July 25, 2013

Bits Bucket for July 25, 2013

Post off-topic ideas, links, and Craigslist finds here.

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Comment by Resistor
2013-07-25 03:36:21

“EXography: 19 U.S. cities have proportionately bigger workforces than bankrupted Detroit”


Comment by ecofeco
2013-07-25 04:21:52

Are we there yet? :lol:

Comment by Blue Skye
2013-07-25 05:24:07

It’s just over the next hill.

Comment by snowgirl
2013-07-25 07:18:44

LOL How long have we been saying that?

Comment by alpha-sloth
2013-07-25 07:20:48

Since FDR’s first term.

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Comment by Wackford Squeers
2013-07-25 05:57:47

rents going up, up, up. the sky’s the limit. rent now or be priced out forever!

‘the apartment vacancy rate in metropolitan denver fell to 4.2 percent during the second quarter of 2013, reaching the lowest vacancy rate recorded since the third quarter of 2000.

at the same time, the average rent for all apartment types in metro denver rose to 1,022, increasing 4.3 percent from the previous year, according to a report released wednesday by the apartment association of metro denver and the colorado division of housing.’


Comment by AbsoluteBeginner
2013-07-25 06:18:09

Denver is huge. Is rent going up everywhere in the suburbs of it too? I’d love to live in Denver if I thought I could deal with the west again. The east coast is a different picnic.

Comment by Wackford Squeers
2013-07-25 06:31:07

Can’t speak to the suburbs since I keep it real living in the city (cues up “In The City” by Joe Walsh), but Capitol Hill, Cherry Creek, Lower Downtown, Highlands are all on a permanent upward trajectory that if continued will have rents equal to Manhattan by the end of 2014.

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Comment by In Colorado
2013-07-25 08:14:32

It’s where all the local young, pretty things want to be.

Comment by Carl Morris
2013-07-25 08:24:59

Except the ones in Boulder who think everybody wants to live here.

Comment by goon squad
2013-07-25 08:35:20

one of the people in my office commutes from boulder to aurora every day. she has to leave by 4:30 every morning or her 45 minute commute will take 75-90 minutes.

and yes, rents are going up and there are no vacancies. the demographics of my neighborhood are noticably changing.

Comment by Beer and Cigar Guy
2013-07-25 09:38:03

Renters? Don’t they understand that going into debt so deeply that they will never recover financially is the only route to happiness? Don’t they understand that grossly overpaying for a depreciating asset is a status symbol? Don’t they understand that speculating foolishly with your money- right on the heels of the previous collapse- showcases how smart and business-savvy you are? Ughh! People who think for themselves and try to behave rationally- don’t you just HATE them?!?

Comment by AmazingRuss
2013-07-25 12:22:05

We’re just incorrigibly stupid that way.

Comment by Shannon
2014-04-04 12:46:25

I moved out of Denver when they raised the rent for a second time in one year on my crappy, old brick, over-heated apartment that was poorly maintained in Wash Park area. I threw my stuff in storage and have been searching for home ever since. I’d rather live in the mountains than in Denver, even with not a lot going on and a long drive to get to services and certain stores. I know your post is old, but I tried to see if I wanted to go back to Denver this year (because my stuff is still there) and I just hated the whole vibe. It is getting more and more crowded and expensive by the year. The traffic is awful and I just felt energetically slimed by the place every time I went to visit a friend or my storage unit - and it’s not really pretty. I won’t be going back also because I’ve been priced out of there. I can’t afford a nice enough apartment in a decent area that I can stand, so I am going to try living in the southeast for a while. I miss greenery, woods, and lakes and moisture. I can’t see myself ever getting ahead in a place like Denver the way it is going. I am from Los Angeles and it is getting like L.A., but doesn’t have nearly what L.A. has in terms of geography and culture. And the people in Denver can be really damn weird if you are a single person trying to make friends. I met more screwed up hipsters than I care to think about anymore. Narcissistic, lame, and cliquish - redundancy reigns supreme in Denver, but maybe it does everywhere. I don’t know. I just never felt so stagnant emotionally and physically in one flat, brown place.

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Comment by United States of Speculative Bubbles
2013-07-25 12:31:55

On my one and only trip to Denver I was most struck by one thing: It was ugly brown flatland that felt like Kansas. I did visit the Cherry Creek Mall (or whatever it is called) and surrounding area. I don’t get the fascination.

Comment by Wackford Squeers
2013-07-25 12:46:29

Denver is ugly brown flatland that feels like Kansas. Don’t move here, tell your kids not to move here, tell your friends not to move here. It’s crowded enough, we don’t need more people moving here!

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Comment by United States of Speculative Bubbles
2013-07-25 13:06:07

Don’t worry, I am never moving to Denver. If I ever moved to CO, it would be into the mountains. But I am partial to the ocean, so I will never be moving to flyover country.

Comment by rms
2013-07-25 17:16:20

“But I am partial to the ocean, so I will never be moving to flyover country.”

+1 Ditto.

I love the SLO Central Coast, but I’ve been priced-out, so here I am in fly-over country.

Comment by Carl Morris
2013-07-25 12:57:30

Take away the mountains and the cooler summers and a concentrated clump of lefties and it is Kansas.

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Comment by In Colorado
2013-07-25 14:48:40

I don’t get the fascination.

The fascination isn’t so much with Denver (which is a very ordinary town) but with the nearby Rockies.

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Comment by non-conformist
2013-07-25 04:41:20

Bad Real-Estate Deals Return to Haunt Detroit’s Pensions

By Martin Z. Braun & Chris Christoff -
Jul 22, 2013 11:06 PM ET .

In 2006, businessman Robert Shumake asked trustees of Detroit’s two pensions to hand him $27 million to invest in real estate.

Shumake, whose real-estate broker’s license had expired four years earlier, became embroiled in a federal case that led to indictments of a former city treasurer and pension officials on charges of bribery, extortion and kickbacks that cost the systems more than $84 million, the U.S. Justice Department said.

A litany of such deals gone wrong shows how a municipal retirement system for 30,000 employees and retirees — propped up by $1.4 billion in borrowed money — became a cash cow for a select few. Now, these bad investments are coming back to haunt workers and pensioners as the city proposed slashing their benefits in its filing last week of the biggest municipal bankruptcy in U.S. history.

Property Losses

The city’s $2 billion General Retirement System lost $16 million in fiscal 2011 when it wrote off a housing development near Sarasota, Florida, that collapsed after the real-estate bubble burst, according to pension fund records. The $3.1 billion Police and Fire Retirement System lost about $15 million on 1,100 vacant acres 30 miles east of Dallas that was to be sold to homebuilders.

A 2006 loan guarantee for a Westin hotel and condos in downtown Detroit cost the funds $14 million.

That was just in real estate. The funds lost more than $20 million investing in a telecommunications company started by a Detroit businessman, $30 million on a cargo airline and almost $70 million on collateralized debt obligations — derivative securities backed by a pool of bonds, loans and other assets.

http://www.bloomberg.com/news/2013-07-23/bad-real-estate-deals-return-to-haunt-detroit-s-pensions.html - 172k

Comment by Blue Skye
2013-07-25 06:18:51

“$15 million on 1,100 vacant acres 30 miles east of Dallas…”

That would be pretty dry ranch land, wouldn’t it? Highly productive farmland isn’t worth $15,000/acre.

Comment by Housing Analyst
2013-07-25 06:24:14

Tillable land = $1500-2000/acre at reasonable crop yield. (depending on what you’re growing as it changes so much anymore due to rigged markets)

Comment by P.T. Barnum
2013-07-25 06:27:42

Not worth $15,000/acre as farmland but slice each acre into a bunch of lots and maybe it will work out if the sucker birth rate is kept up.

Think two-story McMansions with no back yards (think sardines). Con the RE buyers into thinking that square footage of the McMansion is all that matters.

Comment by P.T. Barnum
2013-07-25 06:31:17

It was a neat thing to get buyers to think in terms of price-per-square-foot of the house and not of the lot. Once buyers were conditioned to think in these terms the birth of the two-story McMansion was not far off.

One a minute.

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Comment by Housing Analyst
2013-07-25 06:51:26

It’s a corrupt thing to detract from evaluating the price of a house based on the cost of the structure in $/square foot and lot costs to get suckers to pay inflated prices.

ALWAYS evaluate the price of housing based on lot cost + structure on a $/square foot basis. ALWAYS.

Comment by Housing Analyst
2013-07-25 06:31:26

At $3k per lot, the square footage really is all that matters when evaluating the price.

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Comment by P.T. Barnum
2013-07-25 06:56:23

Even better:

Instead of paying $15,000 an acre for farmland pay something like $50/acre for desert land and then convince the ever-convincable that they should jump on the once-in-a-lifetime-opportunity you are offering them since there is a limited supply of desert land and ultimately everybody wants to live in the desert.

Call the place Californa City or maybe Californa Pines.

The name “Bodie” may work (tell the suckers that Bodie means “paradise”) but that name has already been taken.

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Comment by ahansen
2013-07-25 11:50:54

“…1,100 vacant acres 30 miles east of Dallas….”
Wonder what they’re planning to use for water?

Comment by Skroodle
2013-07-25 20:11:18

There are no farms 30 miles east of Dallas.

Comment by Blue Skye
2013-07-25 07:21:08

“slice each acre into a bunch of lots…”

The idea is that Detroit paid over the developed lot price for the whole undeveloped parcel. Someone got a huge payoff.

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Comment by Whac-A-Bubble™
2013-07-25 20:01:35

“Think two-story McMansions with no back yards (think sardines).”

Got plenty of those out here in Coastal Cali selling ‘from $1 million’…

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Comment by United States of Moral Hazard
2013-07-25 10:32:31

Farmland is in such a massive bubble that recently in Iowa the selling price was $22, 000 per acre. Get ready for “Farm Aid 2: Corporate Farms Are People Too.” Mellencamp will not be playing.

Comment by rms
2013-07-25 06:31:50

Are those democrats putting the bone to their union voters?

Comment by Neuromance
2013-07-25 08:43:06

The city planners and Wall Street made money on Detroit, and the citizens are left with the bill.

Absolutely nothing new, it’s a model that Wall Street and government at all levels have practiced for some time now. In recent years, it’s been honed into a science, but this is no different than a factory dumping effluent into the river (forcing the costs onto the public), while keeping the profits to themselves.

Privatize profits, socialize losses. A good business model if you have money to buy politicians.

Comment by Whac-A-Bubble™
2013-07-25 20:03:33

That’s right. Deregulation (as in “de regulation don’t apply to us”) is good for business profitability.

Comment by Housing Analyst
2013-07-25 04:56:29

If you take on mortgage debt at current massively inflated housing prices, you’ll enslave yourself for the rest of your life.

“Debt is bondage.”~ Suze Orman, May 11, 2013

Don’t Be A Debt Donkey®

Comment by azdude
2013-07-25 05:59:13

suze has kept a lot of people broke by not taking any risk.

Comment by Housing Analyst
2013-07-25 06:08:25

Suze has kept alot of peoples capital preserved by not taking stupid chances. ALOT.

Comment by azdude
2013-07-25 06:10:36

opportunity cost my friend. keep preserving so they can inflate the value of your cash to zero.

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Comment by Housing Analyst
2013-07-25 06:14:24

Inflation? There is no inflation my friend.


Comment by azdude
2013-07-25 06:20:40

keep hoarding your cash and you will end up broke.

Comment by Housing Analyst
2013-07-25 06:25:27

Saving hundreds of thousands on dollars in a deflationary spiral results in wealth.

Comment by Strawberry picker
2013-07-25 07:09:40

The only people I’ve ever heard who hoarded cash and ended up broke were people hoarding confederate dollars. Did those who hoarded before or during the depression end up broke? I always thought it was the speculators. But I’m not much a student of financial history.

I’m talking about this country, not some third world irrelevancy.

They may have been able to live a more enjoyable life by spending some of that cash in the mattress rather than being so tight, but they didn’t die broke.

Comment by Whac-A-Bubble™
2013-07-25 20:05:18

“Saving hundreds of thousands of dollars in a deflationary spiral results in wealth.”

If it worked in Japan, why wouldn’t it work in America?

Comment by Amanda Bynes
2013-07-25 06:24:46

I just bought another 1000 shares of FB

Comment by Free Carlos Danger
2013-07-25 08:53:28

Keep on buying. FB shares will keep you out of jail.

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Comment by Beer and Cigar Guy
2013-07-25 09:46:32

Now, THERE is a risk-taker for you. You and that financial genius azdude should hook up. Go to some Robert Kiyosaki seminars together and plan your conquest of the world. You can help him write his next book, ‘Bankrupt Dad-Broke Dad’.

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Comment by United States of Speculative Bubbles
2013-07-25 12:26:43

You don’t even have enough money for cab fare, you liar.

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Comment by Amanda Bynes
2013-07-25 13:04:59

My FB shares jumped 30% today

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Comment by Whac-A-Bubble™
2013-07-25 20:06:59

Keep buying FB until you ARE a FB.

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Comment by AmazingRuss
2013-07-25 12:24:53

I take risk, but on my own abilities and ventures. That way I know I’m not being fed a line of BS about what the risks actually are. When you start to think you should receive money because you have money, you start entering the danger zone.

Invest in doing something useful that people will pay for. This helps everybody.

Comment by 2banana
2013-07-25 04:56:56

Hope and change

Can a food stamp country afford to buy houses?


For Every Job Created by Obama, 2 Americans Enroll in Food Stamps
Townhall.com | July 24, 2013 | Heather Ginsberg

In his press conference on Monday, Jay Carney said the Obama administration has pulled the nation out of the “Great Recession” with the creation of 7.2 million private sector jobs. But there are a few things that Mr. Carney forgot to mention along with this statistic.

Since February of 2009, the first full month of Obama’s presidency, 9.5 million Americans have dropped out of the labor force. Nearly 90 million Americans are not working today!

That means that 1.3 Americans have dropped out of the labor force for every one job the administration claims to have created.

There are 15 million more Americans on food stamps today than when Obama assumed office.

At the end of January 2009, 32,204,859 Americans received aid from the Supplemental Nutrition

Assistance Program. As of April 2013, there were 47,548,694 Americans on food stamps.

That means that more than two Americans have been added to the food stamp rolls for every one job the administration says it has created.

Comment by inside the panopticon
2013-07-25 06:18:53

32 million on food stamps at the end of gwb’s two terms?

mission accomplished

Comment by (Neo-) Jetfixr
2013-07-25 11:32:37

2fruit is confusing symptoms with the disease again.

Comment by Hi-Z
2013-07-25 11:36:23

It took the entire life of the food stamp system to get to 32 million recipients. During Obama’s term (so far) this number has increased by 50%! Mission still not accomplished as he has 3 more years.

Comment by ahansen
2013-07-25 12:04:06

The Food Stamp (SNAP) program cost $71.8B in 2011. The National Intelligence Program cost us $78.6B.

Comment by Hi-Z
2013-07-25 12:12:45

I am for cutting both by 50%!

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Comment by Whac-A-Bubble™
2013-07-25 20:08:05

“For Every Job Created by Obama, 2 Americans Enroll in Food Stamps”

Enrolling in food stamps should help free up money for a downpayment on a first home.

Comment by goon squad
2013-07-25 04:57:29

Some FB complaints about Nationstar Mortgage:


Comment by Dirk Diggler
Comment by Dirk Diggler
2013-07-25 06:36:47

No seminar, no real estate.

Comment by 2banana
2013-07-25 05:03:00

Only bigger and bigger government can save us and rebuild America and create jobs…


How Detroit Almost Killed My Business
American Thinker | July 25, 2013 | Don Wilkie

Of all the depressing facts about the once great City of Detroit, this to me is the most upsetting: In 1950, there were about 296,000 manufacturing jobs in Detroit. Today, there are less than 27,000.

Government — federal, state, and local — made this happen. I know this from experience. Government corrupted the Detroit work force. That corruption drove away my company too.

Until 1984, I was a business owner in the city, employing about 20. I moved my business 60 miles away. I didn’t want to leave, but I was, in effect, forced to.

Many think that crime spurred the exodus of business out of Detroit. Not in my case. To combat crime we would build a stronger “fort.” We called it “fort building” because if my neighbor put heavy wire screen on his windows, the thieves would break into my shop. If I bricked up my windows in response, my neighbor might be broken into. This escalated to the point where many businesses eventually put fencing topped with barbed wire around their buildings. Still, although “fort building” was expensive, it was far cheaper than moving.

Detroit’s abysmal educational system did not drive me away either. As it happens, my particular business did not require highly educated people. So I could hire high school graduates not literate enough to fill out an application form.

What really killed Detroit and what drove me away was the government deciding it knew how the market should operate better than the market did. The market operates on a simple concept, “An honest day’s pay for an honest day’s work.” If an employee doesn’t think he is being paid enough, he can leave. If an employer is unhappy with an employee’s performance he can fire him.

Well-meaning government programs such as Unemployment Insurance, Workman’s Compensation and Wrongful Discharge (i.e. age discrimination, sex discrimination, racial discrimination etc.), that were meant to help and protect employees turned this market concept on its head. In Detroit, hiring someone became the worst thing an employer could do, and being fired became one of the best days in an employee’s life. Allow me to explain.

As mentioned earlier, when I left Detroit I had 20 employees. But, 10 years earlier I had 5 employees. As the business grew I had to hire more people. As it turned out, to get one good employee, I had to hire about 8. So to get an additional 15 people, I had to hire over ten years approximately 120 people. This is when doing business in Detroit really started to get expensive.

When an employee left my employ, whether by quitting or being fired, they immediately went to the Unemployment Office where they were given unemployment payments. Employers such as me went to great lengths to make sure that if someone was fired it was for a good documentable reason, in an effort to avoid having to pay for unemployment. In practice, that didn’t matter too much. The likelihood that the State would grant benefits was extremely high, maybe 80%. If you protested you had to appear before a state “referee,” who was, unsurprisingly, very biased in favor of the claimant.

In the financial reports I was mandated to send to the State, it was all too obvious I had not paid nearly enough to cover the costs of the benefits the State paid out. In its wisdom, the State then hit me with a surcharge to cover the costs of the benefits paid to people who the State should never have allowed to get benefits in the first place. My unemployment costs soared.

But as bad as unemployment costs got, they were nothing compared to Workman’s Compensation. Here is the way the game was played: If you were on unemployment it was understood that you were “ready, willing and able” to work. If you were on Workman’s Compensation it meant you were injured and could not work. So, an employee always went for Unemployment benefits first and when they ran out, suddenly discovered that he was injured, usually with a bad back. In Detroit, an employer almost never won a Comp case.

After a period of time, my insurance company put me in what was called the “Assigned Risk” pool. What that meant in practice was that my Workman’s Compensation insurance costs doubled overnight. Every new employee hired became a huge financial burden not in terms of wages but in terms of Unemployment and Workman’s Comp costs.

But perhaps the scariest thing that could happen to an employer was being summoned in front of the Civil Rights Commission, to face charges of “Wrongful Discharge.” Here you had to prove a negative, that you did not violate someone’s rights. This happened to me three times. If the Commission determined you were guilty, which were two out of three for me, the remedy was to pay all of an employee’s wages from the time he was separated from your employ to the time of the Commission’s finding. Since the system moved very slowly, an employer could be faced with paying as much as two years’ salary.

This was enough to get me and hundreds like me out of Detroit. I could build a stronger “fort,” but I couldn’t beat the system. That, however, wasn’t the end of what our government did to Detroit.

The final nail in the coffin came from the Environmental Protection Agency. It happened sometime in the late 1980’s. This was when by EPA decree, almost everyone associated with manufacturing in the City of Detroit, became a criminal. People who had worked honestly for years to pay for their building and property woke up one morning to find that because of the EPA, their property was worthless, or worse. Is it any wonder there are so many abandoned factories?

Comment by azdude
2013-07-25 06:14:42

that is an excellent piece. Everything said is so true. I think that is happening in a city near you also.

Comment by meme watch
2013-07-25 06:27:51

sounds like montana for sure

Comment by non-conformist
2013-07-25 07:08:57

Great article.

Comment by Skroodle
2013-07-25 20:12:42

I like how he moved to another part of Michigan to escape Michigan unemployment taxes.

Comment by (Neo-) Jetfixr
2013-07-25 11:50:58

Liar, liar, pants on fire…..

For starters, just about everything he’s bitching about are FEDERAL offices/programs.

Whether he’s in Detroit, or setting up shop out in BFE, he still has to comply with the regs.

Of course, out in BFE, it’s a lot easier to dump pollution, because nobody is watching, or nobody wants to narc on their buddies, or the local PTB think like he does, and don’t think a little PCB, MEK or TCE in the groundwater is a big deal.

Comment by Hi-Z
2013-07-25 12:21:29

Workers Comp and Unemployment insurance (SUTA) are state requirements except for the FUTA unemployment portion which is dwarfed by the SUTA. Of course, the requirements apply to the whole state, not just in Detroit.

Comment by ahansen
2013-07-25 12:10:43

Imagine having to treat your employees fairly and stop dumping your effluence into the river. Why it’s enough to send a company to China!

Comment by United States of Speculative Bubbles
2013-07-25 23:14:35

This guy sounds like a bitter a-hole who consistently treated his low-skill low-pay employees like crap, and got burned because of it. Good riddance.

Comment by Happy2bHeard
2013-07-25 23:28:07

“As it turned out, to get one good employee, I had to hire about 8.”

Perhaps he should have paid a little more and been a little more selective in his hiring.

Comment by Michael Viking
2013-07-25 05:47:36

Mr. Smithers, I didn’t see your response to this question regarding your post about doctors in the senate and house:

Comment by MightyMike
2013-07-24 16:01:23

Where do you get your information about the Congress? Is it some Fox News website? There’s an MD in the House named Jim McDermott. He’s been in Congress since 1989. He represents the Seattle area - in your own state.


Comment by Downlow Joe from CATO
2013-07-25 08:25:33

I missed Slithers’ comment but there are quite a few MD’s in the House. Andy Harris (Maryland) and Ron Paul (TX) come to mind immediately. In the Senate, there are numerous examples - Barrasso, Coburn, Rand Paul, at least a few others.

Both lawyers and doctors are over-represented in Congress. Doctors are a fraction of 1% of the US population and lawyers are <1 % as well. Yet what % of Congress is lawyers? What % is doctors? Both are significantly more represenated than, say, middle management guys or computer dudes. Alpha personalities occur more frequently in certain professions. It would be interesting to see how our national policies would be different if running for office didn’t require high social status and “vetting” by the big donors. Congress might actually look a little more like America, there might be represenatives who’d managed a retail store or been a computer programmer/software person. Then the system wouldn’t be run for the benefit of the 1%ers.

Comment by Michael Viking
2013-07-25 09:19:01

I missed Slithers’ comment but there are quite a few MD’s in the House.

Sorry, his comment was specifically that there weren’t any that were democrats.

Comment by Happy2bHeard
2013-07-25 23:29:40

McDermott is a Democrat.

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Comment by Michael Viking
2013-07-26 08:35:05

McDermott is a Democrat.

This is exactly the point. Mr. Smithers said there are no democrats. Mighty Mike pointed out a democrat (see and read my original message and link above). I want to hear Mr. Smither’s response to that. I notice he’s disappeared.

Comment by MightyMike
2013-07-25 10:06:40

Congress might actually look a little more like America, there might be represenatives who’d managed a retail store or been a computer programmer/software person. Then the system wouldn’t be run for the benefit of the 1%ers.

I don’t think such a change by itself would have much of an effect. The candidates would still end up going to same people to get the funds to run for office. They would need to adopt positions that appeal to those contributors.

Comment by In Colorado
2013-07-25 14:50:26

And the candidates with any integrity wouldn’t get a dime.

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Comment by non-conformist
2013-07-25 05:57:40

Some obvious differences, but I wonder if Al and Jesse would have jumped on this if the roles were reversed?

The Black George Zimmerman the Media Doesn’t Want You to Know About

July 24, 2013

Did you notice during the George Zimmerman trial how the media kept repeating the salacious question “What if Trayvon Martin had been white?” They acted as if this question was the perfect response to Zimmerman defenders. They pretended that this was a question without a “safe” answer, but in reality, the question had already been answered.

In April of 2009 Mr. Roderick Scott awoke at 3am to the sounds of three young men breaking into cars on his street. He called the police and went down to the street to make sure the young men did not flee before the police arrived. He shouted at the three to “freeze” and told them that the police were coming soon. The three boys stood before the big man obviously considering what they should do.

That’s when Christopher Cervini (17) rushed at Mr. Scott uttering “I’ll get you” or “I’ll get him.” Roderick Scott fired twice, killing the teenager. The trial that followed was again a case of prosecutorial overreach, as they tried to charge Mr. Scott with manslaughter. Fortunately for Mr. Scott, a jury of his peers agreed with him that he did only what was needed to protect himself.

Afterwards the prosecutor opined, “I just hope it’s not a message to this community… that you have the right to shoot an unarmed 17-year-old kid for breaking into a car.” The problem is that Mr. Scott did not shoot young Christopher Cervini for breaking into his car, but for attacking him. While the Cervini family may now be in much pain over the loss of their son, he brought himself to his tragic end through a series of terrible choices. Roderick Scott had every right to protect himself; he did what he should have… and a jury of his peers agreed.

Oh, and Roderick Scott was a 42 year old black man about the size of an NFL linebacker. Christopher Cervini was a skinny, 17 year old white kid with a little bit of marijuana in his system. Scott was justified in the killing of the younger man not because of the crime that Cervini had committed, but because Scott rightfully feared for his own safety.

There was no “white uproar” over the shooting of a young white man at the hands of a black man with a “hero-complex.” The NAACP didn’t show up to argue that the shooter should be jailed, or that the Justice Department should pursue charges of civil rights violations against the man for killing Cervini. Jesse Jackson, Al Shartpon, and all of the other race hate baiters stayed home for the trial. The trial was treated as a tragic situation that a young man brought on himself by turning to violence.

Which is exactly how the George Zimmerman case should have been treated. The next time someone tells you, “What if…?” You can tell them it already happened, and the outcome was exactly the same… minus the racial tension.

http://www.infowars.com/say-hello-to-roderick-scott-the-anti-george-zimmerman/ - 66k -

Updated 12/18/2009 10:41 PM
Jury Finds Roderick Scott Not Guilty
By: Mike Hedeen

Jury Finds Roderick Scott Not Guilty - Rochester
http://rochester.ynn.com/content/top_stories/490926/jury-finds-roderick-scott-not-guilty/ - 73k - Cached - Similar pages
Dec 18, 2009 …

Comment by jose canusi
2013-07-25 06:10:27

They fear “blowback”. He should have let them bar-b-que in their gas guzzling SUV.


Comment by educated by msnbc
2013-07-25 06:13:42

trayvon martin was skipping through a meadow with his skittles and iced tea looking forward to his 11th birthday when klansman george zimmerman stalked him and shot him in the face point blank because he hates black people, especially cherubic little black children.

Comment by jose canusi
2013-07-25 06:34:15

The whole thing is a disgusting farce.

Comment by educated by msnbc
2013-07-25 06:56:57

your racism is a disgusting farce.

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Comment by jose canusi
2013-07-25 09:39:28

LOL, Christ Matthews has already apologized for our sins.

Comment by jose canusi
2013-07-25 10:54:50

Speaking of racism, a bunch of American Idol contestants are suing the show and Fox.


Timing is everything!

Comment by non-conformist
2013-07-25 06:33:31

“How can this happen to a beautiful, sweet child like that?” asked Cervini’s aunt Carol Cervini. “All he wanted to do was go home. And then for them to say, he was saying, ‘Please don’t kill me. I’m just a kid,’ and he just kept on shooting him.”

Jury Finds Roderick Scott Not Guilty - Rochester

Comment by Reparations NOW!
2013-07-25 07:25:47

“House Minority Leader Nancy Pelosi, D-Calif., announced “A Conversation on Race and Justice” on July 30 on Capitol Hill.

According to a Pelosi aide, the hearing will not focus solely on the trial, which acquitted Zimmerman of murder charges in the shooting death of Florida teenager Trayvon Martin, but will be a “broader conversation.”


Comment by MightyMike
2013-07-25 09:44:21

There was no “white uproar” over the shooting of a young white man at the hands of a black man with a “hero-complex.” The NAACP didn’t show up to argue that the shooter should be jailed

Which is exactly how the George Zimmerman case should have been treated. The next time someone tells you, “What if…?” You can tell them it already happened, and the outcome was exactly the same… minus the racial tension.

You must not have followed the Zimmerman case closely. The process was different for him. At first he was questioned for six hours and then released. It was only after the protests that charges were files and a trial held.

From what you posted about this black guy in Rochester, no protests were necessary. The guy was arrested and the prosecutors brought charges without any outside pressure.

Comment by spook
2013-07-25 13:06:55

The guy was arrested and the prosecutors brought charges without any outside pressure.

Thank you.

An interesting thought experiment I do with the Zimmerman trial is to keep everything we know about the event the same, but replace Trayvon with a “cut out” attached to a “valve” which allows you to dial in “more Trayvon” or dial out “less Trayvon”

The experiment is designed to reveal what characteristics “the cut out” would need to have in order for a “Zimmerman defense” (be home 6 hours after you shoot and kill a person; no charges…) to be successful/unsuccessful.

For example, the “dial” for the cut out would start on the left with -10 being John Allen Mohammed (DCsniper); Trayvon would be about a -3.

Zero would equal “neutral.”

To the right on the dial would be higher class people (more powerful) +3 would be Erkle, + 7 would be Niel Degrasse Tyson, +10 would be Miss America…

I know this is a clumsy description, but Im just trying to point out that a “Zimmerman statement” only works when you shoot and kill certain people.

The question is, what are the characteristics of those people?

Comment by MightyMike
2013-07-25 14:21:20

That reminds me of this article that I read yesterday. The writer is a law professor, so he the same class status as Neil Degrasse Tyson. The part where he lists out all of his degrees and the universites where he got them is funny and tragic at the same time. And the quote from Malcom X is unfortunately describes the situation perfectly.

Racially Profiled in Palm Beach

On a late-night bike ride, a law professor finds that neither his polite demeanor nor academic pedigree seems to outweigh the color of his skin.


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Comment by aNYCdj
2013-07-25 16:34:11

I’m not wearing a helmet. My rental bike didn’t have one to fit my cartoonishly large dredlocked head.

So you were profiled for no helmet…not race…

Comment by MightyMike
2013-07-25 18:01:43

That sounds highly unlikely. I can’t imagine that there’s any town in Florida where the police stop cyclists without helmets.

Comment by spook
2013-07-25 20:05:52

Obama helmets?

Comment by alpha-sloth
2013-07-25 20:27:13

So you were profiled for no helmet…not race…

lol. From the article:

“Race is America’s Voldemort: That-Which-Must-Not-Be-Named. Even when discrimination’s role in an event is obvious, there has to be another reason.”

Comment by Ben Jones
2013-07-25 20:39:48

‘Even when discrimination’s role in an event is obvious, there has to be another reason’

Like when the people you vote for use drones to kill innocent brown people? Please quit lecturing us on racism, you racist fascist hypocrite.

Comment by alpha-sloth
2013-07-26 05:33:47

Far more babies, of all colors, would die if America withdrew from the world as you wish we would, than if we continue our present actions.

Who would be the baby killer then?

Comment by Michael Viking
2013-07-26 08:38:06

Far more babies, of all colors, would die if America withdrew from the world as you wish we would, than if we continue our present actions.

Who would be the baby killer then?

This is laughable logic. I could explain it to you, but unfortunately I can’t understand it for you.

Tell me this, though: were you out defending and liking this sort of behavior when Bush did it? Or were you hypocritical and against it? Look hard into a mirror. Then look some more.

Comment by alpha-sloth
2013-07-26 14:15:58

were you out defending and liking this sort of behavior when Bush did it?

Some of his actions I supported, except for the Iraq thing, and the too early pivot from Afghanistan it caused.

And I supported bombing the Serbs, which promptly ended that war, thus saving many babies.

Look hard into a mirror. Then look some more.

Ok, I just did. Damn, I’m good looking!

Comment by AbsoluteBeginner
2013-07-25 20:27:24

‘ +3 would be Erkle’


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Comment by countrywide mortgage
2013-07-25 06:08:12

hope and change

‘cleveland was hit especially hard by the foreclosure crisis, and its legacy of abandoned homes has frayed neighborhoods, leaving behind those who cannot afford to get out, while providing shelter to people on the social margins. areas with many vacant and abandoned homes are breeding grounds for crime, local officials said.

cleveland and surrounding cuyahoga county receive nearly 20 percent of the population leaving state prisons, with many returning to neighborhoods on the east side’


Comment by Housing Analyst
2013-07-25 06:12:21

Denver Rental Rates Sink 3% and Falling


Oh dear.

Comment by Wackford Squeers
2013-07-25 06:42:04

Cool story bro.

Except your numbers are bogus. Rents are going up, up, up and there are no vacancies. Rent now or be priced out forever!

Comment by Housing Analyst
2013-07-25 06:43:21

Take it up with CO realturds and zillow.

Comment by Wackford Squeers
2013-07-25 07:03:52

You are 2,000 miles away from here and don’t know what you’re talking about. Zillow is bogus. Rents are going up up up and are never coming back down.

I was in Vail last weekend looking for $5,000 lots for you to build on. I couldn’t find one in Lionshead Village so I looked in East Vail and found one right on the golf course, except they were asking $5,500 for the lot.

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Comment by Housing Analyst
2013-07-25 07:18:53

Take it up with Zillow and CO realtards and get over it and get on with your life.

Comment by Housing Analyst
2013-07-25 06:18:00

“With 25 million excess, empty and defaulted houses and another 35 million houses to be vacated as boomers die off, what do you think is going to happen to housing prices?”

We have a pretty good notion.

Comment by Housing Analyst
Comment by Rental Watch
2013-07-25 17:07:57

“Research firm DataQuick says Tuesday that lenders filed more than 25,700 notices of default from April to June. That was up 38.7 percent from the previous quarter.

However, the figure is down nearly 53 percent from the second quarter of last year and it’s the second-lowest level in seven years.”

But according to you, the Homeowner’s Bill of Rights turned CA into a judicial state, and it was going to take a long time for that process to get restarted. Filing an NOD is part of the NON-judicial process, so it seems like the non-judicial process is proceeding just fine.

And based on the fact that the filings are still down year on year, the increase is probably more based on the fact that banks slowed down to make sure they were in compliance with the Homeowner Bill of Rights in the first quarter (thus artificially, and temporarily decreasing the number of foreclosure filings last quarter), than a reversal in the multi-year trend of fewer and fewer foreclosures.

Comment by Housing Analyst
2013-07-25 17:21:41

You’re an established LIAR RW aka Rental Watch.

Comment by non-conformist
2013-07-25 06:48:34

West Palm Beach real estate company marketing $18.3 million bulk sale

July 10th, 2013 by Kim Miller

Real Estate Asset Disposition Corp. is marketing a bulk auction of South Florida single-family homes worth a total of $18.3 million including dozens of Palm Beach County properties.

The company, which has its main office based in West Palm Beach, announced the sale Tuesday with registration beginning immediately at the company’s website, http://www.READCorpBulk.com.

A total of 123 homes are up for sale in seven different pools. Three of the pools are in Palm Beach County with homes in West Palm Beach, Palm Beach Gardens and Riviera Beach. Other areas include Jacksonville, Fort Lauderdale and Miami. Asking prices range from $1.9 million to more than $4 million.

The homes are bank-owned or previously purchased by investors and are marketed as rent-ready, meaning they’ve undergone “quality renovations and will generate immediate predictable cash flow.”

The majority of the homes are currently rented, including by Section 8 tenants who offer guaranteed government payments.

Company owner Jim Banford turned to bulk sales last year when the inventory of repossessed homes began to dry up.

Although the pool of bank-owned homes for sale might increase as lenders move properties through the foreclosure process, Banford said last year that he couldn’t stand by idly waiting for that to happen.

“This is looking at a new twist to keep things going,” he said

Comment by Waterloo Sunset
2013-07-25 06:51:47

“The median sale price of all co-ops, condominiums and single-family homes in Hoboken … jumped almost 11 percent in the year through June to $516,000 … That surpassed the $510,000 median in June 2006, near the peak of the U.S. housing market.

“It isn’t a bubble, this is true demand,” said (Lori) Turoff, who works for Coldwell Banker. “Hoboken is a wonderful community to raise a family, and young people are willing to pay for it. It’s still a great deal compared to New York City.”


Comment by walt
2013-07-25 06:58:16

“There are potential buyers out there who can’t get a mortgage, so they’re being left out,” Sambrotto said. “But housing is still a good investment, so those with cash are taking advantage of it.”


One of the nations big investors bought a house on my street two months ago, the lawn is now two feet high and the pool looks like a swamp!

Comment by Born In Kenya
2013-07-25 07:11:17

“A fledgling movement for better pay for fast-food and other poorly paid employees is hoping for a major boost next week when thousands of low-wage workers are expected to walk off their jobs in seven cities across the country.

On Monday, workers are planning to stage one-day strikes at some of the nation’s best known and most profitable fast-food restaurants, including KFC, Wendy’s, Burger King and McDonalds.

The protesters are demanding a living wage of $15 an hour.”


Comment by In Colorado
2013-07-25 08:01:57

Sounds like the Mexodus is about to get jump started.

Comment by Blue Skye
2013-07-25 08:13:54

“KFC, Wendy’s, Burger King and McDonalds”

I am sure I would never notice this.

Comment by Mr. Know It All
2013-07-25 08:27:28

My liberal betters don’t want anyone to eat fast food because it is eeeevil. Michelle O and the broccoli fascists want to take all the flavor and joy out of life. I took my kids to McDonalds last weekend and we had to wait 45 minutes just to order our food.

Comment by tresho
2013-07-25 08:29:04

we had to wait 45 minutes just to order our food.
Next time, show up after the place opens & not 45 minutes beforehand :)

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Comment by Blue Skye
2013-07-25 09:28:43

They say your body becomes accustomed to this kind of food. I personally have never had the fortitude to cross that threshold. Doesn’t make me aloof, I just can’t do them and feel well.

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Comment by spook
2013-07-25 20:11:26

This is kinda gross, but McDonald’s is the only food where my farts smell exactly like the food.

There is something very wrong about that phenomenon.

Comment by Whac-A-Bubble™
2013-07-25 07:13:47

San Onofre shutdown largely to blame locally, but wholesale rates up across country in first half of 2013
By Morgan Lee
12:01 a.m. July 24, 2013 Updated
5:16 p.m. July 23, 2013

The nuclear shutdown at San Onofre is partially to blame for a 59 percent increase in wholesale electricity prices for California in the first half of the year, the Energy Information Administration said Tuesday.

The statistical arm of the U.S. Department of Energy found that wholesale electricity prices rose across the country during the first six months of 2013 over the same period last year.

Prices in New England were the highest, largely because of pipeline constraints that limited the delivery of natural gas.

In California, the “increase was largely the result of the continued outage of the San Onofre Nuclear Generating Station,” according to the agency’s Today in Energy briefing. “This factor also caused a large and unusual separation in power prices between the northern and southern parts of the state’s electric system.”

Comment by snowgirl
2013-07-25 07:49:04

I have some advice for Californians looking to flee spiking costs of energy. Don’t go from frying pan to fire by landing in a National Grid controlled territory. If you conserve and don’t spend a certain amount, you will be charged a fee to bring the bill back up “so they don’t lose money”. Delivery fees are often equal to or even more than the cost of the natural gas.

Comment by Bluestar
2013-07-25 11:55:27

They use a different trick in Texas. When you sign up for a contract at .09 cents a KWH the fine print says you only get that price if you use at least 2000 KWH a month otherwise the rate jumps to .11-.15 cents. Latest gimmick is “Free Nights” or “Free Weekends” where they try to get you to shift all your heavy electrical usage to off peak times but in return they charge sky-high rates for the rest of the day/week. This new “Free” program is because they have a lot of excess wind electricity at night. I did the math and unless you are running a grow house at night I doubt it will save you any money at the end of the month.

Comment by oxide
2013-07-25 15:35:55

What if you have a Leaf or a Volt?

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Comment by tresho
2013-07-25 08:27:44

But the impact of wholesale prices on consumers is hard to estimate precisely, especially under complex residential rates
However reporting this “impact” is very easy when the residential rate is NEVER mentioned in any news article on this topic.

Comment by snowgirl
2013-07-25 07:17:10

Mortgage Debt Jubilee ideas again being floated. Watch Michael Keen discuss how it would be done at 23 minutes in. He mentions if you’re debt-free you get a “cash injection” instead. It kind of falls apart when the interviewer brings up moral hazard and bank oversight. Obviously he never noticed we’re in this mess because we totally lost control of oversight and repercussions.


Comment by aNYCdj
2013-07-25 10:27:16

Considering the $85 billion a month the fed is injecting into the system each month and none of it gets down to the people who will go out and spend it.

Maybe my idea of injecting cash by paying down everyone credit card by $3000, would have been a far cheaper and more productive use of money

$85 bill divided by say 100 mill households equals $850 per month…

Comment by Whac-A-Bubble™
2013-07-25 20:21:19

“Maybe my idea of injecting cash by paying down everyone credit card by $3000, …”

Something of this nature happened under Bush during the waning days of Alan Greenspan’s tenure at the Fed, but without the requirement for households to owe $3K on a credit card; I believe it was a $2K tax credit.

We have an extra viola bow in my wife’s viola case to show for it.

Comment by aNYCdj
2013-07-25 21:07:50
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Comment by Born In Kenya
2013-07-25 07:18:25


“The pessimism that has seized the nation is not a new development. For the overwhelming majority of the past 20 years, most Americans have expressed the belief that the country is on the wrong track.”


Comment by Whac-A-Bubble™
2013-07-25 07:18:53

Are you missing out on the stock market boom?

Bond Investors Turn to Cash
Investors are cashing out of bonds but remain hesitant to plunge into stocks

Investors are cashing out of bonds but remain hesitant to plunge into stocks, preferring instead to buy money-market mutual funds despite their low returns. The surprise move highlights persistent investor anxiety with equities even as stock indexes reach new highs.

Investors withdrew an estimated $43 billion from taxable bond mutual funds last month, the largest-ever monthly outflow, according to the Investment Company Institute. The debt-market swoon was fueled by worries that the Federal Reserve was softening its commitment to keeping interest rates low. Rising interest rates mean lower bond prices.

Many observers expected to see those flows turn to funds tracking U.S. stocks. But in a twist, the main beneficiary of the rush out of bonds has been money-market funds, which are cash-like investments that appeal to safety-minded investors.

Assets in these portfolios increased for the fourth week in a row in the week ended July 17, rising $8.5 billion to $2.6 trillion, ICI data show. That left money-market funds, which pay barely more than simply holding dollars, with the most cash since early April.

The shift highlights the uncertain investing outlook at a time of near record-low interest rates and tepid economic growth, along with the risk aversion that has sent money into bond funds following the stock-market plunge of 2008.

“I suspect that most bond money isn’t ready to accept the fact that they are better off in equities,” said Julius Ridgway, investment adviser at Medley Brown, an investment-advisory firm in Jackson, Miss.

Mr. Ridgway said that his clients still talk about sharp losses suffered in stocks in the throes of the financial crisis.

“Bond investors are much less tolerant of the potential for negative returns, and there’s still the memory of a 30% decline [in stocks] in a year,” he said.

To be sure, many investors expect to see the funds head into the stock market eventually, as those with large cash holdings seek out better returns. These people say the move to cash is merely a pause before investors help push the Dow Jones Industrial Average further into record territory.

Investors Develop a Fear of Heights
Asian Shares Fall

Comment by Rental Watch
2013-07-25 17:15:18

What is more likely to be the precursor to a bigger crash?

A bull market where everyone has their money in the market and no one feels that it can go down; or

A bull market where there is still lots of cash on the sidelines and frequent prognostications about the pending collapse in the market?

Comment by Whac-A-Bubble™
2013-07-25 20:24:16

I guess it depends on what happens to interest rates. I’d say with a rate spike to high enough levels to attract money out of stocks back into bonds, how many currently have their money in the market would become a non-issue.

Comment by Rental Watch
2013-07-25 23:15:07

The big question is what precipitates that rise in rates.

Stronger growth leading to QE3 being dialed back with have one outcome.

Bond market vigilantes beating the Fed will have a different outcome.

Inflation forcing the Fed’s hand even with a weak economy would have yet another result.

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Comment by Whac-A-Bubble™
2013-07-25 07:25:03

Aside from a dearth of jobs and $1 trillion in student loan debt, what keeps Generation Y out of the housing market?

July 25, 2013, 7:30 a.m. EDT
The kids aren’t buying homes
Generation Y may be holding back the housing recovery
By Quentin Fottrell

Millions of young Americans are unemployed or underemployed, living with roommates or at home with Mom and Dad — instead of buying homes of their own, a new study found. And it isn’t just the economy that is holding them back, experts say: Many were also spooked by the property crash of 2008.

The number of “missing households” — that is, Americans who would be owning or renting a home now if prerecession economic trends had continued — hit 2.4 million as of March, according to an analysis of raw monthly government data by real-estate marketplace Trulia. That is down slightly from its peak of 2.6 million in 2011, but up 100,000 from the year prior. And 18- to 34-year-olds account for more than half of the missing households, according to the data. “Household formation is the most important indicator of the housing recovery that isn’t making great strides,” says Trulia chief economist Jed Kolko, who did the analysis.

Parents and their young-adult kids are closer in their tastes and habits these days, but what’s increasingly lost are the traditional milestones of adulthood.

Before the Great Recession, about 1.1 million new households were added annually in the U.S., Kolko says. However, from the first quarter of 2008 to the first quarter of 2011, only 450,000 new households per year were created. That, he says, contributed to lower demand for homes, and annual construction starts dropped during this period from a norm of 1.4 million to below 600,000. The 18- to 34-year-olds are a key age group for housing demand, he says: “They’ll always make up a significant share of buyers, even though they’re now less likely to be buying, renting, or living on their own than they were before the recession.”

Also see: Why Generation Y fears the stock market

Comment by Mr. Know It All
2013-07-25 07:39:41

They should have majored in STEM.

Everybody should have majored in STEM.

Anybody who didn’t major in STEM doesn’t even deserve to live. All those non-STEM majors should just kill themselves now, f*ing loosers!

Comment by Free Carlos Danger
2013-07-25 08:41:59


Seriously though, if you don’t have a law degree from Ivy and work as a wise-guy for one of the families, you are a looser.

Comment by mathguy
2013-07-25 16:59:23

How about alternatively, not go 60-100k into debt getting a degree which won’t get you a job paying enough to cover your loans… ?

Oh sorry.. you probably didn’t get a STEM degree and don’t have the logic skills to reason it out in the first place…

Comment by Neuromance
2013-07-25 08:46:21

Congress is too busy fundraising, and can’t be arsed to waste time on public policy which might run contrary to their paymasters’ desires.

Comment by rms
2013-07-25 17:26:23

“Parents and their young-adult kids are closer in their tastes and habits these days, but what’s increasingly lost are the traditional milestones of adulthood.”

Like squeezing out a couple of puppies?

Comment by Housing Analyst
2013-07-25 07:28:39


What was that?!

You know that house you made the mistake of buying? Well the value of it just fell through the floor leaving a smoldering moon-crater.

Beware reading public. Don’t be a sucker like the debt-junkies that attempt to rationalize their horrible decision. Beware.


Comment by Free Carlos Danger
2013-07-25 07:34:11

Is that the missus and little HA?

Comment by Housing Analyst
2013-07-25 07:42:18

It’s the best photo I could find of a smoldering moon crater with an audience looking and laughing at it. :mrgreen:

Comment by Beer and Cigar Guy
2013-07-25 10:04:33

If that smoke-filled mudhole is in California, then it is worth a bazillion dollars and by tomorrow, it will be worth 50 bazillion. Everyone wants to live in California. Its got everything; pollution, high population densities, crime, oppressive and clueless socialist government, incredibly high taxes, incredibly high cost of living, traffic congestion, phenomenal illegal immigration problems, earthquakes, droughts, forest fires, mudslides and an untenable budget deficit. Yup, everyone wants to live here- just ask any realtor from California. They’ll tell you.

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Comment by Pete
2013-07-25 11:21:29

“and an untenable budget deficit.”

“California budget surplus creates unlikely dilemma”

The amount is a matter of debate, but by any measure significant: between $1.2 billion, projected by Governor Jerry Brown, and $4.4 billion, the estimate of the Legislature’s independent financial analyst. The surplus comes barely three years after the state was facing a deficit of close to $60 billion.


Yes, this creates new problems. But right now, your statement about California’s deficit is incorrect.

Comment by Hi-Z
2013-07-25 12:03:54

“Yes, this creates new problems. But right now, your statement about California’s deficit is incorrect.”

Of course, the calculations exclude a few minor items such as $10 billion owed to Federal government for unemployment insurance debt, $150 billion in currently estimated unfunded pension obligations.

Long-term debt projections show that while California is temporarily back in the black, they are still on the highway to fiscal hell.

Comment by Pete
2013-07-25 12:21:05

Correct, Hi-Z, but you have to start somewhere. Balancing the budget here was once thought impossible. Just having done that creates a sense of confidence that maybe we can slowly but successfully tackle the remaining fiscal issues. Yes, everyone here knows it’s a tall order.

Comment by Hi-Z
2013-07-25 12:26:09

I do agree with what you said.
I would be glad if at the Federal level we “start somewhere”.

Comment by Beer and Cigar Guy
2013-07-25 12:30:37

Yes, I have a high level of confidence that things are just great- “right now”. What was it before the Accounting Gymnastics Championships were held? As a matter of fact, it is SO great right now that they can’t even figure it out! ‘Its either like, 1 billion $$ or 4 billion $$ or maybe somewhere in between there, but either way we are sure that we’re cool. I mean, one number is like 4 times as big as the other number and only one of them can be accurate, but we don’t know what the real number is and we are not sure how we can figure it out, but we are sure its gonna be a good number.’ Do you think they will still have a surplus as Bubble 2.0 collapses? Has Cali now made whole all businesses who were previously “paid” with warrants? Are they all current on their accounts? How is CALPERS doing- it is fully funded now? Yes, on paper California is in excellent shape- “right now”. Technically, so is the EU- “right now”.

Comment by Pete
2013-07-25 13:31:16

As I say, these are tough ones, but at least we have a fighting chance. And when bubble 2 collapses it won’t matter as much as it might seem. While median home prices have gone up, not many have been sold at this new level that would rake in the property taxes. The vast majority of prop. tax revenue coming in is arriving via very low tax assessments.

Comment by inchbyinch
2013-07-25 15:40:09

It took Ventura County (So Ca) 9 months to send us our supp. tax bill. They even sent our early full payment back, saying they can’t show a credit on our acct, since they had not billed us yet. Antiquated system or law? (not sure)

Pete is right, homeowners are staying put. The weird thing is the slow processing time for property taxes. I guess some layoffs happened?

Comment by rms
2013-07-25 17:31:35

“The weird thing is the slow processing time for property taxes. I guess some layoffs happened?”

+1 Likely the furloughs that cut roughly 20%, IIRC.

Comment by Pete
2013-07-25 18:50:14

“I would be glad if at the Federal level we “start somewhere”.”

Me too, and we will. Question is, will it be after it’s too late?

Comment by Housing Analyst
2013-07-25 07:31:19

“Falling housing prices to dramatically lower and more affordable levels is bullish optimism and good for the economy.”

Comment by Si Si Puede
2013-07-25 07:32:18

“The 93-year-old woman who police said was beaten and raped in her own home earlier this week has died.

Sergio Perez, 19, who faces charges in connection with the crime, is being held without bond in Douglas County jail.

Prosecutors said Perez, who doesn’t speak English, beat and sexually assaulted the woman in her home Sunday.

Prosecutors said Perez is not a legal resident of the United States. The victim’s family said a detective told them he has been in the country for about four months.”


Comment by Housing Analyst
2013-07-25 07:32:25

“The Housing Market Recovery Is ‘A Complete Hoax’”


Afterall, a “housing recovery” is dramatically lower prices by definition.

Comment by snowgirl
2013-07-25 07:36:47

How quickly they forget….

American Banker

Americans Gambling on Rates with Most ARMs Since ‘08

“In the second year of the U.S. housing recovery, the loans that helped trigger the housing bust are making a comeback. Applications in late June rose to the highest level since 2008 after the Federal Reserve sent fixed rates surging by signaling it may curtail bond buying credited with pushing borrowing costs to the cheapest on record. The average 30-year fixed-rate mortgage jumped 1.2 percentage points in mid-July from May to the highest level in two years, adding about $200 a month to payments on a $300,000 mortgage.”


Also in the RT video I linked to earlier, they talk about someone who worked in the subprime banking sector simply going private and continuing to offer interest only loans again. I miss our hard money lender who used to post here. He let us know how things were going in his sector which sounded like mostly mobile home park buyers.

Comment by bink
2013-07-25 15:59:21

If you’re referring to az_lender, I believe that poster is a she.

Comment by non-conformist
2013-07-25 07:43:08

Weiner won’t pull out

Weiner Refuses To Pull Out Of Mayoral Race In Admission Sexting Continued After Resignation

Submitted by Tyler Durden on 07/23/2013 18:37 -0400

New York CityRealityWhite House

Typically we wouldn’t note such tabloid gutter trash as the pilot episode to the upcoming reality show “In The Carlos Danger Zone with the Weiners”, but since what is going on in the farce that is NYC’s mayoral race is just another analogy for America’s broken market, broken politics, broken morals and, ultimately, broken society, this deserves at least a few words, so here they are. Anthony Weiner resigned from Congress after being exposed for having a “sexting problem.” As it turns out the Democratic mayoral candidate’s sexting problem never went away, and continued well after said resignation with at least one young female, with whom he used the alias “Carlos Danger” and likely more. We learn all this because despite simple logic, Weiner decided to not only run for mayor but following today’s revelations, will continue his run for mayor as he announced at a just concluded press conference. And the most inexplicable twist in all this: his wife was there beside him, supporting him and urging him on in the mayoral race.

http://www.zerohedge.com/news/2013-07-23/weiner-refuses-pull-out-mayoral-race-admission-sexting-continued-after-resignation - 118k

Comment by Free Carlos Danger
2013-07-25 08:35:39

his wife was there beside him

Why do these supposedly non-stepford wives stand by their men?

Comment by Dave of the North
2013-07-25 08:53:40

She used to work for Hilary Clinton, so she learned from the expert…

Comment by Free Carlos Danger
2013-07-25 08:46:36

but since what is going on in the farce that is NYC’s mayoral race is just another analogy for America’s broken market, broken politics, broken morals and, ultimately, broken society,

That’s why I love zerohedge. They have some of best commentary in the web today.

Comment by spook
2013-07-25 09:17:21

zerohedge has suffered in quality the past few years.

The comments used to be interesting and informative. But now that everyone tries to be funny and ironic, the comment section is often just very annoying; even when the topic is interesting.

Comment by Neuromance
2013-07-25 08:49:52

The Weiner cannot be contained! It will always thrust forward and reach for the stars!

But seriously… guy’s too impulsive and stupid to keep pics of his dong out of the media. And he’s trusted to lead the city? New York will get whatever it deserves I suppose. They seem to go through cycles of decay and rebirth.

Comment by Whac-A-Bubble™
2013-07-25 20:33:24

“Weiner won’t pull out”

Is Weiner on the rise again?

Comment by rms
2013-07-25 23:40:44

“Weiner won’t pull out”

Weiner’s father should have pulled out.

Comment by Neuromance
2013-07-25 08:55:14

Ol’ Fabrice Tourre, who gave us some insight into “financial innovation” and how Wall Street actually works, is facing the SEC. The trial should be a brief farce.

Ex-Goldman Sachs trader, SEC spar in civil trial over 2007 mortgage deal
By Dina El Boghdady, Published: July 24
Washington Post

NEW YORK — At 28, Fabrice Tourre was the “deal captain” at Goldman Sachs who helped cobble together and market a complex mortgage product that raked in $1 billion for a prominent hedge fund client.

But other investors lost about that much on the 2007 deal, and the Securities and Exchange Commission, in one of its highest-profile court cases emanating from the financial crisis, alleges that Tourre is partly to blame because he lured those investors into an arrangement that was secretly designed to fail.


Comment by Whac-A-Bubble™
2013-07-25 20:34:25

Goldman settled for a minuscule fraction of the value of the scam.

Comment by Whac-A-Bubble™
2013-07-25 23:42:53

Suddenly after staying out of the limelight for a few years, Goldman is showing up in MSM stories again. It must be about time for another crash.

Goldman has proven particularly adept in the aluminum price fixing scam of wasting resources in a completely useless way to drive up prices. Please, dear Gawd, forgive my sin; this is a private corporation, and hence everything they do is more efficient and beneficial than government.

If this inventory withholding scam works to prop up aluminum prices which American consumers pay, I wonder if it would also work on housing?

Goldman Sachs’ “Warehouse Shuffle” Just Cost You $5 Billion
Commodities / Market Manipulation
Jul 25, 2013 - 05:27 PM GMT

David Zeiler writes: It’s just another game for Goldman Sachs Group (NYSE: GS) - a “warehouse shuffle” that moves aluminum around while the big bank collects rent on the metal.

Although the rent on the stored aluminum - Goldman isn’t allowed to actually own the commodity - is just pennies a day, the vast amount of the metal it has stored in its 27 Detroit warehouses and the “warehouse shuffle” strategy that enables it to extend the rental period for months on end adds up.

Through the Metro International Trade Services subsidiary it bought in 2010, Goldman has accumulated 1.4 million tons of aluminum, which it stores at about 48 cents per ton per day. That’s about $672,000 per day of revenue - nearly half a billion a year.

Experts say the warehouse shuffle game ultimately raises the price of aluminum to manufacturers - everything from beer and soda companies to automakers. That extra cost, about $5 billion over the past three years, is passed on to consumers - you and me.

“What Goldman is doing is a new twist on an old game, it’s called daisy-chaining,” said Money Morning Capital Wave Strategist Shah Gilani, who wrote on this topic himself on his Wall Street Insights and Indictments web site. “The story here is that Goldman is allowed, by the Fed and the SEC and Congress, to own these warehouses in order to get around rules governing storing metals to prevent price manipulation to manipulate the price of aluminum higher, which costs us all more.”

And Gilani isn’t happy about it.

“Talk about redistribution policies, this is the same old game with a newer twist: Take from the middle class and give to the biggest, richest banks so they can pay their legal bills and settlement fines to keep the coffers of politicians full. It’s sickening,” he said.

Anyone who watches the Big Banks of Wall Street will not be surprised to learn that Goldman isn’t the only bank playing the game, and aluminum isn’t the only commodity they play with…

How the Goldman Sachs Warehouse Shuffle Works

Although the banks can’t own the commodities themselves, they can store commodities for others and charge rent.

That’s why Goldman bought Metro International in 2010. That same year Swiss-based Glencore International bought Italy’s Pacorini for the same reason. Glencore does the same warehouse shuffle at its facilities in the Netherlands.

Metro immediately started stockpiling aluminum, with its stores rising from 50,000 tons in 2008 to 850,000 in 2010 to 1.5 million now.

The entities that own the aluminum, like the beer and soda companies, pay companies like Metro to store their aluminum until they need it.

Before Goldman bought Metro, it only took about six months to get aluminum out of a Metro warehouse; since 2010 the wait has stretched to 16 months or more, with Goldman collecting rent all the while.

According to the London Metal Exchange, the rule-making body that oversees 719 metal commodity warehouses around the world, warehouse operators are required to move at least 3,000 tons of aluminum out every day.

At Metro, that means loading trucks with aluminum from one warehouse and moving it to another warehouse, then reloading the truck with different aluminum for transport back to the original warehouse.

The metal moves, as per the rule, but stays in Metro’s control. Not only does this warehouse shuffle generate rental income for Goldman, but keeping large amounts of aluminum in storage has caused the spot price for the metal to double since 2010.

“It’s a totally artificial cost,” Jorge Vazquez, managing director at Harbor Aluminum Intelligence, a commodities consulting firm, told The New York Times. “It’s a drag on the economy. Everyone pays for it.”

Comment by Free Carlos Danger
2013-07-25 09:36:33

Yemeni president pardons reporter Obama wanted kept in jail

By Adam Baron | McClatchy Foreign Staff
By Adam Baron
SANAA, Yemen — Yemeni journalist Abdulelah Haider Shaye, whom President Barack Obama once personally lobbied to have remain in jail, has been pardoned and released, fulfilling a months-old pledge from Yemen’s president, Abed Rabbo Mansour Hadi.

Comment by Born In Kenya
2013-07-25 09:48:39

obama was born in africa. yemen is in africa. because he was born in africa he must think it’s the 51st state or something and he can tell those african yemenoids who they can and can’t pardon.

Comment by Hi-Z
2013-07-25 12:07:47

Yemen is not in Africa but I think Ms Palin can see Africa from there.

Comment by Michael Viking
2013-07-25 13:09:05

I think Ms Palin can see Africa from there.

I think you’re confusing reality with a Tina Fey skit.

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Comment by Whac-A-Bubble™
2013-07-25 20:37:51
Comment by Neuromance
2013-07-25 09:59:58

I have to say… some of the FIRE sector strategists are absolutely brilliant. Seriously. Hats off.

First, they got the concept of a Qualified Mortgage created, one that the government will buy. It’s supposed to be a safe mortgage. Also, if a mortgage is deemed a qualified mortgage, it shields the loan originator from litigation. Now all that’s left is to get more and more loans qualified as QM. Which is what’s going on with the latest attempts to weaken the QM concept. These bills will be constantly submitted.

They understand the political system at a basic level and had an endgame in mind.

Frankly, I’ve always said they should just put these people on the government payroll. It would be less financially destructive that way. Or even the best system - get the government out of the business of buying and guaranteeing private debt. The whole concept is just a way to pump money into Wall Street.

But these FIRE sector strategists are brilliant chess players.

‘Consumer Mortgage Choice Act’ Takes Away Consumers’ Choices
Maxine Waters and Elizabeth Warren
JUL 22, 2013 12:30pm ET
American Banker

The latest danger is H.R. 1077 and its companion bill, S. 949. Deceptively entitled the “Consumer Mortgage Choice Act,” the bills seek to undermine Dodd-Frank’s ability-to repay provision. This provision, one of the most direct and important responses to the mortgage crisis, requires lenders to determine whether a borrower can afford a mortgage before they extend a loan. The rule was adopted to prohibit loans that were “designed to fail,” a practice that was central to the origination model that brought on the financial crisis.

Under the new rule, if lenders offer loans that meet the qualified mortgage standards provided by the Consumer Financial Protection Bureau , they are presumed to have proven the borrower’s ability to repay and are therefore protected from litigation.


Comment by (Neo-) Jetfixr
2013-07-25 10:27:13

“….pretty soon, you are executing people for letting their dog piss on your lawn……” Harry Callahan, 1973

Well, the guy that got shot wasn’t doing the pissing it was his buddy, not a dog……and it was on a gravel bar in the (publicly owned) river, not on his lawn……. So it’s apples and oranges.

“Missouri man charged with slaying float trip participant for urinating on a gravel bar”


Comment by spook
2013-07-25 13:45:26

Does a property owner have a legal duty to allowed a struggling swimmer onto his property in order to avoid drowning?

Comment by (Neo-) Jetfixr
2013-07-25 10:43:50

In the meantime, over at Casa de Spirit……a new batch of guys get to take involuntary early retirement, or try to make a go as a 1099. Or diversify their skill set, and become waiters and bartenders.

“Spirit AeroSystems lays off 360 workers”


“About 200 of the laid-off employees are engineers and professional and technical workers…. It’s not any one particular program…..There’s a lot of veteran employees there.”

“Employees were given two week layoff notices with two weeks of pay, then walked out the door”.

Comment by oxide
2013-07-25 15:46:18

engineers and professional and technical workers

So much for the STEM degree…

Comment by rms
2013-07-25 23:46:44

“So much for the STEM degree…”

It’s still better to have an engineering degree and no job than it is to have a job and no engineering degree.

Comment by ahansen
2013-07-26 00:05:02

Just ask Obama.

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Comment by Downlow Joe from CATO
2013-07-25 11:10:36

NSA projects = infrastructure spending. Right?


Jesus, these are massive buildings/server farms…

Comment by goon squad
2013-07-25 11:54:38

“they attacked us on 9/11 because they hate our freedoms”

Comment by Phil Shiffley
2013-07-25 20:53:27

Things are getting crazy (er).

Comment by michael
2013-07-25 12:58:23

the “how much a month” economy is destroying this country. some 26 year old admininstrative assistant i work with just told me he considered a 96 month car loan.

Comment by Resistor
2013-07-25 13:05:55

A lady I work with… her son just bought a 4/3. Dude is in late twenties.

Me: Whoa, that’s a lot of house for a single guy
Her: he’s going to rent rooms to his friends
Me: blank stare
Her: he has to to make the mortgage

Comment by inchbyinch
2013-07-25 15:28:34

“Dude is in late twenties. ”
I was 27, husband 35 when we bought our first home under Volcker. 17.5% ARM. We didn’t need roommates, but life wasn’t easy. Back then you grew beyond your mortgage payment because your salary (x2) was increasing. Times have sure changed.

In our circle of friends, more wives are working FT then husbands right now.

Comment by Amanda Bynes
2013-07-25 13:12:29

That’s stupid, he should have paid for the car with his HELOC

Comment by michael
2013-07-25 13:31:15

he ended up leasing a BMW 3 series…he’s getting a $ 2,100 a month VA allowance for being a full time student.

Comment by Neuromance
2013-07-25 14:29:51

People should be able to do what they want. “Experience keeps a dear school, but fools will learn in no other.”

However, I don’t want politicians or the Federal Reserve to force me to pay for the mistakes of their cronies or their cronies’ victims.

Comment by Resistor
2013-07-25 13:09:31

Notes form high school interview trenches:
Two applicants for a soc. studies position with JDs (one also with MBA).

Comment by Free Carlos Danger
2013-07-25 15:45:33

Don’t hire lawyers and mba’s.

Comment by Resistor
2013-07-25 18:37:05

We didn’t…

Comment by non-conformist
2013-07-25 16:34:49

DaleC • a day ago
I heard George Zimmerman is going to change his name to Ben Gozzi, that way no one in the Administration will investigate him.

Comment by Rental Watch
2013-07-25 16:51:15

LPS came out with their “first look” today at the most recent delinquency rates.


Delinquency rate up 10% month on month, down 6.5% year on year.

Comment by Housing Analyst
2013-07-25 17:10:27

Florida-Based Lender Processing Services Inc., “LPS” to Pay $35 Million in Agreement to Resolve Criminal Fraud


This is the outfit that publishes fraudulent data that “Rental Watch” likes to quote.

Considering you paid a massively inflated price which you refuse to disclose, you have a stake in the direction of prices.

You’re untrustworthy.

Comment by Whac-A-Bubble™
2013-07-25 19:58:33

Could anyone who thinks they get the cachet of the brony phenomenon kindly explain? Why do teenage boys think it’s cool to watch My Little Pony?

Whatever happened to Three Stooges reruns?

P.S. As a long-time viewer of chick flicks and teevee shows, I guess I basically agree with the concept.

Comment by Whac-A-Bubble™
2013-07-25 23:59:17

Are the U.S. and Asian stock markets decoupled again?

July 26, 2013, 2:23 a.m. EDT
Japan stocks slide on firm yen; Australia higher
By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Japanese stocks tumbled Friday to snap a five-week winning streak as exporters skidded on the yen’s strength, while Australian shares climbed following overnight gains on Wall Street.

Nissan Motor Co. and Advantest Corp. lost ground in Tokyo after posting their quarterly results, while shares of Chinese railway construction firms gave back some of the gains recorded in the previous session.

Japan’s Nikkei Stock Average ended the day 3% lower to end the week with a loss tally of 3.2%, and China’s Shanghai Composite lost 0.7%. Both benchmarks had also declined in the previous two sessions.

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