March 8, 2012

Bits Bucket for March 8, 2012

Post off-topic ideas, links, and Craigslist finds here.




RSS feed

365 Comments »

Comment by rms
2012-03-08 00:59:37

Michigan woman wins $1-million lottery, still collects welfare
http://tinyurl.com/87srcyv

“A Michigan woman who won a $1-million lottery jackpot last fall admits she’s continued to collect $200 a month in public assistance. That’s not all: The 24-year-old also says she deserves the financial aid because she’s now saddled with expenses related to two houses.”

Comment by Liz Pendens
2012-03-08 06:30:24

Silly woman. Doesn’t she know that the food card is for cigarettes and beer? HAMP is what she needs for help with her house.

 
Comment by polly
2012-03-08 06:41:59

Well, this is the sort of thing you can expect when states eliminate the asset requirements (not having them) when passing out public assistance payments. They do it because it costs too much to use employees to check whether people on assistance have cars worth too much money or got a few thousand bucks from a life insurance pay out and the relatively few other ways that people with almost no income can actually end up with a few assets. Obviously a lottery win happens occasionally too.

Want to eliminate it? Bring back the asset requirements and hire people to enforce the rule.

Comment by Darrell in Phoenix
2012-03-08 06:48:44

Hiring people to enforce the rules would be more expensive than is spent providing assistance in the first place.

I have an idea. How about we end free trade to stop the downward pressure on wages and employment, get some non-debt based economics rolling, and eliminate the need for these assistance programs in the first place?

Oh, silly me. How nuts must I be to think we can’t keep increasing debt at 3x the sustainable rate, forever just to fund international trade imbalances and widening wealth disparity? Silly, silly me.

Comment by Hwy50ina49Dodge
2012-03-08 07:08:04

“Silly, silly me.”

[silly rabbit, trix's is for kids!]

You cannot directly pursue “Happine$$” [Aristotle-the non $olar calculator $age], if the end re$ult$ are to be: Governed “Perfection” & 341+ Million citizen-taxpayer$ dancing in the street$.

(Profe$$or Bear, seems like an economic$ / calculu$ problem, that dang “broken window$” theory is scattered everywhere and eyes can’t sort out anything in this “fix-it-now-today!” tool bag …) ;-)

(Comments wont nest below this level)
 
Comment by CarrieAnn
2012-03-08 07:21:45

I’d really rather let the cost of government subsidized items and industries revert to market supported pricing.

How about we end free trade to stop the downward pressure on wages and employment, get some non-debt based economics rolling, and eliminate the need for these assistance programs in the first place?

(Comments wont nest below this level)
Comment by In Colorado
2012-03-08 09:14:08

Then they’ll just get offshored to locales where there are subsidies.

 
Comment by CarrieAnn
2012-03-08 10:00:41

We’re offshoring houses?

 
Comment by In Colorado
2012-03-08 11:07:01

Since the context was trade, I thought you were talking about industries. Never mind.

 
 
 
Comment by Liz Pendens
2012-03-08 06:49:28

Remember, the lottery tickets are probably bought with welfare money (or at least cash that would otherwise be spent on other things) which would make the taxpayer a co-winner of any proceeds won. Another example of socialized losses (we get to pay for all of the losing tickets).

Comment by polly
2012-03-08 08:51:27

Welfare money is a gift. If you want to share in the results of the purchase of any lottery tickets, you could require that the person receiving the money enter into a partnership agreement so that any “results” of the purchases made with the money are shared in some way between the recipient and the government. However, if they buy food with the money, expect the state to have to come up with something to do with the end results.

(Comments wont nest below this level)
Comment by Liz Pendens
2012-03-08 09:20:29

Sorry, just a little unclear on how it all works when it comes to Free $hit.

 
Comment by Prime_Is_Contained
2012-03-08 09:55:07

You obviously haven’t focused enough on the system in order to get your fair share.

/snark.

 
Comment by Steve J
2012-03-08 10:39:30

Food Stamps are run by the Dept of Agriculture.

They are subsidies to farmers and dairy farmers.

Adding an assets requirement would lower their income.

 
Comment by turkey lurkey
2012-03-08 11:40:06

…and the Dept of Ag is funded by tax money, of which lottery winners pay, WITHOUT deductions.

 
Comment by howiewowie
2012-03-08 16:14:33

Ummmm…Lottery winners do share their winnings with the government. It’s called taxes.

 
 
 
Comment by kirisdad
2012-03-08 07:27:54

To check small ins. payouts and who drives a luxury car would be burdensome but, I don’t think it would require a lot of manpower to red flag the few lottery winners that are on public assistance.
BTW, I’m in no. pinellas co. looking at RE. It appears to be a sellers market. As I told the agent, that could change in a heartbeat. Though the economy has definitely improved.

Comment by polly
2012-03-08 09:02:14

But that isn’t the way law works. If you decide to only check regular monthly income, that is a rule that can be enforced. If you decide to check assets too, then you set a level on the assets - a firm number - and you stick with it. It shouldn’t matter if the money comes from an insurance payout, an inheritance, having it all along (but in an account that pays no interest), a local lottery or an out of state lottery. Why would you consider the source being the lottery as a deciding factor? If you have a million bucks in the bank (or a million dollars of assets) you shouldn’t be getting welfare payments or participate in programs intended for support of the very poor. OK. That seems a reasonable rule. Is a million dollars your cut off? Why? What about $100K? What about $50K? Do you include an expensive car? What about the family’s primary residence? What about money in retirement accounts?

This is a program that has to be administered. I don’t really agree with dumping the asset rules, because just a few stories of really unfair results can turn people against programs that do a lot of good. I think it is worth the extra effort to keep them “fair.” But it almost surely does save money to eliminate the asset rules. Most poor people don’t have a lot of assets and auditing net worth, even of poor people, is expensive. Checking everyone to catch the very few who have too much is going to cost more than it saves.

(Comments wont nest below this level)
Comment by Montana
2012-03-08 10:34:56

I vaguely remember that for recipients of actual welfare payments, and maybe SSI (not regular SS), that legal aid advised the client to temporarily drop off the rolls, take the windfall, then get back on. Because it wasn’t the assets, it was the income that would disqualify them. That was 20 years ago.

Don’t know if it works that way anymore.

 
Comment by Steve J
2012-03-08 10:37:07

It would hit a lot of the very elderly who own thier home outright, but have little income and retired farmers in Iowa.

 
Comment by polly
2012-03-08 10:56:49

Don’t retired farmers in Iowa rent out their fields? That will turn an asset into income pretty effectively.

 
Comment by mikeinbend
2012-03-08 11:18:51

RE: SNAP benefits when you have cars/assets.

I make $800/month income from a property. We also have three paid for vehicles; and we are welfare recipients(SNAP and OHPfor the kids). Seems like those against such “abuses” would select a political solution which could phase out such programs for those like us who currently qualify. Or at least using their elected officials to make it more difficult to qualify thru more thorough means testing, which would of course raise admin costs.

But since it seems there are more poor people than rich(see OWS and the 99%), such changes to the welfare system will be unpopular with many. And a difficult position for a politician to take and keep his/her job.

High (IMO) health insurance premiums along with expensive (uncovered by insurance) medications for my wife and I, and crappy jobs that don’t offer insurance or pay very much are the main reason we qualify for assistance; that is where our stack of cash went. (besides one asset we were able to keep). Obama care has not helped us just yet as insurance costs go up, benefits go down, while we wait for the law to kick in.

What about the record uninsured, which Obamacare is supposed to address. By the time it goes into effect for the masses; it will likely be overturned by someone new; so carrying our own insurance seems like we are being punished currently as the costs of insurance keep rising presently.
Hopefully costs will go down when it is actually required that everyone be insured, or else people will just pay a fine rather than carry unaffordable insurance. Then continuing to use the ER or wherever for their medical care. Where they can throw the bill away.

Plus food and gas and other costs are also rising for us. So even with an income producing asset, we don’t make enough $$ to make ends meets; SNAP and Oregon Health Plan for the kids help in that regard.

What would cost the taxpayers more; monthly SNAP benefits for us or dropping our health insurance instead? If forced into BK upon having some unforseen medical emergency we could lose our house plus whatever extra costs that our house would not cover(who would pay those? taxpayer?)

If we dropped the insurance to help meet short term needs, like food, we could be tapped, assetless and with a potentially large bill left unpaid.

Even with an asset(1/10 of a million, but an asset nevertheless), we are helped by state assistance which allows us to avoid digging as much of a credit card hole in our lives.

And our kids are also now covered by state insurance (Oregon Health Plan); which means my kids can go to the doctor or dentist as needed. We would much prefer selecting our own doctors and not go through paperwork on the regular, but until things change categorically, we will take the nanny state benefits that we currently qualify for.

By no means are we alone, as most of our school’s students, and many others in the districts I teach are on free or reduced lunches. Many schools over 50%; these folks also qualify and take SNAP despite having some employment.

We also know lots of kids on OHP, and my wife sees firsthand how much SNAP Oregon Trail Card groceries are purchased by the masses at her grocery store job. And how many kids who are keeping up appearances who are actually on free lunch plans but can afford costly professional family photo shoots to post on Facebook.

According to her, “everyone” pays using these SNAP cards, including cops in uniform, teachers, various blue to white collar professional jobs with salaries that don’t cover expenses. And welfare moms buying Monster by the case (yes its covered). We don’t relish collecting bennies; and will drop them as soon as one of us can get a job with group health benefits, which we are both looking for.(but not finding)

Its not too rosy a picture when you have $10k rent and $20k health related costs, and your income is in the $30k range. It simply does not add up for so many Lucky Duckies; and they should not be blamed for trying to survive, IMO, even though some abuse of the system occurs.

Romney seems none too concerned over the plight of the duckies; he said something like the safety nets in place will catch them. And he is a republican; whom I would think would be against government programs interfering with the free market; where money from the richies in theory trickles down to supply everyone with enough money. But partisan politics, go figure.

All of our info is in the hands of the state; they decide if we qualify given the rules. And we do; we have for years, but only since going through a foreclosure have we decided to accept SNAP benefits. And our kids need fillings that we can not currently afford out of pocket.
Go into debt, take a loan out against my house, or use a govt program that we qualify for? I made my choice, and for now I don’t regret it.

 
Comment by turkey lurkey
2012-03-08 11:38:02

The biggest welfare abusers all have Wall St. addresses.

 
Comment by Hwy50ina49Dodge
2012-03-08 11:59:01

“The biggest we’refair abuser$ all have Wall $t. addre$$es.” ;-)

Cheers TL!

$uccinct & to the point.

 
Comment by rms
2012-03-08 23:07:01

According to her, “everyone” pays using these SNAP cards, including cops in uniform, teachers, various blue to white collar professional jobs with salaries that don’t cover expenses. And welfare moms buying Monster by the case (yes its covered). We don’t relish collecting bennies; and will drop them as soon as one of us can get a job with group health benefits, which we are both looking for.(but not finding)

I can remember seeing lots of high-brow peeps in Bend, OR rocking on the balls of their feet, turbo Saabs and Volvos everywhere. Now look at ‘em.

 
 
Comment by Muggy
2012-03-08 14:31:30

“BTW, I’m in no. pinellas co. looking at RE.”

Probably where I will be moving this summer. East Lake area or Tarpon/Palm Harbor?

(Comments wont nest below this level)
Comment by Muggy
2012-03-08 17:15:03

Sorry, I’m not sure that made sense. kirisdad, if you don’t mind sharing, I’d love your take on the area.

I like how the roads in the East Lake area wind (instead of the brutal Florida grid) and I like that a lot of the trees were not clear cut. The schools are a good bet since no matter how the district tinker with the zones, you’ll be fine…

The HOAs, on the other hand…

 
 
 
Comment by Awaiting
2012-03-08 09:33:04

In the late 60’s, my cousin (w/ two very young kids) kicked out her abusive husband, and had her licensed social worker get upset at them for having an unauthorized small TV in their apt. (Her boyfriend bought it for them.) My parents lived nearby, and would take the TV until the visit was over time and time again. Man, things have sure changed.

She worked her tail off and put her kids in the Beverly Hills School district, slumming it in a BH apt. Her ex-husband went on to die from his alcoholism. And they all lived happily ever after. Welfare was no picnic in Ca back then.
My cousin, more then paid back her debt to the taxpayer and society. We need more stories like hers.

Comment by turkey lurkey
2012-03-08 11:33:24

Unauthorized small TV?

WTH?

Word to the wise: “social worker” is just code for “violating your civil rights and getting away with it”.

Family courts do more to violate civil rights than almost any organization out there. Then again, a lot of people really shouldn’t have children or relationships.

(Comments wont nest below this level)
Comment by Awaiting
2012-03-08 12:35:51

turkey lurkey
I agree about the absurdity of a small TV as a cheat trigger, but it’s interesting how now they hand out welfare like coupons at the grocery store, or samples at Costco. All our criminal invader neighbors live large thanks to anchor free money and perks.

I also agree about family court.

Back when I was a youngin, welfare was a bridge, not a way of life. My cousin knew self reliance was her ticket to a happier life. Her son graduated UC Berkeley.

 
Comment by polly
2012-03-08 12:39:43

In the 60’s a TV was considered a luxury item. At that time, presumably, welfare recipients weren’t allowed to have that sort of luxury item. If you want to enforce that sort of rule, you have to do home visits. If she was providing other services, she might have been an actual social worker. If she didn’t, then she was a welfare cop with a different title.

And you give up a lot of civil rights to get government benefits.

 
 
 
Comment by Prime_Is_Contained
2012-03-08 09:59:26

Want to eliminate it? Bring back the asset requirements and hire people to enforce the rule.

You wouldn’t have to hire lots of people to enforce such rules.

Just having them on the books would allow you to prosecute folks who are in flagrant violation (such as a lottery winner) without spending the money/manpower to check assets on everyone.

Comment by turkey lurkey
2012-03-08 11:29:31

Somebody still has to check those books and take it from someone who is VERY familiar with large scale databases and automation, you (and everyone else) have FAR too much faith in those systems.

(Comments wont nest below this level)
 
Comment by polly
2012-03-08 12:44:46

So put a rule on the books and only enforce it a little bit? What other laws do you only want to enforce a little bit?

Welcome to corruption land.

(Comments wont nest below this level)
Comment by Prime_Is_Contained
2012-03-08 12:58:27

What other laws do you only want to enforce a little bit?

We do that TODAY with essentially all of the laws that are on the books.

It is against the law to cheat on your taxes. Yet what percentage of tax returns actually get audited? It is a tiny fraction.

What I am suggesting is no different.

It sounds like you are suggesting that because it is against the law to cheat on your taxes, that we as a society _must_ hire enough tax accountants to audit every return. Huh?

 
Comment by polly
2012-03-08 15:43:27

No. You are suggesting a situtation in which we essentially tell people that the rule is “you can’t have more than $x of assets and still get [name your government payment here]” but we will only enforce it if we see your name in the newspaper or the state lottery board tells us you won a lot of money.

Big difference.

 
 
 
Comment by Avocado
2012-03-08 10:32:25

Is that true for CA? I though they considered assets for food stamp qualification.

 
 
Comment by CarrieAnn
2012-03-08 07:18:45

Sounds like the Andrew Schiff argument:

“he’s unhappy because he is making less money than last year and is feeling pinched financially. He is paying for a child in private school ($32,000 a year), a summer rental, saves, and complains that he can’t afford to trade up from his 1200 square foot duplex in Cobble Hill and worries he will feel even more strained when his 7 year old starts to attend private school.”

http://www.nakedcapitalism.com/feed

What I’m hearing from all income levels, from all walks of life is that we can’t seem to internalize that the last 20 years in the credit bubble run-up weren’t based in reality. None of us are going to give up anything now that we’re here. So, instead, we’ll spend ourselves into poverty in the attempt to show everyone we’re not poor. (Last sentence pulled from a quote I’m now having trouble locating.)

Comment by Bill in Carolina
2012-03-08 07:49:46

“…Bring back the asset requirements and hire people to enforce the rule.”

The answer is, as always, more government.

Ultimately I think everyone will work for the government, like the old Soviet Union, where “we pretend to work and they pretend to pay us.”

Comment by turkey lurkey
2012-03-08 08:00:36

You do know that contract federal employees outnumber regular government employees, right?

But you’re right, de-regulation has work soooooo well, hasn’t it?

(Comments wont nest below this level)
Comment by goon squad
2012-03-08 08:07:16

Yup. Our field office is undergoing restructuring that did not result in RIF’s but in the early retirement buyouts of senior feds. The overall headcount will remain about the same, due to the addition of more contractors :)

Nothing to see here folks, just the Invisible Hand Of The Free Market at work, funded of course with your tax dollars.

 
 
Comment by polly
2012-03-08 09:08:40

You very conviniently got rid of the initial condition. I said, “Want to eliminate it [instances of people with significant wealth but low income taking advantage of programs meant for the poor]?”

You don’t have to hire more people. You can let the program make pay outs to those with assets. Or you can eliminate the program. But you can’t eliminate the low asset requirement AND keep the program AND make sure that no one with assets uses the program.

Your choice. Or rather, the choice of the leaders you elect.

(Comments wont nest below this level)
 
 
Comment by WT Economist
2012-03-08 08:07:14

Damn straight.

 
 
Comment by rms
2012-03-08 07:52:38

Michigan woman wins $1-million lottery, still collects welfare

Since she is poor she’ll likely “inject” the money right back into the economy rather than hoard it in a Swiss account.

Comment by turkey lurkey
2012-03-08 08:03:02

2 houses. A couple of new cars. Already has.

And she actually only collected 500k after lump-sum payout and taxes.

Comment by Al
2012-03-08 10:04:03

She’ll need those welfare cheques again soon enough. Why bother with the paperwork to cut her off and re-instate her?

(Comments wont nest below this level)
Comment by turkey lurkey
2012-03-08 10:34:20

You know it.

 
Comment by Jim A
2012-03-08 10:35:11

Sad, but true. After all, with ZIRP the returns on 500k in low risk investments is something like 15k/yr. But newfound wealth showered on the profligate usually doesn’t last long.

 
 
Comment by Prime_Is_Contained
2012-03-08 10:26:40

And she actually only collected 500k after lump-sum payout and taxes.

Don’t the lottery winnings count as income in the year that she takes the lump-sum payout?

I would think that the assistance program that she was on probably had an income limitation of less than the $700K that she received as income in that particular tax year.

(Comments wont nest below this level)
Comment by aNYCdj
2012-03-08 10:53:32

I keep tellin everyone wanna lower the welfare rolls and increase assistance and training to those who would really appreciate it?

Force recipients to sit in class 25 hours a week and force them to learn English….come on read the NYTimes aloud in class then on to some serious job training for you.

 
Comment by polly
2012-03-08 11:00:26

Excellent dj. You can provide the day care for the babies and toddlers while they sit in class. And you can provide their transportation back and forth. And you can teach the classes. And they can have the classes in your apartment. You get to write and provide the course materials too.

No pay, of course. Just as a volunteer. Otherwise it is bigger goverment.

 
Comment by turkey lurkey
2012-03-08 11:24:34

Lump sum payout is usually a reduced amount, often +/-50%, of the stated game amount. (gotta love that)

That reduced amount is then immediately taxed and dunned (collected) by the IRS, on the spot.

 
Comment by Prime_Is_Contained
2012-03-08 12:51:28

That reduced amount is then immediately taxed and dunned (collected) by the IRS, on the spot.

Right.

But my point is that it counts as _income_.

In other words, she is already breaking an existing law, and there is no need to create NEW laws for this case.

If I was on assistance, got a new job, and didn’t report that I now had an increased income, I would be violating existing laws.

She had an increase of income that she did not report; she was violating existing laws.

 
Comment by turkey lurkey
2012-03-08 15:22:29

It is indeed, income and why it’s classified as anything different makes no sense to me either.

 
Comment by polly
2012-03-08 15:51:38

I think we discussed a similar situation from a newspaper article a few months ago. He did report the income to the proper authorities (it was a lot less than $1 million). Since it was a one time payment and not monthly (or more frequent payments) the rules for the program didn’t apply. If he had gotten the same amount of money over the course of a year in the form of monthly salary, it would have counted and he would have lost the benefit.

If you don’t like the rules, change ‘em and enforce ‘em. But jsut because you assume that the rules apply to a given year’s salary, doesn’t mean that is the way it is actually written.

 
 
 
 
 
Comment by chilidoggg
2012-03-08 02:28:50

I have a question about Quantitative Easing:

Bernacke prints new money and buys U.S. Treasuries. Are there restrictions on what he does with those Treasuries? Can he sell them?

It would seem to me that the “proper” way to unwind QE would be to have him tender the bonds back to Geithner. Or destroy them.

Comment by Darrell in Phoenix
2012-03-08 06:45:18

Of course he could sell the bonds.

However, the Fed is not buying many treasuries. They are buying MBS. This gives the banks free cash that they then use to buy treasuries.

The Fed holding the bonds or destroying them, the net effect is pretty negligible. The US Treasury pays the Fed interest. The Fed uses a small portion of the interest to fund is routine expenses and any capital losses, then hands the rest of the money right back to the treasury.

Sure, the Fed could just print money and hand it to the treasury without the treasury printing a bond and handing it to the Fed. However, the value of that money is in the fact that it is offset by debt. Money IS other peoples’ debt. Money has value because people with debt are trying to get it to repay their debts.

It is an accounting gimmick that we use to create value in money.

Comment by Liz Pendens
2012-03-08 06:55:27

Can I fill up my car using accounting gimmicks next time I need gas?

Comment by Hwy50ina49Dodge
2012-03-08 07:09:52

Foghorn: “eye say boy, now yous on to something!”

(Comments wont nest below this level)
 
Comment by Blue Skye
2012-03-08 07:17:30

Sure Liz, put it on your credit card and drive up the price of gas for all the rest of us!

It’s the paradox of thrift, not.

(Comments wont nest below this level)
Comment by Bill in Carolina
2012-03-08 07:57:53

Regardless of the sleight-of-hand process, an enormous amount of new cash is being created. Inflation, anyone?

Here’s the scary part. Companies don’t increase worker pay to compensate for inflation so more and more people become dependent on SNAP, TANF, Medicaid and the like. Sooner then expected the liberal dream of having a sizable majority of the population dependent on government handouts becomes reality.

 
Comment by turkey lurkey
2012-03-08 08:05:34

The liberal dream? Then why are the Republicans creating the laws making it happen?

http://www.reuters.com/article/2010/09/28/us-usa-democrats-offshore-idUSTRE68R40I20100928

Oh dear. Pesky facts again.

 
Comment by Liz Pendens
2012-03-08 08:19:47

The pump keypad needs an Accounting Gimmicks button next to the Credit/Debit one.

 
Comment by Blue Skye
2012-03-08 08:25:39

Pesky, pesky facts. There were also Democrats voting against that bill, saying that it was not a practical solution. If bills in congress were just what the were advertised to be in the headliners and propaganda, they would all be less than one page.

 
Comment by alpha-sloth
2012-03-08 08:25:49

an enormous amount of new cash is being created. Inflation, anyone?

Does the enormous amount of money going *poof* offset the inflation risks?

 
Comment by Blue Skye
2012-03-08 08:32:05

“Sooner then expected the liberal dream of having a sizable majority of the population dependent on government handouts becomes reality.”

Summary of the Russian Revolution: The Have-nothings helped the Neo-Have-a-lots plunder and murder the Have-somethings. Then the Former-have-nothings helped the Have-a-lots plunder and murder each other.

What’s liberal about that?

 
Comment by turkey lurkey
2012-03-08 08:39:18

“There were also Democrats voting against that bill, ”

So? It was the Republican vote that defeated it.

Nice straw man you had there for a moment.

 
Comment by Blue Skye
2012-03-08 09:00:11

Sure. The headlines grab the naive. The details take too much work.

 
Comment by MrBubble
2012-03-08 09:03:57

“the liberal dream of having a sizable majority of the population dependent on government handouts becomes reality.”

Bond: (turning to P. Galore) He is quite mad, you know.

 
Comment by turkey lurkey
2012-03-08 10:22:57

The detail is that it was the MAJORITY Republican vote that defeated the bill that was PROPOSED by the Democrats.

 
Comment by Neuromance
2012-03-08 10:30:46

alpha-sloth wrote:Does the enormous amount of money going *poof* offset the inflation risks?

Is money really going poof? Are not lenders being paid in full by the government? They’re lending less and sitting on the cash, but that’s not really money going poof.

The first possibility I see of money going poof is the Greek deal.

 
Comment by alpha-sloth
2012-03-08 10:47:47

Are not lenders being paid in full by the government?

Then why did so many go out of business?

The first possibility I see of money going poof is the Greek deal.

What about the equity people had in their houses? And their ability to access it?

 
Comment by Blue Skye
2012-03-08 10:48:29

“PROPOSED by the Democrats.”

Think about it: Minority party puts a bill to the vote that has zero support in its proposed form from the majority party. Not even support of some prominent members of the minority party. Bill dies.

This was such a non-agenda apparently, that the only follow-on is sensational headline attack of the Majority party, not because they are wrong, but because they are evil. Have there been negotiations, revisions? Sorry, I just don’t buy it.

Meanwhile, campaign donations roll in for both parties from big business.

 
Comment by Hi-Z
2012-03-08 11:46:03

I think that on 09/28/2010 (date of Reuters article above), the Democrats were in the majority in both the House and Senate.

 
Comment by turkey lurkey
2012-03-08 11:48:45

NONE of that changes the fact that the Republicans successfully voted against it and it was their votes that made the difference.

You wouldn’t want to change the subject and discuss the red states turning down the BILLIONS in federal money allotted by the Obama admin that was earmarked for building high speed rail while we’re at it, would you? You know, shovel ready projects that would have provided jobs to J6P?

The list is LONG of the Repubs screwing J6P and then blaming them for being lazy.

Very long.

 
Comment by Neuromance
2012-03-08 12:50:49

There is a power struggle in the US Congress. Both Democrats and Republicans are playing hardball, trying to amass power.

There are sincere differences of opinion on how things should be, as well.

There have been some quotes from Republicans saying that “making Obama a one term president” was their primary goal. I’m sure the Democrats have had the same sorts of sentiments during Republican presidencies.

So, I don’t just see it as heroic Democrats and obstructionist Republicans who should just accede to the Democrats. I see two sides both playing a high-stakes game.

 
Comment by turkey lurkey
2012-03-08 15:28:33

“I think that on 09/28/2010 (date of Reuters article above), the Democrats were in the majority in both the House and Senate.”

Easily checked by Wikipedia

Nov 2010
http://en.wikipedia.org/wiki/United_States_Congress

Sept 2010
http://en.wikipedia.org/wiki/111th_congress

You are correct, but again the point is ALL (that’s ALL, as in “ALL”) the Senate Republicans voted against the bill.

 
Comment by turkey lurkey
2012-03-08 15:33:19

“There are sincere differences of opinion on how things should be, as well.”

Sending American jobs to foreign countries is not a matter of opinion or debate. It is DIRECTLY harmful to Americans.

LYING that it’s because of labor costs makes it even worse.
It skirts very close to treason.

 
 
Comment by Darrell in Phoenix
2012-03-08 13:41:19

“Can I fill up my car using accounting gimmicks next time I need gas?”

Yes. Whip out your credit card and charge the tank of gas. Poof, you’ve filled up your tank using accounting gimmicks called dollars.

(Comments wont nest below this level)
 
 
 
Comment by chilidoggg
2012-03-08 10:11:00

I know the Fed has bought other stuff besides Treasuries. If I read Wikipedia correctly they own at least $534 billion of Treasuries. Why the heck should we “pay him back?”

Do you have a source for your assertion that “of course he could sell the bonds?”

Comment by Darrell in Phoenix
2012-03-08 13:49:13

“Do you have a source for your assertion that ‘of course he could sell the bonds’?”

Really? Are people this clueless about what the Fed does?

http://www.federalreserve.gov/monetarypolicy/openmarket.htm

“Open market operations–purchases and sales of U.S. Treasury and federal agency securities–are the Federal Reserve’s principal tool for implementing monetary policy.”

Federal Agency Securities include Freddie and Fannie issued MBS, which is the majority of what the Fed has been buying with the QE operations…. and they can sell them right back to the market too.

 
 
 
Comment by jeff saturday
2012-03-08 05:08:04

A lot of “so-called” now, kinda like “unexpectedly”. so-called “robo-signing” so-called “shadow inventory”. Last night I went to Five Guys and unexpectedly ate a so-called cheesburger.

Foreclosure starts jump 28 percent in January : LPS

WASHINGTON | Tue Mar 6, 2012 1:17pm EST

(Reuters) - Starts on U.S. home foreclosures shot up 28 percent in January, data provider Lender Processing Services (LPS.N) said on Tuesday in a report that suggested paper backlogs that had clogged the system were rapidly clearing.

U.S. lenders had cut back on foreclosure after accusations of faulty foreclosure practices had surfaced in late 2010.

Last month, five big U.S. banks reached a $25 billion settlement with the federal government to end a national investigation into claims of flaws in their foreclosure process, including allegations of so-called “robo-signing” of documents.

“One-month anomalies do occur, but make no mistake about it, this is a larger move than we’ve seen since the late 2010 period when the process reviews and moratoria really took hold,” said Herb Blecher, senior vice president at LPS Applied Analytics, a unit of the Jacksonville, Florida-based company.

http://www.reuters.com/article/2012/03/06/us-usa-housing-foreclosure-idUSTRE8250XC20120306 - 95k -

Comment by turkey lurkey
2012-03-08 07:58:37

“Last month, five big U.S. banks reached a $25 billion settlement with the federal government to end a national investigation into claims of flaws in their foreclosure process, including allegations of so-called “robo-signing” of documents.”

…and we’re just NOW hearing that the deal was finalized?

Gee, I wonder why that is?

 
Comment by Posers
2012-03-08 08:59:19

So this 28 percent increase….is the basis for the increase reliant upon the faulty foreclosure numbers that NAR admittedly reported for several years since the housing collapse — or, are they reliant upon the much-higher foreclosure figures that NAR published 3-4 months ago?

Does it even matter?

Does anybody really know what time it is?

Does anybody really care?

Ethics, schmethics. Lying as a way of life is perfectly fine.

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:12:23

Quantitative Easing Explained
Uploaded by malekanoms on Nov 11, 2010

What the Federal Reserve is up to, and how we got here.
by Omid Malekan

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:15:33

Cramdowns are coming.

60% of Greek Bond Holders Committed to Debt Swap
By Maria Petrakis and Fabio Benedetti-Valentini - Mar 8, 2012 3:59 AM PT

Petros Giannakouris/AP
The Acropolis in Athens.

Greece moved closer to sealing the biggest sovereign restructuring in history as investors indicated they’ll participate in the nation’s debt swap.

Holders of about 60 percent of the Greek bonds eligible for the deal, including Greece’s largest banks, most of the country’s pension funds and more than 30 European banks and insurers including BNP Paribas (BNP) SA and Commerzbank AG (CBK), have agreed to the offer so far. That brings the total to about 124 billion euros ($163 billion), based on data compiled by Bloomberg from company reports and government statements.

The euro and stocks gained on speculation Greece will reach its participation target by the deadline of 10 p.m. in Athens today. The goal of the exchange is to reduce the 206 billion euros of privately held Greek debt by 53.5 percent and turn the tide against the debt crisis that has roiled Europe for more than two years.

The swap “will go through” and markets won’t be jarred should a majority fall short of the targeted amount, Peter Bofinger, an economic adviser to the German government, said in an interview from Berlin today with Bloomberg Television.

Clauses

While Greece would prefer a voluntary deal, the government has said it will use collective action clauses to force holders of Greek-law bonds into the swap if the so-called private sector involvement falls short and it gets sufficient approval from investors to change the bonds’ terms.

“I think that the markets are aware of the risk that a majority for voluntary restructuring is not available, and so I think the surprise won’t be too big if tonight when they realize the collective action clauses will have to be applied,” Bofinger said.
..

Comment by Blue Skye
2012-03-08 06:51:54

The Globalists will get paid.

The private parties will get screwed (and like it).

The Greek people will be wrung through the olive press. The German people are in for a shock as well.

Rinse and repeat.

Everything is owed to the Federal Reserve.

Comment by polly
2012-03-08 10:28:31

You forgot the hedge funds that are on the right side of the CDSs will make a bundle (though perhaps not as much as they hoped because of the counterparty risks).

Comment by Blue Skye
2012-03-08 10:38:34

Also, if Greece can default and the PTB declare that it is not a “default”, what does CDS mean?

(Comments wont nest below this level)
Comment by Jim A
2012-03-08 10:48:01

It means that you can hold Greek bonds on your books at par until they default. You my know that the CDS will never pay out, but you can get your accountants and the bank examiners to pretend that they will until the day that they don’t.

 
 
Comment by Jim A
2012-03-08 10:45:10

How many CDSs, both naked and otherwise were sold? Who sold ‘em and who bought them? Really, if you’re dumb enough to sell insurance on a cr@pshack to somebody who doesn’t own it who is holding a can of gas, on the same terms that you sell it to an owner/occupier, you shouldn’t be surprised if it burns down.

(Comments wont nest below this level)
 
 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:24:01

My inner cynic thinks this writer misses the point of the Fed’s War on Savers. By getting all of Main Street deeply into hock, the Fed ensures a massive and sustainable supply of vampire squid forage for decades to come. It’s all about making sure Wall Street’s great vampire squids don’t ever go hungry. Whether the economy grows, tanks or goes sideways is somewhat immaterial in a third-world country. The main goal is to keep the 1% rolling in dough, even if they repeatedly through their money down rat holes, like the U.S. housing market.

OPINION
March 5, 2012

The High Cost of the Fed’s Cheap Money
Encouraging consumption at the expense of saving inhibits long-term economic growth.

By Andy Laperriere

During the past three years, the Federal Reserve has tripled the size of its balance sheet—in effect printing $2 trillion—something it had never done in its nearly 100-year history. The Fed has lowered short-term interest rates to zero and signaled that it will keep them at that level for years. Inflation-adjusted short-term rates, or real rates, have been in the minus 2% range during the past couple of years for the first time since the 1970s.

The unfortunate fact is, as Milton Friedman famously observed, there is no free lunch. After the Fed’s loose monetary policy helped spur the boom-bust in housing, it’s remarkable how little attention has been devoted to exploring the costs of Fed policy.

A few critics of quantitative easing (QE) and the zero interest rate (ZIRP) have correctly pointed out that these policies weaken the dollar and thereby reduce the purchasing power of American paychecks. They increase the risk of future inflation, obscure the true cost of the unsustainable fiscal policy the federal government is running, and transfer wealth from savers to debtors.

But QE and ZIRP also reduce long-term economic growth by punishing savers, reducing saving and investment over the long run. They encourage the misallocation of resources that at a minimum is preventing the natural rebalancing of our economy and could sow the seeds of another painful boom-bust.

Comment by Darrell in Phoenix
2012-03-08 06:58:29

“the Fed ensures a massive and sustainable supply of vampire squid forage for decades to come. ”

Rubbish.

The war on savers is no more complex than the fact that you can’t be a net savings nation and a net import nation at the same time.

In order to fund out international trade imbalances, and the domestic trade imbalances created by flattening of the tax code, we needed the majority of people to be going into debt, borrowing into existence the money needed to fund the trade imbalances.

Total goods bought must equal total goods sold. For one entity to sell more than they buy, accumulating money, another entity must be borrowing that money into existence so that they can buy more than they sell.

It wasn’t some grand scheme to turn the USA population into debt slaves of Wall Street. That was just a side effect of loosening lending to create the new net debt/money we needed in the face of imports that are inevitable in a free market economy where the global labor wage is 1/10th of ours.

Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 08:51:51

The Fed’s economic mismanagement has encouraged U.S. households to undersave. This makes them easy marks for great vampire squids, whose forage is broke households who are desperate for loanable funds.

Title: Personal Saving Rate
Series ID: PSAVERT
Source: U.S. Department of Commerce: Bureau of Economic Analysis
Release: Personal Income and Outlays
Seasonal Adjustment: Seasonally Adjusted Annual Rate
Frequency: Monthly
Units: Percent
Date Range: 1959-01-01 to 2012-01-01
Last Updated: 2012-03-01 8:06 AM CST
Notes: Personal saving as a percentage of disposable personal income (DPI),
frequently referred to as “the personal saving rate,” is
calculated as the ratio of personal saving to DPI.

Period 10-year Average U.S. Personal Saving Rate
1/1/59-12/1/68 8.3
1/1/69-12/1/78 9.5
1/1/79-12/1/88 8.8
1/1/89-12/1/98 5.9
1/1/99-12/1/08 3.1

Comment by Darrell in Phoenix
2012-03-08 13:39:40

“The Fed’s economic mismanagement has encouraged U.S. households to undersave.”

It is mathematically impossible for a net import nation to be doing anything but going into new net debt to fund that international trade imbalance.

Wholly schmolly. It is like people just don’t have a clue what money is or why it is fundamentally impossible for EVERYONE to be selling more than they buy accumulating net money.

Money is debt. Without net debt creation, there is no net money creation! Without net money creation, we could not run negative balance of payments in regard to international trade.

Without the war on savers, we’d still be in 1970s stagflation as jobs are lost to cheap global wages and we’re not creating the new net money needed to fund our trade imbalances.

You’re focused on the blood on the floor, not the gun shot wound that caused the injury.

(Comments wont nest below this level)
 
 
 
Comment by Hwy50ina49Dodge
2012-03-08 07:16:17

“$ow the seed$ of another painful boom-bu$t.” ;-)

Debu$$y: “Music is the space between the Boom-Bust note$”

Hwy50: “Is that true Schroeder?”

Lucy: “Hey who let that Blockhead Hwy50 into the home economics cla$$! … ” ‘Get!!! “

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:25:43

Federal Reserve under attack … again
By Annalyn Censky March 6, 2012: 3:31 PM ET

Here we go again. A Texas Republican congressman wants to revamp the Federal Reserve. And no, this time it’s not Ron Paul.

Rep. Kevin Brady plans to introduce a bill on Thursday morning that, if enacted, would strip the Fed of one of its key goals: getting the job market back on track.

Haters unite

Instead, Brady and his Republican colleagues want the Fed to focus its efforts entirely on inflation.

The Fed is currently the only central bank in the world that has two goals, or a so-called “dual mandate” to maximize employment and keep prices stable. Other central banks focus on just the inflation side of the equation.

Brady argues the Fed can’t control the job market, and the proof is in the pudding. After all the Fed’s emergency measures to boost the economy, inflation is currently around its target of 2% per year, but the latest 8.3% unemployment rate is far above what the central bank considers normal.

“Ultimately, it is the president and the Congress, not the federal reserve, that control the budget, tax and regulatory policies that create the business climate that drives economic growth and job creation,” Brady said in a speech before the American Enterprise Institute.

Comment by Bill in Carolina
2012-03-08 08:01:24

And this is bad how?

Comment by turkey lurkey
2012-03-08 08:10:49

“A Texas Republican congressman wants to revamp the Federal Reserve. And no, this time it’s not Ron Paul.

Rep. Kevin Brady plans to introduce a bill on Thursday morning that, if enacted, would strip the Fed of one of its key goals: getting the job market back on track.”

Didn’t you JUST post that it was the LIBERAL dream to put everyone on welfare?

Seriously, can you even hear yourself?

 
 
Comment by alpha-sloth
2012-03-08 08:29:54

I guess the best argument for an independent Fed with dual mandates, is when one political party is willing and eager to crash the economy, in order to get the other party out of power. Like is happening now.

Comment by butters
2012-03-08 12:26:05

Wasn’t it the democrats who tanked the economy in hope of winning election 4 yrs ago? Tell me how that sounds.

Comment by turkey lurkey
2012-03-08 15:36:18

They did?

Do tell. (this should be interesting)

(Comments wont nest below this level)
Comment by alpha-sloth
2012-03-08 19:37:55

Yeah, how did they do it, butters?

 
 
 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:28:57

8 Mar, 2012, 05.25AM IST, Bloomberg
Bernanke seen accepting faster inflation as fed seeks jobs boost

WASHINGTON: Federal Reserve Chairman Ben S Bernanke spent six years pushing for an inflation goal. Now that he has it, some investors are betting he’ll breach the 2% target in the short run to lower unemployment.

The Fed chairman told lawmakers last week that an increase in energy costs will boost inflation “temporarily while reducing consumers’ purchasing power.” He also said the central bank will adopt a “balanced approach” as it pursues its twin goals of price stability and full employment, which it defines as a jobless rate of between 5.2% and 6%.

The chairman seemed to suggest they will tolerate a misdemeanor on inflation as unemployment continues to fall toward their goal” over several years, said Mark Spindel, chief investment officer at Potomac River Capital, a hedge fund that manages $250 million in Washington.

RELATED ARTICLES
Ben Bernanke quells talk of fresh stimulus to ease jobless rate
Gold eases on firmer U.S. dollar; physicals support
Gold prices rise on Greek bond swap deal
Gold can scale new peaks without QE springboard

Comment by CarrieAnn
2012-03-08 07:09:37

I wonder how he’s going to fight income shrinkage.

This year we’re finally in that boat. Husband’s bonus which is based on company sales and not how well he does his engineering job was 30% lower. Reorganization at work puts me in a higher per hour pay but I no longer get guaranteed hours which could end up equalling lower overall income.

Meanwhile both the area schools and the city of Syracuse have been announcing their budgets this year aren’t as tight as last year and spending is up sometimes w/o cuts. One reason there’s a bit more wiggle room is low snow removal costs this year. Today on a local newsfeed on social media they were asking how that money should be spent. Is anyone going to trim back the spending ever?

Comment by turkey lurkey
2012-03-08 08:13:19

Of course they will! At the expense of OUR wages.

Can’t drop the ball and expect sacrifices by those political obligations, now can they?

 
Comment by oxide
2012-03-08 08:47:35

how that money should be spent

Cut taxes on the rich?

 
 
Comment by Hwy50ina49Dodge
2012-03-08 07:21:11

“The chairman seemed to suggest they will tolerate a misdemeanor on inflation …”

“This, from a SCOTU$ Inc.”gang” of non-convicted felon$ … got it.”

Talk about inju$tice …

Comment by turkey lurkey
2012-03-08 08:15:21

More like grand theft. :mad:

 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:31:51

I smell a policy shift on the way.

Fed Would Focus Solely on Price Stability Under Bill Proposed by Brady
By Joshua Zumbrun - Mar 5, 2012 9:30 AM PT

Representative Kevin Brady, the top Republican on the Joint Economic Committee, will introduce legislation March 8 that would narrow the Federal Reserve’s focus to price stability and eliminate its full-employment mandate.

The Federal Reserve’s monetary experimentation of the last decade must end,” the Texas lawmaker said in remarks prepared for delivery today in Washington. “Congress should give the Federal Reserve a single mandate for price stability, and the Federal Reserve should return to a rules-based system of inflation targeting to achieve that mandate.”

The legislation, known as the Sound Dollar Act, would also restrict the central bank’s balance sheet to Treasury securities, speed the release of transcripts from Federal Open Market Committee meetings and give the Fed’s 12 regional presidents permanent votes on monetary policy.

Brady and his staff have held discussions with other congressional Republicans and with William C. Dudley, president of the Federal Reserve Bank of New York. Brady said Dudley argued in favor of the so-called dual mandate, which requires the Fed to focus on both full employment and low inflation.

Fed Chairman Ben S. Bernanke and his colleagues on the FOMC in January formally adopted a 2 percent goal for the rate of inflation and also pledged to move the economy toward maximum employment, which they currently estimate as a jobless rate between 5.2 percent and 6 percent.

“I strongly applaud Chairman Bernanke and the other members of the FOMC for this step toward a rules-based, inflation-targeting regime,” Brady said.

Comment by Hwy50ina49Dodge
2012-03-08 07:25:19

More job$ + Le$$ wage$ = “conundrum”

(Time to visit the Wizard, “Oh, $ir Greenis$pent where art thou?”)

 
Comment by Neuromance
2012-03-08 11:25:53

This would help stop the well-meaning but destructive warping of the economy that the Fed causes with its picking of winners and losers and its “novel” interventions.

Jobs are Congress’ business. As much as they wish to gain power and money yet shed responsibility, they need to be compelled to do their jobs.

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:33:44

50-50 shot of QE3 in just three months: economist
March 5, 2012, 3:30 PM

Federal Reserve Chairman Ben Bernanke may have spooked gold (GCJ2 +1.07%) markets last week into thinking a new round of bond buying isn’t likely, but not everyone is convinced.

Morgan Stanley’s Vincent Reinhart thinks there’s a 50-50 chance of a so-called QE3, or more bond buys, by June, and a 25% chance of another Operation Twist if the Fed wants to boost the economy but is worried about the inflation consequence. Reinhart sees only a 25% chance of no action at all.

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:36:46

Agustino Fontevecchia, Forbes Staff
Markets
3/07/2012 @ 2:51
Who Cares About Sterilization? The Fed Pretty Much Just Announced QE3

The Fed is warming up the printing press - Getty Images via @daylife

A report that the Fed is considering “sterilized” QE sparked a risk rally that shouldn’t really make sense. On the one hand, the breakdown of the how the Fed would actually execute the operation provided nothing new, on the other, “sterilized” QE would amount to a capital injection that puts enough restrictions on that capital to make it unusable, making the injection neutral at the end of the day, at least in terms of speculative capital.

What’s really happening? The Fed, via WSJ’s Jon Hilsenrath (dubbed “mouthpiece” by ZeroHedge and “Fedwire” by FT Alphaville), is testing the waters. Bernanke & Co. are telling markets QE is definitely on the table while acknowledging they recognize the inflationary threat carried by another round of quantitative easing.

Comment by Liz Pendens
2012-03-08 06:36:49

If Bernanke is the brains of the FED

and Jon Hilsnerath is the voice,

Then what is Timmy?

Comment by turkey lurkey
2012-03-08 08:46:06

Turbo-taxed?

Comment by Liz Pendens
2012-03-08 09:28:12

I was thinking more along the lines of Dingle-berry.

(Comments wont nest below this level)
Comment by turkey lurkey
2012-03-08 10:18:45

:lol: I love it!

 
 
 
Comment by stewie
2012-03-08 13:57:28

Timmy the taint?

 
 
Comment by Sammy Schadenfreude
2012-03-08 06:56:56

More Fed intervention into our rigged crony-capitalist markets to ensure the Wall Street banks and securities firms can speculate with impunity, with all losses to be passed on to taxpayers.

Thank you, Obama Zombies, and thank you, McCain Mutants, for sanctioning this massive swindle on taxpayers, savers and future generations.

Comment by Hwy50ina49Dodge
2012-03-08 07:32:27

“for $anctioning this ma$$ive $windle on taxpayer$, $avers and future generation$.”

Now Sammy it’s been $taged, and oldie-but-a-goodie, don’t you remember singing it yourself when you were, … younger? ;-)

[Chorus singing in the background:]

“Follow the yellow brick road, … follow the yellow brick road, … ”

Now click your heels twice:

“There’s no place like home, there’s no place like home …”

 
Comment by oxide
2012-03-08 09:09:51

Read the article Sammy. They do not get to speculate with impunity. They only get to speculate with their own money.

 
 
Comment by jeff saturday
2012-03-08 08:29:58

WASHINGTON | Wed Feb 29, 2012 4:46pm EST

WASHINGTON (Reuters) - Below are highlights from the question and answer session of a House Financial Services Committee hearing with Federal Reserve Chairman Ben Bernanke testifying on monetary policy and the U.S. economy.

BERNANKE ON THE FISCAL CLIFF AHEAD:

“Achieving long-run sustainability and providing comfort to the public and the markets that deficits will come under control over a period of time - that’s very important for confidence and for creating more support for the recovery. But at the same time, I think you also have to protect the recovery in the near term. Under current law, on January 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases. I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date.”

http://www.reuters.com/article/2012/02/29/us-usa-fed-bernanke-idUSTRE81S1DO20120229 - 110k

 
 
Comment by jeff saturday
2012-03-08 05:37:18

“The number of seriously delinquent loans owned by Freddie Mac increased 376 percent to 453,000″ What about Fannie Mae?

Shadow Inventory Vastly Larger Than Believed
By Michael Olenick, Naked Capitalism, Jan. 3, 2012

Jaffe: .. you’re reading reports. You’re seeing volume. You’re seeing new file intakes. You’re seeing how fast they’re closing. And you’re seeing cash flow in and out of the company.

Stern: Okay.

Jaffe: And so, you have — in 2010, you have a handle on what’s happening with the business?

Stern: As the numbers are reported in the quarterly earning calls and the investors or the world, whoever elects to participate in that call is made aware of the day-to-day happenings.

Jaffe: Right. But you have that information, that institutional knowledge of your own business far in advance of those calls and reports for that matter.

Stern: When Fannie Mae comes in and sits down and says, “David, we have 600,000 shadow inventory loans,” we say “You mean, 60,000″? And they go, “No. We mean, 600,000.” And I say, “Oh, that’s nationwide”? And they go, “No 600,000 shadow inventory in the State of Florida”. Sure, I know. Yeah, it’s exciting. [Note: transcribed verbatim from the transcript.]

Freddie Mac Faulted With FHFA on Loan Servicers Oversight

By Clea Benson - Mar 7, 2012 2:38 PM ET .

Freddie Mac and its regulator, the Federal Housing Finance Agency, need to do a better job supervising financial institutions servicing the company’s loans, according to the FHFA Office of Inspector General.

FHFA hasn’t implemented regulations governing servicer oversight or paid enough attention to abuses uncovered by other federal regulators, Deputy Inspector General Russell A. Rau wrote today in a report. Five servicers, including Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM), last month settled a lawsuit with state and federal authorities after investigations revealed the banks didn’t have the proper documents to seize homes.

FHFA, which learned about the practices of Freddie Mac’s mortgage servicers in 2008, didn’t begin paying attention to them until August 2010, according to the report.

“Documentation provided by Freddie Mac strongly suggests that weak servicer oversight and risk management played a significant role in the unsatisfactory performance,” Rau wrote in the report. “In light of these control deficiencies, FHFA is not assured that the risk associated with Freddie Mac’s servicing operations is being sufficiently managed.”

Freddie Mac spokesman Brad German noted that the audit praised the company for working with its servicers to accomplish a substantial increase in loan modifications. “This has been an enormous undertaking, more work needs to be done, and we look forward to working with the Federal Housing Finance Agency and our servicers in the months ahead,” German said in an e-mailed statement.

The inspector general recommended that Freddie Mac set loss mitigation goals for all of its 1,457 servicers.

The number of seriously delinquent loans owned by Freddie Mac increased 376 percent to 453,000 from the first quarter of 2008 through the fourth quarter of 2010, according to the report.

http://www.bloomberg.com/news/2012-03-07/freddie-mac-faulted-with-fhfa-for-oversight-of-loan-servicers.html - 164k

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:41:01

Until I see any evidence to the contrary, I’m going to assume this speech was just a smoke screen to downplay investor expectations for QE3.

Agustino Fontevecchia, Forbes Staff
Markets
3/05/2012 @ 5:37PM
Dallas Fed Says Wall Street ‘Hooked On Monetary Morphine,’ Don’t Expect QE3

In an unusually blunt and frank speech, Dallas Fed President Richard Fisher told Wall Street it has become “hooked on the monetary morphine” the Fed delivered during the financial crisis. Fisher said delivering QE3 would be the equivalent of medical malpractice, while telling Congress and President Obama to get their act together, emulate Texas and Mexico, and spark job creation once again.

It is rare to see a Fed President, who happens to also be a member of the FOMC, be so straightforward regarding his views. Fisher did exactly that. He bashed the political establishment and Wall Street, telling them to put money back into the real economy to foster growth.

Comment by Hwy50ina49Dodge
2012-03-08 07:39:28

“hooked on the monetary morphine”

There’s an “evil” metaphor lurking in there:

money / morph

“$omething wicked this way come$!”

 
Comment by Liz Pendens
2012-03-08 09:18:48

We don’t need QE3. The New iPad is a game changer that will provide a whole new level of economic stimulus not seen since the Chevy Volt.

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:44:24

As though the Fed’s War on Savers wasn’t enough to worry about, retirees have the Baby Boom demographic time bomb on the way to further suppress investment returns on their savings.

March 5, 2012

INTERVIEW
Bad News for Boomers
Demographic trends will depress portfolio returns, this researcher warns
By KAREN DAMATO

If you’re a baby boomer, you’ve got a big problem when it comes to the investment returns you can expect in retirement: It’s the sheer number of other boomers who are also getting ready to leave the workplace and rely on their portfolios to help pay the bills.

That’s the depressing conclusion Robert D. Arnott, a portfolio manager, asset-management executive and inveterate researcher, has come to in more than 20 years of studying demographic trends and financial-market results.

The problem in a nutshell: The ratio of retirees to active workers in the U.S. will balloon. As retirees sell stocks and then bonds to support themselves, there will be fewer younger investors to buy those securities, keeping a lid on prices. Meanwhile, strong demand from boomers and a limited supply of workers will boost the prices of goods and services the boomers need.

Comment by Darrell in Phoenix
2012-03-08 07:04:00

This can’t be news to anyone, right? We’ve known about this since…oh, I was born 45 years ago at the pit of a baby bust.

Comment by Jim A
2012-03-08 07:55:37

Yeah. Fully predictable. I have to believe that the smart, old money, has figured out how to make money off of the fact that the well off members of the BB cohort will spend the next 20-30 years pulling money out of their savings to live on, in a mirror of the way that they spent the last 20-30 years slowly putting money into Wall Street and bidding up asset prices.

Comment by Patrick
2012-03-08 08:32:54

Yes, predictable. But not the asset cash-in rate because the BB average life expectancy is 25% higher, and their average education is also about 25% better. They wouldn’t have enough.

I think we will see a longer working life (to 75?) for the service types whose health will allow it and hence a continued saving of their assets.

Eight years of support will still be required but I think that will come from the sale of their service businesses that they started after their retirement from larger companies.

Of course this isn’t the average person, but I think it will be the better qualified tradesman, or university educated one which I think will be able to afford better health care and live longer than non active citizens.

Non actives I think will enjoy their beer and golf, and, growing older, will need less of both - hence less income.

You know, in the oil industry, we have union tradesmen who are 70 or older working twenty tens because of their shortage.

(Comments wont nest below this level)
Comment by Steve J
2012-03-08 10:47:10

Darn unions keeping old people in jobs.

 
Comment by RedmondJP
2012-03-08 15:56:22

Yeah, we need them unions to agree to two-tier wage scales so the youngins’ can get into the workforce!

 
 
 
 
Comment by rms
2012-03-08 08:00:32

Demographic trends will depress portfolio returns, this researcher warns

Obama: Can’t this guy wait until after the election?

 
Comment by alpha-sloth
2012-03-08 08:21:58

The ratio of retirees to active workers in the U.S. will balloon. As retirees sell stocks and then bonds to support themselves, there will be fewer younger investors to buy those securities,

Do Chindians buy US securities? Do sovereign wealth funds?

Comment by In Colorado
2012-03-08 09:04:15

They gotta buy something with all the dollars we send them.

 
 
Comment by turkey lurkey
2012-03-08 08:50:48

“The problem in a nutshell: The ratio of retirees to active workers in the U.S. will balloon.”

How? When Gen X & Y are larger than the boomer gen, how?

Increase? Yes. Balloon? Not hardly. Gen X’s kids are about to enter the workforce.

The “retiree problem” is an outright LIE that is amazingly being taken at face value and believed.

The only problem retirees are going to have is making sure the company they worked for, doesn’t screw them. Something that is already a huge problem.

Comment by Steve J
2012-03-08 10:52:44

I think the number of companies no longer investing pension money is a bigger problem.

 
Comment by Jim A
2012-03-08 11:05:16

On average retirees are living longer in retirement. Many people can anticipate living in retirement almost as long as they worked. Nobody is saying that retiree will outnumber workers, but reduced birth rates WILL mean that there will be fewer workers per retiree than there used to be. Now it’s ALSO true that a lower birthrate means fewer children and so the dependency ratio (the number of dependents per worker) will not change as much. But there is a much bigger federal role for retirees than for children.

Comment by CarrieAnn
2012-03-08 12:15:01

Nobody is saying that retiree will outnumber workers

Actually yeah, I have been reading people claiming that and the claim is that it would happen in 20 years (Can’t remember where I read that). Then I pulled up numbers that showed that wasn’t really possible. As usual it boils down to how much can you trust your source.

(Comments wont nest below this level)
 
 
 
Comment by turkey lurkey
2012-03-08 09:03:19

Again, bullcrap.

Gen X & Y outnumber the boomers and Gen X’s offspring are about to enter the job market as well.

Just more propaganda to get us to stupidly give Wall St. our Social Security.

NEVER forget that.

Comment by Montana
2012-03-08 11:17:54

If social security really were in a separate fund, like my 401k money, where would the govt invest it?

Sorry if the question assumes some ignorant premise.

 
Comment by CarrieAnn
2012-03-08 11:28:23

Ok, turkey, I finally pulled up the numbers and I saw that you were correct. It’s funny, I’d heard the opposite for so long I had swallowed the argument lock, stock and barrel. I’ll stick to my guns, however, on the overall sentiment. Gen X and Millenials are swamped in too much student loan debt to be buying our homes at current prices unless we see quite a bit of inflation including wage inflation. Housing prices will come down. By then I also expect the death tax to be returned to its historically earlier steep numbers. I don’t expect the younger generations to be inheriting the same amount of wealth late Boomers and early Gen Xers have been privy to.

http://www.crmtrends.com/ConsumerDemographics.htm

Comment by turkey lurkey
2012-03-08 15:41:54

You are correct that they will not be buying ANY big ticket item for along, long time.

I can’t wait for the repercussions of that on our 75% consumer driven economy.

There’s a good rule I’ve learned the hard way in business: NEVER let an accountant run your business. They do not understand entropy. That comes from an old saying, “It’s good to save money in business but you can save yourself right out of business.”

(Comments wont nest below this level)
 
 
Comment by Darrell in Phoenix
2012-03-08 13:33:02

Turkey, you are smarter than this.

People currently retired:
1920: 3 million births a year
1930: 2.6 million births a year
1940: 2.5 million births a year.

About to retire:
1950: 3.6 million births a year
1960: 4.2 million births a year.

Also in the work force:
1970: 3.7 million
1980: 3.6 million

About to enter:
1990: 4.2 million
2000: 4 million

So, right now, the people already retired were born at an average of 2.7 million a year. Supporting them are 4 decades of workers born at 3.8 per year. Ratio = 2.7/3.8 = .71

10 years from now, the 30 years of retired people will have been born at 2.9 million a year. The 40 years of workers supporting them at 3.9. Ratio = 2.9/3.9 = .74

20 years from now the 30 years of retired workers will have been born at 3.4 million per and the 40 years of workers at 3.9. Ratio = 3.4/3.9 = .87.

NOW, calculate the work force participation that greatly effects payout. The two income family starting in the ’60’s greatly magnifies this ratio as the spouses not collecting SS die off and the 2 income households starting having both spouses collecting.

This is demographically huge shift in the ratio of workers to retirees.

Yes, Gen X + Gen Y are larger than Boomers. But not nearly as much (ratio) larger than Boomers + GenX have been larger than GD/ WWII gen.

If there were 8 workers per retiree, and that has dropped to 6, and is about to drop to 4, then 3…. well, THAT IS BAD, even is 3 is still greater than 1.

Comment by turkey lurkey
2012-03-08 15:46:17

The WWII/GD are largely gone and have been for years.

(Comments wont nest below this level)
 
 
 
 
Comment by Realtors Are Liars®
2012-03-08 05:49:47

Realtors Are Liars®

 
Comment by CharlieTango
2012-03-08 05:50:58

From yesterday’s bb:
Comment by ahansen
2012-03-07 23:54:28
As any dedicated skier can tell you, the glaciers are disappearing at an alarming rate. Northern hemi, Southern hemi, Europe and NZ– and at all elevations.

A dump that used to last through a week of groomers is now a five hour window. Ice and crud where there used to be powder, rocky peaks devoid of snow. Just watching Mammoth disappear over the last 40 years has been heartbreaking.

I have lived and skiied in Mammoth for 35 years and I believe you have been drinking the AGW cool-aid!

Snowfall in the Sierra Nevada has remained consistent for 130 years, with no evidence that anything has changed as a result of climate change, according to a study released Tuesday.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/02/14/BA8N1N7HNQ.DTL#ixzz1oWs2xALJ

Comment by jeff saturday
2012-03-08 08:52:23

This is tough to find, I can`t imagine why.

“No,” Chu responded. “The overall goal is to decrease our dependency on oil, to build and strengthen our economy.”

Energy Secretary Chu: Obama administration’s goal is not to lower gas prices

Published: Thursday, March 01, 2012, 11:49 AM

Secretary of Energy Steven Chu suggested to a House subcommittee Tuesday that the administration is not interested in lowering gas prices, according to Politico.

During a hearing on the Department of Energy’s budget, Alan Nunnelee (R-Miss.) asked Chu whether it was the DOE’s “overall goal” to lower gasoline prices.

“No,” Chu responded. “The overall goal is to decrease our dependency on oil, to build and strengthen our economy.”

It wasn’t the answer Nunnelee was looking for.

http://www.syracuse.com/news/index.ssf/2012/03/post_561.html - 91k -

Comment by alpha-sloth
2012-03-08 09:28:23

. “The overall goal is to decrease our dependency on oil, to build and strengthen our economy.”

Good god- that’s insane! Just drill everywhere, and keep everyone in their monster SUVs. That’s the rational, long-term solution.

Comment by jeff saturday
2012-03-08 10:04:41

Or we could stop printing money. Does that have anything to do with higher prices?

(Comments wont nest below this level)
Comment by alpha-sloth
2012-03-08 10:20:26

Was your article about the DOE or the Fed?

 
Comment by jeff saturday
2012-03-08 11:02:38

The article was about Steven Chu saying “The overall goal is to decrease our dependency on oil” The question was… Does printing money have anything to do with higher fuel prices? Or do they work hand in hand? Take your pick I already know the answer.

 
Comment by alpha-sloth
2012-03-08 19:50:28

Steven Chu saying “The overall goal is to decrease our dependency on oil” The question was… Does printing money have anything to do with higher fuel prices?

Why was that the question? Because you say so? It doesn’t follow from someone in the DOE saying that their goal was to decrease our dependence on oil.

Your point is illogical anyway- why would cheaper oil ( if indeed that’s what resulted from no longer ‘printing money’) make us less dependent on oil? It should do the opposite.

 
Comment by jeff saturday
2012-03-09 05:06:10

“Your point is illogical anyway-”

The administations goal is to decrease our use of oil and coal. To increase solar (Solyndra) electric cars (Volt) and windmills with the added benefit of throwing hundreds of billions of $ to Obama donors and supporters. How is that working out? The printing of money works hand in hand with this because it makes everything that people buy cost more. People buy gasoline. People do not buy solar, Volts or windmills no matter how many hundreds of billions of tax payer $ the Obama people throw at it. So take your liberal spew and sell it to someone else.

 
Comment by alpha-sloth
2012-03-09 06:52:19

The printing of money works hand in hand with this because it makes everything that people buy cost more. People buy gasoline. People do not buy solar, Volts or windmills no matter how many hundreds of billions of tax payer $ the Obama people throw at it.

So people will choose oil over everything else, no matter what the cost? We’ll see. Sounds like the rantings of someone who fears all change, even mild change. But that’s what conservatism is all about. The knuckledraggers bringing up the rear, in humanity’s evolution.

 
 
 
 
Comment by MrBubble
2012-03-08 09:00:40

Ah, yes the “we got frost yesterday so there’s no global warming” argument.

The rest of the article says this:

“Mike Dettinger, a climatologist and research hydrologist at the Scripps Institute of the U.S. Geological Survey, said Christy is picking and choosing data while misleading people about what climate change scientists are actually saying.

For one, he said, snow depth is not as good a measure of the winter weather conditions as water content and density.

The number of inches or feet of snow on the ground can mean a variety of things, he said, depending on if it is fluffy powder or compacted, wet snow.

Recent studies by Scripps scientists have found that over the last 50 years the southern Sierra snowpack has gotten larger while the northern Sierra pack has shrunk. Although they have predicted the overall state snowpack would decrease over time as a result of climate change, nobody has claimed that it has happened yet, Dettinger said.

What’s significant in terms of global warming, he said, is the fact that the snowpack has declined over three quarters of the western United States, an area that includes Montana, Wyoming and New Mexico. Scripps researchers, in coordination with Lawrence Livermore National Laboratory scientists, have concluded that 60 percent of that downward trend is due to greenhouse gases.

“There is a popular conception that the snowpack has declined everywhere, but that is not what the science says,” Dettinger said. “What we’re saying broadly is that across western North America there have been declines in spring snowpack.”

Also, your data concerning interglacial periodicity were wrong in yesterday’s post as was your general line of reasoning.

Comment by CharlieTango
2012-03-08 10:05:49

Ah, yes the “we got frost yesterday so there’s no global warming” argument.

MrBub,

I was responding to Alena’s quote below.

Just watching Mammoth disappear over the last 40 years has been heartbreaking.

Mammoth hasn’t disappeared and neither has any local glacier’s or any local glacierettes. The recently released study confirms this.

Here’s what I find interesting, there is solid data going back more than a century on snow depths in the Sierra Nevada thanks to the rail road. Those real data show no trend but the AGW rhetoric that you quote simply states that outside of the study area global warming has wreaked havoc. Why rely on real data when you can always report the opposite?

Thanks for pronouncing that my data and reasoning are wrong with nothing to support your pronouncement.

Wrong simply because the bubble says so? [ slinking away with tail between my legs mode]

Comment by MrBubble
2012-03-08 12:12:22

“Thanks for pronouncing that my data and reasoning are wrong with nothing to support your pronouncement.”

All you have to do is wiki “interglacial periodicity” if you don’t want to read the literature.

“snow depths in the Sierra Nevada thanks to the rail road. Those real data show ”

The gentleman is arguing that the author is picking and choosing data as well as using snow data which are unreliable due to the characteristics of different types of snow.

The overwhelming preponderance of evidence show that AWG is occurring. You can “believe” whatever you want and cast your vote whichever way you want, but it doesn’t make you right. We are pushing toward atmospheric CO2 concentrations not seen since the Mid Miocene Climactic Optimum when it was 6C warmer (Pagani, 2005, heckuva guitar player). Tibetan uplift sure wreaked some havoc! Granted, things got really crazy in at the Eocene/Oligocene boundary when CO2 concentrations abated enough to allow for Antarctic glaciation (DeCento and Polard, 2003) but we’ve got a way to go to get there (we’re at 392ppm and would need to get to 600ppm).

Those are numbers and references off the top of my head. I can do this all day but if you read this, you’ll understand why I shouldn’t bother.

(Comments wont nest below this level)
Comment by CharlieTango
2012-03-08 13:15:16

I really don’t think I’m confused on interglacial periodicity at all but I did “wiki” and saw this: http://en.wikipedia.org/wiki/File:Ice_Age_Temperature.png which seems to confirm my understanding the currently the cycle is ~100,000 years with a ~10,000 year interglacial of which we are currently 10,000+ years into. Where am I confused?

You keep posting about the snow conditions giving different results, there are 2 issues:

1) the varying results average out in a short period of time and here we are talking about 130 years.
2) probably only the longest standing measurements ( provided by the railroad ) would rely on snow depth. modern techniques measure the “water content” of the “snow pillow” which is done about every 15 - 20 miles at the sierra crest.

Now you conclude using this phrase: “overwhelming preponderance of evidence show…[AGW is real]” That is the opinion of one side of this argument and it doesn’t make you right. The evidence as found in the MSM is beyond highly biased.

Finally you correlate CO2 levels with various “optimums” but you don’t comment on what drives what. You obviously assume the CO2 drives temperature but the reverse is true ( time for you to do some “wikis”? - careful wiki is UGC and biased on this subject. )

So I get that you always say that I am wrong, but you never bother to point out where.

 
Comment by MrBubble
2012-03-08 14:46:11

“The evidence as found in the MSM is beyond highly biased.”
We are in the Flandrian interglacial: ~12ka (when I was studying this, it was called the end of the Pinedale glaciation)
Sangamonian interglacial: 100-130ka (when I was studying this, it was called the end of the Bull Lake glaciation)
Pre-Illinoian interglacial: 200-300/380ka.

That’s what I’m pulling from w.r.t. glacial/interglacials.

“The evidence as found in the MSM is beyond highly biased. ”

None of those papers that I cited is in the MSM. The MSM is tragic and I don’t get my info from them. Only a non-scientist would listen to someone from the Heartland Institute or a Forbes article to ascertain the facts on AGW. The main body of scientists generally agree that AGW is happening. Just read the literature. Oh wait, they’re all getting paid to do the research, yeah, yeah, that’s it. There’s just no arguing since there’s an a priori ideology at work here.

“You obviously assume the CO2 drives temperature but the reverse is true” No, the reverse can be true, if for example, it somehow got massively colder, lots more ice could be locked up and sea levels could fall thus exposing more land to chemical weathering and result in a draw-down of CO2 and even colder temperature. However, CO2 can also drive temperature and that is what is occurring at present. That stuff about changing solar isolation is a joke.

 
 
 
Comment by Hwy50ina49Dodge
2012-03-08 12:18:27

“Scripps researchers, in coordination with Lawrence Livermore National Laboratory scientists, have concluded that 60 percent of that downward trend is due to…”

Well geez, if only we could gather the data going back to the beginning: 7,000 years ago, we might be able to verify $arah-the- Barracuda” & the Evangelicalista’s Heavenly divined TRUTH claims and not have to rely on those Hippie, CA scientific Knuckleheads. :-)

Comment by mikeinbend
2012-03-08 17:37:29

Thanks for the spirited debate. No blatant ad hominem attacks, just data v. data in all concerned peoples(MrBub, CT are certainly concerned citizens, no), scientists, bribed scientists, the MSM, and laypersons’ cloudy crystal ball attempt to see the future.

Keepin’ the planet habitable for the children, for gawd’s sake! Who wouldn’t like that besides the evil oil companies? If our human decimation of the environment kills our race( hey the dinosaurs thoughtlessly did it too, but it does not make it right!), the earth will heal right up and go back to being hospitable to life for another while. Why should humans have all the fun? Maybe cockroaches would be better environmental stewards anyway.

We had almost NO snow in Bend mountains; full on sunny winter and a 5 foot base. Then with the end of Feb, beginning of March dumps, Mt. Hood is near 100% of normal water content. Other areas in Oregon are still hurting, but when I drive up to Bachelor, at least I have 10 foot walls of snow looming; threatening to fall on me as ususal. But this La Nina, and its climatic has been a hum-dinger in Australia, so I hear, according to an unverified source, “half the country is under water”. Sure had nice surfing conditions here in Oregon and California thanks to the lack of local storms, and lots of all day offshore winds with moderate but consistent swells.so I ain’t complaining about this “blip of time” anomolous winter weather we have been having. Nor do I relish winter driving another bonus! And how does a la nina mean warm winters in the US? The ocean water WAS cold, I can attest to that, but the insane snowpacks caused by the waxing La Nina last year have been replaced by an abyssmal U.S. snowpack of this winter and the waning La Nina event.

Since you guys know more about this than I from a scientific standpoint I ask you, Is the weather changing or is the climate changing? How long a time frame makes up the difference between climate or weather? Has man even been around long enough to comment on anything more than weather observations?(I realize they can take very old ice and get the CO2 content, etc of the atmosphere at the time, which would seem to help). I wonder about data that is not at least 10,000 yrs old myself; because maybe manmade global warming is fighting against a monstrous new ice age and is therefore keeping the earth habitable if only we burn ALL the fossil fuels available to us. After all, what were the dinosaurs here in the first place if it wasn’t for us to keep warm?

And how do meteorologists’ forecast models still get things wrong three days out? Are La Nina/El Nino events naturally occuring or man made? Or serious harbingers of doom?

(Comments wont nest below this level)
 
 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:51:16

The future outlook for the vampire squid forage stock has seldom looked better.

March 7, 2012, 3:03 PM

Surging Student Debt Pushes Up Overall Consumer Credit
By Jeffrey Sparshott and Maya Jackson-Randall

U.S. consumer credit expanded in January, driven largely by a surge in federal student loans.

Consumer credit outstanding expanded by $17.78 billion to $2.512 trillion, Federal Reserve data showed Wednesday. The rise followed big gains in November and December. Economists surveyed by Dow Jones Newswires had forecast an $11.00 billion increase.

Nonrevolving credit–which includes student loans–was up $20.72 billion, to $1.711 trillion, the biggest dollar increase since November 2001. Federal student credit outstanding rose to $453 billion in January from $425 billion in December. The figure is up more than four-fold from 2008–a sign high joblessness in the U.S. has prompted many people to go back to school.

Revolving credit, which includes credit-card debt, decreased in January by $2.95 billion, to $800.85 billion. December revolving credit rose a revised $3.65 billion.

The consumer-credit report doesn’t include numbers on home mortgages and other real-estate secured loans. But the Fed data are important for the clues to behavior by consumers, whose spending helps propel the economy.

Consumers may be paying down credit cards after running up debt in November and December for the holidays. Or they may be uneasy about the economy and holding back on some purchases.

Consumers faced higher prices to start the year, a Commerce Department report showed last week. The price index for personal-consumption expenditures increased 2.4% on a year-over-year basis in January. That is above the Federal Reserve’s long-term annual inflation target of 2.0%.

Comment by goon squad
2012-03-08 07:40:00

The student loan debt is the story to watch. Students with “real degrees” i.e. engineering, accounting, nursing not getting jobs in their fields after graduation and living in mom’s basement. Meanwhile the unsubsidized portion of federal student loan debt continues to accrue interest that is tacked on to principal when deferments end and repayment begins.

Comment by In Colorado
2012-03-08 09:00:47

What is interesting about nursing is that if you’re experienced you can still make good coin. A friend of mine’s wife is a neo-natal ICI nurse. She gets $50/hr and is always swamped with $75/hr overtime work.

There is a 3 year waiting list to get into the nursing program at the University of Northern Colorado in Greeley.

Comment by alpha-sloth
2012-03-08 09:36:10

The downside is that nursing is a really tough job. You work long hours, so any overtime is a real butt-kicker. It’s hard, often physically-demanding work, and it’s kind of depressing, working where ‘people keep dying’, as one nurse friend of mine put it. It takes a certain type, it’s definitely not for everyone.

(Comments wont nest below this level)
Comment by In Colorado
2012-03-08 09:53:31

it’s kind of depressing, working where ‘people keep dying’

I think that I could handle the blood and guts portion of the profession., but after seeing my mother’s final slide into the end of her days, many of which were spent at a hospital, I think I would become depressed by the inevitable futulity of my labor.

 
Comment by polly
2012-03-08 10:34:02

I think I could have handled blood and guts too. It is the poop and vomit that would have been a problem.

 
Comment by X-GSfixr
2012-03-08 10:59:21

That’s what they have the LPNs and Nurse’s Assistants for.

 
Comment by In Colorado
2012-03-08 11:09:49

That’s what they have the LPNs and Nurse’s Assistants for.

Correct. From what I saw in the hospital the “high end” nurses never dirtied their hands with such tasks. Most of the nurses in my mother’s ICU spent most of their time sitting at a desk doing paperwork,

 
Comment by MightyMike
2012-03-08 12:11:30

it’s kind of depressing, working where ‘people keep dying’

I’ve heard this called “nurse burnout”. I think it’s interesting that you never hear about doctor burnout.

 
Comment by Hwy50ina49Dodge
2012-03-08 12:24:03

“I think it’s interesting that you never hear about doctor burnout.”

Spend an hour listening to their spouses laments, no not money so much …time … @ home … doing … thangs … together. :-/

 
 
 
Comment by X-GSfixr
2012-03-08 10:55:36

Apparantly, the student loan defaults aren’t due to college costs. Most of it is due to defaults on “Vocational” training schools. Some scams just never go away.

Here’s how it works…….

-Sign up the student for the training. No screening to determine if they actually have the basic smarts/skills to pass the coursework, just get them signed up.

-Help the apply for student loans, the bigger the better. Make sure they know that the money can be used for living expenses.

-School bills them for the course up front. Drop out? Not their problem. The school has collected their money. Go talk to the student, his/her’s name is on the loan.

This was going on back in 1978 and 79 at my A&P school. “Recruiters” were paid commissions on how many kids they could get signed up on the dotted line. No screening/testing of incoming students. By the time we got out of the “G-1″ thru “G-6″ general courses, there was about a 75% dropout rate.

And my school was a “legit” school that had been in business since the 1930s. Think of the money you could make if you designed a plan to collect student loan money up front, then create the atmosphere for a high drop out rate.

Really, I need to lose this “Golden Rule” standard. If I didn’t feel guilty about screwing other people, I’d be a gazillionaire.

Comment by alpha-sloth
2012-03-08 20:00:24

I need to lose this “Golden Rule” standard. If I didn’t feel guilty about screwing other people, I’d be a gazillionaire.

It really does help to be a psychopath. Or at least blinded by greed.

(Comments wont nest below this level)
 
 
 
Comment by Liz Pendens
2012-03-08 08:26:29

Every down and out piece of $hit loser I know (and for some reason, I seem to know plenty :) ) is currently talking about “going back to school”. Apparently they heard the handouts are to die for.

Comment by jeff saturday
2012-03-08 08:42:28

“Every down and out piece of $hit loser I know”

I don`t know where, but somwhere there is a song that fits that line.

 
Comment by alpha-sloth
2012-03-08 08:44:42

Apparently they heard the handouts are to die for.

The handouts that make people owe 10s of thousands of dollars when they’re done?

Comment by Liz Pendens
2012-03-08 09:23:57

Unlce Bammy says its ok not to pay that back.

(Comments wont nest below this level)
Comment by alpha-sloth
2012-03-08 09:37:45

Really? Got a link?

 
Comment by In Colorado
2012-03-08 09:56:06

Of course there’s no link. If Rush can make up his facts, why can’t everyone else who hates Obama do the same?

 
Comment by Liz Pendens
 
Comment by In Colorado
2012-03-08 14:02:44

“Under the terms of this program, anyone who makes his monthly payments for twenty years after leaving college is eligible to have his/her remaining balance forgiven”

Having to pay the first 20 years hardly sounds like “its ok not to pay that back”, especially since few are amortized that long.

 
Comment by Carl Morris
2012-03-08 15:20:46

Sounds to me like the unintended consequence of this will be a lot of student loans that are interest only (or worse) for just over 20 years.

 
Comment by goon squad
2012-03-08 16:23:40

FYI loans structured interest only do not extend the loan term, i.e. a 10 year loan may be approved for an interest only payment plan for the first 36 months but then it fully amortizes over the following 84 months resulting in a higher payment.

 
Comment by alpha-sloth
2012-03-08 20:02:50

Having to pay the first 20 years hardly sounds like “its ok not to pay that back”

It did when Rush said it.

 
 
 
Comment by In Colorado
2012-03-08 08:58:05

“Apparently they heard the handouts are to die for.”

What handouts? The loans? The only way you’ll get a Pell Grant is if you’re destitute and it won’t cover the tuition at any private school. Any other grants will be privately funded.

I have two kids in college and the only “financial aid” we’re ever offered (other than merit scholarships) are loans.

Comment by Al
2012-03-08 10:17:44

“What handouts? The loans?”

The loans don’t have to be paid back until sometime later, which is good enough the desperate now. Besides, by the time they have to start paying back the loans, they’ll all have six figure incomes and be able to refinance into a cheaper loan.

(Comments wont nest below this level)
Comment by In Colorado
2012-03-08 11:14:06

What good will those loans do? The amount they give you for “living costs” is no more than a Lucky Ducky wage. Hardly the kind of scratch that pays for cool cars or vacations.

 
Comment by In Colorado
2012-03-08 11:16:33

But they still have to be paid back. A loan is not a handout, especially one you can’t run away from like a student loan.

 
 
Comment by X-GSfixr
2012-03-08 11:11:40

With my two youngest, I’m doing my part…..

I’ve told them to forget about college. No point in going $100K in debt, only to get a $10/hour job. Better to get on with a company where you can acquire a semi-marketable skill, sit back, and see what happens in the next 5 years. If nothing else, the “semi-marketable skill” will come in handy if/when college makes sense again.

Frankly, the kids need to go “on strike”. They are getting screwed and tattooed six ways from Sunday. Time for them to drop out/never sign up for college, quit volunteering for the military, get a minimum wage job, and sponge off the Bank of Mom and Dad for 3-4 years.

If Mom and Dad were smart, they would encourage this. Especially if they were to actually sit down and figure out how much they are spending to subsidize Junior’s part-time job.

Better yet, don’t even take the min. wage job, if 3/4 of your money is spent on transportation and expenses of working.

(Comments wont nest below this level)
 
Comment by Liz Pendens
2012-03-08 13:11:09

Sorry. A loan given to a guy with no job and bad credit is a handout even under the guise of a student loan. Yesterday it was a for house, today its for school. Already know how this movie ends.

(Comments wont nest below this level)
Comment by In Colorado
2012-03-08 14:12:32

More like a handout to the useless trade school the loser attended.

 
Comment by Liz Pendens
2012-03-08 16:52:56

Ten Four on the bs tradeschool handout, Colo. They probably milk the govt six ways from sunday to pay the administrators humungous bonuses.

 
 
 
 
 
Comment by CarrieAnn
2012-03-08 05:53:31

Scroll down the article to find the chart which illustrates the absolute cliff in student enrollment in upstate schools over the last decade. The worst drop is 31%, Southern Cayuga Central in the finger lakes region, with only one school district experiencing growth, Jamesville-Dewitt, bordering the city. The list w/20%+ drops is significant. Most had a drop of at least 10%. It doesn’t surprise me that the hardest hit are further out from the job centers while those closer to Syracuse proper seem to have been barely nicked.

One has to wonder with all those families leaving the area, who’s moving in? I know the total population loss is not anywhere near these numbers. I’m starting to wonder if upstate has been overrun w/speculators. (Some of the losses are people homeschooling or putting their kids in private schools but I don’t feel that reflects the 20-30% losses.)

http://www.syracuse.com/news/index.ssf/2012/03/new_york_state_school_district.html

Comment by Blue Skye
2012-03-08 07:12:04

Last year after the 2010 census data was out they told us the population decline was over in Central NY.

http://www.syracuse.com/news/index.ssf/2011/03/central_new_york_halts_decline.html

 
Comment by polly
2012-03-08 07:36:52

Can you get numbers on sales tax receipts by county? That could confirm a large loss of population. The numebrs would be muddled by people just decreasing overall spending, but there might be something in there. Income tax receipts would be better, but since the stats tend to lag.

Comment by CarrieAnn
2012-03-08 10:50:05

Here’s info on 2010/2011 change by county. Onondaga up 4.08% yoy.

http://rocdocs.democratandchronicle.com/database/ny-sales-tax-collections-4q-2011

 
Comment by CarrieAnn
2012-03-08 11:03:21

Page 12, 1990-2008, all counties positive. Contraction in 2009, see earlier link for 2010, 2011 info.

WARNING: PDF

http://www.osc.state.ny.us/localgov/pubs/research/salestax2010.pdf

 
 
Comment by WT Economist
2012-03-08 11:14:02

New York is government of the seniors, by the seniors, and for the seniors. Even school spending, which is high, has as its main purpose non-teaching sinecures and early retirement.

Young adults continue to show up in New York City. For now. The rest of the state? Forget it.

Comment by CarrieAnn
2012-03-08 11:56:50

That’s basically what I’m seeing too but I believe the benefits of living out retirement here are skewed more to the senior w/state pensions than to those w/o a pension.

 
 
Comment by Muggy
2012-03-08 14:35:01

Holy frickamole, did you see the enrollment graphic with that story?

http://media.syracuse.com/news/photo/10642971-large.jpg

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:53:55

March 7, 2012, 6:15 p.m. EST
Japan recovery: Heroic bid may yet fall short
One year later, a struggle to overcome aftermath of disaster

HONG KONG (MarketWatch) — Standing before fellow lawmakers in a recent appearance, Prime Minister Yoshihiko Noda urged on Japan’s “rebirth” in much the same way the nation rebuilt from the “burning fields” of a war-torn land more than 60 years ago.

It was one of several instances in which the natural disaster that struck Japan one year ago was compared with the man-made devastation of World War II. In the year since the monster earthquake last March 11 set off a chain reaction of tragic events, Japan has showcased how far it has rebounded from the catastrophic aftermath, even as reminders abound of how much more of its difficult task remains.

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:56:17

Free bailout insurance is the fertilizer for seeds of malinvestment.

March 7, 2012, 5:06 p.m. EST
Plunge protection team hedging on Greece
Commentary: Commits to more free money ahead of key debt swap
By David Callaway, MarketWatch

SAN FRANCISCO (MarketWatch) — At some point, the world’s major central banks are going to turn off the three-year spigot of free money supporting much of the world’s economic and market gains these days.

Just not right before a key Greek debt swap on Thursday that could ignite the European crisis all over again.

The Federal Reserve’s signal on Wednesday that it is considering buying more bonds to keep interest rates low was welcomed by global markets stinging from the worst day of the year in their previous sessions. The Wall Street Journal’s Jon Hilsenrath broke the story during the morning trading session in New York, turning a wait-and-see day in the markets into a nice rally for stocks, bonds, and everything except the U.S. dollar.

The story brought back into the mix the idea that the Fed and other central banks will continue to spray the world with free money to keep growth moving, and investors optimistic. For the last several weeks, the Fed at least had been backing off from a third round of bond buying in the last few years, or quantitative easing in economic terms, in what’s come to be known as QE3.

Comment by Blue Skye
2012-03-08 07:32:19

The problem is that as soon as you stop lending deadbeats money, they cannot continue making the payments on what they borrowed already.

Comment by turkey lurkey
2012-03-08 09:07:08

You just described corporate philosophy of the last 35 years and Wall St just redently.

Comment by oxide
2012-03-08 09:26:25

And the US government since the Depression.

(Comments wont nest below this level)
Comment by alpha-sloth
2012-03-08 09:41:59

Well, if it won us an existential world war, and made us the richest country in history, with the highest overall standard of living ever, all the while paying down the debt, then it must have been a pretty good system.

Then we tinkered with it, decided to see if the wealth would ‘trickle down’ rather than rise up. We’re living with the consequences of that experiment.

 
Comment by Al
2012-03-08 10:20:51

“Then we tinkered with it, decided to see if the wealth would ‘trickle down’ rather than rise up.”

While this is certainly true, it can’t be forgotten that the rest of the world rebuilt after the War and became a lot more competitive. The Decline has more than one cause.

 
 
 
 
Comment by Neuromance
2012-03-08 11:38:38

Gamblers gonna gamble. I’ve got no problem with that. But the taxpayers should not be stuck with the bill when they make bad bets.

Comment by Hwy50ina49Dodge
2012-03-08 12:31:23

[ Hwy50 modified]

“But the taxpayer$ should not be $tuck with the bill$ when MegaCorInc’$ make bad bet$.”

What part of Cheney-$hrub’s: “Hurry!, Hurry! Hurry! me$$age was mi$-leading? :-)

 
Comment by Liz Pendens
2012-03-08 13:13:40

“Gamblers gonna gamble. I’ve got no problem with that. But the taxpayers should not be stuck with the bill when they make bad bets.”

-Commie bastard!

 
 
 
Comment by Liz Pendens
2012-03-08 05:56:30

A local Prominent Realtor has been getting almost every new listing by offering 4% commission. The other area Realtors are pissed and say things like: “We are worth more than that”, “You need more than that to pay for advertising and other costs”, “It won’t last”, etc. Anyway, she is really stirring things up among the liars.

Comment by combotechie
2012-03-08 06:47:42

Chalk one up for the Law of Supply and Demand.

 
Comment by Blue Skye
2012-03-08 07:35:52

Our local low commission realtor has given up due to low volume and low prices.

 
Comment by turkey lurkey
2012-03-08 09:08:45

I’d love to tell them what I’ve heard all my life from self-entitled people just like them: “You’re worth what you’re paid at the moment.”

I LOVE it when egos meet reality!

Comment by Al
2012-03-08 10:29:52

You have right here an excellent character test. Something to use on a first date. Throw out the line “You’re worth what you’re paid at the moment” and see the reaction.

If they start telling you how much they make, you’re dealing with a superficial rich snob.

If they suddenly look awkward and are a little too anxious to change the subject, you’re dealing with a superficial poor slob.

If they shrug and move on as if you never made the statement, you’re probably dating someone with whom you won’t have to many stimulating debates.

If they challenge you on the statement without seeming to take it personnally, you might have a winner.

Comment by polly
2012-03-08 10:41:06

Or the person decides that anyone who would make such a statement isn’t worth a second date and rather than challenge you decides to just get to the end of the evening and never see you again.

If you are going to treat a date like a job interview or an audition, you really shouldn’t lie about your values.

(Comments wont nest below this level)
Comment by Al
2012-03-08 14:23:05

And if they take what you say too seriously….

 
Comment by polly
2012-03-08 16:09:00

I expect people to say what they believe, especially when trying to get to know someone. Like I said, if you consider a date to be a job interview or an audition, and you lie about your beliefs just to try to get a rise out of someone, then you are asking to be rejected by people who might like you if just tried a little honesty instead.

 
Comment by Posers
2012-03-08 18:21:43

Sounds like an ethical conundrum to me.

 
 
Comment by Liz Pendens
2012-03-08 12:15:34

If they shoot black ink at you then they must work for Goldman Sachs.

(Comments wont nest below this level)
 
 
 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 05:58:49

Happy Birthday, Alan Greenspan: The Housing Bubble Wasn’t Your Fault
By Matthew O’Brien

Mar 7 2012, 6:10 PM ET 4

The legendary Fed chair turns 86 this week, which gives us a moment to reflect on the most misunderstood piece of his legacy: Maestro’s role in the real estate bubble

Comment by Liz Pendens
2012-03-08 06:44:46

The maestro is just as blissfully oblivious now as he will be after his death.

Comment by rms
2012-03-08 08:19:00

The maestro is just as blissfully oblivious now as he will be after his death.

Don’t kid yourself. Greenspan has carefully cultivated this Mr Magoo image for the media while beneath that layer he is as sharp as a carpet tack.

Comment by Northeastener
2012-03-08 09:52:32

It’s a little tin-foil hat-ish, but I still hold that Greenspan’s aim was to destroy the fiat-based economy in a manner that wouldn’t be immediately obvious to anyone.

This is a guy who, in his younger years, wrote papers on how Gold was the only defense against the ravages of currency debasement through fiat printing. This is a guy who, at one point in his life, was a supporter of Rand and her ethos. Greenspan, in my mind, knew exactly what he was doing and what course he put the country on.

(Comments wont nest below this level)
Comment by alpha-sloth
2012-03-08 10:35:36

This is a guy who, at one point in his life, was a supporter of Rand and her ethos.

They were life-long best buds/lovers. She was his ‘mentor’.

wikipedia
“In the early 1950s, Greenspan began an association with famed novelist and philosopher Ayn Rand…He became one of the members of Rand’s inner circle, the Ayn Rand Collective, who read Atlas Shrugged while it was being written. During the 1950s and 1960s Greenspan was a proponent of Objectivism, writing articles for Objectivist newsletters and contributing several essays for Rand’s 1966 book Capitalism: the Unknown Ideal including an essay supporting the gold standard.[49][50] Rand stood beside him at his 1974 swearing-in as Chair of the Council of Economic Advisers. Greenspan and Rand remained friends until her death in 1982.[41]”

Greenspan, in my mind, knew exactly what he was doing and what course he put the country on.

I often have the same suspicions as you.

 
Comment by In Colorado
2012-03-08 11:29:40

They were life-long best buds/lovers

Eww! I’ll never get that mental picture out of my mind now!

 
 
 
 
Comment by alpha-sloth
2012-03-08 09:22:13

The author makes a decent point- and he’s not exonerating Maestro Magoo. But did prices not go up across the board during the Aughts? Seems like the price of cars sure did, and college educations- everything you borrow money to finance. Health care sure went up. Crap made in China held steady.

Where the Fed really failed was as a regulator. It could have gone after the predatory lending in the subprime world, if it had wanted to. At least one Fed governor suggested doing so. Greenspan rebuffed him. Counter-factuals are always tricky, but if the Fed had clamped down on the endemic fraud in the mortgage market, it’s not difficult to imagine the run-up in housing prices being much more muted. After all, if the problem had been low interest rates, prices should have skyrocketed across the board. That prices only skyrocketed for housing tells us that something peculiar was going on there, namely an abdication of any regulatory oversight.

 
Comment by Blue Skye
2012-03-08 09:47:06

“the most misunderstood piece of his legacy”

was everything he said.

 
 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 06:00:46

Steve Forbes, Forbes Staff
Op/Ed
3/07/2012 @ 3:11PM
Arse Backwards: The Federal Reserve’s Approach to the Housing Market

This article originally appeared in the Mar. 26, 2012 issue of Forbes magazine.

In reaffirming its near 0% interest rate policy for another three years the Federal Reserve averred that this was ­necessary to revive the housing market, which, in turn, was necessary for the economy to revive. House building and the buying and selling of existing homes are meaningful parts of the economy. More important, from the Fed’s perspective a house is the biggest asset for millions of people; therefore, higher values mean owners will be more likely to spend.

This reasoning is arse backwards.

A strong economy—and minimal gov­ernment interference—would rapidly revive the housing market. People who want to buy houses, which includes most of us, buy them when we can ­afford to do so. Only during the Fed-­created bubble were millions of people with insufficient incomes purchasing homes with mortgages that were far beyond their capacity to service.

Let’s hammer this point home: ­Government and Federal Reserve “stimulus” for housing won’t put our economy on a vigorous and sustainable growth trajectory. Other things—sound money, low tax rates, less spending, repealing ObamaCare and Dodd-Frank—will.

Comment by X-GSfixr
2012-03-08 11:26:02

Steve Forbes is just running his Trickle-Down talking points again.

How, pray tell, is the repeal of Dodd-Frank going to do anything, other than improve the bankster’s bottom line?

Comment by alpha-sloth
2012-03-08 20:11:05

How, pray tell, is the repeal of Dodd-Frank going to do anything, other than improve the bankster’s bottom line?

It would let the job creators create jobs! Or some such long-disproved drivel.

 
 
 
Comment by CharlieTango
2012-03-08 06:00:56

The administration doesn’t need permission from congress to start another war in the near east.

PANETTA: ‘INTERNATIONAL PERMISSION’ TRUMPS CONGRESSIONAL PERMISSION FOR MILITARY ACTIONS

Defense Secretary Leon Panetta appeared at a Senate Armed Services Committee congressional hearing, where he said “legal basis” was needed to initiate a no-fly zone over Syria.

http://www.breitbart.com/Breitbart-TV/2012/03/07/Shocking%20Defense%20Secretary%20Says%20International%20Permission%20Trumps%20Congressional%20Permission

Comment by Darrell in Phoenix
2012-03-08 07:11:45

What part of “Command in Chief of the Armed Forces” do people not understand?

Comment by palmetto
2012-03-08 07:38:57

What’s your point? The prezzie can do whatever he wants? We’re not under threat from Syria.

Comment by Darrell in Phoenix
2012-03-08 13:34:38

Yes, the pres can do anything he wants with the military, as long as it doesn’t violate the Constitution in regards to the rights of citizens.

The Constitution doesn’t require we be under threat.

(Comments wont nest below this level)
Comment by Prime_Is_Contained
2012-03-08 14:49:08

The founding father clearly clearly intended to reserve to Congress the power “To declare War”–see Article 1, Section 8.

Unfortunately, the same founding fathers did not see fit to define “War”, as apparently it seemed clear to them in that day and age.

No such luck. This is one of the flaws in our Constitution.

 
 
 
 
Comment by palmetto
2012-03-08 07:17:52

AH-mazing. People need to understand what is REALLY happening in Syria. A false revolution, for sure.

http://takimag.com/article/syrias_false_revolution_taki#axzz1oXDYMDr7

Comment by turkey lurkey
2012-03-08 09:11:13

Syria has always been a bone of contention between the superpowers and a land of serious skullduggery and triple cross.

 
Comment by stewie
2012-03-08 14:42:29

Speculation only.

 
 
Comment by Ben Jones
2012-03-08 07:19:23

Meanwhile:

http://thecable.foreignpolicy.com/posts/2012/03/06/graham_i_m_almost_ready_to_pull_the_plug_on_afghanistan

‘If Afghanistan President Hamid Karzai doesn’t change his tune fast on two key U.S. demands, the U.S. military should just pack up and go home and leave Afghanistan for good, Sen. Lindsey Graham (R-SC) said today. ‘So if he insists that all the prisoners have to be turned over by March 9 and that we have to stop night raids, that means we will fail in Afghanistan and that means Lindsey Graham pulls the plug. It means that I no longer believe we can win and we might as well get out of there sooner rather than later.’

http://abcnews.go.com/blogs/politics/2012/02/gingrich-to-afghanistan-live-your-own-miserable-life/

‘We’re not going to fix Afghanistan. It’s not possible. These are people who have spent several thousand years hating foreigners,’ Gingrich said. ‘And what we’ve done by staying is become the new foreigners. And this is a real problem.’

‘Gingrich said that in his judgment, the problems the U.S. faces in the Middle East are too big and complicated for military solutions. ‘There’s some problems where what you have to do is say ‘You know, you’re going to have to figure out how to live your own miserable life because I’m not here — you clearly don’t want to hear from me how to be unmiserable,’ Gingrich said’

‘how to be unmiserable’ WTH does that mean?

‘Lindsey Graham pulls the plug’… Kinda like Bob Dole, clutching a pen and saying ‘Bob Dole’ this and ‘Bob Dole’ that.

Anyway, they’re all lining up their excuses for bailing out of Afghanistan. A trillion bucks gone. Many thousands dead.

Comment by palmetto
2012-03-08 07:37:52

“Anyway, they’re all lining up their excuses for bailing out of Afghanistan. A trillion bucks gone. Many thousands dead.”

Why stay when you’ve got Syria and Iran to mess with?

Comment by Liz Pendens
2012-03-08 08:11:34

The troops should all come home and get student loans/grants and SNAP cards like normal people. Its a party.

(Comments wont nest below this level)
Comment by In Colorado
2012-03-08 08:53:16

I don’t have a SNAP card. I guess I’m “abnormal”.

 
Comment by turkey lurkey
2012-03-08 09:12:24

LOSER! (just kidding)

 
Comment by In Colorado
2012-03-08 09:58:16

LOL! I know a few families that depend on SNAP. I wouldn’t trade places with them. Of course, they don’t drive Escalades nor buy steak and lobster with SNAP cards while yakking on their iPhones.

 
Comment by turkey lurkey
2012-03-08 10:08:36

Then you must be mistaken sir!

Seriously, I’ve lived in the ghetto and less desirable parts of town and the only ones driving nice cars were the drug dealers.

 
Comment by polly
2012-03-08 10:44:42

Adn if you read Freakanomics, you’ll know that only the tiniest proportion of drug dealers get to the level where they can get their hands on a nice car.

 
Comment by butters
2012-03-08 12:00:24

Freakanomics

If my memory serves, the hierarchy of drug dealers resembled that of a fortune 500.

 
Comment by polly
2012-03-08 13:05:04

Most of them lived with their mothers/grandmothers because they didn’t make enough to live on their own.

 
 
 
Comment by Hwy50ina49Dodge
2012-03-08 07:59:01

“Anyway, they’re all lining up their excuses for bailing out of Afghanistan. A trillion bucks gone. Many thousands dead.”

Cheney-$hrub $hadow Legacy #1: “They’ll greet US like the French …”

Shrub: “Things are going $wimmingly!”
(Looking down at Baghdad aboard Airforce 1 @ 30,000 feet)

Kisse$ & Hug$ + “Mi$$ion Acompli$hed!”

Hwy50 inserts Neil Young cd “Living with War”:

“Let’s impeach the President …”

:-)

 
Comment by ducks
2012-03-08 09:09:33

When looking at some of the near eastern countries, “unmiserable” might prove to be a very prescient neologism. Kudos to Newt.

Comment by Steve J
2012-03-08 10:59:07

Sad to see Newt want to cut and run.

It’s almost like Afghanistan is his current wife and Iran is his new mistress.

(Comments wont nest below this level)
Comment by Hwy50ina49Dodge
2012-03-08 12:37:01

Ha!

Cheers Mr. Steve. :-)

 
 
 
Comment by Northeastener
2012-03-08 10:12:45

Anyway, they’re all lining up their excuses for bailing out of Afghanistan. A trillion bucks gone. Many thousands dead.

Those who don’t study history are doomed to repeat it. This was completely predictable… did anyone think the US military could do what the Soviet Union, Britain, etc had failed to do? Another case of “it’s different this time”..

The worst part of it is that anyone who has read The Art of War would have immediately seen the impossibility of “winning” in Afghanistan. The real question you have to ask yourself is, if our highly educated and well-read General Staff have read Sun Tzu (and I’m quite certain they have), how is it they still came to the conclusion of “victory” in Afghanistan being a possibility?

Comment by Blue Skye
2012-03-08 10:34:53

Perhaps they were reading The Little Engine that Could.

(Comments wont nest below this level)
 
Comment by Al
2012-03-08 10:37:50

Depends on how you define victory. Defeating the Taliban, no problem. Making Afghanistan look like the West, big problem. It would be interesting to know how the govt defined the mission in the beginning.

(Comments wont nest below this level)
Comment by Steve J
2012-03-08 11:04:09

As Bush said - dismantling the al-Qaeda terrorist organization and ending its use of Afghanistan as a base.

 
Comment by Northeastener
2012-03-08 11:33:37

Depends on how you define victory. Defeating the Taliban, no problem.

As Bush said - dismantling the al-Qaeda terrorist organization and ending its use of Afghanistan as a base.

Considering the Taliban continue to be quite problematic enemies that we are supposedly negotiating with for some sort of peace, I would say we have “defeated” them about as well as we did the Viet Cong and NVA in Vietnam. As far as Al-Qaeda, they are a fluid decentralized organization that can move operations from one third-world locale to another.

If we were to pull out all our forces from Afghanistan tomorrow, the Taliban would take over the country, again, within a matter of weeks, Afghan National Army not withstanding.

As far as dismantling Al-Qaeda in Afghanistan, we have accomplished that, but unless we maintain a constant presence in-country or have a strong central government in Afghanistan that does not sympathize with Al-Qaeda, they can always move back. The “victory” is temporary at best. At worst, we’ve spread their influence from a single central location to many others, making it that much harder to find and eradicate.

 
Comment by X-GSfixr
2012-03-08 11:50:54

We could (and still can) “win” in Afghanistan. If we are willing to dedicate 10 times the resources that we are now.

But if you admit that it’s going to take 10X to “win”, many other alternatives are a lot more cost effective, both in lives and money.

Nobody ever got anything done by being honest. Over-estimate the benefits, and under-estimate the cost. Standard Ops Procedures for Business and Government leaders worldwide.

 
Comment by measton
2012-03-08 12:56:17

We could dump 100 x the resources and we wouldn’t win with the same plan.

WE could only win in Afghanastan if we were willing to do what we did in Japan. ie all Taliban towns subject to large bombs. Of course that might open up a whole new can of problems around the globe but we’d win in Afghanastan. Yeah victory.

We should have gone in Blasted the Taliban and taken Osama and got out with a promise of more if they kept supporting terrorists. I think the country has mineral wealth and nat gas pipeline and strategic interests that kept our gov there.

 
Comment by X-GSfixr
2012-03-08 14:04:49

We have basically the same problem we had in Vietnam. Fighting an insurgency whose supply and reinforcement lines are “safe havens”.

This is what Harry G. Summers book “On Strategy” stressed about our failure in Vietnam. Use US power to isolate the insurgency from supplies and reinforcement. Let the locals sort out their problems without exterior interference.

Anyone with a map should have been able to figure out that it was going to take.

Length of border with Pakistan = 1500+ miles

Length of border with Iran = 930+ miles

How many guys do you think it would take to secure that much border, 24/7/365?…..and remember, our military has about 5-6 guys in the tail for every one at the “tip of the spear”.

To “secure” Afghanistan, the draft would have to be reinstated. Would we have gotten involved in either Iraq or Afghanistan if they admitted that they would need to start the draft? I think not.

So they decided to do a half-azz job. Which led to half-azzed results.

We’d have been better off asking the 12-20 million Mexican illegals to volunteer for a “Foreign Legion”, pay them minimum wage, and tell them they could get a Green Card/Citizenship. if/when they kicked the Taliban and Al Queda out of Afghanistan.

 
Comment by aNYCdj
2012-03-08 19:30:14

Exactly Rare earth minerals…..a huge stash underground in afghanni while ours is fought by environmentalists….because a lot is on our land , government land…we cant even drill on…

I think the country has mineral wealth and nat gas pipeline and strategic interests that kept our gov there.

 
 
Comment by polly
2012-03-08 10:49:15

What we could have done in Afghanistan was the important thing - punish OBL and his friends for 911. But the Bush administration got distracted by Iraq and instead of throwing everything we had at Tora Bora when they were still there, we outsourced the war to the locals who - what a surprise - decided that since the money was nice, why should they finish the job. Besides, their cousin was there

(Comments wont nest below this level)
Comment by Neuromance
2012-03-08 11:41:35

“If we’re paying the Pakistanis billions of dollars a year to search for Bin Laden, why would they ever find him?” - some astute observer.

 
Comment by butters
2012-03-08 11:45:16

punish OBL and his friends for 911.

Do you honestly believe OBL had anything to do with 911? All he was a “spiritual” guru.

 
Comment by oxide
2012-03-08 13:42:08

some astute observer

…who was probably an academic researcher or government contractor. Notice how they always say “more research is needed.”

 
 
Comment by Hwy50ina49Dodge
2012-03-08 12:42:36

“A trillion [+] buck$ gone. Many thousands dead.”

$tay focu$ed:

“Linda-the-Lunch-Lady-Live$-Lavishly!”

“Get Angry!”

$ponsered by Faux New$ Inc.’$

(Comments wont nest below this level)
 
 
Comment by WT Economist
2012-03-08 11:10:39

There’s the Republican masterplan. We can afford to invade Syria and Iran, because we are leaving Iraq and Afghanistan. They’re on the way home!

Comment by Hwy50ina49Dodge
2012-03-08 12:45:51

Pattern$ of Behavior$ … applies to “Bidne$$” organization$

Is the repubican party a “Bidne$$” organization?

(Comments wont nest below this level)
 
Comment by butters
2012-03-08 13:50:23

On our way back, we should come through Iran and Syria. I used to hear that during Iraq war.

(Comments wont nest below this level)
 
 
 
Comment by CharlieTango
2012-03-08 08:05:15

Panetta: ‘International Permission’ Trumps Congressional Permission For Military Actions

Above is the interesting part

Comment by CharlieTango
2012-03-08 08:13:45

Panetta says:

#1 We will seek international permission
#2 We might come to congress and inform them
#3 We may decide to seek permission from congress.

Yikes!!!!!!

We now have a 2-nation ( international permission ) doctrine that trumps our own congress, gotta luv this administration.

Comment by turkey lurkey
2012-03-08 09:34:41

Sorry, but it was Bush Senior, working with Reagan and Kissinger (along with Cheney, Rove and Rumsfeld) who worked long and hard to created the New World Order.

Yes, you can google their very own quotes on the matter.

(Comments wont nest below this level)
Comment by CharlieTango
2012-03-08 10:15:59

Amazing,

Obama administration claims international permission [to go to war] trumps congress and they will seek such international permission and you blame Bush.

 
Comment by X-GSfixr
2012-03-08 11:58:59

Why not? He’s just doing the same thing Republican Presidents have been doing for almost 40 years.

Really, I don’t understand the Republican hatred of Obama. Forget his words, look at his actions. Giant direct and indirect bailouts of the banksters, while throwing a few scraps at J6P.

Even the hated Obamacare just throws a bunch of money at Big Business.

 
Comment by butters
2012-03-08 12:41:44

Really, I don’t understand the Republican hatred of Obama.

I never understood Democrat’s hatred for Bush either. No child left behind, Prescription drug plan, New Home Land security department, 2 mega wars to stimulate economy, so on and so on.

 
Comment by Hwy50ina49Dodge
2012-03-08 12:50:30

“2 mega wars to stimulate economy”

“I never understood Democrat’s hatred for Bush either.”

Did Colin Powell tag along with the fella’s that knock on Americans door to deliver news of non-returning soldiers?

 
Comment by X-GSfixr
2012-03-08 14:12:22

“….Democrat’s hatred for Bush.”

True. Except I wouldn’t consider the DHS and two wars as being anything a “real” Democrat would endorse.

 
Comment by butters
2012-03-08 14:23:14

Party of Roosevelt, Truman & Johnson. Do you honestly believe Dems don’t love wars. They just don’t love the wars started by Republicans. They love the wars they started. It’s always been that way.

 
Comment by Hwy50ina49Dodge
2012-03-08 14:31:23

It’s always been that way.

Well, you’d think with ALL that education in America, the People & it’s Repre$entative$ would be far beyond:

“War$ of Choice”

Seems like it’s all come down to “Bidne$$” as u$ual. Wait, Ike wants to chime in, hold on … something about green paint & Halliburton.

 
Comment by Hwy50ina49Dodge
2012-03-08 14:42:55

“Do you honestly believe Dems don’t love wars.”

wikipedia org/wiki/Nazi_concentration_camps

+

wikipedia.org/wiki/Attack_on_Pearl_Harbor

German & Japanese MegaIndustrialWarMachines

vs

Afghanistan / Iraq non-Navy non-Air Force attach America soil invasion teams comprised of used toyota’s with bald tires & parted out AK47’s with alligator bags of “yellow-cake” in their glove boxes.

Geez butters, where did you get that stuff you keep $mokin’? :-)

 
Comment by In Colorado
2012-03-08 15:58:41

Party of Roosevelt, Truman & Johnson. Do you honestly believe Dems don’t love wars.

That’s the thing. It used to be the Dems that got us into wars. Then after Vietnam, that changed.

 
Comment by measton
2012-03-08 21:00:15

Really, I don’t understand the Republican hatred of Obama.

I never understood Democrat’s hatred for Bush either. No child left behind, Prescription drug plan, New Home Land security department, 2 mega wars to stimulate economy, so on and so on.

1. Read up on the prescription drug plan, this a bleed the beast plan. Medicare now pays 60% more for drugs than the VA because it can’t negotiate for lower rates, ie they pay what drug companies tell them to pay. The donut hole is designed to get people to have to pay for these high priced drugs as well. They are suckered in by the first half and then stay on the high priced drugs through the donut hole to get the sweet stuff at the end. They are already on the medications. Ask yourself why they chose this donut hole approach vs just saying we will pay for 70% of all prescription costs.

2. No child left behind was not funded.

3. You think Dems wanted the Home Land Security Dept and two Mega Wars???

 
 
 
 
 
Comment by jeff saturday
2012-03-08 06:32:32

Pink Floyd - Comfortably Numb Lyrics

Hello? Hello? Hello?

Is there anybody in there?
Just nod if you can hear me.
Is there anyone at home?
Come on now
I hear you’re feeling down.
Well I can ease your pain
Get you on your feet again.
Relax.
I’ll need some information first.
Just the basic facts.
When was it the last time that you paid?

There are no payments were receiving.
No refi cash on your horizon.
You`re all coming through in waves.
Your lips move but I can’t hear what you’re saying.
When I was a child I had a fever
My hands felt just like two balloons.
Now I’ve got that feeling once again
I can’t explain you would not understand
Because I pay my GD bills.
I have become comfortably numb.

O.K.
Just a little pinprick.
There’ll be no more, ah!
But you may feel a little sick.
Can you stand up?
I do believe it’s working, good.
That’ll pay to rent a big U-Haul
Come on it’s time to go.

There are no payments were receiving.
There`s no boat slip on your horizon.
You`re all coming through in waves.
Your lips move but I can’t hear what you’re saying.
When I was a child
I caught a fleeting glimpse
Out of the corner of my eye.
I turned to look but it was gone
I cannot put my finger on it now
The child is grown,
05 is gone.
I have become comfortably numb.

Comment by Elanor
2012-03-08 07:59:36

:D The original is one of my favorite songs of all time. David Gilmour’s guitar solos are amazing.

Comment by Carl Morris
2012-03-08 08:41:26

Waters is a great writer, but musically Pulse was the peak, IMO.

 
Comment by Prime_Is_Contained
2012-03-08 15:22:06

The original is one of my favorite songs of all time.

+1, Elanor!

 
 
 
Comment by jeff saturday
2012-03-08 07:07:47

I will just take 1 and I will not show all the refis taken out on the property, only that it is a Fannie Mae Homepath and it is still in the owners name on the County records. Somebody ain’t telling the truth, many more same sh#t.

Property Appraiser

Owner Information

Name: SMITH ALVIN
Mailing Address: 905 SW 18TH ST
BOYNTON BEACH FL 33426 5428

Exemptions
Applicant/Owner Year Detail
SMITH ALVIN 2012
———————————————————————————-
Homepath.com Alerts On : Mar 03/07/12 6:35 PM
905 SW 18TH ST
BOYNTON BEACH, FL 33426 NEW
List price:
$98,900
———————————————————————————-
Sent By:
“Homepath.com Alerts”

On : Mar 03/07/12 6:35 PM

There are new properties that match your search criteria.

PALM BEACH COUNTY LISTINGS - 450 TOTAL 450? Right :)

5801 WHISPERING PINE WAY APT A2
LAKE WORTH, FL 33463 NEW

1282 OLYMPIC CIR
WEST PALM BEACH, FL 33413 BACK ON MARKET
List price:
$149,900

14244 FLORA LN
ROYAL PALM BEACH, FL 33414 PRICE REDUCED
List price:
$199,900

905 SW 18TH ST
BOYNTON BEACH, FL 33426 NEW
List price:
$98,900

142 WEYBRIDGE CIR APT A
WEST PALM BEACH, FL 33411 NEW

1103 PINEWOOD LAKE CT
WEST PALM BEACH, FL 33415 NEW

106 SHOREVIEW DR
LAKE WORTH, FL 33463 NEW

1141 PINE TREE DR
LAKE WORTH, FL 33462 PRICE REDUCED
List price:
$97,900

12740 69TH ST N
ROYAL PALM BEACH, FL 33412 BACK ON MARKET
List price:
$244,900

640 53RD ST
WEST PALM BEACH, FL 33407 NEW

 
Comment by polly
2012-03-08 07:18:32

Thanks, Hank. This is what happens when you give money to the banks with no preconditions at all.

Fed economists: Yes, TARP may have increased moral hazard

Two Federal Reserve researchers have confirmed what many have long suspected: big banks that were bailed out by the government took on greater risk without increasing lending to businesses. In other words, after they were stabilized by an injection of government funds, the specific loans made by “too big to fail” became riskier, perhaps in an effort to recoup losses, but the total volume of loans they made did not increase, which is part of why the recovery proceeded so slowly.

More here:

http://www.washingtonpost.com/blogs/ezra-klein/post/fed-economists-yes-tarp-may-have-increased-moral-hazard/2012/03/07/gIQAey57wR_blog.html

Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 08:53:21

“Yes, TARP may have increased moral hazard”

Glad to hear they agree with me, years after I started making that point on the HBB.

 
Comment by CarrieAnn
2012-03-08 10:34:56

Never could have seen this coming, huh?

 
Comment by Neuromance
2012-03-08 11:55:11

A perverse incentive is an incentive which rewards undesired behavior.

And instead of calling it moral hazard, which has the loaded term ‘moral’ in it, and is somewhat open to interpretation they could have more specifically called it ‘creating perverse incentives’, in which undesired behavior is rewarded.

You want a behavior, you reward it. You don’t want a behavior, you punish it (or at least don’t encourage it).

The enshrinement of perverse incentives is the blowback from the rescue of the FIRE sector.

Comment by Hwy50ina49Dodge
2012-03-08 15:28:37

“You want a behavior, you reward it”

“Greed IS Good!”

Modern “Bidne$$” philosophy

Or

Human Genetic Baggage … re-utilized?

 
 
 
Comment by Liz Pendens
2012-03-08 08:17:58

And don’t forget that those TBTF banks are now twice as TBTF thanks to the government-forced shotgun marriages made at the same time as the TARP. Moral Hazard does not even beging to do the subject justice.

 
Comment by RASCalif
2012-03-08 09:05:36

As a longtime reader (although I’ve been gone a while) of this blog, I have over the past 5 years gone through many changes regarding the bubble. I am still one of the fortunate folks to have a home that is not upside-down, low debt ratio and healthy 401k/IRA. But I have become more mindful of “There but for the grace of God go I.”

It all comes down to this: can you watch the video below without resorting to usual schadenfreude, joshua tree, FHB references, and see this story about this evil Realtor(R) with a heart of compassion?

http://news.yahoo.com/remake-america–a-former-real-estate-agent-struggles-with-bills-and-the-job-market.html

If you can’t, I’m truly sorry.

Comment by In Colorado
2012-03-08 09:50:07

Do I feel sorry for people who are down on their luck? Sure I do.

That said, her skill sets and background are “obsolete”.

Selling Yellow page ads? Phone books are pretty much obsolete when you can find what you’re looking for with google.

Selling insurance? That field has become WAY overcrowded, and the swelling ranks of lucky duckies don’t buy insurance, unlike how their lunchpail parents did.

Selling houses? In Arizona? Need we even discuss that?

Unfortunately for her, this poor woman is slamming face first into the reality of the “new normal” where only the highly skilled and those in the managerial class will be able to maintain a middle class lifestyle. The new normal is not kind to the middle aged either.

Her future has Lucky Ducky written all over it, and she is far from alone. Sadly, she will burn through her savings in a vain attempt to keep up the lifestyle she is used to having, and once that is gone she will have no choice but to join the multiple part time job crowd. Her only potential saving grace is that she will probably get a better SS benefit than her fellow Lucky Duckies when she is old enough (assuming that SS hasn’t been dismantled by then) due to her previous higher income years.

Comment by Prime_Is_Contained
2012-03-08 15:43:08

Sadly, she will burn through her savings in a vain attempt to keep up the lifestyle she is used to having,

+1. People who think a massive decline in earnings is temporary never make the hard decision to reduce their lifestyle to their means.

Simply put, she burned through her savings because she has been living above her means for the past four years.

Comment by Prime_Is_Contained
2012-03-08 16:46:46

p.s. I did not mean to imply that I do not empathize with her situation of being unable to find gainful and useful employment. That is truly unfortunate. The global situation and the march of globalization are making that the reality for a great many citizens who used to be able to find something useful to do.

(Comments wont nest below this level)
 
 
 
Comment by jeff saturday
2012-03-08 09:53:09

“If you can’t, I’m truly sorry.”

I can’t and I’m truly sorry.

“A former real estate agent struggles with bills and the job market”

Before I could go any further I had to go out side and wring out my tear soaked T-shirt.

“I was raised in North Dakota on a small horse farm where I learned the value of hard work and a job well done.”

I saw this movie…. “I was born a poor black child”.

“Following my divorce, I became a successful real estate agent, selling new homes for a large builder here in Arizona and was able to provide for my children and start college funds for them.”

STOP! STOP!

“As the real estate market crashed, I was laid off in 2008 and have been struggling to find a new career path ever since. I have tried to return to both yellow page advertising and real estate with little success. I have been surviving on my retirement savings and have no health insurance.”

Couldn`t return to real estate, what nobody left to screw? I lost my health insurance too and I didn`t stick 4 or 500 people in $500k homes when they had a $40k salary.

“The greatest challenge is finding a job. As an older worker, I have struggled to get interviews and often find that I am overqualified and have a pay scale history that makes me unattractive.”

It aint your face or your pay scale history that makes you unattractive to me.

“My ultimate goal is to find a job with a company that utilizes my skills and provides an opportunity to support myself and my children..”

Considering that your skills consist of screwing people, I would suggest you make it your ultimate goal to find an opportunity in the Porn Industry. Or you can do what my wife did, go get 2 jobs in 2 weeks. She is working at a Cleaners and as a waitress.
.

Comment by RASCalif
2012-03-08 10:01:34

“Resentment is like drinking poison and then hoping it will kill your enemies.”
― Nelson Mandela

Comment by jeff saturday
2012-03-08 10:22:05

$10 Trillion, Decline In US Home Value Since 2006

Posted: May 9, 2011 at 5:08 pm

The total decline in US home values since the market peak in June 2006 is now at 29.5 percent, according to real estate company Zillow. This represents an absolute decrease of $10.06 trillion. There are a number of forces behind this massive decline. There currently is weak demand for housing, leftover in large part from the build-up in inventory during the housing bubble. Unemployment is still relatively high, hovering around 9 percent. Additionally, high foreclosure rates and underwater mortgages are further depressing home values. There are approximately 2 million homes in the foreclosure process and more than 1.5 million additional homes which are seriously delinquent.

Charles Stockdale

(Comments wont nest below this level)
 
Comment by palmetto
2012-03-08 10:29:21

PerZACKly, Mandela, you old fraud. How’s those white farmers doing in South Africa? Purged enuf of ‘em yet?

(Comments wont nest below this level)
Comment by Insurance Guy
2012-03-08 14:44:12

I think Palmetto is confused between South Africa and another african country.

 
Comment by Montana
2012-03-08 15:46:54

No, he’s not. It’s the pattern in several adjacent countries.

 
Comment by jeff saturday
2012-03-08 15:56:38

Insurance Guy

Que pasa mi amigo!

How is Lynn doing? Still hangin` in the rent free mansion in Steeplechase? Any of that fat refi cash left? Any more 60 minutes episodes on the horizon? Does she buy her insurance from you? I`ll bet she does. Don`t ya think you should be thanking everyone for being on the hook for the bailed out banks that allowed Lynn to live rent free in Steeplechase even after she took Hundreds of thousands of $ in refi money thus allowing her to pay her insurance premiums. Ah that`s OK don`t worry about it. I lost my health insurance but then again I do pay rent. To a Deadbeat just like your friend Lynn. Oh well, as long as your all doing well it`s all good, right?

 
 
Comment by jeff saturday
2012-03-08 10:30:49

“Resentment is like drinking poison and then hoping it will kill your enemies.”
― Nelson Mandela

“Moe, Larry, the cheese! Moe, Larry, the cheese!!! Curly
“Ooohh, a woman! Woo-woo-woo-woo-woo-woo!!!”

“Every time he sees a mouse he goes crazy.” “Why?” “‘Cause his father was a rat.”

-The Three Stooges

(Comments wont nest below this level)
Comment by RASCalif
2012-03-08 10:51:14

Still feels like 2007 in here. Guess I haven’t missed much.

 
Comment by jeff saturday
2012-03-08 11:09:52

“Still feels like 2007 in here. Guess I haven’t missed much.”

EXACTLY!

That`s the problem!

 
Comment by RASCalif
2012-03-08 11:36:09

You miss my point. I was referring to the level of discourse, not the macroeconomic conditions. On the latter we both agree.

 
Comment by jeff saturday
2012-03-08 11:46:17

No I got your point. But that macroeconomic is a pretty good word. :)

 
Comment by Hwy50ina49Dodge
2012-03-08 14:23:27

“Still feels like 2007 in here. Guess I haven’t missed much.”

Price$, Commision$ or dialogue$? ;-)

 
 
 
Comment by Hwy50ina49Dodge
2012-03-08 12:59:50

“Couldn`t return to real estate, what nobody left to screw?”

$ad, yet as true as anything ever posted on this blog. [ihho]

[modified]:

“Considering that your skill$ consist of screwing people, I would suggest you make it your ultimate goal to find an opportunity in the Wall $t. CEO’$ cla$$ Industry.”
[$tart on the 86th floor and up, up, up, to the rooftop heliport]

Comment by RASCalif
2012-03-08 14:57:02

I am willing to bet that if you were in the same room as her as her tears were flowing, you would offer her emotional support rather than make the above comment. :)

(Comments wont nest below this level)
Comment by Hwy50ina49Dodge
2012-03-08 15:19:04

eh, you could be right.

However, all the gleeful one’s [of the feeding frenzy Industry] in years past should be in front of the line or sittin’ right next to Hwy iffin’ that were the case.

Nothing shows support like a community-of-like-minded-people.

(Sorta like that group of divergent American’s that got together to fetch that fella stuck under the burning car)

In fact in Hwy’s America, that’s what I’ve always come to expect & count on. $illy me.

(All the good people eyes know are-chock-full-of-empathy, many are the same with forgiveness too) :-)

 
Comment by jeff saturday
2012-03-08 16:11:28

“eh, you could be right.”

Slap Slap Slap Wake up Hwy!

Didn`t you ever see Saving Private Ryan? Remember the German soldier that begged for his life and they let him go, what happened? He ended up killing 2 of them!

 
 
 
 
Comment by turkey lurkey
2012-03-08 10:06:28

They weren’t all evil and not all banks were either nor were all the FBs.

We’re not angry at them. Just the ones who screwed it up for everyone else and those who let them get away with it.

 
Comment by Real Estate Refugee
2012-03-08 10:36:37

The biggest problem this woman has IMO, is that she isn’t being honest with her family and friends.

Years ago I was working for an attorney who rented space from a larger firm. The receptionist was a lovely, warm and gracious woman in her mid to late 60s and dressed way above what you’d normally expect.

Curious, I asked about her. Her husband had died and left her penniless in their Beverly Hills mansion. She had had no clue as to their actual financial situation. After the shock wore off, she sold everything she needed to and set herself up in an apartment. Then because she was honest with her friends and family, one of them helped her find the job as a receptionist so she could support herself.

A widower friend of hers was so taken by her courage that he began courting her and they became engaged. She, however, had no plans to quit her job until after they were married.

Comment by RASCalif
2012-03-08 10:53:44

I prefer to think of this woman as a work in progress, much like the receptionist in your story before “the shock wore off.”

 
Comment by Blue Skye
2012-03-08 11:03:09

The credit expansion rewarded many beyond their capabilities. It robbed them of the experience of reality, and probably of the experience of being parented well. Now we have a growing stagnant pool of such helpless people.

Comment by In Colorado
2012-03-08 11:25:57

Agreed. I was dismayed during the bubble when I saw unskilled people making more than me hawking houses or mortgages. I knew it wouldn’t last, and it didn’t. I knew more than one engineer who quit his or her job to become a realtor, because they could make a whole lot more.

The wise realtors and brokers understood that we were in an anomaly and didn’t live large, unlike the fools who thought it would last forever

(Comments wont nest below this level)
Comment by RASCalif
2012-03-08 11:51:40

Please don’t get me wrong, in no way am I condoning the behavior of people who profited irresponsibly during the bubble years. But now they are all reaping what they sowed, and they and their families are suffering the consequences. Adversity forces shallow roots to go deeper. Hopefully they are learning and growing from their struggles (although for some it takes longer than others). It is very easy for the rest of us to look down on them and cheer their demise.

None of us are exempt from making mistakes in life, no matter how much smarter or more ethical we think we are. When that happens and we fall, I don’t think there’s a single person here who would choose an arrogant sneer over a compassionate ear.

 
Comment by Neuromance
2012-03-08 12:08:23

None of us are exempt from making mistakes in life, no matter how much smarter or more ethical we think we are.

Many of us feel like we’re being forced to pay for the mistakes, bad bets and outright malfeasance of others. That’s really where the lack-of-charitableness comes in. I have no problems with people making (what I perceive to be) idiotic and destructive agreements between themselves (e.g. lenders making NINJA loans). But when I’m forced to bail them out, that’s where my charitableness ends.

But, good on folks for trying to improve themselves. As long as they’re not, Mafia-esque, running scams in doing so.

When that happens and we fall, I don’t think there’s a single person here who would choose an arrogant sneer over a compassionate ear.

Well obviously. Not even a serial killer would want to experience “an arrogant sneer over a compassionate ear.” But then, that has nothing to do with just outcomes, which is what we also seek.

 
Comment by b-hamster
2012-03-08 12:13:37

This same thing is happening to aging professionals across all industries. I think there is littlem empathy to be had for real estate professionals. I think they could have chosen someone is a profession that hasn’t cause so many problems throughout our society, especially in Arizona, the epicenter.

 
Comment by RASCalif
2012-03-08 12:44:53

All valid points. In the end, it is each person’s individual choice to hold on to all that vitriol or let it go. Justice does not require malice for it to achieve its ends.

 
Comment by jeff saturday
2012-03-08 13:56:55

“Please don’t get me wrong, in no way am I condoning the behavior of people who profited irresponsibly during the bubble years. But now they are all reaping what they sowed”

A lot of us are reaping what they sowed and I for one am tired of getting reaped.

But you seem like a good dude or dudet with a good heart. Speaking for myself, if and when this is over it will be a lot easier to forgive and forget. I am glad you are not upside-down, don`t have much debt and you have a good retirement fund. Keep up the good work, nice job.

 
Comment by RASCalif
2012-03-08 14:43:38

Appreciate the compliment. I wish the best for you (and your hard working better half) as well.

For the record, I don’t give myself any credit (no pun intended). In fact on April 2007 I was on my way to San Diego, deposit check in hand, to purchase an investment property that in hindsight was overpriced by at least $300k. Due to divine intervention, at the last minute I changed my mind. This was 2 days before the first Dow subprime meltdown.

 
Comment by Carl Morris
2012-03-08 15:23:05

I for one am tired of getting reaped.

Don’t fear the reaper.

 
Comment by X-GSfixr
2012-03-08 15:36:27

Or his cowbell.

 
 
Comment by Hwy50ina49Dodge
2012-03-08 14:16:36

“The credit expansion rewarded many beyond their capabilities.”

“Collateral damage$” in the Mega after-blast of: The $weet $weet $ingle Deposit Tran$action Era of … “earned monie$” / “ProfEE$ional Career” talented worker$. :-/

(Comments wont nest below this level)
 
 
 
Comment by oxide
2012-03-08 13:59:57

How much cash did she rake in during the bubble?
If the kids commute from home, if ex-hubby chips in, and if the kids take out loans, she can send those kids to school for under $25K per year for both.
I understand being out of work. I was out of work myself. But for over three years, two of which were spent collecting unemployment?? She could have learned an entirely new trade in that time. Or started another business, since she knew how to do that.

If I were her, I would have stashed away enough cash to go Oil City the day after I was laid off.

Comment by RASCalif
2012-03-08 14:53:51

Some people just need to learn the hard way I suppose. I’m sure that eventually she will figure it out as thousands of others have. But I take no joy in her tears.

 
 
Comment by Muggy
2012-03-08 14:32:45

RASCalif, do you work in the FIRE sector?

A lot of bankers seem to be saying, “don’t be angry” lately.

Hmmm…

Comment by RASCalif
2012-03-08 14:50:33

Nah, I’m just a lowly IT guy who once had a lot of anger bottled up inside, and eventually discovered that there is no joy in casting living life that way.

Comment by Hwy50ina49Dodge
2012-03-08 14:59:26

Cheers for you adopted POV “orientation”!

Sincerely, Hwy50

(Comments wont nest below this level)
 
Comment by Ben Jones
2012-03-08 15:06:54

‘I’m just a lowly IT guy’

Well, thank you Mr Gandhi for the lecture on compassion! but how do you feel compassion for a news story? Isn’t that something you would have to show a real person or animal?

I don’t think you were posting here in 2007, or you would remember that I was having to delete 300 comments a day for foulmouthedness and such. Since you’re an IT guy, here’s a test; I’m gonna put you on moderation. There! Now get around that one, troll… Peace and harmony to you and yours!

(Comments wont nest below this level)
Comment by Muggy
2012-03-08 17:10:04

“JPMorgan Chase CEO says its time to move past financial blame game. We need to move on.”

http://www.tampabay.com/news/business/banking/jpmorgan-chase-ceo-says-its-time-to-move-past-financial-blame-game/1216004

Uh, yeah, um, there’s a few things we need to deal with before we “move on.”

 
Comment by Neuromance
2012-03-08 21:15:27

“Look, we’re richer, you’re poorer, nothing’s been done about it so we’re just going to do it again. And you can’t do anything about it so you might as well just accept it and move on. Hanging on to the anger and hate is just going to harm you and not us. Just go back to your American Idol and your Big Macs and don’t bother yourselves about this complicated financial stuff. You’ll be happier. Trust me.”

Well sir, there’s a few small repairs we need to make before we “move on.”

 
 
 
 
 
Comment by Avocado
2012-03-08 10:30:47

I have been looking at high div stocks and found (TEO). Is anyone one this board an investor looking for a decent return??

Comment by Real Estate Refugee
2012-03-08 10:43:09

Is that Telecom Argentina?

Comment by Avocado
2012-03-08 11:35:05

Yes.

 
 
 
Comment by measton
2012-03-08 11:21:45

SAN FRANCISCO (Reuters) - A cybersecurity bill introduced by Republican Senator John McCain could dramatically expand the domestic reach of U.S. intelligence agencies and potentially give them massive troves of emails, civil liberties advocates said.

“This is a privacy nightmare that will eventually result in the military substantially monitoring the domestic, civilian Internet,” said Michelle Richardson of the American Civil Liberties Union.

Unlike the Democratic-led alternative supported by Majority Leader Harry Reid, the McCain bill stresses voluntary information sharing instead of regulation of critical industries by the Department of Homeland Security. McCain’s bill was introduced last week.

But the types of information that could be shared are broad, and the data would go to “cybersecurity centers” that specifically include the National Security Agency’s Threat Operations Center and the U.S. Cyber Command Joint Operations Center.

McCain spokesman Brian Rogers said such concerns were both overblown and premature

This guy couldn’t sink any lower in my opinion.

Comment by butters
2012-03-08 11:34:56

MSM’s favorite republican.

 
 
Comment by CarrieAnn
2012-03-08 11:43:18

Some thoughts on the American household by Ogilvy and Mather, written prior to the release of the 2010 Census:

•No household type will be neatly describe even one-third of households◦The iconic American family (married couple with children) will account for a mere 22% of households

◦The most prevalent type of U.S. household will be married couple with no kids, followed closely by single-person households

•The rise of the multigenerational household - affecting major purchases, like automobiles, homes and college tuition.◦ With a record 70 million grandparents in America in 2010, these grandparents will be deeply involved with their grandchildren - with decisions often being made by two generations of people - the parents and the grandparents.

• Diversity will vary greatly by age - the younger population substantially more diverse than the old

• 80% of people age 65-plus will be white non-Hispanics and just 54% of children under age 18 will be white non-Hispanics.

•White non-Hispanics will account for fewer than half of births by 2015

So what happened to the “average American?”

According to Ogilivy & Mather, as a society, we fractionated into small groups, and became isolated. The Internet has enabled people with very specific interests to re-enforce those interests. As such, the American exited any concept of a mass market and is now a collection of very small markets. Most times wanting to see images that are directed to them, and products crafted for them.

Between now and 2015, the aging of the Baby Boom and the cultural mix of this nation will affect the ability of many companies and organizations to grow and prosper. We’re already seeing more advertising targeted to specific market segments. Companies such as Sam’s Club have begun to test new store concepts to further grow into these changing demographics e.g. Mas Club (Sam’s Club spelled backwards) in Houston which takes the Sam’s Club concept, re-brands it and carries more imported products from Mexico.”

Sounds like perhaps the iconic (at least in the Northeast) 4 BR/2.5 BA colonial won’t be the ubiquitous housing of choice in the next few generations although it’d still be a good choice for the multigenerational families. Might we still see single elders in colonials and Victorians like we saw buying them up in my last town, circa 2007? Perhaps less and less.

 
Comment by jeff saturday
2012-03-08 11:43:53

Now Michael Diaz is one who might make me smile if he met an untimely demise.

22 charged in public-fraud sting

By Cynthia Roldan and Cynthia Roldan
Palm Beach Post Staff Writer

In one of the biggest public assistance fraud roundups ever in Palm Beach County, authorities Wednesday filed charges against 22 people, alleging they ripped off nearly $1 million.

But only 15 of those charged by the Palm Beach County State Attorney’s Office in “Operation Leap Fraud” have been arrested. Seven, who have not been named, remained at large Wednesday evening, the agency said.

The crackdown netted suspects from across Palm Beach County Jupiter to Delray Beach, and from Pahokee to West Palm Beach on charges ranging from mortgage and insurance fraud to public assistance fraud.

Authorities said the 22 people racked up $967,647.37 in fraud.

Authorities say Michael Diaz’s case is one of the most “egregious.” Although he allegedly defrauded only $817.14, authorities said he exhausted an elderly woman’s government-issued Electronic Benefit Transfer card, leaving her without the means to buy food.

The arrest report says the woman was renting from Diaz, 38, in Lake Worth, and told him she’d be “a little late” on her rent. He asked to use her EBT card for $100 in partial payment, but spent all her benefits, the report says.

15 arrested so far

Michael Diaz, 38, of Lake Worth. Charged with threats or extortion, public assistance fraud and three counts of petty theft.

Sandra Janell Duque, 39, of Loxahatchee. Charged with grand theft, organized fraud, money laundering and eight counts of public assistance fraud.

Roy Raul Gordon, 35, of suburban Greenacres. Charged with grand theft and public assistance fraud.

Bernedette Hutchins, 50, of West Palm Beach. Charged with grand theft and public assistance fraud.

Lavett Jones, 25, of unincorporated Pahokee. Charged with public assistance fraud. She could face up to five years in prison.

Claudette Lattie, 44, of Loxahatchee. Charged with public assistance fraud.

Verna M. Leach, 38, of West Palm Beach. Charged with grand theft and public assistance fraud.

Decheryl Marshall, 34, of West Palm Beach. Charged with grand theft and public assistance fraud.

Lourdes Nichols (aka Martinez) . Charged with organized fraud, insurance fraud and obtaining mortgage by fraud.

Kenol Paul, 35, of Plantation. Charged with grand theft and public assistance fraud.

Felix A. Perez, 44, of Loxahatchee. Charged with grand theft, organized fraud and eight counts of public assistance fraud.

Jacqueline Lagay Robinson, 45, of Pahokee. Charged with grand theft, organized fraud and two counts of public assistance fraud.

Trudy Robinson, 41, of Riviera Beach. Charged with grand theft, organized fraud, obtaining mortgage by fraud and three counts of public assistance fraud.

Chiquitta Lashun Salter, 26, of suburban West Palm Beach. Charged with grand theft, organized fraud and public assistance fraud.

Trisketa Thomas, 35, of West Palm Beach. Charged with grand theft and public assistance fraud.

http://www.palmbeachpost.com/news/crime/22-charged-in-public-fraud-sting-2224726.html - -

Comment by X-GSfixr
2012-03-08 14:23:06

Jeff is our Mordecai Jones.

Not that he’s a Flim Flam Man.

But, as Curly says in the movie, our “Mordecai” shows us how how some people who are by all external appearances honest and respectable, are actually crooks and sleazeballs when you look a little closer.

Comment by Hwy50ina49Dodge
2012-03-08 14:49:11

“alleging they ripped off nearly $1 million.”

All them “extra’s” for that “epic” picture $how?

They’re howling on Wall $t.

They would also be laughing all the way to the bank too, ‘ceptin’ that tho$e fella$ ALL have “Direct Deposit” these day$. :-)

Comment by jeff saturday
2012-03-08 15:05:19

“Authorities say Michael Diaz’s case is one of the most “egregious.” Although he allegedly defrauded only $817.14, authorities said he exhausted an elderly woman’s government-issued Electronic Benefit Transfer card, leaving her without the means to buy food.”

“The arrest report says the woman was renting from Diaz, 38, in Lake Worth, and told him she’d be “a little late” on her rent. He asked to use her EBT card for $100 in partial payment, but spent all her benefits, the report says.”

(Comments wont nest below this level)
 
 
Comment by jeff saturday
2012-03-08 15:07:43

X-GSfixr

Click the link and check out these fine citizens.

 
Comment by jeff saturday
2012-03-08 16:22:15

“shows us how how some people who are by all external appearances honest and respectable,”

You obviously did not click the link and look at the 15 they have so far.

 
Comment by jeff saturday
2012-03-08 16:25:24

“shows us how how some people who are by all external appearances honest and respectable,”

Although this is a pretty good lookin` crowd today.

Recent bookings into the Palm Beach County Jail

http://www.palmbeachpost.com/blotter - 39k -

Comment by jeff saturday
2012-03-08 16:51:07

Could someone tell me if they think #43`s helmet is a tad too high?

(Comments wont nest below this level)
Comment by aNYCdj
2012-03-08 19:50:07

I’d say abut 95 of he 101 should be reprimanded to a FEMA camp and be allowed to do as much drugs as they want…..and if you are still alive in 3 months you earn the right to rehab.

Fail rehab and its 6months of all the drugs you want.

and if you are still alive…………………

 
 
 
 
 
Comment by Steve J
2012-03-08 12:56:31

Illegally raise chickens? Not in Arizona!

The Sheriff’s Office insists in court documents that the use of a tank, a bomb robot and 40 deputies was part of its normal course of duties.

http://www.azcentral.com/news/articles/2012/03/01/20120301mcso-seagal-sued-arrest.html

Comment by Hwy50ina49Dodge
2012-03-08 14:52:18

Steve J = good student, sharpen$ his pencil every morning.

Cheers! ;-)

 
 
Comment by Prime_Is_Contained
2012-03-08 13:35:28

Do bubbles work to increase wealth?

On the face of it, it seems like a ridiculous question to ask.

But I just looked at the chart for Household Net Worth as a Percent of GDP, from the Fed’s “Flow of Funds” report, and that made me wonder.

You can clearly see the effects of the twin bubbles (stock market in the late 90s/2000, and RE bubble in the 2005-2008 period.

But if you look at the current data-points, we’re STILL above the long-term trend levels for the more “normal” periods on the chart.

Is that just because GDP is depressed right now? Or because the bubble has not yet fully deflated?

Or do bubbles work in terms of driving up net worth?

The charts I’m referring to are on CR’s post from today; I’ll reply to this post with a link as soon as it shows up, to avoid link-related posting delays.

 
Comment by Little Al
2012-03-08 16:06:53

Get Kony in 2012
If only he was an underwater homeowner, we could foreclose on his donkey butt.

 
Comment by Hwy50ina49Dodge
2012-03-08 17:00:43

The Jamaican’s are coming! The Jamaican’s are coming! They have bob$led’s, …they want the GOLD!!!! [medals] :-)

Alert Cheney & $hrub!!!!!

(The only way the day good end better is iffin’ Ra$h Limpbaugh$ gets approval to per$onally buy the $t. Louis Lambs!)

Jimmy Buffett one step closer to NV casino license:
Associated Press – 22 hrs ago

“Board members questioned Buffett for about 15 minutes and asked him about two incidents in which he was accused of having drugs.

Buffett said that when the Jamaican military mistook his plane for smuggling drugs in 1996, they fired 115 shots and hit twice.

French customs officials detained him in 2006 and suspected he was carrying ecstasy, but Buffett said it was actually heart palpitation medication and he was released quickly.” [anyone know who Jimmay was datin' at that time? ;-)]

Vampires [aka: realtor$ are liar$] , mummies & the Holy Ghost …
nuthin’ scares me more than …
Vampires [aka: realtor$ are liar$] , mummies & the Holy Ghost …

Good night to all!

 
Comment by jeff saturday
2012-03-08 19:23:44

BARBRA STREISAND lyrics - People

(From Funny Girl) Whatever that was.

People–people who don`t make payments
Are the luckiest people in the world,
We’re Deadbeats, needing other Deadbeats
And yet letting our grown-up pride
Hide all the need inside,
Acting more like Dedabeats
Than Homeowners.

Deadbeats are very special people,
They’re the luckiest people
In the world.
With one person, one very special person
A feeling deep in your soul
Says you were half,
Now you’re in the hole.
No more hunger and thirst
Pay yourself first
Who needs banks.
Screw those people and the renters too
Because Deadbeats
Are the luckiest people
In the world!

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 21:25:04

Banks foreclosing on churches in record numbers
By Tim Reid
LOS ANGELES | Thu Mar 8, 2012 9:12pm EST

(Reuters) - Banks are foreclosing on America’s churches in record numbers as lenders increasingly lose patience with religious facilities that have defaulted on their mortgages, according to new data.

The surge in church foreclosures represents a new wave of distressed property seizures triggered by the 2008 financial crash, analysts say, with many banks no longer willing to grant struggling religious organizations forbearance.

Since 2010, 270 churches have been sold after defaulting on their loans, with 90 percent of those sales coming after a lender-triggered foreclosure, according to the real estate information company CoStar Group.

In 2011, 138 churches were sold by banks, an annual record, with no sign that these religious foreclosures are abating, according to CoStar. That compares to just 24 sales in 2008 and only a handful in the decade before.

The church foreclosures have hit all denominations across America, black and white, but with small to medium size houses of worship the worst. Most of these institutions have ended up being purchased by other churches.

The highest percentage have occurred in some of the states hardest hit by the home foreclosure crisis: California, Georgia, Florida and Michigan.

“Churches are among the final institutions to get foreclosed upon because banks have not wanted to look like they are being heavy handed with the churches,” said Scott Rolfs, managing director of Religious and Education finance at the investment bank Ziegler.

Related News
Obama offers mortgage relief to millions of homeowners
Tue, Mar 6 2012
Home resales at 1-1/2 year-high, supply falls
Wed, Feb 22 2012
Fed’s housing blueprint is lost in din of politics
Tue, Feb 21 2012
The U.S. foreclosure crisis, Beverly Hills-style
Thu, Feb 16 2012

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 23:13:34

I guess some things never change.

Daytona Beach Morning Journal
October 10, 1964
FHA and VA
Foreclosures at New Peak

Washington (AP) — Foreclosures of homes financed with FHA-insured mortgages are running at an all-time high. The same goes for home loans guaranteed by the Veteran’s Administration.

But the situation is not cause for alarm, say spokesmen for both the VA and the Federal Housing Administration. They call it an adjustment towards normalcy, from shortly after World War II when Realtors® eagerly looked for homes to sell up to recent years when supply more nearly met demand.

 
Comment by Cantankerous Intellectual Bomb Thrower©
2012-03-08 23:16:05

March 6, 2012, 5:30 PM

Are More New Foreclosures a Good Thing?

By Robbie Whelan

The freeze on new foreclosures is starting to crack, a report out today says.

Foreclosure starts – or when a lender files paperwork to begin the foreclosure process – jumped 28% in January compared with December, although starts were down 11.5% from the same month in 2011, according to data firm Lender Processing Services.

At the same time, foreclosure sales, or sales by banks of homes repossessed by lenders, jumped 29% in January.

Most of the increase in starts came from judicial states, where foreclosures must be approved by courts. These include Florida, New Jersey and New York. According to LPS, these states saw twice the increase in foreclosure starts than states with a non-judicial foreclosure process, which include California, Arizona and Nevada.

Of course, this data only represents one month of foreclosure activity, but the size of the jumps in starts and sales seems significant in light of recent events. Since late 2010, foreclosures have been largely stalled in many judicial states by the outbreak of the “robo-signing” scandal, which revealed that loan-servicing companies were signing mortgage documents without having looked at the necessary paperwork.

LPS data show that starts and sales dipped sharply starting around October 2010, just many major banks announced that they would suspend foreclosures in many states while they reviewed their policies. The pace of foreclosures remained slow for much of the following year. Some economists have pointed out that this might actually delay a recovery in housing, because until consumers make progress working through the foreclosure inventory, prices will not hit bottom.

Comment by sleepless_near_seattle
2012-03-09 01:54:28

So, don’t think we can prove we own the place, eh? Fine, we’ll sue your a$$ and get you out. This is gonna leave a mark.

 
 
Comment by Robin
2012-03-09 01:43:05

H-1 visas. Supposedly, employers advertise publicly for qualified US citizens before hiring foreign citizens at one-third to one-half the cost.

Just my humble opinion, but I was in the education business, dealing with 100% foreign students for 14 years. Gaming the system and screwing our own.

I refused to take part in H-1 programs, but it really made me feel my country was selling its citizens short for the sake of shareholder (or owners/bank) profits.

Never was properly monitored. Sad.

 
Name (required)
E-mail (required - never shown publicly)
URI
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Trackback responses to this post