminds me of the Catholic Church 500 years ago.

The only two zealots I don’t have on ignore are Exeter and Mikey so I will get to see what they write. I am certain it will be insulting and emotional and refuse to deal with the central issue that the promises made to the unions were made by bribed politicians and could never be afforded. But that can’t be said. Just compare everybody that questions the union domination to murderers. Bravo. Well played by Krugman and completely shameful, once again.

Comment by Professor Bear
2011-02-26 09:47:57

“I know how you think every PhD should be running the world, no matter how out of touch they are with reality. Another colossal joke. But at least you are going down swinging.”

I surmised you must be doing PR work for the banking sector nowadays, but I had no idea you were also skilled as a mind reader!

 
Comment by Professor Bear
2011-02-26 09:50:01

“I am really embarrassed for you.”

Thank you for sharing my deeply-felt sense of shame for standing in the way of your arch-conservative view of unions.

Comment by NYCityBoy
2011-02-26 10:03:08

I hope you wear a clown nose when you type these things. Because I believe that we need to readdress the public union system, to deal with the realities we are facing, I am an “arch conservative”? That is some great logic. Of course there can be no middle ground. Your apprenticeship to zealotry appears to be complete.

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Comment by Professor Bear
2011-02-26 10:16:45

OK, how about “union-busting demagogue”?

 
Comment by NYCityBoy
2011-02-26 10:22:37

I will settle for “realist”. But hey, Krugman says we can just print more money forever. So, what do I know? Surely that political whore knows far better than I do.

 
2011-02-26 10:23:31

If you lived in New York City, you’d turn into a union-buster really quick.

You really need to read up on Tammany Hall.

 
Comment by NYCityBoy
2011-02-26 10:27:36

He lives in California putty-tat. If he can’t understand it in California then there is a reason he can’t understand it. The same would be said of Illinois, New Jersey and many other places around the country. And those in the states not dominated by unions that don’t think they will be paying for this should think again. They will be paying for the unions through bailouts or inflation, if nothing is done. Oh, there is the arch-conservative coming out again.

Speaking truth = arch conservative

 
Comment by az_lender
2011-02-26 11:42:22

To learn to hate public-employee unions, I had only to belong to one for a few years. My fellow teachers were all into the “it’s for the children” BS, but if there were ever a question of higher salaries vs smaller classes, they’d pick the higher salaries every time.

I’m a little confused about why David Brooks says (a) Walker should try for more of a compromise with the unions and (b) Mitch Daniels should run for President. What the heck is the difference? (I have a fairly positive view of both guys.)

 
Comment by Blue Skye
2011-02-26 11:45:10

arch nemisis

 
Comment by Kirisdad
2011-02-26 12:37:40

Sorry, but Tammany hall was all about patronage, not unions. Patronage is reserved for those party loyalists, outside the rules of civil service. Patronage still exists, usually for administrative positions and promotions. It also exists for the most wasteful of taxpayer dollars- jobs that are totally unnecessary. The ability to hand out jobs as political favors is an another reason for weakening collective bargaining and civil service rules. IOW, the taxpayers would still be paying even if the republicans are successful. The services will be woefully less, the party coffers overflowing.

 
Comment by Kirisdad
2011-02-26 13:10:23

I’ll give you an example; the deputy sheriffs’, in my county, earn very close to the police. Basically, they hand out warrants, throw people out of their homes and handle family court. They make no felony arrests or deal with felons in any way. You get the job by taking a civil service exam, but promotions are earned?? through patronage (giving to the party). Therefore, 47% of the department….. are supervisors.

 
2011-02-26 14:49:29

Tammany hall was all about patronage, not unions.

Hello?!? Unions are about patronage. Are you having a senior moment or a ret_ard moment?

Which one?

 
Comment by ecofeco
2011-02-26 14:52:12

New York city is one FUBAR place.

 
2011-02-26 15:00:44

New York city is one FUBAR place.

No sh-ee-yat, but it has nice amenities, and some of us are willing to pay for it, and can afford it.

It’s not for everyone, as OlyGal pointed out, but there are benefits that may not be obvious except to the pathologically obtuse.

 
Comment by ecofeco
2011-02-26 16:13:32

“No sh-ee-yat, but it has nice amenities, and some of us are willing to pay for it, and can afford it.”

Somehow, I knew you were going to say this. :lol:

You guys should have that made into a bumper sticker and make it the new slogan. I heard it so much.

Me? I’m not big on dysfunctional co-dependency. Not that where I live is any great shakes.

 
Comment by DebtinNation
2011-02-26 19:08:23

It seems the public debate on unions has become polarized like everything else. I’m not against unions per se, but it seems like the democrat answer for everything is to throw more money at the problem. (Schools are effed up? Give them another $5 billion.) Which only perpetuates the problem.

 
Comment by RioAmericanInBrasil
2011-02-26 19:36:09

seems like the democrat answer for everything is to throw more money at the problem

I know, next thing you know it’ll be banks and stuff.

 
Comment by DebtinNation
2011-02-26 21:15:31

“I know, next thing you know it’ll be banks and stuff.”

Yeah, that’s not working out so well either. Money without accountability always leads to corruption no matter what sector we’re talking about.

 
Comment by Professor Bear
2011-02-26 22:57:46

For the record, I am not the rabidly pro-union zealot Mr NYCityBoy suggests. In fact, I could mention many issues I have with the way unions operate.

However, I feel a visceral reaction to the appearance that the deep pockets of the U.S. are trying their hardest to take away the rank-and-file worker’s voice in the political process. Democracy is not about silencing your opponents — that is what the likes of Scarface Quadaffi represents. If you prefer that flavor of governance, I suggest you move to Libya, or perhaps Wisconsin in the Walker era.

Rallies for Labor, in Wisconsin and Beyond
Max Whittaker for The New York Times
S. Montgomery Priz, a demonstrator, lampooned the rich on Saturday in Madison to protest Gov. Scott Walker’s labor proposal.

By RICHARD A. OPPEL Jr. and TIMOTHY WILLIAMS
Published: February 26, 2011

MADISON, Wis. — With booming chants of “This will not stand!” at least 70,000 demonstrators flooded the square around the Wisconsin Capitol on Saturday in what the authorities here called the largest protest yet in nearly two weeks of demonstrations.

It was a call heard in sympathy protests that drew thousands of demonstrators to state capitals and other cities from Albany to the West Coast.

The protesters were rallying against a proposal by Wisconsin’s new Republican governor, Scott Walker, that would strip the state’s public employee unions of nearly all their bargaining power and impose sizable take-home pay cuts by diverting more of their paychecks to finance health care and pension plans.

“We’ve had bargaining for 50 years, and he wants to end it in a week,” Al Alt, who has taught school for four decades in Waukesha, Wis., said as he paused on a bench after marching around the Capitol with other protesters.

 
 
 
Comment by oxide
2011-02-26 11:39:00

Seriously, how did you two get into such a spat? I don’t recall any precipitating event recently to cause it.

Comment by alpha-sloth
2011-02-26 17:35:35

I think NYCityBoy has gone off his meds.

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Comment by RioAmericanInBrasil
2011-02-26 18:05:28

I think NYCityBoy has gone off his meds.

Something has quickly changed.

 
 
Comment by Dale
2011-02-26 18:09:25

Actually, I am a bit worried about the Prof. I have always enjoyed his posts and agreed with him most of the time but I have noticed a gradual swing in his position over the last few months. Maybe I am imagining this but should I expect the arrival of GetStucco anytime soon?????

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Comment by exeter
2011-02-26 16:53:23

“I am certain it will be insulting and emotional and refuse to deal with the central issue”

You’re mirroring again.

 
Comment by RioAmericanInBrasil
2011-02-26 17:57:16

NYCityBoy

Hey NyCityBoy, if I had your biases, writing ability, command of logic and facts, and was a coward, I’d ignore a lot of people too.

And I mean that in a nice way.

 
Comment by CA renter
2011-02-26 18:12:51

NYCityBoy wrote:

I am certain it will be insulting and emotional and refuse to deal with the central issue that the promises made to the unions were made by bribed politicians and could never be afforded.
———————-

Your posts are some of the most emotional on this blog, and lack any sort of logic or facts. You name-call and stomp your feet, hoping to intimidate anyone who disagrees with you. When that doesn’t work, you “place them on ignore.”

To the point, your post ignores the “promises that we cannot afford” that were made to corporations and other financial interests by bribed politicians. It is because of these other financial interests (who are responsible for the losses in our pension funds) that we have a pension crisis.

 
 
 
Comment by WT Economist
2011-02-26 05:08:18

Big fish in the financial crisis not going to jail, from the New York Times.

http://www.nytimes.com/2011/02/26/business/economy/26nocera.html?_r=1&hp=&adxnnl=1&adxnnlx=1298721745-+n1xL49uYjAKu5T9y3AvZQ

“Two and a half years after the world’s financial system nearly collapsed, you’re entitled to wonder whether any of the highly paid executives who helped kindle the disaster will ever see jail time — like Michael Milken in the 1980s, or Jeffrey Skilling after the Enron disaster. Increasingly, the answer appears to be no. The harder question, though, is whether anybody should.”

“These kinds of cases are extraordinarily difficult to make. They require lots of time and resources. You have some of the best, highest-paid and most sophisticated lawyers on the other side fighting you at every turn. You are climbing a really high mountain when you try to do one of these cases.”

“A few days ago, I listened to a recording of a lengthy interview with Mr. Mozilo conducted by investigators working for the Financial Crisis Inquiry Commission and posted recently on the commission’s Web site. It was a remarkable performance…His voice rising passionately, he said finally, “Countrywide was one of the greatest companies in the history of this country.” Which is a final reason Mr. Mozilo would have been difficult to prosecute. Delusion is an iron-clad defense.”

Comment by Hard Rain
2011-02-26 08:02:42

Makes one sick. I have a suspicion that we’ll see one or two hated low level bankers sacrificed…at best.

 
Comment by Bill in Carolina
2011-02-26 08:10:34

What?! The NYT is asking, “The harder question, though, is whether anybody should.” (go to jail)

WTF is so hard about the question?

 
Comment by Professor Bear
2011-02-26 08:12:10

It will be quite interesting how the national mood will evolve along with growing awareness of what happened, thanks to documentary movies like Inside Job, coupled with the realization that none of the perpetrators were brought to justice. I realize this time is different, but historically, unredressed societal grievances have led to social unrest or revolution.

OSCAR BALLOT - PREDICT THE BEST DOCUMENTARY FEATURE
Inside Job Synopsis

The financial practices that laid the groundwork for the global economic crisis are traced to their sources in an examination that lays the blame for the collapse at the doorstep of many who are still in power. Predatory lending, credit default swaps, and financial deregulation are subjected to close scrutiny and criticism in a primer on the situation that affected the lives of millions.

Comment by Arizona Slim
2011-02-26 09:15:21

I realize this time is different, but historically, unredressed societal grievances have led to social unrest or revolution.

The social unrest is already underway. And, if I may venture out on a limb here, let’s just say that the shot heard ’round the world was first heard here in Tucson on January 8 at the La Toscana shopping center. Further shots (literal and figurative) have been heard in the Middle East and in the Middle West of this country.

Comment by scdave
2011-02-26 11:31:42

shot heard ’round the world was first heard here in Tucson on January 8 at the La Toscana shopping center ??

I don’t think this neocon heard that shot;

At a town hall in Athens, Ga., earlier this week, an unidentified attendee asked Rep. Paul Broun (R-Ga.), “Who is going to shoot Obama?” To the shock of some observers, the conservative congressman failed to condemn the question, simply saying, “The thing is, I know there’s a lot of frustration with this president,” before changing the subject.

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Comment by Blue Skye
2011-02-26 11:54:46

You mean when that nutjob killed Judge Roll and little Christina Green? Tragic for sure, but hardly would make the list of top thousand crimes in US history, much less around the world.

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Comment by alpha-sloth
2011-02-26 18:21:13

The shooting of a congresswoman, the killing of a federal judge and a little girl, and the shooting of several others at a public political meeting doesn’t rank in the top 1000 crimes?

Maybe not in body count, but certainly in cultural importance, no matter what those who encouraged the atmosphere and rhetoric that led to the slaughter may say.

You betcha!

 
Comment by Blue Skye
2011-02-26 20:45:38

And what is the cultural significance? A deranged person going berserk? This has culture? Perhaps speaks to our mental health system? Political zealots sieze upon it all to support their own agendas. Not out of grief for a 9 year old girl, but for their agendas. Disgusting, the act and the hijack. Moral bankruptcy is the takeaway.

 
Comment by alpha-sloth
2011-02-26 21:00:07

It was a turning point in the public’s perception of the TeaKoch Party, and of several leading right-wing nutjobs- er, I mean, politicians.

You may not like it, you may say it’s illogical, but it’s true nonetheless.

 
 
Comment by RioAmericanInBrasil
2011-02-26 18:25:19

The social unrest is already underway….the shot heard ’round the world

If the Wisconsin unions lose the battle, it could go down as similar to the battle of Bunker Hill (Breeds Hill) which was tactically a loss for us. But what it showed was that a disjointed band of Americans could stand up to the most powerful army in the world and we inflicted over a thousand casualties upon the British. Over one thousand.

This woke up the Colonies as much or more than even Lexington and Concord. It’s been 40 years since Americans have protested in such numbers, numbers that laughingly dwarf the Tea-Party corporate protests.

Wisconsin could be our Bunker Hill. We might lose the battle but the great awakening may have begun.

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Comment by CA renter
2011-02-27 01:06:02

Hear, hear!

 
 
 
Comment by measton
2011-02-26 14:43:29

The realization that their life will suffer due to the sins of Wall Street is what will get their attention.

Comment by alpha-sloth
2011-02-26 21:16:27

Yep. As soon as _their_ ox gets gored, then they’ll go looking for someone to punish. And when _their_ bennies get slashed, they’ll be more inclined to demand the rich pay their fair share of the tax burden.

That’s where the danger of fascism lies: when the rich are faced with actually having to pay a reasonable share of taxes, and otherwise be subject to the rule of law, they have a historical tendency to try to distract everyone with violence, scapegoats, bigotry, and nationalism.

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Comment by Housing Wizard
2011-02-26 09:55:36

To big to prosecute TBTP, to rich to prosecute TRTP, to connected to
prosecute TCTP ,to good at drama to prosecute TGADTP,to good of lawyers to prosecute TGLTP, to delusional to prosecute TDTP.

Is that a joke article or have they just figured out that they can say anything to the American people and it will sticks .

Comment by Housing Wizard
2011-02-26 11:55:35

In other words the implications of this article of not busting
potential rich criminal defendants is that the new policy is that
rich defendants are above the law and its just to much work ,so
Justice will not be applied to the rich, connected ,or to big to prosecute . The fact that the rich and connected crimes even has the potential to cause more damage on a wide scale because of the power they had ,has no bearing on this ‘TO BIG TO PROSECUTE “.

And I suppose the “To Big To Prosecute ” will apply to the big Drug Cartels ,after all they are going to have good lawyers .

So the rule of law only applies to sectors that commit petty crimes .In fact the FAT CAT financial criminals ,who have the potential
to bring about financial ruins for millions ,throw millions into poverty ,will not be prosecuted ,but they will be bailed out instead to live another day to get ill-gotten gains and bribe politicians and become even more rich and powerful .

IMHO ,parties that have that much power to produce that much damage to millions should even be prosecuted more because the
power they abused caused greater damage to more people and
they should of known better ,because trust was put in their hands regarding the Deposits of the Nation and the World for that matter . A even higher bar should be put on these Clowns ,unlike a the petty criminals damage .

The moral hazard of this position has a price that is unheard of in a Country that has always valued itself on its sense of Justice and
Rule of Law .The moral hazard has the potential to corrupt America beyond measure ,set the stage for more financial crimes
causing trillions of damage ,and on an on . It’s thing like this that have the potential of bringing on the demise of a Country .

” A Society that does not render Justice in a fair and Just manner
is doomed to fail .” (Author not remembered )

Comment by polly
2011-02-26 12:48:50

You need to read the entire article carefully. They did prosecute some low level executives with a trail of e-mails that that prosecutors were sure were enough to show that they knew things were going south quickly and failed to disclose it (which is the rule with securities). However, the defense was able to show other e-mails that did not have quite so gloomy a tone and the jury acquitted both on the theory that they didn’t really KNOW what whas going on and were just trying to make the best of a bad situation. Not good, but not illegal. And these guys didn’t have HALF the defensive fire power that the big boys have.

Once prosecutors lose on a particular approach, they are gun-shy forever.

The article basically affirms some of the things I’ve said here before, but with a lot more details about how it happened. It confirms the lack of resources, the difficulty of proving anything under the laws in question, the only hope really being at the bottom rung where they will never have the resources to prosecute everyone, etc.

Important article. I recommend it.

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Comment by Housing Wizard
2011-02-26 13:36:03

I’m not going to look at a small case that maybe truly they
didn’t know the whole story and say that translates to the
case against the Kingpins . How about the concept of the Kingpins should of known .Look ,I know enough details of what went on to be convinced that they just couldn’t stop themselves because the greed blinded them . They just tried to transfer harm to millions of people after they created the risk for the harm to begin with . Sometimes you can simply prosecute by
the acts , or the damage that would not of occurred absence malice/fraud , especially the chronological order of the acts ,rather than simply on statements made .

It’s kinda like we have a dead person in the room and a person with their blood on their hands in the same room ,are we going to say that the person with the blood on their hand
was just there by accident.

Really ,they just don’t want to prosecute and the bail outs were some of the biggest obstruction of justice moves I have ever witnessed .

I’m not interested in the bogus criminal defenses that are employed by the industry ,or the “We didn’t see it Coming Defense.” There is a lot of evidence of out right misrepresentation that caused financial harm to millions in these cases . Its even questionable if their securities
system involving CDO’s or MBS’s wasn’t faulty (or not even legal ) to begin with . There has got to be some criminal statue that Ponzi Schemes fall under also .

The point is that if standing law had prevailed at the time of the meltdown they would of all went BK and than they all would of been sued silly for creating the damage criminally and civil financial harm . I’m not even going to go into the accounting tricks they were doing that are classic criminal acts to hide some of their BS when the SHIF .

 
Comment by polly
2011-02-26 15:08:04

Smaller cases with the best evidence is how they test out how a particular strategy will play before a jury. I guarantee you, they prepped the heck out of the test case. It was the strongest, least ambiguous one they could find and with defendants who didn’t have more money than God.

If they are giving up on the big ones, it is because none of their cases are better than the one they already lost on. It doesn’t mean that the high level execs weren’t culpable. But if you can’t prove it beyond a reasonable doubt to a jury with the evidence that currently exists, well, all you are doing by bringing the case is annoying them and costing them a bit of money and crippling the agency from being able to do anything else for a few years.

 
Comment by Housing Wizard
2011-02-26 15:39:45

The high level kingpin decision makers have a different liability because of their position .
In addition they haven’t even conducted discovery on the fat cats to they degree they would ,so it’s just a matter of lack of will to do it . One jury test case ,who knows what went wrong with that one ,could of been a lousy judge ,or jury members
being stupid . Each case should be on it’s own merits anyway
and its prejudice to use a rank and file crook case with less liability to determine the greater cases . Juries tend to feel
sorry for yes men within Corporation structures .

This is just BS ,designed to settle the masses and suggest that the real King Pins high levels crooks are similar in liability as well as position as the small fry . Just like all the PR campaigns that what they did was legal . It depends on how you view the law and all possible statues you could get them on . I suspect the kingpins could take other people down . There is the assumption that if damage occurred some form of liability is association with it .

We just don’t agree on this issue ,and its all a big excuse for not being aggressive . Even the law Professor William Black
and legal Expert on White Collar crime ,has in essence concluded it lack of Will to do it .

We just don’t agree on this issue I guess ,not that I don’t respect your opinion .

 
Comment by measton
2011-02-26 17:06:57

Mozillow

There is no way this guy should not be behind bars. He is absolutely no different then Ken Lay at Enron. Talking up how safe his stock was while selling it hand over fist. The friends of Mozillo programs and some telling emails.

I think the only thing that should count is what these criminals have said in public vs how they invested their money. If they said things were fine but sold their stock they are guilty. If they said things were fine and converted all their assetts to treasuries guilty. If they had large investments in Paulson’s Hedge Fund guilty. If they overly hedged using AIG and then stood next to Geitner while the bailout of AIG was taking shape guilty. Very simple cases.

 
Comment by polly
2011-02-26 17:37:47

You aren’t really listening. First of all, the high level people don’t have more responsibility legally. Morally they do, but the law doesn’t enforce morals. That isn’t how the law works. These rules are only in play when people lied and did it knowingly. That means the further away you are from the paperwork, the less likely anyone is to be able to tie you to anything. You don’t think that anyone actually sent written memos up the system telling the highest level execs that they were getting people to sign blank forms and then filling in the numbers with hugely inflated income? Well, if the e-mails that express a little bit of doubt with the system can be “offset” with the cheerleader e-mails the defense attorneys present, that is what you need - memos that go all the way up the chain detailing the fraudulent actions and then probably a reply memo from the exec saying that he read it and to keep up the good work. And that sort of documentation doesn’t exist.

And they know exactly what went wrong with this jusry and the test case. If the result was because they happened to pick a particularly sympathetic jury, they would know. They probably talked to them. And the lower level people weren’t sympathetic peons. They just weren’t at the very top.

The only other way to win this stuff is with jury nullification inverted - the jury deciding to ignore the evidence and convict because they don’t like them. Such a conviction is very likely to be overturned and even trying for it is a severe breach of ethics.

And since they started a whole bunch of investigations and are now dropping them, you are wrong when you say that discovery hasn’t started. They have been looking into this stuff for months if not years. They didn’t find the “smoking memo.” If they had, they would have used it. There is nothing that these guys want than to get a big conviction. That is what prosecutors live for - the big win. If they aren’t trying it, then there is almost no chance that they can win. These people really do know what they are doing. We don’t like it. I know I sure don’t. But not liking it doesn’t mean it isn’t true.

 
Comment by CA renter
2011-02-26 18:30:21

If their wealth is so great that it can obstruct justice, then THAT is the greatest problem of all, IMHO.

This is just another example of why our tremendous wealth disparity is so dangerous to our economy and our country.

If people think this isn’t related to the attacks on unions, they are delusional. Unions are the ONLY thing that can possibly check this financial power. When the unions fall, who will stand up to the financial elite as they plunder this and every other country around the world?

 
Comment by Housing Wizard
2011-02-26 20:18:36

They prosecuted in the 80’s on even flimsy cases . The Keating Case was a great example .Keating (Lincoln Savings case ) got it for even implying that investments in his Bank were less risky than they were . In fact Keating was jet setting around with Politicians trying to get Political favors ,and I think he was
successful in getting some banking laws changed so he could
use the Lincoln Banks to abuse OPM .

Polly ,I don’t agree that they have been aggressive with Discovery ,you know the old “paper wave” ,that’s what they
have been doing .The SEC minor fines with no admittance of guilt is the BS that is going on .And you don’t have to find some juicy memos ,you can just go on “acts “,or what the books say ,
Anything that is to big to fall ,or to big to pay for their damage ,needs to be given limited power .
Every move that has been made is bogus in the big PR
campaign that they didn’t do anything wrong .

Look, the fact that they gave them bail outs and loans and you name it isn’t exactly the set up for now going after
them and look how much the Feds were obstructing
discovery . You really think that the degree of Government closing their eyes to their acts to begin with isn’t influencing
the lack of Will to prosecute ?

The people know and it will just produce moral hazard and
the eventually unintended consequences that always comes from Justice not served .

 
Comment by DebtinNation
2011-02-26 21:12:12

“Unions are the ONLY thing that can possibly check this financial power.”

Get real. Unions are by and large the other side of the same coin.

 
Comment by CA renter
2011-02-27 01:12:52

They may be “the other side of the same coin,” but there is NO other entity that is large enough, and powerful enough to check the powers of the financial elite. They know this, which is why they are diverting all the attention and blame to the unions.

Some might not like capitalilsm, and some might not like communism, but the truth is, we all functioned better knowing that if we slipped up, someone was capable of taking us down.

Once the unions are gone, do you think the elite are going to suddenly “play nice” and stop stripping our wealth? Hell no; they will then have UNILATERAL POWER to do whatever they want. They already have far too much power, as is evidenced by the bailouts, tax rates, and laws that favor them over everyone else.

Every large, powerful entity needs a counterbalance. Like it or not, unions are the only thing large enough and powerful enough to keep the elite in check, and that’s why they are under attack.

 
 
 
 
 
Comment by Professor Bear
2011-02-26 05:10:00

Till debt do us part…

Debt takes a huge chunk out of California’s beleaguered budget

After a 10-year borrowing binge, the upcoming budget is expected to spend more on debt than public universities or state parks. Next year’s repayments — $7.65 billion — could make up a quarter of the deficit.

By Shane Goldmacher, Los Angeles Times
February 26, 2011

Reporting from Sacramento —
Closing California’s deficit this year would be immeasurably easier if the state weren’t paying for a 10-year borrowing binge.

Without that tab, officials could scrap plans to close state parks, force nearly a million low-income children to go without eye care and take in-home aid away from hundreds of thousands of elderly, blind and disabled residents.

But the state has had an insatiable appetite for debt in recent years. In the last decade, the debt per resident has tripled, to $2,362, according to the credit-rating agency Moody’s Investors Service.

That means for every household of four, California owes nearly $9,500 — more than the government spends to put a child through a year of school. In the next budget, the amount devoted to debt repayment is expected to exceed the money invested in California’s prized public universities.

Borrowed money has proved politically irresistible in Sacramento, a safe middle ground for politicians in the constant war between Democrats and Republicans over taxes and service cuts. Campaigns for bonds often herald them for providing projects and services without new taxes.

Voters have approved borrowing in the last 10 years for such causes as stem-cell research ($3 billion), high-speed rail ($10 billion), and parks, water and the environment ($14 billion). They even took on $15 billion in debt to paper over a deficit that Gov. Arnold Schwarzenegger said would never reemerge — something economists have scolded the state for doing.

Because of its rock-bottom credit rating, California pays a premium for its loans. Taxpayers must fork over roughly $2 for every $1 borrowed — about 20% more than top-rated states, said Matt Fabian, an analyst at Municipal Market Advisors, a bond research firm.

Comment by SV guy
2011-02-26 10:42:18

I am currently involved in a very large county hospital project in California. I see the clientele on a daily basis. Based on inside info, the majority of care is heavily, if not entirely, subsidized by John Q. Taxpayer. I have heard multiple stories of families migrating from south of the border to harvest the fruits of Mr JQT’s labor.

There is also a growing sense of ‘reconquista’ within this same group.

Comment by polly
2011-02-26 11:27:04

If something can’t go on forever, it will, eventually, stop.

Now, I don’t know what the path to that stopping is. I’m not sure how California handles health care for people who do not qualify for Medicaid (including illegals). Some states don’t have any system set up at all, so that hospitals are simply doing what they have to to continue to qualify to take Medicare (must have an emergency room and see all patients and stabilize them, though you don’t have to treat them long term unless they come back again in a crisis). Some states have a central pool that all hospitals pay into and then take out of based on the amount of uncompensated care they give during the year. Some states have other systems. It is very, very complicated

In the end, if you really want to stop treating illegals for medical problems, the only way to do it is with a biometric national id system (anyone not in the system has to pay up front). But I don’t think the US has any interest in such a system. And the doctors might get a little itchy about their Hypocratic oaths, too.

Comment by scdave
2011-02-26 11:40:03

I’m not sure how California handles health care for people who do not qualify for Medicaid (including illegals) ??

Its free, thats how we handle it and its one of the best facilities and some of the best care that we (taxpayers) can buy…Gentleman that I know just had a triple by-pass for free…

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Comment by polly
2011-02-26 11:51:04

Free isn’t a system. Free describes what the patient has to pay - or rather what they don’t have to pay.

Does the hospital absorb all the cost? Is there a system where the state and the hospitals spit the cost? Is there a system where the hospitals in places that don’t get as many illegals help out the hospitals that get a disproportionate number of them? Unless it is a county or city hospital supported by tax dollars (hint: there aren’t that many of them left) there has to be someone else who is absorbing the costs for care that is uncompensated by some form of insurance and not paid for by the recipient.

 
Comment by Housing Wizard
2011-02-26 13:49:13

Ok ,this free care to illegals is taxing the taxes . I don’t know the answers . I witnessed what SV guy is talking about when
I was spending a lot of time at the hospital . I don’t know how they get qualified or what percentage is paid for .

Again this is another issue where if you have to put tax dollars
toward one area ,you won’t have enough for another area . I don’t know what the medical system is like in Mexico .Do people even have medical insurance in that Country ?

 
Comment by alpha-sloth
2011-02-26 17:27:41

Mexico seems to have pretty good, nearly universal health care. You’re probably just seeing local illegals at the hospital. Doesn’t sound like they need to travel here for medical care:

wikipedia
Since the early 1990s, Mexico entered a transitional stage in the health of its population and some indicators such as mortality patterns are identical to those found in highly developed countries like Germany or Japan.[253] Although all Mexicans are entitled to receive medical care by the state, 50.3 million Mexicans had no medical insurance as of 2002.[254] Efforts to increase the number of people are being made, and the current administration intends to achieve universal health care by 2011.[255][256]

Mexico’s medical infrastructure is highly rated for the most part and is usually excellent in major cities,[257][258] but rural communities still lack equipment for advanced medical procedures, forcing patients in those locations to travel to the closest urban areas to get specialized medical care.[259]

 
Comment by Housing Wizard
2011-02-26 20:29:58

Thanks alpha-sloth .

 
Comment by Montana
2011-02-26 20:45:28

I heard Mexico had a two-tiered system, a nice one for the elites and basic health for everyone else.

 
Comment by RioAmericanInBrasil
2011-02-26 20:49:37

I heard Mexico had a two-tiered system, a nice one for the elites and basic health for everyone else.

Yes but when you count 50 million Americans with no insurance and 50 million with BS insurance and all the deductibles and co-pays and refusal to pay and non covered stuff, USA is going that way too.

 
Comment by alpha-sloth
2011-02-26 21:48:46

With life expectancies similar to Germany and Japan, the Mexican two-tiered system seems to be working.

 
 
 
 
Comment by cactus
2011-02-26 21:24:39

Voters have approved borrowing in the last 10 years for such causes as stem-cell research ($3 billion), high-speed rail ($10 billion), and parks, water and the environment ($14 billion). They even took on $15 billion in debt to paper over a deficit that Gov. Arnold Schwarzenegger said would never reemerge — something economists have scolded the state for doing.”

Voters always seem to vote yes on new Bonds measures in CA, must be the same group that couldn’t figure out serial re-financing would not go on forever.

 
 
Comment by Professor Bear
2011-02-26 05:11:59

Report rebukes spending cut plans by U.S. states
SAN FRANCISCO | Fri Feb 25, 2011 5:32pm EST

SAN FRANCISCO Feb 25 (Reuters) - Balancing state budgets solely or mainly with spending cuts will hurt those depending on state dollars and set back the economy’s recovery, a Center on Budget and Policy Priorities report said on Friday.

The Washington-based center’s report came as the U.S. government’s measure of fourth-quarter growth was lowered on Friday to reflect a reduction in government spending that was more than double the initial estimate, led by less spending by state and local governments.

In all, government spending lopped 0.31 percentage point from GDP growth.

“States that rely solely or primarily on widespread budget cuts to close deficits are harming residents and businesses that need immediate assistance; they also are reducing demand in the economy and impeding their state’s economic recovery,” the center’s report said.

“While there might not be any perfect choices for closing deficits in an economic slump this deep and long, it is clear that a balanced approach — rather than one that relies heavily or exclusively on spending cuts — is useful in mitigating the damage,” the report said.

Comment by SV guy
2011-02-26 10:47:56

Dear Center on Budget and Policy Priorities,
Empty your own wallets first, then come talk to me.

Dear INS,
Haven’t we filled the ‘residents needing assistance’ (also known as undocumented democrats) quota yet?

Longtime posters know I despise the Dem and Repub parties equally.

 
Comment by Blue Skye
2011-02-26 12:27:00

Sometimes, posts like this one, presented for our thoughtful reflection, leave me wondering why anyone would waste the energy required to roll out such drivel. Yes, somebody is going to get hurt if they do not get their share of other people’s money. For sure.

A few seconds of drilling and it is apparent that the author of said “report” is a multi million dollar lobbyist group for unions.

Comment by CA renter
2011-02-26 18:42:40

Blue Skye,

Do you not understand that businesses benefit from the social, physical, and legal infrastructure in this country? That infrastructure is paid from our tax revenue. Most of those expenses require *people* to provide those services. We want highly-qualified people to do these jobs, but nobody wants to pay the costs.

It’s funny how everyone wants all the benefits, but nobody wants to pay for it.

Again, I challenge anyone to find a country with low/no taxes, a weak government, no unions, and a successful middle class — one that meets or exceeds the quality of life here in the U.S. or in other, socialized countries. I’ve offered up this challenge many times before, and yet nobody has been able to find a SINGLE example.

It’s one thing to believe in theories, but if there are no facts to back up these theories, it’s time to change one’s mind, no?

Please, find a SINGLE example of a country with low/no taxes, a small wealth disparity, and a successful middle class. You won’t find it.

Here:

http://www.nationmaster.com/statistics

Comment by RioAmericanInBrasil
2011-02-26 18:51:08

Again, I challenge anyone to find a country with low/no taxes, a weak government, no unions, and a successful middle class — one that meets or exceeds the quality of life here in the U.S. or in other, socialized countries. I’ve offered up this challenge many times before, and yet nobody has been able to find a SINGLE example.

STOP IT! OK? ENOUGH.

Just because it doesn’t exist doesn’t mean that it couldn’t exist if we lowered taxes for the rich.

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Comment by Housing Wizard
2011-02-26 20:34:24

Rio ..LOL

Ca Renter …I agree with you very muchhhhhhhhhhhhh.

 
Comment by alpha-sloth
2011-02-26 21:59:53

No one can think of a single country?

Like I always said, they’re the wide-eyed idealists. They have a bunch of theories which they label ‘common sense’, but absolutely no track record of success. In fact, quite the opposite. (But they’ll tell you all those times didn’t count.)

Keynes’ theories, on the other hand, have a long, multi-national record of success, but we’re supposed to believe his theories are nonsense. (Because all those times didn’t count.)

So says the people whose economic theory has zero history of success in The Real World.

 
 
Comment by Blue Skye
2011-02-26 20:32:21

CA,

I am sure you are sincere in believing that good people should do good stuff and not be bothered about where the money comes from. And I bet you are/want to be one of these good people who do not have to bother about how others toil to pay your stipend.

Let’s just pretend for a moment. Pretend that I am a guy who has education and talent above average. Pretend that I have given over the decades lots of public service, taught college math and physics to disadvantaged wannabes (Puerto Ricans and blacks mostly) for free, on my own time and dime, been Scoutmaster for latchkey kids, Board of Director and Founder of a small town Youth Center, Sunday School teacher even, liberal and generous. I’ve made my money in business, making stuff for a profit, and raised my own gang of rugrats and tutored them too. The most important elements of education are taught in a very small space of children’s lives.

Now there’s you. You would like to do this or some part of it as a lifestyle, yet you do not have the means to do so on your own. So you attach yourself to my taxes. Fine. Now you are making more than me. Now you have a guaranteed retirement, which I do not have. I must work at the hardware or some such to eek out a small living in retirement, as long as I can stand, and you will be expecting 80% of your working salary for the next 30 years. God help me if I fall ill, that will be the last chapter for me. But you are entitled. Your salary and benefits have grown for decades while mine has diminished. You probably bought nice cars and furniture over those years (or hope to) while I bought groceries and shoes and 10 year old vans.

I am not jealous of you. I wanted to be a teacher or even a forest ranger when I was younger. I chose another path and became one of the payers rather than the payees in the wealth transfer system. It does gall me though, that the Union Mafia are in the mix, padding their own pockets, padding the pockets of our pols, corrupting. I do not hate my choices, or yours, but I do hate corruption and influence buying, and insincerity.

So good luck on fighting for your entitlements, won step by step over many years. Fueled by the huge expansion in credit to boot. I am the posterboy of the workhorse that you and your buddies have been drafting for these many years. Guess what! I am about to opt out. The cash cow is running short of fresh milk. I’ve made provision for myself, but not so much for you. If you really are a servant of the populace, you might have to find honest work to support that. Of course, I am only one.

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Comment by cactus
2011-02-26 21:43:27

So good luck on fighting for your entitlements, won step by step over many years. Fueled by the huge expansion in credit to boot. I am the posterboy of the workhorse that you and your buddies have been drafting for these many years. Guess what! I am about to opt out.”

but.. but.. what about the children !!!!

Seriously if CA could issue more bonds the can would just get kicked down the road. but that seems to be over. The White house bailed the banks, AIG and FNMA and is probably done bailing out anymore ( hopefully)

And you know I think CA tries to tax ex-CA workers who leave the state and start spending their retirments that were taken as deduction’s on income taxes in CA, like 401K’s

CA has a pretty diverse ecomomy I’m sure they can work it out if they have to.. All this “if you don’t increase taxes the streets will never be safe again” BS is just drama very similair to ” if we let these banks fail we will all live in caves again”

 
Comment by CA renter
2011-02-27 01:22:47

I’m ALL for cutting expenses, but we should be cutting out the things that should never have existed in the first place.

From a post I wrote a few days ago (note: I am not excluding union workers from those who have to sacrifice):

1. Roll back the pension boost enacted by Gray Davis (and friends) from 3% @XX to 2% @ 55 for public safety workers. I’m an ardent supporter of defined-benefit pension plans, but this increase was totally irresponsible, and I said so back then. Because this increase has been there for so long, and because many older workers have adjusted their finances because of it, those with 10 years or less left before retirement will need a lump payment, perhaps of $50K-$150K (a drop in the bucket when compared to the relative savings) in order to make up for the fact that they are too close to retirement to make up the difference.

2. Cut pay of municipal and state workers by 10%, if they haven’t already been cut (many have).

3. Get serious about illegal immigration, and either demand that the federal government supports all of the illegals and their children, OR charge the employers of illegal immigrants for **every single benefit** used by their workers AND their dependents (legal or not), and include infrastrucuture expenses AND the expenses related to administering this program.

[If we "fix" the illegal immigration problem, it will eliminate about 25-40% of the costs associated with education and prisons, and possibly "welfare" programs -- all of these being the largest expenses in the state.]

4. Get rid of Prop 13 protection for all residences except a SINGLE, primary residence. Eliminate inheritability of Prop 13 protection IF the heir intends to “step-up” the cost basis upon death of a parent.

5. Get rid of Prop 13 protection for all commercial properties except for a SINGLE property (held by an individual or a trust/LLC controlled by that person). Eliminate the ability to pass Prop 13 protection from seller to buyer via corporate/LLC loopholes.

Once those things are done, see where everything stands, and then raise certain taxes, if necessary. I have a feeling we’d end up with a surplus if we enacted the changes noted above, though.

 
Comment by CA renter
2011-02-27 01:27:43

Blue Skye,

A private sector worker does not toil any harder than a public sector worker. There is a symbiotic relationship between the private and public sector.

You mistakenly think that the private sector workers are the only ones who “do productive work,” but you couldn’t be more wrong.

Again, if you can find a SINGLE country **with low/no taxes, no unions, and a weak government** that has a solid middle class that enjoys a lifestyle equal to or better than that in the U.S. or other socialist countries, please let me know. I’ve been waiting for that answer for years now…why is nobody able to produce a single example of this “capitalist utopia” in real life????

 
Comment by kmo722
2011-02-27 06:52:48

agree CA Renter.. well said..

 
 
 
 
 
Comment by Professor Bear
2011-02-26 05:14:54

Hair-of-the-dog stimulus seems to be leaving us with a hell of a hangover.

State And Local Budget Cuts Are Slowing US Economy
by The Associated Press
WASHINGTON February 25, 2011, 07:09 pm ET

Deep spending cuts by state and local governments pose a growing threat to an economy that is already grappling with high unemployment, depressed home prices and the surging cost of oil.

Lawmakers at state capitols and city halls are slashing jobs and programs, arguing that some pain now is better than a lot more later. But the cuts are coming at a price — weaker growth at the national level.

The clearest sign to date was a report Friday on U.S. gross domestic product for the final three months of 2010. The government lowered its growth estimate, pointing to larger-than-expected cuts by state and local governments. The report suggested that worsening state budget problems could hold back the recovery by putting more people out of work and reducing consumer spending.

Across the country, governors and lawmakers are proposing broad cutbacks — lowering fees paid to nursing homes in Florida, reducing health insurance subsidies for lower-income Pennsylvanians, closing prisons in New York state and scaling back programs for elderly and disabled Californians.

“The massive financial problems at the state and local levels have and will continue to restrain growth,” said economist Joel Naroff of Naroff Economic Advisors.

 
Comment by Professor Bear
2011-02-26 05:22:43

Many years ago, I used to post on HBB regarding the high debt burdens at all levels of American society, including households, municipalities, states, pensions, corporations plus the federal government at the fiscal and international trade levels, back when nobody seemed to think burdensome debt levels were much of a problem. Can anyone who understands better than I do kindly explain who flipped the switch (and how) which suddenly brought the lingering U.S. state and municipal budget crisis to a head?

State budget cuts, at a glance
Published February 25, 2011

State and local governments are sharply cutting spending in an effort to close large budget gaps. The cuts reduced economic growth in the October-December quarter last year, the Commerce Department said Friday. The cuts are likely to drag on growth for the rest of this year, some analysts say.

There are several ways state and local spending cuts can slow economic growth, according to Jon Shure, an analyst at the liberal Center on Budget and Policy Priorities. Layoffs and other job losses lower consumer spending, which powers 70 percent of the economy. Cuts in benefit programs also reduce recipients’ ability to spend. And cuts in education spending can impact longer-term economic growth by lowering skills in the work force.

Comment by salinasron
2011-02-26 08:31:02

“consumer spending, which powers 70 percent of the economy”

Wow, I see where the government needs to hire a new czar. Since the US functions on a consumer model as the engine to run our economy you savers out there need some indoctrination training to fully understand how you are single handedly destroying our economy. Keeping low interest rates has not worked for a mast majority so maybe stronger methods need be applied. Perhaps euthanasia for those failing to throw all their resources into the Federal pot.

Comment by ecofeco
2011-02-26 15:01:14

I was with you right up until you blamed the government.

It’s Wall St.

 
 
Comment by Housing Wizard
2011-02-26 13:59:44

Right PB ,why the crisis now in the first quarter of 2011 .Do the masters of the Universe finally realize that the re-inflating of the RE bubble prices isn’t going to happen .

Comment by CA renter
2011-02-27 01:30:49

IMHO, it’s because pay day has arrived. The financial elite are trying to turn the spotlight away from themselves, as they certainly don’t want to pay for the mess they’ve created. They like their billion-dollar bonuses and trillion dollar govt backstops, guarantees, and outright gifts.

Therefore, it’s the union workers’ fault, of course!

 
 
Comment by cactus
2011-02-26 21:53:32

Can anyone who understands better than I do kindly explain who flipped the switch (and how) which suddenly brought the lingering U.S. state and municipal budget crisis to a head?”

you know the answer the great Recession did lower tax revenue after a glorious RE fueled Bubble that ended

All the money is off partying in S. America and other younger economies blowing a big bubble “over there”

question what happens to bubbles domestic or over foriegn ?

Comment by CA renter
2011-02-27 01:32:39

And you can’t seem to understand the connection between all the money “over there” and the lack of money “over here.”

It must be the unions…

 
 
 
Comment by Professor Bear
2011-02-26 05:25:21

* NY REAL ESTATE RESIDENTIAL
* FEBRUARY 26, 2011

Home Prices Fall, Foreclosures Ease

By SHELLY BANJO

While the housing market in New York City is performing better than in the rest of the country, it still showed signs of distress in the fourth quarter, according to a report by New York University’s Furman Center for Real Estate and Urban Policy.

Sales volume dropped nearly 33% in the quarter compared with the same period last year, the report said.

Meanwhile, prices were down citywide nearly 9% from a year earlier and were 28% lower than at the peak of the market in 2006.

In Manhattan, housing prices in the fourth quarter were higher than a year earlier, but were still 10% below their peak in the fourth quarter of 2008, according to the report. Queens trails all other boroughs in the house price recovery, with prices down 42% from peak levels in 2006.

Comment by DebtinNation
2011-02-26 21:27:02

“SOME signs of distress” . . .
Now that’s an understatement!

 
 
Comment by Professor Bear
2011-02-26 05:27:34

Bend-area housing prices continue to fall
Last modified: February 25. 2011 4:31AM PST

Single-family home prices in Deschutes County fell nearly 8 percent in the fourth quarter of 2010 compared with the fourth quarter of 2009, according to federal data released Thursday.

Among 309 Metropolitan Statistical Areas, the Bend MSA ranked 293rd in home-price appreciation, according to the Federal Housing Finance Agency’s all-transactions Housing Price Index.

The Reno-Sparks, Nev., MSA sat at the bottom of the list, dropping more than 10 percent year over year. The Bend MSA, which comprises all of Deschutes County, held the bottom position last year.

Rankings and rates for other Oregon MSAs in the fourth quarter 2010 were: Corvallis, 197, declined 2 percent; Eugene-Springfield, 255, declined 4.2 percent; Medford, 284, declined 6.2 percent; Portland-Vancouver-Hillsboro, 254, declined 4.2 percent; and Salem, 243, declined 3.8 percent.

Comment by Bill in Carolina
2011-02-26 08:12:39

Bend over, Bend.

Comment by mikeinbend
2011-02-26 08:36:00

Bend, O’er. Couldn’t think of a prettier place to go belly up.
Where the cost of living is high and the denizens are higher.
During the boom, while I was going to teaching school here; we wondered about the framers building houses for the plumbers who were plumbing for the real estate agents who were selling them to the framers. Kick out one leg and the whole stack of cards is bound to fall but those numbers were intoxicating to say the least.

But for these troubling observations, the koolaid was tastee nevertheless. “Honey our condo is up 10k today!” We bought 350k worth of real estate in 05; sold those two properties in 06 for 637k. Pretty heady stuff, given that I saw how hard teaching is and that gain before taxes represented more or less 8 years of teaching salary.

Of course, buying another unit in 07 for 350k now worth 200k erases quite a bit of those gains. But real estate only goes up; (till it doesn’t).

Comment by Professor Bear
2011-02-26 08:50:03

“…that gain before taxes represented more or less 8 years of teaching salary.”

Unfortunately, the same calculus works in reverse with negative signs in front of said gains…

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Comment by DebtinNation
2011-02-26 21:29:40

Except that the FB usually never realizes the losses directly. Heads I win, tails you lose.

 
 
Comment by exeter
2011-02-26 08:50:20

“we wondered about the framers building houses for the plumbers who were plumbing for the real estate agents who were selling them to the framers. Kick out one leg and the whole stack of cards is bound to fall but those numbers were intoxicating to say the least.”

BULLSEYE!!!

There it is.

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Comment by mikeinbend
2011-02-26 08:18:04

Bofa’s reaction to get these now lower priced properties taken back and someday resold is to cancel sales en masse. I know my wife’s house, scheduled originally to be auctioned in November, is now without a Trustee’s Sale #. It was purchsed for 385k; now worth about 200k. Loan is for 300k; but yet we get to stay after not paying for 1 year and having had the boxes ready since November. Now we don’t even have a TS #. There are only 54 scheduled auctions by Recontrust in our county (similar # reductions for Clackamas and Multnohmah, and most other counties in Oregon).

Go to recontrust dot com and see for yourselves the paltry numbers of Tr.Sales currently there. Why such a massive scrapping of sales when I assume they could have just rescheduled them ad nauseum. Now new TS #s will have to be created or old ones re-activated in order for them to proceed.

How are they ever going to get us to leave and our home put into the shadow inventory as another unavailable REO when they reschedule our sale 5 times and then cancel it altogether? 3000 homes for sale in this county, more or less; 500 cancelled transfers into the trustee’s hands is significant inventory to be left flapping in the wind by BofA alone? No one is paying the mortages on these; nor the HOA’s in many cases; nor the property taxes. Which may be why Bofa does not want them right now; but our schools/municipalities could use the money to operate.

Redmond school district is 10 million in the red for next budget cycle. already there are 50 plus kids in many high school classes; with desks only for those who get to class early enough. 2600 students in the high school is lunacy. I have been there as a sub; try keeping them listening or off their blackberries. Old tricks like learning their names–too darned many when you have 300 filing in and out throughout the day. Sorry to those who assert that the good students will learn anyway; not when the jokers won’t give respect, listen, or at the very least shut their noise makers. The good students are getting ripped off due to class size.

For the house; I feel sure they will re-po it someday, no idea when though, with 90% of their auctions scrapped for now. Only 54 are currently on the docket between now and July; when over 600 had been scheduled as of last Oct; and not one sold. New NOD’s must be waiting in the wings as well…The problem is ever snowballing IMO.

Comment by Professor Bear
2011-02-26 08:52:19

“…3000 homes for sale in this county, more or less; 500 cancelled transfers into the trustee’s hands is significant inventory to be left flapping in the wind by BofA alone? No one is paying the mortages on these…”

With so many unpaid mortgages around the country, I’m guessing BofA would be a bankrupt bank by now were it not for their too-big-to-fail protection from the Fed. Is that overstating the situation?

Comment by mikeinbend
2011-02-26 09:31:54

could be overstating it.
Seems to me amidst the confusion that banks are making money hand over fist via new fees and servicing fees and from already having sold the loans at face value to investors; and that when or if they are going to lose money; they can wait to sell at a lower price as long as they wish so thanks to lax accounting rules.

Because the originators like Countrywide got paid from the get go when the original loan was securitized and sold. Bundled and sold as AAA to other countries/ PERS, etc. they sold the loan shortly after origination. Why would Bofa go belly up when they had been made whole and only skimmed gravy off the top via servicing fees.

And lots of folks bought mortgage insurance as part of the no-down, or low-down, home buying deals. When these peeps stopped paying, would the insurance company make whoever collectively holds the note whole? Or would they pay the servicer without realizing they no longer held the note. Seems like mortgage insurance companies would go belly up due to number of claims. Or whoever bought the securitized loans from the banks would be toast.
The banks are golden and smelling like a rose, unless they are forced to eat the badly rated investments they were peddling and then betting against.

Not to mention banks are making money on new fees/ checking account fees/ annual credit card fees/ higher APRs on credit cards.

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Comment by Professor Bear
2011-02-26 10:18:57

“… from already having sold the loans at face value to investors;…”

Are you suggesting this would have even been possible post-bubble collapse without the PPT’s financial engineering efforts?

 
Comment by Kim
2011-02-26 10:38:57

“And lots of folks bought mortgage insurance as part of the no-down, or low-down, home buying deals. When these peeps stopped paying, would the insurance company make whoever collectively holds the note whole? Or would they pay the servicer without realizing they no longer held the note. Seems like mortgage insurance companies would go belly up due to number of claims.”

Its my understanding that mortgage insurance only covered 20% of the defaulted loan, but your point is valid.

 
Comment by skroodle
2011-02-26 11:12:04

Dallas Independent School District is offering $10,000 to teachers who will quite. They started accepting applications this morning at 8am.

The teachers started lining up yesterday at 5pm.

 
 
 
Comment by Kim
2011-02-26 11:04:40

“Redmond school district is 10 million in the red for next budget cycle. already there are 50 plus kids in many high school classes; with desks only for those who get to class early enough. 2600 students in the high school is lunacy.”

Mike, out of curiosity, is there any “competition” (if you will) to the public high school such as magnet schools or charter schools? If so, how are they faring?

Comment by mikeinbend
2011-02-26 18:43:28

last year Redmond district went to 4 day weeks. There are some private options, mostly christian schools. they were advertising pretty heavily “5 day weeks” This year Redmond went back to 5 day weeks. Teachers were suing over sick days; they wanted two weeks(10 days). District said that two weeks constituted 8 days on the new schedule. I guess they blew their savings on legal fees….

Cant really answer your question except to say there are private options available; but with unemployment so high not too many folks can afford private school.

BTW, Recontrust sales on the docket down to 31 today….no legal standing to foreclose? No clue why they would toss virtually all their sales. 600 folks, not paying their taxes, from just one lender, given more time, means (600*$2000 average taxes per home= 1.2 million) lost revenue to the Deschutes county municipal coffers. Back of the envelope figures. But we are screwed

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Comment by Professor Bear
2011-02-26 05:32:09

Paper Economy
Case-Shiller index shows big dip in housing prices
By SoldAtTheTop, Guest blogger / February 22, 2011

Today’s release of the S&P/Case-Shiller (CSI) home price indices for December reported that the non-seasonally adjusted Composite-10 price index declined a notable 0.85% since November indicating that housing is continuing to remain weak.

The 10-city composite index declined 1.20% as compared to December 2009 while the 20-city composite declined 2.38% over the same period.

Topping the list of regional peak decliners was Las Vegas at -57.63%, Phoenix at -54.67%, Miami at -49.05%, Detroit at -48.11% and Tampa at -45.30%.

 
Comment by Professor Bear
2011-02-26 05:34:17

Housing Prices Slow from Continued Downturn in Denmark
Published on: Friday, February 25, 2011
Written by: Global Property Guide

Slower than anticipated economic growth has dragged Denmark’s housing market down along with it. After seeing consecutive quarters of increasing house prices, growth is beginning to slow. See the following article from Global Property Guide for more on this.

Strong house price increases in the first of 2010 were not sustained in the second half as prices froze. Weaker economic growth combined with problems in the banking sector pushed Denmark’s housing market to adopt a wait-and-see attitude.

After increasing by an average of 2.6% q-o-q from Q4 2009 to Q2 2010, the average price of owner-occupied flats in Denmark fell 1.4% q-o-q to Q3 2010. Nevertheless, the average price of DKK18,404 per sq. m. (€2,468 per sq. m.) was still higher 6.6% from a year earlier, according to the Realkreditrådet (Association of Danish Mortgage Banks).

 
Comment by Professor Bear
2011-02-26 05:36:07

China Times: Warning signs of housing bubble
2011/02/26 15:54:05

Over the past year, the administration of President Ma Ying-jeou has tried without success to lower housing prices in the greater Taipei area to reasonable levels.

It is time for the government to promote bold and resolute reforms to resolve the problem. If the property bubble is allowed to grow and to burst, society will pay a high price.

According to the results of a survey conducted by the Taiwan Real Estate Research Center, housing prices in Taipei City have soared 73 percent over the past five years, but the average household income has risen by only 1.2 percent.

As a result, the housing price-to-income ratio in the city has increased to 11. Worldwide, the ratio is lower, except in Hong Kong where it is 11.4.

2011-02-26 10:25:52

A little late to the realization party, aren’t they?

Of course, China is “different”.

Comment by NYCityBoy
2011-02-26 10:30:01

Housing up 73 percent and income up 1.2 percent. I don’t see a problem with that.

And what have oil and food done over that time? Can you imagine how the average Chinese is being squeezed? They must read stories of their economic miracle and be even more frustrated than their American counterparts.

2011-02-26 10:55:35

I was in India again (on vacation) in Jan, and at least, I can attest at first hand, the squeeze.

Inflation is raging. The key issue seemed to be the price of onions (absolutely critical to any of the zillion Indian cuisines.)

Unsurprisingly, everyone was really really silent about real-estate.

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Comment by NYCityBoy
2011-02-26 11:12:34

Thanks, cat. I had read accounts of protests over onion prices. That seems strange to Americans. I guess onions are to India what rice is to China. Couldn’t they just plastic coat the onions and make them go further?

Bernanke is playing with the lives of billions of people. But at least Priceline.com is zooming.

 
2011-02-26 11:24:29

Sorry, not just Bernanke. Every central banker.

They could just let the rupee appreciate but then it would hurt the extraordinarily-powerful “export lobby” in India so I call BS on that one.

They’re all in on the game.

 
Comment by NYCityBoy
2011-02-26 11:29:11

You make a good point. The same could be said of China. If they tried to strengthen their currency they would pay less for raw materials. But that would hurt their exports.

You are right that all central bankers have shown just how rotten they are. They are like politicians. Good luck finding a good one. The race between central bankers is an odd one. They all want to finish last.

I will take my trip to the woodshed. Bernanke still sucks.

 
Comment by Housing Wizard
2011-02-26 12:12:35

I just can’t say enough about the potential for harm the mad-
hatter Fat Cats market makers has today . Yes ,corrupt
entities that are bailed out instead of busted will live another
day to reek their damage and it will be worse .

I don’t think you guys get how serious this is .

 
Comment by ecofeco
2011-02-26 15:22:05

It’s WW3 serious.

Not tomorrow, but within our lifetime.

I sincerely hope I’m wrong, but history shows that when stupidity reaches a certain level, the S always HTF.

 
Comment by Housing Wizard
2011-02-26 16:10:10

ecofeco …Right ecofeco ,cause and affect until it reaches
a critical mass than Black Swan events take place . I’m not the smartest guy in the barn ,but I know enough to know that stupidity is prevailing .

 
Comment by RioAmericanInBrasil
2011-02-26 18:36:11

Sorry, not just Bernanke. Every central banker.

There are degrees. Brazilians are the grownups now?

 
Comment by CA renter
2011-02-27 03:19:33

I don’t think you guys get how serious this is .
—————-

Indeed…

 
 
Comment by measton
2011-02-26 17:11:54

Wow income up only 1.2% in 5 years in non inflation adjusted terms.

Yes the chinese economy is going to save us all.
smirk off.

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Comment by Professor Bear
2011-02-26 05:39:20

Living Longer, Living Better | Real Estate
The Boston Globe
Seeing a buyer’s market
Some say Florida real estate prices bottoming out, suggest it is prime time for purchase
By Ann Carrns
Globe Correspondent / February 27, 2011

Maryann and Fred Davis aren’t anywhere near ready to quit working. But with housing prices temptingly low, the Danvers couple decided it was a good time to buy a second home in a warm climate that could serve as a winter getaway now and a place for retirement later.

The couple became hooked on Naples, on Florida’s southwestern coast. So last summer, with the help of an acquaintance working as a real estate agent there, they bought a three-bedroom, 2,400-square-foot home with a small pool, overlooking a lake, in a gated community. The price: $200,000, or roughly 40 percent less than what it sold for in 2005.

As the Davises show, this could be a good time for New Englanders thinking of winter escapes and warm-weather retirements to buy in popular Sunbelt locales, such as Las Vegas, Phoenix, and Florida. Home prices in these markets, among the hardest hit in the housing bust, have plunged by about half since 2006. With mortgage rates low, that means bargains are available — with a few caveats.

Further declines remain possible in some markets. As a result, said Stan Humphries, chief economist at real estate website Zillow.com, those expecting to sell in two or three years are better off not buying. But buyers who plan to hold the property for 10 years or so are taking much less of a risk.

“If they have a long time horizon,’’ said Humphries, “it’s a real buying opportunity.’’

Comment by salinasron
2011-02-26 08:22:19

“thinking of winter escapes and warm-weather retirements to buy in popular Sunbelt locales, such as Las Vegas, Phoenix, and Florida”

How about just renting in those years that I want a warm weather escape? Gee, this year Florida, next year Phoenix, next year maybe south of the border. And each year that I visit Florida I can change my location, with the added benefit of not paying taxes on property, paying high summer heat bills nor worrying about hurricanes.

Comment by polly
2011-02-26 08:36:45

But you can’t paint the walls!!!

Comment by Professor Bear
2011-02-26 08:58:35

You can pick the color of the hotel where you stay during your Florida vacation…

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Comment by Professor Bear
2011-02-26 08:53:50

“How about just renting in those years that I want a warm weather escape?”

You read my mind, brother! Why tie yourself down to a 2000+ sq ft money pit in the hurricane zone?

 
Comment by Arizona Slim
2011-02-26 09:21:20

How about just renting in those years that I want a warm weather escape?

The lady who cuts my hair has a sister who bought a winter place here in Tucson. Sis and her hubby were from the Chicago area, and they wanted to get away from the cold and snow.

Wasn’t but a few years before sis and hubby did the math and figured that it was cheaper to rent than own. So, they sold their winter place here.

Nowadays, if they come down to Tucson for the winter, they rent a place for a few months.

Comment by In Colorado
2011-02-26 09:39:41

“Nowadays, if they come down to Tucson for the winter, they rent a place for a few months.”

Plus theydon’t have to worry about their unoccupied vacation house.

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2011-02-26 11:29:40

Or the maintenance. Or the zillion other problems.

Oh yeah, they don’t get to choose the color of the walls. Bet that really burns them up inside and keeps them awake at night financially!

 
Comment by Dale
2011-02-26 18:38:11

Go ahead, paint the walls. Just be prepared to lose the damage deposit if the LL doesn’t like it. Maybe he will thank you.

 
 
 
 
Comment by ecofeco
2011-02-26 15:25:35

“If they have a long time horizon,’’ said Humphries, “it’s a real buying opportunity.’’

Not yet it ain’t.

 
Comment by RioAmericanInBrasil
2011-02-26 18:46:41

Some say Florida real estate prices bottoming out, suggest it is prime time for purchase

“Time for purchase” God how sad, that’s all we do anymore. Speculate on crap and buy crap…spend our lives looking for crap to by cheap to sell dear to buy cheap.

Comment by CA renter
2011-02-27 03:22:51

We are all gamblers now.

 
 
 
Comment by Professor Bear
2011-02-26 05:40:32

South Florida housing burden leads nation, study finds
February 25, 2011|By Paul Owers, Sun Sentinel

South Florida has the nation’s biggest burden when it comes to monthly housing costs.

That’s the conclusion of a report released this week that shows 42 percent of the 752,041 working households in Palm Beach, Broward and Miami-Dade counties spent more than half of their income on housing in 2009.

The Center for Housing Policy said the three-county region also led the U.S. in 2008, when 39 percent of homeowners devoted more than half of their income to housing.

“It’s a dubious distinction, isn’t it?” said Keith Wardrip, the author of the report and senior associate for the nonprofit research group in Washington, D.C.

Comment by Bill in Carolina
2011-02-26 12:37:11

You can’t see this quote too often.

Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors says that “South Florida is working off of a totally new economic model than any of us have ever experienced in the past.” He predicts that a limited supply of land coupled with demand from baby boomers and foreigners will prolong the boom indefinitely.

How’s that new economic model working for you?

Comment by CA renter
2011-02-27 03:23:56

Thanks, Bill. :)

 
 
 
Comment by Professor Bear
2011-02-26 05:44:09

With maybe 5 million plus homes in shadow inventory yet to hit the U.S. housing market, why do so many folks think now is the time to buy with cash?

Cash deals raise January sales of existing homes, report says
By Dina ElBoghdady
Washington Post Staff Writer
Wednesday, February 23, 2011; 10:59 PM

Sales of previously owned homes increased nationwide in January, driven by all-cash purchases that suggest investors are chasing after foreclosures and other bargains in an ailing housing market, an industry group reported Wednesday.

Sales rose 2.7 percent from December, to a seasonally adjusted 5.36 million, the National Association of Realtors reported. The purchases - which include single-family homes, condominiums and townhouses - were up 5.3 percent from a year ago.

Although the figures reflect an improved economy, they also capture some of the underlying weaknesses in the housing market, namely the persistently large number of foreclosures that continued to drag down prices in January and attract investors.

Foreclosures and other distressed properties made up 37 percent of homes sold last month, the group reported. The cheap homes lured investors, who accounted for 23 percent of buyers, up from 20 percent the previous month and 17 percent a year ago.

As more investors entered the market, all-cash purchases surged to their highest level since the group started tracking the numbers in October 2008. The increase suggests that stringent lending rules are shutting out traditional buyers and empowering people with hefty sums of cash to close deals, said Lawrence Yun, the group’s chief economist.

Comment by Arizona Slim
2011-02-26 08:03:29

Foreclosures and other distressed properties made up 37 percent of homes sold last month, the group reported. The cheap homes lured investors, who accounted for 23 percent of buyers, up from 20 percent the previous month and 17 percent a year ago.

And let me guess: These all-cash investors are about to get schooled on the realities of landlording. We’ll be reading stories detailing the antics of their no-good tenants in another year or so.

Comment by Professor Bear
2011-02-26 08:57:15

“We’ll be reading stories detailing the antics of their no-good tenants in another year or so.”

You remind me I need to catch up with my parents on the travails of Lil’ Sis’s foray into landlording. It seems they have a single mom with six kids as tenants; BIL chose them because they offered to pay above the rent they advertised.

Got popcorn?

Comment by Arizona Slim
2011-02-26 09:24:54

You remind me I need to catch up with my parents on the travails of Lil’ Sis’s foray into landlording.

And you remind me that I need to call my aunt and ask her about my two cousins’ forays into real estate. One bought an investment house and put lousy tenants into it. Took an act of Congress to get ‘em out.

Other cousin’s in Minneapolis, is a real estate agent, and tried to let an investment house go back to the bank. Bank didn’t want to take it back, so it made an offer to sell it back to my cousin at a deep discount. He accepted the bank’s offer.

And I have a third cousin — my aunt has three kids — he’s a building contractor. I’ve heard that, for the most part, his business is holding up. (He’s very good at what he does.)

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Comment by Professor Bear
2011-02-26 10:20:28

And you, in turn, remind ME that almost every family I know has some kind of real estate tale of woe to share if you get them to open up.

 
 
 
 
Comment by measton
2011-02-26 17:14:15

People are buying with cash because

1. If they have it and want it in a safe investment they can’t earn much and what they earn is taxed.
2. If they think that the gov will do away with the interest rate deduction after suckering in as many people as possible into homes they can’t sell in a rising rate environment they might opt to pay in cash.

Comment by cactus
2011-02-26 22:04:59

People are buying with cash because”

They fear Inflation like the 1970’s Our memory doesn’t go back to the 1930’s just what we read in books

Comment by CA renter
2011-02-27 03:27:43

People are buying with cash because”

They fear Inflation…
—————–

Yes, agree with this.

Also, with rates at sub-1% on savings, people with cash can get a better return on rentals than they can in a savings account or with bonds, etc.

Of course, the Fed is encouraging this behavior with their negative rates. They WANT us to take on riskier bets, as that’s the only way to keep asset prices artificially pumped up.

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Comment by neuromance
2011-02-26 18:36:46

With maybe 5 million plus homes in shadow inventory yet to hit the U.S. housing market, why do so many folks think now is the time to buy with cash?

They think the government’s commitment to spend any amount of money to keep house prices at a high level is permanent and effective.

Here’s the famous Case Shiller graph which shows the huge bump, the steep decline, and abrupt stop:

http://www.csmonitor.com/Business/Paper-Economy/2011/0222/Case-Shiller-index-shows-big-dip-in-housing-prices

 
 
Comment by Professor Bear
2011-02-26 05:45:48

* GETTING GOING
* FEBRUARY 26, 2011

Getting a Mortgage Before the Door Shuts

* By KAREN BLUMENTHAL

If you have been sitting on the fence trying to decide whether to buy a new house or refinance a mortgage, you should act soon. New loans are starting to get costlier.

The mortgage market is facing pressures from new laws and regulations, still-declining home prices and the ongoing need for government-owned mortgage players to shore up their finances. The Mortgage Bankers Association predicts mortgage originations, which reached $3 trillion in 2005, will be less than $1 trillion this year, the lowest level since 1997.

“The price of mortgage money is going to go up, and the availability of mortgage money may also be impinged,” says Keith Gumbinger, vice president at HSH Associates, which tracks mortgage data.

Comment by polly
2011-02-26 07:34:36

Buying after the mortgage “door” shuts would be great assuming you have enough cash to compete with the investors.

Comment by salinasron
2011-02-26 08:14:59

” enough cash to compete with the investors”

At what point, say the central valley of CA or Las Vegas, will there be more houses bought up by investors (speculators) then their will be people to rent them? The investors here in Salinas think that they can hold up prices, but where are the businesses to employ them? Where is the income? In another year, how many of there geniuses will be underwater?

Comment by Professor Bear
2011-02-26 09:00:03

“…at what point will there be more houses bought up by investors (speculators) then their will be people to rent them?”

Judging from 19m or so vacant homes in the U.S., I’m guessing we are past that point already, but that’s just a guess…

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Comment by rms
2011-02-26 09:43:20

“At what point, say the central valley of CA or Las Vegas, will there be more houses bought up by investors (speculators) then [sic] their [sic] will be people to rent them? The investors here in Salinas think that they can hold up prices, but where are the businesses to employ them? Where is the income? In another year, how many of there geniuses will be underwater?”

Wow, [sic]^2.

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Comment by salinasron
2011-02-26 10:59:36

Wow, [sic]^2.

When you didn’t read what you typed why take extra space to make corrections when others can figure it out.

 
Comment by MightyMike
2011-02-26 13:40:50

Wow, [sic]^2

Yeah, it’s that time of the year. I picked up a cold or something on an airplane 2½ weeks and I haven’t been able to shake it.

 
 
 
Comment by Professor Bear
2011-02-26 08:45:13

And if you don’t have enough cash, wait until a few years from now, when the current crop of cash-only investors have realized they bought too early and are competing to sell into a tsunami tide of 5+ million foreclosures that mysteriously appeared on the market from out of the shadows.

 
 
Comment by salinasron
2011-02-26 08:08:27

“The price of mortgage money is going to go up, and the availability of mortgage money may also be impinged,”

And please tell me again why I should be in a hurry to buy a house? Surely you must mean that I’ll have a problem because of a low housing inventory and a hoard of people bidding against my low, low, low ball offer!

Comment by Professor Bear
2011-02-26 09:02:05

Another way to look at a future absence of cheap mortgages is that there will be even fewer unqualified buyers competing with the relatively few qualified buyers left standing than there are today. Seller may eventually have to just give their houses away.

Comment by CA renter
2011-02-27 03:31:20

Yep. IMHO, that’s what most of us few remaining bears are counting on, no?

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Comment by Professor Bear
2011-02-26 05:48:18

Pozen Says U.S. Must `Rethink’ Home Ownership Incentives

Feb. 22 (Bloomberg) — Robert Pozen, chairman emeritus of MFS Investment Management, talks about U.S. housing policy. He speaks with Matt Miller and Carol Massar on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Comment by Professor Bear
2011-02-26 08:46:22

Ms Massar seems quite upset that Pozen is propozen to get rid of most of the mortgage interest deduction. What ever happened to objective reporting?

Comment by ecofeco
2011-02-26 15:33:47

Objective reporting?

Bought out in the 1980s during the media consolidation era.

Only 7 companies own all MSM in this country. (or is it 6 now?)

Comment by In Colorado
2011-02-26 17:39:41

Small wonder the Wisconsin power plant deal story was buried in the MSM. Most people I ask are completely unaware of it. They are aware of those greedy, overpaid teachers though. Gotta love Corporate Pravda.

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Comment by CA renter
2011-02-27 03:32:27

You said it, Colorado.

 
 
 
 
 
Comment by 2banana
2011-02-26 05:54:00

Wow - that is almost $10/gallon…

Motorists facing £6 a gallon at the pump due to Libya crisis ( UK )
Telegraph | 25 Feb 2011 | David Millward

At one point the price of Brent Crude spiked on the London market, hitting $119.79 a barrel – $8.54 higher than when trading started yesterday morning.

“This is further bad news for motorists and forecourts as this increase looks set to coincide with the introduction of the ill thought out fuel duty escalator adding a further five pence per litre at the pump,” Mr Madderson said.

According to Mr Madderson motorists’ plight is being worsened by retailers difficulties in borrowing money to pay for fuel.

Air travel is also likely to become dearer. British Airways has already imposed a new fuel surcharge

Comment by Professor Bear
2011-02-26 09:04:25

As gas prices soar towards $4/gal in San Diego County, I can’t help but think most end-user buyers (the kind with jobs requiring a commute to work) will be able to afford to pay less for a home purchase, as they have to pay more just to get to work.

Comment by In Colorado
2011-02-26 09:41:47

Those pickup truck commutes from Temecula to RB or Mira Mesa are going to become even pricier.

Comment by Professor Bear
2011-02-26 10:22:44

We have friends who bought in Murietta circa 2006 (against my best unsolicited advice) to beat the high cost of housing in San Diego. The last time I saw the woman of this couple a few months back, she remorsefully acknowledged that she should have followed my guidance.

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Comment by robin
2011-02-26 19:20:04

Not to mention high heating and cooling costs - :(

 
 
 
 
Comment by measton
2011-02-26 17:16:47

I’ll bet some of those who purchased hybrids or electric cars were mocked by their conservative counterparts.
I’ll bet they also were mocked for advocating mass transit.

Stupid is as stupid does.

Comment by In Colorado
2011-02-26 17:35:46

A couple of years ago we had a dishwasher replaced. The installer was a guy who wa samybe 5′8″. He saw our MINI in the garage. He asked us how we could possibly fit in it. While drive the company van, he of course had a pickup truck for his personal use.

Of course we get about 33 mpgs in 100% city driving. While the car is my wife’s I’m 6′1″ and fit in it just fine.

 
 
 
Comment by Professor Bear
2011-02-26 05:54:26

Shutdown skedaddle: Congress deserted as deadline looms
By Stephen Dinan - Associated Press, The Washington Times
7:17 p.m., Thursday, February 24, 2011

With the clock ticking to a March 4 government shutdown, you might imagine the Capitol would be buzzing with lawmakers seeking to cut deals, make impassioned speeches and do everything they could to strike a deal on spending.

You’d be wrong.

Comment by Bill in Carolina
2011-02-26 08:18:33

Obviously both sides think a shutdown will be to their advantage. One of them will be proven wrong.

Comment by Professor Bear
2011-02-26 09:06:35

The scepter of a federal government shutdown can’t do much to stimulate housing demand in locations where many federal workers are employed; we might hence expect San Diego and DC home prices to show relatively weaker performance going forward, particularly if the government shuts down.

 
 
 
Comment by vmaxer
2011-02-26 05:56:12

It looks like the FED is starting to use the only tool their willing to use against inflation, cheap talk. With the FED’s Bullard making comments about maybe ending QE2 early, it looks like the FED is going to start their campaign of cheap talk, to try and lower inflation expectations, without out actually doing anything. I think this ploy has lost all credibility. They haven’t shown a willingness to control inflation in decades. They’ve shown a willingness to unfairly burden the middle and lower classes with their inflationary policies, resulting in an ever increasing cost of living. They tax the poor to the benefit of the rich, via inflation. For the middle and lower classes it’s been a steady conversion of wealth into debt.

It’s amazing that the Fed funds rate is still at .25%, with no indication of any increases coming. Anything short of an end to QE2 and a rate increase, is just cheap talk. I don’t think people buy it anymore.

Comment by NYCityBoy
2011-02-26 10:31:29

Did the dollar strengthen on such talk? Nope.

Game over.

Comment by RioAmericanInBrasil
2011-02-26 19:41:38

Did the dollar strengthen on such talk?

Who you asking Boy? The three people who you didn’t “ignore”?

 
 
Comment by butters
2011-02-26 12:23:05

I think the QEII is at MINIMUM 600 bil until June. There will be no need to QEIII as if you read the Fed carefully, QEII never ends.

 
 
Comment by palmetto
2011-02-26 06:03:31

Voodoo-sex ritual caused the deadly five alarm fire in NY. Alpha wanted to know what I meant by “retrograde cultures”. This is one example. Also the guy in California who gave his underage daughter’s hand in marriage for cases of beer. Also Wall Street, one of the biggest. retrograde. cultures. ever.

http://news.yahoo.com/s/ap/20110225/ap_on_re_us/us_voodoo_sex_fire

Comment by Arizona Slim
2011-02-26 08:07:09

Yesterday evening, I made my weekly shopping pilgrimage to the Food Conspiracy Co-op.

Since it’s winter in Tucson, there was quite the colorful assortment of vagabonds outside the store. Just like their elderly counterparts, the RV-driving snowbirds, the young vagabonds enjoy our warm weather.

As I was locking my bicycle, I heard one of the vagabonds say that he knew someone in India whose parents had deliberately amputated his limbs so that they could take him out on the streets and panhandle. And, according to this young man, the case of the limbless fellow wasn’t an isolated incident.

I was so grossed out that I double-timed it into the co-op.

Comment by Ol'Bubba
2011-02-26 08:46:18

There was a similar scene a few years ago in the movie Slumdog Millionaire. I won’t go into the details here but it involved maiming orphans so they could get more money as beggars. I can’t think of anything more evil.

Comment by exeter
2011-02-26 08:52:13

Yes…. I recall that very sick scene that demonstrates the depths we go to for $$$.

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Comment by polly
2011-02-26 09:12:53

I don’t doubt that such a thing might happen in Indian slums, but I’m sure that I recall it from a book. Oliver Twist? The Prince and the Pauper?

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Comment by NYCityBoy
2011-02-26 09:51:56

We have a woman that begs on the corner near our apartment. If you see her walking down the street you can tell that she does have some problems. She looks a little crazy. Her teeth are bad. She is very thin. But once she gets to her corner she starts jumping up and down and squawking like a chicken. She holds her arm in a position to make it look deformed. It is very unsettling. Once she is done she just walks away, no limp or anything.

 
Comment by albuquerquedan
2011-02-26 12:30:09

Sounds like a meth addict. Hope she does not breed but probably will. Neither party would have guts to support it but we would all save a lot of money if government would support programs like this: http://en.wikipedia.org/wiki/Project_Prevention

 
Comment by RioAmericanInBrasil
2011-02-26 19:46:50

She looks a little crazy. Her teeth are bad. She is very thin. But once she gets to her corner she starts jumping up and down and squawking like a chicken.

This is a housing bubble blog. Your dream dates are your own business.

 
 
 
Comment by Rancher
2011-02-26 09:26:14

Very common in India. Some trivia. When traveling in India, you don’t drive, you hire a car
and driver. Notice the lack of side view mirrors. That’s how close the drivers pass other cars. For an American or European, it’s a death dance.

You never have the window down. Going slowly
or stopped, an arm can come in and rip you off in seconds.

You never look at someone outside directly in the eyes. Once you acknowledge that the person standing there exists, you’ll have a mob of beggars surrounding your car. The best thing to do is read a newspaper.

The saddest sight was a young female beggar,
around 9 or 10 years old with a baby.

In Mumbai, the air is so foul that every morning,
I’d take a clean handkerchief, douse with bottle
water, and tie around my face.

Comment by In Colorado
2011-02-26 09:44:43

Its like Blade Runner

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Comment by SV guy
2011-02-26 11:28:52

“When traveling in India, you don’t drive, you hire a car
and driver. Notice the lack of side view mirrors. That’s how close the drivers pass other cars. For an American or European, it’s a death dance.”

My experience in Africa was the same.

What a S-hole.

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Comment by butters
2011-02-26 11:56:01

Exaggerate much?

I am sure the worst of Indian society is more or less similar to worst of our society.

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Comment by Rancher
2011-02-26 12:18:23

You don’t have a clue. The worst of our society would be middle class in India. The slums on the outskirts of Mumbai are gray.
Everything is coated with a patina of gray dust, even the trees are gray. You have people getting water to cook with from a
trickle of a stream that some guy is pissing in while another is washing clothes. Your worst
nightmare of filth wouldn’t even come close to the reality of third world poverty.

 
Comment by SV guy
2011-02-26 14:06:55

Rancher is spot on. Imagine the worst air quality you’ve ever seen and multiply it by 10. The waterways (rivers) are a combination sewer, potable water source, recreation spot, & laundromat.

I almost expected a Tide detergent sign to be present at one of the waterfalls I visited. Imagine detergent bubbles at the bottom of a waterfall and you get the picture.

Filth like few have seen.

 
Comment by exeter
2011-02-26 17:16:04

Exaggerate?

I was in Mexico City in 1999 for some BankBoston work. The afternoon I arrived, I took a cab to my hotel(about 20 miles) I began feeling very nauseated from the smog that appeared as a drifting fog. I was able to lift my head and look in the mirror…… my face was blue. Not a faint sky blue but BlueMan blue.

 
Comment by robin
2011-02-26 19:30:39

Two years ago visited Bangkok. Didn’t turn blue but was nauseated by the air quality (lack of).

 
Comment by RioAmericanInBrasil
2011-02-26 19:50:01

The waterways (rivers) are a combination sewer, potable water source, recreation spot, & laundromat.

Sounds like a Randian wet dream.

 
Comment by exeter
2011-02-26 20:41:16

Nope…. more accurately called a free-market conservative utopia.

 
Comment by CA renter
2011-02-27 03:45:54

LOL, exeter. :)

 
 
 
Comment by salinasron
2011-02-26 11:05:38

“I was so grossed out that I double-timed it into the co-op.”

Damn woman, I just filled my screen and keyboard with coffee drippings!!!! Thanks for the hearty belly laugh. A delightful departure from the anti-everythings of late.

 
Comment by Spookwaffe
2011-02-26 18:44:05

you bought that story?

 
 
Comment by neuromance
2011-02-26 21:58:43

Well - this stuff is pretty twisted, but let’s keep some perspective too. The Europeans had WWII, which slaughtered what, 60 million people?

http://en.wikipedia.org/wiki/World_War_II_casualties

 
 
Comment by 2banana
2011-02-26 06:14:49

Republicans doing what we here at the HBB have been asking to be done for years.

Cue the “kool-aid drinking democrats only at any price” supporters…

Cue the “but back 2004 when republicans control everything crowd…”

Guess which party will block this?

———————————-

Republicans attack Obama homeowner relief
CNN | 2/25/11 | Jen Liberto

WASHINGTON (CNNMoney) — In the latest blow to Obama signature programs, Republicans are now aiming to kill several White House plans aimed at keeping underwater borrowers in their homes.

The House GOP announced hearings for next week aimed at ending “failed and ineffective” housing programs.

The four plans on the chopping block include the Home Affordable Modification Program (HAMP), the Neighborhood Stabilization Program, the Federal Housing Administration Refinance Programs and the Emergency Homeowner Relief Fund. The move would save about $38 billion remaining and unspent by the four programs, according to House Republicans.

“In an era of record-breaking deficits, it’s time to pull the plug on these programs that are actually doing more harm than good for struggling homeowners,” Rep. Spencer Bachus, an Alabama Republican who chairs the House Financial Services Committee, said in a statement.

Comment by NYCityBoy
2011-02-26 09:48:22

There’s gotta be a way to blame Bush.

The Republicans seldom deserve any good thought but maybe this time, even if accidentally, they are saying something worth listening to. Of course it will be shot down. Maybe it is just an act. It is sad that we have to question every motive of our government.

Comment by Professor Bear
2011-02-26 09:51:27

Well, he is a Republitard, isn’t he?

Comment by NYCityBoy
2011-02-26 09:53:19

I don’t even know what that means. Why don’t you cut and paste some more articles. Maybe that will give me a clue of your point. I didn’t know the HBB doubled as your RSS feed.

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Comment by Professor Bear
2011-02-26 10:28:40

Urban Dictionary

1. republitard 369 up, 57 down

A Republican that is retarded. This just happens to include all Republicans.

“George W. Bush is a Republitard.”

 
Comment by exeter
2011-02-26 17:18:15

Quite similar to it’s syphilitic “Retardican”. Both share the same universal trait called hypocrisy.

 
Comment by Professor Bear
2011-02-26 23:04:35

“I don’t even know what that means.”

Do you get it now, or should I post another definition for you?

 
 
 
 
Comment by MightyMike
2011-02-26 11:06:09

We’ll have to see what happends after the NAR lobbyists get in touch with Mr. Bachus and the members of his committee. It’s important to remember that polticians don’t really have much power. They can’t stray far from the wishes of the campaign contributors.

 
Comment by ecofeco
2011-02-26 15:44:06

The sooner we get those people out of their houses, the sooner more people will see what a totally FUBAR system we have and the sooner the banks will be forced to mark-to-market.

Comment by CA renter
2011-02-27 03:49:31

And the sooner we can destroy this suffocating debt, and have **affordable housing** for working people.

I’ll actually cheer for the Republicans (if only for a moment) if they actually follow through on this one.

 
 
 
Comment by combotechie
2011-02-26 06:28:08

Last week six people took the early retirement incentive where I work. Now they get to join the ranks of the pool of retirees that is just as large a pool as the pool of active workers. And the pension fund is underfunded, both the annuity part and the medical part.

And this is sure to continue: The pool of retired employees will grow as the pool of actives employees shrink. That’s because the company needs to cut costs so as to keep increasing the dividend every year. That’s their goal, to increase the dividend every year. They have a legacy of increasing the dividend every year and they don’t want to interrupt this legacy, so increasing the dividend is of paramount importance. The revenues aren’t increasing which means the earnings aren’t increasing, but the dividend payout mandate will forever be increasing.

The question: What is the company going to do? The answer: The company is going to relentlessly cut costs.

Employees - both active and retired - are costly. Active employees cost more but active employees are productive. Retired employees don’t cost as much but retired employees are not productive. And since the pool of retired employees is as large as the pool of active employees - and the reprecussions for cutting the money for retired employees is much less than the reprecussions for cutting money for active employees - the company will go after the retired employees.

IMHO newly retired employees from the company I work for should expect to get less in the future than previous retirees have gotten. I say this because the numbers say this. And then there is the matter of the unfunded promises of Social Security and Medicare, more numbers that say this. Bottom line: Some of these people are doomed. Not all of them, but many of them, maybe most of them.

And there are the financial sharks circulating about offering potential retirees ten-percent-plus returns on their money (that’s AFTER subtracting some hefty fees).

As I said, they are doomed.

Comment by aNYCdj
2011-02-26 06:41:10

Combo:

I still think retired should mean retired, no other job,

And you should have to prove it each year to get your “retirement” money, unless you are a least 65 soon to be 70.

Comment by ecofeco
2011-02-26 15:49:25

“I still think retired should mean retired, no other job.”

This is known as denial of right to work which has been proven morally and legally wrong for a long, long time.

Also, most retirement is based on having some other kind of income, because most people’s retirement barely pays for the basics.

 
 
Comment by lfc
2011-02-26 06:51:59

Couple of months ago, my wife’s retired grandfather lost his company sponsored health insurance which supplemented his Medicare. They were/are freaking out. He was able to find private insurance at a half way decent cost, but is freaking out that his pension shall be next. The ironic thing; he is a die hard Republican!

Comment by combotechie
2011-02-26 08:58:27

“They were/are freaking out.”

I’m betting we are going to see a lot more of this “freaking out” as this Great Contraction rolls on.

Comment by NYCityBoy
2011-02-26 10:00:16

Combo, that was a good story. Thanks for sharing.

The good news is that we are living longer. The bad news is that we are living longer. Defined benefits and extended life expectancy are slamming up against each other. I have a friend that is in a nursing home. He is going to be 90 soon. He retired back in 1979. He is a really great guy and we talk about this often. We agree that the system was not setup for people to be retired for 32 years. He will have to go on Medicaid soon. He feels terrible about it. He calls it “relief”. I wish I had the answer to the problem but the sad fact is there just isn’t enough money for everybody to live to 100.

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Comment by Professor Bear
2011-02-26 09:15:41

“The ironic thing; he is a die hard Republican!”

Karma bites hard at times!

 
Comment by howiewowie
2011-02-26 19:59:37

I’ve seen a few die hard Republicans at my work soften quite a bit over the last few years as they’ve watched our company relentlessly cut, cut, cut just to please Wall Street. The thing is, even though the company produces a nice profit every year, revenues keep falling. They’ve figured out it ain’t going to turn around by making the product worse by cutting everything and everyone until nothing is left.

 
Comment by RioAmericanInBrasil
2011-02-26 20:01:57

The ironic thing; he is a die hard Republican!

He was wasn’t he?

 
 
Comment by combotechie
2011-02-26 06:57:44

And these are not hard jobs these people are walking away from, these are some very cushy jobs - jobs where knowledge and experience reign over muscle and sweat. Jobs that one can work at well into their Seventies - maybe longer. I know of one guy working at one of these jobs that started with the company in 1953! (and, guess what, he is not one of those who opted to retire).

Comment by Arizona Slim
2011-02-26 08:10:58

And these are not hard jobs these people are walking away from, these are some very cushy jobs - jobs where knowledge and experience reign over muscle and sweat.

Back when I first moved into the Arizona Slim Ranch, I hired a handyman to install my drapes, bookshelves, and other items. At the time, he was 84 years old. A great guy to hire, too.

ISTR seeing him within the last six months. He was driving his car and was in his handyman uniform

Comment by NYCityBoy
2011-02-26 10:06:31

And if he ever stops, sadly, he will probably be dead in a matter of months. It is amazing how fast some people go downhill when they retire. Good for this gent keeping active and productive.

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Comment by Arizona Slim
2011-02-26 08:08:45

The question: What is the company going to do? The answer: The company is going to relentlessly cut costs.

And this is a dumb company. Why? Because you can’t cost-cut your way to greatness. The notion of spending money to make money isn’t just a cliche — it’s how you (gasp!) make money and stay in business.

Comment by combotechie
2011-02-26 08:31:13

“Because you can’t cost-cut your way to greatness.”

It isn’t about greatness, it’s more about survival. And personal greed.

If the company can cut costs then they can keep increasing the dividend. If the dividend is ever-increasing then the stock price will be held up by investors who are searching for such increasing-dividend stocks.

A high stock price means they get to sell more stock to investors at high prices which translates to more money on the bottom line than if they were to sell stock at lower prices.

And also - IMHO the MAIN reason - the officers of the company get paid in stock options and outright grants of stock. Keeping the stock price up keeps their income up. Way up.

Comment by combotechie
2011-02-26 08:55:46

To add to the age-old argument about what is money and what is not money:

Stock can be considered a form of money in that another company can be bought by a company using as currency nothing but shares of its stock. No money need be involved, just shares of stock.

Keeping the price of a company’s stock price up keeps open the chances of buying up another company. If the stock price is allowed to fall then the company may be bought up by somebody else, and the officers may (gasp) lose their cushy jobs.

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Comment by NYCityBoy
2011-02-26 10:12:28

Just think when AOL bought Time Warner. If Bernanke keeps this stock bubble up a while longer we could see some interesting M&A activity.

 
 
Comment by Housing Wizard
2011-02-26 10:17:06

Your post above is exactly what the game is regarding keeping the stock price up with Companies .

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Comment by In Colorado
2011-02-26 09:50:02

Fortune 500 companies can get away with this because they can force their suppliers to absorb cost cuts. In many cases they OEM the entire product out to a supplier, who slaps teh customer’s logo on it. The supplier often sells the product at a loss, while megacorp keeps all the profits. When the supllier either goes belly up or demands a profitable pricethe Megacorp simply finds a new, desperate supplier.

Ain’t Corporatism great?

Comment by NYCityBoy
2011-02-26 10:10:17

How many companies in China do you suppose are selling for a loss? I would guess a great many. When it comes to cooking books Wall Street has nothing on the Chinese manufacturers. For the people that think China can pull the world out of this they should be very careful. That is one Potemkin Village that looks great from a distance. I wonder what it looks like close up.

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Comment by In Colorado
2011-02-26 10:53:49

I’m talking about domestic suppliers. I saw this first hand at HP StorageWorks division. We would buy turnkey systems from suppliers, who were always on the verge of folding (like Quantum). We in turn resold their rebadged products with a healthy markup. Our gross margins were very healthy. Quantum almost closed their doors until EMC bailed them out with a 300 million dollar loan (EMC also resells Quantum products). And we had other less strategic suppliers which were allowed to die on the vine, as others were lined up to take their place.

As for the Chinese, who knows? I wouldn’t be surprised.

 
 
Comment by cactus
2011-02-26 22:28:38

In many cases they OEM the entire product out to a supplier, who slaps teh customer’s logo on it.”

And we all become QA inspectors because who knows what new crap will replace old good stuff

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Comment by Dale
2011-02-26 10:25:29

Combo,

If retirement benefits will not be there in the future, should one take a lump sum payout while it still exists or should one hang on to a job which can also be easily taken away? A bird in the hand…..

Comment by In Colorado
2011-02-26 10:45:05

Correct, you could always “invest” it and buy an annuity upon retirement.

 
Comment by SV guy
2011-02-26 11:42:16

+1,000,000 Dale on taking the dough. Convert said dough to hard assets.

End of story.

Another way to look at it. Look at your retirement account value. Look at your future income that will be earned while you are eligible for retirement. Subtract the retirement account value from those earnings. What are you really earning? This doesn’t even account for the ‘time value’ of $$. A counter-argument is that by working you ‘protect yourself’ from inflation somewhat. Dubious at best. You may experience some wage inflation if you are lucky enough to have a skill in high demand. The vast majority wont.

My belief is you will watch your retirement $$ vanish while ‘protecting yourself’ from inflation. I will take my money as soon as it’s available.

 
 
Comment by ecofeco
2011-02-26 15:53:10

It’s good to save money when in business, but you can save yourself right out of business as well.

 
Comment by RioAmericanInBrasil
2011-02-26 19:59:36

As I said, they are doomed.

It is what is is.

 
Comment by cactus
2011-02-26 22:20:40

Lump sum or a yearly payout ? if yearly payout who holds the money in trust?

easy to promise money but hard to collect

 
 
Comment by Hard Rain
2011-02-26 06:43:40

From the 2009 Massport Annual report entitled:

The Glass is Half Full
Reasons for Optimism in These Uncertain Times

The headline:

Regardless of any downturn in the
economy, the law guarantees your
pension. Under Massachusetts General
Law, Chapter 32, your benefits are defined
and when you retire your monthly pension
check won’t fluctuate with interest rates
or the stock market.

Despite the significant 2008 investment losses, our plan is well-funded and able to meet its obligations. This is due not only to our solid
long-term investment performance but also the consistent financial support of the Authority. Massport was required to contribute $7 million
more to the pension fund last year than originally anticipated and we expect the Authority’s contribution levels to remain in the $5 to $10
million range over the next few years as the impacts of the 2008 market losses are fully recognized.
Times like these underscore the value of your Massport defined benefit retirement plan. Even in the midst of the worst recession
since the Great Depression, your pension is guaranteed. With so much uncertainty in the world today, the stability of guaranteed retirement
benefits is certainly something to cherish. You are truly fortunate to have the benefits you earn as Massport employees and members of
the MPAERS.

Comment by denquiry
2011-02-26 07:47:13

Sounds like “Murphy’s Laws of Retirement.” Your pension is guaranteed. It may not be worth a damn but your pension is guaranteed.

 
Comment by combotechie
2011-02-26 08:37:26

Luckily the MPAERS workers have all these promises in writing.

If promises are made in writing then they can’t be broken.

/sarcasm off

Comment by CA renter
2011-02-27 04:07:37

Those “broken promises” that we can do nothing about would include things like FDIC insurance, or life insurance, or the repayment of your money when you buy Treasuries, right?

 
 
 
Comment by polly
2011-02-26 07:22:46

I’m going to say this one more time.

The husband of one of my colleagues thinks there is a fairly good chance of a government shut down, though a few days ago he thought there was likely to be a two week estension before it hit. The gentleman works on the Hill and while I obviously can’t be sure he is right, his opinion is a reason to consider it a fair possiblility. Before I talked to my friend, I would have put the liklihood at about 5%. After talking to her, I would say 40 to 60%.

Wikipedia seems to have a fair description of the last one (long before I worked for the government) and what services were suspended - national parks, passport processing, new SS applications, etc.

Personally I am going to make sure to get my taxes in this week (not enough time for them to be processed, but I don’t want them to have to be held by the post office because the IRS processing center is shut (though I have to think that the processing centers might be considered essential services, wouldn’t they be?). And I’m holding off on ordering tickets to an event at the Smithsonian. Not a big impact overall, but there it is. Anyone on the blog who is a government employee certainly knows whether they would be furloughed. Anyone who is a contractor should figure out what the pay structure is under the contract they are working on because that will certainly effect their work (or at least their pay) sitution.

Comment by Professor Bear
2011-02-26 09:13:56

“The husband of one of my colleagues thinks there is a fairly good chance of a government shut down, though a few days ago he thought there was likely to be a two week estension before it hit.”

Polly, I’m thinking about the possible impact of a government shutdown on housing demand in areas where much of the workforce is employed by the federal government (DC and San Diego included). Who wants to take on a mortgage when facing the prospect of an extended unpaid vacation?

Do you have any sense about whether this issue is weighing on the DC housing market?

Comment by polly
2011-02-26 10:21:04

Not much. I think people expect this to be the same as the other shut downs - a few days or possibly a week or two and then the employees get their back pay (though the contractors don’t). If it goes on for a lot longer than that or after it happens it looks like we are in for a series of repeats, then you could have some impact. One caveat - I believe there are a lot more contractors as a proportion of the DC population than there was back in the 90’s. That might have an impact, but if enough of the contractors are in essential services (military?), then it isn’t that important.

I, for one, would probably spend most of the first few days cleaning closets and sorting even more financial papers for the next community shredding event. Oh, and I expect that I would still put in time on my biggest work project. I have enough data that I can do things without being on the network, and there is little reason not to keep going as long as I bring my laptop home. I’ll lose my thought process if I stop working on it for too long. Actually, not getting e-mails or phone calls might make me more efficient.

Biggest impact is on tourism. Not much reason to come down to DC if Air and Space and all the others are closed. If it lasts long enough, the next impact would be on non-essential services like haircuts, and nails and such. Someone at the end of a Washington Post article said if it happened and lasted too long he would have to cancel his kid’s speech and occupational therapy because the insurance only reimbursed for about a third of it and without a paycheck he wouldn’t be able to cover the rest. So, impact on small stuff first. Big stuff like housing sales only if it actually happens and lasts a while and it looks like it might happen multiple times.

Comment by Professor Bear
2011-02-26 10:31:15

“Oh, and I expect that I would still put in time on my biggest work project.”

I’m not at all surprised. My impression is that many full-time federal employees are motivated by their sense of duty, more than the chance to make a bundle of money at the expense of others.

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Comment by neuromance
2011-02-26 21:48:25

Off topic but:

I, for one, would probably spend most of the first few days cleaning closets and sorting even more financial papers for the next community shredding event.

I purchased a decent shredder that was well rated on Amazon. One of the most satisfying purchases ever. Like 200 bucks or so. I thought I’d have to find some commercial shredder. Well, after a few weeks of intermittent shredding, I have shredded most of my backlogged documents.

Now, whenever I need to shred something - I do it immediately.

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Comment by howiewowie
2011-02-26 19:53:44

The thing is…most of the government is exempted from being shutdown. You will barely notice. Except in the media.

Comment by Professor Bear
2011-02-26 23:03:07

Believe it or not, shutting down the government, even the part deemed ‘nonessential’, would result in quite a clusterfark, as many government processes work on the basis of scheduled agendas with deadlines and future actions depending on the current ones. But part of me hopes this happens, just for the sake of seeing whether San Diego and DC housing sales and prices would nosedive in response.

 
 
 
Comment by Hard Rain
2011-02-26 07:24:11

Just looked at my 401k statement and I still haven’t received my 3.5% COLA for this year….oh wait

Comment by Bill in Carolina
2011-02-26 08:29:54

Hopefully your 401k balance is higher than it was at YE2009. The DOW was up 10% last year and the S&P 500 up just a bit more than that.

Comment by In Colorado
2011-02-26 09:51:59

If you had it invested in the stock market casino.

Comment by NYCityBoy
2011-02-26 10:17:22

You mean the casino where Lululemon, Priceline, Netflix, Estee Lauder and Deckers Outdoors have turned into bellwether stocks? Just like in housing I think everybody thinks they can jump out in perfect time and not be clobbered by the next big drop. Or maybe Priceline really is a $22,000,000,000.00 company.

The top holders of these stocks always seems to be Fidelity Investments. 401k holders be afraid. Be very afraid.

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Comment by Bill in Carolina
2011-02-26 12:50:11

Uh-oh, looks like some people missed out.

Full disclosure: Approaching age 70, we’re definitely NOT in the stock market. But I’m glad I advised one offspring just about a year ago to not get off the elevator while it was in the basement.

 
 
 
 
 
Comment by Bill in Carolina
2011-02-26 08:39:44

A whole bunch of related stories about flipper fraud in Florida. Titles such as
* NEW: Real estate industry reels from charges
* ONLINE EXTRA: How they flipped houses
* The king of the Sarasota flip
* On Gulf Coast, half a billion in defaults

www dot heraldtribune dot com/apps/pbcs.dll/frontpage

 
Comment by Professor Bear
2011-02-26 09:37:15

How many and how much more price reductions needed to sell this $18m home, given that almost nothing has sold in San Diego County for north of $10m since the bubble popped?

For Sale (MLS-listed)
$61,000,000
929 Border Ave Del Mar, CA 92014
Beds: 9
Baths: 6
Sq. Ft.: 10,164
$/Sq. Ft.: $6,002
Lot Size: 5.5 Acres
Property Type: Residential, Detached
Style: Other
Stories: 2
View: Ocean, Panoramic
Year Built: 1937
Community: Del Mar Bluff
County: San Diego
MLS#: 071064797
Source: SANDICOR
Status: ActiveThis listing is for sale and the sellers are accepting offers.
On Redfin: 1291 days

Property History for 929 Border Ave
Date Event Price Appreciation Source
Jan 28, 2010 Price Changed $61,000,000 – SANDICOR #071064797
Aug 15, 2007 Listed $76,000,000 – SANDICOR #071064797
Jul 07, 2000 Sold (Public Records) $25,000,000 sale. – Public Records

This was part of a multi-propertyA sale in which more than one property was purchased simultaneously, resulting in a purchase price that may not accurately reflect the property’s real value.

Public Facts for 929 Border Ave
Beds: 9
Baths: 7.0
Finished Sqft: 10,164
Unfinished Sqft: -
Total Sqft: 10,164
Floors: -
Lot Size: 153,331

Comment by Professor Bear
2011-02-26 09:42:30

According to Redfin, there are only 5,480 homes currently on the market in San Diego County. I find this remarkable, given that there are normally over 10,000 homes for sale at the start of the red-hot springs sales season. Maybe the sellers will come out of hibernation in the coming months…

Comment by CA renter
2011-02-27 04:13:14

PB,

There’s a fair amount of inventory in our area (all overpriced, not much to look at). Are you seeing such low inventory in yours? Maybe Redfin’s numbers are off?

 
 
Comment by Hard Rain
2011-02-26 12:25:46

“How many and how much more price reductions needed to sell this $18m home, given that almost nothing has sold in San Diego County for north of $10m since the bubble popped?”

Doesn’t really matter to those folk, My wife’s best friend lives not far from there. At first I thought it was neat cruising around in his Maserati and Ferrari when we went to visit. Later I got that junk food feeling in the pit of my stomach, told her she was on her own next time….

 
 
Comment by 2banana
2011-02-26 09:39:59

Here are Your Hope N Change Numbers after 2 years:

After two years of Obama…

January 2009 TODAY % chg Source
Avg. retail price/gallon gas in U.S. $1.83 $3.104 69.6% 1
Crude oil, European Brent (barrel) $43.48 $99.02 127.7% 2
Crude oil, West TX Inter. (barrel) $38.74 $91.38 135.9% 2
Gold: London (per troy oz.) $853.25 $1,369.50 60.5% 2
Corn, No.2 yellow, Central IL $3.56 $6.33 78.1% 2
Soybeans, No. 1 yellow, IL $9.66 $13.75 42.3% 2
Sugar, cane, raw, world, lb. fob $13.37 $35.39 164.7% 2
Unemployment rate, non-farm, overall 7.6% 9.4% 23.7% 3
Unemployment rate, blacks 12.6% 15.8% 25.4% 3
Number of unemployed 11,616,000 14,485,000 24.7% 3
Number of fed. employees, ex. military (curr = 12/10 prelim) 2,779,000 2,840,000 2.2% 3
Real median household income (2008 v 2009) $50,112 $49,777 -0.7% 4
Number of food stamp recipients (curr = 10/10) 31,983,716 43,200,878 35.1% 5
Number of unemployment benefit recipients (curr = 12/10) 7,526,598 9,193,838 22.2% 6
Number of long-term unemployed 2,600,000 6,400,000 146.2% 3
Poverty rate, individuals (2008 v 2009) 13.2% 14.3% 8.3% 4
People in poverty in U.S. (2008 v 2009) 39,800,000 43,600,000 9.5% 4
U.S. rank in Economic Freedom World Rankings 5 9 n/a 10
Present Situation Index (curr = 12/10) 29.9 23.5 -21.4% 11
Failed banks (curr = 2010 + 2011 to date) 140 164 17.1% 12
U.S. dollar versus Japanese yen exchange rate 89.76 82.03 -8.6% 2
U.S. money supply, M1, in billions (curr = 12/10 prelim) 1,575.1 1,865.7 18.4% 13
U.S. money supply, M2, in billions (curr = 12/10 prelim) 8,310.9 8,852.3 6.5% 13
National debt, in trillions $10.627 $14.052 32.2% 14

Just take this last item: In the last two years we have accumulated national debt at a rate more than 27 times as fast as during the
rest of our entire nation’s history. Over 27 times as fast.

Metaphorically speaking, if you are driving in the right lane doing 65 MPH and a car rockets past you in the left lane. 27 times faster, it would be doing 7,555 MPH!

Sources:
(1) U.S. Energy Information Administration;
(2) Wall Street Journal;
(3) Bureau of Labor Statistics;
(4) Census Bureau;
(5) USDA;
(6) U.S. Dept. of Labor;
(7) FHFA;
(8) Standard & Poor’s/Case-Shiller;
(9) RealtyTrac;
(10) Heritage Foundation and WSJ;
(11) The Conference Board;
(12) FDIC;
(13) Federal Reserve;
(14) U.S. Treasury

(from an email)

Comment by In Colorado
2011-02-26 10:42:38

Yup, the numbers suck. I’m very disappointed in the total sell out to the banking clan.

That said, it would be no different had McCain won.

It’s time to move beyond Tweedle Dee and Tweedle Dum.

 
Comment by ecofeco
2011-02-26 16:00:21

2 years to undo 8 years of damage.

Momentum, how does it work?!

 
Comment by exeter
2011-02-26 16:57:22

The US Treasury vaults where opened up long before Obama.

Nice try though.

 
Comment by howiewowie
2011-02-26 19:49:15

I seem to remember thousands of U.S. citizens dying in the first year of the last guy’s presidency. Waaaay up over Clinton’s numbers.

 
Comment by CA renter
2011-02-27 04:15:52

So…where did all that money (credit) go?

Oh, I see, it’s in your commodities prices there.

Maybe the evil union thugs took it, though. [/sarcasm]

 
 
Comment by Carl Morris
2011-02-26 10:04:04

I guess since the market will never be rational it’s time to go with precious metals. Picking up 1400 more units of brass, copper, and lead today. Price is better than it was a couple of years ago.

Comment by NYCityBoy
2011-02-26 10:19:20

I assume you already own several devices that can cause that metal to be moved at high speed.

Comment by Bill in Carolina
2011-02-26 12:52:56

Don’t ask, don’t tell.

Comment by Carl Morris
2011-02-26 14:13:47

Yeah…I’m just worried enough to have the stuff around but not so worried that it has to be a huge secret. I just can’t get the stories from ex-Yugoslavia out of my head of people paying for that day’s bread out of their magazine.

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Comment by Jess from upstate SC
2011-02-26 14:14:20

If you are thinking about buying a bity bity car to address the gas prices , don’t do it . Several years ago we bought a Ford focus to save gas above $2 . It ran fine till it was out of warrenty , then Ka-boom . the motor blew spectacturaly in 40 Mph traffic at rush hr ,. Something about it being a single overhead cam engine . All the value of a car gone in a second . I’ll stay with bigger , better built vehicles from now on .

Comment by WT Economist
2011-02-26 14:32:03

My bicycle is still running well, however. So is the 14-year-old Saturn.

The NYC transit system, that’s questionable.

 
Comment by ecofeco
2011-02-26 16:03:40

You got one lemon. Look around you. There are still thousands of those cars still running.

Motors blowing up is very VERY rare. Hard to believe there wasn’t any warning of some kind, but it can happen. Rarely.

Comment by In Colorado
2011-02-26 17:25:48

Lots of “bity bity cars” last well past 200K miles. What happened to you was an aberration. Lots pf 4 bangers come with 100K powertrain warrantees these days.

 
 
Comment by neuromance
2011-02-26 21:51:18

If you drive a four-cylinder as though it should be responding like a v-8 then yes, it won’t last long. Don’t keep it floored, don’t horse it, and the engine will last just fine. I was on a small bus once that threw a rod going up a hill because it was just constantly floored.

The farther down the accelerator pedal is pressed, the higher stresses on the motor and transmission.

 
 
Comment by salinasron
2011-02-26 15:34:02

Check out the new mini-cooper if gas pricing is a problem as well as intercity parking:
“A carbon composite frame is used to make the Rocketman exceedingly light – allowing for a propulsion system which, despite sprinting like a marathon runner and making roller coaster turns, can still deliver mileage over 75 mpg.”

Comment by ecofeco
2011-02-26 16:08:20

Way overpriced car in any model.

Comment by In Colorado
2011-02-26 17:22:40

Actuually if you buy any comparably equipped compact they cost about the same.

Comment by ecofeco
2011-02-26 21:28:48

I thought the mini was a sub-compact?

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Comment by Housing Wizard
2011-02-26 16:18:27

They just said on TV in essence that the shut down might not take place . I guess they are extending it until March 18,2011 .

I still can’t get my head around just recently where they made all the
tax breaks and than now shortly after that they might shut down the Government . Am I nuts ,or is it them .

Comment by CA renter
2011-02-27 04:17:58

It’s not you…

 
 
Comment by GrizzlyBear
2011-02-26 16:59:18

Berkshire profit up 43%; acquisitions eyed

WASHINGTON (MarketWatch) — Berkshire Hathaway Inc. on Saturday said fourth-quarter profit climbed 43%, driven by the company’s recently acquired railroad property and an improved U.S. economy.

Chairman Warren Buffett, the famed investor, also said he’s got some money to spend on acquisitions. In a letter to shareholders, Buffett indicated he plans to use some of the company’s $38 billion in cash to obtain new assets.

Life’s good for Warren Buffet, and all the pigs.

Comment by In Colorado
2011-02-26 17:19:55

HIs wife died. No amount of money was able to save her or bring her back.

Comment by Awaiting
2011-02-26 19:47:23

Warren Buffett and his wife were either separated or divorced. That’s different than losing someone you live with. Stayed friends for life.

 
 
 
Comment by exeter
2011-02-26 17:38:26

Family Values Conservative Republican representative Chris Lee turns out to be looking for crossdressers and transexuals too.

http://www.wben.com/Gawker–Lee-Advertised-for-Crossdressers–Transexu/9285100

Gotta love those good ol’ fashioned conservative GOP family values.

Comment by Awaiting
2011-02-26 20:04:46

exeter
Interesting update on that nutjob. Boy, that guy gives me the creeps. Thanks for the distraction from my worries.

We went house shopping today. Prices are still in the stratosphere, imho.

Good Night all you wonderful & smart HBBer’s.

 
Comment by RioAmericanInBrasil
2011-02-26 20:16:21

Family Values Conservative Republican representative Chris Lee turns out to be looking for crossdressers and transexuals too.

Good try.

There is no story here. If you would have read the whole article you’d have seen he was only looking for Republican transsexuals.

Comment by exeter
2011-02-26 20:20:06

That task should be quite easy.

 
 
Comment by Professor Bear
2011-02-26 23:19:26

“Republican representative Chris Lee turns out to be looking for crossdressers and transexuals too”

Why is it that so many Republitards are closet perverts?

 
 
Comment by cactus
2011-02-26 22:44:08

Ran into a friend of mine today he’s out looking at repo’s in Simi valley

He owns a bunch of homes been buying them since the 1970’s

Dreams of a old boomer die hard but good luck to him he’s pretty cool

 
Comment by Professor Bear
2011-02-26 23:16:07

Dumb question of the day:

With looming budget cuts and the potential for a federal government shutdown which would completely turn off the flow of federal monies to the states, how can anyone either believe the recession is over or that now is a good time for your typical middle-class end-user to buy a house as a place to live in? I kind of get the super-deep pockets picking up foreclosure homes at fire sale prices as an investment gamble, but it just doesn’t compute to me for families to buy a home now in areas where it remains cheaper to rent than to own comparable housing.

And sorry if it seems like I am being dense here, but why do low interest rates make this a good time to buy? Can’t the sheeple see that rates are likely to go up before they go down further, given that they are currently at 50-year lows, and that higher rates will result in lower valuations? This isn’t rocket science, folks! Try not to catch yerselves falling knives.

States fear budget cuts, shutdown threats
By Lisa Lambert
WASHINGTON | Sat Feb 26, 2011 6:54pm EST

WASHINGTON (Reuters) - Governors of U.S. states see a new threat to their fragile budget and economic situations: the federal government.

On Saturday, governors from across the country warned that federal budget cuts and a government shutdown could hurt states’ slow economic recovery and said suggestions to allow states to declare bankruptcy damaged their ability to borrow.

“As Congress works to get its fiscal house in order, we call on them to cooperatively work with the states,” said Washington Governor Christine Gregoire at the National Governors Association winter meeting. “This means, for us, not creating proposals that allow states to declare bankruptcy.”

The recession caused deep collapses in states’ revenues. Because all states except Vermont must end their fiscal years with balanced budgets, they have cut spending, hiked taxes, borrowed and turned to the federal government for help.

The recession officially ended in 2009, but few states have recovered, and Gregoire, a Democrat who chairs the governors’ group, said states now face new budget gaps totaling $175 billion.

They will close those gaps with little federal aid, as help from the $821 billion economic stimulus plan comes to an end and President Barack Obama and Congress seek to cut domestic programs to shrink the deficit.

“We know there is no new money coming to the states. What we have asked them to do, however, is be mindful that cuts could serve to undermine our economic recovery,” Gregoire said.

Comment by CA renter
2011-02-27 04:23:48

You’re right, PB.

Buying houses in places that haven’t seen significant drops yet (due to all the interventions) seems like a foolish decision in the face of rising interest rates and reduced govt spending.

Something about picking up pennies in front of steamrollers…

 
 
Comment by Professor Bear
2011-02-26 23:18:08

Newt Gingrich = Republitard leader
Slick Willie = Dumbocratic leader

United States federal government shutdown of 1995
From Wikipedia, the free encyclopedia
Jump to: navigation, search

The 1995 “shutdown” of the United States federal government was the result of a conflict between Democratic President Clinton and the Republican-controlled Congress over funding for Medicare, education, the environment and public health. It took place after Clinton vetoed the spending bill which Congress sent him. Thereupon, the Federal government of the United States put non-essential government workers on furlough and suspended non-essential services from November 14 through November 19, 1995 and from December 16, 1995 to January 6, 1996 (see budget crisis). The major players were President Bill Clinton and the Speaker of the U.S. House of Representatives Newt Gingrich.

 
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