Bits Bucket for June 24, 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
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When I first started to understand there was a housing bubble, I would come to this blog to share my questions and observations. When my fiance and I wanted to buy a house in 2005 where we could start our lives together, we changed our strategy. We ended up renting, because we began to understand “reversion to mean”, “rent to price multipliers” and “Income to purchase ratios”. This blog saved my ass from purchasing a $700,000 house in 2006 that sold for $375,000 in 2008 and foreclosed again and just resold for $255,000 (trashed) in 2012. We rented a house instead (for $.67/sf) which was about 1/4 the cost of purchasing. It later foreclosed too.
The house we rented was in a brand new subdivision of 140 houses. About 130 of them were owned by “flippers”. So the other thing that happened to me was that I had a front row seat into unbelievable amounts of mortgage fraud. I became “Paladin” and started web site called “Paladin Reports” and began to spend 100s of hours a month tracking down mortgage fraudsters. It was intense work and getting the authorities to pay attention was a story of its own.
Anyway, two weeks ago, I came across another situation that seemed a bit fishy, so I invested 20-30 hours and poked around. A lot of you HBB contributors and readers will enjoy what happened next.
“This blog saved my ass from purchasing a $700,000 house in 2006 that sold for $375,000 in 2008 and foreclosed again and just resold for $255,000 (trashed) in 2012.”
I wish the regulars here had a nickel for each $100,000 we saved somebody from not buying a home before the crash.
I have sent Ben a few nickles over the years during the HBB fundraisers. I also committed to share the proceeds of an IRS whistleblower action against Countrywide, but it was dismissed.
“We rented a house instead (for $.67/sf) which was about 1/4 the cost of purchasing. It later foreclosed too.”
You’re saying you rented a house at .67/ft that would have cost you 2.68/sq ft to buy? For a 2000 sq ft house that means rent at $1340 vs buy at $5360 paying a mortgage? I know it was cheaper to rent than buy during the boom, but I don’t buy your numbers.
You are correct Smithers, it was really closer to 2.5 to 1 on the rent vs own ratio. The house cost the owner about $4,000/mon for the $700,000 loan, plus $600/mon for taxes, $350/mon bonds, $100/mon insurance and $150/mon HOA.
Here is the result of my research: a letter to the FBI. I also sumitted a 50 page document, which I cannot publish here. Keep in mind, everyone is innocent until proven guilty in a court of law.
Confidential Name
Confidential Address
Confidential City & Zip
June 20, 2012
Special Agents Confidential A & Confidential B
Mortgage Fraud Investigations
Federal Bureau of Investigation
4500 Orange Grove Ave
Sacramento, CA 95841
Re: Mortgage Fraud: Marilyn Bunquin and Associates
Dear Agents A & B,
We really appreciate all the work you are doing to bring all the California mortgage fraudsters to justice. You should know about another real estate and mortgage fraud group which has been playing fast and loose in California. The people involved include Marilyn Bunquin, Edwinna S. Firmeza, Glynn Suratos, Elaine Suratos, Renato Medrano Jr., Luis G. Lorica, and Cynthia S. Lorica. Other players include Yvonne Suratos Rilloraza, Mina B. Macalino, Percival Raquidan, Karen Raquidan, and Laarnie Suratos Cayabyab.
Marilyn Bunquin purchased two homes in Lincoln, CA on March 20 and May 15, 2007. The first house was at 208 Monteverde, which she purchased from Edwinna S. Firmeza for $1,159,000 using 100% owner occupied financing. Firmeza purchased the home 18 months earlier for $960,000 and she cleared $199,000 on the sale. It is likely she kicked back some mortgage fraud funds to Bunquin and took some for herself. Firmeza never lived in the home. Firmeza is an agent with Complete Realty, 31818 Alvarado Blvd, Union City, CA 94587, (510) 431-5388. Complete Realty handled the listing and sale of the house. Bunquin never occupied the house and within a few months it was rented. Even more strangely, the property was in default 7 months later, indicating a first payment mortgage default.
The second home purchased by Marilyn Bunquin was at 5240 Monteverde on May 10, 2007. She purchased this home from Renato Medrano Jr. for $1,450,000. She obtained a $1,000,000 first mortgage and a $305,000 second mortgage, both from Washington Mutual. The seller was Renato Medrano Jr. who purchased the property 20 months earlier for $1,212,000. He cleared $238,000 above his acquisition cost, though it is likely he split the mortgage fraud proceeds with Complete Realty and Ms. Bunquin. Curiously, Edwinna S. Firmeza was the Notary Public certifying Medrano’s Grant Deed to Bunquin. Ms. Firmeza is an agent at Complete Realty and the seller of the 208 Monteverde home to Bunquin. The mortgage for this property was also in payment default 5 months after the sale, indicating she never made the first mortgage payment.
What is really curious about Marilyn Bunquin’s purchase of 2 homes for $2,609,000 in early 2007 is that just a few months earlier, she purchased 38288 Columbine Place, Newark, CA 94560 from Luis and Cynthia Lorica for $900,000! Bunquin obtained owner occupied 100% financing from Pro 30 Funding. Marilyn Bunquin was in payment default 8 months later, indicating this was also a first mortgage payment default. So while she was purchasing two homes in Lincoln for $2,609,000, she was simultaneously defaulting on a $900,000 loan in Newark. It appears this felony mortgage fraudster is worthy of a nice long prison term.
It gets even worse. While Bunquin was in default on the Columbine home loan, every 90 days she would record a subordinate lien to forestall foreclosure. Lillian Kingman of 2857 Dune Circle, evidently “lent” her $40,000 on July 2, 2007 (but not recorded until Dec. 10, 2007), even though the first mortgage was already in default! Percival Raquidan evidently “lent” her $25,000 on November 30th, 2007 (not recorded until March 24th, 2008). Ms. Raquidan must have been renting a room from Bunquin, as Raquidan lists her residence as the subject property on Columbine. Finally on Feb.1, 2008 (and not recorded until July 21, 2008), Laarnie Suratos Cayabyab “lent” Bunquin $30,000. While Bunquin purchased the property in December, 2006, it took until July 24, 2008 to perfect the foreclosure. The lender, now wise to the multiple fraudulent subordinate financings, was able to set aside the 2nd, 3rd, and 4th trust deeds and take back the property.
So how did Ms. Bunquin arrange all these transactions? Enter Glynn Suratos. The Loricas purchased the Columbine house from Glynn and Elaine Suratos before they sold it to Bunquin. Glynn Suratos is an agent of Complete Realty and he and his wife Elaine have multiple mortgage fraud and foreclosure properties of their own (4000 Monteverde, 1344 Hillwood Loop which are both in Lincoln, and 38374 Amaryllis, in Newark). It is likely Glynn Suratos orchestrated many of these activities for Bunquin. Many of the parties named in this letter own properties in Newark and in Lincoln and have fraud issues of their own.
Bunquin has learned how to play the Mortgage Fraud game very well. The two houses she purchased in Lincoln on Monteverde have been in default since late 2007. Just like she did with the Newark house on Columbine, Bunquin is filing serial trust deeds to delay the foreclosure.
The 208 Monteverde house has a third Trust Deed, again for $25,000 from Karen Raquidan (not Percival this time) entered into the 30th of November, 2007, but not recorded until April 9th, 2008. It was notarized by Yvonne Suratos Rilloraza! Karen Raquidan also lists her address as the house Bunquin owned at 38288 Columbine Place, Newark, CA. The house at 5240 Monteverde has a third Trust Deed, again for $25,000 on the 20th of October, 2007, but not recorded until February 5th, 2008. Guess who the notary public was? Glynn Suratos! It is strange how all these people are lending money to Bunquin when she is in first payment mortgage default on three houses. These “lenders” may be conspiring with Bunquin and need to experience some jail time of their own!
Bunquin may not be making her mortgage payments, but she seems to be paying her attorney to stretch out the foreclosures. She still “owns” the two houses on Monteverde and is renting them for a combined $4,800/mon. She is in arrears with the property tax collector for $25,000 and has $20,000 in liens for failing to pay her neighborhood HOA assessments. The lender on the Columbine house in Newark lost $440,000 when they finally recovered some money. In the meantime, Bunquin has owned the Monteverde houses for over 5 years, appears to have never made a loan payment, burned the tax collector and stiffed the HOA. Yet she has collected over $250,000 in rental income. This seems like grand theft on an enormous scale. Bunquin borrowed over $3,500,000 and the banks will be lucky to get $1,000,000 of it returned. Ms. Bunquin seems to be inherently evil in stealing over $2,500,000.
I trust you will find the enclosed documents as evidence sufficient to open a file on Marilyn Bunquin, the property sellers and the team of allegedly fraudsulent real estate agents at Complete Realty. You should also know Complete Realty seems to have changed their name to Excellent Realty Group, Inc., using the same address and having many of the same ages. It is likely the Bunquin sellers and agents received kickbacks from this apparent mortgage fraud activity. The notary publics seem to bless each others’ apparently fraudulent documents with one hand, while the seemingly earning sales proceeds and real estate commissions with the other! Enclosed with this letter is all the documentation supporting these activities. If you need anything further to prosecute any or all of them, feel free to call.
Sincerely,
Confidential Name
XXX-XXX-XXXX
Cc: Department of Real Estate, CA
Internal Revenue Service
Brokers of Record
So what is your motive? You indicate you’re speculating/buying, etc
My motive is driven by the outrage I feel when I see these scammers work the system. The only thing needed for evil to triumph is for good people to do nothing.
And I am not a speculator. I am an investor who provides excellent service to people wanting to rent a home.
How would it effect you personally if these fraudsters were shutdown and there were no fraudsters left?
I would live in a better, more stable world.
uh huh. Nice answer.
I agree Paladin, with what you are doing, and more importantly, why you are doing it. You are a true American hero. I ask others what is wrong with that? Are we too cynical a society post-watergate to even want an honest society?
Truth, your skeptacism is showing through.
Any of the long timers on this blog can tell you I invested countless hours and broke down many barriers to expose the mortgage fraudsters in 2007-8.
I also went to great efforts to report the bad loans to the mortgage companies (Long Beach Mortgage, New Century, WAMU, Ownit, Alliance) before I realized they were benefitting from the fraud and had no incentive to stop it.
Here is a link to my start up of Paladin Reports which I posted on the HBB in 2007:
http://thehousingbubbleblog.com/?p=2227
Maybe now you will have more faith in the goodness of humanity going forward….
Hey Truth, My mother is still alive and would probably make you go stand in the corner for using the name “Truth”, yet acting like you do. Here is her comment I posted on the HBB in 2007
Comment by paladin
2007-01-24 13:58:35
This is what my 90 year old mother has to say. She wrote this to me last week:
Mourn not the dead that in the cool earth lie,
but rather mourn the apathetic throng,
the coward and the meek
who see the world’s great anguish and its wrong,
and dare not speak.
Ralph Chapin
Defensive much? I asked you your motives. You don’t have to disclose but you raise doubtwhen one responds in a defensive manner such as yours.
uh huh. Nice answer.
Paladin,
SV raises a mug in toast………..
Here’s to your efforts. Although I hold the PTB in greater contempt, everyone that tried to game the system should feel the sting of trying to game the system.
Good job ducking from providing an answer.
Truth, you almost sound worried that you will be turned in next.
Cheers SV <;-o}=
hi paladin,
Can you explain to me how filing these trust deeds is delaying the foreclosure process? thx
I appreciate you sharing the tale here, Paladin. Keep up the good work.
RAL, why do you even care what his motives are, if he is performing a public service?
How could I care what his motives are when he hasn’t disclosed them?
You need a motive to report criminal behavior? Or do you have a personal axe to grind with paladin, and are using this topic to attack him? (Cowardly, I might add)
“Gadzooks”???? Speaking of cowards….. Why hide behind another username?
There is motive for EVERYTHING. Yet JingleBalls/Paladin can’t seem to muster the courage to disclose.
And who the hell are you and why are you hiding? And why pander for someone ducking and weaving?
azdude,
I think the filing of another trust deed muddies the water for the first trust deed holder (lender). The borrower can say she is trying to work with the second TD, thereby stalling the first lender. The loan servicers are so busy, anything unusual gets shuffled to the bottom of the pack to be dealt with later. If the borrower files BK (which I don’t think Marilyn Bunquin has done), then the courts can stall action based on some sort of “equitable distribution” to all the lenders.
Prime, I had no idea Truth is actaully RAL. I chose not to respond to him. Thanks for identifying him under his other name.
It doesn’t matter who asks you. Clearly you’ve chosen not to disclose your motive for a reason.
RAL, I think his only motivation is to make the world a better place by having some fraudsters pay for their actions.
I would think the HBB concensus would be that that is a GOOD thing. So why are you giving him so much grief?
Time to go back on your meds…
Who said it was a bad thing?
“Make the world a better place” huh? When was the last time you did something to “make the world a better place” and what was it?
And considering the fact that you lob personal insults, what does that say about you?
Seriously, RAL—I was just kidding around. My apologies if the “meds” joke offended you.
I do my best never to lob personal insults here; I hesitated before posting that comment, but thought the smilie would show you that I was joking. Sorry if it didn’t come across that way. I shouldn’t have done it, apparently.
I checked in with the FBI agents two days later and they were quite appreciative of the work. They planned to follow up with the FBI agents in the SF Bay Area, where all these suspects lived.
Last Friday, one of the agents calls me back with some excellent news. They have arrested Firmeza three weeks ago and Lorica last week. Firmeza has evidently agreed to plead guilty to a felony, probably federal bank fraud. The Lorica case is still being processed.
I found out who the prosecuting US Attorney was by subscribing to “PACER” or Public Access to Court Electronic Records. Below is the e-mail I sent to that attorney:
Email to Keslie in 6-23-2012
Keslie,
My name is Xxxx Xxxx and one of my “hobbies” is tracking down mortgage fraudsters and turning them into the FBI & the IRS. Last week I sent the FBI a 50 page summary package on Marilyn Bunquin and her mortgage fraud associates, which includes Edwinna Suratos Firmeza. Attached you will find the cover letter to that package.
The agent with the Sacramento FBI told me they had arrested Firmeza recently and you had her pleading guilty to a feloney, so I searched on PACER for the docs and your name came up. Richard is sending my package to the FBI office in San Francisco, but I do not want this information to fall between the cracks while you have Firmeza and Lorica (12-488) in your sites. They need to give up all their accomplices!
Please read the attached letter. I have saved a copy package and can send you the information directly if you so request. Firmeza, Lorica and their families are all related and their crimes may be much more numerous than you realize. Please let me know if you want a copy pakcage or if there is anything I can do to facilitate you putting these criminals behind bars.
Sincerely,
Nicely done! Congrats on getting traction with the Feds.
The guy who supposedly figured out that Madoff was a Ponzi wasn’t smart enough to go to the FBI. In hindsight, that was one of their biggest mistakes in trying to uncover the fraud (going to the lawyers at the SEC, not the investigators at the FBI).
My section of government has its own Allegations Department. If any member of the public provides information, or even hints, on wrongdoing, we are required tease out as much information as possible, including the name of who is making the report, and send the info on to Allegations. They know how to handle it from there. We have to do a little online refresher training every couple years just to remind us.
OK Oxy - what kinds of allegations do I send your department’s way, and how do I contact them? Give it up, man!
I see so much cr*p on a weekly basis that I’m like to vomit.
The trick is - as always - targeting the info to the right audience.
Well unfortunately, I don’t think that what you’re seeing applies to my agency. I’d need Polly to weigh in, but I suspect that every agency has its own allegations department. So you would need to choose whatever agency is applicable.
We have multiple places to report suspicious actions. If you send it to the wrong place, it will get routed to the correct people. Heck if you wrote something that said:
[Agency]
Washington, DC
It would probably get to us, though it would take a while.
The only catch is you have to be pretty specific to hope for something to get done: names, addresses, specific conduct, etc. Saying how you know it happened helps too if it is not public info. You don’t have a ton of credibility if you just say a little bird told you. Photocopies of documents will be helpful as well. And putting the information in the easiest to understand format is great. Tables, timelines, or anything other than a long involved narrative. Remember you are writing for someone who isn’t as familiar with the narrative as you are. And try to separate the facts from the speculation. No reason not to include it, but separating it out from the recital of facts shows you understand what the difference it - it adds credibility. Using loaded terms like fraudster isn’t going to get you much attention either. Makes you look biased. Even if it is true.
Most agencies have pretty good websites. Poke around and look for a place to report something if you have it. If you can’t find a particular location, then send it in anyway. It can’t take more than an extra week or two for someone to send it to a general correspondence department and then that department can direct it to the place it needs to go.
Great work! You made the world a better place!
Super work, kudos to you! I do remember your posts from 2008, and remembered thinking “Now THERE goes a formidable person!” And was somewhat sad at your absence.
I agree with copying the news media and the tax authorities. The tax authorities might give you a referral fee.
Hey, every little bit helps. Think of the satisfaction.
But - they are all victims and deserve a bailout!
Exactly. I am working tirelessly to obtain them free room and board for 10 years all at a taxpayer funded “resort facility”. I hope they appreciate my efforts!
Good luck and Godspeed.
Hi. Good work. Maybe you should cc the CA tax dept. and CA attorney general and news organizations.
Congratulations on a concise and thorough investigation! The only thing that p’s me off is knowing that incarcerating these creeps will cost us as much as they stole from us.
I hope the FBI offers you a great-paying gig and gives you a fat bonus for doing all this work for them– and a BIG “thank you” on behalf of us taxpayers.
Thank you, Paladin, for your efforts. I find it harrowing that citizens even need to expend such efforts to try to catch such obvious crooks in the face of incredible reluctance in the ranks of law enforcement, but your efforts are appreciated nonetheless. One other poster implied that you need to get ahold of the news media for what you’re doing; I agree with that, for two reasons:
1. Protection. Whistleblowers always have problems.
2. Expansion. With news coverage it’s harder for officials to ignore you or cover it up.
BR,
In 2008 I sent the whole story to the Sacramento Bee, but they get so much advertising from home builders they chose to ignore all of it.
This time I send the whole package to Ed Goldman at the Sacramento Business Journal. He is a great writer and really likes these kinds of stories. We shall see what happens this time.
‘Housing usually plays a very important role in economic recovery both through construction itself and related industries but also because higher house prices increase consumer wealth and promote consumer spending. Housing does seem to be doing somewhat better. There are some good signs in housing but nevertheless we are not getting the size of the boost, the amount of help in the recovery that would normally get from a housing recovery.’
This casual observation about the current state of the housing market would be far less disturbing, were it not accompanied by the subtext of the Fed leadership’s presumption that it is possible and even desirable to revitalize the housing market through market-distorting interventions which override fundamental forces that would otherwise restore balance between housing supply and demand. Apparently in the view of the Fed leadership, there was no Housing Bubble, and particularly, no extraordinary period in recent years of overbuilding, stimulated by a protracted period of ultra-low interest rates, to produce housing supply far in excess of demand, particularly at the top end of the price range. Assuming away the Housing Bubble, what we just went through was the normal minor downturn in real estate demand that accompanies a recession, and now we are transitioning into the typical post-recession housing market recovery period.
Damn the torpedoes — full steam ahead!
The Cult of Growth always bets on inflation. Unfortunately for them, unless something is created that functions as “supercredit”, with spending levels directly supported by the government’s ability to monetize, then such growth is impossible to continue. In fact, it’s pretty much over. Globalism smacks headfirst into the downslope past Peak Petroleum.
Who said it, in what context was it said, and has the present-day Fed leadership forgotten this lesson?
Isn’t this the recurring story of “Capitalism”?
No it’s American Exceptionalism - I see the invisible hands of Government and the Fed all the way thru this process.
Do note that capitalism was quoted.
Just as pure communism never existed I would also posit that pure capitalism has also never existed. In it’s stead we’ve always had a crony system that favors the banksters.
What about the Gilded Age, Dickensian England, and present day Somalia?
Andrew Berg on sustaining economic growth.
Wrong, but nice try.
Hint: He was a Mormon who held a top position in the American financial system.
Mitt Romney? If so….where is that published?
I believe that Eccles had it backwards. The concentration of wealth was only possible because of the habitual borrowing of the consumer. Sure, game over when credit limits are reached.
That makes a lot of sense! Have there been any studies showing a correlation between credit expansions and wealth concentration and/or income inequality?
Mark Twain partially nailed it long ago:
The part he may have missed regards when the banksters on occasion hand out myriad umbrellas for free just as a hurricane bears down on the coast.
I once heard capitalism described as the absolute worst economic system there is, except for all the others. Capitalism is basically free choice versus being told what to do. There have always been a lot of ugly things that come out of freedom, but IMO it’s still better than the alternative.
Years ago, thinking I’d had it with this country, I looked around at other countries to live in. There were pros and cons, but I noticed I was always relieved to get back. Ultimately I decided this was the best arrangement for a regular Joe like me.
We’ve got a pretty neat constitution. Each state is supposed to be free to set up a system, within limits, that reflects what the people in that state want. Then others are free to migrate to any area or try to emulate successes here or there. Along the way, it seems we’ve gotten away from that. We abandoned the core freedoms and let the Federal government expand it’s power such that now we squabble over the frayed edge of it’s leavings. Just one example of many; somehow, without much of a ruckus, the president is now the judge, jury and executioner of anyone he chooses.
And we have only two primary candidates for the position, with no opposition to this ultimate power. To me that says a lot about our system, about how we see ourselves in it. And it’s just one of the examples of how we’ve lost our way. I don’t know what can be done or if it can be done.
This is the original quote:
It has been said that democracy is the worst form of government except all the others that have been tried.
Sir Winston Churchill
Nothing to do with capitalism.
You have hit upon intellectual debates that need to be made, but won’t because we are too far along the path of the “government” as the savior State, providing all the needs of the people (some people) by stealing from the labors of others.
I have always been a proponent of the Confederacy. Although most people in this country are thoroughly brainwashed by public education, believing Lincoln was the greatest president and the Civil War was the salvation of the “nation”, I side with the South.
It was only 4 score and 7 years before Gettysburg when the Declaration stated what people who had become discontent with the Government should do….declare the causes they led them to their separation and dissolve of the bands that tied them together and set up a new government, so governed as they saw fit.
When the Southern States did just that, the President was inclined to “save the Union”.
We have lived under an ever expanding Federal State since that time.
Most people in this country are morons. They want everything to be “nationalized”, like “healthcare”, which is really medical care because health is a personal responsibility. But the political class has pandered to the masses and each and every year, add another FEDERAL takeover of States Rights and Individual Liberties.
I was glad to see Arizona try to control the massive illegal invasion, but you see, the “feds” are fighting the State.
Now the President is providing more support for more illegals. The Feds are at war with the “people” and supporting invasion forces, while making war on people who never invaded this country. It’s a bizzaro world, and it could only happen with an out-of-control Federalized system.
If we can’t fix it, I expect we will see our political Bands dissolved by other means.
Exactly Ben!
Take that, those of you HBB admirers of Karl Marx’ “From each according to his abilities to each according to his needs.” you know who you are.
WE are also deceived by the public schools concerning things economic. They equate Capitalism with “Free Enterprise”, which at some point in our past probably had some basis in fact…..long before Central banks and the Federal Reserve.
Today, Capitalism is CONTROL OF CAPITAL, by Central Banks, by, of and For the Central Banks and their Cronies.
WE don’t have free enterprise.
Did you see the Senators genuflect to Jamie Dimon while he explained how all his criminal actions are really necessary to the functions of their Central State??
It was sickening. What investigation?
And the CONFLICT of Interest, being a FED governor and running one of the biggest banks goes beyond illegal. I consider it treasonous. He is bankrupting America, while lining the pockets of himself and the Politicians that continue to provide cover for the Bankster skimming of America, and now the world.
Capitalism: Printing money as legal tender and providing it to your friends and buddies.
‘Nothing to do with capitalism.’
Huh? Some dead guy has ownership of a thought or line of thought? I heard that in college. Why don’t you just state what system is better? Or are you just splitting hairs?
Splitting hairs. Some people want to parse your every word, looking for some small error and or mis-statement or misuse of phrase to then discredit the entire line of thought.
It’s much easier to throw stones than to dissect the line of thinking and come up with a good counter-argument.
I remember commenting one time that i was listening to a radio show and heard such and such about a topic…..
I then needed to provide the Name of show, time of day and radio station call numbers to provide “proof” that I actually heard the broadcast. The content of my writings was irrelevant.
And, even if i did, the broadcaster was obviously lying.
“Some people want to parse your every word, looking for some small error and or mis-statement or misuse of phrase to then discredit the entire line of thought.”
Believe it or not, there is an entire profession which earns their living in such occupation. They are called attorneys.
Your point is well taken, but the Judge or the JURY is supposed to make a judgement based on the preponderance of evidence.
“I have always been a proponent of the Confederacy.”
Where’s Hwy & Alpha in their Union Army re-enactment uniforms?
If you make an argument with a reference to an authority (a quote) then, yeah, it makes a difference what the real quote is. If just think the idea applies, then make your argument without a reference to authority.
And regulated capitalism works better than pure capitalism if for no other reason than unregulated capitalism can lead to monopolies. Just that alone is reason enough to advocate for some level of regulation.
Exactly how much is the right level is taken care of by…wait for it…democracy.
I did reference the ‘real’ quote. The one I heard
You may not know the US isn’t a democracy. And Churchill should have known better. Hitler was elected.
I have always been a proponent of the Confederacy.
Thanks for pointing out what states’ rights is really all about, Diogenes.
providing all the needs of the people (some people) by stealing from the labors of others.
There’s a piece of irony for you. It appears we have a choice: we can favor a government who provides all the needs of the people (some people) by stealing from the labors of others, or we can favor corporation who provides for all the (many) needs of the people (a few people) by stealing from the labors of many many others.
Have there been any studies showing a correlation between credit expansions and wealth concentration and/or income inequality?
Careful there. There’s probably a correlation, but you have to tease out some chronological timeline in order to determine which the cause and which the effect.
Careful there.
The important thing to remember is the little people forced this on the 1%ers, who reluctantly went along with it and made billion$ against their will. Therefore their taxes should be lowered. Right, Blue?
Blue Skye said: “The concentration of wealth was only possible because of the habitual borrowing of the consumer. Sure, game over when credit limits are reached.”
No, the game will continue, with changed rules. Since borrowing wealth into existence (for collection due to concentration efforts) doesn’t work anymore, then it will be taxed into existence, or otherwise confiscated and then turned over to the “job creators” (who don’t even have to create jobs anymore).
Currently we’re in the age of Debt Slavery. Since that can’t continue, we’re already transforming into an age of Tax Slavery. Our children as now will be government slaves. Guaranteed. They sure as shit aren’t being prepared to shoot and bomb their way out of this government, so….
June 22, 2012, 4:58 P.M. ET
Grexit: Germany Boots Greece from Euro… Tournament
By Michael Aneiro
Greece is still in the euro zone but it’s out of the Euro 2012 soccer tournament after being manhandled by Germany 4-2. Germany dominated possession and took a 1-0 lead into halftime before Greece made it interesting with a goal on a counterattack to tie things at 1-1 early in the second half. Germany responded with three straight goals before Greece made it slightly less not-respectable by converting a penalty kick late in the game.
…
I posted my FBI mortgage fraud letter this morning at 5 AM, but it has not landed.
When I first started to understand there was a housing bubble, I would come to this blog to share my questions and observations. When my fiance and I wanted to buy a house in 2005 in which we could start our lives together, we ended up renting, because we began to understand “reversion to mean”, “rent to price multipliers” and “Income to purchase ratios”. This blog saved my ass from purchasing a $700,000 house in 2006 that foreclosed and sold for $375,000 in 2008 and foreclosed again in 2011 and just resold for $255,000 (trashed). We rented a house instead ($.67/sf) for 1/4 the cost of purchasing.
The house we rented was in a brand new subdivision of 140 houses. About 130 of them were owned by “flippers”. So the other thing that happened to me was that I had a front row seat into unbelievable amounts of mortgage fraud. I became “Paladin” and started web site called “Paladin Reports” and began to spend 100s of hours a month tracking down mortgage fraudsters. It was intense work and getting the authorities to pay attention to me was a story of its own.
Anyway, two weeks ago, I came across a situation that seemed a bit fishy, so I invested 20-30 hours and poked around. A lot of you HBB contributors and readers have been interested in the process, so I am posting my latest work below.
Test
patience….not my long suit. It all posted above on top…..it just to a couple of hours to clear the filters….
I don’t think so, now that the Fed has learned the lessons of the Great Depression and has figured out how to avoid them going forward.
Sorry for the misfire; that was meant to answer:
“…how to avoid them going forward…”
You mean by turning them into the multi-decade Great Recession of high unemployment, stagnant wages and high inflation???
Yes; they learned to never call them “Depressions” since it just alerts the sheep to circle their wagons and (GASP!) save money for themselves instead of the bankers.
We’re in the Great Depression Two. It started in 2008 when three major U.S. industries crashed and burned: Housing, Banking, Automotive. And the federal government now borrows 40 cents on each dollar spent, just to cover it up. Greater pain is therefore coming; I’m talking about pains like calling 911 and getting no response; canceled pensions; even Secession of states. That’s how serious this is becoming, with every year we keep denying reality.
How ObamaCare Increases Income Inequality
“Because ObamaCare forces people to get comprehensive, and therefore expensive, health coverage, it actually makes the income inequality problem worse. Lower- and middle-income workers will see a much larger percentage of their income — which includes the employer’s contribution since that is part of total compensation — going
“It’s an irony that we’ve seen frequently from this administration: decrying certain economic trends while unwittingly enacting policies that make the situation worse.to health insurance than higher-income workers.”
http://www.forbes.com/sites/merrillmatthews/2012/06/22/how-obamacare-increases-income-inequality/2/
All the Unions and government employees are doing much better, thank you very much.
Obama is a socialist/fascist that hates the average American. He sees government as the solution to everything…by mandate.
He will right all the wrongs (as he sees them, and he is a psycopathic/meglomaniacal/baffoon).
All his policies are designed to increase government’s size and scope and to provide benefits to the world.
Imagine the Hubris of a man, prior to becoming Candidate Obama, going oversees and standing before the BRandenburg Gate and declaring himself a Citizen of the World and proclaiming how he will heal the earth if he gets to the Presidency of the United States.
Well, he got in.
Now, he wants to move …….Forward??
“All the Unions and government employees are doing much better, thank you very much.”
Except teachers. Obama and Arnie as just as enthusiastic about destroying public schools as any Republican Charter freak.
I heard unions caused the housing bubble.
I don’t think anyone really wants to destroy the ‘public schools’.
We just want to destroy the UNIONS. These schools are run by ‘public servants’, supposedly.
They have no business banding into national and international unions to tell us how we should have our public resources used.
There should be NO ‘public unions’.
They are not working for some money-grubbing, nasty, mean, ugly capitalist pig. They are supposedly working for the people, at the forebearance of public opinion. They should not be able to work pay deals and benefit deals with government bureaucrats and then band together as a voting block to benefit themselves at the expense of the very people they claim to work for.
Dio, I love your passion.
IMO, the solution begins with voting all incumbents out, every election, before they have time to get bought and paid for.
Income inequality is not a problem. Why is it a problem if Bill Gates is a billionaire? Oh yes, a problem for bleeding heart liberals who hate business and money. But love taxing and spending.
“Why is it a problem if Bill Gates is a billionaire?”
Cuz Microsoft products suck rox?
It isn’t a problem if one person is a billionaire. One person is rarely a problem, and since Bill Gates is the process of giving away a lot of his money in a way that creates jobs (education researchers and teachers and public health consultants and grant proposal writers and all sorts of educated people like that) it is even less of a problem.
It is a problem if a tiny percentage of the population has control of so much money that the demand for goods and services that would normally come out of the middle class is severely reduced. No matter how rich the tiny percentage is, they can’t create the kind of demand that 10s of millions of households with decent income could. No matter how many houses with car elevators they build. That is the problem. And not only are we headed in that direction, the farther along the line we go, the more likely it is that we will keep going in that direction because of the political power the money gives them.
Oh my god !!!
That just says it all. You must LOVE Obama.
You are a true government bureaucrat leftist cheerleader:
“Bill Gates is the process of giving away a lot of his money in a way that creates jobs (education researchers and teachers and public health consultants and grant proposal writers and all sorts of educated people like that)”…….. yea, people like that.
people who work in government and re-direct government funds to things they think are important.
It’s the same old crap. Teachers, Firefighters, police, and government bureaucrats are ALWAYS the source of “jobs” and a better society.
We can ignore plumbers, clerks, mechanics, carpenters, insurance salesmen, pilots, hair cutters, engineers, architects, dog groomers, phlebotomists, chiropractors, lawn maintenance persons, butchers, growers, car buffers, concrete suppliers, steel workers, fishermen, boat makers, boot makers, lawyers, bankers and indian chiefs, yea, ALL to them are insignificant.
The ONLY people who need support are government “fixers”. Meddlers in other peoples lives who see themselves as the salvation of mankind by public mandate.
Yea. You’re an Obama fan. He wants to keep giving my money to more government agents to provide all kinds of indoctrination to the leftist world view. We should all just pay tribute to the world fixers.
Dio Dio Dio….You forgot the #1 tribute…DRUGS we are in afghanni to keep Drugs alive Even in NY Cuomo is not getting pot decriminalized
How much money is being sent to politicians to keep hemp illegal..
Why cant people just grow their own but still be a felony to sell?
—————
We should all just pay tribute to the world fixers.
+1 Polly
Thanks. I can’t believe the rant that evoked. Like it is big news that there won’t be much consumer demand when the middle class disappears.
Thanks. I can’t believe the rant that evoked. Like it is big news that there won’t be much consumer demand when the middle class disappears.
+1, polly.
Having all the wealth concentrated in a few hands is one of the edge cases that capitalism doesn’t handle very well—similar to how it doesn’t optimize well when a producer of something essential has a monopoly.
Dio, I don’t read Polly as being too far off from where you are. The way I interpret her comment, she is saying what you are saying - that if too much wealth gets concentrated at the top, there is not enough (AAK) ‘consumption’ by the hapless hundred million in the middle class to sustain the domestic economy. It’s a numbers game.
Her example. Bill Gates only needs a limited number of made-in-America frying pans. The hapless hundred mill would probably need 5 million units a year (just guessing, what do I know). Five million units would be a nice market for a domestic frying pan maker, assuming the five million had the money to buy them.
Not trying to be partisan here, but it just sounds like you and Polly are on the same page.
I’m missing the fear factor in Uncle Warren’s determination that now is the time to invest in housing. Rather, the greater fools with buckets of money and boxes of stupid seem to be back.
Perhaps the ravages of age are clouding his judgment?
Buffett’s Big Bet On U.S. Housing: 3 Ways To Play The Recovery
June 24, 2012
by Mike Kapsch
Warren Buffett’s predictions last year were premature. But this year, his premonitions just may be spot on. And there are five little-talked-about reasons why… Several years ago, Warren Buffett was asked how he and his partners managed to make so much money investing in the markets. Buffett confidently answered, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
Our readers hear a lot about this type of investing. It’s better known as “contrarian investing.” And on Monday, Buffett proved once again that he’s one of the biggest contrarians in the world. That’s because Berkshire Hathaway (NYSE: BRK.A) put in a $3.85-billion bid to buy a mortgage business and loan portfolio from now bankrupt Residential Capital LLC. There’s no doubt the housing market in America is still in a very shaky state. As The Wall Street Journal reports, “Pessimists insist that… prices will continue falling – perhaps as much as 20% or more.” Plus, it’s not even the first time Buffett placed a bet on the U.S. housing recovery and lost. His predictions early last year were premature.
…
“Plus, it’s not even the first time Buffett placed a bet on the U.S. housing recovery and lost. His predictions early last year were premature.”
If it turns out that America has turned into Japan, this could get interesting — particularly if Buffett has joined the serial bottom caller brigade.
Here’s to hoping he catches himself a falling knife.
I’m deeply sorry if that remark came out sounding uncharitable, but I am very dismayed that Uncle Sam keeps pouring billions of tax dollars down the housing market rat hole, thereby enabling the 1% to profit off a subsidy flow that comes out of the pockets of the overtaxed worker bee / renter class.
Estimated GSE Losses = $448 Billion
By Barry Ritholtz - January 14th, 2010, 6:00AM
Laurie Goodman is a well regarded expert on securitization and MBS. She is the former UBS mortgage analyst — Institutional Investor #1 ranked — and is now at Amherst Securities (Bloomberg video here). In a 17 page report released Tuesday, Goodman tried to estimate the total losses that the now-government-owned GSEs will accrue.
This is not an abstract question: Since the Christmas Eve massacre when the Treasury department removed all government caps on aid to Fannie/Freddie, Uncle Sam aka the taxpayers are on the hook for unknown amounts. Given the GSE’s hold $5.5 trillion dollars in mortgages, the potential losses are $100s of billions, if not trillions of dollars.
…
FHFA Sends Annual Report to Congress on GSEs, FHLBanks
by Jann Swanson
Jun 13 2012, 3:09PM
As required under the Housing and Economic Recovery Act (HERA), the director of The Federal Housing Finance Agency (FHFA) submitted the agency’s annual Report to Congress on the two government sponsored enterprises (GSEs) for which it is responsible and for the Federal Home Loan Banking System (FHLBanks.) In addition to a lengthy recounting of the performance of the regulated entities during the course of 2011, FHFA also provided an assessment on their safety and soundness including information on any material deficiencies in their operations, their overall operational status, and an evaluation of their performance in carrying out their respective missions.
FHFA reported that it had conducted an examination of both GSEs as to their financial safety and soundness and overall risk management practices on a framework known as GSEER which stands for Governance, Solvency, Earnings, and Enterprise Risk which comprises credit, market, and operational risk management. The agency assigned rating of critical concern to both Fannie Mae and Freddie Mac in a number of areas and ratings of substantial concerns in others.
In the case of Fannie Mae, the report says that the GSE “exhibits critical financial weaknesses as evidenced by its poor performance and condition and prospects”. Credit risk remains high but is somewhat mitigated by the higher quality of the single family book of business since 2009. Business operations are vulnerable to disruption, especially by human capital risk, and capital is wholly dependent on the support of the U.S. Treasury.
In the case of Freddie Mac FHFA says its credit risk remains high, the control structure is weak, human capital risk is elevated, and their capital is also wholly dependent on the Treasury.
…
FHFA assigns a limited concerns rating to Fannie Mae governance, an upgrade from the last examination and is working with the company to identify a new president and chief executive officer. This solvency or capital classification for ratings remains suspended as it has been since the beginning of conservatorship, but FHFA assigns earnings a critical concern rating. Fannie Mae’s net losses increased in 2011 to $16.9 billion from $14 billion in 2010, driven primarily by high provisions for credit losses. New delinquencies along with further declining home prices resulted in a substantial increase in loan loss reserves. These reserves increased $10.6 billion to $76.9 billion in 2011. In addition a steep decline in long-term interest rates led to mark-to-market losses on derivatives used for hedging purposes.
…
Housing Recovery Fact #6
The Obama Administration is on their way out and Romney is going to lead out country out of this recession.
We’ll see. So far I have seen little, if any, evidence the Romney campaign has a viable plan to lead the U.S. Perhaps after they turn the etch-a-sketch upside down and shake it a bit, a plan will materialize?
As near as I can tell, the Romney campaign says they have a plan but refuse to disclose it because they know that the details (probably massive cuts to Medicare and Social Security and possibly the cutting of some popular tax deductions) would keep them from being elected at all. Which means that they won’t implement their plan because it won’t get through Congress. So, even if their plan could possibly work, I don’t see how you can claim it will do anything, since they won’t be able to implement it.
The most important two things you have to know about DC is that members of the House of Representatives are always running for office - every moment of every day of every year - and that you have to have a super majority to get anything controversial through the Senate - 60 for the Republicans because their party discipline is pretty rock solid and 63 to 64 for the Democrats since there are a few conservative Democrats left who won’t always go along. Anything else is window dressing.
And I still don’t get why someone like Lip spends time saying things like “Romney is going to win.” The Obama campaign sends me e-mails all the time trying to convince me that that is a possibility. They use it to try to convince me to volunteer and send money and that sort of thing. You are doing your opponents’ work for them. Why?
FACT #7
You’re endorsing a cheap counterfeit to replace a cheap counterfeit who answer to the same masters.
Maybe newsmax or Daily Kos would be a more suitable place for your posts.
Hey Truth, just don’t read my posts. I was here long ago and now I’m back. deal with it.
Yeah. You were here exactly 4 years ago pimping a political candidate. This is a blog on housing. Take your pimping elsewhere.
And if you’re going to invoke the “I was here before you”, I was here at the beginning.
Dear Truth,
I am sorry if you find my thoughts offensive. I am what I am.
I think all politicians are at fault for what’s happening and therefore I choose to “hope for” a party or a candidate that will minimize our pain.
Do you really think Warren Buffett doesn’t look at who is going to be the next President?
Do you really think that he should be paying more of his wealth in taxes?
Truth is, he does and he doesn’t.
I agree fundamentally however if you really believe either of these candidates are going to change anything you’re mistaken.
Hey “Truth”, isn’t this a housing blog? Why are you commenting on politics. Just sayin’
Yes it is so take your partisan electioneering bull$hit over to daily kos.
Thanks again,
Truth
“Why are you commenting on politics.”
Can’t speak to the Truth’s motives, but I for one plan to point out that Republicans suck every time I detect their political operatives infiltrating the HBB.
their political operatives infiltrating
PB, do you really believe that there are “operatives”, or just some partisan types who parrot talking points remarkably well?
My money is on the latter…
“Romney is going to lead out country out of this recession.”
Agreed that the “one” is a stooge, but to suggest a career corporate raider will lead us to prosperity might be a stretch. Prosperity for “them” yes, “us” no.
It could be a ruse to hand over what remains of middle-class American wealth to the 1%.
This Recession has another 8 years to run.
Romney will lead us out in his 3rd term as President.
This Recession has another 8 years to run.
+1 …at least another 8 years.
Ye gods, again it begins. Has it been four years already?
”…Romney is going to lead out country out of this recession….”
Partisan hacks and religious nutjobs get relegated to the Joshua Tree file. Please take your inane cheerleading elsewhere and save us all the trouble?
Can’t having too much fun tweaking y’all.
Here is some news to get the Republican base members’ underwear tied up in knots.
And btw, whose image has the entertainment industry’s exposure helped the most in recent years: Mormons, or gays?
Op-Ed Contributor
I’m a Mormon, Not a Christian
By DAVID V. MASON
Published: June 12, 2012
THANKS to Mitt Romney, a Broadway hit and a relentless marketing campaign by the Church of Jesus Christ of Latter-day Saints, Mormons seem to be everywhere.
This is the so-called Mormon Moment: a strange convergence of developments offering Mormons hope that the Christian nation that persecuted, banished or killed them in the 19th century will finally love them as fellow Christians.
I want to be on record about this. I’m about as genuine a Mormon as you’ll find — a templegoer with a Utah pedigree and an administrative position in a congregation of the Church of Jesus Christ of Latter-day Saints. I am also emphatically not a Christian.
…
How many more years from now will it be until the housing market serial bottom callers finally give up in shame for looking perpetually foolish and wrong?
UCLA forecasts California housing recovery next year
‘California real estate markets are either still in the trough or still declining towards it,’ and unemployment won’t hit single digits till mid-2013, UCLA report says.
June 20, 2012|By Ricardo Lopez, Los Angeles Times
Alfonso Anaya, 56, gets information from Julie Chin, right, Director of the Camino Real Busing & Trucking Career School at a job fair on Los Angeles’ skid row last month. A new UCLA report forecasts that unemployment in California will remain in double-digits until the middle of 2013.
Despite quickening home sales and rising prices in some parts of California, the state’s housing market won’t begin a full-fledged recovery until next year, economists at UCLA predict.
A dearth of residential construction remains a huge drag on the state’s economy, according to the quarterly UCLA Anderson Forecast, while sales of distressed properties still dominate the market.
…
Yeah, here in the Bay Area, sales are up, and all we hear about is “more competition for fewer houses.” You know, the same fear mongering we saw during the bubble years.
Then the SF Chronicle runs an article this weekend that 60% of home loans during the bubble years were jumbo (above the previous loan limit of $417K) and how it’s basically impossible to re-fi a jumbo that is under water.
No wonder there’s “less” inventory. Between the banks trickling out distressed sales and all the trapped home debtors, it’s no wonder. But people see this as pressure to buy now??
FWIW: Here’s a 47 minute video about quants that may be of interest to some.
http://topdocumentaryfilms.com/quants-alchemists-wall-street/
I was going to respond in yesterdays bits and buckets to the “Fast & Furious” thread.
This will sound extreme, just as someone suggesting 10 years ago that armed drones will fly over amerikan skies. Or that amerikan soil is now a battlefield. Or that you can be declared a terrorist by decree with no legal representation. Or your grandmother will be molested at the airport so that we will “safe” from the latest bogeyman. Or the people elected and sworn to “uphold and defend the Constitution” are doing just the opposite. Or Posse Comitatus being suspended (see the latest Saint Louis “training exercise” as the latest example). Or credit being extended, always with “conditions” (see Greece for what awaits us).
You get the point. Does anybody really believe that those crazed with power will now stop their subjugation of the masses? Anybody? Maybe I should start a regimen of psychotropic drugs, like a growing percentage of our population does, to get me “in line”. I don’t envision myself as Audie Murphy here, just someone who doesn’t like being cornered like a rat.
Extrapolate current events to their worst possible outcome. Firearms will be the last thing between you and outright slavery.
Sound crazy? I hope this post eventually turns out to be a crazy thought. But just in case I’d like to exercise my second amendment right while it still exists.
You remind me of the play we saw last night — King Richard III.
I don’t direct the above quote at any one leader; simply pointing out that Machiavellian leadership has been around since long before when Machiavelli described it.
Richard III isn’t even remotely the most Machiavellian of Shakespeare’s rulers. That would be the Duke in Measure for Measure - leaving the country so Angelo can do the strict judge thing and then he can come back and be merciful (and beloved) after the hard work is done.
I don’t know. I was quite impressed with the scene where Richard is paraded around in front of the peasants, holding a copy of the Bible and feigning to be pious, in order to legitimize his ascendance to the throne, despite having recently murdered a number of his most beloved male relatives.
That struck me as quite Machiavellian.
Google any of the Founding Fathers and their quotes on the right to keep and bear arms which strangely aligns with your thinking.
As in, these things happen all the time in throughout history.
But just in case I’d like to exercise my second amendment right while it still exists…..
It’s in a battle every year. There is a huge contingent of leftist, government control types here that believe only the police should have firearms.
In spite of all the gun=control laws passed in many major cities of the US, they have proven to only disarm law-abiding citizens. Naturally, the problem from a leftist point-of-view is that we need NATIONAL control, because the criminals are still able to get firearms from other places.
In MOST other countries of the world, they governments have been successful at taking away firearms. And ownership is illegal.
Fascists and communists are particularly fond of gun-control. In every leftist taker of a State, the very first thing they do is confiscate the guns. Well, naturally, they don’t want any resistance from people who prefer to govern themselves.
Self-government is anathema to leftists. Government by the “illumined ones” is the religion of the left. They want to Control your every thought, word and deed.
And, of course, they say that people who do this are “far right extremists”. Black is White. If you want to disrupt a society, start by redefining terms and then attack the economic stability by currency manipulation and rabid inflation. The society will crumble.
“They, they, they, they, they.” Now you’re telling us that fascists are leftist? I’m a lefty and I’m armed to the teeth. As are most of my leftist fellow-travelers.
BOOGY! BOOGY! BOOGY!
That makes you and armed lefties exceptional… every single left leaning wingbat I know hates guns with a passion. Maybe it is east coast vs west coast…
I suspect it has more to do with the proximity of unarmed but dangerous, large mammals. Bears have been trapped and relocated from inside the city limits of Seattle. And cougars reside within a few miles of houses in the eastern suburbs.
I saw a bunny rabbit in the flower/shrub beds in front of my building last week.
Eventually, those in power (unnamed bureaucrats/civil servants) will go too far and create an enemy of some powerful/rich person.
Try not to catch yourself a falling knife in the stock market against the backdrop of the unresolved Eurozone debt crisis.
June 23, 2012, 12:00 a.m. EDT
Europe to remain in focus for next week
By Wallace Witkowski, MarketWatch
SAN FRANCISCO (MarketWatch) — Events out of Europe will likely set the tone of the coming week as U.S. economic data are expected to continue to disappoint and a few companies report earnings.
One of the most important things expected out next week are details on Spain’s bank-bailout plan, according to Michael Jones, chief investment officer of RiverFront Investment Group.
“Now is the critical moment to give us the details,” he said. “The market went crazy this week when they didn’t give details.”
Spain will formally apply to the European Union on Monday for aid to its banking sector, according to Finance Minister Luis de Guindos on Friday.
The country rattled markets this past week, derailing positive sentiment out of Greece’s election that favored parties supporting the bailout for its own crisis, after reports that bad loans among Spanish banks had reached their highest level in more than a decade. As a result, the yield on Spain’s 10-year Treasury note redlined past 7%.
Up to 100 billion euros ($126 billion) has been pledged by the euro zone to help bail out Spain’s banks. Stress test results by consulting group Oliver Wyman released Thursday estimated the banks would need $64 billion to $78 billion through 2014. Also on Friday, the European Central Bank eased loan-collateral requirements.
…
Hey - some change we can believe in!
Utter incompetency in our current administration.
—————————-
Muslim Brotherhood’s Mursi declared Egypt president
BBC | June 24, 2012
The Muslim Brotherhood’s Mohammed Mursi has been declared the winner of Egypt’s presidential election run-off.
He won 51.73% of the vote, beating former PM Ahmed Shafiq, the Higher Presidential Election Commission said.
The head of the panel of judges, Farouq Sultan, said it had upheld some of the 466 complaints by the candidates, but that the election result still stood.
Mursi, Mursi me…
Excellent! We have returned religious oligarchs to power in a 3rd Middle East country!
Way to go USA!
We have returned religious oligarchs to power
Did Americans occupy Tahrir Square?
The sooner they gain power the sooner their country will collapse and people will see the folly of theocracy. Iran and Saudi Arabia would collapse without oil. Egypt has not oil and lives on charity and tourism both of which will go poof. My guess is the population of the world is about to fall a bit.
LOL
Who cares this is REAL NEWS:
http://www.hollywoodreporter.com/news/jeopardy-alex-trebek-heart-attack-341331
and we still don’t have the guts to fight a religious jihad….
How much of inflation is FIRE sector hype, in order to get you to invest with them, and how much is real?
I remember back in like 07-08, I did notice a sudden jump in the prices I saw. My grocery bill jumped up, I noticed clothes were more expensive. But since then, my bills have again stabilized. My purchase patterns are relatively stable.
What’s going on I wonder. What got me to thinking was listening to a stockbroker show on the radio. This guy was on the one hand, dooming-and-glooming inflation. On the other, he was advertising his company and his services. That sparked the BS detectors. The other thing that sparked the BS detectors was the TIPS interest rate they were talking about. Treasury Inflation Protected Securities. Yielding some well below 1% rate. Inflation protected.
Don’t get me wrong. Whenever I hear about the various central banks launching on massive money printing or balance sheet expansions, or more government deficit spending, I become concerned about the value of the currency. It seems to me that with a fiat currency, the most important thing a government can do is maintain the credibility of that currency. Otherwise, it’s just scraps of paper with interesting designs.
But the stockbroker show, my personal experience, and the TIPS interest rate got me to wondering about the reality of the situation.
Government WANTS inflation - because it makes its debts easier to pay off.
Government ALWAYS under reports inflation as it does not want to pay for SS COLAs, TIPS, etc. that are directly tied to the inflation number.
And who ever in charge of the current administration does not want to be blamed for inflation even though they desperately want it.
Without inflation - government would have to live within it means and slash spending. What politician would EVER run and win on that platform?
Jerry Brown, perhaps?
Democrats, Gov. Jerry Brown arrive at California budget deal
By Steven Harmon Bay Area News Group
Posted: 06/21/2012 11:33:15 AM PDT
Updated: 06/21/2012 07:13:24 PM PDT
SACRAMENTO –Setting the stage for a tough campaign to raise taxes, Democrats and Gov. Jerry Brown on Thursday announced a budget deal with “more difficult cuts,” squeezing another $1 billion from the state’s safety-net for the poor.
Most welfare-to-work recipients will get cut off state assistance after two years — instead of four — if they are not meeting tough federal work requirements.
And the state will eliminate the Healthy Families medical program that serves low-income children. Instead, nearly 1 million youths will be shifted over the next three years to Medi-Cal to help close a $15.7 billion deficit and eliminate future shortfalls with the permanent changes to safety-net programs.
The deal ends a showdown over the last $1 billion in cuts needed to balance the budget. Legislators on Friday had approved a main $92 billion spending plan to meet the June 15 constitutional deadline and avoid forfeiting their own paychecks.
It cut short speculation that Brown would veto a budget bill for a second straight year and gave Democrats a chance to crow about an on-time budget as they head into the campaign season.
“This agreement strongly positions the state to withstand the economic challenges and uncertainties ahead,” Brown said. “We have restructured and downsized our prison system, moved government closer to the people, made billions in difficult cuts, and now the Legislature is poised to make even more difficult cuts and permanently reform welfare.”
…
Is it a safety net, or a way of life?
Here is a promising development. Cutting these too-big-to-fail fockers down to size is the first step along the path to revitalizing America.
Business | Banking
JP Morgan loss triggers moves to cap size of banking behemoths
Regulators and legislators are weighing proposals to manage too-big-to-oversee Wall Street firms
Bloomberg
Published: 00:00 June 25, 2012
Gulf News
A pedestrian walks past JPMorgan Chase & Co headquarters in New York
Image Credit: Bloomberg
JPMorgan Chase and Co’s $2 billion trading loss has reignited the question of whether a bank can grow too large and complex for its own executives to oversee.
Congress’ inquiry into JPMorgan Chase & Co.’s $2 billion (Dh7.3 billion) trading loss has reignited the question of whether a bank can grow too large and complex for its own executives to oversee. The banking industry is taking notice that a move to cap the size of Wall Street firms is gaining traction on Capitol Hill.
“There seems to be growing interest in some type of breakup proposal,” Sheila Bair, a former chairman of the Federal Deposit Insurance Corp, said.
The concept is expected to arise today as JPMorgan Chief Executive Officer Jamie Dimon testifies before the House Financial Services Committee on the trading debacle. Last week he told the Senate that the losses, which carved about $23 billion from the bank’s market value, were due to a poor investing strategy coupled with management failures.
Senator Sherrod Brown seized on that admission.
“It appears executives and regulators simply can’t understand what is happening in all these offices at once,” the Ohio Democrat said during the June 13 hearing. “It demonstrates to me that too-big-to-fail banks are, frankly, too-big-to-manage and too-big-to-regulate.”
…
So they want to break up the too-big-to-fail banks because they are “too-big-to-manage and too-big-to-regulate”, but not because they are too-big-to-fail?
It seems to me that too-big-to-fail should be reason enough. If something is too big to fail then it must be too big.
The term that defines these banks is the same term that defines the problem with these banks.
“The term that defines these banks is the same term that defines the problem with these banks.”
That’s precisely why I made such a concerted effort a few years back to make post after post here that shed light on the problem.
Out of curiosity, Jinglemale: why are you paying 25% down? Wouldn’t a lower down-payment allow you to purchase more properties?
Is it the lending standards that require or encourage this (e.g. with better rates)? Or some other reasons?
Thanks for the info…
Comment by Jinglemale
2012-06-23 06:16:54
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I have been buying houses in this downturn: below reproduction cost, using 25% down payments, fixed rate loans, and renting them out for positive cash flow. The liklihood I will default is very low.
“below reproduction cost”
Which is?
The cost to reproduce asset I believe.
Which is?
The long term consequences of outsourcing
Is IBM an American company or an Indian company?
http://www.ted.com/talks/nirmalya_kumar_india_s_invisible_entrepreneurs.html
Best outcome tomorrow OhBoozoocare loses and he Mans up and Pulls an LBJ…..