Bits Bucket for December 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.
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Location:Northern Arizona, United States
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Got physical printing presses?
MARKETS
DECEMBER 8, 2011
Banks Prep for Life After Euro
Countries Study Printing Their Own Notes in Case Monetary Union Unravels
By DAVID ENRICH, DEBORAH BALL and ALISTAIR MACDONALD
Some central banks in Europe have started weighing contingency plans to prepare for the possibility that countries leave the euro zone or the currency union breaks apart entirely, according to people familiar with the matter.
The first signs are surfacing that central banks are thinking about how to resuscitate currencies based on bank notes that haven’t been printed since the first euros went into circulation in January 2002.
At least one—the Central Bank of Ireland—is evaluating whether it needs to secure additional access to printing presses in case it has to churn out new bank notes to support a reborn national currency, according to people familiar with the matter.
Outside the 17-country euro zone, numerous European central banks are eyeing defensive measures to protect against the possible fallout if the euro zone were to unravel, other people said. Several, including Switzerland, are considering possible replacements for the euro as the external reference point, or peg, they use to try to keep their currencies’ values stable.
The central banks’ planning is preliminary, according to the people familiar with the matter. It doesn’t represent an expectation that the euro zone is headed for dissolution.
But the fact central bankers are even studying the possibility, which until this fall was considered unthinkable, underscores how swiftly conditions have deteriorated. Policy makers, central bankers and investors around the world have pinned their hopes on this week’s Brussels summit to forge a long-awaited solution to the Continent’s two-year financial crisis, which was ignited by doubts over countries’ abilities to pay their debts.
The stakes are high. A failure of Europe’s leaders to defuse the crisis would fuel already growing doubts about the viability of the euro zone. Many policy makers, bankers and other experts fear the monetary union’s unraveling would not only reverse a decade of economic integration but also would trigger financial chaos.
J.P. Morgan Chase & Co. put out a report Wednesday that advised investors and companies to hedge against a collapse of the euro zone—though the bank said the likelihood of that happening was just 20%. It said many corporate clients were buying currency derivatives to place bets against the euro.
Before the formal launch of the euro in January 2002, an army of planners spent years choreographing the logistics of the currency’s debut, including the minting of billions of bank notes and coins and the distribution of the new currency to banks and businesses across the Continent. Disassembling the bloc would be messy at best. Among the many challenges, loans and deposits currently denominated in euros would have to be switched to new currencies. And individual countries would need to decide whether to dust off their old currencies and, if so, how to quickly produce large quantities of paper money.
In Montenegro, which used Germany’s Deutsche mark as legal tender before it adopted the euro in 2002, central bank officials are weighing their options for life after the euro. The Balkan country would have “a wide range of possibilities, from using another foreign currency to the introduction of a domestic currency,” said Nikola Fabris, chief economist at Montenegro’s central bank. One problem with the latter option: Montenegro doesn’t have the capacity to print its own money, he said.
Most euro-zone central banks maintain at least limited capacities to print bank notes. While the European Central Bank is responsible for determining the euro zone’s supply of bank notes, it doesn’t actually print them. The ECB outsources the work to central banks of euro-zone countries. Each year, groups of countries are assigned the task of printing millions of bank notes in specific denominations.
The countries have different arrangements for printing their shares of the notes. Some, like Greece and Ireland, own their printing presses. Others outsource to private companies.
The assignments vary from year to year. Last year, Ireland printed 127.5 million €10 notes, and nothing else, according to its annual report. This year, it was among 11 countries assigned to print a total of 1.71 billion €5 notes.
…
“It said many corporate clients were buying currency derivatives to place bets against the euro.”
They just can’t seem to break their addiction, can they. At this point their best best may be to ditch money altogether and revert to the barter of actual goods and services. How many AK-47’s and cans of peas can you exchange for a yacht?
If you have the AK-47s then you can just take the yacht.
Just ask the Somali pirates.
As long as the Navy SEALs aren’t in the neighborhood.
Just ask Richard Phillips, the captain of the Maersk Alabama. He’s here today because the SEALs are excellent shots.
Sort of. From what I heard almost anyone could have taken those shots. He’s here today because a organization with the means and will chose to put willing and able people into position to take those shots and then order them to do so. To me the big picture is the hows and whys of that organization and the choices they make.
The only options left in Euroland are the printing press or massiv haircuts. Structural changes in the economy take years if not decades to implement and are slow to show success. Its too late for that, the feces will hit the fan long before that. I know Merkel is against the printing press and against haircuts. She wants some treaty changes and a fiscal union but that would take lengthy negotiations amongst member countries, public referendums in various member countries, a trial at the German Supreme Court and most likely a change of the German constitution through a public referendum. The success of that process is slim to none. I mean anything is possible, but the chances of success are pretty low, like less than 5%.
I think what Merkel really wants is for the Eurozone to break apart. This way she can deflect blame away from herself and Germany. It might be the best way since the problems created by the common currency are insurmountable. Its a bottomless pit with no hope of ever fixing it. Sometimes it is better to make the hard choices in the shrt term rather than to keep throwing good money after bad.
Merkel has a Ph.D. in Physics, so she might have the capacity for logical thought absent in most politicians.
…just my $0.02
Thursday December 1, 2011
The Daily Show
America’s Next TARP Model
A Bloomberg report reveals that the U.S. government loaned banks $7.7 trillion in secret bailout funds at no interest and then borrowed the money back at interest.
Bloomberg News Responds to Bernanke Criticism of U.S. Bank-Rescue Coverage
By Bloomberg News -
Dec 7, 2011 5:31 PM ET
Federal Reserve Chairman Ben S. Bernanke said in a letter to four senior lawmakers yesterday that recent news articles about the central bank’s emergency lending programs contained “egregious errors.”
While Bernanke’s letter and an accompanying four-page staff memo posted on the Fed’s website didn’t mention any news organizations by name, Bloomberg News has published a series of articles this year examining the bailout. The latest, “Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress,” appeared Nov. 28.
Here is a point-by-point response by Bloomberg News to the Fed staff memo.
From Fed memo: “These articles have made repeated claims that the Federal Reserve conducted ‘secret’ lending that was not disclosed either to the public or the Congress. No lending program was ever kept secret from the Congress or the public. All of the programs were publicly announced when they were initiated, and information about all lending under the programs was publicly released — both on a weekly basis through the Federal Reserve’s public balance sheet release and through detailed monthly reports to Congress, both of which were also posted on the Federal Reserve’s website.”
Response: Bloomberg’s Nov. 28 story about Fed lending reported that the central bank published regular reports on the scope of borrowings from the discount window and other emergency or temporary programs. The loans were described as “secret” because the amounts, names of borrowers, dates and, often, interest rates weren’t disclosed. The stories reported that the Fed’s rationale for keeping the loans secret was to prevent bank runs.
From Fed memo: “The Federal Reserve took great care to ensure that Congress was well-informed of the magnitude and manner of its lending.”
Response: Bloomberg’s story said Congress wasn’t fully apprised of the details of the Fed’s efforts. “We were aware emergency efforts were going on,” U.S. Representative Barney Frank, who served as chairman of the House Financial Services Committee, said in the Nov. 28 story. “We didn’t know the specifics.” Other members of Congress on both sides of the aisle also said they weren’t aware of the details.
From Fed memo: “Congress was well informed of the volume of borrowing by large banks. For instance, the monthly reports showed the daily average borrowing during the month in the aggregate for the five largest discount window borrowers, the next five, and the rest. Similar information was also provided for lending at the emergency facilities.”
Response: Because the Fed didn’t provide the names of borrowers, it was impossible to add up how much each bank received across all the programs. Nor did the Fed release these figures in aggregate form for each institution when it released data under the Dodd-Frank Act or Bloomberg’s Freedom of Information Act requests.
In fact, the Fed released separate databases on each of the programs, and several of the databases identified borrowers by the name of the subsidiary that got the loan. None of the releases showed how much money each borrower was in debt to the Fed on specific dates.
Bloomberg built a database to combine subsidiaries with their parent companies and to add the total loans outstanding by each institution across all programs. Bloomberg undertook this project in the belief that a full accounting of the Fed’s lending efforts was possible only by tallying what each company borrowed across all programs.
From Fed memo: “The articles fail to mention altogether that one facility, the TALF, supported nearly 3 million auto loans, more than 1 million student loans, nearly 900,000 loans to small businesses, 150,000 other business loans and millions of credit card loans.”
http://www.bloomberg.com/news/2011-12-06/bloomberg-news-responds-to-bernanke-criticism.html - 144k
I’m still waiting for an explanation of why the wives of Wall Street CEOs were able to get emergency loans from the FED.
Because they can?
Some times it’s not who you know, it’s who you marry.
Hey, that reminds myself, eyes need to get some Heinz 57 sauce. Tanks!
“The articles fail to mention altogether that one facility, the TALF, supported nearly 3 million auto loans, more than 1 million student loans, nearly 900,000 loans to small businesses, 150,000 other business loans and millions of credit card loans.”
Fed credo: When in doubt, lend more.
Sounds like the “dog ate my homework” excuses. Bernanke is trying to justify all the trillions in free money loans to banks for their profit by saying he is providing a benefit to the “public”.
Yes, he understands his role, completely. The Public is supposed to be forever indebted and paying “loans” to his beloved Banksters. Get the Vig, Guido! That’s how we run dis bisness.
A Bloomberg report reveals that the U.S. government loaned banks $7.7 trillion in secret bailout funds at no interest and then borrowed the money back at interest.
Technically, that is incorrect, as the Federal Reserve, its name notwithstanding, is not owned by the Federal gov’t. Rather, it is owned by its member banks.
yes, that is true, but who will cover its debts? the taxpayer of the USA via the Treasury Dept., so technically it is true, but in a very real sense, the unaccountable FED is giving our money to their buddies.
More like they are conjuring it out of thin air, but expect us to pay it back with real assets, goods and services.
It’s the ultimate racket.
You got that right brother.
It’s impossible to overstress the idea that the PRIVATELY owned Federal Reserve Bank® is allowed to create money WHENEVER THEY FEEL LIKE IT.
I thought that was called counterfeiting?
Anyway, they use this created money to buy bank bonds, presumably from their member banks at nearly zero interest, who then turn around and loan it to you and I on our credit cards for 18%.
Argue Liberal vs. conservative, Republican vs. Democrat, abortion, and guns all you want - if we don’t put a stop to this now, NOTHING ELSE WILL MATTER. We will slowly turn into Zimbabwe and be wiping our collective rear ends with trillion dollar notes(some of which I have framed and hanging in my bathroom).
Please everyone - start writing to your congresscritter and threaten to throw them out if they don’t at least start demanding that the Fed be audited. That would be a good start.
Read in another article elsewhere these Fed member banks include European banks. Now does it make sense why certain 2008 rescue package $$$$s also went to banks based on foreign shores?
OMG. Am I the only one who thinks that allowing foreign ownership over the issuance of our currency is tantamount to treason? Private ownership is horrific, but FOREIGN?!?!?!
Dec. 7, 2011, 12:01 a.m. EST
End times for the euro zone
By Jon D. Markman
Stocks have ripped higher on hints that the leaders of France and Germany are determined to ram a political solution down the throats of the euro zone to counter an economic problem. Lenin must be laughing in his grave.
The newest proposal by French President Nicolas Sarkozy and German Chancellor Angela Merkel creates what amounts to a fiscal KGB in Brussels to beat up on euro zone countries that break ranks on budget policy. It’s as preposterous as all the others that have come before.
The citizens of countries ranging from Finland to Slovakia are not going to give up any more of their sovereign rights to technocrats running an organization that has already failed miserably at its goal of creating economic stability through currency union.
Anyone with a high school textbook can read about how centrally planned economies are a relic of the barbaric Soviet era — in which Merkel herself came of age in East Germany. Even in the U.S., the federal government does not tell the states how much money to raise or how to spend it.
…
“France and Germany are determined to ram a political solution down the throats of the euro zone to counter an economic problem.”
I rode a tank
Held a bankster’s rank
When the schnittskrieg raged
And the dead PIIGS stank…
they’ve already got bodyguards and protective automobile shields in their mercedes. i guess a tank will be the next phase. good call.
Armored personnel carriers (APCs) re-tasked as armored bankster carriers (ABCs)?
Since corporations are people, perhaps ACCs?
Even in the U.S., the federal government does not tell the states how much money to raise or how to spend it……..
I disagree. The Feds control State spending via “unfunded Mandates”, dictating what States should supply in the way of Health, education, and welfare benefits.
Also, they used “matched Funds” as a way to control spending in the States, which I consider unconstitutional. We see battles all the time here in Florida where the Federal Government is willing to fund a program if we put up half the money.
We recently went through that with the stupid “high speed rail” to nowhere proposal. Our Governor rejected it, but the “newsmedia” and most leftists railed against (pun intended) him because if the state didn’t do the deed, we would “lose” all that Federal money.
A huge amount of money in local government is the result of “block grants” from the FED, thereby controlling what programs the local government can/should focus on.
The unfunded mandates are direct control over local funds, the rest is just control from the Central government over the Local. A form of National Socialism. Gee, who started that kind of government?
“The newest proposal by French President Nicolas Sarkozy and German Chancellor Angela Merkel…”
…is just smoke an mirrors; another attempt to delay. There’s too much debt to be able to pay it back, so it won’t be paid back.
Paul Volcker Says It’s Recession and Inflation for the U.S.
By, DARYL MONTGOMERY
Dec 08, 2011
In a talk given on Wednesday night to a small audience at the Wall Street location of the American Museum of Finance, former Fed Chair Paul Volcker said the U.S. will be mired in recession for many more years and that it faces an inflation problem in the future. Volcker was the Fed Chair that tamed inflation in the 1980s.
In a talk given to a small audience at the American Museum of Finance on Wednesday evening, former Federal Reserve Chair Paul Volcker stated that there was an ongoing recession in the U.S. and that we will be seeing inflation in the future because of the actions of the Fed and Treasury during the 2008 Credit Crisis.
While most of Volcker’s talk centered on the current crisis in Europe, he frequently made connections to what was going on in the EU to what has taken place in the United States. His remarks about the U.S. being mired in an ongoing recession were in response to a question on whether an infrastructure bank would be a good idea. As part of his answer he stated, “We’re not going to end the recession in the next month or the next year. It’s going to take several years before the recession is over.” The U.S. government claims that the last recession ended in June 2009 and has repeatedly said that the U.S. has not fallen back into recession even though unemployment and consumer confidence have continuously remained at recession levels.
When discussing the bailouts during the Credit Crisis, Volcker remarked “people said that there will be inflation… that’s true over time.” Volcker was critical of pro-inflation policies. He said that “the problem with inflation is that it looks so enticing, but the historical record doesn’t verify that it is.” He continued, “We would be very foolish if we deliberately went out and created inflation.” The Federal Reserve under Ben Bernanke has kept Fed Funds rates around zero percent for three years now, which means real interest rates have been negative. Negative interest rates are highly inflationary as is money printing. The Fed has expanded its balance sheet — one of the many ways it prints money — by over $2 trillion dollars since September 2008.
…
“American Museum of Finance”
The only visual I can conjure is something like the Wax Museum of Horrors.
to a small audience at the Wall Street location
IDK that there was a US $uperfund landfill site there! Who’d-a-thunk?
Stagflation is the place to be
Poor livin’ is the life for me
Land spreadin’ out so far and wide
Keep Manhattan just gimme that Countrywide
The flatscreen TV…
The debt-slave mizzer-eee…
Green-span acres is the place for me.
Green ink by the barrel for Ber-nan-kee.
You are my bankster-wife
Goodbye debt-free life
Stagflation we are here!!!
Volcker is outdated.
In the good old days, when governments overspent their currency values deteriorated, inflation went up and interest rates went up.
These days, governments may overspend but their currency values hold (because someone is pegging their rather strong currency), inflation happens for commodities in global demand but not for a wide variety of other stuff, and interest rates can be mandated to be arbitrarily low (someone will always buy the debt at any return).
Volcker’s era laws of the universe don’t apply anymore. Back in the day, inflation would happen because the government overspent and pumped cash into the economy. Nowadays inflation happens because earlier poor third worlders ran into some cash and want the same stuff you want.
The Recession Was Sexist (So Is the Recovery)
By Jordan Weissmann
Dec 7 2011, 8:30 AM ET
Men and women lived through separate recessions. Now, women could be at a disadvantage as they experience a separate recovery.
The Great Recession was hell on everybody, but it was a particularly hellish time for men. The housing collapse and financial crisis tag-teamed to gut industries like construction and manufacturing that had been traditional bastions of male employment for decades. Women reached nearly 50% of the work force. And many have wondered whether the Y chromosome is about to become a permanent economic liability. The Atlantic’s own Hanna Rosin captured the question brilliantly in her piece, “The End of Men.”
But there’s also a less talked about story about gender and the recession. Men may fallen harder. But during the country’s sluggish recovery, they bounced back faster. And in the current rickety job market, women may be facing the tougher road ahead.
…
And many have wondered whether the Y chromosome is about to become a permanent economic liability
(Italian priest shouting): “Hey get Michelangelo back in here, we need to make some modifications on this male statue template, something just ain’t quite right just yet”.
Ain’t life wonderful, such diversity & variety,…new decisions, new decisions, new decisions.
Cole Younger: “Women, love ‘em!”
http://tinyurl.com/73sj8gv
http://tinyurl.com/7ukza8j
Was?!
For the Masters of the Universe and their corporate/media/political fluffers, the recession was a mere inconvenience.
“I’d like my life back” - Tony Hayward
“We care about the small people” - Carl-Henric Svanberg
http://m.youtube.com/index?desktop_uri=%2F&gl=US#/watch?v=th3LtLx0IEM
Wouldn’t it stand to reason that if group X suffered more during a recession, that said group X would also recover more during a recovery?
That’s just crazy talk! What are you, some kinda commie?
Report: California’s middle class shrinks to below 50 percent
By Matt O’Brien
Contra Costa Times
Posted: 12/07/2011 09:01:00 PM PST
Updated: 12/07/2011 09:54:39 PM PST
Not even half of California’s families are middle class anymore as the recession and its aftermath widened the gap between rich and poor, according to a new report.
Three decades ago, 60 percent of California families could count themselves in what the Public Policy Institute of California calls the “middle-income” bracket. Not rich but doing reasonably well, the middle class formed a comfortable majority and shared the state’s prosperity.
But the portion of middle-income families slipped to 49.7 percent last year, according to the nonpartisan research group’s study. Using census figures and a federal standard-of-living measure adjusted for inflation, the report defines the middle-income bracket as families who earn $44,000 to $155,000 a year.
“It really reflects a decades-long trend, at least three decades of shifts in our economy,” said report co-author Sarah Bohn.
…
They say everything happens in California first before it happens in rest of USA… Welcome to the Lucky Ducky future
I wish the author had gotten into what was behind some of these trends a bit more than he did. I’m thinking of some of the many articles we’ve read here at the hbb over the years about California. Was the influx in illegal aliens adding to the lower income numbers? Is much of what’s left of the 49.7% that comprises the CA middle class those union members that retire on crazy pensions? Or is Simi Valley and the creative class keeping that middle class number afloat?
I wish the author had gotten into what was behind some of these trends a bit more than he did.
I have seen articles about this trend as far back as 10 years ago. Some actually did deeper into the root cause. From what I have read is that California has been segregating into two big classes. Those still in the middle class are professionals and businessowners. Everyone else are the “Lucky Duckies” which you can be in high cost of living California with even a $20/hr job, especially if you are young.
So basically you have nabes with two income (well over 100K) households who can afford nice houses and nice new cars and you have “others” who do all the low paid menial work. Small wonder the waiting lists for Section 8 housing on SoCal are years long.
The last time we were in SoCal on vacation my son noticed the dichotomy on the roads. He noticed that people either had a very nice set of luxury wheels or drove beaters, and that the automotive middle ground was much smaller compared to where we live.
He noticed that people either had a very nice set of luxury wheels or drove beaters, and that the automotive middle ground was much smaller compared to where we live.
Yeah, there seems to be so much social pressure to drive something nice there, that everybody who can possibly afford it does so. Those are the people who would be in the the middle range in Colorado.
I know what you mean. Out here middle of the road cars (Camries, Impalas, Taurus, etc.) seem to be much more common.
I’ve noticed that the car vs. income is highly regressive. Outside of the true luxury brands, the less one makes, the more one is willing to spend on wheels. Hence why all the Taco Bells parking lots are full of Pintos with rims. Not scientifically proven, but viewed many times over.
Another take would be why do realtors drive Escalades?
Same thing is happening in Florida. Middle class is going, going, ……
Another take would be why do realtors drive Escalades?
Curiously, that wasn’t the norm in my neck of the woods. I think a midsize SUV (Foreign or Domestic) was more typical out here and larger sedans were also rather common for realtors.
“…the less one makes, the more one is willing to spend on wheels.”
+1 The offices I visit the lowest paid drive the fanciest cars.
“The last time we were in SoCal on vacation my son noticed the dichotomy on the roads. He noticed that people either had a very nice set of luxury wheels or drove beaters, and that the automotive middle ground was much smaller compared to where we live.”
that’s correct. It was werid for me when I moved to Phoenix AZ to see all these white people in American cars and not in BMW’s. At first they all looked poor until I realized they were not , they just didn’t have the same social pressures ( or mental illness )
If I went to Scottsdale it was more CA carwise
“Was the influx in illegal aliens adding to the lower income numbers? ”
No and yes. Speaking as a once affluent family, we got hammered and can’t seem to get back up.
The illegals are getting a lot of the unskilled jobs and section 8, welfare,SNAP (masters of hiding or not marrying baby/babies dad) Their incomes goes farther.
“Or is Simi Valley and the creative class keeping that middle class number afloat?”
We once owned a view luxury home there, and I named our former neighborhood “foreclosure island”. The middle class is melting in my area.
Speaking as a once affluent family, we got hammered and can’t seem to get back up.
You are not alone.
Speaking as a once poor family who has mostly met my income goals, I’m amazed at how what I once thought was a lot of money doesn’t go nearly as far as I thought it would. The thing I’ve learned is that it’s a geometric relationship. You have to make 4x the money to feel like you have twice as much money to spend.
“Or is Simi Valley and the creative class keeping that middle class number afloat?”
I think its mostly a shortage of homes due to the growth moratoriams around here. I think in the next 10 years it will change. I see alot of folks about 10 years older than me in short sales. I don’t see many young people selling homes around here. Maybe they don’t have too ? Or maybe there just are not that many younger folks who stay around here? Too expensive.
A cursory roundup of my circle of California friends lends credence to this story’s claim; a few have two $100k+ incomes while the majority have broken families and dysfunctional work histories.
“Not even half of California’s families are middle class anymore as the recession and its aftermath widened the gap between rich and poor, according to a new report.”
Buy now or be priced out forever
15 states feel Europe’s economic pain
Exports, tourism suffer downturns, Wells Fargo Securities study shows
By Tim Devaney
The Washington Times
Sunday, December 4, 2011
The European recession will have little impact on the District of Columbia, but it could hit states particularly hard that rely on exports and tourism.
While most of the country is shielded from Europe’s recession by relatively low investment in the continent, some states such as Utah and South Carolina have more to lose than others, according to a study by Wells Fargo Securities.
“With many states continuing to struggle with the effects of the sluggish U.S. economic recovery, the prospect of some additional challenges as the European Union slips back into a recession over the next couple of quarters represents another hurdle,” the report said. “Slower demand from the Eurozone will likely slow production among the country’s commodity, aircraft and automobile producers.”
The study measured the percentage of each state’s gross domestic product that comes from exports to Europe. The country’s average was 1.97 percent, which is low and won’t have much of an impact on the economy. But the 15 states that come in above the national average should be concerned, the study says.
Those states include Utah (5.56 percent), South Carolina (4.10 percent), West Virginia (3.90 percent), Louisiana (3.47 percent), Kentucky (3.10 percent), Connecticut (2.96 percent), Indiana (2.92 percent), Washington state (2.83 percent), Massachusetts (2.82 percent), Delaware (2.78 percent), Alabama (2.55 percent), Nevada (2.37 percent), Texas (2.20 percent), New Jersey (2.20 percent) and Tennessee (2.11 percent).
…
I love living in this province (and again, another reason I would not want to be a landlord):
http://www.moneyville.ca/article/1094288–pot-smoking-tenant-may-be-hard-to-evict
I have no problem with MJ, but this I found funny:
So it seems if you can prove that the tenant growing marijuana is bothering the other tenants, damaging the building and/or increasing the landlord’s risk, they will probably be evicted. But if you can come up with a solution to properly ventilate the unit at reasonable cost, to minimize the problem, you may not succeed with the eviction.
We have a similar Human Rights Code in Ontario, so if a tenant presents you with a license to grow marijuana legally in a tenant application, you should first consult with your insurer to determine if this will cause adverse consequences to your insurance policy.
To find out the rules about obtaining this license, including how many plants you can grow, go to the Health Canada website.
Any laws in the states like this? Given our provincial government, I will not be surprised that meth labs and crack houses soon become legal.
More joys of being a landlord.
Here in the states - the government can then seize your house and you will have to prove you knew nothing of what your tenant was doing…
“Any laws in the states like this?”
Haven’t checked, but I would be somewhat surprised to learn CA has no ‘growers’ rights’ protection law.
He’s talking Federal law I think. Under Federal law, MJ is a Schedule 1 narcotic, which means it has no medicinal value whatsoever and is therefore more hamful/punishable than either heroine or Cocaine.
It’s stupid, messed up, really harmful to innocent people, but there it is.
I once lived in a rental house for free for a year, where ihe landlord hired me to clean up after a grow operation. The tenant had spread soil 18″ deep on the floors, and hung grow lights from the ceiling. When the landlord found out and evicted him, he stuffed dirt and soil down all the drains to wreck them, as if there wasn’t damage already.
I suspect that something like this was going on at a recently vacated rental. It’s just up the street from the Arizona Slim Ranch, and we neighbors were not sorry to see the sleazeball tenants depart.
A local remediation company was there for three days this week and, ISTR, at least one day last week. This is the sort of outfit that also does carpet cleaning, and that’s a job that just takes an hour or two, not days.
Methinks that the out-of-state in-VEST-or is rethinking the job of being a landlord. Because the cleanup of his rental house is probably costing a bundle.
Wells Fargo foreclosure alternatives workshop today and Thursday
Palm Beach County foreclosure filings up 51 percent last month
by Kim Miller
New foreclosure filings increased 51 percent last month in Palm Beach County compared to November 2010, according to numbers released this afternoon by Palm Beach County Clerk and Comptroller Sharon Bock.
There were 1,204 initial cases filed in November. During the same time last year, there were just 797 filings.
Many banks suspended foreclosures last fall as news of robo-signed documents and possibly flawed court papers spread. Analysts had been predicting all year that foreclosures would increase as banks fixed their internal procedures.
“Recently we’ve seen many more foreclosure filings than we did at the beginning of 2011,” Bock said. “Even with the slight decrease from October to November, there were still several hundred more cases filed last month than in the first quarter of this year.”
The number of foreclosures filed in 2011 continues to be less than the total filed in 2010. There were 10,935 cases filed through the end of November 2011, down 42.4 percent from the 18,968 foreclosures filed through November 2010.
13 Responses to “Palm Beach County foreclosure filings up 51 percent last month”
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11
FORECLOSED Says:
December 7th, 2011 at 7:57 pm
Tomorrow Mrs Miller will be reporting that the National Association of Realtors state that Foreclosers are down and there has never been a better time to buy.
Or New Home Sales are up huge.
Ah ha ha ha ha ha
his Woman’s story’s bolw with the wind.
There are 71/2 to 81/2 MILLION Foreclosers coming in the next year and a half. As told by the Head of the Federal Reserve and Head of Comnsumer Protection and I sent it to Mrs Miller.
She will never report it.
This is a Ksunami compared to what we have seen.
There is only one guy that knows how to stop spending and save this Country
Ron Paul 2012
END THE FED
Stop the Wars and bring Troops Home
Close the 900 Bases around the World.
12
Diver4life Says:
December 7th, 2011 at 9:13 pm
Keep themn coming…….I am no longer in foreclosure because the bank dismissed my foreclosure after 40 months without a payment. Now I am waiting for them to start all over again…The more that are filed in front of me, the happier I am…….Keep them coming Jam up the court systems….Hey, if I get another 40 months before I have to do something all the better for me…….Wise1, you are right on the money….Jeff Saturday, where are you buddy…
http://blogs.palmbeachpost.com/realtime/2011/12/07/palm-beach-county-foreclosure-filings-up-51-percent-last-month/ -
Realtors Are Liars®
Congress Are Whores®
And by that I hope you mean no disrespect to actual whores.
Good point.
We at the HBB apologize to all whores for our comments.
Congressmen Are Criminals®
(Hwy50 lifts up rock looking for dragonfly nymphs, finds this):
According to the 37-count felony complaint, Fox and Melone operated Green Credit Solutions in Irvine, which charged thousands of homeowners facing foreclosure $3,500 apiece in up-front fees in exchange for attorney services that never were provided.
O.C. pair nabbed in $6 million loan-mod scam:
December 7th, 2011, by Jeff Collins OC Register
Two Orange County men were arrested on charges of theft and conspiracy in what state prosecutors called a $6 million mortgage modification scam that victimized thousands of financially troubled homeowners across the nation.
Christopher Fox, 37, of Laguna Niguel and Curtis Melone, 37, of Huntington Beach were being held at the Orange County Jail in lieu of $500,000 each in bail, officials with the state Attorney General’s Office said.
Both pleaded not guilty at an arraignment in Orange County Superior Court Wednesday and were expected to post bail later. They face a maximum of 36 years in state prison if convicted on all counts, a spokeswoman said.
The mortgage-aid firm also maintained falsely that it had a lawyer on staff and was affiliated with a law firm with a network of attorneys, state prosecutors said. Instead, the only counsel was Harris, who had a suspended law license at the time, and the affiliated law firm was defunct.
Hey they were just using movie industry accounting methods! What’s wrong with that?
Moronic prices still abound on the coast. This listing for $399k is an 840 sq footer although it is on a decent size parcel of seacoast land. Notice no photos of inside the house.
http://www.realtor.com/realestateandhomes-detail/300-Pioneer-Rd_Rye_NH_03870_M35143-26629
The prices in Rye NH are still pretty crazy. Did a search on realtor.com and I just had to laugh but was at least slightly comforted to see how many reduced labels were slapped on those prices. IMHO they have much farther to fall. There was a listing on the road my grandparents had property on until her death. It was a smaller, older home for $850k. What a joke. Hard to believe my milkman grandfather w/the 8th grade education (his father had made him drop out to go to work to help feed his 7 other siblings) built his home on that road during the Depression.
This is about inflation, globalism and the shifting of wealth.
“This is about inflation, globalism and the shifting of wealth.”
Spot on Carrie and I would add loss of sovereignty as well.
Moronic salaries still on the coast, too, then.
Prices stay up because they can.
I have no sympathy for coastal residents whatsoever.
Not to worry. It all be underwater soon enough.
Literally.
Your global warming, rising sea level alarmism isn’t scaring folks, cus we’re gonna get Raptured before that happens anyway…
“Ruptured” is more like it.
Moronic salaries still on the coast, too, then. Prices stay up because they can.
IMHO, you’re not giving leverage and hubris enough credit here.
There are people making money in this seacoast community and really this area is considered commutable to Boston so you could be looking at Boston area FIRE economy income behind some these homes. But here’s something else to ponder: my classmates at PHS where Rye kids go to school, purchased a lot of those homes when the price tags were much, much, much lower. They probably purchased homes that were a little tired in the beginning when their families were young and have been refi-ing or pouring extra money into upgrades in the homes ever since.
Whenever I pull up Portsmouth/Rye on realtor.com what I first notice is that most listings over a certain price have all been extensively renovated (often in the spirit of “This Old House”) They stand out from my CNY community that did not see the huge run up in prices. Here you’ll often see where older people have lived in a home forever and just let it run down. I’ve been in so many homes that you can imagine were stunning in the 70s when they were first built but not one red cent has been spent on the property since, a neglect that often includes deterioration requiring expensive fixes. Eventually they may be abandoned. Only larger, more expensive homes or lots w/views ever seem to be resurrected after abandonment often by an investor or someone else w/much deeper pockets than the coastal 1990s refiers that I know. Here all that income that went toward the renovations in that coastal town went to pay the school taxes here. I’m sorry to report the rate of upwardly mobile graduates (you can pull up notable graduates from any school online) is not that different between the two.
you’re not giving leverage and hubris enough credit here.
Hey that’s kinda poetica like CarrieAnn
Moronic salaries still on the coast, too, then.
House prices on the coasts are 2-3x (if not more) than in flyover country.
Salaries are maybe 20-30% higher.
Salaries are 20-30% higher for the same kind of jobs.
But there are many jobs on the coast that are just not there in flyover country, at least not in the same numbers or concentration.
Agreed, but those are “elite” jobs and there aren’t really all that many of them, at least as a percentage of the job base.
The elite jobs would explain the high prices in places like the Hamptons, but not in the ordinary places.
It’s not just the Hamptons. How about most of Silicon Valley? Just the number and variety of tech jobs (despite all the so called cuts/offshoring) is mindblowing.
Most of the younger Silly Valley crowd commute from far away as they could never afford to live there. The folks who live in Palo Alto, Los Gatos, etc. either bought long ago when it was semiaffordable or they have elite jobs.
My husband asked for a transfer within the same company. Boston MA to CNY: same pay. At the time homes cost twice as much out there as here (if you don’t include taxes in the numbers)
Maybe CNY isn’t flyover enough?
“House prices on the coasts are 2-3x (if not more) than in flyover country.”
“Moronic prices still abound on the coast.”
Same on the Left Coast…sellers are not going to just give it away, and hence they keep their homes on the market forever at prices where they cannot find a buyer.
They’ll end up giving the houses away, after it bankrupts them trying to hold for for a price that will make them whole.
Wells Fargo foreclosure alternatives workshop today and Thursday
by Kim Miller
Wells Fargo is offering a free foreclosure alternatives workshop today and tomorrow in Fort Lauderdale for homeowners struggling to pay their mortgages.
The workshop, which is open from 9 a.m. to 7 p.m. both days, is being held at the Greater Fort Lauderdale/Broward County Convention Center, exhibit hall A, 1950 Eisenhower Boulevard.
Attendees should visit http://www.wfhmevents.com/leadingthewayhome or call
1-800-405-8067 for information and what to bring call to the workshop.
From a press release about the workshop:
Approximately 150 Wells Fargo home retention team members – including bilingual specialists – will be on hand at the upcoming workshop to assist customers. Where possible, borrowers will receive a decision on a workout, loan modification, or other options, on site or shortly following the workshop.
Options include Wells Fargo’s own loan modification program and the federal government’s Home Affordable Modification Program (HAMP). This is the 47th such workshop that Wells Fargo has held since September 2009. Wells Fargo has met with more than 28,000 customers at its 46 Home Preservation Workshops.
http://blogs.palmbeachpost.com/realtime/2011/12/07/wells-fargo-foreclosure-alternatives-workshop-today-and-thursday/ - 42k -
From the AP (linked from Drudge): New evidence shows tabloid spied on Murdoch critic
“LONDON (AP) — Newly disclosed evidence in Britain’s tabloid phone hacking scandal confirmed Wednesday that an outspoken critic of Rupert Murdoch was put under surveillance by his now defunct tabloid the News of The World.
Lawmaker Tom Watson, who has led efforts to expose the extent of malpractice in Britain’s newspaper industry, was followed for five days in 2009 by private investigator Derek Webb, a former police officer.
Law firm Linklaters, which represents the management and standards committee of Murdoch’s News Corp., said in a letter sent to Parliament’s Culture, Media and Sport committee - which is investigating phone hacking - that three employees of the tabloid were responsible for commissioning Webb to spy on the Labour Party legislator.”
Yes, well, that old dried out media mogul is lobbying Congress to restrict the internet. Was a headline I saw out of the corner of my eye yesterday.
Emphasis on “OLD.” I was thrilled to see that son James, who was clearly being groomed, is nose deep in the phone hacking scandal. Dynasty broken?
“Dynasty broken?”
Only if the money dries up.
2 articles from Politico:
Barack Obama’s minority support strong in swing states
“African-American and Hispanic voters in swing states still back President Barack Obama by overwhelming margins and are motivated to go to the polls — but Latino support rates are lagging behind 2008 levels, according to a poll of likely voters in 11 battleground states conducted by Brilliant Corners Research and obtained by POLITICO.
About nine in 10 blacks in swing states still back the president. While 71 percent of Latinos in swing states still approve of Obama’s performance, only 64 percent now say they are leaning toward him or plan to vote for him in 2012. That’s slightly worse than the 67 percent of Hispanic voters who supported Obama in 2008.”
And: EXCLUSIVE – PAUL FIRES BACK AT REPUBLICAN JEWISH COALITION
“Ron Paul was the only presidential candidate excluded from yesterday’s day-long Republican Jewish Coalition forum. They said he’s not sufficiently supportive of Israel. The Texas congressman’s campaign puts their best surrogate – Ron Paul – in front of a camera for a seven-minute sit-down with author Jack Hunter to explain his position on Israel in the context of his larger view on the place of the United States in the world. Paul notes his service on the House Foreign Affairs Committee.”
F Israel. And before anyone reaches for their ADL card know my wife is Jewish and my kids 50%.
It has nothing to do with being Jewish and everything to do with corrupt, devious individuals who operate a murderous racket under the protection of a sovereign state.
Why are we funneling tax payer $$$ to support their insidious corruption and murder?
It’s good business.
“They said he’s not sufficiently supportive of Israel.”
And I would say that Israel is not sufficiently supportive of the US. Yes, Paul does not like foreign policy controlled by other countries. I agree. If a politician doesn’t put their nose up Israel’s azz, they’re on the blacklist. Yeah, how much money and other support do we give this country? And for what?
They are required to spend most of the “aid” on military equipment from US companies. It keeps them from developing a larger arms, etc. industry of their own and then selling to countries we don’t like but they don’t care much about.
ECB cuts key rate to 1%
(bloomibergi)
The European Central Bank cut interest rates for a second straight month and may delve even deeper into its toolbox today to stimulate bank lending and fight off a recession…
“They will have listened to the banks and will start some measures to alleviate some of the strains in markets,” said Christoph Rieger, head of fixed income strategy at Commerzbank AG in Frankfurt. “They will also keep open the option to go below 1 percent on rates, that’s no longer the magic floor.”
————
This is starting to sound like blackmail from the CNBC school of suggestion: make money cheap or we won’t lend. (however, it’s good for people who want to buy a house…)
It’s not that they don’t want to lend, it’s they can’t find anyone to borrow that will be able to repay.
It used to be lenders didn’t care is the loan was repaid because they didn’t have to keep the loans. Now they do care because now they have to keep the loans.
But the economic distortions caused by the “didn’t care” days are still with us, thus the lending (or absence of lending) will reflect these distortions until the distortions have been driven from the system.
The Great Expansion of the global economy was brought about by easy money. Now that the money is no longer easy - easy to get - the global economy has turned from one that was expanding to one that IS NOW contracting.
Cheap money does not necessairly translate to easy money; There is a risk factor that needs to be considered. And it is this risk factor - not just the interest rate - that determines whether money will be loaned out or not loaned out.
The price of a loan - its interest rate - needs to be connected to the risk of the loan. If the risk of the loan is not offset by even zero percent interest rates then there still won’t be any lending because the risk/reward ratio to the lender will still be out of whack.
Right now the price of the loan is inversely correlated to the risk of the loan. The entities who are most certain to default get the lowest interest rates, so as to postpone the default. This is being done to keep the squeeze on the turnips. Without the flow of juice from the turnips, the whole host/parasite relationship would break down. Likely that whole generations of turnips would escape the wine press.
It’s going to happen anyway, just not this week.
It’s a great time to not be a turnip, that’s for sure!
“It’s not that they don’t want to lend…”
I don’t get this; why would banks want to lend at 1%, especially in times of deflation? A bank might earn more in real terms just stuffing the money under the mattress and waiting for deflation to run its course, instead of making a loan which may never be repaid at an interest rate that doesn’t price in the risk of default.
The one percent is the bank’s borrowing costs, not the rate it wants to charge for its loans. My point is that even at one percent borrowing costs the banks won’t want to loan because there stands before it the overiding issue of probably not getting its money back from any loansit makes.
Before banks didn’t care all that much, now they do.
“The one percent is the bank’s borrowing costs, not the rate it wants to charge for its loans.”
Point taken. But I still suggest it is hard for banks to charge enough to cover default risk in the present lending environment. Especially when they have little or nothing to lose holding on to money when inflation is so close to negative.
“But I till suggest it is hard for banks to charge enough to cover drfault risk in the present lending environment.”
And this is my point.
And since money is borrowed into existence diminished borrowing translates to a diminished amount of money put into existence, put into circulation.
A diminished amount of money put into existence and into circulation creates a shortage of the stuff. And this shortage of the stuff is what makes it the king.
“And this shortage of the stuff is what makes it the king.”
There’s only a shortage of the stuff down here in 99%-ville. The 1%ers are flush with the stuff, and will outbid us on any assets of value to them- stocks, commodities, prime RE, politicians, etc.
It’s great fun to be outbid on stuff, only to have it divided into smaller portions and sold or rented to us at higher prices.
I think you guys are finally beginning to understand the real dangers and evil intent of the Federal Reserve System, as foreseen by Thomas Jefferson:
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”
Welcome to the new world. Banksterland.
I am also reminded of Dennis Kucinich’s remarks to Neel KashKari (been in my head all morning) during the TARP hearings……”we don’t doubt that you’re working hard, we just want to know who you’re working for” ……
There’s only a shortage of the stuff down here in 99%-ville. The 1%ers are flush with the stuff
For them, the candy crapping unicorn isn’t a mythical creature.
I don’t think we’re in deflationary times. The yearly “All Items” increase from the BLS November 2011 CPI summary was 3.5%. That means my money buys 3.5% less than it did a year ago:
http://www.bls.gov/news.release/cpi.nr0.htm
Schedule of CPI releases: http://www.bls.gov/schedule/news_release/cpi.htm
Plus allowing deflation would be bad for the FIRE sector. The government has used trillions of dollars to help them, including the RE market. So Helicopter Ben’s creed is avoid inflation at all costs.
“my money buys 3.5% less than it did a year ago”
When your pay goes down faster than the price of peanut butter goes up, then you’ll get it.
“That means my money buys 3.5% less than it did a year ago:”
I’m sure we all got very healthy raises the past few years that more than compensate for the erosion of purchasing power—right?
It’s not that they don’t want to lend, it’s they can’t find anyone to borrow that will be able to repay……………..
When did that start to become an issue? Give out loans. Get money flowing into the “economy”. Isn’t that the goal of the bankster gang?
If the loans don’t get paid back, just ask Neel Kashkari who will get more free taxpayer funds.
Banks want to lend (that’s how they make money) and they find plenty of people that are very likely to pay them back. They find fewer than they did 6 years ago, but quite a few more than they did 2 years ago. For all but the dumbest banks, losses are down even more than expected in 2011.
My business name is very similar to a loan company’s name. You should hear the phone calls I have been getting. People asking me about loans as if their lives depended on a “yes” answer.
They’re really crushed when I tell them they have the wrong number.
Agree Max. Today is one of the best lending environments in a long time for those with capital to lend.
You can force people to put more down, you can charge higher rates, and asset values have generally already crashed, so you are more secure than in many times in the past.
Hard Data: LPS reports that the default rates for 2010 and 2011 vintage home loans are among the lowest in history.
Experience: It is possible today to buy foreclosed homes and rent them out for a 7-8% unleveraged yield (rent minus all expenses, divided by cost). Borrowing costs are ~5%. It is VERY difficult to find a lender who would be willing to give you even a floating rate loan (taking away their inflation risk) on such a thing with 30% down. Rents could fall by a significant amount, and debt service would still be met.
What we are hearing from the banks is that the Fed is still keeping the screws to banks, making it hard for them to lend.
Lenders today can be very selective in the loans they make.
Slim Chance of Getting A Loan In Arizona.Com -
Good thing a consumer based economy no longer needs consumers or this could be a problem!
Investor sees huge cost to settle mortgage mess
By Svea Herbst-Bayliss
NEW YORK | Tue Dec 6, 2011 9:35am EST
NEW YORK (Reuters) - Vincent Fiorillo, a prominent mortgage investor, on Monday put at least a $100 billion price tag on cleaning up America’s mortgage crisis.
That figure is four times the $25 billion that has been widely bandied about in ongoing settlement talks involving several dozen state attorneys general and a handful of large U.S. banks with large mortgage servicing operations.
Fiorillo, a portfolio manager with Doubleline Capital Management, said $25 billion would not be sufficient to end private litigation against the banks over faulty mortgages or keep at bay other state attorneys generals mounting their own lawsuits.
“I like the idea of a big settlement because it gives everyone a clean start,” Fiorillo, who oversees a $20 billion bond fund, told the 2012 Reuters Investment Outlook Summit. “We need to clear things out.”
He said a $100 billion deal would go a long way to enable loan modifications for homeowners whose mortgage balances exceed the value of their homes and to pay back investors who lost money on securities backed by questionable mortgage loans.
http://www.reuters.com/article/2011/12/06/us-investment-summit-fiorillo-idUSTRE7B42NT20111206 - 102k
Its still paying back investors who willingly bought such garbage, and leave tens of millions of Americans in a deeper hole by jacking up interest rates when your credit card renews.
The CC law means banks cant raise the interest your past balance only the new one. so goodby 8% hello 19.9% even if you never paid late or went over or don’t even know your pin # to take out a cash advance.
Boy am I glad I voted for Jerry Brown. Do you think the California State AG would be going after Megabank, Inc if former Goldman Sachs board member Meg Whitman’s were governor?
California, Nevada team up to investigate mortgage fraud
By Brady Dennis, Published: December 6
View Photo Gallery — Flashback: Last year, some mortgage lenders and government officials took action after discovering that many mortgage documents were mishandled.
In the latest sign that some attorneys general are no longer pinning their hopes on a broad state and federal settlement with big banks, two states battered by housing foreclosures announced a plan Tuesday to combine forces to investigate mortgage fraud and related misdeeds.
California Attorney General Kamala Harris and Nevada Attorney General Catherine Cortez Masto said they intend to team up to look into a wide array of abuses, including mishandled documents, shoddy loan servicing, and the questionable ways in which mortgages were bundled and sold to investors.
In September, Harris pulled out of settlement negotiations between state and federal officials and a handful of the nation’s largest banks that began last year after widespread foreclosure paperwork problems came to light, saying she “had concluded this is not the deal California homeowners have been waiting for” and that she would pursue an “independent” path forward.
“Homeowners want accountability and they want consequence, and they deserve to have both,” Harris said. “We have a duty to conduct a full and fair investigation.”
Meanwhile, the settlement being negotiated by a coalition of state attorneys general and federal officials would force banks to overhaul the way they service loans and pay about $25 billion in penalties that could aid troubled homeowners. Talks have stretched for more than a year, but officials say they are pushing for an agreement by year’s end.
California’s absence has posed particular concern. Banks have offered to pay far less in fines if the state does not sign on — $18.5 billion, according to one official — and some critics have suggested that the deal might die without California’s participation.
“We don’t think the deal is dead without California,” said Geoff Greenwood, spokesman for Iowa Attorney General Tom Miller, who is leading the talks. “But California is arguably the state most impacted by foreclosures, so it is an important state.”
…
Hooray. Stop the “settlements”. Start the prosecutions.
That’s how we deal with illegal activity. NO more pay the fine and your off the hook.
OPINION
DECEMBER 7, 2011
The Bond Buyer’s Dilemma
The yields on long-term U.S. Treasury bonds will likely fall below inflation for years. Fortunately, some reasonable alternative strategies exist for investors.
By BURTON G. MALKIEL
For years, investors have been urged to diversify their investments by including asset classes in their portfolios that may be relatively uncorrelated with the stock market. Over the 2000s, bonds have been an excellent diversifier by performing particularly well when the stock market declined and providing stability to an investor’s overall returns. But bond yields today are unusually low.
Are we in an era now when many bondholders are likely to experience very unsatisfactory investment results? I think the answer is “yes” for many types of bonds—and that this will remain true for some time to come.
Many of the developed economies of the world are burdened with excessive debt. Governments around the world are having great difficulty reining in spending. The seemingly less painful policy response to these problems is very likely to keep interest rates on government debt artificially low as the real burdens of government debt are reduced—meaning the debt is inflated away.
Artificially low interest rates are a subtle form of debt restructuring and represent a kind of invisible taxation. Today, the 10-year U.S. Treasury bond yields 2%, which is below the current 3.5% headline (Consumer Price Index) rate of inflation. Even if inflation over the next decade averages 2%, which is the Federal Reserve’s informal target, investors will find that they will have earned a zero real rate of return. If inflation accelerates, the rate of return will be negative.
We have seen this movie before. After World War II, the debt-to-GDP ratio in the United States peaked at 122% in 1946, even higher than today’s ratio of about 100%. The policy response then was to keep interest rates pegged at the low wartime levels for several years and then to allow them to rise only gradually beginning in the 1950s. Moderate-to-high inflation did reduce the debt/GDP ratio to 33% in 1980, but this was achieved at the expense of the bondholder.
Ten-year Treasurys yielded 2.5% during the late 1940s. Bond investors suffered a double whammy during the 1950s and later. Not only were interest rates artificially low at the start of the period, but bondholders suffered capital losses when interest rates were allowed to rise. As a result, bondholders received nominal rates of return that were barely positive over the period and real returns (after inflation) that were significantly negative. We are likely to be entering a similar period today.
…
We have seen this movie before. After World War II, the debt-to-GDP ratio in the United States peaked at 122% in 1946, even higher than today’s ratio of about 100%. The policy response then was to keep interest rates pegged at the low wartime levels for several years and then to allow them to rise only gradually beginning in the 1950s. Moderate-to-high inflation did reduce the debt/GDP ratio to 33% in 1980, but this was achieved at the expense of the bondholder.
As I recall the middle class was strong, and the US manufactured most goods and unemployment was low 3.5-4% or so. Also the rest of the world was rebuilding driving up demand. This is not the same movie as 1946.
Inflation in food and fuel will cause a decrease in demand for manufactured goods this time. People have little in teh way of savings, their jobs are less secure, and they can’t borrow more money, adn they can’t send the spouse off to work for the first time.
It looks like the labor market is finally starting to recover from the recession that started on Republican President George W. Bush’s watch, just in time to undermine the current crop of Republican candidates’ accusations that Obama mismanaged the economy.
Never mind the larger point that the very notion “it’s all the president’s fault” when unemployment ticks up is a bit suspect.
Unemployment claims at 9-month low
By CHRISTOPHER S. RUGABER, Associated Press
Updated 15m ago
WASHINGTON – The number of people applying for unemployment benefits fell last week to the lowest level in nine months, evidence that the job market is improving.
The Labor Department said Thursday that weekly applications dropped by 23,000 to a seasonally adjusted 381,000. That’s the lowest number of applications since late February.
The four-week average, a less volatile measure, fell for the ninth time in 11 weeks to 393,250. That’s the lowest average since early April. Applications that drop below 375,000 — consistently — tend to correlate with a steady decline in the unemployment rate.
There are some signs that the economy and job market are improving modestly. The unemployment rate fell to 8.6% in November, the government said last week, down from 9% the previous month. That’s the lowest rate in two and a half years.
…
What difference does it make when the neocons are psychopathic liars in the first place and who never let the facts get in their way?
Am I the only one here who thinks Michele Bachmann is kinda sexy?
And with all those kids, you know she puts out.
It certainly wasn’t her personality that attracted the guy.
Over the years I’ve met more than a few fundy guys who married their own mini Michele’s.
Use your vision benefits to get an eye exam before the end of the year!
I love the smell of paranoia in the morning
I bet Michele smells good in the morning too
I’m sure Michelle’s dog thinks so too. Ever met a dog that didn’t want to give you the sniff test each morning? Or whenever you return home? It’s like going through airport security, I’m tellin’ ya!
The Labor Department said Thursday that weekly applications dropped by 23,000 to a seasonally adjusted 381,000.
Still sky high, but at least it isn’t rising (until perhaps the “revised” number is released later without any fanfare).
ECB head says no deal on bond buys
December 8, 2011 9:08 AM ET
FRANKFURT, Germany (AP) - The head of the European Central Bank says there’s no deal with eurozone governments for the bank to step up government bond purchases in return for political leaders reaching a deal on tougher rules to prevent governments piling up debt.
Draghi said he was “surprised” at market interpretation of remarks he made last week, in which he said “additional steps” could follow agreement on a new eurozone debt pact.
Markets took the remarks to mean the bond buys would increase if leaders agree on a pact at a summit starting later Thursday.
Bond buys would lower borrowing costs for indebted governments. But the bank has said it’s up to governments to fix their finances and become clearly creditworthy.
…
The misinterpretation is understandable. In the US, when the government or Fed announce a policy action, the result is traditionally more debt for the country.
For example, “additional steps” in the US means more debt through stimulus and bond buying.
When Bernanke says he will take “aggressive action”, it means more debt.
When Geithner says house prices will be supported, it means more debt.
When a Fed or Treasury official says, “Gee, the weather is nice today,” it means more debt.
8 December 2011 Last updated at 08:48 ET
France’s Sarkozy warns Europe risks disintegration
French President Nicolas Sarkozy speaking in Marseille Mr Sarkozy says Europe is in much danger
French President Nicolas Sarkozy has warned that “never has the risk of disintegration been greater” for Europe.
He was addressing a gathering of European leaders of the centre right in Marseille.
EU officials are preparing for a key summit in Brussels, where they will be trying to clinch a deal on how to tackle the eurozone debt crisis.
The talks are described by analysts as “do-or-die” for the eurozone nations.
Mr Sarkozy of France has said that Europe is in much danger.
“Never has Europe been so necessary. Never has it been in so much danger,” he said.
“Never have so many countries wanted to join Europe. Never has the risk of a disintegration of Europe been so great. Europe is facing an extraordinarily dangerous situation.”
He said the eurozone economies still had a few weeks to decide, but that time was working against them.
The gathering in Marseille of the centre-right European People’s Party is a chance to hear the concerns of smaller eurozone nations. On stage or in the corridors of the congress, they have signalled their resistance to key elements of the Franco-German proposal. One of them is Ireland, which is opposed to the idea of wholesale treaty change - that of course might trigger a referendum - and the line in the Franco-German proposal that would move Europe towards a single corporate tax rate.
The Europe Minister for Ireland, Lucinda Creighton, said: “We have our red lines too. This is not a fait accompli just because two have found agreement.”
There are other reservations among the Swedes, the Finns and the Czechs. Among the club of the smaller nations, there seems to be greater inclination towards Herman Van Rompuy’s proposals of an amendment to the Lisbon Treaty - easier to agree, quicker and less messy for national parliaments.
And so after the optimism that surrounded the Franco-German deal earlier in the week there are doubts emerging.
“The diagnosis is that we have a few weeks to decide because time is working against us. If we aren’t in agreement on this, I fear that we won’t be able to agree on anything. That’s the analysis.”
…
Just watched “Shrek” again the other night.
Sarkozy reminds me of Prince Farkwad, er, I mean Farquaad.
Sorry Wall Street — no ECB-QE for thee.
Stock futures fall on ECB comments
NEW YORK | Thu Dec 8, 2011 9:17am EST
(Reuters) - Stock index futures fell on Thursday as traders cited a statement by the president of the European Central Bank expressing caution over more bond purchases to ease the region’s debt crisis.
S&P 500 futures fell 10.4 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 85 points, and Nasdaq 100 futures lost 14.5 points.
…
Can’t Bernanke just do QE for them on their behalf?
Isn’t the FED capable of anything money-printing?
Who dares question the FED?
Yeah, thats right. Thought so.
What’s a charter?
Bulletin » ECB chief Mario Draghi says central-bank charter bars monetary financing
Premarket gains vanish as ECB chief speaks
Draghi: ECB hands are tied
European Central Bank President Mario Draghi says the EU’s treaty prohibits “monetary financing” in response to a question about why the central bank doesn’t ramp up its bond-buying program.
Charters are documents issued by a sovereign government that create a Corporation and spell out it’s purpose, it’s rules and the limitations of it’s actions. Many States issue Article of Incorporation. These were formerly called Charters. The terms are used interchangeably.
Next questions:
1) Does the Fed have a charter?
2) What (if any) limits does it impose on policy measures to confront a crisis?
What’s a charter?
“Mr. Justice, you will know it when you see it.”
Alan Novak/Potter Stewart
India refuses to let US retailers into their country. Decides Free Trade ain’t that great when its going to cost Indians jobs:
http://www.nytimes.com/2011/12/08/business/global/india-suspends-plan-to-let-in-foreign-retailers.html?_r=1&ref=business
In other news, Congress agrees to let more Indians and Chinese into the US to work:
http://www.nytimes.com/2011/11/30/us/green-card-backlog-may-ease-for-some-from-china-and-india.html?scp=1&sq=india%20china%20work%20visa&st=Search
Obviously, the Indian politicians are holding out for bigger bribes.
Like I’ve said before, other countries jealously protect their employment base. We give ours away.
Free trade only works if EVERYONE is trading freely.
In the basic economics 101 class, the free trade model is demonstrated to go very badly for a country with free trade engaging in trade with country which is protecting itself.
The net result is de facto mercantilism.
Unregulated capitalism quickly devolves into plutocracy, oligarchy and monopoly.
Free trade quickly devolves into mercantilism.
We don’t give them away, we sell them. All the money goes to CEO’s and stock holders.
True, but they are going at fire sale prices.
Walmart has been in India for a while now, but some restrictions:
1. they need to partner with a local company
2. they cannot go for “retail”, but they can do a Costco (big stores, targeting at “wholesale” [no definition of wholesale, so it can really be anything])
There are a lot of small stores that might get wiped out if foreign retailers enter the Indian market. I think the biggest beneficiaries, if the law had passed, would be European retailers like Carrefour, Tesco, Metro mart rather than Walmart. I also think local Indian companies would have done a pretty good job of teaming up with foreign companies to challenge the big players. The end customer would be a winner too. But the retail distribution channel in India employs a *lot* of people whose existence would be put at risk.
Dec. 8, 2011, 3:11 a.m. EST
Asia shares decline with Europe in view
By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — Asian share markets closed lower Thursday, with investors cautious ahead of a European Central Bank decision and a summit to tackle the euro-zone debt crisis.
…
Short Sale Viewing Yesterday…
Bought it in 1984 (27 years ago)
$480K April 2011 loan balance
$440K Short Sale Approved balance
$60K pool/spa resurfacing, interior fixing est
HOUSE NEEDED EVERYTHING- beaten up bad
Backyard was a fish bowl
And of course our buyer’s broker plugged the nice neighborhood, which it was. He said you will pay $440K or 16 week delay. Last night it dropped $10K. Evidently, our broker is a liar. If it was locked in, why did it drop on the same day?
I’d rather live in a marginal area (1/2 way joking) than to to BK trying to fix her mess. Oh, and although we would have paid for her “Viking” stove, it was excluded.
If I drank, I’d be starting now! LOL
Add: With all that money she pulled out of that place (IIRC she paid $138K-Loan 27 yrs later at $480K) where is most of that $. Surely wasn’t put in that place.
It provided a lavish lifestyle for a few years. Trips abroad. Fine clothes and dining…………..perhaps a “personal trainer”. It’s good to spend money when you don’t have to earn it first.
Diogenes
And we’re suppose to pick up her bill? Screw that noise. We’re not rewarding that lifestyle.
She’s was complaining that BOA wasn’t being fair to her. Honestly, 27 years into it, she should be almost house debt free.
(some exceptions like medical or job loss.)
We are on the same page. My whole revulsion to the zeitgeist of this lending fiasco and money spending spree is that responsible people who have saved their money and paid down their debts (the only reason for buying a house), is that the responsible few are being fleeced by the mob.
Anyone who has been in a house for more than 20 years should be approaching the mortgage burning party. The “financialization” of the American economy said if you had your “MONEY TIED UP” in your house, you didn’t understand financial planning. You should take it out and “invest”, so your money could work for you. I was repelled at this “expert” line of reasoning, in that paying off debts is equivalent to earning money. The sooner you shed the debt, the sooner you would have “disposable income”.
These debtors spent their future earnings (debt). Now they want a do-over on the payback. Fine, if the debtholder agrees. I believe in free choices. Not fine if the debtholder is a bankster that is willing to forgive the debt subject to a “bailout” by you and me.
Anyone who has been in a house for more than 20 years should be approaching the mortgage burning party. The “financialization” of the American economy said if you had your “MONEY TIED UP” in your house, you didn’t understand financial planning. You should take it out and “invest”, so your money could work for you. I was repelled at this “expert” line of reasoning, in that paying off debts is equivalent to earning money. The sooner you shed the debt, the sooner you would have “disposable income”.
I was just as repelled as you were.
What really blew my mind came from a very basic understanding of accounting principles — people were taking equity out of their houses and turning it into a liability, debt. Which they had to repay, plus interest.
Diogenes & Slim
Yeah, I’m pissed off, too. We sold and got caught up in the $20K/mo up cycle here in So Ca. We’ve retained most of our housing profits, and are now ready to pay cash for a simple one-story. No debt, good credit 825+, and our housing $ has earned us almost no interest.
Meanwhile Miss Short Sale from yesterday has had a better life on OPM. Meanwhile, us conservative folks got screwed. I’m mad, and that’s an understatement.
We’ve never ever used our homes as a credit card, and we’ve had unemployment in our lives. When times are rock’n we’re saving. These bubble spenders knew what they were doing. And now that decision is rewarded. Oh man, who ever said life wasn’t fair, knew their stuff. But I am not human trash. My grandma use to say “You are what you do”!
For a while there was a movement at angryrenters.com to speak out against this injustice. I too an furious that I am being asked to pay to help the very people that looked down upon me and even publicly humiliated me for “throwing away my money” on rent, and now can’t pay for the things they have agreed to.
It makes people lose faith that the system is even remotely fair. When that happens, people lose faith in the system in general. Since our money is backed purely by faith, you can see what happens next. Wash, rinse, repeat.
Solution: Force banks to take their losses and dump foreclosures at firesale prices.
Oh, and end the Federal Reserve Bank™.
The BK offerings which we’ve seen around here are interesting. I swear they slap a $150kish price tag on everything out there whether full of mold, whether on a magnificent lot, no matter the size of the home, whether the entire house is ruined after the pipes burst, whether it’s in close to turnkey shape. It is just so surreal and devoid of any logic.
Somebody on here recently described that as evidence that prices are being set by available credit rather than income.
I bought into that argument when I realized I can pull up housing up to several hours away from the job center of Syracuse and still see that same exact $100/sq foot basis that I thought this town’s inventory was stuck on. Sometimes there is an adjustment for land but quite often there’s not.
What’s the median price to income ratio up there in People’s Republic of Boulder? 8 to 1?
They can’t all be equity locusts or trustafarians, where does all the money come from?
I’m not sure, I’d have to look up both numbers. Houses I like hang right in there at about 500k. I don’t really care about the really expensive stuff downtown and up against the mountains.
Other than legitimately wealthy people, the money comes from all the people who would like to live there. When you create a jillion jobs and only a few houses, you get a lot of commuting. And almost every one of those commuters would prefer to live closer in, all else being equal. So prices only have to fall a tiny bit to create the demand necessary to make the sale even during some pretty tough times. I’m not saying it won’t fall eventually, but times will have to get so tough than the number of jobs equals the number of houses.
I like your word choice, “legitimately wealthy people”. I would say there’s nothing legitimate about 90%+ of those and how they obtained their wealth, but that’s just class warfare…
WASHINGTON (AP) — The Republican-run House on Thursday voted to give Congress greater power to approve or reject major federal rules that the GOP calls “job killers” — regulations covering everything from health care to dangerous children’s toys.
The 241-184 vote on Wednesday sent the bill to the Senate, where majority Democrats are unlikely to place it on the schedule.
The legislation would shift power from unelected agency regulators, many of them experts in their fields, to Congress to make decisions on proposals with a potential economic impact of more than $100 million.
Democrats contend Republicans would use the authority to jeopardize rules covering health care, workplace and food safety, and protection from defective consumer products — and many more protections.
And you can bet the bribery would flow through SuperPACS in record amounts.
The congressional whores of all stripes in action. Imagine that.
Mr. CongressmanWhore….. Why do you call bribes “campaign contributions”?
So unelected people will better look out for our interests. If that’s the case, let’s just go straight to a dictatorship. By abdicating one responsibility after another, CONgress has already started us down that path.
Bill, there is plenty of room for “electeds” to shape policy — in the form of appointing thei buddies at many levels in those government agencies.
But I speak of the trenches: government pays in securities and bennies more than in $$ for a reason. People who are attracted to security and stability are more likely to be attracted to the work of protecting We The People. The greedheads who don’t give flip about regulations will jump ship for the easy money and martini lunches in private sector.
It is all the “agencies” with their CONSENT DECREES, and dealmaking that are the reason we are seeing CORRUPTION in government.
The BANKSTERS are not prosecuted because SEC cuts a “pay a fine” deal and then doesn’t bring charges.
The EPA does the same thing when is shakes down businesses. When people commit crimes they should be prosecuted, not allowed to cut a deal with a bureaucrat in an expanded Federal power grab.
Where is the accountability. I prefer a congressional hearing.
It’s you idiot Democrat fascists that think you can turn everything over to another “agency” and then all the world will work they way you think it should. Another level of government control.
We can see the Senate won’t give up their wonderful rule-making, unelected and unaccountable “creations” to govern the world. There’s just too many cushy jobs for supporters to fill….with top Federal pay scales and benefits.
You know…. you can be much more effective without the labels. I stopped reading when I got to “democratic fascists”. The entire lot of them are corrupt, bribe taking criminals. Not just dems. Not just GOP. ALL of them. And until you believe that, you’re part of the problem.
The 241-184 vote on Wednesday sent the bill to the Senate, where majority Democrats are unlikely to place it on the schedule.
The “TrueDoNothing$™” do something to prove that they aim to do nothing.
(Rumsfeld speak continues to ricochet, echoing whispers of sweet nothings in their ears, still!)
“When Ford lost the 1976 election, Rumsfeld returned to private business life, and was named president of G. D. Searle & Company, a noted pharmaceutical company, during which time he led the legalization of Aspartame.”
So it’s self-evident by now that OWS has been co-opted by The Free Shit Army under the broader umbrella of banks/reaItors/mortgage brokers to “keep people in their homes”.
So now the Housing Crime Syndicate maintains grossly inflated prices by encouraging home debtors to double down on their debt and refi into 50+ year notes. Keeps the inventory low, demand up, suckers deeper in debt and and Housing Crime Syndicate wallets filled with cash.
and Housing Crime $yndicate wallet$ filled with ca$h.
“Pattern$ of behavior$”,… are not always parallel-perpendicular / vertical-horizontal,…sometimes they venture into the 5th dimension twilight zone of circular-spiral “privatized” unending repetition$.
let them eat cake…………m. a.
“The Federal Reserve said Thursday in its massive flow-of-funds report that household debt fell at a seasonally adjusted annualized rate of 1.2%, as a 1.8% decline in mortgage debt offset a 1.2% gain in consumer credit. The mortgage debt decline came as consumers took out fewer mortgages, paid off or had debts forgiven.”
So the growth of the economy is dependent on people defaulting on their mortgages faster than they run up their credit cards.
That’s called “savings”.
If you keep your money in a bank account you earn 0.1%
If you pay off your mortgage you make 4-6%.
You already have the risk on the house so you aren’t adding risk by paying it off. I expect this trend to continue.
I made the decision to pay off my 7.0% mortgage early a long time ago, basically around 2000. Interest rates were higher then, but not that high, and the stock market didn’t look good for savings.
And then things got interesting
FRANKFURT (Reuters) - A suspicious envelope sent to Deutsche Bank Chief Executive Josef Ackermann - the face of capitalism in Germany - was a functioning letter bomb, investigators said on Thursday.
It sounds like if you beat the middle class enough they get angry
Yep.
The Problem: The Corporate-Government Axis of Corruption
The Solution: Not the polling place
Stop your bellyaching class warfare. If you blow up the job creators with letter bombs that the middle class won’t have jobs, right?
Uh huh…. we “neeeed” them…. don’t harm them. They are our friends. (pulling knife out of sheath)
Where’s Deathstroke the Terminator when you need him?
Here in Arizona, the snapping up continues. From our leading daily fishwrap:
Anemic job growth will hold back housing
Forecast: Don’t expect recovery till 2015
The money quote:
Pollack acknowledged that many homes are being snapped up now by investors. He expects many of those investors to hang on to the properties as rentals.
To which I say:
A lot of these in-VEST-ors are going to get a crash course in the realities of the landlording biz. And it’s not going to be pretty.
I was at this event. The guy 2 speakers before Pollack was from Chase and basically said everyone should buy stocks. However, he also said everyone should sell treasuries as rates are below sustainable levels. Rates have to go up.
I actually agree with Pollack that housing in most of AZ has likely already bottomed if I can also assume that rates will stay where they’re at. He didn’t address that little detail at all.
Here in Tucson, the sub-$150k and sub-$100k houses are moving briskly, as long as they’re not trashed out foreclosures. However, a lot of what’s on the market at those price points are foreclosures.
This can save the USA,
There were always known to be additional untapped reserves of oil and gas in the petroleum-rich Gulf of Mexico, off America’s shores, and in the American West and Alaska. But even the top energy experts never imagined just how vast the energy there was — or that it was also beneath far more unlikely places such as South Dakota, Pennsylvania, Ohio, and New York. Some studies suggest the United States has now expanded its known potential gas and oil reserves tenfold.
The strategic and economic repercussions of these new finds are staggering, and remind us how a once energy-independent and thereby confident American economy soared to world dominance in the early 20th century.
America will soon again be able to supply all of its own domestic natural-gas needs — perhaps for the next 90 years at present rates of consumption. We have recently become a net exporter of refined gas and diesel fuel, and already have cut imported oil from OPEC countries by 1 million barrels per day.
With expanded exploration and conservation, the United States could also eventually supply half of its own petroleum needs. If we were to eliminate 5 million barrels of our current daily 9 million barrels of imported petroleum, the annual savings could reach nearly $200 billion per year. Eventually, the new gas and oil could add 1.6 million new jobs and up to nearly $1 trillion in federal revenue
drill baby drill………..and yes, it can be done with sensitivity to the enviorment,or shall we just allow the chinese to do it,with their horrible track record of total disregard to the enviorment.
With expanded exploration and conservation
I’m just about sure that the conservation ain’t going to happen. Too many joe six-packs/jane vente-lattes are addicted to their supersized-me cars and driving all the time for everything.
[Speaking of which, I'm starting to suspect that people in my social circle believe I'm a poor parent because the Chile's own neither a SUV nor a minivan...couldn't be, could it?]
that people in my social circle believe I’m a poor parent because the Chile’s own neither a SUV nor a minivan
Ha, what’s another way to say: who the ____ cares?
(Hwy50’s family is quite happy with their JEEP station wagon)
” SUV nor a minivan”
Ugh! Who would want either of those? They’re poor handling, not fun to drive (except in a straight line) and guzzle gas like there’s no tomorrow.
Then I learned that minivans can cost up to $40K … wtf?
I remember when governments used to ask people to conserve and I also remember when my cars got 33 mpg highway. My minivan presently gets 27 which is better than quite a few vehicles out there. We appear to be going backward. Doesn’t sound like leadership to me. I think they’re afraid to have people cut back on a taxable commodity. Or maybe they didn’t get the ok for the conservation blitz promotion from GS.
We’re actually going the right way. We did go backwards from 1995-2008, when the average car went from 4 to 8 cylinders, and the boomers used cash out refis to haul their fat asses around in SUVs.
Thankfully the gas price hike of 2008 put an end to it…some see it as being temprorary, I tend to think it’s permanant. Small is now the new cool.
Now if Toll Brothers, et al will figure it out. And also realize that smaller homes should cost less than newer homes.
and the boomers used cash out refis to haul their fat asses around in SUVs.
Can you say SLOBurban?
“Can you say SLOBurban?”
You are a racist
Huh? lol
But sedans get worse gas mileage now than they did in the 1980s. That’s what I mean by going backward.
Sheesh.
And to think that when I was growing up, my dad drove a VW Beetle — with a fabulous sound system. I loved to go anywhere with him in that car. The speakers did an especially good job with classical music, which we both adored. And still do.
Mom? She had an Opel station wagon, then a VW station wagon. Loved ‘em both.
We Slims did get some cross-eyed looks from some of our more, shall we say, conspicuously consuming neighbors. And we couldn’t have cared less.
I’m just about sure that the conservation ain’t going to happen
Mastercard numbers suggest that you are wrong. Gas consumptions has been falling even through the so called economic rebound.
Of course, there are sizable interests opposed to the new American gas and oil finds — not all of them foreign governments, but instead reflected in the current Obama-administration policy of halting new pipelines, placing moratoriums on offshore drilling, and putting lucrative federal lands off-limits. Yet if the United States does not produce much of the fuel that it uses, will the oil-exporting Gulf sheikdoms, Nigeria, or Iran better protect the world’s environment than American-based oil companies? Would our oil dollars or theirs be less likely to fuel terrorism, illegal arms sales, and rogue regimes
Dec. 7, 2011, 12:01 a.m. EST
Investing the Moneyball way
By Charles Sizemore
Risk on, risk off. No four words could better describe the frustrating year that was 2011.
Yes, I realize that the year isn’t quite over yet. We still have a few more weeks. But I, for one, am ready for a fresh start in the New Year. We’ve done reasonably well in 2011, but it has been a lurching, nauseating roller coaster ride to get here, and we would have suffered a lot less heartburn had we simply taken the year off.
For those of us who consider ourselves value investors, the risk on/risk off trade is particularly frustrating because the market has made little distinction in 2011 between the wheat and the chaff. When the market is in “risk on” mode, everything tends to rise in lockstep with little regard for price or quality. And investors differentiate even less in “risk off” mode, throwing out the baby with the bathwater.
If you’ve gotten whipsawed a few times in 2011, don’t feel bad. Even some of the all-time investing greats have suffered an annus horribilis. George Soros, the godfather of hedge fund managers, struggled to turn a profit this year and closed his fund to outside investors. And Pimco’s Bill Gross — the Bond King himself — has had one of the worst years of his career, finding himself at the bottom of his peer group.
…
I think I found another HBBer on MSNBC.
http://www.youtube.com/watch?v=G4yDCUJJm_U
Wow! Thank you. I missed DR that day. He’s on too early for me to catch.
OT question: How do they make those two mediocre girls look so hot?
Wow. That was very interesting. I think it does reflect what many here suspect.
WOW. Amazing.
+1
“we have a screwed up taxing system”
“heheeheeeheeeheee…”
Like plunging x2 ice picks deep into the ears of the $uffering $o’s!
Hwy plays Pink Floyd:
Money, it’s a gas
Grab that cash with both hands and make a stash
New car, caviar, four star daydream,
Think I’ll buy me a football team
Money get back
I’m alright Jack keep your hands off my stack.
Money it’s a hit
Don’t give me that do goody good bullshit
I’m in the hi-fidelity first class travelling set
And I think I need a Lear jet
Money it’s a crime
Share it fairly but don’t take a slice of my pie
Money so they say
Is the root of all evil today
But if you ask for a raise it’s no surprise that they’re
giving none away
Headline: “Dow drops below 12,000!”
It’s at 11,999. The PPT seems to have lost its mojo. The last minute rally fell short.
Bloomberg
The housing market collapse, historically low interest rates and corporations stingy with dividends helped cut the median household income in two of every three U.S. counties, the U.S. Census Bureau reported today.
The number of American households that made money from rent, interest or dividends fell by one-third to 24.2 percent in 2010, including residents of counties that encompass New York City and San Francisco.
When you make as much money as Jamie Dimon, you don’t need to know what tax rate you pay.
The JPMorgan Chase CEO — a recent target of Occupy Wall Street protesters — was asked at an investor conference today about what some see as a hostile political environment toward banks.
“Acting like everyone who’s been successful is bad and that everyone who is rich is bad — I just don’t get it,” Dimon responded.
Then he added: “Most of us wage earners are paying 39.6 percent in taxes and add in another 12 percent in New York state and city taxes and we’re paying 50 percent of our income in taxes.”
Most of us wage earners?
Paying 39.6% please the top rate w/o any deductions is 35%
I haven’t laughed that much in years.
He made 21 million last year. 14 million was in stock and options.
Let’s not forget all the other corporate gifts like insurance, travel, security, and the large payout at the end the golden parachute. If’ he’s lucky he’ll pull a Hank Paulson who sold all of his stock in GS tax free when he bacame treasury sec for an estmated tax savings of 200 million dollars, making him the highest gov paid official ever in the history of man.
news.yahoo
com/blogs/lookout/jpmorgan-ceo-jamie-dimon-doesn-t-know-tax-203135405.html
He can’t build walls high enough…..
If they could f* up his birthday dinner in 2008 then we could cut his head off. Burn, baby, burn…
“Acting like everyone who’s been successful is bad and that everyone who is rich is bad — I just don’t get it,” Dimon responded.
Neither did Marie Antoinette, Dimon. Neither did Marie Antoinette.
“…everybody who is rich is bad…”
Nah — just those who appear to have stolen or otherwise acquired their wealth through unscrupulous means.
Panic time yet?
Dec. 8, 2011, 5:45 p.m. EST
U.S. stock indexes down hard with Europe
Positive U.S. economic data overshadowed again
By Kate Gibson
NEW YORK (MarketWatch) — U.S. stocks lost sizeable ground Thursday as public sparring among European Union members jolted the market late in the session.
“There is such a thing as too much transparency, because there is too much posturing. This is very typical tactics, to leak out stuff about what you want to try to get the upper hand; unfortunately this is not stuff for such an important meeting,” said Marc Pado, U.S. market strategist at Cantor Fitzgerald.
…