Bits Bucket for October 8, 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.
About Me
Name:Ben Jones
Location:Northern Arizona, United States
To donate by mail, or to otherwise contact this blogger, please send emails to: thehousingbubble@gmail.com
PayPal is a secure online payment method which accepts ALL major credit cards.
Links
-
October 2025 M T W T F S S « Sep 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Photo Submission: hbbphotos@gmail.com
View the HBB Photo Gallery *updated 4/13/2008
Next stop… home! Cash-strapped family move out of three bed council flat into a BUS after refusing to wait six years for a bigger house
Read more: http://www.dailymail.co.uk/news/article-2046403/Cash-strapped-family-bed-council-flat–bus.html#ixzz1aBdyQQ4l
Words fail me, the stupidity of us naked apes, never fails to amaze me.
must not have a lot of trailer parks there.
Realtors Are Liars®
So much for pre-1978 stock. Being an LL just got a lot more risky:
“Hicks recently became the first person in Monroe County to take a lead-poisoning lawsuit to trial — and the first in western New York to win a jury verdict, receiving a $221,000 award.”
http://www.democratandchronicle.com/article/20111008/NEWS01/110080346/Ashley-Hicks-first-win-lead-poisoning-lawsuit-Monroe-County
Not a single word regarding her parents. Responsibility?
I’m not sure what you mean?
The risk us not that kids sit around eating paint chips, Chris Farley-style. For example, many windows/sills wre painted with lead=based paint. The weather becomes nice, you open the window, and in doing so you grind the wood against wood, creating dust, which is then blown into the house…
Herman Cain Tells Occupy Wall Street Protesters to ‘Blame Yourself’
ABCNews - Oct. 5, 2011
Speaking to the Wall Street Journal, Republican presidential candidate Herman Cain said the demonstrators are coming across as “anti-capitalism.” The former CEO of Godfather’s Pizza said the Occupy Wall Street protesters are trying to distract the country from President Obama’s “failed policies.”
“Don’t blame Wall Street, don’t blame the big banks, if you don’t have a job and you’re not rich, blame yourself!” Cain said. “It is not a person’s fault because they succeeded, it is a person’s fault if they failed. And so this is why I don’t understand these demonstrations and what is it that they’re looking for.”
At a campaign stop in Florida Tuesday, Mitt Romney said the demonstrations were “dangerous” and “class warfare.”
When ABC’s Emily Friedman asked Romney today about the protests, the GOP front-runner declined to elaborate on his previous comments, saying “I’m just trying to get myself to occupy the White House.”
He’s tripping on his own shoelaces before he even gets out of the starting block…
what I dont like about Cain is his 2 faced apporach to healthcare.
He tells seniors you should have a right to your own doctors and the government should stay of out the doctor patient relationship…..yet he wants the government not to pay for abortions and the supreme court to overturn Roe vs Wade.
Cant have it both ways Herman.
Did you know that the the RNC’s health insurance policy covers abortions?
The hypocrisy of the Repubs without peer.
“When ABC’s Emily Friedman asked Romney today about the protests, the GOP front-runner declined to elaborate on his previous comments, saying “I’m just trying to get myself to occupy the White House.””
And planning on building a bigger mansion in La Jolla just in case. But why should I put you in the White House instead of one of the Wall Street protesters since they seem to understand the nation’s problems better than you do?
“And so this is why I don’t understand these demonstrations and what is it that they’re looking for.”
If you don’t understand what the protests are about, you have no business being president.
It’s not just the lack of understanding by someone whose birthright was membership in the top 1%, but the dismissive attitude towards the protestors which I find deeply troubling. Perhaps his economics adviser Glenn Hubbard suggested the protests were no cause for concern.
Too his credit, Mitt didn’t attribute the protests to an Obama conspiracy, the way Herbert Cain did.
These candidates are really walking a tightrope trying to villainize the protestors. When he says being out of work is their fault, well he’s talking to mothers, fathers, friends and co-workers of these people who know the intimate details of whether they were just lazy slackers who deserved losing work or if the problems really stem from the forces of globalism.
Those mothers, fathers, etc all vote. The candidates risk looking completely out of touch and clueless as to the plight of the avg American.
Apparently this is a serious occupational hazard among Republican leaders who were born with silver spoons in their mouths. Remember when George H. W. Bush expressed amazement upon discovering scanner technology at the Supermarket?
When I mentioned this here about Bush a few years ago, several posters immediately insisted it was a myth. But I watched it on TV as it was run many times. It was funny.
It was a real Montgomery Burns moment.
I remember that video Ben. I was thinking about it as I typed the post.
Bush Discovers Fire
Uploaded by armadilloze on Apr 11, 2007
Bush is mesmerized by a common grocery store checkout scanner in 1992. This was LONG after scanners were introduced in 1980. “Some say” this is an “urban legend,” but you decide. Sorry, source file was only 160×120, not too sharp.
While you laugh at bar code scanners just remember this is the same guy who was the head of the snake (aka CIA) and help set up the Iranian October surprise to kneecap the Carter Admin.. Why would a country(us) want to elect a man to lead this country who was the head of the most secrete and feared organization in the world? Seems like so many of our deeper economic problems with debt had to do with our leaders back then too.
I would point out Russia’s Putin was head of the #2 most feared organization ie. KGB before he took over so there is a current political experiment in progress in Russia using this technique.
Bush being unfamiliar with product code scanners was understandable to a degree. The security bubble in which the vice president and president reside limits both the things they need to do and some of the places they go because of the disruptions that would be caused. He’d been in that bubble for around 12 years at the time.
But there’s little excuse for current candidates for president to be so out of touch.
“These candidates are really walking a tightrope trying to villainize the protestors.”
To clear up the record, so far as I am aware, it has only been Republican candidates who have demonized the protestors.
I hope unc, 2banana, Bill in Carolina, JoeyinCalifornia, or perhaps even Eddie will feel free to jump in here to correct me in case I misspoke. Please don’t forget to provide a link to a legitimate news source so we won’t suspect you of spreading propaganda.
The only Democrat with a consistent record of opposing war and corporate greed is Dennis Kucinich, who will get pushed out of Congress next year by redistricting.
The squad is doing their part to educate Occupy Denver that the Democrat party (Rush’s pet phrase) are NOT their friend.
This is becoming a situation where we had to destroy the village to save it, all pigmen be they Koch or Soros need to feel the guillotine blade on their throats.
And the 1%er apologists deserve nothing less, Marie Antoinette didn’t get it either…
Asked if she would turn down a $150,000 wall street job, one young protester said yes she would turn it down.
Last time unemployment was this high I was in college. My first job paid $22,500 annual. I would think top B school graduates were offered $50,000 that year (1985).
I taped the outline of a “$” symbol on my mortar board cap as I graduated. Capitalist since a very young age.
Hell no, I would not turn down the $150,000 if I was 26 and right out of college.
She is going to eat dog food in her 40s if she does not get her act together.
Juxtaposed to those young demonstrators, a Steve Jobs, age 23, in 1976 worked to market Steve Wozniak’s creation. No the Steve and Steve show were not making a point on staying away from becoming wealthy in order to hate capitalism and win the respect of their contemporaries. They did not care.
I agree with many people in saying this is not just about the Fed. This is a protest against the American Dream as well.
Of course it is not a protest against the American dream. And by the way, don’t trot out Steve Jobs and Steve Wozniak like these are average people whom everyone can aspire to being. That is a ridiculous argument.
You seem to be saying that since this girl turned down a non-existent hypothetical job that she better watch it or she’ll be eating dog food eventually, and that she is also against the American dream.
Congratulations on your ability to not overthink things.
Also, regarding Steve and Steve, don’t forget the role of taxpayer-funded research and development. Many people know that the government developed the internet in 1969. What is less well-known is that the taxpayer also paid for research and development of many other things that make up Apple products - semiconductors, operating systems, programming languages. The fruits of this R & D were handed over for free to the corporate sector. (Some people call that corporate welfare.)
Everyone realizes Steve Jobs was a leader and technology prophet but some zealous/fanatical capitalist can take this worship thing too far.
http://twitpic.com/6vz5xl
“Asked if she would turn down a $150,000 wall street job, one young protester said yes she would turn it down.”…
“This is a protest against the American Dream as well.”
It depends on the context (hers) of the question.
1. Take the job and get paid alot of money to do things you’re morally opposed to. This seems to be how she interpreted the question, and I appreciate her answer.
2. Take the job and get paid alot of money to do as you wish with the job. Might get a different answer. Would from me, anyway.
“Don’t blame Wall Street, don’t blame the big banks, if you don’t have a job and you’re not rich, blame yourself!” Cain said.
I’d like to hear him reconcile the above statement with $700 billion Wall Street bailout and trillions of dollars in near zero interest loans and other financial arrangements that the Federal Reserve doled out to every major financial institution.
.
Republican candidates ignore recent financial history at their peril. The truth is out there, and not very hard to find in the information age.
and CC companies will still raise your rates when you renew even if you have great credit….
“Don’t blame Wall Street, don’t blame the big banks, if you don’t have a job and you’re not rich, blame yourself!” Cain said.
I think ol’ Herman just lost any hope of election, even as VP, with that one. That makes too good a sound bite, juxtaposed with people telling how they were laid off, etc.
It appears the Tea Party set is going to be against the protests, as I predicted (no great feat), but I hear Ron Paul supporters are active in the protests, so the Repub candidates might should be careful about what they say about the protesters, as I think Romney has figured out.
The #1 target should be the FED. End of story.
I haven’t watched any videos of the OWS movement but the fact that they are angry enough to protest the status quo warms my heart.
The fact that their quotes might not make the movement seem as enlightened as some here is but a minor issue imo.
Wasn’t everyone of us less enlightened at such a young age?
I think the answer is a resounding yes. This protest is a good step.
I see beggars at the stoplights around here and sometimes I think “Get a job-oh, right. 9.1% unemployment.”
I took a menial job when I was a kid. I was relatively well spoken, went to a decent school. A couple of the people I worked with were amazed, and said that I’d always be able to get a job.
It was an eye opener because I’d always thought it was not about getting ‘a job’ but about getting ‘the right job’. For some people - many people I suspect - it’s about the ability to get ‘a job.’
Marie Antoinette didn’t get it either.
OCCUPY DEADBEAT
Wall Street Crooks Got Rich
So I should Get My House For Free
I think they just want a job so they can pay the bills, including the mortgage.
If they wanted jobs, they would go find one or CREATE one. Not have temper tantrums in public inconviencing commuters, police, and the taxpayers who pay the police. I am just as upset about the current economic pickle the country is in. But it is the politicians’ (ultimately the voters’ doing) and not bankers. A “demonstration” really does not do much if anything but let people vent frustration - as noted above incurring even more cost.
Polly, yesterday you mentioned you still have your NJ address on your checks. Get new get upated checks. They’re cheap insurance for all things that can go wrong with mislabel checks.
Yesterday I ran across this story of a former marine telling vets they needed to go in and protect the people. He said he hadn’t gone into war to protect Wall St.
http://www.salem-news.com/articles/october032011/marines-wall-st-tk.php
I have to say, I’ve watched a lot of video of the protests and although I realize it could be edited it sure seems like it was the cops that were aggressive.
From the article, two different Marines chime in:
“My true hope, though, is that we Veterans can act as first line of defense between the police and the protester. If they want to get to some protesters so they can mace them, they will have to get through the Fucking Marine Corps first. Let’s see a cop mace a bunch of decorated war vets.”
“”That’s the type of support that may make an NYPD cop think twice before he decides to go all Tiananmen Square on a group of teenage girls, armed with chalk and cardboard signs”
The cops have been bought off buy the fascists, of course:
“they’re being paid off by groups like JPMorgan Chase, which recently donated:
“… an unprecedented $4.6 million to the New York City Police Foundation. The gift was the largest in the history of the foundation and will enable the New York City Police Department to strengthen security in the Big Apple.” -JPMorgan Chase”
Good to know the military, at least, appears to be above any bankster bribery.
“My true hope, though, is that we Veterans can act as first line of defense between the police and the protester. If they want to get to some protesters so they can mace them, they will have to get through the Fucking Marine Corps first. Let’s see a cop mace a bunch of decorated war vets.”
More sweet music to my ears.
+1
What exactly are you talking about? I took a class in commercial paper and I don’t remember any possible problem that a proper address could fix. You can write out a check on a napkin and as long as it has the correct numbers on it, a bank can cash it. Now, I trust that my bank would contact me before accepting it, but they wouldn’t have to - and a correct address is not required.
What exactly are you talking about? I took a class in commercial paper and I don’t remember any possible problem that a proper address could fix.”
there are some things you should not put on your personal checks unless you don’t worry about idenity thief. Your home address is one of these items NOT to put on your checks, phone number probably also a no no
I think a work address was suggested.
Anon, you seem to be unclear on the concept of unemployment numbers.
In case you didn’t know, high unemployment numbers (anything over 5% is high) means there simply AREN’T enough jobs for everyone.
It also means disposable income is in short supply and small failure is a direct consequence.
Not everyone is a smoothed tongued snake oil salesman, nor should they have to be.
“…small business failures…”
“But it is the politicians’ (ultimately the voters’ doing) and not bankers.”
Never heard of lobbyists, have you? And you certainly have no idea how the political process really works.
I know too many “victims” who have jobs and stopped paying their mortgage because their purchase or refi is upside down. My current LL has a job (works for the town of Palm Beach Gardens) took $150k out in a refi, didn`t pay the mortgage for 11 months while collecting $1,700 a month rent got a “workout” stoped paying again 4 months ago while still collecting $1,700 a month. Close to the same deal with my last LL, off the top of my head I can think of 7 more that I know that are doing the same thing and too many people I know who live in their houses without paying their mortgage for years to mention. So please “I think they just want a job so they can pay the bills” might be the case in Colorado I don`t know because I don`t live there. But that don`t fly here.
And because of this we’re supposed to give the Wall Streeters who have stolen trillions a pass?
Go after the big offenders first, I say.
Of course it’s easier to go after the little guy since he can’t afford $1000/hr attorneys to fight back.
I think that we have to remember that the Wall Street theives and Bankers were Middlemen for setting up the
borrower and the loan investor . They made the money on the transaction and than they made bets on the Ponzi Scheme .The issue would of been being forced to buy back their fraud . Some of the Banks got caught holding the bag on billions of dollars worth of faulty loan packages ,but the intent was to pass the crap to some other entity .
No doubt the Insurance Companies that didn’t have reserves to back their bets complicated the problem ,( as in credit default swaps .)
Than you add to this the outlandish leverage of the shadow world of banking and it was one more casino game that was designed to make money without proper reserves to back it .
So ,its all been a game on how to transfer the loss and liability to anybody but the true Thieves . Not to say that the crazy borrowers were sane and didn’t go nuts with easy money and some kind of a greed thing . A lot of brainwashing went on . But its scary how easy people can be brainwashed .
the point is how can things be brought back to some kind of sanity again .
“And because of this we’re supposed to give the Wall Streeters who have stolen trillions a pass?”
No pass for Wall Street No pass for Deadbeat
6 million x $1,687 x 12 = ?
Foreclosure delays could hold off housing rebound
By Julie Schmit, USA TODAY
7/14/2011 12:14 AM
Foreclosure actions — including default notices, auction sale notices and bank repossessions — will be filed on about 2 million homes this year, 1 million fewer than there should be based on the number of delinquent loans, says market researcher RealtyTrac
Nationwide, more than 6 million home loans are delinquent or in foreclosure.
How much is the average mortgage?
The average national monthly mortgage payment in the United States was $1,687 in mid 2006. By contrast the average rent was roughly $890.
http://www.usatoday.com/money/economy/housing/2011-07-13-foreclosure-delays-housing_n.htm - 45k -
http://wiki.answers.com/Q/How_much_is_the_average_mortgage - 68k -
“Of course it’s easier to go after the little guy since he can’t afford $1000/hr attorneys to fight back.”
I have posted here a couple of times the county records of Lynn Szymoniak of 60 minutes fame who is credited with discovering the practice of robo-signing. Ms. Szymoniak a lawyer discovered it going over her own foreclosure documents on a house about 8 miles from me in an upscale community where she has lived rent free for the last 4 years after taking out about $500k in “equity” according to the county records.
By the way, I AM THE LITTLE GUY! I pay my bills, I pay a few employees, I make monthly tax deposits and I try to give my kids what they need (it`s getting difficult). There is no retirement plan for me, there is no healthcare (anymore) there is no union or HAMP plan for me. So the little guy you refer to can pay his bills too or (gasp) downsize.
“Surrogate signers” signed countless foreclosure documents – with someone else’ name
Thomas said her supervisor was Renee Gaglione, whose name popped up in a Palm Beach county foreclosure case on Tuesday. Gaglione is also believed to have been the supervisor of Linda Green. Variations of Green’s signature appear on thousands of foreclosure documents, including the foreclosure of Lynn Szymoniak, a Palm Beach Gardens lawyer who specializes in white collar crime.
Szymoniak discovered the practice of robo-signing: employees at banks and mortgage servicing companies who sign sworn affidavits without any knowledge of the case. Linda Green is believed to be among the most prolific robo-signatures.
http://blogs.palmbeachpost.com/realtime/2011/03/30/surrogate-signers-signed-countless-foreclosure-documents-with-someone-else-name/ - 55k
“By the way, I AM THE LITTLE GUY! ”
Then why do you ALWAYS attack the little guys and defend the big guys? Stockholm Syndrome?
I attack what I see where I live like Lynn Szymoniak, a Palm Beach Gardens lawyer who specializes in white collar crime who took $500k out in “equity” lives rent free and cries victim, like my 2 LLs over the last 6 years who both work for towns and have full bene packages and pocket after tax rent money from me. Like the countless people I know who live for free. Defend the big guys? No thanks, throw the crooks in jail if you can or you can tell me who to vote for that will, cause I don`t see it happening.
Half the workforce is as “downsized” as they can get with the street their next step down.
72 million people.
At one time, half the workforce was middle class. That time was just 30 years ago.
I know too many “victims” who have jobs and stopped paying their mortgage because their purchase or refi is upside down.’
this must be that ” moral hazard” thingy bernake was talking about? If the FED bailed out the big banks the small guy might decide to lose his morals, stop paying his debt, think he was a big bank or somthing.
Hows that working out for you Dr Bernake ? he doesn’t care there are still plenty of tax payers to back his money machine.. or are there ?
Romney Lures Away Obama’s Wall Street Supporters in Race for Campaign Cash
By Jonathan D. Salant and Lisa Lerer - Sep 27, 2011 9:08 AM PT
Republican presidential hopeful Mitt Romney has raised more than twice as much money from Wall Street as Barack Obama — an edge gained in part by luring away at least 100 donors, mostly investors, who backed the president in 2008, according to data compiled by Bloomberg.
The former Obama donors are helping the former Massachusetts governor lock up Wall Street dollars as Romney races to financially outpace primary rival Texas Governor Rick Perry in advance of the Sept. 30 third quarter deadline for campaign fundraising.
“It’s going to be very hard for the president to bash the rich and create jobs at the same time,” said Anthony Scaramucci, 47, founder and managing partner of New York-based SkyBridge Capital LLC that manages $8 billion, who has switched support from Obama in 2008 to Romney. “I don’t think the country is about class warfare.”
…
“It’s going to be very hard for the president to bash the rich and create jobs at the same time,” said Anthony Scaramucci, 47, founder and managing partner of New York-based SkyBridge Capital LLC that manages $8 billion, who has switched support from Obama in 2008 to Romney. “I don’t think the country is about class warfare.”
Marie Antoinette didn’t get it either.
“I don’t think the country is about class warfare.”
Then Wall Street should stop it’s war against the 99 percent.
I’m not sure it’s fair to characterize a systemic theft operation as a “war,” is it?
Isn’t that why countries often go to war? To steal something?
I mean really, why are we occupying the middle east?
Perhaps not. But it’s the rich that have been screaming “class warfare” while doing the looting. And the damage has been immense, though in a different form than a typical war.
“fair to characterize a systemic theft operation as a “war,” is it?”
OK, Rape and Pillage.
You can’t reason with greedy bankers. The law is the only thing that restrains them. Free the lawmakers.
The top one percent’s financial warfare against the middle and working class has escalating tremendously over the past decade, aided and abetted by their marionettes in BOTH political parties.
“I don’t think the country is about class warfare.”
They constantly rag on the ‘free-loaders’- those too poor to pay federal income tax, but the second someone says they should pay a slightly higher income tax rate themselves, it’s class warfare.
Gimme a break.
HOMES
OCTOBER 8, 2011, 1:12 A.M. ET
China Housing Prices Inch Lower
By ESTHER FUNG
SHANGHAI—China’s housing prices in September recorded a modest month-over-month decline for the first time this year, according to a private market-data provider, indicating that the central government’s campaign to cool the housing market had achieved some success in moderating prices.
Housing prices in 100 major cities in China were a tad lower, or 0.03% down in September, after a largely flat month-over-month reading in August, China Real Estate Index System said Saturday.
The data provider said a survey of property developers and real-estate agencies showed that the average home price in September was a touch lower at 8,877 yuan ($1,392) per square meter from 8,880 yuan in August and but slightly higher than July’s 8,874 yuan.
The survey, which the company compiles together with online real-estate brokerage SouFun Holdings Ltd., is watched widely since China scrapped a national property price index in January.
Property developers in China are facing increased pressure from slowing sales and analysts said that credit conditions are expected to become increasingly severe for property developers.
Housing sales in major cities have slowed in recent months, after China implemented a series of measures to curb property speculation, including higher interest rates and limits on house purchases, as part of efforts to make homes more affordable and to head off potential social instability.
Property developers are facing a grim year ahead, with a likely slump in project starts set to drag on broader economic growth, said Capital Economics, adding that “policymakers have plenty of room to ease policy if growth begins to falter. Whatever the long-run health of the housing market, its current problems are mainly the result of deliberate government efforts to reduce speculative purchases and property construction.”
…
Well here we are…. closing in on the end of 2011. And the Housing Crime Syndicate is still playing it’s games, paying bribes to policy and decision makers, delaying the inevitable.
“And the Housing Crime Syndicate is still playing it’s games, paying bribes to policy and decision makers”
At least someone is paying.
Anti-Corporate Protests Spread to U.S. Capital
Oct. 7, 2011
Protests against corporate power in the United States took root in Washington on Thursday, with several hundred people occupying Freedom Plaza outside city hall to demand progressive reform. Video courtesy of AFP.
Looks like they’re starting to get it.
Our biggest problem is the lack of a “voter initiative” at the federal level. Most states provide for such initiatives, where enough signatures on a petition will put the issue before all the voters for an up or down vote. With the duopoly in charge, the only way to change things is direct, unrelenting pressure on them.
The alternative would be ugly. Someone yesterday amazingly suggested the Pol Pot solution. Really. The trouble is, being educated most if not all of us here would be liquidated or worked to death by such a regime. Let’s see, what’s 21 percent of 311 million people?
Are you kidding? California is the perfect example of states run by initiatives. Initiatives have X problems. First, there is no coordination. So, you end up with a crazy quilt of policies that greatly constrain representatives in ways you do not want. Second, an initiative on the ballot cannot be revised. Third, initiatives allow for never-ending debate sponsored by the wealthiest members of the state. In California, every election has an initiative sponsored by either the insurance companies or the trial lawyers or both. They often have similar titles, and attempt to carve out more money for their industry at the expense of the common good. Fourth, the initiative process means that every election one receives a gigantic “voter guide” with the actual text of the initiative printed in teeny-tiny type, and one would need to be a Supreme Court justice with a staff of clerks to figure out what is actually being proposed. Yet, you are supposed to vote up or down — no amendments allowed — on the rule. Once you do so, the law can be variously interpreted by the courts, and, depending on the language in the initiative you may need another initiative to amend it. This is why Prop 13 is killing California — the courts interpreted it to allow businesses the same treatment as residences, which means that McDonald’s will be paying one level of property tax while the Burger King across the street, with exactly the same facility, will be paying much higher property tax. The cost of the drain of corporate property taxes is enough to solve the fiscal crisis of California — and all this because Prop 13 ALSO made one need a 2/3rds vote to change tax laws. So, corporate money undermines any effort to change the law.
We don’t need more things to vote on. We need people to vote ruthlessly to kick out people who do not make things better, regardless of party. And, we need people to stop voting on God, Guns, and Gays and, instead, vote their economic interest. If that happened we would be able to solve our problems.
IAT
And, we need people to stop voting on God, Guns, and Gays and, instead, vote their economic interest.
…OR…we need to accept that God, Guns, and Gays are important issues to some people, and learn how to work with them on things that everybody can agree on, despite differences on other things. I personally guarantee that to be a more successful tactic than telling them to stop believing what they believe.
I totally am fine with someone believing God exists, they need a gun, and they hate gays. The problem is that any politics of culture will inevitably destroy any coalition focused on economic justice. Why? Because the cold rationality of economics is melted away by the heat of hate or the passion of love — the stock in trade of cultural warriors.
So, it is not intent that prevents my working with people who push a politics of culture, it is that any politics of culture destroys the ability of its adherents to strike deals that give everyone something, because culture is inherently a zero-sum game. You can’t split the difference between gays can or cannot marry, for example.
IAT
While I understand that some will try to prevent it, I reject that it’s not possible to agree to disagree on some subjects while working together on others.
It’s hard to change the opinion of someone who’s eternal soul depends on him/her following 2000 year old historical documents written in Greek to the literal letter. How did so many atheist end up in the Nordic countries anyway?
Carl,
The problem is not that some will try to prevent it. Some are always trying to prevent poor people from coming together to establish and defend their rights. The problem is that once you veer away from economic issues, the poor is as dividable as any group of people, such that those who try to prevent unity will succeed.
There is nothing special about the poor that makes them divide — the rich would be just as dividable if they focused on Jews versus Episcopalians versus polyamorists versus monogamists versus . . .. What allows the rich to unite is that they ignore those differences in politics and push their financial agenda. They leave those distinctions to the church or country club. And they’ve been cleaning the clock of the poor for decades because of that singular focus. One wonders when the poor will concentrate their attention in a similar fashion.
IAT
Astute observations, IAT.
I think the reason the poor (and what’s left of the middle class) don’t unite to protect their economic interests as successfully as the rich do, is because they don’t have the same over-riding obsession with money that the rich have.
That obsession is pretty much what makes the rich rich. That, or inheriting it.
Exactly IAT. Exactly.
They win because they can work together. While I like to champion J6P, the reality is that J6P is about as selfish and stupid as it gets when it comes to group cooperation.
This is the biggest reason the PTB despise and mistreat the poor. Because they can.
“The trouble is, being educated most if not all of us here would be liquidated or worked to death by such a regime.”
I like to think I would be one of the frogs who jumped out of the pot before the water boiled that merrily.
In the 1970s in high school, it was stylish to announce that you are a Democrat. In one of my classes we were asked which party we would identify with if we were old enough to vote. The “in” crowd walked to the Democrat side.
It’s stylish to denounce the goose that lays the golden egg.
Steve Jobs did not care about what was stylish back in those days.
Most of the stylish people today are hell bent on discouraging future Steve Jobs types of people who hunger for wealth.
$8 billion net worth.
I walked to the Republican side - Didn’t know about the LP until two years later. Didn’t realize the Repubs were about to be hijacked by the Bible thumpers until two years later.
This is probably going to break your heart:
” 99.6% of Steve Jobs’ campaign donations have gone towards democratic candidates and the DNC. His largest single contribution totaled $100,000 to the DNC in 1996. He has endorsed Ted Kennedy, Nancy Pelosi, Bill Bradley, and others.”
Google it.
You create a strange and biased correlation between being in the “in” crowd and “stylish” and being a democrat. I am guessing you did not like the “stylish” “in” crowd in high school and have been taking it out on democrats ever since. — Possibly your classmates actually agreed with the democratic view and it was not an attempt to seem cool? (Sounds like these people already were cool anyway.)
“This is probably going to break your heart.”
It does.
Sanction of the victim.
99.6% of Steve Jobs’ campaign donations have gone towards democratic candidates and the DNC. His largest single contribution totaled $100,000 to the DNC in 1996. He has endorsed Ted Kennedy, Nancy Pelosi, Bill Bradley, and others.
http://www.atlassociety.org/steve-jobs-hero
An opposing opinion to your assertion.
“An opposing opinion to your assertion.”
They’re not in any way denying that Jobs donated that money to Dems. They’re just trying to claim his mantle as theirs. And if he was the genius everyone says he was, then surely he was aware, and had laughed off, the assertions of the Randians.
And your hero-genius heavily supported the Democrats. LOLOLOL
Whis assertion is that? The article says nothing about his campagn contributions. It also ignores the fact that the computer industry was built on corporate welfare.
“…Steve Jobs types of people who hunger for wealth.”
I don’t think greed motivated him at all. He led a far from ostentatious lifestyle, as compared to say, Larry Ellison.
Now there’s a money grubbing prick if I’ve ever seen one!
Hopefully Job’s autobiography will shed some light to what drove him. I personally think it was the thrill of knowing your where able to shape the future in some way.
Makes the alarm snooze bar unnecessary if you get my drift.
All the fawning over Saint Jobs fails to mention that he denied paternity of his first daughter, Lisa, claiming he was sterile and leaving her mom to raise her alone on public assistance. Apparently he did acknowledge her later on, and named his failed NEXT computer prototype after her, but a man who turns his back on his own flesh and blood is no man at all in my book, no matter how many billions he makes.
Money did indeed motivate him. You should read Wozniak’s book.
Ben cut out my last post. I thought it was because I used the word, “prick”, but obviously not.
Maybe because I used the pejorative, “Meg Whitman”.
I didn’t cut out that post, I approved it.
Apologies, it was just a delay. Thanks Ben -
It appears that Romney’s plan is to go for the Wall Street money while playing the “oblivion” card to Wall Street corruption and the “class warfare” accusation card against the Occupy Wall Street folks.
By contrast, Obama has been heard uttering sympathetic comments in the general direction of the protestors.
My hunch is that this schism will become a defining feature of the presidential campaign over the next twelve months.
I dunno, Herman Cain is looking like a contenduh. I said a while back that it wouldn’t surprise me if he ended up the nominee. And he has a LONG list of credentials, including a stint at the Federal Reserve (not that this delights me, but he would know something of the workings if he decided to relieve the people of the burden of central banks).
The main thing Cain appears to offer is great raw material for Jon Stewart.
Thursday October 6, 2011
Indecision 2012 - Rising Cain
Herman Cain doesn’t have facts to back this up, but he believes the Wall Street protests have been orchestrated to distract from the Obama administration’s failed policies.
The first things that crossed my mind about Cain was:
1) That the majority of voters who will vote for a black candidate will vote for the Democrat black candidate over the GOP black candidate.
2) A lot of non black people who would normally vote GOP will vote 3rd party or stay at home on election day.
What if the GOP guy is much darker than the other guy? The darker the better, no?
Sometimes those right-wing wackos who appear to dislike blacks will fall in love with a black person who is a hard-core conservative like Clarence Thomas. Whether they’ll go all the way and vote Cain for president will be an interesting test of this phenomenon.
He probably won’t get the Republican nomination. In that case, he’ll should have a very prosperous career on conservative talk radio, Fox News, the rubber chicken circuit, etc.
If you want to believe that, I won’t stop you.
Let me mention that the RNC is looking like a committee without a candidate about now, as they have failed to embrace Romney out of fear their evangelical base will not support him. This strikes me as a grave blunder; who would the evangelistas vote for if not Romney: Obama instead?
This morning there is an article about some evang pastor who backs Perry saying that Romney is not a Christian and belongs to a cult.
The RNC better start embracing their inner Cain.
My faith is a religion; yours is a cult. Got it?
Let me mention that the RNC is looking like a committee without a candidate…
Their slate candidates reminds me of the Seven Dwarves. And sorry if I just insulted other HBB-ers who are short of stature.
Oops. I meant to say slate of candidates.
“…slate candidates…”
I thought you were on to something there, Slim.
slate
noun \ˈslāt\
Definition of SLATE
1: a piece of construction material (as laminated rock) prepared as a shingle for roofing and siding
2: a dense fine-grained metamorphic rock produced by the compression of various sediments (as clay or shale) so as to develop a characteristic cleavage
…
You said “cleavage”.
Fixr like clevage. But I digress……
“….a dense, fine grained metamorphic rock….”
3: A material similar to 2:, but resides under the skull of early 21st Century USA leadership.
who would the evangelistas vote for if not Romney: Obama instead ??
They will stay home…
Every voter who normally would vote Republican but instead stayed home, rather than voting for Romney, would be an effective vote for Obama.
Or will vote 3rd party, which is the functional equivalent of staying home.
“Or will vote 3rd party”
That’s why I think it’s an excellent time for Ron Paul to run as an independent, after he loses in the primaries. He could pick up a lot of evangelicals who are looking for a alternative to Romney. Might even make it a three way race, if he gets enough of Obama’s youth vote.
I don’t see Evangelicals who reject the Republican nominee going for Paul. I think it would be more likely some Evangelical candidate would make a doomed 3rd party run and guarantee an Obama victory.
“I think it would be more likely some Evangelical candidate would make a doomed 3rd party run and guarantee an Obama victory.”
Keep hope alive.
It is too early to predict what the main theme of the presidential campaign will be. OWS could fizzle out by then, or something much bigger could happen.
“Too early to predict…”
I called it a hunch, not a prediction, for a reason.
Community organizing is all he(obammy) knows.
When things get tough one tends to fall back on what he/she knows and is comfortable with.
If so, then I would say this Occupy Wall Street movement plays well into his hand. Good luck to Herbert Cain, Mitt Romney or whatever out-of-touch candidate the GOP can field in matching Obama’s political skill with this issue.
“Community organizing is all he(obammy) knows.”
And it will get him relected regardless of which “Let them eat cake” candidate the GOP fields.
Political reality sux for Republicans at the moment…
Polls show right now that Obammy would lose against ANY of
the Republican challengers if the election was held today.
And some show Obama as winning:
http://www.nationalpolls.com/2012/obama-vs-republican.html
And he hasn’t even started using the “community organizing ” thing yet.
Not that it matters, no matter who wins, the economy will continue to suck for the 99%.
“Not that it matters, no matter who wins, the economy will continue to suck for the 99%.”
Isn’t that the truth.
“Obammy would lose against ANY of
the Republican challengers if the election was held today.”
Put your money where your mouth is, unc. I just checked a gambling web site where you can bet on the 2012 presidential race. Obama is even money. Romney is 5-2, Bachmann is 100-1, Perry is 12-1, Cain is 5-1, Ron Paul is 75-1, Palin is 150-1.
You could make some money off the fools. Or find out who the real fool is.
Wow. Love the group thinking and wishful thinking here. I was taken a back if I stumbled upon the dailykos.
Comparing Obma with Romney, Perry, Cain is like comparing bud light vs miller light. Real men drink single malt, Ron Paul that is…
Kucinich or Nader are Bourbons - they will do if single malt is not available.
If only we could find a candidate named Glen! -
10/07/2011 @ 2:31PM
Volcker Rule Will Hit Goldman Sachs, Morgan Stanley Hardest
The Volcker rule scared bankers perhaps more than anything else coming out of the Dodd-Frank reform, and now a leaked draft of the rule shows regulators may be giving them some breathing room.
The rule, named after former Federal Reserve Chairman Paul Volcker, was put forth to restrict banks from making speculative bets and trades with their own capital. Banks made huge profits on what’s known as proprietary trading in the years leading up to the financial crisis (over $15 billion by some measures), and were rightfully nervous about how the Volcker rule would eat into their bottom lines in the future.
…
Volcker Rule Will Hit Goldman Sachs, Morgan Stanley Hardest
Awwwww, the poor things.
Ryan, Angelides Disagree on Volcker Rule’s `Burden’
Oct. 7 (Bloomberg) — Philip Angelides, chairman of the Financial Crisis Inquiry Commission, and Timothy Ryan, chief executive officer of the Securities Industry and Financial Markets Association, talk about a proposal to limit risk-taking by U.S. financial institutions, known as the so-called Volcker rule. They speak with Lisa Murphy on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)
Real Estate Markets
Real Estate Market Mystery: Record Low For Mortgage Rates, But Nobody’s Buying
By Alison Rogers | @RE_Rookie | October 6, 2011
Fact: 30-year-fixed mortgage rates dropped below 4 percent for the first time on record, according to Freddie Mac, which has tracked rates since 1971. Yet, the stats show that Americans have not responded by rushing to buy houses.
Fact: Real estate investment trusts (REITs), a breed of stocks that pool investments in underlying real estate like hotels or apartments, dropped 13.3 % in the 3rd quarter, marking the first time in two years that the sector has gotten hammered.
Fact: The “conforming loan limit” — the point at which mortgages are supported by quasi-governmental agencies — dropped this past weekend by around $100,000, and rates for medium-sized loans jumped about one-quarter of 1 percent.
Fact: In an analyst’s report cited by Businessweek, Merrill Lynch cut its forecast for issuance of commercial mortgage-backed securities in 2011 from $45 billion to $25 billion, fairly close to the $20 billion amount that’s already been issued so far this year.
Add up all these facts and pause a moment. The sound you hear is gears grinding, without the grease of credit. It’s always a tough pronouncement to say that credit is tightening, because lenders — who are the parties who could really confirm such an action — never want to hang a “gone fishin’” sign on the office door.
…
I still can’t believe Don Lupre killed hisself. He was a late night hero in my dorm rooms.
I wonder how many man hours were spent among my friends watching Don Lupre under the influence?
Sounds like he wasn’t looking forward to going to the federal pen.
Don’t do the crime if you can’t do the time.
You don’t get it. He was DON LUPRE. Why do you hate Money Making Secrets?
Beer me.
I call it poetic justice.
Beer me.
I call it, “worse than expected!”
DRINK!
Are high-principle, low-down loans going out of fashion? No matter, as affordable lending programs were never really intended for anyone who can afford a home costing over half a million dollars, anyway.
September 27, 2011, 4:37 PM ET
Loan Limits Are Falling, But Does It Matter?
…
Real estate agents, particularly in California and the Northeast, have been worried that the market will suffer because buyers of expensive homes will have less access to credit. Lobbyists for real estate agents, mortgage bankers and home builders pressed in Congress to extend the current limits, but had no luck.
Many borrowers who were able to get loans backed by Fannie and Freddie will now have to look for “jumbo” loans. But those typically come with high down payment requirements, strict underwriting standards and higher interest rates. Some potential buyers will inevitably be shut out.
Jay Brinkmann, chief economist at the Mortgage Bankers Association, says the change will have the most significant impact on FHA borrowers. Many have no other way to qualify for a mortgage other than the FHA, which allows down payments as low as 3.5%. Some of them will be forced to buy smaller homes or drop out of the market entirely.
But Mr. Brinkmann said the stock market drops and gloomy economic outlook are much bigger problems for most consumers. The loan limit change “will change the nature of some of the loans that are going to be made, but I can’t say it will be a shock,” Mr. Brinkmann said.
A Federal Reserve study released last week calculated that only about 1.3% of purchase and refinance loans guaranteed by Fannie and Freddie and made last year would have been impacted had those lower limits been in effect. Adding in FHA loans, another 2.1% of home-purchase loans would have been affected.
…
“But those typically come with higher down payments, stricter underwriting standards and higher interest rates…”
Gee, checking to make sure that a bank might actually get it’s money back. How Un-American.
Must be a bunch of Socialists behind those policies…..
I’ve always why the banks get a pass on due diligence while the rest of us get our asses handed to us if we don’t.
10/07/2011 @ 1:30PM
Twin Threat: Foreclosure Cycle Doubles, Default Amount Increasing
Jim Saccacio
Two troubling trends — that are not employment-driven — are slowing the residential housing recovery: (1) Average default amounts are increasing for properties entering the foreclosure process; and (2) foreclosure timelines are getting longer. These two new developments could delay the foreclosure crisis.
In California, for example, the amount that a borrower is in arrears has increased 40 percent, rising from $16,609 in 2009 to $41,974 in 2011, according to our data here at RealtyTrac. That’s an amazing increase. If home prices continue to fall, these numbers will almost certainly negate any equity value and make the house even more upside down. How much harder do we need to make the negotiations between the homeowners and the banks? Who’s going to keep paying for the costs, the taxpayers?
Settle sooner, I say.
Meanwhile, as banks struggle with large demand for loan modification programs, the foreclosure timeline has doubled or even tripled in some areas, with the U.S. average foreclosure timeline today at 318 days, according to a RealtyTrac analysis. That’s a year without paying a mortgage while foreclosure proceedings drag on. And in New York it’s even longer — it takes on average 966 days, or 2.6 years, to foreclose, up from 263 days in 2007. Add to this number the disposition time it takes a lender to sell a bank-owned property and you can see that we’re talking about a housing recovery period that will take several years.
Clearly, intervention — both by the federal government and the lender mishaps such as “robo” signing — has slowed the housing recovery. The twin threats of rising defaults and longer foreclosure timelines will only lengthen the foreclosure crisis.
…
Read an article yesterday………seems that, thanks to 20% un/underemployment, and downward wage pressure on J6P, “Prime” is rapidly turning into “Sub-Prime”.
Wall Street and the rest of the investment world is recognizing this. The big banks are now adding supposedly “Prime” loans to the “Mark to Fantasy” list.
You know it.
I’ve been seeing a lot of commercials for insurance lately, and at the same time the financial industry - including the insurance industry - have been cutting back on expenseses (i.e. employees).
So, what gives?
My guess is behind it all is the dismal return the insurance industry is getting on the float - the float meaning the money they have collected from policyholders and have not yet paid out. If the return on the float is not there then to meet their contractual commitments they will have to continually raise new money. If this is the case then this downturn (or depression or whatever) has morphed the insurance industry into nothing more than a ponzi scheme.
Anyway, just a thought I want to throw out for discussion.
“If the return on the float is not there then to meet their contractual commitments they will have to continually raise new money. If this is the case then this downturn (or depression or whatever) has morphed the insurance industry into nothing more than a ponzi scheme.”
Well, the first response in the insurance cycle is to jack up rates, and that has definately happened. Another pro-cyclical factor that floods people with money when the economy is up and takes it away when it is down.
“Another pro-cyclical factor that floods people with money when the economy is up and takes it away when it is down.”
” … and takes it away when it is down” translates into broken promises.
Twenty-one years ago I bought an insurance policy, that would pay out fifty thousand pounds, on death or twenty-five years which ever came first. The representative who sold me the policy actually said it likely to pay much more, but they liked to be conservative with their claims. Well with three years and a bit to to go it looks like I might get forty thousand (if I’m lucky).
“If the return on the float is not there then to meet their contractual commitments they will have to continually raise new money…”
Got an annuity? Don’t count on that promise being kept.
Got an annuity? Don’t count on that promise being kept ??
I have wondered for years about that BIC…
“I’ve been seeing a lot of commercials for insurance lately”
It’s the time of year people (at lease those with jobs that offer “cafeteria plans”) choose their benefits for the upcoming year. It’s the annual opportunity to change providers.
This.
Good discussion topic, combo.
As mentioned a few weeks ago, I met up with a former coworker who’d been fired from the job he had while we worked for the same organization. He’d just re-invented himself as a life insurance agent.
For me, he offered an “investment” that I could use to save up for a sabbatical. Well, silly me, I fell for it. And came down with a significant case of Buyer’s Remorse.
What was feeding my symptoms was the fact that my “investment” was a whole life insurance policy.
Which is a commission and fee bonanza for insurance agents and the industry they represent. It’s not so hot as an investment.
So, I visited my attorney, who advised me not to have any further contact with this agent. He also told me to contact the insurance company and cancel the policy.
Long story short: I cancelled the policy and got all my money back. Wish I could say the same for all the time that getting into and out of this deal took. Boy, did that gobble up the hours.
What’s especially infuriating about this whole story is that I, as a single person with no dependents, was being targeted as a life insurance customer. I don’t need life insurance. And every bit of financial literature I’ve read since this debacle has said the same thing. I’m sure the insurance industry is aware of this as well.
So, yes, I agree. The insurance industry’s getting desperate.
Term life insurance if there is someone who depends on your income to live. That`s it, whole life insurance policy = rip off.
“I met up with a former coworker who’d been fired from the job he had while we worked for the same organization”
“For me, he offered an “investment” that I could use to save up for a sabbatical.”
Since your former coworker was so concerned with your well being I would suggest you return the favor by buying him or her a weeks hunting trip and a lucky hat to wear.
Here is a picture of the lucky hat, tell them we can hardly wait until “opening day!”
http://icanhunt.com/2011/07/14/lucky-hat.aspx - 74k -
I love it!
Slim, information has been available freely for years that those who are single and with no dependents should not get life insurance. The ex-colleague did you a great disservice.
Reminds me of this lady I know who has been trying to push annuities and all sorts of “personal finance” setups on me. If I want a variable annuity, I would get one from Vanguard. Hers was more expensive. Hardly any big fund family can undercut Vanguard’s expenses. I will stay with their excellent index funds. Vanguard allowed me to exchange the last of my index funds into a new admiral fund with a .10 ratio. I like being my own financial advisor. Low expense stock mutual funds during the times when people are talking down the market. That rocks! Stock markets are cyclic. In my view, we are in the eleventh year of the U.S. Stock market depression. Probably will be at the half way point in 2012, but dollar cost averaging is the way to get through this and come out ahead.
“For me, he offered an “investment” that I could use to save up for a sabbatical. Well, silly me, I fell for it. And came down with a significant case of Buyer’s Remorse.”
Hope ‘ya didn’t give him a tickle too.
“So, what gives?”
Cutting costs is job #1 in Corporate America. And a lot of an insurance company’s business can be automated. The more people you can steer to the “self serve” website or the “Press one for English” automated phone system, the more people you can fire.
dismal return the insurance industry is getting on the float -”
flat growth doesn’t slow down claims I guess, bummer. I think it might be a bad time to own insurance companies , bad time to own allot of companies if this is a secular change like I think it is.
Brandy (You’re A Fine Girl)
Originally performed by Looking Glass, a rock quartet from New Jersey formed in 1969
The song was inspired by a girl in Lurie’s life, but the story is fictional
However, this song was inspired by a girl in E.R. Bradley’s Saloon.
“Each month, Epstein draws a small crowd to her Foreclosure Hamlet happy hour at E.R. Bradley’s Saloon.”
” attracted by a feisty nurse in a cute pink scarf who refuses to surrender.”
There’s a port, on a eastern bay
And it sold a hundred shacks a day
Lonely Deadbeats, pass the time away
And talk about their loans
There’s a girl in foreclosure town
And she works layin’ whiskey down
They say “Feisty, fetch another round”
She serves them whiskey and wine
The Deadbeats say “Feisty, you’re a fine girl” (you’re a fine girl)
“What a good wife you would be” (such a fine girl)
“But my loan is three years delinquent, can`t you see”
Feisty wears a braided chain
Made of finest silver from the North of Spain
Bought, with those refi gains
A game that Brandy loved
He called on a summer’s day
On the phone, from far away
But she made it clear she couldn’t pay
It was a Liar Loan
The Deadbeat said ” Feisty, you’re a fine girl” (you’re a fine girl)
“What a good wife you would be” (such a fine girl)
“But my loan is three years delinquent, can`t you see”
Yeah, Feisty used to watch his eyes
When he told his Deadbeat stories
She could feel the Housing Bubble rise
She saw its ragin’ glory
But he had never told the truth, lord, he was no honest man
And Feisty does her best to understand
At night when the bars close down
Feisty walks through a silent town
Don`t pay her loan, she`s upside down
She still can hear him say
She hears him say ” Feisty, you’re a fine girl” (you’re a fine girl)
“What a good wife you would be” (such a fine girl)
“But my loan is three years delinquent, can`t you see”
This is an awesome story.
Fate of Eurozone bailout rests on Slovak politician Richard Sulik
With a vote Tuesday in Slovakia on the proposal to aid Greece, Sulik, who has opposed the plan, has the power, some say, to save Europe’s economy or push it over the edge, with global consequences.
Richard Sulik, seen here last month in Bratislava, the Slovak capital, is the leader of Slovakia’s Freedom and Solidarity party, a junior partner in the ruling coalition. He and his party have expressed opposition to expanding a Eurozone bailout fund to aid debt-ridden countries such as Greece. (Bela Szandelszky, AP / October 8, 2011)
By Henry Chu, Los Angeles Times
October 7, 2011, 6:09 p.m.
Reporting from London—
For a man accused of holding an entire continent hostage, Richard Sulik cuts a modest figure. With his shiny pate and geeky glasses, he looks more like a mild-mannered economist than a rough-and-tumble politician.
In fact, he’s both. But it’s as leader of the Freedom and Solidarity party in oft-overlooked Slovakia that Sulik finds himself in the unfamiliar glare of the international spotlight. He has the power, some say, to save Europe’s economy or push it over the precipice, with serious consequences for the rest of the world.
The Slovak parliament is scheduled to vote Tuesday on a plan to beef up Europe’s bailout fund for financially strapped nations such as Greece. Most experts agree that broadening the fund’s powers is a crucial, if limited, step in taming the debt crisis that has had financial markets somersaulting and fed worries about a double-dip recession.
Fifteen of the 17 nations that use the euro currency, including heavyweights Germany and France, have signed on to the plan, with Malta expected to approve it within days. But it requires approval by all the Eurozone countries, and a thumbs up from Slovakia, which will probably be the last to vote on the measure, is in grave doubt.
For that, thank Sulik. Why, he asks, should his compatriots, among the poorest residents in the Eurozone, open their wallets to bail out the Greeks, who are not only richer but whose government dug its own hole by irresponsible overspending?
…
Czech Republic and Slovakia used to be one and the same country. Their breakup was peaceful and relatively smooth. Hmmmm.
Part Slovak on dad’s side here. One of the reasons why Slovakia is being such a pain in the rear stems from the fact that they had to make enormous strides to get into the Eurozone. Just over twenty years ago, Czechoslovakia– the fake amalgamation of two ethnic groups fused together after WWI –was a more or lesss typical Soviet puppet state with an economy that featured all the ‘benefits’ provided by central state planning. The Slovaks had even less industry than the Czech part after 1948, and the planners decided to make Slovakia the armorer of the Warsaw Pact to reduce the agricultural sector. By the time of independence in 1993, what industry the place had was virtually obsolete since they had sold to a captive market consisting of “fraternal socialist nations”.
From that start, the country managed to embrace Western democracy and get its budget situation under control to meet the criteria for acceptance into the Euro. The view there is that they worked mighty hard to get where they are, and as such they are not happy to see Greece, Ireland and possibly Italy and Spain, who for generations enjoyed prosperity while the Slovaks got to march in May Day parades, get bailed out on their backs.
Thanks so much for sharing your personal insights.
That seems like their opposition is more on principal than a bargaining position. That’s problematic for those that need a deal to happen.
Saturday October 8, 2011
The gloomy outlook takes its toll
What Are We To Do
by LIN SEE-YAN
WITH every passing day, the shelf-life of eurozone’s rescue package is getting shorter. On July 21, eurozone leaders agreed to a second Greek bailout (see Greek Bailout Mark II: It’s a Default in this column on July 30, following the first, Greece is Bankrupt on July 2). European parliaments have yet to complete ratification to expand the 440 billion euros bailout fund (European Financial Stability Fund or EFSF). Already, talk has shifted to expanding the EFSF in the light of escalation of the crisis.
Frankly, the fund is just not large enough to halt the contagion. It’s a matter of market confidence really the larger, the better. About one-half of the fund is already committed or utilised with more demands coming on. Greece will miss the deficit targets for this year and next despite austerity, showing the drastic steps taken to avert bankruptcy are not enough. The crisis is boiling over. Eurozone ministers have since delayed the release of 8 billion euros cash scheduled for Oct 13, threatening to revisit the deal where private bondholders may be asked to take a higher “haircut”. This has rattled markets and raised fears of an imminent messy default. Estimates are that with a 60% haircut (21% now) for private bondholders, Greek banks would suffer another 27 billion euros write-down, wiping out their capital. Inevitably, the fall-out will have much wider repercussions.
…
Follow Up | SATURDAY, OCTOBER 8, 2011
Europe’s Comedy Hurtles Toward Tragedy
Things aren’t funny anymore: The threat to the euro from the sovereign-debt crisis looms larger every day.
It would be fun, if not fitting, to liken the so-far futile action of Europe’s political and monetary leaders to the anarchic shenanigans in a Marx Brothers film. But the euro zone’s sovereign-debt fiasco, which has been playing out in Berlin, Paris, and Brussels for more than a year, is unfunny and getting more so by the day.
The Greek 10-year bond is trading at 40 cents for each dollar of face value, down from about 55 cents in the spring, and prices of five-year credit-default swaps—a kind of insurance—on Greek bonds have ballooned out. It now takes about $5 million to insure $10 million of the securities.
On Oct. 2, Greece said its 2011 budget deficit would be 8.5% of gross domestic product, missing the 7.6% target set in last year’s €110 billion ($147 billion) European Union/International Monetary Fund bailout. Greece’s debt of €340 billion or so will climb to more than 170% of GDP in 2012 as the economy shrinks another 2.5%, after three recessionary years already. Lending more to the country most likely will only worsen matters, both for the euro zone and the Greeks.
And it needs to be more crewcut than trim—50% or more off the top, please.
This surprises no one, least of all our readers. Since May 2010, Barron’s has consistently said that a restructuring of Greece’s debt was needed. More recently, we called for a 50% reduction to the face value of its sovereign bonds, combined with recapitalization of its banks (”How to Fix Greece,” May 30). Combined with a sustainable plan for Portugal and Ireland, it would go a long way toward easing the sovereign-debt problem.
BUT EVEN THAT MIGHT NOT BE ENOUGH.
…
Remember, the Greeks practically INVENTED theater.
A comment I made yesterday implied that additional security around the White House may have been in response to possible demonstrations from the OWS crowd. I took a closer look as I was going home. There was a foreign flag flying over Blair House (usually means a head of state is in residence), so I think that the extra security was probably because of that. Tunisia if anyone cares.
And here I thought it was because the President was hosting the 1985 Chicago Bears at the White House. Silly me.
Da Bears.
Fitch downgrades sovereign debt ratings for third and fourth-largest eurozone economies
By Associated Press, Published: October 7
ROME — The Fitch agency downgraded its sovereign credit rating for Italy and Spain on Friday and said its long-term outlook for both countries was negative, citing high debt and poor prospects for growth.
Separately, Fitch also said it was keeping Portugal’s debt rating on watch for a possible downgrade, with a decision due by the end of the year. Portugal was the third and latest eurozone country to receive an international bailout package after Greece and Ireland.
The reports are a blow to Europe’s hopes of containing the debt crisis that has already seen three countries bailed out. Italy and Spain have the eurozone’s third- and fourth-largest economies and are widely considered too expensive to rescue.
Fitch downgraded Italy’s creditworthiness from AA- to A+, citing high public debt, low growth and the “politically technical and complex” solution necessary to fix Italy’s financial ills and earn back the trust of investors.
…
8 October 2011 Last updated at 07:17 ET
Sarkozy discussing EU debt crisis with IMF’s Lagarde
IMF chief Christine Lagarde (left) with German Chancellor Angela Merkel in Berlin, 6 October Ms Lagarde (left) has already met Mrs Merkel
IMF chief Christine Lagarde has gone into talks in Paris with French President Nicolas Sarkozy on the eurozone debt crisis.
The meeting is part of a flurry of weekend activity which will also see Mr Sarkozy visit Berlin for talks with German Chancellor Angela Merkel.
They will discuss how to help banks over-exposed to sovereign debt.
The European Commission has urged member states to draft a bailout plan to restore confidence in banking.
However, Germany and France, the eurozone’s dominant economic powers, have yet to agree on the way to proceed.
…
I have the sense that this month is the end of the line for resolving the euro zone debt crisis.
The Irish Times - Saturday, October 8, 2011
Sarkozy and Merkel divided on EU fund for banks
ARTHUR BEESLEY, European Correspondent
GERMAN CHANCELLOR Angela Merkel and French president Nicolas Sarkozy are struggling to reconcile deepening divisions over the deployment of Europe’s bailout fund to provide capital to governments for bank rescues.
As the French and German leaders seek common ground at a dinner meeting in Berlin tomorrow night, European regulators are racing to develop stricter criteria to apply in stress tests on weakened euro-zone banks.
EU leaders are under pressure from the global powers to take decisive action at a summit on Monday week to tackle the escalating sovereign debt crisis. The stress test will be pivotal as it will determine how much new capital the banks need and it may yet include a sovereign default scenario.
In a sign of further strain last night, Fitch credit-rating agency downgraded Italy and Spain. Fitch attributed the downgrades – to A+ from AA- in the case of Italy, and to AA- from AA+ for Spain – to their weakened sovereign risk profile as the debt crisis escalates.
The move – following downgrades of Italy by Standard Poor’s and Moody’s – will increase the borrowing costs of the two countries at a time when the European Central Bank is buying their bonds to keep their debt at a sustainable price.
…
Comment by In Colorado
2011-10-07 08:53:37
“In the end, it’s the Mortgage holder’s decision on whether or not to foreclose and evict. If they don’t and it becomes common knowledge, then why is ANYONE surprised that some will take advantage of that?”
If that is the way you are going to look at the deadbeats situation then I guess you would have to extend the same courtesy to the Wall Street criminals.
In the end, if you are getting away with making huge amounts of money by loaning money to people who could never possibly pay it back and that you never expect to be paid back because you are going to chop it up and sell it as AAA to unsuspecting investors and it becomes common knowledge, then why is ANYONE surprised that some will take advantage of that. If you can get away with it, it`s all good?
I choose not to extend that courtesy to either group and I am suprised and I am PISSED! Both groups are dirtbags.
Hey,
If you give away free stuff, are you surprised that people will show up and take it?
I choose not to extend that courtesy to either group and I am suprised and I am PISSED!
Relax, they will eventually be evicted and since their credit will be trashed they won’t be able to buy another house (get a morgage).
If anything bothers me it’s that the banks get to socialize their losses, and that would happen whether or not there were squatters in those millions of unsellable surplus houses.
With all due respect, I think the numbers of FBs in this situation will be far too great for that. Because the stupid w/money will continue to be stupid w/money, it is my opinion they will be quickly forgiven their sins so that may again be fleeced and prices can be supported. After all, if these people aren’t out supporting the economy despite the damage they do to themselves how can we expect others to go out and pick up the torch?
Relax, they will eventually be evicted and since their credit will be trashed they won’t be able to buy another house (get a morgage).
Time will tell.
“I choose not to extend that courtesy to either group and I am suprised and I am PISSED! Both groups are dirtbags.”
Bull$hit. You ALWAYS extend that courtesy to the banksters, and NEVER extend that courtesy to the little guys. Except when it’s pointed out to you, and then you act like there’s some balance to your propaganda. There isn’t.
“Bull$hit. You ALWAYS extend that courtesy to the banksters, and NEVER extend that courtesy to the little guys”
I wrote this years ago on this blog. Didn`t your Mommy tell you….. Never say Never or ALWAYS.
THE WASHINGTON HILLBILLIES
Come and listen to my story bout a man named Dodd
refied his house but it seemed kinda odd
saved eighty grand but he said he didn`t know
law makers get a break cause they`re friends of Angelo
Mozillo that is , CountryWide , Bad loans
Well the first thing ya know Angelo is in some trouble
he say`s HEY DODD NOW THEY SAY I CAUSED A BUBBLE!
Dodd say`s fine I`ll just sponsor us a bill
tell em that they need it and I`ll sell it on the Hill
Well the moral of the story that you all should know
better vote em out if they`re friends of Angelo
or one day soon we`ll be shootin at our food
Bernankes got us lookin at two hundred dollar crude
Oil that is , black gold , OPEC tea
And now it`s time to say goodbye to you and all your kin
and Dodd would like to thank you all for kindly chippin in
you`re all invited back again to this localitee
to pay another trillion for their bogus LTV
Loan to value, that is
Kick your shoes off
Ya`ll come back now ya hear?!
OCCUPY DEADBEAT
RENT ?
FEISTY DON’T PLAY DAT
WHY WON’T THE BANK KICK ME OUT?
As Combo often opines, if you are worried about volatility, why not go straight to cash?
‘Safe investments’ come with their own risks
By Special to the Union-Tribune
6 a.m., Sept. 26, 2011
As a public service to residents, the Financial Planning Association of San Diego is answering financial questions for readers of The San Diego Union-Tribune. Today’s question — on creating a “safe” retirement portfolio — is answered by R.J. Gordon Tudor, CFP and principal at Wealth Analytics in San Diego.
Q: My husband and I are reaching retirement age. Please explain the different options for investments that are pretty safe. Are bonds our best bet?
A: Most people approaching retirement are interested in safe investments. However, the question they need to ask is: How do I go about creating an investment strategy that can sustain my living standard throughout retirement? Putting money into cash, CDs and bonds may feel safe because you are protecting your principal. Unfortunately, this strategy creates another risk. As the costs of goods and services increase over the years, your purchasing power drops and your standard of living falls.
Retirement-minded investors also face another challenge: How much should they invest in stocks or mutual funds and what types of equity investments should they choose? Before retirement, most investors choose equity investments based on the hope that they can find options that will outperform the competition. Unfortunately, in retirement, focusing on relative returns — or how you perform compared to other similar investments (or investment accounts) — can be a recipe for disaster. As you approach retirement there are two important questions you need to ask:
1) How much money can I safely withdraw each year?
2) How can I structure my portfolio so that I do not need to sell investments that have been reduced in value by a falling market?
…
It’s 2012 election campaign season, and this nascent movement seems to be growing strength. Which candidates will earnestly listen to what motivates these people to demonstrate in public, and which will use political straw men to dismiss their grievances?
Time will tell.
About 1,500 march during Occupy San Diego
Written byElizabeth Aguilera
3:53 p.m., Oct. 7, 2011
Updated 8:06 p.m.
About 1,500 protesters kicked off Occupy San Diego — a movement against what organizers called corporate greed — Friday as they marched from Children’s Park to Civic Center Plaza downtown, chanting “We got sold out. They got bailed out.”
The demonstration, which is planned to last indefinitely, reflects similar protests that the Occupy Wall Street movement started a few weeks ago in New York and have spread to other cities, including Los Angeles, Chicago, Boston and Seattle.
“The way the financial industry and the banks and big money have infiltrated our political system is completely unfair,” said Mike Geck, 38, who is on the local planning committee. “The waterfall of money flowing into the political campaign coffers has drowned out the voice of the average working person. Up until this point we have not been heard.”
Protesters say they are fed up with a financial industry that received unprecedented taxpayer bailouts while damaging an economy in which unemployment remains above 9 percent. “The one thing we all have in common is that we are the 99% that will no longer tolerate the greed and corruption of the 1%,” the group’s national website says.
In San Diego, protesters carried signs that said “End the Fed Ponzi scheme,” “Chop from the Top,” “Mr President, pare down Wall Street,” and “Wake up 99%.”
The slogan chanting turned to booing twice along the march route. Once in front of Bank of America and again in front of Chase Bank.
Those who marched Friday had different reasons for joining the event and their own hopes about what the movement might achieve. Some want increased corporate regulations to keep big business from contributing money to political campaigns. Others want equal access to education, the same tax rate for everyone, no more corporate bailouts, and help for homeowners and the jobless.
“I feel like the representatives we elected forgot about us,” said Liane Clemen, 49, of San Diego. “We need to see corporate influence diminished in D.C., the repeal of corporate personhood, and we should debate whether the Fed is needed. That is a start.”
…
Bostons only got in the hundreds and it sounds like mostly students. If you go to their web page there are about 10 area schools w/about 1000 expected students expected to join a rally on Monday.
Then there is this: “Stephen Jerome, 50, from Lawrence, Massachusetts came by with his checkbook, donating $500 to the cause.
“These people are here with their hearts and brains and compassion,” he said.
Aaron Cohen has been passing by on his lunch hour to show support.
The 61-year-old epidemiologist said he too is worried about his own financial security and that of his three daughters and grandchildren.
“They are starting out farther behind even with our support than when we were at their age,” Cohen said. Despite being employed as teachers, student loans leave his daughters, in their 30s, wondering if and when they will be able to buy homes.
Christine and Robert Gerzon, who traveled from Concord, Massachusetts, intend to organize their neighbors to donate supplies to the Boston demonstrators.”
So if you cannot make it there in person, there is a list w/needed supplies that they are looking to have donated. OccupyBoston had that list on their web page and there was a button to donate $$$.
The Associated Press
Posted: 11:06 a.m. Saturday, Oct. 8, 2011
OAKLAND, Calif. — NFL commissioner Roger Goodell considers longtime Oakland Raiders owner and Hall of Famer Al Davis a “true legend” of the game.
The 82-year-old Davis died at his home in Oakland on Saturday morning, while his beloved team was in Houston preparing to play the Texans on Saturday. That Davis was not with his team was telling as he is believed to have missed only three games since joining the team as coach in 1963.
Davis, one of the most important figures in NFL history, followed his famous “Just Win Baby” motto on and the field and in the courtroom to three Super Bowl titles in a trailblazing career.
Speaking of Oakland sports teams, we saw Moneyball last night and loved it. We didn’t know until seeing the movie that Billy Beane grew up playing little league ball a few miles down the road from where we live.
NAPA valley is bugging me. St Helena houses listed at outrageous maximum bubble prices and very little, if anything, is selling.
Too many listings like this:
10/06/2011 Listed for sale $1,995,000
04/18/1997 Sold $352,500
Wonder what the realtors are telling the clients. “St Helena is special.” Wonder if the sellers realize why no takers or they have no choice because refinanced to the max. Was likely outrageously expensive to keep up with the Joneses circa 2005-8 in Napa Valley.
Market Trends for Saint Helena
Average Listing Price $2,066,554 w-o-w
Median Sales Price $704,500 y-o-y
Number of Sales 22 y-o-y
- trulia
I found my answer; it cost a million bucks to keep up w the Joneses in 2005.
“Fabulous MillionDollarMakeover makes this 4 bedroom3 bath home on nearly an acre THE total Napa Valley Experience.” Sqft: 2,600
05/16/2009 Listed for sale $2,875,000
02/17/2005 Sold $1,695,000
08/06/1993 Sold $440,000
Here’s a blast from the past:
http://www.zerohedge.com/news/much-deserved-blast-past
How long until the next serious leg down in share prices?
BUSINESS
OCTOBER 10, 2011
Volatile Market Sends a Warning
BY E.S. BROWNING
Many investors are entering this week with fresh hopes the worst is over, after last week’s sudden stock-market rebound. But history suggests that in times of market turmoil, there is a risk that big, sudden gains like last week’s will prove temporary respites before stocks fall again.
Head-snapping volatility, both steep drops and sharp gains, most often comes in times of market trouble. It suggests that, despite the bounce last week, the market isn’t healthy, says economic historian Richard Sylla of New York University’s Stern School of Business.
“Financial markets become more volatile in periods of stress. People don’t know …”