Bits Bucket for March 9, 2012
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The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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State financial chief switches jobs to run Citizens Property Insurance
“Grady, 53, is a friend of Gov. Rick Scott and has served as a prominent fundraiser for the Republican Party.
He was elected to the Florida House of Representatives in 2008 and backed a few controversial bills during his single term. He was behind a measure to allow banks to foreclose on homes without going to court, a move that homeowner activists have decried. That bill died before becoming law.”
http://www.tampabay.com/news/business/state-financial-chief-switches-jobs-to-run-citizens-property-insurance/1218799
Floridians get fleeced every day. It’s amazing. The sheep vote for the wolf… All.Day.Long.
Here’s a piece from SmartMoney, because like the Ditech commercial said, “people are smart”
Home Insurance Goes Through The Roof
“Faced with falling home prices and climbing maintenance costs, struggling homeowners may soon face another setback: higher insurance premiums.
After rising steadily for the past few years, homeowner insurance premiums are expected to jump another 5% this year to $1004″
Have you checked building material prices at Home Despot recently? Inflation is here.
Sorry, I’m a renter and don’t shop at Home Depot. Life really sucks when I have all this money left over after “throwing money away on rent” to do fun things on the weekend like skiing, camping, mountain climbing instead of spending time doing home maintenance and repairs.
Don’t kid yourself. You rent include building insurance and repairs that are performed by hired (ins, ssi, etc.) help. However your mobility should not be discounted.
Yes but my rent is a fixed amount (and includes heat and hot water) and contrary to Amy Hoak and all the realtor liars, rent is NOT going up. Although a mortgage payment may also be a fixed amount, I am immune from having $2000 “surprises” that need immediately fixed. They just replaced the elevator in my building and my “assessment” for that was $0.
In the short haul your rent will probably stay flat. In the long haul? Who knows?
This is not NYC, DC, SF, LA et cetera. And on a more local level, the squad has elected to reside in a nondescript nabe with a glut of rental properties, eschewing the prefered nabes of the pretty young things like Highlands, Capitol Hill, LoDo, Wash Park, where rents may in fact be going up. But it aint happening here…
What about the renters who say rent is going up?
Are we liars too, mr. squad?
See above, this is not metro DC. The squad too left Ohio to move “where the jobs are” but not to the pricey coasts.
Life really sucks when I have all this money left over after “throwing money away on rent” to do fun things on the weekend like skiing, camping, mountain climbing instead of spending time doing home maintenance and repairs.
I’ll say. I’m planning to add another 100hp to my car this weekend, courtesy of $250/mo housing cost (plus utilities, maintenance, and repairs, of course).
Where the jobs are… I thought your job was coming to an end?
If O loses in November possibly yes. If re-elected expect Recovery Act II to dump a few hundred billion bernanke bux our way.
The job market in Denver is relatively healthy. Nothing like the beltway of course, then again what is like the beltway?
Depressions require government spending. The good news is Obama plans to do it at home vs Bush in the Middle East and to the 1%.
Jobs are coming back it looks like.
I’m planning to add another 100hp to my car this weekend,
How?
It’s a very understressed turbo car that uses the ECU to control boost. New firmware is all it takes. But to get any more takes hardware changes. Not ready to fool with that yet.
It’s a very understressed turbo car that uses the ECU to control boost. New firmware is all it takes. But to get any more takes hardware changes. Not ready to fool with that yet.
Years ago I repo’d a Saleen Mustang, which had an astonishing amount of torque when that turbo boost kicked-in. I was careful though, and turned it in at the office with a word of caution for the ladies processing the personal property. I learned later that the lot-guys at the auto auction in Hayward, CA had wrapped it around a telephone pole. The auction yard’s insurance paid-off in full, and the debtor was free-n-clear.
I don’t think Saleen ever made one turboed from their shop, but I’m sure there were plenty who ended up that way eventually. I’m trying to remember if they made any supercharged models later on…I didn’t pay a lot of attention after about 1996 when I started to get more interested in AWD cars.
I’m a building contractor and the 2012 price increases are less then 2011.
I’m not sure we are looking at inflation as much as the manufacturers are re-capturing their former prices now that the competition has thinned out.
Materials were costing more in 2008 then they will in 2012 after current price increases go through.
Are you seeing lots of business in new builds? Remodels?
I’m not seeing lots of anything. Here in our resort town new homes are down to about 4 this year with about a dozen out in the unincorporated counties. These are 2 of the largest counties in California, about a 300 mile distance from north to south.
The biggest project this year is 7 ( part of 35 total ) Tribal houses.
The ratio of new vs remodel has changed a little but over all every sector is down.
Thank you for the info, Charlie. I’m not sure how the price of building materials can go up if the demand for new build and materials is still down.
Your point about weeding out the competition is valid, but wouldn’t that apply more to labor than raw material? After all I imgagine that all the contractors shop at Home Despot and 84 too, especially the remodelers.
This weekend is Home and Garden Show weekend in downtown DC. I’m going to go and gauge the crowds, y’all. And oooh Ty Pennington is going to show up. Big f-ing whoop. I’d rather hire a real man.
Thank you for the info, Charlie. I’m not sure how the price of building materials can go up if the demand for new build and materials is still down.
It helps when the prices are fixed. I have received 2 big checks in the last 30 years from class action law suits for price fixing. Litigation costs get factored in and prices are fixed and manufacturers don’t compete on price in a chaotic fashion ( in many cases, your mileage may vary, yada yada )
One mfg that I buy from was loosing $100M/year a couple of years ago, since then his entire industry moved prices up 20% last year and 15% this year. The amount that they are willing to loose per year diminishes over time, so prices are climbing on very low demand.
On a retail level my guess is that the demand is so low that the retailer needs a bigger markup. Locally we see lumber yard prices going up and again on very low demand.
Personally I just realized a meaningful price increase due to a key competitor going BK. This competitor removed all opportunity from my market place for a period of time and now I get to “normalize” pricing even on very low demand.
Charlie, I’m not surprised to hear that part of it is that supply and demand are more in balance than they were a couple of years ago. Once the weak hands have folded, the remaining players can bid prices up.
I don’t seem to be able to make the connection of how one government bureaucrat changing jobs to another government job has anything to do with people getting fleeced or voting.
This kind of thing goes on interminably in government, in both parties, as part of the entrenched bureaucracy.
If you haven’t noticed, once someone gets into government, they have a safe refuge forever (with the exception of some lower level staffers). They get transferred around from agency to agency and add on years of service to their pension plans.
If you or I try to apply for a “government job”, and I have many times, you will discover they you and I are not qualified.
Why?
Because in every job description, there is usually a part that says you need 5 to 10 years in a “public service” environment as part of the qualifications. This is how we develop the Insiders vs. the Outsiders.
Also, since you are I don’t have a government job, we can’t understand the complexities of what they do, nor how important each operation is to the health, safety and well-being of the greater society.
This story is not about anything but business as usual. That is the world we live in, and NOBODY in government wants it to be any different…..And they will make “RULES” to assure it stays this way.
So much for “government in the sunshine”.
Appears he’s leaving government, at least for now, to run Citizens Property Insurance which is a corporation.
Citizen’s is the “government sponsored” insurance company that was established when PRIVATE companies would not provide insurance to Florida Residents due to a variety of reasons.
Mostly is was to massive claims in 2004, when 4 major hurricanes past over the State and put the re-insurers in a state of panic.
So, no, he’s not leaving government. He’s going into the “privatized part”.
It’s like Fannie or Freddie. Are they governmental agencies or corporations? Is your local city or town a governmental agency, or a corporation. I believe you will find it has a charter, just like a corporation. The town is Incorporated.
So, call it what you will. This guy is NOT leaving governmental “service”, just changing brands, and I would assume skimming off a much larger salary.
Let me fix that for you, Diogenes.
“Citizen’s is the “government sponsored” insurance company that was established when PRIVATE companies would not provide insurance to Florida Residents” - at a price which homeowners were willing to pay.
Once again, the Government, i.e. you and I are bailing out those who choose to live on the beach, those who want ocean front property along with a $3500 a year property insurance bill instead of the $7500+ actuarially sound premium.
One day the property insurance business in Florida will blow up. Thus, as Scott promised, he should freeze Citizen’s insurance immediately, and start a 5 year roll off to entice private insurers back into the market.
Warren Buffet owns the largest re-insurer, General Re.
I stand corrected. The part about Citizens being a not-for-profit throws a red flag for me.
Citizens is a not-for-profit, tax-exempt government corporation whose public purpose is to provide insurance protection to Florida property owners throughout the state.
Thought about it some more. This is a monstrosity if there ever was one.
I got the first government job I applied for. Had never worked in government at any level before. One qualification wanted to know if you had done something similar to respondnig to a FOIA request. I had, while in private practice, helped with the response to a request for information about interactions with another entity from the post office, so I said yes. No other question in the application would have benefited from having previous government service. Of the two people who were hired with me, neither had significant government service, though I think one had done a few months in a clerkship for a judge.
Also, you are mixing up civil service and political appointments. Totally different systems.
Had never worked in government at any level before.
Prior military service?
Just happen to be awake…..so I thought I’d act sophomoric and be the first post on Friday. TGIF & TGFTR…..Thank God for the Recovery”
A chorus of Lucky Duckies sing “you’re welcome”
Oh wow, that was more misguided optomism while using my droid. I “thought” I was first……turns out I was 30 minutes behind Muggy. It’s just like I think I am going to win all 7 ongoing Words with Friends games and then someone places an X on the TL square and ties into a TW line! Augh, 60 point swing.
Smart phones can be fun, but like any drug, they can also be abused!
Muggy 2012-03-09 04:22:03
Jinglemale 2012-03-09 04:53:07
Diff = 31 minutes and 04 seconds!
I see the investment sector “Real Estate Holding and Development” has moved up +23.56% in the past three months and the sector was up 3.01% yesterday. This meshes well with reports posted here about Big Money moving in and buying up lots of distressed properties - entire city blocks in some cases.
Big Money in this case is OPM (Other People’s Money). The world is in search of a return and those with the bucks are putting their money down with hopes (and illusions) of getting a good return in RE.
IMHO this will work until it doesn’t. But in the meantime, don’t fight the tape.
The World is contained, for the moment.
Longtime lurker but not a big poster. I realize no one likes to give out financial advice, but I’m at wits end with the 1% interest rate returns on my IRA CD and Cash. Any suggestions where you can park your money fiarly safely these days and get a somewhat decent return. I appreciate any and all advice. Thank-you.
My very-much-in-the-minority view is to stay in cash. That’s because there exists a shortage of the stuff. Look around a bit and you will see everywhere evidence that this is a true statement.
Notice the number of payday stores, TV and radio ads offering high interest loans, ads to buy up gold. This is part of the evidence that I am referring to.
Couple this with the shortage of good paying jobs (a job = a continuing flow of cash) and your conclusion should be that there is a shortage of ready cash throughout the land.
There is a viewpoint that I believe has some merit that the secular expansion of credit that began in 1939 came to an end about five-six years ago.
This credit expansion produced an over-weighted financial sector and it also produced expectations of high returns on invested capital. An over-weighted financal sector and high returns are two things that go together, in that one produces the other and vice-versa.
If this is true then the expectations of high returns on capital is yesterday’s news. Woe to money managers that cannot get high enough returns to pay the hefty fees that they charge.
Combo, until recently I would have agreed. But a recent visit to Home Despot, plus my weekly grocery shopping trips and of course the visits to the gas station convince me that inflation (induced by massive funny money printing) is now here and is going to get worse. Cash is NOT an inflation hedge.
It really is interesting how the price of food, gas and home depot stuff keep going up as “consumers” have less and less money to spend, housing is in steady decline and the employment rate keeps going down. It’s not possible that J6P is bidding up the price of gas, he is driving less.
How would you propose to bet on inflation? My bet is on deflation spiked with investation, a concentration of increasingly scarce capital in the money centers. In that case, it’s a waiting game.
I don’t agree that this is inflation, not traditionally. There is no wage inflation to match, no increase in interest rates to offset. What this is, is the 1% and their lapdog speculators putting their money into “needs” industries because that’s where the demand is, and always will be. Retailers raise the price to what the market will bear, and people pay the higher prices because they give up something less necessary. Hence the increase in gas prices and the decrease in iPhone prices.
These inflationary prices will never go down. Instead, the money will have to inflate to catch up.
It really is interesting how the price of food, gas and home depot stuff keep going up as “consumers” have less and less money to spend,
Chindians can buy that stuff, too. Look for deflation in things they can’t (or don’t want to) buy- like most of our housing- and inflation in stuff they can (and want to) buy- food, gas, home depot stuff.
No wage inflation because the supply of workers still exceeds the demand. No increase in interest rates because the big dog (the Fed) is explicitly holding rates down.
At this time the interest on the debt consumes 6% of the federal budget. Imagine what happens when (not if) interest rates start going up.
Greece is the word.
I’m with you Combo, I just keep putting away more and more to offset the miserable returns. I don’t have any other strategy. It’s like a stagnant pool, a war on savers as many of you say.
Congratulations to you Helmut if you are not in debt! When real inflation was running at 10% for year after year and you got 6% on a CD, did you feel like it was a good return? JMO, but if your money leaves your direct control so that you can earn a little return, it is not “safe” just now. Good luck finding something that will give you a risk free profit based on someone else’s promises and efforts.
Thanks for the advice Skye. I’ll remain in my “holding pattern” as I have for the past 5 years. I never had any children so my financial situation is quite stable in comparison to many of my cohorts I have had discussions with.
I agree. Stay in cash. Debts and derivatives greatly dwarf the available cash supply. IMO, cash will again be king soon or TPTB will lose everything too because of the ensuing inflation. One of these days China, Russia, Germany, Japan will get tired of butt kissing the USA economically and start to call the shots simply because they have the Money.
In 2013 the Fed Reserves 100 yr lease will be over. Will our pols have the stones to kick their aces out of the USA or will the pols be kissing the Fed Reserves private owner’s butts for another 100 yrs?
My bet is on the latter.
One of these days China, Russia, Germany, Japan will get tired of butt kissing the USA
Ah, the beauty of co-dependence. We are the consumer of last resort, TBTF. If we go down, who will buy their crap? They all run protectionist rackets, so they won’t be buying from each other.
One might be tempted to think that emerging markets will step forward, but they too are depenedent on our massive trade deficits. Should those end, they will have less money to spend and hence will buy fewer VW’s, KIAs or Toyotas.
1-year Greek bonds are paying 1000%.
Interesting term “are paying”.
Indeed. I think it is that they are selling for a p on the pound. I rather doubt that anyone will be actually lending Greece money for quite some time, rather only pretending they are making their payments.
They called the credit default swap trigger. I wonder who was left on the “insurance company” side.
Any suggestions where you can park your money fiarly safely these days and get a somewhat decent return.
Ha, a modern version of the Riddle of the Sphinx–wrong move and you’re wiped out. This is a waiting game, i.e., waiting for the over-leveraged to fold. Low rates are meant to drive the guppies back into the shark infested waters. Resist.
Thank-you!
It’s been a while since I bought any I bonds, but someone who posts here has reported they are paying interest rates in the neighborhood of 3% recently.
My brother notes that during deflation the game is to lose less than everyone else.
My brother notes that during deflation the game is to lose less than everyone else.
+1 Good point.
I am doing a lot of research on this very topic. I too sold my house near the top and have cash getting less than 1%.
I am looking at a basket of high dividend stocks (all over 8%) and start buying on the next dip. Half are outside of the usa and all co’s have lots of cash. One usa stock is AT&T with a nice dividend.
I have been waiting for a dip since dow was 10500.
I’ve waited for the double dip since 14000. Got the first one, but not the second.
‘reports about Big Money moving in and buying up lots of distressed properties’
What’s the implication? Buy now or be priced out forever. IMO this is a cover for the shadow inventory issue.
I went over this recently, but to touch on a couple things; you are talking about Freddie/Fannie/HUD. They’ve got the bulk of the inventory. HUD has a strict policy on allowing primary owners first shot, and I haven’t heard of them selling in bulk after that. Let’s look at the GSEs:
‘Fannie Mae plans to sell nearly 2,500 foreclosed properties to investors in the first phase of an initiative to aid the U.S. housing market through bulk sales of distressed homes. Investors will be able to submit bids on the entire portfolio of properties, but also will be able to submit offers on all the properties in any given market. The FHFA didn’t specify a timeline for the auction process, but the pilot sales could take place over the course of several months, said people familiar with the matter.’
‘The initial round of sales is unlikely to have much of an impact on these housing markets because the properties are already rented. They represent a tiny sliver of the more than 140,000 foreclosed properties that Fannie currently owns.’
‘The number of foreclosure notices issued in the Tucson area spiked in February after ebbing for the last several months. In Pima County, 918 borrowers received notice their mortgage loans were in default and their property had been scheduled for auction. That’s a 20 percent increase over February 2011, and a 30 percent increase compared with January, data from the county recorder’s office show.’
‘Foreclosure filings in the county and across the state are actually down significantly — in Mercer County, foreclosure filings dropped by almost 74 percent from 2010 to 2011, from 2,489 in 2010 to 651 in 2011, according to the state judiciary. But that doesn’t tell the whole story. New foreclosure filings in New Jersey were almost completely halted in 2011 amid litigation and investigations into lender paperwork and so-called ‘robo-signing.’
‘With a decision rendered in one of the lawsuits last week, it’s likely thousands of foreclosure filings pent up in the pipeline will be released.’
One county in AZ will add more inventory than the ‘pilot program’ totals in a couple of months. The judicial foreclosure states have a mountain of houses in default.
I really don’t think there are enough investors in the world to buy up all of the excessive housing stock. Especially now that builders are building again, and undercutting their 2006 customers.
When the builders are able to undercut their 1995 customers, maybe it will be time to buy.
I still think that in some places you will be seeing “free houses”. Which will still be overpriced, depending on location, property taxes, cost of rehab (for the house, and the owner).
How can builders undercut their 1995 customers if the cost of materials has gone up?
Because the cost of the lot has collapsed. In the end the main reason a house costs more in Orange County, CA vs, Orange County FL is the cost of the lot.
What he said. Unlike houses, the government doesn’t seem to be offering any price support for vacant lots.
Yet.
Anyone know the cost per sq ft for building a new vinyl crapshack? Not counting lot, foundation, etc?
Lots have decreased but permits have skyrocketed in CA.
After years of part-time work, I’m just trying to keep what I now make from my full time job in my wallet.
my wife said yesterday…”well you know…they say its a sellers market in vienna va”.
i said “who is they?’
she said “the belt team realtors”.
i knew there was something i needed to tell her….something i have read here on several occassions but i just couldn’t recall…it was literally on the tip of my tongue.
maybe RAL can help jog my memory?
“Buy now or be priced out forever”
“They’re not making any more land”
“1000 people are moving to ___ every day”
“Suzanne researched it!”
Interest rates will never be lower!
You can have instant equity!
“Buy now or be priced out forever” is my favorite line that the Realtors(tm) used when I was shopping in 2002 and 2003. I didn’t buy, so now I use the same line on them.
“Well, you told me in 2003 if I didn’t buy I would be priced out FOREVER, so I’ve quit looking. I din’t buy, so there’s no point in looking.” “I am obviously priced out……Forever.”
“It’s been nice talking to you, but there’s no way I am every going to be able to afford to buy a house. Have a nice day.
Oh, and thank your wonderful organization for enlightening me back in 2002, so I wouldn’t need to waste my time house shopping any more.”
“Good luck finding another “qualified” buyer.”
“the belt team realtors”?
Is that like tag team WWF? (Ron “Pit Bull” Realtor and Susan “Researched It” Agent?)
I suddenly had a vision of a Realtor clobbering an FB with a folding chair.
From the BeltTeam website
THE BELT TEAM CORE VALUES
The Belt Team practices and lives by The Golden Rule, “Do unto others as you would have others do unto you”. We believe The Golden Rule is a good place to start. We have found it to be the basis of a practical code of conduct. Our Core Values are derived from The Golden Rule. They state specifically how we treat each Core Value in our dealings with our customers and clients.
Our Core Values
Honesty
We demonstrate by actions our truthfulness and probity combined with overall moral excellence
Trust
Through close relationships, we help each client develop and experience total confidence in our integrity, abilities and good character.
Loyalty
We help each client experience and know that we are firmly and devotedly supportive of them.
Expertise
Based on experience, we show a high degree of skill in and knowledge of real estate culminating in expert advice to our clients and successful contract negotiations for them.
Service
We endeavor to meet and exceed our clients’ needs and expectations always adhering to The Golden Rule.
Any organization that touts their integrity, honest, trust, etc. I am usually a bit leery of.
We endeavor to meet and exceed our clients’ needs and expectations always adhering to The Golden Rule.
Wait, isn’t that “He who has the gold, rules”?
I think he is looking for something or other about realtors not being all that honest.
Banks foreclosing on churches in record numbers
LOS ANGELES (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.
http://www.chicagotribune.com/health/sns-rt-us-usa-housing-churchesbre828031-20120308,0,1005948.story
For some reason, I find this comforting.
Maybe it’s that “ego meeting reality” thing.
Heh, the money lenders now OWN the temples.
Can Angry Jesus be far off?
Jesus is spinning in His grave. Oh, that’s right, He’s not in a grave. Well, He’s spinning somewhere. (That sounds an awful lot like dancing).
Some denominations do “self financing” to avoid this pitfall.
What do you do with a foreclosed mega-church?
We have one here. Complete with Coffee Shop, book store, daycare center, state of the art sound, Stadium seating…….
One of those “God loves you, so that’s why you are successful” places. Never mind the fact that this is south Johnson County, Kansas, the Motherland for the “Born on third base, and think they hit a home run” crowd.
http://tinyurl.com/7p277w2
There is a half built and now abandoned construction church building for some middle eastern type religion in my neighborhood. It takes a leap of faith to start building a church before securing all the funding…
I paid $5.05 this morning.
Its time to break out the motorcycle ( 45 mpg ) and the sport plane ( 30 mpg but with all the mountains around here it ends up with the same fuel cost as the motorcycle )
New York Federal Reserve William Dudley says there is no inflation because i-pads are cheaper now.
I paid 3$.23 last night.
Prices are on the rise. It was $3 just a few weeks ago.
The forces of deflation at work apparently.
Oil is cheaper in the central US.
That’s not relevant because food and energy costs are volatile and excluded from calculation of “core” inflation.
I’m going to throw a few, low inflation, I-pads on the grill this weekend.
Soak them in marinade for a few hours, and they can be pretty tasty. Once you remove the hi-tech glass shards, and put out the fire from the molten plastic.
$3.63 here in Lexington, Ky, about 10 cents below the national avg. No Flyover deals on gas here.
$3.50 here, but I just had some serious engine work done and my gas mileage went up by about 4mph. (25 city 28 hwy)
Conservation is for sissies. Are you wearing a sissy Jimmy Carter sweater too? American exceptionalism means you should burn *more* gasoline, not less. Unless you’re some kinda euro-weenie nanny state socialist and you just hate our freedoms!
I read 19% of our energy goes for lighting. The gov should help with tax breaks for LED manufactures and get that 19% down to 8%.
There’s an interesting feature about LED lights. They’re quite heavy. I mean like a few ounces for a CFL or regular bulb and like a pound for an LED. I was thinking about getting an LED but then wondered, what’s this going to do the light socket? Was it designed for this kind of load?
I’ll probably just try it and see, but the difference in the weight of the two bulbs is very surprising. I certainly hope it’s no big deal because the LED concept is fantastic, but FYI.
I just put some new tires on my daily driver:
http://www.youtube.com/watch?v=w-SqOZbdajA
A grueling four-minute commute to work.
$4.33 here and supposed to be 82 degrees today in CA. Using the moto more is a good idea! The bummer is, you always have to “get dressed” to ride it.
Realtors are people, too.& #0153;
Doh, I failed my HTML 101! Time to go home already?™
I don’t believe that is a true statement. I am not sure what they are, but I don’t think they are really people.
Realtors are people, too
So is Soylent Green…
With the improving jobs picture, will the government finally try to move any (serious) reforms financial sector reforms forward?
The government pays lip service to the concept that there’s the “real economy” (the one that actually delivers goods and services), versus the financial sector which is supposed to merely assist the real economy.
However, based on their actions (and words), they actually believe that it’s the financial sector that’s the real economy and the rest of the economy is secondary and supportive.
The government’s emphasis on lending and debt as important indicators to promote the economy’s health is wrong-headed and destructive.
Debt is borrowing from the future. Sometimes you get more value from it than you paid for, but in many cases that’s not true. Especially when private individuals use it to finance their lifestyle.
Ultimately though, debt is a decision between lenders and borrowers. Which gets me back to the first paragraph. I’m tired of innocent bystanders being held accountable for the messes the deadbeats and lenders make. Financial “collateral damage”.
Is the government finally going to put the FIRE sector on a leash? Or will the government allow the society to remain on the FIRE sector’s leash?
“….innocent bystanders being held accountable……”
Silly, silly Neuromance. How naive. You’ll see candy-crapping unicorns before you see something like “accountability” around here.
Accountability is for the wretched refuse. We don’t want our “creative elites” to have their minds cluttered up with worrying about things like “accountability”, “fairness”, and “justice”. They might start worrying about going to jail, or to the poorhouse, instead of coming up with even more creative ways to keep all of those zeros in the balance of their bank accounts.
“If God had not wanted them sheared, he would not have made them sheep”.
No kidding. I think of that mentally disabled bagger who’d worked at the same grocery store for a quarter century being fired over twenty cents. Then I think of Lloyd Blankfein who engineered the Greece hustle being rewarded with the CEO-ship.
As bad as gasoline prices get, it is the price of diesel fuel that should concern us.
We automobile drivers can temper our use of gasoline to suit our budget – telecommute, mass transit, stay at home and watch TV, etc.
We cannot avoid the effects of high diesel prices. Nothing comes to market without its expenditure. Farm tractors run on diesel, combines run on diesel, locomotives run on diesel, over-the-road trucks run on diesel – the gasoline that you’re trying to avoid paying more for is carried to the gas station by consumption of diesel.
And that will wreak havoc on our economy far more than a gallon of gasoline at $5.00 per gallon.
This has been Obama’s plan from the start. It is his goal to drive this economy into the dust. Any fair review of his statements prior to his 2008 election show him to be every bit the devote of Alinsky, Cloward and Piven that he is showing himself to be today.
Given his success versus the goals that he laid out for himself prior to his election, he is succeeding beyond his wildest dreams.
We had best be rid of this man – he is killing this Republic
I just scanned all the Drudge Report headlines and didn’t see a Saul Alinsky talking point on there. Was there a Breitbart story that I missed somehow?
Ever read Pravda’s articles about Obama?
They stated a few years back that Obama is doing a much more effective job at creating a centralized, nanny-state government than any Russian ever did.
Really? So where are the free universities and health care? Where are the guaranteed jobs for everyone?
Darn those facts.
What possible good would it do him, or anybody else, to
“drive this economy into the dust?”
Really, these “life as we know it will come to an end, if our opponents win” screeds are getting tiresome. Stuff I heard from my daughters when they were 14 years old.
I was under the impression that it was the Republicans’ sabre rattling with Iran that was creating this mess.
No it’s the Hedge Funds and Big Oil companies who went long and have to manufacture fear. Consumption is going down. My guess is this is occuring at a fairly dramatic level in the US and Europe.
“And that will wreak havoc on our economy far more than a gallon of gasoline at $5.00 per gallon.”
$5 gas (and a corresponding rise in desel fuel) has a strong potentail to drive the economy back into recession. I don’t see why Obama would favor this in an election year. I can see why the Republicans would favor it.
“This has been Obama’s plan from the start. It is his goal to drive this economy into the dust.”
And why would he want to do that? His stimulus and payroll tax cut argue against it.
“devote of Alinsky, Cloward and Piven that he is showing himself to be today.”
Who?
Diesel? You must be joking. It is the price of peanut butter that holds the fate of the Republic in balance.
you are crazy~
its just facts ! has the policies of this administration made this a better country. I hate both parties equally. I voted for Obama, I believed in hope and change, and now all we have is change left. Traditionally Americans have asked one question before voting for president are we better off now than we were 4 years ago.
Yes, we are. 4 years ago (as of this coming September), the economy was heading off a cliff.
Lookout for the bigger cliff in 2013.
And it is entirely possible that the next cliff will come sooner than 2013. China’s slowing economy, trouble in the Euro-zone, or an Iranian crisis could all trigger a cliff event.
Embrace the cliff!
With three months of 200,000-plus job increases, one question comes to mind - “What is driving this?”
Or less charitably - “What new bubble is this?”
We need to invite the Iranians and Republicans to Camp David. Just like we did the Egyptians and Israelis.
Invite Jimmy Carter to moderate the negotiations. Then, have him bore the crap out of everyone. Hid the keys to the armored Suburbans, so no one can leave. Nothing much to do at Camp David. No strip clubs, no Five Star restaurants. I hear Pizza Hut delivers. So does Jimmy John’s.
Give it a week or two, and the Iranians and Repubs will be so bored, they will sign anything to GTFOOD. So have them sign a doc/contract that tones down the saber rattling, and mandates monthly meetings at Camp David until a “normalization” agreement is reached.
They will have to keep meeting, because we all know how the Repubs feel about the sanctity of contracts.
Contracts. You mean like mortgage contracts? Like first lien bondholders of GM contracts?
That was all the freeloaders and Socialists. Time for the Republicans to step up and show all of us losers that enforcing contracts are Priority #1. By starting at the top, and working their way down. wouldn’t want them to be accused of having one set of rules for their money-men, and another set of rules for the wretched refuse.
Per CNBC, Greece default is official and Insurance Payouts triggered.
Can’t say it was unexpected. Not sure what the ramifications are….
Initial reaction from the financial press is that it is “priced in”.
…and Insurance Payouts triggered.
Sounds like the credit default swaps being exercised.
Just as a refresher, I thought I’d list every “War”, “Police Action”, and “Intervention” that has involved US troops/military units since 1945:
1946-49 - Chinese Civil War
1948-49 - Berlin Airlift
1950-53 - Korean War
1961-62 - Bay of Pigs/Cuban Missile Crisis
1961-75 - Vietnam/Cambodia/SE Asia
1965 - Dominican Republic
1967 - Six Day War (attack on US signals intelligence ship)
1973 - Yom Kippur War (airlift)
1979-80 - Iranian Hostage Crisis
1982-84 - Lebanon
1983 - Grenada
1989 - Panama
1990-91 - Kuwait
1992-94 - Somalia
1994 - Haiti
1994-95 - Bosnia
1999 - Kosovo
2001-12 - Afghanistan
2003-11 - Iraq
This doesn’t include the odd CIA intervention here and there.
Please note that the only time during this period that we managed to stay out of any intervention (and got out of the one we were in) was also the only time in the 20th Century that our President was a former US Army general.
I didn’t know Reagan was a general?
I joined the army during that 84-88 lull…
Eisenhower got us out of Korea, and managed to keep us out of anything else for the next 7 years.
Reagan got us into Lebanon in (bombing and troops) 1982-84. And there was always El Salvador/Iran-Contra
Eisenhower was the last real Republican. Neo-cons bite.
Good thing the US is such a peace-loving nation.
I wonder what our covert entities are doing these days to encourage Sunnis to kill Shi’as and vice versa. Little flare-ups are occurring in more and more of the Muslim world, and even Egypt seems to be in almost as much turmoil now as when they were actively trying to topple Mubarak. Then there’s Libya, Iraq (still), Syria, Pakistan, and of course Afghanistan.
Notice, however, how the oil kingdoms remain outwardly quiet. Verrrrrry interesting.
Read an article online about how returning soldiers are disgusted about all of the petty things us civilians worry about, and that we don’t appreciate their “sacrifice”.
Nice to see that the bandwidth used to send Rush Limbaugh’s show to the Armed Forces Network hasn’t been wasted.
Dude, you volunteered to become a bomb magnet. In fact, you and your volunteer buddies (some who have been in Iraq/Afghanistan for 6-7-8 tours……with monetary incentives that you and your contractor buddies didn’t patriotically turn down, BTW) are making our political/robber baron class rich.
As wars go, Afghanistan is pretty safe. Probably, statistically safer than most big US inner cities on Saturday night.
And forget the “Fighting them over there, so we don’t have to fight them over here” meme. You’ve been fighting them “over there” for 10 years. And it isn’t like the Taliban have any help from a widespread Anti-War movement in the US. Any closer to winning? To win, you are going to need about 10 times the number of guys you have “in-country”. And probably have boots on the ground in Pakistan. What do you think Iran is going to think about a million US troops in Afghanistan? Or the Chinese?
To get 10 times the number of guys, you are going to have to restart the Draft. How well do you think that will go over? No way in hell is a Godless-Socialist-Muslim like Obama going to up the ante like that, so it’s going to have to be a Republican. In fact, maybe the Republicans should announce their intention to reinstate the Draft prior to the election, if they feel that all of these military interventions are necessary; don’t want it to be a surprise to anyone. And what are Iran and China going to think about that?
If they are really brave, they need to announce loud and clear that there won’t be any college-exemptions this time around. Especially for the 1%er’s/Bankster’s/Politician’s kids. They should be volunteering in droves as it is, since they are the primary financial benificiaries of US military intervention, and they wouldn’t want to be accused of being freeloaders and parasites.
Well it’s obvious that the US is in a period of military overstrtch. Big time. Iran will be no walk in the park. To think that the campaign in Iran would drive gas (and other) prices through the roof could further stir civil unrest in the US causing the rest of the 99%ers get off their fat lazy asses, turn off the game (and CNN/FOX) and tune into what’s really going on. The Occupy mvements will look like a big picnic (today’s ABC listed thousands of militias in the US) when the Lucky Duckies take to the street and there’s no “National” Guard to keep stability since they’re somewhere else on the globe protecting corporate interests.
This is going to be an exciting decade.
No way in hell is a Godless-Socialist-Muslim like Obama…
Godless Muslim?
Little Feat & Lowell George
Feats Don’t Fail Me Now
Your daddy says I’m no good
Your momma says keep away
Got to tell you truthful girl you can never make me stay
I got something up and down this coast
Bet you my last dollar girl I can love your love the most
Don’t the sunrise look so pretty
Never such a sight
Like a rollin’ into New York City
With the skyline in the morning light
Roll right through the night
Roll
Roll right through the night
I said Roll
Semi-smokin mama, you got to give me some
Heard you got the biggest — hmm — the biggest truck in town
Right on through to Baltimore you got to love me now
Got to do me gently, Deadbeats don’t fail me now
Don’t fail me, beats don’t fail me now
Don’t the sunrise look so pretty
Never such a sight
Like a rollin’ into New York City
With the skyline in the morning light
Roll right through the night
I said roll
Roll right through the night
Roll right through the night
Dixie Chicks - Wikipedia, the free encyclopedia
The four took their band name from the song “Dixie Chicken” by Lowell George
and all the boys there at the bar began to sing along
Little Feat,Bonnie Raitt- Dixie Chicken
http://www.youtube.com/watch?v=3z-GwdaKrn8 - 135k -
“Comment by goon squad
2012-03-09 10:17:38
If O loses in November possibly yes. If re-elected expect Recovery Act II to dump a few hundred billion bernanke bux our way.”
I’m in this boat, but I have a local teaching spot to fall back on. If Obama is re-elected I will move up in my current outfit.
Hey, I guess that makes me a goon.
LMFAO. Great way to end the week:
http://www.youtube.com/watch?v=js3BYcHmBhE&