Bits Bucket for April 6, 2011
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Inflation inflicting pain, as wages fail to keep pace with price hikes
~ Washington Post Business
Inflation is back, with higher prices for food and fuel hammering American consumers, and this time it really hurts.
It’s not just that prices are rising — it’s that wages aren’t.
Previous bouts of inflation have usually meant a wage-price spiral, as pay and prices chase each other ever upward. But now paychecks are falling further and further behind. In the past three months, consumer prices have been rising at a 5.7 percent annual rate while average weekly wages have barely budged, increasing at an annual rate of only 1.3 percent.
And the particular prices that are rising are for products that people encounter most frequently in their daily lives and have the least flexibility to avoid. For the most part, it’s not computers and cars that are getting more expensive, it’s gasoline, which is up 19 percent in the past year, ground beef, up 10 percent, and butter, up 23 percent.
Inflation is typically the symptom of an economy overheating. Workers can’t keep up with the demand for the vast array of things they make. Abundant dollars pursue scarce goods and services, forcing prices and wages up. The solution is simple enough: Central banks, such as the Federal Reserve, increase interest rates, applying brakes to the economy.
But the current price spike is in some ways more pernicious than the last great U.S. inflation — the steep increases of the 1970s — and harder for policymakers to address. Today, raising interest rates might make a weak economy even weaker, stifling what meager growth there has been in wages. Moreover, higher interest would make the nation’s massive budget deficits even more expensive to finance, taking an additional toll on the economy.
But the current price spike is in some ways more pernicious than the last great U.S. inflation — the steep increases of the 1970s — and harder for policymakers to address.
To the extent the prices increases are driven by speculation, wouldn’t giving the Commodity Futures Trading Commission more oversight over speculative trading be helpful and also increasing taxes on speculative investments?
The wage-price inflationary spiral of the Seventies fed on each other. This time is different; This time there are not wage increases to feed the price increases, which means something has got to give.
Prices may go up but if there is not the money available to pay these higher prices then many things will not be sold.
Combo,
Wages will not go up and many things will not be sold. As a result companies will not have much profits. Then, why is Wall Street going up everyday. Is it all printed money doing it? All my friends who are in Finance are still having fun with 200K+ salaries and big bonuses. They are still taking expensive vacations and say that Finance is back with full force. They don’t even worry about job loss or under employment. Many of them are in hedge funds, investment banks and emerging market funds. I don’t talk to them much now as it really pisses me off to see none of them got punished and their instituions got huge money from Fed. Saving them is okay, but at the same time they should have fixed some issues that caused the crisis and also looked at the overpaid salaries in this field.
Similar is the situation with my friends who are contractors wih Federal Govt. They say $80 per hour is common and a lot of people make that money. Even Federal employees in GS12-13 level make only 90-100K. These contractors boast that they don’t want to become Federal employees as they make close to 160-170K plus insurance is from their spouse. Many work with NIH in Bethesda, Dept. of Energy, lot of Defence contracts etc..
Also, is cash still king? What would be a good hedge against inflation for people with cash in banks?
“All my friends who are in Finance are still having fun with 200K+ salaries and big bonuses.”
The bigger they are the harder they fall.
Wonder how long some of them could last if “downsized”…
“Then, why is Wall Street going up every day?”
Stock prices are formed by opinions, fundamentals are formed by facts. Given the choice of going with opinions or going with facts I’ll choose going with facts.
(There was a time, not long ago, when - facts or not - RE prices were going up every day.)
Your friends will get theirs soon.
As soon as the wealth of the middle class is completely stripped there won’t be any need for all of these middle player financial types. The consolidation is already beginning. My SIL has seen several layoffs at her company, she’s been lucky and get’s promoted but w little increase in salary and a huge increase in work load.
“get’s promoted but w little increase in salary and a huge increase in work load.”
Job titles don’t cost the company money.
“Your friends will get theirs soon.”
That will happen only if/when there is a bloody revolution, or everyone else is living at the same level as the typical Bangladeshi.
Until then, those friends will NOT get what they deserve. Don’t take comfort thinking they’re about to.
Wonder how long some of them could last if “downsized”…
IMHO, a very short period of time. And then you’ll see them fold (mentally and, in some cases, physically) like a card table.
IMHO, a very short period of time. And then you’ll see them fold (mentally and, in some cases, physically) like a card table.
Do you really think this is any different from a random sampling of individuals in the US?
Martin, thanks for the providing a great example of who is really being overpaid in the federal government.
“Stock prices are formed by opinions, fundamentals are formed by facts.”
QE-suppressed long-term bond yields have nothing to do with it, then?
Uh, combo, I was of working age in the 1970s and that’s when the term “stagflation” was invented.
There was no “wage spiral.”
ecofeco -
Here’s an article with a chart. Take a look and see for yourself.
http://seekingalpha.com/article/92416-wage-price-spiral-we-re-not-even-close
“It’s not just that prices are rising — it’s that wages aren’t.”
It’s called a reduction in the standard of living. A simple consequence if you have a pie (= commodities available on a finite planet) that is shared by an increasing number of people. Unless we can reduce the number of people or increase the size of the pie this dynamic will continue for decades to come.
Thank you Mike.
Short version: Maintstream media, quit calling it inflation. THIS IS NOT INFLATION. This is globalization.
Remind me again why we can’t we offshore hedgefund management to India? Don’t these guys just sit all day in front of a computer screen? ISTM that Highly paid + deals with data, not physical objects = prime offshoring bait.
Maybe not; there might be a “complexion issue?”
Just sayin.
*down periscope*
They for the most part can’t be because the information needed to make these decisions is located in NYC area.
If you live in India, it’s hard to play golf with the a CitiBank VP.
“If you live in India, it’s hard to play golf with the a CitiBank VP.”
Nice one.
Steve J… But wouldn’t that constitute insider trading? Alert the SEC! For all the good THAT ever seems to do.
Alert the SEC!…………..They’re too busy watching internet XXX from what I hear.
THIS IS NOT INFLATION. This is globalization.
I’d argue it’s both. There is also a considerable amount of money printing going on, and a TON went on from 2000-2008.
To separate the factors, we’d need to look at prices vs a basket of currencies, not just the $US.
“It’s not just that prices are rising — it’s that wages aren’t.”
This is what Bernanke is counting on to check commodity prices.
Didn’t the French monarchy count on that for the price of ipa…errr…cake.
Yea..but the entitities buying commodities got TARP money from Joe6pack.
“For the most part, it’s not computers and cars that are getting more expensive”
Cars aren’t more expensive? Have they priced a subcompacts lately?
Even at USAA’s “special” prenegotiated price, a new automatic Elantra would cost me well over $16K.
I just paid to register my car because of not knowing what is going on with the federal budget. I might get an unpaid furlough starting Monday. Might happen again in July for the debt ceiling. Might happen a few more times in the fall for the 2012 federal budget. I don’t normally think this way, but this situation is not giving me any sort of consurmer confidence.
Hi. I think cars are less and many durable goods. I bought my car almost 20 years ago for $11K. To replace it today would be $14K or $15K. I think equal dollars it’s less today.
Ford Focus is about $10k isnt it? Same as 1998.
It looks like 16 grand is about as cheap as they get new.
Interesting perspective here from Ronald Reagan’s former budget director:
Outside the Box
April 6, 2011, 12:01 a.m. EDT
Crony capitalism strikes again
Commentary: The Federal Reserve juices speculators
By David Stockman
This is part one of a two-part series by David Stockman.
GREENWICH, Conn. (MarketWatch) — Someone has to stop the Federal Reserve before it crushes what remains of America’s Main Street economy.
In the last few weeks alone, it launched two more financial sector pumping operations which will harm the real economy, even as these actions juice Wall Street’s speculative humors.
First, joining the central banking cartels’ market rigging operation in support of the yen, the Fed helped bail-out carry traders from a savage short-covering squeeze. Then, green lighting the big banks for another go-round of the dividend and share-buyback scam, it handsomely rewarded options traders who had been front-running this announcement for weeks.
Indeed, this sort of action is so blatant that the Fed might as well just look for a financial vein in the vicinity of 200 West St., and proceed straight-away to mainline the trading desks located there.
In any event, the yen intervention certainly had nothing to do with the evident distress of the Japanese people. What happened is that one of the potent engines of the global carry-trade — the massive use of the yen as a zero cost funding currency — backfired violently in response to the unexpected disasters in Japan.
Accordingly, this should have been a moment of condign punishment — wiping out years of speculative gains in heavily leveraged commodity and emerging market currency and equity wagers, and putting two-way risk back into the markets for so-called risk assets.
Instead, once again, speculators were reassured that in the global financial casino operated by the world’s central bankers, the house is always there for them—this time with an exchange rate cap on what would otherwise have been a catastrophic surge in their yen funding costs.
…
Sadly, so few people can connect the dots. Far more of them are talking about who got kicked off DWTS last night.
Or which star landed on her rumpus…
“First, joining the central banking cartels’ market rigging operation in support of the yen, the Fed helped bail-out carry traders from a savage short-covering squeeze.”
You can’t expect god’s children to be impacted by an earthquake and tsunami. Thanks to the U.S. taxpayers…the house always wins!
Thanks to the U.S. taxpayers…the house always wins!
Is it really the US Taxpayers here? If the fed bails people out, it seems the losers are either a) those on the other side of the trade (invested in Yen), or b) those with a significant number of federal reserve notes.
The losers probably didn’t have the means to cover their losses, so this was likely a coverup too.
And not that I’m a big fan of Stockman, but he did seem to be just about the only member of that administration who believe that smaller government actually meant spending less, not just taxing less and believeing that the magic of the Laughable Laffer curve would make everything alright.
See Martin’s post above.
Smaller government means more overpaid contractors.
That reduces official headcount and the projections might pretend to be for less spending, but it does not actually decrease spending. People like Stockman who are out of government have the luxury of really meaning less spending and less services. Not sure if that is what he means now, but he might.
“he did seem to be just about the only member of that administration who believe that smaller government actually meant spending less, not just taxing less ”
And he was ‘taken to the woodshed’ by St. Reagan himself, for daring to speak this truth.
And not that I’m a big fan of Stockman, but he did seem to be just about the only member of that administration who believe that smaller government actually meant spending less, not just taxing less and believeing that the magic of the Laughable Laffer curve would make everything alright.
And he wrote a very good book about his Reagan Administration experience called The Triumph of Politics. Well worth the read, says your HBB Librarian.
I had my budget destroyed last year with 50% price increases at the grocery store and gas station and 10%+ on everything else.
Time marches on. Five or six years ago I thought the housing market would turn up in 2012 or so. That was based partly on Ivy Zellman’s mortgage reset chart, and some general feeling that nothing lasts forever. But the actions of our govt have so slowed the crash that the recovery still seems far away. What, 2015? I don’t know.
I have a positive cash flow on the apartment building I bought last October, even though I rent ‘em out heated in Maine. Still collecting fuel oil on a prepaid contract I negotiated last fall; it’ll be a shock when that runs out. Guess I could raise the rents a teeny bit, but will first make sure everyone has window blinds.
Loan demand is very great. But I have to maintain SOME liquidity. So I keep telling you people, if anyone wants to get into lending out your own money at around 8% on small houses in Florida, email me mimigerstell at yahoo dot com. I would not take any cut but would walk you through a first deal. What’s in it for me is maintaining my good relations with the persons who bring me the potential clients.
Had a little hassle with some heirs when one of my clients died. The kids were fighting over her property and therefore could not agree about who should be paying me. A $1500 bill from my lawyer got them to wise up and sell the place in a hurry. It wasn’t underwater, so they still received some money.
Other than that, no problems since 2003. Oh yeah, there are people who need “workouts” - and I’m happy to reduce their payments a little bit, stretch out the amortization, whatever it takes to keep them paying their money!
just 8%?
If 8% isn’t good enough David Lerner has some CDO’s for you. Just ask the investors who bought them 2001-2006 how great they performed.
A bridge loan will do 10% with due diligence, just keep it local.
According to a AAA report out this morning in South Carolina, it will cost around $9500.00 or .64 cents a mile to drive this summer season. That is up from $8600.00 last year. I did not hear the whole report but it’s based on gas costing $3.50 a gallon, and driving 15 miles a day on average.
Anyway, if two drivers in one family cover that distance each day then their gas bill alone is nearly $20,000.00 per year. So I can not see this having any impact on the working class in my state. All they need to do is cut out buying food and the problem is solved Or try and get food stamps. If gas does go up to $5.00 or more it going to be a whole lot of fun!
I believe the average income in S.C. is about $27,000.00
Perhaps $950? 15*0.64=$9.60 100 days in summer.
By my math, if one gets gas mileage of 20 miles-per-gallon and and gas is prices at $3.50 then each mile costs him 17.5 cents. If gas prices go up to, say $4.50 a gallon then the cost-per-mile (regarding gas consumption) rises to 22.5 cents.
Is their cost-per-mile number including the total cost of car ownership (car payments, insurance, repairs etc)?
If the cost of driving a car is 64 cents-per-mile, as stated in the article, (and I am not saying it is not) then the bulk of the cost of driving is from factors other than the price of gasoline.
From IRS(dot)gov
Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
* 51 cents per mile for business miles driven
* 19 cents per mile driven for medical or moving purposes
* 14 cents per mile driven in service of charitable organizations
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
We have a total of 5 drivers and 6 cars in our extended household . The key to having less cash outlay in them , is having them paid for , and getting rid of the lemons when they show themselves .Add to that a dependable local garage for repairs . We mostly avoid new car repair shops except for Warrenty repairs . They are like druggies , they want more & more of your cash , and most dealer mechanics are shoddy .
How do you afford car insurance??
“their gas bill alone is nearly $20,000.00 per year”
Try that again and see if you can get it to pencil out at $2,000 ($1,000 per peep).
I believe the average income in S.C. is about $27,000.00
And how is this assertion reflected in house selling prices in Hilton$ Head$?
…or any city above 100,000 population in SC?
(If true, that means it would take 100% of their income x2 years for such a average citizen to pay the medical bill for a typical burst appendix hospitalization.
National Health-care reform “1st-attempt” = “evil”)
“I believe the average income in S.C. is about $27,000.00:
Those people won’t be driving late model cars. They’ll be driving 15 year old beaters that are worth $4000 tops.
.64 cents a mile to drive this summer season…but it’s based on gas costing $3.50 a gallon, and driving 15 miles a day on average.
Hwy50 has a 1993 Toyota pickup with 300,000 mileage (non-replaced engine) (both toes crossed) that is proof positive of this CA adage:
“…T’aint necessarily so”
15 miles = $9.60
I reckon’s it’ll cost $2.00 (@$4.10 per gal) to go that 15 miles. But I’m being “conservative” …really!
I drive more than that; about 40mi/day (20mi commute).
I drive a, paid for, 2001 TDI Beetle, 180K miles.
With fuel prices going up, I don’t expect it to depreciate much, if at all this summer. But, for grins, lets say it depreciates $1000. Three months of liability only insurance is about $70. I’ll have one $60 oil change/service. And lets say $200 for misc repairs/maintentance (I had to replace the hatch struts recently; that sort of thing).
It gets, on average, 48mpg. For a nice round number, lets say average fuel cost is $4/gal. Lets include 50mi of weekend driving: 40*5+50= 250mi wk, lets say 1000mi per month. ~21gallons per month, or $84/month fuel cost. Total summer fuel cost= $252; heck let’s just call it $300.
$1000+$70+$60+$200+$300 = $1630.
What am I supposed to be spending another $7870 on?
What am I supposed to be spending another $7870 on?
Fear! Fear! Fear! Inc. prevention medication,… Knot!
(Hwy’s dids not knows a Beetle gots 48mpg…mmmmnnn, you German square-heads, please makes the Bulli, please…just getr done! And pay close attention to the electrical circuitry would ya!)
Most beetles don’t, you need a TDI (turbo diesel injected) 5spd (tall 5th gear) to get that kind of mileage and (600+ mi) range.
There are currently no classified listings to display
Are these to be found in CA?
Apparently so: ebay #220763167037
Plenty of high paying jobs for today’s youth…
ANCHORAGE, Alaska (Reuters) – Bristol Palin was paid more than $260,500 advocating against teen pregnancy in 2009, tax documents released on Tuesday show.
Palin, the 20-year-old daughter of former Alaska governor and 2008 vice presidential candidate Sarah Palin, earned $262,500 for her work advocating that teens abstain from sex, according to information posted on the Internet by GuideStar, which monitors the finances of nonprofit groups.
http://news.yahoo.com/s/nm/20110406/people_nm/us_palin_earnings_5
Reader comment from the story:
“In 2009, the Candie’s “Foundation” paid Palin $262,500, and they paid $770,240 for a lavish star-studded event called a “Town Hall Meeting.” At the same time, they donated a minuscule $35,000 to charitable organizations actually campaigning against teen pregnancies. In addition, Candie’s states plainly in IRS filings: “The organization has no procedures in place for monitoring the use of grant funds.” It is no wonder that they have refused to be evaluated by charity watch groups according to normal standards for charity accountability.
I am encouraging all interested parties to file (as I am doing today) a formal complaint to the IRS regarding Candie’s. You can print out IRS Form 13909 at the IRS website.
In my opinion, laws encouraging and protecting charities were not designed to foster organizations such as Candie’s who have channeled exorbitant amounts of money to celebrities and for parties, while donating paltry amounts to the cause that they claim to champion”
I encourage people to poke around the 990 filings of nonprofits in your area.
Can I file a complaint against Candie’s shoddily made slut shoes?
It appears that Bristol is far past the “grunt-it-out” entrance sign posted at the Wasilla, AK on-ramp to the “TruePathtoProsperity™” Hwy.
Too ironic. Did they provide daycare for her bastard child while she was giving speaches about the horrors of child bearing?
The Palin clowns are such hypocrites and the young broad is a real floozy in the making.
McCain will rue the day he made her President.
will rue the day he made her President.
The “TrueRogue™” Sarah “The Barracuda” can’t show Americans her AK travelog video version of the “TruePathtoProsperity™” Hwy, on accounts of she’s stuck going “one-way” and the “wrong way” in continuous “right” circles on the “TruePaidProvoker’s™” Faux News Inc. “Round-about” avenue.
(It’s quite doubtful, she’ll ever find the “middle-of-the-road” exit connector whilst blah, blah, blahing and iphoning her bank balance.)
“…earned $262,500 for her work advocating that teens abstain from sex…”
What job title goes with that work, and is that the typical rate of compensation?
A consequence of offshoring decent entry level jobs ? not saying it’s the root cause but it can’t be helping….
HANOVER —
Police have arrested a homeless man believed to have instructed an accomplice to spray lighter fluid on a cashier during a Hanover convenience store robbery last month.
Kenneth Gosselin III, 27, was arrested Monday in Dorchester and charged with armed robbery and conspiracy to commit armed robbery. He was arraigned Tuesday in Hingham District Court and ordered held without bail until a detention hearing on Friday.
Gosselin gave his address as 19 Rill St. in Dorchester, but police said he has several known addresses and frequents local homeless shelters as well.
Gosselin is believed to have driven another homeless man, 18-year-old James Desjardin, to the Tedeschi’s Food Shops store on Route 139 in Hanover on March 9.
Read more: http://www.patriotledger.com/archive/x1302184756/Secon-suspect-in-Hanover-lighter-fluid-attack-is-caught#ixzz1IjxG6lk9
Like I said yesterday, wait until all the unemployment checks run out.
It is one way to get 3 meals a day and a roof over your head.
You would be surprised at how many people are there deliberately just for that.
Question:
If (or when?) the US money managers loose control of inflation wouldn’t it be better if we owned tangible things (such as precious metals or a house) rather than having a bank account with a bunch of digits???
No, because when the U.S bombs the rest of the world, their wealth will flee here to the ’safe haven” of the U.S dollar.
Stop fear mongering.
USA, USA, USA!
You would miss the stock market rally to 20k. Buy stocks now or be priced-out forever.
“Question:
If (or when?) the US money managers loose control of inflation wouldn’t it be better if we owned tangible things (such as precious metals or a house) rather than having a bank account with a bunch of digits???”
Where’s your patriotism? Why our green rectangles are royalty, don’t ya know.
Seriously though Lip, my answer would be a resounding YES to your question. In fact I have arraigned my financial affairs accordingly.
Not sure about the “buy a house” part.
An RV may be a better choice. You can drive away in it if you need to.
I agree. If you have a fixed abode, you may need a bank account with digits to pay property taxes.
And I think an RV would not be as likely to suffer earthquake damage as a house. But it would be more vulnerable to storms and theft.
Same here. BTW, I advise having a 30 year fixed assumable mortgage on that house with the minimum down.
Figures out for Germany on manufacturing and I think they show:
1. Germany still has a manufacturing base
2. Germany still has a middle class
3. Germany still has a democracy. (last two caused by first)
We could learn much from Germany.
We could learn much from Germany.
We have.
German Link: http://www.cnbc.com/id/42450405
I am not for Obama care but Germany does well with national health insurance. Germany also has a high rate of unionization.
However, unlike in the U.S. they recognize much earlier the problems with immigration and the need to protect their industrial capacity. Maybe unlike the U.S. Chamber of Commerce (multi-national pawn) we should concentrate on these issues.
“unlike in the U.S. they recognize much earlier the problems with immigration”
On this I’m not sure I agree… their “guest worker” problems are decades old and the new mobility of labor in the EU is an issue for them too.
Yes the quest worker problem is decades old but they learned from their mistakes and tightened immigration and stopped trying to keep down wages with immigration. Instead they moved to higher value exports produced by highly skilled workers. Importing low skilled workers is just a bad policy. Recent statements about the failure to assimilate non-German immigrants also supports this. For their immigration policy:
From Wikipedia, the free encyclopedia
Jump to: navigation, search
COB data Germany.PNG
On 1 January 2005, a new immigration law came into effect that altered the legal method of immigration to Germany. The political background to the introduction of the new immigration law being, that Germany for the first time ever acknowledged to be an “immigration country.” Although the practical changes to the immigration procedures were relatively minor, new immigration categories like the ones for highly skilled professionals and scientists have been introduced to attract valuable professionals for the German labour market. The development within German immigration law clearly shows that immigration of skilled employees and academics is eased while the labour market remains closed for unskilled workers.
NOTICE CLOSED FOR UNSKILLED WORKERS, NO BS ABOUT DOING JOBS THAT GERMANS WILL NOT DO.
Maybe I should emigrate to Germany.
Does ANYBODY write assumable mortgages anymore?
FHA
“We could learn much from Germany.”
We’re getting there…patience.
Same here. BTW, I advise having a 30 year fixed assumable mortgage on that house with the minimum down.
This only benefits you if there’s wage inflation. Otherwise, you really haven’t come out ahead.
Imagine the “inflation” scenario where the $US loses reserve currency status and other countries dump the dollar. A ton of dollars come home, and prices go up as the dollar loses purchasing power in the global marketplace. I don’t see any factor here to allow for a rise in wages, though, so your costs go up but your income doesn’t. The mortgage stays the same…
Won’t there be “rent” inflation WTSHF?
I do not know a single example where a country had a serious inflation problem where nominal wages did not go up. They always fall in real terms but rise at a level somewhat below the inflation rate. This is particularly true during hyper inflation economies. You want to be working during one of these events because if your retired and your retirement is a fixed benefit and not inflation adjusted, you effectively lose it.
Won’t there be “rent” inflation WTSHF?
maybe, maybe not. there’s actually a functioning market for rentals, so if people can’t afford it, rents will come down.
And people can double and triple up in housing. My son pays nominal rent to sleep on friend’s couches at times.
I saw rental prices soar in Mexico City during the inflation days of the 70’s
One thing that did happen with big inflation was that the gov’t kept increasing the minimum wage, which pushed other wages up. It could happen here too.
You’re dreaming Colorado.
Besides, REAL min wage should between $8-10 right now.
Oh, I know that the wages won’t come anywhere close to keeping pace with inflation. They certainly didn’t in Mexico.
But minimum wage in Colorado is pegged to inflation. So if “official” inflation is 30% then the minimum wage here would rise 30%. The individual states are far more likely to raise minimum wage than the Feds.
“I do not know a single example where a country had a serious inflation problem where nominal wages did not go up…”
Has there ever been major inflation without wage increases? Anywhere?
How about without house prices and rents going up, too?
“I do not know a single example where a country had a serious inflation problem where nominal wages did not go up.”
You must have missed the late 70s.
“there’s actually a functioning market for rentals, so if people can’t afford it, rents will come down.”
Not to mention, to my knowledge, you can’t finance your rent payment. So, I don’t see the ability to raise rents in an inflationary scenario that isn’t accompanied by wage inflation. Otherwise, if landlords do raise rents too much, what’s it gonna be? Food? Gas? Rent?
I’m guessing that will be the order of importance. Maybe gas and rent swap positions, but if you need a car to get to work, people will co-habitate to pay off the others.
I predict inflation without wage inflation and/or easy credit will be short-lived.
No ecofeco I lived through the 70’s ( “dazed and confused era”) and wages did go up every year they just did not keep up with inflation.
BTW, here is a chart of wages levels you can see that wage levels rose rapidly during the 70’s including the late 70’s but they did not always keep up with inflation. It is interesting that some years showed close to a 10% rise in income.
http://www.ssa.gov/OACT/COLA/AWI.html
to my knowledge, you can’t finance your rent payment.
AFAIK some places do take credit cards for rent…I believe I read that somewhere.
But I think you’re correct, as a general rule
Well you could do as the Argentinians do: Buy a new automobile!
(I spelled Argentinians right the first time? & Ben’s HBB ad banner features a JEEP!? I was gonna heat up left over coffee, but today looks promising, think I’ll make a fresh 5 cup pot of joe)
When I lived in Mexico City in the late 70’s and early 80’s cars were a hedge against inflation. Plus you could drive around in them.
In the US, yuppies bought BMWs because houses were out of reach.
If (or when) the US money managers loose control of inflation and the money supply starts falling it would be better if we sold tangible things (such as precious metals or a house) so as to have a bank account with a bunch of digits.
The “managers” would love nothing more than to have you believe their propaganda and run out and buy, buy, buy, borrow, borrow, borrow.
If?
I’m still shocked at the number of people here who haven’t seen the kind of inflation I just saw over the last 10 months.
And you will be too when it’s hit your town.
I’m not kidding. Prepare for 10-50%.
10-50% in what?
I did just get notice that my apartment rent will “adjust” up 3.3% and my storage unit rent up 9% starting in May.
When articles like this are produced, what definition are they using for “white person?”
Is there a legal definition, and if so, what is it?
Also, note the racist angle of the article where the question is posed: “Will the older generation pay for educating a younger generation that looks less like itself?”
Nonwhite people need to turn it around and ask the question: “Will the YOUNGER generation pay for CARING FOR an OLDER generation that no longer produces value?”
Numbers of Children of Whites Falling Fast
WASHINGTON — America’s population of white children, a majority now, will be in the minority during this decade, sooner than previously expected, according to a new report.
As a result, America’s future will include a far more diverse young population, and a largely white older generation. The contrast raises important policy questions. Will the older generation pay for educating a younger generation that looks less like itself? And while the young population is a potential engine of growth for the economy, will it be a burden if it does not have access to adequate education?
.
http://www.nytimes.com/2011/04/06/us/06census.html?_r=1&hp
“Will the YOUNGER generation pay for CARING FOR an OLDER generation that no longer produces value?”
The “fast-money” answer to this poser question is: Iffin’ theys have money left over after the Medical Industry Inc.is done extending the older gen’s “quality-of-life” and they’ve also somehow not succeeded in their accidental “opps-we-sent-you-x4-billings-sorry-just-ignore-the-last-one-&-we’ll-call-it-even”
When articles like this are produced, what definition are they using for “white person?”
Is there a legal definition, and if so, what is it?
“Eyes may not be able to defines it, but eyes knows one when eyes sees one” Judge Potter Stewart
There is no legal direction of “white person.” Back in 1900 or so, Italians and Jews were distinguised from “Whites.”
Back in the segregated South, where they had reasons to care about this sort of thing, one bit of African ancestry made you ” “Black,” but there were sub-categories based on percentages.
Of course we are not being over-run by people from Latin America, where just about everyone is a mix of two more more races as traditionally defined, except for some Indians out in remote villages.
I think the whole “race” idea in the census is outdated.
I think the whole “race” idea in the census is outdated.
No worries, just around the
censusSense-us Insurance Industry Inc. corner: you are who your DNA says you are, like it or not.Why do we charge YOU more? Silly, you’re predisposed & our database also knows your credit score. (We also have a link to your facebook page)
Comment by WT Economist
2011-04-06 06:33:22
There is no legal direction of “white person.”
So Its possible I could be a white person and not even know it?
Ya’ll hold on while I go check to see if thats Ed McMahon outside my front door.
So Its possible I could be a white person and not even know it?
——————————————————————————
Cool. when obombacare kicks in it’s possible that I could be amish, a muslim, a scientologist, or a union member and not even know it.
maybe they are just referring to albinos?
“Eyes may not be able to defines it, but eyes knows one when eyes sees one”
Thats what they told me in Vietnam.
(((shakin my head))))
Thats what they told me in Vietnam.
I think not, I think your fibbin’…again.
You could stop feeding him.
Current job applications now ask your race. Here’s the most common list:
White/Caucasian
African American
Hispanic
Asian
Other/Non Hispanic
No, I don’t understand the second part of the last choice either.
I always liked the question about whether you have sex.
I really hated the times I had to write “No”.
I recall once answering a demographic survey question at college thusly:
Religion? Bokonon
Realtors Are Liars
Let’s get exeter to toss in some descriptive adjectives between: Are…Liars!
Then we can re-arrange them to see who is the most “poetic”
I’d love to but they wouldn’t pass muster with BJ.
What do you suppose the volume would be if pension funds/state treasurers hadn’t sold out for future high paying jobs and present day kick backs….
The S&P 500 failed to break a key technical resistance level for a second day on Tuesday as low trading volume raised further questions about the market’s strength
Trading volume was relatively low with just 6.85 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, compared with last year’s estimated daily average of 8.47 billion
The S&P has slowly built gains since mid-March in mostly quiet sessions. Last week was the thinnest week of trading so far in 2011 and Monday was the lowest-volume day of the year.
http://news.yahoo.com/s/nm/20110405/bs_nm/us_markets_stocks_27
Taylor Bean Ties to Freddie Mac Loom in Mortgage-Fraud Trial
By Tom Schoenberg -
Apr 4, 2011 6:26 PM ET
Lee Farkas, the former chairman of Taylor, Bean & Whitaker Mortgage Corp., went on trial today as the accused mastermind of a $1.9 billion fraud conspiracy. Looming in the background was the company’s relationship with the bailed-out federal mortgage financier, Freddie Mac.
Lawyers have said they expected the trial before U.S. Judge Leonie Brinkema to last about a month. Prosecutors have said they planned to call 35 witnesses and show the jury more than 950 exhibits, including e-mail, recordings of Farkas, property records and a photograph of Farkas’s jet.
Freddie Mac started picking up most of Taylor Bean’s business in 2002 after its government-sponsored competitor, Fannie Mae, stopped buying loans originated by the company in April of that year.
Didn’t Trust Information
Fannie Mae didn’t trust the accuracy of information it was getting from Taylor Bean and ordered the company to sell its portfolio of servicing rights, according to a prospectus filed by Credit Suisse First Boston Mortgage Securities Corp. with the U.S. Securities and Exchange Commission for sales of pools of Taylor Bean-originated loans.
A Fannie Mae spokeswoman, Amy Bonitatibus, declined to comment on the reason the company dropped Taylor Bean.
http://www.bloomberg.com/news/2011-04-04/taylor-bean-ties-to-freddie-mac-loom-in-1-9-billion-mortgage-fraud-trial.html - 63k -
LOS ANGELES—Wendy Williams is saying goodbye to the “Dancing With the Stars” ballroom—and to the …
The only reason I know that Kirstie Ally fell on her fat ass is because I read it here.
Heard a joke today that the judges gave her a 7 and the USGS gave her a 7.2.
-rimshot-
ISTR that the original comment was something about Kirstie Ally going down. For some reason I thought Ally Sheedy and the other meaning for “going down.” and briefly became very interested….
Mon Apr 4, 11:30 am ET
The foreclosure mess isn’t going away
By Zachary Roth
We’ve told you before about how big banks cut corners on paperwork over the last few years in order to speed struggling homeowners into foreclosure. And a “60 Minutes” report that aired last night offers fresh anecdotal reporting on just how irresponsible–and potentially fraudulent–the banks’ practices were. Meanwhile, compelling video of a grandmother being evicted from her home by a SWAT team last week suggests the banks aren’t slowing down their rush to foreclosure and eviction.
http://news.yahoo.com/s/yblog_thelookout/20110404/bs_yblog_thelookout/the-foreclosure-mess-isnt-going-away - 75k -
I need some real info here: how long should we wait before trusting that those forclosure-priced homes are kosher to buy?
Ask whether you can get title insurance on the property. And at what cost.
And at what cost.
And look at the financials of the insurance company. Insurance does no good if your insurer goes bankrupt (unless they’re AIG and the gov’t/fed reserve bails them out)
Wait until the former owner of the foreclosure home you wish to buy stops patrolling the front lawn with a shotgun in hand.
You cannot transact in NYS without title insurance. And it’s not cheap IIRC.
I haven’t bought title insurance in ages, but last time I did it was about $750 for a property selling at over $200K. I didn’t think it was too bad a deal.
Actually it’s surprising that we haven’t seen more out and out fraud taking advantage of the slack-filled foreclosure courts. It seems to me that it wouldn’t be too hard to find some delinquent Florida properties, issue NODs in the name of “ABC mortgage trust” get a forelcosure and sell ‘em (if you priced ‘em low enough) before aybody realized what happened.
I say again…what’s the point in evicting people if you’re not going to sell the houses?
The propaganda war continues in the media:
‘Why you can’t get a mortgage’
‘The latest data from the Federal Reserve shows that nearly a quarter of people who apply for loans are turned down…The denial rates tell only half the story. Many potential buyers aren’t even applying for loans because they assume they can’t get one — even with good credit.’
OK, so then this article is packed with industry cheerleaders, sounding alarms: “Alan Rosenbaum, CEO of GuardHill Financial, a New York-based mortgage broker…Mike D’Alonzo, president of the National Association of Mortgage Brokers…Jerry Howard, CEO of the National Association of Home Builders…Lennox Scott, head of John LA. Scott Real estate’
But then we find the main reason for this piece: “And it’s about to get harder for buyers. Federal regulators proposed rules last week that are designed to discourage risky lending but that will also likely further restrict lending. Banks would be required to keep 5% of some loans, specifically those with less than 20% down payments, on their books rather than selling them all off as securities. As a result, banks make be unlikely to issue loans where less than 20% is put down. So much for first-time buyers.”
“We think the new rules are appalling,” said the NAHB’s Howard. “Only the wealthy will be able to buy homes at low interest cost.”
This is a shot across the bow of the new regulations. No mention of all the damage the securitization has caused, we can’t regulate these banks, or only the wealthy will be have a roof over their heads!!!
Then they throw in a bit on the GSE showdown: “The immediate impact, should the new regulations get adopted, should be minor, according to Steve O’Connor, spokesman for the Mortgage Bankers Association. That’s because Fannie, Freddie and FHA loans are all exempt from the requirements and they represent more than 90% of the market right now.”
“The government, however, wants to reduce the presence of all three agencies in favor of private lenders, and banking experts fears the long-term impact of abandoning the field to mostly private companies.”
“For the first time in 100 years,” said Howard, “the government is discouraging you. It’s saying ‘We intend to make it more difficult for you and your kids to buy homes.’”
100 years! The govt is stopping my KIDS from buying homes! Get the tar and feathers!
Seriously, CNN, this is one lame piece of propaganda…
“Only the wealthy will be able to buy homes at low interest cost.”
Not at your puffy prices, Mr. Lobbyist. When (not if) prices fall, then even the middle class will be able to buy homes. Imagine that.
The idea of prices falling just NEVER enters the darkest cobwebbed corner of their minds, does it.
“We think the new rules are appalling,” said the NAHB’s Howard.
*Gasp!* Appalling declares the Liar-In-Chief! Save your sanctimonious outrage my lying friend. The only thing appalling is your lying.
‘On most loans, banks want 20% down. On $200,000 purchases, that’s $40,000, an insurmountable obstacle for many young house hunters. Or, in New York City, where the median home price is $800,000, buyers need $160,000 up front.’
‘Industry insiders say all these factors have reduced the pool of buyers, lowering demand for homes and hurting prices.’
Here’s a couple of items to consider: maybe the $200-800k prices of the houses are an “insurmountable obstacle”, not just for young “house hunters”, but everyone.
Another thing, CNN: Why not mention that every single one of these “industry insiders” stands to make more money if house prices are propped up with govt intervention? That “Fannie, Freddie and FHA loans are all exempt from the requirements and they represent more than 90% of the market right now” is a shocking state of affairs! It can’t continue, and how this all shakes out is the biggest housing issue of the day, IMO.
“It’s disturbing,” said Lennox Scott, head of John LA. Scott Real estate in the Pacific Northwest. “We’re just starting to feel healthier in inventory levels and prices and this is a potential headwind.”
‘Or, in New York City, where the median home price is $800,000, buyers need $160,000 up front.’
One of many reasons never to own a home in New York City…
Here’s a couple of items to consider: maybe the $200-800k prices of the houses are an “insurmountable obstacle”, not just for young “house hunters”, but everyone.
Or something else to consider…maybe “young house hunters” can rent until they build up a 20% downpayment. I agree prices are too high, but I also don’t think every young adult should feel entitled to own. It wasn’t the thinking among myself and friends when we were in our 20s. Heck, I remember one of our friends bought a 2BR condo at age 25 or so and we thought he was a king.
I thought Co-Ops required 20% + 12 months of payments in the bank?
Five years ago I made ~$60K with no car and no debt, paid $1K for rent including utilites, and had expenses so low that I could live on cash-money. It took me 3 years for my income to rise to $60K, to pay off the college loans and to build up a 6-month emergency fund. After that, it took me 4 years to build up $20K in comfortably clear cash. Of course, my one-bed apartment would probably sell for $275K, and the nearest SFH was $400K. I guess I’m entitled to 10-20 years of scrimping.
I think 4-5 years is reasonably long enough to stuff young couples into apartments, especially if they want to start a family. Not that young are entitled to own, but they don’t even have a chance unless they have family money or win the powerball. That’s what FHA was for…
And why should anyone under, say 30, be entitled to make over 50k and be able to buy a house?
“I agree prices are too high, but I also don’t think every young adult should feel entitled to own.”
Are you actually suggesting households should be required to demonstrate financial responsibility before they are qualified to borrow several hundred thousand dollars?
UNFAIR!
Oxide it enters it but it is not for mass consumption, how are you going to mask a declining standard of with an asset bubble unless you get housing prices moving up?
but that will also likely further restrict lending.
I’m trying to remember the sound a big dog makes when it thrusts forward whilst firmly attached to a choke-chain…
I’m trying to remember the sound a big dog makes when it thrusts forward whilst firmly attached to a choke-chain…
If it was one of our dachshunds, it sounded like a death choke.
Those dogs did not like their choke-chains, but there was no other way to control them. They may have been small dogs, but they could pull on a leash like no one’s business.
“We think the new rules are appalling,” said the NAHB’s Howard. “Only the wealthy will be able to buy homes at low interest cost.”
1. I am not wealthy but could put down 20%.
2. It doesn’t say the less wealthy will not be able to buy homes, they just can’t get low interest teaser rates and on a $30K income buy a $700K house.
“Only the wealthy will be able to buy homes at low interest cost.”
Many years ago, in a far away land, it was said that banks would only loan you money if you didn’t need it.
‘The latest data from the Federal Reserve shows that nearly a quarter of people who apply for loans are turned down…’
Interpretation: Nearly a quarter of people who want to buy a home overestimate how much home they can afford.
Americans aren’t exactly known these days for their outstanding math skills, are they?
Interpretation: A full 25% of voluntary parasite hosts are being denied the right to shore up the failing REIC industry.
Only because they’ll die and clog up the trash bin before you can even suck enough out of them to be worth the hassle. We’re totally willing to destroy their lives, but only if we can make a profit doing it.
Obama tells Congress to grow up.
The Red Titans and the Blue Titans are putting on a Studio Wrestling Main Event over a few pennies on the floor. Queen Blue screams from one corner “Let the Seniors eat Happy Meals, oh the Seniors!” Viewers at home are threatened that the lights will be turned off at the park and Smokey will not get a paycheck. Obama says “we met them halfway with 33 billion, now get the job done”.
Not one mention that the current Narcissist in Chief is on track to double the national debt in just his first term. The whole thing is one horrible clown act.
Party matters not.
Time for individual investors to abandon stock and long-term bond Ownership Society territory to the top 1%? (Especially too-big-to-fail Wall Street investment banks with direct access to the Fed’s below-market-rate lending programs…)
And by all means, don’t be dumb enough to invest in a residential real estate money pit unless you have plenty enough money to flush some of it down the toilet…
Robert Powell’s Your Portfolio
April 6, 2011, 12:01 a.m. EDT
Don’t buy stocks and don’t buy bonds
Two legendary investors have conflicting points of view
By Robert Powell, MarketWatch
BOSTON (MarketWatch) — Don’t buy stocks. Don’t buy bonds.
It’s not uncommon for money-management experts to have conflicting points of view. What’s hard though is squaring up those opposing opinions and trying to figure out what to do with your own money given conflicting theories.
Case in point: The latest missives from two legendary investors, Rob Arnott and Bill Gross. The former argues against stocks for the long-term and the latter argues against bonds, or at least U.S. Treasurys.
Arnott, the chairman of Research Affiliates, examined in his latest newsletter the equity risk premium in the U.S. since 1802 and argued that “concentrating the majority of one’s investment portfolio in one investment category (i.e. stocks), based on an unknowable and fickle long-term equity premium, is a dangerous game of ‘probability chicken.’”
Meanwhile, Gross, the founder of Pacific Investment Management Co., known as PIMCO, and manager of its flagship Total Return Fund (PTTAX 10.89, -0.02, -0.18%) , explained in his most recent newsletter that he had dumped his U.S. Treasury holdings at the end of February because he sees little value in the market given the nation’s mounting debt burden.
For his part, Arnott, who coincidentally manages two broad-based PIMCO offerings — All Asset Fund (PASAX 12.38, +0.01, +0.08%) and All Asset Authority Fund (PAUAX 10.82, +0.01, +0.09%) — made the following case against betting one’s life savings on stocks. Most professional and casual investors like to point to research that shows that U.S. stocks have delivered excess returns over long-term government bonds of 4.4% since 1926 or 2.8% since 1802. But the truth of the matter is that most investors don’t have investment programs of 200-plus years or even 80-plus. Instead, the relevant time period for most investors are much shorter, 10 or 20 years, maybe even 30 years.
And when you look at the annualized returns of stocks vs. other assets over one, two and three decades, what you find is this: Investors aren’t being rewarded for bearing the risk of holding stocks. In fact, the equity risk premium — how much stocks gained in excess of U.S. government bonds — for the 30-year period a measly 0.53%.
In other words, stocks market investors took the risk and got paid nothing in return. What’s worse, “investors who have incurred the ups and downs over the past decade have lost money compared to what they could have earned from long-term government bonds,” Arnott wrote. “They’ve paid for the privilege of incurring stomach-churning risk.”
To be fair, Arnott did note in his newsletter that stocks do have a high tendency to outperform government bonds over 10- and 20-year periods.
…
Comment by Awaiting
2011-04-05 12:11:40
eastcoaster
Thanks for visiting us. We missed you. Any surprises regarding the house (Inspection advise or oversights?) or neighborhood?
How’s your son doing in his new home and neighborhood?
Don’t get to jump on the ol’ HBB as much as before, so just responding to this now. No surprises or oversights on the inspection (well, except for not indicating that the outside heat pump/AC unit was missing a required shut off switch but that’s been resolved because the first major thing I did was replace the heat pump). I did recently find out, because of a friend’s misfortune, that my homeowners doesn’t cover a dead sump pump and subsequent water damage without a special rider. I think insurance companies should spell that out up front when they know you have a basement, but I have since added it.
Neighborhood is still as great as I expected it to be. Son’s very happy! I really can’t complain. Still would rather have a partner in this venture (I think I’d be less worried about maintenance and upkeep), but life hasn’t gone that way so I’m on my own. And handling it for now. I’m almost 1 year into my 12 year plan (I said I wanted to make it work thru son’s HS graduation and then I don’t care anymore!). We’ll see how the next year goes.
Miss you all! The HBB will forever be one of my favorite cyber meeting spots.
Congrats / good luck! As snarky as I some times seem about the pitfalls of home ownership, I have to say we enjoyed the two homes we owned over the course of our life as a family…
I’m almost 1 year into my 12 year plan
Another American Optimist! Bully!
eastcoaster
Thank you for the reply, and lessons. You deserve the happiness.
Awaiting,
In retrospect, I am so glad I raised my son without the complications of a partner. He’s been on his own for nearly a decade now and we’re still great friends because of all the adventures we went through (and survived,) while he was growing up.
Having a homestead to build and plant and call our own was a hugely positive factor during all this. The grounding and stability it provided us made all the difference, I think.
I hope you two will be as happy with your memories as we are. He and/or his friends still hang out here whenever they get a chance to come “home,” (only now HE brings the wine.)
Sorry, EASTCOASTER. (It’s late)
My understanding is that gold also did quite well for individual investors during the first Great Depression, right up until the day FDR banned its trade.
MarketWatch First Take
April 5, 2011, 1:39 p.m. EDT
When FDR banned gold
Commentary: Gold ironically hits record on 78th anniversary of ban
By MarketWatch
CHAPEL HILL, N.C. (MarketWatch) — Tuesday marks the 78th anniversary of an event about which most Americans are completely ignorant, but one which looms quite large among an older generation of gold investors.
On April 5, 1933, President Franklin D. Roosevelt signed an executive order forbidding U.S. citizens from owning gold.
It remained the law of the land for more than four decades. Only on Dec. 31, 1974, was it finally repealed.
…
Wasn’t it only an amount limit? and not an out right ban?
What about wedding rings?
Yep — $100 in gold coins were exempt…
Executive Order 6102
Ryan: Debt on Track to Hit 800 Percent of GDP; ‘CBO Can’t Conceive of Anyway’ Economy Can Continue Past 2037 April 06, 2011
(CNSNews.com) – House Budget Chairman Congressman Paul Ryan (R-Wis.) said President Barack Obama’s budget strategy is to “do nothing, punt, duck, kick the can down the road” while the debt remains on track to eventually hit 800 percent of GDP and the CBO is saying it “can’t conceive of anyway” that the economy can continue past 2037 given its current trajectory.
ABQ Dan: Apparently the core of reactor 2 has melted through the containment vessel. What is your take on this new startling (sarc.) development?
Got a link?
http://uk.reuters.com/article/2011/04/06/us-japan-markey-idUKTRE7353Y820110406
Looks like Reuters may have pulled the article. Copy of it here while it lasts.
http://my.news.yahoo.com/japan-no-2-core-melted-reactor-vessel-rep-20110406-074730-667.html
Right now it is unconfirmed and at worse partial. The reactor is now producing 1% of the heat that it did when it was shutdown so if it did occur it occurred days ago and it did not lead to a major release of radiation so the vessel stayed together long enough. In the end this U.N. report says it all:
http://www.trust.org/alertnet/news/un-expert-sees-no-serious-fukushima-health-impact/
I think that is what I said on day one; no major health impact but the reactor(s) might be ruined. If has melted though it will make the clean-up more expensive, that will be bad for the shareholders, who will probably replace that management. This is the silver lining since had management dumped seawater on the reactors as soon as the water in the vessels began to seriously drop most everything that has occurred could have been avoided.
P.S. and another Reuters story says this:
Martin Virgilio, a top official for the U.S. Nuclear Regulatory Commission, said at a House of Representatives hearing that the NRC did not believe that the core of Fukushima’s reactor No. 2 had melted down. Earlier, Democratic congressman Edward Markey had said the NRC informed him that the core had become so hot it had probably melted through the reactor pressure vessel.
Somehow the above post is on the site prior to my earlier post. Weird. However, it will probably appear sometime so I will just say that it states that the U.N. does not believe this accident is a significant health risk. Finally, in an earlier post (many days) I mentioned that at three mile island the core started to melt into the vessel but did melt through it. Most likely this occurred in Japan and Markey just mixed up his facts, I don’t think the NRC changed its analysis. Wasn’t it Gore that stated that the earth is millions of degrees hot just a few feet below the surface or something similar? I would like to hear a debate between him and Palin on scientific issues.
a-dan, if you put a link into your comment, the comment gets put into moderation and Ben has to approve it. Posts with links tend to be delayed and appear out of order.
Thanks for confirming. I wondered if that might be occurring.
How ironic that a China Syndrome happens… near China.
They call it the “Brazil Syndrome”.
If I was wealthy and living in Japan, I would move. Do you think that will happen? Remember 1989 when the Japanese were buying everything in CA?
Please do not tell that to a realtor. “Buy now or be priced out by a Japanese buyer trying to escape the disaster.”
It would be truly sad to be a Japanese person buying in CA to escape the disaster, only to learn later on that you caught yourself a falling knife in the second leg down of the housing crash.
Late reply to drumminj:
Comment by drumminj
2011-04-05 14:13:09
Ideally I’d build the system myself with recycled materials for not a lot of money.
and it’d come with a pony, right??
That system sounds nice, but I wonder how effective it’d be in the Seattle area? you’d have some cold water this past week.
—————————————
A pony would be nice too, but I’m not sure where I would put it in the city. Goats are much easier and more accepted now in Seattle… Can I have a goat instead?
Note that it is only intended as a pre-heat system. So worst case, if you get no gain for a long enough period of time, the storage tank ends up equal to entry-water temperature, and the pre-heat becomes a no-op, but it causes no harm.
But you would still have hot water.
Just generated by the primary system, ideally an efficient tankless model that deals well with variable entry temps.
Surprisingly enough, Seattle does get enough solar gain to make solar systems worthwhile; it’s only about 60 percent as much as Albuquerque, NM, say, but still enough to be useful. It just means that you should bias designs towards a lower cost & more efficient hot-water system (as opposed to PV), so that you don’t have an unreasonably-long recovery period on the investment.
Note that it is only intended as a pre-heat system. So worst case, if you get no gain for a long enough period of time, the storage tank ends up equal to entry-water temperature, and the pre-heat becomes a no-op, but it causes no harm.
Wouldn’t you need some sort of system to pump the water? I’m not quite sure I understand how your system would work. Would the solar array be powering a heater, or would you simply get the water to the roof to be warmed by the sun?
And yes, you can have goats. It’s actually funny how many people I’ve talked to since moving here who like the idea of having goats…
And yes, you can have goats. It’s actually funny how many people I’ve talked to since moving here who like the idea of having goats…
Neighbors across the street used to have a goat. Looked like some sort of miniature, and oh was it a cutie. Much more pleasant to have in the neighborhood than their nasty barking dogs, which tend to go ballistic over kids walking to the school bus stop, nearby neighbors checking their mailboxes, or someone getting out of their car in their own driveway.
Much more pleasant to have in the neighborhood than their nasty barking dogs, which tend to go ballistic over kids walking to the school bus stop, nearby neighbors checking their mailboxes, or someone getting out of their car in their own driveway.
Slim, I get that your neighbors are bad dog owners, but I can tell you have a general dislike of the species.
Not all dogs are loud and obnoxious. And not all dogs bark obnoxiously. I could count on my fingers how many times my dog has barked (aside from at the dog park) in the seven years I’ve had him.
I get a lot of benefit from direct solar gain in my rolling aluminum “home” with its 360 degree window array. Even if it is freezing outside, the sun warms the coach up to where I have to open the windows. At night, it’s all about Merino wool and a good blanket. No pony though.
Taxes almost completed, things is lookin’ o.k., then eyes glanced upon this:
GlennBeckinstan’s Faux show dropped:
AP News / Yahoo
Increasingly, the show began to be dominated by Beck standing in front of a chalk board giving his theories about the world’s troubles.
More than 400 Fox advertisers told the company they did not want their commercials on Beck’s show.
(as in full of glee!)
heheeeheeeheehaahaaahaaheeehaahaaa… (Hwy50™)
Stephen Colbert described Beck’s “crank up the crazy and rip off the knob” moments.
Beck was a quick burn on… Faux News Channel Inc..
Pundits have shelf-lives, and Beck’s was up. Not to worry, Fox will just peddle the same ideas from a younger, prettier, and therefore more trustworthy face. When that guy is used up they’ll get another new guy. Lather rinse and repeat.
No different from labeling High Fructose Corn Syrup as “corn sugar.”
You know he frequently had the ball$ to expose the Federal Reserve and recently interviewed the author of “The Creature from Jekyll Island”. Between that and his constant unveiling of the anti American subversives, he had a huge target on his back. Bringing religion to the show would probably account for the drop in ratings.
Between that and (Glen Beck’s) constant unveiling of the anti American subversives, he had a huge target on his back.
Glen Beck IS an anti-American subversive. His ilk and their fascist anti-middle class policies have cause more damage to America than any “socialist” or “commie”.
He’s gone nickpapageorgio because his ratings dropped like a bomb because Americans began to see through his corporatist, lying crap.
You know it’s bad when even the corporatists withdrew support for the show!
If it is much of the stuff regular folks need to survive day to day then less likely it’s in the inflation data.
Where can I get the healthcare plans and the out of pocket costs that politicians in D.C. pay?
Is there any irony when ex-cabinet level politicians go right from Pennsylvania Avenue to lucrative corporate chair positions that require but a few hours a week of their time for fat compensation only to appear on NPR, CNN, Fox, etc. only to bad mouth corporate greed?
It has not escaped this dog that even those from several years past getting their digs in at chums overpaying for bubble homes are not more quiet as the pain has crept in to their lives too. Most folks feel the pain now, I say to the exclusion of the top percent and their lapdogs in D.C of both parties who don’t know how to change a tire or worry about med co-pays because being chauffeured and advised by the best specialists frankly becomes SOP.
“One of the secrets of the growth of the welfare state is that politicians get a lot of mileage out of making promises, without setting aside enough money to fulfill those promises.”
~Thomas Sowell
Thomas Sowell
Oh, he’s thoughts long-n-hard for that discovery of Nature. (Probably got locked in over-night at one of Stanford’s libraries.)
Does a shutdown mean that Obama and his entourage would be on foot instead of flying around in helicopters and jets and black suv’s?
No the party rolls on at Barrys crib.
Oh to be a fly on the wall…
Do you really want to take the chance the “football” will get carjacked?
Might be safer with a carjacker than Obama judging by the way we are fighting the war in Libya.
A local acquaintance has a relative who takes a child to the daycare that’s across the street from the Obamas’ Chicago residence. Relative reports that the posse guarding the place has quite the array of gasoline-burnin’ vehicles. And they’re there 24/7.
I seriously doubt this little p-boy has the guts to kill himself. Always looking for attention like a spoiled brat.
‘I’d kill myself first!’ John Edwards ’suicidal’ over facing jail, claim pals
~ By Daily Mail Reporter
Disgraced politician John Edwards is said to be deeply depressed - to the point of being suicidal - over the prospect of a criminal trial that could end with him being jailed if found guilty.
The 57-year-old former Presidential candidate reportedly told a close friend: ‘I won’t go to jail. I’d kill myself first!’
Fallen: John Edwards, left, looking tired and drawn in at the funeral of wife Elizabeth last December and, right, as a fresh and fuller-faced Democratic presidential hopeful in 2004
According to the Enquirer, a close source said: ‘I think John is suicidal. He knows that if he’s indicted, prosecutors will try to get him to serve jail time and make an example of him.
‘He’s absoluetly despondent over the fear of prison.
‘Over the last year, he’s lost about 20lb and friends are concerned that he’s escaping reality with booze.
According to the Enquirer, a close source said
Really wmbz, that stuff will rot your brain, both of ‘em!
The only “criminal trial” I see being mentioned after searching Google News is in the gossip papers.
The REAL news just seems to be about hearings.
Other than having an extramarital affair and running for President as a Democrat, has the man even committed any crimes?
No. His looting of private companies was perfectly legal.
In that case, shouldn’t he be held up as an American success story and offered a lucrative position on Wall Street?
‘Over the last year, he’s lost about 20lb and friends are concerned that he’s escaping reality with booze.
Recall from American history that Nixon did quite a bit of boozing while in the White House. Especially during his second term.
After he left the WH, Pat proved to be no slouch in the drinking department. She’d get so crocked that she’d have to crawl across the lawn to get back into the house.
“Especially during his second term.”
Wouldn’t you have drunk a lot if you had been under suspicion, as POTUS, of conspiracy to commit burglary? How embarrassing can life get before tipping the bottle (or otherwise imbibing in hard drugs) becomes obligatory?
Whata a news day, figures whilst I’m trying to figure and the cat’s meowin’, the bird’s is chirpin’ and the “TrueAnger™” is poutin, whining, stompin’ their dug in heels:
“ReduceTheDeficitNOW!whilstamericaisfightinx2foreignwars+x1FrenchNATOhandoffskirmishandthecheney-shrub8yeareconomiclegacyisstillcastingadarklongrecessiveshadow!”
For instance, military personnel who remained on the job would still earn their pay but would not actually receive it until a funding bill was passed by Congress.
The IRS would continue to process the majority of filings that come in electronically and would issue refunds for those e-filed returns. But the 30% of tax returns that are still filed on paper would not be processed, and those refunds would have to wait.
By TODD SPANGLER /DETROIT FREE PRESS / WASHINGTON STAFF
Could oil, housing, and spending cuts derail the economy?
NEW YORK (CNNMoney) — The recovery is slowing, and economists are slashing their forecasts for economic growth.
Of the 16 economists surveyed by CNNMoney, all but two have reduced their first quarter economic growth predictions within the last month. Eleven have cut their expectations for the entire year.
Back in March, economists were expecting the economy to have grown at a rate of 3.3% in the first three months of this year. But now, those predictions have dwindled down to an average of just 2.7%.
The reasons? Rising oil prices, a weak housing market and looming cuts in government spending.
“Our reduced forecast is based on higher oil prices and higher odds of premature fiscal tightening,” said Bill Cheney, chief economist with Manulife Asset Management. “In the absence of those forces I would probably have raised the forecast.”
One economist who has not cut his forecast admits that he might have to soon.
“We are worried that in light of recent weakness … we are about one percentage point too high [on first quarter economic growth],” said Joseph LaVorgna, chief U.S. economist for Deutsche Bank. His first quarter forecast now stands at 3.8%.
The economic growth rate is adjusted for inflation, so higher prices for commodities such as oil can be a drag on the number.
But perhaps most importantly, the steady rise in gasoline prices in recent months has acted like a tax on consumers and businesses, cutting the amount of money they have to spend on other goods services.
Acting like a tax? It’s not acting like a “tax,” it’s acting like a “price increase.”
But of course, it’s way cool and fashionable to connect anything to those evil taxes these days.
Acting like a tax? It’s not acting like a “tax,” it’s acting like a “price increase.”
Thank you for making the distinction. +1 and all that
Who pays these geniuses to forecast what is already past?
Other geniuses, of course!
You gots to be smart to understand rocket surgery!
“Rising oil prices, a weak housing market and looming cuts in government spending.”
= CRUNCH. (But they forgot to mention the Fed’s likely renewal of QE on signs of economic weakness…)
“looming cuts in government spending.”
This is why I question the wisdom of cutting the deficit now. I think the Republicans have a 3-fold strategy.
1.Tank the economy and reduce the Obama’s chances of getting re-elected.
2. Use the deficit as a tool to cut programs they disfavor.
3. Prepare to ramp spending back up for their favored programs once they claim control of the Legislative and Executive branches of government. At that point, deficits won’t matter again.
It’s a win-win-win! /snark
Aw heck, taxes can wait a bit, eyes need to laugh,…and get something to soothe the over-worked right-side brain. (Nows I can already see my Big Bro justa smirk, smirk, smirking,: “Hwy50 that’s yous problem, it’s the left-side you have to over-work, taxes = left-side! …you’re such a Blockhead!”
Show-and-touch breast implants for kids
April 6th, 2011,by Colin Stewart / OC Register
KIDS AND BREAST IMPLANTS
Career day at a Virginia elementary school turned into a show-and-touch day when a plastic surgeon showed up with samples of breast implants.
“I’m still shocked and appalled that my 9-year-old saw and touched a breast implant,” one parent said.
The doctor could not be reached for comment.
It’s a bag filled with silicone. Big deal.
Now touching a real breast at school…. that’s a problem.
Depends on who is touching who…..
Signed,
Mr “Back of the Bus during HS Marching Band Road Trips”……
The doctor could not be reached for comment.
Call to the doctor’s office: “I’m sorry, he’s with a patient right now.”
Okay, says the enterprising reporter, I know what I’ll do. I’ll dress up like one of those pharma sales rep babes. Then he’ll see me.
Enterprising reporter dons the babe costume, goes to the doctor’s office, where she’s greeted by the Receptionist From Hell. But, no worries, she’s a pharma-babe.
And that’s how she gets into the doctor’s office for an ambush interview. Wouldn’t y’all just love to be a fly on the wall?
That’s pretty much a non-event in the OC, eh?
“That’s pretty much a non-event in the OC, eh?”
…would, but I’m in the comment-queue purgatory.
IDK, maybe someone here can offer up another POV:
http://en.wikipedia.org/wiki/The_Real_Housewives_of_Orange_County
Man these guys have balls
Times are bad, middle class dieing, elite making money hand over fist, taxes on elite at historic lows. What to do
Slash benefits for middle class and increase the tax on them vs the rich.
Simply put, the code is too costly and too burdensome,” Ryan wrote in his proposal. “The code is also patently unfair, as many of the deductions and preferences in the system — which serve to narrow the tax base — are mainly used by a relatively small class of mostly higher-income individuals.” See below.
The problem, according to tax experts, is that every deduction, exemption and credit, every layer of complexity, is important to somebody. In some cases, millions of somebodies. Ryan’s budget doesn’t single out any tax break for elimination.
“You can’t get there without going after things like the deduction for mortgage interest, the deduction for state income taxes, the exclusion for employer-provided health care benefits,” said Clint Stretch, a tax expert at Deloitte Tax LLP.
“Note these deductions aren’t allowed for the rich due to AMT. Thus this is cutting taxes for the rich and crushing the middle class. ”
In 2009, nearly 35 million taxpayers got a tax break for paying interest on their home mortgages, and nearly 36 million taxpayers took the $1,000-per-child tax credit. About 41 million households reduced their federal income taxes by deducting state and local income and sales taxes.
Ryan’s goal for a top tax rate of 25 percent
Yahoo.com
“Slash benefits for middle class and increase the tax on them vs the rich.”
Isn’t this basically the Kochtopus plan?
‘Make the top 1% richer than ever, and screw the rest of you losers.’
Well, looks like “TrueAnger™” + “TrueReducetheDeficitNOW!™” hit a high-court hurdle straight outta-the-starting blocks…
Wisconsin supreme court election amazing result
‘Nonpartisan’ but liberal-leaning JoAnne Kloppenburg leads the conservative incumbent in Wisconsin. Wow
The Milwaukee Journal-Sentinel
As you’ll recall, it’s a nonpartisan election, but Kloppenburg tends toward the liberal side of things, Prosser the conservative. He is the fourth member of a 4-3 conservative majority on the state’s high court. She would flip the balance leftward, as decisions surely approach having to do with Governor Scott Walker’s “repair” bill. A defeat of a sitting justice, the paper notes, is a “rare” thing. One lost recently, in 2008. Before that it had been 41 years since it happened.
In other Wisconsin news, the Democratic candidate mauled the GOP candidate for county executive, 61-39%. That’s the job Scott Walker previously held. Think the people of Milwaukee County were sending a message?
It proves that there are states in this country where strong tea-party and liberal elements coexist and success is basically a matter of which side is angrier and more motivated to vote. That’s in off-year elections. In presidential years, Wisconsin is very likely a stable blue state, as I’ve long said. Walker is just making it more so.
Uppity low level employee doesn’t seem to know her place. Hope she loses her pension.
oh wait…
Lloyds bank worker fired for comparing her salary to boss’ on Facebook
London, Apr 6 (ANI): A worker for Lloyds Banking Group in Britain was fired from her job for comparing her 7-pounds-an-hour wage to her boss’ 4,000-pounds-an-hour salary on her Facebook page.
Stephanie Bon, 37, from Colchester, Essex, was working as an HR assistant for Lloyds when she heard about her new chief executive’s mammoth salary.
“LBG’s new CEO gets 4,000 pounds an hour. I get 7 pounds. That’s fair,” the Daily Mail quoted Bon as writing on Facebook.
But after her bosses heard about the comment she was marched from the offices and fired.
“Stephanie Bon’s departure had absolutely nothing to do with Facebook. Stephanie was employed via an agency on a short-term 7-day rolling contract,” he said.
7 pounds an hour is just barely over min wage over there.
Nothing like being a serf. I wonder how long until the boss gets the right to bang a future bride before her wedding?
Right after they change the child labor laws.
http://news.google.com/news/search?aq=f&pz=1&cf=all&ned=us&hl=en&q=child+labor+laws
Well, I’m back from running errands, which include a lunch hour meeting with no food. (Grrrrr! said my Slim stomach. I left early and came home for a proper lunch.)
Any-hoo, I had to stop to pick one thing up at the Office Max. I think I was one of just three customers in a store the size of a barn on steroids. And, from what I experienced, it looked like the employees who weren’t stocking shelves were really hurting for things to do.
I know we’ve talked about Borders over-expanding with its retail outlets, but I can’t help think that the office supply market is over-stored too.
Well, I stopped in Michaels this morning and bought about $2 worth of craft paper, and there were six employees in the front of the store. I think I was the only customer for a while, but two came in as I was leaving. Must be tough to make payroll with the sales like mine.
I hear ya, Kim. My purchase of one item was under $15, including the sales tax.
Pikers. I stopped by Borders as I walked back from the new dentist. Most stuff was 50% off and an extra 10% just because it was Wednesday. Got three large format paperbacks for $21 including tax. I really wanted some reading glasses, but they were sold out a while ago. Store is closing in about 10 days. They are selling the fixtures too.
Got any insider updates on likely prospects for a govt shutdown?
“bought about $2 worth of craft paper”
Geez, you don’t have to brag. How many pieces of paper can you ski behind?
“but I can’t help think that the office supply market is over-stored too.”
We have an Office Depot and and Office Max in our little burg and both places are always deserted (perhaps the survive via business accounts?). So what happened?
A Staples opened up as well!
Middle daughter started “Dog Grooming” school this week. She started at one of the national chains as a part time “dog bather”, but has been working 40 hour plus weeks since she’s been there.
The store is sending/paying for her to school, with the agreement she will stay for a year after she’s back.
Evidently, dog grooming is a booming business, at least locally. Lots of people having “fur babies” instead of regular ones.
After a month of training, she’ll be pulling down more money/week than I am…….which I find exceptionally depressing, from a personal perspective.
Meanwhile, for all of us in technical fields, the beatings will continue until morale improves. If you have a problem with it, you can go to Helen Waite.
You don’t have to send “fur babies” to college
Yeah, but……
Never mind.
(I was going to say “At least most college kids don’t pi$$ on the floor…..)
“Meanwhile, for all of us in technical fields, the beatings will continue until morale improves.”
Spot on!
My suggestion: Develop an internal compass which buoys your morale when no external factors warrant it.
Reluctantly went to the doctor’s office today. I’ve been on the same blood pressure and cholesterol meds for almost ten years, but she insists that I have a yearly physical and lab tests before she will renew my prescription. Never mind the fact that they always check out okay.
The Medical/Wellness Industry just doesn’t get it. Like the folks inside the Beltway, they don’t seem to realize that everyone in Flyover has one foot in the Financial Grave, and the other on a banana peel.
Told them that I have no insurance, and didn’t have the money to do any labs that weren’t necessary. Also wanted an estimate of the lab charges, so I can budget it. They had no idea, and had to call the lab where they send the stuff, got the info 2-3 days later.
Went in @ 10am. Two years ago, the place would be packed, Today, it was me and three other people. Twice as much staff standing around grab-azzing as they had patients. Seems that the run up in Ramen and cat food prices is cutting into even the elderly’s copay money.
First ones to go will be all the “specialists” filing insurance claims. No need to file claims, when no one has insurance.
My doctor keeps telling me I need a mammogram and colonoscopy, both things at the bottom of my “fun things to do” list. I told her it would wait until after my youngest graduates from college in 6 months.
My folks are 86 and 90. Skin cancer and osteoporosis may be in my future. But I am not terribly worried about breast and colon cancer, especially in the short term.
Amazon is killing all bricks and mortar co’s.
No tax, no driving,and better prices, next day shipping for $3.99 , if you get Prime. Prime is free for some.
Invest in UPS I guess??
I’ve heard too many horror stories about UPS service.
However, I’ve had no problems with them.
I would invest in FedEx. Although I hate the CEO for whining about corporate taxes.
Buddy of mine had a FFL licence back in he day.
He never shipped guns via UPS. They would always disappear.
Went to a Fedex Hazmat Shipping course a while back. The guy doing the training had some good war stories.
If some may recall, a Fedex DC-10 caught fire in flight a few years back, crew made an Emergency Landing in Newburgh, NY (Stewart), and got out before the airplane completely burned up.
Said that Fedex and various local Feds found all kinds of interesting, undeclared stuff during the investigation. Drugs, and 20-30 undeclared handguns, among other things.
And shipping biohazard stuff not declared as hazmat really pizzes them off, especially when it starts leaking all over the sorters/conveyors in Memphis.
After Valujet, the Feds started getting serious with this stuff.
One shop I know of got fined $250K for shipping FOUR fuel controls that didn’t have all of the fuel drained from them. We’re talking pints or less, of jet fuel.
Your PSA from XGSFIXR……..
“Invest in UPS I guess??”
Fuel price increases will hurt them, no?
Or they pass it on to the customers.
“Or they pass it on to the customers.”
And these customers will pay with…?
UE checks finally running out.
Unemployment Falls in Three-Quarters of US Cities
http://news.google.com/news/more?pz=1&cf=all&topic=b&ncl=dHvzBwnjiQ6_k8ME8CZHNU35iC5SM
Underemployment increases.
Here in small town Arizona we have an Office Max that has six employees and rarely a customer in the place. One of the employees looks like the guy that shot Lennon, and he’s always blabbering away on one of those old style headsets. Six employees no customers, but just try to find someone to help you without chasing one of them down. How do these sad places stay in business with cheaper online shopping anyway?
Their prices for electronics can be outlandish, compared to Fry’s or Best Buy. The Office Max a few blocks from here wants $65 for an 8Gb USB flash memory stick. At Fry’s, it’s a third of that price.
“How do these sad places stay in business with cheaper online shopping anyway?”
Pension fund investors and other suckers.
When I lived in Miami I used to know of some small businesses (pizza joint, office supply store, bead and candle shop, espresso bar) that from all accounts hardly made any sales, but who needs many sales when the business is just a front for all the coke, speed, and weed that’s sold to ‘preferred’ customers?
Nothing like owning a seedy pizza and media noche shack and parking your twin turbo Porsche in the back. Bet there’s a whole waddle of USA real estate that was bought with dope profits through ‘we’ll look the other way for a nice tip’ real estate agents.
Nothing like owning a seedy pizza and media noche shack and parking your twin turbo Porsche in the back. Bet there’s a whole waddle of USA real estate that was bought with dope profits through ‘we’ll look the other way for a nice tip’ real estate agents.
Years ago, there was a picture framing shop near the University of Arizona that was a rumored money-laundering front. Then it moved to Fourth Avenue, which is quite the hoppin’ retail location. I don’t recall it doing a booming walk-in business there either.
It’s now out of business, and I don’t know why it went under.
However, since that time, the local restaurant biz has become quite the place for money laundering. Not surprising, given the amount of cash that goes through those places.
My bro in the BP has a new definition for the dictionary…
Police Dogs = “Long Range Tasers”
Two things from today:
1. One of my close work buddies got RIF’d today. Devastating. The upside? They can walk away from the house now, leave Florida, and lay the blame on someone else.
2. Went and viewed 6 homes with my realtor. 2 under contract, and one by, drumroll…. a family from Japan. The neighborhood where we had a contract last June has another that I like. Needs a ton of work, so we might insult them with an offer.
“so we might insult them with an offer.”
As long as you insult them.
+1 That’s too funny!
Muggy
Good to hear you found a home of interest. When you say ” a ton of work” are you talking cosmetic or structural?
It is our experience, sellers seem to not understand the concepts of deferred maintenance addressed and upgrades. Thus their bragging ,and our response seldom overlap. It drives us nuts. Keep us up to date on this journey.
Lynn Szymoniak was on the HBB long before ‘60 Minutes’.
Woman on ‘60 Minutes’ has foreclosure dismissed
By Christine Stapleton Palm Beach Post Staff Writer
Posted: 7:03 p.m. Tuesday, April 5, 2011
WEST PALM BEACH — A judge dismissed the foreclosure case against Lynn Szymoniak, the Palm Beach Gardens lawyer featured Sunday on 60 Minutes, but gave the bank 30 days to refile the lawsuit with appropriate, verified documents.
At a brief hearing Tuesday, Circuit Judge Jack Cook dismissed the case after finding that the note for the loan was not attached to the original foreclosure complaint. Deutsche Bank filed the foreclosure case in 2008, shortly after a dispute with her lender, Option One Mortgage, over her adjustable rate mortgage.
Szymoniak’s attorney, Mark Cullen, said the ruling is good news, even if the bank refiles . In a new lawsuit the bank would be required to attach the note for the loan.
Initially, the bank said it lost the note. Then the bank found the note. However, the date on the newly found document showed that Deutsche Bank did not acquire the loan until several months after it sued Szymoniak.
http://www.palmbeachpost.com/money/foreclosures/woman-on-60-minutes-has-foreclosure-dismissed-1378008.html - -
Comment by jeff saturday
2011-01-16 06:25:12
Tracing the signs of foreclosure traps
By Christine Stapleton Palm Beach Post Staff Writer
Posted: 9:43 p.m. Saturday, Jan. 15, 2011
WEST PALM BEACH — Somewhere, presumably Georgia, lives a woman named Linda Green. According to investigators, her signature - and variations of it - appears on hundreds of thousands of questionable mortgage documents.
One of those homes belongs to Lynn Szymoniak, a Palm Beach Gardens lawyer who specializes in white-collar crime. Szymoniak, 61, has ferreted out economic crimes for years and federal prosecutors have called her as an expert witness in four trials. In July 2008, after negotiations with her lender over an increase to her adjustable-rate mortgage failed, she received foreclosure papers on her home.
What she saw “made no sense.”
The company servicing her mortgage was in Dallas. Linda Green was in Alpharetta, Ga. S zymoniak launched an investigation of her own foreclosure.
http://www.palmbeachpost.com/money/real-estate/tracing-
the-signs-of-foreclosure-traps-1188396.html - -
Name: SZYMONIAK LYNN E
Mailing Address: 8268 MAN O WAR RD
PALM BEACH GARDENS FL 33418 7719
Apr-1998 10392/0989 $392,800 WARRANTY DEED
SZYMONIAK LYNN E
1. BAS BASE AREA 3018
2. FOP FINISHED OPEN PORCH 275
3. FOP FINISHED OPEN PORCH 105
4. FGR FINISHED GARAGE 736
Total Square Footage : 4134
Total Area Under Air : 3018
Year Built 1991
POOL - IN-GROUND 1991
This house is in Steeplechase in PBG. Exclusive neighborhood where homes went for over a million at the peak. I would be willing to bet this “expert witness” victim took out at least $300k in a cash out refi.
“However, the date on the newly found document showed that Deutsche Bank did not acquire the loan until several months after it sued Szymoniak.”
She may deserve to lose her house. But this, is egregious. Having standing to sue is a fundamental principal that should not be compromised for banks and enforced for peons.
OK, smart people. how does one move a couple of hundred thousand out of the U S untraceable to another countie’s bank?
Hypothetically, of course.
goldmoney.com and the like? One of them will let you withdraw bullion in another country.
Stuff kilo bars of silver in your underwear?
seems traceable.
the 20 yr chart for gold scares me.
the 20 yr chart for gold scares me.
you don’t need to keep the money in bullion. But it’s a way of getting money out of the country without a direct wire transfer. I’m sure it’s traceable, though.
Conservative Crazie Paul Ryan promises housing prices will go back to 2006 levels if all endorse his plan(fraud).
Can’t wait huh?
What a dumb fook. Does he even read the newspaper? Home prices in many areas are already back to 1999 levels. D’oh…
Trying to figure out exactly what in Ryan’s proposed budget would supposedly “rejuvenate” the housing market. So far all I can find is sound bites (aka bull manure). The guy looks like a cross between a religious zealot and a used car salesman (not to suggest there is a meaningful difference between the two).
As to the likelihood that supply side economics will serve to reflate the housing bubble, I wonder if Ben Jones could recount how great Reaganomics supply-side economics was for the Oil Patch housing market back in the mid-1980s?
Supply side economics underpins Ryan budget roadmap
By John Dimsdale Marketplace, Wednesday, April 6, 2011
Rep. Paul Ryan’s roadmap says slashing spending and taxes would generate billions in tax revenues, a new housing boom, and give us 2.8 percent unemployment by 2021. Really?
…
The best part about the scepter of a government shutdown is that it lowers the risk that some whack-job Republitard ticket (e.g. Palin-Bachmann) will win the White House in 2012, as the Republitards will clearly and deservedly reap the blame for the shutdown, just like they did in 1995. It’s an embarrassment to the U.S.A. that anyone should even have to worry about a Palin-Bachmann administration, but such is the sad state of our country today.
POLITICS
APRIL 7, 2011
Shutdown Holds Risk for GOP
By JONATHAN WEISMAN And NEIL KING JR.
A new WSJ/NBC News poll explains why government officials are at loggerheads over how to deal with the budget, politics reporter Jonathan Weisman explains.
With Congress staring at a possible government shutdown, Republican lawmakers are caught between their conservative base insisting they hold their ground on deep budget cuts and political independents they will need in the 2012 election who are pressing for compromise, a new Wall Street Journal/NBC News poll finds.
The budget standoff appeared to move little on Wednesday. High-level negotiations to avert the shutdown continued without signs of progress, but lawmakers in both parties said they hoped they could reach a deal to keep government operations funded before a deadline of Friday at midnight.
The poll of 1,000 adults, conducted March 31 to April 4, shows Republicans, especially those aligned with the tea party, ready to fight for budget cuts. Sixty-eight percent of tea party supporters say Republican leaders should stick to their positions on the budget, even if that means no consensus can be reached. Only 28% advises GOP leaders to compromise.
Among all Republicans, 56% called for GOP lawmakers to stick to their positions, while 38% called for compromise.
That kind of pressure has prompted the Republican-led House to approve a bill calling for $61 billion in budget cuts in the current fiscal year, far more than Democratic lawmakers want.
The two parties are stalemated on a plan to fund government operations through Sept. 30, an impasse that would trigger a shutdown if no agreement is reached.
“The Republican Party had better buck up…and defund programs that are draining the budget,” warned Tom Hughes, a 65-year-old retiree in La Paz, Ind., whose household was called as part of the poll. “If they don’t, the tea party will replace them. I don’t want any compromising,” said Mr. Hughes, who tends to vote Republican.
…
Romney certainly has much better hair than The Donald.
POLITICS
APRIL 7, 2011
Romney Leads GOP Field as Trump Pops Up
BY JONATHAN WEISMAN AND SCOTT GREENBERG
Former Massachusetts Gov. Mitt Romney appears to be the early front-runner in the largely unformed race for the Republican nomination for president, according to a new Wall Street Journal/NBC News poll.
But real-estate magnate Donald Trump is making waves as a surprise alternative amid grumbling about a weak GOP field.
Among Republican primary voters, Mr. Romney captured the support of 21% in a nine-candidate field. Mr. Trump was tied for second with former Arkansas Gov. Mike Huckabee, with 17%.
…
April 6, 2011, 12:24 PM ET
Fed Would Stay Open Amid Government Shutdown
By Luca Di Leo
As the battle over the U.S. budget threatens to leave the government without money starting from Friday, there’s at least one key agency that would not be affected: the Federal Reserve. But its job may be complicated if other parts of the government close.
Since it doesn’t rely on Congressional funds, the U.S. central bank would remain open for business as usual, with normal staffing levels. The Fed would therefore be able to continue with its day-to-day operations, such as buying some $7.0 billion U.S. Treasurys on Monday, April 11. The government bond purchases, due to run until June, are part of the Fed’s latest effort to stimulate the economy.
One potential danger for the Fed is that the data it needs to take policy decisions to steer the economy in the right direction may be delayed. That would only be a problem if the shutdown lasts a long time, an unlikely scenario.
…
This is an awesome suggestion! I’m sure HOAs all over the U.S.A. will welcome this scheme!!
Can’t pay your mortgage? Get your house painted as a billboard
Posted by Bob Moon
on April 6, 2011 12:37 PM
If you’re looking for a sure way to alienate your neighbors, a fledgling advertising firm based in Southern California just launched this promotional offer: AdZookie.com says it’ll pay your mortgage for up to a year, if only you’ll agree have your home painted — as a massive billboard.
…
Shouldn’t a tax holiday come with the shutdown?
Tax Day looms in face of possible government shutdown
By David Gura Marketplace, Wednesday, April 6, 2011
In a shutdown, people filing paper tax returns may be out of luck when it comes to a quick refund. People who e-file may have a different experience.
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I know from my high school tennis days that poor playing conditions favor the weaker player. Whenever someone challenged me who I thought had a serious chance to bump me from my spot on the team, I would schedule the match for the windiest day possible, which usually played into my relatively weak hand.
Given the Republicans are the weak party from an executive incumbency perspective, they are the party which stands to gain the most from the nuclear option of freezing the federal debt limit. Look for them to soon play this card, or at least to score lots of political points from threatening to do so, as the ensuing renewed financial panic would serve to level the 2012 election playing field, thanks to the unresolvable blame game over whose fault it was the debt ceiling could not be lifted.
Markets weigh two U.S. shutdowns: 1 bad, 1 awful
By Kevin Drawbaugh
WASHINGTON | Wed Apr 6, 2011 1:20pm EDT
(Reuters) - Investors are facing two possible U.S. government shutdown scenarios, one of limited impact on markets, and another so potentially devastating that analysts are struggling to fully assess it.
Neither is sure to occur, but the limited-impact version seemed distinctly possible on Wednesday as Democrats and Republicans argued over the federal budget. It would involve the expiration at midnight on Friday of a stop-gap spending measure known as a continuing resolution, or CR.
The nightmare shutdown scenario, still a few weeks away, would involve Congress failing to raise the national debt ceiling and possibly an unprecedented government debt default.
“A CR shutdown is a big deal, but not Armageddon,” said Chris Krueger, a policy analyst at financial group MF Global.
“A default shutdown … would result in panic in both the equities and bond markets,” he said.
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Free time shares for everyone!
‘Free’ time shares: Owners cut losses by dumping Florida units online
By Sara K. Clarke
Orlando Sentinel
Updated: 8:36 a.m. Wednesday, April 6, 2011
Posted: 8:35 a.m. Wednesday, April 6, 2011
Until recently, Alan Cole was the proud owner of a three-bedroom time share a mile from Walt Disney World, with two screened decks, multiple pools and a Jacuzzi at his disposal.
But after a few years of mostly renting out the unit instead of using it, the 68-year-old retiree from McLean, Va., decided to cut his ties to that time share — and give it away online.
“It was favorable for both of us,” said Cole, who noted that the new owner paid the closing costs, the resort transfer fee and this year’s maintenance fees. He had bought the unit secondhand, so as far as he’s concerned, “We got our value out of it while we owned it.”
Cole’s time-share giveaway is just one of hundreds on the Internet these days, many of them involving units that once sold for thousands of dollars. Some owners, desperate to be rid of time shares that have become financial burdens as a result of the housing slump or recession, are even willing to pay closing costs and future maintenance fees.
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Foreclosure crisis: Fed-up judges crack down on disorder in the courts
By Christine Stapleton and Kimberly Miller
Palm Beach Post Staff Writers
Updated: 7:11 a.m. Monday, April 4, 2011
Posted: 7:57 p.m. Saturday, April 2, 2011
Angry and exasperated by faulty foreclosure documents, judges throughout Florida are hitting back by increasingly dismissing cases and boldly accusing lawyers of “fraud upon the court.”
A Palm Beach Post review of cases in state and appellate courts found judges are routinely dismissing cases for questionable paperwork. Although in most cases the bank is allowed to refile the case with the appropriate documents, in a growing number of cases judges are awarding homeowners their homes free and clear after finding fraud upon the court.
Still, critics say judges are not doing enough.
“The judges are the gatekeepers to jurisprudence, to the Florida Constitution, to access to the courts and to due process,” said attorney Chip Parker, a Jacksonville foreclosure defense attorney who was recently investigated by the Florida Bar for his critical comments about so-called “rocket dockets” during an interview with CNN. “It’s discouraging when it appears as if there is an exception being made for foreclosure cases.”
In February, Miami-Dade County Circuit Judge Maxine Cohen Lando took one of the largest foreclosure law firms in the state to task in a public hearing meant to send a message. She called Marc A. Ben-Ezra, founding partner of Ben-Ezra & Katz P.A., before her to explain discrepancies in a case handled by an attorney in his Fort Lauderdale-based firm.
“This case should have never been filed,” said Lando, who referred to the firm’s work on the case as “shoddy” and “grossly incompetent.” She called Ben-Ezra a “robot” who filed whatever the banks sent him, and held him in contempt of court. She then gave the homeowner the home - free and clear - and barred the lender from refiling the foreclosure.
Attorney Maria Mussari, who represents the homeowner, said she wasn’t surprised.
“She has become a voice for other judges,” Mussari said. “If judges crack down on following the rules, we’ll still have foreclosures, but maybe the banks will pay attention and do it right.”
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We’re Number Two!
Can anyone recall when I was the voice of one crying in the wilderness on shadow inventory, circa 2006? Now even the NAR is openly acknowledging it, though these numbers in the hundreds of thousands seem lowish, given other reports that millions of mortgages are currently in default status. I’d have to guess that “more than expected” of these defaults will prove incurable.
We’ve come a long way, babee!
Surplus in shadows: Unlisted homes in financial limbo threaten Florida prices
By Kimberly Miller
Palm Beach Post Staff Writer
Updated: 10:44 a.m. Monday, April 4, 2011
Posted: 6:51 p.m. Sunday, April 3, 2011
The forecast could be dim for the Sunshine State as a looming market of distressed and discounted homes threatens a struggling recovery.
According to a new report from the National Association of Realtors, Florida’s “shadow inventory” ranks No. 1 in the nation with 441,461 homes statewide. California is in second place with 227,961 homes.
Shadow homes are ones in limbo — bank repossessions, those with delinquent loans, and ones in foreclosure that are not yet listed for resale.
The size of the shadow is grim news for Florida’s home values, which could take a dive as the properties are listed and start trading hands for cheap.
Palm Beach County’s median home value has proven fragile in the past year, slipping under $200,000 in January before rebounding in February to $205,400.
“That cloud just keeps hanging over us,” said Tim Becker, director of the University of Florida’s Bergstrom Center for Real Estate Studies, referring to the shadow inventory. “The question right now is: When will the homes come on the market and over what period of time?”
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Smells like opportunity!
But in whose lives: Ours, our children’s or our grandchildren’s?
TECHNOLOGY
APRIL 7, 2011
Federal Workers Brace for Email Withdrawal
By JANET ADAMY
Federal employees are already fretting about a side effect of a possible government shutdown: surrendering their work-issued BlackBerry devices.
An administration official said Wednesday that if the government can’t avert a shutdown by the weekend, non-essential workers would be asked to report to work Monday and turn over their BlackBerrys, laptop computers and other devices that allow them to access the office computer systems. Then the employees would be sent back home.
“If an employee is furloughed, it is illegal—a criminal violation—for them to work,” the official said.
In Washington, as in workplaces across the country, email is a vital—if lamented—thread of work and social life, and the prospect of being cut off has some staffers panicked. This wasn’t a factor during the shutdowns in the mid1990s, which happened before email devices were commonplace.
Mary Kahn, a senior public-affairs specialist in the office that administers Medicaid, said (in an email) that she is pondering “a 12-step BlackBerry withdrawal program.”
Others are preparing to reroute work email to other electronicdevices. Like much about the potential shutdown, it isn’t yet clear if federal email will continue undisrupted; most government websites won’t continue operating.
Speaking about his work BlackBerry, Rodney Whitlock, health-policy director for Iowa Republican Sen. Charles Grassley, said, “I have a Pavlovian response that I swear sometimes I feel like my hip’s vibrating when it’s not there.”
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David Callaway
April 7, 2011, 12:01 a.m. EDT
Why the government should shut down
Commentary: A national civics lesson is long overdue
By David Callaway, MarketWatch
SAN FRANCISCO (MarketWatch) — A government shutdown would lead to homeless wandering the streets, a national unemployment problem, a vicious power-grab by Wall Street’s elite and a rush by Americans to hoard precious assets such as gold and silver.
So what else is new? By those measures, the government’s been closed for months.
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Is the real point of the government shut down to take away any chance the banksters will face the full force of financial reform?
“None of this will be taken seriously by the American public, however, until the government actually does shut down. More posturing, threats and finger-pointing has become the norm not only in Washington in the Obama era, but in the national debate as well. The seething anger underlying both party platforms these days is unhealthy to the Republic. A civics lesson is in order.
Americans need to see first hand what small government really is. To have their parks closed and their work permits halted and their government subsidies and environmental projects frozen. The truth is, we rely on the government for a lot more then we think, and we can’t just kill the programs that don’t affect us.
A little lesson in what it’s like to live without order is in order. It’s happened before — twice, in fact. The stock market actually rose when the government shut down in 1995 and again in 1996, though they were only brief shutdowns. If we decide to prolong it, I’m sure Goldman Sachs and JP Morgan Chase would be happy to step in and take control of the Treasury for the time being while the politicians roll in the mud. And I’m sure our allies would barely notice if we replaced the bald eagle with the vampire squid.
We rail against Wall Street and its banks, with their obscene profits and, um, balanced budgets, but we then expect that they will take direction or have financial reform shoved down their throat by a government that can’t even remotely keep its house in order.
No wonder the big guns in the banking industry, led by the suddenly laissez-faire Alan Greenspan, have set their sights on the Dodd-Frank reform bill. Like aggressive dogs, they smell fear. It has no chance, despite its positive aspects.”