Bits Bucket for April 9, 2012
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Gotta be quick before the kids wake… got the details on my wife’s cousin’s new place. Old place was in wife’s name, new place in husband’s name,$0 down, closing costs were, get this, $315. Monthly payment went from $1,900 to $1,150. USDA loan.
“USDA loan.”
Any evidence they plan to do any farming on the new homestead, other than for federal loan dollars?
I know a guy who bought a (new) house back when there was the $8k first time homebuyer tax credit and he got an FDA loan.?
Yeah,… he is underwater now.
FDA? The Food and Drug Administration?
He’s gotta mean USDA…
certified prime?
ISTR reading that quite a few of those 2010 first-time homebuyer tax credit places are already underwater. And, what’s worse, each of those credits cost the government something like $40k.
Ouch.
$8K costing $40K? That’s ok. The Feds will cover that will all hte money they say when they run health care.
Haha! USDA I meant. Either that or the DEA or ATF or some damn thing. It made no real sense either way at the time…
And now he’s an FB, so its all good.
What happened to the old place? Are they still paying on it?
Short sale, paid around $200k sold for $68k…
Old place was in wife’s name, new place in husband’s name
I guess if all the FBs are bailing on their old houses and buying new ones then attitudes haven’t changed much at all.
Attitudes haven’t changed at all. We’re just seeing the end of the Denial phase. About the only people who aren’t infected with the flipping bug are very new buyers (i.e. money-renters), who actually want a house to (get this!) LIVE IN. I’m theorizing they are too new to the REIC and as children didn’t get caught up in the powerful emotions of MAKE MONEY FAST.
Attitudes haven’t changed at all. We’re just seeing the end of the Denial phase.
Bubble mentality is alive and well in the Bay Area, although one thing is different: people are not talking about real estate all the time. But when it does come up in conversation, everyone chimes in, all zombie-like, “it’s a great time to buy”.
Or maybe they just refrain from talking about it around me, because they know I will say “I told you so” and remind them that they said “real estate always goes up” and “it’s different here”.
The multiple bidding you may have heard about is a result of no one selling right now unless they have to. And/or realtors underpricing in order to get multiple bids.
There’s nothing for sale. The only houses on the market (at least in the mid-lower range) are foreclosures, short sales, and people who are getting divorced, moving, or dying.
or dying.
I meant already dead, and family selling the house.
“attitudes haven’t changed much at all”
No, in fact the dude was telling me how in five years they’re going to sll and put the equity toward something bigger in a nicer part of Tampa.
I didn’t ask him, “what happens if it’s only worth $100k?”
They’re nice and all, but I hope they can’t walk from this house like they did the last one. It’s BS.
They’re nice and all, but I hope they can’t walk from this house like they did the last one. It’s BS.
Sure they can… And by that time, his wife’s credit might be repaired enough that she can buy the next one…
Until this zero down shit is gone for good, nothing will change.
Reality check on our talking point disseminators. It’s those freeloading elderly poor retirees who make up most of those who ‘don’t pay taxes’. See the chart in the article…
Nontaxpayers Are Overwhelmingly Elderly
By Matthew Yglesias
Slate
A somewhat strange myth has taken hold in some precincts of American conservative opinion that some vast swathe of the population isn’t paying taxes. In fact everyone pays sales taxes and other state and local taxes, and as Adam Looney and Michael Greenstone write for the Hamilton Project almost all working-age people pay federal tax on their income.
The main bloc of people who don’t pay income or payroll taxes are elderly people. Old people tend not to work, and many old people don’t have much in the way of investment income either. But it’s not like they’re freeloading, they’re just people who paid taxes in the past when they were working.
http://www.slate.com/blogs/moneybox/2012/04/06/taxes_who_pays_.html
Yeah, but what have they contributed… lately?
FREELOADERS!
Contributed? Fox Noise rhetoric…. like most bluehairs. And they fail to realize that those who are currently employed are funding their hypocritical asses.
Their breaths are shallower and progressively use less 0xygen -
?
Realtors Are Liars®
Congresscritters Are Liars®
The FDA Lies its Butt Off.
Is gold pricing in heightened odds for QE3, or just a stock market flight-to-quality move?
Metals Stocks
April 9, 2012, 5:44 a.m. EDT
Gold rises on policy-easing expectations
By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — Gold futures rebounded in East Asia on Monday after a soft U.S. jobs report Friday and concern about a global selloff in risk markets this week stirred expectations for new rounds of policy easing.
Gold for June (GCM2 +0.76%) delivery was up 0.8% or $12.70, at $1,642.80 per ounce on the Comex division of the New York Stock Exchange.
Silver for May (SIK2 -0.28%) delivery was up 0.1%, or 2 U.S. cents, to $31.75 an ounce.
In a note released Sunday, United-ICAP cautioned that global stock markets might open harshly this week, noting “all possible red lights are flashing warning signals.”
…
This whole song and dance is tiring.
How far will the Fed have to let stocks fall in order to convince the masses that QE3 is necessary to keep the recovery on track?
“Recovery” for who?
Point taken.
To most Americans, it doesn’t feel like an economic recovery
By David Frum, CNN Contributor
updated 7:46 AM EDT, Mon April 9, 2012
(CNN) — Friday’s weak jobs report is more than a disappointing blip.
It is a glimpse ahead of our disappointing future.
Nearly three years from the beginning of the economic recovery in the summer of 2009, the U.S. economy has replaced not even half the jobs lost in the slump of 2007-2009. At the current pace of job creation, it will take until 2017 to replace all the jobs lost.
But of course the population has grown since 2007, so “replacement” is not good enough. We are even further away from equaling the employment rate of 2007 — the proportion of the working-age population at work.
Even when (or if) full job recovery does come, it will not restore the economy of 2007 just as it was.
Recessions reshape economies.
The best book written about the social effects of the Great Recession is Don Peck’s “Pinched.”
Peck shows us a new world emerging from the catastrophe of 2008, a new world that most Americans will find harsher than the old.
…
“a new world that most Americans will find harsher than the old”
This is the New Normal, the Lucky Ducky future. Even as new jobs are created and the unemployment rate decreases, what are the *real* wages and benefits of these jobs and compare with the *real* inflation (not the CPI lie) of things people buy. The “recovery” is the non-recovery. And the squad repeats its correct assertion that in twenty years what could be considered a middle class standard of living will only be had by less than 15% of the population. The future belongs to Lucky Ducky!
I now make roughly twice what I was making 6 years ago and it has been COMPLETELY negated by inflation over the last 3 years.
But the avg American is so damn stupid that only a right rodgering is ever going to wake them up, if then. So we’re getting what we deserve.
And the squad repeats its correct assertion that in twenty years what could be considered a middle class standard of living will only be had by less than 15% of the population. The future belongs to Lucky Ducky!
The corollary of this is that in other countries, countries like China, some percentage of their population is joining the “middle class” for the first time. Global competition for resources, global competition for jobs, redistribution of income on a global level.
Uh GEE thats what Ive been saying for years 26 weeks to catch up on all your personal stuff then if you are not in school or an intern job on the 27th week you get cut off…
——–
To do better, we’ll need a program to stimulate employment for the long-term unemployed — including potentially a New Deal-style requirement that nobody receive benefits without working. It’s no good to anybody — the unemployed least of all — to allow the unemployed to collect two years’ worth of benefits while waiting at home, their skills atrophying, their resumes going stale.
How about an MBA from one of these schools and get a $200K job right out of college.
http://rankings.ft.com/businessschoolrankings/global-mba-rankings-2012
I wonder if MBAs are still getting jobs? Especially in the Finance field. And who in EU is hiring at high salaries with EU about to fild down. I can understand salaries being high in countries like Australia, India etc. as their RE bubbles are still intact and free money is flowing all over.
Is MBA now the new BA? With so many B-schools just minting MBAs like MBA factories in the form of part-time, full-time, Exec-MBA, weekend MBA, Mini-MBA etc.
Is MBA really worth the price tag? Maybe only froma good B-School. I still feel MBAs or PhD in business have no business getting paid more then doctors who save lives.
Is MBA really worth the price tag? Maybe only froma good B-School. I still feel MBAs or PhD in business have no business getting paid more then doctors who save lives.
There’s a book out called the Personal MBA. I’ll admit to reading it, and let me tell you, the author lost me after he bashed the value of the MBA for most people.
He then went into a lengthy discourse on what actually is taught in MBA classes. It seemed like a lot of jargon dressed up in terms that appear to come from the field of psychology. Yawn. Snooze. Close book and return it to library.
Any-hoo, this book made me very glad that I didn’t go for an MBA. Almost did that in my late twenties.
I did one from a local school (Regis). So far I would say it’s not worth the money. If you’re already on the management track perhaps it helps justify that, but it does not put you on the management track.
Having said that, I liked my classes and thought they taught good material on a variety of topics. I didn’t consider it psych jargon for managers. One of the more interesting things they introduced me to is the articles in the Harvard Business Review. They tend to be extremely good. If that’s indicative of the quality of instruction you get when getting a Harvard MBA, I have to grudgingly say it’s probably worth going there.
“nobody receive benefits without working.”
But what would they do? Phony make-work gigs, or work cheap or free at jobs that would normally go to others for pay?
If you’re already on the management track perhaps it helps justify that, but it does not put you on the management track
My observation as well
Up until the 1980’s MBA’s were for the kid who was slated to take over the family business/manage the family assets. It was presumed they’d already have the contacts in place.
Exactly you unemployment would keep coming in….then it would be up to the labor dept to sue the employer for making you an “intern” instead of paying you…
I think all jobs even non paying intern ones should be covered under EEOC no age sex discrimination for older people or those who can not afford to be in school..
But what would they do? Phony make-work gigs, or work cheap or free at jobs that would normally go to others for pay?
Up until the 1980’s MBA’s were for the kid who was slated to take over the family business/manage the family assets. It was presumed they’d already have the contacts in place.
That totally makes sense. Not sure how it got turned into a cargo cult, but somebody must have made an effort to make it appear that people got their management jobs because they had MBAs.
If Apple goes below $600, its on.
Do sheeple who don’t have a pot to piss in actually believe that a rocketing stock market benefits them personally?
The asset price outlook isn’t all bad; who can complain about lower oil prices?
Index Futures:
S&P 500 1,375.75 -14.50 -1.04%
DOW 12,865 -113.00 -0.87%
NASDAQ 2,726 -28.25 -1.03%
Wall Street pointing lower
Move follows weak Friday jobs report; China CPI up
Asian equities retreat
Stocks fall after Chinese and U.S. data. Japan shares extend drop, also weighed by a firm yen.
Futures began run lower during Friday holiday after jobs report came up weaker than expected.
• Crude-oil tumbles as U.S. index futures slump
press release
April 9, 2012, 6:00 a.m. EDT
Mortgage Litigation Index Sets New Record
DALLAS, April 9, 2012 /PRNewswire via COMTEX/ — Foreclosure cases dominated quarterly mortgage litigation activity and show no sign of relenting — helping to push the Mortgage Litigation Index to an all-time high. Among categories to show the worst deterioration were criminal, servicing and mortgage fraud.
…
Wouldn’t the return of money to the U.S. taxpayer be higher if they didn’t restrict these sales to packages of 500 homes? Generally speaking, a restriction on who can buy something results in a lower sales price, an instance of La Chatelier’s principle.
I’m sure that wasn’t the reason to restrict sales to packages of 500+ homes (an incredible figure, when you think about it!), but it seems like Uncle Sam may be inadvertently shooting the taxpayer in the foot here as regards potential recoveries on foreclosures with federally-guaranteed mortgages.
Money Talks: Foreclosure Feast – How the Rich Get Richer
by Stacy Johnson
Posted: 31 mins ago
Foreclosed homes - there are thousands all over the country, including many taken back by Fannie Mae, the government backed mortgage giant.
When a government-backed mortgage goes into default, the house is sold, often for way less than the mortgage amount. Which means there’s a loss. Who pays it? Ultimately, we do: the American taxpayer.
And now that prices have plunged, and billions lost, FHA is preparing to sell thousands of houses and rental properties they’ve taken back through a sealed-bid auction.
Sounds like a great way to get a deal on a rental property…or maybe a fix-up. Certainly is. There’s just one catch: you’re probably not rich enough to bid.
Because this property is being sold in giant packages of up to 500 houses each. Only those that can prove they have the money and property management expertise can bid.
So rather than giving individual taxpayers the opportunity to buy these houses, they’ll be auctioned - presumably at cheap prices - to institutional investors, like hedge funds.
…
Palmy’s prediction: Worst. Bomb. Ever.
Please do tell.
This program is NOT the sweet deal that MSM or HBB is making it out the be.
FHFA spells out the qualification criteria here (thanks google!)
http://d13elqjcd61okc.cloudfront DOT net/content/pdf/Pre-Qualification_Request.pdf
I paraphrased the main points. Bold is mine:
———–
Entities who may qualify.
1. 503c corporation or bank with $5 mil in CASH.
2. A trust “that was not formed for the purpose of acquiring specific Assets from Fannie Mae”.
3. Individual or couple with $1M in net worth, where “primary residence shall not be included as an asset.”
4. Individual with an income of $200K.
The entity must also:
5. Be in the business of REO management/development “in the ordinary course of its business”… and will do so through use of an infrastructure that has the demonstrated experience, capability, and technical expertise required to manage the REO.
The asset itself:
6. There are no guarantees on the value or condition of the property. You’re taking a risk and that you could lose it all, and too bad if you do.
7. <b.”no proposed sale of Assets is intended to constitute the
sale of a “security” within the meaning of the Securities Act”
———-
Short version:
a. If you’re a business entitity who has CASH and who is already set up to manage REO and know you the risks: this program is for you.
b. If you’re an individual dude and you just want one house: go to Homepath.
c. If you’re want to start a new career as an REO business and use this program as a starting point: don’t let the door hit ya where the good Lord split ya.
d. If you want to set up a little side-corp to take advantage of gov cheese: don’t let the door hit ya where the good Lord split ya.
e. If you want to borrow money to snap this up on margin: don’t let the door hit ya where the good Lord split ya.
f. If you want to snap this up and flip to some REO company for a profit: don’t let the door hit ya where the good Lord split ya.
g. If you want to slice and dice this as a Security and sell it up the food chain: don’t let the door hit ya where the good Lord split ya.
h. If you do buy properties on this program and they turn out to be crap and you want to blame or sue Fannie Mae: don’t let the door hit ya where the good Lord split ya.
I agree with palmetto that this program will bomb. But you know what? Read it: it’s DESIGNED to bomb! Would you rather that program be written as a sweet deal for Goldman Sachs? Personally, I’d rather let the houses fall down first.
Oxide, it hardly matters. Money moved by the trillions into the pockets (accounts) of the already rich. So they will turn around and buy us out of our heavily-discounted, foreclosed properties. They will own more of the nation by the time this process is complete. That was always the goal: Owning everything. When your goal is to own everything, and when you win, then it doesn’t matter what the prices are. You set the terms at the end, and so you will set terms that are wholly beneficial to you.
This movement of housing assets into the hands of the wealthy happened in the last Great Depression, and it’s going to happen doubly so this time.
It occurred to me the other day that this country is awash in actual, non-monetary wealth, yet somehow, only a few people are wealthy, and the rest are essentially their slaves.
This is obviously the fault of the Iranians.
Sounds like a great way to get a deal on a rental property…or maybe a fix-up. Certainly is. There’s just one catch: you’re probably not rich enough to bid.
Can’t help being reminded of that joke about making a small fortune in a resort town. (This joke seems to be quite popular in such places. Especially ski resorts.)
Joke goes like this: How do you make a small fortune in [name of town here]? Answer: Come to this place with a large fortune.
And that reminds me of a joke about a farmer who wins big in the lottery. When asked how he plans to use the money, he replies “I’ll probably just keep farmin’ ’til it’s all gone”.
That’s great…I’m going to have to use that one.
The joke applies to several situations. How do you make a small fortune in real estate? Start with a large fortune. The story of Donald Trump’s life.
I’ve always heard: “How do you make a small fortune in avaiation … “
What the foreclosure settlement means for you
By Les Christie @CNNMoney April 9, 2012: 5:57 AM ET
NEW YORK (CNNMoney) — The $26 billion foreclosure settlement has finally been given the green light, making it possible for roughly two million of the nation’s hardest hit borrowers to see a significant reduction in their mortgage payments.
Agreed to between the nation’s five largest banks and attorneys general from 49 states and the District of Columbia, the deal settles charges of foreclosure processing abuses dating back to 2008.
Under the settlement, which was approved by a federal judge on Thursday, the banks will reduce the principal on loans held by underwater homeowners, refinance some mortgages to today’s low interest rates and compensate those who lost their homes due to improper foreclosure practices.
The banks also agreed to change the way they handle and approve foreclosures. The group of state attorneys general claimed that banks lost important paperwork, cut corners and enlisted robo-signers to attest to facts they had no knowledge of on hundreds of documents a day.
The settlement, the details of which were first announced in early February, has been in the works for more than a year. Here’s what the banks agreed to and what borrowers can expect in the days ahead.
What did the mortgage lenders and loan servicers agree to do? The banks and servicers have committed at least $17 billion to reduce principal for borrowers who 1) owe far more than their homes are worth 2) are behind on payments.
The amount of principal reduction will average about $20,000 per borrower in the cases of four of the banks. The Bank of America reductions will be even steeper, averaging $100,000 or more, according to spokesman Rick Simon.
Another $3.7 billion will go toward refinancing mortgages for borrowers who are current on their payments. This will enable them to take advantage of the historically low interest rates that are currently available.
The banks will pay $5 billion to the states and the federal government, the only hard money involved in the deal. Out of that fund will come payments of $1,500 to $2,000 to homeowners who lost their homes to foreclosure. Other funds will be paid to legal aid and homeowner advocacy organizations to help individuals facing foreclosure or experiencing servicer abuses.
Another $1 billion will be paid directly by Bank of America to the Federal Housing Administration to settle charges that its subsidiary, Countrywide Financial, defrauded the housing agency.
…
Couldn’t happen to a nicer bank.
$17 billion / $20000 = 850000 homeowners.
I predict another bomb program. Even the little 50% haircut homes in Pinellas park dropped $80-$100K. $20K is going to do nothing for them. Houses in Stockton dropped $300K - $400K. $100K won’t make a dent.
Another $3.7 billion will go toward refinancing mortgages for borrowers who are current on their payments. This will enable them to take advantage of the historically low interest rates that are currently available.
This is the part that interests me the most.
Why have these borrowers not refinanced already? Presumably they no longer qualify under today’s still-too-loose underwriting standards. And yet they are current on their existing mortgage.
Is it income that they lack? They seem to have enough cash-flow to stay current on their mortgage. Perhaps they are paying it out of savings—but we know most people don’t have sufficient savings to pull that off.
Are they behind on debt other than their mortgage? I bet that is the case for most of these borrowers.
I’m guessing that these are the folks who failed to understand that “save the house at all costs” thinking is a thing of the past. In the past, people used to let other debts fall behind while keeping their mortgages current so as to avoid losing their house, and the equity in it. But in a scenario where there is no equity to protect post-bubble-burst, you are better off with the opposite move: stay current on everything else while letting the mortgage fall behind.
This bailout helps out people who didn’t get the memo, and are stuck in the past.
Negative Equity Forever?
By Peter G. Miller
CTW Features | Posted: Saturday, April 7, 2012 12:00 am
Question:
We bought a home in 2006 and have first and second loans worth $225,000. The property is now worth $145,000. There are no programs of which we are aware that will help bring our mortgage in line with the actual value of this home. We are employed, current on all our bills and have credit scores of near 800. The question we have is: How long do we continue to pay for negative equity knowing we stand a chance of losing the house at some point in the future?
Answer:
For decades the purchase of a home was seen as a long-term investment where slow growth plus loan amortization would eventually result in a mortgage-free property with substantial equity. You bought at or near the top of the market and now want to leave after six years.
…
Bwa-ha-ha-ha-ha. Back during the bubble, realtors should have been saying “Buy now and have negative equity forever!”
Back then, I was saying, “Try not to get stucco.”
Welcome back Get Stucco!! -
Welcome back Get Stucco!!
+1 Glad to see Cantankerous is willing to let feckless Stucco out of the attic now and then.
“…feckless Stucco…”
I take great Schadenfreudic pleasure in the story of Groucho Marx ridiculing real estate investors who lost their shirts in the Florida land crash, only to lose himself a fortune in the Great Crash of the stock market that played out a few years later.
This should serve as a warning to stock market investors this go-round: There is no reason to assume another brutal leg down does not lie in store for those who assumed the worst was over after March 2009.
SLAM!!
The article quoted: “There are no programs of which we are aware that will help bring our mortgage in line with the actual value of this home.”
Sorry, but there always was a program in effect, called “foreclosure and re-sale at the new market price”. How can they not be aware of that? And it’s not like they can’t take advantage of it for themselves since I’ve know businessmen to let their businesses go up for default auction, and they just bought it all back for dimes on the dollar through subordinate bidders. These FBs can do the same… OH WAIT, they don’t have money, and nobody they know has money. All they have is DEBT.
“There are no programs of which we are aware that will help bring our mortgage in line with the actual value of this home.”
Sure there is: jingle mail
Oh, did you mean for dumb investing? Tough luck. Enjoy!
To a contrarian, I am sure this article looks bullish for bullion.
April 9, 2012 at 1:00 am
Gold rush may be over; price falls 15% since September
Drop stirs debate about investors’ desire to buy the metal
By Bernard Condon and Matthew Craft
Associated Press
The price of gold plunged Wednesday to its lowest level in three months. It fell almost $58 to $1,614 per ounce, from a peak of $1,907 in September. The decline has led to speculation that the fervor to invest in gold as a hedge on inflation is fading. (Nick Ut / Associated Press)
The price of gold, which has climbed for years like a blood pressure reading for anxious investors, plunged Wednesday to its lowest level in three months.
Gold fell almost $58 to $1,614 per ounce. It has declined 15 percent since September, when it hit a peak of $1,907. It had more than doubled since the financial crisis three years earlier.
Surprisingly, the fall came on an ugly day in the stock market — the Dow Jones industrial average lost 125 points. Last year, a day like Wednesday would have caused fearful investors to buy gold as a protective investment.
“It’s difficult to forecast, but I think the gold bull market is over,” said Cetin Ciner, a professor of finance at the University of North Carolina-Wilmington. He likened the surge in gold to dot-com stocks before they collapsed.
Some investors buy gold as a hedge against inflation, and minutes from a Federal Reserve meeting that came out last week suggested that the central bank believes inflation remains under control.
Gold’s attraction as an asset of refuge during crises also seems to have diminished. The economy has picked up, and worst-case scenarios in the United States and Europe have faded.
“Fear has been gold’s best friend, and so to the extent that fear is dissipating, gold should fall,” said Jim Paulsen, chief investment strategist at Wells Capital Management. “We might look back at these Fed minutes as the line in the sand.”
Gold has been hit in recent weeks by striking gold sellers in India, the world’s largest buyer of physical gold, who are upset over government tariffs. Another bearish sign was a surge Wednesday in the dollar, which tends to rise when gold falls.
Gold fetched only $300 to $400 an ounce during the 1990s but climbed steadily last decade. By late 2008, it was near $900. It took off that fall when prices for stocks and corporate bonds plunged, wiping out years of savings. Even money market funds looked suspect. Investors bid up prices for the safest of assets, like U.S. Treasury bonds. Others turned to gold.
“During our bout with Armageddon, people ran to it for safety,” said Abraham Bailin, a commodity analyst at Morningstar.
…
“Fear has been gold’s best friend”
HAha! Nothing to fear anymore. Excellent!
We were looking at a bank-owned house, this weekend that will consider any offers. Not a bad area , though the houses on both sides stand empty. No broken windows ,and the old guy 2 doors down admitted that ”The last bunch in there was a rough crowd”.
Nasty stains in the kitchen floor and walls make me think I need to do a meth level test .
Anyone with experience as to how far we should go on that ? We are thinking about a send-in test , that costs about $100 .
My advice? Get a professional to do it. Yep, it costs more, but we’re talking a home you’ll be living in, and you don’t want the possibility of health or other issues.
From what you’re saying about the stains and the houses empty on both sides, and that the bank will consider any offers, I’d say it’s a given that there was meth or drug activity of some sort. Personally I’d pass, but if I was interested enough to remediate the place, I’d definitely spend the bux for a professional test.
+1 Actually I’d pass altogether.
This ^
Keep shopping.
When comes to high ticket purchases, patience is your friend.
I’d say it’s a given that there was meth or drug activity of some sort.
Even if true, it does not mean that the house is unlivable now.
There is a big difference between someone _smoking_ meth there, and someone _cooking_ meth there. The latter may leave significant residue cooked into the walls. The former should not.
but we’re talking a home you’ll be living in, and you don’t want the possibility of health or other issues.
What are the health issues associated with a house that had previously been used as a meth lab? Just curious.
Residue of extremely poisonous chemicals.
The chemicals involved in the manufacture of methamphetamine are volatile and evaporative. Airing out the house for few days, cleaning exposed surfaces and ductwork, and perhaps replacing the carpeting, drapery, and filters if there is lingering odor/powdery residue, will generally suffice.
Scare statistics are based on first-responder incidents within 72 hours of a “cook.” Here’s a CDC analysis:
http://www.atsdr.cdc.gov/ntsip/docs/Meth%20Production.pdf
My main concern with the house would be with the neighborhood.
make me think I need to do a meth level test ??
Make the offer to the bank “subject to” a environmental test…That may flush out knowledge that they may have regarding any contamination…
Or make the offer for the value of the land less the cost of tearing down the current house. Assume you would have to rebuild from the foundation up. Then, if any of the house is salvageable, it is a happy surprise.
Of course, this only works if you have the cash to tear down and rebuild.
(Ah hell just turn em` into Time Shares.)
Fed to banks: Rent out more foreclosures
By Margaret Chadbourn
4/5/2012 6:10:26 PM ET
The Federal Reserve took steps to encourage banks to turn more of their foreclosed homes into rental properties in new policy guidelines issued on Thursday that could help lessen the flood of distressed property sales that is depressing prices.
“Banking organizations should make good-faith efforts to dispose of foreclosed properties,” the Fed said in a six-page policy statement.
But it said that given “extraordinary market conditions that currently prevail,” renting out surrendered properties falls in line with its regulations.
Many at the Fed have argued that converting more single-family homes into rentals could curb declines in home prices that have fallen more than 30 percent from their peak in 2006.
The central bank issued a policy paper to Congress earlier this year and suggested lenders jump into the rental market as a way to reduce their losses on foreclosed properties, an approach that would also help shore up the housing market and meet the growing demand for rentals.
“The continued inflow of new real estate owned properties to the market — expected to be millions more over the coming years — will continue to weigh on house prices for some time,” the Fed statement said.
The Fed cautioned that banks must always consider the overall “costs, benefits, and risks of renting,” and that full documentation of a rental strategy is needed.
Banks are allowed to rent out a foreclosed property “without having to demonstrate continuous active marketing of the property provided that suitable policies and procedures are followed.”
Those banks using 50 or more properties as rentals need to document how they are meeting supervisory standards, the Fed said.
Despite the number of repossessed properties being rented, the central bank reminded lenders must comply with federal, state, and local statues, including keeping up with maintenance codes and landlord-tennant laws.
Banks must carefully balance the demands of rehabilitation and leasing, the Fed warned, and establish policies to ensure the properties stay under standard maintenance codes.
If banks use property managers or outside agents to manage the repossessed properties, the Fed said contracts and solid track record are necessary.
http://www.msnbc.msn.com/id/46971242/ns/business-real_estate/t/fed-banks-rent-out-more-foreclosures/ - 74k -
With all the rentals soon to come on line, I am wondering if buying will ever pencil out again, at least for the next couple of decades?
if buying will ever pencil out again, at least for the next couple of decades ??
Well sure it will…If your a prospective buyer of a house, the best thing that could happen for you is the market to be flooded with single family rentals…
But Amy Hoak on Marketwatch says rents are only going up! And the Denver troll said rents here have gone up 30% and that there are no vacancies anywhere!
“And the Denver troll said rents here have gone up 30% and that there are no vacancies anywhere!”
We have vacancies.
Depths of foreclosure crisis difficult to measure
Updated 4/1/2012 5:15 PM
But this stretch of 21st Street, pocked by homes with boarded-up windows and dead-ending at railroad tracks, is unlikely to make it to a tourism poster. Verna turns the car around in case he needs to make a quick exit and tucks a Smith & Wesson pistol into his jeans.
“Just watch your step,” the real estate agent says, parting bushes grown across the building’s entry path. Beyond is the darkened doorway to Unit 1 — missing its door.
“I think there’s a dead animal over there,” Verna says, aiming his flashlight at brown fur in the center of a living-room floor blanketed in garbage. The stench of whatever’s in there is potent. Nobody is home.
Verna is here because he specializes in distressed properties and Florida, thrashed by the mortgage crisis, has thousands. But figuring out just how many is not simple.
http://www.usatoday.com/money/economy/housing/story/2012-04-01/foreclosure-crisis-florida/53929010/1 - 64k -
Why are you answering a Denver post with a West Palm Beach article?
“Why are you answering a Denver post with a West Palm Beach article?”
That is why I said “We have vacancies”. But rents are up here too and if you ask a local Realtor it`s because there is just no inventory.
It’s simple.
Realtors Are Liars®
“Why are you answering a Denver post with a West Palm Beach article?”
But if you need something from Denver, here you go.
Illegal Occupation Of Homes A Continuing Problem
December 19, 2011 4:50 PM
WINTER PARK, Colo. (CBS4) – It is one of the more bizarre outcomes of our mortgage crisis — illegal occupation of homes.
CBS4 Investigator Rick Sallinger found people have moved into vacant homes under foreclosure in Aurora, Denver, and now the Winter Park area.
There’s a common thread in illegal occupations. That thread appears to be a Denver area man who calls himself a real estate consultant. Investigators say he is telling Hispanics, including illegal immigrants, if they move into empty homes and make improvements they can claim the houses as their own under what’s called “adverse possession.”
A family that had been living in a house told a neighbor they were moving up to a pricier neighborhood.
“He said, ‘We are going to be buying a house in Rendezvous for just the taxes; a million and a half dollar home.’ And I said, ‘Really?’ ” neighbor Diane Collier said.
They moved into a 5,200 square foot, five bedroom, five bath home with a fireplace-heated bathroom, and spectacular views. Real estate agent Denise O’Connell was attempting to sell it.
“You can kind of see the layout where there was a television, a couch over here, a table in this area; obviously they moved in,” O’Connell said.
http://denver.cbslocal.com/2011/12/19/illegal-occupation-of-homes-a-continuing-problem/ - 102k -
Fed to banks: Rent out more foreclosures
Is “property manager” in the fed’s charter?
Apparently they can do whatever they want, so long as they can claim any kind of flimsy connection to creating jobs or containing inflation.
So, I saw the Hunger Games last night. Overall a decent flick, but that shaky, blurry camera technique kinda sucked. I’ve always hated it.
OTOH, about mid-way through the movie it dawned on me that our own societal version of the Hunger Games is VERY much in progress. To begin with, the social attitude of the Capitol citizens is rampant in our media and social discourse. Decadent, effete, no sympathy for suffering.
But more importantly, pitting factions and groups of people and individuals, one against the other: rich against poor, black against white, young against old, unions vs privately employed, gay against straight, illegal immigrants vs citizens, liberal vs conservative, Democrat vs Republican, etc., etc. amen.
These are but low-life games invented for us by so-called “elites”, mainly in the government, media and financial sectors. They are just as decadent and perverted as the Capitol citizens in the Hunger Games and it would not take much of a leap to bring about a Hunger Games type scenario.
Some of us have been guilty of participating in these “Hunger Games”, myself included. I’m going to try not to go there. What the “elites” fear most is that “the people” would unite against them, and then the jig would be up.
And for those who like to play the “young against old” game, I’ve been hired for a project gig by a very bright, impressive youngster who shares many of the same views that I do. It’s going to be an honor to work with them.
You have to wonder what it will take to make the average person lose their “team” and see others of like station as peers.
The lament of the ages.
The answer so far? Nothing. The human race is just too damn stupid that nothing short huge die offs ever change anything.
Cheers!
Cheers to the die-off
Seven billion eaters is about six billion too many for this planet.
It has been pointed out that there is a direct correlation between the Black Plague and the surge of the Renaissance due to the lack of labor causing wages to rise while having less manpower enforce the status quo and forcing the search for better ways of doing everything.
Also, they got to abandon farming on marginal land (low yields for the labor input) because of the lower population.
Here’s to anyone saying we have too many on the planet being the first to go in the die off… Here Here!
I always knew that everyone had to die someday, but I was hoping that an exception would be made in my case.
“Here’s to anyone saying we have too many on the planet being the first to go in the die off…”
Yep. It’s easy enough to casually observe there are ‘too many’ humans for the good of ecosystem balance; quite another matter entirely to find moral grounds for falling on one’s sword in order to be the first to help restore balance.
“but that shaky, blurry camera technique kinda sucked.”
Where did they pick up that technique the Zapruder film?
I find it intriguing that a dystopian book and film would elicit so much interest from the teenage/20-something set. It seems to me that they usually go for lighter, more fantastical fare (Twilight, Harry Potter).
Just an impression. If true, what does it imply?
I find it intriguing that a dystopian book and film would elicit so much interest from the teenage/20-something set. It seems to me that they usually go for lighter, more fantastical fare (Twilight, Harry Potter).
Just an impression. If true, what does it imply?
Young adult literature is often very depressing. Kids like angst-filled books. Harry Potter is anything but light. Evil vs. good, violence, parents getting killed. etc.
I don’t want to spoil the rest of the Hunger Games (they are coming out with the sequel), but the 2nd and 3rd books are good.
Younger folks as a group have always had an intense interest in the future, IMO. People who are closer to shuffling off the mortal coil, not so much. I know many of the retirees are mainly concerned about making their exit with the least amount of turmoil possible.
With that said, when I wuz a pup, books like 1984 had a huge impact on me. Also Lord of the Flies, etc.
But I also enjoyed rather more escapist literature, as well.
In answer to your question, what does it imply, I’d say not much. I actually sometimes re-read certain works I read as a pup. One series always reminds me what sort of person I would have like to have been, how I fell off the track and how I was able to make it somewhat of the way back.
If you want to take a journey into cultist, bible belt, fly-over country where the bus doesn’t go then browse on over to Youtube and search for: “Red State” trailer
Congrats on the hire, Palmy! Young/old is the best pairing in the market; you cover ALL the bases. Nice.
I was just looking at Jim the Realtor’s latest video
http://www.bubbleinfo.com/2012/04/08/the-1100th-video/
He mentions that Bank of America just gave $7k in cash-for-keys to some Southern California homeowners. It’s a million dollar house (or is probably valued as such right now). I think I’ve read about even more lavish cash-for-keys money before, but this is still pretty impressive. As I recall, they’ve also been leaving there for years rent-free.
I guess virtue has to be its own reward.
“As I recall, they’ve also been leaving there for years rent-free.”
This is the bit that kills me the most. Do the right thing by renting and saving up for a proper downpayment, and you’ll still get beat out by the people who had two years with zero rent forming their escape pod nest egg.
Don’t forget that they are now out of the game because of their shot credit. Many people on this Blog were able to avoid the catastrophe by acting proactively to the data provided that we could break apart and analyze ourselves to learn the truth.
Real Estate doesn’t make any sense until you are about 35, and most should be out of it by 75. That’s only half of life where we can be breadwinners, and only 40% of population is ever a true full-time breadwinner making it steadily through those 40 years.
Real Estate doesn’t make any sense until you are about 35, and most should be out of it by 75. That’s only half of life where we can be breadwinners, and only 40% of population is ever a true full-time breadwinner making it steadily through those 40 years.
+1 Interesting perspective!
One of the person’s taxes I did this weekend had a 1099-misc from Wells Fargo for $3K. Yeah, Cash for Keys is income…
One of the person’s taxes
One of the squatter’s taxes…
Comment by Muggy-
“Question (repost): If a bank assigns a mortgage to a person and not another bank, does that mean the bank is giving them the house?”
Did you ever get an answer to this, Muggy? What was it in reference to? The bank that told your FB friends that it had lost the mortgage note on their property?
Naw, no answer.
After all of the good fortune my FB friends have had lately, I went back through public records and checked in on some peeps that I know are way upside down (bought $180k, worth $60k for example).
In one case, there was an “A” in the records, and it only had one name, an no bank name.
I was thinking aybe the stopped paying and the bank just gave them the deed, but I’d be able to see that, yeah? I dunno, I was real good at all of this a few years ago, then I just stopped looking into public records.
Simple advice for stock traders concerned about HFT: JUST DON’T BUY STOCKS!
BUSINESS
Updated April 9, 2012, 9:54 a.m. ET
Traders Navigate a Murky New World
By SCOTT PATTERSON and JENNY STRASBURG
For a sense of how murky the financial markets can be these days, consider the case of Pipeline Trading Systems LLC.
Using software developed in part by Fidelity Investments a decade ago, Pipeline set out to provide a way to buy and sell stocks away from the public stock exchanges. On its alternative system, large investors would be protected from what many find an irksome species: rapid-fire traders who use powerful computers to spot orders as they emerge and instantly trade ahead of them.
What most investors using Pipeline didn’t know: A quick-trading affiliate of the firm was doing much the same thing.
That revelation, described in a regulatory settlement last fall, delivered a stark lesson in how today’s computer-driven stock market, replete with complex algorithms, agile trading firms and obscure computerized trading platforms, has in many ways become less transparent than when most buying and selling took place in the open on the floor of an exchange.
…
Good Friday = Bad Monday
But not to worry, as the losses are contained.
Pain in the payrolls —
Wall St. painted in deep red
A swift 1%-plus pullback grips U.S. stocks, reflecting investors’ verdict on weaker-than-forecast nonfarm payrolls for March reported Good Friday.
Sorry, but a 1% drop is not “deep red.” ‘Tis a mere flesh wound.
We are down 5 or10 million jobs (depending if you consider population growth).
Beware the predictions of master-of-the-universe stock analysts with cheesy smiles.
April 6, 2012, 11:46 a.m. EDT
Bad jobs numbers, a correction and risk-off
By Michael A. Gayed
“Darn the wheel of the world! Why must it continually turn over? Where is the reverse gear?” - Jack London
On March 13, MarketWatch published a column of mine titled ” Stock Correction Odds Rise, and It’s Okay ” in which I stated that “because the long-term is made up of a series of short-terms, it may very well be that we are seeing early [signs of a] correction within the broader bull market I believe we are now in.”
Of course, the same day I released that piece, market internals dramatically changed because of the release of bank stress-test results, causing a further advance in equities.
…
Why buy a house now? Buy later after prices crater for 65% less.
“Why buy a house now? Buy later after prices crater for 65% less.”
If you knew how to say that correctly you would have a job with The Federal Reserve.
“The continued inflow of new real estate owned properties to the market — expected to be millions more over the coming years — will continue to weigh on house prices for some time,” the Fed statement said.
Instead of buy later, how about buy never? Life really sucks after throwing money away on rent and having all this leftover money to buy skis and climbing gear and spend weekends somewhere more interesting than Home Depot or mowing the lawn!
http://picpaste.com/2012-04-08_09-48-58_281-uPhafBMT.jpg
Liars are realtors
http://picpaste.com/0943e8529ba77c2f768fe221a89de020.jpg
The “unemployment status” from yesterday’s post:
In reference to my commentary and comments, wondering how I could be “unemployed” and buying investment houses.
It’s simple. I am 57 and was working the past 40 years. I was in my PEAK earnings years when I may job disappeared. That was 2.5 years ago. For 1.5 years I was sending out 7 resumes per week. My situation changed in terms of jobsearch when my father needed heart surgery and had a difficult recovery.
I SAVED 50% of my after-tax earnings for YEARS. It was my housing fund and living expenses. I am NOT self-employed, I am simply spending my time making myself as useful as possible, rather than sitting at home whining about needing more support payments. Conversely, I am NOT looking to be a worker at a carwash. I don’t need the money. That doesn’t mean I wouldn’t be working and continuing to fund my retirement if a similar job were to come my way. When the market changes, I will be back to work, as I can’t really retire and live on savings for 10 more years.
To REMOVE me from the workforce and say that “unemployment” is really much lower than it is, is disingenuous. I am Unemployed. I am NOT retired. I am NOT ’self-employed’, as I am producing no INCOME, I am Spending savings.
That’s me. Everybody’s got their own story.
There are lot of others just like you out there.
And you’re right, it IS disingenuous.
Also, MSM tends to use the U3 measure, when the U6 is closer to reality.
Diogenes -
Ditto me at 59. Truly sucks and completely invisible.
Although construction also has been slowed by shortages of financing for various infrastructure projects, Pieter Bottelier, professor of China studies at the School of Advanced International Studies at Johns Hopkins University, views the real estate sector as the weak link in the economy. The risk is not so much a residential market meltdown like those seen in the U.S. and Europe in recent years, since Chinese homeowners rely much less on borrowing than their counterparts in those markets. The greater threat is in the massive, unsustainable borrowing by property developers whose projects are unlikely to pay the originally anticipated returns due to a downturn in prices. “If we get a sudden dip, say a 10% to 20% plunge in prices in the big cities, then we will have a new situation that could become very dangerous,” Bottelier says. China has more than 10,000 real estate developers who are highly leveraged and may have to default on their bank loans if prices fall far enough.
Apart from the damage to banks, which would receive state support if necessary, the spillover into the construction, construction materials and other related sectors would likewise be damaging. Construction activity accounts for about 15% of GDP and a large share of jobs for the unskilled rural workforce. “The construction industry is such a big part of the Chinese economy, it could trigger more serious problems. This could lead to a hard landing,” Bottelier notes.
news.yahoo.com/chinas-gravity-defying-economy-hard-fall-082606627.html
“The construction industry is such a big part of the Chinese economy, it could trigger more serous problems.”
Reminds me of Vegas. The influx of gambling money kept Vegas going for years but then competition sprung up everywhere and slowed the money flow from gambling so it ended up being money flow into construction that picked up the slack and kept things going.
Same with China: The money flow from global trade to China slowed so it was money flowing for construction that picked up the slack.
It didn’t end all that well for Vegas and it probably won’t end all that well for China.
I think it is useful to think about just what it is that drives economic activity. In the case of China it was world trade and this world trade wade fueled by borrowed money, and this borrowed money was mostly fueled by cashed-out equity in one form or another, and this cashed out equity was based on the ever increasing price of real estate.
So when the price of real estate no longer rises - and in fact begins to decline - then everything that depends on the ever increasing price of real estate also begins to decline. Hence China.
Sony will cut about 10,000 jobs worldwide over the next year as it tries to return to profit, Japanese news reports said Monday.
The Nikkei business daily and other media said Sony’s decision to slash 6 percent of its work force comes as it struggles with weak TV sales and swelling losses.
Everything smells like roses
falling Baltic Dry Index
falling aluminum prices and shutting down production
Firing 10,000 at SONY.
Unemployment
Sony has made the same mistake as Dell. They thought they give the customer whatever they felt like giving them and cut costs until the product was crap, while monopolizing content and now they’re paying the price.
dont ge me started on one of the greatest little items of its time and how sony pisssed away its customer base
Yes the Mini disc and all the early adopters DJ’s yes almost every dj i knew bought the minidisc when it came out..
what a relief to get rid of half our record collection all the 45’s on those indestructible optical discs all our 1 hit song lp’s….. but sony marketed to people like my brother who couldn’t fathom the idea of making another copy of the record or to spend time copying a cassette to MD….
Or putting the MD in a camera like the mavica which used floppy disc…1 MD = 100 floppies…..there would have been no Iomega zip or jazz drives
Or when sony made he vaio…and sony made cd recorders you could not get a cd recorder factory intalled by sony…and do it yourself and it voided the warrantee……I knew then that sony had become truly Americanized!
Every time I read an article about Sony, I hear circus music.
Did Beta conquer VHS? It’s been a long time and I have forgotten.
I’ve used Dell computers for years. Matter of fact, I’m using one right now.
I’ve had wonderful service from my current Dell — a Precision 380 — and I expect to use it for quite a while longer.
The ECB’s liquidity injections are about to run out and the Fed has caught austerity religion (temporarily).
So the Bears finally get to come out of hibernation 1 month early this year. This run could have legs folks so enjoy yourselves. I know I’m making money today.
Who comes out on top with the controlls on Wallstreet this election cycle. It’s getting a bit testy in this political contest. I think they actually dislike each other this time.
Anyways, cheers fellow Bears. It has been a long cold winter, and we get to make our first clawmarks on a neighboring spruce, and down to the ice-cold snowmelt for a long deserved drink.
April 9, 2012, 11:59 a.m. EDT
Odds of a significant top here still strong
By Avi Gilburt
Based upon the invalidation of the bullish perspective this past week, and then the action in the futures on Friday morning, we clearly have to be leaning towards the bearish perspective that the market has, in fact, topped now.
…
Just to show I have a life outside HBB, here’s some video of the weekend activities testing the new car…
http://www.youtube.com/watch?v=WFNIOuOSrpY
You make me curious about how many HBB posters recently bought new cars…
I’m considering the new Subaru Impreza wagon. $20k new, gets mid-30s MPG, and one of few cars that you can get manual transmission with AWD. Problem is, this being Portland, overnight they’re popping up like weeds everywhere.
Well…of course it wasn’t brand new. But I don’t know. Makes me think about the stories from back in the day about how black families with money would buy nicer cars because of not being able to buy a house in the nicer neighborhoods. Maybe that’s us now :-).
Nice cars are the new black.
I have placed an order for a new Subaru Forester–I really wanted to love the Impreza more but the Forester just felt better. It was the manual transmission that I needed to special order since very few are on the lots here. I am replacing a very rusty 17 year old VW Golf, so I have been saving my pennies for quite some time now. I just hope we get some snow in Minnesota next winter so I can see if the AWD really makes that big of difference…
Is that because the Forester is bigger (than it’s previous versions)? I liked the Forester before it, as did the Legacy, went biggie size. I want a car, and those models seem to have gone crossover.
WRT all-wheel drive, I’m thinking it is becoming less relevant what with all the new traction control technologies out now. Friend of mine in Boise has a front-wheel drive VW with some sort of traction control that he takes up to Bogus Basin without the use of chains, etc. He says it handles like a champ on ice, snow.
As someone coming into a Forester from a Golf I really did not go into it wanting that big of car. The Forester has def. gone crossover, but it measures less than 6 inches longer than the Impreza wagon and is actually a little smaller than the Impreza sedan. During the test drive I just felt that the visibility and interior space felt a lot better in the Forester and I could still do a u-turn in a city street.
I am not a small lass (6′ 1″), hence my attraction to driving boxes or hatchbacks/wagons. Plus, I like the versatility for moving gear. I am worried that I will have a hard time lifting a bike onto the Forester roof and will need to consider a hitch mounted bike rack.
I never had too many problems with the Golf in snow–just in my unplowed alley or escaping the plow ridge and I had never considered anything but another Golf until I discovered that you can no longer get a 4 door with the manual transmission. Plus, the Subaru dealership was much nicer to me as a single lady than the men over at VW and that goes a long way when it comes to me parting with my cash.
That’s some good driving, Carl. Nice, smooth acceleration. And you tracked a nice, straight line down the track.
Thanks…I was happy with how it went. Of course I made plenty of other runs where things didn’t go quite as well, but that’s the point of testing and practicing. About 90% of those have automatic transmissions, and keeping up with them using a manual is a bit of a challenge. The automatics have gotten very good.
Speaking of testing and practicing, I passed my audition on my beloved community radio station, KXCI. And yesterday, I got to host my first daytime show. All I can say is that if I had any more fun on the air, it would have been illegal.
Congrats. I’ve been interested hearing about your on-air adventures. My high school had a radio station and I spent a semester producing spots and a semester on the air and received the lowest license, whatever it was (class 3?). Unfortunately for me I have a Ben Stein type of voice that wasn’t very good for sounding lively. It was a great experience but the biggest thing I learned was that it wasn’t about the music, it was about selling commercials. Helped me realize that wasn’t the direction I wanted to go…
Way to go, Slim! Did you get that headset yet?
You go girl!!! For headsets, you don’t have to spend a lot, but they must cover the ears and be sealed….walkman, sports open air types will cause feedback when you are close to the mic.
I passed my audition
And yesterday, I got to host my first daytime show.
Awaiting the show, Slim’s RE hour, featuring real FB’s sharing their homeowner experiences, and sensible economic reality. Oh yeah, broadcast in IP too!
The Prez in town today, about a twenyt minute ride north of….
this stretch of 21st Street, pocked by homes with boarded-up windows and dead-ending at railroad tracks, is unlikely to make it to a tourism poster. Verna turns the car around in case he needs to make a quick exit and tucks a Smith & Wesson pistol into his jeans.
“Just watch your step,” the real estate agent says, parting bushes grown across the building’s entry path. Beyond is the darkened doorway to Unit 1 — missing its door.
“I think there’s a dead animal over there,” Verna says, aiming his flashlight at brown fur in the center of a living-room floor blanketed in garbage. The stench of whatever’s in there is potent. Nobody is home.
Verna is here because he specializes in distressed properties and Florida, thrashed by the mortgage crisis, has thousands. But figuring out just how many is not simple.
http://www.usatoday.com/money/economy/housing/story/2012-04-01/foreclosure-crisis-florida/53929010/1 -
President Obama’s host in Palm Beach Gardens has top credentials
By Lona O’Connor
Palm Beach Post Staff Writer
Updated: 10:28 p.m. Sunday, April 8, 2012
Posted: 10:22 p.m. Sunday, April 8, 2012
PALM BEACH GARDENS — Hansel Emory Tookes II, host of a $10,000-a-plate luncheon on Tuesday for President Obama at his home in the Frenchman’s Reserve golf enclave, is largely unknown to those outside his circle - even to many Democratic leaders in Palm Beach County.
But he is well-known to the Democratic National Committee. Welcome to the world of high-end fundraising.
Tookes’ credentials for hosting such a lunch are impeccable. Not only is he a man of high career achievements, he also serves on several boards of directors, with a Rolodex full of influential friends.
Tookes’ credentials for hosting such a lunch are impeccable. Not only is he a man of high career achievements, he also serves on several boards of directors, with a Rolodex full of influential friends.
I’ll confess to having been on a corporate board. And I’m here to tell you that such boards have two types of people:
1. Those with experience and expertise in business.
2. Those who are there because of who they are.
The people in the second group may be star athletes, entertainers, former politicians, whatever. These folks may have a clue about business, but often do not. They can be a real headache to deal with on a corporate board.
Truth.
Kudos to Rich Toscano for this awesome article.
Why Bubbles Are Bad
Posted: Sunday, April 1, 2012 2:05 pm | Updated: 11:57 am, Tue Apr 3, 2012.
by Rich Toscano
I’ve often discussed how the three industries that I refer to as the “housing bubble beneficiary sectors” took the brunt of the recessionary job losses. In this post, I have updated some graphs showing the enormous degree to which this is the case.
The bubble beneficiary sectors, so named because they grew like weeds as a result of the housing boom, are: construction, finance (which includes real estate transactions), and retail (not directly related to housing like the other two, but a bubble beneficiary nonetheless as a result of vigorous home equity-financed consumer spending). In the graphs below, I have grouped these three sectors together as the “Housing Bubble Sectors” and charted the change in their size alongside that of the non-bubble private sector industries and government.
I took these graphs all the way back to the beginning of 2007 because the bubble sectors started to deflate alongside the housing bubble even before the recession officially began in December of that year. In order to avoid seasonality problems, I started and ended the graphs on the same month (January 2007 through January 2012).
…
Since QE seems to be losing political favor, and a falling stock market provides support for Treasurys, I am wondering if the Fed might opt to prop up the Treasury bond market this go-round through a stock market shakedown instead of running the printing press on high blast?
If they keep hinting they might do QE3, they could heighten the head-fake effect.
April 9, 2012, 11:35 a.m. EDT
Treasury yields fall to one-month lows
By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) — Treasury prices gained on Monday, pushing 10-year yields back toward 2%, as more traders returned from the Easter holiday to react to last week’s disappointing U.S. payrolls report.
Yields on 10-year notes (10_YEAR -1.70%), which move inversely to prices, slipped 3 basis points to 2.03%, near their lowest level in a month and following a sharp drop on Friday.
A basis point is one one-hundredth of a percentage point.
…
Update on our old rental:
Our landlord had bought the place for 319k at the height of the bubble.
Foreclosed on and the Credit Union puts on the market for 175k.
Sold for 130k cash after only a few days on the market, and the new owner plans on renting it out. They have spruced it up a bit (it needed it, had no curb appeal). I will be curious to see what the rent will be.
That is a pretty big haircut for the bank, but the price seems reasonable. I thought they took it off the market to wait for prices to rise but it was a quick sale.
If the new owner can rent it for $1,300 a month (using the purchase price = 100x the monthly rent metric), then he or she should be okay.
If he/she can’t get that much in rent, oh, well. So much for that in-VEST-ment in rental housing. And watch this one come back on the market for five figures.
I dunno, Slim. With the low interest rates, we may have to rethink that 100-120x ratio.
PITI on that $130K house would cost about ~$750/month.* What’s the incentive in renting the same house for twice as much?
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*sez zillow, 10% down, 4% interest, Tucson taxes
Here in Tucson, with that $750/mo. PITI figure, you’d be barely breaking even with the house as a rental. If there were any major repairs — and in a rental, those are a given — you’d be in trouble in a hurry.
Question for all of the legal eagles here: I just got a letter from the State Bar of Arizona. Letter stated that an attorney with whom I dealt a couple of years ago has abandoned his practice, and did I want the file from that matter?
Lawyer handled said matter to my satisfaction, and I had no further need for his services. My question to the HBB Legal Team is this: What does “abandoning the practice” mean?
Could be as simple as he is retiring and since he doesn’t have any partners, no one will be left to cover any items that come up related to previous matters. Get them to send the files to you. Look over the papers. Keep anything the you might want (a final order or agreement or whatever) and get rid of whatever looks extraneous (papers filled with unreadable handwriting that might possibly be the notes he took while talking to you on the phone about the status of the matter.
It isn’t a big deal, but when people stop working and the firm is not going to exist anymore, there is an ethical responsibility to make sure that you get your paperwork back for your own records or to give to a new attorney. Otherwise, it will probably be shredded or burned.
I just did a little research. And all I can say is that I’m glad I dealt with this guy once — and only once.
It appears that the reason why he abandoned his practice was due to some of his own trouble with the law. He was recently arrested for DUI in Blythe, CA shortly after a hit and run incident in western AZ.
My former attorney was en route to his ex-girlfriend’s house in Oxnard, CA. After his arrest, he told police he was going to shoot the ex and her new boyfriend.
All I can say is “Whew!” And kudos to the Blythe PD.
YOIKES!
Police ID Palm Beach Realtor as man found shot to death in downtown West Palm
By Sonja Isger and Alexandra Seltzer
Palm Beach Post Staff Writer
Updated: 8:59 p.m. Thursday, April 5, 2012
Posted: 9:18 a.m. Thursday, April 5, 2012
WEST PALM BEACH — Police have identified a man whose body was found in a parked car in the Waterfront Clematis parking garage on Banyan Boulevard in downtown West Palm Beach.
Robert N. Wyner, a Barclays Realtor, was reported missing and endangered by Palm Beach Police earlier this week.
http://www.palmbeachpost.com/news/crime/police-id-palm-beach-realtor-as-man-found-2284601.html - 67k -
Hmmm…. I wonder if he was under some sort of inordinate amount of stress or something.
Hey Oxy….. how many times did your lying realtor lie?
My new neighbs are already looking around for a place to buy. This guy doesn’t even know if his job is long-term or not, but he loves the beach and sunshine…
I like and enjoy alot of things. I loved smoking cigarettes…. like 3 packs a day kind of love… but they’re not a good idea even though I think of smoking every day since I quit 12 years ago.
Your new neighbors aren’t too bright are they?
Ral….most of the people Ive met in the last few years are not very bright….guess it been affecting me lately
Met a guy today who is a cameraman on the Wendy Williams show….and also does video production and is producing his own comedy show..and rents a studio in Manhattan, he is looking to build an internet radio/video station…looks promising,
I loved drinking alcohol. A lot. My favorite was chilled, dry chardonnay… like a Far Niente or a Cake Bread. Yummy. I could go through a couple of bottles in a single night. I quit 8 years ago. In the first month alone, I lost 25 pounds and saved around $500. Restraint is a good thing.
Nobody could have seen it coming!
Jon D. Markman
Negative news = more Fed action
With the disappointing jobs report and some other worst-than-expected data, the Fed’s position on no more QE is one that I doubt will hold.
WSJ Blogs
MarketBeat
WSJ.com’s inside look at the markets
April 9, 2012, 10:48 AM
Here’s the Pullback; Can Bernanke Save the Day?
By Steven Russolillo
Friday’s downbeat jobs report is taking a toll on markets this morning. Stocks are down, crude oil is slumping and copper is declining amid concerns about slowing economic growth.
The Dow is off 140 points, or 1.1%, to 12919, its first drop below 13000 since March 13. The drop tacks on to last week’s 1.2% decline, its biggest weekly fall of the year.
The S&P 500 is down 13 points, or 1.2%, to 1381; financial and industrial stocks are getting hit the hardest. The tech-heavy Nasdaq Comp drops 39 points, or 1.3%, to 3041.
Stock investors are grappling with two key issues. Another round of potential stimulus from the Fed was “placed on indefinite hold” early last week after the Fed minutes, says Bruce Bittles, chief investment strategist at R.W. Baird. Couple that with the weak jobs report and investors are fretting the economy is slowing and there’s a chance the Fed may not do anything about.
“More worrisome is the fact that the weakening fundamental outlook is occurring at a time when the technical picture is deteriorating,” Bittles says, noting the diverging trends between the Dow Transports and Russell 2000. The number of stocks hitting 52-week highs has also contracted in recent weeks, he adds, which suggests the strength of the rally is diminishing.
Stocks aren’t the only ones getting smacked around this morning. Crude oil is down 1.7% at $101.54 and copper is down 2% at $3.72 a pound.
The stock market’s so-called fear gauge , the VIX, is also up 11 % to 18.55, its highest level in a month.
To be sure, the declines may not last long. Some investors are hoping Ben Bernanke, seemingly the market’s white knight these days, will step in and say something dovish tonight at an Atlanta Fed conference.
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It’s disgusting that investors have come to expect steady gains, or demand that Bernanke’s fed do something about it.
$749K won’t get you much in San Diego.
Andy Rooney’s Connecticut House Lists for $749K
4/5/2012 5:15:03 PM
The home of the late newscaster Andy Rooney has listed for $749,500. The 2,474-square-foot home is in Rowayton, Connecticut, a small community on Long Island Sound about 45 miles from Manhattan. Lauren Schuker has details on The News Hub.