Bits Bucket for September 23, 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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ITEM: Fannie Mae cited for failing to stop robo-signing
Report says Fannie Mae missed catching law firms illegally signing foreclosure documents.
WASHINGTON (AP) — Fannie Mae missed chances to catch law firms illegally signing foreclosure documents and its government overseer did not take the right steps to ensure Fannie was doing its job, federal regulators say.
The Federal Housing Finance Agency’s inspector general said in a report Friday that Fannie failed to establish an “acceptable and effective” way to monitor foreclosure proceedings between 2006 and early 2011. Government regulators then failed to ensure it was complying with demands that it clean up its programs.
Mortgage industry employees — including law firms employed by Fannie Mae — signed documents they hadn’t read and used fake signatures on foreclosure cases across the country. The practices, known collectively as “robo-signing,” resulted in a suspension of foreclosures last fall and a probe by all 50 state attorneys general into how corners were cut to keep pace with the crush of foreclosure paperwork.
In 2005, Fannie hired outside investigators to look into allegations about faulty foreclosure documents. A year later, Fannie received a report from the investigators that found law firms working for Fannie had filed false documents.
Fannie said it was developing a computer system to improve communication and monitor its attorneys but regulators said they found no evidence Fannie had made any improvements in overseeing its attorneys.
You have to love collusion by omission.
“Fannie Mae cited for failing to stop robo-signing”
I guess it’s OK if the gubmint does it?
Fannie isn’t the government. It is a private company with a profit movtive and executives with compensation packages in the millions of dollars that has been tasked with carrying out a government policy priority. The idea was that a private company could do it more effciently. And they could - by doing it illegally. As a general rule, it is cheaper to do stuff if you refuse to follow the rules.
This type of private/public partnership doesn’t work. Executives with a profit movtive are not going to go out of their way to make less profit (which reduces their bonuses).
The executives in my department would never do that. They get very minimal reward for doing things on the fast and cheap and they get punished for doing them wrong. That is the correct reward/punishment structure for departments making decisions about how to implement complex policies. “The less you spend the better, just try not to get caught” is the wrong one.
PRIVATE COMPANY????
It was a “private company” until the government took it over in order to save the housing market. Kinda like GM.
U.S. Move to Cover Fannie, Freddie Losses Stirs Controversy
WSJ
Dec 28, 2009
By JAMES R. HAGERTY and JESSICA HOLZER
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.
How much is the chief executive paid? If it is more than a member of the House of Representatives, then it is not a government entity.
It may have a government gurantee, but that is not the same thing.
Citibank’s student loan business is government guaranteed. Is Citibank’s student loan business part of the government?
“Kinda like GM.”
Kinda.
Except that:
GM has been re-privatized.
GM is profitable at the moment.
The GM bailout was peanuts compared to Fannie and Freddie.
GM has real employees plus a huge network of suppliers and dealers who also have employees.
GM actually makes tangible goods
Easier way to tell that they are STILL a private company:
Their stockholders were not wiped out. Ergo, they are a private company with private ownership.
The fact that the FedGov has offered to cover all of their losses is irrelevant to the definition of private or public.
Fannie and Freddie are evil hybrids that have some of the worst characteristics of both private and public organisations.
De jure government company versus de facto government company.
They were a de facto government company while not a de jure government company.
the notion that fannie mae is just another private enterprise because their excutives make more money than a member of congress is ROTFLMAO funny.
Guess you aren’t thinking about the deeper implications of what I said on a Friday. Fair enough. I’ll spell it out.
Government agencies reward their high level executives for carrying out policies as specified in the laws of passed by Congress and signed by the president. It is a much more complex burden than “make as much money for the shareholders as you can this fiscal year.” This means the rewards for doing particularly well are largely limited to praise and respect and maybe a promotion to an even more stressful job with no substantial increase in salary. It is illegal for them to get a bonus based on how much they saved the government by doing something or how much money they raised by imposing a penaltuies or collecting fees. You don’t want that sort of incentive in a person who is acting with the force of law behind them, just like you don’t want cops to be paid for each arrest.
Because of all this, they get paid very little compared to their private sector counterparts. Any of the executives in my department could easily triple (or more) their compensation by moving to the private sector.
If you see someone making a boatload of money as a high level executive in any entity, you are not talking about a federal government entity. You just aren’t. It is not allowed.
If you see someone making a boatload of money as a high level executive in any entity, you are not talking about a federal government entity. You just aren’t. It is not allowed.”
if you see regualr workers making a boatload of money plus benefits it’s because they work for the government, you are not talking about a public company, because its not allowed.
Well, if your local politicians agreed to a contract with a public union that allows them to earn boatloads of money that you consider excessive, try blaming the local politicians that agreed to the contract. If they can’t negotiate for the public good, they don’t deserve to get re-elected.
“Any of the executives in my department could easily triple (or more) their compensation by moving to the private sector.”
BS. If this were true they would be gone gone gone.
If this were true they would be gone gone gone.
Believe it or not, there are quite a few people who wish to serve their country. And, even more amazing, some of them devote their entire working careers to such service.
them to earn boatloads of money that you consider excessive,”
only excessive compared to private industry that has decimated the middle class
I don’t care how much they earn but do care about how they will pay for it that should be interesting we can look to greece for some clues
somthing about overloading a sinking ship comes to mind
Did they *really* do it to serve their country? Or were they just willing to trade salary potential for stability? (Not that there’s anything wrong with that)
“Any of the executives in my department could easily triple (or more) their compensation by moving to the private sector.”
polly, I totally believe you when you say that. But it is worth pointing out that there are some benefits to being in the public sector that net out some portion of that delta.
In the public sector, I would expect them to have greater job stability, pension benefits (those are gone gone gone in the private sector), better long-term health care, etc.
Whether those benefits are sufficient to balance out a tripling of compensation, I would expect not; but they are not insignificant either, esp in
esp in this economy.
Private my ass!
I’m sure we would all prefer that you keep your ass private, liz. Thank you for letting us know you agree.
The world wide meddlers run in herds also…
(MarketWatch) — Financial ministers and central bankers from the Group of 20 said in a statement late Thursday that the bloc would conduct a “strong and coordinated international response to address the renewed challenges facing the global economy.” The comminque added that the G-20 would take all necessary actions to preserve the stability of banking systems and financial markets as required.”
We are saved.
And there was much rejoicing.
Let me guess…more debt?
That oughtta keep things calm for another day or two.
Or maybe not.
Collusion among central bankers is certain to save the world…
And remember, thank a bankster for your new improved life.
Sounds an awful lot like those bankers trying to save the DOW in October of 1929.
And they’ve managed to “save” it for 3 years now.
Realtors Are Liars®
How keen is investor enthusiasm around $1700 an ounce?
Gold and the Dot-Coms: Comparing the Bubbles
Sept. 20, 2011
Investor enthusiasm is particularly keen on the yellow metal, around $1,800 an ounce. How does gold’s rise compare to the rise of the Nasdaq Composite Index during the 1990s? Mark Hulbert does the charting, and comes away with compelling findings. Laura Mandaro reports.
Will Dow go back to 9K. I’ll move money from MM to Stocks for my 401K after Dow touches 9K.
Will US bailout EU? Would have to eventually.
Would there be a Govt. shutdown in US in a week or so? Looks like one is coming.
UE is high. Recent grads not finding jobs. Emerging countries still flowing in money. Correction is coming to their stocks. Should go down by another 20% in those countries plus their own bubbles are bursting. The next crisis would be Asia.
US will emerge as Best among the Worst.
And Michael Moore is explicitly threatening the wealthy. Cough it up now voluntarily or we’ll take it from you by force. I wonder if he’s also offering “protection” for those who do cough it up?
Michael Moore? That is soooo last decade.
For this decade/election cycle, consider Elizabeth Warren, whose comments ‘there is nobody in this country who got rich on his own’ have recently been integrated into Rush’s talking points.
ooh ooh, can you tell me what he’s been saying? I don’t have time to listen to him anymore.
On a side note, some posters on the *ahem* liberal website want Warren to run for President in 2016.
I don’t listen to his full program, just on lunch break or if I happen to be out driving around mid-day.
He continues to promote the ideal of American exceptionalism, a wistful longing for the greatness of Reagan. He ties anything and everything into a critique of Obama, and is also critical of the R’s field of 2012 candidates. Without favoring any one of the latter, he keeps the talking points fixated on Obama with the presumed goal of electing whatever R gets the nomination next year.
Despite Al Franken’s book title alleging otherwise, Rush is quite good at what he does, which is to make Good Radio, that even if one doesn’t agree with him, is actually engaging to listen to. OTOH, Franken’s show on Air America was a snooze-fest. The only Good Radio on the left worth listening to was Randi Rhodes.
The only Good Radio on the left worth listening to was Randi Rhodes.
Pacifica’s “Democracy Now” is also a good listen.
I get Democracy Now on Boulder’s marxist/communist public radio station but Amy Goodman doesn’t have the same fire as Randi Rhodes.
I get Democracy Now on Boulder’s marxist/communist public radio station but Amy Goodman doesn’t have the same fire as Randi Rhodes.
She doesn’t have the same fire as Randi, but her guests sure do. Ron Suskind’s going to be on today, and trust me, my ears will be glued to the radio.
If she is on that blowhard narcotics addict’s radar screen, she must be doing something right.
My parents report that with no money, limited name recognition among people who are not news hounds and having just announced, she is ahead of Scott Brown in the polls by 5 points. Not bad. The real question is whether the Tea Pary money will bother to defend him since he has been shifting moderate.
I would love to see her in the Senate. A good first step to cleaning up the financial and political system.
I assume Tubby counts himself as one of the rich that needs to pay up? I’m sure he sends in extra with his tax returns each year. Uncle Sam gladly accepts donations, it’s the patriotic thing to do.
I assume Tubby counts himself as one of the rich that needs to pay up? I’m sure he sends in extra with his tax returns each year. Uncle Sam gladly accepts donations, it’s the patriotic thing to do.
Yep - and when he has a coronary I am sure he will fly down and use Cuba’s health care system…
He would never seek the best private health care his money could pay for.
Liberals are funny. They want one system for you and your family but will NEVER expect that same system for themselves…
“Yep - and when he has a coronary I am sure he will fly down and use Cuba’s health care system…”
Actually, he DID have a coronary in Dec 2009 — angina pectoris. He was well-treated at a non-profit hospital in Honolulu. (wiki) Sometimes you don’t have time to consider the politial ramifications before choosing a hospital. Sometimes you’re not even conscious.
“Liberals are funny. They want one system for you and your family but will NEVER expect that same system for themselves…”
Funny, that’s what I have long observed about so-called “conservatives”.
Perhaps we all have more in common than meets the eye.
Doesn’t Hawaii have a state system of universal health insurance? So he did use a system somewhat similar to the one the ACA is setting up.
I think they do, Polly. I remember reading about it at the time, but didn’t have time to provide a ref or a link here.
But the point is that we sometimes don’t have options where we get our health care. When Rush had those chest pains, I’m not sure if he cared — or even knew — that he was about to betray his private-sector ideals by being admitted to a public hospital.
Of course, when he came out of the hospital when the episode was over, he could have used himself as an example and said gee, maybe universal/public health care could be a good thing. But n-o-o-o-o-, he went right back to being his old self, thus betraying the public hospital that took care of him.
So now he’s a double-crossing double hypocrite.
Hawaii does not have a state system of universal health insurance. Hawaii does require all employees who work more than 20 hours a week receive health insurance. That’s nice, but not universal coverage.
This AM - GM is at 19.75
Exactly at 50% of its post “IPO” all time high of $39.43.
BILLIONS is taxpayer monies that just vanished. BILLIONS more that will never be paid back.
AND GM WILL go bankrupt again.
UAW are some of obama’s biggest backers.
Hope and change boyz…
A lot of companies’ shares are down. HP is down almost 50%, even though it makes almost $10 billion profit per year. Stock prices have little to do with profitability and more to do with growth. HP’s stock has tumbled because it is perceived as being stagnant. Remember that in predatory capitalism that unless you show above average growth your stock price will be punished.
GM has gone a long way to fixing their cost structures. Excess capacity was reduced, factories were closed. Expensive senior workers were replaced with new guys and gals that only get paid $14/hr, and they can’t strike for several years. Even Consumer Reports has been giving GM new products glowing reviews. And GM is making a profit, even at their reduced sales levels.
That said, these are going to be “interesting times” for automakers. The US and global markets are going to be very challenging. Ever wonder why the Chinese haven’t tried to enter the US market with their own brands the way the Koreans did 20 years ago? The Chinese know that this is a terrible time to sell cars in the USA, and they are wisely sitting out on the sidelines.
Analysts bloviate about sales returning to historic levels “real soon now”. I don’t buy it. If anything, I think they will go down even more as we slide into the double dip. Investors recognize this and it’s why auto stocks in general are down. I wouldn’t invest in any automaker, foreign or domestic.
I did notice GM moved their Electric Vehicle design headquarters to China. Pisses me off that GM exists today because America bailed them out and now a new industry that is just beginning to get going is under cut by the lax trade laws that let this kind of thing happen.
DESIGN went to China? I’ve never seen Design go to China…
China has a tariff on electric cars.
GM had to “partner” with a Chinese company.
The good thing is we will be able to buy cheap electric cars in a few years. They won’t be GM cars.
One of the things that’s weighing on the U.S. auto industry is young adults in urban areas. To put it mildly, a lot of them just aren’t that interested in car ownership.
What are they interested in? Bicycles. Scooters. Taking public transportation. Or walking. All of these things are a lot cheaper than cars.
YMMV. I know out here the young folks care very much about having a set of wheels. The prefered choice is a big azz truck, which few can afford.
Perfectly understandable that urban folk are shunning the car. They’re more expensive than ever, as is filling the tank.
We’ve got snow on the ground 5 months out of the year. Not really biking friendly although the die hard triathloners are out there on clear days in February w/special clothing. I’ll stick to running in Feb. Too many bikers taken out by cars/trucks in the summer mos w/o adding snow and ice to the equation.
This is true, Carrie. And the bikers who AREN’T hit have to fight a constant battle to continue to not be hit. I know this first hand.
Slim, ya gotta realize that NOT everybody lives in a small city which is warm, dry, flat, has little traffic, and has affordable homes within biking distance of the office. And that most people have families and don’t have the luxury of pleasing only themselves. And that, while it’s nice to toodle round town to your local community activities, others have to be at a certain place at a certain time, every weekday, rain or shine, dark or light, warm or cold. And in appropriate attire.
Gotta keep the 12 year old car for commuting, but more interested in buying a new Giant Defy bicycle than replacing the Honda.
Here’s my dream bike — a build-it-myself project.
Awesome dream, Slim! Never really had the urge to weld my own frame before, but suddenly it sounded nifty. Seed planted—who knows if it will grow.
Seed planted—who knows if it will grow.
I say we HBBikies get together for a frame-building meetup in Tucson.
Remember that in predatory capitalism that unless you show above average growth your stock price will be punished.”
or pay dividends
The way the majority of posters come to the defense of all things government is beginning to make me physically ill. Government has been executing people lately, let’s here the usual suspects defend that action. Government is killing people in Afghanistan, Libya and Iraq. Government is giving social welfare and in-state tuition to non citizens. Government is propping up the Banks, NAR and UAW. The Federal Government is borrowing 40 cents on every dollar it spends, come on out and let everyone know how that is sustainable. Government is also telling restaurants how to cook food, what ingredients they can and can’t use and that happy meals and soda are pure evil. Government will ban smoking tobacco while at the same time promoting the smoking of marijuana.
Thank you.
If I have to choose between the governent or corporaitons, I’ll go with government, holding my nose the whole time.
After all, who in their right mind wants someone in control of their lives that wasn’t at least elected and can be un-elected and who thinks that cutting corners at all costs is a good thing?
Government has been executing people lately, let’s here the usual suspects defend that action. Government is killing people in Afghanistan, Libya and Iraq
Lately? What you just get off Cheney-$hrub x1Trillion taxpayer/citizen U$ dollar sub$idized meds? Lately? Did you get a hole in you shoes marching against Cheney-Shrub’s $hock & Awe,… Circa 2003?
Sorry to see you go, Nicky. Have fun in Somalia.
Also, IIRC the GM bailout process began under dubya’s watch. I have no doubt that had McCain won the bailout process would have been completed.
Also, IIRC the GM bailout process began under dubya’s watch.
by that you mean the democratically-controlled congress at the time, right?
I recall Bush saying he was behind it, and even if he wasn’t, he had his veto pen (which he rarely used).
I recall Bush saying he was behind it,
he may have been..would be curious to see a quote (though who knows what would have happened if a bill had actually crossed his desk).
The point is that the jersey worn by the sitting president at the time of passage of a law isn’t exactly the most relevant factor. Yes, the executive can veto bills..but they don’t write nor pass them.
The point is that the jersey worn by the sitting president at the time of passage of a law isn’t exactly the most relevant factor. Yes, the executive can veto bills..but they don’t write nor pass them.
Yes, I’m sure…ever hear of Obamacare?
Yes, I’m sure…ever hear of Obamacare?
yep. who introduced the bill to the house and senate? (a congressman in both cases, no?). Who passed the bills? The house and senate.
Who signed it into law? The president.
How big will the GM bailout be this time? The last one only lasted the UAW three years.
Aren’t we being premature about this? GM is profitable as we speak.
Enron was “profitabe” until the day it wasn’t. Accounting tricks are a beautiful thing.
Fine, do you have proof beyond your prejudices that GM is losing money right now? What about SarbOx?
Ah Enron. You mean the company that was headquartered in the low tax, low regulation state of Texas?
SOX only deals with reporting.
Accounting standards are from FASB.
Enron could have been SOX compliant and still been commiting the same irregularities.
Ah Enron. You mean the company that was headquartered in the low tax, low regulation state of Texas?
———–
And Bernie Madoff was HQ’s out of high tax, high regulation New York. What’s your point?
GM is profitable, with very little debt, and a strong position in China (>50% growth in China sales). They are not a company any of us should be worried about in the near term.
It will take years (if not decades) for their poor management and the UAW to load the company up with debt again, raid the piggy bank, and bring the company down.
Hope and change boyz…
1960 $tudebaker Avanti! (a USA made product post their 1934 Gov’t prevented bankruptcy)
(The “TrueAngry’$™” only seem to remember them for their pioneer “covered wagons” and $elf-reliance days of yore.)
I don’t understand the hatred some have for the domestic car industry. The domestics have taken their medicine. They’ve reduced costs and improved quality. Consumer Reports has added many domestic models to their recommended list.
Face it folks, we have to circle the wagons and protect our economy. We won’t accomplish that by buying imported goods.
I don’t understand the hatred some have for the domestic car industry. The domestics have taken their medicine. They’ve reduced costs and improved quality. Consumer Reports has added many domestic models to their recommended list.
Because obama’s saving of “GM” was NOT about saving the US automotive industry - it was about saving UAW jobs and pensions.
It was a simple payback with BILLIONS of taxpayer money that will NEVER be repaid to the UAW for their campaign contributions.
If obama wanted to save the car industry in America he would have let it go bankrupt with US backing.
GM would have emerged without massive pensions liabilities (that it still has TODAY and why it will still go bankrupt again), without massive retiree health care costs, without tort lawsuits, etc.
It would have also wiped out GMAC (which now the US taxpayer is liable for all the bad loans) and would have forced GM to actually sell cars people could afford.
Then let’s talk about what obama could have done with tariffs, tort reform, right to work, infrastructure improvement, reigning in the EPA, etc. to make the US automotive industry competitive with the world.
But it NEVER was about saving the US car industry.
“he would have let it go bankrupt with US backing.”
WTF does this mean? Isn’t this precisely what they DID?
So you’d be happy with a Kia then, right?
He’s off in his cherry-picked, alternative universe again……..
“GM would have emerged without massive pensions liabilities … without massive retiree health care costs…”
So, basically:
No Medicare
No Social Security
No pension
No private healthcare
And even if you’ve managed to sock something away in a 401K, it’s been wiped out.
How are people supposed to retire?
Comment by Molly McGee
So, basically:
No Medicare
No Social Security
No pension
No private healthcare
And even if you’ve managed to sock something away in a 401K, it’s been wiped out.
How are people supposed to retire?
Molly meet Rio,…Rio meet Molly. Soiree at Hwy’s blog pad, anytime!
I don’t understand the hatred some have for the domestic car industry. The domestics have taken their medicine. They’ve reduced costs and improved quality. Consumer Reports has added many domestic models to their recommended list.
Face it folks, we have to circle the wagons and protect our economy. We won’t accomplish that by buying imported goods.
I get what you’re saying. I don’t hate them, but I don’t think they’ve taken their medicine yet…at least if they want to sell to me. They still need to make a car I actually want…and I want more than a more-reliable cheaper Impala. Pontiac was starting to get close with the G8 before they pulled the plug. Basically I want a modern AWD big block 67 Chevelle.
“Basically I want a modern AWD big block 67 Chevelle.”
“I’ll have what he’s having.”
Ford has done a decent job without the kind of government handout that GM/Chrysler took.
Ford will get my business before GM/Chrysler.
Ford has large unfunded legacy costs the same as GM. Don’t
bet on them not coming to the taxpayers for bailouts also.
Domestic cars are overpriced. Foreign cars continue to offer more value for the money in every category.
@unc–
Ford hasn’t come to the US Government yet…as long as they try to deal with their private company issues in the private sector, they are OK by me…
If they ever come to Uncle Sam with a hand out…well, that’s a different story.
Your momma don’t dance and your daddy don’t rock ‘n’ roll.
But do they twist (in the wind)?
Loggins and Messina? Really?? How could you?
With so much political wind leaning against its policy options, is the Fed truly an independent central bank at this juncture?
Tech
9/20/2011 @ 8:01PM
Quantitative Easing and Government Intervention
Timothy B. Lee
This week, the Federal Reserve will meet to consider possible steps to further expand the money supply as a way to combat the recession. Republican Congressional leaders took the unusual step of writing a letter to Bernanke warning him against further action:
For readers who aren’t up on central banker lingo, let me briefly review what “quantitative easing” means. Ordinarily, central banks conduct monetary policy as follows. If they want to pump more money into the economy, they buy short-term government bonds, a process that pushes down short-term interest rates. Conversely, if they want to take money out of the economy, they sell short-term bonds, pushing up interest rates. This is usually described as “lowering interest rates” and “raising interest rates,” respectively, because the policy is usually described in terms of a target interest rate. But what the Fed actually does is buying and selling treasury bonds with short-term maturity dates.
For technical reasons I don’t fully understand, this process, known as “conventional monetary policy,” becomes ineffective when interest rates get close to zero. The Fed can keep buying bonds, but the new money doesn’t make it into the economy. So “quantitative easing” is a way for the Federal Reserve to continue injecting money into the economy after short-term interest rates have fallen to 0 percent. It works like this: the Fed buys long-term treasury bonds (which currently have a higher interest rate) rather than short-term ones. The reason it’s called “quantitative easing” is because the policy is described not based on the target short-term interest rate (which is already zero) but based on the quantity of money the Fed will spend. In the last round of quantitative easing, the Fed spent $600 billion.
…
Doublespeak is the hallmark of corrupt abusers. “Easing”; just what are they easing us into? More debt. Who will we be paying interest on this blessed easing to? The public is increasingly easing-weary.
“Ultimately, the American economy is driven by the confidence of consumers and investors and the innovations of its workers.”
I call BS. The American economy used to be driven by the JOBS of its consumers and the innovation which was underwritten by US government funding, largely university grants and military funding, NOT by $500/week and wishing money into existance.
Agree oxide .
It should be clear to everybody by now that your can have all the confidence in the world but if you don’t have the funds for consumption ,or easy money debt ,than you can’t consume .
This is what I find so annoying about the current lies .
And what is this BS about the innovation of workers . The so-called innovation of workers that are losing buying power every day because the innovation of the Employer is to give them less . I would say your going to get less innovation because there is less reward in the system .
Today’s houses: Southeast of DC Edition. Aka The ‘Hood.
House 1: Why bother.
1948 4/2 cape TEAR DOWN on 0.25 acre
http://www.zillow.com/homedetails/3320-Pinevale-Ave-District-Heights-MD-20747/37391765_zpid/#{scid=hdp-site-map-list-address}
This house must have been flooded. Not even a meth lab/drug war could have trashed a place like this. And a chain link fence in the front yard — ALWAYS the chain link fence in the front yard. Why is it that ‘hood houses ALWAYS have the rusty chain link fence in the front yard? It’s not going to keep anybody out.
Apr 1998: Sold $105K
2010 tax assessment: $284K
Jul 2011: Listed $60K
—————-
House 2: Needs work, priced accordingly.
http://www.zillow.com/homedetails/5105-Lorraine-Dr-Temple-Hills-MD-20748/37384001_zpid/#{scid=hdp-site-map-bubble-address}
1954 3/2 on an acre right next to Andrews Air Force Base. Clutter all over the place, total kitchen gut. They mercifully spared us a pic of the bath. It reminds me of the kind of house you would see on the news where some sicko locks a kid in the cellar. Oh wait… “Tenant in the basement” YIKES.
House 3: Ahhh. Finally, something sensible.
http://www.zillow.com/homedetails/8112-Fort-Foote-Rd-Fort-Washington-MD-20744/37465298_zpid/#{scid=hdp-site-map-list-address}
1981 4/1.5 Colonial on 0.23 acres. This is the type of house I’m accustomed to. Clean, classic lines, Flat, no-nongood price too, if have a job in this part of the area.
Feb 2000: Sold $100K
Aug 2007: Listed $380K
chase the market down dooby doo down down…
Feb 2011: Listed $150K
Days on Zillow: 325, about half of those days at $150K. I wonder if anything is wrong with this house, or if the area is really that depressed.
Most of Pee Gee County is toxic.
Sorry, on that third house I meant to say it had a flat, no-nonsense yard. More blueberry smoothie!
That third house, looks nice, but that bedspread is weird - is it covered in plastic? Did they make movies there or something?
The second house - “Please knock and enter basement..” they forgot to add “with gun drawn”
So China sez letting the yuan rise won’t solve trade imbalance with China. They’re right! The one sure fire way to solve the trade imbalance with China is: NO TRADE WITH CHINA! And voila! No trade imbalance!
It’s just that simple.
“NO TRADE WITH CHINA!”
A great way to save money since much of what one buys is made over there.
Also a good way to avoid contact with poison candy, drywall, etc etc etc…
Being in the stuff biz, over the years I’ve gained quite a bit of respect for the China of old. At one time in their history, they were true innovators: fireworks, gunpowder, textiles, pottery and porcelain (ceramic tableware is known as china for this very reason), etc. They also knew a little something about trade, about finding out what their customers wanted and then making it (or copying, depending on your point of view). Their arts and letters were unparalleled, and in fact Japan got much of their arts and letters from China. What we think of as Italian food, pasta, originated in China, introduced to Europe by Marco Polo (along with silk and other stuff).
What we see in China today is the post-Japanese conquest, post-Mao degeneration. They have certainly retained their capacity for trade and copying, and have forgotten, apparently, how to innovate. A debased country, consigning the best of themselves to the dung heap. Much like one of their trading partners. At one time in their history, when they took pride in their work, something like poison candy and toxic drywall would have been unheard of and cause for shame.
I also forgot medicine and engineering. Although different in discipline than the Western counterparts, there are those who swear by Chinese herbals and acupuncture. And the Great Wall beats the snot outta the pyramids, IMO. And they built it to cope with exactly the same problem we have here in the US today: unwanted immigration, or invasion (same difference). This could be their most valuable contribution to the US. Build us a Great Wall. We need it.
The Chinese also thought up base 10 math and exported that to the rest of the world. The figures 1,2,3,4,5, & etc. are directly from the Chinese figures.
Thanks, Blue, I did not know that.
In fact western civilization owes much to Asian and Middle Eastern civilization in areas like math and science.
The Chinese also thought up base 10 math and exported that to the rest of the world. The figures 1,2,3,4,5, & etc. are directly from the Chinese figures.
I was under the impression that the decimal system was Arabic in its origin.
I thought it came from India and was presented by the Arabs.
“I thought it came from India and was presented by the Arabs.”
A quick looksie at Wikipedia confirms that you are right.
It’s not hard to invent Base 10. Just look at your hands and feet.
It’s not hard to invent Base 10. Just look at your hands and feet.
LOL!
“It’s not hard to invent Base 10. Just look at your hands and feet.”
Slim, if you’re built like me, that’s base 20.
“A quick looksie at Wikipedia confirms that you are right.”
Literacy is truely dead.
I’m base 21…….
I was waiting for that.
Sometimes, I just can’t help myself…….
The Chinese also thought up base 10 math and exported that to the rest of the world. The figures 1,2,3,4,5, & etc. are directly from the Chinese figures.
Given their propensity for reproduction copies, I’m not in the least surprised.
Except it’s not always labeled “Made in China.” It took over five years just to get Country-of-Origin Labeling (COOL) on perishables like produce and meat, sometimes frozen foods. Big Ag is THAT afraid of consumers rejecting Chinese food. Even then, some things are such a mixture that you can’t even call it Made in Anywhere. Look on the back of your orange juice and sometimes it’s a mixture or 4-5 different countries. No thanks!
I’ve seen the same with ground beef: Origin from USA, Canada or Mexico.
Does it say that on the individual package, or is that a sign in the meat department? My store wimps out and puts up a single sign that ALL the meat comes from USA/Mexico, but you don’t know which packages comes from where.
If a single package says that.. I don’t want to know how they’re shipping all this raw meat around the continent and mixing it.
Even then, some things are such a mixture that you can’t even call it Made in Anywhere
Hwy sen$es USA “Bidne$$” opportunitie$ (Cut with the negative wave$ Kelly!)
In China, what you eat tells who you are
In a nation reeling from tainted-food scandals, organic products are mostly reserved for the rich and political elite. Chinese government officials have exclusive suppliers, who do not advertise.
By Barbara Demick, Los Angeles Times / September 16, 2011
Reporting from Beijing—
At a glance, it is clear this is no run-of-the-mill farm: A 6-foot spiked fence hems the meticulously planted vegetables and security guards control a cantilevered gate that glides open only to select cars.
“It is for officials only. They produce organic vegetables, peppers, onions, beans, cauliflowers, but they don’t sell to the public,” said Li Xiuqin, 68, a lifelong Shunyi village resident who lives directly across the street from the farm but has never been inside. “Ordinary people can’t go in there.”
Until May, a sign inside the gate identified the property as the Beijing Customs Administration Vegetable Base and Country Club. The placard was removed after a Chinese reporter sneaked inside and published a story about the farm producing organic food so clean the cucumbers could be eaten directly from the vine.
Elsewhere in the world, this might be something to boast about. Not in China. Organic gardening here is a hush-hush affair in which the cleanest, safest products are largely channeled to the rich and politically connected.
Many of the nation’s best food companies don’t promote or advertise. They don’t want the public to know that their limited supply is sent to Communist Party officials, dining halls reserved for top athletes, foreign diplomats, and others in the elite classes. The general public, meanwhile, dines on foods that are increasingly tainted or less than healthful — meats laced with steroids, fish from ponds spiked with hormones to increase growth, milk containing dangerous additives such as melamine, which allows watered-down milk to pass protein-content tests.
“The officials don’t really care what the common people eat because they and their family are getting a special supply of food,” said Gao Zhiyong, who worked for a state-run food company and wrote a book on the subject.
“The local government would like us to give more products to officials and work units, but we think it is important that individuals can enjoy our product,” said Wang Zhanli, whose organic dairy in Yanqing, just beyond the most frequented tourist sections of the Great Wall, received certification in 2006.
[What kinda pressure do you reckon?]
Organic farmers say they face pressure to sell their limited output to official channels.
At his Green Yard dairy, the technology is imported from Holland. The cows graze on grass free of pesticides and are milked in a sterile barn by women in white caps who look more like laboratory aides than milkmaids.
On their organic diet, the cows produce about half the volume of conventional dairy cows, meaning that the supply is never enough, especially since the 2008 scandal in which tainted milk left six Chinese babies dead and sickened 300,000 people. Managers at the dairy say about two-thirds of their product goes to officials, state-owned enterprises, embassies and international schools. A limited quantity is sold at diplomatic compunds and a few select health food stores at prices nearly triple that for regular milk.
“We’re not Switzerland. Our population is way too big for everybody to eat organic food,” said Hou
China’s sports teams have enacted strict bans on athletes eating pork because of the fear that clenbuterol, a common but illegal steroid fed to pigs, can cause false positives on drug tests. Female judo champion Tong Wen was banned from competing internationally last year after a test showed traces of the drug, but the ban by the International Judo Federation was overturned in February after she said she had never knowingly ingested clenbuterol.
“Now we have a special team that takes care of procuring food. We are more cautious than ever before. We buy pork only from organic farms through a channel that the government has approved,” said judo coach Wu Weifeng.
“Does it say that on the individual package, or is that a sign in the meat department?”
The package. This is at King Soopers (Kroger)
China is encouraging, or forcing, peasants to leave their subsistence farms and move to the polluted cities to work in the factories, while Party officials conscript the remaining farmers to produce organic foods for their privileged consumption.
You can’t make this stuff up. The U.S. is not the only country that’s gotten FUBAR.
You’re right, Elanor. The whole article reminded me strongly of that passage in 1984, when Julia opens her smuggled sack of coffee which was reserved member of the Inner Party only.
And I flashed to the pilfered jam scene in Soylent Green.
From Bloomberg:
China’s Property Market Squeeze Is Nearing a Tipping Point, Nomura Says
“Land sales are dropping much faster than before, developers are losing more access to bank financing, and housing prices are showing weakness
The price of land in Beijing slumped 76 percent in August from a month earlier“
“China’s Property Market Squeeze Is Nearing a Tipping Point”
Good grief — how many more tipping points are there to come before this global banking meltdown is a fading memory for our kids to study in their history books?
“this global banking meltdown is a fading memory for our kids to study in their history books…”
Hah! Even today’s kids don’t learn that kind of stuff from their history books. Now maybe in a graduate-level college course…
What? I thought they weren’t making any more land in China?
No, the Chinese make that too, but its heavily tainted with Melamine. Be careful.
The Chicken Littles are out in force today. Any news? Anything that wasn’t crystal clear a week or a month or a year ago?
Greek is going to default. That’s as clear today as it was 1 month ago, even 1 year ago. Various other PIIGS are not far behind. EURO-land banks holding PIIGS treasuries are in deep trouble. That’s been obvious since the onset of the crisis over 1 year ago.
The US is on an unsustainable course. That’s as clear today as it was 3 years ago.
A huge backlog of foreclosures is finally braking lose and several US banks might not make it. That’s been known for years.
China’s economy and housing bubble will implode. That’s as clear today as it was 1 year ago. Along with is various commodity prices will collapse, no surprise here.
I am somewhat at a loss why the market is collpasing NOW. None of that is really news. All the information was out there for weeks, month, even years.
I have had a “bunker mentatily” on my investments for a while b/c of all that news being out there. I was surprised that the market kept on rising despite all that information being out there. At times I thought that I was delusional and the market had it right.
I guess it’s more phsychology rather than any new information that came to the table. Typical herd behavior, the lemmings going over the cliff.
“I am somewhat at a loss why the market is collpasing NOW. None of that is really news.”
The HBB is full of people who like to look at what’s happening in the world and understand the broader ramifications.
The market, by contrast, is dominated by people looking for the next micro-factor that will sway the markets in the next hour or day at most. They can’t be bothered to look at the big picture.
“I am somewhat at a loss why the market is collpasing NOW. None of that is really news.”
I think it is because people are realizing that no matter how big government spending and bailouts do become - it is not going to save the system.
For example - at one time - people thought the rest of the EU were going to bail out Greece (and Italy and Spain and Ireland, etc.). Now it probably is not going to happen.
Plenty of examples in America (like with housing and banks)
Part of the problem is that long term investment became second to this short term casino mentality ,market creation or bubble creation type investment ,that is just based on
money flow and hype . Investment is suppose to be allocation to needed areas that have the potential for growth .
What we have today is Ponzi schemes and money flows and day trading . Its just more so based on winners and losers ,rather than will the sound investment pay off with time .
It has really become a joke .
The market, by contrast, is dominated by people looking for the next micro-factor that will sway the markets in the next hour or day at most. They can’t be bothered to look at the big picture.
Speaking of which, people get really frustrated with Cramer, but if you just remember that he’s only talking about the next couple of hours or days his advice isn’t that bad. It’s just really frustrating to listen to him and the people who follow him focus on the nickels and ignore the steamroller.
But nobody cares what the weirdos think who keep pointing in horror at the steamroller. They’ll care eventually but then it will be too late to matter.
The PPT will be busy today, can’t have to much disruption going into the weekend. The smooth talkers will be out over the weekend calming everyone down and ensuring them that the masters and meddlers have it all under control! No real problems, just some pesky debt, that will be dealt with. Now get to consuming!
What I miss most about 2008 was the pigmen being forced to work on weekends, tackling crises before the ever important open of Asian markets on Sunday evening US time. How I wept for Jamie Dimon having his birthday dinner rudely interrupted by a phone call informing that the SHTF and his Master Of The Universe presence was needed by the Boyz
Stop hatin’ on Jamie like that. He quite seflessly helped save every one of us from certain armageddon.
Yes, yes he is also much beloved and revered, but lets face it- he’s not out there protecting the Lumpenproletariat and doing ‘God’s work’ like Lord Blankcheck…
Jamie is a hero! He is fighting them over there so we wont have to fight them over here!
Or something like that.
(SV starts playing Zeppelin III’s “Gallows pole”)
SV guy, thank you for enlightening me the other day about the rich and famous citizens (albeit part-time) in your neighborhood in Montana. Did you say you live west of the Continental Divide? We didn’t get to the south border of Glacier. Next time, I hope. The area is too vast to cover in one visit.
Hi Elanor,
You’re very welcome. I do have a place west of the divide in the Swan Valley.
And I didn’t mean to imply everybody was rich there, certainly not me, but there are quite a few.
I’m glad you enjoyed your time there and hope you come back again.
From the Denver Post:
Rosen: No free ride for uninsured
“Paul acknowledged that, in a welfare society, the man expects the government to take care of him but argued that individuals should assume responsibility for their own actions and that the man should have voluntarily carried insurance. Blitzer followed up: Since the man didn’t have insurance, should society “just let him die?” At this point, there were two or three shouts of “Yes!” from the audience. (There are some like that in any crowd, left or right.) Paul’s very next word, it should be noted, was “no” and he proceeded to explain how people without means were cared for when he practiced medicine in San Antonio. Then he expanded on the problems caused by government in our current system. That’s when the audience applauded.
Predictably, this exchange has been shamefully distorted by a number of partisan, opportunistic media liberals, misrepresenting the wording, context and timing to brand Paul and all the Tea Partyers in that audience as heartless misanthropes. That’s the way lefties play the game these days.
But Blitzer’s hypothetic raises a critical question. For argument’s sake, let’s say Obamacare is repealed along with its mandate that individuals buy health insurance, and we start over. Warren Buffett can afford catastrophic medical expenses, but most of us can’t. People who can’t afford health insurance will necessarily become public wards. But what do we do about free riders who choose to fly without a health insurance parachute? Personally, I think it’s foolish and irresponsible for people who can afford health insurance to take that risk. Some do because they know the public will pay their bills. This is known as moral hazard, when public policy rewards irresponsible behavior.”
“But what do we do about free riders who choose to fly without a health insurance parachute? Personally, I think it’s foolish and irresponsible for people who can afford health insurance to take that risk. Some do because they know the public will pay their bills. ”
If the public will pay their bills, then I’m not sure what “risk” you are referring to…
Fundamentally, we need to decide what “insurance” is for. Is it risk reduction? A way to spread the risk of catastrophic medical expenses among the pool of people who choose to buy insurance? Or, is it a way to have citizens pay into the healthcare system for our population.
If our healthcare system is going to take care of everybody (by law in many cases; doctors can’t just turn away uninsured folks at the ER), it makes sense to me that everybody should be paying into it, in some form or another. I’m not sure it really matters much if we call this “insurance”, a “tax”, or a “fee”.
Perhaps there should be some basic level of care provided broadly to the populace, with private insurance used to fund optional upgrades (private rooms, elective procedures, etc.)
The alternative, it seems, is to let Blitzer’s hypothetical patient die.
My family has endured 8 surgeries this summer. We’ve had excellent medical care, and with a few minor exceptions, a good experience with our insurance provider. However, when I look at some of the costs, it’s obvious that - in some cases - inflated prices are being used to subsidize care to others (the proverbial $100 band-aid).
Hitting people who are already down - dealing with their own medical and resulting financial issues - as a source of funding for those who are uninsured seems like exactly the wrong answer to me.
Perhaps there should be some basic level of care provided broadly to the populace, with private insurance used to fund optional upgrades (private rooms, elective procedures, etc.)
This is how private health insurance works in Canada. (Yes, they do have it.)
(There are some like that in any crowd, left or right.)
I call BS. It’s okay for your compatriots to shout “die” because supposedly the other side does it too? Way to defend your fellow cavemen, Rosen. I don’t know of ANY left-wing crowd where “some” would shout to allow the uninsured guy die. A leftie wouldn’t do that — by definition. And how do you “misrepresent” wording like “yes, let him die.”? Not like you can doctor the transcript. And using one or two anecdotes to make assumptions about the whole is used ALL THE TIME, by both sides. That’s how righties play the game these days.
I notice that Rosen doesn’t specify exactly how “people without means were cared for when Ron Paul practiced medicine in San Antonio.” Ron Paul’s answer was to take care of the sick by private charities. Of course, that will never work. A Jimmy-Stewart style casserole is NOT going to cure cancer. The neighbors are NOT willing or able to pony up $60K for surgery. Rich greedheads would never donate to charity because the poor probably brought the health problem on themselves, don’t you know. And at least one of them (CEO of Whole Foods) whined that he and other richie’s don’t donate because their tax break isn’t big enough.
And at least one of them (CEO of Whole Foods) whined that he and other richie’s don’t donate because their tax break isn’t big enough.
I used to work for one of the largest non-profits in the state of Arizona. Believe it or not, most of our major donors cared little about the tax implications of their gifts. What they were most interested in was helping the cause.
Since this organization was affiliated with a university, a lot of the donors were interested in giving money to scholarships to help kids who are as poor as they once were. Or they wanted to fund research to find a cure for a terrible disease like cancer. Or they felt that the income that they got from investments was unearned and it needed to go back to society.
I’ll never forget one conversation between my boss and one of the most generous donors the university ever had. He was trying to give money to the student health center, which kept him alive after he got TB. (The guy was almost 90 at the time of the conversation.)
My boss insisted that we couldn’t take his money because the student health center was state-funded. And he was just as insistent about making a major gift.
It was truly something to behold. Trying to talk a multimillionaire out of giving a gift isn’t easy.
You aren’t supposed to “talk him out of it.” You are supposed to redirect his interest into a related area that does need the money. Redirection - like when a toddler becomes interested in playing with the stove.
Truth be told, my boss wasn’t one of the development officers (read: fund raisers). She was in charge of the organization’s publications and PR office.
But the old man mentioned above was one of those types who liked to come to our office and visit with everyone. And I do mean everyone.
So, when he stopped by my boss’ area, they had to chat for a while. The donation to the student health center came up in their conversation, and then they were off to the races.
What finally happened? The university did accept a donation from him. It was for a health promotion plaza outside the student health center. Which is a nice way of saying that a nice shaded area garden was put there.
It’s still a nice place to be, even though the health center has moved to another building on campus. Here are some pictures of what that plaza looks like these days.
Oxy, any stooge that would call for the death of another human being must posses a mental ilness and/or have an IQ barely above the level to maintain autonomic function.
These people are invisible to me.
A lot of people support the war in Iraq, Afghanistan, Pakistan, Oman, Sudan, Libya,…
“A lot of people support the war in Iraq, Afghanistan, Pakistan, Oman, Sudan, Libya,…”
Yes they do. I do not.
“No free ride for uninsured”
To anybody that says there is no free healthcare I say BS. I am involved in the expansion of our very capable county hospital right now. There are people who temporarily migrate to this hospital from a certain southern nation for free medical care. I see it each and every day.
King SV’s solution would be this. Basic healthcare would be available to all of my subjects. Basic healthcare. I would create an agency to administrate it. Designer care and whizz bang doctors would operate outside of my system. The MOST important aspect of my plan would be the elimination of the money changers. My kingly belief is that the inherent governmental inefficiencies would be more than offset by the elimination of a profit motivated insurance industry.
Now before anybody chimes in about eliminating medical innovation and saddling honest hard working American’s with yet another cost I say this. We honest hard working American’s already are paying for this. Depending how you break things out it could be said our grandkids are going to pay for it (which is a truly cowardly thing imo).
I despise most of what DC represents (not you Oxy & Polly). But as much as I hate big government, imo no one* should have to suffer from a basic curable or manageable medical ailment.
* All of my “legal” subjects.
I just can’t see how the costs of medical care aren’t going to crash the system anyway . You just keep having more and more people drop into the “can’t afford ” sector .
When people have to choose between paying for rent and food
and transportation ,verses taking the risk of a illiness ,they are going to take that risk .
With Employers dropping health coverage ,or giving lousey coverage and people forced to take on these costs from their reduced paychecks ,it’s clear that the real problem is the system is making more and more people take that risk .
Price fixing monopolies corrupt everything .
Forcing people into medical care when the system they are forced to engage is is corrupted is what the issue is here .
Industry is so ambigious that they think they can come up with all these contrived costs ,while reducing incomes and benefits ,while outsourcing and outmanufacturing ,while destroying the tax base ,and everything is just going to add up to 2 + 2 equals 4 .
The problem with the Madhatters is they somhow think that
government will fill in the gaps for anything they steal.
The only entitled that I see are the Capitalist that are really
the price fixing Monopolies that are demanding their profit margins .
Indu$try is so ambiguous that they think they can come up with all these contrived costs ,while reducing incomes and benefits ,while outsourcing and out-manufacturing ,while destroying the tax base ,and everything is just going to …be $weet!
Amen HW, Amen.
Maybe people look at the 20-25 cents on the dollar that insurance companies take and decide that it’s morally wrong to buy insurance from such criminals.
Easy.
You make the uninsured put out the coffee cans asking for donations, when they get sick with no health insurance. Like we do now.
Just make the counters bigger, to hold a lot more cans.
It’s fudnamentally stupid to pay money for something that increases in prices and decreases in delivered goods and servcies.
That’s why many who can *afford* health insurance, don’t pay for health insurance.
I’ve made this point to my partners before:
1. If as a civilized society, we feel a duty to care for our sick (ie. we, as a society don’t have the stomach to turn someone away at the emergency room without the means to pay); then
2. Our only two options generally are:
a) a public pool of funds available for the sicks’ care, at either the Federal or State level, in which case, the government either pays huge sums to give everyone all the care that they WANT (which invariably is more than they NEED–as people overconsume free healthcare), or you ration care in one way or another, which leads to a private insurance industry working alongside the public program (just like in places like the UK); or
b) you keep the system of payment in the private sector, in which case the only way to effectively make the system work is to require people to buy private insurance (a mandate), and give financial assistance to those who can’t buy the most basic policy.
Of course there is the question of whether each state should decide what to do, but the fundamental two paths are the same regardless of whether the solution is implemented within a state structure or federal structure.
Does anyone see a third option?
Millions Shut Out of Mortgage Refinancing, Fed Study Shows
Friday, 23 Sep 2011 |By: AP
About 2.3 million homeowners could have refinanced their mortgages last year if they didn’t owe more than their homes were worth or if lending standards weren’t so strict, according to a Federal Reserve study released Thursday.
Long-term mortgage rates are near record lows and have been below 5 percent for all but two weeks this year. The average rate on a 30-year fixed loan is now 4.09 percent.
But lenders typically require homeowners to have equity in their homes to refinance. And many lenders are approving only borrowers with high credit scores.
Roughly 22.5 percent of homeowners, or about 11 million, are “underwater” — they owe more than their homes are worth — according to CoreLogic, a real estate data research firm.
The figures don’t show how many of the homeowners obtained loans during the housing boom, when lending standards were often lax. Many lenders offered loans to people with poor credit, no employment checks and little or no money down.
The Fed said about 4.5 million refinancing applications were approved last year. In a healthy housing market, that figure would be nearly 34 percent higher, it said.
The Federal Housing Finance Agency has said it’s reviewing a program it launched two years ago to see if it might be expanded to let more homeowners qualify. The program, called Home Affordable Refinance Program, or HARP, lets people whose homes are underwater by up to 20 percent refinance at lower rates.
But to be approved for the program, homeowners must be current on their mortgages, which must date from 2009 or later.
As of July, about 838,000 homeowners had refinanced through the program. Officials had hoped at least 4 million Americans would take advantage.
The Fed’s study reviewed information from more than 7,900 lenders. The number of approved mortgages fell from nearly 9 million in 2009 to fewer than 8 million in 2010. The peak was 15.6 million in 2005.
Credit card debt surges by $18.4 billion in second quarter
CNN MONEY
Consumers are racking up credit card debt like it’s 2008.
Americans added $18.4 billion to their debt load in the second quarter, a 66% increase from the debt they accumulated in the same quarter last year and 368% more than they tacked on in 2009, according to credit card research firm CardHub.com.
In fact, the last time consumers charged up this much debt during this time period was in 2008 — several months after the recession officially began and when credit card balances climbed by $25.2 billion.
Despite the recent spending spree, the total amount of credit card debt consumers have accumulated is still significantly lower than in previous years. Total outstanding credit card debt as of July was $792 billion, down 18% from the September 2008 peak of $972 billion, according to data from the Federal Reserve.
If current trends continue, however, consumers could find themselves even deeper in the hole. CardHub, which analyzed the consumer debt data from the Federal Reserve, estimates that consumers will run up about $54 billion more in credit card debt by the end of 2011 than they did in 2010.
Helping to fuel this renewed reliance on plastic are the credit card issuers, which have started to loosen their standards and extend credit to consumers with so-so credit again now that government regulations like the CARD Act and the debit card swipe fee cap have been finalized, said SmartCredit.com credit specialist John Ulzheimer.
My credit card offers are going way up again. One day a few weeks ago, I had 4 of them. The blue one (Chase Saphire?) can show up several times a week.
Fortunately, the shred truck will probably come next month. I have two boxes already and I haven’t even done my aggressive yearly culling yet.
It is possible to stop just about all of those credit card offers. Fill out the info at:
http://www.optoutprescreen.com
You have to “renew” every five years or the solicitations start showing up again. That happened to us- two or three every week. Within a week or so of putting our info on the site (again) the solicitations had stopped completely.
Thanks.
Argh, that stinking blue Chase card. I get at least 2 of them a week (one for me, one for fiance). I’ve looked at it a few times, problem is, they are spending all their money on ads, and none of it on the perks/bennies for the cardholders. It’s a really crappy deal.
The best cards are the ones that you’ll rarely (or never) see advertised. The Starwood Preferred Amex is one of the best cards out there (earn Starwood points, transfer them at greater than face value to airlines, or use them directly, very flexible program). The other great cards are typically tied to your airline of choice, if you spend enough money, they give you all kinds of bennies (early boarding, companion tickets, etc).
If you have 50K+ yearly annual CC spend, you should have 2 cards. A Starwood Amex, and the Visa Signature/MC World Elite for your preferred airline. I also have a Discover card for when they run their deals (which are typically really nice, spend 1000, get 100 back, stuff like that).
Seems that the cards that advertise the most have the least to offer. I guess that’s not really surprising, but.. I’m still kind of shocked at how many of those silly blue mailers I get each month!
I take those offers, scribble all over them, then stuff ‘em back in their postpaid envelopes and fire ‘em right back at the credit card companies. It’s devilishly free fun. Try it!
I switch the offers and mail them back in the postpaid envelops, that’s fun too
I switch the offers and mail them back in the postpaid envelops, that’s fun too
Oh, darn. A new wrinkle on the game. I’ll have to try that one too.
I already HAVE a Chase blue card (which arrived unsolicited because our checking account and a small savings account are at Chase) and I still get offers for the same card in the mail.
What are the advantages of the Starwood Amex card?
Oops, forget that question, I didn’t read the paragraph preceding, d’oh.
The American Airlines CC has been very good for us over the years. Several trips to the Pacific Rim in business class on mileage awards, preferred status when flying, no baggage fees, unsolicited free upgrades to first class. Sweet. I actually upgraded to a higher level CC with annual fee so I could accumulate more miles.
I have linked Mastercard/Visa (two cards, same line of credit) through USAA. I actually had to prove 18 months of steady employment at increasing salary to get it - long time ago. I like ‘em because I can see my balances on my bank’s website just like I can see my insurance bills, etc. It takes less then 24 hours to pay it on-line. And I get 1% back on everything spent at the end of the year. Just ultra convinient.
I have a generic blue AmEx only because I thought I should have one way to get money that wasn’t tied to my primary bank, but maybe that is less necessary since I have a secondary, local bank. AmEx points tranfer to AirCanada’s rewards program and AirCanada only charges 15,000 miles to get flights from DC to Toronto and general vicinity. Might be worth looking for a better AmEx, but I don’t use it enough most years for it to make much difference.
How much of this can be attributed to the INFLATION of ‘volatile’ food and energy, which the lying liar CPI conveniently omits?
+10 goonie.
I thought stores were “struggling” because back-to-school didn’t produce the sales they wanted. Businesses are closing left and right due to lack of demand. So, if no one is buying anything, whence the new CC debt? Food and gas, car repairs, and teeth cleanings.
Debt is being used to finance needs, not wants.
No one seems to talk about the new big azz TV they’re gonna buy.
The Big Azz TV is a non-issue. It’s 500 bucks and then it’s done. It’s the monthly cable and iCrap fees that need to be thinned.
A funny thing happened on the way to ending analog broadcasting: more free airwaves channels popped up.
Screw cable/satellite and basic DSL is good enough for the Internet.
WTH? You mean the chicoms can’t save the world?
ITEM: Signs of China slowdown add to dim global outlook
China manufacturing data jolt jittery financial markets as global economic outlook darkens
SHANGHAI (AP) — Signs that the powerhouse Chinese economy is slowing have spooked global markets and sharpened fears that the world economy will not escape another recession, so much so that a small, preliminary survey of Chinese manufacturers contributed to a global stock market plunge this week.
However, analysts said Friday that the dramatic fallout from a preliminary reading of HSBC’s index of manufacturing for September far exceeded the data’s importance. And while the world’s No. 2 economy is slowing as expected, they said, growth will remain relatively strong.
If nothing else, the market rout that began Thursday and continued Friday reflects how much the rest of the world is relying on China, one of the few big economies that is expanding at a rapid clip, to stave off recession.
“If nothing else, the market rout that began Thrusday and continued Friday reflects how much the rest of the world is relying on China, one of the few big economies that is expanding at a rapid clip, to stave off recession.”
An economy expanding at a rapid clip to produce products to sell to … to whom?
“An economy expanding at a rapid clip to produce products to sell to … to whom?”
(funny you should ask.)
For a fella that’s advocate$ “Ca$h is King!”, the answer to that riddle is kinda obvious ain’t it?
OPEC’s $1 Trillion Cash Quiets Poor on Longest Ever $100 Oil
heheeeheeeheehaahaaahaaheeehaahaaa… (Hwy50™)
Topics: International /Ayesha Daya and Vivian Salama, On Tuesday September 20, 2011 / Bloomberg
Saudi Arabia will spend $43 billion on its poorer citizens and religious institutions. Kuwaitis are getting free food for a year. Civil servants in Algeria received a 34 percent pay rise. Desert cities in the United Arab Emirates may soon enjoy uninterrupted electricity.
Organization of Petroleum Exporting Countries members are poised to earn an unprecedented $1 trillion this year, according to the U.S. Energy Department, as the group’s benchmark oil measure exceeded $100 a barrel for the longest period ever. They are promising to plow record amounts into public and social programs after pro-democracy movements overthrew rulers in Tunisia, Egypt and Libya and spread to Yemen and Syria.
“A sharp increase in spending to accommodate social pressures has averted potential disquiet over governance in most countries, though in the longer-term economic reforms will be needed to buoy private-sector growth and job creation,” Jean- Michel Saliba, a London-based economist at Bank of America, said in an e-mail Sept. 8. “Without the social spending, Gulf protests would possibly move the nations toward constitutional monarchy.”
$1 Trillion Revenue
OPEC will need WTI at above $80 a barrel to maintain the increased social spending because the costs of Persian Gulf budget obligations have more than doubled since 2006 to $77, with Saudi Arabia needing an average $82, according to Deutsche Bank AG. OPEC’s basket price at more than $100 puts it on course to earn $1.01 trillion this year, the U.S. government said.
During the oil rally that peaked in 2008 before the onset of the global financial crisis, Abu Dhabi, holder of most of the U.A.E.’s crude reserves, pledged $22 billion to construct Masdar City, powered by renewable energy that would rest on concrete blocks under which electric driverless vehicles would transport residents. Qatar began building an academic hub, attracting American institutions such as Georgetown University in Washington and Texas A&M University in College Station, Texas, with funding from a government-run foundation.
Cut Production
“Saudi Arabia will cut back after its summer surge,” said Leo Drollas, London-based chief economist at the Centre for Global Energy Studies, the researcher founded by former Saudi Oil Minister Zaki Yamani. “If it doesn’t trim now then prices might lurch downwards on lower demand, and it needs a minimum basket price of $90 for what it wants to do this year.”
Not all the spending initiatives work right away, even though citizens praise the changes.
Abu Dhabi plans to provide more services to poorer citizens by focusing on communities like Ras Al Khaimah after academics and journalists signed an online petition calling for the country’s Federal National Council, an advisory body with no executive authority, to be chosen by universal suffrage and given more power.
Less than a week after Mubarak’s ouster in Egypt, the city of 250,000 people got a visit from Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan. Learning they lacked electricity, Sheikh Mohammed, who is next in line to the nation’s presidency, summoned a utility executive who arrived within two hours by helicopter. “Give them power now,” he ordered.
Seven months after the visit, Ras Al Khaimah is still waiting for power but residents don’t blame the crown prince.
“Abu Dhabi is not the problem,” al-Nuaimi said. “The Federal Water and Electricity Authority is the problem. They need to do the connection but they are not. I hope the next step will be for Abu Dhabi to take over FEWA so that we can enjoy the power they promised us.”
BWAHAHAHicHAHAHicHAHAHAHAHicHAHAHic* (DennisN™)
See, we’re engaged in nation building whether we want to admit it or not. Straight from J6P’s wallet to Sheik Protectmefrommyownpeople via millions of gas tanks.
This book comes out next week and was recently reviewed on Bloomberg, 1st in hold queue to get it from the library:
“The Third Industrial Revolution: How Lateral Power Is Inspiring A Generation And Transforming The World” by Jeremy Rifkin
We are undergoing a historical transformation in the way we create and disseminate energy. Together, internet technology and the reality of renewable energy are creating a new type of electrical grid, one in which energy is stored and distributed on an individual basis … in just a few years, millions of buildings and even cities will become energy self-sufficient, signaling the end of our reliance on fossil fuels. This transformation is already underway in Europe … here, Rifkin explains how the US can embrace this ambitious vision of the future, end its decades-old crisis over foreign oil, and ensure its continued status as world power. He also paints an accessible, anecdotal picture of what our lives will look like in this new global order, if we can summon the political will to join it (publisher summary)
I’ve been following Rifkin since the 1970s. At times, he comes across as a real crackpot.
And then there are times when he makes perfect sense. I think this is one of those times.
A crackpot is always a crackpot. It’s the lucid moments where they sucker you in.
ITEM: Signs of China slowdown add to dim global outlook
reading between the line$:
Peak Oil Proponent$:
$upply & Demand: “y’all ain’t using enough $upply, so, what we is going to noncollusionally/collectively do is Demand that you pay even higher gasoline prices!”
Gas prices are coming down here. About 15 cents so far this month.
And the proof of the collusion is that NOT ONE company is raising its gasoline prices right now.
I just read a rather technical statistical analysis of recent commodity price increases. I think the author was Randall Wray.
Any-hoo, the gist of the analysis was that the recent price runups couldn’t be attributed to anything else except speculation.
Here’s how a real bureaucrat explains why property tax bills in Cook County will not fall to match plummeting assessments (prices)…
(Chicago Sun Times) -
This year, dropping assessed values on homes, along with the state equalizer falling, drove the tax rates up in most parts of the county to meet the demands of the taxing districts, explained Bill Vaselopulos, tax extension manager in Cook County Clerk David Orr’s office.
“Just because your assessed value has dropped does not mean that your tax amount will drop accordingly,” Vaselopulos said.
Every three years, a property owner’s home is reassessed — a schedule that depends on which part of the county you live in, according to the Cook County assessor’s office.
But again, Vaselopulos stressed, the assessed value is only a single factor in calculating the final bill.
“So what you’re seeing is more taxable value is being folded back in to residential properties,” Vaselopulos said.
Soooo…in other words, our local gov’t costs X - so we can’t tax you X minus Y no matter what we think your house is worth. Now, look beyond the politics of taxation to another issue - will house prices fall to levels that will accomodate this taxation? I say they will. Carrying costs must eventually be reflected in prices.
One of the biggest overlooked effects of the bubble was how it distorted the budgets of local governments. No one ever considered any of this when prices were still going up. Still it’s funny to watch a bureaucrat try to explain this: “…more taxable value…” oh, that’s a good one!
“Just because your assessed value has dropped does not mean that your tax amount will drop accordingly,” Vaselopulos said.
then it naturally follows that just because your assessed value goes up that your taxes shouldn’t go up accordingly, right? RIGHT???
Wait, it only works in one direction?
Perhaps because this is my home I grew up knowing that it only worked in one direction…but then again my time reference is limited. Who knows what might happen if this economy does not quickly rejoin it’s former trajectory of boundless and predictable growth?
The money has been spent in public union contracts during the good times (cause it was only fair with all that money rolling in).
There are NO give backs by public unions in bad times.
Pay up or we take your house.
If you to reign in the public unions by having them pay even just a little more for their own pensions - you are a nazi.
They give 99% of the political donation to democrats.
Hint: What party controls Cook Country?
Any questions?
My bet is that there will eventually be another exodus, but my friends tell me there are too many good restaurants* here now for that to happen again.
*bars, clubs, Wrigley Field, shopping, etc.
Tell your friends to take a good look at Detroit.
It used to have good resturants and nite clubs too…
Blame Romney, George W. Romney, republican governor of Michigan (1963-1969) and HUD secretary (1969-1973)
I’ve lived near both Chicago and Detroit. There is little comparison between the two cities.
Wait, Romney was a HUD secretary at one time?
Holy moly! Do you have any idea how dirty that makes him?! He’s part of the PROBLEM! He helped create it!!!
Corruption and Incompetence in POLITICS respects no party line, but it is sure heavy with Democrats. We need to learn that electing the right race, the right ethnic group or the right party does not trump the individual’s inherent integrity. But with all the lies and deceit and the phony PR, it’s hard to find an honest person.One of the worst is Antonio Viilagrosa the failed Mayor of LA. This career politician must never hold office again,but he has eyes set for a Calif senate seat or an Obumbles cabinet appt..lets stop him..
You started off well with the 1st nine words, then fell head-1st right on to Ra$h Limpbaughs lip$. Enjoy the tongue slobber.
04,
I agree with what you said with the exception of the Democrats domination.
It’s probably close to 50/50.
We started our descent when we lost sight of promoting our best and brightest and fully embraced the PC type doublespeak.
The only time we came close to a decent meritocracy in this country was when the WW2 veterans returned and ENFORCED IT.
It’s no coincidence that as they retired and died off, things started going to hell.
Back to the *mean* actually. The way it used to be.
Greece will default and the PTB will try and soften the blow. Which of course won’t work for long. The Great Unwinding will/can not be stopped.
ITEM: U.S. Pressures Europe to Act With Force on Debt Crisis- NYTimes
The Obama administration, increasingly alarmed by the spillover effects of Europe’s financial crisis, has begun an intensive lobbying campaign to persuade Germany and nations to act decisively to stem any contagion from the Greece debt crisis.
If Countrywide wasn’t a control fraud, then I don’t know what is. Story:
The Great Mortgage Cover-Up: A Two-Part Series
Summary: iWatch News tells the story of a pattern of fraud at Countrywide Financial Corp., once the nation’s largest mortgage lender, and a high-ranking executive who blew the whistle and, she claims, was fired for her trouble. The story is the product of a 10-month investigation that included review of thousands of pages of court documents and interviews with former company insiders.
It was and you do.
LOL!
ITEM: HP Stock Hits 6-Year Low After Whitman Named CEO- AP
Hewlett-Packard Co.’s stock sank Friday to its lowest level in six years, as investors worried that new CEO Meg Whitman isn’t the right person to turn the company’s fortunes around.
I noticed how they defended the purchase of Autonomy. I first used their software back in 1997 and was blown away by what they were doing. They refined the concept of avatars that traversed data, collected info and then using the internet (or intranet) would create the most amazing knowledge bases. These guy are some of the original XML gurus and really made the “web” behave like a object oriented database.
So sad. HP was one on the companies featured in Tom Peters’ book “In Search of Excellence”.
My retired-engineer brother used to rave about the quality of HP test equipment some many years back. He said nobody could touch HP when it came to quality.
Then, … something happened.
Then, … something happened.
Then the stockholders demanded higher profits. No matter what. Seems to be the achilles heel of publicly held companies. Eventually stockholders will demand that unsustainable things be done so that they can make their money and get out.
I think I know what happened to HP. It was the Bottomless Stockholder Maw.
I once had to site-prep for a major HP instrument in the lab in the late 90’s. The HP guy came to install it, which led to this gem of a conversation:
HP guy: So here’s the phone number if you run into problems.
Oxide: OK, can I also send you email?
BP guy: um, well, we don’t all quite have email yet.
Oxide: but… but… you’re Hewlett-Packard!!!
(At the time, I had had some version of local email for about 7 years and web-based email for two years, and I was considered a late adopter.)
I once had a client who had spent much of his working life at DuPont. I was working with this client around the same time that oxide had the above conversation with the HP guy.
During one of our phone conversations, the client and I were talking about e-mail. It was a new thing for a lot of us, but no big deal for him. Apparently, DuPont had gotten on the e-mail bandwagon in the 1970s.
I worked at HP in 1989 and everyone had email.
Internal, yeah. But could you email an HP employee from outside the company?
I think countries and companies are a lot a like.
They are started by idealists adn hard workers but eventually the leaches take control and suck the host dry.
Totally agree.
The idealists and hard workers build into the company a type of intangible capital - human capital and the excellent reputation that is spawned by this human capital - and later on it is this intangible capital that is cashed out - busted out - by the leaches.
Seems like that might apply to whole countries.
My retired-engineer brother used to rave about the quality of HP test equipment some many years back. He said nobody could touch HP when it came to quality.
Hwy’s been a “collector” Since 1989. Beckman Instr. as well.
layoffs ahead
“HP, which was founded in the 1930s as a maker of sound equipment, is no stranger to long and difficult transformations. But, under Whitman, the company could shrink substantially. Revitalizing the company depends on whether she can lead a major transformation. Indeed, analysts believe HP needs to emulate IBM Corp., whose dire financial situation in the 1990s forced a complete exit from consumer markets.”
Unlike IBM, HP doesn’t have a strong software development and customization card that it can play.
HP did not make “sound equipment,” they made wave form analyzers and pioneered oscilloscopes and general electrical and then electronic test equipment.
Techtronix, THE last name is oscilloscopes and analyzers, was founded by former employees of HP.
People, I’m seeing some real synergy here. With Whitman in charge H-P can start AUCTIONING their equipment and services.
Watch out for falling bodies. Looking at the fall in GLD and SLV paper versions of precious metals today there will be some suicidal Hedge Fund managers.
Silver is down almost 15% trading at 2X volume. Gold is down 6% or over $100 per oz.
to short gold use ticker GDZ
to short silver use ticker ZSL
Seems like a free market to me. Sometimes it spikes up and down.
Nothing to be worried about unless you are using leverage to go long.
Much of the volatility on the downside is because people place orders to sell if the price goes below a certain price point. It just increases the pressure on days that are down.
“The more things change, the more they stay the same.”
Always good to keep a little physical on hand though. Gold is good to bribe people like border guards, customs agents and other assorted officials.
You planning on going somewhere???
Treasuries: ‘Signs of fatigue’
NEW YORK (CNNMoney) — The Treasury market has been in a frenzy as investors bail out of stocks amid growing worries about a worsening debt crisis in Greece and Europe.
The yield on the benchmark 10-year note continued to hit record lows Friday, falling as far as 1.671% in the early going before bouncing back up to the 1.7% range.
All week, news out of Greece and Europe has been anything but positive, with the threat of a Greek default growing and rumors swirling about European banks needing recapitalization. The news in the U.S. wasn’t much better, with yet another threat of a government shutdown looming on the horizon.
“It has been a very active and exhausting week, and the market appears to be showing signs of fatigue,” said Kevin Giddis, president of fixed-income capital markets at Morgan Keegan, in a note to clients.
How low can yields go?
What a difference eight months make. The 10-year yield started the year at a healthy 3.3% and even threatened to top 4% in early February.
But then the eurozone debt crisis started to heat up. And investors fled from riskier assets and flocked into the safety of U.S. government-backed debt. That pushed yields sharply lower, with the 10-year first falling below 2% on Aug. 18.
Europe’s crisis: 5 things you need to know
Officials from the International Monetary Fund and World Bank are holding their annual meetings in Washington, D.C., this weekend, and investors don’t want to be caught off guard by any big surprises.
“The markets are kind of taking a breather,” said Kim Rupert, fixed-income analyst at Action Economics. “There’s a lot of headline risk with the IMF/World Bank meeting.”
While it’s unclear if any progress can be made on Greece, the nation’s finance minister, Evangelos Venizelos, is expected to be in attendance. Earlier this week, Greece announced more budget cuts in its ongoing effort to secure the next round of bailout funds.
Europe’s debt crisis: Complete coverage
In the U.S., the Federal Reserve is trying to jumpstart the economy through “Operation Twist” — a program aimed at selling short-term notes and buying longer-dated bonds to spur bank lending.
But investors had largely baked that move in — and were hoping for more aggressive action from the Fed — so the announcement did little to inspire confidence in the recovery.
“It’s hard to be a buyer of Treasuries at this level, but it’s also risky to sell stocks,” said Rupert. “You want to limit your exposure to anything negative.”
Her advice? “Go into cash.”
Europe, Under Fire, Seeks to Get Ahead of Crisis- Reuters
European policymakers showed signs they were preparing new steps to cope with the region’s debt crisis even as talk of a possible Greek default gained pace on Friday.
— Gotta love, Meddlers, Banksters, Buffoons/Politicians etc… They will refuse over and over again to see the big assed handwriting on the wall!
P.S. Voters are smart!
Thats the problem with the kind of market we have today . It’s all a game of back and forth ,go to cash ,no go to Gold now ,no go to ’stocks now ,no go to real estate now .Go to safe haven because this is about to crash . Does anybody see the insanity in all this ?
Yes. It is completely crazy.
Especially in the context of the changes people expect in the overall economy in various good or bad circumstances:
I recognize leverage exacerbates things, and that the unemployment figures are cooked (and always have been), but is a $15T economy that much different than a $14.85T economy? $15.15T? Is having 91% of our population being employed that much different than 92%? 90%?
The biggest thing that I see in front of the US is our debt/deficit issue, which we should have done with Simpson/Bowles 9 months ago.
Very tempting… maybe in two years or so.
http://www.zillow.com/homedetails/17708-Long-Point-Dr-Redington-Shores-FL-33708/47249787_zpid/#
WTF is that thing in the back? Part of the boat dock?
“WTF is that thing in the back? Part of the boat dock?”
That’s a powered boat lift.
Take a deep breath before you click (will repost tomorrow)
http://www.tampabay.com/news/homeowners-reap-rental-fees-as-houses-work-through-foreclosure-system/1193342
There’s a real kick in the pants at the end of the article. Here goes:
Some homeowners cheat the system at both ends of the foreclosure process, said University of Central Florida economist Sean Snaith. Homeowners delay eviction and either live rent free or rent out their homes. When finally faced with giving up their homes, they take cash incentives to leave the houses in good shape. Responsible homeowners, he added, get no reward for paying their mortgages and taxes on time.
“There are no handouts for people who do the right thing,” Snaith said. “In more ways than one, they’re stuck with the short end of the stick.”
Welkome to the new Amerika. Change you can believe in has already taken place…