Bits Bucket for September 15, 2013
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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Boulder Report:
The rain has started back up but not very heavy. Only supposed to last a day or so this time. I don’t expect the recent high water mark to be tested again. Ate in Longmont last night. Restaurant closed early due to the flood…not sure if it was lack of ingredients or lack of employees. Mostly everything is functioning relatively normally and most roads are now open. The exception is the canyons to the west. Almost all of them are washed out. Helicopter evacuations continue for the mountain communities. Blackhawks and Chinooks running continuously during daylight hours out of the Boulder airport, which we live next to. It’s like being in a war zone for a few days.
Was able to confirm that those above the washouts do mostly have alternative ways out if necessary. The helicopters are just for those who don’t. Those who don’t are being told to take the helicopter ride or expect weeks without another chance.
I had Thursday afternoon and Friday off. At this point I am assuming a normal workweek starting Monday. At no point have there been shortages of food or fuel in Boulder even though there was a short period of time when you couldn’t get in or out. We’ve had water and electricity and internet the whole time. Very easy for us. Lots of neighbors with flooded basements, though.
It’s hard to believe the video footage coming out of your area. I appreciate finding your update. I’m glad to hear it’s not completely horrible for everyone and that you continue to stay safe.
Here are some aerial shots. The damage to US 34 in the Big Thompson Canyon west of Loveland is impressive.
http://photos.denverpost.com/2013/09/14/photos-colorado-flood-damage-aerial-views/#85
wow that is insane.
We just heard that an acquaintance might have drowned in the canyon, though she hasn’t been found yet.
Will all of the damaged buildings rebuilt? I am thinking that the roads will be built. But what about the water damage to houses like in NJ! Will these be rebuilt?
I ask because it could be a short term boom for the local economy.
I ask because it could be a short term boom for the local economy.
Other than the yahoos in the Big T Canyon there really wasn’t all that much damage in the area. Repairing US 34 will probably provide some boost, I suspect. Right now there is no way to get in or out of Estes Park. I imagine that the supermarket shelves there have been picked clean.
I imagine that the supermarket shelves there have been picked clean.
Yeah, they were already clean a couple of days ago. I’ve got a friend up there riding it out right now. For some reason the media is sensationalizing all the closed routes. But nobody is talking about the routes that are still open. It’s a long drive, but you can still leave Estes any time you want.
Unfortunately it’s started to rain hard again. Church was let out early due to the heavy rains, just so people could get back home before the main roads close again.
Right now there is no way to get in or out of Estes Park.
From Rocky Mountain National Park:
September 14, 2013
Trail Ridge Road Continues To Be Vital Link To Estes Park Community
Trail Ridge Road, which is Hwy 34 through the park, is OPEN for essential travel only. At the request of the Town of Estes Park and Larimer County Emergency Services park managers have been asked to only allow east bound traffic to consist of community residents, family members of community residents providing support, emergency services and delivery trucks.
Looks to me like there IS a way in & out of Estes Park. A big detour, but still possible.
I’ve got a friend up there riding it out right now. For some reason the media is sensationalizing all the closed routes. But nobody is talking about the routes that are still open.
I also have an acquaintance in Estes Park, who is posting updates on her Facebook page. She & her husband have proven themselves fore-sighted & resourceful. They have a system of fire hoses and fire retardant, that they can deploy quickly over the property to protect it from wildfires. When they open the valves, fire retardant starts to cover everything valuable.
I marvel at people who spend a $million on their houses, which are still incapable of resisting or fighting fires on their own property. My acquaintance is not one of them.
She did mention Estes Park has asked residents to flush their toilets as little as possible due to strains on the water & sewer system. She bought Depends just in case.
I just read that Hwy 7 reopened, which is much better than Trail Ridge RD.
Trail Ridge Rd. for those unfamiliar with it, is usually closed this time of year, as it climbs to 12,000+ ft and tends to get pounded with snow early on. It isn’t a very viable road for commerce, which is why its been restricted to essential traffic only. It’s essentially a sight seeing road, as it’s narrow with lots of switchbacks. Go off the road and in most places a very nasty fall awaits you.
But now that 7 is open, ordinary citizens can now come and go. US 34 in the canyon will be out of commission for months. I haven’t heard much about the condition of US 36, which connects Estes with Longmont and passes through Lyons, which was heavily flooded and damaged.
Looks to me like there IS a way in & out of Estes Park. A big detour, but still possible.
I read earlier that Trail Ridge was also closed, and that RMNP was also closed. It has reopened since then, no doubt because 34, 34 and 7 were closed.
RNMP has been closed for days, but AFAICT Trail Ridge Road continues to be open for emergency traffic. It might have been closed for a few hours here & there.
Residents cut off from all roads due to flood conditions are being notified to either be evacuated at their first opportunity (often by helicopter), or else they will not get a second chance until the regional situation drastically improves, and that might take weeks.
I’m sure in a few more days the news media will be giving piteous stories of residents who refused to leave when they had a chance & then suffer the consequences of their own stupidity & stubbornness. I recall the Bill Cosby skit, where the Lord asks Noah, “How long can you tread water?”
She bought Depends just in case.
??? What??? Ewww.
I would think an investment in two 5-gal buckets (only $4-5ea) and some cedar chips would be a FAR FAR better plan!
She bought Depends just in case.
Yeah…if the toilet doesn’t work, obviously Depends are the next best solution. ?!?!?!? I’m hoping there’s a joke in there somewhere :-).
The Big Thompson River pretty much owns U.S. Colorado Hwy. 34. I was intrigued to see so many houses standing surrounded by water — it’s almost as though they were built with the idea the surrounding area might flood.
Glad you are safe; thanks for posting photos.
Those flooded houses are in the canyon. You’d think that after the catastrophe in the seventies, when hundreds died in that canyon when it flooded, they’d know better.
I believe that in Loveland proper nothing was rebuilt after the big flood of the 70’s, which swept away all the bridges. This time the bridges did not fall, even thought the Big Thompson was at 100x of normal volume and at its crest it flooded the bridges. There was some flooding in the old fairgrounds area, but that area is pretty much uninhabited
. I was intrigued to see so many houses standing surrounded by water — it’s almost as though they were built with the idea the surrounding area might flood.
Some of those houses you see surrounded by water have been uprooted by the flood and aren’t on their foundations. I’ve been up & down US 36 in the years after the 1976 flood & saw houses being built, year by year, most of them in areas slightly less prone to flooding than before. The canyon is beautiful, and the sound of mountain water running through the rocks is nice to hear, day or night. They did add a great many signs along the highway, advising visitors to rush uphill, in the event of flash flooding.
I’ve been up & down US 36 in the years after the 1976
You mean US 34
Right, US 34 along the bottom of Big Thompson Canyon.
“Those flooded houses are in the canyon. You’d think that after the catastrophe in the seventies, when hundreds died in that canyon when it flooded, they’d know better.”
It’s the same story in LA. For a fascinating account, check out John McPhee’s Los Angeles Against the Mountains.
This afternoon I’ve been listening to the Longmont CO police & fire scanner, a continuous feed:
http://www.broadcastify.com/listen/feed/11104/web
They just mentioned a “family disturbance.” A family is trying to leave an area just put under a mandatory evacuation order. An elder sister is hanging onto & banging on their evacuation vehicle.
Longmont radio traffic keeps talking about “diverting an Oligarchy”. Sounds like an interesting concept. I doubt they are referring to what the HBB keeps referring to.
Heard another from Longmont, about a local resident needing help:
“Is he requesting evac?”
“Frankly he is a little bit unsorted. I think there are some mental issues.”
I had Thursday afternoon and Friday off. At this point I am assuming a normal workweek starting Monday.
We’ll see how much rain falls today. It’s coming down pretty hard in Loveland right now. Fortunately for me I can telecommute so no worries if roads are closed tomorrow.
This is mind boggling — like the aftermath of an inland tsunami.
September 14, 2013, 1:40 pm 1 Comment
Aerial Video of Devastation by Colorado Floods
By JENNIFER PRESTON
An aerial view of floodwaters filling the streets of downtown Longmont, Colo., north of Boulder, in YouTube video by Payton H. Peterson.
Updated | Sunday, 12:40 p.m. As my colleagues, Dan Frosch and Jack Healy reported, Colorado’s worst flooding in years has killed at least four people, washed away homes and roads and forced thousands of residents from Pueblo to Fort Collins to flee.
Aerial video footage and images captured on Friday by videographer Payton H. Peterson show the extent of the damage in Longmont and Lyons in Boulder County after 12 inches of rain.
…
One of his videos showed exactly where I work and thought about moving in order to walk to work. Oddly enough, the last place I lived and basically every place we considered other than this one were all flooded. Feeling pretty lucky…
That lilly white teabilly cracka Paula Deen sure got what she had coming to her. I guess she now knows that having used racial slurs in the past will not be tolerated.
I certainly hope that DHS has the NSA looking into those 1,500 people who gave Deen a standing ovation Saturday and have alerted the Cincinatti office of the IRS
Tearful Paula Deen Makes First Public Appearance in Months
by Associated Press
September 14, 2013
HOUSTON (AP) — Celebrity cook Paula Deen fought back tears as she was greeted by a supportive crowd during an appearance at a Houston cooking show.
Saturday’s event was Deen’s first public appearance since June when it was revealed that in an earlier legal deposition she acknowledged using racial slurs in the past.
Within a few days the Food Network yanked her show off the air, Smithfield Foods dropped her as a celebrity endorser, and retailers such as Wal-Mart removed her products from shelves.
The Houston Chronicle reports about 1,500 people gave Deen a standing ovation Saturday when she appeared at the Metropolitan Cooking & Entertaining Show. She told them their hearts were “as big as your state.”
Deen held two cooking demonstrations, including tips on how to make peanut butter pie.
The hate and loathing shown in your post far surpasses anything Paula Deen has done.
Uh, I could be wrong, but I think he was being sarcastic.
I certainly hope so.
Yeah I think you have not been following Mr. Scandals’ posts. He is being sarcastic.
The part about the DHS, NSA and IRS Cincinnati office wasn’t.
Except for the “I certainly hope” part.
I don’t hope that happened, but I kinda figure it already did.
“Uh, I could be wrong, but I think he was being sarcastic.”
Ya think?
Although Hi-Z did pick up the point that these socially acceptable names are used (and by some on this blog) with the same “hate and loathing” as the word Paula Deen acknowledged using in the past.
“Deen held two cooking demonstrations…”
I read the cost to attend her cooking demonstration seminars is $140-$400 a ticket.
What a waste of $.
monetization is the only game in town.
Have many of the female HBB readers traveled to Asia? If you go, I suggest you pack a can of mace among your belongings.
1 in 4 Men Surveyed in Asia and the Pacific Have Raped
An author of the study explains why rape is so prevalent.
Tang Hui was imprisoned in a Chinese labor camp after protesting the rape of her daughter.
Rachel Hartigan Shea
National Geographic
Published September 14, 2013
One in four men surveyed for a United Nations study in Asia and the Pacific admitted raping at least one woman.
The UN Multi-country Study on Men and Violence in Asia and the Pacific surveyed over 10,000 men at nine sites in six countries: Bangladesh, China, Cambodia, Indonesia, Papua New Guinea, and Sri Lanka. At the survey site in China, 23 percent of men admitted to at least one rape. In Papua New Guinea, that figure was 61 percent.
…
but i thought the symbols of the coexist sticker spoke a universal language?
I’m going to come out as racist (so excuuuuuuuuuuuuuse me) but Asian women over here tend to prefer non-Asian men because they are less harsh, less control freaks, and less jealous.
I love watching Anglo-American male-Asian female couples, particularly the older ones. Interesting dynamic. Not making a value judgement here, just that it is interesting.
Most cases, it’s a goofy looking white guy and a semi attractive asian woman.
We have 2 sets of neighbors like that. Both wives are very attractive sexy (American-Asians) married to chunky “wallpaper” white males. All great folks, but I see that as well. Evidently, the wives aren’t superficial.
Evidently, the wives aren’t superficial.
Or at least they place a higher value on steady and stable than some others…
You should have seen those all hands meetings at the primarily Asian company I worked at in L.A. when I sat next to one of the good looking young Asian women. The guys were staring me down as if they were lions. Even my lunch buddy, born in America, stared me down. Once he showed me a picture of his sister and brother in law. He says “my brother in law is white…we asians don’t want to talk about it.” A couple years ago his brother in law got killed in a motorcycle accident.
There’s a lot to be said for steady and stable.
“There’s a lot to be said for steady and stable.”
The hotties usually figure this out when they’re past their prime and their over-colored, over-perm’d hair is falling out, and they’re plumped-up from years of popping birth control pills.
it’s a goofy looking white guy and a semi attractive asian woman.
Perhaps some cultures teach the value of seeing through appearances. I don’t care how good-looking a vicious woman is. But I still tend to look her way.
I don’t care how good-looking a vicious woman is. But I still tend to look her way.
Don’t we all?
For grins: traditional native American ways to understand women
Yet with the exception of Zimbabwe and Botswana, the countries with the highest incidence of rape are run by white European types. USA, Canada, Iceland, Belgium, New Zealand, South Africa, New Zealand, N. Ireland, Peru, UK, and Sweden.
I’ve travelled extensively and alone in SE Asia and never once suffered the on-the-street harassment I’ve routinely had in the US.
http://en.wikipedia.org/wiki/Rape_statistics
I’m posting an article below which is great except for one shortcoming: The writer obviously doesn’t understand the inverse relationship between interest rates and asset prices.
Oh well…nice try, anyway.
Posted by Heidi Moore
Friday 13 September 2013 10.10 EDT
What’s killing the US housing recovery?
Don’t believe the hype about rising interest rates smothering housing market improvement. Homes are simply unaffordable
Picture it: a hopeful young couple wants to buy a house. They’ve been reading stories about a housing recovery, and interest rates are low. They start their search in the late spring. Things start to turn over the summer: as interest rates on 30-year mortgages suddenly rise to 3.5%, 3.7% and then 4%, they start to get discouraged. Eventually, they walk away and keep looking. The housing recovery dies as examples like this happen all over the country. Banks start laying off mortgage professionals, grousing all the time that rising rates are ruining their profits.
Some version of this narrative has been playing out in the mortgage coverage of many major newspapers.
There’s only one flaw: none of that is happening.
Rising interest rates are not wrecking the housing recovery; what’s wrecking the recovery is that house prices are rising faster than the ability of people to afford them. Maybe we thought we could cheat history, and that a housing recovery would bring about an economic recovery. That can’t happen. The housing recovery can’t start until the economic recovery begins.
Unfortunately, the economic recovery is overblown; in fact, the economy is stagnant, and there’s no evidence of any progress despite years of stimulus by the Federal Reserve.
Similarly, the housing recovery was an illusion: the best housing stock has gone to large private investors, not individual homeowners.
So let’s look at why the housing recovery is weak.
You can forget the idea that it’s somehow due to higher interest rates. Rates are historically low. In 2003 through 2006, when the housing market was booming, the interest rate on mortgages over 30 years was around 6% or even higher, and that never hurt buying. That’s because at the same time, incomes were also rising, after adjusting for inflation. The year at the height of the housing bubble, 2006, was also a peak for income growth. By comparison, look at this chart to see how interest rates are correlated to housing bubbles: it shows that they aren’t, really.
So, if interest rates are still at rock bottom in historical terms, we know that “rising” mortgage rates are probably not a big enough deal to hurt the housing recovery.
So what is?
In a nutshell, what’s hurting the housing recovery is that there aren’t enough houses to buy, and those that are available are too expensive.
First, the supply of affordable homes has diminished. In the aftermath of the housing crash, one-third of all home sales were distressed homes, and those houses tend to be sold for affordably low prices by banks.
But, as home prices have risen, there is evidence that banks and lenders are not selling those foreclosed houses and instead holding on to some of them to sell for a higher price later. They’re also not selling them now because flooding the market would result in low sale prices – and those lenders want to get high prices.
That strategy by lenders seems to be working. House prices have rocketed in the past year, rising too fast for buyers to keep up, even with a 30-year mortgage. In July 2012, home prices were still falling from the housing bust. In the past year, they have rocketed up 12%.
At the same time, rental prices have also zoomed up, which is perhaps why mortgage applications seemed to rise earlier this year: a high rent will make people think about buying a home instead.
But neither renting nor buying looks great any more at these prices, because people still don’t have much money.
Personal incomes have collapsed since the recession, meaning households – many still struggling with heavy debt – can’t afford the sudden rise in house prices and are not applying for mortgages any more. Anyone who manages to buy a house for the first time right now is not feeling rich: the National Association of Realtors found recently that 42% of first-time buyers have to make sacrifices to afford a new home.
This issue of home prices is a huge factor in why there’s no actual housing recovery.
Affordability and home ownership are far more closely correlated than interest rates and home ownership. Interest rates may make mortgages more expensive, but they don’t affect the underlying price. That price is what drives people away.
…
the recovery is just as strong as it was 5 years ago. I asked my neighbor about the recovery, he said ” what recovery”. He has been out of work for 5 years. He is excited about the the 10 minimum wage.
azdude02
Is your neighbor’s wife the breadwinner?
Is he freelancing in his discipline?
Wow, 5 years is a long time. He needs to network. 80% of new hires are getting positions by networking or temp to perm. Decision makers aren’t hiring strangers. I just finished a class given by people who are re-employed.
80% of new hires are getting positions by networking or temp to perm. Decision makers aren’t hiring strangers.
Your statements confirm what azdude02 wrote. There aren’t enough jobs for all who want them. I remember back in 1998 or 1999 when my employer hired a group of young people for entry level customer service jobs. A bunch of them had tattoos, piercings, dressed sloppily, etc. It didn’t matter because the company needed workers and these people were available. That’s what happened in a healthy economy.
“Wow, 5 years is a long time.”
+1 Likely never be employed again.
“He has been out of work for 5 years. He is excited about the the 10 minimum wage.”
I propose the minimum wage be raised to $100 per hour. Then we’d all be out of work and excited about the minimum wage being $100 per hour!
This would also be a great way to dispel misguided belief in the findings of the flawed economic study which was done a few years ago which showed raising the minimum wage has no impact on employment.
Buh-bye, Megabank of America…and hello Gollum!
Investment Banking
September 10, 2013, 10:21
Dow Index Drops Bank of America, Alcoa and H.P.
By WILLIAM ALDEN
Clockwise from top left, Bank of America, Hewlett-Packard and Alcoa, the aluminum company that joined the Dow in 1959, will be replaced by Nike, Visa and Goldman Sachs on Sept. 20.Associated PressClockwise from top left, Bank of America, Hewlett-Packard and Alcoa, the aluminum company that joined the Dow in 1959, will be replaced by Nike, Visa and Goldman Sachs on Sept. 20.
The Dow Jones industrial average is shaking up its roster.
Alcoa, Bank of America and Hewlett-Packard — three stalwarts of corporate America that have fallen out of favor lately with investors — will be removed from the Dow, to be replaced by Goldman Sachs, Visa and Nike, the parent company of the index said on Tuesday.
The change, which will go into effect after the close of trading on Sept. 20, is the largest revision to the index since April 2004, when AT&T, Eastman Kodak and International Paper were dropped. It reflects the changing landscape on Wall Street and in the broader economy.
The decision to remove the three companies was prompted by their sagging stock prices and the index committee’s desire to diversify the mix of companies represented, according to S.&.P. Dow Jones Indices, the company that operates the index.
…
Interesting that they replaced a tech company (HP) with a company that helps people. get into debt (Visa) as opposed to another tech firm (like say Oracle). I guess we know where the growth is expected.
they should put a payday lender in the DOW.
The growth in the financial sector happened a long time ago. This is not what to expect in the future.
so is the DOW so desperate that they have to cherry pick companies to keep showing a gain?
The only people making money are the underwriters and the companies selling the stock.
I sit here and shake my head on thus sears and kmart disaster.
I was killing some time the other day waitn on a car repair and browsed through kmart. the prices are so high. I know they cant be selling much. Seems like the executives are just sucking the remaining value out of the company by keeping the doors open.
Waiting on a car repair?
Why didn’t you just leave it in the gutter and buy a new one with your HELOC?
smog actually u have to get your car smogged every two years here dude.
There is a KMart about a mile from the house. The place has been a dirty, run down, ghost town for years. I only go there if I need a single item that can’t wait, which is once in a blue moon. I would never do any major shopping there.
exactly my friend.
There is no way the local one here is making money.
The doors are being kept open so executives can steal the equity from from shareholders before they go bankrupt.
You cannot trust these people. They dont care about common stock shareholders.
you would have to be a fool to invest in SHLD.
I like K-Mart. I shop some seedy places, since I go for value, not the experience. But I understand where both of you are coming from. Shopping Center School woke my arse up. (University curriculum)
They will not stop until DOW average is 100,000.
That looks good on the news….I think.
“They do feel like the market’s gone up, but they feel it’s rigged,” Kathy Boyle, president of Chapin Hill Advisors, a New York-based boutique investment advisory, said of her clients. “They just laugh. They feel this market has been propped up and it’s not real.”
The decision to remove the three companies was prompted by their sagging stock prices
I’ve had a free checking account of BofA for about 8 years. Got a letter yesterday saying they will start charging for this account in October. I’ve expected this for a while and will close the account before that.
The Federal Reserve Chair succession campaign is really heating up!
Democrats Set to Rebel if Obama Taps Summers for Fed
Sunday, 15 Sep 2013 07:48 AM
By Cathy Burke
Opposition is mounting against Lawrence Summers as a possible pick for the next Federal Reserve chairman – with four Democrats on the Senate Banking Committee expected to vote “no” if President Barack Obama nominates him.
Jon Tester on Friday became the latest member to announce his opposition.
“Senator Tester believes we need a consensus builder to lead the Federal Reserve. He’s concerned about Mr. Summers’ history of helping to deregulate financial markets,” said Andrea Helling, spokeswoman for the Montana Democrat.
Tester also suggested Summers is far more chummy with Wall Street than Main Street.
Summers was President Clinton’s Treasury secretary, and his backing for banking deregulation in the 1990s has been blamed for sowing the seeds of the 2007-2009 financial crisis that ultimately led to a massive taxpayer bailout of Wall Street.
“The senator thinks it is vital to have a chair who appreciates the important role small community lending institutions play in financial markets,” his office said.
Summers, 58, currently a Harvard professor and former economic adviser to Obama, is widely thought to be the president’s preferred choice to replace Fed Chairman Ben Bernanke when his term ends in January.
The White House said Friday the president had not yet made a decision.
Tester, considered a political centrist, joins at least three other Democrats on the Senate Banking Committee expected to nix a Summers nomination.
Congressional aides have said Sens. Jeff Merkley of Oregon, Sherrod Brown of Ohio, and Elizabeth Warren of Massachusetts also would oppose the pick, the Wall Street Journal reported.
In Warren’s case, Summers had gone as far as asking for a meeting with her when both were in Massachusetts this summer, the Washington Post reported.
The meeting never happened because of scheduling issues, but the outreach underscores the behind-the-scenes push to install Summers in the top post at the central bank, the Post noted.
Democrats hold a 12-10 advantage on the banking panel, and the intensifying opposition from Democrats would make it impossible for Summers to advance without GOP support, the Journal noted.
…
“In no uncertain terms, the client made it clear that he or she still considered Wall Street, as well as “the Congress they bought,” corrupt to the core.”
The question may be moot, if this article turns out to be true.
Larry Summers withdraws name from Fed consideration
By Zachary A. Goldfarb, Sunday, September 15, 4:36 PM
The Washington Post
Former White House economic adviser and Treasury secretary Lawrence H. Summers has withdrawn his name as a candidate for Federal Reserve chairman, a person familiar with the matter said Sunday.
President Obama had been strongly considering naming Summers to the post after their long experience fighting the financial crisis and recession.
http://www.washingtonpost.com/business/economy/larry-summers-withdraws-name-from-fed-consideration/2013/09/15/7565c888-1e44-11e3-94a2-6c66b668ea55_story.html
How will this news affect Yellen’s prospects?
CBS/AP/ September 15, 2013, 5:05 PM
Lawrence Summers withdraws from consideration to replace Bernanke
Then-National Economic Council Director Lawrence Summers addresses the Economic Policy Institute Dec. 13, 2010, in Washington.
WASHINGTON President Barack Obama says he has accepted Lawrence Summers’ decision to withdraw from consideration for the role of Chairman of the Federal Reserve.
Obama says Summers was a critical member of his economic team and says he is grateful for his service on behalf of the country.
In a statement released Sunday afternoon, Obama praised Summers for his actions “as we faced down the worst economic crisis since the Great Depression.”
“It was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today,” the president said.
Summers was the leading candidate to replace current Fed Chairman Ben Bernanke but faced opposition from some Democrats, including members of the Senate Banking Committee. Summers alluded to the opposition to his candidacy in a letter he sent to Obama Sunday to formally withdraw from consideration.
“I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interests of the Federal Reserve, the administration or ultimately, the interests of the nation’s ongoing economic recovery,” he wrote.
Summers served as Treasury secretary under Clinton but forged a bond with Obama as his National Economic Council director when he oversaw the administration’s response to the economic and financial crisis and to the bailout of the U.S. auto industry.
Meanwhile this past week, more than 350 economists have a signed a letter to President Barack Obama calling on him to nominate Federal Reserve Vice Chair Janet Yellen to be the Fed’s next chairman. The letter was designed to draw attention back to Yellen amid signs that Obama had been leaning toward nominating Summers.
The letter, whose signers include economists with past ties to Obama, credits Yellen for prescience in warning in 2005 about an impending real estate meltdown, for her consensus style of leadership and for her commitment to job growth.
Yellen became a member of the Fed’s board of governors in 1994. Clinton selected her to chair his Council of Economic Advisers from 1997 to 1999. She was president of the San Francisco Federal Reserve Bank, one of 12 Federal Reserve districts. In 2010, Obama selected her as vice chair of the Fed’s board of governors, a position she has held since.
Obama had been expected to announce his nomination as early as this month. Fed Chairman Ben Bernanke’s term ends Jan. 31, 2014.
…
+1 Awesome!
Now how about a gentile nominee; any suggestions?
Is Michael Woodford a gentile?
Why Michael Woodford Thinks the Fed Should Taper
By Matthew Klein Sep 12, 2013 6:55 AM PT
Michael Woodford is one of the world’s preeminent monetary theorists, which is why you should read the thorough profile written about him by my colleagues at Bloomberg Markets. Buried inside the article is the revelation that Woodford wants the Federal Reserve to cut back on its asset purchases as soon as possible. That wasn’t what I was expecting from a known advocate of “unconventional” monetary stimulus, so I asked him to explain his views more thoroughly.
First, a little background. Among central bankers and those who watch them, Woodford is most associated with something called “forward guidance.” The idea comes from a 2003 paper he wrote with Gauti Eggertsson, then an economist at the International Monetary Fund. They were trying to come up with a way to stimulate weak economies after short rates had already fallen to zero percent. (Rates can theoretically go below zero but that would probably make things worse.) Their insight was that central banks can theoretically suppress long-term interest rates by promising to keep short rates low for longer than traders expect. All of the big rich-country central banks have since adopted this approach.
…
Good on the MSM for correctly describing the campaign for the Fed Chair as a “race.”
Given Summers’ cozy ties to Wall Street, will his withdrawal from the “race” have stock price implications?
Sept. 15, 2013, 4:52 p.m. EDT
Summers withdraws from Fed race: WSJ
By MarketWatch
SAN FRANCISCO (MarketWatch) — Former Treasury Secretary Lawrence Summers withdrew Sunday as a candidate to succeed Ben Bernanke as chief of the Federal Reserve, The Wall Street Journal reported. Summers, who had been considered the frontrunner for appointment by President Barack Obama, told Obama of his decision in as telephone call and later by letter, The Journal said. “I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the Administration or, ultimately, the interests of the nation’s ongoing economic recovery,” the Journal quoted Summers as writing in the letter.
Well, I see tonight Summers took himself off the list. Hellen will be good for stocks and precious metals. More of the same Bernanke. And she will continue when Hitlary is elected in 2016.
My iPad again…Yellen.
I suspected the whole exercise of floating Summers might have been a smoke screen for fast-tracking a Yellen nomination when the Democrats balked at a Summers nomination.
If so, it’s time to come up with a Plan B, as Plan A is defunct. Actually it seems like either Yellen or Kohn are viable candidates, and I am sure there are others who would be qualified and less of a political lightning rod than Summers.
Sept. 14, 2013, 1:59 p.m. EDT
S&P cuts Chicago outlook on pension concerns
By Nathalie Tadena
Standard & Poor’s Ratings Services lowered its outlook on Chicago to negative from stable, citing risks involved in how the city will address its upcoming large pension payments.
Chicago’s overall unfunded liability of the four plans is $19.4 billion as of 2012, up from $11.9 billion in 2009. The plans altogether are 35% funded, the ratings firm said.
S&P, which affirmed Chicago’s rating six levels into investment grade at A-plus, said the city has a very weak budgetary performance as well as a very weak debt and contingent liabilities position. However, Chicago benefits from a broad and diverse economy, given its status as a major regional economic center, and has adequate budgetary flexibility.
…
hows the landlord holding up?
If you mean our landlord(s), then we don’t see them much. They must be running low on cash, as they burned a lot on repairing an underground sprinkler system a few months back, and never replaced the lawn, the system or the groundskeepers. The backyard area looks like it belongs to a foreclosure home.
my buddy lives in scripps ranch. He is tryn to buy a house in payson az. He wants out bad.
Is he a renter?
“Is he a renter?”
>”He wants out bad.”
Sounds like one big happy family.
“citing risks involved in how the city will address its upcoming large pension payments.”
Can you say federal bailout? Sure you can. I knew you could.
Which is why the talk of QE tapering is just that: talk. Coming soon to a store near you: $10/lb ground beef and $15 hamburgers at fast food joints.
me and the old man were having this conversation yesterday. I asked him what he thought about $4 ground beef. He is 73 years old so seen a lot. He says, “there inflation numbers are BS”. Then he went on to talk about the cost of a quart of motor oil and tires and all the other stuff he needs to function.
azdude02
Greenspin and Reagan did their magic on the BLS data, didn’t they! With the dollar being worthless, we have cut back on things we don’t need. Veggies and lean protein are non-negotiable.
You don’t have any dollars Donkey. You traded them for a rapidly depreciating dump.
Fillers and/or the google meat will keep the fast foods affordable to most.
I guess mcdonalds is thinking about changing their 1 menu.
They have got the patties so small it just ridiculous.
there is nothing in the store worth over a dollar imo.
they are going to price themselves out of business.
they are going to price themselves out of business.
Coming soon to many other businesses near us all, I’m afraid.
CJ’s makes a much better burger.(Western Bacon Cheese Burger-delicious) Once a year we split a meal using a coupon deal. The older we get, the less wiggle room there is to eat junk, and the nightly 1 hr walk is mandatory. Aging sucks.
Aging sucks.
This sure beats the alternative.
Ive come to believe that its better to check out a little too early than a little too late. Alsheimers will do that.
Im shooting for the massive stroke/coronary when Im alone at the hangar. No sense in burning all my net worth paying a hospital to try to revive me.
And besides, a retirement that consists of living under a bridge and dining on cat food doesnt appeal to me. Anyone whos paying any attention at all can see thats what the PTB have planned for us second half boomers.
Im shooting for the massive stroke/coronary when Im alone at the hangar. No sense in burning all my net worth paying a hospital to try to revive me.
Unfortunately there are a great many bad situations elders drift into, which fall in between dying abruptly from “The Big One” a la Fred Sanford, vs burning all your net worth in a hospital while in the Expensive Care Unit. Massive strokes/ coronaries can kill or render you a semi-vegetable. A lot depends on your friends, relatives and your community, plus your basic personality.
“The older we get, the less wiggle room there is to eat junk, and the nightly 1 hr walk is mandatory.”
We quit going to the annual county fair because of the greasy food smell wafting everywhere. Yuk!
I know what you mean. Once you have a habit of healthy food, the grease smells like death.
FEINSTEIN: “You’re NOT A Real Journalist Unless You Draw A Salary”
Kurt Nimmo
Infowars.com
August 9, 2013
California Senator Dianne Feinstein has proposed an amendment to the Media Shield Law – an irrelevant law ignoring protection already afforded by the First Amendment – that would limit the law’s protection only to “real reporters,” not bloggers and other upstart alternative media types.
http://www.techdirt.com/articles/20130807/13153224102/sen-fe...
A real reporter, declared Madame Feinstein during a Senate Judiciary Committee hearing, is “a salaried agent” of a media company like the New York Times or ABC News, not a shoestring operation with volunteers and writers who are not paid.
Comment viewing options
So…
Submitted by AngieDfromAL on Sat, 09/14/2013 - 13:49. Permalink
Her belief is that your opinion doesn’t count unless you’re on the governent payroll like the rest of our mainstream media is…
Got it… SMH…
http://www.dailypaul.com/295402/feinstein-youre-not-a-real-journalist-unless-you-draw-a-salary - 152k
Senate Panel Oks Measure Defining a Journalist
WASHINGTON September 12, 2013 (AP)
By DONNA CASSATA Associated Press
A Senate panel on Thursday approved legislation designed to protect reporters and the news media from having to reveal their confidential sources after narrowing the definition of a journalist and establishing which formats — traditional and online — provide news to people worldwide.
A point of dispute was the definition of a journalist.
The original bill would have extended protections to a “covered person” who investigates events and obtains material to disseminate news and information to the public. Sen. Chuck Schumer, D-N.Y., a chief proponent of the medial shield legislation, worked with Sens. Dianne Feinstein, D-Calif., and Dick Durbin, D-Ill., as well as representatives from news organizations, on a compromise.
http://abcnews.go.com/Politics/wireStory/senate-panel-oks-measure-defining-journalist-20235636 -
Interesting. In my opinion, these days, the only real journalists are the freelancers and not the ones on the payroll of the corporate owned MSM.
http://original.antiwar.com/lobe/2013/09/14/u-s-public-elite-disconnect-emerges-over-syria/
“The public is often eager for other countries to take their share – if not take the lead – in dealing with international problems… while the elite or people, who are much more knowledgeable about American power and the role it plays in the world, are more willing to play the role of first among equals in pushing for international action,” said Michael Dimock, director of the Pew Research Center for the People and the Press which conducted the most recent major survey of elite-public opinion in late 2009.’
‘Indeed, in the 2009 survey, only a third of respondents from the general public said Washington should either act as the “single world leader” or the “most active” among major powers. By contrast, nearly seven of 10 elite respondents – taken from the membership of the influential Council on Foreign Relations (CFR) – took that position.’
“When it comes to military engagements, the public perception is high risk, low reward, while there are many in the elite who see the balance or risk to reward in a different light,” Dimock told IPS.’
Dang, who knew we had royalty in the US? I wonder if they refer to themselves as ‘elite’ in private at the CFR? And are there levels of elite, where some bow to others or kiss rings?
‘the elite or people, who are much more knowledgeable about American power and the role it plays in the world’
Now this says a lot. The elite know something you and I don’t! Maybe it’s that they ain’t gonna die or pay for the bombs? That can’t be it. So how do you get this special knowledge? Is there a school or fraternity/sorority involved? It can’t be just being elected. Because it’s the great unwashed that do that. How could stupid people pick the elite? I’m confused, but that’s probably because I’m not elite.
The more I think about it, I’m tempted to believe this is all made up. Could it be these fancy thinkers are just putting a Wal-Mart crown on their head? Because if that’s the case, maybe we should just kick their elite asses.
“When it comes to military engagements, the public perception is high risk, low reward, while there are many in the elite who see the balance or risk to reward in a different light,”
Maybe we should talk a little more about exactly what the risks and rewards are for each group…perhaps that will shed a light on the disconnect between the two groups.
These elite are always going on about “the troops”. So are the troops elite too?
‘To the list of skeptics who question the need for air strikes against Syria, add an another unlikely group — many U.S. troops. “I haven’t heard one single person be supportive of it,” said an Army staff sergeant at Fort Hood who asked not to be identified by name.’
‘A Military Times survey of more than 750 active-duty troops this week found service members oppose military action in Syria by a margin of about three to one. A higher percentage of troops, about 80 percent, say they do not believe getting involved in the two-year-old civil war is in the U.S. national interest.’
‘For many troops, money is a key consideration. Troops question the cost of bombing Syria at a time when budget cuts are shrinking their pay raises, putting their benefits package at risk and forcing some of their friends to separate involuntarily.’
“We don’t have money for anything else but we have a couple hundred million dollars to lob some Tomahawks and mount an expensive campaign in Syria?” said Army Sgt. 1st Class Chris Larue, a 39-year-old maintenance expert at Fort Eustis, Va., referring to the precision-guided missiles that are likely to be used in any strike.’
http://www.militarytimes.com/interactive/article/20130911/NEWS/309110009/Troops-oppose-strikes-Syria-by-3-1-margin
“We don’t have money for anything else but we have a couple hundred million dollars to lob some Tomahawks and mount an expensive campaign in Syria?”
Well, we do have enough money to fly Bo to Martha’s Vineyard on a MV-22 Osprey.
First dog Bo is airlifted to Obama holiday home
By Nick Allen
8:07PM BST 11 Aug 2013
Rooms have to be found for dozens of Secret Service agents, someone has to carry a selection of presidential basketballs, and of course the family dog needs his own state-of-the-art aircraft.
Bo, the president’s Portuguese Water Dog, arrived separately on one of two MV-22 Ospreys, a hybrid aircraft which takes off like a helicopter but flies like a plane.
http://www.telegraph.co.uk/news/worldnews/barackobama/10236302/First-dog-Bo-is-airlifted-to-Obama-holiday-home.html - -
A Military Times survey of more than 750 active-duty troops this week found service members oppose military action in Syria by a margin of about three to one
Well, if I was in the military, I wouldn’t be too keen on any wars either. It’s much safer and far more pleasant to train at Ft. Hood and go home to the nice suburban house in a shiny new pickup truck at the end of the day, than to patrol the streets of Damascus.
This guy asking Charlie Rose about his Bilderberg meeting is obviously not a Feinstein approved journalist. Someone should tell him that he is not allowed to question a ruling elite approved propagandist or I mean journalist.
charlie rose runs from bilderberg question, he is a confirmed …
http://www.youtube.com/watch?v=4y8XB9pzIHU - 119k - Cached - Similar pages
Jun 9, 2012 …
I was looking up the word “bore” and danged if there wasn’t a picture of Charlie Rose next to the definition in the dictionary.
Whoa, are you saying a journalist can be elite too? This is all very intriguing. How do we know when one of these elite are around? I wanna know so I don’t break some etiquette or something. Like maybe I should avert my eyes.
So how do we know? Are they all Democrats? No, that can’t be because John McCain is definitely an elite. He wants to bomb everybody, plus he doesn’t know how many houses he owns. So it’s not restricted to political parties, and not just politicians. Is it the limo and their distinguished character? Mylie Cyrus has a limo and sticks her tongue out a lot so that’s not it. She has a lot of money and probably a lot of houses, so money alone doesn’t make you elite.
This is narrowing down to something I can’t put my finger on. Back to the original article:
‘only a third of respondents from the general public said Washington should either act as the “single world leader” or the “most active” among major powers. By contrast, nearly seven of 10 elite respondents – taken from the membership of the influential Council on Foreign Relations (CFR) – took that position…’Before the debate shifted to Congress, it wasn’t really clear how powerful the anti-interventionist bloc was within the Republican caucus,’ according to Monton, who said the breakdown in the elite Republican consensus encouraged opposition. ‘Ten years ago, they wouldn’t be caught dead opposing the use of military power in the world once it had been proposed.’
I think we may have it here:
‘they wouldn’t be caught dead opposing the use of military power in the world once it had been proposed’
So it’s supporting the unilateral use of force - killing people - the instant it’s been proposed. And who does the proposing? Well it has to be the upper elite. But once they draw their sword, Here’s Johnny!
Well I’m glad we made some headway on this elite thing. Running off and killing people at the drop of an elitists hat makes you an elitist. Kinda like this guy from the Military Times article:
‘Army Staff Sgt. Derek Harris said he is undaunted by the prospect of U.S. military involvement escalating beyond air strikes and requiring the Army to deploy ground troops. “It doesn’t worry me. It’s not that I welcome it, but I definitely wouldn’t mind getting back to work,” he said.’
You sir, are elite. I’m sure Kissinger will give you a drink of his $8,000/bottle wine on his private jet anytime.
“Whoa, are you saying a journalist can be elite too?”
No. A journalist can’t be elite, but they can work for the elite as “a salaried agent” as long as they are an elite approved journalist.
“A real reporter, declared Madame Feinstein during a Senate Judiciary Committee hearing, is “a salaried agent” of a media company like the New York Times or ABC News, not a shoestring operation with volunteers and writers who are not paid.”
Medieval knights were considered “elite”. As such, it was not uncommon for some of them to use their swords to hack at a peasant who happened to be unfortunate enough to be standing by the side of a road or trail when the knight went thundering by on his steed. Great sport!
Eventually knights were replaced as a fighting force by commoners trained in archery.
Keep in mind that Knights were nobility, while the rank and file man at arms were not. My understanding is that they existed at the same time
“My understanding is that they existed at the same time”
Yes and no. There was a transition period where both existed (1300s, if memory serves) and then the traditional “knight” model (heavily armored, horse mounted) as a fighting force was phased out.
Some knights were more noble than others, in the sense that some were closer to m’lord, and commanded others.
I think what you’re talking about is the transition in battle styles. Not all warriors who wore armor were “Knights”. To be a “Knight” you had to a nobleman (at least in the middle ages), Sir So-and-so, otherwise you were a “man at arms”.
As such, it was not uncommon for some of them to use their swords to hack at a peasant who happened to be unfortunate enough to be standing by the side of a road or trail when the knight went thundering by on his steed.
– Headline in today’s NYT:
Firing at Man in Times Square, Police Wound Two Bystanders
– Things haven’t changed all that much.
How do we know when one of these elite are around? Ask a man who knows a few of them, such as Cornel West who once worked at Harvard:
“To put it bluntly, [Larry] Summers has always struck me as a legendary gangster with a high IQ, in service of the
elitewell-to-do. That was my experience the first time I ever encountered him in his office.”How do we know when one of these elite are around? I wanna know so I don’t break some etiquette or something. Like maybe I should avert my eyes.
I take my 81 YO mother for regular treatments at Sunrise Children’s Hospital in Las Vegas. Last week the entrance was blocked off and I had to haul her in from the parking lot (I usually am able to leave the car there for a short time and bring her in. It was very hot, and she’s very frail.)
I asked the security guy what’s up. VIP about to arrive, apparently. I asked which one of our lords and masters is coming; he couldn’t say.
I had left already, but my mother said Harry Reid strode through with a gigantic entourage.
I was upset because I missed my chance to yell “Ugh - is that Harry Reid I smell?”
I was upset because I missed my chance to yell “Ugh - is that Harry Reid I smell?”
At least you have awakened & can smell the
BScoffee.Let’s be honest…in feinstein’s world if you are not one of these people, you are not a journalist.
http://www.theatlanticwire.com/politics/2013/09/rick-stengel-least-21-journalist-go-work-obama-administration/69362/
Let’s be honest…in feinstein’s world if you are not one of the elite or their servants, you don’t count.
“The Washington Post’s Shailagh Murray became Vice President Joe Biden’s communications director in March 2011″
I wouldn’t knock on Shailagh’s door if I were you.
Biden Advises Shooting Shotgun Through Door
By Steven Nelson
February 28, 2013
Vice President Joe Biden told Field & Stream magazine in an interview published Monday, “[if] you want to keep someone away from your house, just fire the shotgun through the door.”
http://www.usnews.com/news/articles/2013/02/28/biden-advises-shooting-shotgun-through-door - 167k -
“[if] you want to keep someone away from your house, just fire the shotgun through the door.”
Is there a Stand Your Door law in place anywhere?
Amendment I
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
Amendment I-F
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press as long as the press is “a salaried agent” of a media company like the New York Times or ABC News; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
Sounds like it is time to fire Congress and hire a new one that follows the Constitution.
Sounds like there is a major move underway to outlaw all forms of free speech. Only officially-approved propaganda will henceforth qualify as legal journalism.
Meanwhile, in Toronto, it really is different. http://ca.finance.yahoo.com/blogs/pay-day-/tiny-toronto-home-sells-165-000-171819404.html
Hank Paulson: Another Financial Crisis Is ‘a Certainty’
That was the message from former Treasury Secretary Henry Paulson when he appeared before economists and bankers at the meeting of the Economic Club of New York this week. He played a crucial role in attempts to save the financial system following the bankruptcy of Lehman Brothers on Sept. 15, 2008.
http://www.moneynews.com/FinanceNews/Paulson-crisis-financial-Fed/2013/09/13/id/52557
——————
There Are Major Signs of a Top Forming
http://gainspainscapital.com/2013/09/12/there-are-major-signs-of-a-top-forming/
Hank Paulson: Another Financial Crisis Is ‘a Certainty’
Please keep in mind this guy never told a truth in public.
“They Denied That We Were In A Depression In 1933 And They Are Doing It Again In 2013″
http://capoliticalnews.com/2013/09/13/they-denied-that-we-were-in-a-depression-in-1933-and-they-are-doing-it-again-in-2013/
TV show review: “Airplane Repo”
Several of my non-aviation friends and relatives ask me if I’ve seen it, so I watched a couple of episodes yesterday.
Biggest pile of steaming crap Ive ever seen on TV.
I could spend all day telling you what’s wrong with the show, but I dont want to waste my time.
Or, its remotely possible that things in Texas are actually this effed up.
All I know is that every mech on my field doesn’t like people snooping around, and have the airport cops on speed dial. And the airport cops job #1 is keeping yahoos like these guys off the airport property.
I do have to correct one idiotic assertion that one of them made…….vortex generators don’t “smooth out the airflow”. Wrong, dipshit, its the exact opposite……they are there to create turbulence, and disrupt the laminar flow forward of a control surface, to give the flight control surface airflow to deflect.
How do they get clearance for take-off without a warrant? Don’t they have to file a flight plan, show authorization of ownership, etc?
Can you just hotwire an airplane and haul out?
ATC doesn’t know or care about who files the flight plan. They don’t have to talk to anyone but the tower if they fly VFR.
Corporate jets don’t have ignition switches. Thats why most of them have Medco locks on the doors. Keys/locks extremely hard to pick, keys only available from the aircraft OEMs……only the registered owners can order replacements.. And….I know several different ways, on different airplanes, to make sure nobody can start the engines in a hurry, if I don’t want them started. And no, I’m not telling anyone (especially pilots) what they are. More effective than a “mechanic’s lien”
My personal favorite is one we ran across when I worked at Cessna. Took our best electricians four full days to figure it out. A guy who didnt work Citations all the time might take a couple of weeks to sort it out. Needless to say, I added this one to my mental Rolodex.
I’m not telling anyone (especially pilots) what they are. More effective than a “mechanic’s lien”
Similar things can be done with cars, tho few do.
Fixr, fascinating stuff
AL’S EMPORIUM
September 15, 2013
Zero Interest, Zero Jobs
Verizon’s Record $49 Billion Bond Offering Won’t Result in a Single New Job
By AL LEWIS
Verizon Communications raised $49 billion in a record-smashing bond offering last week, yet it isn’t bragging about creating a single job.
The telecommunications giant will use this mountain of borrowed boodle in a $130 billion deal to buy Vodafone out of Verizon’s U.S. wireless venture. Bond buyers reportedly placed as much as $100 billion in orders. The company’s 10-year bonds were initially priced to yield about 5.2%, but insatiable demand—which drives prices up and yields down—quickly had them yielding less than 5%.
Verizon sold a record $49 billion worth of bonds.
Investors thought Apple was amazing, too, when it raised $17 billion in April, a record corporate bond offering at the time. The money didn’t go to expanding the business or developing the next technology. It went to support Apple’s sagging stock price by paying fatter dividends and repurchasing stock.
Stock buybacks and dividend hikes help explain why the stock market hovers near all-time highs while the rest of the economy stagnates.
International Paper on Tuesday announced a $1.5 billion stock buyback as well as plans to raise its dividend by 17%. And do you know what it announced the very next day? Plans to lay off 1,100 people and shutter its Courtland, Ala., paper mill.
“These decisions are especially difficult because of the impact to long-serving and hardworking employees, their families and the surrounding communities,” said International Paper Chief Executive John Faraci in a news release.
This is a company with underfunded pensions, $10 billion in debt and declining demand as consumers rely more upon electronic screens than printed paper. It couldn’t have been too difficult a decision: Dump the employees, keep the investors happy, and live to collect that CEO pay.
This is what happens when economic policies grossly favor giant banks and corporations, as they have since the fall of Lehman Brothers in September 2008. The Federal Reserve has held interest rates nearly to zero and it buys $85 billion a month in securities from banks. The result of this stimulus: Big business gets billions and small business gets bubkis.
In a survey of small businesses released last week by alternative business lender Merchant Cash & Capital, 70% complained that lending had not returned to 2007 levels, and 45% called it “very difficult” to get financing.
Meanwhile, since the recession allegedly ended in June 2009, incomes for the 1% have risen 31.4% while incomes for the 99% rose only 0.4%, according to an academic study released this month. That trend helped expand the gap between the rich and poor to as great a level as in the Roaring Twenties, the study said.
For five years, artificially low interest rates have punished savers, rewarded borrowers, and perverted economic incentives. Big companies don’t have to produce much when there’s always another refinancing option on the horizon. That’s one reason why job creation—the true measure of an economy’s health—has been abysmal.
Somehow, though, the Fed is still mulling its intervention. It meets this week to consider dialing back its monthly bond purchases—but even if it does pare them, it will likely do so modestly, so as not to spook the market.
…
“Verizon Communications raised $49 billion in a record-smashing bond offering last week, yet it isn’t bragging about creating a single job.”
NSA pulls Verizon phone records for millions
By: John Hayward
6/6/2013 09:03 AM
Barack Obama’s Orwellian surveillance state – which has already featured abuse of the IRS to suppress his political opponents, confidential tax data on conservatives handed over to left-wing political organizations, and treating reporters like enemy espionage agents – shifts into overdrive with this morning’s blockbuster UK Guardian report that a secret court order was used to obtain the phone records of every Verizon customer in America.
http://www.humanevents.com/2013/06/06/nsa-pulls-verizon-phone-records-for-millions-of-americans/ - 51k - Cached - Similar pages
Jun 6, 2013
I sure feel sorry for whichever NSA spook is assigned the task of reviewing my Verizon phone and text records.
Sample:
Wife: “(Church) speaker loves to speak. Going way overtime with her talk. Oh well.”
Me: “Easy problem to solve…if there are both male and female speakers, have the guy go first.”
Wife: “They are supposed to end with a man but many women are wordy. Her talk could have ended 10 times and she kept going with a new thought.”
SNORE………..
Did San Diego just pass its Echo Bubble peak?
And how often do sales drop 9.5 percent from July to August? I thought August was still part of the red-hot summer sales season?
Fewer all-cash investors sounds to me like a worrisome development, given the belief expressed by some posters here that interest rates don’t matter in the current market.
Home prices, sales slip in August
August median drops to $415,000 but still 20.2% higher than in 2012
By Roger Showley10:33 a.m.Sept. 12, 2013
San Diego County home prices and sales slipped from July to August as the market took a breather from recent increases, DataQuick reported Thursday.
The median price last month was $415,000, down from $417,500 in July but still up 20.2 percent from year-ago levels.
Sales also were lower, down 9.5 percent from July to 4,099 transactions, a not uncommon seasonal dip. The total was up 3 percent from August 2012.
DataQuick President John Walsh said the trends, generally consistent across the six-county Southern California region, reflect fewer all-cash and investor buyers, still-tight inventory and rising mortgage rates.
“There’s something for everyone in today’s housing data,” Walsh said in a statement. “Sellers have seen an amazing price jump from just a year ago, allowing many to finally sell at a profit.”
Freddie Mac’s weekly primary mortgage market survey, also released Thursday, showed the 30-year, fixed-rate loan unchanged at 4.57 percent from last week, not counting origination fees. The most recent low was 3.4 percent in April.
“As we head into fall and winter, a slower time of year,” Walsh said, “we’ll probably see year-over-year price gains continue to taper.”
Michael Lea, a real estate professor at San Diego State University, said he was not surprised by the price dip but was “a little puzzled” that sales are not rising as fast as they should at this point in the economic cycle.
“I would have thought sales would be picking up,” he said.
After all, Lea noted, many homeowners have left the underwater-mortgage years, when their homes were worth less than their mortgages. They also are aging and want to move to a smaller home or are growing their families and need bigger homes.
“I would expect more of those sales to be going on,” he said.
The explanation may be that would-be sellers are sitting on their homes expecting prices, which rose 20.2 percent over the last year to repeat that feat in the next year. If they did, the median price for all homes in August 2014 would stand at $499,000, not too far from the all time peak of $517,500 in November 2005.
“I don’t expect that” to happen, Lea said.
…
Stuff like this reminds me things get stranger and stranger:
http://www.alaskadispatch.com/article/20130903/gold-miners-near-chicken-cry-foul-over-heavy-handed-epa-raids
Did our forefathers ca. George Washington’s time feel more ambivalence about government reach?
Summers withdrawal from the Fed Chair race is bullish for stocks and gold. Not so much for the dollar.
I have a feeling Wall Street is about to have a very good week!
Sept. 15, 2013, 10:24 p.m. EDT
Dollar falls as Summers quits race to lead Fed
By Michael Kitchen, MarketWatch
LOS ANGELES (MarketWatch) — The U.S. dollar traded lower Monday after former U.S. Treasury secretary Larry Summers removed himself from consideration to be the next head of the Federal Reserve.
The ICE dollar index (DXY -0.53%) — which tracks the greenback against six rivals — fell to 81.083 from 81.520 late Friday in North America.
…
Sept. 15, 2013, 8:00 p.m. EDT
Death of 1,000 cuts for Summers
Commentary: Ex-Treasury secretary had hand in too many bad decisions
By MarketWatch
WASHINGTON (MarketWatch) — The one thing that can be said for Larry Summers is that it’s not all his fault.
It’s not all his fault that Glass-Steagall Act separating commercial and investment banking was repealed.
It’s not all his fault that over-the-counter derivatives went (and are going) unchecked by regulators.
It’s not all his fault that Harvard’s endowment lost nearly $2 billion on an interest-rate bet gone bad.
It’s not all his fault that the stimulus law didn’t prove massively stimulating to the economy.
It’s not all his fault that TARP restored bank profits, and kept bank bonuses whole, before it restored bank lending or the broader economy.
And it’s not all his fault that his chief ally in Washington, President Barack Obama, is neither feared nor beloved by lawmakers on Capitol Hill.
But the cumulative weight of all those not-entirely-his faults, along with some appalling judgment that’s entirely his blame (like the ethically dubious decision to work for Citi after helping steer the law that allowed for the bank’s very existence) that led to him being too toxic to be confirmed as a Federal Reserve chairman.
Obama is left with some pretty good alternatives, notably Janet Yellen — if he’s not too personally offended by the Senate and economists campaigning for her.
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