Bits Bucket for June 6, 2012
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The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
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Found this poking around tonight/this morning, not sure I saw anyone on the blog mention this recently. TPTB keep trying to find ways to make mortgages affordable while the real problem for first time buyers, overpriced housing, is only further compounded by such schemes.
Will Congress Pass “Special” FHA Premiums For First-Time Home Buyers?
June 5th, 2012
THE MORTGAGE REPORTS
“June 11, the FHA will its raise mortgage insurance premiums for the second time this year.”
“In April, the FHA raised upfront mortgage insurance premiums to 1.75% of the amount borrowed, due at closing; and raised annual mortgage insurance premiums to as high as 1.25% per year. Next week, the FHA flags loan sizes in excess of $625,500 for another 0.25% per year.”
“What was once considered an “affordability product” is suddenly quite expensive — especially for first-time home buyers.”
“This is one reason why Representative Karen Bass, D-California has introduced a bill (H.R. 5884), which is sponsored by Representative Robert J. Dold, R-Illinois and Luis V. Gutierrez, D-Illinois, and which is meant to help make FHA mortgages more affordable for first-time home buyers.”
http://themortgagereports.com/9755/will-congress-pass-special-fha-premiums-for-first-time-home-buyers
Or is the problem low wages that have not kept up with inflation, combined with lack of jobs, making houses unaffordable.
Why have these schemes not held up prices in places like Phoenix where house prices have fallen to below those of 2000? Courts holding up foreclosures?
“Why have these schemes not held up prices in places like Phoenix where house prices have fallen to below those of 2000? Courts holding up foreclosures?”
FWIW, California’s entire central valley has collapsed like AZ.
It’s interesting how time lines are thrown around like they mean anything. I don’t know if 2000 prices were higher, but what if they were? Were prices too high in 2000? If I said prices were higher in 1977, what difference does it make? Isn’t it more relevant what prices are today in relation to today’s incomes?
Prices have only fallen around 30% in Flagstaff. The median house is still way above what typical residents can pay. I don’t know what year that equates to. Maybe we should say, ‘everyone wanted to live here starting in 1985.’
“Prices have only fallen around 30% in Flagstaff. The median house is still way above what typical residents can pay.”
And it’s typical or poorer residents on whom these federally-sponsored housing demand stimulus programs are concentrated. Why is it a federal government priority to encourage households to buy homes they cannot afford?
Prices have only fallen around 30% in Flagstaff. The median house is still way above what typical residents can pay.
You just described Seattle to a ‘T’, Ben.
The point of the timeline is that 2000 is seen as pre-bubble in Phoenix.
If you prefer, I could say that median house price is under $140K and median household income is a tad over $50K, so we’re under the 3x median income seen as “normal affordability” even in times of “normal interest rates” of 6-7%. That 3x median income is very affordable given interest rates under 4%.
How about price/rent. Houses are now selling for under 100x what they can rent for. That is a good rule-of-thumb for price/rent equivalence in a “normal interest rate environment”, making it a very good deal with the low interest rates.
I’m sorry that Flagstaff is off only 30% from high. Here in my area it is more like 60%.
My neighborhood peaked when the house kitty-corner across the intersection sold for $270K. Last fall, the house next door, about the same (200sqft larger, but no pool) sold for $110K. (59.26% off).
“Isn’t it more relevant what prices are today in relation to today’s incomes?”
I think this is spot on.
And to my understanding, prices relative to household income on a nationwide basis are very close to “normal”.
The big risk, IMHO is that Fed policies will partially reflate the bubble.
California’s entire central valley has collapsed like AZ ??
Yes it has and that is one BIG valley…
We read here thanks to Ben & others who post articles about towns like Stockton, Sacramento and Bakersfield but the California Central Valley is littered with small towns like Biggs or Turlock and those towns are having every bit as much carnage in the housing market as Arizona, Nevada or Florida….
But jingle tells us that the market has recovered and prices are again appreciating in the central valley; and as a real estate investor, he should know….
From what I’m seeing here, nothing is selling because everything has been pulled off the market. And what scant product is left is laughably, ridiculously overpriced.
Here in Tucson, a lot of what’s on the market is, shall we say, junque. As in, it was foreclosed and probably ought to be torn down. And a good bit of it is located in less desirable areas.
So, other than all-cash in-VEST-ors who have the same gold fever that their predecessors did five years ago, there isn’t a whole lot of buying goin’ on.
‘What was once considered an “affordability product” is suddenly quite expensive’
Yeah, subprime, negative amortization, interest only, zero down loans were all referred to as affordability products too, and they turned out to be quite expensive to everyone involved. I suppose we’ll hear ‘I never should have qualified for this loan’ from the FHA borrowers eventually.
H.R.5884 - To establish a 1-year pilot program to reduce up-front premiums on FHA mortgage insurance for first-time homebuyers who complete a homeownership counseling program and thereby help to reduce default rates on residential mortgages.
Anything to avoid looking at actual income and/or cash on hand, I suppose.
And aha, this is probably why Congress was so unwilling to lower the FHA loan limit: “FHA-backed borrowers pay mortgage insurance to the FHA, and the FHA uses those premiums to stay in business.” FHA pockets $8750 in insurance, plus a little more for funding fees, every year from a $700K purchase. If they lowered the limit, they probably couldn’t stay solvent.
and thereby help to reduce default rates on residential mortgages.
BWAAAHAHAAHAAAAAHAHAHAHAAA!
That’s rich.
There’s nothing like performing actual _underwriting_ to reduce default rates.
If they lowered the limit, they probably couldn’t stay solvent.
You may be right, oxy. If so, this is a fine example of throwing good money after bad in order to postpone the consequences of prior bad decisions.
I suppose we’ll hear ‘I never should have qualified for this loan’ from the FHA borrowers eventually.
Doesn’t the FHA verify income and have semi historic income to mortgage/debt payment ratios? They aren’t NINJA loans with short term teaser rates, are they?
I could see FHA borrowers with their 3% down scenarios ending up underwater (glub, glub), but that shouldn’t mean that they can’t afford to pay the monthly nut (unless their income has dropped).
‘I could see FHA borrowers with their 3% down scenarios ending up underwater’
Could see? You already can see! I know some of these lucky folks. Look, offering low down loans in the immediate shadow of the biggest housing bubble in the history of the world is nuts. Doing this for ‘first time buyers’ (meaning people who probably will need to move before the loan is up) is double nuts.
“Look, offering low down loans in the immediate shadow of the biggest housing bubble in the history of the world is nuts.”
I agree. Just saying that they should be able to afford the monthly nut, unlike someone who took out a loan with a teaser rate, while the realtor whispered in their ear: “You can always refinance (into another teaser rate) later.”
My parents bought my childhood home in the mid-70’s with 3-5% down.
This has been going on for a long time…it will take a long time to wean off of this.
I would be a strong proponent of increasing down payment requirements slowly over a long period of time (1% every 6 months, until the loans go away).
Isn’t it hysterical how after the collapse of the subprime lending sector, instead of learning a valuable lesson and moving on, Uncle Sam felt compelled to fill the void of subprime loan supply which the private market decided to abandon?
+infinity, PB…
This tread on the insanity of wash rinse repeat on weak borrowers is something I started to follow on our purchase. I noticed some of the competition on homes from the recent past, are already served with NODs. 2-3 payments later, they decide their FHA down payment break even, and it’s off to the default races. And yet, those of us in for the long haul know better than to overbid. FHA buyers are being told “If you want the house then offer $25K+ over the list price.” The offer should be $25K less (minimum). Welcome to the micro bubble re-inflate effort. (So Ca)
micro bubble re-inflate, heh. the re-animator…
“We realized that our budget of $600,000 would not cut the mustard,” he said. They found a three-bedroom Sunnyvale townhome listed at $649,000 and beat out 14 other buyers with a $725,000 bid.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/06/02/MNJ11OMMVC.DTL
Today’s morning laugh:
“H.R.5884 - To establish a 1-year pilot program to reduce up-front premiums on FHA mortgage insurance for first-time homebuyers who complete a homeownership counseling program and thereby help to reduce default rates on residential mortgages.”
There are so many things wrong with this I don’t know where to start.
Now that is dumb. Not quite a teaser rate, but still dumb.
Now Oxy… did you complete your HomeOwner Counseling” program?
Yeah, it was called HBB.
And it doesn’t matter because I didn’t do FHA. I had the option for FHA but the fees would have added quite a bit to the monthly nut. You pay dearly for that low down-payment.
You guys aren’t specifying what you think is the dumbest part, but I will throw in my two cents. It is a one year pilot program. Pilot programs are generally smallish, so that is good. But you need to follow up for at least 5 to 10 years to figure out if there is a real improvement in the default rate.
As for counseling improving the rate at all? Eh, if they tell people the real cost of owning a house (maintenance, heating, cooling, etc.) and scare a few people out of buying at all because a worksheet shows them they can’t afford it, it could have an effect. Otherwise, I’m not sure what mechanism they think will improve default rates.
Oh, and I’m back. Miss me?
Absolutely.
The joint wasn’t the same without you.
Welcome back! Do you have tales of adventure and great exploration? Do tell, please!
TBTB will do everything, EVERYTHING, to keep this charade of disaster capitalism going… except help the avg person make more money.
We had this discussion in our office 3-4 years ago, that the Fed will move heaven and earth (if they could) to support home prices. It’s too dangerous to the economy and TPTB themselves to NOT support prices to the greatest extent they can.
Ummm…who is insuring the mortgages?
and who is it that keeps saying there is difference between the Rs and Ds?
Not me.
And for those who continue drawing stupid juice from the well of R&D Stupidity, you get precisely what you have coming. NOTHING.
There are some differences:
In my state the D’s are hell bent on giving in state tuition rates to illegals, even though public college funding here has reached a crisis state.
Our R’s are more than happy to allow fracking, even though we are utterly dependent on aquifers to supply our drinking water. And they want to end all higher ed funding (it’s already cheaper to send the kids to college in Wyoming, Kansas and New Mexico thanks to the WUE program)
“the D’s are hell bent on giving in state tuition rates to illegals”
Well, there’s ILLLEGAL and there’s illegal.
It someone came here as an infant and graduated from a public school, I don’t mind if they attend a public university.
“It someone came here as an infant and graduated from a public school, I don’t mind if they attend a public university.”
What you are saying is that going to a public university at in state rates is something that is earned by a student by going to school. I don’t think that is why public universities are created and subsidized by states. They are there to provide an educated workforce for the businesses in that state. And if your goal is to train engineers and whatever else is needed for the businesses in your state, why would you use those resources on people who can’t legally work there?
Now, if state universities are just to keep workers in the state by showing that one of the benefits is a reasonably priced college education for their kids, that is an entirely different analysis.
My impression is that the state university systems were more about the former than that latter.
Will these foolish Democratic legislators own up to their role in tempting another generation of low-income home buyers to buy unaffordably-priced homes which ultimately lead to household financial ruin?
…all in the name of affordibility.
the bill is co-sponsored by a D and an R.
Great to know that housing market stupidity is bipartisan…
the bill is co-sponsored by a D and an R.
And there it is folks. Need anymore evidence that the false dualism of R&D want everyone enslaved to banks?
All of the politicians get brownie points if their constituents live in an appreciating asset.
I can’t name one thing that makes the masses feel better.
But houses depreciate.
Houses deteriorate over time. The land on which they sit generally does not.
Inflation causes all prices to go up over long periods of time, all else equal.
No. Houses depreciate.
For now. But for the period starting around 1950 to about 2006 (56 years), housing pretty much always appreciated. So, will housing pretty much always depreciate for the next 50 or so years?
No they didn’t. They tracked inflation like everything else…. except for wages.
They tracked inflation like everything else…. except for wages.
Such an interesting statement that is, no? I mean, you would think wages would would be the driver for that thing called inflation…
Which came first, the wages or the inflation?
“They tracked inflation like everything else”
But the principal balance on the mortgages did not for those who paid down and off their debts.
I wonder if they have CARP?
Cave Affordable Refinance Program
Or maybe it could be CAMP
Cave Affordable Modification Program
Can a Cave be Robo signed?
Is there a COA fee?
Was there a Cave Bubble?
Do they have Cave Reduced signs?
In China, millions make themselves at home in caves
Some are basic, others beautiful, with high ceilings and nice yards. ‘Life is easy and comfortable here,’ one cave dweller says.
March 18, 2012|By Barbara Demick, Los Angeles Times
Reporting from Yanan, China — Like many peasants from the outskirts of Yanan, China, Ren Shouhua was born in a cave and lived there until he got a job in the city and moved into a concrete-block house.
His progression made sense as he strove to improve his life. But there’s a twist: The 46-year-old Ren plans to move back to a cave when he retires.
http://articles.latimes.com/2012/mar/18/world/la-fg-china-caves-20120318 - 46k -
His progression made sense as he strove to improve his life. But there’s a twist: The 46-year-old Ren plans to move back to a cave when he retires.
How do you say “Wilmaaa!” in Mandarin?
Oh wait, the Flintstones actually had a house … never mind.
Ha! He thinks he will be able to retire?!
Scott Walker wins his recall election in Wisconsin. It’s all good. That a duly elected Governor was recalled by a Public Union Machine— one that “negotiates” not with private bosses, but with taxpayers who on average have lower pay and fewer benefits than the union members— was itself a mockery of the intent behind our political system.
Weirdly enough, there is nothing to stop the filing of another recall against him tomorrow, and one after that, ad infinitum.
One hopes the loss and the cost to the Unions will deflect such behavior.
In meanwhile, Union members for first time in WI, now have choice, and more than 50% of the teachers unions– empowered for first time not to be union members– have left the union, no longer forced to pay dues.
And, WI’s budget approaches balance for first time in a long time, and unemployment is down. Compare those features to neighboring Illinois, which shows signs of being potentially the first state to effectively go bankrupt, while driving away business with monstrous tax increases.
Not sure how all this impacts WI’s housing market, but it bodes relatively well.
Most polling before elections is very inaccurate ,and CNN was still calling it a ‘narrow win” at 11 PM last night.An Over 7% above win is not that narrow.
It looks now like Walker’s people let everyone think Labor’s predictions were accurate ,to get Walker’s folks out and motivated.
LOL, Barrett was slapped by one of his “supporters”. Nice, huh? Although it does sort of illustrate the general character of the people behind the recall. Meanwhile, Amy Goodman is spewing pea soup all over the place while her head swivels around 360 degrees.
http://content.usatoday.com/communities/onpolitics/post/2012/06/tom-barrett-slapped-wisconsin-recall-scott-walker-/1
Jeeze…that nice old man. It was good of him to even run. Nobody needs that headache.
Obama won 53-47. That was a landslide win that gave Obama a mandate to do whatever he wanted, according to the MSM. Remember the “WE ARE ALL SOCIALISTS NOW” cover from Time Magazine after his win?
Yesterday Walker wins 53-47. That is a razor thin win that means the electorate in WI is deeply divided and means Walker should really cave to the unions after all, according to the MSM.
Oh and of course the win by Walker also means Obama is stronger in WI because of it. No really, this is what the talking heads on MSNBC were saying yesterday.
At least in the Soviet Union there was only one Pravda. Here in the US we have thousands of Pravdas. You could cut a lot of fat outta the media, really.
I smell a Veep offer.
I hope not. Walker needs to keep doing what he’s doing in WI.
Walker 2020!
You mean sell the rest of the public infrastructure to the Koch Bros. for pennies on the dollar? I hope you like toll roads.
Koch Brothers….the Haliburton of 2012 for liberals.
Aw heck, Illinois is firmly in the pocket of Democrats and we have toll roads galore.
I’m of the mind that Walker’s recall escape will prove to be a Pyrrhic victory. Sort of like Bush’s 2004 re-election. Within a year, Bush was one of the lamest ducks ever to have a second term as President.
Yes, Walker held on to his office. But the WI Senate just went Democratic.
“Yes, Walker held on to his office. But the WI Senate just went Democratic.”
The legislative session won’t reconvene again until 2013. That is after the 2012 election where
a) due to redistricting alone from the 2010 census Republicans are expected to win 2 or 3 more seats
and
b) there are a lot more Dem sens up for re-election than Reps.
So the bottom line is this “victory” for the Democrats is as meaningful as coming in 32nd in a 33 person race as opposed to coming in 33rd.
For what it is worth, the talking heads (horse race analysis as opposed to policy analysis) in DC say that Walker is an unlikely veep pick because he is more interesting than Romney and Romney is unlikely to want that dynamic in his campaign.
because he is more interesting than Romney and Romney is unlikely to want that dynamic in his campaign.
Well that would greatly narrow down his field of choices. Maybe Al Gore will switch parties and run with him.
So does that mean that Romney’s running mate will be another Mormon?
How will that win the Rapture and Ted Haggard family values voters?
Actually Walker is kinda boring. Not sure where they’re getting that…if he had more personality, he might have been able to bring more people along with his program. But then, maybe not.
Walker might have been boring originally, but being the first governor to win a recall election is interesting all on its own.
The analysis is also used (earlier much more often) about Chris Christie.
“Actually Walker is kinda boring. Not sure where they’re getting that…if he had more personality, he might have been able to bring more people along with his program. But then, maybe not.”
Huh? He won more votes yesterday than he won in 2010. I’d say he brought plenty of people along with his program. The unions are 0/3 in trying to undo what Walker has done. And yet the left still acts as if he’s somehow going against the will of the people. Amazing.
“Not sure how all this impacts WI’s housing market, but it bodes relatively well.”
I suppose fewer public servants will be buying houses. Still, I suppose that the banksters will continue to create an artificial shortage by keeping everything in the shadow inventory.
Did the Koch Bros. end up buying that Wisconsin power plant in a no bid process?
Walker made union members pay 8% - yes a whopping 8% - of their health care costs. And because of this they can’t buy houses anymore? Give me a break.
I’m thinking that perhaps job insecurity (welcome to our world) would be the driving force behind not buying.
“I’m thinking that perhaps job insecurity (welcome to our world) would be the driving force behind not buying.”
Oh no!! You mean to tell me public union members won’t have guaranteed lifetime employment? The horror of it all. Damn that eeeevil Walker. How dare he not allow public union members to work for 25 years, retire at 50 and collect full pension and health benefits for anotehr 30 years?!??! Talk about a monster.
“Walker made union members pay 8% - yes a whopping 8% - of their health care costs”
8% of their hospital costs, or 8% of their insurance plan?
I see your pair of Kochs and raise you a Soros.
Sigh… thoughtful political commentary is so scarce these days…
EvilDoc is that you?
Duh
Did Soros get any no bid deals on public property? Just curious.
+1
I smell vote rigging.
—I smell vote rigging.—
Agreed. Walker did well less well than he should have done. Fishy.
I live in WI so I’ve been keeping a close eye on things. Also I have no dog in the fight, they both suck, I was one of the 20K or so who voted I yesterday instead of the psuedo-choice of selecting D or R to lead us down the same path just with different PR campaigns. Enough background to prove I know what I’m talking about:
One strategy when you’re losing is to hire a “polling agency” to release the results you want people to hear. Just like in the housing industry you hire a supposedly independent appraiser to assess the value of the house, or you hire a supposedly independent ratings agency to evaluate the safety of financial securities. Anyway, the relevance to the story is “real” polling organizations showed a R win by well over 10 points. There are some press releases from “polling companies” paid directly by the D campaign that showed the Ds losing by only 5 points or so, but everyone laughed at them, ha ha how dumb do you think we are (hmmm, don’t answer that).
So R paid polls estimate a R win by 15 points, real polls estimate a R win by over 10 points, crazy crackpots with political ax to grid estimate a 5 point win, actual result 6 point win. I agree, something fishy there. There must be a lot of dead people voting D? Just doesn’t add up. The apparent fact that around 1 in 20 votes were corrupt / fake did not affect the election, but it is pretty freaky and worrisome.
Also I’m pretty tired of hearing how a 53/47 win shows decisive dramatic statewide support for the winner, or an utter collapse and crushing defeat of the loser, as if it were a 90/10 win. Ugh gag me with a spoon. This is like a “one attack ad” or “one gaffe” win. Mighty narrow margins indeed.
If the -D put up Feingold, or the -R put up ancient Tommy Thompson, I might not have voted -I. Then again Tommy would not have been stupid enough to do the stuff that lead to the recall, to begin with, so…
I smell vote rigging.
Yeah, that’s it…vote rigging…voter fraud! Dead people voting!
Yeah, that’s the ticket.
The real issue — Walker’s quiet privitazation of the state resources — was lost in all the union gabbing. Walker is running the state like a business, vulture capitalism and all. Sell off the assets and kick those non-perfomers (retirees) to the curb. Well, it’s what they voted for.
The real issue — Walker’s quiet privitazation of the state resources — was lost in all the union gabbing.
But, but George Soros is also a jerk, so that makes it OK, right?
MOMMY! There’s a Saul Alinsky boogeyman community organizing under my bed!
Ox:
If only union members would get it …its the abuses the abuses….
Like calling in sick then working the next shift for double pay…like spiking your last years pay to get a lifetime increases.
Heath insurance should only be for the retired person if you want to cover your spouse and family well pay for it…
It does take a certain mindset to go to the same job or place for 30 years…I never had that.
Plenty of the ones in state/local govt bounce around from agency to agency, and build up their retirement along the way.
Message From FDR
All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations when applied to public personnel management.
The very nature and purposes of Government make it impossible for administrative officials to represent fully or to bind the employer in mutual discussions with Government employee organizations.
Particularly, I want to emphasize my conviction that militant tactics have no place in the functions of any organization of Government employees.
A strike of public employees manifests nothing less than an intent on their part to prevent or obstruct the operations of Government until their demands are satisfied. Such action, looking toward the paralysis of Government by those who have sworn to support it, is unthinkable and intolerable.
+1 Banana…
And in California:
San Jose and San Diego passed measures to sharply curtail public pensions, and both won handily (65-70%).
And so far, in CA, they have voted DOWN a new tax on cigarettes (it’s close, but a no vote so far).
People are fed up with public pensions, and would rather curtail them than tax cancer sticks further.
To take it to its cynical extreme, cigarettes are looked upon more favorably than public pensions…
“And so far, in CA, they have voted DOWN a new tax on cigarettes”
I hope that holds up, these draconian taxes on cigarettes have to stop.
Me too. I’m looking forward to having a conversation with my MIL, who is a big union supporter, and rabidly anti-smoking.
Wall St. (et al) answers to no one, controls EVERYTHING, yet voters blame unions, pensions and welfare queens for our problems.
You can’t fix our kind of stupid.
They are both at fault and both need to be reigned in.
You keep trying to cover to insane public unions that are bankrupting cities/towns/counties/states all by themselves by saying “but look -those bank fraudsters are bad so we need to ignore all the bad stuff over here.”
That logic didn’t work with my 4 year old kid. It will not work here.
1500 bankers went to jail for the Saving and Loan scandals. We need to do that again.
Public unions are out of control. They need to put on a tight leash just like it was before when government was affordable (low pay, small pension but some good benefits). No more strikes. No more closed shops. No more spiking pensions and retiring on disability only to go on to run marathons. Pay for your own damn pensions or convert to 401ks. Pay more for your health care. Etc.
+1 again for the Banana…Your on a roll today…
insane public unions that are bankrupting cities/towns/counties/states ??
The guy that was appointed to reconstruct Stockton California’s budget after their bankruptcy said that before he got there that within 5 years the police & fire wages, benefits and pension contributions would consume 100% of the revenue generated to the city…Think about that for a moment…
New mortgage assistance rules in place this summer
by Kim Miller
New rules that will allow more Floridians into a $1 billion mortgage assistance program could be in place this month as the state races to update housing counselors on changes to the federal plan.
The Florida Housing Finance Corp. approved a revamp to the Hardest Hit Fund in April and the Treasury Department signed off on the changes last month.
But counselors from 90 agencies statewide who deal directly with homeowners and their Hardest Hit applications need training in the new standards which increase the amount of money homeowners can receive while eliminating some eligibility roadblocks.
Homeowners are eager for the changes to take effect. Although there is no longer a limit on how late a borrower can be on mortgage payments, they will still be blocked from the program if a final foreclosure judgment is entered against them.
The Hardest Hit Fund is meant as a bridge for homeowners looking for work or higher paying jobs. Those who are eligible can receive up to a year of mortgage assistance with a cap of $24,000, and up to $18,000 to bring a mortgage current. Homeowners seeking only to have their mortgage arrearage paid can get up to $25,000.
The program was announced in 2010 and was debuted statewide in Florida in April 2011. As of last month, 5,747 homeowners statewide had been approved for Hardest Hit money.
The agenda item corporation board members approved in April notes that just 12 percent of homeowners receiving the monthly mortgage stipends had found jobs with incomes high enough to make their loan payments affordable at the end of the six months and qualify to have their arrearages paid.
Under the new plan, the arrearages are paid at the beginning of the process.
For information and applications, go to flhardesthithelp.org or call (877) 863-5244.
This entry was posted on Tuesday, June 5th, 2012 at 1:48 pm and is filed under Banking, Florida economy, Foreclosures, Housing affordability, Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
3 Responses to “New mortgage assistance rules in place this summer”
1
Get in the Game Says:
June 5th, 2012 at 3:34 pm
Behind on your house debt but NO a foreclosure has yet to be filed
NO PROBLEM – the State of Florida will drop money from the sky just for YOU!
Typical government – giving away more ‘FREE’ money to house Debtors to aid in their house debt…
Just amazing!
2
Ralph Ruiz Says:
June 5th, 2012 at 11:42 pm
This program would be great if the actual banks knew about them. From experience all lenders are do not have to participate in these programs, that have been enrolled since 2009. Qualified homeowners unfortunately are not receiving these programs!!! I work with these banks on a daily basis and I will tell you this is another program for our gov’t to save face. How about enforcing these rules and programs that qualified homeowners should receive. Most lenders will tell you they never even heard of this program. What a disaster!!! Lets try putting a price on how much should you give a young family that where forced out of their homes because they where lied to for months by their banks. Lied to about how they qualified for help but after 9months of not paying mortgage payments on banks request. then are escorted out of their homes by a sheriff. How much money should fall from the sky to give that family. If you want help get an attorney!!!!!!!!!!!!!!!!!!!!
Financial ruin plaguing former Philly athletes
Niel Hartman
Comcast Sportsnet
June 5, 2012, 9:00 am
Allen Iverson, Lenny Dykstra, Terrell Owens, David Akers and Curt Schilling.
What do these former Philadelphia star athletes have in common? They are all experiencing reported financial distress after years of making millions of dollars as a professional athlete.
It has become way too common in professional sports that the players we cheered during their playing days suffer financial ruins after the applause ends. But more importantly after the checks stop coming.
A few years ago, Sports Illustrated estimated that 78 percent of NFL players are bankrupt or facing serious financial stress within two years of ending their playing careers. Two years!
It isn’t much better for professional basketball players. According to Sports Illustrated, 60 percent of NBA players are broke within five years of retiring from the game.
It has been almost five years since Schilling retired from Major League Baseball. His situation is what triggered my story. Last month, Schilling had to lay off his entire staff of 300 people from his video game company, 38 Studios. The company is on the brink of bankruptcy and Rhode Island taxpayers may have to pick up the tab on a $75 million loan guarantee that lured 38 Studios from Massachusetts.
Schilling says he has invested $50 million in the business and faces possible financial ruin if 38 Studios collapses. Schilling’s problems surprise me. I thought he had built himself a solid post-baseball career but apparently he tried to grow too big, too fast.
Lousy investments, frivolous spending, ridiculous entourages all contribute to undoing of these athletes. Players and coaches are making more money than ever and yet it seems like every day we read about another financial mess. These guys are human. They do make mistakes. But it doesn’t lessen the shock of the millions of dollars that they have lost.
“These guys are human. They do make mistakes.”
And these mistakes should serve as a less to others but for some reason they don’t.
“less” = “lesson”
you mean these physical freaks aren’t financial geniuses too? even with all that juiced-up audacity? who knew.
“you mean these physical freaks aren’t financial geniuses too?”
Some are, most are not.
Children’s hospital named after Peyton Manning
Updated: September 5, 2007, 7:09 PM ET
Associated Press
INDIANAPOLIS — Peyton Manning has a collection of MVP trophies and starred in numerous commercials. Now, the Colts quarterback has a children’s hospital named after him.
The St. Vincent Children’s Hospital was renamed Wednesday as Peyton Manning Children’s Hospital at St. Vincent.
Manning has had a strong public and private relationship with the hospitals since he joined the Colts in 1998. He said he was honored to be so closely associated with the children’s hospital, which St. Vincent opened in 2003 to care for critically ill and injured children.
“In the NFL, the name on the back of the jersey is emblematic of a player’s commitment to contribute in any way he can to the success of that team,” Manning said. “For me, having my name on the front of this building carries with it much the same — a weighty responsibility to contribute to the many victories ahead here at St. Vincent.”
Manning, who was joined by his wife and parents for the announcement, said he has met many of this hospital’s patients and their families over the years.
The hospital lobby was packed with dozens of children wearing blue Manning jerseys, and they cheered loudly as he was introduced during the ceremony. Manning later teamed up with 14-year-old cancer patient Sydney Taylor of Brownsburg to unveil the banner bearing the hospital’s new name.
Officials didn’t say how much money Manning has donated to the facility.
Manning’s time in the spotlight Wednesday was much different from the attention Atlanta Falcons quarterback Michael Vick has received for his involvement in illegal dogfighting. Manning’s father, former NFL quarterback Archie Manning, said role models such as his son are good for the NFL, and he wishes more was said about them.
“Every time a player stubs his toe, there’s about 10 doing really good work, and it doesn’t always get reported,” he said. “There’s some great people in this league, some great programs going on.”
Archie Manning said he felt he witnessed his son’s “greatest moment.”
“I think a lot of people, from a distance, think you’re proud because he threw so many touchdowns or he won a Super Bowl,” the elder Manning said. “I think when you give back and help other people and better other people’s lives, as a parent, there’s no more pride than what that gives you.”
The hospital, which has sites on the north side of Indianapolis and northern suburban Carmel, specializes in treating children with complex, chronic or congenital conditions. It has 46 inpatient beds and 15 beds in a pediatric intensive care unit, as well as 17 private rooms in the pediatric emergency department.
http://sports.espn.go.com/espn/wire?section=nfl&id=3006586 - 72k -
I would guess that Manning still has a lot of income from endorsements. When athletes are no longer in the spotlight, most of them lose that revenue, too.
Donations are not financial management.
It seems like a lot of guys just turn everything over to some money guru, because they just don’t have the time or acument, then get ripped off. At least that gives them someone else to blame.
I heard a story about a week ago how Andre Agassi had a financial adviser that early on put him on a budget (of a few hundred thousand dollars a year). The rumor was that he “made” him sell a bunch of cars, and scale down his life to fit this budget.
This was all with the intent to allow Andre to sock enough money away that it would last.
Either a) it was giving the adviser more money to skim from (my cynical side), or b) the adviser was doing well by his client and earning his fee.
In any event, Andre is not in the press negatively for financial problems, only his foundation for helping education.
I’m sure there are good ones, but the wise superstar should learn to keep an eye on things himself. You’d think they’d be terribly interested in their money. But then again they’re pretty young when they make it big.
C’mon people, they’re athletes. Most of them would not have been admitted to college based on academics. There’s no way most of them can learn how to responsibly manage a large but short-lived income stream.
Bill makes a good point. And that is one that is, ahem, not very politically correct.
Sorry to say it, but a lot of athletes just aren’t that bright. And, alas, when you’re not that bright, you make big errors in judgement. Especially when it comes to handling your money and hiring others to manage your affairs.
And this is one of those elephants in the HBB room. We’re a pretty smart bunch. I think that we often forget what it’s like to go through life without all the brains we have.
To be honest, I’m not sure *I* could manage a large but short-lived income stream. I would know enough to buy a small house in podunk for eventual (young) retirement, but to make the original nest egg last for years? I haven’t a clue.
“And this is one of those elephants in the HBB room. We’re a pretty smart bunch. I think that we often forget what it’s like to go through life without all the brains we have.”
Even with brains, you can get hoodwinked. Especially if there is concussion induced brain damage.
I know a couple of said athletes. They are not dumb…then again, they went to a school that still requires some academic standards for their athletes.
One of these athletes that I know invested some of his money with Stanford…last I spoke to him about it (when the story was originally breaking), he didn’t know if he was going to get any of his money back. Fortunately, I think he has bits and pieces of his nest egg scattered around.
Also worth noting…these couple of said athletes are working following their professional athletic careers (one played for 10 years in the NFL–and working now). My sense is that they are not destitute, nor did they live too large while playing. It is amazing though how much money you need to save if you are conservative and want to live off the interest. Especially with the Fed forcing rates down.
Makes you wonder how many folks will retire if their nest egg paid them more than 0.1%…
I thought anti-war types hated the war, but still supported soldiers. Turns out they’re anti-war AND anti-solider.
“Joel Morgan, a National Guard veteran who served in Iraq, Afghanistan and Guantanamo Bay, has sued a Boston landlord, claiming she refused to rent an apartment to him due to his military service, the Boston Herald reported Monday.
“It just is not going to be comfortable for us without a doubt. It probably would be better for you to look for a place that is a little bit less politically active and controversial,” the landlord reportedly said in a voicemail played for the Herald in the presence of Morgan’s attorney.
Sgt. Joel Morgan, 29, said the two-bedroom $1,220-a-month Savin Hill apartment that property owner Janice Roberts, 63, showed him in April was perfect. But he claims Roberts told him in an April 9 voicemail that renting to him would be a conflict “
When the lawsuit is done, he should be able to buy himself a very nice house
That said, anecdotes don’t prove the rule, and both sides can yield bad individuals.
Where did this story appear? Didn’t see it on Drudge Report.
Saw it on three new shows last night. Not sure about Drudge. Wouldn’t be like him to be behind the curve on this, but no one catches everything
It’s amazing the sort of trendline that one can make with a single data point. R^2 = 1!
Not sure veterans are any kind of protected class.
This case could set a precedent.
This case could set a precedent.
With a volunteer army, I wonder about this. Should they be a protected class?
Certainly, with a draft in place, I’d argue discrimination shouldn’t be allowed. But the folks who are serving now do so by choice. I’d consider this equivilent to refusing to rent to someone who works for planned parenthood or move-on.org (or whatever other organization which might not align with your personal political beliefs)
The only ones we should bend over backwards and help are those who were drafted in ‘nam…against their will….all others knew they could die or get maimed.
“…Turns out they’re anti-war AND anti-solider….”
Turns out you’re right. Without people who voluntarily take pay for going into other people’s countries to kill them, there would be no wars.
Why would a landlady want that element in her apartment building? Or are you saying she should be forced to go against her beliefs in service of political correctness?
She’d be quite the hypocrite if she voted for the Assassin in Chief, or the one who ran against him.
Or maybe just hoodwinked after the fact.
Voting for the candidate you prefer does not require you to support all of that candidate’s actions (past or present). Voting for a candidate doesn’t make you a hypocrite if you explicitly despise one or more of their actions (past or present). All voting does is indicate that you would prefer one candidate to the others or even that you think voting for one candidate would help prevent a win by a candidate you want even less.
Citizen’s get to vote. And citizen’s don’t have to use your standards for voting when they make their own decisions.
Voting for a candidate doesn’t make you a hypocrite if you explicitly despise one or more of their actions (past or present).
I think the hypocrisy comes in when people explicitly call out specific wrong-doings of a candidate (Obamacare), and then line up in defense of a guy who wrote the blueprint, as but one example I find myself having to arbitrate amongst peers.
You can’t, if you want others to perceive your rantings as having any shred of integrity, call out those wrong-doings as your main gripes then turn around and vote for a person who projects those same flaws.
In general I don’t think the mainstream voter is this way, which is why I think BO and MR are the favored candidates. I think its the far right/left that tend to fall into this trap.
While Barry Sanders was playing, he lived in a $200K house in Detroit. Granted $200K buys a nice house in the city, but still, he didn’t build a $10M mansion like most pro athletes.
Cry me a river.
The reality is that there are very few people who are going to be more than marginally successful as investors. The ones who are highly successful are inclined to spend their time on investing or managing businesses. Most people have other interests that claim their time. I suspect a lot of doctors also invest badly.
I am surprised that NBA players fare better than NFL players. ISTM that more NBA players leave college earlier than NFL players. Superstar college athletes would probably do better if they majored in finance and business. But many of them are not inclined that way.
Lenny Dykstra ??
What is hilarious is FOX Bulls & Bears use to put him on the show as some market analysts…
As far as becoming broke…Their ego’s are usually their downfall….Thank goodness that for every T. Owens there is a Nolan Ryan…For every Lenny Dykstra there is a Cal Ripken Jr…
I have a good friend that had a nice carear in the NFL…It was a long time ago so the money at that time although still big for the day was not monstrous like it is today…I spoke with him shortly after he retired and he told me that the best thing that ever happened to him was his agent Leigh Steinberg made him invest almost all his bonus money in well located investment real estate…Over 30 years later he still owns the same properties…Lets just say, he is doing quite well…
I love reading about sports stars & entertainers who don’t squander everything, and make their riches multiply. Gives me faith in the human race.
One of my neighbors was a college football player who later had a pro career in Canada. He used to do yardwork for me.
Then he started hanging around with a lowlife guy from ’round the corner, and that was the end our business relationship. I didn’t want Lowlife coming around here to hang out with the yard guy while the yard guy was supposed to be working.
One of the things that struck me about Yard Guy was his strength. He could dig a hole in record time. It was amazing.
He also had terrible arthritis. I suspect it was from his playing days. That’s probably why he was buddying up with Lowlife. That guy had drugs, and I’m certain that those drugs took the yard guy’s pain away.
2 California cities approve pension cuts
By The Associated Press
Voters in two major California cities overwhelmingly approved measures to cut retirement benefits for city workers Tuesday in contests being closely watched as states and local governments throughout the country struggle with mounting pension obligations.
In San Diego, 68 percent voted in favor of Proposition B while 32 percent were opposed. More than of precincts reported.
The margin in San Jose was even wider, with 71 percent in favor of Measure B and 29 percent opposed. Nearly half of precincts reported.
San Jose Mayor Chuck Reed called the vote a victory for fiscal reform.
“The voters get it, they understand what needs to be done,” he said in an interview.
More…
http://nbcpolitics.msnbc.msn.com/_news/2012/06/06/12084195-2-california-cities-approve-pension-cuts?lite
I predict more short sales.
The other day, a number of HBBers commented that a person 60 years old shouldn’t be investing in the stock market. Does that include dividend paying stocks that have paid dividends for decades? I’m rapidly approaching retirement age and starting to think about an income flow when I get there. I’m risk-averse, but CD rates stink, as everyone knows, and I don’t want to become a landlord, so the only thing I’ve found less threatening is blue chip dividends. Not relying on blogs for investing advice, just wanted to hear other viewpoints, if anyone cares to comment.
Simple advice:
Retirees should make sure they have enough money in a safe place to meet their day-to-day living expenses. Beyond that, invest in a diversified portfolio of stocks, bonds, gold, FOREX, PMs, etc to suit your investing style.
Good advice Mr. Bomb Thrower, and if I read a bit between the lines, it sounds like you don’t recommend stocks to help meet the day to day expenses.
enough money in a safe place to meet their day-to-day living expenses.
What does that mean? Cash under the mattress, or something like dividend yielding stocks? That was his question.
Approaching 60 you should be dialing down risk.
What that means to you may be different to someone else.
Solid blue chips that pay nice dividends sounds alot less risky than Facebook…
What gets me are the seniors that take out 30 year mortgages in their 60’s.
“the only thing I’ve found less threatening is blue chip dividends”
The threatening part about stocks is its exactly like playing poker… if you’re at the poker table and you don’t know who’s getting played as the fool, then the fool is…
It takes a lot of research and experience to not be the dumbest guy at the stock table. If you’re willing to do it, that’s great. Essentially, do you think you can beat me to get my money?
Return of principle matters a lot more than return on principle.
Its called preservation of principal and it should be rule #1 for anyone at 60 unless you you won’t miss it if you lose it…
Rule # 2 is refer back to Rule #1….
As far as what to invest in, I done’ own and never have owned any stocks or bonds but, if I were to invest in either I would either buy muni-bonds or something like Coca Cola Cos.
That’s what I was thinking. Stocks like Coke, IBM, Johnson and Johnson. But, I’m also a “bird in the hand” kind of person, and the thought of losing principal does make me a little itchy.
When you’re my age, the thought of losing principal is downright scary.
“muni-bonds”
SCDave in your mind, draw an imaginary graph of the likelihood of munibond default in the 80s, 90s, 00s, 10s and near future. What does it look like? What do you predict as the cost of gold plated city pension plans collide like a bug on a windshield of imploding property value / prop tax revenue? Ouch.
Yes, yes, tax free income, was a great investment decades ago… kind of like houses… Still, what matters first is return of principle not return on principle.
Another icky graph to draw is muni interest return, fake manipulated inflation rates, real world inflation rates, and the most important line is a calculated muni return minus real world inflation.
How is return of principle different than hiding it under a mattress?
Don’t forget GM, the Bluest of the Blue Chips!
With the big financial firms openly doing false accounting to look solvent, and the FedGov encouraging it, I see little encouragement that flagship companies in general are financially sound, just because they say so or are paying a dividend.
GM was sending out red flags long before Obama had to rescue them.
I see nothing wrong with keeping blue chips for the dividends, so long as you keep an eye on them so you can sell quick if you have to. The portfolio balancing is for peak-earners who don’t have time to keep track.
GM was also paying out dividends pretty close to their failure.
How do you keep an eye on things when you don’t have time to keep track? I think the “balancing” guidelines is more for the witless than the timeless.
Since most people these days have little choice about being exposed to the stock market thanks to 401ks, I don’t see what choice they have.
Safe investments have been systematically destroyed, again thanks to Wall St.
Safe investments have been systematically destroyed, again thanks to Wall St ??
Th safest investment you ever made was when you got your first job and paid SS tax…That is until R’s put their crosshairs on it…
With that said, will see how this election plays out…Romney is going to have to take a firm position on many significant issues…Outing him on those issues will be the Obama teams #1 objective when we roll around to October…
It matters little what position Romney takes on various issues.
Sc Dave,
Unless someone comes up with a way to make 1+1=6, SS is not viable. You can blame Republicans if it makes you feel any better, but math is politically neutral.
Remove the income cap on payroll taxes and it’s totally viable.
R’s put their cross hairs on it?
From Wikipedia: “The (social security trust) fund is required by law to be invested in non-marketable securities issued and guaranteed by the “full faith and credit” of the federal government.
The full amount that the govt collects from all sources every year is paid out the same year. It has always been that way. Nothing is being set aside; nothing ever was. There is no money in the trust fund and there never was. All that’s there (and all that was ever there) is IOU’s that taxpayers will have to pay back.
As the Wikipedia article also says, SS is “pay as you go.”
And I hear banks actually lend out the money people deposit with them.
If we can’t pay off the social security bills, then we can’t pay off the rich guys’ treasuries either. Good for the goose, good for the gander. NO one’s getting paid if we the people aren’t.
even the worst 401k’s have bond funds and money market, don’t they?
turkey, when you are in your 60s, you can move 401K money into other funds without penalty. At least my plan allows the seniors to do such, and the IRS does too.
Per Jack Bogle the percent in stocks should equal 100 minus your age. Of course stocks are overprices and headed for a fall. But every other asset class is in the same situation, and cash yields zero.
and cash yields zero ??
Yeah but isn’t it nice to wake up in the morning and no its still there even if you lost a little to inflation…
“cash yields zero.”
otherwise known as 25% higher return than buying into the facebook IPO.
Some resource stocks that are asset rich and not yet developed are selling at 1% of their historical value. Also, some vacant lots ready for commercial building are about 25% of their historical value.
Even though dividend bearing stocks are at a premium to the market right now, most are trading well below their average “highs”.
Investing in equities now before the retail crowd come back might be a good idea.
Invest only what you can lose.
“Also, some vacant lots ready for commercial building are about 25% of their historical value.”
Hmm during the bubble didn’t we overbuild retail square footage per person to about double what we used to need at the same time as online shopping has exploded?
By that metric, if online shopping could be magically waved away, you’d only have to wait for the population to quadruple to 1.2 billion in order to reach the historical price again. Even with illegal immigration that could take awhile.
One problem with a permanent long term secular decline is you can hold back the pricing effects a little while with a credit bubble, but when it bursts, it’ll take awhile for people to figure out that its a permanent long term deflationary spiral. If the median middle class take discretionary pay adjusted for real inflation declines for a couple generations, as it has, then the price you can get for the commercial land J6P uses Must decline at the same rate, barring temporary increase or flatline due to a credit bubble, etc. If J6P has less money every year, then either the price or demand (or both) of what he buys must go …
Another way of looking at it is interest rates go up, prices go down. We’re at multigenerational low interest rates now, so the inevitable future price of commercial real estate, if interest rates quadruple, inherently absolutely must go ….
Finally ignore the politically falsified unemployment figures. Look at the labor force participation rate and see which way its going and what influence that would have on price. Hmm permanent long term decline in the number of people “going to work”. Not looking good.
Hmm during the bubble didn’t we overbuild retail square footage per person to about double what we used to need at the same time as online shopping has exploded?
Best question asked on the HBB today. Thank you!
Commercial real estate in Canada can be used for medical related offices generally. Did you know the population is aging?
Hmm during the bubble didn’t we overbuild retail square footage per person to about double what we used to need at the same time as online shopping has exploded?
I agree that this is a great question, but that it is also probably dependent on location. For example, in Portland, many of the old close-to-town neighborhood stores flourished until the main highway (I-5) was built. At that point, the national chains also sprouted, and the old neighborhood stores got boarded up or were used to sell crack or cheap burritos for 30 years.
Fast forward to today, and gentrification and the whole “shop local” meme has brought back many of those neighborhood stores. Granted, in some places turnover is greater than others and we probably have more eateries than we need (locally sourced ingredients or not), but in some places there is a parallel thread of non-online shoppers who find value in community stores.
Beware of ephemeral bear market rallies.
June 6, 2012, 9:47 a.m. EDT
U.S. stocks rally; Dow back in black for 2012
By Kate Gibson
NEW YORK (MarketWatch) — U.S. stocks opened sharply higher on Wednesday, lifting the Dow Jones Industrial Average (DJIA +1.22%) back into positive territory for the year, as pressure mounted on policy makers to come up with additional stimulus.
…
First Bill Clinton called for the extension of the evil Bush tax cuts. Not to be outdone, today former Obama economics adviser Larry Summers has called for the same thing. So I’m confused. The evil Bush tax cuts are - per Obama and most Democrats - the reason for everything wrong with America today. Yet 2 top Democrats, on two consecutive days have expressed support for continuing them. And of course this all comes after Obama and a filibuster proof Democrat senate extended the evil tax cuts in 2010.
If I didn’t know any better I’d think Democrats secretly like low taxes.
“The evil Bush tax cuts are - per Obama and most Democrats - the reason for everything wrong with America today.”
They certainly are one of the main causes of the deficits, which began to balloon after the cuts took place. I remember in the early years of the Bush admin, when they projected budget surpluses that extended into the distant future. I was a Republican back then and was very pleased with the news. Then the deficits returned and grew steadily (and would have been worse had not so many war costs been kept off budget).
For me, that was the beginning of the end of my tenure as a Republican.
Defense Chiefs Signal Job Cuts
“WASHINGTON—U.S. defense contractors are preparing to disclose mass job cutbacks ahead of November elections if Congress fails to reach a deficit-reduction deal by then, industry officials said.”
http://online.wsj.com/article/SB10001424052702303506404577448650339905144.html?mod=googlenews_wsj
“They certainly are one of the main causes of the deficits, which began to balloon after the cuts took place.”
False.
Tax revenues increased every year after the tax cuts. Problem was spending grew faster than the tax revenues. We didn’t/don’t have a “too little tax” problem. We had/have a “too much spending problem”.
The question is, do the increased tax revenues correlate more strongly with the tax cuts, or with increased spending?…
when you sign something to extend my something it becomes your something.
will obama extend the obama tax cuts?
They secretly like low taxes for Generation Greed, to be paid for by higher taxes on younger generations later.
The differences is Republicans are in favor of lower taxes for Generation Greed, to be paid for by the collapse of public services and benefits for younger generations later.
I have always like these quotes:
“The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents – #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back — $30,000 for every man, woman and child. That’s irresponsible. It’s unpatriotic.” Senator Obama, 2008
“Today I’m pledging to cut the deficit we inherited in half by the end of my first term in office. This will not be easy. It will require us to make difficult decisions and face challenges we’ve long neglected. But I refuse to leave our children with a debt that they cannot repay — and that means taking responsibility right now, in this administration, for getting our spending under control.” — President Obama, 2009
And then went on to TRIPLE the deficit in his first 2 years…
Bill Clinton is the joker in the deck, as far as Obama is concerned. People thing they’ve kissed and made up over Hillary’s failed run for pres, but I sincerely doubt it. The Clintons NEVER forget and I doubt if they forgive, either. Their path is strewn with people they’ve thrown under the bus.
I look for some very major Clinton-related issue to scuttle Obama and I look for it to happen as close as possible to the election.
Come October Bill will be in several “swing” states campaigning “hard” for O. This is nothing. Bill is just looking for some attention.
“Bill is just looking for some attention.”
True, but Hillary is still looking for the presidency. And Bill owes her big time, as I’m sure she never tires of reminding him.
Her big decision: does the Obama “black swan event” happen now, so she can slide in as the candidate at the convention (if so, better happen soon) or does she look to 2016?
What to do, what to do….
I’m breathless!
October surprise?
Romney and Paul Ryan will shrink the size of government all right, by pushing Feds into early retirement and hiring more contractors!
The army of for profit, invisible hand of free market, bootstrapping, producer, John Galt, rugged individualist, federal government contractors will NEVER stop growing.
Of course this will worsen the income division in this country as well connected businessmen swoop in as contractors and rehire the former gov workers with no benefits and at a lower rate. In the end of course the bill to the tax payer will be the same or higher. The difference will be that the workers will make less and a few well connected individuals will skim large sums of money.
Example Medicare advantage plan which costs tax payers 15% more than medicare.
NASA is gone, schools are falling, next up will be medicine. Doctors nurses and local hospitals will be hit while drug makers, HMO’s and large insurance companies will make much much more.
We’re all third world labor slaves now.
You are both wrong and right. Many contractors have excellent benefits (for now anyway) and the pay scales are comparable. But yes, the bill to the taxpayer will be higher because of the layer of profit collected by the contracting company. Invisible hand of the free market baby!
And then went on to TRIPLE the deficit in his first 2 years ??
Well, the numbers don’t lie…We have more debt but the federal spending has only gone up marginally…We borrowed money to keep the gig going…Let the sequester happen…
Do you think Romney will replace Bernanke? Maybe Jamie Dimon should be running the FED. Put Lloyd Blankfein in charge of the SEC and we are all set.
“Maybe Jamie Dimon should be running the FED.”
Why not just take a high-level advisory role? Gain influence, without the dismally low pay.
Calls for Jamie Dimon to Leave New York Fed Grow Louder
Petition gains traction as J.P. Morgan fiasco causes many to question Fed governance
By Danielle Kurtzleben
…
So sad to hear about the passing of Ray Bradbury. Truly, one of the greats. RIP dear fellow.
I really liked his short story “A Sound of Thunder”. I was disappointed with the movie version of the story, which bore little resemblance to the original.
I heard a story that Ray Bradbury could not sleep, and took a walk in the early morning before dawn, down Santa Monica Blvd dressed in his PJ’s. He stopped to check out some new cars on the lot, when the police came by and he had some explaining to do.
I loved “Something Wicked This Way Comes”, and read “Fahrenheit 451″, “The Martian Chronicles”, etc… Sci-Fri isn’t my thing, but I liked his writing. 91 is a long life, and he was blessed with great talent.
Ah, Awaiting, thanks for posting about Ray Bradbury. RIP, old man. I still re-read the Martian Chronicles from time to time, it just might be my favorite book.
“Something Wicked This Way Comes”
Read it when I was in HS, long before I ever read Macbeth or saw it on stage. The descriptive writing was fantastically vivid.
DisasterCapitalism….. and false dualism of the two party system.
What do you do?
Become a federal government contractor and collect your bailout from Uncle Sugar
http://www.bloomberg.com/news/2012-06-05/paulson-buys-saudi-prince-s-ranch-in-49-million-deal.html
Public unions got hammered all across America yesterday.
It is amazing, when given the choice, how the America people don’t want insane public unions taxing them into oblivion.
Landslide in November boyz…
————————–
San Diego And San Jose Approve Pension Cuts In A Landslide Vote
Business Insider | 06/06/2012 | AP
SAN DIEGO (AP) — Voters in two major California cities overwhelmingly approved cuts to retirement benefits for city workers in what supporters said was a mandate that may lead to similar ballot initiatives in other states and cities that are struggling with mounting pension obligations.
Supporters had a simple message to voters in San Diego and San Jose: Pensions for city workers are unaffordable and more generous than many private companies offer, forcing libraries to slash hours and potholes to go unfilled.
“The public is frustrated,” said San Diego Councilman Carl DeMaio, a Republican who staked his mayoral bid on the pension measure and advanced to a November runoff in Tuesday’s election to lead the nation’s eighth-largest city.
In San Diego, 66 percent voted in favor of Proposition B, while 34 percent were opposed. Nearly 97 percent of precincts were tallied by early Wednesday.
The landslide was even bigger in San Jose, the nation’s 10th-largest city. With all precincts counted, 70 percent were in favor of Measure B and 30 percent were opposed.
So Tuby…. one want the other side of the same dingy dirty coin?
Probably filed in vegas after he converted his last million into casino poker chips that are stashed in a safe depo box.
As soon as the bankruptcy is discharged, he’ll have one heck of a lucky day at the poker table.
Casinos are MADE for laundering money…. Buy $10K chips a day for a month, with green foldy money. At the end of the month, have a great day at the poker table and cash out your winnings of… $10K x 30 = … $300K.
As long as you pay your taxes, Uncle Sam seems to be cool with the situation.
If that landslide comes to pass, it will be the death knell for the boomers. Those who have pensions are seeing them cut. 401Ks tanked, CDs paying low interest rates. SS and Medicare go away. The Republicans in Congress say they won’t cut SS and Medicare for those over 55, but if they get an unstoppable majority, count on it. It will start with over 55 and means testing and vouchers for Medicare for the under 55s. In 10 or 20 years, the new rules will apply to everyone, even those now over 55.
I have hinted at this to my siblings, but they think they have planned and managed well and are set for the rest of their lives. I plan to continue working as long as I can. I may end up supporting them.
Accidentally posted this in the other thread. It belongs in bits buckets….
http://www.azcentral.com/business/realestate/articles/2012/06/05/20120605developer-burton-files-mil-bankruptcy.html
“A developer who helped build a corporate-jet center and tried to build a resort complex in Glendale has filed an enormous personal bankruptcy in Las Vegas.
Rick Burton owes more than $310 million to investors. He lists $6,500 in assets, mostly home furnishings, with little more than $50 in records and CDs and a $50 watch, according to court records. He lists $96 in two bank accounts.”
Rick Burton hid alot of cash and stuff…
Rick Burton owes more than $310 million to investors. He lists $6,500 in assets, mostly home furnishings, with little more than $50 in records and CDs and a $50 watch, according to court records. He lists $96 in two bank accounts.”
Rightpath developer Rick Burton files bankruptcy (photo)
http://www.bizjournals.com/phoenix/morning_call/2012/06/rick-burton-developer-for-glendales.html?s=image_gallery
Could the proverbial lamp post support his weight?
If you want to understand why we are four years into the Great Recession and there have been virtually no prosecutions for fraud or no reform of the banks (each regulation requires “more study”), you have to understand the motivations of the big players. They’re people too, and if they are still in the workforce (i.e. they have to show up on Mondays to pay their bills, aren’t wealthy enough to retire), they have the same career concerns as the rest of us.
1) Eric Holder, head of the Justice Department. Formerly a partner at Covington, whose clients are the big financial companies. The government gig is temporary and pays a pittance compared to the law firms. He’s plans to go back there. Can’t do it if he’s alienated the clients. Partners are supposed to bring in the clients.
2) Tim Geithner: He’s going to need a job after this gig. The sector he’s qualified to be in? The financial sector.
3) Look at Bill Clinton, Corey Booker and other high profile Democrats, extolling the virtues of the financial sector on the political interview shows. Why? There’s big money there which they can use for their campaigns and other personal purposes.
4) The Bernank? He could return to academia. But, he also cannot ALIENATE the financial sector. Academics have to get grants and have to publish. Companies fund grants to get publishing they perceive to be useful or beneficial.
5) I heard on Meet the Press this past weekend that the FIRE sector had spent 318 million dollars on lobbying in the past year (the speaker didn’t specify the exact timeframe other than the past year). The next highest lobbying dollars were spent by the healthcare industry, at 145 million.
6) David Stevens was the head of the FHA from 2009 to 2011. He left to head the Mortgage Bankers Association. Gee, why would the FHA be making bad loans while he was at the head? The person who replaced him was an executive at Freddie Mac.
The net result: To get the system reformed and the malefactors held accountable, career prosecutors and bureaucrats are needed. People who will not be beholden to the financial sector for their livelihoods after they leave the government jobs. Having top jobs filled with FIRE alumni is precisely the opposite staffing choice required to get that done. Putting FIRE alumni in top government posts is putting the fox in charge of henhouse security. They use these jobs to beef up their resume and create lobbying connections before returning to the private sector.
Got to give credit to the substantial number of Wisconsin voters who voted to keep right wing Republican Governor Scott Walker but also told polsters they plan to vote for Barack Obama.
The know the powerful people screwing them at the state and local level are different from the powerful people screwing them at the federal level (and in the private sector). Adding the percentages of Walkers win and Obama’s lead based on the poll, 15 percent of them are on to the reality, and cannot be fooled by the propaganda.
If you didn’t read it when it first came out, here’s the link to the Daily Beast article about the lack of prosecution of any of the financial Big Boyz.
http://www.thedailybeast.com/newsweek/2012/05/06/why-can-t-obama-bring-wall-street-to-justice.html
Even at dramatically lower prices, housing is a fawkin’ boat anchor.
Buying a house is not for everyone. It never was and never will be.
Especially if you are going to move in the semi-near future, you have nothing saved or do not have a stable job (whatever your definition of that is).
If you are in your 20’s and like to party and travel - why are you buying a house?
Housing used to be cheaper than renting - so the negatives of owning a house had at least one positive.
“Housing used to be cheaper than renting”
In some places, it is again.
http://www.remax.com/property/105027761-60050098/11640-N-51st-Avenue-Glendale-AZ-85304/
Going to look at that one later today. It is $10K more than others I’ve looked at, but doesn’t need $10K worth of work like most of those.
With 20% down, PITI is about $300, and condo fee another $100. Rent in that complex is about $600-700 a month.
Can set aside $200 a month for repairs/maintenance, and break even on carrying costs.
Not bad - just double check the HOA fees - especially make sure all your potential future neighbors are paying on time and that there is no double secret special assessments coming down the pike…
2banana - Good advice to Darrell about HOA due diligence.
Speaking from 2XHOA experience, also check w/neighbors and ask about vandalism from teens and such. We got quite a bill one summer in our swank PUD for damage to the pool and rec room. iirc, we each had to pony up $500-$600. If you have to pay that twice a year, the cost factor changes. What condition is the common area in (pool resurfaced last? type stuff) Our former residence had an HOA always under-budgeted.
2banana is right, neighbors are a great source.
I’m confused Darrell, you make deep, intelligent points often, and you want… more debt?
There is a disconnect here.
I can describe what has happened (money not backed by hard assets), without thinking that is a good idea.
I can say that (all else being equal, such as tax policy and free trade) if we were not going $1.5T a year further into debt we would be in depression, without thinking it is good that we are going $1.5T a year further into debt.
I can say “We need to stop living on debt, as a nation” without realizing that borrowing what amounts to 3 months of my take home pay, at a rate less than 1% above inflation, not only lets me help my kids with VERY low rent, but also offers me a hedge should something bad happen.
If one is so close to bankruptcy that cashing out the retirement fund looks like the only option left, borrowing large to speculate on some condos in Phoenix seems about like doubling down on 23Red with IOUs. It’s not against the law.
So close to bankruptcy?
What?
I never said I was close to bankruptcy, or that taking money out of 401(k)s was only option left.
I’ve got $1500 a month free cash flow after all my monthly bills are paid, including $7500 a year addition to 401(k)s.
“Doubling down?” “Some condos?”
Whatever.
Demagogue much?
“what amounts to 3 months of my take home pay”
OK, seriously; your take home pay is irrelevant. You’ve indicated that your takehome pay is inadequate to cover your expenses already, and it’s a temporary gig isn’t it? So you’re not saving, rather burning, and about to start burning your retirement, right? New long term debt obligations is not a solution to spending too much money. What do your cherry picked expense numbers pencil out to in additional earnings for you, $50/mo?
Taking on more debt is taking on more risk, even if you can’t smell it out. More debt is never a hedge against things going wrong, it is increased exposure. There are so many red flags in what you write, it would take a book…not the least of which is writing your (adult) children into this ponzi scheme as captive renters.
Why not figure out how to reduce your debts, actually save for a couple of years, if your job and your back hold up, and buy the condos cash for $10K or $15K?
Do you really bring home $20K a month from the substitute teacher thing, or whatever the assignment is? I’m in the wrong business.
Wait, are you confusing Darrell with that guy from, uh… that rainy, gray place?
Darrell isn’t MikeinBend.
Wires crossed I suppose. Was it Mike in Bend that posted he was going to cash out his 401K? Darrell is not buying Condos? I guess I should just go fishing.
Note to folks using the JoshuaTree Extension:
Firefox 13 will break the extension’s ability to keep track of read/new posts. The mechanism I was using to store this data appears to have gone away.
Ignore lists should continue to function appropriately, as well as auto-quoting, HTML validation of your comments, etc.
I’ll post here when I get a fix together. It looks like it might be reasonably simple, I just need to find the time to devote to this… in the meantime, donate to Ben early, and donate to Ben often…
Firefox 13? I’m still using Firefox 3.5.4! What, if anything, am I missing?
What, if anything, am I missing?
I believe FF13 has some big changes in the UI, but I’ve not upgraded (and thus was unaware of the breakage).
Outside of that, I imagine not much. Some improved HTML5 compliance/features, I imagine.
I just had a very nice e-mail correspondence with drumminj about this very issue. It’s the sort of thing that makes this place more than just another financial blog. The HBB is a community.
Modest suggestion:
Figure out how to setup a PayPal account to collect a nominal fee to download the JTE. You get to decide on the fee.
And Arizona Slim would be happy to contribute!
I appreciate the idea, but it hardly seems worth it. Honestly, if folks feel the need to compensate me for the use of the extension (which is a nice thought), they can donate that money via paypal to one of the following organizations:
PAWS in Lynnwood, WA
Bullseye dog rescue in Seattle, WA
Washington State Animal Response Team in Enumclaw, WA
Love-A-Bull in Austin, TX
Lucky Mutts in Austin, TX
Schrodi Memorial Training Fund in Austin, TX
Lone Star Boxer Rescue in Austin, TX
That’s what I’d do with the money anyhow.
The headline on CNNMoney right now:
“Stocks Rally Nearly 2% - U.S. stocks gain steam as investors hope more stimulus is around the corner.”
So, which is it? We hate handouts, or love them? Is this country one big hypocritical lie?
“one big hypocritical lie?”
A lot of those pro-business, flag-waving, true Americans sure do love doing business with commie China.
….. but but but….. my typical talking point about those big bad communists just fell apart.
(stand by while I get my next talking point from talk radio)
The “intelligence” they think they’ve acquired from talk radio is a defense mechanism/smokescreen for the “it is difficult to get a man to understand something…” reality.
Stock prices are not based on what people WANT to happen. They are based on what people think WILL happen.
Perhaps. Except the word “hope” was used in this headline. As in, investors hope to get another handout. Are they putting words in “investors” mouths?
Folks, the REIC and Military-Industrial are now one. Coming soon to a “business opportunity” near you. Bersok’s lucky she didn’t make it onto the drone list as an eco-terrorist.
“The state’s top wetlands expert has been reinstated after a three-week investigation, but the question of who initiated it and why remains unclear.
Connie Bersok was put on paid leave from the state Department of Environmental Protection on May 11, two days after she refused to approve a permit for the Highlands Ranch Mitigation Bank in Clay County.
Bersok told co-workers she had complained to the DEP’s inspector general about her bosses’ push to approve the Highlands Ranch permit, then wound up suspended herself.
But the official investigation report released Tuesday makes no mention of Highlands Ranch. It says Bersok’s division director complained about her not showing up at work and emailing official documents on her private email account. Both charges were ruled unfounded.
Corporate records show the Highlands Ranch project is backed by a private equity firm from Washington called the Carlyle Group that’s known for its global political connections”
http://www.tampabay.com/news/environment/wetlands/floridas-top-wetlands-expert-reinstated-but-details-remain-murky/1233782
What elevation above sea level in Florida qualifies an area to be considered “highlands?”
Today I meet with a building inspector at the house , patio in bad shape I knew this, but some dmba## put a fold down ladder in too access the attic and cut perpendicular through two trusses that hold the roof up. The ladders are made to fit between trusses. Anyway I guess I need a structual engineer to see what can be done and for how much. crap.
Met the Owner they opened the home up and I was wrong they bailed and are now RENTERS not BUYERS and she seemed close to tears. This Zero sum game we are playing in America now is wearing on me.
We could all go down no matter how smart I am if enough of my fellows go down I’m going down with them.
Plus my good buddy just told me he has ALS this is very bad news for him and his family.
makes you think
That is very sad. One of my best friends from the decade I lived in Colorado… worked with her at three different jobs… died from ALS earlier this year.
She went fast. Less than a year from diagnosis to funeral.
Not sure if that is a good thing, or bad.
And, yeah. We are all in this boat together. Easy to say, let them burn, until you realize that their debt is ….
Never mind.
I think people need to stop thinking micro-economic, and start thinking macro-economic.
Scab equal sized member on each side of damaged member and sandwich with through bolts and tell the building inspector to beat fee.
Scab equal sized member on each side of damaged member and sandwich with through bolts ”
yea just take the ladder out and repair the Joist. Its in the ceiling of a a hallway and I think the walls are load bearing from ceiling to floor.
Thanks
cactus
Sorry to hear about your day from h*ll. The roof issue isn’t a cheap fix, that’s for sure. I hope it doesn’t break the bank. You can do a 203K if need be. The patio is so much cheaper to deal with. I hate the “as is” aspect of short sales. It stinks.
My thoughts go out to your friend w/ALS, and everyone who loves him. I know first hand what lies ahead.
We were going to put in an offer on a pretty cool “great bones” home, when we learned that the slab had no rebar. (1960’s) The neighbor pops his head over the fence during our walk thru (vacant home) and tells us to run, don’t walk. He had a room collapse in ‘94. Our friend w/ us is a general contractor, and he added $25K (reinforce slab) to our “to do” list. $40K+$25K=dead deal
Keep us informed.
I hate the “as is” aspect of short sales. It stinks.”
inspector tells me he got 10K copped off the price of a short sale he bought, I think you can negotiate certain things. I guess I will find out pretty soon.
don’t buy old home with no rebar in slab which is more common than you would think with old homes around back when they were cheap
looks like another recession is ahead I think time is on your side!! good luck
The U.S. stock market has seen billions in outflows over the course of 2012 so far. It is almost surprising the market has held up as well as it has.
Investors end 14-week stock exodus
By Hibah Yousuf
June 6, 2012: 3:45 PM ET
In an unexpected twist, investors added money to U.S. stocks during the final week of May, even as the market closed out one of the its worst months in years.
According to the Investment Company Institute, investors added $807 million to U.S. stock mutual funds in the week ended May 30. While that’s not much at all, the sudden move ends a 14-week-long exodus out of stocks. In fact, the inflows follow a week when investors yanked $7.2 billion out of U.S. stocks, the second biggest weekly outflow of the year.
While investors showed a little love for stocks last week, they haven’t been big fans for the better part of 2012. Since the beginning of the year, investors have pulled nearly $45 billion from U.S. stock mutual funds. By comparison, the funds brought in $6.4 billion during the first five months of 2011, and lost just $18 billion during the first five months of 2010.
Meanwhile, even as bond prices rallied, pushing yields to record lows, investors pulled $317 million out of bond funds during the last week of May, marking the first weekly outflow since early October.
Are investors just so sick of low yields that stocks are starting to look good again? Only time will tell whether this latest sea change is a blip or the start of a new trend. But given that Europe’s debt crisis is still going strong, and the growth in China and the U.S. is slowing, I wouldn’t bet on a sustained turnaround.
…
Related: Dow, Nasdaq: Worst month in two years
Here is what I do not understand…..
For every seller, there HAS to be a buyer, and for exactly the same price. That is, if I decide to sell some FB at 26 to “take money out of the market” then SOMEONE or SOMETHING has to be buying AT 26, putting the EXACT SAME amount of money into the markets!
Yes, No? Is there some Fed Reserve type black box that buys stozks without money, allowing someone to pull money out of stocks without needing a seller that is “putting in” the exact same amount?
I see money actually leaving the stock market without being replaced, is bankruptcy when the stock becomes worth $0.
Woudl a private equity buyout where the stock is intentionally delisted or corporate buyback be money going in or out?
IPO or new share issues.. that would be money going in, without a seller leaving, Yeah???
I am so confused.
I am so confused.
that’s because you and most others think of it the wrong way.
people think when stocks go down, that there’s less money in the world, and when they go up, there’s more. that just isn’t true.
the rise and fall of stocks has no effect on the amount of money in the world, even though people make or lose money with the stocks.
What?
We need to stop calling it “make money”, because I am the one that says money is not actually created when it is earned!
I do not think that stocks going down in price means there is less money in the world… as indicated by this very question. What changes is now much people are spending on stocks, because stocks are not money.
You didn’t answer my question. How can money “come out of stocks” when there has to be a buyer for every seller. One person can not get money out of stocks (selling), unless someone is putting an equal amount of money in (buying).
How can money “come out of stocks” when there has to be a buyer for every seller. One person can not get money out of stocks (selling), unless someone is putting an equal amount of money in (buying).
true.
the money ‘coming out of stocks’, means that more people are selling stocks, than buying them. stocks are priced at the margin.
I had lunch yesterday with a gentleman who has direct visibility into over 10,000 apartments in Northern California. In his words, they can’t raise rents fast enough. 10% increases on people if they are lucky.
A separate conversation with another gentleman who is active in residential markets in Tracy/Stockton/Mountain House/Manteca/Lathrop. Long story short is that there is evidence that people being pushed over the hill again due to the cost of shelter on the Peninsula.
For the last couple of years, every complex had free rent and sign spinners. Everything goes in cycles…what these complexes end up doing is pushing out loyal quality tenants when the greed cycle kicks in, but they have every right to do so. Are incomes going up 10% in that area in the same time frame? I think not, so it won’t last through the end of the year.
Some incomes are going up (Mountain View, Redwood City, Palo Alto, Menlo Park).
There is very little new supply, and $4.50 gas (making long commutes worse than higher rents). I think you’ll first see overcrowding that will help support the rent increases.