Bits Bucket for April 14, 2011
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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Southern California Home Sales Decline 5.2% Amid Low Mortgage Availability. (Bloomberg)
Southern California home sales fell 5.2 percent in March from a year earlier as buyers waited for prices to drop and mortgages were hard to get, according to DataQuick Information Systems Inc.
A total of 19,412 houses and condominiums sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, compared with 20,476 in March 2010, the San Diego-based data seller said today in a statement. Foreclosure properties and homes purchased for less than the amount owed on the loan, known as short sales, accounted for more than half of transactions.
“We got off to a slow start with sales this year and it doesn’t look like that will change anytime soon,” John Walsh, DataQuick’s president, said in the statement. An increase in mortgage availability and “another round of price corrections” would help boost sales, he said.
The number of purchases last month was 21 percent below the March average since 1988, DataQuick said. All-cash sales were almost 31 percent of the total, up from a 28 percent share a year earlier and more than double the 10-year average.
Sales fell in five of six counties, with San Bernardino declining the most, 14 percent, and Riverside falling 7.5 percent. Ventura had the only gain, 2.4 percent.
The median price in Southern California was $280,500 last month, up 2 percent from February, and down 1.6 percent from a year earlier, the data firm said. Five of six counties had declines from March 2010, with Riverside unchanged at $198,000.
Prices dropped 6.9 percent to a median $349,000 in Ventura County, 2.7 percent to $320,000 in Los Angeles, 1.5 percent to $325,000 in San Diego, 1.3 percent to $150,000 in San Bernardino, and 0.5 percent to $430,000 in Orange, according to DataQuick.
“…Amid Low Mortgage Availability…”
I know exactly how to fix the problem of low mortgage availability:
Get the gubmint (and their Wall Street great vampire squid friends) off the peoples’ housing market’s back and let prices reach an equilibrium which reflects households’ willingness and ability to pay, and the private lenders will miraculously reappear, with a willingness and ability to profitably lend.
Allowing prices to fall to real levels will not happen any time soon. If they did, banks would end up with even more foreclosures worth even less, and when I say “banks” it follows the proverbial tax payer.
Or US taxpayers could grow a brain and a spine, toss out Wall Street’s Republicrat whores, and do what the people of Iceland have done: refuse to pay for bankster recklessness and fraud. Let housing hit bottom and let banks and FBs go broke. Only then can the recovery begin.
Unfortunately, in the US taxpayers have no influence. Banks DO. Apparently in Iceland they do not have a representative government, so EACH persons vote actually means something. Moreover, their courts apparently do not have authority to strike down and election result that is inconvenient.
And in other news:
The sun rose today.
U.S. Foreclosure Filings Drop 27% to Lowest Level in Three Years
~ Bloomberg - Apr 14, 2011
Foreclosure filings in the U.S. fell in the first quarter to the lowest level in three years as lenders worked through their backlog of flawed paperwork related to home seizures, according to RealtyTrac Inc.
A total of 681,153 U.S. properties received default, auction or repossession notices in the three months through March, down 15 percent from the fourth quarter and 27 percent from a year earlier, the Irvine, California-based data seller said today in a report. Delays from the documentation scandal accounted for the low tally, the smallest since the first quarter of 2008, RealtyTrac said.
“It may take another quarter to work itself out,” Rick Sharga, the company’s senior vice president, said in a telephone interview. The extended crisis means “a longer period of high foreclosures, and that portends a longer downturn in housing,” which may not end until 2015, he said.
Seven states had record year-over-year declines in filings during the first quarter, with drops of 68 percent in Maryland, 65 percent in Connecticut, 62 percent in both Florida and Massachusetts, 44 percent in New Jersey, 42 percent in Oregon and 36 percent in Indiana, Daren Blomquist, RealtyTrac’s marketing director, said in an e-mail. All but Oregon are so- called judicial states that put state courts in charge of overseeing foreclosures.
Teenage Wasteland: Jobless Rate For Young Is 25%—and Rising
Wednesday, 13 Apr 2011 | CNBC Fast Money
A quarter of teenagers were jobless in March, representing a surprising increase from February, even as the unemployment rate for the rest of the population decreased.
This figure may only get worse if budget-strapped states raise the minimum wage, and it could also be a sign of greater structural damage underlying our economy, analysts said.
The unemployment rate for 16- to 19-year olds jumped back up to 24.5 percent in March, up from 23.9 percent the prior month, according to the latest jobs data from the Labor Department.
The total unemployment rate fell to 8.8 percent from 8.9 percent.
“Even when comprehending that teen employment is volatile in nature, the data that exists serves up some shock and awe,” said Brian Sozzi, a retail research analyst with Wall Street Strategies, in a note Wednesday. “If these (wage) increases do go through, the prospect for teen employment will remain grim as employers search for workers with advanced skills to fill positions.”
Twelve states, including Illinois and Pennsylvania, are considering a hike in the minimum wage. While this has been the subject of a long-running debate, many economists and analysts say raising this pay bar may cause more teen layoffs, even as it helps teens who manage to stay employed make more.
“Minimum wage increases over the past few years has definitely made it worse,” said Peter Boockvar, chief equities strategist at Miller Tabak. “In fact, there should be zero minimum wage for teenagers, or at most, something much less than the current rate.”
Hire them as interns then pay them as you please in the form of tips.
Somone needs to hire them to play video-games and text eachother youtube videos. That is about all you could ever expect to get them to do.
The Who ~ Teenage Wasteland
http://www.youtube.com/watch?v=HsbPVlFcmDs
Jeez, does the ‘Who’ cover every CSI theme song, or what?
“The unemployment rate for 16- to 19-year olds”
While I’m all in favor of young people working, in my younger days my friends who worked did it mostly to pay for car insurance or other “toys” not to gain employment experience and job skills.
Hopefully few 16 to 19 year olds need to pay rent and groceries.
I really don’t think that the minimum wage is the problem. That is the problem that the U.S. Chamber of Commerce would like you to believe. The real problem is that they compete with unskilled illegal aliens. They don’t compete well since the illegal work harder but that is what our youth need to learn at those jobs, a work ethic that they can then apply after they receive an education to a better job.
I think these days…they are competing with skilled…educated adults. Poop flows downhill…or some saying like that.
You are seeing what I’m seeing.
Our local Wally World (and most of the local restaurants) have updated their staff with people who actually seem to have graduated high school, and have all their teeth.
The good news is that service at Wally World has improved. The bad news is that I can’t help but think that we’d be a lot better off if these people were actually working in jobs they were trained to do.
Next thing you know, you’ll be saying the problems with the economy are demand driven and then you’ll be a socialist. Better watch out.
Yeah, I remember the days when I used to be considered a Republican.
“The real problem is that they compete with unskilled illegal aliens.”
Oh yes! Even in our “whitebread” burg, the kitchen staff at any fast food place are all illegals. The only place I haven’t seen this is the local Chick-Fil-A.
In-N-Out is the only fast food chain in California that I have run into that never has a store full of illegals. Tons of high-school kids with some college kids thrown in.
Interesting observation. That seems to be the case at In-N-Outs here, too.
Like others have said, I think a lot of it is due to illegal immigrants who work harder, work cheaper, whine less, and don’t have the kind of scheduling conflicts HS kids do (school hours, dates, not showing up because their boyfriends/girlfriends broke up with them, etc.).
As much as I hate to say it, our young kids have a lot to learn WRT their work ethic.
The great thing about illegal aliens is you don’t gave to pay them minimum wage!
The great thing about illegal aliens is you don’t gave to pay them minimum wage!
and you don’t have to worry about them suing due to unsafe working environment, etc etc.
There are more benefits to hiring someone who is here illegally than just not having to pay them as much.
the even greater thing about illegals is not only do you not have to pay them minimum wage…they take home more that those that you do pay minimum wage.
And how lucky we are as taxpayers to pick up their medical insurance, food stamp costs, and section 8, and their anchor’s education.
Privatize the profits and socialize the costs. I live in So Ca. I know the “drill”, so to speak.
And in response to Slim’s post below: Our last home was built by unskilled criminal invader construction monkeys, and it took 18 months and threatening a law suit to get them to fix all the flaws. Construction is a real skill. Love ya gal, but we lived through the results.
And in response to Slim’s post below: Our last home was built by unskilled criminal invader construction monkeys, and it took 18 months and threatening a law suit to get them to fix all the flaws. Construction is a real skill. Love ya gal, but we lived through the results.
That’s why I worried about the Habitat homeowners. We volunteers were pretty well supervised, but I did wonder about that at times.
For example, we nailed in the drywall. Best practice is to attach it to the studs with a screwgun. Nailing it in is a good way to set the homeowners up for nail pop repairs down the road.
As for the contracted work, I did have some concerns about the guys that were hired to build the cinder block walls on some of the houses. I watched them work, and, from my perspective, they seemed to be in too much of a hurry.
I know that building one wall after the other isn’t the most interesting work, but it does require some care and attention. You can’t just zone out or chit-chat nonstop on the job.
They don’t compete well since the illegal work harder but that is what our youth need to learn at those jobs, a work ethic that they can then apply after they receive an education to a better job.
I’ve worked on Habitat for Humanity projects where some of the contractors have hired illegals to do jobs like pouring cement, laying cement block, and finishing drywall. And it’s true — those guys work like the Energizer bunny.
However, since few of them have very good English skills, they don’t advance up the ladder into the upper echelons of the trades. You rarely see them becoming master electricians or HVAC-ers.
a hundred years ago i worked for small CPA firm in rural Mississippi. one of the partners was an 80 year old stereotypical white southern hard ass. the following is a conversation between him and one of his small one man shop farmers named Mike.
mike: tell me something…what do you hear about hiring one of those mexicans?
old man: hell mike…they work hard but it just ain’t worth the risk. the gubmint is cracking down on that shit.
mike: well…i have joe. he’s been working for me for years now and does ok. but he don’t work as hard as i do.
old man: well goddamnit mike…if he worked as hard as you do…you’d be working for him!
“those guys work like the Energizer bunny.”
Seems that way, doesn’t it? Lots of hopping around, banging, hammering, yammering and yet the finished product (if you can call it that) isn’t very good and in some cases, downright dangerous. I guess it fits with the times, though. Much like China’s crap goods from low wage, overworked folks. You get what you pay for.
Lots of hopping around, banging, hammering, yammering and yet the finished product (if you can call it that) isn’t very good and in some cases, downright dangerous.
You’ve got a point there.
Back when I was a bicycle mechanic, you’d think that the service area of the shop was a church. We were that quiet.
Very early in my mechanical career, I learned that, if you’re working, there’s one thing that needs to stay shut and that’s your mouth. Why? Because if you’re talking, you’re not giving your work the attention it needs.
Alright, I gotta weigh in on this.
words are important.
Clear accurate communication is critical when you are trying to DO something CORRECTLY.
Im not namin no names, but some people have poor skills in both English and their native tongue.
They smile, nod their head in agreement, and then proceed to f*ck the entire project up; and possibly injure you.
(((shakin my head)))
Spookwaffe
I agree with you 110%. We lived in a home constructed by criminal invaders (see above post of mine) and it was a living nightmare. During a windy rain, the walls weren’t waterproof, and it even rained into our piano. It was a freakin hell.
You’re right about the shaking the head, agreement thing, and personally, I don’t like the culture. I give candy out to the anchor kids for rewards, and they don’t even say “Thank You”, and proceed to throw the trash on the ground. Sorry, but I’m not impressed. Oh, and as MLK said “Don’t judge a man on the color of his skin, but the content of his character.” Well, I think their character stinks. Just being here illegal, says it all.
/rant off
That’s why California freeways are full of trash.
Immigrants just throwed them out.
If CHP goes after them, $1,000 fine should balance the budget.
“if budget-strapped states raise the minimum wage,”
What’s the connection between being budget-strapped and raising the min wage? Seems an odd juxtaposition.
While it’s obviously just self-serving drivel to suggest that “there should be no minimum wage for teenagers”, I still don’t see why any state would be considering raising the minimum wage right now. Inflation numbers are low, so what is the rationale?
Gubmint bank sez…
Buy Crude, Could Hit $160: Bank of America
CNBC - April 13, 2011
Following Goldman Sachs’ negative call on crude prices which took the wind out of the commodities rally this week, Bank of America Merrill Lynch is predicting a 30 percent chance that Brent crude could hit 160 dollars a barrel in 2011.
“Commodity prices should move broadly higher in 2011 on robust economic growth in emerging markets, despite relatively weaker growth in developed markets,” said Sabine Schels, a commodity strategist at BoA Merrill Lynch in London in a research note.
“With oil demand expanding rapidly and Libya production down by at least 1 million barrels per day, we forecast (the) Brent crude oil price to average 122 dollars a barrel in the second quarter, and believe prices could briefly break through 140 dollars in the next 3 months,” she said.
Given the risks from the situation in the Middle-East and North Africa, Schels says there is a chance the price could go even higher over the next 2 months.
“Under our upside risk scenario, Brent prices could average this year between 125 dollars a barrel and 160 dollars a barrel,” Schels said.
Gee GS just said it was going to crash.
US consumption has fallen for 5 straight months.
Great time to crash the economy, in order to take the spotlight of scrutiny off the Fed and vampire squid allies, and in preparation for the 2012 election campaign.
hasn’t HBB been predicting a summer 2011 crash for a while now? There’s long enough to see at least a little recovery in time for the elections…
“Under our upside risk scenario, Brent prices could average this year between 125 dollars a barrel and 160 dollars a barrel,” Schels said.
If Saudi Arabia blows up we would see $300 a barrel.
It seems to me that oil right now is trading much more on expectations than present fundamentals. Actually, on present fundamentals NG is quite cheap compared to oil, based on historical averages, BTU basis etc. and the storage numbers are more favorable. But the future markets anticipates a shortage or oil and abundant NG. Can’t fully disagree but I think the gap between the two will close.
Realtors Are Liars
that train is never late.
That train will always be on time. I promise.
A realtor walks into a bar ………..
and orders a shot of botox?
After receiving the shot, the lying realtor slipped out the back door without paying.
With all of the money from the tip jar?
Looks like it will be a great outdoor day today. Off to the gym now (4:30am) and then at 8:30am off to work volunteer shift at the Sea Otter Classic. Should be a fun filled day.
That does sound like fun. Have fun, salinasron!
do you get up at 4:30am everyday?
If so, what time do you go to sleep, 8pm?
Nice sleep if you can get it.
Looks like you have a beautiful day in store for you. Have fun!
Sounds like a total blast! Enjoy your day, Ron.
Abandoned Mansions: Luxury Real Estate’s New Housing Headache
Morgan Brennan and Michelle Cerone, 03.23.11, 05:50 PM EDT
In Pictures: Nine Creepy Abandoned Mansions
High-end homes–some distinctly creepy–litter the landscapes of snazzy neighborhoods.
A quick search on real estate listing sites like Realtor.com and Trulia.com shows thousands of palatial estates deserted and patiently awaiting sale, as pools turn green and dust settles on granite countertops. Some of these abodes belong to owners who have listed the properties and relocated. Many more face foreclosure or are already bank-owned.
“What’s different about this foreclosure cycle is it has taken houses out of every aspect of the housing market,” explains Rick Sharga, senior vice president at RealtyTrac, an Irvine, Calif., foreclosure listing site. “You rarely saw mansions in foreclosure [until recently], and now you are seeing much more expensive types of properties in foreclosure.”
http://www.forbes.com/2011/03/23/abandoned-mansions-luxury-real-estate-forbeslife.html - 29k -
Nine Creepy Abandoned Mansions
The Fall of the House of Usher
By Edgar Allan Poe
Son coeur est un luth suspendu;
Sitot qu’on le touche il resonne.
De Beranger.
DURING the whole of a dull, dark, and soundless day in the autumn of the year, when the clouds hung oppressively low in the heavens, had been passing alone, on horseback, through a singularly dreary tract of country; and at length found myself, as the shades of the evening drew on, within view of the melancholy House of Usher. I know not how it was –but, with the first glimpse of the building, a sense of insufferable gloom pervaded my spirit. I say insufferable; for the feeling was unrelieved by any of that half-pleasurable, because poetic, sentiment, with which the mind usually receives even the sternest natural images of the desolate or terrible. I looked upon the scene before me –upon the mere house, and the simple landscape features of the domain –upon the bleak walls –upon the vacant eye-like windows –upon a few rank sedges –and upon a few white trunks of decayed trees –with an utter depression of soul which I can compare to no earthly sensation more properly than to the after-dream of the reveller upon opium –the bitter lapse into everyday life-the hideous dropping off of the reveller upon opium –the bitter lapse into everyday life –the hideous dropping off of the veil. There was an iciness, a sinking, a sickening of the heart –an unredeemed dreariness of thought which no goading of the imagination could torture into aught of the sublime.
…
PB, Edgar Alan Poe remains one of my all-time favorite authors and people.
Well, thanks for cheering us up today, PB.
Love Poe, too.
The bullet holes, gaping fissure in the wall and cracked windows have been patched up by new owners in the Florida estate vacated by Khalil bin Laden, Osama’s brother, following the Sept. 11, 2001, terrorist attacks. The asking price: $2 million.
Small FB world it is…
Some of these would make nice group homes for the disabled or elderly. And if there are enough vacant properties nearby, there will be fewer residents around to object.
BofA CEO: Owners shouldn’t look at home as an asset
Housing rebound may take so long that homeowners should seek other long-term investments
(like ammo and toilet paper-js)
By Joe Rauch
Reuters
updated 4/12/2011
CHARLOTTE, N.C. — Homeowners may need to look elsewhere for long-term investment returns as housing prices in some areas may not rebound long-term, Bank of America Corp Chief Executive Officer Brian Moynihan said on Tuesday.
Moynihan, CEO of the largest U.S. bank, said at a state attorneys general summit that low population growth in some regions of the country indicated that prices might not rise in the wake of the worst financial crisis since the Great Depression.
“It’s sobering to think, but some people shouldn’t be thinking of (their home) as an asset,” Moynihan said at the 2011 National Association of Attorneys General conference. “They should be thinking of it as a great place to live
http://www.msnbc.msn.com/id/42556230/ns/business-real_estate/ - 64k -
low population growth?
that’s why they are not gonna rise?
low population growth?
CEO of the largest U.S. bank
said at a state attorneys general summit that… [low]-wage
populationJobs!, Jobs!, Jobs! growth… insomemost regions of the country indicated that prices might not rise in the wake of the worst financial crisis since the Great Depression.Edited for clarity,…
(He musta have been handed inside information, like the total $$$$$$$$ that his bank made last quarter on profits from over-draft fees maybe) ;-/
“Owners shouldn’t look at home as an asset”
How should they look at home, then?
- A money pit?
- A falling knife?
- A bad decision?
- A liability?
All of the above?
The bullet holes, gaping fissure in the wall and cracked windows have been patched up by new owners in the Florida estate vacated by Khalil bin Laden, Osama’s brother, following the Sept. 11, 2001, terrorist attacks. The asking price: $2 million.
Small FB world…
“Small FB world…”
Is that a new ride at Disneyland?
Scariest place in Disneyland. A place full of torment and anguish, sleepless nights, cold sweats and hopelessness.
And you thought the haunted house was bad
“Some people”?
Interesting.
I think his neighborhood is different.
Realtors are, Realtors are um, Realtors are,
Damn I lost my train of thought.
Liars!!!
looks like Goldman once again is being made the whipping boy for the housing/mortgage crisis. The real culprits however (Maxine Waters, Barney Frank, Franklin Raines) will escape unscathed. It is a farce that govt. is avoiding all blame for this mess. I personally don’t blame GS, govt. let them run wild and make profits while passing on almost all risk to bagholders. Without govt., GS never would have had the opportunity. Now we’re all paying for it through bail-outs…
just democrats?
not artificially low interest rates set by federal reserve or the enormous trade imbalance with China which allowed them to have enough cash reserves to buy tons of treasuries putting further pressure on low rates?
what about cheap oil and globalization which gave rise that enormous trade deficit?
it was a perfect storm…so many to blame it almost isn’t worth it.
it was a perfect-ly designed storm
“Doing God’s work!”, is a direct quote I do believe:
(Hwy hums battle-field tune):
“My eyes have seen the Glory of the coming of the
ProphetProfit$”He is trampling out the vintage where the grapes of wrath are stored;
He hath loosed the fateful lightning of His terrible swift trades:
His truth is marching on.
(Chorus)
Glory, glory, hallelujah!
Glory, glory, hallelujah!
Glory, glory, hallelujah!
I personally don’t blame GS
You’re standing in the wrong line Dan. The “TrueFinancialCult™” / “TrueSerialLiquiditist™” / “TruePurity™” line is over there, past Xe type security & the cheering “welcoming committee” with all the MSM media logo’s stitched on their blazers. (Actually, they’re so darn “quite”, you’d hardly know that they even exist.)
Hey GS is only one of the names on the list of the GUILTY. But have no doubt they ARE on the list. The problem is that they have used their considerable political connections to ensure that they (or at least those running the company) have seen little to no negative consequences for their actions.
What came first, GoldmanSachs, or the paid-off-by-Goldman-Sachs politician?
I’ve got to the point where I tune out anyone who says “….it’s all the government’s fault……”, no matter what the subject matter.
“[W]e want everybody in America to own their own home. That’s what we want…[A]n ownership society is a compassionate society.” [3]
from prof bear’s post further down. guess who said this?
Ummm….. this is news to you?
Not to me…pointing It out to Dan.
Some moron?
it’s not any more moronic than thinking everyone should have a college education.
Dan you need to read a bit more.
Politicians weren’t the cause they were the tool purchased and used by the banking elite in this country to strip all the wealth from Americans. GW was just as bad as barney frank and the DEMS. He and GOP gutted regulatory agencies budgets. Appointed people who did nothing to prosecute crimes and even fought state attorney generals who wanted to bring charges against Wall Street Titans. See the article I posted at the below.
So George W. Bush was not a politician?
Yes, but it is their responsibility not to allow themselves to become tools. Theirs and theirs alone.
Poor Goldman Sachs…. Martha…. look what those wager earners and poor people have done to poor Goldman Sachs…. oh my goodness Martha!
looks like Goldman once again is being made the whipping boy for the housing/mortgage crisis. The real culprits however (Maxine Waters, Barney Frank, Franklin Raines) will escape unscathed.
Your lobotomy scars must’ve throbbed as you regurgitated those Establishment GOP/Faux News talking points. While you list some “real culprits” don’t forget the biggest one of all: the American public.
Yes, I’m talking about the millions of FBs who got in over their heads by irresponsible borrowing for houses and lifestyles they couldn’t afford. And the tens of millions who watched Wall Street rake in billions from reckless speculation and outright criminality, then duly trooped into the polls and elected or re-elected Republicrat politicians who would pay off Wall Street’s gambling debts and underwrite their extravagant pay and bonuses with money borrowed from China, created out of thin air by Zimbabwe Ben Bernanke, and - most outrageously - laid to the account of these feckless voters’ children and grandchildren.
The same Snooki-stoopid electorate who in 2008 fell for “hope ‘n change” or the even more appalling crazed neocon geezer and his power-craving faux “Tea Party” sucubus will listen to the Congressional Republicrats bloviate about Goldman Sachs, et al. for the benefit of morons, and nod their barren little craniums in their dim-witted perception that Washington finally “gets it.” Then in 2012 the same cretins will vote yet again for Establishment Republicrat flim-flam men (and women) who will ensure that Wall Street’s swindles not only go unpunished, but are abetted into perpetuity thanks to the Bernanke Put and endless POMO QE funny money injections.
There’s plenty of blame to go around for the mess we find ourselves in, but let’s put it where it really belongs: the morally bankrupt, dumbed-down 95% who abdicated their duties and responsibilities as honest, honorable citizens of the Republic, and who are cravenly ensuring the perpetuation of our national decline.
Don’t sugar coat it Sammy…….tell us what you really think.
(I’m not as po’d are you are yet. But my trend is definitely in your direction.
)
I have days I’m not exactly enamored of many of my fellow citizens, either.
Except I don’t consider them “fellow” anything anymore. Especially when their actions or inactions make life harder on me. Although I definitely took the money from the folks who purchased my house at the tippy-top of the market.
Thanks for the moolah, FBs!
Palmetto,
About a month ago I watched “Night of the Living Dead” for the first time - the only zombie movie I’ve ever watched other than “I am Legend”, “28 Days Later”, and “Zombieland” - and it suddenly dawned on me why this is such a classic. Romero was showing a tiny band of decent, scared people struggling to live & maintain their humanity in a world infected by soulless, vacant, lurching beings devoid of reason, logic, goodness, or any divine spark. The zombies could only fixiate on what was directly in front of them - with a view toward preying on it - and in a breakdown-crisis, proved vicious and unrestrained.
The zombies represent the mindless majority.
And “we” live among “them.”
I think I’ll have that beer.
“Snookie-stupid”
So stealing that.
I guess the GOP wants only the little people to share the sacrifice. Lord knows, we can’t ask the rich to be involved. They’re God-like job creators!
Obama urges spending cuts and increased taxes on rich
BBC News
President Barack Obama has called for raised taxes on the rich as well as cuts in government spending in what he termed a balanced approach to cutting the huge US budget deficit.
In a speech in Washington DC he outlined a package of tax increases and spending cuts aimed at reducing the deficit by $4tn (£2.45tn) by 2023.
He attacked Republican plans he said would harm the poor and elderly.
Republicans have said any increase in taxes is a “non-starter”.
Just watching these anti-taxers yammer on about “no more taxes” makes me wonder if they realize what the end result of their “no/low tax” Utopia would be like.
Besides, what part of **temporary** tax cuts do they not understand? They talk about tax “increases” as if the Bush tax cuts *that should never have existed in the first place, and have caused far more harm than good* are something they are entitled to on a permanent basis.
For businesses, it’s just the next expense to cut. They already tried cutting pensions, outsourcing, less job security, meager health benefits, games with part-timers and freelancers… They’ve run out of fat to cut on the employee side, and credit dried up so customers can’t afford any more price increases. So, the next expense to cut is taxes. It’s like roaches and viruses. You need stronger and stronger pesticides just to maintain the status quo.
Those tax cuts will never create jobs.
And tax increases will create jobs? Only government unproductive jobs
We know tax reduction for corporations do not create jobs. Why hire and earn $$ when profits are subsidized by taxpayers?
Stop championing corporate welfare.
If the wealthy would pay their fair share of running the government, the middle class wouldn’t be squeezed so hard, and would have more money to spend on whatever, which indeed creates jobs, or at least always has.
Trickle Down has failed to do so.
Payroll and other employee costs are fully deductable business expenses for corporations. So corporate tax cuts don’t enable companies to hire more. The wealthy hire relatively few employees directly, the occasional gardener or nanny or such. So taxes on the wealthy has little direct effect on the number of employed. The wealthy save and invest a larger percentage of their income than do the rest of us. A smaller percentage of any tax cuts given to them goes towards the purchase of goods made by people employed in the US. So, fewer jobs there.
The theoretical justification for cutting taxes to the wealthy always rested on the notion that their propensity to invest rather than spend would lead to greater productivity and gains for the economy as a whole. Like many sorts of hand-waving economic arguments there is some justification for this idea. Certainly a dynamic economly NEEDS a welcoming investment climate and sufficient money being cycled through it. But I (and many others) regard the last series of bubbles as proof that we have been handing Wall Street more money than it can find truely productive uses for. Instead that money has largely been spend blowing bubbles and making loans to the less well off majority whose real incomes have stagnated.
There is no economic difference between “raising tax rates,” and “allowing tax cuts to lapse.” Lots of electrons and ink have been spilled on how to characterize the expiration or not of the tax rates that were changed during George W Bush’s administration. That may affect the politics, but not the economic effect. I simply regard the series of bubbles that we’ve seen as evidence that the tax rates of the wealthy are currently too low.
“Trickle Down has failed to do so.”
I call BS. I just felt something wet hit the top of my head.
A Wall Streeter just pissed on you and said it’s raining.
Bravo, Jim. Well said.
And just to hammer my point. I believe that the effective tax rates paid by the wealthy aren’t just too low to fund the functions of government that electorate seems to want. I believe that those effective rates are too low for our economly to function efficiently.
The “rich” are investing. In China, and pretty much everywhere else but here.
If you are a 1%er, who would you want things to change?
X-GSfixr–I’m not even sure that the 1%ers don’t realize that the rising discontent of the rest of us is a long term threat to them. Certainly SOME of them do. But we have a “tragedy of the commons” situation here. But instead of overgrazing common land, or overharvesting oysters, they’re over seizing-all-the benefits-of-productivty-improvements, and over paying-themselves.
A good CEO is worth a lot of money.
Problem is, we have a lot of crappy/borderline criminal CEOs.
And they must be “union members”. Doesn’t matter how good or how crappy a job they do, they all make a gazillion dollars.
Excellent posts, Jim.
This is a point that too few people seem to understand:
Comment by Jim A
2011-04-14 07:03:24
Payroll and other employee costs are fully deductable business expenses for corporations. So corporate tax cuts don’t enable companies to hire more.
…………………
And couldn’t agree more with your point here:
Comment by Jim A
2011-04-14 10:10:28
And just to hammer my point. I believe that the effective tax rates paid by the wealthy aren’t just too low to fund the functions of government that electorate seems to want. I believe that those effective rates are too low for our economly to function efficiently.
This country needs higher and higher taxes just to keep the government’s status quo. Perhaps it would be wise to consider sustaiability, a path which we are not on.
Raising (or lowering) corporate taxes would produce little effect on our FedGov deficit. Revenue from this is a scant 2% of GDP. Doubling it would still be in the noise. Besides, a well managed business avoids making large profits in various ways, so as not to throw money away on taxes. If profit is to be made, shifting profit center activities to places with lower taxes is also a concern. Might as well try to nail jello to a tree.
The federal government’s status quo is more independent contractor employees than regualr employees.
I wonder if there is any correlation between using FOR PROFIT contractors instead on regualr employees and our deficit?
“If profit is to be made, shifting profit center activities to places with lower taxes is also a concern. Might as well try to nail jello to a tree.”
All the more reason to increase the tax rate on the rich themselves, as well as corporations. And to tax capital gains like the income they are.
All the more reason to increase the tax rate on the rich themselves, as well as corporations. And to tax capital gains like the income they are.
———————
Amen!
I personally favor increasing taxes on individuals vs. corporations, but understand that the two are often the same.
For
businessesMega_________ Inc., suffering day-by-agony-day-with-low-cash-reserves, it’s just the next expense to cut. They alreadytriedsucceeded in cutting pensions, outsourcing, less job security, meager “you’ll-have-contribute-more-cash-peon” health benefits, “we-love-you-until-the-job-is-done-now-scram!-peon “games” with part-timers and freelancers…(Edited for my mindseye oxide.)
How about redefining “the rich”, not as a person, but as a fortune 500 multinational corporation?
We are talking then not about some house poor engineer or doctor, but about raising taxes on ONLY 500 entities. That is something I believe many of us could get behind. And unlike those earning over $100k who are already taxed up the gazoo ( I used to pay 56% on overtime pay as a contractor ) these corporations control more of the worlds wealth that most countries.
Remember “the rich” are defined loosely as those making more than you do, and it is very likely you are someone else’s “rich”, with means tax increases for YOU!
We’ve been over this before. There is a standard by which someone is rich or not. It is NOT relative. That idea is a diversion created the MSM to deflect notice and the ability to keep track of the rich.
As for taxing large corporations, you need to go after the Fortune 1000, not just the 500.
It’s true that “rich” may not be relative, but I believe that Obama’s magic number of $250K household per year is a good umbrella. Except for possibly midtown Manhattan, $250K household is PLENTY of money to be considered financially cushy, anywhere in the country. Even in downtown DC.
Consider though at an income level of between $250k and $500k real tax rates are the highest of any group, and it IS this group that already shoulders the majority of tax in the US.
Our govt takes in plenty of money. It spends plenty more.
It might be better to define it as the top 2% of income earners. In 20 years of inflation, 250K may no longer be rich. The top 2% will always be rich.
That’s a good way to define it, Happy2bHeard.
what part of **temporary** tax cuts do they not understand?
Probably the same thing Milton Friedman didn’t understand when he said that there is nothing so permanent as a temporary government program.
Yeah.
Why should the poor have to be poor? They can’t help that they are lazy.
Or that half of all jobs in the country pay less than $500 per week.
Please keep reminding the HBB of this. One local example is a Very Large mutual fund company in Denver that hires new biz college grads as phone reps through an agency at 11.50/hour with no guarantee of permanent hire.
Nice. So after investing 4 years and tens of thousands of dollars attending one of the State U’s (or a lot more at a private school) this is your reward!
I laugh whenever I read the news articles that bloviate about average starting wages for college grads. On what planet are they living on? Or are these surveys only done in DC or NYC and for Ivy League grads?
“They can’t help that they are lazy.”
That’s right out of Mark Faber/Ayn Rand’s playbook and serves as a post hoc moral justification as to why they are rich than others. I’ve read her stuff and watch his stuff but they’ve never sold me on that argument.
Not all poor people are lazy, and not all rich people are not lazy.
So you guys are in Virginia, I read. If you’re near Arlington and like steak, please visit Ray’s The Steaks. I miss that place…
Hey MB:
I’m in Richmond, actually. Still getting my bearings around here, but I did find the Taco Bell today. Love it!
Watch a couple episodes of “American Greed” and you’ll see why some people are rich. Um..they lie, cheat and steal.
Some of the hardest working people I know are poor.
I’d say most of the hardest working people I know are poor.
That’s why the lie of “poor = lazy” bothers me so much.
“Why should the poor have to be poor? They can’t help that they are lazy.”
This is a fine example of lazy thinking.
Alpha:
Time to rant this morning We need to step up to the plate and realize just how much all the non smoking campaigns have done to increase life expectancy, lessen costs and make people take out far more money out of “retirement/pensions” then they should have.
Then we have to realize we have dumbed down America on purpose, and demand people learn how to read write and speak English. The costs of this stupidity in extra criminal costs public assistance costs and just lack of a national purpose is staggering.
Forcing people not speak ghetto or redneck is a real painful sacrifice today. Not sure if we are up to the task.
If we just gave away free cigarettes to Medicare and Social Security recipients…
My 83 year old mother has been smoking since she was 20. So it’s not gonna have the intended consequences for everyone, sigh.
Why should mexicans get free cigarettes?
Thats racist!
We’ve effectively replaced dying from lung cancer with dying from diabetes. And carbs are a lot cheaper than cigarettes.
The stage is setting for the war between the “No More Taxes” and the “No Less Handouts”. It will entertain and enrage, while the value of those benefit and wage dollars continues to erode at a nose bleed pace.
Meanwhile, Grand Theft Federal Reserve will go unabated, with much larger consequences than those political crumbs for the little folk. The “More Bullets” gang will party on as well.
Business as usual until the next election is over for sure.
“Business as usual until the next election is over for sure.”
I wouldn’t be so sure that the next election will change anything.
‘Business as usual until the next election is over’
Just one of the problems we have these days is the election cycle never ends. You can see it in the posts here at the HBB. Partisans using each and every news report and data point to grind their political ax.
There was a time when we expected that after the elections, lawmakers settled down to do what was best for the country. No more, and some of the posters here are a perfect example of that. The fact is, we have a seriously corrupt system, and almost no accountability. We get endless finger pointing, while those who broke laws aren’t punished. Is it any wonder that nothing gets fixed?
‘It is a question asked repeatedly across America: why, in the aftermath of a financial mess that generated hundreds of billions in losses, have no high-profile participants in the disaster been prosecuted?…This stands in stark contrast to the failure of many savings and loan institutions in the late 1980s. In the wake of that debacle, special government task forces referred 1,100 cases to prosecutors, resulting in more than 800 bank officials going to jail.’
So read the article if you have time. And then get ready for the usual posters here to cry “Bush did it” or “Obama is at fault”, or “Clinton! Wall Street! Socialists! Capitalists!”
Meanwhile, nothing gets fixed, it’s business as usual for the powers that be, and doing what’s best for the country isn’t even on the table.
If there is a silver lining, it’s that amid all the finger pointing and political bickering, housing prices are becoming ever-more affordable. It seems most ironic that the ticket for the GSEs to achieve their affordable housing mission was for them to blow themselves up so badly that they only went on living as government-sponsored zombies.
+1000 Ben’s Post . I am amazed at how doing what’s best for the Country is avoided at all cost .
NOT best for bankers who fund politicians’ campaigns for office?
I don’t know if I’m counted among the “partisans” or not. All i want to see is everyone who broke the law go to jail. With penalties proportionate to the damage the individual inflicted on our country and economy.
To do this means putting half the population of Manhattan and the Washington DC Metro in the slammer. So what I want is never going to happen.
I’m coming up on two years from the last time I had a full time job. I wouldn’t mind so much, if I thought taking this big a hit financially meant that some good would come out of it.
Everything I’m seeing proves that the crooks have won.
I second your thoughts on this, x-GSfixr. It is so disturbing to see how NOBODY in power appears interested in holding anyone accountable for the greatest theft in U.S. history.
They’ll jail poor people who steal because they have no other options (and I’m hard on crime!), but they do NOTHING about the far more dangerous criminals on Wall Street and in D.C. who’ve bankrupted the entire country.
“Just one of the problems we have these days is the election cycle never ends. You can see it in the posts here at the HBB.”
I think our system, with its 2 year terms for representatives, is designed to be in continuous campaign season. For better or for worse…
As a result of it, we just seated a new, highly partisan congress, that seeks to change many aspects of our system, which will have great effect on the housing bubble, and its aftermath.
How can we not discuss them? How can we discuss them without it being political?
Economics and politics are like conjoined twins. One cannot discuss one without discussing the other, whether we like it or not.
Bribery has been institutionalized via lobbying and campaign contribution laws. Thus, politicians represent the highest bidder not the people.
To obama:
Rich = anyone making more than $35,000
How many times are you going to fall for some faceless “rich guys” are going to pay for our insane spending levels…?
That’s because it still works like a charm, each and every time.
To OBAMA, $35K is “rich?” Obama has been saying $250K since the days of Joe the Plumber.
Now, if you’re talking about Scott Walker’s evil teachers and janitors, yeah, $35K is a king’s income it’s about time they got laid off.
2banana:
Let me explain something to you about our federal tax code here in the United States. It’s progressive. That means you pay slightly higher taxes on each dollar you own over a certain amount. The tax on each extra dollar is raised in increments. This allows a person to always take home more when they earn more, while still paying a higher percentage of their income.
When people start talking about “letting tax cuts for the wealthy expire”, they are talking about allowing those top dollars to be taxed at the old rate (before Bush the Mush got in). THAT is the definition of wealthy. Wealthy is the dollar you earned after the $250th.
GW handed out the largest tax break to the elite in history and we have record unemployment.
The biggest falacy about tax cuts creating investment is
1. We already have an oversupply of capacity what we need is demand which comes from the middle class.
2. The elite will invest their money regardless of the tax cuts. And they will invest in the thing that gives them the greatest return. Even if they shift from stocks to bonds that still stimulates corporate spending by lowering interest rates.
The GOP mantra these days is these poor hapless corporations and wealthy folk NEED tax cuts, which will magically produce jobs. The implicit threat is that if they don’t get their dough, they’ll pick up their toys and go elsewhere. Problem is, they already have.
+1
Ah , Spring has sprung . The beautiful azealea bushes of the south have sprung for their 2 weeks of utmost delight . The rest of the year they are buggers to trim and keep up . They are still the only game to go with if you want the real thing , not some hybred monster that destroys itself.
And they like acid soil. Which means you can plant them around pine trees. I didn’t grow up in the south, but our small backyard was mostly pine trees and azealeas. Took care of themselves except for raking and trimming. The roses in the side yard needed a lot of help. They did not like what the pine needles did to their dirt at all.
And dogwoods, rhododendrons, magnolias…the flowering trees and plants of spring are a joy to behold.
Realtors are hard workers.
In ripping people off.
You mean the ones that supplement their income by pole dancing?
I know one who worked me pretty hard….
Of course the good one who got me into Santa Barbara market in 1995 did her hard work looking for the scarce few I could afford at the time. She succombed to breast cancer and I am still sorry
Then for the one who worked me. 6% of a million dollar home is a ton of money and no harder than selling a 100k home. Since it was california in 2004, she made 50k on one sale of 860k.(course she had to share it with the buyer’s agent).
She worked pretty hard for the 2 weeks it was on the market; now she is probably working harder for her money
Same thing happened to my Realtor/former land lady. We rented from her for 2 and a half years, then she helped hammer down some sellers 30% from their original asking price, even though she thought there was no way we’d get them down that low. Breast cancer got her a few months later.
So, are the crappy realtors giving the good, hardworking realtors cancer to get rid of them? My sources say YES! (That was not intended to be a factual statement.)
Medical marvel: A U.S. doctor discovers Canadian health care
What is the most surprising thing you have learned so far?
I learned that doctors are compensated much better than what we presumed they were here and their work lives are very nice. In the U.S., most doctors are afraid of two things with a single-payer system: they will lose money – of course, they won’t say that – and that they are going to lose autonomy.
What is work life like for an American doctor?
You spend so much time hassling with insurance companies, you just can’t imagine. You have to fight with them to get paid.
The new U.S. health care bill - the Patient Protection and Affordable Care Act - has been described by your group as using an aspirin to treat cancer. Isn’t it an improvement?
There’s lots of ways to improve the health care system. The first thing we have to do is get rid of the private health insurance industry because the administrative costs that they entail, we say it adds costs but no value to the system. We don’t think health care should be an opportunity for profit, we think health care is a human need, like the fire department. But in our country, it’s treated as how you make a buck. And we will be mandated to buy their lousy health insurance.
theglobeandmail DOT com/life/health/medical-marvel-a-us-doctor-discovers-canadian-health-care/article1984796/
We don’t think health care should be an opportunity for profit, we think health care is a human need
That’s his problem right there. He needs to let go of that if he wants to make any kind of money. /snark
There’s lots of ways to improve the health care system. The first thing we have to do is get rid of the private health insurance industry because the administrative costs that they entail, we say it adds costs but no value to the system.
+positive infinity
And while we’re at it, let’s get rid of the rest of the private sector and cut out all the pesky administrative costs there as well.
Because, as we all know, government employees are a completely different breed from the rest of us. They work for free, and never have personal conflicts of interest or allow politics to enter into their decisions. They have no ambitions or human failings, and have magical abilities to increase benefits while lowering costs, and they never discriminate or do anything unfair. They also have no base desires or motives and would never be discovered to be getting blow jobs or surfing porn sites while at work.
(Now excuse me while I puke)
And yet somehow a government run system works better and cheaper in every other developed country on the planet. Weird.
And the countries where it doesn’t work– well, they’re not “developed”. I wonder why?
“I wonder why?”
Because they’re not overpaying on their health care? I hardly think that’s the reason.
It’s not the administrative costs. It’s the natural tendancy of “free” insurance (paid for by the employer) to push prices upward.
Patients don’t like current health insurance. Doctors don’t like current health insurance.
Now remind me, why do we have it?
Oh that’s right, so hospitals can make a profit.
And the pharmaceutical companies.
And Wall St.
“The first thing we have to do is get rid of the private health insurance industry ”
bingo
History of US government bailouts (includes link to Ultimate Bailout Guide-”tracking every taxpayer dollar, every recipient and every program in the current financial crisis”!).
http://www.propublica.org/special/government-bailouts
I thought the TARP bailout took all the toxic assets off the banks’ books. How can the banksters possibly still be sitting on a toxic mortgage cesspool valued at (supposedly) north of $1t? I guess I just don’t understand bailout mechanics very well.
The Financial Times
Further mortgage troubles could loom
By Aline Van Duyn
Published: April 13 2011 20:24 | Last updated: April 13 2011 20:24
Losses on US mortgages continue to hang over the financial sector.
…
Rising rate scenarios – such as when rates spiked in 1994 – have caused big losses on mortgage-backed securities before. Yet the impact might be even greater this time around.
A report by Fitch Ratings highlights the changing patterns in US mortgage prepayments. Most US mortgages can be refinanced and prepaid at any time. When this happens it reduces the amount of time a typical 30-year mortgage is outstanding. As a result, prepayments reduce the sensitivity of mortgage-backed bonds to interest rate rises.
With many mortgages worth more than people’s homes, and tougher mortgage underwriting standards, refinancing and pre-payment has declined. This means mortgage bonds are more sensitive to rising rates. With that in mind, it is worth looking at who owns the most mortgage-backed debt. Top of the list are commercial banks with holdings of $1,260bn, Fitch says. Another chapter of mortgage troubles may follow.
Thanks to the economic meltdown, formerly prime mortgages are now subprime. They kept them, not realizing they were turning into junk along with the subprime stuff.
I appreciate Obama’s honesty regarding the paradigm shift currently underway on the dubious advantages of home ownership over renting. I took a college course in money and banking back in the early 1990s, and I recall how one of the points the professor, himself a slightly outspoken grad student at a reputable university, made to our class was that Uncle Sam had a preference for home ownership over renting. Between the collection of articles posted here and those I have come up with on my own, it appears this lexicographic preference for home ownership dates back to the 1920s, if not earlier.
This is nothing short of a huge national paradigm shift, folks.
Obama Pushes Renting, Making It Easier To Whack Fannie And Freddie
Apr. 12 2011 - 9:49 am
Posted by Martin Fridson
In February 2011, the Treasury Department and Department of Housing and Urban Development released a white paper on reforming the nation’s approach to housing finance.[1] The media response focused mainly on the possibility, raised by the report, that Fannie Mae and Freddie Mac would be phased out.[2]
Taking these gigantic government-sponsored enterprises (GSEs) out of the picture certainly would represent a momentous departure from past government housing policy. Treasury and HUD discussed a second profound change, however, that received little attention from potential reporters.
Pages 18 and 19 contained the following paragraph (emphasis added):
It is hardly likely that such a politically sensitive statement emerged from the cabinet without the White House’s blessing. That is to say, the Obama administration is now on record as believing that homeownership is not the right aspiration for every American family. The italicized sentence above runs directly counter to President George W. Bush’s remarks to the White House Conference on Increasing Minority Homeownership at The George Washington University Tuesday, Oct. 15, 2002:
The Obama administration’s essentially unprecedented acknowledgement that a homeownership rate of less than 100% could be optimal does not just represent a break from the previous administration’s stance. It reverses the trend of federal housing policy going all the way back to the New Deal. Ever since then, politicians have equated homeownership with the American Dream and fallen all over themselves to demonstrate their fierce dedication to it. Under their guidance, the GSEs vastly expanded their operations and the foundations of the subprime debacle were laid.
…
the market is dictating the politics.
if i were POTUS i would just say owning makes sense for some and renting makes sense for some.
do the math…weigh the pros and cons to both…and make a prudent…educated…well informed decision based on your facts and circumstances.
This is nothing short of a huge national paradigm shift, folks.
Yeah - sure.
U.S. Move to Cover Fannie, Freddie Losses Stirs Controversy
WSJ
12/28/2009
The Obama administration’s decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.
The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.
Ancient history, my friend…
I have to agree with 2banana here. That was a really bad decision.
Of course we know why. F&F had to be kept around to bury, er, buy, the toxic assets of Wall St.
Robo-signing delays near end. Could get “scary”:
http://www.marketwatch.com/story/foreclosure-delays-near-end-might-get-scary-2011-04-14
Hmmm. Who could have ever seen another leg down coming?
I’ll believe it when I see it. We’ve heard for far too long that the “foreclosure tsunami” is coming. So far, there are a number of houses that have already been foreclosed on around here, and they are sitting empty for months or years. This waiting is getting old!
Realtors kick A$$!!
I think you meant “lick”.
Goldman Sachs must seem like a bottomless gold mine for anyone who does PR work!
Posted on Wednesday, 04.13.11
Senate panel rebukes Goldman Sachs, others over mortgage deals
By GREG GORDON
McClatchy Newspapers
WASHINGTON — Goldman Sachs, which paid $550 million last summer to settle federal fraud charges from an offshore mortgage deal, failed to tell investors in a second, $2 billion bundle of risky mortgage securities that it was secretly betting on their default, a Senate panel charged Wednesday.
When the securities’ value plunged, Goldman reaped a $1.35 billion profit at the expense of its investors, the Permanent Investigations Subcommittee said in a scathing summary of a two-year investigation into the chain of deceit and greed that caused the nation’s financial crisis.
Democratic Sen. Carl Levin of Michigan, the subcommittee chairman, accused the Wall Street giant of deep conflicts of interest, “abusive practices” toward its investors and “disgraceful” tactics in exiting the subprime home loan market.
At a marathon hearing last year, Levin charged that Goldman’s top brass secretly encouraged the firm’s traders to make huge “short” bets against the housing market before it began to crash in 2007. Goldman Chief Executive Officer Lloyd Blankfein denied Levin’s assertion that the firm was “massively short.”
Levin said that the subcommittee would refer to the Justice Department and the Securities and Exchange Commission, for possible enforcement action, the testimony of witnesses at four sets of hearings into the financial meltdown last year, including that of Blankfein and half a dozen other Goldman executives.
Levin also indicated that he’d recommend other, more specific referrals to prosecutors, but neither he nor his aides would describe them.
Goldman spokesman Michael DuVally said the company’s executives gave “truthful and accurate” testimony, but also issued a statement suggesting the world’s leading investment bank had been chastened.
“While we disagree with many of the conclusions of the report, we take seriously the issues explored by the subcommittee,” he said.
…
Blah, blah, blah,…….just whack their pee-pees, and forget about it.
Nobody is going to jail, so what is the point of this exercise, other than the “sound bite”.
Snakes-R-Us
Gossip Pack
Senator Calls Goldman Sachs “a Financial Snake Pit”
by Matt Pressman
April 14, 2011, 7:41 AM
vfd-gossippack.jpg• Announcing the findings of a Senate panel investigating the financial crisis, Senator Carl Levin (D-MI) called Goldman Sachs “a financial snake pit rife with greed, conflicts of interest, and wrongdoing,” adding that C.E.O. Lloyd Blankfein should possibly face perjury charges. [Washington Post]
…
In other news, a large donation was recently made to Levin’s re-election campaign.
Great show, isn’t it? Wag the finger, scold the banksters. Do nothing. Wink-wink, nod-nod.
Sticks and stones may hurt my bones, but words will never hurt my profits.
Unless 218 representatives or 41 senators say they won’t vote to raise the debt ceiling. Then the market confidence ogre shows up. Eh, they are probably already hedged against it anyway.
Deficit bustin’ tactics have backfired on the Republicans before, and I see them going down the same path again. Get ready for a second Obama term in the WH.
In The Arena
Mr. Prudent: Obama Preaches Deficit Sanity
By Joe Klein Thursday, Apr. 14, 2011
President Barack Obama speaks about the budget
Mark Wilson / Bloomberg
“This is one of the most important debates that we can have,” President Obama said at the close of his much anticipated speech about the federal-budget deficit. He is absolutely right, although his speech didn’t add much to the conversation in terms of specifics. Unlike Republican Congressman Paul Ryan’s recent budget plan, Barack Obama’s proposed no radical restructurings or curtailments of brontosaurus-size programs like Medicare or Medicaid. Unlike some of the other plans floating about, and there are scads of them, his didn’t propose gimmicky new revenue-raising schemes like a national sales tax. Indeed, Obama didn’t add much to the measures he had previously proposed — except for an increased desire to cut defense spending and a requirement that Congress enter into annual sudden-death negotiations if the deficit exceeds 2.8% of gross domestic product. But the President did add a crucial element to the debate: a sense of proportion and sanity.
Our latest episode of budget-deficit mania — a phenomenon previously witnessed in the 1980s and 1990s, after the last round of excessive tax cutting — has been the product, mostly, of brazen cynicism on the part of many Republicans and well-intentioned myopia on the part of some high-minded policy sorts. It is a phenomenon largely confined within the Beltway. A recent Gallup poll showed that only 11% of Americans considered deficits the most important issue facing the country.
…
I guess when you have no job or are worried about your job or are worried about declining pay with increasing expenses, your concerns may be something other than the deficit.
Housing Market Still Flat in Santa Fe Co
JoAnne Vigil Coppler has a short refrain for those waiting for the Santa Fe real-estate market to come back before trying to sell a house. “It’s going to be a very, very long time, if ever,” said Coppler, Santa Fe Association of Realtors board president…
http://www.santafenewmexican.com/Local%20News/santa-fe-county-Housing-market-still-flat
Reality is just now starting to dawn on some of the RE owners in this corner of the universe (south Tampa Bay area). Just now. I think we are making the transition to acceptance. Even the “accidental landlords” are finding out that their rent is too dang high. It’s very interesting to watch. Of course, a few idiots are still catching falling knives. One gimlet eyed retiree told me about his bid on a short sale. I had to cough into my sleeve to keep from laughing. Real genius.
I just saw a possibly great house in South Tampa for rent for 2200, so I agree. The prices are dropping finally. That same house would have gone for what, 2800, 3k a year ago. In Plant HS district to no less.
Good grief, that’s Silicon Valley levels of rent. Does Tampa have the incomes to support such rents?
Here is a bit of armchair forecasting:
High inflation in the volatile but essential food and energy sectors +
Long-term interest rates that want to adjust upward to reflect inflationary pressures +
Slowly recovering labor market with stagnant wages +
Federal reserve perpetually pushing on a string, while pretending to hold a royal flush +
Rising tsunami tide of foreclosed homes coming back on the market =
FALLING U.S. HOUSING PRICES GOING FORWARD FOR AN EXTENDED PERIOD OF YEARS.
I wonder if any of the charlatans who call themselves economic forecasters will get the above equation?
What further % increase in the price of food will crush the miracle that is China? I’m guessing that 20% would be enough to put it in the bag. If it’s higher, well what the hell. We can all give up one season’s vacation over here to win this war.
There is going to be some collateral damage though.
“I wonder if any of the charlatans who call themselves economic forecasters will get the above equation?”
Privately…you bet they know what’s waiting just around the corner, and it’s not looking good for the suit-n-tie crowd.
How can you have inflation in only part of an economy? If dollars are worth less, then you should need more of them to buy ANYthing, be it a plasma TV or a “pound” of pasta.
I still argue that this is not inflation. It’s wage stagnation due to sweatshop labor rates overseas coupled with necessary commodities as the only sector left which generates a return, coupled with the realization that there is not an infinite supply of those commodities, coupled with everybody raising prices to what the market will bear.
“How can you have inflation in only part of an economy?”
Uh…
CPI = Consumer Price Index (price changes in the part of the economy which supplies inputs to households)
PPI = Producer Price Index (price changes in the part of the economy which supplies inputs to firms)
GDP Deflator = Price index for all goods and services which constitute a share of U.S. GDP
Are you starting to catch on yet?
Oxide, prices ARE going up everywhere and on everything.
Which should put to rest once and for all that rising wages are the engine of inflation.
“…prices ARE going up everywhere and on everything.”
Not the interest rate on prime reserve money market accounts. My wife’s quarterly statement shows she earned $1 on $26K worth of assets last quarter. Glad to know some great vampire squid is rolling in bonus dough funded by the low returns on savings.
“…rising wages…”
There is another price that is not going up — the price of labor.
Here is a bit of armchair forecasting:
High inflation in the volatile but essential food and energy sectors +
Long-term interest rates that want to adjust upward to reflect inflationary pressures + “but with any upward movement economy collapses bringing interest rates back down particularly if FED gov cuts spending. FED will continue w QEIII. ”
Slowly recovering labor market with stagnant wages, “NOT if interest rates rise and food and energy inflation continue. Get ready for higher unemployment. ”
Federal reserve perpetually pushing on a string, while pretending to hold a royal flush +
Rising tsunami tide of foreclosed homes coming back on the market =
FALLING U.S. HOUSING PRICES GOING FORWARD FOR AN EXTENDED PERIOD OF YEARS. BINGO this is a given not matter what. Until wages rise housing will fall in value particularly in rural and suburbs given rising fuel costs.
I wonder if any of the charlatans who call themselves economic forecasters will get the above equation?
.
Agree with your forecast, measton.
PB, you’ve just described the Savings & Loan disaster.
Why not call ratings fraud what it is?
Moody’s, S&P Caved to Goldman, UBS Mortgage Pressure, Levin Says
By Zeke Faux - Apr 13, 2011 4:24 PM PT
Moody’s Investors Service and Standard & Poor’s adjusted the way they graded securities after Goldman Sachs Group Inc., UBS AG and at least six more banks pressured them, according to a U.S. Senate report. Photographer: Gianluca Colla/Bloomberg
Moody’s Investors Service and Standard & Poor’s adjusted the way they graded securities after Goldman Sachs Group Inc., UBS AG and at least six more banks pressured them, according to a U.S. Senate report.
The world’s two largest bond-ranking companies, both based in New York, made exceptions to rules when bankers asked for better safety ratings on complex mortgage-backed securities, the Senate Permanent Subcommittee on Investigations said yesterday. When Moody’s and S&P changed their assessments of hundreds of those bonds in July 2007, it helped trigger the financial crisis, the panel said.
“The ratings agencies weakened their standards as each competed to provide the most favorable rating to win business and greater market share,” according to the report. “The result was a race to the bottom.”
…
Why not call ratings fraud what it is?
What are you, some kinda dang socialeest/commie?!
Claim Jumper
U.S. jobless claims jump
New applications for unemployment benefits climb by 27,000 to a seasonally adjusted 412,000.
400K is the new normal as is earning less than $500 a week.
Welcome to 3rd World America.
‘unexpectedly’
Shocked, I tell you…
Take it from a Reagan insider!
Outside the Box
April 13, 2011, 12:01 a.m. EDT
Federal Reserve’s path of destruction
Commentary: Crony capitalism continues
By David Stockman
This is part two of a two-part series by David Stockman. Read part one.
GREENWICH, Conn. (MarketWatch) — The destructive result of the Federal Reserve’s earlier housing and consumer credit bubble became the excuse for embracing a destructive zero interest rate policy which is self-evidently fueling even more destruction.
This destruction is namely, the exploitation of middle class savers; the current severe food and energy squeeze on lower income households; the illusion in Washington that Uncle Sam can comfortably manage $14 trillion in debt because the interest carry is close enough to zero for government purposes; and the next round of bursting bubbles building up among the risk asset classes.
Moreover, the Fed soldiers on with its serial bubble-making, even though it is evident that the hallowed doctrines of modern monetary theory and the inherently dubious math of Taylor rules have failed completely.
…
This destruction is namely, the exploitation of middle class savers;
I’d say savers and more so workers. The elite will hedge their savings against inflation. It’s grandma and grandpa who can’t afford to gamble who will loose.
ARE losing.
Thanks for sharing that, PB.
My tips for competing with the all-cash investors:
1) Don’t buy yet, as there are an estimated 15 million additional homes scheduled to go through the foreclosure grist mill and come back on the market through 2015.
2) Let the all-cash investors enjoy their falling knives, many of which I expect to see back on the market after 2015 competing with all those foreclosure homes.
3) Don’t buy with a mortgage until mortgages are once again expected to be repaid, rather than expected to go into default after a couple of years of unaffordable payments.
4) Try not to catch yerself a falling knife.
April 13, 2011, 1:32 p.m. EDT
Why a mortgage puts a home buyer at a disadvantage
More cash offers make it tougher for borrowers to snap up deals
By Amy Hoak, MarketWatch
CHICAGO (MarketWatch) — For home buyers who need to finance their purchase using a mortgage, a cash buyer can be their worst enemy.
That’s because when a buyer makes a cash offer, the seller knows it’s a solid deal — and that financing hiccups won’t delay a closing. Sometimes, that’s enough for the seller to accept a lower bid for a cash deal instead of a higher bid from a financing buyer.
It happened to a client of Dan Quinn, a real-estate agent who works for Prudential Carruthers Realtors in the Silver Spring area of Maryland. Against a cash buyer, the financing borrower just couldn’t compete, Quinn said.
“We were wringing our hands over this because the offer that came in on this property was cash, and we were quite a bit higher than the offer,” Quinn said. The winning bid was for $370,000; his client’s offer was $395,000, he said.
It’s a scenario that is becoming more common with the number of cash buyers on the rise, swooping in for deals on low-priced properties. Yet while cash is king, there are some things financing buyers can do to better their chances of having an offer accepted.
…
Related stories
Foreclosure filings up 7% in March: RealtyTrac (12:01a)
Home for sale this spring? Your outlook is bleak (April 13)
Bloom fades on spring home-buying market (April 13)
Seven stocks to sell (12:01a)
Okay, so what are your tips for people who don’t have $450,000 in cash lying around collecting dust? Rent forever?
Wait to buy until 2015 or later.
Wait to buy until your mortgage would be lower than your rent.
Who pays $370,000 cash for a SFH?
Seriously, my experience is that cash buyers don’t usually commit that much cash to any one property. If they have $370,000 laying around they would put it to work in multiple properties. $370,000 has a lot of potential energy - even in this day and age. Tying it up in a single building, especially if its a primary residence, doesn’t sound very savvy.
Most likely -
They pay cash for the property. Then they take out 99% loan using the property as collateral to purchase the next property…
There are still banks that give such loans (as the US government still buys all these loans at par). And plus they have instant equity as they bought below the market price!
1. MID is on it’s way out so taking out a loan is more expensive.
2. Where else can these people make 5%-6% on their investment tax free. If they take out a loan that’s what they are paying. It’s really risk free as well once you’ve made the decision to buy a house. If the house falls in value you would loose that money if you borrowed or paid cash.
3. Many may not be comfortable leaving money in the stock market or bonds.
Seriously think about this from the view of someone who is retired. They can’t earn any money on their so called safe investments so they decide to lock in their housing costs.
Why do you think mortgage deductions are on the way out?
Steve, You’re not an avid reader here are you?
No way MID will be repealed.
As Jim stated earlier, raising the standard deduction will deep six the MID by default. Everyone will use the standard deduction which takes the “housing is a tax break” realtor lie off the table.
Measton nailed it.
With rates this low, people with cash are essentially being forced to buy risky assets with that cash.
Also, there is a lot of fear among the cash crowd regarding a currency crisis.
One can also buy rentals in this market (for cash) and earn a net profit that is 4-6X greater than what they’d earn in a savings or MM account. The bond market is too risky @ these low rates, and stocks are quite high, IMHO. Too much risk in everything, but with RE, one can actually control it him/herself, and it is a tangible asset.
At this point in time, and under the current circumstances, many people think the wisest choice is to buy RE with cash.
edge
We’re paying cash (a tad N of $370K-So Ca) to lock in our housing cost, due to a Glaucoma issue. With multiple rents, since selling our home (regular sale), it will bring our monthly nut down to a livable amount. Also, we are getting to the “geezers in training” age.
Everyone’s walk in life is different. Decision Matrixs come from different variables.
Yeah, but that makes you a rare bird. We wouldn’t any of the REIC pumpers to think there’s a bus full of you out there. Which is something a lot of these “cash buyer” stories seem to be implying.
edge
Oh yeah, you nailed it.
I don’t believe for a second, there are a lot of cash buyers out there. Maybe a few of us, but not likely the amt they are BS’ing about.
Most of our competition has been FHA a-holes, who overbid and will probably walk away. It frustrates us to no end.
edge-
If there we so many cash buyers, then why do we see homes “contingent” (pending) for 90 days, and then come back on the market as a re-list? We hear that cash offers are common thing all the time, yet some homes are serial re-listing in our price point. Inspections happen quickly, so I say, it’s the financing or down pymts issues. The REIC is full of it.
/rant off
We’re paying cash (a tad N of $370K-So Ca) to lock in our housing cost,”
Is that what homes cost around here now ? The ones I see are more but that’s in Moorpark Ca
you have been shopping though and put alot of time and effort into getting a decent price on what you want.
I don’t have the energy yet beside I may decide to move back to AZ way cheaper. I’m 50 now with two kids in school have about 10 years to go until they are out so I could buy I guess and hang out for 10 years…
And I could pay cash too I suppose after all I sold in Moorpark in 2006
maybe lets see what landlord decides to do about lease thats’ due in June
cactus
Hope you and the family are well. I had you pegged younger.
We aren’t buying anything fancy, just a 4+2 one-story w/ a pool, and that should be our final and best.
Lots of re-lists,and lots of financing issues going on.
east Ventura County isn’t what it once was. Keep us in the loop on your decision matrix.
3) Don’t buy with a mortgage until mortgages are once again expected to be repaid, rather than expected to go into default after a couple of years of unaffordable payments.
Not many homes priced above $700k in my burb (west of Chicago) have been selling, but here are a few:
Selling price mortgage
700,000 595,000
925,000 740,000
850,000 675,000 short sale still pending, but info on sales
contract
1,200,000 900,000 prior house still contingent so loan might
be reduced some
At least two of these are ARMS, both 5 year fixed
these sales range from 10/2010 to 4/2011
In the last 120 days a quick scan revealed about 5 sales 700k or over.
2 of the above are included in that
Buy now, before rising mortgage rates price you out forever!
market pulse
April 14, 2011, 10:00 a.m. EDT
30-year fixed-rate mortgage rises to 4.91%
By Ruth Mantell
WASHINGTON (MarketWatch) — The average rate on the 30-year fixed-rate mortgage has gained for the fourth consecutive week, rising to 4.91% in the week ending April 14, up from 4.87% in the prior week, according to a survey released Thursday by Freddie Mac, a buyer of residential mortgages. Last year, the rate was at 5.07%.
…
On the contrary, I am waiting for rate to go 7% and 20% down payment before I consider buying.
My assumption is that most buyer use mortgage, thus what they can afford is only monthly cost.
20% guarantees that deal is real that mortgage will not default. 7% from 4% means house price will take a big cut to keep monthly cost roughly same.
I consider buyer with low initial monthly cost a shill buyer against people put real money to buy, they effectively boost price and benefits sellers and I refuse to play.
Of course, if majority of buyers are cash buyers I will be way-off and that means only one thing that I am really poor and do not deserve a house, I live with it fine.
vicever
We’re cash, and our competition has been buying on fumes, howmuchamonth “ID10T’s”. See my post above.
San Diego city budget philosophy: Preserve ill-gotten pension gains at all costs…
Sanders proposes huge library and park cuts, protects public safety
Budget would leave big deficit to be closed next year
By Craig Gustafson
Originally published April 13, 2011 at 8:22 p.m., updated April 13, 2011 at 8:25 p.m.
The two-year plan by Mayor Jerry Sanders to fix San Diego’s troubled finances before he leaves office begins with cuts that will leave libraries and recreation centers closed on most days, fund fewer positions for sworn police officers and remove fire pits from city beaches.
The mayor’s proposed budget for the fiscal year that begins July 1 calls for deep cuts to parks and libraries and a number of one-time financial fixes to tame a $56.7 million deficit in the city’s $1.1 billion operating budget. It also includes the restoration of idled fire engines and leaves a lingering long-term deficit that will need to be closed next year.
Likely the most jarring decision for city residents will be Sanders’ plan to slash library and recreation center hours in half, a move that will shutter those facilities on most days and eliminate swimming and after-school programs at some locations.
Sanders, who plans to release the budget at a news conference Thursday, called the cuts to parks and libraries “pretty dramatic” but necessary given the city’s financial woes.
…
Major budget proposals
Environmental Services: Eliminate trash collection for 14,200 residences on private streets as well as 4,500 businesses. Total cuts: $2 million
Fire: Restoration of idled fire engines, cuts to supplies and contracts, no staffing changes. Total increase: $8 million
Libraries: Library hours cut from 36 to 18 hours per week beginning July 1, branches open two days per week and alternately Saturdays, loss of 77 positions. Total cut: $7.4 million
Parks: Recreation center hours cut from 40 to 20 per week beginning Sept. 6, reduction in pool hours, beach fire pits eliminated, loss of 77 positions, elimination of some after-school and swim programs. Total cut: $6.5 million
Police: Loss of 27.5 full-time positions, including 20 unfilled jobs for sworn officers, reduction in uniform allowance for officers, cuts to contracts and supplies. Total cut: $5.5 million
Raise the fire budget, cut the libraries.
If we just burned all the books it would probably all even out.
How very Ray Bradbury of you!
“Something Wicked, This Way Comes”
That story scared the hell out of me as a kid.
I really like his storytelling, and him as a person. I enjoyed the story of Bradbury walking late at night in Santa Monica. He had Insomnia, so he took a little walk. He stopped at a car dealer, and was checking out cars in the lot, when the cops show up. No ID, a jacket over his PJ’s, and the cops didn’t know his name. It was quite an evening for ole’ Ray…
Given San Diego’s propensity for wildfires keeping SDFD intact might not be such a bad idea. Of course they could get creative and supplement it with an expanded volunteer force.
Never have understood the theory behind spending so much money and human lives protecting houses in fire prone areas.
Men, we all may not make it back today, but those owners of that 3/2/2 ranch with the granite counters and stainless steel appliances are counting on you!
Cute, but if those fires are not contained they could spread, and big time.
Yes, something we’ve witnessed plenty of times in So Cal.
Of course they could get creative and supplement it with an expanded volunteer force.
In times of disaster, this is precisely what happens. Read the book A Paradise Built in Hell. It talks about how volunteers helped to save SF after the 1906 earthquake.
With regards from your HBB Librarian…
Eventually - many cities will provide NO services and use all tax revenue collected to pay insane public union benefits and pensions…
And union goons will scream all the way into bankruptcy court…
This would be a great time for some deep pocketed folks to start building satellite cities with non-unionized police/fire officers. Provide some common facilities (libraries, parks etc) to residents. Basically, privately owned, for profit walled “cities”.
Basically, privately owned, for profit walled “cities”.
isn’t that what HOAs have taken a step towards? And those communities that don’t allow children as they don’t have schools and as such have lower property taxes?
Unfortunately the concept was coupled with (generally) ridiculous HOA rules as well.
it has been done - and it WORKS!!!
Life without public union goons is pretty sweet.
———————-
Reason.tv: Sandy Springs, Georgia - The City that Outsourced Everything April 12, 2011
While cities across the country are cutting services, raising taxes and contemplating bankruptcy, something extraordinary is happening in a suburban community just north of Atlanta, Georgia.
Since incorporating in 2005, Sandy Springs has improved its services, invested tens of millions of dollars in infrastructure and kept taxes flat. And get this: Sandy Springs has no long-term liabilities.
This is the story of Sandy Springs, Georgia—the city that outsourced everything.
Approximately 8 minutes.
Produced by Paul Feine and Alex Manning.
http://www.freerepublic.com/%5Ehttp://reason.com/blog/2011/04/12/reasontv-sandy-springs-georgia
Wiki: “…….affluent suburb of Atlanta……”
What works in “affluent suburbs” doesn’t necessarily work everywhere.
What works in “affluent suburbs” doesn’t necessarily work everywhere.
How about we give it a try? The present union goon corrupt system is certainly not working.
And PS - there may a reason why those places without or less union goons are much more “affluent”
We’ve had 30 years of “the free market is always right” running the show.
You can either take the view that “this isn’t working, maybe we should reconsider what we are doing”, or
“Things suck, the reason being we need to do is go all-in with what hasn’t been working”.
We have subcontracted out services in our fair burg. What happens is eventually you have a monopoly. That knows how to co-opt the local government. And God help you if you ever need service/support.
We’ve had 30 years of “the free market is always right” running the show.
how many of those 30 years have there been public employee unions?
How many of those years has gov’t been backstopping/subsidizing certain corportations/businesses/etc?
How many of those 30 years have there been tax policies in place to incentivize specific behaviors?
What “free market”, exactly?
Outsourcing public services has been a disaster for places like Arizona. A for-profit company with a government contract. Not Good.
Comment by yensoy
2011-04-14 08:51:19
This would be a great time for some deep pocketed folks to start building satellite cities with non-unionized police/fire officers. Provide some common facilities (libraries, parks etc) to residents. Basically, privately owned, for profit walled “cities”.
—————-
I would LOVE to see this happen. That way, those of us who want to pay for professional civil servants can life in “our” kind of world, and the no-tax types can live in their for-profit Utopia.
Hyperbole much?
Fire: Restoration of idled fire engines, cuts to supplies and contracts, no staffing changes. Total increase: $8 million”
Police: Loss of 27.5 full-time positions, including 20 unfilled jobs for sworn officers, reduction in uniform allowance for officers, cuts to contracts and supplies. Total cut: $5.5 million
”
Well that’s interesting maybe those red firehat stickers won’t keep firemen’s wives from getting tickets anymore when they drive like hell in 50K SUV’s
Another ugly budget for San Diego
By Union-Tribune Editorial Board
Thursday, April 14, 2011 at midnight
The new budget proposed by Mayor Jerry Sanders should anger every San Diegan. It is the annual reminder that shortsighted pension decisions by past mayors, city councils and managers have combined with the great recession to come home to roost in a horrible way.
If anything like the mayor’s proposal is approved by the council, as is likely, the $56.7 million deficit for the fiscal year beginning July 1 will be eliminated largely by decimating – Sanders’ word – the Library and Parks and Recreation departments and their operations, cutting 77 positions from each and reducing all library and park and rec center hours by half. This city that is so naturally beautiful, that has so much to offer in so many ways, will not be able to keep its libraries open more than 20 hours a week. Park and rec centers will be down to 18 hours a week.
The proposal also whacks at other departments and services, though not as severely. It calls for a cut of $5.4 million from the Police Department, with 20 uniformed officer positions lost. Throughout City Hall, there will be 248 fewer positions next year – 1,671 fewer jobs than there were four or five years ago. City employees will not get a pay raise again this year. Retirees are about to get their health care benefits cut, though precisely how much is not yet known.
We take the mayor at his word when he says this is the best plan he can come up with to end the Fire Department brownout policy that was a centerpiece of last year’s budget-balancing act and that virtually everyone agrees is a disaster waiting to happen.
…
OK, no matter where you live, or what you live in, its time for spring cleaning.
After you move things and vacuum… you can use this stuf as a natural pesticide
Diamataceous earth:
http://www.princeton.edu/~pccm/outreach/scsp/mixturesandsolutions/diatoms/coffee_filter.html
I use it instead of boric acid. It works very well and they look cool (under a scope). So many crazy shapes. No wonder it works so well as a filter medium.
Diatomaceous earth and red (or cayenne) pepper works for just about every pest.
Oh, so that’s what happened to Joseph and Edward?
There HAVE been better times to buy!
P.S. For the record, to my recollection, the highest median price for San Diego at the bubble peak was $517,000 or so. At its current level of $325,000, the median is so far off by ($325,000/$517,000-1)*100 = -37% — SO FAR.
That’s a pretty good haircut, but still far short of a full retracement of the astronomical price increases which occurred during the housing bubble years.
DataQuick: San Diego home sales ‘weak’ in March
By Lily Leung
Wednesday, April 13, 2011 at 9:47 a.m.
March home sales in San Diego County were weak and prices fell, heavily influenced by the absence of a government tax credit that drove buyers to the market one year ago and tight lending rules.
In March — traditionally the start of the buying season — the region logged 3,063 sales of all home types, down 5.1 from last year, according to figures from DataQuick Information Systems on Wednesday. Combined sales were up 31.5 percent from February, which is typical because the average increase between those months is 37.3 percent, said DataQuick analyst Andrew LePage.
Prices followed the same path as sales in March. The median price for all home types in March was $325,000, up 5.5 percent from February but down 1.5 percent a year ago.
Year-over-year decreases in both sales and price could be attributed to the lack of a homebuyers’ tax credit and consumers waiting on the sidelines for confirmation that prices have really bottomed out, LePage said.
“They also want to see the economy stronger,” LePage said. “…Sales (in March) were weak.”
…
That’s a pretty good haircut,
Yeah, and there will be some folks sportin’ grey-hairs when it grows all back like before. Even worse, by that time, some might not be growin’ any hairs t’at all!
I’ve heard that beards can keep growing while a stiff lies in wait for burial…
Nothing like seein’ within yer own eyes to dispel any such rumors…
Countrywide Puzzle
As nonprosecutions go, perhaps none is more puzzling to legal experts than the case of Countrywide, the nation’s largest mortgage lender. Last month, the office of the United States attorney for Los Angeles dropped its investigation of Mr. Mozilo after the S.E.C. extracted a settlement from him in a civil fraud case. Mr. Mozilo paid $22.5 million in penalties, without admitting or denying the accusations.
White-collar crime lawyers contend that Countrywide exemplifies the difficulties of mounting a criminal case without assistance and documentation from regulators — the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Fed, in Countrywide’s case.
“When regulators don’t believe in regulation and don’t get what is going on at the companies they oversee, there can be no major white-collar crime prosecutions,” said Henry N. Pontell, professor of criminology, law and society in the School of Social Ecology at the University of California, Irvine. “If they don’t understand what we call collective embezzlement, where people are literally looting their own firms, then it’s impossible to bring cases.”
Financial crisis cases can be brought by many parties. Since the big banks’ mortgage machinery involved loans on properties across the country, attorneys general in most states have broad criminal authority over most of these institutions. The Justice Department can bring civil or criminal cases, while the S.E.C. can file only civil lawsuits.
All of these enforcement agencies traditionally depend heavily on referrals from bank regulators, who are more savvy on complex financial matters.
But data supplied by the Justice Department and compiled by a group at Syracuse University show that over the last decade, regulators have referred substantially fewer cases to criminal investigators than previously.
The university’s Transactional Records Access Clearinghouse indicates that in 1995, bank regulators referred 1,837 cases to the Justice Department. In 2006, that number had fallen to 75. In the four subsequent years, a period encompassing the worst of the crisis, an average of only 72 a year have been referred for criminal prosecution.
Law enforcement officials say financial case referrals began declining under President Clinton as his administration shifted its focus to health care fraud. The trend continued in the Bush administration, except for a spike in prosecutions for Enron, WorldCom, Tyco and others for accounting fraud.
The Office of Thrift Supervision was in a particularly good position to help guide possible prosecutions. From the summer of 2007 to the end of 2008, O.T.S.-overseen banks with $355 billion in assets failed.
The thrift supervisor, however, has not referred a single case to the Justice Department since 2000, the Syracuse data show. The Office of the Comptroller of the Currency, a unit of the Treasury Department, has referred only three in the last decade.
The comptroller’s office declined to comment on its referrals. But a spokesman, Kevin Mukri, noted that bank regulators can and do bring their own civil enforcement actions. But most are against small banks and do not involve the stiff penalties that accompany criminal charges.
Historically, Countrywide’s bank subsidiary was overseen by the comptroller, while the Federal Reserve supervised its home loans unit. But in March 2007, Countrywide switched oversight of both units to the thrift supervisor. That agency was overseen at the time by John M. Reich, a former banker and Senate staff member appointed in 2005 by President George W. Bush.
Robert Gnaizda, former general counsel at the Greenlining Institute, a nonprofit consumer organization in Oakland, Calif., said he had spoken often with Mr. Reich about Countrywide’s reckless lending.
“We saw that people were getting bad loans,” Mr. Gnaizda recalled. “We focused on Countrywide because they were the largest originator in California and they were the ones with the most exotic mortgages.”
Mr. Gnaizda suggested many times that the thrift supervisor tighten its oversight of the company, he said. He said he advised Mr. Reich to set up a hot line for whistle-blowers inside Countrywide to communicate with regulators.
“I told John, ‘This is what any police chief does if he wants to solve a crime,’ ” Mr. Gnaizda said in an interview. “John was uninterested. He told me he was a good friend of Mozilo’s.”
In an e-mail message, Mr. Reich said he did not recall the conversation with Mr. Gnaizda, and his relationships with the chief executives of banks overseen by his agency were strictly professional. “I met with Mr. Mozilo only a few times, always in a business environment, and any insinuation of a personal friendship is simply false,” he wrote.
After the crisis had subsided, another opportunity to investigate Countrywide and its executives yielded little. The Financial Crisis Inquiry Commission, created by Congress to investigate the origins of the disaster, decided not to make an in-depth examination of the company — though some staff members felt strongly that it should.
Nice NYT article
finance.yahoo.com/news/In-Financial-Crisis-No-nytimes-220824617.html?x=0&sec=topStories&pos=8&asset=&ccode=
“We saw that people were getting bad loans,” Mr. Gnaizda recalled. “We focused on Countrywide because they were the largest originator in California and they were the ones with the most exotic mortgages.”
And the VIP Mortgages to then Senator Dodd…
Agree Dodd is a pig. He lost his job, but the PTB gave him a new cushy job that pays much better. Thus, future lap dogs to the rich will take note and do their bidding.
“When regulators don’t believe in regulation and don’t get what is going on at the companies they oversee, there can be no major white-collar crime prosecutions,” said Henry N. Pontell, professor of criminology, law and society in the School of Social Ecology at the University of California, Irvine. “If they don’t understand what we call collective embezzlement, where people are literally looting their own firms, then it’s impossible to bring cases.”
Bingo. There’s your smoking gun, people.
And, for more on the looting of one’s own firm, read William K. Black’s book, The Best Way to Rob a Bank is to Own One. It’s all about control fraud during the 1980s go-go era of the S&Ls.
With regards from your HBB Librarian…
Over 1500 people went to jail for S&L fraud for an average of 3.2 years each…
Please add to the library
—————-
S&L Fraud Sentences Average 3.2 Years http://articles.latimes.com/1990-09-04/business/fi-590_1_15-year-prison
1500 Bankers went to Jail After the S&L Crisis. Almost None Today
http://newworldorderreport.com/News/tabid/266/ID/4509/1500-Bankers-went-to-Jail-After-the-SL-Crisis-Almost-None-Today.aspx
In The Best Way to Rob a Bank is to Own One, William K. Black went on at great length about the jailing of the crooked bankers. Which is one of the many reasons why it’s such a great read.
“Collective embezzlement” just described the last 30 years of corporate culture.
Along with:
Insider trading
Backdating stock options
Fraudulent ratings
Lobbying for favorable offshore tax breaks
Deliberate underfunding and termination of pensions
Weakening of stockholder power
We really do live in Corporate Communism.
That was a good find, measton. Very sign-of-the-timesy. I am sooooo glad to see GWBJ finally gone. That was a horrible time.
Great article. Thanks for bringing it to our attention.
Time warp:
The other night I was sifting through my stuff in preparation for my move when I came across a Money section of the USA Today from 1998 that I had saved.
The stories on the front page?
- A picture of Sir AG with a story about his contemplating an interest rate cut due to fallout from LCTM/Asia
- A pictograph bemoaning the sharp rise and unsustainability of consumer debt
“A picture of Sir AG”
More time warp: Despite the tragic decline of Ayn Rand disciple AG’s reputation, Ayn Rand has apparently not gone out of fashion just yet.
Wednesday, Apr 13, 2011 17:52 ET
Paul Ryan’s bad day
The GOP’s budget-cutting front man attacks Obama for being too partisan. Let’s review the record…
By Andrew Leonard
…
Ryan’s budget pays for tax cuts for the wealthiest Americans by forcing seniors to pay more for their healthcare. I always thought Ayn Rand fans were made of tougher stuff.
…
I love how this pig is portrayed as an Ayn Randian. The reality is he voted for TARP and GM bailout. Ie he cares for the rich and hopes they drop him some crumbs.
Rethugnican business model: Protect the wealthy from tax cuts and expect them to return a quid pro quo cut of the tax savings as campaign contributions.
…and cushy, post, public office, jobs.
LCTM
Ha,
“Long-Term” = Massive “TrueFinancialCult™” Destruction…work ahead…expect delays!
Dec 2008……April 15th 2020…use caution…falling boulders…watch-out…
FYI hwy, the reason I saved that particular section of the USA Today from 1998 was that on the back page there was a full page ad from the Norfolk Southern showing all the railroads over history that had found their way into the NS system.
No, I did not save it for the handsome picture of a much younger Sir AG.
Railroads, that is…(I’ve never mis-took you edgeH20john for ayn rand disciple collector anywho.)
Scott Walker’s One-Sided View of the World Has No Place in Congress
WASHINGTON–(BUSINESS WIRE)–International Association of Fire Fighters General President Harold Schaitberger today released this statement about union-busting Wisconsin Governor Scott Walker, who will testify Thursday at a House Oversight and Government Reform Committee hearing on state and municipal debt:
“Wisconsin workers, including fire fighters and paramedics, came to the table in good faith to address budgetary issues. Workers conceded to the governor’s economic demands, but Walker has doggedly attacked bargaining rights and a fully funded pension plan as part of his power grab.”
“It’s disgraceful that Governor Walker will have a congressional forum to promote his skewed anti-worker view of the debt fiction he created in his own state, where he caused a budget deficit by giving tax cuts to corporations and then blamed Wisconsin workers for the financial problems.
“An honest and fair discussion about the fiscal challenges that cities and states face would be useful, but only if it first acknowledges that the principle reason for the larger than normal state and municipal debt today is the collapse of the financial system, which occurred because of the greed and incompetence of Wall Street. Pointing the finger at workers who earn wages to live a middle class life is shameful.
“Wisconsin workers, including fire fighters and paramedics, came to the table in good faith to address budgetary issues. Workers conceded to the governor’s economic demands, but Walker has doggedly attacked bargaining rights and a fully funded pension plan as part of his power grab.
“It’s appropriate that Governor Walker will testify tomorrow with National Right to Work President Mark Mix because the agenda of both men is crystal clear: to destroy unions and the rights of workers.
“This fictional debt ‘crisis’ is a distraction created by Walker and those like David Koch, who is funding this crusade.
…
union-busting Wisconsin Governor Scott Walker
Only to union goons does:
1. Making public union collect their own dues (not the state)
2. Making public union pay more their benefits and pension (but still with the taxpayer picking up the vast majority of the costs)
Equal BUSTING unions.
The insane entitlement mentality of union goons is something to behold. They think “just raise taxes” to pay for their stuff is the only answer ever needed…
What about rescinding collective bargaining rights? Where does that land on your ‘union goon’ scale?
All union members are goons. So sayeth Mr 2banana, a resident of Sandy Springs, Georgia.
Or Roswell, I forget which affluent suburb…….
It would be great not to put up with this crap on a daily basis from public union goons.
But it is for the children - doncha know…
—————————–
Wisconsin - Missing Hudson teachers face up to 15 day suspensions
Hudson Star-Observer | 4/13/11 | Meg Heaton
Late Tuesday night the Hudson Board of Education meted out punishment for teachers who called in sick in protest against Gov. Scott Walker’s budget repair bill, causing school to be closed on Feb. 18.
Board president Barb VanLoenen read a resolution that included several categories ranging from one-day unpaid suspensions up to 15 days. All categories included letters of reprimand and warning in the teachers’ personnel files. The suspensions went up based on actions a teacher was believed to have taken. The longer suspensions were for teachers who encouraged colleagues to call in sick and who conducted or discussed union business or talked to the media on district property.
How dare they exercise their right to free speech and to peaceably assemble to petition the government with a list of their grievance?!
Damn commies!
Oh wait…
Professor Bear’s frugal saving tip: Don’t buy a house when governments at all levels are grappling with severe budget gaps.
Frugal Family: Near government shutdown makes me appreciate frugal lifestyle
by Stephanie Eaton Harvie
1 day 6 hrs ago
When the federal government announced that they would be shutting down if they did not agree on a budget, it made me appreciate my passion for frugality. If the shut down occurred, my husband, a soldier in the United States military, would not have been paid.
The thought of not having income coming in can be a pretty scary thing, but I rested in the comfort that because of our frugal lifestyle we would be okay for a little while.
I think a lot of people have the misconception that frugal means you are poor. That is not the case. Frugal means you are smart about your daily living. By being aware of what you are spending, it helps you cut costs and acquire a safety net of savings.
…
Sing it!
One important lesson in frugality is want versus need. It is easy to get caught up in getting a good deal on an item or wanting to purchase something brand new. So many people in today’s society want the instant gratification of purchasing something. Before making a purchase ask yourself whether you really need the item or do you simply want the item. Some frugal livers recommend waiting a 24-hour period to think about whether or not you really need the purchase. If the purchase must be made, make sure you shop around and get the item for the greatest price. Do not be afraid to buy the item second hand if at all possible.
Sing it?
Frugality?? but how will we get along with out our Denali, Disneyland trips, and frequent trips to the mall??
A friend was shocked to discover I don’t own an electric can opener, just one you operate all by yourself.
A friend was shocked to discover I don’t own an electric can opener, just one you operate all by yourself.
I don’t own one either. We had one growing up, but honestly it seems like more of a hassle to use an electric vs a manual.
I don’t have an electric can opener either, but its mostly a space and storage issue. Manual ones take up much less room. Also, I only open maybe one can a week and these days so many of them come with pop and pull tops.
Other than pet food, olives, or fish (mackerel or sardines), if it comes in a can, you’re healthier without it.
We have a manual can opener too, so I feel more “normal” now. We don’t even own a Keurig®. We’re parsimonious.
“Other than pet food, olives, or fish (mackerel or sardines)”
What about the four palettes of garbanzo beans I just bought with which to make hummus? And canned tomatoes (last season was awful for toms)?
OK, MrBubble, I get the message. I live my life through a myopic lens.
I don’t eat many canned things due to the BPA coating in cans. I do a lot of volunteerism for Breast Cancer, so canned goods are a caution. Enjoy your hummus (love that stuff) and tomatoes.
“BPA coating in cans”
Seriously? Where have I been? I knew about BPA in plastic bottles but we’re glass milk and canning/jarring and metal water bottle people.
But cans? I had no idea. But I did a quick search and found this link which made me feel a little better:
http://www.treehugger.com/files/2010/05/-study-shows-nothing-new.php
MrBubble
I don’t trust any non-profit or think tank on any information regarding health issues. But I thank you for the link. I’ll have to find out who paid for any study, owns the website, etc…
I use to think Aspartame was ok too, until I really dug into it. The problem is both sides of any issue is funded by big $ and an agenda. It makes my head spin.
You opened my mind to do more due diligence. Hey, pass the hummus, when it’s ready.
News flash: If your mortgage payment is 48% of your take home pay, Johnny’s college is $35K a year, and health care costs rise 20% a year — and that’s AFTER your employers switches health insurance companies without telling you and you have to change your family’s doctors, again — then the savings on a manual can opener aren’t going to make a dent.
I think Johnny needs to go to State, and maybe CC first.
Their habits will serve them well later in the year. I think we will get some sort of shut down in the fall/early winter. A lot of people in my office agree.
If for any reason it will be that continuous tumult over the course of the next year and half fits into a lot of agendas.
Hwy50’s frugal
savingeasymoney-making tip:Wall St. aka, “TrueFinancialCult™” / “TrueTrustUS™” / “TrueNothingcanevergowrong!™” / “TruestocksAlwaysMostlygoUP!™”: “Gives u$
allbig-chunk$ of your ca$h, leverage a loan from us, & toss in all-or-part (your choice of course) of your $ocial $ecurity $avings too.Our
Mission Statementmotto:“We’ll never let you D
rown!”Frugality is against the law in a society who’s economy is 75% consumer driven.
Good article:
House Prices in Free Fall. Homes likely to lose 1/4 of their real value in next 4 years.
Where We are Going
In June 2006, house prices peaked as supply increased faster than demand and the housing price bubble stopped expanding. Starting early in 2009, the Federal Reserve, Congress, and the Obama Administration spent hundreds of billions of dollars trying to keep house prices from falling. They subsidized first time home buyers, bought mortgage-backed securities, subsidized mortgage buyers, and took other measures. Apparently, these subsidies only slowed the fall in house prices.
If current trends continue, real house prices (house prices after subtracting inflation) will likely lose about a quarter of their real value over the next 4 years. If inflation continues at about 2%, this would produce a four year fall in actual house prices of about 4% per year.
It may soon become clear that the Federal Reserve and the federal government wasted hundreds of billions of dollars simply to delay an inevitable fall in housing prices. Economic historians may compare their policies to the pervasive price subsidies that eventually bankrupted the Soviet government.
http://www.americanthinker.com/2011/04/house_prices_in_free_fall.html
How does 2% a year become 25% in four years?
4% becomes 15% in four years.
Via the magic of compound interest of course!
(joke).
Our house $ is in cash and the interest paid was under $250. That’s criminal.
I’m sorry, that’s for all of 2010.
For the good of the Nation, Wall Street should be shut off from the Main Street mortgage market FOR GOOD!
BUSINESS
APRIL 14, 2011
Senate Report Lays Bare Mortgage Mess
Panel Recommends a Range of Remedies for Financial Sector; ‘I Found White Elephant, Flying Pig’
By CARRICK MOLLENKAMP And LIZ RAPPAPORT
Some call the concept of owning a home the American dream.
Wall Street bankers called it something different: “Pigs.” “Crap.” A “white elephant, flying pig and unicorn.”
Those descriptions of the U.S. mortgage market were highlighted in a U.S. Senate report Wednesday that offered one view of the events leading up to the financial crisis of 2008.
…
Hwy50’s “Squeeze-their-huevos” Ethical & Professional Panel Recommends a
Range of Remediesx1 Remedy for theFinancial“TrueFinancialCult™” Et. al. Sector:Straighten up and fly right!
Hwy plays Nat King Cole singin’:
A buzzard took monkey for a ride in the air
The monkey thought that everything was on the square
The buzzard tried to throw the monkey off his back
But the monkey grabbed his neck and said– Now listen, Jack
Straighten up and fly right
Straighten up and fly right
Straighten up and fly right
Cool down, papa, don’t you blow your top.
Ain’t no use in divin’
What’s the use in jivin’
Straighten up and fly right
Cool down, papa, don’t you blow your top.
The buzzard told the monkey “You’re chokin’ me
Release your hold and I’ll set you free
The monkey looked the buzzard right dead in the eye and said
Your story’s so touching but it sounds just like a lie
Straighten up and fly right
Straighten up and stay right
Straighten up and fly right
Cool down, papa, don’t you blow your top.
If there’s one piece of financial advice that most people agree on it’s that individual investors should buy mutual funds.
Why?
Because the mutual funds do the work that individual investors don’t have the time, skill, or money to do: Figure out which stocks are good and which stocks are bad and invest your money accordingly.
But that’s a false promise, says Mark Hebner, who is CEO of a $1.5 billion asset management firm called Index Funds Advisors . The vast majority of mutual funds do worse than index funds. As a result, they cost their investors money–both from high fees and reduced returns.
The fundamental flaw in most mutual funds, Hebner says, is that even well-educated portfolio managers with huge research budgets can’t pick winners consistently enough to beat the market over time. Yes, by the luck of the draw, about a third of mutual funds will beat the indices each year. But last year’s winners are often this year’s losers. When you look at long-term performance, only a handful of funds beat the indices. And there’s no tried-and-true way of picking these funds in advance.
The reason “skilled” portfolio managers can’t beat the market, Hebner says, is that the market is primarily made up of other “skilled” portfolio managers, and they trade against each other all day long. When your competition is as well-educated, well-funded, and skilled as you are, you’re going to lose as much as you win. And when you subtract the fees that you charge your investors from your investment performance, the result is performance that lags the index.
I think back to my pension plan getting rid of a couple index funds in exchange for managed ones. I fought it to no avail. The suits said mumbojumbo and put up graphs which did not match the publicly available graphs. So far this year the managed funds have done worse and cost more.
I strongly dislike mutual funds. I would ratther own the cream of the crop. Stocks that have always beat the DJIA. XOM, PM, MO, PG, LMT, PEP, UTX, SO and MCD (buy and NEVER sell). Why pay some bozo fund manager for doing something I can do better…
…timing is everything
If you can’t take the time to watch over and monitor your investments, you deserve to get fleeced.
“If you can’t take the time to watch over and monitor your investments, you deserve to get fleeced.”
How much time do I have to spend to become expert at it?
How much time does it take to monitor investments?
Can I expect to do it better than someone who has 40 hours per week?
Would my time be better spent increasing my job skills and marketability in my chosen field? Or can I make more by taking on a second job? A 10% return on $1000 is not a lot of money.
There are only so many things that one person can be good at. If I have a legal or medical issue, I could spend the time to know as much as a professional or I can hire someone who has already got the expertise I am looking for.
And there are so many things competing for attention. Anyone with a family also has to weigh the time spent on investments versus time with family.
Agree, Happy.
By having people who specialize in different areas, we are more likely to have superior goods and services as a result. The downside, is that we need to rely on each other more, and this is why regulations are needed — to protect people from “experts” who lie and seek to illegally/unethically gain at the expense of others.
From Market News:
Prices of new homes in China’s capital plunged 26.7% month-on-month in March, the Beijing News reported Tuesday, citing data from the city’s Housing and Urban-Rural Development Commission.
Average prices of newly-built houses in March fell 10.9% over the same month last year to CNY19,679 per square meter, marking the first year-on-year decline since September 2009.
Home purchases fell 50.9% y/y and 41.5% m/m, the newspaper said, citing an unidentified official from the Housing Commission as saying the falls point to the government’s crackdown on speculation in the real estate market.
Beijing property prices rose 0.4% m/m in February, 0.8% in January and 0.2% in December, according to National Bureau of Statistics data.
The needle has made contact with the overinflated balloon. What will happen?
Somewhat bogus stats, most likely not an apples-to-apples comparison.
Property prices are close to CNY 50,000 per square meter in any middle-of-the-road desirable area/construction. We are talking about apartments here. Maybe the average dropped because some large supply in distant suburbs entered the market. New constructions are mushrooming in this part of the world.
Yes there was some kind of cooling but that was because of some new rule restricting home ownership to Beijing “hukou” holders (some sort of internal passport system - you can’t just get a hukou because you live in a certain place - it’s tied to your nativity and it’s awfully hard to get a hukou transferred - an average Chinese can get a US visa easier than a Beijing hukou).
Unintended consequence was that a bunch of non-Beijing hukou holders with the wherewithal to buy were forced into the rental market. Rental prices went up 10-20% in the same month.
I know it, I am living it.
“Hukou” sounds, “somewhat”, like the equivalent of a residency requirement, albeit, a rather restrictive one.
Is that close?
Thanks for your insights, yensoy. It’s important to have “eyes on the ground” who can give us the full story.
I can’t believe the editor of that paper is being allowed to live.
No worries it just a “one-time fluke”
New unemployment claims surge to 412,000
April 14, 2011
NEW YORK (CNNMoney) — The number of Americans filing first-time claims for unemployment benefits rose last week, a sign that the job market’s road to recovery remains bumpy.
The number of initial claims increased to 412,000 in the week ended Apr. 9, up 27,000 from the week before, the Labor Department said Thursday. The figure was the highest in two months and surprised economists, who were expecting 385,000 new claims.
The spike disrupted the downhill move in jobless claims, which had been coming in below the 400,000-mark for four consecutive weeks.
“Given the underlying downward trend, we are inclined to see it as a one-time fluke,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
We’ve been seeing “one time flukes” for two years.
Really I’d like to know whether these guys actually believe this garbage,
Or if they have come to the realization that the Globalization/Service Industry/Securitization/Cut Taxes/Crony Capitalism Master Plan has trashed our economy for a generation or more?
And are paying all the soothsayers to put out optimistic sooths, in an effort to keep the sheeple in front of the TV, and the torches and pitchforks in the barn?
Except if won’t be “torches and pitchforks” It will be AR-15s, AKs, and SKSs.
When you look at the trend over the past two years, it looks like a pretty steady fall.
Peaked at 659k in March 2009. At the top of the market (pre-recession, in 2006/2007), the number was about 300k per month pretty steadily, so going to 0 isn’t the target.
Not saying we are back to health, but there is actually credibility in what the guy says about the uptick being against the trend.
30 years of “one time flukes.”
When does it stop being a fluke?
Share of population working
Sources: USA TODAY, Census, Bureau of Labor Statistics
The share of the population that is working fell to its lowest level last year since women started entering the workforce in large numbers three decades ago, a USA TODAY analysis finds.
Only 45.4% of Americans had jobs in 2010, the lowest rate since 1983 and down from a peak of 49.3% in 2000. Last year, just 66.8% of men had jobs, the lowest on record.
The bad economy, an aging population and a plateau in women working are contributing to changes that pose serious challenges for financing the nation’s social programs.
“What’s wrong with the economy may be speeding up trends that are already happening,” says Marc Goldwein, policy director of the Committee for a Responsible Federal Budget, a non-partisan group favoring smaller deficits.
For example, job troubles appear to have slowed a trend of people working later in life, putting more pressure on Social Security, he says.
Another change: the bulk of those not working has shifted from children to adults.
In 2000, the nation had roughly the same number of children and non-working adults. Since then, the population of non-working adults has grown 27 million while the nation added just 3 million children under 18.
The share of the population that is working fell to its lowest level last year since women started entering the workforce in large numbers three decades ago, a USA TODAY analysis finds.
Well, that is one way to lower the unemployment rate.
Just have less people in the pool…
Yup. The more people give up looking for work, the lower the unemployment rate decreases, as a reduction in the number of people looking subtracts equally from the number in the labor force and the number unemployed.
For example, if there are, say, 140 million people in the labor force and 14 million out of work, the unemployment rate is 10% (14/140*100%). Now if 3 million of them throw in the towel on their job searches because there are no jobs to be found, the new unemployment rate is 11/137*100% = 8%, clearly a substantial improvement.
The problem is, those people don’t just magically disappear.
That’s okay. Cutting Medicare and Medicaid, and keeping our “health care system” as it’s currently configured will fix that in a few years.
The financial results of Ryan’s plan are based on an analysis that assumed the changes would bring us to 2.8% unemployment over about a decade. It assumed a 2% drop (to 6.8%) almost immediately.
So, he may not be asserting that tons of new jobs will be created. It could be that the plan, if implemented, will cause huge numbers of people to give up. Hmm…hadn’t looked at it that way.
“The financial results of Ryan’s plan are based on an analysis that assumed the changes would bring us to 2.8% unemployment over about a decade.”
Not only is he an Ayn Rand fanatic, but he is an economics Republitard.
I find it shocking how many people are all for kicking grandma to the curb.
It’s our Corporate Capitalist Christian Values (TM). Anyone who doesn’t subscribe to them isn’t a true Christian!
I’d like to see someone do the analysis vis-a-vis demographic trends. Is the labor participation rate falling in each age group? Or is the population simply aging (meaning that more people are of age that historically are not part of the labor force)?
Global food prices have soared 36 percent from a year ago, according to the Bank’s food price index released Thursday, pushing some 44 million people below the $1.25 a day poverty line.
Another 10 million people would be pushed into poverty if prices rise another 10 percent, according to Food Price Watch, a Bank price monitor.
“One of the points that we are trying to emphasize through these meetings is the need for the G20 and for the World Bank and others to put food first,” Zoellick said.
“Because I think we are in a particular moment of vulnerability in that if you have some other events, which you can never predict. We really don’t have a cushion.”
Strauss-Kahn said the focus on restoring growth has sacrificed attention to important social issues.
“Common knowledge has been for a very long time that if you have growth you have jobs,” he said.
But the current situation is proving that is not always correct.
Yes that’s because you haven’t focused on growth of the economy or of the middle class you have focused on propping up prices so that the rich don’t loose money. There is no increased demand only hoarding and speculation. Seriously does anyone thing these countries facing 40% food and fuel inflation are consuming more. US gas consumption has fallen for 5 months. US cattle heard at 50 year lows. Corn is being propped up by the use of ethanol. This consumes land that would be used for other crops. I’d love to know the real total in grain storage.
Yep.
“Global food prices have soared 36 percent from a year ago, according to the Bank’s food price index released Thursday, pushing some 44 million people below the $1.25 a day poverty line.”
No worries, cuz food doesn’t count towards inflation. The Fed told me so.
Bingo.
I need some help.
In our town we have a small group
of guys who are trying to bring positive change to our
city government which is riddled with corruption and
self promoted empires.
One of them is the Dept. of Economic Development, which is lavishly funded but produces nothing.
I need a couple of you who own businesses to write
to that department and ask what the city would do
for them if they relocated here.
You can contact me at dbmc@budget.net and I can tell you exactly what we need. Thanks in advance.
Do you happen to have oil underground?
Sarkozy will send in fighter jets, and Obama will pitch in some tomahawks.
Seriously, why don’t you write to them yourself pretending to own a business? I am assuming it’s not illegal since universities publish such kinds of research all the time (remember the “black sounding name on resume” study from some time ago?).
We need someone out of town, out of state, to do this so that the idiot here in town will check and
realize that it is a legitimate business that is asking for the information….
One of them is the Dept. of Economic Development, which is lavishly funded but produces nothing.
Sounds like our local Downtown revitalization effort, which is called Rio Nuevo.
Long story short: More than $230 have been spent, but there’s very little to show for it. Lots of local taxpayers, including Yours Truly, are very unhappy. And now the FBI is getting into investigative mode…
We killed the “Downtown River Economic Zone”
here that the city tried to foist on the citizens.
Slim, sure you don’t want to open a photo studio
here in southern Oregon?
Slim, sure you don’t want to open a photo studio
here in southern Oregon?
Thanks, but no thanks. I took a two-week course at the United Bicycle Institute in Ashland and felt…
…hemmed in.
Maybe it was those mountains, maybe it was the very small town I was in, I don’t know. But I was quite happy to leave.
You could fake it……………
Wait! What?! Everybody DOESN’T want to live here??
But Rancher, what if they DO make me a good deal?
Let me know and I’ll franchise your business…
Kicking the can down the road on eliminating WELFARE FOR THE WEALTHY…
I like Obama’s idea to at least eliminate the regressive nature of the MID (in which case it would no longer qualify as WELFARE FOR THE WEALTHY)…
Another fight brewing over the mortgage interest deduction
By: Ethan C. Nobles
13 April 2011
Just a few months ago, an effort to significantly reduce the mortgage interest deduction failed.
National Commission on Fiscal Responsibility and Reform — a task force put together by President Barack Obama — put together a report in furtherance of its mission to save $4 trillion over the next decade. In addition to tax increases, spending cuts and elimination of a lot of tax breaks was a suggestion to scale back the mortgage interest deduction. One of the proposals in that plan was a measure turning the mortgage interest deduction into a 12 percent credit available to all home owners, rather than the current deduction that is tied to income. The mortgage size was to be capped at $500,000 and interest on mortgages for second homes and on home equity loans wouldn’t be eligible.
The report didn’t receive the votes necessary to make it to Congress in December, thus nullifying the most immediate threat to the mortgage interest deduction. Obama, in a speech tonight, raised the possibility of cutting that deduction as part of an overall plan to raise an additional $1 trillion in tax revenue over the next 12 years.
It appears, then, the fight over the mortgage interest deduction was only over temporarily.
…
We can hope.
~ Clipped from The 5Min. Forecast
Confident and Complacent
Investor Sentiment Indicates a Possible Market Correction
Eric Fry Reporting from Laguna Beach, California…
A friend forwarded me an email yesterday from K2 Advisors. I don’t know anything about K2 Advisors, except that it is based in Stamford, Connecticut and its emails are packed full of interesting insights.
For example, K2 notes that:
Bond yield spreads have narrowed to their lowest levels since 2007. [i.e., the buyers of corporate bonds are confident. They are demanding very little incremental yield over Treasury bonds].
An ISI poll shows that 93% of institutional investors think we are in a bull market.
According to Investors Intelligence, only 15.7% of investors are bearish - the lowest reading in 20 years.
In other words, investors are extremely confident and complacent. From a contrarian standpoint, extremes of complacency tend to precede significant market corrections.
Curiously, as K2 Advisors points out, bullish investor sentiment is hitting high levels at the very same moment that inflation is heating up noticeably and the US dollar is hitting new low levels.
“The US dollar is hitting 52-week lows,” K2 observes, “as commodities are hitting new highs and TIPs-based inflation expectations are bumping up against 10-year highs.”
What does it all mean? Maybe nothing much…at least for now. But the seeds of stock market distress are germinating.
Stocks love a weak dollar, as long as it doesn’t get too weak. Then stocks hate a weak dollar, because a very weak dollar is a sign that inflation is winning…and the rest of us are losing.
During the inflationary 1970s, the stock market was a disaster. After adjusting for the ravages of that decade’s runaway inflation, stocks produced a total return of about minus 20%.
Will past be prologue?
Without access to the “Teacher’s Edition,” we have no idea. But we have some idea that inflation is bad. And we have an accompanying idea that inflation is gathering steam. Therefore, we have a deductive idea that hard assets investments will fare better than stocks over the years ahead.
That’s our deductive idea, remember, not an etched-in-stone prediction. If it’s predictions you seek, we predict that hard assets will fare much, much better than bonds over the years ahead. In fact, we would go so far as to say that within five years, the current holders of long- dated Treasury bonds will wish they were holding barbed wire instead.
So what’s the problem with this? Once they become impoverished all you do is get on food stamps with the other 43 million. Nothing to worry about.
Item: Food price hikes could push millions to poverty. ~ April 14, 2011
NEW YORK (CNNMoney) — As global food prices rise near record highs, the World Bank warned Thursday that further spikes could push millions more people deeper into poverty.
The organization that loans money to developing nations said its global food price index was up 36% in March from levels a year earlier. The increase was driven by sharp boosts in prices for corn, wheat, soybeans and other staples.
Despite a modest drop versus the month before, the index remains near its 2008 peak.
The surge in global food prices has already driven 44 million people below the “extreme poverty line,” which the World Bank defines as living on just $1.25 a day.
An additional 10% increase in food prices would cause another 10 million people to fall below the poverty line, while a 30% spike would lead to 34 million more poor, according to the World Bank.
“The numbers tell a grim story of persistent, grinding pressure on the world’s poor,” said World Bank president Robert Zoellick at a press conference.
1. While the USPS does not get money directly from the US Treasury - it borrows the money at below market rates from the Treasury and (IMHO) will never pay it back. So basically the same thing.
2. Insane public union costs are driving the USPS out of business (seems to be a pattern in soon to be bankrupt government agencies/cities/towns/state/etc….).
——————
Postal workers pay “significantly” lower premiums for their health and life insurance plans than other government employees because of union agreements, according to a September study sponsored by the Office of Inspector General. The report said the postal service could save $700 million this year alone by asking employees to pay more.
Along with shifting consumer behavior, the agency is saddled with billions in unusually burdensome retiree health costs, the inspector general said. Historically, the postal service, which employs 532,800 workers, paid for retiree health benefits when they came due. But postal reform law passed by Congress in 2006 mandated the agency to plan ahead by pre-funding retiree health benefits at around $5 billion a year for 10 years starting in 2007. “No other federal agency or private sector companies have a similar burden,” Mr. Donahoe testified.
The pre-funding obligation contributed heavily to recent record losses, and has forced the postal service to borrow from the federal government to meet shortfalls, he said. The agency now owes the U.S. Treasury $12 billion, and said it expects to max out its statutory $15 billion line of credit by the year’s end.
http://online.wsj.com/article/SB10001424052748704881304576094000352599050.html?mod=WSJ_hp_LEFTTopStoriesyhoofront
The USPS, bar NONE, is the best postal system in the world.
Love it or hate it, and god knows it has its problems, there are is no other better postal system in the world that serves… the whole world.
I think they are talking about people outside of the US, in the 3rd World. Tens of millions will literally starve so that the Vampire Squid can get even richer.
Depopulation and corporate feudalism is the long term agenda.
Fun news headlines from Tucson:
Median cost dropped 21% over past year
Tucson home prices keep falling
Cue up the angst from our local REIC.
Fox unable to repay debts for renovation
A very nicely renovated theatre would be the ideal venue for all sorts of performances. But, most of the time, it sits idle.
Saguaro Ranch may yet avoid foreclosure
Then again, this high-end development may not avoid foreclosure. It’s not as if there’s a screaming demand for such developments in this low income town.
“Buyer interest has stayed high, though, as many are looking to get into the market before interest rates rise again, Hollman said.”
I dont get it, hurry up and buy before the prices drop even further?
More proof of NAR hypnosis at work on the short term thinking of Americans.
It’s really, frighteningly difficult to get this concept across to most people. And I was a (pretty good) math teacher. It’s very scary how financially illiterate people are.
So true. When I try to explain to people why we *want* high interest rates before we buy, they just stand there with a confused look on their faces.
One thing I’ve noticed during all of this is that people don’t seem to realize that prices are elastic, and will move based on other inputs. Too many people truly believe that prices “can never go down.” Even after the market collapsed, they think it was just an odd blip in the market, and they are patiently “waiting for the market to get better.”
“Fun news headlines from Tucson:”
I saw a number of Rita Ranch places on a foreclosure site the other day; some of them looked almost new.
Postage rates rising, but not for most letters
Mail rates edging up but mostly for business, not most letters sent by individuals.
WASHINGTON (AP) — Postage rates are going up starting Sunday, but the changes mostly affect businesses. Mailing that recipe to Aunt Mary or birthday card to Uncle Joe won’t cost any extra.
Among the changes, it will cost advertisers more to flood your mailbox with sales offers and publishers will face higher charges to send you their magazines.
But the basic 44-cent first-class letter rate will stay the same, even though postage overall goes up about 1.7 percent as the price of many other mailings rises.
The post office has been struggling financially as the Internet siphons off a lot of letters, bills and payments that it used to handle. And that has been complicated by the nation’s economic slump, which reduced advertising mail.
The agency lost $8.5 billion last year and the rate increases — estimated to bring in an added $340 million this fiscal year — won’t make much of a dent in that. The Postal Service is limited to increases at or below the rate of inflation. A request to exceed that was rejected by the independent Postal Regulatory Commission. The post office, which is not subsidized by taxes, is appealing that ruling, but in the meantime is instituting this increase.
A pair of changes individuals may notice are for post cards and heavier letters.
The unchanged 44-cent rate still covers the first ounce of a letter, but each additional ounce will cost 20 cents, up from 17 cents currently. Thus, that weighty letter that cost 61 cents to mail last year will now cost 64 cents.
UPSP - Still a great deal and service. Why don’t they put in those community mail box stands, like we had in our PUD’s? Also, do away with Sat delivery.It would save them some serious dough. I don’t get it. Unions?
I’m all for less junk mail to throw out. Squeeze the businesses, and leave us independents alone.
While the USPS is supposed to be self supporting, their hands are often tied. For instance, they can’t raise their rates without the gov’ts permission. Ditto with cancelling Saturday delivery.
In Colorado
Thank you. Oops, I forgot about their pseudo private status. Mental- Pause!
Saturday delivery is a waste, and those community mailboxes at the end of every street would not be the end of the world. Most folks could use the exercise.
It would save vehicle costs and reduced their workforce expense. Makes sense to me.
“Postage rates rising”
Newman.
‘Psycho’ Star Janet Leigh’s Home on Sale for $4.5M
Read more: http://entertainment.blogs.foxnews.com/2011/04/14/psycho-star-janet-leighs-home-on-sale-for-4-5m/?test=faces#ixzz1JWhuLMRo
This does seem too cheesy and is perhaps a hoax but I just got this on Ron Paul’s FB feed saying his house if for sale.
http://www.buyronpaulshouse.com/
Someone mentioned yesterday that as a percentage, Arkansas had the highest number of people living off of disability in the country. Suggesting that SS disability fraud was highest in Arkansas.
Might I offer an alternative view? Maybe the reason there are so many people on disability in Arkansas, is that Arkansas is one of the few places you can afford to live, if all you are getting is SS disability payments?
A lot of poor retirees around here move to Arkansas for the same reason. Besides, you can easily supplement your diet down there by fishing or hunting.
Interesting thought.
http://market-ticker.org/akcs-www?post=184237
Glass-Steagal (basically) reintroduced - and not a minute too soon.
In my dreams.
“Glass-Steagal (basically) reintroduced - and not a minute too soon.”
I say wait…’till the penniless mobs skewer a few suits.
More “Change Goldman Sachs Can Believe In.”
http://www.nypost.com/p/news/business/it_on_our_tWJLw3C710wXwE4kSDqeiJ
New York City taxpayers are helping to pay $850 million in Wall Street investment fees — even as these financial gurus have produced only meager results for strapped city and state pension funds.
City Comptroller John Liu this week released a comprehensive analysis of NYC pension costs over the past decade, revealing why they have risen from $1.2 billion to $7.7 billion.
Liu said one of the major factors in the shortfall was higher than expected investment and administrative fees, which were $71 million in 2005, and have risen more than four-fold to $313 million.
Nearly all of the increase was due to the pension funds shifting asset allocation in favor of private equity and real estate — chasing bigger returns — but which also have higher investment fees, he wrote.
Damn union janitors!
Oh wait…
Damn teacher’s union!
Oh wait…
Damn police and firemen’s union!
Oh wait…
Uh oh. Now who to blame?
Great find , Sammy!
The damn cafeteria workers of course! The ran the global economy off a ditch and are now oppressing and abusing wealthy people.
Glad the Fed leaders are sure inflation is no worry, as the rest of the world seems to be in an inflation panic.
As for myself, I am in a personal economic funk, having just paid roughly 50% more to fill my fuel tank than it cost only a few months ago. But no worry — gasoline is part of the volatile food and sector, and hence doesn’t count toward inflation.
Stocks poised for first weekly drop in a month
By Saikat Chatterjee
HONG KONG | Thu Apr 14, 2011 11:46pm EDT
HONG KONG (Reuters) - Asian shares were poised for their first weekly losses in a month, as investors took profits after a recent rally while a pick-up in inflationary pressures sent gold racing to yet another record high on Friday.
Financial markets braced for another round of policy tightening from Beijing, possibly as early as this weekend, after fresh data showed consumer price inflation accelerating to 5.4 percent in the year to March, the fastest since July 2008 and topping market forecasts.
Asian central banks have resorted to various measures to tighten policy with some like Singapore sanctioning an increase in the value of their currency to keep prices in check.
“The weakness in markets this week is expected after the smart comeback we have seen recently with inflationary concerns again coming to the forefront,” said Jan Lambregts, global head of financial markets research at Rabobank.
…
Asian central banks have resorted to various measures to tighten policy with some like Singapore sanctioning an increase in the value of their currency to keep prices in check.
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Wouldn’t it be wonderful if they did this here?
Ryan’s Budget Plan A ‘Shameful Attack’ on Public Workers, Union Leader Says
Proposal relies on false, misleading claims to suit partisan agenda
WASHINGTON, April 13, 2011 /PRNewswire-USNewswire/ —
House Budget Committee Chairman Paul Ryan has lost any shred of integrity by introducing a 2012 budget resolution that is full of false assumptions, misleading statements and factual errors, the head of the largest federal employee union said today.
“Congressman Ryan unfairly targets federal workers by proposing to freeze federal wages, cut the work force and drastically raise pension contributions,” American Federation of Government Employees National President John Gage said. “It’s a shameful attack on federal workers who were not the cause of this massive budget deficit and can’t be the cure.”
“While that’s bad enough, Congressman Ryan doesn’t even bother to check his facts. His budget proposal contains so many inaccurate and outright preposterous claims that it wouldn’t hold up to a middle school debate team,” Gage said.
In attempting to justify extending to five years the current freeze on federal wages and salaries, Ryan compares average federal wages to median private sector wages. Even worse, his so-called “median private sector wage” actually is a median household income figure from the Census Bureau.
“Paul Ryan isn’t just comparing apples to oranges; he’s comparing a single apple to a basket full of oranges. It’s rotten any way you slice it,” Gage said.
Ryan says he’s “applying private-sector realities” to federal employees’ pay and benefits by proposing to dramatically increase federal employees’ contributions to their pensions. What he fails to mention is that the current system is fully funded and was created by President Reagan to explicitly match private sector practice, Gage said.
Ryan also makes the nonsensical claim that cutting the number of federal workers will boost private-sector employment and specifically criticizes the increase in federal workers during the Obama administration. This despite the fact that three-fourths of that increase was in three departments – Defense, Veterans Affairs and Homeland Security – in response to national security requirements that predated President Obama’s election.
“I’d like Paul Ryan to explain to me how supporting our troops, taking care of our wounded warriors and protecting our borders is hampering private-sector job creation,” Gage said.
…
The only drawback I can see to this plan is that there will be less Rethugnican campaign contributions to kick back to the Congressman Ryans and Governor Walkers of the world.
Raise taxes on the rich to help us all
Joshua Pechthalt
San Francisco Chronicle April 14, 2011 04:00 AM
Most of us will pay our fair share of taxes on April 18 - perhaps even more than our fair share. But not everyone is ponying up. General Electric, for instance, paid no federal income tax last year on billions of dollars of profits; worse, its army of tax attorneys convinced the IRS to pay the corporation a refund.
Closer to home, the top 1 percent of California’s income earners has doubled its share of all income earned by individuals in the state, but pays a lower tax rate than before.
Yet, when Congress extended Bush’s tax cuts for the rich in December, it handed California’s wealthiest 1 percent a $9 billion tax windfall - equal to half this year’s state budget deficit.
It’s time to rethink taxes. The law that governs how we set taxes in California is not only broken, it’s breaking the state.
A couple of weeks ago, Gov. Jerry Brown announced that his budget negotiations with Republican legislators had failed. Apparently their “no new taxes” pledge has morphed into “no old taxes, either.”
It might come as a shock to these legislators to learn that a new public opinion poll shows that their own rank-and-file party members disagree with their rigid stance.
According to a statewide survey last month of likely voters sponsored by the California Federation of Teachers, more than three-quarters of those polled - 78 percent - would support a 1 percent additional tax on the top 1 percent income bracket, people who make more than $500,000 per year, rather than see further cuts to schools, public safety and other vital services. A 1 percent tax on the top 1 percent of earners would raise $2.5 billion.
The idea resonates with all geographic areas of the state, age groups, ethnicities and political persuasions. Sixty percent of Republicans support such a tax. Although not tested in this poll, recent polling shows significant support even among the rich for higher taxes.
…
Goldman Sachs Charges Up to Justice Department, Levin Says
By Clea Benson - Apr 14, 2011 3:13 PM PT
The U.S. Justice Department and regulators will have to determine whether employees and executives of Goldman Sachs Group Inc. (GS) violated any laws when they traded securities tied to the housing market and testified to Congress about the transactions, Senator Carl Levin said.
The Michigan Democrat, who released the findings of a two- year inquiry into the 2008 financial crisis yesterday, said today in an interview with Bloomberg Television’s “Street Smart with Carol Massar and Matt Miller” that he wanted to send the report to federal prosecutors and the Securities and Exchange Commission. Lawmakers don’t have the authority to declare whether the activities were illegal, he said.
“That is not for Congress to determine whether or not a crime was committed or whether or not he violated the security laws,” Levin said, referring to Goldman Sachs Chief Executive Officer Lloyd Blankfein. “That is for the Justice Department and that is for the SEC to make those determinations.”
…
Reading about how this San Diego real estate gambler is about to lose millions of dollars brings some late night cheer to my heart.
Ben and others who have participated in our occasional San Diego HBB gatherings know exactly where Carlsbad is located. Maybe next time we should have a close look at this house, assuming it is still on the market by then (and I have no reason to doubt that it will be…). Some of you may have seen my post from a day or so back showing the highest value San Diego home sales last month; none of them was for over $5m.
HOME FRONT
APRIL 15, 2011
A Wealthy Gambler’s House Bet
Big-time better Billy Walters asks $29 million for his Carlsbad, Calif., home
By CANDACE JACKSON
Carlsbad, Calif.
As a professional gambler,Billy Walters built his fortune winning at a game few have mastered: the high-stakes, high-risk world of multimillion-dollar sports betting. In a good year, he can rake in as much as $15 million from gambling, and he claims he’s never had a losing year.
But when it comes to residential real estate, Mr. Walters, 64, claimed his track record has been far less lucrative. “We’ve lost money on every home we’ve bought and sold here,” he said. “It’s not what I do for a living. If it was, I’d be in trouble.”
He said that he’s likely to continue his losing streak, recently listing his Carlsbad home—one of seven he owns with his wife, Susan—for $29 million, a bit less than he spent assembling it. Situated on a quiet surfing beach, it’s one of eight homes the couple has owned in the area over the years. The couple said they’re selling partly because Susan, who oversees interior design for all their homes, is ready for a new project.
…
I believe Jim Klinge had a post about that house a while ago.
BTW…$15MM/year from betting on sports?????