The Housing Bubble

Last night while listening to the news it was reported that Cuomo will ask if NY victims of Hurricane Irene flooding will be allowed to stay in foreclosures.

Glad to help them out but how convenient for keeping that long lost NY shadow inventory off the books for years longer.

Builders Likely Started Fewer U.S. Houses
By Alex Kowalski - Sep 20, 2011 (Source: Bloomberg)

Builders probably began work on fewer homes in August, highlighting an industry that’s languishing more than two years into the U.S. economic recovery, economists said before a report today.

Housing starts fell 2.3 percent to a three-month low 590,000 annual rate, according to the median estimate of 78 economists surveyed by Bloomberg News. Building permits, a proxy for future construction, may have also dropped for a second month.

Foreclosures, declining prices and a lack of employment are hindering construction and holding back an industry that’s typically helped spark economic rebounds from past recessions. Tighter lending standards and reductions in homeowner equity mean fewer buyers are able to take advantage of mortgage rates at record lows.

“We have more homes than people need to live in,” John Ryding, chief economist at RDQ Economics LLC in New York, said in a Sept. 16 interview on Bloomberg Television. “Housing is going to be pretty depressed in terms of building activity and pretty flat in terms of prices until that market clears.”

The Commerce Department’s report is due at 8:30 a.m. in Washington. Survey estimates ranged from 570,000 to 634,000.

Permits decreased to a 590,000 annual pace from a 601,000 rate, according to the survey median.

Concern over housing and this year’s growth slowdown economy may prompt Federal Reserve policy makers to propose new measures to galvanize the economy when they begin their two-day meeting later today.

Bernanke’s View

Fed Chairman Ben S. Bernanke warned last month during a speech in Jackson Hole, Wyoming, that the central bank alone can’t lift sagging home prices or mitigate a wave of home foreclosures.

The second home market.

This home is in/near the Adirondack park which means prohibitively far away from most jobs/culture especially since it’s located w/in the snow belt. $550k probably seemed like a deal when he built it.

http://cnyhomes.com/Listing/Search/info.cgi?mlnum=S260673

Almost makes you wish your house was in foreclosure! Free rent!

BTW, what happened to Professor Bear, AKA Get Stucco? Haven’t seen him around in a while. Did I miss something?

Another day, another downgrade

http://www.forbes.com/feeds/ap/2011/09/20/general-eu-italy-financial-crisis_8689415.html

Italy criticized Standard & Poor’s on Tuesday for downgrading its credit rating, saying the decision seemed politically motivated and out of touch with reality at a time when the government was working to boost growth and reduce its debts.

Realtors Are Liars®

Amid uncertainty, three sure things on tax plan
By Linda Stern
NEW YORK | Mon Sep 19, 2011 7:16pm EDT
…
3-Get a better mortgage, especially on your second home.

There are several reasons why people who own second homes with mortgages on them may choose to refinance now: (1) Mortgage rates are at record lows, according to Bankrate.com; (2) if Congress does limit deductions for high bracket folks that would reduce the value of their mortgage deductions and (3) there’s been a fair amount of talk in Washington of eliminating that mortgage write off altogether for second homes.

That means that homeowners who have significant amounts of equity might consider borrowing enough on their primary residence to pay off their second home loan. (That may not even work, if the rules are revised to eliminate the deductibility of interest for cash-out refinancings, which that would effectively be.)

Refinancing when mortgages rates are at their lows could help homeowners who live close to the edge: If you’re worried about being able to afford your mortgage without a mortgage interest tax deduction, getting a new, long and cheap loan could help keep your payments low.

The NAR propaganda machine is running in overdrive now.

Real estate values under attack from Congress

Q&A talks residential real estate with Ron Phipps, president of the National Association of Realtors.

Q: The National Association of Realtors (NAR) recently brought its Home Ownership Matters bus to Plainville. What is the impetus behind Home QA_Phipps_WEBOwnership Matters? What are you hoping to accomplish with this nationwide tour?

A: Americans today are debating what home ownership means to their families, communities and the nation as a whole. We want to engage in that dialogue directly with people in their own communities.

Q: When the tour came to town, there was discussion about how the mortgage interest deduction benefits Connecticut homeowners, who took an average of more than $12,000 in deductions last year, and how some public policymakers are proposing to reduce or eliminate it. Who is proposing to reduce this deduction and what are the thoughts behind it?

A: Late last year, the Deficit Reduction Commission recommended limiting the deduction to principal residences and eliminating the MID credit for second homes, among other things, and as Congress looks for ways to reduce the debt, the MID may seem like an easy target. But our country’s support of homeownership did not start yesterday. Throughout most of its history, the U.S. has encouraged homeownership because it contributes to stable communities, supports our nation’s economy, and helps families build wealth — and for many of those families, owning a home means gaining a foothold into the middle class. And it’s ridiculous to say that the MID is suddenly part of the deficit problem — the deduction has been part of the federal tax code for nearly 100 years. There’s no question we’re dealing with difficult issues when it comes to the future of our nation’s economy, but in the process, we must not lose sight of the values that helped make our country strong in the first place. We believe the mortgage interest deduction must not be targeted for change.
…

Home ownership is now “under attack,” because renters who choose to not own a home will no longer be strong-armed into forking over as much money as before to help pay for other peoples’ mortgages.

The NAR sez it, so it must be so.

News - Today’s News
Sunday, Sep. 18, 2011
Touring realtors make stop in S.C. to spread message
By Roddy Burris - McClatchy Newspapers

Realtors are up in arms about prospective changes in mortgage interest deduction and federal loan limits they say could have a dramatic impact on homeowners and future home buyers in South Carolina and across the country. State and national Realtor association members are making a nationwide bus tour to alert the public to the proposed changes and urge them to contact their lawmakers. The bus tour arrives in Columbia today and Nick Kremydas, South Carolina Association of Realtors executive director, outlined some of the issues for The State.

What do Realtors want to accomplish with the bus tour?

As policymakers consider changes to government programs and incentives that could dramatically change the nature of home ownership in this country, the Home Ownership Matters Bus tour is bringing these issues directly to people across the United States, and asking them to join in protecting the American dream of home ownership.

Home ownership is under attack, and we want to make sure that people understand what’s at stake. Whether you own a home today or want to own a home someday, it’s important to engage on these issues right now. With this bus tour, Realtors hope to give people the opportunity and the resources to make their voices heard.
…
County breakdown

County Current FHA loan limit Limit as of 10/1/2011 Difference
Beaufort $387,500 $346,150 ($41,350)
Berkeley $335,000 $302,450 ($32,550)
Charleston $335,000 $302,450 ($32,550)
Dorchester $335,000 $302,450 ($32,550)
Georgetown $395,000 $327,750 ($67,250)
Greenville $295,000 $271,050 ($23,950)
Horry $286,250 $271,050 ($15,200)
Jasper $387,500 $346,150 ($41,350)
Laurens $295,000 $271,050 ($23,950)
Pickens $295,000 $271,050 ($23,950)
York $303,750 $271,050 ($32,700)

Even the AP is not buying it…

————————-

FACT CHECK: Are Rich Taxed Less Than Secretaries?
AP via Yahoo News ^ | 20 Sept 2011 | Stephen Olemacher

WASHINGTON (AP) — President Barack Obama makes it sound as if there are millionaires all over America paying taxes at lower rates than their secretaries.

“Middle-class families shouldn’t pay higher taxes than millionaires and billionaires,” Obama said Monday. “That’s pretty straightforward. It’s hard to argue against that.”

The data tell a different story. On average, the wealthiest people in America pay a lot more taxes than the middle class or the poor, according to private and government data. They pay at a higher rate, and as a group, they contribute a much larger share of the overall taxes collected by the federal government.

This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes and payroll taxes, according to the Tax Policy Center, a Washington think tank.

Households making between $50,000 and $75,000 will pay 15 percent of their income in federal taxes.

Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent.

Fannie and Freddie’s Boss Speaks Out On Obama’s Refi Plan
(DeMarco states his job is to protect the taxpayer.)

http://www.cnbc.com/id/44580914?__source=RSS*blog*&par=RSS

Sept. 20, 2011, 12:01 a.m. EDT
Short the euro, and make a buck
Commentary: ‘European Union’ is an oxymoron
By David Weidner, MarketWatch

NEW YORK (MarketWatch) — This column doesn’t usually give investing advice unless it’s some kind of smart-alecky rant against gold.

Read Writing on the Wall column from April: Buy gold.

But sometimes an investment is such an obvious winner that not even a dummy can pass. That’s why you should short the euro. It’s easy money.

For more than two years, the European Union has been wrangling with Greece’s sovereign-debt problems. And if you thought the U.S. government’s response to our financial crisis was bad, the EU is making Timothy Geithner look downright competent.

There have been lukewarm agreements, deals with the International Monetary Fund and its ladies’-man former chief. There have been global summits, international pressure and rescue packages. But none of this has done much to alleviate the crisis. They’ve bought time, sure, but there’s just been time to fight.

Of course, we know that the Greece debt problem isn’t about Greece at all. It’s about the German and French banks that hold the bonds. And it’s not even about the Grecian bonds but Spanish, Portuguese and Italian bonds, too.

For the moment, however, let’s limit this to Greece.

French and German banks have $90.7 billion in exposure to that country’s sovereign debt. To make matters worse, Italian and Portuguese banks have a combined $11.4 billion in exposure, according to the Bank of International Settlements.

Now, let’s consider Portugal. Weakling Spain has nearly $85 billion in bank and nonbank exposure to its Iberian neighbor. Germany has close to $40 billion in exposure and France nearly $30 billion, according to the BIS.

Finally, Spain’s debt is as manageable as a running of the bulls in an elevator. Here, Germany holds $180 billion; France, $140 billion; and even the United States, close to $50 billion — with $19.5 billion of that on bank balance sheets.

This should not only make you feel better about the U.S. bank bailouts — the majority of which have been repaid — but about your own credit-card debt.
…

IMF sharply downgrades its outlook for US and European economies through next year.

WASHINGTON (AP) — The International Monetary Fund has sharply downgraded its outlook for the U.S. economy through 2012 because of weak growth and concern that Europe won’t be able to solve its debt crisis.

The international lending organization expects the U.S. economy to grow just 1.5 percent this year and 1.8 percent in 2012. That’s down from its June forecast of 2.5 percent in 2011 and 2.7 percent next year.

The IMF has also lowered its outlook for the 17 countries that use the euro. It predicts 1.6 percent growth this year and 1.1 percent next year, down from its June projections of 2 percent and 1.7 percent, respectively.

The gloomier forecast for Europe is based on worries that Greece will default on its debt and destabilize the region.

“Fear of the unknown is high,” said Olivier Blanchard, the IMF’s chief economist. “Strong policies are urgently needed to improve the outlook and reduce the risks.”

Overall, the IMF predicts global growth of 4 percent for both years. Stronger growth in China, India, Brazil and other developing countries should offset weaker output in the United States and Europe.

The U.S. economy grew at an annual rate of just 0.7 percent in the first six months of the year. And the U.S. unemployment rate has stayed above 9 percent for all but two months since the recession officially ended two years ago.

August home building fell 5 pct., slide continues
Construction is less than half the level that economists say is needed for a healthy economy.

WASHINGTON (AP) — Builders broke ground on fewer homes in August, a reminder that the housing market remains depressed.

The Commerce Department said Tuesday that builders began work on a seasonally adjusted 571,000 homes last month, a 5 percent decline from July. That’s less than half the 1.2 million that economists say is consistent with healthy housing markets.

Single-family homes, which represent roughly two-thirds of home construction, fell 1.4 percent. Apartment building plunged 12.4 percent. Building permits, a gauge of future construction, rose 3.2 percent.

Hurricane Irene also slowed construction in the Northeast.

Overall, homebuilding fell to its lowest levels in 50 years in 2009, when builders began work on just 554,000 homes. Last year was not much better.

The California jobless rate will not go down until the following happens:

1. They throw out most illegals
2. They become a right to work state (especially with public unions)
3. They reduce tax rates and regulations

——————–

California jobless rate to remain stuck at 12% — UCLA
Orange County Register (CA) | September 20, 2011 | Mary Ann Milbourn

California’s unemployment rate, which had been coming down earlier this year, is now expected to remain at 12% through 2012, according to UCLA’s quarterly economic forecast released today.

And things won’t improve much from there.

“Employment growth in 2011 and 2012 will push unemployment down marginally,” wrote UCLA senior economist Jerry Nickelsburg. “Therefore, we do not expect it to reach single digits until 2014.”

UCLA economists do not believe the country is in a recession now — and don’t anticipate a double dip. But the reason isn’t very encouraging.

Senior economist David Shulman argues basically that the economy is so far down, it can’t really fall that much more.

“Simply put, the three sectors that would normally put the economy into recession are already depressed — housing, consumer durables and inventories,” he wrote. “Even if housing starts drop to new lows, this sector of the economy has shriveled so much that it would only have a modest impact on economic activity.”

I saw data yesterday on the “10 best states to be a realtor,” based on dividing the number of existing home sales by the number of NAR realtors.

The numbers surprised me. With the exception of a high number in Alaska, the top states were all less than 10. Mostly 8 or 9. Which means the other states are even less.

Too many realtors, not enough sales.

Milton Call Center Will Close By December

Tata Business Solutions in Milton will close by the end of the year putting more than 180 people out of work.

MILTON, Florida –

Tata Business Solutions gave Milton Mayor Guy Thompson the bad news last week. The India-based company, which provides web/internet support for travel-related companies, told the mayor it was shutting down its Milton call center.

182 people will be laid off by the end of the year.

Mayor Thompson says Tata recently lost two key contracts and will lay-off 251 U-S employees…the majority of them in Milton.

Mayor Thompson says Tata is one of Milton’s largest employers. He says the layoffs could be a disaster for Milton and the surrounding area.

Layoffs at Tata could be as early as November 15th.

Florida firm offers free AK-47s to new customers

CHICAGO (MarketWatch) — Retail merchant account provider MerchantService.com will give a voucher good for a free AK-47 assault rifle to new customers, depending on the amount of business they do. The company, which provides credit-card-processing services to businesses, announced the promotion as part of its “”No Merchant Victims” campaign that is designed to “encourage merchants to stand their ground and protect themselves,” MerchantService.com said. The voucher, worth up to $750 “can be used at any reputable gun shop where [the user] must go through the proper background checks and waiting period that the law requires,” said Gino Kauzlarich, president of Sarasota, Fla.-based MerchantService.com, on the company’s website.

When yuppies attack…or…daddy must’ve have forgotten to send the check

(Sun Times) A River North neighborhood bank branch was robbed this morning by a young woman reportedly wearing dark clothing, a baseball cap and sunglasses. The blond-haired woman, believed to be in her mid- to late-20s, had blond hair and a pony tail. She was wearing tight blue jeans or black pants, white gym shoes, and a baseball cap, according to unconfirmed dispatch reports.

Just before 9 a.m., the woman entered the bank in the 600 block of North Dearborn Street, presented a teller with a note demanding money and implied she had a weapon, police News Affairs Officer John Mirabelli said.

There have been at least 60 bank robberies this year in the Chicago area, according to the FBI.

American taxpayers could be forced to foot the bill if Fed’s bailout of faltering Eurozone turns sour. By Daily Mail Reporter

American taxpayers could end up footing the bill if the United States’ bailout of the faltering Eurozone turns sour.

At present, U.S. citizens are fairly well protected, but if the crisis continues to grow and America takes on a greater role, risk to consumers and taxpayers in the country will increase, according to economists.

The biggest exposure could come from America’s status as the single largest source of money for the International Monetary Fund.
Timothy Geithner arrived at the Eurogroup meeting during Informal Economic and Financial Affairs Council (ECOFIN) in Wroclaw Poland today and encouraged the U.S. and Eurozone to work together

An emergency provision, approved by the Group of 20 industrialised nations in 2009, granted the IMF broad powers to expand its lending authority, meaning American taxpayers could be left on the hook if those loans later go bad.

The latest round of American financial assistance came on Thursday the Federal Reserve promising to swap as many dollars for euros as were needed by European bankers.

The Fed joined the European central bank, the Bank of England, the Bank of Japan and the Swiss National bank in their bids to lend funds over the next three months to dig Europe out of its financial crisis.

In the immediate term, the Fed transactions will not have much impact because the central banks are simply swapping currencies of equal value in a bid to spare the global economy from another recession.

But over the long term, consumers could feel the impact of central bankers flooding the financial system with cash, according to John Ryding, chief economist at RDQ Economics.

‘This is a lender of last resort function,’ he told CNBC. ‘With the dollar injections that the Fed has done, it’s like giving a patient medicine with really bad side effects.’

Mr Ryding said the bad side effect in the U.S. has been inflation, which has picked up to 3.8 per cent year over year.

Fed policy makers meet next week to decide whether the flagging U.S. economy needs another round of easy-money measures that could include buying more Treasury bonds to push more cash into the financial system.

The idea of the U.S. underwriting a broader bailout of the European financial system has not been publicly floated to date. But Senate Republicans have already voiced serious worries over such a move in future.

Looks like Megabank, Inc may be throwing in the towel on the hoped-for but ever-delayed California economic recovery.

San Diego default filings surge in August
The month-to-month increase was largely due to two major banks

SAN DIEGO COUNTY — The number of default notices, the first step in the foreclosure process, ballooned in August, largely due to activity from Bank of New York Mellon and Bank of America, figures from La Jolla-based DataQuick show.

Bank of New York Mellon filings in San Diego County increased from 76 in July to 403 in August, or 430 percent. Meanwhile, Bank of America pushed through more than two times as many defaults during that same time period.

The two lenders, known as beneficiaries in public records, accounted for the bulk of the county’s most recent month-to-month increase. Notices rose from 1,274 in July to 2,094 in August, or 64.4 percent. That’s the largest month-to-month percentage increase since December 2008.

Similar jumps were evident throughout the state, including Los Angeles and Orange counties.

“It appears they’re working through their backlogs of delinquent loans,” said DataQuick analyst Andrew LePage. “But why and why all of a sudden. It’s not clear.”
…

Carlstadt maker of computerized dental imaging equipment to close
September 20, 2011 BY HUGH R. MORLEY The Record N.J.

The owner of Cadent Inc., which provides digital imaging services and equipment for dentists, says it will shut its Carlstadt plant, lay off 119 people and move the work to Costa Rica and Mexico.

The closing is part of a consolidation of work done at the plant as a result of the company’s acquisition by San Jose, Calif.-based Align Technology Inc., a company statement said.

The transition will begin in the fourth quarter of this year, and the plant will close in the third quarter of 2012, the statement said.

Layoffs will take place in September 2012, according to a letter filed with the New Jersey Department of Labor and Workforce Development, as required by the federal WARN Act. The jobs lost will include orthodontists, supervisors and customer service workers.

“Many valued employees will be impacted,” said Thomas M. Prescott, president and CEO of Align Technology, in a statement. “These actions, while difficult, are necessary to create the most streamlined service for customers and optimize efficiency across the business.”

Align said it plans to consolidate its computer-aided design and manufacture, and scanner customer care operations in a plant in San Jose, Costa Rica.

Some computer-aided design and manufacture services and scanner distribution and repair work will go to Juarez, Mexico. Accounting and finance functions will go to Align’s corporate headquarters in San Jose, Calif.

Otis Elevator expected to close S. Ind. plant
Indiana news AP

September 20, 2011 (BLOOMINGTON, Ind.) — City officials in southern Indiana say it appears an Otis Elevator plant with about 200 workers will be closing next year.

The company hasn’t yet made an announcement about its Bloomington site, but Mayor Mark Kruzan (kroo-ZAN’) says indications are it will be shut down by late 2012.

Otis announced Friday that it had selected Florence, S.C., as the location for a new manufacturing center to build its new designs starting next year.

Bloomington Economic Development Corp. president Ron Walker tells The Herald-Times that his office tried to talk with Otis management about the new facility, but wasn’t given a chance to make a bid for it.

Otis had nearly 1,200 Bloomington workers in 1989 but has since shifted much of its elevator assembly work to China and Mexico.

NYC Dept. of Education May Layoff 800 School Aides

PROSPECT HEIGHTS (WPIX)—
Union members gathered outside M.S. 571 in Prospect Heights on Tuesday to rally against potential school layoffs.

Members of Local 372 said they believe Department of Education officials are preparing pink slips and layoff notices for nearly 800 school aides and parent coordinators.

They said, based on what they were told, most of the job losses would be felt in Central Brooklyn, Upper Manhattan and the South Bronx — communities already in need of better social services and suffering from higher unemployment rates.

Union members said over the past three years, over 2,200 valuable service members have been laid off from local schools.

NYT layoffs about to rise again w BOA 40k and Post office 120k etc.

quote

Employers are likely to target the employees who are more junior, as they usually do,” said Daniel S. Hamermesh, an economics professor at the University of Texas, Austin. “If you’ve already exhausted your benefits for that benefit year — and Congress has said they want to shorten the duration of benefits — you’re up the creek. That’s one of the most severe worries about all this.”

Quick survey - What will people who have burnt through unemployment and savings do to survive? What will they do to feed their families?

Here’s to Hope we continue to Change

heheeeheeeheehaahaaahaaheeehaahaaa… (Hwy50™)

(Before just 1.69 million square-foot roof just absorbin’ heat in that there tarrr, now makin’ juice for the ice-blender)

O.C. investor leases largest solar roof
September 20th, 2011, by Jon Lansner / OC Register

Dexus Property Group from Newport Beach has found a way to extend the value of a warehouse in Perris it controls: leasing the roof for solar panels.

Construction on the solar station should start late this year with electricity flowing in 2012.

For about 20% of Americans, God is the invisible hand of the free market.

“About one in five Americans combine a view of God as actively engaged in daily workings of the world with an economic conservative view that opposes government regulation and champions the free market as a matter of faith.

“When Rick Perry or Michele Bachmann say ‘God blesses us, God watches us, God helps us,’ religious conservatives get the shorthand. They see ‘government’ as a profane object — a word that is used to signal working against God’s plan for the United States. To argue against this is to argue with their religion.”

http://www.usatoday.com/money/economy/story/2011-09-20/god-economy/50470304/1

People who believe like this have a lot in common with Muslim fundamentalists. They see the US government as the great Satan. No wonder they want to bring it down. And yet they seem to support the US military.

-This should really fire up the Greek-Goons!

ITEM: Greece vows to cut state jobs before lenders phone call

ATHENS (Reuters) - Greece promised further cuts to its bloated public sector on Tuesday before a second conference call with its international lenders, whom Athens must persuade to extend more loans to avoid bankruptcy next month.

Anger over austerity among ordinary Greeks is matched by bail-out fatigue among north European creditor countries, especially Germany, Finland and the Netherlands, which are taking the toughest line on strict conditions for more money.

Protests against cuts have dwindled since early this year when the Greek capital saw bloody clashes between police and rioters, but frustration is growing again as the crisis worsens.

“They have crippled us,” said 44-year-old public sector employee Niki Playannakou, a single mother.

“We accepted the cuts last year, we put up with some things for the sake of the country. But as time goes by we don’t see things improving. How much can a family take?”

The European Union and International Monetary Fund are losing patience and increasing pressure on Athens to deliver on pledges to slash its deficit even as the economy heads toward a fourth year of recession.

“Our primary target is to shrink the state,” deputy government spokesman Angelos Tolkas said on NET radio. “The Greek state budget has stopped paying the wages of some 200,000 civil servants in the last two years. And we are continuing.”

The IMF has told Athens to cut the public sector workforce and payroll, shut inefficient state entities and fight tax evasion. The government has cut public sector pay and pensions but so far balked at sacking more civil servants, a key component of the governing Socialist party’s electorate.

Romney, it seems, has not lost all hope–he makes several recommendations for President Obama to deal with the situation he’s helped create. “In his speech to the U.N. this week, President Obama must unequivocally reaffirm the United States’ commitment to the security of Israel and its continued existence as a Jewish state,” Romney said. “And he must make clear that if the Palestinian Authority succeeds in gaining any type of U.N. recognition, the United States will cut foreign assistance to the Palestinians, as well as re-evaluate its funding of U.N. programs and its relationship with any nation voting in favor of recognition. Actions that compromise the interests of the United States, our allies, and all those who desire a lasting peace must have consequences…ROMNEY FOR PRESIDENT !!!!

What will it take to see an increase in interest rates? This is what I am concerned about.

U.S. says China’s tariffs on chicken threaten 300,000 jobs
By Sean Gardner, for USA TODAY

WASHINGTON (AP) – The United States says China violated international trade rules when it imposed tariffs on about $1 billion of U.S. chicken exports and has filed a complaint with the World Trade Organization.

U.S. Trade Representative Ron Kirk says the tariffs threaten 300,000 jobs in the U.S. poultry industry. The tariffs ranged from 50% to 100%, a U.S. trade official said.

That means some Chinese importers paid as much as twice the price for U.S. chicken.

The case is one of several that U.S. trade officials have filed against China this year at the WTO. The United States has also filed complaints about Chinese duties on steel products and its subsidies of wind power equipment.

It generally takes 12 to 18 months for the WTO to resolve a trade dispute.

someone mentioned Realitors (sp) doing pole dancing and
being clowns at birthday parties to make extra income.

I could only picture large, hairy, trucker-type guys doing pole dancing
and painted,helmet hair urbanite(sp) witches being clowns at a kids party.

I am waiting for the lowly sheep to rise up and trample the ignorant bankers, gov. officials and turkey butts in general, of course I would probably die from holding my breath.

I like Hwy50 in a 49 Dodge’s opinions, I don’t drink coffee around the keyboard anymore.

Assume you mean USA here?

-When bank “assets” are marked to market.
-When municipal and union pension funds begin to default big time.
-When inflation reduces the redeemable value to zilch and treasury announces they will be paying negative returns.

Right now it’s just a balancing act between short and medium-term bonds– tweaking the interest rates and holding out on the hope that everything will “return to normal” before they come due.

The threat of Greek default has sent tons of off-shore money back into the stock market. Spain, Italy, et al promise to bump that transfer up even more. How long do you think Wall Street is going to just let it sit there without siphoning it off?

Regarding friends and family that are goons, I failed to mention that Mrs. RAL herself is a goon. And guess….. Mrs. RAL is the most egregious type of goon. A STATE GOON!

g00ny-g00-g00

How does this dire global (& U.S.) economic outlook stack up against the theory that real estate always goes up?

20 September 2011 Last updated at 11:13 ET
Economy enters ‘dangerous phase’

Oliver Blanchard, director of research at the IMF, says economic recovery has “weakened sharply”

The global economy has entered a “dangerous new phase” of sharply lower growth, according to the International Monetary Fund (IMF).

The organisation warned that continuing political and economic woes in the US and eurozone could force them back into recession.

The IMF says the prognosis for economies in the developed world is “weak and bumpy expansion”.

It predicts their GDP will expand “at an anaemic pace of 1.5% in 2011″.

The IMF believes global growth will shrink to 4% in 2012, from 5% last year, on factors such as “major financial turbulence in the eurozone”.

It slashed its growth projections for the 17-nation eurozone to 1.6% in 2011, down from 2% predicted in June. Next year growth will be 1.1%, down from 1.7%, it forecast.

The US - the world’s largest economy - is likely to have weak growth “for years to come”.
…

LET’S… GET…errrrRRRRREADDYYYY to RUUUUUMMBLE!!!!!

“Rick Scott, GOP to consider taking courts out of foreclosure process

TALLAHASSEE — The push is on in Florida to cut the courts out of the foreclosure process. Supporters of the concept — which is used in nearly 30 states — say it will speed foreclosures, get houses back onto the real estate market and boost the economy.”

http://www.tampabay.com/news/business/realestate/rick-scott-gop-to-consider-taking-courts-out-of-foreclosure-process/1192603

I guess I am not buying. The house I wanted was an ugly REO at $104k, trashed, they have 6 all cash offers over asking per the Realturd.

The $300k stuff is where the value is after spending the day looking. Bigger lots, mature landscaping, nice bones, good location. The cheap cr@p will can not be re-habbed to that no matter what you do.

Is ‘intentional foreclosure’ ethical?
By Steve McLinden • Bankrate.com

Dear Steve,
I bought a home two years ago that’s now worth $120,000 less than I paid for it. Ouch! What’s more, the bank won’t touch a refinance. But I do have about $80,000 in savings. If I used it for a down payment to buy another home, then let the other go into foreclosure, could the bank come after the equity in the more recently bought home? Yes, it’s a shady thing to do, but I feel it’s my only option.
–Stephen K.

Dear Stephen,
I have been besieged with similar questions. First, it’s unlikely but not impossible that the bank would go after your equity in such a scenario. That said, I can’t in good conscience just say go ahead and arrange such an “intentional foreclosure,” even as the practice becomes increasingly common, particularly in parts of the country that saw huge artificial run-ups in home values earlier this decade.

The first effort on the part of borrowers should always be to seek loan remediation agreements with their lenders/servicers. However, based on media and trade reports, there have been relatively few good outcomes from attempting to do this. The reality is that there are tens of thousands of people out there in similarly challenging situations who are watching as homes just like theirs sell for far less than what they still owe.

I must note that there’s no absolute guarantee in most states that a buyer can just buy another house and walk away unscathed from the other one, aside from absorbing that big, ugly credit splotch, of course. That’s because states often give lenders latitude to sue borrowers in such cases.

However, such “recourse” practices are seldom employed these days because of the expense and the fact that people in these upside-down situations typically have little nonhousing wealth to pursue. Ironically, some credit experts say it will be faster and easier to re-earn a decent credit score after a foreclosure than after a bankruptcy — especially if you have established a new mortgage in the interim.

There are numerous blogs dedicated to the practice that you’re considering and some businesses, such as San Diego-based You Walk Away. Opponents to your strategy have called this “underhanded,” “cheating,” “unethical” and say that agents who facilitate this practice are just coaching people into bigger mistakes. Others say it’s the only way for some people to emerge as homeowners out of this mess.

Hopefully, there’s an important history lesson here for an industry that aggressively marketed so many risky low-down-payment or 100-percent loans with ARMs attached and a government that at least tacitly encouraged them. It’s actually an old lesson: The less skin you have in the game, the easier it is to walk away from the table.

If you do proceed, you would be wise to spend a little of that $80,000 nest egg on a legal representative to review your loan documents to determine if you will be on the hook for anything.

Read more: Is intentional foreclosure ethical? http://www.bankrate.com/finance/real-estate/is-intentional-foreclosure-ethical.aspx#ixzz1YUIbPMUF

TV Preview: Hank Stuever reviews WEtv’s reality show ‘Downsized’

By Hank Stuever
Washington Post Staff Writer
Saturday, November 6, 2010

It’s taken some time, but the Great Recession has at last produced a commendable reality show about the tug of shame and recompense that accompanies foreclosure, bankruptcy, underemployment, and the half-truths we tell ourselves about the economy and our personal values.

The show is WEtv’s arresting “Downsized,” which premieres Saturday night. It follows one family through money woes but also, bit by bit, chronicles the depressing loss of their middle-classdom. By no means a pure documentary, “Downsized” often feels as if Dorothea Lange had turned her lens on a downtrodden Brady Bunch: There’s a tender and no-nonsense tenor to it, which is a welcome switch from most of reality TV’s junky tropes. And since Saturday night on cable has curiously become a time in which we can communally fret about finances (a la “The Suze Orman Show” and “Til Debt Do Us Part”) “Downsized” also offers the viewer a smidge of hard-knocks catharsis.

Here is the Bruce family of Anthem, Ariz. — a Phoenix exurb — already well-wedged between their stucco-covered rock and a hard place: The 40-year-old husband, Todd, is a prideful, barrel-chested housing contractor who went belly-up in the real-estate mess. His business fell from what he says was an annual revenue of $1.5 million to zero. Hoping for a turnaround, he went bankrupt using his credit cards to meet his employees’ payroll.

His wife of five years, Laura, also 40, teaches first grade in a public school, earning $39,300 a year. Between them, Todd and Laura have seven children from their previous marriages, all of whom are among the most expensive kind of people in the world: American tweens and teens. They live together under one Spanish-tile roof — a 2,800 square-foot rental house that costs $1,700 a month. (The Bruces lost their much larger house to foreclosure in 2009, as well as a condo Todd bought as an investment property at the height of the market. With those losses went a host of luxuries — golfing, vacations, mall binges and some, but not all, of the usual array of electronica.)

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/05/AR2010110503763.html -

Downsized’ Renewed For A Second Season By WE TV For Summer …
4 Jan 2011 … WE TV RENEWS ORIGINAL SERIES “DOWNSIZED” FOR A … show three stars and Rachel Ray called it, “The most real reality show out there. …

10 Financial Lessons for Parents from ‘Downsized’ - DailyFinance
16 Aug 2011 … Downsized Tuesday’s season premiere of the reality show “Downsized” (We TV, 9 p.m., 8 p.m. CDT) reintroduces the Bruce-Rumsey clan of …
http://www.dailyfinance.com/2011/08/16/10-financial-lessons-for-parents-from-downsized/ - 113k - Cached - Similar pages

Tuesday’s season premiere of the reality show “Downsized” (We TV, 9 p.m., 8 p.m. CDT) reintroduces the Bruce-Rumsey clan of suburbanites turned dumpster divers. After getting sucked down the recession’s spiral, they’re clawing back up to rejoin the middle class.

When we met the family members on the show last year, they had two homes in foreclosure and a construction business on life support. The second season begins with the blended family of nine having a total of $18,000 in the bank. Everybody has a job, too.

WRAPUP 3-U.S. housing starts drop underscores economic woes
Tue Sep 20, 2011 2:56pm EDT

* Aug housing starts fall 5 pct to 571,000

* Decline in starts largest since April

* Permits rise 3.2 pct to 620,000, highest since Dec (Adds IMF on recession risks, background)

By Jason Lange

WASHINGTON, Sept 20 (Reuters) - New construction of U.S. homes fell more than expected in August, dragging on economic growth and keeping pressure on President Barack Obama to do more to help the sputtering economy.

Housing starts dropped 5 percent, the most since April, to a seasonally adjusted annual rate of 571,000 units, the Commerce Department said on Tuesday.

Economists polled by Reuters had forecast groundbreaking activity would fall to only a 590,000-unit rate in August. Housing starts are at less than a third of their peak during the housing boom.

“The housing market is not only bad, but still missing low expectations,” said Sal Catrini, a managing director for equities at Cantor Fitzgerald & Co in New York.
…

WRAPUP 3-U.S. housing starts drop underscores economic woes

Tue Sep 20, 2011 2:56pm EDT

* Aug housing starts fall 5 pct to 571,000

* Decline in starts largest since April

* Permits rise 3.2 pct to 620,000, highest since Dec (Adds IMF on recession risks, background)

By Jason Lange

WASHINGTON, Sept 20 (Reuters) - New construction of U.S. homes fell more than expected in August, dragging on economic growth and keeping pressure on President Barack Obama to do more to help the sputtering economy.

Housing starts dropped 5 percent, the most since April, to a seasonally adjusted annual rate of 571,000 units, the Commerce Department said on Tuesday.

Economists polled by Reuters had forecast groundbreaking activity would fall to only a 590,000-unit rate in August. Housing starts are at less than a third of their peak during the housing boom.

“The housing market is not only bad, but still missing low expectations,” said Sal Catrini, a managing director for equities at Cantor Fitzgerald & Co in New York.
…

ECONOMY
SEPTEMBER 20, 2011, 2:18 P.M. ET

Housing Starts Decline
By ALAN ZIBEL And JEFF BATER

U.S. home construction fell more than expected in August to the lowest level in three months as the faltering industry remained one of the weakest parts of the sluggish economy.

Construction of homes and apartments last month decreased 5.0% from a month earlier to a seasonally adjusted annual rate of 571,000, the Commerce Department said Tuesday. The month’s results were pulled down by a nearly 30% drop in the Northeastern states.

The housing industry remained weak, as new home construction fell in August but there are signs that builders are hoping for a change in direction, Robbie Whelan reports on Markets Hub. (Photo: AP.)

Compared with the same month a year earlier, new-home construction in August was down 5.8%. Figures for July were revised downward to an annualized pace of 601,000.

Construction remained below a healthy level, which economists say would be around 1 million to 1.5 million starts per year.

However, builders appear to be ramping up for more construction projects. Newly issued building permits, a gauge of future construction, rose 3.2% from a month earlier to an annual rate of 620,000, the highest level since last December.

Economists surveyed by Dow Jones Newswires expected housing starts would fall by 2.3% to an annual rate of 590,000. Permits had been projected to fall 1.8% to an annual rate of 590,000.

The nation’s home builders have been battling the worst downturn in generations. New-home sales have been weak, partly due to competition from deeply discounted foreclosed properties. Other troubles for the industry include tight mortgage-lending standards and the elevated unemployment rate, both of which are sapping demand.

In July, new-home sales fell to their lowest level in five months as consumers grew more jittery about weakening economic conditions.

Construction of single-family homes, which made up 73% of all starts, fell by 1.4% from a month earlier. Construction of multifamily homes with at least two units, a volatile part of the market, was down 13.5% on a monthly basis.

Builders are remaining idle due to lackluster demand from buyers. Many buyers have been choosing foreclosures and other previously owned homes rather than new homes, which typically are more expensive.

Reflecting weak demand, fewer homes were under construction in August than at any time on records dating back to 1970.
…

Housing summit: Market stabilized, but lacks buyers
By DENIS PAISTE
New Hampshire Union Leader
Published Sep 21, 2011 at 3:00 am (Updated Sep 20, 2011)

MANCHESTER — New Hampshire’s housing market has stabilized about where it was a decade ago, but factors such as the state’s aging population are putting a damper on a resurgence, experts told a housing summit on Tuesday.

“We are pretty much back to the inflation-adjusted year 2000 price for housing in the year 2011,” said Dennis Delay, an economist for New Hampshire Center for Public Policy Studies.

Factors holding back a recovery in the housing market locally include a lack of young families with children, demographer Peter Francese said.

“Only one out of five households in the state is a married couple with children,” Francese he said.

“They’re the backbone of our school systems, and when four out of five households do not have any kids in the schools that becomes an issue in school bond issues, school budgets and so forth. We need more families with children, and I hope we get them,” Francese said.

The summit, co-hosted by the Business and Industry Association of New Hampshire and the New Hampshire Housing Finance Authority, was held at the Radisson, Center of New Hampshire in Manchester.

Kendall Buck, executive vice president of the Home Builders and Remodelers Association of New Hampshire, said that at the end of July, New Hampshire housing permits were being issued at the same level as in 2007.

“We are quite a bit less than last year, but one must remember that last year there was a bump because of the new homebuyer tax credit,” he said.

“There are many, many fewer young adult households, 35 to 44 and under the age of 45 than there are 45 to 54 and beyond,” Francese said, “and that decline is driven by the fact that those young adults simply left the state.”
…

Since when did it become part of the Fed’s mandate to prop up the housing market?

Bernanke Has Few Tools to Heal Economy
By Steve Matthews and John Gittelsohn - Sep 20, 2011 9:00 PM PT

U.S. mortgage rates are the lowest in at least four decades, with a 30-year fixed loan available at 4.09 percent. That didn’t help Alexis Wolf buy a townhome in Beaverton, Oregon.

“Unless you have family help, you’re stuck renting,” said Wolf, 26, a real estate broker who turned to relatives for a loan because she didn’t have the credit and employment history needed to qualify for a mortgage.

Wolf’s experience illustrates the predicament for Federal Reserve policy makers as they end a two-day meeting today to consider ways to boost economic growth. Low interest rates, the traditional medicine for a flagging economy, aren’t helping housing, which since 1982 has aided every recovery except the current one.

Sales of existing homes dropped in July to the lowest since November, and the median price slid 4.4 percent from a year earlier. Rising foreclosures, tighter lending standards and unemployment stuck near 9 percent for more than two years are all weighing on the market. Lower borrowing costs aren’t likely to make a difference, said housing economist Brad Hunter.

“The Fed’s actions probably won’t help housing in a meaningful way,” said Hunter, chief economist and national director of consulting at Metrostudy, a Houston-based housing research firm that provides data to 18 of the 20 largest U.S. builders. “The level of mortgage rates is not a major factor. Rates are at extremely attractive levels.”

Slow sales continue to dampen confidence in housing market
By Martha C. White

The National Association of Home Builders/Wells Fargo Housing Market Index for September dropped one point from August, new data released Monday show, reflecting builders’ low confidence both in the market today and in the prospect of improvement in six months.

September’s number was 14, one point down from the measure of 15 in both July and August. The figures for single-family sales both now and in six months all fell, as did the measure of prospective buyer traffic. (Builder sentiment is measured on a 100-point scale, with figures below 50 indicating a negative view of the market and above 50 indicating optimism.)

Even though mortgage rates are hovering near record lows, sales of single-family homes remain moribund.

“Builders continue to confront the same challenges in accessing construction credit, obtaining accurate appraisal values for new homes, and competing against foreclosed properties that they have seen for some time,” NAHB Chairman Bob Nielsen said in a statement. The downgrading of U.S. debt by Standard & Poor’s, a volatile stock market and political wrangling over the nation’s debt ceiling also dragged on the housing market, he adds.

The index has hovered between 13 and 17 for the past 12 months. September’s figure is one point higher than it was one year ago. This month, nearly all regions of the country fared worse. The exception was the Midwest, where builder confidence rose a single point from 10 to 11. Confidence dropped by two points in the Northeast and South, and by three points in the West.

The large number of distressed properties and the slow speed at which they are being reabsorbed into the market both lower current and future confidence. This process has actually slowed since last year, according to The Wall Street Journal, as allegations of fraud and robo-signing has kept banks from selling foreclosed homes and making buyers leery of purchasing them. Until the legal logjam is broken, builders are unlikely to see many encouraging signs for housing.
…

How is the luke-warm fall sales season shaping up? And how about that housing bottom — still scheduled for the end of next year?

U.S. housing starts tumble
Reuters Sep 20, 2011 – 8:56 AM ET | Last Updated: Sep 20, 2011 9:24

U.S. housing starts fell more than expected in August as groundbreaking for both single-family and multi-family units declined, while permits for future construction rose, a government report showed on Tuesday.

The Commerce Department said housing starts decreased the most since April, down 5.0% to a seasonally adjusted annual rate of 571,000 units.

July’s starts were revised down to a 601,000 unit pace, which was previously reported as a 604,000 unit rate.

Economists polled by Reuters had forecast housing starts to fall to a 590,000-unit rate in August.

An overhang of previously owned homes on the market has left builders with little appetite to break ground on new projects and is frustrating the economy’s recovery from the 2007-09 recession.

Housing starts are at less than a third of their peak during the housing boom.

Compared to August of last year, starts were down 5.8%.

Housing starts for multi-family homes fell 13.5% to a 154,000-unit rate. Single-family home construction — which accounts for a larger share of the market — dropped 1.4% to a 417,000-unit pace.
…

Market Features
Homebuilders’ Shares Mostly Rise On Housing Data
By The Associated Press 09/20/11 - 01:57 PM EDT

Stock quotes in this article:
BZH, HOV, KBH, LEN, MDC, MHO, MTH, NVR, RYL, SPF, TOL

LOS ANGELES (AP) Shares of homebuilding companies traded mostly higher Tuesday despite a government report that showed builders broke ground on fewer homes in August.
…

Monday, Sep. 19, 2011
US home builder outlook worsens in September
By DEREK KRAVITZ - AP Real Estate Writer

WASHINGTON — The U.S. homebuilders’ outlook worsened in September, as foreclosures and anxious buyers hurt construction and sales activity.

The National Association of Home Builders said Monday that its index of builder sentiment in September fell to 14 from 15. The index has been below 20 for all but one month during the past two years.

Any reading below 50 indicates negative sentiment about the housing market. It hasn’t reached 50 since April 2006, the peak of the housing boom.

Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven’t fared much better.
…

This sounds promising. Got popcorn?

Nevada AG puts Bank of America on notice over foreclosures
CATHLEEN ALLISON / SPECIAL TO THE LAS VEGAS SUN
Nevada Attorney General Catherine Cortez Masto at her Carson City office.
Monday 19 September 2011 3 a.m.

Call it Nevada’s version of David versus Goliath.

As foreclosures continue and homeowners cry foul against lenders in their bids to stay in their homes, Nevada’s Attorney General Catherine Cortez Masto is taking on Bank of America in federal court. And the issue is going to heat up as Cortez Masto’s office investigates BofA and other parties in the foreclosure process. She says criminal charges are likely coming to the industry soon, which could provide more ammunition for her foreclosure fraud case.
…