Bits Bucket for May 16, 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.
About Me
Name:Ben Jones
Location:Northern Arizona, United States
To donate by mail, or to otherwise contact this blogger, please send emails to: thehousingbubble@gmail.com
PayPal is a secure online payment method which accepts ALL major credit cards.
Links
-
September 2025 M T W T F S S « Sep 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Photo Submission: hbbphotos@gmail.com
View the HBB Photo Gallery *updated 4/13/2008
Foreclosed Americans find way back to homeownership
NEW YORK (Reuters)
“When Jennifer Anderson’s family could no longer afford their mortgage and lost their home, she expected many years to pass before they would again become property owners.”
“But less than two years later, in March, they purchased a $297,000 house outside Phoenix, Arizona, after qualifying for a loan backed by the U.S. government.”
“FHA TO THE RESCUE”
“Much of the comeback wouldn’t be possible without help from the U.S. government, namely the Federal Housing Agency”
“FHA borrowers typically need a credit score of at least 620 and a 3.5 percent down payment. The FHA charges an upfront mortgage insurance premium of 1.75 of the loan (which can be rolled into the mortgage) and an annual 1.25 percent premium on the outstanding loan.”
My usual reaction to this type of thing aside, how could the Anderson family have a credit score even close to 620 in less than two years? I thought the credit reporting agencies were tightening their $hit up. Everyone is in on the scam. Beam me up.
http://finance.yahoo.com/news/foreclosed-americans-way-back-homeownership-041735462.html
FHA, the “Countrywide” of last resort.
What a f_cking mess.
Meanwhile, it seems anyone non-FHA has to go through the usual wringer:
Mortgage borrowers face litany of questions
http://www.marketwatch.com/story/mortgage-borrowers-face-litany-of-questions-2012-05-14
“Borrowers who have recently applied for a mortgage know how thorough lenders are now in documenting a person’s finances and ability to repay.
A big reason lenders are being careful is that they fear they’ll have to buy back loans from Fannie Mae or Freddie Mac if proper underwriting standards aren’t adhered to and the loans go bad after being securitized by one of the government-sponsored enterprises, Donnelly said.
For consumers, this means heightened scrutiny, more paperwork to get to closing and unexpected questions. To the average borrower, the questions can feel almost comical. ”
——–
Lenders are now asking for college transcripts, divorce decrees, or proof of buying a car in cash. When I was applying, they told me they were looking for “hidden money,” and they didn’t like complex transactions.
I highlighted a phrase in bold. It was reported on HBB that Fannie and Freddie were doing forensic accounting and shoving bad loans back down the originator’s throats. But what good does it do to shut down the bank lending if FHA just picks up the slack?
However, that 3% of the loan in FHA fees will come back to bit the homeowners. It adds up to something like $250 a month onto the payment.
I bought with a non FHA loan. Had to give income tax filings for two years, a pages of a family trust, all bank accounts with all pages including boiler plate crap, all conditions of any retirement income, all statements showing were money came from or was transferred to, six appraisals of the property were not enough, needed two more days before closing, etc and I put down one third of the appraised value of the property. Thirty days after closing the loan was bought by F&F.
I bought with a non FHA loan. Had to give income tax filings for two years,
I am pre qualified for a loan and had to supply 2 years of IRS filings, 2 months of checking account , 2 months of savings accounts and 2 paycheck stubs. I have done this twice and will need to do it a 3rd time if the Shortsale goes through before I have to leave my rental, been given 60 days to quit. Time is almost up. I go to look at another rental next week and If by June chase is still not approving the 2nd mortgage I will rent another place and withdraw my offer.
really does not matter to me just though I could buy for less than renting ( over the next 10 years) but if prices keep going down which they may then my rent verus buy cost may not be correct?
I really don’t know? look a APA and other commodity stocks they are getting wacked more deflation ahead ?
I bought with a non FHA loan. Had to give income tax filings for two years, a pages of a family trust, all bank accounts with all pages including boiler plate crap, all conditions of any retirement income, all statements showing were money came from or was transferred to, six appraisals of the property were not enough, needed two more days before closing, etc and I put down one third of the appraised value of the property. Thirty days after closing the loan was bought by F&F.
I bought a modest 3/2 ranch house in 2003 that was priced at 2.5 x the area’s median income for college graduates, and I put 40% down; they didn’t even need an appraisal. Total closing costs were roughly $1,400.00, and I bought down the interest rate too.
Lenders are now asking for college transcripts, divorce decrees, or proof of buying a car in cash. When I was applying, they told me they were looking for “hidden money,” and they didn’t like complex transactions.
What about the birth certificate? I mean, come on. How will they know that I wasn’t born in Kenya?
My wife had to show her green card when we applied for our mortgage. I did not have to provide proof of my US citizenship though
mine didn’t ask for any of that stuff … yet
“Lenders are now asking for college transcripts, divorce decrees, or proof of buying a car in cash. When I was applying, they told me they were looking for “hidden money,” and they didn’t like complex transactions.”
I get why they might want proof you graduated from college - not graduating might result in your abrupt departure from your current job - though I am less sure why they need a transcript. I get why they want proof you bought your car with cash - if you didn’t actually do it, you have more debt than you are confessing to, though a quick look at your bank statements should be enough to be sure you don’t have other debt. I get why they want a divorce decree - if you owe alimony or child support that is a big drain on your finances, though, again, checking out the bank statements should be enough to cover it.
What I don’t get is why they care about “hidden money.” If you have more money than you are telling them about, it makes you more eligible for the loan, not less. Perhaps they want to know about other accounts in case they have to sue you for the balance after a foreclosure (in a recourse state). But what good will that do? You can just move the money elsewhere after you take out the loan.
Do you have any idea why they wanted to know about hidden money? Did they really mean hidden debts?
I bought my house from Fannie as a foreclosure. They paid 3.5% of the purchase price towards closing costs. I used that to pay all regular closing costs and had enough left over to buy down the mortgage all the way down to a low, low 2.25% on a 15 year. In addition, I put less than 20% down and didn’t have to pay PMI and there was no appraisal fees either. Foreclosure is definitely the way to go.
I got my mortgage from one of the large megabanks. I was never asked for college transcripts or proof of buying a car with cash or anything silly like that. What was asked for was 3 years of tax returns, last 3 month statements of bank accounts and retirement accounts and proof of what I was paying in rent for the previous 12 months. I just gave them the name of my landlord for that. That was about it. Pretty straight forward and relatively smooth transaction. And fast too, less than 30 days to close.
I was a little surprised how easy the whole process was, after reading many similar stories about lenders asking for references of your kindergarten teachers. My FICO is in the high 700s, I have no debt to speak of other than credit card balances which are paid off in full every month and my income is well into 6 figures. PITI is about 15% of gross income so I guess that meant less scrutiny from the underwriters?
If you’re well qualified, the process is very simple/easy. I closed on my house 2 years ago, and re-fied for a lower rate this year. It was laughably easy; the lenders were falling all over themselves to make the loan.
The problem is, if you have a ton of debt, no verifiable income and a 400 FICO, it’s not going to happen for you.
In other words, a normal (NOT TIGHT) lending market. How anyone can call 4% mortgages “tight” shows how out of touch most people are.
and proof of what I was paying in rent for the previous 12 months. I just gave them the name of my landlord for that. ”
oh yea this too almost forgot I will have to provide landlord history if the short sale goes through and the loan accually goes through.
Did they really mean hidden debts?”
yes
Lots of people who walked early are now buying new homes 2-3 years later. It is a big part of the market today.
Is this a great country, or what?
I’m gonna go with “or what”. I know people barely 3 years out of bankruptcy AND foreclosure who’ve bough again. Seems fair to me. /sarcasm
We need to get it out of our heads that the PTB are interested in “fairness”. Right now, reinflating the housing bubble is job #1.
or they buy and THEN walk like in the case of the short sale I’m trying to buy.
This is common happned last recession. I don’t know what happens to buy and bailers ? Probably nothing.
Why are people surprised? Catering to those relatively recently foreclosed is a HUGE market (lots of people fall into that category).
The lenders today need to find any possible buyers to help absorb the distress out there.
I thought the credit reporting agencies were tightening their $hit up.
I have finally capitulated to the belief that they will take us headlong into the credit collapse wall before they let market forces take control again. I believe most of us here have been waiting for the return of capitalist market forces but people might want to consider what it means to them and their decisions if those forces are never allowed to come before the wheels fall off the bus.
David Stockman on Crony Capitalism (less than 3-min)
http://www.youtube.com/watch?v=vb92Thfq41Q
“The only thing that came out of 2008 was a stabilization of these giant wall street banks. Nothing came out of 2008 that really helped mainstreet. Nothing came out of 2008 that addressed our fundamental problems that we’ve lost a huge swatch of our middle class jobs. Nothing came out of 2008 that made financial discipline and fiscal discipline possible.”
David Stockman, former Director of the Office of Management and Budget (1981–1985).
Well there we have it!
I think that David Stockman could be an ally going forward. The guy is a real truth-teller.
I think that David Stockman could be an ally going forward. The guy is a real truth-teller.
He comes off as reasonable and honest as does Elisabeth Warren. However, it’s going to take more than honest, gentle folks to rid us of this financial oligarchy. A former hardcore military general will likely provide the needed backbone.
A former hardcore military general will likely provide the needed backbone.
Or, perhaps, Joe Sestak. He’s the guy who took down Arlen Specter in the PA 2010 Senatorial primary. He’s a retired rear admiral who’s itching to get back into politics.
Sestak used to represent PA District 7. My folks’ former Congressman, and they really miss him.
Or, perhaps, Joe Sestak.
I’ll google him tonight. Thanks!
The game of the credit reporting agencies is to tear down the good credit risk so that you can charge them more on loans and quickly build up the poor risk so you can get them back into the game.
What that old American saying? “FU, I got mine?”
When the wheels come off, is it better to be mortgaged or to be renting?
Possession is 9/10ths and all that…
Jennifer Anderson needs to be taken to the tree of woe.
She’s the current clueless dumbass that will be whining and boo-fawking-hooing 3 years like the victim she is. And the GovCorp media will be right there orchestrating the drama for the public.
Had enough?
and we get all pissy and angry when a TBTF bank (JP Morgan) makes the same mistake twice.
obama’s policies for this country are no different from jamie dimon’s policies for jp morgan.
split and double down…full steam a head baby!
party on wayne!
Uh, no.
you’re right…you convinced me.
my bad.
article says FHA is 30% of the market.
It’s more like 90% if you include FHA, VA, and GSEs.
i’m really surprised it’s been sustainable for this long.
mind boggling.
GSE’s are NOT the same as FHA. When I was applying for my mortgage, the bank told me that they needed all the documents in official-looking .pdf format to please Fannie, not themselves. Fannie has to be very picky about the loans that they buy now, because the loans need to be good enough to support the toxic waste they bought in 2009. All those sob stories you hear on the news are about pre-2010 loans.
they are same in my context.
backed by the future toil of our children and grandchildren.
they are same in my context.
The FHA is the facilitator transferring ownership of “illiquid assets” that are held by the investment banks to the taxpayers; the slow motion bailout.
The GSEs currently have higher standards.
well hell…i reckon the GSEs are doing God’s work.
nevermind.
article says FHA is 30% of the market
and all cash buyers make up almost 30% here in the Bay Area.
Add nonexistent inventory to the mix and it looks like we’ll be renting for the indefinite future.
“FHA borrowers typically need a credit score of at least 620 and a 3.5 percent down payment. The FHA charges an upfront mortgage insurance premium of 1.75 of the loan (which can be rolled into the mortgage) and an annual 1.25 percent premium on the outstanding loan.”
Are there any statistics documenting default rates on recent FHA loans compared to those for other lending sources?
“But less than two years later, in March, they purchased a $297,000 house outside Phoenix, Arizona, after qualifying for a loan backed by the U.S. government.”
So much for meritocracy.
Unless that house is in Scottsdale, there are few places outside of Phoenix where a house is worth almost $300k.
Entirely predictable.
If you did things the “old school way” these people would be out of the house buying market for 10 years. For some people that derive their income from the new/used house market, that would be a disaster.
So lobby the government to keep them in the game.
True, but look at it from the PTB’s perspective: They want as many buyers as possible. If that means ignoring past indiscretions, so be it, as far as they are concerned.
One of my biggest concerns in this debacle….having to compete again with the same buffoons who got us into this in the first place. And still willing to pay too high prices. All backed by the American taxpayer.
Yesterday Overtaxed wrote this:
I know this is an unpopular view, but, the first thing we have to stop doing is subsidizing/encouraging more children. Overpopulation is directly related to the relative incentives for bearing children (in 1st/2nd world countries) and lack of birth control (in 3rd world countries).
I generally agree w/that position because it falls into personal responsibility. But when I read this from the latest John Mauldin Newsletter I found the facts pretty eye opening. Below are excerpts from the new book, The Clash of Generations, written by economist Larry Kotlikoff.
From Chapter 3: Living beyond Our Children’s Means
Doing Ponzi Proud
The $30,000 combined Social Security, Medicare, and Medicaid payment that is being handed, on average, to each of today’s elderly equals almost two-thirds of per capita GDP. By the time the boomers are fully retired, the figure could exceed 100 percent of per capita GDP. Whoever said America isn’t a welfare state? It is a welfare state, but the welfare is for the elderly, not the poor. While our two parties argue over the haves and have-nots, we are blind to what the nows are doing to the laters.
…the poverty rate among the elderly in 1960 was 35 percent. By 1995, it was down to 10 percent. That’s a fabulous achievement, and we give Social Security, Medicare, and Medicaid full credit for achieving this success.
But the achievement was not a free lunch. At the same time poverty rates were dramatically lowered for the elderly, they were little changed for the young. Today over one in five children live in poverty. Among minorities, the child poverty rate is about one-third and 35 percent live in “food insecure households.” Back in 1960, one in four children lived in poverty. So we’ve made some progress, again thanks in large part to Social Security, Medicaid, and Medicare (which covers disabled children), yet we’re sitting here today with 13 million impoverished children. Another 16 million children live in households with very low levels of income, albeit that exceed the poverty threshold. To be clear, we consider the current distribution of wealth, income, and consumption to be outrageous. When some children go hungry while others are whisked to summer camp on the family private jet, you know the maldistribution of income has gone too far. Yet how to reduce inequality is open to debate.
I think here he shifts the focus from children to young working adults. I find it hard to believe unemployment taxes are young adults’ most oppressive challenge, but he’s right about the Ponzi hitting that and the next generations pretty hard.
But our main point here is that most of the massive postwar redistribution from the young to the old has not been from rich young people to poor old people. It has mostly been from middle-class young people, who pay high employment taxes, to middle-class old people who receive them. And that redistribution has left the young with a fiscal sword of Damocles suspended over their heads. Furthermore, that redistribution has cut our national saving rate from 15 percent to 0 percent. It has cut our domestic investment rate from 15 percent to 4 percent, and it has contributed to the lack of real wage growth, which marks the death knell of the American dream.
One of the big reasons that children are encouraged by the government is because of the SS burden; if we have less people in the next generation than we have in the current, the entire ponzi starts to fall apart. As long as the base of “contributors” exceeds that of those collecting benefits, everything moves along much more smoothly. That’s the real “crisis”, IMHO, with SS and other entitlements over the next 20 years; the baby boom is retiring and the generation that followed them was not as large.
“I find it hard to believe unemployment taxes are young adults’ most oppressive challenge”
I would agree with that; but, I’m not sure why unemployment taxes are called out here. Unemployment is not the same (at least, I don’t think so) as SS taxes. SS taxes are, for many people, the majority of their withholding (remember, about 50% of this country pays no income tax at all, but everyone pays SS taxes).
Your thinking seems fundamentally flawed, as it confuses U.S. population growth (currrently flat if not negative) with world population growth (still rising).
Or did I misunderstand your post?
Hold on a second, the US population growth is not flat…just google “us population” for the current graph
unless you meant the population growth velocity, in which you are correct–it is flat if not declining. Just ignore me.
- I believe the low U.S. birthrates are still offset by net immigration, but I haven’t recently checked.
- My main point is that if you want to control world population, you will have little success by targeting ‘incentive reductions’ for childbirth on the U.S. The high population growth countries are in other parts of the world besides the wealthy Western nations.
“My main point is that if you want to control world population, you will have little success by targeting ‘incentive reductions’ for childbirth on the U.S. The high population growth countries are in other parts of the world besides the wealthy Western nations.”
I agree that in aggregate, we can’t solve this problem alone. Doesn’t mean that we should keep policies designed to make the problem more severe. Removing incentives for children, and, at the same time, shifting the national attitude (it’s not cool to have 5 kids by the time your 25) would go a long way. I would anticipate this coming from the green movement; buying and driving a H2 Hummer is not even close to the pollution that adding just a single additional human being to this earth will cause.
at the same time, shifting the national attitude (it’s not cool to have 5 kids by the time your 25)
Oh come on, other than illegals and certain fundie cults, who has that many kids anymore? And judging from my own kids and their peers, I would say that few of them will ever have any kids at all.
who has that many kids anymore?
I have several coworkers who do. They’re all 40-ish.
Hey drumminj, your handle doesn’t link to the latest Joshua Tree; I get 404 on that link now… Tips for where to find the latest? Thx!
Hey drumminj, your handle doesn’t link to the latest Joshua Tree; I get 404 on that link now… Tips for where to find the latest? Thx!
Sorry, PiC — I changed ISPs when I moved (no fios at new place). I’ve not yet tried to figure out how to host on Comcast….I can email it to folks if they’re interested. Link on my name should be my email addy now
There are more people in the workforce now than when the “boomers” joined.
The poverty statistics are brought to you via the CPI.
“As long as the base of “contributors” exceeds that of those collecting benefits, everything moves along much more smoothly.”
And yet having a larger generation doesn’t necessarily mean more “contributors” with youth unemployment so high.
Consider also youth underemployment, and the diminished lifetime earnings resulting from graduating into the 2008-2025 Greater Depression. Also the millions of illegal Sons of Aztlan not contributing to SS/Medicare…
…who are also taking those jobs that were traditionally done by teenagers and young adults.
“Also the millions of illegal Sons of Aztlan not contributing to SS/Medicare…”
Actually, most are, via stolen SS numbers. The trick is going to be denying their claims to a SS check in the future. And you know they are gonna demand one, claiming that they paid in, even if it was done fraudulently.
Speaking of jobs for Geezers, they don’t have greeters at WallyWorld anymore. What are we all going to do for work when we’re 75?
“The trick is going to be denying their claims to a SS check in the future.”
I’m pretty sure that anything they think they are entitled to will go to the person whose SS number they stole. Assuming the whole thing doesn’t get invalidated long before.
Actually, most are, via stolen SS numbers.
I always wondered about this. If someone was working under my stolen SSN wouldn’t I just get a nice bonus when I retire?
“I know this is an unpopular view, but, the first thing we have to stop doing is subsidizing/encouraging more children.”
Here is an even more unpopular view:
Don’t blame the rich countries, including the U.S.
Why are rich nations’ birthrates in free fall?
By Elisabeth Badinter, Special to CNN
updated 12:04 PM EDT, Tue May 15, 2012
(CNN) — The phenomenon of women choosing not to have children is afflicting the industrialized world in alarming numbers. Childlessness is steadily becoming more widespread, particularly in English-speaking countries but also in Japan and in much of Europe. In 20 years, the number of childless women in many countries has doubled.
In the lively debate that has followed the American publication of my book “The Conflict,” much has been said and written about the pros and cons of breastfeeding and mothers staying at home. But this larger issue receives scant attention.
In the United States, where fertility rates remain high, 20% of women are childless, which is twice as many as 30 years ago. There are an estimated 18% in England, 20% in Italy, and between 21% and 26% in Germany. We do not have figures for childless Japanese women, but we do know that Japan has one of the lowest fertility rates in the world, along with Germany, where it hovers at 1.3 children.
…
The article I mentioned above got into the explosion in longevity.
From Chapter 2: Catastrophic Success
Centenarians, Left, Right, and Center
As one example of the lurking danger of the-really-long-retirement problem, consider America’s fastest-growing population. We’re not talking illegal immigrants. We’re talking centenarians—those aged one hundred and over. Today there are 79,000 members of the old old-old. By 2050 (when today’s newborns are middle aged), this figure will reach 601,000. That’s enough centenarians to fill up Washington, D.C. We can imagine movies being remade to suit an older demography, such as Butch Cassidy and the Sunda nce Centenarian. Coming soon.
Next, contemplate a much scarier vision: the annual health care costs, circa 2050, of these projected 601,000 residents of the new Century City.
My fil retired at 55. He was in the service for a while. Let’s say he got out by 25 and still got 30 employment years in. He still may have to possibly fund 40 years or more of retirement on 30 years of work. I can tell you in his mid 80s, he’s still pretty healthy so I think it’s possible. He had money from other sources besides the fruits of his own labor but most people like him will need to fund as many years of retirement as they had in the work force. Remember society has already been taxed for 12 (or more?) years of their education. How is this plan sustainable? It’s not. Even if we could keep our head above water w/this spending there is nothing left over for investment and growth.
In the United States, where fertility rates remain high, 20% of women are childless, which is twice as many as 30 years ago.
Guilty as charged, your honor!
It’s NOT the taxes, it’s the stagnate wages and a real inflation rate that’s in the double digits.
Again, this tells it all: http://www.halfhill.com/inflation.html
Use the Options settings.
Also, this article attempts to shift blame to the raised quality of life for the elderly.
hoc ergo, propter hoc.
Remember that they also paid into the system.
The REAL problem is stagnate wages and hidden double digit inflation.
It’s about the stark reality of the numbers. The system needs far more to keep it going than it did when people paid into the system for more years than they took back, and that’s without the constant errosion of the value they put in via inflation or the lack of jobs.
You can chose to add emotional attachments, pro or con, to any argument but it doesn’t change the underlying reality of what we’re facing.
File this one under what can’t go on forever, won’t.
but it doesn’t change the underlying reality of what we’re facing. which is that a single-payer health-care system would solve much of our problem.
Don’t Blame Budget Problems on the Safety Net
http://economistsview.typepad.com/economistsview/2012/05/dont-blame-budget-problems-on-the-safety-net.html
It’s hard to say this enough. The long-run budget problem is a health care cost problem, “which affect costs for private-sector care as much as for Medicaid and other government health care programs”:
Federal spending on low-income programs has gone up considerably in recent years, a development discussed at a recent House Budget Committee hearing. A new CBPP analysis examines why and explains that low-income programs outside of health care are not a factor in our serious long-term budget problems. Here’s the opening:
Several conservative analysts and some journalists lately have cited figures showing substantial growth in recent years in the cost of federal programs for low-income Americans. These figures can create the mistaken impression that growth in low-income programs is a major contributor to the nation’s long-term fiscal problems.
In reality, virtually all of the recent growth in spending for means-tested programs is due to two factors: the economic downturn and rising costs throughout the U.S. health care system,
In reality, virtually all of the recent growth in spending for means-tested programs is due to two factors: the economic downturn and rising costs throughout the U.S. health care system,
One of the problems with the U.S. health care system is that we pay a lot more for the same services and procedures than elsewhere in the world. IMHO, this has to more than a little to do with greed.
For the umpteenth time, Gen X & Y FAR outnumber the boomers.
Any analysis that does not included this fact is a LIE.
STOP buying into the “SS and Medicare are broke” bullcrap!
The financial industry propaganda is starting to get resistance. The “broke” meme is, well, starting to break.
Gex X&Y (1966-1994, 28 years) - 112M, 4M/year
Boomers (1946-1965, 19 years) - 82M, 4.31M/year
The Boomers are smaller, but only because the number of years is also smaller. The 2 generations (X/Y) following the boomers are about 10% smaller than the boomer generation.
So, yes, X/Y outnumber the boomers. But, that’s not really the point, as the boomers retire, there’s more of them retiring than there are X/Ys to take their place in line to pay SS. That’s the real issue here.
Gen Y alone outnumbers the boomers.
“Today, there are approximately 80 million Echo Boomers[Gen Y].
“Seventy-six million American children were born between 1945 and 1965 [boomers] wikipedia
And many of those boomers are already dead.
Overtaxed has it dead right.
http://www.census.gov/prod/cen2010/briefs/c2010br-03.pdf
Page 3. Look at the shape of the population curve.
There are lots of implications to this shape as the population ages.
Ontario cottage country feels drag of eurozone crisis:
http://www.thestar.com/business/article/1178946–ontario-cottage-country-feels-drag-of-eurozone-crisis?bn=1
Between 2005 and 2007, there were roughly seven buyers for every two cottages for sale in Ontario. Cottage prices were climbing faster than the 5 per cent average growth in Canadian house prices, says Soper. That resulted in Toronto-style bidding wars on many of Ontario’s prime lakes, especially within a two-hour drive of the city.
But the 2008 recession knocked the sizzle out of the beer-and-barbecue market. Demand eased and, in many cases, properties were just pulled from the market by cottagers who didn’t have to sell, and certainly weren’t keen to at a discount.
Heading up to my families cottage tomorrow: I’ll try and find out from the neighbours/locals what is going on in the local market. I agree with this, nothing major positive or negative has happened in the Parry Sound market the last five years. For reference, we are 2.5 hours north of Toronto, Ontario. Cheap property taxes, great local gov’t. Happy Victoria Day to all Canucks on this blog!
“That resulted in Toronto-style bidding wars on many of Ontario’s prime lakes, especially within a two-hour drive of the city.”
That two-hour drive becomes a 5 hour drive Friday after work.
Happy V-day to you too.
Enjoy the long weekend. Remember, they aren’t making any more lakefront!
Heading up to my families cottage tomorrow: I’ll try and find out from the neighbours/locals what is going on in the local market. I agree with this, nothing major positive or negative has happened in the Parry Sound market the last five years. For reference, we are 2.5 hours north of Toronto, Ontario. Cheap property taxes, great local gov’t. Happy Victoria Day to all Canucks on this blog!
And this American would like to thank Chris and his fellow Canadians for the hospitality I experienced while bicycling through Ontario’s cottage country back in 1980. Much appreciated and still a great memory!
The article talks about cottages at $400K - $1M.
That’s not what comes to my mind when someone says “cottage.”
“Ontario cottage” refers to a style, not a size of house. Also implies rural.
When you read “Ontario cottage” just substitute “country vacation home” in your head and you will be getting a better feel for the it. Of course, some of the houses in that style are now in larger cities because they cities grew around them or they were built to fit in with the architecture of growing neighborhoods, but my guess is those are not the ones that people are buying as second homes.
I love the style.
The quaint cottages are steadily being torn down and replaced with behemoths. After all, how can you really enjoy all that nature without a media room in the basement?
When I see the 70″ TVs at Sams Club I wonder:
Who buys these $3000 monsters? A: People armed with credit cards.
Where do they set these things? A: in the media room in the basement. AKA: The Man Cave
Too sad. My gf’s neighbor on Black Lake just put one of those rooms in the basement. Getting away isn’t what it used to be. He won’t have much time to use it in the winter because he spends most days keeping the 1 mile lane open.
“keeping the 1 mile lane open.”
Just park at the end and X-C ski in hauling a sled full of groceries (or whatever). We used to carry kegs into cabins that way. Now you’ve been in “nature” for a nice ski, not used the plow and can watch some 70″ HDTV. Next “problem”!
Collection chasers can earn as much as 31% of the shakedown…err, recovered funds. I wonder what type of connection it takes to get yourself one of these positions.
Taxpayers Fund $454,000 Pay for Collector Chasing Student Loans
By John Hechinger | Bloomberg – Tue, May 15,
Joshua Mandelman made $454,000 in a single year as a student-loan debt collector — more than twice the pay of the U.S. secretary of education.
His boss, Richard Boyle, chief executive officer of Educational Credit Management Corp., received $1.1 million in 2010, including commuting expenses from his ranch in New Mexico. Five other managers each took home more than $400,000.
ECMC, a Minnesota nonprofit group, owes its success to an 18-year-old agreement with the U.S. government. The company charges fees to borrowers and earns commissions from taxpayers — totaling as much as 31 percent — when it collects on defaulted student loans. Those rich rewards, which are approved by Congress, are sparking criticism that ECMC and similar collection agencies are reaping a bonanza from former students’ pain.
I wonder what type of connection it takes to get yourself one of these positions.
It’s easy, but realize that it’s not an hourly or salary job; strictly commissions in the private world of collections.
It’s easy to get a commission job in low-level collections, that’s for sure. But it sounds like these guys have a sweetheart deal on this one. I bet the jobs go to friends, relatives, and business associates’ friends and relatives.
These jobs use an automated dialer, the “collections agent” has a phone headset and a computer as the auto dialer trolls the database for a live human answering the phone. When the phone is answered, the call is routed to the next available phone rep and the delinquent borrower’s info pops up on their computer giving them less than 5 seconds to review the borrower’s information and start their collections pitch.
The collections staff in an adjacent department at TARP bank where I worked had very fast rates of burnout and high rates of turnover. The $400K collections agent in this article is the rare exception, most Lucky Duckies working in this “industry” take home $35K or less…
See also article on SmartMoney (Ditech - People are smart!) Grad School: Higher Degrees of Debt
Highlights of the article are that grad school debt accounts for 1/3 of the trillion dollars of total student loan debt, average grad degree debt is now $43,524, and that starting in July, Stafford loans for grad students will no longer have the interest subsidized by Uncle Sugar while they are enrolled.
Let’s hear the REIC cheerleaders spin this one about “household formation” and “pent up demand”. LOOSERS!
All school budgets except for one passed in Onondaga County. The towns I zeroed in on passed 2 to 1. A few of the lower income districts did announce budgets with layoffs. I know our district reports its cutting where it can but then they went on a building spree w/new windows, roofs, corian counters in the bathrooms, expensive new benches out in the bus area so I just don’t get the feel of penny pinching.
The second highest taxes in the nation most of which are school taxes and the news trots out voter after voter who say they don’t care how much it costs, they’re going to support our schools.
I’d say the feeling of life as usual is alive and well in CNY.
Cue up 2Banana. And he’s right on this issue.
I see a spike in new listings in upstate in the last few days. Maybe the realtor crime syndicate batches them all at once rather than post new listings individually.
While perusing , once single thing jumps off each listing……. PROPERTY TAXES. Words and numbers cannot describe the massive, massive increases EVERY year since 2008. We’re talking double digit increases 3 years in a row. It’s true. It’s reality. If I were a home-debtor in upstate, I would be doing anything I had to do to exit. And I mean anything.
Words and numbers cannot describe the massive, massive increases EVERY year since 2008. We’re talking double digit increases 3 years in a row. It’s true. It’s reality. If I were a home-debtor in upstate, I would be doing anything I had to do to exit. And I mean anything.
Check out my post a couple down from here. Switch out “upstate” for “Austin” and you got the same thing goin’ on. Except that everyone wants to move to Austin, of course…
Austin has $15,000/year property taxes on an average middle class house?
Property taxes are very high in Texas. Not Upstate NY crazy, but they are high. My brother used to have a $70K house in Brownsville, TX and he paid about $2500 a year, so I could see a 300K house paying 10K.
My brother used to have a $70K house in Brownsville, TX and he paid about $2500 a year, so I could see a 300K house paying 10K
—————
That sounds a bit off. A $70k house should have property taxes around 1/2 that, especially in a ‘non-fancy’ area like Brownsville. Did he have an acre or so of land in addition to the house?
A $300k place would have property taxes around $6-7k.
Nope. I was shocked when I saw how huge that tax bill was. He was of course quick to point out that he paid no state income tax.
Fast forward to today: Sis lives in a 150K house in a Dallas exurb. Her tax bill is in the mid 4000’s. Doesn’t bother her though. She loves Texas.
There’s no income tax in TX which makes high property taxes not that bad relatively speaking.
I live in Washington state. We have no income tax here either (although the Democrat governor has devoted every waking hour of her 8 years in office implementing one, with no success thankfully).
Take a house in WA, then compare the same house a few miles away across the state line in Idaho, property tax will be 1.2 as much in Idaho. Sounds great! Well sure, except Idaho has a 6% state income tax. But WA has a higher sales tax so you still come out ahead in WA. Not really, Idaho taxes food while WA does not.
Only difference is which way the state takes your money, the amount tends to balance out no matter where you live.
Meant to type 1/2 as much not 1.2 as much.
Fast forward to today: Sis lives in a 150K house in a Dallas exurb. Her tax bill is in the mid 4000’s. Doesn’t bother her though. She loves Texas.
———
You are right. I had figured tax rates were pretty similar throughout the metroplex, and that mine in one of the nicer suburbs would be on the higher end. Nope. In the middle /lower end.
I don’t mind high property tax rates either, as I think they are more fair than income taxes. If I want to pay less property tax, I can move to a cheaper house. Can’t really do that with income taxes [without cheating], because some base level of income is required. A base level of housing is required too of couse, but $150k is slightly below middle, not actual low end housing in N Texas.
And in ANY school budget - about 80% of the costs are for salaries/benefits/pensions.
Windows, roofs, corian counters in the bathrooms, expensive new benches, etc. are a blip. They won’t even fund ONE teacher’s pension.
We don’t get that stuff in our district. They also did away with pensions for new hires a few years ago.
I understand that. My point was they’re not penny penching even where they can. I dont’ want to hear the numbers they’re wasting are small so why not. Small expenditures add up over time. Perhaps why we’re here in the first place.
People’s school taxes are going up this year. Did they need to? Or would all those little extras have made the difference?
And in ANY school budget - about 80% of the costs are for salaries/benefits/pensions.
And in ANY school budget - about 80% of the costs are for salaries/benefits/pensions.
Teachers’ salaries, benefits, and pensions are cheap compared to paying for the same for prison guards.
Oh puleeez.
$10k a year in property taxes in an area with sub-minimum wage, off the books jobs with no benefits because “teachers are cheap”??
If I were a home-debtor in upstate, I would be doing anything I had to do to exit. And I mean anything.
I go on about it here because most people I know feel like those interviewed. I just have to mentally check out. I feel like I’m in bizarro world.
The second highest taxes in the nation most of which are school taxes and the news trots out voter after voter who say they don’t care how much it costs, they’re going to support our schools
Interesting, voters out here in the Centennial State sure don’t feel that way. They definitely care how much it costs.
We had an initiative on the local ballot to get per pupil funding back to where it was 2 years ago before some drastic cuts (to get back to just under $7000 per pupil, which would still be among the lowest in the nation). It would have added $100 a year to the average property tax bill.
Needless to say, it went down in flames. Per student spending remains in the low $6000 range. The district might have to start charging for riding the school bus.
Sounds to me like a lot of the spending problems in other places is self inflicted, with voters happily approving tax increases.
The radio man said the other day that Fort Collins is laying off all foreign language teachers except Spanish. French, German, Latin, et cetera will now be “taught” by software…
Computerized teaching is the future of education.
In fact, it’s our only hope.
Attitudes toward education in this country are nothing short of destructive.
That was done a few years ago in Loveland, except there was no money for the software and computers either.
That was done a few years ago in Loveland, except there was no money for the software and computers either.
Not much tall cotton in Loveland, CO?
Not much tall cotton in Loveland, CO?
I would chalk it up to overall stinginess than lack of money (according to money cnn com the median family income is $74,734 ).
Coloradans in general really hate taxes, which is why we passed TABOR years ago.
…(according to money cnn com the median family income is $74,734 ).
That’s tall cotton alright. Surprising that higher income folks (educated?) wouldn’t support their local schools.
“Banner ad atop the HBB now: Join the fight and get a free bumper sticker “I don’t believe the liberal media”
The website it links to, tellthetruth2012 dot org is owned by the Media Research Center, founded by L. Brent Bozell III, formerly of the Parents Television Council and the board of the American Conservative Union.”
Calling one person “Brent Bozell” is cruel enough, but calling 3 people Brent Bozell is surely a crime against humanity.
The ads displayed on this site are usually for REIC related things or investments. Since my google android phone is spying on me, all my visits to the Drudge Report and sites it links to may be responsible for cookies that generate these type of ads.
And on a related note, most of the libtard bedwetters I know who criticize Rush Limbaugh, et cetera, never actually listen to him or read the trash Drudge links to. Since I do, my criticisms of that are actually based on my developing my own opinions of the right wing circle jerk of misinformation that is Drudge, Limbaugh, Fox.
And despite my criticism of Drudge, yes they do sometimes post good articles, this one discussing how High Fructose Corn Syrup makes people stupid (surprise, surprise):
http://ca.news.yahoo.com/sugar-dumb-us-scientists-warn-190918006.html
High Fructose Corn Syrup makes people stupid
“The average American consumes more than 40 pounds (18 kilograms) of high-fructose corn syrup per year, according to the US Department of Agriculture.”
There is no high-fructose corn syrup in Brazil except in some imported foods from the USA. (like Heinz Ketchup which I like better than Brazilian ketchup)
I don’t believe the Corporate owned media.
Yes, but regardless of whether you believe, do you feed the beast with your money? Comcast Cable? Quest/CenturyLink? Dish Network?
The squad pays for none of the above, only beast we feed is to Verizon for unlimited text and data plan. The Denver Public Library provides all entertainment…
Here in Tucson, the fastest Internet comes via Cox Communications, which is the local monopoly for cable. And, boy, do they act like it. They’re more arrogant than Ma Bell at her worst.
We use a mom n pop ISP. Also, getting ready to pull the plug on Dish Network this summer.
“Liberal media”
HA! What an outright lie. ALL OF MSM is owned by just 6 corporations and corporations are, by definition, NOT liberal.
I sometimes think they allow the MSM to do “liberal” stories to hide the fact that they are corporate owned.
You better believe they do.
I posted the other day about how rents in Austin had exploded. Here is a recent article about that, and about how property taxes in Austin have exploded. Very interesting, possibly even to people outside of Austin:
http://austincut.com/2012/05/racing-towards-a-crash/
Racing Towards a Crash
By Brandon Roberts | Published: May 4th, 2012
In 2011, 41% of people here were spending more than a third of their income on rent. Travis County has a higher percentage of people below the poverty line than Texas, too. Housing is getting destroyed, leaving the poor with two shitty options: pay more and get less, or move out of Austin.
But poor people aren’t the only ones getting shoved out into the county. Middle class families are getting forced out in a slightly different way.
The numbers don’t lie: families with kids are moving out of Austin and into the suburbs. When the City threatened to shut down Central Austin elementary schools (Becker, Zilker, Dawson, etc.) it wasn’t only because of a budget deficit. The City looked at population projections for the near future. There simply aren’t going to be enough kids living in the city center to fill all those schools, while the schools on the outskirts of town are projected to be bursting at the seams with kids.
Families aren’t leaving because Central Austin isn’t a good place to raise a kid, or because those inner city schools suck. They’re leaving because they’re getting priced out of town. Property taxes have gone up by some huge percentages across Austin over the past decade.
…
Bill Oakey called me one morning urging me that Austin’s economy is setting itself up for a fall. He said that by getting rid of all these longtime, loyal tax payers and hoping to replace them with a young, rich demographic of “whiz kids,” we’re gambling everything. If these new ideal rich people don’t come fast enough, where will that leave the City financially? If taxpayers can’t take more increases, then the City, possibly the biggest employer in Austin, would start laying people off. This would take a huge chunk of money out of the local economy, forcing more businesses to lay people off. If this happened during a major slump time, like the summer, the effect could be much worse. That’s when the crash would start, Oakey explained. Once they can’t find enough rich people to come here. Oakey is convinced that all this development is creating a bubble, which is going to burst.
‘how am I supposed to look at their computer generated case studies, like the one called “South Congress Avenue In The Future,” a CGI photo of a wide-open S. Congress Ave. with no cars in the streets without laughing?’
South and east Austin used to be the cheap places to live. The developers, along with the city, ruined that. I left because of the traffic and falling quality of life. It’s only gotten worse since then.
‘Or maybe the joke’s on me and they’re predicting the future that I’m taking about: the one where they kicked everyone out and nobody else came.’
I remember when living “East of I-35″ was a bad thing. I guess it’s not anymore.
…then the City, possibly the biggest employer in Austin…
“There simply aren’t going to be enough kids living in the city center to fill all those schools, while the schools on the outskirts of town are projected to be bursting at the seams with kids.”
If the kids are in the outskirts of town (but still in town) then you change the lines that define the school districts and bus the kids to where the schools are. If that is too expensive, then make the limit for bussing 2 miles and those that use it get to pay a user fee. Cheaper than mothballing perfectly good schools and building new ones.
“There simply aren’t going to be enough kids living in the city center to fill all those schools, while the schools on the outskirts of town are projected to be bursting at the seams with kids.”
As I see it, raising kids in suburbia is about the same as pumping drugs and alcohol into them. Bored kids, parents commuting…
It’s either the city or the country for us. The in-between of suburbia does not compute.
“raising kids in suburbia is about the same as pumping drugs and alcohol into them”
Yup.
Stay-at-home mom fights new credit card rule
http://money.cnn.com/2012/05/16/pf/credit-cards-stay-at-home-moms/index.htm
Holly McCall, a 34-year old stay-at-home mother of two from Vienna, Va. …applied for a Target card last fall, she was denied.
She blames that denial on a recent Card Act rule.
…Aiming to protect consumers from racking up too much debt, the Federal Reserve now requires credit card issuers to consider individual income from applicants instead of household income.
As a result, stay-at-home parents who rely mainly on their spouse’s income have a harder time getting approved for credit cards on their own.
“The rule feels like a flashback to the 1950s because of the way women aren’t empowered financially. “It’s about fair and equal access to credit,” said McCall.
———–
I understand the complaints, but credit is not an unalienable right. If the homers can’t pay credit on their own, then why should they their have their own credit?
I guess there are ways around the rule. If the homer wants a credit card, get one in both names, get the spouse to co-sign, or just use a debit card. Or, if the homer wants to build their own credit, they can do it with a secured card (do they still have those?) against a checking account. Since raising children has value, the working spouse can “pay” the checking account to support the secured card.
There are ways to do it without taking credit risks.
“It’s about fair and equal access to credit,”
Interesting contradiction.
Cash is empowerment. Credit cards are a snare.
Welcome to corporate feudalism.
I’d just go take it out of our joint account w/the checking account plastic. Ha ha.
If there is none of those, than perhaps the banks have a point. I mean this is Target. We’re talking about charging consumables mostly. Do they really want consumables on revolving credit?
On that point my mil was reminiscing about having her 1st credit account to her favorite “better” department store. She said they didn’t charge interest. It almost sounded like lay away except you got to take the item home. I wonder what the criteria was for getting an approval for the card. I’m thinking this was probably in the early 40s when she came of age.
“The rule feels like a flashback to the 1950s because of the way women aren’t empowered financially. “It’s about fair and equal access to credit,” said McCall.
If my wife gets a speeding ticket I have to pay the fine. Do you think that’s fair, Holly McCall?
The real issus is that “household income” goes way beyond spouses. If grandma lives with you and has income of $600 a month, then her access to credit should be limited. You have no obligation to pay her credit card. She shouldn’t be able to get a card with a $10K limit based on your income. Same with an adult child still living at home. Now, I’m not positive that all the states are the same with credit cards and spouses. But you are considered a family unit for tax purposes, so it isn’t completely unreasonable to consider you a family unit for credit purposes. But credit cards are unsecured debt, so there is some sense in not granting credit to someone with no income. It isn’t like you can rely on the community property to get the money.
As for “building credit” with a secured card, that is completely irrelevant. Your credit score could be perfect, but if you have no income you can’t pay back debt. Using a secured card would allow a person with no income to spend money using only their own name, but it doesn’t change their income status.
If you try to “pay” the stay at home spouse for taking care of the house and kids, you are dealing with tax problems so epic, I don’t even want to think about them. Don’t even think about it.
If you try to “pay” the stay at home spouse for taking care of the house and kids, you are dealing with tax problems so epic, I don’t even want to think about them. Don’t even think about it.
+1 Especially the “pink” budget.
What is a “pink” budget?
What is a “pink” budget?
Really?
Yes. Really. What is a pink budget? And what does it have to do with my comment which was about taxes?
Yes. Really. What is a pink budget? And what does it have to do with my comment which was about taxes?
-1 Relax, you’re in the bits bucket Polly.
My wife does more than take care of the house and kids, and I was wondering what the her invoice might look like. Also imagine the workman’s compensation insurance, health safety and OSHA regulations?
Only Fast Pussy seems to believe Dimon was in the dark on the $2+ bn JPM trading loss.
May 16, 2012, 12:02 a.m. EDT
The real Dimon Principle
Commentary: Success leads to dangerous overconfidence
By Mark Hulbert, MarketWatch
CHAPEL HILL, N.C. (MarketWatch) — Following a winner is often a losing strategy.
That ironic result traces to what all too often happens to a winner after he wins: His success goes to his head, leading to overconfidence. Especially after several wins in a row, he becomes dangerously prone to doing something really stupid.
If that sounds like a good description of what happened at J.P. Morgan Chase JPM +1.29% , it’s because it is. After the bank emerged virtually unscathed from the 2008 financial crisis, it would have taken saint-like restraint on the part of CEO Jamie Dimon to not downplay luck’s role in that success and not overestimate his own genius.
Fast forward through his, and his bank’s, overconfidence over several years, and we shouldn’t at all be surprised by the multi-billion-dollar trading loss that now tarnishes his, and its, reputation.
…
How Dimon fooled himself
Jamie Dimon told the Harvard Business School Class of 2009 to fight self-deception — an easy trap to fall into. Then the rich and powerful J.P. Morgan chief went out and proved his point, writes Al Lewis.
There must be more to the JPM trade than meets the eye; why else would federal regulators have their underwear tied up in knots?
Cockroach theory: If you can see one cockroach, there are hundreds of others nearby you don’t see.
May 16, 2012, 9:45 a.m. EDT
Federal regulators to meet after J.P. Morgan trade
By Ronald D. Orol
WASHINGTON (MarketWatch) - A government council made up of bank and securities regulators that seeks to identify systemic risk issues plans to meet Tuesday privately, according to a Treasury official.
…
The “playas” on Wall St know exactly what they are doing at all times: robbing the rest of us blind.
Why? Because they can.
Why can they? Because WE LET THEM.
The sad part is that this country is going to have to feel a LOT more pain before the people demand real changes.
I guess the U.S. housing market recovery is more important to Wall Street than the intractable Greek debt crisis…
Wall St. takes a turn higher
Housing starts: Robust April, upwardly revised March
Stock-index futures point toward a bullish open as domestic housing data trump worries over Greece.
How is that Asian markets decoupling theory holding up against the evidence these days?
May 16, 2012, 4:14 a.m. EDT
Asia stocks dive as Greek political crisis deepens
Hang Seng Index, Kospi each shrink more than 3%
By Sarah Turner and Michael Kitchen, MarketWatch
HONG KONG (MarketWatch) — Asian stocks tumbled in a broad-based sell-off Wednesday as investors reacted to news that Greece’s political impasse would force new elections in the country by dumping equities, with Hong Kong and South Korean shares taking the biggest hit.
The Greek news overcame relatively positive U.S. economic data to send the Dow Jones Industrial Average to near a four-month low overnight, offering a negative lead for the Asia markets. Read more on Tuesday’s U.S. stock trade.
“Investors are thinking: We don’t know what’s going to happen with Greece, we don’t know what’s going to happen with Europe, we’re just going to sit it out,” said Andrew Sullivan at Piper Jaffray.
Sullivan added that trading volumes were up, “which would indicate some investors are just throwing the towel in.”
Amid concerns that elections in Greece will ultimately lead to the country leaving the euro zone, Sullivan said: “It’s just imponderable as to how you play Greece coming out of the euro zone. … It’s very difficult to know how to play that in Asia. Investors can’t get an inside line on this — there’s no precedent.”
…
“Investors can’t get an inside line on this”
Hint: Your export markets are drowning in debt.
Obama’s efforts to reduce gasoline prices seem to be working very well!
May 16, 2012, 4:27 a.m. EDT
Crude-oil futures slide in electronic trading
By Sarah Turner, MarketWatch
MADRID (MarketWatch) — Crude-oil futures fell in electronic trading on Wednesday, as investors reacted to news that Greece will head back to the polls by pushing up the U.S. dollar.
Crude for June delivery extended losses of more than $1 in Asia to drop $1.77 to $92.24 a barrel as European stock markets fell sharply. The front-month futures contract reached a fresh settlement low for the year of $93.98 a barrel on Tuesday.
…
I f*cking hate how MarketWatch, Bloomberg, CNBC, WSJ et cetera can never report oil prices without using the word “on” in the article title.
EX: Oil slides 2% on Greek election fears,
Oil jumps 3% on US home builder data
Oil slides 1.5% on Jamie Dimon’s skid marks
How about an article titled: Oil jumps 5% on no connection to market fundamentals whatsoever?
Or: Oil slides 3% on Goldman Sachs trading algorithms and 1%er pigmen profit taking?
Bloomberg website appears to be no different than the other gazillion pimping finance websites. I believe WBBR and Bloomberg TV are still decent media outlets.
“on” simply means “and in other news”
No connection is ever made.
No, they are indeed implying a connection.
They are indeed implying a connection, usually supported with a one sentence blurb from some moneychanger speculator PIG trader that works for some little known pig’s sh*tnest trading firm with an acronym for a name.
“in trading news today, the squad’s blood pressure jumped to record highs on semi-literate newsys trying to explain away market fluctuations caused by algorithm based high frequency trading with random stuff that happened that day”
Doesn’t sound like this is quite over yet:
Greece hits a wall:
Matt Kaminski, a member of the Wall Street Journal editorial board, on the failure of talks to form a coalition government in Athens.
Hey elephant and donkey leadership. If you want to continue losing voters to independents and libertarians, keep pulling this bullshit.
You’re wrong. The sheeple never wander far from the plantation…
You’re probably right.
Join in at MW. 69Charger was banned… he re-upped as 1969charger and that was just banned.
We heard the New York Philharmonic Orchestra play last night, part of the La Jolla Music Festival. I found myself imagining the likes of New York investment bankers attending their concerts back on the home playing field.
The orchestra was about what you would expect for a NYC band — highly proficient, but unbalanced. In particular, the brass section generally drowned out the melody line whenever they played, even if they were just holding on to a chord.
We recently also heard the Dresden Statskappelle, Vienna Philharmonic, Cleveland Symphony Orchestra and Chicago Symphony Orchestra. I’d have to rank the New York Philharmonic lower than all of the above, due to their obnoxiously loud brass section.
You had both sides playing.
All east coast Philharmonics are unionized (including stagehands and directors). And expect insane benefits and pensions. Yet they scream for donations and suck at taxpayer subsides.
Banks and public unions - destroying everything that was good.
We heard the New York Philharmonic Orchestra play last night, part of the La Jolla Music Festival. I found myself imagining the likes of New York investment bankers attending their concerts back on the home playing field.
Insane benefits and pensions? Those musicians should have to live in a van like R.E.M. and Nirvana and everyone else did before they made it big!
I have a friend whose son went to Juilliard to study percussion. He’s now playing with the Metropolitan Opera Orchestra. Beat out 70 other people for the job.
In short, the music world is brutally competitive. Eats its young and all that stuff.
My hat is off to anyone who makes it. I don’t begrudge them anything.
Plus Symphony Orchestras are folding left and right. Cash strapped Muni’s can no longer afford to subsidize them for the prestige of having an Orchestra in town. Union or not, there is a shortage of patrons.
Union or not, there is a shortage of patrons.
That’s exactly what’s going on here in Tucson. And I live within easy walking distance of the Tucson Symphony HQ.
They do zero outreach to this neighborhood, and it wouldn’t be at all difficult for them to do. Why? Because there’s a nice big public park right across the street from their HQ. Concerts on the lawn! Bring a picnic basket and a blanket! Plenty of parking! Several city bus routes nearby!
But no-o-o-o-o-o, the TSO doesn’t do that. They don’t play in, cough-cough, city parks.
And they wonder why their audience base is drying up.
“Those musicians should have to live in a van like R.E.M. and Nirvana and everyone else did before they made it big!”
A rock-and-roll career is a much higher risk / higher reward than a classical music performing career. Most folks who are good enough to get accepted into a college music program but not good enough or ambitious enough to land a job in a symphony orchestra end up either teaching at some level, or changing careers.
We New Yorkers tend to blow our horns a bit too loudly at times…
Interesting. I wonder why the conductor doesn’t fix that?
Great question, especially since he is a violinist! We liked his conducting, but were dismayed that he seemed oblivious to the imbalance.
Maybe it has to do with the traditional brass player attitude towards string players (”Strings suck,” etc). And my wife, who tends to know more about such matters than I, claims the NY Philharmonic brass has a historical reputation for playing too loudly.
Luckily we were far enough away from them so we did not incur any hearing loss.
Alan Gilbert: Biography
The program notes mentioned that he is the first NYC native to assume the post of NY Philharmonic music director. Hopefully he will figure out how to control his brass section, as his orchestra has great unrealized potential.
Maybe it has to do with the traditional brass player attitude towards string players (”Strings suck,” etc).
Of course. But they don’t sign their own paychecks and I assume they’re professional enough that it wouldn’t need to come to that. Still falls on the conductor, IMO.
Still falls on the conductor, IMO.
I agree. In a symphony orchestra, the conductor is the boss.
To the conductor’s credit, the San Diego audience seemed to love the brass-heavy interpretations. I think it was just the finicky string players in attendance (e.g. me and my wife), and perhaps the Russian piano teachers sitting just to our left, who took offense at the brass-heavy renditions.
I think it was just the finicky string players in attendance (e.g. me and my wife), and perhaps the Russian piano teachers sitting just to our left, who took offense at the brass-heavy renditions.
You, your wife, and I would make a great team at a performance. We’re a picky audience — and I mean that in a good way.
Same thing’s happening in recorded music. A lot of it runs hot. That’s radio-speak for “You better drop the mixing board levels right-quick before you get an earful from the show producer.”
This is why never go to live performances any more.
I may be old but I ain’t deaf and don’t want to be!
Most musicians have no concept of how to “fill the space” they are in and just use the-one-size-fits-all technique: “it goes to 11″
This is why never go to live performances any more.
I may be old but I ain’t deaf and don’t want to be!
Most musicians have no concept of how to “fill the space” they are in and just use the-one-size-fits-all technique: “it goes to 11″
Bad pun alert: Oh, man, turkey lurkey, are you playing my song!
And, yes, I’m going to antagonize some of my local music friends by saying this, but here goes: There are venues that I seldom go to anymore because they’re too darn loud. (Rialto Theatre and Club Congress, I’m looking right at ya!)
Then there’s the Stevie Eller Dance Theatre on the University of Arizona campus. Great sound and lighting design. Attending a performance there is truly a pleasure.
And did I mention the dancing? First rate. The UA has one of the top programs in the country.
in recorded music. A lot of it runs hot.
Today’s recorded music suffers from over compression where the level of all sounds are pushed (compressed) to be as loud as possible. This is a bit different from the problem of an overly loud brass section in a live performance.
In fact, if the Philharmonic’s performance were going through mics or even one mic and compressed/limited, the strings would be louder and the brass section less loud. The balance would be more even but there would be no dynamics. Thus, the conductor should function as the balancer (sic) (decider lol) and the compressor/limiter. (BTW, NYC is known for being loud and brassy )
I tend to favor choral music. Yes, sometimes the sopranos over power all the rest just because the notes in their range carry further, but even an OK director can fix it and usually does (often with nothing more than a glare). I’m pretty sure that there is a (free) concert this weekend.
Oh,and if any of you other Maries (or Martins?) want to join me, there is a free lecture at the Air and Space Museum this evening. Streaming live starting at 8:00 PM eastern. Of course, you will miss the free planitarium show, but living in/near DC has advantages. I’m going to walk over after work. Should be a nice stroll if the heat isn’t too bad.
Exploring Space Lectures
Gamma Ray Bursts and the Birth of Black Holes
Presenter: Neil Gehrels
http://airandspace.si.edu/events/eventDetail.cfm?eventID=3727
The link for the webcast is on that page.
“I tend to favor choral music. Yes, sometimes the sopranos over power all the rest just because the notes in their range carry further, but even an OK director can fix it and usually does (often with nothing more than a glare). I’m pretty sure that there is a (free) concert this weekend.”
I’m playing some tonight on a rehearsal (in La Jolla) — the Rutter Requiem.
Which reminds me of a quip I overheard a brass player make during a rehearsal of Rutter’s music about two decades ago:
“I wish I could buy royalties in future performances or recordings of Rutter’s music.”
“This is why never go to live performances any more.”
“I may be old but I ain’t deaf and don’t want to be!”
Try Hearos, they take the rough edge off of the music but don’t muffle the music like traditional ear plugs, used them at a Megadeth/Motorhead concert and I will never go to another concert without them.
http://www.hearos.com/products/high-fidelity
If you’re visiting the Left Coast, try to catch the LA Phil in their home at Walt Disney Concert Hall. Spectacular orchestra at its peak, and whatever you may think of Gehry’s design, the acoustics are fantastic.
I love the fact that there is no inflation and that the economy is back and rolling along in spite of foreclosures, job losses, etc. People are still out shopping albeit purchases are smaller but the stores are still crowded. I’m a firm believer that they have no other purpose in life or can’t figure out anything else to do.
my closest movie theatre is the mall.
i went to see the avengers and thought i would get some ice cream after the movie.
the ickiness of the crowd was so over whelming i had to just leave after standing in line a few moments.
the avengers was epic though.
Husband and I saw The Avengers on Saturday night in 3D (the 3D was his idea, not mine). The tickets were $14.50 apiece. We will be very picky about what films we see on a big screen at those prices.
We went out for Thai food beforehand. Dinner cost less than the movie.
“I’m a firm believer that they have no other purpose in life or can’t figure out anything else to do.”
The sad truth is, you are more right than you should be.
They really don’t have anything better to do.
A lifetime of state-of-the-art psycho warfare commercial programming will do that to you.
We’re in austerity mode if it’s any consolation. Spending beyond our means, previously? Not at all. We’re running surpluses. Saving for something that matters - travel…oh, and a house. Cut way back on eating out, but every time we do go out it’s always packed…
I’ve long wondered…… Dimon is the greek guy running the FedRes international proxy operation….. the Greek austerity saga continues….. $2 billion lost last week by the proxy. I hate to be conspiratorial but bankers are never to be trusted.
Dick Fuld is laughing at you, about 100,000,000 laughs according to this:
http://en.wikipedia.org/wiki/Richard_Fuld
You aren’t being conspiratorial at all, given the historically lopsided concentration of the U.S. banking system under the control of less than ten key CEOs.
Needy States Use Housing Aid Cash to Plug Budgets
By SHAILA DEWAN
Published: May 15, 2012
New York Times
In a budget proposed this week, California joined more than a dozen states that want to help close gaping shortfalls using money paid by the nation’s biggest banks and earmarked for foreclosure prevention, investigations of financial fraud and blunting the ill effects of the housing crisis. California was awarded more than $400 million from the banks, and Gov. Jerry Brown has proposed using the bulk of that sum to pay the state’s debts.
As part of the settlement, the banks agreed to pay the states $2.5 billion, money intended to help homeowners and mitigate the effects of the foreclosure surge. But critics complained that this was the only cash the banks were required to pay — the rest comes in the form of “credits” for reducing mortgage debt and other activities. Even that relatively small amount has proved too great a temptation for lawmakers.
Only 27 states have devoted all their funds from the banks to housing programs, according to a report by Enterprise Community Partners, a national affordable housing group. So far about 15 states have said they will use all or most of the money for other purposes.
You beat me to the punch! My wife just handed me this article to read; it appeared in today’s dead tree edition of UT-San Diego.
P.S. Your version omits the first paragraph (and sentence) in the UT-San Diego edition:
What does this suggest about the true purpose of the state AGs’ ploy to wrench money out of the coffers of Megabank, Inc?
California was awarded more than $400 million from the banks, and Gov. Jerry Brown has proposed using the bulk of that sum to pay the state’s debts.”
hahahaha
hahahaha
+1 (hahahaha)^2
So what is going to happen to states that are in perennial deficit mode (about 30 of them so far)? Will the Fed Res fire up the printing presses for them too? (after they amend their state constitutions to permit deficit spending)
The flip side of all-cash Chinese investments in North American real estate is capital flight out of China.
Chinese Banks’ Forex Sales May Indicate Capital Outflows
By Bloomberg News - May 15, 2012 7:11 PM PT
China’s central bank and commercial lenders sold more foreign currency than they bought for the first month this year in April, indicating capital may have flowed out of the world’s second-biggest economy.
Chinese banks sold a net 60.6 billion yuan ($9.59 billion) of foreign currency in April, according to calculations based on preliminary data released by the People’s Bank of China yesterday. That compares with 124.6 billion yuan of net purchases in March.
The government has stalled gains in the yuan against the dollar this year, allowing the currency to weaken 0.2 percent against the dollar in April. The central bank on May 12 cut banks’ reserve requirements for the third time in six months to pump money into the financial system after industrial-production and lending data showed the economy slowing in April.
“Definitely, it’s a capital outflow,” said Cliff Tan, East Asian head of global currency research at Bank of Tokyo- Mitsubishi UFJ Ltd. in Hong Kong. The government may “work on some structural policy changes that would encourage capital inflows, like allowing foreign pension funds to invest in China and more central banks to buy Chinese debt,” he said, calling the April flows “capital seepage.”
…
The flip side of all-cash Chinese investment in North American real estate is less capital for their banks.
I suppose it might eventually reverse, at the point when the Chinese flippers cash in their U.S. taxpayer-subsidized real estate investing gains.
Updated May 16, 2012, 3:34 a.m. ET
China’s Bank Lending Slows Further
By SHEN HONGAND WYNNE WANG
SHANGHAI–China’s biggest four banks barely issued any new yuan loans in the first two weeks of May, extending the country’s weak credit growth last month, the state-run Shanghai Securities News reported Wednesday, citing an unnamed source.
The four banks–Industrial & Commercial Bank of China Ltd. 1398.HK -1.87% (601398.SH), China Construction Bank Corp. 0939.HK -2.75% (601939.SH), Bank of China Ltd. 3988.HK -3.02% (601988.SH) and Agricultural Bank of China Ltd. 1288.HK -1.80% (601288.SH)–usually account for 30% of new yuan loans issued by China’s whole banking system.
The rare and unusually dismal performance by the banks is expected to fuel concerns that despite Beijing’s efforts to step up credit easing, corporate demand for loans remains too weak to reverse the trend. It may also bolster the call for the Chinese central bank to cut interest rates, instead of continuing to rely on liquidity adjustment tools like banks’ reserve requirements, as a more effective way to stimulate businesses’ borrowing appetite.
Citing the unnamed source, Shanghai Securities News said two of the four major banks saw their new yuan loans grow by over CNY10 billion and “a few billion” in the first two weeks of this month. However, the other two equally unidentified banks suffered a decline in new lending during the same period, the newspaper said.
The paper also said the four banks’ deposits have declined by around CNY200 billion as of May 13.
…
New mantra for the U.S. banking system:
“Small is beautiful. Too big, not so much.”
HEARD ON THE STREET
Updated May 15, 2012, 6:15 p.m. ET
Bank Investors Bail on Too-Big-to-Fail
By DAVID REILLY
J.P. Morgan Chase’s JPM +0.35% huge trading loss has reignited the political debate over too-big financial firms and whether they are too big to control. But investors are already voting with their wallets.
Some smaller, less complex financial firms with more predictable earnings command higher valuations than bigger rivals. That, more than politics, may have a bigger impact on the future shape of J.P. Morgan and peers such as Bank of America, BAC -0.27% Citigroup, C +0.11% Goldman Sachs GS +0.49% and Morgan Stanley MS -0.89% .
Consider the valuation for J.P. Morgan, with $2.3 trillion in assets, and regional lender U.S. Bancorp, USB +0.19% with about $340 billion in assets. The day before the disclosure of its trading debacle, shares in J.P. Morgan were valued at about 0.9 times book value. Stock in U.S. Bancorp traded at about 1.9 times book.
Of course, big banks in particular were laid low by the financial crisis. Yet, over the past 10 years, U.S. Bancorp has always traded at a valuation premium to J.P. Morgan, according to data from FactSet Research Systems.
And these days, U.S. Bancorp isn’t alone. J.P. Morgan, BofA and Citi all trade at lesser valuations than, for example, BB&T Corp., BBT +0.47% with $175 billion in assets; Fifth Third Bancorp, FITB +0.99% with $117 billion, and M&T Bank, MTB +0.43% with $78 billion, according to FactSet.
Smaller banks may be enjoying greater stock-market favor for a number of reasons. For one, they don’t suffer a conglomerate discount. They also don’t have big investment-banking or trading arms. Investors have grown less enamored with results from these more-volatile, often opaque businesses.
Smaller banks also tend to be more U.S. focused. That can be a negative given concentrated exposures to things like housing or commercial real estate. But right now, the U.S. is a bright spot in the world economy. And it makes them easy for investors to understand. For banking giants, in contrast, they have to delve into how interconnections from derivative exposures may leave big banks vulnerable to a European meltdown.
Finally, though smaller banks are themselves prone to stumbles, they are still a lot less complex than the likes of J.P. Morgan. That makes them easier for investors to understand, and value. It also gives investors greater confidence that executives can grasp the risks they are taking. J.P. Morgan has acknowledged that its efforts to unhedge hedges of its vast loan and securities holdings simply became too complex.
…
Note that “dollar” in the following headline refers to the Australian dollar, not U.S. The article is from the Sydney Morning Herald.
With the Grexit scenario becoming increasingly inevitable, there has never been a better time to be long Uncle Buck and short almost everything else.
‘Grexit’ effect could drive down dollar
May 17, 2012
A term gaining currency across investment bank dealing rooms is ”Grexit” - the exit of Greece from the eurozone. And the chances of whether this will become a reality are now being weighed up by global markets.
This month’s anti-austerity backlash by voters in Greece means the probability of a Grexit event is now between 50 per cent and 75 per cent, according to the Citigroup economist Willem Buiter who coined the term.
The ANZ chief executive, Mike Smith, said yesterday the break-up of the eurozone was “quite likely” as countries in the region’s south would have to decouple from the currency union in order to again become competitive.
“The issues in Europe are going to be very difficult to manage and it’s not clear what the answer will be,” Mr Smith told Bloomberg television yesterday.
Analysts say further speculation surrounding Greece would drive the Australian dollar lower, mostly through the strength in the US dollar as funds are ploughed into US treasuries.
While there’s little exposure by Australian banks to Greece, the biggest risk is a freezing in global credit markets again as money market investors pull funds from Europe.
How exactly Greece leaves the euro remains an unknown, mostly as there was no mechanism put in place in the rules governing the European Monetary Union for a country to leave once it became a member.
But with the country fast running out of money and a growing political swing against the hardline measures that are needed in order to remain with the euro, circumstances could soon force Greece to return to its pre-euro currency: the drachma.
Even so, the best-case scenario - an orderly exit from the euro - is still likely to trigger the implosion of the Greek economy while economic shockwaves will be felt through the rest of Europe.
To formally walk away from the euro, Greek authorities would have to make a secretive agreement with eurozone members and the IMF for the switch to happen on a set date - most likely a weekend.
Greek authorities would then decree publicly that the country’s legal tender had changed from euros to the drachma at a declared conversion rate, and that all accounts and contracts would be redenominated immediately to reflect the new regime.
Even so, mere suspicion of a currency switch would be sufficient to drive massive deposit flight into euro accounts in other countries, or conversion into non-euro currencies outside of the region, according to an analysis by brokerage JP Morgan.
…
With the Grexit scenario becoming increasingly inevitable, there has never been a better time to be long Uncle Buck and short almost everything else.
Sounds like our national motto will soon be “We suck! But not as much as those other countries do!”
Exactly! We suck less!
“The ANZ chief executive, Mike Smith, said yesterday the break-up of the eurozone was “quite likely” as countries in the region’s south would have to decouple from the currency union in order to again become competitive.”
Moron or hidden agenda alert.
”Grexit”
That sounds lile a Dr. Seuss character.
-How the Grexit Saved the Banksters.
ECONOMY
May 16, 2012, 5:00 p.m. ET
Unknowns Loom If Greece Exits Euro
By GABRIELE STEINHAUSER
Going back to the drachma, Greece’s former currency, would be messy.
BRUSSELS—Returning to a national currency after more than a decade of using the euro and having its money managed by the European Central Bank would catapult Greece into a financial, legal and political no-man’s land.
Countries have defaulted, devalued, or even withdrawn from a broader monetary union in the past. But none has done it all at once— and certainly not an economy so deeply integrated into global financial markets.
Greece would have to remake its monetary system and rebuild its economy after a likely sharp devaluation that would have delivered a severe confidence shock to the population, undermined its banks and triggered likely defaults on debts to foreigners.
The consequences of an exit from the euro for Greece and the rest of Europe would likely be so tumultuous that policy makers have been reluctant even to speculate on how it could work. And even though the taboo of mentioning a euro exit has fallen away in recent months, going back to the drachma would likely be messy, with many steps having to be improvised overnight.
For the first year and a half of the crisis, policy makers usually smothered any questions on a potential euro exit with a simple answer: It’s impossible to leave the common currency under European Union law. There is no provision in the EU treaties for exiting the euro zone without also dropping out of the broader 27-country bloc.
Euro Zone by the Numbers
The 17-nation euro zone is a collection of countries with vastly different economic profiles. See how they stack up on the major measures.
Leaving the EU would also mean an end to billions of euros in farm and development subsidies, as well as easy access to a large internal markets—a threat that Austrian Finance Minister Maria Fekter voiced Monday.
“It’s impossible to leave the euro zone—one can only leave the European Union,” she told reporters at a meeting with her counterparts in Brussels. “After that, Greece would have to apply for re-accession and we would hold accession talks and look very closely whether Greece actually fulfills the accession requirements.”
…
Rents in SF going crazy:
http://bernalwood.wordpress.com/2012/05/16/average-rents-in-bernal-heights-climb-65-in-one-year/
That’s interesting because zillow shows rents just beginning to crater in SF bay area.
See for yourself
http://www.zillow.com/local-info/CA-South-San-Francisco-home-value/r_13929/#metric=mt%3D50%26dt%3D1%26tp%3D5%26rt%3D8%26r%3D13929%26el%3D0
“GropedByARealtor”
LMFAO. You’re killing me, man.
I’m happy to entertain with the truth.
No let’s get on with task of confronting these unrepentant, felonious criminals wherever necessary.
That sucks. I dunno, man, if I was in your situation, I might buy. Are rentals stable there?
The whole thing in FL is a mess because everyone wants to ditch their chitboxes here, so renters have to move a lot.
That IS crazy.
As it happens, I’ll be writing a report on the San Francisco apartment market tomorrow (office the next day). I doubt my company’s data will show that kind of extreme move.
But it is clear from 30+ years of data that market rent apartment rents (and office rents) in San Francisco are manic-depressive. Busts follow booms.
Too, too funny…
Not ONE person voted for it.
Hope and change can’t get ONE vote????
Landslide in november boys…
——————–
Breaking: Obama budget Defeated 99-0 in Senate (Zero is 0-513 now)
The Washington Times | 16 May 2012 | Steven Dinan
President Obama’s budget suffered a second embarrassing defeat Wednesday, when senators voted 99-0 to reject it.
Coupled with the House’s rejection in March, 414-0, that means Mr. Obama’s budget has failed to win a single vote in support this year.
Democrats disputed that it was actually the president’s plan, arguing that the slim amendment didn’t actually match Mr. Obama’s budget document, which ran thousands of pages. But Republicans said they used all of the president’s numbers in the proposal, so it faithfully represented his plan.
Sen. Jeff Sessions, Alabama Republican, even challenged Democrats to point out any errors in the numbers and he would correct them — a challenge no Democrats took up.
And PS - In the senate you can NOT filibuster budgets.
The dems could put one on the table and vote for passage and the republicans could do nothing about it.
Yet for 3 years - not one dem budget has been proposed in the senate.
A run or not a run, that is the question
Oikonomides: The people I know don’t have any savings. This is why, anyway, they wouldn’t be able to run to the bank to take their savings out. Now how many those people who still have savings are I wouldn’t be able to tell. I really don’t know many of them.
http://www.marketplace.org/topics/world/greek-debt-crisis/reality-check-greek-bank-run
http://www.globalpost.com/dispatches/globalpost-blogs/macro/greek-crisis-run-banks-and-the-ghost-the-great-depression
Bank runs.
There aren’t many words in economics that provoke as much fear and unease.
That terrifying specter looms in Europe, as we learned yesterday that depositors in Greece withdrew almost $900 million from the country’s banks on Monday.
I suppose if the banks don’t have any money to give out it’s a bit difficult to have a run on them.
I want a cheap house.
Cheap or inexpensive?
Detroit is cheap -
This sort of relates to the top story about FBs already being back in the game within 3 years… several FBs I know did “buy and bail” and never totally bailed, so now they own two upside down houses instead of losing the first.
We’ve gone plaid.
If I am reading the MarketWatch chart correctly, gold has continued falling overnight, now down to $1531 with no floor in sight below.
Could this be due to Greeks selling their gold to raise cash?
May 16, 2012, 3:11 p.m. EDT
Gold at 10-month low, holds on to $1,500 an ounce
News ECB might cut off Greek banks sends gold, other metals lower
By Claudia Assis and Chris Oliver, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold on Wednesday fell to its lowest since early July as concerns about Greece’s finances drained investors’ appetites for risk and helped push the U.S. dollar higher.
Gold also added to its losses after news that the European Central Bank would be cutting off money to Greek banks, although in a separate report the ECB said it would continue to support that country’s banking system.
Gold for June delivery was down $20.50, or 1.3%, to $1,536.60 an ounce on the Comex division of the New York Mercantile Exchange.
In addition to the lowest settlement since July 7, it was gold fourth loss in a row, with the metal down 3.7% over that span of time.
…
I dunno, but I am renewing my interest in gold lately! Keep heading south, PMs!
I don’t know how anyone can read today’s headlines (gold, derivatives, Greece, etc.) and think, “I’d better buy a house before the price goes up.”
Do you know the point in the tsunami where all the water has gone out to see and the native population members start to run towards the nearby hills?
I believe that is about where we are with respect to the looming Grexit.
Of course, being somewhat clueless on matters of international finance, most Americans don’t see it coming.
May 16, 2012, 8:32 p.m. EDT
SLJ Marco’s Jen: 60% odds Greece to exit in 2 mos.
By Min Zeng
–Jen says call is driven by political stalemate in Greece
–Greece exit would be major blow to global markets in short term
–Euro to dip toward $1.20, but downside limited by Fed outlook
–Sees stronger euro in longer run on a more exclusive currency bloc
NEW YORK (MarketWatch) — Greece’s exit from the euro zone is a question of when, not if, and the departure could come much earlier than investors think, said Stephen Jen, founding partner for London-based hedge fund SLJ Macro Partners.
Jen, one of the best-known currency analysts and a former head of currency research at Morgan Stanley, put the odds at 60% that Greece would bolt out of the currency union in the next two months.
…
Traditional measurements and historical markers are useless in today’s economy with the printing presses running wild. One could probably do well picking “shorts” with a dart board if we let the reckless companies fail, but we don’t, and only approved investors can short during a crisis when the smell of blood is strong. The odds are stacked against little investors.
Palmster, take cover!!!
Weather guy just said the warning is over
http://www.baynews9.com/content/news/baynews9/news/article.html/content/news/articles/bn9/2012/5/16/long_awaited_rain_co.html
“Realtor”… It’s a Disease®
If it is a disease then you are giving them an excuse for it.
Kennedy curse continues.
Estranged Wife of Robert F. Kennedy Jr. Is Found Dead at Home in Westchester
By MATT FLEGENHEIMER and WILLIAM K. RASHBAUM
Published: May 16, 2012
Mary R. Kennedy, the estranged wife of Robert F. Kennedy Jr., was found dead on Wednesday at the family’s home in Bedford, N.Y. She was 52.
Enlarge This Image
Stephen Lovekin/Getty Images
Ms. Kennedy’s death was confirmed in a statement from her family, who did not comment on the circumstances. Two people with knowledge of the matter said that Ms. Kennedy’s body was found hanging, and one of them said that it was discovered in a barn behind the house and that she had left a note. The other person said that the authorities who responded to the scene had cut her down and tried to revive her.
The Bedford Police Department said only that it had investigated a “possible unattended death” in an outbuilding at the home. Kieran O’Leary, a spokesman for Westchester County, said an autopsy was scheduled for Thursday morning.
Born Mary Richardson, Ms. Kennedy joined one of America’s foremost political families in 1994, in a marriage ceremony aboard a boat on the Hudson River, near Stony Point, N.Y. At the time, she was an architectural designer at Parish-Hadley Associates in New York.
The couple had four children together; Mr. Kennedy had two from a previous marriage.
…
If China is the leading gold buyer, then I guess it is no worries for the PPT if gold keeps goes down, downer, downest.
May 17, 2012, 1:54 a.m. EDT
China tops India as No. 1 gold consumer: WGC
By Francesca Freeman
LONDON -(MarketWatch)- China topped India as the world’s top consumer of gold in the first quarter of this year, cementing expectations that China will be the dominant buying force in the gold market in 2012, the World Gold Council said Thursday.
Indian gold demand dropped 19% on the year in the first three months of the year, to 207.6 metric tons. The domestic gold sector was rattled by strikes following the announcement of new taxes on the gold trade and weakness in the Indian rupee made dollar-denominated gold more expensive for Indian buyers.
In contrast Chinese gold demand rose 7% in the same period, to 255.2 tons, according to the WGC.
Between them, China and India accounted for 54% of global gold demand in the first quarter.
…
What is it with San Diego and American Idols? We just seem to crank them out around here. A vocal coach who used to live up the street from us had a contestant who made it through several rounds. And there was Adam Labert — raised in North County.
My choice for the next American Idol: Jessica Sanchez. She apparently is the first person to sing a Steven Tyler song on the show which passed muster for him.
Too bad the judges are tone deaf and dumb…