Bitter Bay Staters and health-care watchdogs are seeing red over yet another golden parachute from Blue Cross Blue Shield — this time, an $11 million kiss goodbye for a chief executive who oversaw staggering losses at the nonprofit before his abrupt resignation last year.
The state’s largest health insurer — with nearly 3 million members in the region — yesterday revealed the astonishing severance deal granted to former boss Cleve Killingsworth after he stepped down in March 2010 amid board fears about the company’s $149 million in losses.
His severance and bonus totalled $8.2 million in 2010. He also gets $1.8 million this year, and $925,000 next year, for a total of $10.9 million. Killingsworth’s deal was inked in 2005 as former CEO William Van Faasen was heading out the door with a then-controversial $16.7 million payout.
Killingsworth could not be reached for comment. Red-faced Blue Cross officials said the decision was out of their hands.
This arch-conservative, union busting, middle class hater thinks this guy should be strung up by his nut sack. And the people that made this ridiculous exit package possible should be right there with him.
Once again we see the “non-profit” scam in all its glory.
this time, an $11 million kiss goodbye for a chief executive who oversaw staggering losses at the nonprofit
It is a non-profit.
And as we know a profit number, even at for profit companies, tells us little about what kind of job a CEO has done. Offshoring, government handouts and book cooking seem to be some of the more popular ways to boost profits in the 21st century.
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Comment by ahansen
2011-03-02 10:15:25
“…Offshoring, government handouts and book cooking seem to be some of the more popular ways to boost profits in the 21st century….”
Or in this case, massive denials of service and unconscionable premium increases.
Comment by GrizzlyBear
2011-03-02 13:20:56
Speaking of medical costs, I just went to the dentist because a filling in my molar cracked off. I have no insurance. I was told I need a root canal, and then a crown. I’ve had one root canal in my life, and no crowns. The last root canal, seven years ago, cost me $350 cash. There was a cash discount. Now, this dentist (different) is quoting $1,000 for a root canal. I asked about a discount. They’d go 7% so it’s $930. Woohoo- pffffft.
Then there’s the crown. $1350. They’d also offer me a whopping 7% off that. So, $2200+ for one tooth, with no guarantees that it won’t decide to fall out. Or, I can go to Dr. Bloodletter down the road, who is busy tending to the sick and the poor, and get the tooth pulled for $100.
Comment by Arizona Slim
2011-03-02 13:38:56
The last root canal, seven years ago, cost me $350 cash. There was a cash discount. Now, this dentist (different) is quoting $1,000 for a root canal. I asked about a discount. They’d go 7% so it’s $930. Woohoo- pffffft.
I’d shop around if I were you.
Why? Because a lot of dentists are really hurting these days. More than a few went into cosmetic dentistry in a big way, and now that the housing ATM has shut down, they’re not getting the smile makeover crowd the way they used to. So, they have to drum up biz any way they can.
Also, it never hurts to get a second (or third) opinion. I did that a couple of years ago and sidestepped a $655 unnecessary procedure.
Comment by GrizzlyBear
2011-03-02 14:54:48
The problem with getting second and third opinions is they cost $75 each.
Comment by RioAmericanInBrasil
2011-03-02 15:26:05
The problem with getting second and third opinions is they cost $75 each.
Don’t go, call around. Some will give you price ranges. Tell them the exact tooth and procedures needed. Check out dental schools/clinics. Fly to Mexico.
Comment by Carl Morris
2011-03-03 09:22:39
Comfort Dental in Boulder is great for that kind of thing. Wife just had an emergency root canal that was cheap. I’ve heard that not all offices may be as good, though.
People who live in New York City should first focus on cleaning up the massive dung hill left behind by all the financial shenanigans in their own living room before concerning themselves about the financial affairs of all the little people who don’t live in New York City.
Bitter Bay Staters and health-care watchdogs are seeing red over yet another golden parachute from Blue Cross Blue Shield — this time, an $11 million kiss goodbye for a chief executive who oversaw staggering losses at the nonprofit before his abrupt resignation last year.
And what did this chief executive do to help improve the health of Bay Staters? My money is on little or nothing.
Which, IMHO, is why health insurance is nothing more than a protection racket. And a largely useless one at that.
It’s a NON-PROFIT. Wouldn’t $149 million in losses be considered a grand success?
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Comment by polly
2011-03-02 11:48:06
It is unsustainable for any length of time, so it is fine for an organization that has a large endowment and wants to spend it down to nothing (Gates Foundation), but is less than ideal for an organization that wants to provide services over an extended (unlimited?) period.
Nonprofit doesn’t describe the expected results of the organization, anyway. It is really a kind of short hand for “any profits may not be paid out to shareholders or other owners.” And they are required to only pay executives reasonable compensation, but reasonable is determined by figuring out what other people in similar positions make and…well…you can guess where that gets you.
Congrats. While I may not like your politics, I don’t like to see anyone treated like you were, assuming you’re a good person, which is questionable. LOL, just kidding. (I crack myself up)
Comment by scdave
2011-03-01 11:30:50
A depressing 36% had to take positions paying 20% less than the ones they lost ??
Paging Ca.renter…….
————————-
Oh, I’m well aware of it, scdave, and have a number of friends who’ve had to do just that. A couple of them have taken ~50% cuts.
I’m not saying that public compensation needs to stay at current levels, and have suggested on multiple occasions that it needs to be pared back.
What I have a problem with is the vilification of public employees, and the blame-shifting, as if unions had anything, whatsoever, to do with the financial crisis. They are NOT responsible for the crisis, and they are NOT responsible for anyone else losing their jobs or benefits. To the contrary, they are the only ones who have the power to fight against those who’ve destroyed our job base in the U.S.
Before we touch the public sector workers, we need to go after the ones who’ve destroyed our economy. Bankers first, then govt workers.
I think most public employees would be happy to go back to compensation levels seen in ~1995, but only if their purchasing power from 1995 could be restored as well. That means asset prices need to fall. Think the piggish capitalists who caused all our problems would be willing to take the same hit (to 1995 levels) as public sector workers? Not a chance, and that’s why has union workers so riled up.
He bough a railroad at what today is viewed as a very low price and it’s making more profit then even he figured it would…so he does have a skewed viewpoint.
On June 4, 1963, President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve (US Central Bank). Mr. Kennedy’s order gave the Treasury the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” This meant that for every ounce of silver in the U.S. Treasury’s vault, the government could introduce new money into circulation. As a result, more than $4 billion in United States Notes were brought into circulation in $2 and $5 denominations. $10 and $20 United States Notes were never circulated but were being printed by the Treasury Department when Kennedy was assassinated.
With the stroke of a pen, President Kennedy was on his way to putting the Federal Reserve Bank out of business. If enough of these silver certificates were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued.
I dont know about you guys but this good old boys club between the FED and WALL STREET is getting real old. They are running this country into the ground.
wikipedia
Jim Marrs, in his book Crossfire: The Plot That Killed Kennedy, speculated that the assassination of Kennedy might have been motivated by the issuance of Executive Order 11110.[47] The executive order, which was not officially repealed until the Ronald Reagan Administration, delegated to the Secretary of the Treasury the authority to authorize printing of additional silver certificates, up to a maximum limit previously set by Congress. Since the President himself already possessed the same authority, the order did not endanger the careers of anyone working at the Federal Reserve.[48]
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Comment by cobaltblue
2011-03-02 09:17:04
Hey great Alpha,
So now we know that:
It is a myth that Kennedy was assassinated. His family will be so comforted. Someone should alert the media.
It is a myth that Kennedy signed Executive Order 11110.
Must have been Jackie impersonating him.
Just a question, what conspiracy are you referring to?
Jim Marrs didn’t create my post, and I didn’t mention him, his book, or the word “conspiracy”.
Berkshire Hathaway has a $ 5 billion preferred stock investment with GS on which he only pays a 15% income tax rate…not to mention his investment in muni bond insurance.
it’s in his interest to be a mouthpiece for obama and the false recovery.
mr. buffet is a snake in the grass…but it’s ok cuz he donates alot of money.
Nobody thinks Elementary School teachers are villians. Get a grip. Some people simply think they should not be so spoiled as to stand on the shoulders of all their students’ parents. It’s just not sustainable.
I’ve spent the past week reading annual reports of my client companies and competitors. Good luck with getting more money from these Capitalists. They are generally all burning through their reserves, and hoping for a miracle while slashing and hacking away at their own treetrunk. Profits are not being made in the USA, they are being made elsewhere. Horse out of the barn indeed. China is going to save us all BS.
CA, I really feel for you on that 1995 wages are OK as long as somebody makes the cost of living go back to 1995 thing. The sythe that has cut back the wages of your neighbors will not likely negotiate with you on that. Teachers, of all people, should be literate enough to see the writing on the wall.
“Teachers, of all people, should be literate enough to see the writing on the wall.”
Yes. Let us be sensible and face reality. America is in need of money to meet its obligations, but that money is hard to come by, because we’re in a deep recession and most people aren’t making much money, and therefore tax revenue is down.
What’s that you say? There is one group of fellow Americans that is doing quite well? Better, in fact, than ever before in our history? Who is it?
The rich, of course. They’re richer than ever before. And paying lower taxes than at any time in our modern history.
Anybody see a sensible solution to our monetary crisis?
Alpha, I’d much rather have seen no bailout or breaks for the Wall Street gang. I’d rather have seen them looted, and their furniture sold on the sidewalk, their officers’ drawn and quartered, accounts siezed and their children sold into slavery. We could still do this.
There wouldn’t be enough though to even begin to pave over the gaping hole left by this gigantic orgy of debt and globalization that the whole stoopid country piled in on. I tried not to participate much, but I think the spreading around of the pain is pretty much a done deed.
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Comment by alpha-sloth
2011-03-02 10:50:11
On the contrary, simply removing the income cap on social security taxes would make them solvent at current retirement age for the foreseeable future.
And all we’d be asking is for the rich to pay the same rate as we already do.
They’d still be rich.
How’s that for shared sacrifice?
Comment by Blue Skye
2011-03-02 11:58:45
That would suit, but it doesn’t sound like as much fun and carnage as I was imagining.
Comment by mikey
2011-03-02 14:46:52
Wisconsin grassroots groups have announced movents to RECALL key Wisconsin robber Baron Senators that stand with King Walker, the Decider II .
The Chair of the Wisconsin Democratic Party and The Service Employee Union International(SEUI) have just signed on for the rumble.
Get out your checkbook Koch, the little People of Wisconsin aren’t Going Down without a Fight!!
Comment by mikey
2011-03-02 15:26:39
The small town meeting that I wrote about in Dodgeville, Wi on Monday night sure made an impression on supposedly Dale Schultz(R) as he mentions it in this radio interview about Walker and his Party over-reaching and leaving the opposition to pound sand.
WASHINGTON (MarketWatch) — Some manufacturers and retailers are finding that they can raise their prices, which is one key pre-condition for inflation to take hold, according to the Federal Reserve’s latest Beige Book survey of economic conditions released Wednesday.
But don’t worry the MSM is busy telling us that the oil price rise will not derail the recovery. BTW, I think drive to you can afford a house is going to be very difficult when you cannot afford the gas.
BTW, I think drive to you can afford a house is going to be very difficult when you cannot afford the gas.
Which is why nabes like this one will prove to be quite popular in the coming years. It’s close to Downtown Tucson. And to the University of Arizona.
Quite a few people live here because it’s possible to get along quite well without a car.
BTW, Slim’s not the only one in this camp. Far from it. There’s quite the bicycling contingent on my street. Including one guy who rides no-handed whilst playing his flute. And he’s a very nice fellow and a great musician.
That’s been the pattern around here, too. Inner-ring suburbs near downtown and the university haven’t dropped much in price, if at all. Even the crappier ones. (Downtown condos are dead though. Still way overpriced.)
Bernanke Signals No Rush to Tighten When Asset-Buying Ends
Bloomberg March 2, 2011
Federal Reserve Chairman Ben S. Bernanke signaled he’s in no rush to tighten credit after the Fed finishes an expansion of record monetary stimulus, seeing little inflation risk and still-slow job growth.
A surge in the prices of oil and other commodities probably won’t generate a lasting rise in inflation, Bernanke told lawmakers yesterday in semiannual testimony on monetary policy. A “sustained period of stronger job creation” is needed to ensure a solid recovery, and the Fed’s benchmark rate will stay low for an “extended period,” he said.
The comments suggest Bernanke will keep the Fed on course to complete $600 billion of Treasury purchases through June under the second round of so-called quantitative easing. He pledged to act if higher commodity prices persist, spurring inflation and increasing inflation expectations.
A husband to racks up gambling debts at the racetrack. Rather than reduce expenses by quitting the gambling, he beats his wife because she spends money on food for the kids.
A megabank loses lots of money of CDO swaps. Rather than discontinuing the CDO swap unit, the megabank takes it out of the hide of the depositors with higher fees and interest rates in it credit card unit.
A government spends money on reimbursing patients in an enhanced healthcare program which effectively enriches an unneeded middleman without improving actual care. The government realizes this and eliminates the middleman, returning to traditional care. The government is shellacked in the media and in the ensuing elections.
A state government lowers taxes on a corporation and racks up debt because of it. Rather than bringing taxes back to its historially sustainable level, the state blames the pensions of the middle class.
Thirty UPS drivers labor for a year. Scrimping and saving, they slowly build a $300,000 saving account. A man with a tan creates a loan for a 2-bedroom condo at $300,000 with one 3-second signature. The condo debt is backed by the government, who steps in when the buyer never makes a payment. The $300,000 in labor is worth no more than the $300,000 in the loan.
“A megabank loses lots of money of CDO swaps. Rather than discontinuing the CDO swap unit, the bank takes it out of the hide of the depositors with higher fees and interest rates in its credit card unit.”
True. But the depositors will willingly line up to sign up for these credit cards. The game keeps on going on for the megabanks because Joe6pack keeps on wanting to play. It is up to Joe6pack to stop his personal screwing by the megabanks - or by anyone else.
The collective screwing - which is what most of the rest of your post is about - well, that is a different matter. Joe6pack - and the rest of us - will have to address this collective problem collectively.
I believe that depositors line up to sign up for credit cards because the stores are raising prices to market rates. Market rates are going up… because depositors have credit cards. And around it goes. The bank isn’t built directly into this; the structure is already there,* like a potential spiral staircase of collective screwing. The bank merely provides the energy to for the buyers to climb the staircase ever upwards — and the bank simply takes a little cut at each go-round.
I’m feeling very metaphorical today…
————
*The structure is built out of people who want stuff, and stores who want profit.
“The $300,000 in labor is worth no more than the $300,000 in the loan.”
So very true. Saved money has no competitive advantage over credit. The great expansion of credit, with interest rates near zero, is an antifungal applied to our savings, making them worth less and less of their exchangable counterparts.
“Saved money has no competive advantage over credit.”
But it does have a competitive advantage over falling wages. And this is the envrionment we are now immersed up to our necks in, an environment of falling wages.
A penny saved is a penny earned and all that. Also, a penny not owed to someone else is equivilent to a penny earned.
Yeah, but now a penny defaulted-on is also a penny earned. That is what government guarantees and too big to fail have created.
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Comment by combotechie
2011-03-02 07:53:36
“Yeah, but now a penny defaulted-on is also a penny earned.”
True dat. But your operating word is the word “now”.
Now will not be forever. And what these defaulters are doing now may come back to bite them later. The larger this pool of defaulters grows the more profitable it will be to find ways to dip into this pool and extract some money.
A penny saved is a penny earned and all that. Also, a penny not owed to someone else is equivilent to a penny earned.
Yet another reason why I enjoy the HBB so much. The common sense about money and finance is something to behold.
Thank you, one and all!
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Comment by whyoung
2011-03-02 07:59:32
And a dollar not spent is more valuable than a dollar earned.
Comment by Blue Skye
2011-03-02 08:34:50
A silver dollar is worth more than the dollar saved in the bank.
Comment by Professor Bear
2011-03-02 08:40:48
“A silver dollar is worth more than the dollar saved in the bank.”
That is a good indicator for a future decrease in the silver content of ’silver dollars.’
Comment by liz pendens
2011-03-02 09:21:45
…And a freshly-printed fiat dollar just rolled off the FED printing press (not worth the paper its printed on) is worth the same as a dollar that has been saved for 100 years.
Comment by Professor Bear
2011-03-02 21:55:50
“…is worth the same as a dollar that has been saved for 100 years.”
Right. But the dollar saved for 100 years used to be worth maybe 33 times as much…
“A state government lowers taxes on a corporation and racks up debt because of it. Rather than bringing taxes back to its historially sustainable level, the state blames the pensions of the middle class.”
Exactly how little taxes do the Koch brothers pay in Wisconsin? And how large a campaign contribution did they provide Governor Walker?
Thirty UPS drivers labor for a year. Scrimping and saving, they slowly build a $300,000 saving account. A man with a tan creates a loan for a 2-bedroom condo at $300,000 with one 3-second signature.
The sweet, sweet nectar of the “Single-Deposit Transaction” can be very attractive addictive to the human “animal” senses.
President Barack Obama speaks about the monthly employment numbers flanked by Treasury Secretary Tim Geithner at Andrews Air Force Base in Maryland.
MANDEL NGAN / AFP / Getty Images
(WASHINGTON) — The Obama administration’s plan to gradually dissolve ailing housing giants Fannie Mae and Freddie Mac and to shrink the government’s role in the mortgage market drew praise from House Republicans on Tuesday. The GOP chairman of the House Financial Services Committee called the proposal a good starting point for bipartisan negotiations over a housing overhaul.
The positive reaction came as Treasury Secretary Timothy Geithner told the committee that the Obama administration wants Congress to approve legislation within two years that would slowly dismantle Fannie and Freddie. “Our hope is Congress will work with us to find a consensus for a long-term solution,” Geithner told the lawmakers. See pictures of Americans in their homes.
The positive words came at a hearing held three weeks after the Obama administration released a report calling for a stark reduction of the federal role in housing. The nation’s housing market has been battered in recent years by low home prices and vast numbers of foreclosures, and politicians from both parties want to find a way to have private lenders not the government bear more of the burden. “You don’t want to run a system where the taxpayer is on the hook when things go bad,” Geithner said.
Fannie and Freddie guarantee or own about half of all U.S. mortgages. Along with other federal agencies, they played a role in nearly 9 of 10 new mortgages over the past year, as private lenders have remained nervous about making new loans. The two companies nearly collapsed in 2008 as the housing market crumbled, but have been kept alive with $150 billion so far in taxpayer dollars.
As part of its plan for slowly eliminating Fannie and Freddie, the administration wants to lower the size of mortgages they can buy and raise the fees it charges proposals designed to help private lenders move back into the mortgage market. “The cost of a mortgage is going to be higher in the future,” Geithner said.
…
U.S. promises unlimited financial assistance to Fannie Mae, Freddie Mac
By Zachary A. Goldfarb
Washington Post Staff Writer
Friday, December 25, 2009
The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress.
Congress _should_ challenge this to prevent the encroachment on their mandate.
I wonder if the taxpayer has standing to sue the executive and take this to the supreme court?
Polly? I have a feeling there are laws exempting the executive branch from being on the receiving end of such a suit?
Comment by polly
2011-03-02 10:24:15
They don’t have to challenge it, if my challenge you mean go to court. All they have to do is forbid any money go to supporting F&F. It can be done by law. I’m not even sure that is needed. The president “pleding” anything is subject to the House appropriating the money. I don’t think there are that many billions unallocated in the budget at all.
Comment by polly
2011-03-02 10:25:49
Taxpayers never have standing to sue the government on the way revenue is spent. It is a long standing doctrine.
Taxpayers never have standing to sue the government on the way revenue is spent
Is this not a different issue, though? It’s not about allocation of funds by Congress. I’m not sure how one would even phrase it.
Who has standing to sue when the executive (or legislative, or judiciary) oversteps their constitutional authority?
Comment by polly
2011-03-02 11:58:25
The branch that they stepped on, I think. At least that is what the analysis has been on the recent administration decison about Defense of Marriage Act. The administration is still enforcing the law (not letting a federal employee married to a same sex partner in MA put said spouse on his or her health insurance) but said they wouldn’t defend the law in court if someone sued because they think it is unconstitutional. They said they are still enforcing so the legislature could take up the defense.
No idea how this would work with the judicial branch, though. If the Supreme court says it is Constitutional it is.
The Obama administration’s plan to gradually dissolve ailing housing giants Fannie Mae and Freddie Mac
Uh-oh, look out, Barack, because Slim’s puckering up and wants to kiss you. And Slim’s not a huggy-kissy kind of gal. (I’m more like a gila monster — just ask my neighbors.)
You can probably put away the lip gloss Slim. I’m guessing Fannie and Freddie will continue under a different name. There is no way the government will get out of housing.
How can he speak about the employment numbers? Aren’t they coming out on Friday?
Speaking of employment numbers, one of my least favorite prognosticators, the guy from Challenger, Grey and Christmas was on NPR again this morning. He said that the announcements for future layoffs was through the roof which is a far cry from his usual cheerleading. Seems that the state and local layoffs do have an effect on the numbers. He couldn’t seem to find a way to spin this one positive.
I’ll bet private sector workers are really gonna benefit from all the public sector cutbacks. Seems they think that cutting the spendable income of public sector employees (with ~90% of their money going directly back into their local communities) is going to make them rich!
Seems they think that cutting the spendable income of public sector employees (with ~90% of their money going directly back into their local communities) is going to make them rich!
Who ever asserted something so ridiculous?
Public sector cuts = reduction in taxes (or lack of raise in taxes) = private sector workers have a chance of keeping their heads above water.
Seriously, can we lay off the hyperbole and strawman arguments here?
Comment by GH
2011-03-03 00:12:52
I guess they need to write bad checks and demand banks honor them. After all these are “heroes” we are talking about!
Seriously though, I am out of the “union” fight. It is frankly ridiculous. I think Government workers are SO fantastic they deserve millions a minute and billions a year in pensions each, but given the economy continues its downward slide, that may be up to the Chinese government and not any of us here.
There are a lot of smart people visiting this blog. We need to figure out what can be done rather than what cannot be done to fix things.
Comment by CA renter
2011-03-03 04:44:36
drumminj,
Let’s just say that *expenses* (not taxes) would be lowered by 10%. Do you think workers’ taxes would be lowered by 10%, or do you think some other new campaign contributors (developers/builders/big box stores getting new credits or grants, etc.) might welcome themselves to that 10%? Look at what’s going on in WI. The Koch family wants to buy publicly owned assets for pennies on the dollar…NO BID!!! If the govt loses revenue from those assets, that cuts into the pie that you think you’re going to get a piece of.
What might end up happening is that taxes go UP for working stiffs as “favors” are doled out to large contributors, and it won’t necessarily be going back into your community, it could go to China, or into commodities, or RE somewhere else, etc.
I really think you underestimate what unions do. Even though it might be in their self-interest, unions DO watch out for “favors” being handed out to private entities. And because of their union status (protection), they’re able to do something about it.
Even though it might be in their self-interest, unions DO watch out for “favors” being handed out to private entities. And because of their union status (protection), they’re able to do something about it.
I think you’re painting with a *REALLY* broad brush here. Unions in and of themselves do no such thing. Certain union members might, but they would do it whether they’re union or not. I challenge you to prove the union is a factor at all.
And then we can look at all the things that public employees do that are BAD for the taxpayer, yet they’re protected by the unions.
No-bid contracts are bad. I’m not arguing against that. By if public employee compensation continues to rise, then taxes are certain to rise as well
ie I don’t see unions fighting to take the money from elsewhere in the system. If teachers unions were fighting to remove levels of administration to reduce costs, I’d be behind them 100%. Instead, they’re always out there, pushing for every bond measure “for the children”.
Good time for a re-post (sounds like Moody’s got it right for once):
Fannie and Freddie aren’t going anywhere
Slate
Feb 15 2011
Another way to think about the plan is that the administration has thrown down a gauntlet. The Republicans can pick it up or not. Probably they won’t. (There’s a reason the GOP isn’t protesting the plan.) The housing market looks right now as though it will head downward again. No politician wants to be blamed for that. And as HUD Secretary Shaun Donovan has pointed out, a plunging housing market would increase Fannie and Freddie’s losses, because the homes they sold would be worth less, and because more borrowers would default on their mortgages.
Another obstacle to quick action is that if the government were to make it clear, right now, that it wanted Fannie and Freddie’s business to shrink, then the rating agencies might downgrade Fannie and Freddie’s debt. That would immediately throw the housing market into a tailspin, because Fannie and Freddie would no longer be able to raise money to guarantee new mortgages. In a recent report, Moody’s said that even if “political consensus [began] building around a plausible scenario that diminishes [Fannie and Freddie's] importance,” the government would have to explicitly guarantee Fannie and Freddie’s debt in order to maintain their current triple-A rating. Doing so would add trillions to an already out-of-control national debt.
Given this unappetizing platter of options, the Obama administration and Congress are likely to do nothing. At the Brookings Institution, one questioner asked Geithner how he would answer the charge that “this is never going to happen.” Geithner began: “Well, I think that’s a good question.”
designed to help private lenders move back into the mortgage market. “The cost of a mortgage is going to be higher in the future,” Geithner said ??
a LOT higher….Did I say a LOT ?? Oh, What I really mean a LOT,LOT higher…Just wait until the pirates in the brick ships are making the only mortgage loans…..
WASHINGTON (Reuters) - The U.S. Treasury’s outgoing bailout watchdog took his last shot at the Obama administration’s program to keep Americans in their homes and questioned whether taxpayer funds should continue to be used for an ill-conceived housing plan.
There is “near universal agreement that the program failed to meet its goals” and the current debate centers “mostly on whether the program should be terminated, replaced or revamped,” said Neil Barofsky, the top government auditor for the $700 billion bank bailout fund, in prepared remarks to Congress.
Barofsky, who will leave as the Troubled Asset Relief Program’s Special Inspector General at the end of March, is due to testify before a Congressional housing subcommittee. His testimony was posted on the House Financial Services housing subcommittee’s website on Tuesday.
House Republicans are trying to kill the administration’s Home Affordable Modification Program (HAMP), which was designed to help provide permanent loan modifications for distressed homeowners.
The program provides cash incentives to mortgage servicing firms to lower monthly payments for borrowers to no more than 31 percent of their income. So far, it has only provided relief for 521,630 homeowners in the nearly two years of operation.
Treasury initially predicted that HAMP would help 3 million to 4 million at-risk homeowners avoid foreclosure.
“HAMP has been beset by problems from the outset and, despite frequent retooling, continues to fall woefully short of meeting its original expectations,” Barofsky said. “Treasury, it seems, stands alone in defending the status quo,” he said.
…
Among the many things that Republican congressmen and women have thrown on the chopping block in their efforts to bring down the national budget and get a handle on the national debt is the Obama administration’s much-maligned Home Affordable Modification Program (HAMP). The program was intended to help “as many as three to four million financially struggling homeowners avoid foreclosure by modifying loans,”[1] but in reality the program has led to only 521,630 permanent loan modifications, with many of these “permanent” modifications lapsing back into default[2]. Despite all this, however, U.S. Treasury Secretary Timothy Geithner came out swinging today in HAMP’s defense, saying that ending the program would “cause a huge amount of damage” and “I would recommend against it”[3].
Geithner also recently warned against “scaling back the federal role [in the housing market] too far”[4]. He claimed that it would make housing more costly and leave taxpayers “on the hook” for losses while handcuffing policymakers, adding that “you would leave the [U.S. government] with a more limited set of tools to protect the economy and innocent victims in the face of the next severe recession,” he said.
It sounds like Geithner does not have any real plans to exit this down economy. He’s already planning for the next disaster. Do you think that this is a good way to approach the housing market in general and the role of the federal government in the housing market in particular?
…
I am quite sure that federal support of home loans is essential to support the value of the Geithner homestead in NYC. I’m far less convinced it does much for Main Street America in flyover country, aside from sucking away their wealth to help coastal residents purchase homes that cost north of $500,000.
And so far as putting taxpayers on the hook for losses, whose bright idea was it in the first place to summarily slap federal guarantees on so many mortgages in the wake of the Fall 2008 financial collapse? “Privatize profits, socialize losses” continues as the modus operandi, not to mention protection of “innocent victims” of their own stupidity.
Treasury Secretary Timothy F. Geithner used his strongest language yet to warn on Tuesday about the dangers of a mortgage system that does not include a significant role for the government.
Two weeks after releasing a white paper on how to overhaul the badly battered housing market, Geithner said scaling back the federal role too far could make housing more costly, keep taxpayers on the hook for losses and handcuff policymakers.
“You would leave the government of the United States with a more limited set of tools to protect the economy and innocent victims in the face of the next severe recession,” he said in testimony to the House Financial Services Committee.
…
The ONLY innocent victim in this entire mess is the taxpayer.
Yes, handcuff policymakers and their banking buddies too. Yes, I am talking about you Timmy!
makes you really happy to be sending the govt a check? the IRS was created so the govt could pay interest on the money it borrows from the FEDERAL RESERVE.
So when the FED pisses away your money on wall street crooks how do you feel?
You would think the Republicans would catch on to it, and challenge Mr Know-it-all Non-economist in his assertion that federal subsidies are necessary for the U.S. to have a functioning housing market. The evidence suggests that many other countries with less subsidized housing markets have far healthier housing markets than America has.
But a good propagandist never lets the facts stand in the way of his message.
The evidence suggests that many other countries with less subsidized housing markets have far healthier housing markets than America has.
Remember nhz, the HBB-er from the Netherlands? He/she went on at great length about how government policy in that country propped house prices up at unaffordable levels.
Prof, it is odd to see you consider the well being of the taxpayers. Why do you hate “homeowners” so badly?
The government will not get out of house lending. There is too much money and power to be had. It will morph into something else such as The Department of Homeland Homes.
Please teach me how to come up with those coherent arguments like yours.
My argument is that the government, once in something, will never get out of it. Not unless there is no other way possible. That story ties into other stories, some of which you have been incredibly intransigent on. It seems that you pick and choose when to have certain beliefs.
As somebody that believes in big government I am shocked that you wouldn’t want them in housing.
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Comment by Professor Bear
2011-03-02 07:35:54
The articles I post are generally not meant to represent my beliefs. They are merely intended to stimulate discussion. I do my best to post as many articles as possible that challenge the entrenched bigotry on display in others’ posts.
Comment by NYCityBoy
2011-03-02 07:37:52
Wow. Is that a shot? I’m sure you don’t have any bigotry at all.
Comment by Professor Bear
2011-03-02 07:51:59
I don’t. I am above bigotry…
mostly.
Comment by Blue Skye
2011-03-02 08:11:20
But alas, not above personal attack.
Comment by Professor Bear
2011-03-02 08:39:32
Nobody is perfect; particularly, I am not perfect.
perhaps then you shouldn’t be telling people to refrain from personal attacks if you yourself aren’t willing to do the same.
Comment by exeter
2011-03-02 17:48:24
Pot meet kettle.
Comment by CA renter
2011-03-02 18:42:15
PB is one of the most insightful and educated posters here. I’ve never seen him make personal attacks unless someone asks for it, and usually they’ve asked for it multiple times.
I’ve never seen him make personal attacks unless someone asks for it, and usually they’ve asked for it multiple times.
I see…so he only does it when you think someone’s “asked for it”, so it’s okay?
Others seem capable of remaining respectful even when individuals here “ask for it”. But that’s too much to ask of “one of the most insightful and educated posters” here. Got it.
Comment by CA renter
2011-03-03 04:52:39
When I say they “ask for it,” it’s because they’ve made personal attacks first.
It’s fine to disagree, but too many people are intentionally offensive, and that degrades the quality of conversation we can have here.
Does he know something we don’t know? Like maybe the cuts in government workers are the next leg down.
Note: I am not a government worker, but see the possibility of being impacted by the reduction in spending triggered by this round of layoffs. And I don’t foresee private companies picking up the slack and hiring these folks.
Happy2bHeard …..I was thinking about your point the other day .
At least the government sector workers are spending money and
putting more money directly into our economy with their incomes
(that just happened to keep up with inflation better than the private sector ). Services go down in firing a bunch of public workers ,but also
their spending dollars don’t go into the economy . What sector is going to hold up the economy and tax base …..Health care (?)…no way .
Do you think the Billionaires are going to be adding to the public coffers (taxes ) or directing capital to private sector workers or
investing in America with new manufacturing plants with good wages
to people who actually spend it in the economy . Also the more people who are on food stamps or need taxpayer paid health care
represent more drain on the public coffers ,The classic Republican solution for the needy is that private voluntary charity can take care of it .Sure bet ,as if enough could be raised privately ,especially in a recession .
The manufacturing jobs we lose and the outsourced jobs we lose
and all the income flow and taxes that would go to our Society is lost ,and we are not compensated for that damage from the billionaires because Government is giving them the tax breaks .
There once was a time in America when Industry contributed to the overall cash flow to our economy and tax coffers ,but now
they are just a blood-sucking drain on it . Just as the casinos of
Wall Street with their Ponzi-schemes became a blood-sucking drain
on our Society by the big black hole of losses they created .Industry dumped and betrayed America many moons ago ,and they keep on
wanting to raid the coffers now . Once a thief ,always a thief is my motto .
And as Warren Buffet looks to do some more of his Corporate raids to make a extra buck ,while I don’t see him investing in new manufacturing plants ,I view him as one of the parasites of Society now .At least he was honest enough to say once in essence that the Government should tax him .
I don’t mind supporting business at all if business is giving back to the Society in the form of good jobs ,benefits ,and wages and paying taxes and making all the cash flow as it should . However when Industry just becomes the takers and no-give back ,as well
as the Ponzi-schemers and mis-directions of funds Masters of the Universe and bubble creators ,as if the government and the people are their personal pawns ,as if they don’t owe anything to the Society that gave them their start to begin with and support them with government services ,than the line has been crossed with me .IMHO ,you clean up these guys ,make them pay their proper share and all other problems get solved easier , This taking from one sector to prop
up another sector is just thief and a destroying of the “Balance “,the Balance that allows for a actual middle-class with a somewhat decent standard of living . I want the looted money back ,I want tax share corrected ,and I want jail sentences and reform of
the Wall Street casino . Don’t talk to me about taking it out of the hide of teachers ,talk to me about why the private sector is being reduced to slave wage workers with no benefits by the monopoly power of Industry today . Talk to me about them paying their obligations and liabilities first . Just get the ill-got,stacked deck gains back and that will pay for the short-falls .
Just my 2 cents ……it can be attacked no other way .
Comment: As long as our economic policy is steered by propaganda rather than principles of fairness, I doubt the Fed-managed long-term downtrend in American competitiveness will end. Keep up the good work, guys!
“Federal support for home loans essential, Geithner warns”
Why should federal housing policy systematically discriminate in favor of home owners and against renters?
Can you tell me one thing that has changed to warrant an economic recovery besides the FED catering to wall street by creating more money?
Is all that money they printed suppose to make it down to the serfs or wage slaves?
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Comment by Professor Bear
2011-03-02 07:14:27
I guess you never heard of trickle-down economics — the kind Ronald Reagan put into force to start the trend towards the largest gap between rich and poor in America since the Great Depression?
Comment by NYCityBoy
2011-03-02 07:30:21
What about the trickle down belief that if you pay government employees high salaries it is good for the economy because it will trickle back to the taxpayer?
Comment by Professor Bear
2011-03-02 07:43:43
“What about the trickle down belief that if you pay government employees high salaries it is good for the economy because it will trickle back to the taxpayer?”
That hypothesis is currently being tested at the state level in California, and may soon get a repeat of the federal-level test that was conducted in 1995.
My guess is that with lower government paychecks, the economy is more likely to go into a double-dip recession, and housing prices in DC are likely to fall by more-than-expected as a consequence, but I don’t have a crystal ball that lets me say this with absolute certainty.
U.S. Sen. Debbie Stabenow wants members of Congress to forfeit their pay if the federal government shuts down over a budget impasse.
The Michigan Democrat said she’s sponsoring legislation to stop lawmakers’ paychecks if there’s no deal to keep the government running by Friday.
“If there is a government shutdown, it’s very important that lawmakers be held accountable and members of Congress see their paychecks stopped along with everyone else who is affected,” Stabenow said by statewide conference call Tuesday.
A shutdown, while it wouldn’t affect all government operations, would stop the paychecks of hundreds of thousands of federal workers, including those of her staff and other staff in Congress, the senator said.
“Members of Congress have special treatment,” Stabenow said. “If we were shut down, paychecks would stop. It’s not right; it’s not fair that members of Congress are exempt from that happening.
“Lawmakers should be held accountable and feel the same impact under a government shutdown,” she said.
…
Comment by arizonadude
2011-03-02 07:45:46
So the serfs continue to be debt slaves after a couple crumbs trickle down to them?
Comment by ecofeco
2011-03-02 16:40:35
Belief? Our economy is ~70% consumer driven.
That’s not a belief. It’s a fact. And has been for decades.
I’m tired of this all-or-nothing crap. The answer is in the middle. The answer is ALWAYS in the middle.
Federal support for home loans for first-time buyers with a stable job who intend to live in the house is essential. This one actually favors renters by helping to lift renters out of renting.
Federal support for home loans for second and third homes for buyers who are already a few rungs up the property ladder and can afford it just fine by themselves is asking for a financial meltdown.
Federal support for home loans for homebuyers of any stripe for $700K crapshacks in Bakersville is what can be read off the price tag on the suit of a corrupt politician.
Federal support for home loans which were bought sight unseen from private entities who originated the loans without due diligence or risk holding or seasoning is more effective in destroying a country than any plot dreamed up by a bunch of airline pilots from the Middle East.
“Federal support for home loans for first-time buyers with a stable job who intend to live in the house is essential.”
That is what Fannie Mae and Freddie Mac were supposed to do. Unfortunately, the federal subsidies reflecting in their and other
programs to make homes more affordable stimulated demand to the point where first-time buyers could not afford to purchase a home.
Why is it that you think it is essential for the government to run programs to make housing unaffordable to first-time buyers?
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Comment by oxide
2011-03-02 07:44:20
Excuse me, I wasn’t advocating for “federal subsidies in this and other programs,” okay? Your assumption that I support *every* government program is precisely what what I mean by an all-or-nothing mentality.
I was saying that this ONE program is essential to lift some renters* out of rentership. Presumably their numbers, compared to the overall housing market, is too few to drive prices into a bubble. FHA did it for years without causing a bubble. It was only when the sheer masses got involved with all those “other programs”** that the SHTF.
—————
*How many renters have a stable job, a 3% down payment, and intend to live in the primary house? Maybe one fifth of the ~30% who rent?
**Low interest rates (thanks Maestro), MID, tax breaks on profit from selling (flip me!), implied guarantee on crap loans (which removed down payment safety net and promoted mortgage-by-FICO alone), loans up to $417K (too high), banks allowed to lend on 30:1 leverage on reserves, and other programs and deregulatory failures.
Comment by Professor Bear
2011-03-02 07:55:25
“Your assumption that I support *every* government program is precisely what what I mean by an all-or-nothing mentality.”
I never said you support *every* government program, just that you think the first-time home buyer market should be subsidized; this doesn’t seem fair to non-first-time buyers.
Why do you advocate discriminatory housing policy?
Comment by oxide
2011-03-02 08:02:30
Presumably because the non-first time buyers were first-time buyers themselves at one point, and they availed themselves of the government program back then? Everybody gets the benefit, once. That’s not discriminatory, no?
Comment by Blue Skye
2011-03-02 08:14:31
I don’t want to be “lifted out of renting”. Keep your meat hooks away from me.
Comment by Hwy50ina49Dodge
2011-03-02 10:46:03
Why is it that Hwy50 thinks it is essential for the government to run programs offer homesteading to make housing unaffordable land available to first-time landowners?
Comment by Montana
2011-03-02 14:34:26
There is a loan program that is pretty discriminating - the VA. The catch is you have put your convenience, comfort and personal safety at risk in order to qualify.
That setup seemed to work well enough before.
Comment by CA renter
2011-03-02 20:54:47
I have to agree with oxide on this one. The key is to not overwhelm the market, so there needs to be an annual cap on the number of people who can qualify for the program. It also needs to have very strict underwriting qualifications.
We are all better served if more people can become homeowners of **affordable** homes, rather than having landlords make profits on the backs of poor people.
We are all better served if more people can become homeowners of **affordable** homes
How is a homeowner innately better than a renter? Are you suggesting only poor people rent? Or that landlords don’t provide a valuable service to the renters?
Comment by CA renter
2011-03-03 05:01:18
I’m suggesting that, in general, and under normal circumstances, owner-occupiers take better care of their homes. They also tend to be more invested in their communities.
Also, I feel it’s important to have a paid-off house before retirement. Renters can’t do that.
Right now, we are helping to support my MIL’s 90-year-old companion, as he has run out of funds. He’s a renter, and rents have risen significantly over the past few decades. If he had owned a house and paid it off a couple of decades ago, he would be in a very different position.
There is nothing worse than having to watch a WWII veteran — who has long prided himself on his ability to take care of everything — sink into poverty and have to rely on friends and family just for basic needs. It sucks.
“Federal support for home loans for second and third homes for buyers who are already a few rungs up the property ladder and can afford it just fine by themselves is asking for a financial meltdown.
Federal support for home loans for homebuyers of any stripe for $700K crapshacks in Bakersville is what can be read off the price tag on the suit of a corrupt politician.
Federal support for home loans which were bought sight unseen from private entities who originated the loans without due diligence or risk holding or seasoning is more effective in destroying a country than any plot dreamed up by a bunch of airline pilots from the Middle East.”
So far as I am aware, none of the crap that went on before the bubble collapsed has ever been given a public hearing to clear the air. Why am I skeptical that the newfangled housing solution will look a lot like the oldfangled housing market disaster recipe?
Q: Where on the highway do you find dead ‘possums?
And for the last few decades, that’s were you’ve also found most dead (defeated) politicians.
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Comment by Steve J
2011-03-02 09:39:21
The middle of the road is for yellow lines and dead armadillos. - Jim Hightower
Other great quotes from Jim Hightower:
Politics isn’t about left versus right; it’s about top versus bottom.
The corporations don’t have to lobby the government anymore. They are the government.
The issue isn’t just jobs. Even slaves had jobs. The issue is wages
But the good news is that out in the countryside, just about every place that’s got a zip code has somebody or some group of people battling the economic and political exclusion that Wall Street and Washington are shoving down our throats.
-Jim Hightower
Comment by Hwy50ina49Dodge
2011-03-02 10:33:52
Jim Hightower
“George W. Shrub was born on third, but thinks he hit a triple…”
Comment by pressboardbox
2011-03-02 11:34:49
“George W. Shrub was born on third, but thinks he hit a triple…”
“Fairness” sounds a whole lot like socialism, does it not?
Good lord please help my country.
You know Americans have being played hard by the corporate fascist PR machine when teachers are now the villains, speaking out against banana-republic wealth distribution is commie and “Fairness sounds a whole lot like socialism”.
fair definition: (thefreedictionary dot com) a. Having or exhibiting a disposition that is free of favoritism or bias; impartial: a fair mediator.
b. Just to all parties; equitable: a compromise that is fair to both factions.
7. Being in accordance with relative merit or significance: She wanted to receive her fair share of the proceeds.
8. Consistent with rules, logic, or ethics: a fair tactic.
are you suggesting that many in the states (let alone on this board) think that a progressive income tax system is “fair”? That wealth redistribution (whether up or down) is “fair”.
“Fair” is very subjective. And in today’s political climate, I think it’s reasonable to suggest/assume that “fair” would mean higher taxes on the “rich” (note, not those who make their money via stock option grants and dividends, but wage earners making > $100k) and greater benefits for the “poor” paid for by others.
Is that not socialistic? I know you’ve been present on this blog the past few months. When people use the term “fair” here they most certainly don’t mean “free of favoritism or bias”.
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Comment by RioAmericanInBrasil
2011-03-02 10:06:41
are you suggesting that many in the states (let alone on this board) think that a progressive income tax system is “fair”? That wealth redistribution (whether up or down) is “fair”.
I am suggesting you pull you head out of your , sand as to what most real American’s think is fair.
Americans Want Wealth Spread More Evenly, Even the Wealthy
The gap between the richest and poorest Americans is at historic highs, with estimates suggesting that the top 1% of Americans hold nearly 50% of the wealth, topping even the distance before the Great Depression in the 1920s….
….Do Americans know what the gap is and is it what they want?
A survey from the psychology journal Perspectives of Psychological Science concluded that Americans desire a more equal distribution of wealth, and dramatically underestimate the current gap. Perhaps surprisingly, this was true for Americans at all wealth levels and among those who voted for George Bush over John Kerry.
…In the survey, respondents viewed three unlabeled pie charts, one showing a perfectly equal distribution of wealth, another reflecting the status quo nationally, and a third that fell in-between, based on Sweden. When asked which nation they would choose to live in, assuming that they would be randomly assigned their place, 92% preferred the pie chart based on Sweden, including 90.6% of men, 90.2% of Bush voters and 89% of those with income of more than $100,000.
Slightly more Americans preferred the Swedish model than a perfectly even distribution.
In two other tasks, respondents were asked to create a pie chart reflecting the United States and another pie chart on how the United States should look. The group believed that the top 20% held about 59% of the wealth—underestimating the actual figure of 84%. In their ideal distribution, they assigned 32% to the top 20%. Men, Bush voters and those with incomes of more than $100,000 all created an ideal pie chart that was more equal than their estimate of the American status quo, which was also much more equal than a true chart.
A large nationally representative sample of Americans seems to prefer to live in a country more like Sweden than like the United States,” …
…Why then is there so much disagreement over taxes and other issues related to wealth equality?
Ariely and Norton suggest that people may have “overly optimistic beliefs about opportunities for social mobility in the United States,” related to their ignorance about the actual wealth distribution. They also suggest that disagreements about the causes of inequality seem to drown out the consensus that the inequality is undesirable.
Comment by RioAmericanInBrasil
2011-03-02 10:15:09
are you suggesting that many in the states (let alone on this board) think that a progressive income tax system is “fair”?
Yes, but only because I can read.
Most Americans Say Tax The Rich To Balance The Budget: Poll Reuters 1/3/11
….NEW YORK: Most Americans think the United States should raise taxes for the rich to balance the budget, according to a 60 Minutes/Vanity Fair poll released on Monday.
….Sixty-one percent of Americans polled would rather see taxes for the wealthy increased as a first step to tackling the deficit, the poll showed.
The next most popular way — chosen by 20 percent — was to cut defense spending.
Comment by RioAmericanInBrasil
2011-03-02 10:30:22
Some American’s views on “wealth re-distribution”
Americans Support Extending Tax Cuts, But Not For Wealthiest Americans
Gallup Outsidethebeltway dot com
Majority support expiring Bush tax cuts for wealthy
CNN/Opinion Research/Society for Human Resource Management and National Journal Congressional Connection
Poll: Most Tea Party Supporters Say Their Taxes Are Fair
cbsnews dot com
Most Americans Say Tax The Rich To Balance The Budget: Poll
Reuters dot com
Gallup poll finds majority favor ending tax cuts for the rich
thehill dot com
Given our newfound understanding, let’s get back to the term “fair”.
Are you suggesting that wealth re-distribution is “fair” by your definitions posted above?
I would most certainly argue that is not the case. It is not equitable nor without bias.
Comment by polly
2011-03-02 14:26:19
It can be if you consider the benefit the wealthy person receives. If you had an extraordinary amount of wealth, how much would you pay to keep in place the social constructs (public safety, courts, tranportation systems, public education of the people who will eventually become your employees, etc.) that allow you to earn and keep your wealth and your life? Quite a bit, I expect.
And if you had nothing? Well then you might want all those things, but you wouldn’t be able to pay anything for them, because you have nothing to give.
Comment by RioAmericanInBrasil
2011-03-02 14:47:37
Are you suggesting that wealth re-distribution is “fair” by your definitions posted above?
Are you suggesting that wealth re-distribution is “fair” by your definitions posted above?
Yes, It is fair and equitable for the rich to pay much higher taxes because they benefit more from the system than do poorer people. That they are lucky or “work harder” does not negate the fact that they extract more wealth out a system that needs paying for than do poorer people. Plus the super-rich do not really work harder than a teacher or plumber and much of their wealth was re-distributed from the middle-class. This is why the wealth gap is most extreme now since the Great Depression. See article snip below.
The second reason progressive taxes are fair is because it is just. Part of the definition of justice involves the concept of equitableness and righting wrongs. Middle class and poor have not gotten a fair shake the past 40 years as compared to the rich. Therefore even if one is prone to think progressive taxes are “unfair” in general, recognizing the concepts of justice and equitableness one would come the conclusion that progressive taxation is definitely fair at this point of American History.
Progressive tax is the fair solution
chicagotribune dot com
…This is not to say that people don’t deserve to keep what they earn. The key word is “earn.” Over the past 30 years, according to IRS data, the richest 1 percent has TRIPLED their share of America’s total income, AFTER TAXES, while the bottom 90 percent has seen their share drop over 20 percent. If this had not happened, the average middle-class family would be making $45,000 a year instead of $35,000.
The tripling of income by the wealthy is the result of money-transferring financial strategies, government deregulation, and tax cuts — NOT because they worked three times harder than everyone else.
@Rio - you make a lot of leaps of logic in your argument there.
Let me summarize your point as far as I see it:
1) “fair” is paying taxes based on how much one benefits measured in terms of “wealth extraction”. It is completely disconnected from use or benefit of the things actually paid for by the taxes.
2) “fair” is getting paid based on how hard you work, not based on how valuable a service you provide, how efficient you are, or the cost to replace you.
3) “fair” is having a totally uninvolved individual being punished (taxed) for wrongs done to a second, unrelated party, by a third, also unrelated party.
Your comments absolutely support my assertion that “fair”, as proposed = socialistic. And your argument does nothing to support progressive taxation. You talk only about the top 1% - the “super-rich” as you call them. Progressive taxation affects everyone. If you want to say progressive taxation is “fair”, then you need to stop focusing on the top 1% and tell me why it is fair that *I*, an individual who makes > $100k a year, should pay for the government services (and cut a check in addition) to other, unrelated parties.
Comment by RioAmericanInBrasil
2011-03-02 15:53:32
And your argument does nothing to support progressive taxation. drumminj
Of course it does. And along with the other posters, it does a fine job supporting progressive taxation. Just not to those who don’t listen to reason.
As I’ve told you in the past drumminj. What your opinion on the matter is of not much concern to me because it comes from an inflexible ideology. From the many polls, studies and articles I’ve posted today and in the past, it is clear that the majority of Americans think as I do, that in fact, progressive taxation is “fair”. Now that’s a fact.
And, I’m sure after reading everyone’s both sides arguments today more people on the fence will have come to that same opinion held by the majority of Americans that progressive taxation is fair and just.
If you’re going to attack me directly, don’t pussy-foot around it. Man up and quit with the passive aggressiveness.
it is clear that the majority of Americans think as I do, that in fact, progressive taxation is “fair”. Now that’s a fact.
And there it is. To you, “fair” is not something objective. It is subject to the whims of the populace. I suppose you would then argue that oppression of a minority population is “fair”, as the majority of the population would think so?
And, I’m sure after reading everyone’s both sides arguments today more people on the fence will have come to that same opinion
Yes. Pat yourself on the back. People think “fair” is whatever is in their best interest.
Notice how you haven’t directly addressed a single issue I’ve raised? To you, my ideology is “inflexible”, and that’s a flaw because you can’t change the subject and make yourself “right”. I actually want you to discuss the facts at hand, and you’ve clearly shown you’re unwilling to do so.
Comment by RioAmericanInBrasil
2011-03-02 16:39:01
If you’re going to attack me directly, don’t pussy-foot around it. Man up
Not attack, fact. I said you don’t listen to reason. It’s my opinion. Is that a big deal? No because you don’t. If you think it’s pussy-footing around I can step it up easily but you’re the one always complaining about attacks.
Notice how you haven’t directly addressed a single issue I’ve raised? To you, my ideology is “inflexible”, and that’s a flaw because you can’t change the subject and make yourself “right”. I actually want you to discuss the facts at hand, and you’ve clearly shown you’re unwilling to do so.
One can’t address issues with you. Because you don’t address the addressing in a logical manner. I’ve posted articles, studies, poll after poll, my opinion, my take, my counter to your points. It’s enough today. One can only put their side out there to compete with yours and let others decide who makes the best points.
Comment by ecofeco
2011-03-02 16:54:28
The wealthy increased their income by over 300% over the last 30 years.
J6P saw his DECREASE.
But the wealthy are paying less taxes in their tax bracket than at any time during the last 70 years.
The wealthy paying less than any time in the past 70 years isn’t relevant to any “fairness” on it’s own. Fair is presumably a function of how much one pays vs another. Comparing a single entity/group against itself 70 years ago doesn’t really allow for any evaluation of “fair”.
In this context, I don’t care who’s income increased and who’s decreased. The “why” of which direction it went (or didn’t) is certainly relevant.
If you go back and look at my initial comment, I was questioning the whole concept of trying to evaluate or base anything on the concept of “fairness”, and instead deferring to the rule of law and constitutionally-protected rights.
Comment by alpha-sloth
2011-03-02 20:40:13
” I was questioning the whole concept of trying to evaluate or base anything on the concept of “fairness”, and instead deferring to the rule of law and constitutionally-protected rights.”
If ‘fair’ doesn’t matter, why are you always bitching about how unfair it is that you have to pay taxes that might benefit others?
It’s precisely the ‘rule of law’ that says you have to pay taxes, including graduated income taxes. There’s no ‘Constitutionally-protected right’ that says you don’t have to pay taxes. Quite the opposite.
It’s precisely the ‘rule of law’ that says you have to pay taxes, including graduated income taxes. There’s no ‘Constitutionally-protected right’ that says you don’t have to pay taxes. Quite the opposite.
I agree. It is the “rule of law” that says I have to pay taxes. I would, however, make 2 arguments.
1) all rights not specifically granted the federal government in the constitution are my “Constitutionally-protected” rights, not just those specifically spelled out in the Bill of Rights
2) I would argue that a progressive income tax, or arguably any income tax, is unconstitutional. I don’t expect you (or many others, or even the supreme court) to agree with that outlook, but you asked why I bitch about taxes (and of course twisted my position into being against my taxes “benefitting others”…can’t even resist misrepresenting my position in the slightest)
Comment by CA renter
2011-03-03 00:07:37
In this context, I don’t care who’s income increased and who’s decreased. The “why” of which direction it went (or didn’t) is certainly relevant.
——————–
I can answer that one.
The reason for the growing wealth disparity is largely due to the credit bubble, which has pushed asset prices higher relative to wages over the past few decades. Wage earners have seen their purchasing power decrease, while the wealthy (asset holders) have seen their purchasing power increase.
Add to that the “tax cuts for the rich” which accelerates the compounding of wealth, and we get the wealth disparity.
Looking forward to addressing this in tomorrow’s Bits Bucket.
You are right. Follow the rule of law, as embodied in the Constitution, and we are good. I would submit the framers used fairness as a guiding principle, but the meaning of the word was badly distorted by the Communists (E.g. “All animals are created equal, but some animals are more equal than others.”)
It’s not fair to make the rich pay more taxes ,is the notion . It’s
a commie plot ,a redistribution of the wealth downwards ,the elite propose .It’s a violation of capitalism the elite would like you to think , its discrimination ,we deserve our profits .
The truth is that the billionaires would be nothing without the collective buying power of the middle/upper middle class . The rich would be nothing without the collective worker production of the products they like to sell . The rich take a piece ,or get a little piece of production from a whole lot of little bees in the Grand bee-hive ,and than they get a little piece of the money back when that same bee in the bee-hive buys the product.
So ,tell me what is fair about getting a little piece from millions .
They get the opportunity to get a little piece of money and production from millions ,adding up to billions for them ,and the little people get to work ,so they can give the money back to them when they buy their products ,and the bees than give the rest to taxes .
This is not a math equation of fairness . The worker gets a little salary from them and they give half it back to buy their junk ,and the worker collectively gets to give 20 to 40% back to taxes and the rich get to avoid the taxes and the opportunity to
get a little piece of millions ,that they get part of it back anyway when they buy the product .
The elite look at the collective bee-hive and the government
coffers as something that they are entitled to have a higher piece of that collective millions in production and a higher collective piece of the money back when they buy the product .
When the elites price of doing business goes up ,they get to collectively pass the increase to the collective beehive ,and if they don’t raise wages the collective bee-hive gets to have less
and the elite get to even get more of a piece of the collective millions .
The opportunity to get a piece of the collective millions of bees
couldn’t be said to be exactly fair especially when seen in light of the fact that the worker actually produces the stuff and than gives it back again when they buy the product .
Really ,this is the Capitalist Creed . We should be able to get
a piece of all the millions in the collective bee-hive ,they should pay the taxes on the merger piece of wage we give them ,and than we should be able to get the money back when they buy the products ,that they actually produced and government
shouldn’t be taxing us on the collective billions we get ,tax the worker on the merger piece of wage we give them ,that they have to give back to us anyway when they buy the product .
If you want to talk about value to Society ,who has the most collective value ,the collective bee-hive ,or the fat cat bees that are just arranging how much of a piece they get from the collective .
But if you just want to look at it terms of stupidity ,if the fat cat bees get to much of the collective production and that little piece of the collective bee hive of millions and millions of bees ,than the bees won’t have any money and they won’t be able to in a collective buy the stupid product that the collective produces anyway . If the government doesn’t get the rich piece of taxes from the profits that went to the fat cats ,than the government can’t function ,and more and more can’t get funds from the collective bee hive either . Th beehive puts the money back into the economy ,and the elite get to horde the money and than they pay Politicians some of it to get more of the collective piece of the collective pie ,including the collective taxes .
Now it really gets complicated when the fat cat bees want to
take the production of the product to other foreign bee-hives
and have them product the product , or they outsource the labor . That means the collective bee-hive pays for the product ,but they don’t get the wages,and the money/wages goes to the foreign wage place ,and the taxes collectively don’t go to this bee-hive .
So ,what is fair ? Capitalism is a concept of incentive production
in a free market ,with supply and demand being the regulator .with monopoly busting and regulations being necessary to keep it in balance . Is capitalism the concept of how to get more collective pieces of the bee-hive in the hands of the fat cats at the expense of even the bee hive functioning ?
If you didn’t tax to make for a collective balance ,the collective
wealth and collective taxes just ends up in the hands of the few
fat cat bees ,and people buying another Mansion won’t make
our economy tick . Maybe the collective fat cat bees can sell mansions to each other while all other sectors go down the tubes .
So ,its not a commie plot ,nor is it a unfair plot to want
proper distribution in the collective bee-hive .It doesn’t take away bees right to make more or move up in the wage chain or become a fat cat bee themselves and have the opportunity to
take a piece from many of the collective bees .
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Comment by Professor Bear
2011-03-02 21:53:56
“It’s not fair to make the rich pay more taxes ,is the notion . It’s a commie plot ,a redistribution of the wealth downwards ,the elite propose .It’s a violation of capitalism the elite would like you to think , its discrimination ,we deserve our profits .”
On the other hand, like the ’straw in the milk shake’ analogy used to describe stealing oil wealth from your neighbor in the movie There Will Be Blood, the Fed’s printing press sucks wealth out of the dollar holdings and fixed dollar obligations of non-indexed pensions and Treasury bonds and into the hands of whomever is well-positioned to catch the helicopter drops of newly-created liquidity.
Comment by Housing Wizard
2011-03-02 23:29:05
For instance taxpayers give the oil industry 40 billion a decade
in subsidies per decade when their net profit is over a trillion
What’s fair about that ,along with all the other way in with the fat cats avoid taxes . What is fair about that welfare to the rich ?
The mortgage deduction helps the higher classes more than the
middle and lower class . The poor would be cutting into their food money if they paid more taxes ,its enough that they pay all the sales taxes and other hidden taxes in terms of where their money has to go for min. survival .
It’s evident that the Fat Cats want to take more from the teachers and the government worker sector now . The fat Cats don’t want it to be clear that they are the greatest
beneficiaries of the “System “.
Really when the health care industry wants to take 25% of the average workers salary per month and the housing industry wants to take over 50% ,and the food industry wants to take
a higher percentage ,and the rich want to shift the tax
burden to the middle class and poor ,and just take more ,whats fair about that ?
It cracks me up how the rich think they are just going to
make hay on the emerging markets . They are not going to make money if the emerging poor don’t have money ,especially when their exploited on wages .
Corporations /Fat Cats are nothing but power hungry mad-hatter money making machines that want the government to give them anything that increases their profit margins .
Tax policy goes a long way toward sitting up the inequities
in life ,but if the rich can distract us with attacks on the welfare sector being deadbeats ,or the teachers being
overpaid they are successful .
A lot of folks can’t understand how we came to have an oil shortage here in our country.
~~~
Well, there’s a very simple answer.
~~~
Nobody bothered to check the oil.
~~~
We just didn’t know we were getting low.
~~~
The reason for that is purely geographical.
~~~
Our OIL is located in:
~~~
ALASKA
~~~
California
~~~
Coastal Florida
~~~
Coastal Louisiana
~~~
North Dakota
~~~
Wyoming
~~~
Colorado
~~~
Kansas
~~~
Oklahoma
~~~
Pennsylvania
And
Texas
~~~
Our dipsticks are located in DC
I use to think all the sheep were brainwashed ,but I think the Politicians are brainwashed also ,they don’t even think of themselves as bribed pawns for the Fat Cats .
The Constitution was drafted to protect individual rights ,I didn’t see anything about Corporations or Industrial complexes in our
Constitution .
I use to think all the sheep were brainwashed ,but I think the Politicians are brainwashed also ,they don’t even think of themselves as bribed pawns for the Fat Cats .
The Constitution was drafted to protect individual rights ,I didn’t see anything about Corporations or Industrial complexes in our
Constitution .
Trillions in stimulus from obama’s stash and this is the result…
February planned layoffs highest in 11 months
Reuters | March 2, 2011 | by Leah Schnurr
(Reuters) - The number of planned layoffs at U.S. firms rose in February to its highest level in 11 months as government and non-profit employers let workers go, a report showed on Wednesday.
Employers announced 50,702 planned job cuts last month, the highest level since March 2010 and a jump of 32 percent from January’s 38,519, according to the report from consultants Challenger, Gray & Christmas, Inc. Layoffs were 20 percent higher than the 42,090 announced in February of last year, marking the first year-over-year increase since May 2009.
217 thousand new sign-twirlers, that is. I have never seen som many twirlers at so many intersections. I saw three different twirlers at one intersection the other day!
For some time now, ADP “numbers” have had all the usefulness of an extension cord tied to a daffodil.
But, just to play along, “losing” 300,000 50K jobs with actual benefits and “gaining” 217,000 “opportunities” at minimum wage or thereabouts, is not a signal of prosperity lurking around the corner, or “green shoots”.
The guy from Challenger, Gray and Christmas said that the huge increase in announced layoffs are from government layoffs. And it is a result of the stimulus, but it is because the money has just about run out and a lot of those jobs that were “saved or created” going away. The basis of the stimulus was that the general economy would have improved enough by the time the money was gone that private business would be taking over the hiring. Well, the corporate balance sheets have recovered, but they have decided that they can do it without hiring.
“The number of planned layoffs at U.S. firms rose in February to its highest level in 11 months as government and non-profit employers let workers go”
This is why I don’t understand the Republicans’ push to cut government spending now. The reduction in government payrolls dominoes into the private sector. Where are the jobs going to come from to replace the ones that the government is now cutting?
It is almost as if the Republicans intend to trash the economy in the runup to the 2012 election. I will not be surprised to hear them shouting about the bad economy for the next 2 years.
They screwed it up from 2000 and then handed off the mess with the plan to blame the person trying to clean it up when they failed, because they were going to make damn sure that person failed.
They threw us ALL under the bus. They brought close to WW 3 and may yet.
The corporations WILL have their fascist/fuedelist wet dream if they have to start a world war to do it.
Because the truth is, the American people are too damn dumb to stop them.
NY Times: The Minimal Impact of the Stimulus
New York Times | March 2, 2011 | By CASEY B. MULLIGAN
Last week’s final report on gross domestic product for 2010 provides a fresh opportunity to evaluate the stimulus law passed two years ago. The data and economic reasoning suggest that the effect of government spending on GDP was minimal at best.
The Obama administration and its supporters promised that the fiscal stimulus law would create or save more than three million jobs by now. Their stated intention was to provide government spending while the economy was weak, then end the extra spending as the economy recovered.
But instead of adding jobs, employment is now about two million below what it was when the law was passed in February 2009.
Some of us think that the fiscal stimulus made a bad situation worse, and that employment would have grown, or fallen less, if the stimulus law had not been passed. The Obama administration contends that, apart from the stimulus law, the economy was in worse shape than anyone expected, and that the law kept the employment drop to two million, rather than a potential drop of more than five million.
The stimulus spending penalized success, since its benefits — for example, extending unemployment insurance — were aimed at people and businesses with low incomes, and not at those who were working and/or achieving a certain income level. So it would be no surprise if the result was to keep incomes below what they would have been — as in other cases, a counterproductive result of a well-intentioned program.
Give Paul Krugman a call. I bet he will tell you that the only problem was that the stimulus wasn’t big enough. Then ask him about his wonderful Iraq analogy.
That is exactly right. The only jobs available are of the crappy low-paying variety and they figure its easier to get paid roughly the same amount by sitting at home (and working under the table). One guy the other day actually admitted that if the UE benefits stopped he would be forced to go get a job. No question unemployment is higher BECAUSE of STIMULUS SPENDING.
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Comment by RioAmericanInBrasil
2011-03-02 08:17:17
No question unemployment is higher BECAUSE of STIMULUS SPENDING.
If I were unemployed I would look for work but I damn sure would not take the first part-time, no benefit, WalMart type crap job that was available.
Comment by In Colorado
2011-03-02 08:40:17
Hunting for a non-menial job is … a full time job. When I was laid off 2 years ago I would spend hours everyday searching for jobs, fine tuning resumes and cover letters for each job. It takes a lot of time to do that, time I wouldn’t have had available had I picked up a couple of menial, P/T, minimum wage jobs.
One is a friend. I didn’t know that he was on unemployment. I knew he didn’t work since I met him in ‘09. I wondered what he did to pay his bills. A few months ago he started to have serious financial problems. Utilities started to get turned off. Then he told me he was behind on his rent. After that he said they were trying to evict him. It turned out that he had been collecting unemployment for 99 weeks. In all that time he did not look for work. He lived what I considered a very leisurely life. He would take day trips and bike rides. It seemed like a sweet gig. Perhaps he felt that it would just keep getting extended.
The second story is of a neighbor of a sibling. This guy is in his early fifties. He got fired from his teaching job for a minor violation (he beat up a student). With a young child at home he didn’t want to settle for a job making less than the $72,000 he was making at the school. He wasn’t going to settle for just anything. Me, I would have been looking to get my foot in a door someplace and try to work my way back up. Not this guy. He went to Chicago and got a new (used) car. He likes nice cars. It was a Cadillac that he couldn’t pass up. His house which is worth maybe $140,000 is being foreclosed. It has $219,000 worth of mortgages on it. He is getting divorced. His young wife already left. He never tires of complaining to others about his predicament, never blaming himself. I guess since he doesn’t work he has plenty of time for that.
Both of these guys will have to face cold reality. Both of them sat on unemployment as long as possible. And now they wonder what they are going to do. It seems that the 99 weeks really stripped away their ambition. I don’t wish ill on either but it is hard to have too much sympathy.
Back in the day, I collected unemployment in the state of Michigan. And this required periodic appearances at MES (Michigan Economic Security) to stand in long lines to see someone who’d determine if I could remain on unemployment.
I only did that once. Why? Because standing in line is not my thing. When I got up to the front of the line and saw the counselor, I announced that I’d just wasted my time standing in line when I could have been out looking for a job.
Long story short: I was referred to a printing company for a job that I was kinda-sorta qualified for. Only lasted two weeks. To this day, I am in full agreement with that company’s decision to let me go. It was and is a good printer and I just didn’t hack it there.
But that was the end of my unemployment money from the state of Michigan. Being forced to hack it on my own, that’s what I did. And, yes, I got by then and I still do it now.
Something to be said for figuring things out on your own. And making things happen.
No more standing in line, Slim. Now just a coulple of clicks a week on an online website and the money is electronically credited into your account. Even foodstamps, welfare, and WIC no longer inconvenience the recipient with any sort of shame, simply swipe a colorfully-decorated plastic card at the register and you are on your way. There has never been a better time to be a lazy system scammer.
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Comment by NYCityBoy
2011-03-02 08:13:49
Our society would be a lot better off if we brought back some of that old-fashioned shame that seemed to work pretty well. Two years ago I accidentally overdrew my checking account because I mistakenly used the wrong account for an online purchase. It was the first time this happened in 20 years of having a checking account. I was embarrassed and disgusted with myself. I moved money over right away to cover it. I swore that it would never happen again. I guess shame is for suckers like me.
Comment by In Colorado
2011-03-02 09:06:57
It is a two edge sword for the recipients. Here in the Centenial state our online system is buggy as hell and people sometimes have to wait weeks or even months before their benefits arrive. At least under the old system where you went to the office, once you were approved things would happen.
The online systems are there for one reason: to reduce head count at the UE office and to close UE offices.
As for adding “shame”, why should I be “ashamed” of collecting UE. something that my employers have contributed to over decades for me if I am laid off?
What would be far more helpful in getting people off of UE and welfare would be good paying jobs. Of course the race to the bottom precludes that.
Comment by Steve J
2011-03-02 09:50:48
You should be ashamed that you are not a wealthy CEO of a corporation. Or the son of a wealthy CEO. Or married to a wealthy CEO. They are the New Royalty of society. Anyone else is a mere peon.
Comment by NYCityBoy
2011-03-02 09:56:54
You’re right. Nobody in our society should be ashamed of their actions. I was wrong. As long as their are shameful CEOs everybody should be free to do whatever they want. Thank you for setting me straight.
Comment by In Colorado
2011-03-02 12:53:53
“You’re right. Nobody in our society should be ashamed of their actions. I was wrong.”
Who said that?
All I said is that after decades of paying into the UE pool, that if I’m laid off why should I be ashamed of collecting UE while I look for a new job?
When were you on unemployment, Slim? In a down market when upwards of 20 million jobs have been outsourced/insourced, there are few jobs to go get. I walk past a community college which is bursting with students, all of them “figuring things out and making things happen,” all hoping that their extra classes will give them an edge over other applicants. Are these lazy bums who need to “just get a job?
When I was unemployed back in the much more recent day, I learned that job apps is a half-time job at best. You spend the morning on the email and the job sites until you exhaust the day’s listings and contacts, which, in a recession, is pretty fast since there are few listings. Then you wait for employers to get back to you. There is a lot of wait time. And in a down market, employers do not get back to you.
Also please don’t forget the cell phone. Until recently, the unemployed were under house arrest — phone tag is BAD when you’re job hunting. This is the first recession where one could receive that magic ring-ring at the mall, or on a bike.
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Comment by Bad Andy
2011-03-02 08:50:55
Not sure what part of the country you’re in but there are plenty of jobs. Sure, many of these jobs are entry-level and/or not preferred…but guess what? If you’re unemployed you should strive to work for a living. It doesn’t have to be permanent and even Wal-Mart has management. I don’t understand the attitude that many people have about not wanting to take “that kind of job.” The last time I was unemployed I went back into retail. Why? Because it was work. I eventually went back into my profession.
Comment by Arizona Slim
2011-03-02 09:22:11
When were you on unemployment, Slim?
1980.
Comment by liz pendens
2011-03-02 09:26:17
Plus ten, Andy.
Comment by In Colorado
2011-03-02 09:26:25
I call BS on your claim that “there are plenty of jobs”. My college age daughter works in retail and there are weeks when she’s only scheduled a couple of 4 hour shifts (her ideal is 20 as it fits in with her school schedule). Supposedly the UE rate in our county is 7%, but I know so many long term unemployed people, at all levels, that I can only conclude that the 7% number is pure BS.
I am still haunted by a story about when a new hotel opened locally (an Embassy suites). They had about 100 openings, mostly for menial P/T positions. As the hotel construction was wrapping up they held a job fair: over 2000 people showed up, the majority had a least some CC credits. 2000+ showed up to apply for $10/hr jobs.
Comment by Arizona Slim
2011-03-02 09:29:50
The last time I was unemployed I went back into retail. Why? Because it was work. I eventually went back into my profession.
From my retail jobs, I’ve learned a lot about business. And that knowledge has served me in good stead.
As for the professional jobs? They were better for specific skills training. For business training, not so much.
So yay, retail. Best business school I ever attended.
I call BS on your claim that “there are plenty of jobs”
My company is trying to hire ~100 ppl (we’re a little over 200 ppl at the moment). There certainly are jobs out there for qualified people.
Comment by Bad Andy
2011-03-02 09:51:23
No offense Colorado, but college age kids working retail aren’t going to get the hours because they don’t have open availability. That goes back to my college days.
As for the job fair, how many people do you think are going to show up for 100 positions? When I post a position I get a lot of response. Many of the respondents want to get rich quick and the unemployed ones don’t want to leave their unemployment check with anything short of a six figure offer.
Comment by Steve J
2011-03-02 10:00:07
I call BS on your claim that “there are plenty of jobs”
I bet he hasn’t applied for a minimum wage job since the great recession started. If your over 40, no one wants you.
My company has hired several people over 40 in the past year. And has many older employees on top of those we’ve hired.
That may be true in general, but it’s certainly not true across the board.
Comment by Bad Andy
2011-03-02 10:41:43
If you’re willing to go through the schooling for a license I for one don’t care if you’re 20 or 60. In fact I’ve found the best employees to be over 40. It’s a different work ethic than the younger generation. I don’t feel that my position is unique. I think in fact many over 40 don’t recall a job market this tough searching for work and blame it on age instead.
As I said, there are plenty of jobs but you have to be willing to go outside of your box to get them.
Comment by In Colorado
2011-03-02 12:59:49
“No offense Colorado, but college age kids working retail aren’t going to get the hours because they don’t have open availability.”
Its not just her, everyone in the store has been cut back. She was scheduled to work last Saturday and they called her, telling her that her shift had been cancelled. The reason: slow sales that day.
6-12 months ago she was getting her 20 hours a week, sometimes even more, as were he coworkers. Now they’re luck if they get 10.
“My company is trying to hire ~100 ppl (we’re a little over 200 ppl at the moment). There certainly are jobs out there for qualified people.”
Whenever we have a req open for a engineering position we get buried in resumes. Finding the right person is never a problem.
Comment by Happy2bHeard
2011-03-02 17:06:52
“There certainly are jobs out there for qualified people.”
How many of those jobs are for qualified people with 4-5 years experience in a specific set of skills? In 2003 when I was looking for work, you couldn’t get past the automated HR screening system unless you had every one of a specific skill set.
“there are plenty of jobs but you have to be willing to go outside of your box to get them.”
If you are outside of your box of skills, good luck. There are hundreds of people that are a better fit.
If the job is outside of your local area, good luck. Most jobs are “Local Candidates Only”. And relocation expenses are a thing of the past. Pick up and move and take a chance that things will be better elsewhere? That is a true desperation move and if you have exhausted your resources in your home town, a quick way to the homeless shelter.
Start your own business - you’ll need really good luck and can expect to make less than a part time living for the first year, if you make any profit at all. Undercapitalization contributes to a lot of start up failures.
Re-invent yourself? E.g. start at the bottom. For someone who is sole support for a family, it can mean severe poverty for a minimum of several years.
Plenty of jobs? There are plenty more unemployed. And some employers are passing them over in favor of those who still have jobs.
Maybe you can take any job to get by. But it may not be the best solution. Sit on your butt at home and apply online may also not be the best strategy.
How many of those jobs are for qualified people with 4-5 years experience in a specific set of skills?
At my company? Several. We’re hiring very senior folks (> 10 years experience), as well as fresh college grads. The ideal candidates would actually be the ~4-5 year experience folks you mention.
The core of your post seems to be that finding a new job can be hard, and that there are risks involved. My initial response to that is “no sh*t”. Do you expect it to be handed to you?
Yes, starting a business is risky. And so is moving to another city. Do you expect someone to make it easy and risk free? Who should do that?
I tried applying for jobs in another city. I didn’t get very far. So I simply flew up there and contacted the companies while I was in town. I landed two interviews and had two strong job prospects - it only happened because I took the initiative and risk to fly up there. I then committed to move up there, and did move. Without a job. And without friends or family in the area to fall back on.
Was it risky? Sure. I went 9 months without a job. I did very targeted job hunting. I did my best to network with friends, friends of friends, and former coworkers. I went to job fairs. I eventually drummed up some contract business to keep me afloat (just as my bank account balance was hitting zero*), and eventually got a contract job with a horrible commute (2 hrs a day in the car). When my lease was up I moved closer, and eventually found a full-time job with good benefits and good pay.
Does it work out this way for everyone? Of course not. But that’s not my point. Life is risky. It’s not handed to anyone on a platter, even those who appear “successful”. Who’s going to give anyone that safe, easy, well-paying job just for existing?
Comment by Happy2bHeard
2011-03-02 21:18:58
Exactly my point, drumminj. Life is risky. I get irritated when posters trivialize the risks.
For many people, collecting unemployment is the less risky thing to do, at least in the short term. To say that they should just take any job is to minimize the risks involved in doing that.
To say that they should just move to where the jobs are is to downplay the risks.
Some people also collect too long. There is a risk of your skill set becoming obsolete while you are out of work. I remember thinking the last time I was out of work that every day I was not working, was a day that someone else was getting experience I needed.
I have done the long distance move to find a job several times, once with a baby in the car. It is not for the faint of heart.
Comment by Housing Wizard
2011-03-03 00:27:32
But ,when you have discrimination in hiring practice it can get really rough . Corporations that provide medical insurance don’t want to hire older workers (in spite of them being more qualified ) because they pay more for medical .
Health Insurance Companies would get mad at them if they had to many older workers in the risk pool of workers . Thats why you have to de-couple health care from employment . But if
Employers don’t provide health benefits ,than they would have to give higher salaries to make up for it because the worker would have to take care of that themselves ,yet industry is giving less of both wages and benefits to workers .
Industries likes to say that they don’t have qualified workers
to get from the employee pool ,so this is the grounds for outsourcing . They have plenty of qualified workers that they either don’t want to pay what they command or they can
get it elsewhere . This is evident by the fact that Industry will hire low-skill labor for answering phones even when they can barley speak understandable English in these call centers ,its the low price ,not that American workers aren’t there to
fit into those jobs . No offence to foreign workers ,but how many jobs are your Corporations giving USA workers .
Some of these factors are making it very difficult for USA workers to get jobs in a shrinking job market .
My nephew with 2 kids finally got a job ,but they give him no benefits ,he couldn’t find any other job . He longs for the days when he had benefits with the job .
Its not a matter anymore of the employee being in the position to dictate their worth ,its just the Employer being
in the position of to many people wanting that job ,some of which are outside our Country .
So,if you say that employees have risks ,I say they have uneven risks by not being able to command their worth .
Isn’t it a requirement of UE benefits that the recipient show proof of looking for work? My sister has certainly spent a great deal of time doing so, and has to provide documentation every week.
Yeah, you click the button online that says you looked for work. That is how shoddy the easily-gamed system really is.
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Comment by NYCityBoy
2011-03-02 09:37:34
The person I know that was a 99′er never looked for a job.
Comment by MrBubble
2011-03-02 10:29:09
“Yeah, you click the button online that says you looked for work. That is how shoddy the easily-gamed system really is.”
FYI — that’s not true in CA.
Comment by Montana
2011-03-02 10:38:27
Back in the early 70s I got UE for a few months, and I remember I had to show three places I looked for work. I really thought they were going to check up on me.
People sure send mixed messages as to whether the unemployed should take “menial” jobs. Damned if you do, damned if you don’t. I promised myself I would start looking immediately, even if it’s economically “stupid,” because I could really get used to not working.
In CA, you must look for a job to get UE payments.
how is that enforced?
In Texas, you’re “supposed to”, but all it is is entering a # of job search related activities you engaged in that week.
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Comment by MrBubble
2011-03-02 16:39:20
If you enter nothing, you don’t get any UE. If you do, you do. I am assuming that those lines are being checked (or at least spot checked) since if you miss a signature or a check box anywhere, they send it back to you to fix it. I suppose that you could put down that you were working for Yoyodyne Inc., but I would think that they’d check it.
“But instead of adding jobs, employment is now about two million below what it was when the law was passed in February 2009.”
This is bad logic, as it fails to consider how much more dire the employment picture would have looked in the wake of the disaster that a two-term Bush presidency was for the country were it not for stimulus.
Yeah, and we could have had complete Armageddon without the TARP. So just think of how many jobs were “saved”. Gimme a freakin’ break PB. You know better than that.
This is bad logic, as it fails to consider how much more dire the employment picture would have looked in the wake of the disaster that a two-term Bush presidency was for the country were it not for stimulus.
Did you really drink the whole pitcher of kool-aid?
“This is bad logic, as it fails to consider how much more dire the employment picture would have looked in the wake of the disaster that a two-term Bush presidencythirty-year debt-bubble was for the country were it not for stimulus.”
Fixed that for ya.
PB, fess up: are you just trolling lately?
All these years, you have been one to see the big picture, and now suddenly you are making the argument that the employment picture is about an 8-year period of mistakes by Bush?
I’m no Bush fan, but the forces at work here for decades would have played out regardless of who was in office.
I simply asserted that unemployment would have been higher without stimulus than it was with it; I offered no opinion about whether this was a good or bad policy. Those of you who are attacking me for making an obvious and objective statement ought to occasionally reflect a little on economic reality before posting.
P.S. True story: My maternal grandfather joked that the depression-era WPA stood for “We Piddle Around.”
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Comment by Arizona Slim
2011-03-02 12:32:48
P.S. True story: My maternal grandfather joked that the depression-era WPA stood for “We Piddle Around.”
My father told me the same thing.
Comment by GH
2011-03-03 00:18:40
I agree the dominoes were falling fast and the crash would have taken down the entire banking system.
If one looks at city,state, and federal spending together, there has really been almost no stimulus. The increased federal spending just offset declining state spending.
Budgets - Actually there has been a slight increase but
Total government purchases of goods and services have gone up. But adjusted for inflation, they rose only 3 percent over the last two years — a pace slower than that of the previous two years, and slower than the economy’s normal rate of growth.
The total number of government workers in America has been falling, not rising, under Mr. Obama. A small increase in federal employment was swamped by sharp declines at the state and local level — most notably, by layoffs of schoolteachers. Total government payrolls have fallen by more than 350,000 since January 2009.
Budgets - Actually there has been a slight increase but
Total government purchases of goods and services have gone up. But adjusted for inflation, they rose only 3 percent over the last two years
This doesn’t seem to support your claim that spending hasn’t increased?
Does this “total” include city, state, county, and federal government?
What’s the mix of jobs that have been added at the fed level vs those lost at the state levels? What are the salaries/total compensation amounts? Laying off state workers who make $50k but adding federal workers making $80k certainly wouldn’t result in less overall government spending.
Comment by measton
2011-03-02 13:14:40
It doesn’t increase it above the normal trend which is due to population and GDP growth. ie no stimulus.
The stimulis money did save jobs. It is illogical to think that employment went down because money was dumped into stimulis projects. The problem with the stimulis is that it was borrowed money, which makes the future worse.
How did it crowd out private investment? No private company wanted to pave our roads or build water treatment plants or put a stainless railing on our sidewalk over here.
Perhaps you and I are considering different things when we think about “the stimulus”. Are we talking about TARP? Or The ARRA (I think it was?)
Certainly private money was crowded out by below market interest rates, by the AIG bailout, by the gov’t support of big banks, the guarantees on MMFs, raising of the FDIC limits, and by explicit guarantees of Freddie and Fannie and now the fact that they are responsible for the bulk of residential mortgages.
To me, that is all part of the “stimulus”. But perhaps I’m taking a broader view than you are?
Comment by Blue Skye
2011-03-02 13:29:39
I have my bailouts and stimuli all mixed up.
Comment by measton
2011-03-02 17:26:50
The idea of crowding out is that when the state borrows that they take money that would have gone to the private sector and this drives up interest rates for corporations.
Corporate interest rates are at rock bottom. The FED is printing for anyone who will borrow. It’s not crowding out.
The idea of crowding out is that when the state borrows that they take money that would have gone to the private sector and this drives up interest rates for corporations.
No, it’s not. But feel free to re-state the issue and attack your version of it rather than what’s presented.
The idea of crowding out is that there’s no room for private investment because the gov’t is flooding the folks with money instead. For example, in the current housing market, FHA, Fannie, and Freddie are crowding out private investment.
Comment by alpha-sloth
2011-03-02 21:35:52
measton: “The idea of crowding out is that when the state borrows that they take money that would have gone to the private sector and this drives up interest rates for corporations.”
drumminj: “The idea of crowding out is that there’s no room for private investment because the gov’t is flooding the folks with money instead.”
As usual, you’re wrong, drumminj:
wikipedia
“Usually when economists use the term “crowding out” they are referring to the government spending using up financial and other resources that would otherwise be used by private enterprise.
Crowding out can, in principle, be avoided if the deficit is financed by simply printing money, but this carries concerns of accelerating inflation. “
How unsurprising that you would exclude the sentence that followed the one you quoted:
However, some commentators and other economists use “crowding out” to refer to government providing a service or good that would otherwise be a business opportunity for private industry.
I will concede that there are two working definitions for the term “crowding out”- one that follows what measton said, and one that aligns with my statements. Of course, if you look at I actually said, my meaning and intent should be clear: “IT CROWDED OUT PRIVATE INVESTMENT”.
“The Obama administration contends that, apart from the stimulus law, the economy was in worse shape than anyone expected, and that the law kept the employment drop to two million, rather than a potential drop of more than five million.”
This logic reminds me of the city/County attorney stating at the end of the year how much money he/she saved the city/County by settling lawsuits against the city/County. In reality if you didn’t try the case you can’t put a real number on you work or worth. But what the opposition knows is your baseline settlement and can now bombard you with all kinds of nuisance suits. I had one attorney who said, “I don’t care how much the County is willing to pay but not one dime of my money”. He, with my help, won the case and the savings was $400K.
Motion Picture Industry Group Names Ex-Senator Dodd as Its New Chief
By BROOKS BARNES and MICHAEL CIEPLY
Published: March 1, 2011
LOS ANGELES — Christopher J. Dodd, the former Democratic senator of Connecticut, was named as Hollywood’s top lobbyist on Tuesday, a move that might initially prove tricky because of lobbying restrictions for former members of Congress.
The Motion Picture Association of America, which is counting on Mr. Dodd to revive its diminished influence, announced that he would take over on March 17 as its chairman and chief executive. The job, which will pay about $1.5 million a year, will require Mr. Dodd to push a Hollywood agenda in Washington that includes a more aggressive government stance against piracy and an effort to persuade China to lift limits on the distribution of Western movies.
How will Chris survive on a measley $1.5 million a year? He won’t be eligible for all those bribes, kickbacks, and sweetheart “friends of Angelo-type” deals without political power to abuse.
YOu can guarantee this is payback for a job well done.
30 years of pleasuring WS is now being rewarded with a cush high paying job.
The next guy up will see this and think man I should really help these rich guys out.
As stated yesterday this is how you can tell who is in charge. Puppets get 1million a year jobs for 30 years of doing WS bidding. WS elite are pulling in 10’s to 100’s of millions a year.
In Russia Putin has 40 billion.
Mubarek had 70 billion
“As stated yesterday this is how you can tell who is in charge. Puppets get 1million a year jobs for 30 years of doing WS bidding. WS elite are pulling in 10’s to 100’s of millions a year. ”
Saw that yesterday, measton; very apt and well said.
Since the future prospects for ongoing government funding is up in the air, I would think this would be a particularly dicey year for federal government employees to purchase a home. It would make far more sense to rent if you knew your future paycheck was in question.
March 1, 2011, 4:22 p.m. EST House approves stopgap spending bill
Two-week funding plan would include $4 billion in cuts
By Robert Schroeder, MarketWatch
WASHINGTON (MarketWatch) — With a halt in many federal operations looming, House lawmakers passed a bill Tuesday that would keep the government running for two weeks.
The vote was 335-91 in the Republican-controlled House. The bill, which Republicans say will cut $4 billion from the federal budget, now goes to the Senate. Senate Majority Leader Harry Reid said he expects a vote on the bill in the next two days.
The House bill funds operations through March 18. Without a stopgap bill, many operations would grind to a halt on Saturday, leading to the first government shutdown since the mid-1990s.
…
“Two weeks is plenty of time,” said House Appropriations Committee Chairman Harold Rogers on Tuesday.
“We’ll pass this and then we’ll look at funding the government on a longer-term basis,” Reid said Tuesday.
But House Republicans and Senate Democrats are far apart on a bill that would fund the government from March to September, when the current fiscal year ends.
…
Since the future prospects for ongoing government funding is up in the air, I would think this would be a particularly dicey year for federal government employees to purchase a home. It would make far more sense to rent if you knew your future paycheck was in question.
And, somewhere in the DC area, the REIC is putting out a contract on Professor Bear. Watch out, Bear!
Whether or not I publicize the facts before the MSM-media reports them will not change the obvious economic reality facing the DC housing market at the day of reckoning for the federal budget.
“Since the future prospects for ongoing government funding is up in the air, I would think this would be a particularly dicey year for federal government employees to purchase a home. It would make far more sense to rent if you knew your future paycheck was in question.”
Bear, people in this country quit using common sense a long time ago. The propaganda in this country towards homeownership is sickening and pervasive. The NAR, HGTV, Home Depot, its everywhere. Most people I talk to STILL don’t grasp that the last 15 years were an anomaly and 2006 values simply. are. not. coming. back. period.
When we lived in the D.C. area and a major snowstorm was expected, the TV and radio stations would announce something to the effect that “non-essential” government personnel didn’t have to report to work the next day. Honest, that’s the term they used.
I never heard any statistics as to what percentage of government personnel were classified as “non-essential” (Polly or Oxide, any thoughts on this?) but of those who are “essential” I guarantee that not a single one of them is worried about losing his or her job right now.
Overwhelming majority are non-essential because the definition of non-essential is that things won’t stop functioning if you are home for a day or two. It doesn’t mean your job doesn’t have to get done; it is just a matter of the timing being less urgent.
So, if you are a person who prevents people from shooting the president, you have to go to work because that has to happen every single day. If you are a person who processes non-emergency passports, well, that can probably wait until tomorrow.
As of this year, they basically never just tell us to stay home in the DC area. We get to show up two hours late (to try to spread out the commuting or wait for the locals to finish plowing) or can telework without having previously arranged to do so with our supervisors (assuming you remembered to bring your computer and papers home with you). They sometimes allow people to take a day of leave without having previously arranged it, but that is only if the schools are all closed and it counts against your annual leave.
- Somebody dies if they don’t go to work.
- Some vital government function stops going if they stop working.
- Treaty obligations are not upheld if they are furloughed.
NEW YORK (MarketWatch) — To believe FDIC Chairwoman Sheila Bair last week, 2010 was a “turnaround year” for the U.S. banking industry.
Almost two-thirds of all banks reported year-on-year improvement in quarterly net income in the fourth quarter, and the average return on assets (ROA), which was negative a year ago, ended 2010 at 65 basis points.
Unfortunately, Bair, like so many policy makers around the globe today, likes to focus on the averages; and in the case of the U.S. banking industry, I’d offer that those averages are terribly deceiving when it comes to measuring the industry’s true health.
To me, a more accurate headline for 2010 banking results would be “America’s biggest banks benefit from the reversal of straight-to-equity FAS 166/167 loan loss reserves, while small and mid-size banks approach asphyxiation.”
…
It must be nice to have a good credit union. The CU’s around here have been smaller versions of the big banks for years. Their fees are just as obnoxious. In Michigan there were several great credit unions I could be part of.
About a week ago I had a long conversation with an American Tea Party tourist guy here in Brazil. (lol, you can imagine) He kept floating this idea about only property owners being allowed to vote like in the good old days and I kept suspecting this was a new Tea Party position or something. Now I know. There were also racial aspects to many of his positions but he kept buying everyone drinks so I didn’t show him the haymaker.
What to know what the Tea Party says about foreclosures and the housing crisis?
Nearly two years to go until the next Presdential Election and already the Tea Party is deciding how to slice and dice voters.
Here’s a new Tea Party plank: Don’t let renters vote.
Gawker reported that Judson Phillips, president of prominent Tea Party group Tea Party Nation, has a terrific idea: “The Founding Fathers… put certain restrictions on… the right to vote… you had to be a property owner. And that makes a lot of sense.”
Here’s the full quote, from Tea Party Nation Radio:
“The Founding Fathers originally said, they put certain restrictions on who gets the right to vote. It wasn’t you were just a citizen and you got to vote. Some of the restrictions, you know, you obviously would not think about today. But one of those was you had to be a property owner. And that makes a lot of sense, because if you’re a property owner you actually have a vested stake in the community. If you’re not a property owner, you know, I’m sorry but property owners have a little bit more of a vested interest in the community than non-property owners.”
Republicans have always had a fondness for the past. But, do we really want to jump right back to the Middle Ages
CARACAS, Venezuela - A prominent union leader was sentenced to seven years in prison Monday on charges stemming from a strike that temporarily paralyzed Venezuela’s state-run iron mining company, his lawyer said.
The ruling raised concerns among human rights activists who accuse the government of President Hugo Chavez of misusing the legal system to curb the power of organized labour, particularly unions at state-operated companies.
It’s all about power with these guys. Totalitarian by any means.
After telling the state that he wasn’t going to go after companies dumping toxic sludge in our water because it would be anti business. He has decided to increase the set back requirements for placing windmills on property thus killing about 80-90% of the planned wind farms.
Seems for gov Walker regulation is to be used like a club against those who compete with your campaign donors but is a no no when campaign donors spill toxins into the water supply.
I’m sure Hugo Chavez is very pro-labor…except when it disrupts his government run companies. You liberals don’t understand that this could happen here.
You conservatives don’t understand that this is happening here.
The point is that
Hugo Chavez isn’t that much different than Scott Walker. They use different language but really they are about consolidating power for their own small click. China outlaws unions and strikes as well.
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Comment by NYCityBoy
2011-03-02 11:48:33
I’m waiting for you to compare Walker to Hitler. Come on. You can do it. You know you can.
“You conservatives”. LMAO.
Comment by Bad Andy
2011-03-02 11:59:05
Walker is a free market guy. Your pro-public sector union stance may be damaging your judgment. Comparing the two is way out of line. Just because you disagree with someone’s viewpoint doesn’t mean you can compare him to a dictator in training.
Comment by measton
2011-03-02 13:11:36
Really a freemarket guy
1. How is the no bid purchase of state power plants behind closed doors free market?
2. How is the recent change in Set back laws on wind power free market? It will make 80-90% of planned wind projects unviable? They compete w his coal interest donors. Note that he recently refused to enforce waterpollution laws because they would be too hard on business, ie his favored campaign contributors.
3. HOw is accepting a paid vacation in California from a campaign backer free market??
No Walker is all about special interests that supported him. HIs union busting thing has nothing to do about costs and everything about taking out the competition. No different than firing state workers who don’t support him, we’re probably one step away from that.
Comment by ecofeco
2011-03-02 17:28:22
“No bid deals” are free market?
Seriously. No… seriously. Can you even hear yourself?
Comment by exeter
2011-03-02 18:03:52
1. How is the no bid purchase of state power plants behind closed doors free market?
Totalitarian, yup. Commies and facists go after unions with equal zeal. Unions are a creature of middle - at least unions that exist as independent entities. The left and the right are both reknown for labeling worker groups “unions” as window dressing but cross the state just once - and this is what happens.
I realize that this time is different, but 1989 was just before the onset of a seven-year slide in California home prices. I suppose in the worst case scenario, where history rhymes with the last similar episode, these all-cash investors will always be able to find greater fools willing to catch their falling knife investments.
28% of San Diego home sales in Jan. were cash DataQuick: Slow winter season, lower-than-ever prices were likely factors
By Lily Leung, UNION-TRIBUNE
Tuesday, March 1, 2011 at 6 a.m.
Almost three out of 10 homebuyers in San Diego County in January closed with cash, the highest it’s been in 21 years, according to La Jolla-based DataQuick Information Systems.
Company spokesman Andrew LePage said 28 percent of new and resale homes bought in the county last month had no records of mortgages, matching the percentage of cash purchases one year ago during the same time.
The figures from this year and January 2010 are second to only the peak at May 1989, when 29.1 percent of home purchases were made with cash.
…
Homes sold to cash buyers
Area Jan. ‘10 Jan. ‘11 Peak since ‘88 10-yr. avg.
Los Angeles 26% 25% 26% 11%
Orange 24% 27% 27% 11%
Riverside 36% 36% 37% 17%
San Bernardino 36% 39% 39% 16%
San Diego 28% 28% 29% 13%
Ventura 23% 21% 43% 11%
Southern Calif. 30% 30% 30% 13%
Source: DataQuick Information Systems
Other DataQuick highlights, California
–In January, 51.9 percent of those paying cash were absentee buyers. That means the property-tax bills will be sent to different addresses, potentially signaling the deals were made by investors.
–About 52 percent of the homes bought with cash in January had been foreclosed on in the previous 18 months.
–The median price for a home bought with cash last month was $160,000, down from $175,000 in December and $164,000 one year earlier. The median home price for all homes sold throughout California last month was $239,000.
A co-worker just shared a funny story with me. It appears that his dad’s neighbor is really letting her house and yard go to pot. There are some old cars in the driveway that never get moved. All she does is complain how she has no money and things are so tight. But nearly every day there is a mail delivery or a UPS truck delivering packages. It sounds like there may be no money because she has an Amazon or QVC spending addiction. My co-worker’s dad is retired so he can monitor this pretty well.
It turns out that this person is a kindergarten teacher in New Jersey. We looked up her information and she currently makes $79,000 + for teaching kindergarten and just can’t make ends meet on that pittance.
$79K for a job that goes 9 months out of the year is OVERPAID. There, I said it.
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Comment by NYCityBoy
2011-03-02 11:54:00
You mean $79,000 salaries for kindergarten teachers might be unsustainable? And this doesn’t even touch on the benefits portion of her compensation.
I was just pointing out that she is paid a decent salary and can’t make ends meet and complains endlessly as if she made next to nothing. I thought it was funny that she is also so messy and lazy about her house. I wonder what she teaches the kids.
Muggy is trying to be a teacher so he takes personal offense at the questioning of any teacher’s salary. It must mean we hate the middle-class and want everybody to make $2 per day. Honesty often ends where self-interest begins.
Comment by Muggy
2011-03-02 12:49:33
NYCityBoy, what do you do for a living, and how much do you make?
Comment by RioAmericanInBrasil
2011-03-02 13:47:56
It must mean we hate the middle-class and want everybody to make $2 per day. Honesty often ends where self-interestusing strawmen begins. NYCityBoy
Comment by NYCityBoy
2011-03-02 13:54:44
I work in the private sector without any contract. I can be fired at any time. I lost my 401k match the moment the “financial crisis” began. I get paid what it would take to hire a qualified person to do my job. If my employer decides to cut that pay I either accept it or find another job.
Prior to finding my job they had gone through multiple people that could not do this job at the salary offered.
I also live and work in the area that has the highest cost of living in the U.S.
Did you get the part about being paid according to what it would take to replace me with another person qualified and willing to work for the wage, the loss of benefits or the ability to be replaced at any time? And I don’t cry to anybody that it is not fair. I don’t hide behind a mob to extort anything extra from my neighbors.
Comment by Muggy
2011-03-02 14:19:48
Sorry, let me rephrase my question: NYCityBoy, what do you do for a living, and how much do you make?
Way to go, Muggy. If you don’t like the conversation try to change it. That happens all the time. When the public unions are being discussed I see, “well, Wall Street did this” or “the Republicans did that”.
Children learn that tactic at a young age. Being a teacher I would expect you to know that. “Well, what about Johnie?” “What about Suzy?” “What about you?”
Would you also like to know my favorite color or a list of my turn-ons? Should I upload some revealing photographs? That would distract from the issue. Boy, would it.
I thought it was a relevant subject, this kindergarten teacher, with all of the discussions of late. I know you want everything to be about me but, trust me, it isn’t all about little old me.
Comment by Muggy
2011-03-02 15:27:41
NYCityBoy, it would help me understand your perspective if you shared what you do for a living, and how much you make.
What do you do for a living, and how much do you make?
Comment by ecofeco
2011-03-02 17:33:38
Tut tut. It’s ok to criticize someone else’s income, but don’t you dare question mine and nobody else lives in as high a cost of living area as I do!
One teacher has a problem with managing money, therefore all teachers are overpaid?
Not sure I see that from NYCBoy’s post or BadAndy’s post. I see the sharing of an anecdote, but no generalizations drawn from that regarding “all teachers”.
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Comment by Muggy
2011-03-02 12:51:04
“I see the sharing of an anecdote, but no generalizations drawn from that regarding “all teachers””
Oh, o.k.
Comment by ecofeco
2011-03-02 17:35:35
It WOULD be an anecdote except their anti-teachers pay position has been repeatedly stated previously.
“It sounds like there may be no money because she has an Amazon or QVC spending addiction.”
I depends on what you buy.
My “addiction” lately has been reading manga. Some stuff you can get at the library, but a lot isn’t available there. Manga is pretty cheap (sometimes as low a $5) and with Amazon prime I don’t pay for shipping. So the UPS truck stops frequently at our house, but the bank isn’t getting broken.
Correct. I’ve collected about 50+ volumes of manga alone, not to mention other stuff purchased at Amazon (which is almost always cheaper than the local B&N store). So I’ve paid around a dollar (or maybe less) for 2 day shipping.
Reuters blogger Felix Salmon wrote a very interesting op-ed in The New York Times last week about our increasingly irrelevant stock market:
… the glory days of publicly traded companies dominating the American business landscape may be over. The number of companies listed on the major domestic exchanges peaked in 1997 at more than 7,000, and it has been falling ever since. It’s now down to about 4,000 companies, and given its steep downward trend will surely continue to shrink.Nor are the remaining stocks an obvious proxy for the health of the American economy. Innovative American companies like Apple and Google may be worth hundreds of billions of dollars, but most of them don’t pay dividends or employ many Americans, and their shares are essentially speculative investments for people making a bet on how we’re going to live in the future.Put another way, as the number of initial public offerings steadily declines, the stock market is becoming little more than a place for speculators and algorithms to compete over who can trade his way to the most money. …Meanwhile, the companies in which people most want to invest, technology stars like Facebook and Twitter, are managing to avoid the public markets entirely by raising hundreds of millions or even billions of dollars privately. You and I can’t buy into these companies; only very select institutions and well-connected individuals can. And companies prefer it that way.
Sadly, he’s all sorts of right. The only reason a company should go public is to gain access to capital markets. If they can privately obtain all the capital they need and bypass the public circus of high-frequency traders, quarterly earnings roasts, and regulatory flame-throwing, then by all means they should do so.
The real message is that with more and more of the wealth held by a smaller and smaller # of hands there is no need to go public. A private concern can more easily manipulate gov to strip wealth from citizens. See Scott Walker selling Wi Power plants in no bid behind closed door process.
I’d like to see a comparison of CEO pay at public vs private companies. I suspect big money doesn’t allow the BS that public investors have to endue such as golden parachutes.
From yesterdays discussion on why a Prius is bad, “scary” bad. as I said.
Building a Toyota Prius causes more environmental damage than a Hummer that is on the road for three times longer than a Prius. As already noted, the Prius is partly driven by a battery which contains nickel. The nickel is mined and smelted at a plant in Sudbury, Ontario. This plant has caused so much environmental damage to the surrounding environment that NASA has used the ‘dead zone’ around the plant to test moon rovers. The area around the plant is devoid of any life for miles.
The plant is the source of all the nickel found in a Prius’ battery and Toyota purchases 1,000 tons annually. Dubbed the Superstack, the plague-factory has spread sulfur dioxide across northern Ontario, becoming every environmentalist’s nightmare.
“The acid rain around Sudbury was so bad it destroyed all the plants and the soil slid down off the hillside,” said Canadian Greenpeace energy-coordinator David Martin during an interview with Mail, a British-based newspaper.
All of this would be bad enough in and of itself; however, the journey to make a hybrid doesn’t end there. The nickel produced by this disastrous plant is shipped via massive container ship to the largest nickel refinery in Europe. From there, the nickel hops over to China to produce ‘nickel foam.’ From there, it goes to Japan. Finally, the completed batteries are shipped to the United States, finalizing the around-the-world trip required to produce a single Prius battery. Are these not sounding less and less like environmentally sound cars and more like a farce?
Wait, I haven’t even got to the best part yet.
When you pool together all the combined energy it takes to drive and build a Toyota Prius, the flagship car of energy fanatics, it takes almost 50 percent more energy than a Hummer – the Prius’s arch nemesis.
Through a study by CNW Marketing called “Dust to Dust,” the total combined energy is taken from all the electrical, fuel, transportation, materials (metal, plastic, etc) and hundreds of other factors over the expected lifetime of a vehicle. The Prius costs an average of $3.25 per mile driven over a lifetime of 100,000 miles – the expected lifespan of the Hybrid.
The Hummer, on the other hand, costs a more fiscal $1.95 per mile to put on the road over an expected lifetime of 300,000 miles. That means the Hummer will last three times longer than a Prius and use less combined energy doing it.
So, if you are really an environmentalist – ditch the Prius. Instead, buy one of the most economical cars available – a Toyota Scion xB. The Scion only costs a paltry $0.48 per mile to put on the road. If you are still obsessed over gas mileage – buy a Chevy Aveo and fix that lead foot.
One last fun fact for you: it takes five years to offset the premium price of a Prius. Meaning, you have to wait 60 months to save any money over a non-hybrid car because of lower gas expenses.
Read the April Consumer Guide. None of the ’subsidised cars are cost effective. And, they cause more environmental damage because of the batteries.
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Comment by measton
2011-03-02 21:32:55
Couldn’t find the article This is what Consumer guide said about the 2011 Prius
Consumer Guide Automotive places each vehicle into one of 18 classes based on size, price, and market position. Midsize Cars represent the heart of the U.S. car market. Most are price-sensitive, conservatively designed, family-oriented sedans and wagons. Our Best Buys include the Ford Fusion, Hyundai Sonata, Kia Optima, and Toyota Prius
So, if you are really an environmentalist - ride a bike or walk. Fixed.
Okay, I’m at the age where being fixed or not fixed is no longer an issue.
Having gotten that point out of the way, I’ll admit to being an enviro who bikes and walks. Why? Because it’s so much cheaper and enjoyable than driving.
Besides, any cyclist can tell you - a Prius is just as lethal as a Hummer. In fact, at least the Hummer might take you out quick whereas a Prius might just gravely wound you.
Bickering over who makes the cars or what size they are seems a waste. Let the auto-centric culture itself be questioned because before the automobile came along the ecological footprint of just about everyone was a heckuva lot smaller - and so was their personal debt.
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Comment by MrBubble
2011-03-02 13:21:13
“Let the auto-centric culture itself be questioned because before the automobile came along the ecological footprint of just about everyone was a heckuva lot smaller - and so was their personal debt.”
Very true. We’d have no personal debt at all, but my wife came with a car. Such as deal! It’s a Mini and we still have a bit of debt on it that slated to be paid off in January. We’ve got no other debt, as I said, and we’re building our nest-egg of a year’s worth of cash in the bank at a post-tax savings rate of 43% at 0.0001% APR. That doesn’t include the silver that I brought to the relationship.
The money is just sitting in checking because the APR on the car debt is “only” 6%. I’m still not sure whether to keep the cash or to hold the debt if we enter a sudden inflationary or deflationary environment. Are we splitting hairs here?
All that stuff about the bike said, it’s nice to have a car available in an emergency or when your bike gets stolen like mine two weeks ago, but I’m going to get a cheap beater bike and a newer main ride this weekend, so I’ll rarely have to “pay at the pump”.
Good one! That’s a conversation that will rear it’s ugly head in a few weeks since our boy is getting on two weeks old. Don’t feel like being an octo-dad…
Math does not lie, but some can’t understand math and thus remain ignorant.
Prius is often listed one of the cars with the lowest cost of ownership. Yet somehow it’s also supposed to use more resources??????????
The bible for many new-car buyers, Consumer Reports, has named the 2009 Toyota Prius Touring the single best overall value among more than 300 new cars this year. The honor came in its 2009 Annual Auto Issue (on newsstands next Tuesday, March 3), which is eagerly snapped up–and/or read online–by literally millions of car shoppers every year.
While it wasn’t the lowest-cost car in its class, the Prius Touring won for its low estimate for five-year cost of ownership, which the magazine pegged at $26,250–due to high resale value and its superb overall fuel economy of 42 miles per gallon. It also gave the Prius a high score of 80 out of 100 possible points in its arduous road test.
Meatson sure is mad. I bet he has a leather man-purse too. Do you know where leather comes from?
Cost to the planet is not the same as your gas bill, Doh!
When you pool together all the combined energy it takes to drive and build a Toyota Prius, the flagship car of energy fanatics, it takes almost 50 percent more energy than a Hummer – the Prius’s arch nemesis.
I’ve taken to calling the Prius the Car of Virtue. Due to the smugness I see among its drivers.
I do feel smug when I see suckers filling up at the gas station.
Many in my office drive giant SUV’s and they always start crying when gas get’s over 3 bucks a gallon. I go out of my way to tell them how little it affects me.
Same smugness HBB’rs have been accused of when they talk about the real estate bubble. When you are right your right.
PS agree riding a bus or mass transit is better when an option.
1. Prius batteries, contains 32 pounds of nickel . 94 %of the 1.55 million tons of nickel mined yearly is used for steel, alloys, and electroplating. All of Toyotas prius sold to date account for <1% of yearly nickel mined. 80% of Ni is recycled. Toyota offers $150 for each battery returned to them. So for toyota batteries it’s closer to 100%.
Let’s also factor in the huge amounts of coal and Ni used to make the hummer.
2. The study you site assumes the Hummer runs for 300,000 miles while the prius is scrapped at 100k the warranty for the initial prius was 100k so they must have lost a bundle. I have 150k on both of my hybrids and they are running strong I’ve replaced airfilters oil tires and brakes (brakes 1x in 150k due to hybrid braking). I’ve had to replace some pressure valve which is part of maintenance. That’s it.
Pick up a Consumer report in February 2011 Consumer Reports decided to look at the lifetime of the Prius battery and the cost to replace it. The magazine tested a 2002 Toyota Prius with nearly 208,000 miles and compared the results to the nearly identical 2001 Prius with 2,000 miles tested by Consumer Reports 10 years ago . The comparison showed little difference in performance.
San Francisco’s first hybrid taxi was a Toyota Prius that went into operation in 2003. The first fleet of hybrid taxis anywhere in America hit the streets of San Francisco in November 2004, with fifteen Ford Escape hybrids operated by Yellow and Luxor cabs. The city also has Camry hybrids in its hybrid fleets. They estimated they saved 9000 dollars a year on gas with hybrid Escape vs the Crown Vic. Gas prices are even higher now. The difference between a Hummer and a Prius would be even more.
Get on ebay see how many 200k plus Hummers there are out there vs 100k plus civic hybrids and prius models. I mean if it takes less energy to own and operate a Hummer then people would realize this in their bank accounts and we would all be driving Hummers. This didn’t happen which is why Hummer went out of business and was sold.
How about “you really need to use your brain?” Less offensive?
I’m sure you’re capable of seeing that’s personal attack and adds nothing to the conversation.
Do you think it somehow makes your position any stronger/more reasonable to attack the individual rather than or in addition to the comments they make?
Comment by measton
2011-03-02 14:01:18
I somewhat agree with you, a little provocation isn’t bad. The mud flies back and forth on this board.
Point
You were commenting on how funny it is to call prius drivers smug right? I don’t see much of a difference.
Agreed, and I don’t think that’s a good thing. We have a lot of smart people here. There’s no reason to resort to personal attacks. Most here seem quite capable of debating the facts without having to resort to ad hominems to try to make a point.
You were commenting on how funny it is to call prius drivers smug right?
Actually I commented on how the south park episode was funny. You’re right that the episode addresses the smugness of prius owners, but that doesn’t mean I am calling anyone smug, or even found that element of the episode to be funny
Comment by exeter
2011-03-02 17:43:17
Duck, weave and blow smoke all the while constantly accusing everyone of personal attacks. Good grief.
Meatson is just really upset. He thought driving a Prius and subscribing to Green Living Magazine would be enough to save the planet. Like most, ignorance IS BLISS.
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Comment by measton
2011-03-02 20:54:15
You’re not even smart enough to address the points I made.
Seriously you can’t see how the authors bias of assuming the Hummer would live for 300,000 miles and saying the Prius would only live for 100,000 miles is a HUGE bias toward the hummer.
He’s saying that the environmental damage of building 3 Prius cars to cover that 300,000 miles is greater than building 1 Hummer.
The evidence I presented shows that these cars can run for 200 - 300k no problem.
Your total contribution to the conversation has been to post a totally biased article and then to call me gay. Not one comment defending the article. You are not smart enough to present your case. It’s kind of sad.
The “metal” M in the negative electrode of a NiMH cell is actually an intermetallic compound. Many different compounds have been developed for this application, but those in current use fall into two classes. The most common is AB5, where A is a rare earth mixture of lanthanum, cerium, neodymium, praseodymium and B is nickel, cobalt, manganese, and/or aluminium. Very few cells use higher-capacity negative material electrodes based on AB2 compounds, where A is titanium and/or vanadium and B is zirconium or nickel, modified with chromium, cobalt, iron, and/or manganese, due to the reduced life performances[7]. Any of these compounds serve the same role, reversibly forming a mixture of metal hydride compounds.
When overcharged at low rates, oxygen produced at the positive electrode passes through the separator and recombines at the surface of the negative. Hydrogen evolution is suppressed and the charging energy is converted to heat. This process allows NiMH cells to remain sealed in normal operation and to be maintenance-free.
NiMH cells have an alkaline electrolyte, usually potassium hydroxide. For separation hydrophilic polyolefin nonwovens are used
Yes it contains small amounts of rare earths that are very valueable and certainly recycled.
Who posted an article the other day about thieves cutting out catalytic converters from SUVS for the platinum.
You can bet that if it’s valuable it’s recycled.
Your post still doesn’t rise to the level of the Prius being a crock. Explain how the prius is a crock.
Compare how much rare earth metal is in the Hummer vs the Prius and explain why this is bad. Also factor in how much extra pollution is created by the massive difference in fuel use.
Again the bottom line is dollar cost for a car is somewhat propotional to the energy cost in making it. The hummer cost more.
The cost of ownership of a Hummer is probably double that of the prius.
Wow good guess according to Kelly BB the smaller H3 5 yr cost of ownership 43k the prius 24k for the prius. Now the difference would obviously be much bigger for an H1 or 2.
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Comment by AV0CAD0
2011-03-02 14:33:00
Meatson, forget the Hummer, that is what we call an exaggeration. Compare your dirty Prius to a Golf TDI or the new 71 mpg Polo. Your turn to get all mad again.
Comment by liz pendens
2011-03-02 15:32:59
Prius sucks because it it neither here nor there. It is a crappy performing gas car and an anemic electric one, yet it is neither one on its own. In a short time I envision mechanics offering conversions to remove all of the batttery/electric crap so owners can still drive their Prius without investing in an expensive new battery. Hummers are yet another chapter in the crappy car story. Diesel cars are night and day superior to hybrids. I am just disappointed that they are not more readily available in the US.
Comment by measton
2011-03-02 17:44:44
Meatson, forget the Hummer, that is what we call an exaggeration.
Funny you didn’t call it an exageration when you posted it you said it was “scary”
Compare your dirty Prius to a Golf TDI or the new 71 mpg Polo. Your turn to get all mad again. Why?
1. Polo is not available in the US and I believe the 71mpg rating is imperial gallons.
2. I don’t care, I think diesel is a great option in a number of situations and have said so.
Liz
Prius sucks because it it neither here nor there. It is a crappy performing gas car and an anemic electric one, yet it is neither one on its own. ???? I”m still waiting for the issue of rare earth metals to be settled??? You’ll have to be more specific on performance acceleration handling. What exactly do you meen by anemic electric.
Debating you and Avacodo reminds of the saying
Never teach a pig to sing.
In a short time I envision mechanics offering conversions to remove all of the batttery/electric crap so owners can still drive their Prius without investing in an expensive new battery. Mechanical hybrids aren’t an option for a reason.
Comment by AV0CAD0
2011-03-02 19:52:18
Thanks for getting mad again. Your arguments are boring.
There’s no reason to resort to personal attacks. Most here seem quite capable of debating the facts without having to resort to ad hominems to try to make a point.
And we see that AV0CAD0 is clearly not. WTF?
Comment by measton
2011-03-02 17:35:48
Yep
He brought up the topic of the Hummer being a greener option. I pointed out how he was wrong. His response
1. Calling me gay
2. Changing the subject.
Day two of non-witty, LGBT bashing. For the most part, civility reigns on this board and it would be nice to keep it that way. “Arguments” such as
“Meatson is just really upset. He thought driving a Prius and subscribing to Green Living Magazine would be enough to save the planet. Like most, ignorance IS BLISS.”
“Meatson- Stay in Texas. So you bought a Prius, we dont care, I am sure your boyfriend forced it on ya or in ya.”
do little to elevate the debate.
This note is not a flame, but rather a challenge to elevate your game: either intellectually, argumentatively or, at the very least, through destructive bon(s) mots if that is your choice. This “you a poopoo head” stuff is boring. If you’d like to take out your frustrations on me because I have hit a nerve or because you think that I’m a “librul” or “commie” or “tree hugger” or whatever, feel free. If that’s all you can bring, I can’t ask you for more.
MrBubble
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Comment by liz pendens
2011-03-02 15:36:17
guy sounds like a poo-poo head…
Comment by AV0CAD0
2011-03-02 16:33:53
+1
Comment by MrBubble
2011-03-02 16:45:10
That flaccid insult gets “+1″? Come now… Really let it all out.
Comment by AV0CAD0
2011-03-02 19:54:10
OK, +2
I dont think any of us care what Meatson drives. I just wanted to educated him. The Prius is bad for the planet, maybe good for his pocketbook though and good for acid rain fans.
“it takes five years to offset the premium price of a Prius. Meaning, you have to wait 60 months to save any money over a non-hybrid car because of lower gas expenses.”
I first heard this story more than a year ago (On Dr. Dean Edell’s show, strangely enough). So I wonder if that 60-month figure holds today, or if it’s been modified as gas prices rise. I THINK most Prius buyers are trying to save fuel money in the long run, and the environmental stuff is just a side-benefit. Gas prices trending up the way they are, that 60-month number might be cut in half soon.
Now, if the stats you gave hold water, and if there are enough people who only buy the Prius solely for environmental reasons, some changes in production may have to be made.
if there are enough people who only buy the Prius solely for environmental reasons
It may not be that they buy ONLY for environmental reasons, but I’ve certainly encountered my share of people who tout the environmental-friendliness of the Prius, or any other hybrid.
At the least, people should look beyond gas usage and consider the full environmental impact of any vehicle - production, use, maintenance, and disposal.
“At the least, people should look beyond gas usage and consider the full environmental impact of any vehicle - production, use, maintenance, and disposal.”
That’s the thing, we buy cars for many reasons–to impress people, or to get true economic value, but asking us to research the environmental cost of a car purchase is a tall order. Even for Prius owners. As for the ones who tout the environmental friendliness of the Prius, consider that these are the crazy folks who will (hopefully) be driving no faster than 65 on the freeway and keeping their baby in perfectly efficient working order. This is a car that will last for many years and miles–would love to know how that would change the numbers given.
asking us to research the environmental cost of a car purchase is a tall order.
I’m not suggesting everyone should. However, if you’re going to tout the environmental friendliness of your car (or any other purchase/choice), you should look at the whole picture.
My #1 issue is gas usage, #2 is economics I saved money by purchasing these cars. The low 5 year and even lower 10year cost of ownership vs gas alone.
OIL
1. It finances terrorism
2. It costs the country$$$$$$ in lives and treasure
3. It is manipulated by Wall STreet OPEC big oil to strip wealth from the US.
4. The easy cash is used to damage democracy.
I love how people go off about the “premium” paid to buy a Prius. Ummm, we bought a 3 year old Prius for 15K, gets 50mph (10 yr battery warranty), has tons of torque, and we even moved a king-size bedroom set in it, because it’s a hatchback. Dang, we can even buy stuff at Costco with the thing– we just dart around the flippy, lumbering SUVs. So… we paid very little, and we got a lot. And $4 gas isn’t killing us.
$19k house report: New Smyrna Beach, FL
First, thank you to all who gave awesome housewarming gifts! The squirrel is just so cute! This house is an experiment in “bottom-feeding”. Back around Thanksgiving I reached the conclusion (with the help of this blog) that it might be time to buy something “really distressed to dabble in the rental-income realm”. My criteria: Under $20k purchase price, No major repairs needed, Can’t be in a “bad” neighborhood. The house I just closed on yesterday was the only one I could find to meet my guidelines. It was for sale only through an online auction company based in India and the whole thing smelled slightly of a scam from the start. No scam, I toughed-out the process through some trial and error and alot of patience and the deal finally went through.
The place is really not bad at all which is hard to believe I know. Its small (750 square feet), 2 br, 1 bath (which was expanded and tiled with travertine and has granite shelves! - somebody was a huge HGTV fan), the floors are terrazzo and the walls are block so the house is perfect for a bullet-proof rental. Roof is good and there is an attached garage and even a laundry room and a nice back yard with a large shed. The neighborhood is fine, mostly retirees (it is in FL) with some pretty nice houses around. All appliances are there and appear to be good. Being a foreclosure there are some small defects like missing switch-plates and minor stuff. I plan on renting it for $500 - $600/mo.
The bank got stiffed for a $165k loan on this house! On the closing documents quite a bit of the $19k I paid went to the auction company, realtors (they were required), property preservation, and other closing costs so the lender only ended up getting about $14k for this house!
I still think we are nowhere near the bottom.
The bank got stiffed for a $165k loan on this house! On the closing documents quite a bit of the $19k I paid went to the auction company, realtors (they were required), property preservation, and other closing costs so the lender only ended up getting about $14k for this house!
Your story dovetails with one I just heard from a Tucson acquaintance. He recently bought a fixer-upper special in a “make an offer” deal from a finance. He lowballed it at $20k. And they accepted.
BTW, the fixing up is for cosmetic, not structural issues. And he’s quite handy, so he’s doing the work himself.
Congratulations, pbbox. It’s nice when somebody is able to do well in this crazy market. Fascinating that the online auction house is in India–wonder how that came about?
Awesome, pbox! I’ll be right over to fill out a rental app.
All kidding aside, I’ve been looking for another rental in this area. Went to see a house today, listed with a realtor, but before I did, I looked up the public records. No legal action yet, but you could just smell it coming, the owners have lost almost half of the value relative to the actual mortgage they are paying, and that doesn’t include association and other fees. The owners have been living there, apparently. I had a feeling that when I asked why they were renting the place out, I’d be told they are moving out of the country.
So just for a lark, I went to see it. BINGO! The owner is returning “home”, which is not in the continental US. A relative who lives nearby will be collecting the “rent”. Bwahahaha!
The realtor was shocked, I tell you, shocked I wasn’t interested. I told her I didn’t want to take the risk of being caught in a foreclosure. The response? “Gee, I didn’t think of that”.
Filed under: “Fire-trucks need x3 more American Flags…or…My city job is not a cult, darn it!”
Published: March 2, 2011
Costa Mesa votes to lay off half of its workers
By JON CASSIDY / OC Register
While pension debt is the reason given for the layoffs, the workers on the chopping block tend to be toward the lower end of the city’s pay scale.
As a group, the so-called miscellaneous employees are comparatively less of a pension burden than the police and fire departments.
There are more than twice as many miscellaneous employees as safety workers, but their pension obligations are only a third of the total unfunded liability - $39.1 million out of $130.8 million.
The surcharge the city effectively pays on every salary is higher for public safety workers than for other city employees. It’s 40 percent for fire and 38 percent for police, but 18.5 percent for the “miscellaneous” city workers.
The city is running a $1.4 million deficit this year. The cuts, however, weren’t meant to close a one-time gap. They’re addressed at a pile of pension debt that’s growing exponentially.
Out of a $93 million budget, the city is spending more than $15 million on pensions, and that number is projected to be above $25 million inside of five years.
Hundreds of the employees that Roeder’s deputies have brought in over the years could soon be out of work. The council voted 4-1, with Wendy Leece dissenting, to send layoff notices to workers in 18 different offices, from maintenance to information technology to payroll.
Texas has long been a hotbed of controversy on immigration issues. And a proposed immigration bill in the Texas state House is sure to raise more than a few eyebrows. The bill would make hiring an “unauthorized alien” a crime punishable by up to two years in prison and a $10,000 fine, unless that is, they are hired to do household chores.
Which includes yard work.
Yes, under the House Bill 2012 introduced by a tea party favorite state Rep. Debbie Riddle — who’s been saying for some time that she’d like to see Texas institute an Arizona-style immigration law — hiring an undocumented maid, caretaker, lawnworker or any type of houseworker would be allowed. Why? As Texas state Rep. Aaron Pena, also a Republican, told CNN, without the exemption, “a large segment of the Texas population” would wind up in prison if the bill became law.
The bill would make hiring an “unauthorized alien” a crime punishable by up to two years in prison and a $10,000 fine, unless that is, they are hired to do household chores. As Texas state Rep. Aaron Pena, also a Republican, told CNN, without the exemption, “a large segment of the Texas population” would wind up in prison if the bill became law.
Are Texans too lazy to do their own household chores? Or is that “large segment” instead high income individuals that fund Republican campaigns, don’t want to do housework, and are too cheap too pay legal residents to do it?
Yes, under the House Bill 2012 introduced by a tea party favorite state Rep. Debbie Riddle — who’s been saying for some time that she’d like to see Texas institute an Arizona-style immigration law — hiring an undocumented maid, caretaker, lawnworker or any type of houseworker would be allowed.
Problem: Back in 2005, when I began the journey of having my windows replaced, I hired the local franchise of a national company to do the job. And they subcontracted the work to a guy who hired another guy who I doubt was in this country legally.
And whenever the boss wasn’t around, that guy was yakking on his cell phone or chit-chatting with the guy who used to live next door. (He was half of the two-brother team that threatened my plumbers during my ‘09 water line replacement).
Any-hoo, I was less than pleased about being alone in my house with this guy.
Well, after having windows replaced in ‘05 and ‘06, I took a break. Couldn’t afford the cost due to low money on my end.
In ‘09 and ‘10, the window replacement project resumed. And I used the same national company’s local franchisee. This time, their subcontractor was a local company. And the work crew was American. Looked like a bunch of skateboarders, in fact.
I sounded off to the franchisee about the old subcontractor with his hired guy, and their response was that sub didn’t work for them anymore.
BTW, the skateboarders did a great job on finishing my window replacement project.
One of my former teachers just posted this on facebook:
I find it interesting that if we mismanage our money, credit collectors come calling. When the ELECTED officials mismanage our money, they ask those who manage money well to give up their money!
Boise County files for bankruptcy
After more than two months of reviewing their options, county leaders came to the decision Monday. ~ Idaho Statesman
In a move rare in the United States and perhaps unprecedented in Idaho, Boise County is filing for federal protection against a multimillion dollar judgment.
“This was not our first option. This was our last option,” said Jamie Anderson, chairwoman of the three-member Boise County Board of Commissioners. “This protects us so we can continue to operate.”
Chapter 9 protection, from a section of federal code expressly for financially distressed municipalities, means that creditors can’t collect while the county is developing a plan for reorganizing its debts.
Dan Chadwick, an attorney and executive director of the Idaho Association of Counties, said he is not aware of any other county, city or taxing district in Idaho ever filing for bankruptcy. He’s been with the association for 20 years and before that was at the Attorney General’s Office for 10 years, he said.
Bill Nichols, McCall’s city attorney, said he is not aware of any other Chapter 9 filings in Idaho, either.
“I don’t think there has been anyone in the Northwest that has used this, other than an irrigation district in the state of Washington,” Nichols said.
“Government” isn’t something independent of citizens. Unless by “government” you mean government workers, which gets back to the whole discussion about public employees (are you asserting they should be the one to pay for their mistakes? If so, I agree 100%).
Government employees are citizens (usually). So are the taxpayers. There isn’t some entity of the “government” that is independent of the “citizens” in this regard.
Facing a mounting housing shortage, squatters have transformed an abandoned skyscraper in downtown Caracas into a makeshift home for more than 2,500 people.
“This is just the tip of the iceberg; we’re going to see many more cases like this and, unfortunately, a lot of them of them are going to be in Florida,” said Kenneth H. Thomas, an author and banking consultant in Miami. “The failure of Colonial Bank was no small matter; it was a huge failure, and it cost taxpayers billions of dollars.”
It was nice to see Revelstoke’s ad in your blog today. I was there recently and what a fantastic ski area. Looks like it will even beat out Whistler, which is number one in the world.
Their heli skiing in that area has been long established and this new hill is coming right along (one main lift in already).
You should suggest to them that they should make a better airport as I had to drive a long way to get to the town. I dont think their airport is situated well enough to handle big aircraft, but if it could the airport would only be ten minutes from the ski hill (other side of the river).
Also do not like their starting prices of 350m but they are well located.
I hope my critique is taken constructively as I really really dooooo like their ski hill and what it will obviously become. Their potential is amazing - best of luck to them.
In economics, crowding out is any reduction in private consumption or investment that occurs because of an increase in government spending. If the increase in government spending is not accompanied by a tax increase, government borrowing to finance the increased government spending would increase interest rates, leading to a reduction in private investment. There is some controversy in modern macroeconomics on the subject, as different schools of economic thought differ on how households and financial markets would react to more government borrowing.
Usually when economists use the term “crowding out” they are referring to the government spending using up financial and other resources that would otherwise be used by private enterprise. However, some commentators and other economists use “crowding out” to refer to government providing a service or good that would otherwise be a business opportunity for private industry
If the increase in government spending is not accompanied by a tax increase, government borrowing to finance the increased government spending would increase interest rates, leading to a reduction in private investment.
There is some controversy in modern macroeconomics on the subject, as different schools of economic thought differ on how households and financial markets would react to more government borrowing.
I really think it’s talking about borrowing. Although I’m sure the term can be used in many ways.
As stated above, it might be helpful to read what I actually said rather than arguing semantics.
I said that the stimulus “crowded out private investment.” I fail to see how quoting wikipedia’s definition of the economics term “crowding out” is at issue here.
Great, I used common english and you’re telling me that I’m using the words wrong? But even wikipedia supports my usage of the term, if I were to simply say that the “stimulus caused crowding out”, which I didn’t say.
Very interesting…… I got into a debate with a guy who blogged that SUVs were more gas efficient than a Prius because they could carry 7 people rather than 4. Right.. Maybe he should commute to work in a Greyhound bus, that would be even more gas efficient.
It used to be that a whole lot of People in here went on and on about the need for more regulations, not so much anymore. I never could understand their reasoning. I came across this and thought it was perfect, wish I would have had this to throw out long ago:
“central banking blows up economies, leading to more regulation which further concentrates power in the hands of a few, allowing government and society to be even more efficiently run by the elite via mercantilism. It’s kind of a closed feedback loop. The more chaos, the more regulation, the more leverage the elite has to reignite the process. Power is continually being centralized and the middle classes themselves (the elite’s ultimate target) will actually clamor for the regulation that facilitates the process.”
Anyway, somewhere, someone is probably creating a PriusHummer in their garage to get the best of both worlds, likely oblivious to all the rest of the goings on.
P.S. Given that Bernanke realizes the importance to consumers of food and gasoline, how come the Fed systematically ignores these staples when they look at inflation?
What happens when you throw Congress’s top Federal Reserve critic in a room with the central bank’s chairman? Apparently even the definition of the dollar is open for question.
Rep. Ron Paul (R., Texas) questions Federal Reserve Chairman Ben Bernanke Tuesday on Capitol Hill. (Photo by Jonathan Ernst/Getty Images)
Long-time Fed basher Rep. Ron Paul (R., Texas), who wrote a book titled “End The Fed,” squared off Wednesday with Fed Chairman Ben Bernanke at a hearing on Capitol Hill and wasted little time going after the central bank.
“The real cause of price inflation, which is a deadly threat to us right now, is the Federal Reserve system and our monetary policy,” Mr. Paul said.
It was Mr. Bernanke’s first appearance before the House Financial Services Committee since Republicans took control of the House in January, and the first since Mr. Paul took over as chairman of the subcommittee overseeing monetary policy issues. Mr. Paul used the opportunity to accuse the Fed of abetting the government’s growing debt.
“There’s a moral hazard involved here,” Mr. Paul said. “The Fed really facilitates this spending and until we realize this … I think the Fed is involved with our deficit and encourages it.”
Despite his various criticisms, however, Mr. Paul had one question for Mr. Bernanke: “What is your definition of the dollar?”
The Fed chairman, who has spent significant time on the receiving end of congressional
scorn over the last few years, didn’t blink, framing his answer in terms of everyday consumers.
“It’s the buying power of the dollar which is what is important,” Mr. Bernanke said, noting that “consumers don’t want to buy gold; they want to buy food and clothes and gasoline.”
…
Everyone seems to forget that the more money that the average person spends the richer the rich get.
You distribute 1,000,000 to joe six pack, and one year later the wealthy put in their pocket and give joe six pack the sixpacks that joe bought!
Wealthy are wealthy , not because they are wealthy, but because they know how to make and keep money!
Joe knows how to earn money and spend it, not how to increase their wealth!
* By STEVEN BEARDSLEY
* Naples Daily News
* Posted March 2, 2011 at 7:19 p.m.
A decision by a European banking giant to temporarily suspend its foreclosures in the U.S. could affect hundreds of cases in Southwest Florida.
HSBC Holdings PLC announced the temporary move in its annual report Tuesday, citing “certain deficiencies” in the way it prepared affidavits and other foreclosure-related documents.
A federal probe discovered the issues, according to the report.
The temporary suspension means local homeowners being sued for foreclosure by HSBC may have more time to work out their cases. Naples attorney Todd Allen said the move could give him some breathing room in a foreclosure case being rushed through Lee Circuit Court.
“I’m hopefully optimistic it will give us another chance to delay the trial and look into the documents they provided,” Allen said.
Lee County has 418 open foreclosure cases in which an HSBC entity is named a plaintiff, according to its clerk of court office. Collier has 199 such cases.
…
Why wouldn’t scuttling a failed program be a better alternative than continuing it? I would like to hear someone at Treasury explain why some Americans should be forced to help other Americans with their mortgage payments.
Is there some principle of welfare economics that supports taking money away from some households to pay for other households’ living expenses? I am seriously interested, as I must have missed class every time this topic came up, and I have sat through many economics classes and read a few textbooks along the way, too.
Loan modifications in the cross hairs Republicans trying to scuttle 2-year-old program to help homeowners avoid foreclosure
By Mary Ellen Podmolik, Tribune reporter
March 3, 2011
The Obama administration on Wednesday vigorously defended its Home Affordable Modification Program, which faces sharp criticism by Republican lawmakers who want it axed.
Repeatedly calling the housing market fragile, Treasury Department officials said that while the 2-year-old program will not meet its initial goal of saving 3 million to 4 million families from foreclosure, the 25,000 to 30,000 families each month who are receiving permanent loan modifications is cause for it to continue.
“No one is putting forth a better alternative,” Treasury acting Assistant Secretary Tim Massad said on a conference call with reporters shortly before a House subcommittee hearing on four bills designed to terminate the federal government’s foreclosure prevention efforts.
“There are today those who would say we should end those programs,” Massad said. “And they’re basically saying because you haven’t helped enough people, you shouldn’t help more. That doesn’t make sense.”
…
March 3 (Bloomberg) — Obama administration officials launched a campaign to preserve as much as they can of $50 billion in foreclosure-prevention aid for homeowners amid growing criticism from both Republicans and Democrats.
“It’s very important to continue these programs given how difficult the housing market is right now,” Timothy Massad, the Treasury’s acting assistant secretary for financial stability, said in a conference call with reporters yesterday. Tens of thousands of borrowers are joining foreclosure-prevention programs every month, each saving more than $500 on their mortgage payments, Massad said.
The House Financial Services Committee is scheduled to weigh the future of the administration’s Home Affordable Modification Program, or HAMP, and three other aid programs at a meeting today. Republicans want to eliminate funding for the programs, which both they and some Democratic lawmakers say have done more harm than good.
More than a dozen Democratic lawmakers unleashed their frustration onto Treasury Secretary Timothy F. Geithner, Housing and Urban Development Secretary Shaun Donovan and a half dozen other administration officials yesterday during a closed-door meeting that lasted for more than an hour.
“This is an arbitrary, capricious system that kicks hard- working people out on the street,” Representative George Miller, a California Democrat, said in an interview after the meeting. “This administration cannot allow this to continue.”
Initial Projections
About 1.5 million households have begun trial mortgage modifications through HAMP, down from initial projections of 3 million to 4 million, the Obama administration said yesterday.
The effort is “clearly a failure,” Neil Barofsky, special inspector general for the Troubled Asset Relief Program, said at a House Financial Services subcommittee hearing after the report was released. HAMP’s successes “pale in comparison” to the record 2.9 million foreclosure filings in 2010, Barofsky told lawmakers.
…
Republicans want to eliminate the Obama administration’s $28 billion Making Homes Affordable foreclosure prevention program (”HAMP”). Today, a Congressional hearing was held to consider whether it and three others should be shuttered to cut the deficit. The hearing coincided with the release of the January report for HAMP. If Republicans didn’t think the program was worth keeping around before, then the data for January isn’t likely to change their minds.
Just 21,107 new trial mortgage modifications were started in January — the fewest in any month since the program began in the spring of 2009. A slightly larger number — 27,957 modifications — were made permanent. That’s also one of the weakest monthly results since 2009. Finally, of the modifications that were either trials or had been made permanent, 15,825 were cancelled. Here’s a chart that shows the program’s process the Treasury began reporting:
As this program fights for its funding, the steady trickle of between 20,000 and 30,000 new trial modifications per month isn’t likely to help its fate. Although a greater percentage of trial modifications have been made permanent in recent months due to weeding out weak applicants before providing them trial modifications, even the 73% conversion to permanent rate the report boasts only amounts to somewhere between 200,000 and 250,000 new permanent modifications per year. If the numbers of trials continue to decline, as they did in January by 10,000 applicants, then that estimate is optimistic. This is no where near the few million struggling homeowners the program was designed to help.
Through January, 539,493 permanent modifications remain active. During the month 10,094 permanent modifications were cancelled. That cuts the net number of permanent modifications for January to just below 18,000. Again, this pace is far below the expectations initially set by the administration.
…
I will miss Neil Barofsky, who announced last month that he will leave his post as Special Inspector General of the Troubled Asset Relief Program, for many reasons. But one stands out: He recognized that dragging borrowers through a government-run battery of trial loan modifications — as has been done under the Home Affordable Modification Program (HAMP) — is a form of cruelty:
Failed trial modifications often leave borrowers with more principal outstanding on their loans, less home equity, depleted savings, and worse credit scores. And even in situations where they never missed a payment, such borrowers may face back payments, penalties, and even late fees that become due once their trial modification is cancelled. The impact of these added burdens becomes even greater when trial modifications are allowed to continue long past the three-month period called for by the program. While it may be true that some homeowners benefit from “temporary relief” of a trial modification even though the modification ultimately fails, Treasury’s repeated references to the benefits of failed modifications ignores the real and often debilitating harm that such modifications have inflicted on many families, and appears to be little more than an attempt to define specific failures as successes.
The Egyptian and other Arab Nations long standing economies is a perfect example of what happens when to much of the production/wealth of a Country goes into to few hands /
The infrastructures of Egypt are bad ,not enough money going back to
aid the people or create jobs ,same with the schools systems .Not enough buying power
from the people ,not enough jobs with to much population . To much
wealth goes to the mad-hatter tyrants and their elite that ran those
Countries . In Egypt 80% of the income going to food . The people not getting the benefits from being rich oil producing Countries .
It serves those dictators well to transfer the blame to the USA and actually encourage terrorism .
Name:Ben Jones Location:Northern Arizona, United States To donate by mail, or to otherwise contact this blogger, please send emails to: thehousingbubble@gmail.com
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Never ends….
Bitter Bay Staters and health-care watchdogs are seeing red over yet another golden parachute from Blue Cross Blue Shield — this time, an $11 million kiss goodbye for a chief executive who oversaw staggering losses at the nonprofit before his abrupt resignation last year.
The state’s largest health insurer — with nearly 3 million members in the region — yesterday revealed the astonishing severance deal granted to former boss Cleve Killingsworth after he stepped down in March 2010 amid board fears about the company’s $149 million in losses.
His severance and bonus totalled $8.2 million in 2010. He also gets $1.8 million this year, and $925,000 next year, for a total of $10.9 million. Killingsworth’s deal was inked in 2005 as former CEO William Van Faasen was heading out the door with a then-controversial $16.7 million payout.
Killingsworth could not be reached for comment. Red-faced Blue Cross officials said the decision was out of their hands.
http://www.bostonherald.com/news/regional/view/2011_0302signed__hield__delivered__ex-blue_cross_ceo_walks_away_with_11m/srvc=home&position=0
This arch-conservative, union busting, middle class hater thinks this guy should be strung up by his nut sack. And the people that made this ridiculous exit package possible should be right there with him.
Once again we see the “non-profit” scam in all its glory.
But If he left BlueCross with 149 million in profit I wouldn’t have a problem with his pay package..
this time, an $11 million kiss goodbye for a chief executive who oversaw staggering losses at the nonprofit
It is a non-profit.
And as we know a profit number, even at for profit companies, tells us little about what kind of job a CEO has done. Offshoring, government handouts and book cooking seem to be some of the more popular ways to boost profits in the 21st century.
“…Offshoring, government handouts and book cooking seem to be some of the more popular ways to boost profits in the 21st century….”
Or in this case, massive denials of service and unconscionable premium increases.
Speaking of medical costs, I just went to the dentist because a filling in my molar cracked off. I have no insurance. I was told I need a root canal, and then a crown. I’ve had one root canal in my life, and no crowns. The last root canal, seven years ago, cost me $350 cash. There was a cash discount. Now, this dentist (different) is quoting $1,000 for a root canal. I asked about a discount. They’d go 7% so it’s $930. Woohoo- pffffft.
Then there’s the crown. $1350. They’d also offer me a whopping 7% off that. So, $2200+ for one tooth, with no guarantees that it won’t decide to fall out. Or, I can go to Dr. Bloodletter down the road, who is busy tending to the sick and the poor, and get the tooth pulled for $100.
The last root canal, seven years ago, cost me $350 cash. There was a cash discount. Now, this dentist (different) is quoting $1,000 for a root canal. I asked about a discount. They’d go 7% so it’s $930. Woohoo- pffffft.
I’d shop around if I were you.
Why? Because a lot of dentists are really hurting these days. More than a few went into cosmetic dentistry in a big way, and now that the housing ATM has shut down, they’re not getting the smile makeover crowd the way they used to. So, they have to drum up biz any way they can.
Also, it never hurts to get a second (or third) opinion. I did that a couple of years ago and sidestepped a $655 unnecessary procedure.
The problem with getting second and third opinions is they cost $75 each.
The problem with getting second and third opinions is they cost $75 each.
Don’t go, call around. Some will give you price ranges. Tell them the exact tooth and procedures needed. Check out dental schools/clinics. Fly to Mexico.
Comfort Dental in Boulder is great for that kind of thing. Wife just had an emergency root canal that was cheap. I’ve heard that not all offices may be as good, though.
People who live in New York City should first focus on cleaning up the massive dung hill left behind by all the financial shenanigans in their own living room before concerning themselves about the financial affairs of all the little people who don’t live in New York City.
Well, excuuuuuse me, Do you live in New York City? If not, what right do you have to tell New Yorkers what to worry about?
As for “little people who don’t live in New York City” they’re only little if they choose to be. See Boetie’s Politics of Obedience.
NYC has seen more than a few handouts lately. That gives us all the right to backseat drive.
With *ahem* our money.
Bitter Bay Staters and health-care watchdogs are seeing red over yet another golden parachute from Blue Cross Blue Shield — this time, an $11 million kiss goodbye for a chief executive who oversaw staggering losses at the nonprofit before his abrupt resignation last year.
And what did this chief executive do to help improve the health of Bay Staters? My money is on little or nothing.
Which, IMHO, is why health insurance is nothing more than a protection racket. And a largely useless one at that.
Medicare for All!
Well, if his company had $149 million in losses, at least a bit of it must have gone to pay for health care.
It’s a NON-PROFIT. Wouldn’t $149 million in losses be considered a grand success?
It is unsustainable for any length of time, so it is fine for an organization that has a large endowment and wants to spend it down to nothing (Gates Foundation), but is less than ideal for an organization that wants to provide services over an extended (unlimited?) period.
Nonprofit doesn’t describe the expected results of the organization, anyway. It is really a kind of short hand for “any profits may not be paid out to shareholders or other owners.” And they are required to only pay executives reasonable compensation, but reasonable is determined by figuring out what other people in similar positions make and…well…you can guess where that gets you.
think like obama…they would have lost $ 300 million if anyone else had been in charge.
this guy saved the company from $ 151 million in losses.
You should spend more time on your job search, and less on humorless partisan jabs.
relax a little.
just got a phone interview for next Tuesday.
I thought it was real f$ckin funny.
Congrats. While I may not like your politics, I don’t like to see anyone treated like you were, assuming you’re a good person, which is questionable. LOL, just kidding. (I crack myself up)
Comment by scdave
2011-03-01 11:30:50
A depressing 36% had to take positions paying 20% less than the ones they lost ??
Paging Ca.renter…….
————————-
Oh, I’m well aware of it, scdave, and have a number of friends who’ve had to do just that. A couple of them have taken ~50% cuts.
I’m not saying that public compensation needs to stay at current levels, and have suggested on multiple occasions that it needs to be pared back.
What I have a problem with is the vilification of public employees, and the blame-shifting, as if unions had anything, whatsoever, to do with the financial crisis. They are NOT responsible for the crisis, and they are NOT responsible for anyone else losing their jobs or benefits. To the contrary, they are the only ones who have the power to fight against those who’ve destroyed our job base in the U.S.
Before we touch the public sector workers, we need to go after the ones who’ve destroyed our economy. Bankers first, then govt workers.
I think most public employees would be happy to go back to compensation levels seen in ~1995, but only if their purchasing power from 1995 could be restored as well. That means asset prices need to fall. Think the piggish capitalists who caused all our problems would be willing to take the same hit (to 1995 levels) as public sector workers? Not a chance, and that’s why has union workers so riled up.
^^**what** has union workers so riled up.^^
Has warren buffet turned into a mouthpiece for obama?
He is on cnbc right now talking about how great things are and how wonderful this recovery is. I’m getting tired of this guy.
Did you guys know the last president to challenge the FED was JFK?
He bough a railroad at what today is viewed as a very low price and it’s making more profit then even he figured it would…so he does have a skewed viewpoint.
On June 4, 1963, President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve (US Central Bank). Mr. Kennedy’s order gave the Treasury the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” This meant that for every ounce of silver in the U.S. Treasury’s vault, the government could introduce new money into circulation. As a result, more than $4 billion in United States Notes were brought into circulation in $2 and $5 denominations. $10 and $20 United States Notes were never circulated but were being printed by the Treasury Department when Kennedy was assassinated.
With the stroke of a pen, President Kennedy was on his way to putting the Federal Reserve Bank out of business. If enough of these silver certificates were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued.
thank you, good article.
I dont know about you guys but this good old boys club between the FED and WALL STREET is getting real old. They are running this country into the ground.
There are some flaws in that conspiracy theory:
wikipedia
Jim Marrs, in his book Crossfire: The Plot That Killed Kennedy, speculated that the assassination of Kennedy might have been motivated by the issuance of Executive Order 11110.[47] The executive order, which was not officially repealed until the Ronald Reagan Administration, delegated to the Secretary of the Treasury the authority to authorize printing of additional silver certificates, up to a maximum limit previously set by Congress. Since the President himself already possessed the same authority, the order did not endanger the careers of anyone working at the Federal Reserve.[48]
Hey great Alpha,
So now we know that:
It is a myth that Kennedy was assassinated. His family will be so comforted. Someone should alert the media.
It is a myth that Kennedy signed Executive Order 11110.
Must have been Jackie impersonating him.
Just a question, what conspiracy are you referring to?
Jim Marrs didn’t create my post, and I didn’t mention him, his book, or the word “conspiracy”.
Zapruder film has been altered..
http://www.youtube.com/watch?v=w-rcdBNFnGs
If that’s true, it’s very telling, cobalt. Thanks for the post.
Berkshire Hathaway has a $ 5 billion preferred stock investment with GS on which he only pays a 15% income tax rate…not to mention his investment in muni bond insurance.
it’s in his interest to be a mouthpiece for obama and the false recovery.
mr. buffet is a snake in the grass…but it’s ok cuz he donates alot of money.
Nobody thinks Elementary School teachers are villians. Get a grip. Some people simply think they should not be so spoiled as to stand on the shoulders of all their students’ parents. It’s just not sustainable.
I’ve spent the past week reading annual reports of my client companies and competitors. Good luck with getting more money from these Capitalists. They are generally all burning through their reserves, and hoping for a miracle while slashing and hacking away at their own treetrunk. Profits are not being made in the USA, they are being made elsewhere. Horse out of the barn indeed. China is going to save us all BS.
CA, I really feel for you on that 1995 wages are OK as long as somebody makes the cost of living go back to 1995 thing. The sythe that has cut back the wages of your neighbors will not likely negotiate with you on that. Teachers, of all people, should be literate enough to see the writing on the wall.
“Teachers, of all people, should be literate enough to see the writing on the wall.”
Yes. Let us be sensible and face reality. America is in need of money to meet its obligations, but that money is hard to come by, because we’re in a deep recession and most people aren’t making much money, and therefore tax revenue is down.
What’s that you say? There is one group of fellow Americans that is doing quite well? Better, in fact, than ever before in our history? Who is it?
The rich, of course. They’re richer than ever before. And paying lower taxes than at any time in our modern history.
Anybody see a sensible solution to our monetary crisis?
Sensible? Yes. But it has a snowball’s chance in hell of becoming reality. Unfortunately.
Alpha, I’d much rather have seen no bailout or breaks for the Wall Street gang. I’d rather have seen them looted, and their furniture sold on the sidewalk, their officers’ drawn and quartered, accounts siezed and their children sold into slavery. We could still do this.
There wouldn’t be enough though to even begin to pave over the gaping hole left by this gigantic orgy of debt and globalization that the whole stoopid country piled in on. I tried not to participate much, but I think the spreading around of the pain is pretty much a done deed.
On the contrary, simply removing the income cap on social security taxes would make them solvent at current retirement age for the foreseeable future.
And all we’d be asking is for the rich to pay the same rate as we already do.
They’d still be rich.
How’s that for shared sacrifice?
That would suit, but it doesn’t sound like as much fun and carnage as I was imagining.
Wisconsin grassroots groups have announced movents to RECALL key Wisconsin robber Baron Senators that stand with King Walker, the Decider II .
The Chair of the Wisconsin Democratic Party and The Service Employee Union International(SEUI) have just signed on for the rumble.
Get out your checkbook Koch, the little People of Wisconsin aren’t Going Down without a Fight!!
The small town meeting that I wrote about in Dodgeville, Wi on Monday night sure made an impression on supposedly Dale Schultz(R) as he mentions it in this radio interview about Walker and his Party over-reaching and leaving the opposition to pound sand.
It is worth listining to what he says…
http://tinyurl.com/47ncxpd
Still, if he votes with Walker’s gang on this bill, moderate or not, we are going after him too…Full Freakin’ Bore.
So there !!
Ooops…that was supposedly “moderate”.
Hey, I’m plotting War here !!
Little people don’t need to fight to go down. But can they balance a beer on their heads?
The sythe that has cut back the wages of your neighbors will not likely negotiate with you on that.
———————-
That “sythe” (corporatists/financial elite) is exactly why we need stronger unions. You’re being directed (by them) to fight the wrong guy, Blue Skye.
“A depressing 36% had to take positions paying 20% less than the ones they lost..”
This is the antithesis of the Fed’s recent press rel
eaieses.Businesses getting pricing power, Fed survey finds
WASHINGTON (MarketWatch) — Some manufacturers and retailers are finding that they can raise their prices, which is one key pre-condition for inflation to take hold, according to the Federal Reserve’s latest Beige Book survey of economic conditions released Wednesday.
http://www.marketwatch.com/story/businesses-getting-pricing-power-fed-survey-finds-2011-03-02?dist=countdown
> Before we touch the public sector workers, we need to go after…
What, multitasking isn’t allowed?
Multi-tasking is rarely, if ever, efficient. It leads to more mistakes, and ends up costing more time and money in the long run.
Deep water drilling update article: http://www.ogj.com/index/article-display/4036509987/articles/oil-gas-journal/general-interest-2/20100/march-2011/industry-still_skeptical.html
But don’t worry the MSM is busy telling us that the oil price rise will not derail the recovery. BTW, I think drive to you can afford a house is going to be very difficult when you cannot afford the gas.
BTW, I think drive to you can afford a house is going to be very difficult when you cannot afford the gas.
Which is why nabes like this one will prove to be quite popular in the coming years. It’s close to Downtown Tucson. And to the University of Arizona.
Quite a few people live here because it’s possible to get along quite well without a car.
BTW, Slim’s not the only one in this camp. Far from it. There’s quite the bicycling contingent on my street. Including one guy who rides no-handed whilst playing his flute. And he’s a very nice fellow and a great musician.
That’s been the pattern around here, too. Inner-ring suburbs near downtown and the university haven’t dropped much in price, if at all. Even the crappier ones. (Downtown condos are dead though. Still way overpriced.)
Bernanke Signals No Rush to Tighten When Asset-Buying Ends
Bloomberg March 2, 2011
Federal Reserve Chairman Ben S. Bernanke signaled he’s in no rush to tighten credit after the Fed finishes an expansion of record monetary stimulus, seeing little inflation risk and still-slow job growth.
A surge in the prices of oil and other commodities probably won’t generate a lasting rise in inflation, Bernanke told lawmakers yesterday in semiannual testimony on monetary policy. A “sustained period of stronger job creation” is needed to ensure a solid recovery, and the Fed’s benchmark rate will stay low for an “extended period,” he said.
The comments suggest Bernanke will keep the Fed on course to complete $600 billion of Treasury purchases through June under the second round of so-called quantitative easing. He pledged to act if higher commodity prices persist, spurring inflation and increasing inflation expectations.
It is interesting to see how the FedCartel wins on the downswing as much as they win on the upswing. Either way, they transfer wealth to themselves.
The Dark Ages lasted for “an extended period”, or about 1000 years.
Only in Europe.
You mean it was “contained”?
One trick pony.
Money is fungible.
A husband to racks up gambling debts at the racetrack. Rather than reduce expenses by quitting the gambling, he beats his wife because she spends money on food for the kids.
A megabank loses lots of money of CDO swaps. Rather than discontinuing the CDO swap unit, the megabank takes it out of the hide of the depositors with higher fees and interest rates in it credit card unit.
A government spends money on reimbursing patients in an enhanced healthcare program which effectively enriches an unneeded middleman without improving actual care. The government realizes this and eliminates the middleman, returning to traditional care. The government is shellacked in the media and in the ensuing elections.
A state government lowers taxes on a corporation and racks up debt because of it. Rather than bringing taxes back to its historially sustainable level, the state blames the pensions of the middle class.
Thirty UPS drivers labor for a year. Scrimping and saving, they slowly build a $300,000 saving account. A man with a tan creates a loan for a 2-bedroom condo at $300,000 with one 3-second signature. The condo debt is backed by the government, who steps in when the buyer never makes a payment. The $300,000 in labor is worth no more than the $300,000 in the loan.
Money is fungible.
“A megabank loses lots of money of CDO swaps. Rather than discontinuing the CDO swap unit, the bank takes it out of the hide of the depositors with higher fees and interest rates in its credit card unit.”
True. But the depositors will willingly line up to sign up for these credit cards. The game keeps on going on for the megabanks because Joe6pack keeps on wanting to play. It is up to Joe6pack to stop his personal screwing by the megabanks - or by anyone else.
The collective screwing - which is what most of the rest of your post is about - well, that is a different matter. Joe6pack - and the rest of us - will have to address this collective problem collectively.
Good post, BTW.
I believe that depositors line up to sign up for credit cards because the stores are raising prices to market rates. Market rates are going up… because depositors have credit cards. And around it goes. The bank isn’t built directly into this; the structure is already there,* like a potential spiral staircase of collective screwing. The bank merely provides the energy to for the buyers to climb the staircase ever upwards — and the bank simply takes a little cut at each go-round.
I’m feeling very metaphorical today…
————
*The structure is built out of people who want stuff, and stores who want profit.
Good post, oxide.
“The $300,000 in labor is worth no more than the $300,000 in the loan.”
So very true. Saved money has no competitive advantage over credit. The great expansion of credit, with interest rates near zero, is an antifungal applied to our savings, making them worth less and less of their exchangable counterparts.
“Saved money has no competive advantage over credit.”
But it does have a competitive advantage over falling wages. And this is the envrionment we are now immersed up to our necks in, an environment of falling wages.
A penny saved is a penny earned and all that. Also, a penny not owed to someone else is equivilent to a penny earned.
Yeah, but now a penny defaulted-on is also a penny earned. That is what government guarantees and too big to fail have created.
“Yeah, but now a penny defaulted-on is also a penny earned.”
True dat. But your operating word is the word “now”.
Now will not be forever. And what these defaulters are doing now may come back to bite them later. The larger this pool of defaulters grows the more profitable it will be to find ways to dip into this pool and extract some money.
but now a penny defaulted-on is also a penny earned
Not only that, the penny defaulted on isn’t taxed, while the penny rightfully “earned” is.
I need a drink.
+1, drummin. +1.
A penny saved is a penny earned and all that. Also, a penny not owed to someone else is equivilent to a penny earned.
Yet another reason why I enjoy the HBB so much. The common sense about money and finance is something to behold.
Thank you, one and all!
And a dollar not spent is more valuable than a dollar earned.
A silver dollar is worth more than the dollar saved in the bank.
“A silver dollar is worth more than the dollar saved in the bank.”
That is a good indicator for a future decrease in the silver content of ’silver dollars.’
…And a freshly-printed fiat dollar just rolled off the FED printing press (not worth the paper its printed on) is worth the same as a dollar that has been saved for 100 years.
“…is worth the same as a dollar that has been saved for 100 years.”
Right. But the dollar saved for 100 years used to be worth maybe 33 times as much…
““Saved money has no competive advantage over credit.”
Sure it does. I’ve boughten several large ticket item in 2010 and saved because it was a cash deal and also saved because not taxes were charged.
Great doing business outside the purview of the big box stores and government.
“is an antifungal applied to our savings, making them worth less and less of their exchangable counterparts.”
Heh!
Quantitative Easing acts like a fungicide on our fungibles. Fun, funny stuff!
(Mushroom walks into a bar, goes up to a table full of women, says…”Hey! I’m a fun guy!”)
“A state government lowers taxes on a corporation and racks up debt because of it. Rather than bringing taxes back to its historially sustainable level, the state blames the pensions of the middle class.”
Exactly how little taxes do the Koch brothers pay in Wisconsin? And how large a campaign contribution did they provide Governor Walker?
Enquiring minds want to know.
Thirty UPS drivers labor for a year. Scrimping and saving, they slowly build a $300,000 saving account. A man with a tan creates a loan for a 2-bedroom condo at $300,000 with one 3-second signature.
The sweet, sweet nectar of the “Single-Deposit Transaction” can be very
attractiveaddictive to the human “animal” senses.“Fear the Boom and Bust” a Hayek vs. Keynes Rap Anthem
Will Hayek finally come out on top of Keynes at the end of the bust at hand?
This must be a great plan, as liberals are kicking and screaming while Republicans are smiling.
GOP Praises Obama on Housing Plan
By AP / ALAN FRAM Tuesday, Mar. 01, 2011
President Barack Obama speaks about the monthly employment numbers flanked by Treasury Secretary Tim Geithner at Andrews Air Force Base in Maryland.
MANDEL NGAN / AFP / Getty Images
(WASHINGTON) — The Obama administration’s plan to gradually dissolve ailing housing giants Fannie Mae and Freddie Mac and to shrink the government’s role in the mortgage market drew praise from House Republicans on Tuesday. The GOP chairman of the House Financial Services Committee called the proposal a good starting point for bipartisan negotiations over a housing overhaul.
The positive reaction came as Treasury Secretary Timothy Geithner told the committee that the Obama administration wants Congress to approve legislation within two years that would slowly dismantle Fannie and Freddie. “Our hope is Congress will work with us to find a consensus for a long-term solution,” Geithner told the lawmakers. See pictures of Americans in their homes.
The positive words came at a hearing held three weeks after the Obama administration released a report calling for a stark reduction of the federal role in housing. The nation’s housing market has been battered in recent years by low home prices and vast numbers of foreclosures, and politicians from both parties want to find a way to have private lenders not the government bear more of the burden. “You don’t want to run a system where the taxpayer is on the hook when things go bad,” Geithner said.
Fannie and Freddie guarantee or own about half of all U.S. mortgages. Along with other federal agencies, they played a role in nearly 9 of 10 new mortgages over the past year, as private lenders have remained nervous about making new loans. The two companies nearly collapsed in 2008 as the housing market crumbled, but have been kept alive with $150 billion so far in taxpayer dollars.
As part of its plan for slowly eliminating Fannie and Freddie, the administration wants to lower the size of mortgages they can buy and raise the fees it charges proposals designed to help private lenders move back into the mortgage market. “The cost of a mortgage is going to be higher in the future,” Geithner said.
…
And they will finally see some success in their quest to provide “affordable housing.”
It kept a lot of government employees busy and funneled money to O’s supporters, I’m sure. So, mission accomplished.
Ummm, NYCBoy,
Most of that “money” flowed through to the financial institutions, as the GSEs bought (at par, in most cases) or guaranteed debt that they owned.
U.S. promises unlimited financial assistance to Fannie Mae, Freddie Mac
By Zachary A. Goldfarb
Washington Post Staff Writer
Friday, December 25, 2009
The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress.
Is that constitutional? Never mind. He’s a constitutional scholar. I’m sure he knows the answer to that one.
Is that constitutional?
I would think not. Constitutionally, congress holds the purse strings, no?
+1zillion.
This was never constitutional. Congress _should_ challenge this to prevent the encroachment on their mandate.
A politician’s pledge is not worth the paper it is written on.
Congress _should_ challenge this to prevent the encroachment on their mandate.
I wonder if the taxpayer has standing to sue the executive and take this to the supreme court?
Polly? I have a feeling there are laws exempting the executive branch from being on the receiving end of such a suit?
They don’t have to challenge it, if my challenge you mean go to court. All they have to do is forbid any money go to supporting F&F. It can be done by law. I’m not even sure that is needed. The president “pleding” anything is subject to the House appropriating the money. I don’t think there are that many billions unallocated in the budget at all.
Taxpayers never have standing to sue the government on the way revenue is spent. It is a long standing doctrine.
Taxpayers never have standing to sue the government on the way revenue is spent
Is this not a different issue, though? It’s not about allocation of funds by Congress. I’m not sure how one would even phrase it.
Who has standing to sue when the executive (or legislative, or judiciary) oversteps their constitutional authority?
The branch that they stepped on, I think. At least that is what the analysis has been on the recent administration decison about Defense of Marriage Act. The administration is still enforcing the law (not letting a federal employee married to a same sex partner in MA put said spouse on his or her health insurance) but said they wouldn’t defend the law in court if someone sued because they think it is unconstitutional. They said they are still enforcing so the legislature could take up the defense.
No idea how this would work with the judicial branch, though. If the Supreme court says it is Constitutional it is.
Merry Christmas!
The Obama administration’s plan to gradually dissolve ailing housing giants Fannie Mae and Freddie Mac
Uh-oh, look out, Barack, because Slim’s puckering up and wants to kiss you. And Slim’s not a huggy-kissy kind of gal. (I’m more like a gila monster — just ask my neighbors.)
You can probably put away the lip gloss Slim. I’m guessing Fannie and Freddie will continue under a different name. There is no way the government will get out of housing.
Exactly. There are too many insider fortunes to be made and maintained.
“speaks about the monthly employment numbers”
How can he speak about the employment numbers? Aren’t they coming out on Friday?
Speaking of employment numbers, one of my least favorite prognosticators, the guy from Challenger, Grey and Christmas was on NPR again this morning. He said that the announcements for future layoffs was through the roof which is a far cry from his usual cheerleading. Seems that the state and local layoffs do have an effect on the numbers. He couldn’t seem to find a way to spin this one positive.
And the feedback loop grows.
Yep.
I’ll bet private sector workers are really gonna benefit from all the public sector cutbacks. Seems they think that cutting the spendable income of public sector employees (with ~90% of their money going directly back into their local communities) is going to make them rich!
Seems they think that cutting the spendable income of public sector employees (with ~90% of their money going directly back into their local communities) is going to make them rich!
Who ever asserted something so ridiculous?
Public sector cuts = reduction in taxes (or lack of raise in taxes) = private sector workers have a chance of keeping their heads above water.
Seriously, can we lay off the hyperbole and strawman arguments here?
I guess they need to write bad checks and demand banks honor them. After all these are “heroes” we are talking about!
Seriously though, I am out of the “union” fight. It is frankly ridiculous. I think Government workers are SO fantastic they deserve millions a minute and billions a year in pensions each, but given the economy continues its downward slide, that may be up to the Chinese government and not any of us here.
There are a lot of smart people visiting this blog. We need to figure out what can be done rather than what cannot be done to fix things.
drumminj,
Let’s just say that *expenses* (not taxes) would be lowered by 10%. Do you think workers’ taxes would be lowered by 10%, or do you think some other new campaign contributors (developers/builders/big box stores getting new credits or grants, etc.) might welcome themselves to that 10%? Look at what’s going on in WI. The Koch family wants to buy publicly owned assets for pennies on the dollar…NO BID!!! If the govt loses revenue from those assets, that cuts into the pie that you think you’re going to get a piece of.
What might end up happening is that taxes go UP for working stiffs as “favors” are doled out to large contributors, and it won’t necessarily be going back into your community, it could go to China, or into commodities, or RE somewhere else, etc.
I really think you underestimate what unions do. Even though it might be in their self-interest, unions DO watch out for “favors” being handed out to private entities. And because of their union status (protection), they’re able to do something about it.
Even though it might be in their self-interest, unions DO watch out for “favors” being handed out to private entities. And because of their union status (protection), they’re able to do something about it.
I think you’re painting with a *REALLY* broad brush here. Unions in and of themselves do no such thing. Certain union members might, but they would do it whether they’re union or not. I challenge you to prove the union is a factor at all.
And then we can look at all the things that public employees do that are BAD for the taxpayer, yet they’re protected by the unions.
No-bid contracts are bad. I’m not arguing against that. By if public employee compensation continues to rise, then taxes are certain to rise as well
ie I don’t see unions fighting to take the money from elsewhere in the system. If teachers unions were fighting to remove levels of administration to reduce costs, I’d be behind them 100%. Instead, they’re always out there, pushing for every bond measure “for the children”.
Good time for a re-post (sounds like Moody’s got it right for once):
Fannie and Freddie aren’t going anywhere
Slate
Feb 15 2011
Another way to think about the plan is that the administration has thrown down a gauntlet. The Republicans can pick it up or not. Probably they won’t. (There’s a reason the GOP isn’t protesting the plan.) The housing market looks right now as though it will head downward again. No politician wants to be blamed for that. And as HUD Secretary Shaun Donovan has pointed out, a plunging housing market would increase Fannie and Freddie’s losses, because the homes they sold would be worth less, and because more borrowers would default on their mortgages.
Another obstacle to quick action is that if the government were to make it clear, right now, that it wanted Fannie and Freddie’s business to shrink, then the rating agencies might downgrade Fannie and Freddie’s debt. That would immediately throw the housing market into a tailspin, because Fannie and Freddie would no longer be able to raise money to guarantee new mortgages. In a recent report, Moody’s said that even if “political consensus [began] building around a plausible scenario that diminishes [Fannie and Freddie's] importance,” the government would have to explicitly guarantee Fannie and Freddie’s debt in order to maintain their current triple-A rating. Doing so would add trillions to an already out-of-control national debt.
Given this unappetizing platter of options, the Obama administration and Congress are likely to do nothing. At the Brookings Institution, one questioner asked Geithner how he would answer the charge that “this is never going to happen.” Geithner began: “Well, I think that’s a good question.”
designed to help private lenders move back into the mortgage market. “The cost of a mortgage is going to be higher in the future,” Geithner said ??
a LOT higher….Did I say a LOT ?? Oh, What I really mean a LOT,LOT higher…Just wait until the pirates in the brick ships are making the only mortgage loans…..
Hello Mr. Banker, my name is Ben Dover….
Watchdog takes last jab at housing rescue effort
WASHINGTON | Tue Mar 1, 2011 6:18pm EST
WASHINGTON (Reuters) - The U.S. Treasury’s outgoing bailout watchdog took his last shot at the Obama administration’s program to keep Americans in their homes and questioned whether taxpayer funds should continue to be used for an ill-conceived housing plan.
There is “near universal agreement that the program failed to meet its goals” and the current debate centers “mostly on whether the program should be terminated, replaced or revamped,” said Neil Barofsky, the top government auditor for the $700 billion bank bailout fund, in prepared remarks to Congress.
Barofsky, who will leave as the Troubled Asset Relief Program’s Special Inspector General at the end of March, is due to testify before a Congressional housing subcommittee. His testimony was posted on the House Financial Services housing subcommittee’s website on Tuesday.
House Republicans are trying to kill the administration’s Home Affordable Modification Program (HAMP), which was designed to help provide permanent loan modifications for distressed homeowners.
The program provides cash incentives to mortgage servicing firms to lower monthly payments for borrowers to no more than 31 percent of their income. So far, it has only provided relief for 521,630 homeowners in the nearly two years of operation.
Treasury initially predicted that HAMP would help 3 million to 4 million at-risk homeowners avoid foreclosure.
“HAMP has been beset by problems from the outset and, despite frequent retooling, continues to fall woefully short of meeting its original expectations,” Barofsky said. “Treasury, it seems, stands alone in defending the status quo,” he said.
…
U.S. Treasury Secretary Defends Beleaguered HAMP
Posted on March 2nd 2011
Among the many things that Republican congressmen and women have thrown on the chopping block in their efforts to bring down the national budget and get a handle on the national debt is the Obama administration’s much-maligned Home Affordable Modification Program (HAMP). The program was intended to help “as many as three to four million financially struggling homeowners avoid foreclosure by modifying loans,”[1] but in reality the program has led to only 521,630 permanent loan modifications, with many of these “permanent” modifications lapsing back into default[2]. Despite all this, however, U.S. Treasury Secretary Timothy Geithner came out swinging today in HAMP’s defense, saying that ending the program would “cause a huge amount of damage” and “I would recommend against it”[3].
Geithner also recently warned against “scaling back the federal role [in the housing market] too far”[4]. He claimed that it would make housing more costly and leave taxpayers “on the hook” for losses while handcuffing policymakers, adding that “you would leave the [U.S. government] with a more limited set of tools to protect the economy and innocent victims in the face of the next severe recession,” he said.
It sounds like Geithner does not have any real plans to exit this down economy. He’s already planning for the next disaster. Do you think that this is a good way to approach the housing market in general and the role of the federal government in the housing market in particular?
…
OTOH, we could read it as an indication of where he thinks the economy is headed in the future…down.
I am quite sure that federal support of home loans is essential to support the value of the Geithner homestead in NYC. I’m far less convinced it does much for Main Street America in flyover country, aside from sucking away their wealth to help coastal residents purchase homes that cost north of $500,000.
And so far as putting taxpayers on the hook for losses, whose bright idea was it in the first place to summarily slap federal guarantees on so many mortgages in the wake of the Fall 2008 financial collapse? “Privatize profits, socialize losses” continues as the modus operandi, not to mention protection of “innocent victims” of their own stupidity.
Federal support for home loans essential, Geithner warns
By Zachary A. Goldfarb and Dina ElBoghdady
Washington Post Staff Writers
Tuesday, March 1, 2011; 10:39 PM
Treasury Secretary Timothy F. Geithner used his strongest language yet to warn on Tuesday about the dangers of a mortgage system that does not include a significant role for the government.
Two weeks after releasing a white paper on how to overhaul the badly battered housing market, Geithner said scaling back the federal role too far could make housing more costly, keep taxpayers on the hook for losses and handcuff policymakers.
“You would leave the government of the United States with a more limited set of tools to protect the economy and innocent victims in the face of the next severe recession,” he said in testimony to the House Financial Services Committee.
…
The ONLY innocent victim in this entire mess is the taxpayer.
Yes, handcuff policymakers and their banking buddies too. Yes, I am talking about you Timmy!
makes you really happy to be sending the govt a check? the IRS was created so the govt could pay interest on the money it borrows from the FEDERAL RESERVE.
So when the FED pisses away your money on wall street crooks how do you feel?
It seems to me that Mike was talking out against such practices. I would guess it makes him angry.
yes I think he is as disgusted as I am.Just trying to vent.
“Geithner said scaling back the federal role too far could make housing more costly…”
That is a simple lie, if he means more costly for the buyer.
You would think the Republicans would catch on to it, and challenge Mr Know-it-all Non-economist in his assertion that federal subsidies are necessary for the U.S. to have a functioning housing market. The evidence suggests that many other countries with less subsidized housing markets have far healthier housing markets than America has.
But a good propagandist never lets the facts stand in the way of his message.
The evidence suggests that many other countries with less subsidized housing markets have far healthier housing markets than America has.
Remember nhz, the HBB-er from the Netherlands? He/she went on at great length about how government policy in that country propped house prices up at unaffordable levels.
For a long, long time, too…
Prof, it is odd to see you consider the well being of the taxpayers. Why do you hate “homeowners” so badly?
The government will not get out of house lending. There is too much money and power to be had. It will morph into something else such as The Department of Homeland Homes.
Why don’t you focus on discussing issues and refrain from attacking other posters? Is it that you can’t come up with a coherent argument?
Please teach me how to come up with those coherent arguments like yours.
My argument is that the government, once in something, will never get out of it. Not unless there is no other way possible. That story ties into other stories, some of which you have been incredibly intransigent on. It seems that you pick and choose when to have certain beliefs.
As somebody that believes in big government I am shocked that you wouldn’t want them in housing.
The articles I post are generally not meant to represent my beliefs. They are merely intended to stimulate discussion. I do my best to post as many articles as possible that challenge the entrenched bigotry on display in others’ posts.
Wow. Is that a shot? I’m sure you don’t have any bigotry at all.
I don’t. I am above bigotry…
mostly.
But alas, not above personal attack.
Nobody is perfect; particularly, I am not perfect.
Nobody is perfect;
perhaps then you shouldn’t be telling people to refrain from personal attacks if you yourself aren’t willing to do the same.
Pot meet kettle.
PB is one of the most insightful and educated posters here. I’ve never seen him make personal attacks unless someone asks for it, and usually they’ve asked for it multiple times.
I’ve never seen him make personal attacks unless someone asks for it, and usually they’ve asked for it multiple times.
I see…so he only does it when you think someone’s “asked for it”, so it’s okay?
Others seem capable of remaining respectful even when individuals here “ask for it”. But that’s too much to ask of “one of the most insightful and educated posters” here. Got it.
When I say they “ask for it,” it’s because they’ve made personal attacks first.
It’s fine to disagree, but too many people are intentionally offensive, and that degrades the quality of conversation we can have here.
but too many people are intentionally offensive, and that degrades the quality of conversation we can have here.
Perhaps you should call out your beloved PBear when he engages in this behavior, as he most certainly does.
Well, ain’t that calling the kettle black!
Seen any trolls on the board lately, PB?
Just NY City Boy.
Geithner lived in the suburbs, not in NYC.
Close enough for government work.
“the next severe recession”
Does he know something we don’t know? Like maybe the cuts in government workers are the next leg down.
Note: I am not a government worker, but see the possibility of being impacted by the reduction in spending triggered by this round of layoffs. And I don’t foresee private companies picking up the slack and hiring these folks.
Happy2bHeard …..I was thinking about your point the other day .
At least the government sector workers are spending money and
putting more money directly into our economy with their incomes
(that just happened to keep up with inflation better than the private sector ). Services go down in firing a bunch of public workers ,but also
their spending dollars don’t go into the economy . What sector is going to hold up the economy and tax base …..Health care (?)…no way .
Do you think the Billionaires are going to be adding to the public coffers (taxes ) or directing capital to private sector workers or
investing in America with new manufacturing plants with good wages
to people who actually spend it in the economy . Also the more people who are on food stamps or need taxpayer paid health care
represent more drain on the public coffers ,The classic Republican solution for the needy is that private voluntary charity can take care of it .Sure bet ,as if enough could be raised privately ,especially in a recession .
The manufacturing jobs we lose and the outsourced jobs we lose
and all the income flow and taxes that would go to our Society is lost ,and we are not compensated for that damage from the billionaires because Government is giving them the tax breaks .
There once was a time in America when Industry contributed to the overall cash flow to our economy and tax coffers ,but now
they are just a blood-sucking drain on it . Just as the casinos of
Wall Street with their Ponzi-schemes became a blood-sucking drain
on our Society by the big black hole of losses they created .Industry dumped and betrayed America many moons ago ,and they keep on
wanting to raid the coffers now . Once a thief ,always a thief is my motto .
And as Warren Buffet looks to do some more of his Corporate raids to make a extra buck ,while I don’t see him investing in new manufacturing plants ,I view him as one of the parasites of Society now .At least he was honest enough to say once in essence that the Government should tax him .
I don’t mind supporting business at all if business is giving back to the Society in the form of good jobs ,benefits ,and wages and paying taxes and making all the cash flow as it should . However when Industry just becomes the takers and no-give back ,as well
as the Ponzi-schemers and mis-directions of funds Masters of the Universe and bubble creators ,as if the government and the people are their personal pawns ,as if they don’t owe anything to the Society that gave them their start to begin with and support them with government services ,than the line has been crossed with me .IMHO ,you clean up these guys ,make them pay their proper share and all other problems get solved easier , This taking from one sector to prop
up another sector is just thief and a destroying of the “Balance “,the Balance that allows for a actual middle-class with a somewhat decent standard of living . I want the looted money back ,I want tax share corrected ,and I want jail sentences and reform of
the Wall Street casino . Don’t talk to me about taking it out of the hide of teachers ,talk to me about why the private sector is being reduced to slave wage workers with no benefits by the monopoly power of Industry today . Talk to me about them paying their obligations and liabilities first . Just get the ill-got,stacked deck gains back and that will pay for the short-falls .
Just my 2 cents ……it can be attacked no other way .
Comment: As long as our economic policy is steered by propaganda rather than principles of fairness, I doubt the Fed-managed long-term downtrend in American competitiveness will end. Keep up the good work, guys!
Case in point:
“Federal support for home loans essential, Geithner warns”
Why should federal housing policy systematically discriminate in favor of home owners and against renters?
Oh, I forgot: Home owners are rich important people, renters are poor and generally worthless.
It all makes sense now.
Can you tell me one thing that has changed to warrant an economic recovery besides the FED catering to wall street by creating more money?
Is all that money they printed suppose to make it down to the serfs or wage slaves?
I guess you never heard of trickle-down economics — the kind Ronald Reagan put into force to start the trend towards the largest gap between rich and poor in America since the Great Depression?
What about the trickle down belief that if you pay government employees high salaries it is good for the economy because it will trickle back to the taxpayer?
“What about the trickle down belief that if you pay government employees high salaries it is good for the economy because it will trickle back to the taxpayer?”
That hypothesis is currently being tested at the state level in California, and may soon get a repeat of the federal-level test that was conducted in 1995.
My guess is that with lower government paychecks, the economy is more likely to go into a double-dip recession, and housing prices in DC are likely to fall by more-than-expected as a consequence, but I don’t have a crystal ball that lets me say this with absolute certainty.
Stabenow wants Congress to lose pay in shutdown
Published: Tuesday, March 01, 2011
By Charles Crumm and Carol Hopkins
For the Daily Tribune
U.S. Sen. Debbie Stabenow wants members of Congress to forfeit their pay if the federal government shuts down over a budget impasse.
The Michigan Democrat said she’s sponsoring legislation to stop lawmakers’ paychecks if there’s no deal to keep the government running by Friday.
“If there is a government shutdown, it’s very important that lawmakers be held accountable and members of Congress see their paychecks stopped along with everyone else who is affected,” Stabenow said by statewide conference call Tuesday.
A shutdown, while it wouldn’t affect all government operations, would stop the paychecks of hundreds of thousands of federal workers, including those of her staff and other staff in Congress, the senator said.
“Members of Congress have special treatment,” Stabenow said. “If we were shut down, paychecks would stop. It’s not right; it’s not fair that members of Congress are exempt from that happening.
“Lawmakers should be held accountable and feel the same impact under a government shutdown,” she said.
…
So the serfs continue to be debt slaves after a couple crumbs trickle down to them?
Belief? Our economy is ~70% consumer driven.
That’s not a belief. It’s a fact. And has been for decades.
I’m tired of this all-or-nothing crap. The answer is in the middle. The answer is ALWAYS in the middle.
Federal support for home loans for first-time buyers with a stable job who intend to live in the house is essential. This one actually favors renters by helping to lift renters out of renting.
Federal support for home loans for second and third homes for buyers who are already a few rungs up the property ladder and can afford it just fine by themselves is asking for a financial meltdown.
Federal support for home loans for homebuyers of any stripe for $700K crapshacks in Bakersville is what can be read off the price tag on the suit of a corrupt politician.
Federal support for home loans which were bought sight unseen from private entities who originated the loans without due diligence or risk holding or seasoning is more effective in destroying a country than any plot dreamed up by a bunch of airline pilots from the Middle East.
So which one is Geithner advocating?
“Federal support for home loans for first-time buyers with a stable job who intend to live in the house is essential.”
That is what Fannie Mae and Freddie Mac were supposed to do. Unfortunately, the federal subsidies reflecting in their and other
programs to make homes more affordable stimulated demand to the point where first-time buyers could not afford to purchase a home.
Why is it that you think it is essential for the government to run programs to make housing unaffordable to first-time buyers?
Excuse me, I wasn’t advocating for “federal subsidies in this and other programs,” okay? Your assumption that I support *every* government program is precisely what what I mean by an all-or-nothing mentality.
I was saying that this ONE program is essential to lift some renters* out of rentership. Presumably their numbers, compared to the overall housing market, is too few to drive prices into a bubble. FHA did it for years without causing a bubble. It was only when the sheer masses got involved with all those “other programs”** that the SHTF.
—————
*How many renters have a stable job, a 3% down payment, and intend to live in the primary house? Maybe one fifth of the ~30% who rent?
**Low interest rates (thanks Maestro), MID, tax breaks on profit from selling (flip me!), implied guarantee on crap loans (which removed down payment safety net and promoted mortgage-by-FICO alone), loans up to $417K (too high), banks allowed to lend on 30:1 leverage on reserves, and other programs and deregulatory failures.
“Your assumption that I support *every* government program is precisely what what I mean by an all-or-nothing mentality.”
I never said you support *every* government program, just that you think the first-time home buyer market should be subsidized; this doesn’t seem fair to non-first-time buyers.
Why do you advocate discriminatory housing policy?
Presumably because the non-first time buyers were first-time buyers themselves at one point, and they availed themselves of the government program back then? Everybody gets the benefit, once. That’s not discriminatory, no?
I don’t want to be “lifted out of renting”. Keep your meat hooks away from me.
Why is it that Hwy50 thinks it is essential for the government to
run programsoffer homesteading to makehousing unaffordableland available to first-time landowners?There is a loan program that is pretty discriminating - the VA. The catch is you have put your convenience, comfort and personal safety at risk in order to qualify.
That setup seemed to work well enough before.
I have to agree with oxide on this one. The key is to not overwhelm the market, so there needs to be an annual cap on the number of people who can qualify for the program. It also needs to have very strict underwriting qualifications.
We are all better served if more people can become homeowners of **affordable** homes, rather than having landlords make profits on the backs of poor people.
We are all better served if more people can become homeowners of **affordable** homes
How is a homeowner innately better than a renter? Are you suggesting only poor people rent? Or that landlords don’t provide a valuable service to the renters?
I’m suggesting that, in general, and under normal circumstances, owner-occupiers take better care of their homes. They also tend to be more invested in their communities.
Also, I feel it’s important to have a paid-off house before retirement. Renters can’t do that.
Right now, we are helping to support my MIL’s 90-year-old companion, as he has run out of funds. He’s a renter, and rents have risen significantly over the past few decades. If he had owned a house and paid it off a couple of decades ago, he would be in a very different position.
There is nothing worse than having to watch a WWII veteran — who has long prided himself on his ability to take care of everything — sink into poverty and have to rely on friends and family just for basic needs. It sucks.
“Federal support for home loans for second and third homes for buyers who are already a few rungs up the property ladder and can afford it just fine by themselves is asking for a financial meltdown.
Federal support for home loans for homebuyers of any stripe for $700K crapshacks in Bakersville is what can be read off the price tag on the suit of a corrupt politician.
Federal support for home loans which were bought sight unseen from private entities who originated the loans without due diligence or risk holding or seasoning is more effective in destroying a country than any plot dreamed up by a bunch of airline pilots from the Middle East.”
So far as I am aware, none of the crap that went on before the bubble collapsed has ever been given a public hearing to clear the air. Why am I skeptical that the newfangled housing solution will look a lot like the oldfangled housing market disaster recipe?
A: “The answer is ALWAYS in the middle. ”
Q: Where on the highway do you find dead ‘possums?
And for the last few decades, that’s were you’ve also found most dead (defeated) politicians.
The middle of the road is for yellow lines and dead armadillos. - Jim Hightower
Other great quotes from Jim Hightower:
Politics isn’t about left versus right; it’s about top versus bottom.
The corporations don’t have to lobby the government anymore. They are the government.
The issue isn’t just jobs. Even slaves had jobs. The issue is wages
But the good news is that out in the countryside, just about every place that’s got a zip code has somebody or some group of people battling the economic and political exclusion that Wall Street and Washington are shoving down our throats.
-Jim Hightower
Jim Hightower
“George W. Shrub was born on third, but thinks he hit a triple…”
“George W. Shrub was born on third, but thinks he hit a triple…”
-at least he was born in America.
Great quote, Steve J.
This one actually favors renters by helping to lift renters out of renting.
it favors *SOME* renters at the expense of others.
Consider me. I’m a renter. I have a stable job, and make good money. I pay a lot in taxes.
My tax money is being used to provide a below-market rate loan for another (or several others).
How does this benefit me, part of the “renters” group?
rather than principles of fairness
Since when is “fairness” the principle to follow?
I would much prefer the rule of law and fundamental human rights, such as those guaranteed in the constitution.
“Fairness” sounds a whole lot like socialism, does it not?
“Fairness” sounds a whole lot like socialism, does it not?
Good lord please help my country.
You know Americans have being played hard by the corporate fascist PR machine when teachers are now the villains, speaking out against banana-republic wealth distribution is commie and “Fairness sounds a whole lot like socialism”.
fair definition: (thefreedictionary dot com)
a. Having or exhibiting a disposition that is free of favoritism or bias; impartial: a fair mediator.
b. Just to all parties; equitable: a compromise that is fair to both factions.
7. Being in accordance with relative merit or significance: She wanted to receive her fair share of the proceeds.
8. Consistent with rules, logic, or ethics: a fair tactic.
are you suggesting that many in the states (let alone on this board) think that a progressive income tax system is “fair”? That wealth redistribution (whether up or down) is “fair”.
“Fair” is very subjective. And in today’s political climate, I think it’s reasonable to suggest/assume that “fair” would mean higher taxes on the “rich” (note, not those who make their money via stock option grants and dividends, but wage earners making > $100k) and greater benefits for the “poor” paid for by others.
Is that not socialistic? I know you’ve been present on this blog the past few months. When people use the term “fair” here they most certainly don’t mean “free of favoritism or bias”.
are you suggesting that many in the states (let alone on this board) think that a progressive income tax system is “fair”? That wealth redistribution (whether up or down) is “fair”.
I am suggesting you pull you head out of your , sand as to what most real American’s think is fair.
Americans Want Wealth Spread More Evenly, Even the Wealthy
http://www.financial-planning.com/news/wealthy-spread-2671551-1.html
The gap between the richest and poorest Americans is at historic highs, with estimates suggesting that the top 1% of Americans hold nearly 50% of the wealth, topping even the distance before the Great Depression in the 1920s….
….Do Americans know what the gap is and is it what they want?
A survey from the psychology journal Perspectives of Psychological Science concluded that Americans desire a more equal distribution of wealth, and dramatically underestimate the current gap. Perhaps surprisingly, this was true for Americans at all wealth levels and among those who voted for George Bush over John Kerry.
…In the survey, respondents viewed three unlabeled pie charts, one showing a perfectly equal distribution of wealth, another reflecting the status quo nationally, and a third that fell in-between, based on Sweden. When asked which nation they would choose to live in, assuming that they would be randomly assigned their place, 92% preferred the pie chart based on Sweden, including 90.6% of men, 90.2% of Bush voters and 89% of those with income of more than $100,000.
Slightly more Americans preferred the Swedish model than a perfectly even distribution.
In two other tasks, respondents were asked to create a pie chart reflecting the United States and another pie chart on how the United States should look. The group believed that the top 20% held about 59% of the wealth—underestimating the actual figure of 84%. In their ideal distribution, they assigned 32% to the top 20%. Men, Bush voters and those with incomes of more than $100,000 all created an ideal pie chart that was more equal than their estimate of the American status quo, which was also much more equal than a true chart.
A large nationally representative sample of Americans seems to prefer to live in a country more like Sweden than like the United States,” …
…Why then is there so much disagreement over taxes and other issues related to wealth equality?
Ariely and Norton suggest that people may have “overly optimistic beliefs about opportunities for social mobility in the United States,” related to their ignorance about the actual wealth distribution. They also suggest that disagreements about the causes of inequality seem to drown out the consensus that the inequality is undesirable.
are you suggesting that many in the states (let alone on this board) think that a progressive income tax system is “fair”?
Yes, but only because I can read.
Most Americans Say Tax The Rich To Balance The Budget: Poll Reuters 1/3/11
http://www.reuters.com/article/2011/01/03/usa-taxes-poll-idUSN0317867520110103
….NEW YORK: Most Americans think the United States should raise taxes for the rich to balance the budget, according to a 60 Minutes/Vanity Fair poll released on Monday.
….Sixty-one percent of Americans polled would rather see taxes for the wealthy increased as a first step to tackling the deficit, the poll showed.
The next most popular way — chosen by 20 percent — was to cut defense spending.
Some American’s views on “wealth re-distribution”
Americans Support Extending Tax Cuts, But Not For Wealthiest Americans
Gallup Outsidethebeltway dot com
Majority support expiring Bush tax cuts for wealthy
CNN/Opinion Research/Society for Human Resource Management and National Journal Congressional Connection
Poll: Most Tea Party Supporters Say Their Taxes Are Fair
cbsnews dot com
Most Americans Say Tax The Rich To Balance The Budget: Poll
Reuters dot com
Gallup poll finds majority favor ending tax cuts for the rich
thehill dot com
Some American’s views on “wealth re-distribution”
Seems to support my assertion, no?
are you suggesting that many in the states (let alone on this board) think that a progressive income tax system is “fair”?
It would appear that I forgot the word “don’t” in there. My apologies.
It would appear that I forgot the word “don’t” in there. My apologies.
Then mine too.
Then mine too.
Given our newfound understanding, let’s get back to the term “fair”.
Are you suggesting that wealth re-distribution is “fair” by your definitions posted above?
I would most certainly argue that is not the case. It is not equitable nor without bias.
It can be if you consider the benefit the wealthy person receives. If you had an extraordinary amount of wealth, how much would you pay to keep in place the social constructs (public safety, courts, tranportation systems, public education of the people who will eventually become your employees, etc.) that allow you to earn and keep your wealth and your life? Quite a bit, I expect.
And if you had nothing? Well then you might want all those things, but you wouldn’t be able to pay anything for them, because you have nothing to give.
Are you suggesting that wealth re-distribution is “fair” by your definitions posted above?
Are you suggesting that wealth re-distribution is “fair” by your definitions posted above?
Yes, It is fair and equitable for the rich to pay much higher taxes because they benefit more from the system than do poorer people. That they are lucky or “work harder” does not negate the fact that they extract more wealth out a system that needs paying for than do poorer people. Plus the super-rich do not really work harder than a teacher or plumber and much of their wealth was re-distributed from the middle-class. This is why the wealth gap is most extreme now since the Great Depression. See article snip below.
The second reason progressive taxes are fair is because it is just. Part of the definition of justice involves the concept of equitableness and righting wrongs. Middle class and poor have not gotten a fair shake the past 40 years as compared to the rich. Therefore even if one is prone to think progressive taxes are “unfair” in general, recognizing the concepts of justice and equitableness one would come the conclusion that progressive taxation is definitely fair at this point of American History.
Progressive tax is the fair solution
chicagotribune dot com
…This is not to say that people don’t deserve to keep what they earn. The key word is “earn.” Over the past 30 years, according to IRS data, the richest 1 percent has TRIPLED their share of America’s total income, AFTER TAXES, while the bottom 90 percent has seen their share drop over 20 percent. If this had not happened, the average middle-class family would be making $45,000 a year instead of $35,000.
The tripling of income by the wealthy is the result of money-transferring financial strategies, government deregulation, and tax cuts — NOT because they worked three times harder than everyone else.
@Rio - you make a lot of leaps of logic in your argument there.
Let me summarize your point as far as I see it:
1) “fair” is paying taxes based on how much one benefits measured in terms of “wealth extraction”. It is completely disconnected from use or benefit of the things actually paid for by the taxes.
2) “fair” is getting paid based on how hard you work, not based on how valuable a service you provide, how efficient you are, or the cost to replace you.
3) “fair” is having a totally uninvolved individual being punished (taxed) for wrongs done to a second, unrelated party, by a third, also unrelated party.
Your comments absolutely support my assertion that “fair”, as proposed = socialistic. And your argument does nothing to support progressive taxation. You talk only about the top 1% - the “super-rich” as you call them. Progressive taxation affects everyone. If you want to say progressive taxation is “fair”, then you need to stop focusing on the top 1% and tell me why it is fair that *I*, an individual who makes > $100k a year, should pay for the government services (and cut a check in addition) to other, unrelated parties.
And your argument does nothing to support progressive taxation. drumminj
Of course it does. And along with the other posters, it does a fine job supporting progressive taxation. Just not to those who don’t listen to reason.
As I’ve told you in the past drumminj. What your opinion on the matter is of not much concern to me because it comes from an inflexible ideology. From the many polls, studies and articles I’ve posted today and in the past, it is clear that the majority of Americans think as I do, that in fact, progressive taxation is “fair”. Now that’s a fact.
And, I’m sure after reading everyone’s both sides arguments today more people on the fence will have come to that same opinion held by the majority of Americans that progressive taxation is fair and just.
Just not to those who don’t listen to reason.
If you’re going to attack me directly, don’t pussy-foot around it. Man up and quit with the passive aggressiveness.
it is clear that the majority of Americans think as I do, that in fact, progressive taxation is “fair”. Now that’s a fact.
And there it is. To you, “fair” is not something objective. It is subject to the whims of the populace. I suppose you would then argue that oppression of a minority population is “fair”, as the majority of the population would think so?
And, I’m sure after reading everyone’s both sides arguments today more people on the fence will have come to that same opinion
Yes. Pat yourself on the back. People think “fair” is whatever is in their best interest.
Notice how you haven’t directly addressed a single issue I’ve raised? To you, my ideology is “inflexible”, and that’s a flaw because you can’t change the subject and make yourself “right”. I actually want you to discuss the facts at hand, and you’ve clearly shown you’re unwilling to do so.
If you’re going to attack me directly, don’t pussy-foot around it. Man up
Not attack, fact. I said you don’t listen to reason. It’s my opinion. Is that a big deal? No because you don’t. If you think it’s pussy-footing around I can step it up easily but you’re the one always complaining about attacks.
Notice how you haven’t directly addressed a single issue I’ve raised? To you, my ideology is “inflexible”, and that’s a flaw because you can’t change the subject and make yourself “right”. I actually want you to discuss the facts at hand, and you’ve clearly shown you’re unwilling to do so.
One can’t address issues with you. Because you don’t address the addressing in a logical manner. I’ve posted articles, studies, poll after poll, my opinion, my take, my counter to your points. It’s enough today. One can only put their side out there to compete with yours and let others decide who makes the best points.
The wealthy increased their income by over 300% over the last 30 years.
J6P saw his DECREASE.
But the wealthy are paying less taxes in their tax bracket than at any time during the last 70 years.
But you call this fair.
Ye… ah.
But you call this fair.
actually, no where did I do that.
The wealthy paying less than any time in the past 70 years isn’t relevant to any “fairness” on it’s own. Fair is presumably a function of how much one pays vs another. Comparing a single entity/group against itself 70 years ago doesn’t really allow for any evaluation of “fair”.
In this context, I don’t care who’s income increased and who’s decreased. The “why” of which direction it went (or didn’t) is certainly relevant.
If you go back and look at my initial comment, I was questioning the whole concept of trying to evaluate or base anything on the concept of “fairness”, and instead deferring to the rule of law and constitutionally-protected rights.
” I was questioning the whole concept of trying to evaluate or base anything on the concept of “fairness”, and instead deferring to the rule of law and constitutionally-protected rights.”
If ‘fair’ doesn’t matter, why are you always bitching about how unfair it is that you have to pay taxes that might benefit others?
It’s precisely the ‘rule of law’ that says you have to pay taxes, including graduated income taxes. There’s no ‘Constitutionally-protected right’ that says you don’t have to pay taxes. Quite the opposite.
It’s precisely the ‘rule of law’ that says you have to pay taxes, including graduated income taxes. There’s no ‘Constitutionally-protected right’ that says you don’t have to pay taxes. Quite the opposite.
I agree. It is the “rule of law” that says I have to pay taxes. I would, however, make 2 arguments.
1) all rights not specifically granted the federal government in the constitution are my “Constitutionally-protected” rights, not just those specifically spelled out in the Bill of Rights
2) I would argue that a progressive income tax, or arguably any income tax, is unconstitutional. I don’t expect you (or many others, or even the supreme court) to agree with that outlook, but you asked why I bitch about taxes (and of course twisted my position into being against my taxes “benefitting others”…can’t even resist misrepresenting my position in the slightest)
In this context, I don’t care who’s income increased and who’s decreased. The “why” of which direction it went (or didn’t) is certainly relevant.
——————–
I can answer that one.
The reason for the growing wealth disparity is largely due to the credit bubble, which has pushed asset prices higher relative to wages over the past few decades. Wage earners have seen their purchasing power decrease, while the wealthy (asset holders) have seen their purchasing power increase.
Add to that the “tax cuts for the rich” which accelerates the compounding of wealth, and we get the wealth disparity.
Looking forward to addressing this in tomorrow’s Bits Bucket.
You are right. Follow the rule of law, as embodied in the Constitution, and we are good. I would submit the framers used fairness as a guiding principle, but the meaning of the word was badly distorted by the Communists (E.g. “All animals are created equal, but some animals are more equal than others.”)
It’s not fair to make the rich pay more taxes ,is the notion . It’s
a commie plot ,a redistribution of the wealth downwards ,the elite propose .It’s a violation of capitalism the elite would like you to think , its discrimination ,we deserve our profits .
The truth is that the billionaires would be nothing without the collective buying power of the middle/upper middle class . The rich would be nothing without the collective worker production of the products they like to sell . The rich take a piece ,or get a little piece of production from a whole lot of little bees in the Grand bee-hive ,and than they get a little piece of the money back when that same bee in the bee-hive buys the product.
So ,tell me what is fair about getting a little piece from millions .
They get the opportunity to get a little piece of money and production from millions ,adding up to billions for them ,and the little people get to work ,so they can give the money back to them when they buy their products ,and the bees than give the rest to taxes .
This is not a math equation of fairness . The worker gets a little salary from them and they give half it back to buy their junk ,and the worker collectively gets to give 20 to 40% back to taxes and the rich get to avoid the taxes and the opportunity to
get a little piece of millions ,that they get part of it back anyway when they buy the product .
The elite look at the collective bee-hive and the government
coffers as something that they are entitled to have a higher piece of that collective millions in production and a higher collective piece of the money back when they buy the product .
When the elites price of doing business goes up ,they get to collectively pass the increase to the collective beehive ,and if they don’t raise wages the collective bee-hive gets to have less
and the elite get to even get more of a piece of the collective millions .
The opportunity to get a piece of the collective millions of bees
couldn’t be said to be exactly fair especially when seen in light of the fact that the worker actually produces the stuff and than gives it back again when they buy the product .
Really ,this is the Capitalist Creed . We should be able to get
a piece of all the millions in the collective bee-hive ,they should pay the taxes on the merger piece of wage we give them ,and than we should be able to get the money back when they buy the products ,that they actually produced and government
shouldn’t be taxing us on the collective billions we get ,tax the worker on the merger piece of wage we give them ,that they have to give back to us anyway when they buy the product .
If you want to talk about value to Society ,who has the most collective value ,the collective bee-hive ,or the fat cat bees that are just arranging how much of a piece they get from the collective .
But if you just want to look at it terms of stupidity ,if the fat cat bees get to much of the collective production and that little piece of the collective bee hive of millions and millions of bees ,than the bees won’t have any money and they won’t be able to in a collective buy the stupid product that the collective produces anyway . If the government doesn’t get the rich piece of taxes from the profits that went to the fat cats ,than the government can’t function ,and more and more can’t get funds from the collective bee hive either . Th beehive puts the money back into the economy ,and the elite get to horde the money and than they pay Politicians some of it to get more of the collective piece of the collective pie ,including the collective taxes .
Now it really gets complicated when the fat cat bees want to
take the production of the product to other foreign bee-hives
and have them product the product , or they outsource the labor . That means the collective bee-hive pays for the product ,but they don’t get the wages,and the money/wages goes to the foreign wage place ,and the taxes collectively don’t go to this bee-hive .
So ,what is fair ? Capitalism is a concept of incentive production
in a free market ,with supply and demand being the regulator .with monopoly busting and regulations being necessary to keep it in balance . Is capitalism the concept of how to get more collective pieces of the bee-hive in the hands of the fat cats at the expense of even the bee hive functioning ?
If you didn’t tax to make for a collective balance ,the collective
wealth and collective taxes just ends up in the hands of the few
fat cat bees ,and people buying another Mansion won’t make
our economy tick . Maybe the collective fat cat bees can sell mansions to each other while all other sectors go down the tubes .
So ,its not a commie plot ,nor is it a unfair plot to want
proper distribution in the collective bee-hive .It doesn’t take away bees right to make more or move up in the wage chain or become a fat cat bee themselves and have the opportunity to
take a piece from many of the collective bees .
“It’s not fair to make the rich pay more taxes ,is the notion . It’s a commie plot ,a redistribution of the wealth downwards ,the elite propose .It’s a violation of capitalism the elite would like you to think , its discrimination ,we deserve our profits .”
On the other hand, like the ’straw in the milk shake’ analogy used to describe stealing oil wealth from your neighbor in the movie There Will Be Blood, the Fed’s printing press sucks wealth out of the dollar holdings and fixed dollar obligations of non-indexed pensions and Treasury bonds and into the hands of whomever is well-positioned to catch the helicopter drops of newly-created liquidity.
For instance taxpayers give the oil industry 40 billion a decade
in subsidies per decade when their net profit is over a trillion
What’s fair about that ,along with all the other way in with the fat cats avoid taxes . What is fair about that welfare to the rich ?
The mortgage deduction helps the higher classes more than the
middle and lower class . The poor would be cutting into their food money if they paid more taxes ,its enough that they pay all the sales taxes and other hidden taxes in terms of where their money has to go for min. survival .
It’s evident that the Fat Cats want to take more from the teachers and the government worker sector now . The fat Cats don’t want it to be clear that they are the greatest
beneficiaries of the “System “.
Really when the health care industry wants to take 25% of the average workers salary per month and the housing industry wants to take over 50% ,and the food industry wants to take
a higher percentage ,and the rich want to shift the tax
burden to the middle class and poor ,and just take more ,whats fair about that ?
It cracks me up how the rich think they are just going to
make hay on the emerging markets . They are not going to make money if the emerging poor don’t have money ,especially when their exploited on wages .
Corporations /Fat Cats are nothing but power hungry mad-hatter money making machines that want the government to give them anything that increases their profit margins .
Tax policy goes a long way toward sitting up the inequities
in life ,but if the rich can distract us with attacks on the welfare sector being deadbeats ,or the teachers being
overpaid they are successful .
More great posts, Wiz.
Thank you.
The “rule of Law”??
You haven’t a clue what you’re saying no less asking for. How old are you?
http://market-ticker.org/akcs-www?post=181264
More delusional ramblings from Bernanke.
A lot of folks can’t understand how we came to have an oil shortage here in our country.
~~~
Well, there’s a very simple answer.
~~~
Nobody bothered to check the oil.
~~~
We just didn’t know we were getting low.
~~~
The reason for that is purely geographical.
~~~
Our OIL is located in:
~~~
ALASKA
~~~
California
~~~
Coastal Florida
~~~
Coastal Louisiana
~~~
North Dakota
~~~
Wyoming
~~~
Colorado
~~~
Kansas
~~~
Oklahoma
~~~
Pennsylvania
And
Texas
~~~
Our dipsticks are located in DC
Bernanke says high oil prices are contained.
I doubt Jamie Dimon or Lloyd Blankfein are too worried about $3.50 gas. Therefore, all is good.
Yeah, when they can’t afford to fill up their helicopters it will become an issue.
bernake looked like such a bafoon yesterday.The guys is a total puppet for wall street.
I use to think all the sheep were brainwashed ,but I think the Politicians are brainwashed also ,they don’t even think of themselves as bribed pawns for the Fat Cats .
The Constitution was drafted to protect individual rights ,I didn’t see anything about Corporations or Industrial complexes in our
Constitution .
I use to think all the sheep were brainwashed ,but I think the Politicians are brainwashed also ,they don’t even think of themselves as bribed pawns for the Fat Cats .
The Constitution was drafted to protect individual rights ,I didn’t see anything about Corporations or Industrial complexes in our
Constitution .
Oh no ,I hit the button twice .
Trillions in stimulus from obama’s stash and this is the result…
February planned layoffs highest in 11 months
Reuters | March 2, 2011 | by Leah Schnurr
(Reuters) - The number of planned layoffs at U.S. firms rose in February to its highest level in 11 months as government and non-profit employers let workers go, a report showed on Wednesday.
Employers announced 50,702 planned job cuts last month, the highest level since March 2010 and a jump of 32 percent from January’s 38,519, according to the report from consultants Challenger, Gray & Christmas, Inc. Layoffs were 20 percent higher than the 42,090 announced in February of last year, marking the first year-over-year increase since May 2009.
But ADP says 217,000 jobs were created last month.
I’m sure the new wallmart and mcdonalds employees are rejoicing.
217 thousand new sign-twirlers, that is. I have never seen som many twirlers at so many intersections. I saw three different twirlers at one intersection the other day!
Are charlie sheens godesses on the payroll now?I have to think those are high paying jobs?
my chiropractor has a sign twirler in oceanside!
unlimited adjustments…
For some time now, ADP “numbers” have had all the usefulness of an extension cord tied to a daffodil.
But, just to play along, “losing” 300,000 50K jobs with actual benefits and “gaining” 217,000 “opportunities” at minimum wage or thereabouts, is not a signal of prosperity lurking around the corner, or “green shoots”.
“ADP “numbers” have had all the usefulness of an extension cord tied to a daffodil.”
I like the imagery. And the sentiment is spot on. How many times can “experts” receive unexpected results and still be “experts”?
As often as they stay friends with the right people at the country club.
Was this a trick question?
The guy from Challenger, Gray and Christmas said that the huge increase in announced layoffs are from government layoffs. And it is a result of the stimulus, but it is because the money has just about run out and a lot of those jobs that were “saved or created” going away. The basis of the stimulus was that the general economy would have improved enough by the time the money was gone that private business would be taking over the hiring. Well, the corporate balance sheets have recovered, but they have decided that they can do it without hiring.
Sounds just like the last 4 recessions.
What a surprise.
“The number of planned layoffs at U.S. firms rose in February to its highest level in 11 months as government and non-profit employers let workers go”
This is why I don’t understand the Republicans’ push to cut government spending now. The reduction in government payrolls dominoes into the private sector. Where are the jobs going to come from to replace the ones that the government is now cutting?
It is almost as if the Republicans intend to trash the economy in the runup to the 2012 election. I will not be surprised to hear them shouting about the bad economy for the next 2 years.
Almost? That IS their plan and always was.
They screwed it up from 2000 and then handed off the mess with the plan to blame the person trying to clean it up when they failed, because they were going to make damn sure that person failed.
They threw us ALL under the bus. They brought close to WW 3 and may yet.
The corporations WILL have their fascist/fuedelist wet dream if they have to start a world war to do it.
Because the truth is, the American people are too damn dumb to stop them.
Truly, we have the government we deserve.
First off, it wasn’t trillions.
Dear gawd - even the NYT gets it…
——————
NY Times: The Minimal Impact of the Stimulus
New York Times | March 2, 2011 | By CASEY B. MULLIGAN
Last week’s final report on gross domestic product for 2010 provides a fresh opportunity to evaluate the stimulus law passed two years ago. The data and economic reasoning suggest that the effect of government spending on GDP was minimal at best.
The Obama administration and its supporters promised that the fiscal stimulus law would create or save more than three million jobs by now. Their stated intention was to provide government spending while the economy was weak, then end the extra spending as the economy recovered.
But instead of adding jobs, employment is now about two million below what it was when the law was passed in February 2009.
Some of us think that the fiscal stimulus made a bad situation worse, and that employment would have grown, or fallen less, if the stimulus law had not been passed. The Obama administration contends that, apart from the stimulus law, the economy was in worse shape than anyone expected, and that the law kept the employment drop to two million, rather than a potential drop of more than five million.
The stimulus spending penalized success, since its benefits — for example, extending unemployment insurance — were aimed at people and businesses with low incomes, and not at those who were working and/or achieving a certain income level. So it would be no surprise if the result was to keep incomes below what they would have been — as in other cases, a counterproductive result of a well-intentioned program.
Give Paul Krugman a call. I bet he will tell you that the only problem was that the stimulus wasn’t big enough. Then ask him about his wonderful Iraq analogy.
“Then ask him about his wonderful Iraq analogy.”
Which both made perfect sense and was historically accurate.
I have a few unemployed aquaintences who refuse to look for work because it will end their UE payments. They would rather do nothing.
I have a few unemployed aquaintences who refuse to look for work because it will end their UE payments.
Maybe their UE payments pay better than WalMart.
That is exactly right. The only jobs available are of the crappy low-paying variety and they figure its easier to get paid roughly the same amount by sitting at home (and working under the table). One guy the other day actually admitted that if the UE benefits stopped he would be forced to go get a job. No question unemployment is higher BECAUSE of STIMULUS SPENDING.
No question unemployment is higher BECAUSE of STIMULUS SPENDING.
If I were unemployed I would look for work but I damn sure would not take the first part-time, no benefit, WalMart type crap job that was available.
Hunting for a non-menial job is … a full time job. When I was laid off 2 years ago I would spend hours everyday searching for jobs, fine tuning resumes and cover letters for each job. It takes a lot of time to do that, time I wouldn’t have had available had I picked up a couple of menial, P/T, minimum wage jobs.
Recently I have encountered two 99′ers.
One is a friend. I didn’t know that he was on unemployment. I knew he didn’t work since I met him in ‘09. I wondered what he did to pay his bills. A few months ago he started to have serious financial problems. Utilities started to get turned off. Then he told me he was behind on his rent. After that he said they were trying to evict him. It turned out that he had been collecting unemployment for 99 weeks. In all that time he did not look for work. He lived what I considered a very leisurely life. He would take day trips and bike rides. It seemed like a sweet gig. Perhaps he felt that it would just keep getting extended.
The second story is of a neighbor of a sibling. This guy is in his early fifties. He got fired from his teaching job for a minor violation (he beat up a student). With a young child at home he didn’t want to settle for a job making less than the $72,000 he was making at the school. He wasn’t going to settle for just anything. Me, I would have been looking to get my foot in a door someplace and try to work my way back up. Not this guy. He went to Chicago and got a new (used) car. He likes nice cars. It was a Cadillac that he couldn’t pass up. His house which is worth maybe $140,000 is being foreclosed. It has $219,000 worth of mortgages on it. He is getting divorced. His young wife already left. He never tires of complaining to others about his predicament, never blaming himself. I guess since he doesn’t work he has plenty of time for that.
Both of these guys will have to face cold reality. Both of them sat on unemployment as long as possible. And now they wonder what they are going to do. It seems that the 99 weeks really stripped away their ambition. I don’t wish ill on either but it is hard to have too much sympathy.
I don’t wish ill on either
Of course you don’t.
There is nothing in your posts that would ever lead us to believe that you would wish anyone ill NYCityBoy.
I don’t see how you could live an idyllic life on unemployment checks, especially if you have a family.
You can’t. It’s yet another right-wing anecdotal fantasy crock.
Either that, or those right-wingers sure know a lot of deadbeats. Birds of a feather ?
Back in the day, I collected unemployment in the state of Michigan. And this required periodic appearances at MES (Michigan Economic Security) to stand in long lines to see someone who’d determine if I could remain on unemployment.
I only did that once. Why? Because standing in line is not my thing. When I got up to the front of the line and saw the counselor, I announced that I’d just wasted my time standing in line when I could have been out looking for a job.
Long story short: I was referred to a printing company for a job that I was kinda-sorta qualified for. Only lasted two weeks. To this day, I am in full agreement with that company’s decision to let me go. It was and is a good printer and I just didn’t hack it there.
But that was the end of my unemployment money from the state of Michigan. Being forced to hack it on my own, that’s what I did. And, yes, I got by then and I still do it now.
Something to be said for figuring things out on your own. And making things happen.
No more standing in line, Slim. Now just a coulple of clicks a week on an online website and the money is electronically credited into your account. Even foodstamps, welfare, and WIC no longer inconvenience the recipient with any sort of shame, simply swipe a colorfully-decorated plastic card at the register and you are on your way. There has never been a better time to be a lazy system scammer.
Our society would be a lot better off if we brought back some of that old-fashioned shame that seemed to work pretty well. Two years ago I accidentally overdrew my checking account because I mistakenly used the wrong account for an online purchase. It was the first time this happened in 20 years of having a checking account. I was embarrassed and disgusted with myself. I moved money over right away to cover it. I swore that it would never happen again. I guess shame is for suckers like me.
It is a two edge sword for the recipients. Here in the Centenial state our online system is buggy as hell and people sometimes have to wait weeks or even months before their benefits arrive. At least under the old system where you went to the office, once you were approved things would happen.
The online systems are there for one reason: to reduce head count at the UE office and to close UE offices.
As for adding “shame”, why should I be “ashamed” of collecting UE. something that my employers have contributed to over decades for me if I am laid off?
What would be far more helpful in getting people off of UE and welfare would be good paying jobs. Of course the race to the bottom precludes that.
You should be ashamed that you are not a wealthy CEO of a corporation. Or the son of a wealthy CEO. Or married to a wealthy CEO. They are the New Royalty of society. Anyone else is a mere peon.
You’re right. Nobody in our society should be ashamed of their actions. I was wrong. As long as their are shameful CEOs everybody should be free to do whatever they want. Thank you for setting me straight.
“You’re right. Nobody in our society should be ashamed of their actions. I was wrong.”
Who said that?
All I said is that after decades of paying into the UE pool, that if I’m laid off why should I be ashamed of collecting UE while I look for a new job?
When were you on unemployment, Slim? In a down market when upwards of 20 million jobs have been outsourced/insourced, there are few jobs to go get. I walk past a community college which is bursting with students, all of them “figuring things out and making things happen,” all hoping that their extra classes will give them an edge over other applicants. Are these lazy bums who need to “just get a job?
When I was unemployed back in the much more recent day, I learned that job apps is a half-time job at best. You spend the morning on the email and the job sites until you exhaust the day’s listings and contacts, which, in a recession, is pretty fast since there are few listings. Then you wait for employers to get back to you. There is a lot of wait time. And in a down market, employers do not get back to you.
Also please don’t forget the cell phone. Until recently, the unemployed were under house arrest — phone tag is BAD when you’re job hunting. This is the first recession where one could receive that magic ring-ring at the mall, or on a bike.
Not sure what part of the country you’re in but there are plenty of jobs. Sure, many of these jobs are entry-level and/or not preferred…but guess what? If you’re unemployed you should strive to work for a living. It doesn’t have to be permanent and even Wal-Mart has management. I don’t understand the attitude that many people have about not wanting to take “that kind of job.” The last time I was unemployed I went back into retail. Why? Because it was work. I eventually went back into my profession.
When were you on unemployment, Slim?
1980.
Plus ten, Andy.
I call BS on your claim that “there are plenty of jobs”. My college age daughter works in retail and there are weeks when she’s only scheduled a couple of 4 hour shifts (her ideal is 20 as it fits in with her school schedule). Supposedly the UE rate in our county is 7%, but I know so many long term unemployed people, at all levels, that I can only conclude that the 7% number is pure BS.
I am still haunted by a story about when a new hotel opened locally (an Embassy suites). They had about 100 openings, mostly for menial P/T positions. As the hotel construction was wrapping up they held a job fair: over 2000 people showed up, the majority had a least some CC credits. 2000+ showed up to apply for $10/hr jobs.
The last time I was unemployed I went back into retail. Why? Because it was work. I eventually went back into my profession.
From my retail jobs, I’ve learned a lot about business. And that knowledge has served me in good stead.
As for the professional jobs? They were better for specific skills training. For business training, not so much.
So yay, retail. Best business school I ever attended.
I call BS on your claim that “there are plenty of jobs”
My company is trying to hire ~100 ppl (we’re a little over 200 ppl at the moment). There certainly are jobs out there for qualified people.
No offense Colorado, but college age kids working retail aren’t going to get the hours because they don’t have open availability. That goes back to my college days.
As for the job fair, how many people do you think are going to show up for 100 positions? When I post a position I get a lot of response. Many of the respondents want to get rich quick and the unemployed ones don’t want to leave their unemployment check with anything short of a six figure offer.
I call BS on your claim that “there are plenty of jobs”
I bet he hasn’t applied for a minimum wage job since the great recession started. If your over 40, no one wants you.
If your over 40, no one wants you.
My company has hired several people over 40 in the past year. And has many older employees on top of those we’ve hired.
That may be true in general, but it’s certainly not true across the board.
If you’re willing to go through the schooling for a license I for one don’t care if you’re 20 or 60. In fact I’ve found the best employees to be over 40. It’s a different work ethic than the younger generation. I don’t feel that my position is unique. I think in fact many over 40 don’t recall a job market this tough searching for work and blame it on age instead.
As I said, there are plenty of jobs but you have to be willing to go outside of your box to get them.
“No offense Colorado, but college age kids working retail aren’t going to get the hours because they don’t have open availability.”
Its not just her, everyone in the store has been cut back. She was scheduled to work last Saturday and they called her, telling her that her shift had been cancelled. The reason: slow sales that day.
6-12 months ago she was getting her 20 hours a week, sometimes even more, as were he coworkers. Now they’re luck if they get 10.
“My company is trying to hire ~100 ppl (we’re a little over 200 ppl at the moment). There certainly are jobs out there for qualified people.”
Whenever we have a req open for a engineering position we get buried in resumes. Finding the right person is never a problem.
“There certainly are jobs out there for qualified people.”
How many of those jobs are for qualified people with 4-5 years experience in a specific set of skills? In 2003 when I was looking for work, you couldn’t get past the automated HR screening system unless you had every one of a specific skill set.
“there are plenty of jobs but you have to be willing to go outside of your box to get them.”
If you are outside of your box of skills, good luck. There are hundreds of people that are a better fit.
If the job is outside of your local area, good luck. Most jobs are “Local Candidates Only”. And relocation expenses are a thing of the past. Pick up and move and take a chance that things will be better elsewhere? That is a true desperation move and if you have exhausted your resources in your home town, a quick way to the homeless shelter.
Start your own business - you’ll need really good luck and can expect to make less than a part time living for the first year, if you make any profit at all. Undercapitalization contributes to a lot of start up failures.
Re-invent yourself? E.g. start at the bottom. For someone who is sole support for a family, it can mean severe poverty for a minimum of several years.
Plenty of jobs? There are plenty more unemployed. And some employers are passing them over in favor of those who still have jobs.
Maybe you can take any job to get by. But it may not be the best solution. Sit on your butt at home and apply online may also not be the best strategy.
How many of those jobs are for qualified people with 4-5 years experience in a specific set of skills?
At my company? Several. We’re hiring very senior folks (> 10 years experience), as well as fresh college grads. The ideal candidates would actually be the ~4-5 year experience folks you mention.
The core of your post seems to be that finding a new job can be hard, and that there are risks involved. My initial response to that is “no sh*t”. Do you expect it to be handed to you?
Yes, starting a business is risky. And so is moving to another city. Do you expect someone to make it easy and risk free? Who should do that?
I tried applying for jobs in another city. I didn’t get very far. So I simply flew up there and contacted the companies while I was in town. I landed two interviews and had two strong job prospects - it only happened because I took the initiative and risk to fly up there. I then committed to move up there, and did move. Without a job. And without friends or family in the area to fall back on.
Was it risky? Sure. I went 9 months without a job. I did very targeted job hunting. I did my best to network with friends, friends of friends, and former coworkers. I went to job fairs. I eventually drummed up some contract business to keep me afloat (just as my bank account balance was hitting zero*), and eventually got a contract job with a horrible commute (2 hrs a day in the car). When my lease was up I moved closer, and eventually found a full-time job with good benefits and good pay.
Does it work out this way for everyone? Of course not. But that’s not my point. Life is risky. It’s not handed to anyone on a platter, even those who appear “successful”. Who’s going to give anyone that safe, easy, well-paying job just for existing?
Exactly my point, drumminj. Life is risky. I get irritated when posters trivialize the risks.
For many people, collecting unemployment is the less risky thing to do, at least in the short term. To say that they should just take any job is to minimize the risks involved in doing that.
To say that they should just move to where the jobs are is to downplay the risks.
Some people also collect too long. There is a risk of your skill set becoming obsolete while you are out of work. I remember thinking the last time I was out of work that every day I was not working, was a day that someone else was getting experience I needed.
I have done the long distance move to find a job several times, once with a baby in the car. It is not for the faint of heart.
But ,when you have discrimination in hiring practice it can get really rough . Corporations that provide medical insurance don’t want to hire older workers (in spite of them being more qualified ) because they pay more for medical .
Health Insurance Companies would get mad at them if they had to many older workers in the risk pool of workers . Thats why you have to de-couple health care from employment . But if
Employers don’t provide health benefits ,than they would have to give higher salaries to make up for it because the worker would have to take care of that themselves ,yet industry is giving less of both wages and benefits to workers .
Industries likes to say that they don’t have qualified workers
to get from the employee pool ,so this is the grounds for outsourcing . They have plenty of qualified workers that they either don’t want to pay what they command or they can
get it elsewhere . This is evident by the fact that Industry will hire low-skill labor for answering phones even when they can barley speak understandable English in these call centers ,its the low price ,not that American workers aren’t there to
fit into those jobs . No offence to foreign workers ,but how many jobs are your Corporations giving USA workers .
Some of these factors are making it very difficult for USA workers to get jobs in a shrinking job market .
My nephew with 2 kids finally got a job ,but they give him no benefits ,he couldn’t find any other job . He longs for the days when he had benefits with the job .
Its not a matter anymore of the employee being in the position to dictate their worth ,its just the Employer being
in the position of to many people wanting that job ,some of which are outside our Country .
So,if you say that employees have risks ,I say they have uneven risks by not being able to command their worth .
Isn’t it a requirement of UE benefits that the recipient show proof of looking for work? My sister has certainly spent a great deal of time doing so, and has to provide documentation every week.
Yeah, you click the button online that says you looked for work. That is how shoddy the easily-gamed system really is.
The person I know that was a 99′er never looked for a job.
“Yeah, you click the button online that says you looked for work. That is how shoddy the easily-gamed system really is.”
FYI — that’s not true in CA.
Back in the early 70s I got UE for a few months, and I remember I had to show three places I looked for work. I really thought they were going to check up on me.
People sure send mixed messages as to whether the unemployed should take “menial” jobs. Damned if you do, damned if you don’t. I promised myself I would start looking immediately, even if it’s economically “stupid,” because I could really get used to not working.
Documentation? What state do you live in? That’s a funny joke here in Florida.
The sis now lives in Florida but was laid off in Michigan, and has to report in every Monday to the state of MI.
“I have a few unemployed aquaintences who refuse to look for work because it will end their UE payments. They would rather do nothing.”
In CA, you must look for a job to get UE payments.
In CA, you must look for a job to get UE payments.
how is that enforced?
In Texas, you’re “supposed to”, but all it is is entering a # of job search related activities you engaged in that week.
If you enter nothing, you don’t get any UE. If you do, you do. I am assuming that those lines are being checked (or at least spot checked) since if you miss a signature or a check box anywhere, they send it back to you to fix it. I suppose that you could put down that you were working for Yoyodyne Inc., but I would think that they’d check it.
Perhaps not.
“But instead of adding jobs, employment is now about two million below what it was when the law was passed in February 2009.”
This is bad logic, as it fails to consider how much more dire the employment picture would have looked in the wake of the disaster that a two-term Bush presidency was for the country were it not for stimulus.
Yeah, and we could have had complete Armageddon without the TARP. So just think of how many jobs were “saved”. Gimme a freakin’ break PB. You know better than that.
I think PB posted that tongue-in-cheek.
Well, he said he voted for Obama.
A lot of well intentioned folks voted for Obama.
A lot of well intentioned Fiscal Conservative / Compassionate Conservative folks voted for
ObamaCheney-Shrub.This is bad logic, as it fails to consider how much more dire the employment picture would have looked in the wake of the disaster that a two-term Bush presidency was for the country were it not for stimulus.
Did you really drink the whole pitcher of kool-aid?
FWIW, the economy was hemoraghing 700K jobs per month before the stimulous passed.
“This is bad logic, as it fails to consider how much more dire the employment picture would have looked in the wake of the disaster that a two-term Bush presidencythirty-year debt-bubble was for the country were it not for stimulus.”
Fixed that for ya.
PB, fess up: are you just trolling lately?
All these years, you have been one to see the big picture, and now suddenly you are making the argument that the employment picture is about an 8-year period of mistakes by Bush?
I’m no Bush fan, but the forces at work here for decades would have played out regardless of who was in office.
“Fixed that for ya.”
Drat, looks like I didn’t. Where’d my overstrike go??? I swear I tagged it with s and slash-s.
I swear I tagged it with s and slash-s.
isn’t the tag “strike”?
I simply asserted that unemployment would have been higher without stimulus than it was with it; I offered no opinion about whether this was a good or bad policy. Those of you who are attacking me for making an obvious and objective statement ought to occasionally reflect a little on economic reality before posting.
P.S. True story: My maternal grandfather joked that the depression-era WPA stood for “We Piddle Around.”
P.S. True story: My maternal grandfather joked that the depression-era WPA stood for “We Piddle Around.”
My father told me the same thing.
I agree the dominoes were falling fast and the crash would have taken down the entire banking system.
Would this have been a bad thing though?
If one looks at city,state, and federal spending together, there has really been almost no stimulus. The increased federal spending just offset declining state spending.
The increased federal spending just offset declining state spending.
Are you looking at actual budgets, or tax receipts?
I have a hard time believing state budgets have been cut considerably. I do, however, believe that tax receipts are considerably lower.
Budgets - Actually there has been a slight increase but
Total government purchases of goods and services have gone up. But adjusted for inflation, they rose only 3 percent over the last two years — a pace slower than that of the previous two years, and slower than the economy’s normal rate of growth.
The total number of government workers in America has been falling, not rising, under Mr. Obama. A small increase in federal employment was swamped by sharp declines at the state and local level — most notably, by layoffs of schoolteachers. Total government payrolls have fallen by more than 350,000 since January 2009.
Budgets - Actually there has been a slight increase but
Total government purchases of goods and services have gone up. But adjusted for inflation, they rose only 3 percent over the last two years
This doesn’t seem to support your claim that spending hasn’t increased?
Does this “total” include city, state, county, and federal government?
What’s the mix of jobs that have been added at the fed level vs those lost at the state levels? What are the salaries/total compensation amounts? Laying off state workers who make $50k but adding federal workers making $80k certainly wouldn’t result in less overall government spending.
It doesn’t increase it above the normal trend which is due to population and GDP growth. ie no stimulus.
Look closely at the “budgets” of a lot of these states - they are being “balanced” using revenue projections, not revenue receipts.
A more complex version of the stated income mortgage.
“How much do you earn?” “Uh, how much do I need to earn?”
The stimulis money did save jobs. It is illogical to think that employment went down because money was dumped into stimulis projects. The problem with the stimulis is that it was borrowed money, which makes the future worse.
The problem with the stimulis[sic] is that it was borrowed money,
And it crowded out private investment, which would have put the economy in a healthier position.
How did it crowd out private investment? No private company wanted to pave our roads or build water treatment plants or put a stainless railing on our sidewalk over here.
How did it crowd out private investment?
Perhaps you and I are considering different things when we think about “the stimulus”. Are we talking about TARP? Or The ARRA (I think it was?)
Certainly private money was crowded out by below market interest rates, by the AIG bailout, by the gov’t support of big banks, the guarantees on MMFs, raising of the FDIC limits, and by explicit guarantees of Freddie and Fannie and now the fact that they are responsible for the bulk of residential mortgages.
To me, that is all part of the “stimulus”. But perhaps I’m taking a broader view than you are?
I have my bailouts and stimuli all mixed up.
The idea of crowding out is that when the state borrows that they take money that would have gone to the private sector and this drives up interest rates for corporations.
Corporate interest rates are at rock bottom. The FED is printing for anyone who will borrow. It’s not crowding out.
The idea of crowding out is that when the state borrows that they take money that would have gone to the private sector and this drives up interest rates for corporations.
No, it’s not. But feel free to re-state the issue and attack your version of it rather than what’s presented.
The idea of crowding out is that there’s no room for private investment because the gov’t is flooding the folks with money instead. For example, in the current housing market, FHA, Fannie, and Freddie are crowding out private investment.
measton: “The idea of crowding out is that when the state borrows that they take money that would have gone to the private sector and this drives up interest rates for corporations.”
drumminj: “The idea of crowding out is that there’s no room for private investment because the gov’t is flooding the folks with money instead.”
As usual, you’re wrong, drumminj:
wikipedia
“Usually when economists use the term “crowding out” they are referring to the government spending using up financial and other resources that would otherwise be used by private enterprise.
Crowding out can, in principle, be avoided if the deficit is financed by simply printing money, but this carries concerns of accelerating inflation. “
As usual, you’re wrong, drumminj:
How unsurprising that you would exclude the sentence that followed the one you quoted:
However, some commentators and other economists use “crowding out” to refer to government providing a service or good that would otherwise be a business opportunity for private industry.
I will concede that there are two working definitions for the term “crowding out”- one that follows what measton said, and one that aligns with my statements. Of course, if you look at I actually said, my meaning and intent should be clear: “IT CROWDED OUT PRIVATE INVESTMENT”.
Care to try again?
“The Obama administration contends that, apart from the stimulus law, the economy was in worse shape than anyone expected, and that the law kept the employment drop to two million, rather than a potential drop of more than five million.”
This logic reminds me of the city/County attorney stating at the end of the year how much money he/she saved the city/County by settling lawsuits against the city/County. In reality if you didn’t try the case you can’t put a real number on you work or worth. But what the opposition knows is your baseline settlement and can now bombard you with all kinds of nuisance suits. I had one attorney who said, “I don’t care how much the County is willing to pay but not one dime of my money”. He, with my help, won the case and the savings was $400K.
Consumer: “I saved fifty dollars.”
Skeptic: “How much did you spend?”
Consumer: “Two hundred and thirty.”
Skeptic: “Bravo.”
I see no mention of the Repubs defeating a bill back in Sept that would ended tax breaks for offshoring jobs.
Tax breaks that were to instead, be given to local businesses to hire.
Motion Picture Industry Group Names Ex-Senator Dodd as Its New Chief
By BROOKS BARNES and MICHAEL CIEPLY
Published: March 1, 2011
LOS ANGELES — Christopher J. Dodd, the former Democratic senator of Connecticut, was named as Hollywood’s top lobbyist on Tuesday, a move that might initially prove tricky because of lobbying restrictions for former members of Congress.
The Motion Picture Association of America, which is counting on Mr. Dodd to revive its diminished influence, announced that he would take over on March 17 as its chairman and chief executive. The job, which will pay about $1.5 million a year, will require Mr. Dodd to push a Hollywood agenda in Washington that includes a more aggressive government stance against piracy and an effort to persuade China to lift limits on the distribution of Western movies.
http://www.nytimes.com/2011/03/02/business/02dodd.html -
How will Chris survive on a measley $1.5 million a year? He won’t be eligible for all those bribes, kickbacks, and sweetheart “friends of Angelo-type” deals without political power to abuse.
He has a sweet Senate pension as well as all the graft he siphoned off over the years. He’ll be okay.
And his VIP mortgage…
YOu can guarantee this is payback for a job well done.
30 years of pleasuring WS is now being rewarded with a cush high paying job.
The next guy up will see this and think man I should really help these rich guys out.
As stated yesterday this is how you can tell who is in charge. Puppets get 1million a year jobs for 30 years of doing WS bidding. WS elite are pulling in 10’s to 100’s of millions a year.
In Russia Putin has 40 billion.
Mubarek had 70 billion
“As stated yesterday this is how you can tell who is in charge. Puppets get 1million a year jobs for 30 years of doing WS bidding. WS elite are pulling in 10’s to 100’s of millions a year. ”
Saw that yesterday, measton; very apt and well said.
Since the future prospects for ongoing government funding is up in the air, I would think this would be a particularly dicey year for federal government employees to purchase a home. It would make far more sense to rent if you knew your future paycheck was in question.
March 1, 2011, 4:22 p.m. EST
House approves stopgap spending bill
Two-week funding plan would include $4 billion in cuts
By Robert Schroeder, MarketWatch
WASHINGTON (MarketWatch) — With a halt in many federal operations looming, House lawmakers passed a bill Tuesday that would keep the government running for two weeks.
The vote was 335-91 in the Republican-controlled House. The bill, which Republicans say will cut $4 billion from the federal budget, now goes to the Senate. Senate Majority Leader Harry Reid said he expects a vote on the bill in the next two days.
The House bill funds operations through March 18. Without a stopgap bill, many operations would grind to a halt on Saturday, leading to the first government shutdown since the mid-1990s.
…
“Two weeks is plenty of time,” said House Appropriations Committee Chairman Harold Rogers on Tuesday.
“We’ll pass this and then we’ll look at funding the government on a longer-term basis,” Reid said Tuesday.
But House Republicans and Senate Democrats are far apart on a bill that would fund the government from March to September, when the current fiscal year ends.
…
Since the future prospects for ongoing government funding is up in the air, I would think this would be a particularly dicey year for federal government employees to purchase a home. It would make far more sense to rent if you knew your future paycheck was in question.
And, somewhere in the DC area, the REIC is putting out a contract on Professor Bear. Watch out, Bear!
Whether or not I publicize the facts before the MSM-media reports them will not change the obvious economic reality facing the DC housing market at the day of reckoning for the federal budget.
“Since the future prospects for ongoing government funding is up in the air, I would think this would be a particularly dicey year for federal government employees to purchase a home. It would make far more sense to rent if you knew your future paycheck was in question.”
Bear, people in this country quit using common sense a long time ago. The propaganda in this country towards homeownership is sickening and pervasive. The NAR, HGTV, Home Depot, its everywhere. Most people I talk to STILL don’t grasp that the last 15 years were an anomaly and 2006 values simply. are. not. coming. back. period.
When we lived in the D.C. area and a major snowstorm was expected, the TV and radio stations would announce something to the effect that “non-essential” government personnel didn’t have to report to work the next day. Honest, that’s the term they used.
I never heard any statistics as to what percentage of government personnel were classified as “non-essential” (Polly or Oxide, any thoughts on this?) but of those who are “essential” I guarantee that not a single one of them is worried about losing his or her job right now.
Overwhelming majority are non-essential because the definition of non-essential is that things won’t stop functioning if you are home for a day or two. It doesn’t mean your job doesn’t have to get done; it is just a matter of the timing being less urgent.
So, if you are a person who prevents people from shooting the president, you have to go to work because that has to happen every single day. If you are a person who processes non-emergency passports, well, that can probably wait until tomorrow.
As of this year, they basically never just tell us to stay home in the DC area. We get to show up two hours late (to try to spread out the commuting or wait for the locals to finish plowing) or can telework without having previously arranged to do so with our supervisors (assuming you remembered to bring your computer and papers home with you). They sometimes allow people to take a day of leave without having previously arranged it, but that is only if the schools are all closed and it counts against your annual leave.
“essential”
- Somebody dies if they don’t go to work.
- Some vital government function stops going if they stop working.
- Treaty obligations are not upheld if they are furloughed.
Other?
“Most people I talk to STILL don’t grasp that the last 15 years were an anomaly and 2006 values simply. are. not. coming. back. period.”
So far as I know, Ben Franklin’s dear school for fools still has its doors wide open for these people to get educated.
March 2, 2011, 12:01 a.m. EST
Why 2010 wasn’t a turnaround year for banking
Commentary: Next banking crisis will be on Main Street
By Peter Atwater
NEW YORK (MarketWatch) — To believe FDIC Chairwoman Sheila Bair last week, 2010 was a “turnaround year” for the U.S. banking industry.
Almost two-thirds of all banks reported year-on-year improvement in quarterly net income in the fourth quarter, and the average return on assets (ROA), which was negative a year ago, ended 2010 at 65 basis points.
Unfortunately, Bair, like so many policy makers around the globe today, likes to focus on the averages; and in the case of the U.S. banking industry, I’d offer that those averages are terribly deceiving when it comes to measuring the industry’s true health.
To me, a more accurate headline for 2010 banking results would be “America’s biggest banks benefit from the reversal of straight-to-equity FAS 166/167 loan loss reserves, while small and mid-size banks approach asphyxiation.”
…
I don’t know how 2010 couldn’t be a turnaround for banks. Have you been subject to the many new and exciting fees?
I haven’t noticed my credit union raising any fees…
It must be nice to have a good credit union. The CU’s around here have been smaller versions of the big banks for years. Their fees are just as obnoxious. In Michigan there were several great credit unions I could be part of.
About a week ago I had a long conversation with an American Tea Party tourist guy here in Brazil. (lol, you can imagine) He kept floating this idea about only property owners being allowed to vote like in the good old days and I kept suspecting this was a new Tea Party position or something. Now I know. There were also racial aspects to many of his positions but he kept buying everyone drinks so I didn’t show him the haymaker.
Tea Party: Don’t Let Renters Vote
http://moneywatch.bnet.com/saving-money/blog/home-equity/tea-party-dont-let-renters-vote/3350/
What to know what the Tea Party says about foreclosures and the housing crisis?
Nearly two years to go until the next Presdential Election and already the Tea Party is deciding how to slice and dice voters.
Here’s a new Tea Party plank: Don’t let renters vote.
Gawker reported that Judson Phillips, president of prominent Tea Party group Tea Party Nation, has a terrific idea: “The Founding Fathers… put certain restrictions on… the right to vote… you had to be a property owner. And that makes a lot of sense.”
Here’s the full quote, from Tea Party Nation Radio:
“The Founding Fathers originally said, they put certain restrictions on who gets the right to vote. It wasn’t you were just a citizen and you got to vote. Some of the restrictions, you know, you obviously would not think about today. But one of those was you had to be a property owner. And that makes a lot of sense, because if you’re a property owner you actually have a vested stake in the community. If you’re not a property owner, you know, I’m sorry but property owners have a little bit more of a vested interest in the community than non-property owners.”
Republicans have always had a fondness for the past. But, do we really want to jump right back to the Middle Ages
This is just the opinion of one person and one person does not make a party.
The Tea Party has sold out. That much is evident.
Philips might be “one person” but is also president of “Tea Party Nation”, so he must speak for others.
Maybe we should also bring back indentured servitude while we’re at it.
That’s like saying Beck speaks for all conservatives. It’s just lunacy.
Beck
Ha, different shaped faucet, same drippings from the “TrueToxic™” water source…
Again, the people who have time for this sort of thing are either nuts or nasty.
You start a movement, you have to let lots of people in to grow. And pretty soon the people in control are nuts or nasty.
That’s the good thing about the major parties. For the most part, only thieves rise to the top.
Beck, Hannity and Limbuagh don’t speak for all conservatives.
They don’t need to. They TELL them what to say.
tell the tea partier that house + mortgage does not = property owner.
Bingo!
“you had to be a property owner”
In my book a mortgage holder does not a property ‘OWNER’ make.
What if you own your car outright and live in your car? Does that count?
Works for me.
Wow. The banks are gonna have A LOT of votes available to them, aren’t they?
You beat me to it!
Who knew Walker in Wi following Hugo Chavez.
CARACAS, Venezuela - A prominent union leader was sentenced to seven years in prison Monday on charges stemming from a strike that temporarily paralyzed Venezuela’s state-run iron mining company, his lawyer said.
The ruling raised concerns among human rights activists who accuse the government of President Hugo Chavez of misusing the legal system to curb the power of organized labour, particularly unions at state-operated companies.
It’s all about power with these guys. Totalitarian by any means.
ca.news.yahoo.com/venezuelan-union-leader-sentenced-7-years-prison-lawyer-20110228-164719-286.html
His other choice move
After telling the state that he wasn’t going to go after companies dumping toxic sludge in our water because it would be anti business. He has decided to increase the set back requirements for placing windmills on property thus killing about 80-90% of the planned wind farms.
Seems for gov Walker regulation is to be used like a club against those who compete with your campaign donors but is a no no when campaign donors spill toxins into the water supply.
I’m sure Hugo Chavez is very pro-labor…except when it disrupts his government run companies. You liberals don’t understand that this could happen here.
You conservatives don’t understand that this is happening here.
The point is that
Hugo Chavez isn’t that much different than Scott Walker. They use different language but really they are about consolidating power for their own small click. China outlaws unions and strikes as well.
I’m waiting for you to compare Walker to Hitler. Come on. You can do it. You know you can.
“You conservatives”. LMAO.
Walker is a free market guy. Your pro-public sector union stance may be damaging your judgment. Comparing the two is way out of line. Just because you disagree with someone’s viewpoint doesn’t mean you can compare him to a dictator in training.
Really a freemarket guy
1. How is the no bid purchase of state power plants behind closed doors free market?
2. How is the recent change in Set back laws on wind power free market? It will make 80-90% of planned wind projects unviable? They compete w his coal interest donors. Note that he recently refused to enforce waterpollution laws because they would be too hard on business, ie his favored campaign contributors.
3. HOw is accepting a paid vacation in California from a campaign backer free market??
No Walker is all about special interests that supported him. HIs union busting thing has nothing to do about costs and everything about taking out the competition. No different than firing state workers who don’t support him, we’re probably one step away from that.
“No bid deals” are free market?
Seriously. No… seriously. Can you even hear yourself?
1. How is the no bid purchase of state power plants behind closed doors free market?
ANSWER PLEASE
Totalitarian, yup. Commies and facists go after unions with equal zeal. Unions are a creature of middle - at least unions that exist as independent entities. The left and the right are both reknown for labeling worker groups “unions” as window dressing but cross the state just once - and this is what happens.
Ex: PATCO before vs. after 1981
You end up at the same place if you go too far to the right or the left. Totalitarian dictator.
Politics is a horseshoe, not a straight line. The ends are closer to each other than they are to the middle.
I realize that this time is different, but 1989 was just before the onset of a seven-year slide in California home prices. I suppose in the worst case scenario, where history rhymes with the last similar episode, these all-cash investors will always be able to find greater fools willing to catch their falling knife investments.
28% of San Diego home sales in Jan. were cash
DataQuick: Slow winter season, lower-than-ever prices were likely factors
By Lily Leung, UNION-TRIBUNE
Tuesday, March 1, 2011 at 6 a.m.
Almost three out of 10 homebuyers in San Diego County in January closed with cash, the highest it’s been in 21 years, according to La Jolla-based DataQuick Information Systems.
Company spokesman Andrew LePage said 28 percent of new and resale homes bought in the county last month had no records of mortgages, matching the percentage of cash purchases one year ago during the same time.
The figures from this year and January 2010 are second to only the peak at May 1989, when 29.1 percent of home purchases were made with cash.
…
Homes sold to cash buyers
Area Jan. ‘10 Jan. ‘11 Peak since ‘88 10-yr. avg.
Los Angeles 26% 25% 26% 11%
Orange 24% 27% 27% 11%
Riverside 36% 36% 37% 17%
San Bernardino 36% 39% 39% 16%
San Diego 28% 28% 29% 13%
Ventura 23% 21% 43% 11%
Southern Calif. 30% 30% 30% 13%
Source: DataQuick Information Systems
Other DataQuick highlights, California
–In January, 51.9 percent of those paying cash were absentee buyers. That means the property-tax bills will be sent to different addresses, potentially signaling the deals were made by investors.
–About 52 percent of the homes bought with cash in January had been foreclosed on in the previous 18 months.
–The median price for a home bought with cash last month was $160,000, down from $175,000 in December and $164,000 one year earlier. The median home price for all homes sold throughout California last month was $239,000.
Sounds like Chinese investors are “snapping up bargains”.
Sounds like they are trying to catch falling knives in US real estate, the same way the Japanese were circa 1989.
A co-worker just shared a funny story with me. It appears that his dad’s neighbor is really letting her house and yard go to pot. There are some old cars in the driveway that never get moved. All she does is complain how she has no money and things are so tight. But nearly every day there is a mail delivery or a UPS truck delivering packages. It sounds like there may be no money because she has an Amazon or QVC spending addiction. My co-worker’s dad is retired so he can monitor this pretty well.
It turns out that this person is a kindergarten teacher in New Jersey. We looked up her information and she currently makes $79,000 + for teaching kindergarten and just can’t make ends meet on that pittance.
I’m sure the union says she’s overworked and underpaid.
One teacher has a problem with managing money, therefore all teachers are overpaid? Are you living the Charlie Sheen lifestyle?
I know you hate pretending like you’re not special, too.
$79K for a job that goes 9 months out of the year is OVERPAID. There, I said it.
You mean $79,000 salaries for kindergarten teachers might be unsustainable? And this doesn’t even touch on the benefits portion of her compensation.
I was just pointing out that she is paid a decent salary and can’t make ends meet and complains endlessly as if she made next to nothing. I thought it was funny that she is also so messy and lazy about her house. I wonder what she teaches the kids.
Muggy is trying to be a teacher so he takes personal offense at the questioning of any teacher’s salary. It must mean we hate the middle-class and want everybody to make $2 per day. Honesty often ends where self-interest begins.
NYCityBoy, what do you do for a living, and how much do you make?
It must mean we hate the middle-class and want everybody to make $2 per day. Honesty often ends where
self-interestusing strawmen begins. NYCityBoyI work in the private sector without any contract. I can be fired at any time. I lost my 401k match the moment the “financial crisis” began. I get paid what it would take to hire a qualified person to do my job. If my employer decides to cut that pay I either accept it or find another job.
Prior to finding my job they had gone through multiple people that could not do this job at the salary offered.
I also live and work in the area that has the highest cost of living in the U.S.
Did you get the part about being paid according to what it would take to replace me with another person qualified and willing to work for the wage, the loss of benefits or the ability to be replaced at any time? And I don’t cry to anybody that it is not fair. I don’t hide behind a mob to extort anything extra from my neighbors.
Sorry, let me rephrase my question: NYCityBoy, what do you do for a living, and how much do you make?
let me rephrase my question:
Way to go, Muggy. If you don’t like the conversation try to change it. That happens all the time. When the public unions are being discussed I see, “well, Wall Street did this” or “the Republicans did that”.
Children learn that tactic at a young age. Being a teacher I would expect you to know that. “Well, what about Johnie?” “What about Suzy?” “What about you?”
Would you also like to know my favorite color or a list of my turn-ons? Should I upload some revealing photographs? That would distract from the issue. Boy, would it.
I thought it was a relevant subject, this kindergarten teacher, with all of the discussions of late. I know you want everything to be about me but, trust me, it isn’t all about little old me.
NYCityBoy, it would help me understand your perspective if you shared what you do for a living, and how much you make.
What do you do for a living, and how much do you make?
Tut tut. It’s ok to criticize someone else’s income, but don’t you dare question mine and nobody else lives in as high a cost of living area as I do!
Keep on it, Muggy.
What?
One teacher has a problem with managing money, therefore all teachers are overpaid?
Not sure I see that from NYCBoy’s post or BadAndy’s post. I see the sharing of an anecdote, but no generalizations drawn from that regarding “all teachers”.
“I see the sharing of an anecdote, but no generalizations drawn from that regarding “all teachers””
Oh, o.k.
It WOULD be an anecdote except their anti-teachers pay position has been repeatedly stated previously.
Intent and pattern.
It WOULD be an anecdote except their anti-teachers pay position has been repeatedly stated previously.
If you want to make that inference, that’s your choice, but also your issue to address not theirs.
The anecdote posted stands just fine on it’s own. Without political agenda.
“It sounds like there may be no money because she has an Amazon or QVC spending addiction.”
I depends on what you buy.
My “addiction” lately has been reading manga. Some stuff you can get at the library, but a lot isn’t available there. Manga is pretty cheap (sometimes as low a $5) and with Amazon prime I don’t pay for shipping. So the UPS truck stops frequently at our house, but the bank isn’t getting broken.
and with Amazon prime I don’t pay for shipping.
Sure you do. You pay $80/year for shipping.
But yes, I get your point - that’s a sunk cost.
I always spend over $25 at Amazon so I don’t pay for shipping or silly memberships. Sure, it’s nice to get your stuff faster, but I’m a patient guy.
“But yes, I get your point - that’s a sunk cost.”
Correct. I’ve collected about 50+ volumes of manga alone, not to mention other stuff purchased at Amazon (which is almost always cheaper than the local B&N store). So I’ve paid around a dollar (or maybe less) for 2 day shipping.
Works for me.
Now you get their version of Netflix in addition to free shipping for $80.
Amazon Prime is $79 a year, so nothing is free.
Amazon Prime is $79 a year, so nothing is free.
I swear I posted the same thing, but got eaten by the blog software. Sigh.
“Amazon Prime is $79 a year, so nothing is free.”
Considering that Amazon charges 3.99 to ship a book it’s not a bad deal at all. I suppose “free” is an exageration.
I wonder if Aladinsane is living the Charlie Sheen lifestyle with his large stash of “the precious”.
Perhaps in more ways than one.
Well, that depends on where in New Zealand he was during the recent “non-shiny” cement collapse.
I don’t think even Charlie Sheen will be living the Charlie Sheen lifestyle for very much longer.
Reuters blogger Felix Salmon wrote a very interesting op-ed in The New York Times last week about our increasingly irrelevant stock market:
… the glory days of publicly traded companies dominating the American business landscape may be over. The number of companies listed on the major domestic exchanges peaked in 1997 at more than 7,000, and it has been falling ever since. It’s now down to about 4,000 companies, and given its steep downward trend will surely continue to shrink.Nor are the remaining stocks an obvious proxy for the health of the American economy. Innovative American companies like Apple and Google may be worth hundreds of billions of dollars, but most of them don’t pay dividends or employ many Americans, and their shares are essentially speculative investments for people making a bet on how we’re going to live in the future.Put another way, as the number of initial public offerings steadily declines, the stock market is becoming little more than a place for speculators and algorithms to compete over who can trade his way to the most money. …Meanwhile, the companies in which people most want to invest, technology stars like Facebook and Twitter, are managing to avoid the public markets entirely by raising hundreds of millions or even billions of dollars privately. You and I can’t buy into these companies; only very select institutions and well-connected individuals can. And companies prefer it that way.
Sadly, he’s all sorts of right. The only reason a company should go public is to gain access to capital markets. If they can privately obtain all the capital they need and bypass the public circus of high-frequency traders, quarterly earnings roasts, and regulatory flame-throwing, then by all means they should do so.
The real message is that with more and more of the wealth held by a smaller and smaller # of hands there is no need to go public. A private concern can more easily manipulate gov to strip wealth from citizens. See Scott Walker selling Wi Power plants in no bid behind closed door process.
I’d like to see a comparison of CEO pay at public vs private companies. I suspect big money doesn’t allow the BS that public investors have to endue such as golden parachutes.
What goes up ‘must’ go down, unless it’s different here. hahahahahaha California real estate only goes up.
Good post, measton.
Here’s the link to my last post. Don’t want to get deleted
news.yahoo.com/s/fool/20110224/bs_fool_fool/rx113642
+2
From yesterdays discussion on why a Prius is bad, “scary” bad. as I said.
Building a Toyota Prius causes more environmental damage than a Hummer that is on the road for three times longer than a Prius. As already noted, the Prius is partly driven by a battery which contains nickel. The nickel is mined and smelted at a plant in Sudbury, Ontario. This plant has caused so much environmental damage to the surrounding environment that NASA has used the ‘dead zone’ around the plant to test moon rovers. The area around the plant is devoid of any life for miles.
The plant is the source of all the nickel found in a Prius’ battery and Toyota purchases 1,000 tons annually. Dubbed the Superstack, the plague-factory has spread sulfur dioxide across northern Ontario, becoming every environmentalist’s nightmare.
“The acid rain around Sudbury was so bad it destroyed all the plants and the soil slid down off the hillside,” said Canadian Greenpeace energy-coordinator David Martin during an interview with Mail, a British-based newspaper.
All of this would be bad enough in and of itself; however, the journey to make a hybrid doesn’t end there. The nickel produced by this disastrous plant is shipped via massive container ship to the largest nickel refinery in Europe. From there, the nickel hops over to China to produce ‘nickel foam.’ From there, it goes to Japan. Finally, the completed batteries are shipped to the United States, finalizing the around-the-world trip required to produce a single Prius battery. Are these not sounding less and less like environmentally sound cars and more like a farce?
Wait, I haven’t even got to the best part yet.
When you pool together all the combined energy it takes to drive and build a Toyota Prius, the flagship car of energy fanatics, it takes almost 50 percent more energy than a Hummer – the Prius’s arch nemesis.
Through a study by CNW Marketing called “Dust to Dust,” the total combined energy is taken from all the electrical, fuel, transportation, materials (metal, plastic, etc) and hundreds of other factors over the expected lifetime of a vehicle. The Prius costs an average of $3.25 per mile driven over a lifetime of 100,000 miles – the expected lifespan of the Hybrid.
The Hummer, on the other hand, costs a more fiscal $1.95 per mile to put on the road over an expected lifetime of 300,000 miles. That means the Hummer will last three times longer than a Prius and use less combined energy doing it.
So, if you are really an environmentalist – ditch the Prius. Instead, buy one of the most economical cars available – a Toyota Scion xB. The Scion only costs a paltry $0.48 per mile to put on the road. If you are still obsessed over gas mileage – buy a Chevy Aveo and fix that lead foot.
One last fun fact for you: it takes five years to offset the premium price of a Prius. Meaning, you have to wait 60 months to save any money over a non-hybrid car because of lower gas expenses.
I always thought the Prius (or any hybrid) was a crock. What a piece of shit.
What a visceral response with little or no research liz.
Why did you think the prius was a crock Liz? Did it just come to you from some slanted media?
Read the April Consumer Guide. None of the ’subsidised cars are cost effective. And, they cause more environmental damage because of the batteries.
Couldn’t find the article This is what Consumer guide said about the 2011 Prius
Consumer Guide Automotive places each vehicle into one of 18 classes based on size, price, and market position. Midsize Cars represent the heart of the U.S. car market. Most are price-sensitive, conservatively designed, family-oriented sedans and wagons. Our Best Buys include the Ford Fusion, Hyundai Sonata, Kia Optima, and Toyota Prius
“So, if you are really an environmentalist – ditch the Prius. Instead, buy one of the most economical cars available – a Toyota Scion xB.”
So, if you are really an environmentalist - ride a bike or walk. Fixed.
So, if you are really an environmentalist - ride a bike or walk. Fixed.
Okay, I’m at the age where being fixed or not fixed is no longer an issue.
Having gotten that point out of the way, I’ll admit to being an enviro who bikes and walks. Why? Because it’s so much cheaper and enjoyable than driving.
Besides, any cyclist can tell you - a Prius is just as lethal as a Hummer. In fact, at least the Hummer might take you out quick whereas a Prius might just gravely wound you.
Bickering over who makes the cars or what size they are seems a waste. Let the auto-centric culture itself be questioned because before the automobile came along the ecological footprint of just about everyone was a heckuva lot smaller - and so was their personal debt.
“Let the auto-centric culture itself be questioned because before the automobile came along the ecological footprint of just about everyone was a heckuva lot smaller - and so was their personal debt.”
Very true. We’d have no personal debt at all, but my wife came with a car. Such as deal! It’s a Mini and we still have a bit of debt on it that slated to be paid off in January. We’ve got no other debt, as I said, and we’re building our nest-egg of a year’s worth of cash in the bank at a post-tax savings rate of 43% at 0.0001% APR. That doesn’t include the silver that I brought to the relationship.
The money is just sitting in checking because the APR on the car debt is “only” 6%. I’m still not sure whether to keep the cash or to hold the debt if we enter a sudden inflationary or deflationary environment. Are we splitting hairs here?
All that stuff about the bike said, it’s nice to have a car available in an emergency or when your bike gets stolen like mine two weeks ago, but I’m going to get a cheap beater bike and a newer main ride this weekend, so I’ll rarely have to “pay at the pump”.
MrBubble
“fixed or not fixed is no longer an issue”
Good one! That’s a conversation that will rear it’s ugly head in a few weeks since our boy is getting on two weeks old. Don’t feel like being an octo-dad…
Blah, blah, blah,…then there’s weekly pocket-book $ reality…whatever:
Hummer /12 mpg @ $3.79 x15,000 mpy x 36 months = $14,212.50
Prius / 50 mpg @ $3.79 x15,000 mpy x36 months = $3,411.00
Math does not lie, but some can’t understand math and thus remain ignorant.
Prius is often listed one of the cars with the lowest cost of ownership. Yet somehow it’s also supposed to use more resources??????????
The bible for many new-car buyers, Consumer Reports, has named the 2009 Toyota Prius Touring the single best overall value among more than 300 new cars this year. The honor came in its 2009 Annual Auto Issue (on newsstands next Tuesday, March 3), which is eagerly snapped up–and/or read online–by literally millions of car shoppers every year.
While it wasn’t the lowest-cost car in its class, the Prius Touring won for its low estimate for five-year cost of ownership, which the magazine pegged at $26,250–due to high resale value and its superb overall fuel economy of 42 miles per gallon. It also gave the Prius a high score of 80 out of 100 possible points in its arduous road test.
No more Cheney-Shrub Hummer tax rebates either,…tsk,tsk,tsk.
Meatson sure is mad. I bet he has a leather man-purse too. Do you know where leather comes from?
Cost to the planet is not the same as your gas bill, Doh!
When you pool together all the combined energy it takes to drive and build a Toyota Prius, the flagship car of energy fanatics, it takes almost 50 percent more energy than a Hummer – the Prius’s arch nemesis.
I’ve taken to calling the Prius the Car of Virtue. Due to the smugness I see among its drivers.
Due to the smugness I see among its drivers.
Oh how I loved the South Park episode that covered this issue.
I do feel smug when I see suckers filling up at the gas station.
Many in my office drive giant SUV’s and they always start crying when gas get’s over 3 bucks a gallon. I go out of my way to tell them how little it affects me.
Same smugness HBB’rs have been accused of when they talk about the real estate bubble. When you are right your right.
PS agree riding a bus or mass transit is better when an option.
AVACADO you really need to invest in a brain.
1. Prius batteries, contains 32 pounds of nickel . 94 %of the 1.55 million tons of nickel mined yearly is used for steel, alloys, and electroplating. All of Toyotas prius sold to date account for <1% of yearly nickel mined. 80% of Ni is recycled. Toyota offers $150 for each battery returned to them. So for toyota batteries it’s closer to 100%.
Let’s also factor in the huge amounts of coal and Ni used to make the hummer.
2. The study you site assumes the Hummer runs for 300,000 miles while the prius is scrapped at 100k the warranty for the initial prius was 100k so they must have lost a bundle. I have 150k on both of my hybrids and they are running strong I’ve replaced airfilters oil tires and brakes (brakes 1x in 150k due to hybrid braking). I’ve had to replace some pressure valve which is part of maintenance. That’s it.
Pick up a Consumer report in February 2011 Consumer Reports decided to look at the lifetime of the Prius battery and the cost to replace it. The magazine tested a 2002 Toyota Prius with nearly 208,000 miles and compared the results to the nearly identical 2001 Prius with 2,000 miles tested by Consumer Reports 10 years ago . The comparison showed little difference in performance.
San Francisco’s first hybrid taxi was a Toyota Prius that went into operation in 2003. The first fleet of hybrid taxis anywhere in America hit the streets of San Francisco in November 2004, with fifteen Ford Escape hybrids operated by Yellow and Luxor cabs. The city also has Camry hybrids in its hybrid fleets. They estimated they saved 9000 dollars a year on gas with hybrid Escape vs the Crown Vic. Gas prices are even higher now. The difference between a Hummer and a Prius would be even more.
Get on ebay see how many 200k plus Hummers there are out there vs 100k plus civic hybrids and prius models. I mean if it takes less energy to own and operate a Hummer then people would realize this in their bank accounts and we would all be driving Hummers. This didn’t happen which is why Hummer went out of business and was sold.
It fails the obvious test AVACADO.
AVACADO you really need to invest in a brain.
I know it’s asking a lot, but perhaps you could stick to the facts rather than the name calling?
Your post raises interesting questions, but who wants to have a discussion with someone who hurls personal insults?
How about “you really need to use your brain?” Less offensive?
I’m always willing to listen to the other side, but this article was swiss cheese propaganda.
How about “you really need to use your brain?” Less offensive?
I’m sure you’re capable of seeing that’s personal attack and adds nothing to the conversation.
Do you think it somehow makes your position any stronger/more reasonable to attack the individual rather than or in addition to the comments they make?
I somewhat agree with you, a little provocation isn’t bad. The mud flies back and forth on this board.
Point
You were commenting on how funny it is to call prius drivers smug right? I don’t see much of a difference.
Cheers
The mud flies back and forth on this board.
Agreed, and I don’t think that’s a good thing. We have a lot of smart people here. There’s no reason to resort to personal attacks. Most here seem quite capable of debating the facts without having to resort to ad hominems to try to make a point.
You were commenting on how funny it is to call prius drivers smug right?
Actually I commented on how the south park episode was funny. You’re right that the episode addresses the smugness of prius owners, but that doesn’t mean I am calling anyone smug, or even found that element of the episode to be funny
Duck, weave and blow smoke all the while constantly accusing everyone of personal attacks. Good grief.
Meatson is just really upset. He thought driving a Prius and subscribing to Green Living Magazine would be enough to save the planet. Like most, ignorance IS BLISS.
You’re not even smart enough to address the points I made.
Seriously you can’t see how the authors bias of assuming the Hummer would live for 300,000 miles and saying the Prius would only live for 100,000 miles is a HUGE bias toward the hummer.
He’s saying that the environmental damage of building 3 Prius cars to cover that 300,000 miles is greater than building 1 Hummer.
The evidence I presented shows that these cars can run for 200 - 300k no problem.
Your total contribution to the conversation has been to post a totally biased article and then to call me gay. Not one comment defending the article. You are not smart enough to present your case. It’s kind of sad.
Not just nickel, Meatson. Got this from Wiki:
The “metal” M in the negative electrode of a NiMH cell is actually an intermetallic compound. Many different compounds have been developed for this application, but those in current use fall into two classes. The most common is AB5, where A is a rare earth mixture of lanthanum, cerium, neodymium, praseodymium and B is nickel, cobalt, manganese, and/or aluminium. Very few cells use higher-capacity negative material electrodes based on AB2 compounds, where A is titanium and/or vanadium and B is zirconium or nickel, modified with chromium, cobalt, iron, and/or manganese, due to the reduced life performances[7]. Any of these compounds serve the same role, reversibly forming a mixture of metal hydride compounds.
When overcharged at low rates, oxygen produced at the positive electrode passes through the separator and recombines at the surface of the negative. Hydrogen evolution is suppressed and the charging energy is converted to heat. This process allows NiMH cells to remain sealed in normal operation and to be maintenance-free.
NiMH cells have an alkaline electrolyte, usually potassium hydroxide. For separation hydrophilic polyolefin nonwovens are used
Yes it contains small amounts of rare earths that are very valueable and certainly recycled.
Who posted an article the other day about thieves cutting out catalytic converters from SUVS for the platinum.
You can bet that if it’s valuable it’s recycled.
Your post still doesn’t rise to the level of the Prius being a crock. Explain how the prius is a crock.
Compare how much rare earth metal is in the Hummer vs the Prius and explain why this is bad. Also factor in how much extra pollution is created by the massive difference in fuel use.
Again the bottom line is dollar cost for a car is somewhat propotional to the energy cost in making it. The hummer cost more.
The cost of ownership of a Hummer is probably double that of the prius.
Wow good guess according to Kelly BB the smaller H3 5 yr cost of ownership 43k the prius 24k for the prius. Now the difference would obviously be much bigger for an H1 or 2.
Meatson, forget the Hummer, that is what we call an exaggeration. Compare your dirty Prius to a Golf TDI or the new 71 mpg Polo. Your turn to get all mad again.
Prius sucks because it it neither here nor there. It is a crappy performing gas car and an anemic electric one, yet it is neither one on its own. In a short time I envision mechanics offering conversions to remove all of the batttery/electric crap so owners can still drive their Prius without investing in an expensive new battery. Hummers are yet another chapter in the crappy car story. Diesel cars are night and day superior to hybrids. I am just disappointed that they are not more readily available in the US.
Meatson, forget the Hummer, that is what we call an exaggeration.
Funny you didn’t call it an exageration when you posted it you said it was “scary”
Compare your dirty Prius to a Golf TDI or the new 71 mpg Polo. Your turn to get all mad again. Why?
1. Polo is not available in the US and I believe the 71mpg rating is imperial gallons.
2. I don’t care, I think diesel is a great option in a number of situations and have said so.
Liz
Prius sucks because it it neither here nor there. It is a crappy performing gas car and an anemic electric one, yet it is neither one on its own. ???? I”m still waiting for the issue of rare earth metals to be settled??? You’ll have to be more specific on performance acceleration handling. What exactly do you meen by anemic electric.
Debating you and Avacodo reminds of the saying
Never teach a pig to sing.
In a short time I envision mechanics offering conversions to remove all of the batttery/electric crap so owners can still drive their Prius without investing in an expensive new battery. Mechanical hybrids aren’t an option for a reason.
Thanks for getting mad again. Your arguments are boring.
I love HBB, it educates with facts!!!
Meatson- Stay in Texas. So you bought a Prius, we dont care, I am sure your boyfriend forced it on ya or in ya.
Aye carumba!
There’s no reason to resort to personal attacks. Most here seem quite capable of debating the facts without having to resort to ad hominems to try to make a point.
And we see that AV0CAD0 is clearly not. WTF?
Yep
He brought up the topic of the Hummer being a greener option. I pointed out how he was wrong. His response
1. Calling me gay
2. Changing the subject.
Not one defense of his original post.
Can I call him a name now??
Can I call him a name now??
I think liz pendens took care of that below
No I think Liz was referring to Mr. Bubble
Day two of non-witty, LGBT bashing. For the most part, civility reigns on this board and it would be nice to keep it that way. “Arguments” such as
“Meatson is just really upset. He thought driving a Prius and subscribing to Green Living Magazine would be enough to save the planet. Like most, ignorance IS BLISS.”
“Meatson- Stay in Texas. So you bought a Prius, we dont care, I am sure your boyfriend forced it on ya or in ya.”
do little to elevate the debate.
This note is not a flame, but rather a challenge to elevate your game: either intellectually, argumentatively or, at the very least, through destructive bon(s) mots if that is your choice. This “you a poopoo head” stuff is boring. If you’d like to take out your frustrations on me because I have hit a nerve or because you think that I’m a “librul” or “commie” or “tree hugger” or whatever, feel free. If that’s all you can bring, I can’t ask you for more.
MrBubble
guy sounds like a poo-poo head…
+1
That flaccid insult gets “+1″? Come now… Really let it all out.
OK, +2
I dont think any of us care what Meatson drives. I just wanted to educated him. The Prius is bad for the planet, maybe good for his pocketbook though and good for acid rain fans.
I just wanted to educated him
I’m not sure how that translates in any way to making personal insults and gay bashing on top of it.
So you bought a Prius, we dont care,
Are you a Bacon Avocado or a H ass avacado?
Oh sorry, I meant Hass Avocado.
Cholula sauce + Avocado = Hot ass avocado
Who is Avacado?
I am AVzeroCADzero! lol!!
And to think the US government has been making nickels for years and now it’s an environmental diaster due to the Prius??
I seem to remember a study a few years ago that the Prius was less than $1 per mile to put on the road and the hummer $1.95.
“it takes five years to offset the premium price of a Prius. Meaning, you have to wait 60 months to save any money over a non-hybrid car because of lower gas expenses.”
I first heard this story more than a year ago (On Dr. Dean Edell’s show, strangely enough). So I wonder if that 60-month figure holds today, or if it’s been modified as gas prices rise. I THINK most Prius buyers are trying to save fuel money in the long run, and the environmental stuff is just a side-benefit. Gas prices trending up the way they are, that 60-month number might be cut in half soon.
Now, if the stats you gave hold water, and if there are enough people who only buy the Prius solely for environmental reasons, some changes in production may have to be made.
if there are enough people who only buy the Prius solely for environmental reasons
It may not be that they buy ONLY for environmental reasons, but I’ve certainly encountered my share of people who tout the environmental-friendliness of the Prius, or any other hybrid.
At the least, people should look beyond gas usage and consider the full environmental impact of any vehicle - production, use, maintenance, and disposal.
“At the least, people should look beyond gas usage and consider the full environmental impact of any vehicle - production, use, maintenance, and disposal.”
That’s the thing, we buy cars for many reasons–to impress people, or to get true economic value, but asking us to research the environmental cost of a car purchase is a tall order. Even for Prius owners. As for the ones who tout the environmental friendliness of the Prius, consider that these are the crazy folks who will (hopefully) be driving no faster than 65 on the freeway and keeping their baby in perfectly efficient working order. This is a car that will last for many years and miles–would love to know how that would change the numbers given.
asking us to research the environmental cost of a car purchase is a tall order.
I’m not suggesting everyone should. However, if you’re going to tout the environmental friendliness of your car (or any other purchase/choice), you should look at the whole picture.
Sorry if I didn’t make that clear.
My #1 issue is gas usage, #2 is economics I saved money by purchasing these cars. The low 5 year and even lower 10year cost of ownership vs gas alone.
OIL
1. It finances terrorism
2. It costs the country$$$$$$ in lives and treasure
3. It is manipulated by Wall STreet OPEC big oil to strip wealth from the US.
4. The easy cash is used to damage democracy.
oh meatson, stop kicking…
I love how people go off about the “premium” paid to buy a Prius. Ummm, we bought a 3 year old Prius for 15K, gets 50mph (10 yr battery warranty), has tons of torque, and we even moved a king-size bedroom set in it, because it’s a hatchback. Dang, we can even buy stuff at Costco with the thing– we just dart around the flippy, lumbering SUVs. So… we paid very little, and we got a lot. And $4 gas isn’t killing us.
$19k house report: New Smyrna Beach, FL
First, thank you to all who gave awesome housewarming gifts! The squirrel is just so cute! This house is an experiment in “bottom-feeding”. Back around Thanksgiving I reached the conclusion (with the help of this blog) that it might be time to buy something “really distressed to dabble in the rental-income realm”. My criteria: Under $20k purchase price, No major repairs needed, Can’t be in a “bad” neighborhood. The house I just closed on yesterday was the only one I could find to meet my guidelines. It was for sale only through an online auction company based in India and the whole thing smelled slightly of a scam from the start. No scam, I toughed-out the process through some trial and error and alot of patience and the deal finally went through.
The place is really not bad at all which is hard to believe I know. Its small (750 square feet), 2 br, 1 bath (which was expanded and tiled with travertine and has granite shelves! - somebody was a huge HGTV fan), the floors are terrazzo and the walls are block so the house is perfect for a bullet-proof rental. Roof is good and there is an attached garage and even a laundry room and a nice back yard with a large shed. The neighborhood is fine, mostly retirees (it is in FL) with some pretty nice houses around. All appliances are there and appear to be good. Being a foreclosure there are some small defects like missing switch-plates and minor stuff. I plan on renting it for $500 - $600/mo.
The bank got stiffed for a $165k loan on this house! On the closing documents quite a bit of the $19k I paid went to the auction company, realtors (they were required), property preservation, and other closing costs so the lender only ended up getting about $14k for this house!
I still think we are nowhere near the bottom.
The bank got stiffed for a $165k loan on this house! On the closing documents quite a bit of the $19k I paid went to the auction company, realtors (they were required), property preservation, and other closing costs so the lender only ended up getting about $14k for this house!
Your story dovetails with one I just heard from a Tucson acquaintance. He recently bought a fixer-upper special in a “make an offer” deal from a finance. He lowballed it at $20k. And they accepted.
BTW, the fixing up is for cosmetic, not structural issues. And he’s quite handy, so he’s doing the work himself.
He recently bought a fixer-upper special in a “make an offer” deal from a finance.
Oopsy-daisy! I meant to say “finance company.”
My bad.
Congratulations, pbbox. It’s nice when somebody is able to do well in this crazy market. Fascinating that the online auction house is in India–wonder how that came about?
Nice Cherry Picking!
Awesome, pbox! I’ll be right over to fill out a rental app.
All kidding aside, I’ve been looking for another rental in this area. Went to see a house today, listed with a realtor, but before I did, I looked up the public records. No legal action yet, but you could just smell it coming, the owners have lost almost half of the value relative to the actual mortgage they are paying, and that doesn’t include association and other fees. The owners have been living there, apparently. I had a feeling that when I asked why they were renting the place out, I’d be told they are moving out of the country.
So just for a lark, I went to see it. BINGO! The owner is returning “home”, which is not in the continental US. A relative who lives nearby will be collecting the “rent”. Bwahahaha!
The realtor was shocked, I tell you, shocked I wasn’t interested. I told her I didn’t want to take the risk of being caught in a foreclosure. The response? “Gee, I didn’t think of that”.
Neat! cheap houses are fun to play with. Yours was less than my first was 21 years ago.
Awesome! Good luck to you and any other HBB investor who manages to start a landlording career with a fire sale rental home purchase for under $20K!!!
News from “The OC!”
Filed under: “Fire-trucks need x3 more American Flags…or…My city job is not a cult, darn it!”
Published: March 2, 2011
Costa Mesa votes to lay off half of its workers
By JON CASSIDY / OC Register
While pension debt is the reason given for the layoffs, the workers on the chopping block tend to be toward the lower end of the city’s pay scale.
As a group, the so-called miscellaneous employees are comparatively less of a pension burden than the police and fire departments.
There are more than twice as many miscellaneous employees as safety workers, but their pension obligations are only a third of the total unfunded liability - $39.1 million out of $130.8 million.
The surcharge the city effectively pays on every salary is higher for public safety workers than for other city employees. It’s 40 percent for fire and 38 percent for police, but 18.5 percent for the “miscellaneous” city workers.
The city is running a $1.4 million deficit this year. The cuts, however, weren’t meant to close a one-time gap. They’re addressed at a pile of pension debt that’s growing exponentially.
Out of a $93 million budget, the city is spending more than $15 million on pensions, and that number is projected to be above $25 million inside of five years.
Hundreds of the employees that Roeder’s deputies have brought in over the years could soon be out of work. The council voted 4-1, with Wendy Leece dissenting, to send layoff notices to workers in 18 different offices, from maintenance to information technology to payroll.
A thinner, lighter Steve Jobs will be joining the cast of Dancing With the Stars. oh, and oil is now $102/ barrel. That’s the news, folks.
gas station owners not to blame?
http://money.cnn.com/2011/03/02/news/economy/gas_prices_station_owners_react/index.htm?hpt=T2
There is also a lighter & thinner & whiter iPad!
Funniest story of the day
Texas has long been a hotbed of controversy on immigration issues. And a proposed immigration bill in the Texas state House is sure to raise more than a few eyebrows. The bill would make hiring an “unauthorized alien” a crime punishable by up to two years in prison and a $10,000 fine, unless that is, they are hired to do household chores.
Which includes yard work.
Yes, under the House Bill 2012 introduced by a tea party favorite state Rep. Debbie Riddle — who’s been saying for some time that she’d like to see Texas institute an Arizona-style immigration law — hiring an undocumented maid, caretaker, lawnworker or any type of houseworker would be allowed. Why? As Texas state Rep. Aaron Pena, also a Republican, told CNN, without the exemption, “a large segment of the Texas population” would wind up in prison if the bill became law.
news.yahoo.com/s/yblog_thelookout/20110302/ts_yblog_thelookout/proposed-texas-immigration-law-contains-convenient-loophole-for-the-help
“TrueAnger™” + “TrueCost™” = “Truelowermywagesevenmoreworkers™”
The bill would make hiring an “unauthorized alien” a crime punishable by up to two years in prison and a $10,000 fine, unless that is, they are hired to do household chores. As Texas state Rep. Aaron Pena, also a Republican, told CNN, without the exemption, “a large segment of the Texas population” would wind up in prison if the bill became law.
Are Texans too lazy to do their own household chores? Or is that “large segment” instead high income individuals that fund Republican campaigns, don’t want to do housework, and are too cheap too pay legal residents to do it?
Texas is predominately a Repub state. A HUGE Repub state.
Yes, under the House Bill 2012 introduced by a tea party favorite state Rep. Debbie Riddle — who’s been saying for some time that she’d like to see Texas institute an Arizona-style immigration law — hiring an undocumented maid, caretaker, lawnworker or any type of houseworker would be allowed.
Problem: Back in 2005, when I began the journey of having my windows replaced, I hired the local franchise of a national company to do the job. And they subcontracted the work to a guy who hired another guy who I doubt was in this country legally.
And whenever the boss wasn’t around, that guy was yakking on his cell phone or chit-chatting with the guy who used to live next door. (He was half of the two-brother team that threatened my plumbers during my ‘09 water line replacement).
Any-hoo, I was less than pleased about being alone in my house with this guy.
Well, after having windows replaced in ‘05 and ‘06, I took a break. Couldn’t afford the cost due to low money on my end.
In ‘09 and ‘10, the window replacement project resumed. And I used the same national company’s local franchisee. This time, their subcontractor was a local company. And the work crew was American. Looked like a bunch of skateboarders, in fact.
I sounded off to the franchisee about the old subcontractor with his hired guy, and their response was that sub didn’t work for them anymore.
BTW, the skateboarders did a great job on finishing my window replacement project.
How do you tell the difference between skateboarders, tennis players, check out clerks, fisherman, car salesman…????
I guess you meant they were white and coordinated?
At least one of my window-replacing skateboard guys appeared to be Hispanic.
How do you tell the difference between skateboarders, tennis players, check out clerks, fisherman, car salesman
If you know skateboarders, you can see there’s certainly a stereotypical look. Not unreasonable to make a guess based on that.
(of course, I have skater friends who make fun of those to fall into that stereotypical appearance)
One of my former teachers just posted this on facebook:
I find it interesting that if we mismanage our money, credit collectors come calling. When the ELECTED officials mismanage our money, they ask those who manage money well to give up their money!
Because they have “collective right” to your money.
This was a blog post from an art teacher that I read last week. I thought it was excellent.
http://luminouspage.blogspot.com/2011/02/i-ruined-everything-why-it-was-more.html
Boise County files for bankruptcy
After more than two months of reviewing their options, county leaders came to the decision Monday. ~ Idaho Statesman
In a move rare in the United States and perhaps unprecedented in Idaho, Boise County is filing for federal protection against a multimillion dollar judgment.
“This was not our first option. This was our last option,” said Jamie Anderson, chairwoman of the three-member Boise County Board of Commissioners. “This protects us so we can continue to operate.”
Chapter 9 protection, from a section of federal code expressly for financially distressed municipalities, means that creditors can’t collect while the county is developing a plan for reorganizing its debts.
Dan Chadwick, an attorney and executive director of the Idaho Association of Counties, said he is not aware of any other county, city or taxing district in Idaho ever filing for bankruptcy. He’s been with the association for 20 years and before that was at the Attorney General’s Office for 10 years, he said.
Bill Nichols, McCall’s city attorney, said he is not aware of any other Chapter 9 filings in Idaho, either.
“I don’t think there has been anyone in the Northwest that has used this, other than an irrigation district in the state of Washington,” Nichols said.
Whoa. Boise area’s been going hot and heavy for 10+ years now. I guess “prosperity’ has its price. (Where’s Dennis?)
“This protects us so we can continue to operate.”
…and by there by the grace of God thus goeth the homeless, weak & weary
Stay focused,…Food Stamps are destroying America!
(I’m sure DennisN would have a unique recipe for using Gov’t Cholula sauce & Hass avacado’s)
What was the judgement about?
Oh, and another great example of how government mistakes are where the REAL waste is.
Of course, they’ll take it out on the citizens.
Of course, they’ll take it out on the citizens.
who else is there?
“Government” isn’t something independent of citizens. Unless by “government” you mean government workers, which gets back to the whole discussion about public employees (are you asserting they should be the one to pay for their mistakes? If so, I agree 100%).
Government employees are citizens (usually). So are the taxpayers. There isn’t some entity of the “government” that is independent of the “citizens” in this regard.
Perhaps ecofeco meant mere mundanes when saying, “Of course, they’ll take it out on the citizens.” ?
A lot of People in goberment act as if they are independent of the mundanes and far above them/us.
They tried to rescrew a developer.Developer shoved it to them. Good job.
http://video.nytimes.com/video/2011/02/28/world/americas/100000000672239/squatters-on-the-skyline.html
Facing a mounting housing shortage, squatters have transformed an abandoned skyscraper in downtown Caracas into a makeshift home for more than 2,500 people.
good reading, and a great conversation starter!
ron paul tears into benny:
http://www.youtube.com/watch?v=xV6MElf8xpo&feature=player_embedded#at=20
Miami out of cash less than half way through budget year:
http://www.miamiherald.com/2011/03/02/2094236/reserves-threatened-as-miamis.html
Put it on the credit card!
And they didn’t even have to deal with snow or pot holes.
Good thing northern cities are immune from budget woes.
Sarc/off.
What? A possible perp-walk for a bankster:
http://www.orlandosentinel.com/news/local/crime/os-ex-colonial-bank-executive-guilty-20110302,0,2934164.story
Key point from the story:
“This is just the tip of the iceberg; we’re going to see many more cases like this and, unfortunately, a lot of them of them are going to be in Florida,” said Kenneth H. Thomas, an author and banking consultant in Miami. “The failure of Colonial Bank was no small matter; it was a huge failure, and it cost taxpayers billions of dollars.”
Cash sales of homes in the Tampa Bay area top 45 percent:
http://www.tampabay.com/news/business/realestate/article1154833.ece
“Cash may be the king in real estate across the country, but it’s the ace in Tampa Bay.”
TO BEN
It was nice to see Revelstoke’s ad in your blog today. I was there recently and what a fantastic ski area. Looks like it will even beat out Whistler, which is number one in the world.
Their heli skiing in that area has been long established and this new hill is coming right along (one main lift in already).
You should suggest to them that they should make a better airport as I had to drive a long way to get to the town. I dont think their airport is situated well enough to handle big aircraft, but if it could the airport would only be ten minutes from the ski hill (other side of the river).
Also do not like their starting prices of 350m but they are well located.
I hope my critique is taken constructively as I really really dooooo like their ski hill and what it will obviously become. Their potential is amazing - best of luck to them.
From Wikipedia
In economics, crowding out is any reduction in private consumption or investment that occurs because of an increase in government spending. If the increase in government spending is not accompanied by a tax increase, government borrowing to finance the increased government spending would increase interest rates, leading to a reduction in private investment. There is some controversy in modern macroeconomics on the subject, as different schools of economic thought differ on how households and financial markets would react to more government borrowing.
Usually when economists use the term “crowding out” they are referring to the government spending using up financial and other resources that would otherwise be used by private enterprise. However, some commentators and other economists use “crowding out” to refer to government providing a service or good that would otherwise be a business opportunity for private industry
“In economics, crowding out is any reduction in private consumption or investment that occurs because of an increase in government spending.”
Case in point: FHA, FRE and FNM are crowding out private mortgage lending.
If the increase in government spending is not accompanied by a tax increase, government borrowing to finance the increased government spending would increase interest rates, leading to a reduction in private investment.
There is some controversy in modern macroeconomics on the subject, as different schools of economic thought differ on how households and financial markets would react to more government borrowing.
I really think it’s talking about borrowing. Although I’m sure the term can be used in many ways.
The second paragraph suggests both are used.
As stated above, it might be helpful to read what I actually said rather than arguing semantics.
I said that the stimulus “crowded out private investment.” I fail to see how quoting wikipedia’s definition of the economics term “crowding out” is at issue here.
Great, I used common english and you’re telling me that I’m using the words wrong? But even wikipedia supports my usage of the term, if I were to simply say that the “stimulus caused crowding out”, which I didn’t say.
So what’s the point here, exactly?
For anyone interested in the scientific process and review of the CNW report on the Prius vs the Hummer
http://www.evworld.com/library/pacinst_hummerVprius.pdf
Very interesting…… I got into a debate with a guy who blogged that SUVs were more gas efficient than a Prius because they could carry 7 people rather than 4. Right.. Maybe he should commute to work in a Greyhound bus, that would be even more gas efficient.
It used to be that a whole lot of People in here went on and on about the need for more regulations, not so much anymore. I never could understand their reasoning. I came across this and thought it was perfect, wish I would have had this to throw out long ago:
“central banking blows up economies, leading to more regulation which further concentrates power in the hands of a few, allowing government and society to be even more efficiently run by the elite via mercantilism. It’s kind of a closed feedback loop. The more chaos, the more regulation, the more leverage the elite has to reignite the process. Power is continually being centralized and the middle classes themselves (the elite’s ultimate target) will actually clamor for the regulation that facilitates the process.”
Anyway, somewhere, someone is probably creating a PriusHummer in their garage to get the best of both worlds, likely oblivious to all the rest of the goings on.
Regulation has a bell curve. Like water. Too much kills you. Too little kills you. You need just the right amount to survive, and thrive.
That would be self-regulation. Something quite different from subjugation and lack of property rights.
Got popcorn?
P.S. Given that Bernanke realizes the importance to consumers of food and gasoline, how come the Fed systematically ignores these staples when they look at inflation?
* March 2, 2011, 4:22 PM ET
Ron Paul to Bernanke: ‘Define the Dollar’
By Michael Crittenden
What happens when you throw Congress’s top Federal Reserve critic in a room with the central bank’s chairman? Apparently even the definition of the dollar is open for question.
Rep. Ron Paul (R., Texas) questions Federal Reserve Chairman Ben Bernanke Tuesday on Capitol Hill. (Photo by Jonathan Ernst/Getty Images)
Long-time Fed basher Rep. Ron Paul (R., Texas), who wrote a book titled “End The Fed,” squared off Wednesday with Fed Chairman Ben Bernanke at a hearing on Capitol Hill and wasted little time going after the central bank.
“The real cause of price inflation, which is a deadly threat to us right now, is the Federal Reserve system and our monetary policy,” Mr. Paul said.
It was Mr. Bernanke’s first appearance before the House Financial Services Committee since Republicans took control of the House in January, and the first since Mr. Paul took over as chairman of the subcommittee overseeing monetary policy issues. Mr. Paul used the opportunity to accuse the Fed of abetting the government’s growing debt.
“There’s a moral hazard involved here,” Mr. Paul said. “The Fed really facilitates this spending and until we realize this … I think the Fed is involved with our deficit and encourages it.”
Despite his various criticisms, however, Mr. Paul had one question for Mr. Bernanke: “What is your definition of the dollar?”
The Fed chairman, who has spent significant time on the receiving end of congressional
scorn over the last few years, didn’t blink, framing his answer in terms of everyday consumers.
“It’s the buying power of the dollar which is what is important,” Mr. Bernanke said, noting that “consumers don’t want to buy gold; they want to buy food and clothes and gasoline.”
…
Everyone seems to forget that the more money that the average person spends the richer the rich get.
You distribute 1,000,000 to joe six pack, and one year later the wealthy put in their pocket and give joe six pack the sixpacks that joe bought!
Wealthy are wealthy , not because they are wealthy, but because they know how to make and keep money!
Joe knows how to earn money and spend it, not how to increase their wealth!
European banking giant halts foreclosures in U.S.
The move by HSBC Holdings PLC could affect hundreds of homes in Southwest Florida
* By STEVEN BEARDSLEY
* Naples Daily News
* Posted March 2, 2011 at 7:19 p.m.
A decision by a European banking giant to temporarily suspend its foreclosures in the U.S. could affect hundreds of cases in Southwest Florida.
HSBC Holdings PLC announced the temporary move in its annual report Tuesday, citing “certain deficiencies” in the way it prepared affidavits and other foreclosure-related documents.
A federal probe discovered the issues, according to the report.
The temporary suspension means local homeowners being sued for foreclosure by HSBC may have more time to work out their cases. Naples attorney Todd Allen said the move could give him some breathing room in a foreclosure case being rushed through Lee Circuit Court.
“I’m hopefully optimistic it will give us another chance to delay the trial and look into the documents they provided,” Allen said.
Lee County has 418 open foreclosure cases in which an HSBC entity is named a plaintiff, according to its clerk of court office. Collier has 199 such cases.
…
Why wouldn’t scuttling a failed program be a better alternative than continuing it? I would like to hear someone at Treasury explain why some Americans should be forced to help other Americans with their mortgage payments.
Is there some principle of welfare economics that supports taking money away from some households to pay for other households’ living expenses? I am seriously interested, as I must have missed class every time this topic came up, and I have sat through many economics classes and read a few textbooks along the way, too.
Loan modifications in the cross hairs
Republicans trying to scuttle 2-year-old program to help homeowners avoid foreclosure
By Mary Ellen Podmolik, Tribune reporter
March 3, 2011
The Obama administration on Wednesday vigorously defended its Home Affordable Modification Program, which faces sharp criticism by Republican lawmakers who want it axed.
Repeatedly calling the housing market fragile, Treasury Department officials said that while the 2-year-old program will not meet its initial goal of saving 3 million to 4 million families from foreclosure, the 25,000 to 30,000 families each month who are receiving permanent loan modifications is cause for it to continue.
“No one is putting forth a better alternative,” Treasury acting Assistant Secretary Tim Massad said on a conference call with reporters shortly before a House subcommittee hearing on four bills designed to terminate the federal government’s foreclosure prevention efforts.
“There are today those who would say we should end those programs,” Massad said. “And they’re basically saying because you haven’t helped enough people, you shouldn’t help more. That doesn’t make sense.”
…
Bloomberg
Treasury, HUD Lobby to Save Foreclosure Prevention Programs
March 03, 2011, 12:04 AM EST
By Lorraine Woellert and Rebecca Christie
March 3 (Bloomberg) — Obama administration officials launched a campaign to preserve as much as they can of $50 billion in foreclosure-prevention aid for homeowners amid growing criticism from both Republicans and Democrats.
“It’s very important to continue these programs given how difficult the housing market is right now,” Timothy Massad, the Treasury’s acting assistant secretary for financial stability, said in a conference call with reporters yesterday. Tens of thousands of borrowers are joining foreclosure-prevention programs every month, each saving more than $500 on their mortgage payments, Massad said.
The House Financial Services Committee is scheduled to weigh the future of the administration’s Home Affordable Modification Program, or HAMP, and three other aid programs at a meeting today. Republicans want to eliminate funding for the programs, which both they and some Democratic lawmakers say have done more harm than good.
More than a dozen Democratic lawmakers unleashed their frustration onto Treasury Secretary Timothy F. Geithner, Housing and Urban Development Secretary Shaun Donovan and a half dozen other administration officials yesterday during a closed-door meeting that lasted for more than an hour.
“This is an arbitrary, capricious system that kicks hard- working people out on the street,” Representative George Miller, a California Democrat, said in an interview after the meeting. “This administration cannot allow this to continue.”
Initial Projections
About 1.5 million households have begun trial mortgage modifications through HAMP, down from initial projections of 3 million to 4 million, the Obama administration said yesterday.
The effort is “clearly a failure,” Neil Barofsky, special inspector general for the Troubled Asset Relief Program, said at a House Financial Services subcommittee hearing after the report was released. HAMP’s successes “pale in comparison” to the record 2.9 million foreclosure filings in 2010, Barofsky told lawmakers.
…
January Results Won’t Rescue Obama Foreclosure Prevention Program
Mar 2 2011, 4:49 PM ET
By Daniel Indiviglio
Republicans want to eliminate the Obama administration’s $28 billion Making Homes Affordable foreclosure prevention program (”HAMP”). Today, a Congressional hearing was held to consider whether it and three others should be shuttered to cut the deficit. The hearing coincided with the release of the January report for HAMP. If Republicans didn’t think the program was worth keeping around before, then the data for January isn’t likely to change their minds.
Just 21,107 new trial mortgage modifications were started in January — the fewest in any month since the program began in the spring of 2009. A slightly larger number — 27,957 modifications — were made permanent. That’s also one of the weakest monthly results since 2009. Finally, of the modifications that were either trials or had been made permanent, 15,825 were cancelled. Here’s a chart that shows the program’s process the Treasury began reporting:
As this program fights for its funding, the steady trickle of between 20,000 and 30,000 new trial modifications per month isn’t likely to help its fate. Although a greater percentage of trial modifications have been made permanent in recent months due to weeding out weak applicants before providing them trial modifications, even the 73% conversion to permanent rate the report boasts only amounts to somewhere between 200,000 and 250,000 new permanent modifications per year. If the numbers of trials continue to decline, as they did in January by 10,000 applicants, then that estimate is optimistic. This is no where near the few million struggling homeowners the program was designed to help.
Through January, 539,493 permanent modifications remain active. During the month 10,094 permanent modifications were cancelled. That cuts the net number of permanent modifications for January to just below 18,000. Again, this pace is far below the expectations initially set by the administration.
…
Don’t expect Geithner to let cruelty towards FBs stand in the way of his touting the success of an apparently-failed program.
Why Barofsky Mattered
Tim Cavanaugh | March 2, 2011
I will miss Neil Barofsky, who announced last month that he will leave his post as Special Inspector General of the Troubled Asset Relief Program, for many reasons. But one stands out: He recognized that dragging borrowers through a government-run battery of trial loan modifications — as has been done under the Home Affordable Modification Program (HAMP) — is a form of cruelty:
…
The Egyptian and other Arab Nations long standing economies is a perfect example of what happens when to much of the production/wealth of a Country goes into to few hands /
The infrastructures of Egypt are bad ,not enough money going back to
aid the people or create jobs ,same with the schools systems .Not enough buying power
from the people ,not enough jobs with to much population . To much
wealth goes to the mad-hatter tyrants and their elite that ran those
Countries . In Egypt 80% of the income going to food . The people not getting the benefits from being rich oil producing Countries .
It serves those dictators well to transfer the blame to the USA and actually encourage terrorism .