January 27, 2014

Bits Bucket for January 27, 2014

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

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Comment by Carl Morris
2014-01-27 00:39:15

Regarding the possible meltdown here, I don’t know. I can’t see it from the factory. Everybody is happy and heading home for Chinese New Year. Nobody is thinking about banks.

Meanwhile it’s getting quiet and boring. One more full workday and then we leave. Everything seems stable and quiet. Fruity overlords want us back in a little over a week. Don’t know if management will give us to them. Some tension since nobody can commit to anything until mgmt commits.

Meanwhile after the December debacle I’m asking for a parachute if they want to send me back since I’m not being given any time at home to job hunt as an insurance policy. Can’t get any response there either. Only a few days left for everything to come to a head. Could get exciting.

Comment by Whac-A-Bubble™
2014-01-27 04:12:59

Sounds quite exciting for you on a personal level, anyway…Good luck!

Comment by albuquerquedan
2014-01-27 06:03:48

Yes it sounds like the Chinese curse, may you live in interesting times.

Comment by oxide
2014-01-27 06:25:34

“No response” is a bad sign. So you believe that your new manager kept you on only because he was saving you for the China trip?

IT is turning into migrant freelancing.

Comment by Carl Morris
2014-01-27 06:56:08

I gave he and the CEO and CFO until Feb 1st…they could just be procrastinating for now. But yeah…if the goal is to get rid of me as soon as possible I’d rather find out sooner while they still need me than later when they don’t.

I’ve only been there 3 years so it’s not like I’d normally get a whole lot of severance if they get rid of me this year. So I’d like to negotiate that in writing before I go back to China.

I don’t know what to believe…not sure it matters. Severance commitments are free if they don’t use them.

Comment by Janet Felon
2014-01-27 14:49:58

Why would they tell you while they still need you? That’d be stupid for them, as they’d jeopardize their own interests. They’re not interested in yours.

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Comment by Carl Morris
2014-01-27 17:17:17

Of course not…and that’s why I want my severance arranged in writing prior to traveling again. If they refuse to give it to me then I know what I need to know before I put myself out for them.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 10:17:05

Do factory workers usually think about banks?

Comment by In Colorado
2014-01-27 12:51:05

Do factory workers usually think about banks?

They’re probably too enthralled with “Dancing With The Red Stars” to think about stuff like that.

People are smart!

Comment by Janet Felon
2014-01-27 14:53:14

“Do factory workers usually think about banks?”

Only as they’re flying by them, after jumping from the top floor of the factory.

Comment by Housing Analyst
2014-01-27 03:52:49

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

In other words, don’t buy housing at these massively inflated prices.

Don’t Be A Debt Donkey®

Comment by azdude02
2014-01-27 07:27:11

rich people make money off their assets while poor people punch a time clock for the rich people who have a large pool of unemployed to choose from.

Is any of this new found wealth from asset manipulation going to find its way down to the person punchn the time clock?

Comment by Blue Skye
2014-01-27 08:15:37

Quite the contrary. The poor guy rents the assets from the rich guy, so things continue to get more lopsided until something snaps.

Comment by Professor Bear
2014-01-27 22:35:18

It strikes me as somewhat contradictory that the Democrats are so eager to give wealthy homeowners a de facto upper hand over relatively less wealthy renters. The Democrats used to be the defenders of the poor and oppressed; I guess they now represent the interests of wealthy foreign real estate investors over poor U.S. renters?

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Comment by tresho
2014-01-29 15:18:28

The Democrats used to be the defenders of the poor and oppressed
That’s merely a cover story for what they are really about.

Comment by Housing Analyst
2014-01-27 03:54:05

Realtors Are Liars®

Don’t let yourself get ripped off by them.

Comment by CarrieAnne
2014-01-27 11:25:55

And here’s the proof:

Shifts among homeowner rates by profession lowest in what profession?


Comment by Whac-A-Bubble™
2014-01-27 04:13:59

Is the emerging markets turmoil already over by now?

Comment by Whac-A-Bubble™
2014-01-27 04:16:37

GLOBAL MARKETS-Emerging sell-off hits European shares, lifts yen
By Natsuko Waki
LONDON Mon Jan 27, 2014 2:40pm IST

Jan 27 (Reuters) - Emerging markets led a global sell-off in risky assets on Monday as European stocks followed sharp falls in Asia and safe-haven assets such as the yen and gold rallied.

Concerns about China’s economic slowdown and its shadow banking sector, coupled with expectations the Federal Reserve would scale back its bond buying further, are piling pressure on emerging markets dependent on external financing.

Political risks in Ukraine, Turkey and Thailand as well as a looming financial crisis in Argentina are compounding the problem of emerging markets in a week when the Fed is expected to cut its monthly bond purchases by another $10 billion.

In Europe, a German media report which cited an OECD study that showed European banks have a combined capital shortfall of about 84 billion euros also hit sentiment.

“Sudden fears about emerging markets and also potential capital shortfalls for some European banks are rattling investors. People have been a bit complacent lately, so it’s quite logical to get a correction,” said David Thebault, head of quantitative sales trading, at Global Equities.

MSCI world equity index fell 0.6 percent, its lowest in more than a month, following Asia’s decline of 1.6 percent.

The benchmark emerging stock index hit a 4-1/2 month trough, falling 1.6 percent on the day. Emerging stocks are the worst performing asset so far this year, with year-to-date losses of 5.2 percent.

U.S. stock futures are pointing to a firmer open, after the S&P 500 index posted its worst week since June 2012 last week.

European stocks are down 0.6 percent. Banking stocks lost more than half a percent.

“There’s a sea of red in Asia and that spills over into Europe and should give some support to safe-haven assets,” said Nick Stamenkovic, bond strategist at RIA Capital Markets.

Comment by Whac-A-Bubble™
2014-01-27 04:22:25

Is it still 2013 in China?

January 27, 2014, 4:43 a.m. ET
Global Selloff Turns to Asia — 2nd Update
By Daniel Inman

Investors are souring on China as warning signals pile up on the world’s second-biggest economy, spurring a broad plunge in markets across Asia Monday and adding to a global selloff.

Japan was hit especially hard, with the Nikkei slumping 2.5% to its lowest level in two months and taking its losses to 7.9% this year as a rising yen hurt the outlook for exporters. The largest moves in 2013 though are in the widely-traded Hang Seng China Enterprises Index which tracks Chinese companies listed in Hong Kong, down 9.5% this year as fears rise over Beijing’s slowing and debt-laden economy.

The sharp turnaround in sentiment toward China brings to an end the optimism seen in the final few months of last year following the government’s reform blueprint announced in November. Global money managers are now fretting over how safe the country’s unregulated shadow-banking sector is and how slow its economy is growing, adding to worries elsewhere in developing markets from Argentina to Turkey.

The main thing we need to think about is China. Is money going to flow out because everyone is thinking China is going to slow down?” said Kevin Foy, director, global head of sales in Singapore trading at Maybank Kim Eng, the brokerage arm of Malaysia’s largest bank by assets.

Some hope emerged Monday when an agreement was reached to help resolve a troubled investment product that is being closely watched for signs of weakness in China’s shadow banking sector. China Credit Trust Co. said it would restructure the loan behind a 3 billion yuan ($496 million) product, potentially alleviating the chances of a default that could have rippled through the financial system.

But the move did little to bolster the country’s financial markets, which have had a rough start to the year. In the last two weeks, short-term borrowing costs spiked higher as banks hoarded cash before the Lunar New Year holiday, sparking fears of a liquidity crunch. Meanwhile, a report Thursday showed that conditions in the manufacturing sector had deteriorated, exacerbating worries about how the global economy will fare as the U.S. pulls back from aggressive monetary easing.

Those worries have added to problems in a wide range of other developing countries and fueled the broad selloff that started in emerging markets and has now spread to more developed markets including the U.S. and Japan. The selling has also been fueled by uncertainty over how soon the bond-buying program will be scaled back by the Federal Reserve, which meets Tuesday and Wednesday.

A number of issues have all come together,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital in Sydney. Problems “have been bubbling away for a while now, but when they hit the screen at the same time, it appears like there is a problem in emerging markets.”

Comment by Whac-A-Bubble™
2014-01-27 04:24:52

Asia, Europe Stocks Sink on Global Economy Fears
HONG KONG January 27, 2014 (AP)
By KELVIN CHAN AP Business Writer
Associated Press

Asian and European stock markets were pummeled Monday by the possibility of slowing growth in China and a further reduction in U.S. central bank stimulus.

Asian stocks ended sharply lower as investors sought out havens such as the Japanese yen, which strengthened to a seven week high against the dollar, and gold, which was at its highest in more than two months. Japan’s Nikkei briefly dipped below 15,000 for the first time since mid-November.

In early European trading, the FTSE 100 index of leading British companies dropped 1 percent to 6,600.26 while Germany’s DAX dropped 0.5 percent to 9,342.80. France’s CAC 40 fell 0.4 percent to 4,142.70. U.S. stocks were poised for a small rebound after tumbling last week. Dow futures edged up 0.1 percent to 15,836.00. Broader S&P 500 futures climbed 0.3 percent to 1,788.40 .

Investors were awaiting a two-day meeting of the U.S. Federal Reserve starting Tuesday, where officials are expected to reduce the central bank’s monthly bond buying by another $10 billion to $65 billion. Recent signs of a sustained recovery in the world’s biggest economy will play a big role in the decision by Fed officials to scale back stimulus for a second time.

Stock prices in emerging markets have been propped up for years by investors seeking higher returns using a tide of so-called “easy money” from the Fed and other central banks. But now that the end for those policies looks to be near, some investors are fleeing stocks. The capital flight has slammed some places particularly hard, such as Argentina, where the peso dropped 16 percent against the dollar over two days last week.

The growing turmoil in emerging markets is inflicting damage on risk assets across the board and no letup is expected in the near term,” said Mitul Kotecha, head of global markets research for Asia at Credit Agricole CIB, in a report.

The global sell-off was triggered by the preliminary results Thursday of a survey showing that China’s massive manufacturing industry would contract in January for the first time in six months, the latest sign that a painful slowdown in the world’s No. 2 economy is likely to continue.

We’ve seen brief slowdowns in China before,” said Michael Every, head of financial markets research for Asia-Pacific at Rabobank. “The difference is we don’t expect to see rapid acceleration again this time, because they’re trying to clamp down on credit growth to prevent nonperforming loans going even higher than they are.

Investors are more sensitive to turmoil in emerging markets such as China because they’re playing an increasingly large role in the world economy. Emerging and developing economies account for nearly 40 percent of the global economy, up from 18 percent two decades ago, with China’s share zipping to 14 percent from 4 percent, according to Societe-Generale.

Japan’s Nikkei 225 nosedived 2.5 percent to close at 15,005.73. The yen has strengthened significantly in the past few days, which is negative for export stocks.

Hong Kong’s Hang Seng lost 2.1 percent to 21,976.10 and Seoul’s Kospi dropped 1.6 percent to 1,910.34. In mainland China, the Shanghai Composite Index dropped 1 percent to 2,033.30. Benchmarks in Taiwan, Singapore, Philippines, Indonesia and New Zealand also slipped.

Comment by Whac-A-Bubble™
2014-01-27 04:28:26

ASIA CREDIT CLOSE: Asian equities, credits sink on safe-haven flight
Mon Jan 27, 2014 2:23pm IST

SINGAPORE, Jan 27 (IFR) - There was a sea of red in both the equity and credit markets in Asia as investors sold off risky assets for safe-haven bids.

Stocks in Japan closed more than 2% lower, while those in China, Hong Kong and Singapore were trading more than 1% down.

The iTraxx Asia IG Index was about 2bp wider, recovering a touch from a 3bp widening in the morning. Indonesia’s 5-year CDS pushed out 5bp and the Philippines CDS were 3bp wider.

The cash bonds of the two sovereigns were also not faring well. Indonesia’s 2024s slumped to 101.40/101.70 from above 103 in the middle of last week, while the 2044s were at 99.70/100 from 102.5 last Wednesday.

The Philippines’ new 2024s were only slightly lower at 101.00/101.50, versus 102.00, but will face pressure if risk sentiment continues to deteriorate.

Investors continued to fret about the economic slowdown in China and an increased cutback in the US Federal Reserve’s accommodative policy. This comes at a time when a heavy issuance volume in the Asian US dollar market in January is again weighing on the markets.

Year to date, some USD19.5bn of bonds have been sold, just short of the USD22.6bn record issuance in January 2013. Last week alone, nine deals of a combined USD3.1bn were printed and one that broke the camel’s back was Wanda Properties’ 10-year issue, which priced 455bp over US Treasuries.

Comment by Whac-A-Bubble™
2014-01-27 04:33:08

5:29 am Jan 27, 2014
Are Emerging Markets Set to Get Even Uglier?
By Ben Edwards

A brutal selloff in emerging markets across the globe last week has renewed concerns about the impact the U.S. Federal Reserve’s withdrawal of monetary stimulus is going to have on the world’s developing economies. Here’s a quick rundown of how investors and analysts are reacting to the turmoil:

Kit Juckes, macro-strategist, Societe Generale

Despite the emerging-market turmoil, the Federal Reserve will likely press ahead with plans this week to reduce the pace of its bond-buying program by another $10 billion a month, reckons Mr. Juckes. That won’t ease market tensions though, he says. For one, the current period of market turmoil has been exacerbated by regional flare-ups, such as political strains in Turkey and Argentina. “There are too many fires burning to expect them to all blow out simultaneously,” he said. “”In equities, credit and across much of EM the message is simple – the storm is very definitely not over.

Lee Hardman, currency analyst, Bank of Tokyo-Mitsubishi UFJ

Last week’s selloff is making investors more risk averse, with a flight to quality causing U.S. Treasury yields to decline, Mr. Hardman says. The tapering of the Fed’s bond-buying program is serving to further reinforce investor jitters about countries such as Turkey and South Africa that have elevated current account deficits, he said. “We still expect the Fed to announce that it will taper quantitative easing by a further $10 billion in the week ahead as economic conditions in the U.S. have not diverged significantly from their expectations,” he said.

Comment by Biggvs Richardvs
2014-01-27 16:42:01

“…concerns about the impact the U.S. Federal Reserve’s withdrawal of monetary stimulus is going to have on the world’s developing economies.”

Stop and really think about that for a moment.

The Federal Reserve™ represents a tax on the purchasing power of your hard earned dollars. Every time they create new money (~$100,000,000,000.00 per month currently) they exercise a very real tax upon the purchasing power of your dollars, with no representation whatsoever of your interests or wishes as a citizen.


Basically legalized, state sanctioned counterfeiting, only benefitting a tiny few shareholders in said Federal Reserve™ and a few of their friends, the rest of us be damned. Unless of course you actually still believe the whole trickle-down mythology, in which case you’re pretty much beyond help, but I digress.

Now we find out that this tax levied upon us, with no input or representation, and NO PUBIC BENEFIT, is also being used to prop up third world economies. At YOUR expense.

All this supposedly in the name of providing economic stability through liquidity injections by an entity (supposedly)independent of politics.

I propose the following changes to the Federal Reserve™ system:

1. Audit the Fed, with all records to be made public unless overwhelming evidence on a case by case basis is presented that revealing a particular transaction would represent an immediate threat to national security.

2. No new monies will be created by the Fed unless directly authorized by congress.

3. The fed will then create monies duly authorized by congress and disburse them through the “normal” channels( Discount window, etc.)

This seems like the best compromise. I understand the occasional need to “inject liquidity” like during the Great Depression I when banks and everyone was hoarding dollars, bringing commerce in general to a grinding halt. It also keeps the disbursement of the new monies independent, while preserving the right of the people to have representation in its creation.

Unfortunately what we ended up with is “the creature from Jekyll Island” as Griffin named it, and basically a system of institutionalized corruption in the worst of all places: our money supply. It’s time to demand a rational, peaceful end to this status quo, before it’s too late.

“And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.” –Thomas Jefferson, Letter to John Taylor 1816

Comment by Whac-A-Bubble™
2014-01-27 04:37:00

U.S. investors should have little to fear, as we have decoupling. Plus the flight-to-quality into U.S. Treasury bond purchases pushes down U.S. interest and mortgage rates. So go out and borrow money at super low rates in order to heavily load your portfolio with U.S. houses and stocks, resting assured that the U.S. stock and real estate markets are destined to keep always going up in 2014.

Comment by azdude02
2014-01-27 06:56:57

deflation is a threat to the asset ponzi scheme.

Comment by Whac-A-Bubble™
2014-01-27 04:39:02

Who moved my BRICs?

Here’s your emerging markets cheat sheet
January 24, 2014, 2:00 PM

As emerging markets from Argentina to Turkey to South Africa tumble, Neil Shearing at Capital Economics is stressing that investors shouldn’t lump them all together. These countries, he says, are no longer as homogenous as they were even just a decade ago.

Here’s how he breaks them down into five groups (though the labels come from MarketWatch):

Serial bad boys, or countries where what he calls “serial mismanagement by the authorities” is now a risk to economic stability. Poster children include Argentina, Ukraine and Venezuela. On Friday, stocks in Argentina slid amid fears of a financial crisis there following a devaluation of the currency and the easing of restrictions on dollar purchases.
The spendthrifts. These countries have been living beyond their means and are most vulnerable to the end of easy-money policies by the Fed and other central banks. Take a bow, Turkey, South Africa, Chile, Peru and parts of South East Asia.
Oh my aching head: These are countries that he says still have a hangover from the last boom. These are mainly in Emerging Europe, Capital Economics says. Hungary and Romania stand out. As a group, the risk is that the euro zone’s financial problems could flare up again and spill eastward.
Homeboys, or countries with domestic structural problems. This is the biggest group and begins with the BRICs – Brazil, Russia, India and China. The story there is more domestic, rather than what happens in Europe or with the Fed. Worries about a slowdown in Chinese growth after a surprise contraction in factory output there kicked off the latest emerging-market selloff. Also read: Craig Stephen on the pain is beginning in China.
The strivers. The outlook is brightening in these good-news countries. Hello, Korea, which will benefit from better economic conditions in key export markets. There’s the Philippines, which should see the benefit of economic reforms, and Mexico (a two-fer).

Comment by albuquerquedan
2014-01-27 06:40:25

If you want to create your own list, just pick up a copy of the Economist and turn to close to the last page, with all the data on countries. Now, look at the countries with the large Current Account Deficits, it is these countries that are very vulnerable to collapse.

Comment by albuquerquedan
2014-01-27 06:43:32

PS on the list you will find the U.S. and Canada. Our CAD is actually larger than Pakistan’s CAD on a percentage of GDP basis.

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Comment by Whac-A-Bubble™
2014-01-27 04:40:25

Jan. 26, 2014, 10:44 p.m. EST
Taper threatens Hong Kong property
By Craig Stephen

HONG KONG (MarketWatch) — You might not expect the Argentine peso to have much in common with Hong Kong property, but they both could be casualties of tightening by the U.S. Federal Reserve.
Enlarge Image

Last week’s plunge in the peso USDARS +0.85% has been a sharp reminder of the risks of Fed tapering, and it has renewed fears that Hong Kong’s bubbly property market could soon be tipped over.

This means Hong Kong will be watching particularly closely when the Fed issues its latest policy statement later this week. A continuation of tapering (reduced bond buying) could jolt both local property and equity markets. Despite the influx of mainland Chinese listings in recent years, property stocks still represent a quarter of the Hong Kong equity market, as judged by the market value of the MSCI Investable Universe Hong Kong Index.

The reason Hong Kong property is singled out as a potential taper causality is due to the extent it has gained from quantitative easing in the U.S. The longstanding currency peg to the U.S. dollar means Hong Kong has had to import the ultra-loose U.S. monetary policy, which has left the territory awash with cheap money.

It was during this period of successive Fed QE that Hong Kong banks introduced rock-bottom mortgages based on interbank rates, which helped propel property prices to record highs. Since 2007, property price have increased over 100% despite a succession of measures by the Hong Kong government to tame the market, including heavy transaction taxes for non-residents.

Now analysts warn that a policy shift by the U.S. Fed can do what seemed beyond the power of Hong Kong’s government: it can reverse property prices.

Comment by Whac-A-Bubble™
2014-01-27 04:43:54

Gordon G. Chang, Contributor
I write primarily on China, Asia, and nuclear proliferation.
Op/Ed | 1/05/2014 @ 4:20PM |12,467 views
Your Best Investment In China In 2014

Chinese residential property prices continued their relentless climb in December. The China Real Estate Index System (CREIS) reports that the average price of new homes in 100 cities jumped 0.7% from November, the 19th straight monthly increase. In November, the comparable figure was just about the same, 0.68%.

CREIS also reports prices increased 11.5% in December over the same month in 2012, the biggest year-on-year improvement since August 2011.

These month-on-month and year-on-year figures roughly track those from other surveys. Residential property ended 2013 as the winner in China. Forget stocks, trust investments, or bonds. The best place to be in China last year was in homes.

How can that be when the country is littered, from one end to the other, with “ghost cities”? The oversupply of residential units can only be described as horrendous. There was, according to Liu Yuanchun of People’s University, 1.46 billion square meters of housing unsold at the end of September, equivalent to 10 months’ sales.

There is no indication the situation has improved since then. Capital Economics, for instance, estimates that there are now more than 3 million unsold units held by listed developers, a million units more than their inventory two years ago. That’s an all-time record.

In a normal economy, an overhang of this sort would depress prices, but in China many developers do not have to dump units because they are not allowed to go bankrupt. Cities have informal quotas for business failures, so the country now has zombie developers, dead but still walking.

Yet the general aversion to bankruptcy is only one factor why residential property keeps soaring. The most important reason is that there is too much money in China and as long as the central government maintains an ultra loose monetary policy, the Chinese people will continue to buy apartments as their best inflation hedge.

Comment by Whac-A-Bubble™
2014-01-27 04:47:02

Market Pulse Archives
Jan. 26, 2014, 7:47 p.m. EST
China halts transfers at Citi, other banks: report
By Michael Kitchen

LOS ANGELES (MarketWatch) — Citigroup Inc.’s C -2.74% China branches, and possibly other banks, have stopped all cash transfers for three days and all currency conversions from yuan for nine days, Forbes reported Sunday via an article by contributor Gordon Chang. Citi reportedly made the announcement in a notice on its web portal for Chinese customers, saying the move was a result of “system maintenance of People’s Bank of China,” a reason Forbes’s Chang described as “preposterous.” MarketWatch couldn’t immediately confirm the report. Chang said the move was similar to action taken in June and December of last year. “In June, for instance, the central bank used the excuse of a ’system upgrade’ to allow banks to shut down their ATMs and online banking platforms. As a result, they conserved cash and thereby avoided a nationwide meltdown,” Chang wrote.

Comment by Whac-A-Bubble™
2014-01-27 04:48:10

Jan. 27, 2014, 6:35 a.m. EST
Emerging-market currencies drop again
Turkish lira and South African rand take hit
By Katie Martin and Peter Nurse

The start of a fresh week offered no reprieve in the shakeouts for key emerging-markets currencies Monday, with the Turkish lira extending its record-breaking slide, South Africa’s rand wilting further and other markets caught in the rush to safety.

A mix of local emerging-market strains, nerves over the fallout from the U.S. Federal Reserve’s plans to reel in monetary stimulus and patches of weak economic data from China have caused investors to pull back from riskier bets in recent trading days. On Friday, that morphed from localized selloffs to a broad flight to safety — a pattern that is now persisting.

Markets in Asia fall sharply on fears over China’s growth and uncertainty about the impact of the Fed’s tapering on emerging markets. The WSJ’s Jake Lee tells us why things may get worse in Asian markets.

“It started as a set of issues around individual countries and currencies, and then it became ‘sell everything that is not G-10,’“ said Daragh Maher, a currencies analyst at HSBC in London.

Opinion is split over whether that will continue. The Polish zloty is now a good one to watch as a reference point. This is a liquid market with good fundamentals. If it gets sold off, it is because investors are taking a wider disdain to emerging markets.

Comment by Whac-A-Bubble™
2014-01-27 04:50:00

Top Trades in Disarray Amidst Emerging-Market Rout: Currencies
By Ye Xie, Anchalee Worrachate and John Detrixhe
Jan 27, 2014 12:08 AM PT

It’s less than a month into 2014 and already currency strategists are seeing their top trade recommendations for the year upended by the rout in emerging markets.

Buying Mexico’s peso versus the yen has lost about 1 percent since Bank of America Corp. named the trade one of its top picks in November, with a targeted return of 9.4 percent. Danske Bank A/S exited a trade this month buying Turkey’s lira versus Denmark’s krone at a loss of 2.9 percent. Of 31 major emerging-market currencies, 13 have already weakened beyond their median year-end forecasts in Bloomberg analyst surveys.

Traders either made their year or lost their jobs in the last week,” Douglas Borthwick, the head of foreign exchange at Chapdelaine & Co. in New York, said by phone Jan. 24.

Comment by Whac-A-Bubble™
2014-01-27 04:52:02

Emerging market rout hits Asian currencies
SINGAPORE Mon Jan 27, 2014 1:51pm IST
Malaysian ringgit bank notes of different denominations are seen in this picture illustration taken in Kuala Lumpur August 20, 2013. REUTERS/Bazuki Muhammad/Files

(Reuters) - Most emerging Asian currencies tumbled on Monday as a global sell-off of riskier assets intensified, pulling the Malaysian ringgit and the Philippine peso to their lowest levels in more than three years.

Financial turmoil in Argentina, fears of a sharper slowdown in China and expectations that the U.S. Federal Reserve will continue to trim its bond-buying programme later this week have sparked a broad bout of risk aversion and a flight to safer assets such as the yen.

The Indonesian rupiah led slides in Asian currencies, shedding 0.4 percent against the dollar, as it is seen more vulnerable to the Fed tapering than other Asian currencies because of the country’s current account deficit.

The rupiah has eased 0.5 percent so far this year, outpacing most of its regional peers, according to Thomson Reuters data.

The ringgit fell as much as 0.4 percent to 3.3455 per dollar, its lowest since May 2010, pressured by selling by offshore funds, including real money accounts, traders said.

The peso lost up to 0.3 percent to 45.45, its weakest since August 2010 amid market talk of selling from real money funds, traders said.

South Korea’s won slid as much as 0.7 percent to 1,087.7, its weakest since September 13, as offshore funds such as model accounts unloaded the currency.

Foreign investors dumped a net 514.6 billion won worth of stocks in Seoul’s main exchange, the largest daily selling since December 12, according to the Korea Exchange data.

Comment by Whac-A-Bubble™
2014-01-27 04:53:23

Emerging Stocks Sink to Four-Month Low as Currencies Extend Drop
By Harry Suhartono and Lilian Karunungan
Jan 27, 2014 12:49 AM PT

Emerging-market stocks fell to the lowest level in more than four months and currencies weakened amid concern that slower Chinese growth and reduced Federal Reserve stimulus will spark more capital outflows.

The MSCI Emerging Markets Index dropped 1.5 percent to 935.81 as of 4:06 p.m. in Hong Kong, heading for the lowest close since Sept. 3. A Chinese measure in Hong Kong and equity gauges in Indonesia and the Philippines tumbled at least 1.8 percent, while the rupiah slumped for a sixth day versus the dollar and Turkey’s lira slid to a record. The cost of insuring Asian debt rose to the highest level in almost four months.

The combination of weaker Chinese manufacturing, political turmoil from Turkey to Thailand and the devaluation of Argentina’s peso has shaken investor confidence at a time when the Fed is scaling back the bond-buying program that had fueled inflows into emerging markets. Foreign investors pulled about $481 million from South Korean shares and $566 million from Taiwanese equities today, while trading volumes in Kuala Lumpur surged to 101 percent above their 30-day average.

The growing turmoil in emerging markets is inflicting damage on risk assets across the board and no let up is expected in the near term,” Mitul Kotecha, the global head of foreign-exchange strategy at Credit Agricole Corporate & Investment Bank SA in Hong Kong, said in an e-mail.

Comment by Whac-A-Bubble™
2014-01-27 04:56:52

Business Standard
Scope for further fall in emerging markets currencies
(Comment, Special to IANS)
January 27, 2014 Last Updated at 11:14 IST

Investors looking to bottom-fish and find value in the emerging markets currency basket space will do well by telling themselves: What’s cheap can get cheaper. Last week, the foreign exchange markets witnessed a sharp sell-off in the emerging markets currency space over concerns of the future policy path of the US Federal Reserve and disappointing Chinese economic data.

The last couple of quarters have witnessed a massive outflow of funds from emerging markets (EM) currencies into (developed markets) DM currencies as economic growth in the developed world reverts back to pre-crisis levels. The South African rand, the Brazilian real, the Turkish lira and the Mexican peso all depreciated more than two percent against the US dollar last week.

Historical price levels were reached last week with the lira plunging to a record low. The rand also dropped to its lowest level in five years while the real fell to a six- month low. The hardest hit was the Argentine peso, which witnessed its largest intra-day fall last week and has given up about 18 percent of its value this year.

Foreign exchange reserves of many of these nations are running out at an alarming speed due to an effort to shore up their currencies. Turkey, for example, last week spent in excess of $3 billion to provide support to its dwindling currency. But its reserves stand at a mere $33 billion now, and clearly this intervention in the fx market cannot continue.

Currency strategists are expecting another leg down in the EM currency space to the extent of 5-10 percent. The price action in the EM currencies has also impacted major DM currency pairs such as the dollar/yen, pound/dollar and the aussie/dollar. Risk aversion and an inflow of money into the US dollar, which is viewed as a safe haven currency usually leads to a sell off in these pairs.

It is important to note here that Australia wants its dollar to be trading close to 0.85 to the US dollar, while Japan via its own quantitative easing measures is attempting to further weaken the Yen driving it past the 105 level. But the momentum to the downside in the Australian dollar may drive it past the 0.85 level in the coming weeks and the Yen can further strength against the dollar.

Thus, although it is a very low probability scenario, if the sell off in the emerging currency market does not abate, we may see some foreign exchange intervention from the Australian and the Japanese central banks.

Emerging market countries worst hit by their depreciating currencies will have to address domestic structural problems to prevent future speculative attacks which take their currencies to massively oversold levels.

Lessons can be taken from India in this respect, which via various measures has managed to the stabilize the slide in the Rupee over the last six months. The Indian Rupee has largely outperformed its peer EM currencies this year.

The ideal trading strategy to deploy for the EM currency space for now is a wait and watch game. With such enormous selling pressure and liquidation out of EM currencies, picking a bottom at this point of time would be like catching a falling knife.

(Vatsal Srivastava is a senior market analyst. The views expressed are personal. He can be contacted at vatsal.sriv@gmail.com)

Comment by cactus
2014-01-27 10:41:22

What’s cheap can get cheaper.”


Comment by Whac-A-Bubble™
2014-01-27 05:52:06

The Economist
Emerging markets
It’s like 1997 all over again
Jan 27th 2014, 9:21 by P.F. | MUMBAI

“THE peso has gone to hell,” worried the Nobel-Prize winning writer V.S. Naipaul in an essay from the 1990s about Argentina. He also touched on Eva Perón’s sexual technique, beefsteak, class tensions in Buenos Aires and Jorge Luis Borges. Its limp currency is an elemental part of that South American country. And yet the news last week—that the partially pegged peso had dropped by 15%—has scared global investors.

At Davos, a gabfest for the world’s biggest egos, the talk turned from Jamie Dimon’s enormous pay packet to worries about an emerging-markets crisis. Currencies in the developing world fell to their lowest level since 2009. Along with Argentina, so Turkey, South Africa and Russia have been hit hard. There is violence on the streets of Kiev and Bangkok. The scare dragged down the S&P500 by 2% on Friday, January 24th. Then Monday morning the Asian bourses fell.

Emerging countries have already had a recent walk on the wild side: from May to August 2013, after the Federal Reserve made its first, botched, attempt to start winding down its bond purchases. At the prospect of an end to free money, funds were pulled from emerging countries that have benefited from a decade of easy inflows, and currencies and stockmarkets tanked. During the last few months of the year however things seemed to have stabilised.

Crises have a habit of coming in fits and starts, though, rather than in one big bang. For instance Thailand ran into trouble in July 1997. Four months later South Korea’s president warned his countrymen of the “bone-carving” pain to follow an IMF bail-out. It took over a year for Russia to blow up; its default didn’t happen until August 1998. The last mini-crisis took time to come to a head, too. After Argentina devalued and defaulted in 2001, many argued it was a cranky special case. But by mid-2002 the contagion had taken Brazil to the brink.

Since the sell-off of 2013, doom-mongers may argue, two things have got worse. First it has become even clearer that the rich world’s central bankers do not have much of a clue how to tame the beast they have created in the form of ultra-loose monetary policy. Ben Bernanke, the outgoing Fed chief, chairs his last policy meeting on January 28th and 29th. The Fed is expected to trim its bond purchases by a further $10 billion, to $65 billion a month. No doubt this will be accompanied by a torrent of elegant verbiage to show that the Fed is in command. But sceptics should look at Britain, where the newish central bank boss, Mark Carney, has abandoned the framework he put in place only half a year ago. It was supposed to govern the pace at which monetary policy would return to an even keel. The process of normalising central banks’ balance-sheets is going to be mighty unpredictable and disruptive.

The second change for the worse is that the emerging world’s recovery in exports looks tepid. The hope had been that as the Western world grew faster it would suck in more goods from emerging economies, helping them to improve their current-account balances and making them less dependent on foreign capital inflows.

Comment by In Colorado
2014-01-27 08:28:26

The hope had been that as the Western world grew faster it would suck in more goods from emerging economies, helping them to improve their current-account balances and making them less dependent on foreign capital inflows.

Dear Emerging Markets:

Since we exported too many jobs to you, we’re broke and can’t afford to buy stuff from you, regardless of how cheap it is.

And for those retail investors who like to invest in emerging markets, beware of the following:

1) Sudden, overnight currency devaluations. Your locally denominated investments could instantly lose half their value or more. And even if they are denominated in USD, they could by decree be converted into local currency at unfavorable exchange rates (this happened in Mexico)

2) Trapped investments. You might not be allowed to repatriate your capital and you will have the joy of watching it get clobbered by serial currency devaluations (again, this happened in Mexico)

3) Confiscation. We worry about Obama “confiscating” our wealth, but it’s far more likely to happen in a 3rd World Sh!thole. And since you are a “yankee” the locals will celebrate your loss.

Comment by jose canusi
2014-01-27 09:30:32

Right ON, brothah!

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Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 11:21:43

I’ve never understood why we call these markets “emerging”, even though most of them have been around much longer than us.

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Comment by In Colorado
2014-01-27 13:00:36

I’ve never understood why we call these markets “emerging”

I think the idea is that they are “growing” their middle class. The problem of course is that they have a very different definition of “middle class” than we do. A family of five, squeezed into a 600 square foot apartment with a single, ten year old beater car (if they’re lucky) is “middle class”.

These folks cannot afford the goods and services they produce, which are meant to be for export. Remember, everyone wants to be a net exporter, meaning that we and Western Europe are supposed to buy all this stuff.

Comment by Professor Bear
2014-01-27 22:36:33

Would “submerging” markets be a more apt moniker?

Comment by cactus
2014-01-27 10:44:19

First it has become even clearer that the rich world’s central bankers do not have much of a clue how to tame the beast they have created in the form of ultra-loose monetary policy.”

hahaha yep

Comment by Whac-A-Bubble™
2014-01-27 05:57:04

A global tour of the emerging-markets currency crunch
By Tim Fernholz @timfernholz January 26, 2014
The “Asian contagion” of 1997-98 sent the value of Indonesia’s rupiah tumbling. AP Photo/Charles Dharapak

The big markets news at the end of last week was the plunge of Argentina’s peso. The sell-off came as many other emerging-market currencies were already sliding:

Emerging-market currencies chart

What’s driving these trends is the intersection of the US Federal Reserve’s decision to slow its bond-buying stimulus—the so-called “taper,” which has been fueling a sell-off in emerging markets since early last summer—with a variety of more local problems, ranging from troubled economic institutions to political unrest and bad economic data in China. But a smart note from London’s Capital Economics, highlighted by the FT’s Izabella Kaminska, provides a helpful taxonomy of what different emerging economies are going through and, more importantly, whether one country’s problems could prove contagious to others, as happened during the currency crises of the 1990s. We’ve broken it down with the following maps.

Comment by albuquerquedan
2014-01-27 06:04:58

No, but nothing goes straight down or up.

Comment by Whac-A-Bubble™
2014-01-27 07:03:36



Stock Sell-Off Continues in Markets
JAN. 26, 2014

BRUSSELS — Global stocks picked up Monday where they left off last week, with key indexes falling from Tokyo to London and emerging markets losing more ground amid fears of capital flight.

Markets slumped across the Asia-Pacific region, with the Japanese benchmark Nikkei 225 dropping 2.5 percent to its lowest close since November.

Selling in Europe was more restrained, with the Euro Stoxx 50 index of blue-chip companies in the euro zone barely down in morning trading. But the London benchmark FTSE 100 index slid as Vodafone Group shares tumbled 7 percent after AT&T announced that it would not make an offer for the British cellphone giant.

“We’re clearly favoring the developed world over emerging markets at the moment,” Philippe Gijsels, the head of research at BNP Paribas Fortis Global Markets, said. Investors had become cautious amid signs that some countries, including India, South Africa and Turkey were having trouble.

But what’s basically happening is that markets were overbought and they’re looking for an excuse to sell,” Mr. Gijsels said. “I don’t think this changes the overall story, I think this will probably create an opportunity to buy.

Comment by Bill, just South of Irvine, CA
2014-01-27 20:24:41

Shoot. This market stinks. I canceled my limit order at $42 and put in a market sell at around the current price of somewhere above $29. I should get $10,000 or so proceeds - a $5,000 gain. Staffing company stock is going down the rabbit hole.

I might sell another $15,000 worth tomorrow.

Cash is king.

Now I don’t do that for stock mutual funds. Just individual stocks.

Comment by Professor Bear
2014-01-27 07:10:11

Dumb question of the day:

With all the emerging markets turmoil and flight-to-quality into U.S. Treasury bonds, is the narrative about rising U.S. interest rates due to the Fed taper pretty much dead in the water?

Comment by azdude02
2014-01-27 07:37:32

if rates go up the cost to service the debt rises. is it better to buy more treasuries or waste the money on interest to foreigners?
Interest on treasuries on the FEDs balance sheet goes back to the treasury after admin exspenses. If you were the treasury who would you rather have buying the treasuries?

are the days of working for wealth over? Isn’t just better to load up on assets such as stocks and homes?

Can you ever really get rich punchn a time clock?

Comment by measton
2014-01-27 07:54:29

Seems to me rates may decline even if the FED starts selling treasuries if the global economy tanks.

Comment by scdave
2014-01-27 08:33:38

is the narrative about rising U.S. interest rates due to the Fed taper pretty much dead in the water ??

If the emerging markets continue to falter this will give the FED cover to continue and possibly accelerate its taper…The FED does not want rates to go up any further…The world flight to T’s will hold down interest rates…

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Comment by azdude02
2014-01-27 08:46:26

the FED should buy more treasuries so more money can be handed over to the treasury so they dont need to buy more treasuries from china.

Comment by Professor Bear
2014-01-27 22:39:33

“Seems to me rates may decline even if the FED starts selling treasuries if the global economy tanks.”

I believe you are on to something, especially with a slight rephrasing:

So long as the global economy is tanking, the FED can unwind its balance sheet without causing long-term interest rates to steeply increase.

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Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 11:25:45


Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 10:53:12

Yes. Emerging markets have recovered. Today’s boogey man is “tech”. I guess the invcibility of fiberoptic cables has been breached now, so tech is down the tubes. I’m just surprised that a graduate of a vocational high school didn’t figure out how to breach a fiberoptic cable before the NSA did it a few years ago. Imagine how much money someone could have made off it. Especially considering that there is no way to detect aberrations in the amount of light traveling down a tube.

Comment by Housing Analyst
2014-01-27 12:08:29

Let’s call them what they are… Emerging Craters. They start as a small sinkhole and the diameter ever so slowly grows… Imperceptible to those who have a stake in staying on firm ground.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 12:51:17


So, is our new mascot a donkey? It would have to be a free donkey though, not a debt one. Perhaps there is a donkey out there who used to be a debt donkey, but was rescued by the HBB, who would like to be our mascot.

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Comment by Housing Analyst
2014-01-27 16:32:18

A freed donkey? I dunno. I kinda like the imagine of our Debt-Donkey in a pit with a circle and diagonal slash.

Comment by Anklepants
2014-01-27 18:39:36

I think the donkey in the hole should also have an old time divers’ underwater helmet to indicate a need to breathe while underwater.

And crossed-eyes while we are at it.

Comment by albuquerquedan
2014-01-27 06:12:01

Blow back from the gold manipulation, more voices in South Africa wanting to go down the Zimbabwe path. Should mean less production from SA. Just like lowering the price caused more demand in India, it is causing less production in SA. The physical gets more and more divergent from the paper. The problem for the Fed is that paper gold cannot be used for coins or bars.


Comment by oxide
2014-01-27 06:15:05

From yesterday (again):

Comment by Whac-A-Bubble™
2014-01-26 16:33:19
…those of us who have studied quite a bit of economics to doubt the sustainability of Echo Bubble reflation.”

Oh, I don’t think that this Echo Bubble is going to last either, certainly not at its current rate. I never said it would. Question is, as usual, when and how far will it deflate until inflation creeps up from under? The slower the deflate the less the overall deflate. Saw that in 2012 — the big bubble never totally deflated.

On a partially related note, does anyone know exactly which MBS the Fed is buying from Fannie/Freddie? Stable? Toxic? Recent? Ancient?

Comment by Whac-A-Bubble™
2014-01-27 06:58:07

“Saw that in 2012 — the big bubble never totally deflated.”

Saw what in 2012?

Comment by azdude02
2014-01-27 08:01:02

“Restoring the health of the housing market is a necessary part of a broader strategy for economic recovery.”

when are they going to figure out people dont have the jobs to support these home prices?

Jobs are the key, not home prices.

Comment by scdave
2014-01-27 08:37:51

Jobs are the key ??

Yes…I would also say wealth is another factor…

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Comment by Arizona Slim
2014-01-27 15:03:50

Housing recoveries generally FOLLOW a broader economic recovery.

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Comment by oxide
2014-01-27 08:14:59

Thank you for that report, bear. The graphs support my decision to buy.

I assume that you posted this report as proof that the government is supporting prices. But maybe you could use your insight to tell me WHEN and HOW FAR prices are going to drop after (if) this government support is removed.

Comment by Blue Skye
2014-01-27 08:36:36

“in 2012 — the big bubble never totally deflated…”

What is likely to happen to those who purchased any time in the last four years?

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Comment by Housing Analyst
2014-01-27 08:48:23

They’ll fall to reproduction costs less depreciation. You know this already.

The operative question is;

Why did you pay 3x reproduction costs?

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Comment by Professor Bear
2014-01-27 17:38:33


That unpredictable if stands in the way of my ability to forecast anything without massive uncertainty.

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Comment by Professor Bear
2014-01-27 22:45:47

“The graphs support my decision to buy.”

I am trying to figure out which graphs offer a hint regarding the long-term future trajectory of home prices versus rental rates and incomes, which seem like the relevant factors in the rent-or-buy decision. Please elaborate, as I am missing it.

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Comment by azdude02
2014-01-27 07:00:09

the cr@ppiest paper they can find I’m sure.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 11:29:59


- The Fed is lending against the junk MBS that couldn’t be sold on the free market.

- You live in a place that got targeted by the losery institutional investors. When they are forced to sell, many residences in your city will sell at auction to true all-cash buyers for a third of peak pricing.

Comment by Professor Bear
2014-01-27 22:48:51

“When they are forced to sell, many residences in your city will sell at auction to true all-cash buyers for a third of peak pricing.”

An unwinding of historically high levels of investor demand seems like a huge potential reversal in the post-2008 period in U.S. housing market dynamics, particularly given plans to taper QE3 out of existence. I’m not sure what if any hints the Fed’s early-2012 White Paper offers on this question?

Comment by polly
2014-01-27 06:29:16

The Tale of a House, and an Entire Market


Too much in here to pick the highlights, but here are the last four short paragraphs (the couple in the last two paragraphs are the current owners):

Despite their travails, all the recent owners of the house aspire to homeownership. The big winners in the boom, Mr. Ramos and Ms. Kim, went on to get burned in the bust, buying a bigger, more expensive house and losing it in a short sale. They are saving to buy again, Mr. Ramos said.

Ms. Johnson, who went into foreclosure, is less hopeful, but would like to own a home. “I do believe in having your own home,” she said. “If you’re paying rent, you’re just helping someone else pay off their mortgage.”

Martha and Jonathan Kim agree, and right now their $1,800 monthly mortgage payment is cheaper than rent would be. But in the house on Backus, more than half the rooms are sparsely furnished and rarely used, and that makes Ms. Kim uneasy.

Seated at her kitchen table, she half-joked about taking in boarders. “Sometimes I feel like we’re wasting money,” she said. “We’re just kind of sitting on too much land.”

Comment by real journalists
2014-01-27 06:40:34

“Sometimes I feel like we’re wasting money,” she said.

You are wasting money. ALOT of money.

Comment by 2banana
2014-01-27 08:32:39

Wasting money in rent or too big a house - tough decision….

Comment by Housing Analyst
2014-01-27 08:49:43

Considering rent is a small fraction of buying, renting is the obvious choice.

Comment by real journalists
2014-01-27 06:30:08

I have so much money left over after “throwing money away on rent” every month that I don’t know where to throw it.

You better believe it. Renting is always better. Always.

Comment by Housing Analyst
2014-01-27 06:42:14

“You better believe it. Renting is always better. Always.”

It’s certainly cheaper. Like 50% cheaper.

Comment by real journalists
2014-01-27 06:37:30

The Drudge Report links to article not written by real journalists titled:

“New study suggests global warming decreases storm activity and extreme weather”

Anybody can make a website but that does not make them real journalists.

Comment by albuquerquedan
2014-01-27 06:57:07

Bummer, that means over the next twenty years we are going to see more extreme weather. Bring back our sunspots!!

Comment by real journalists
2014-01-27 07:05:58

You are not a real journalist.


None of these are real journalists.

Comment by real journalists
2014-01-27 06:45:23

The Drudge Report headline is an article about a gay wedding and orgy live on stage at the Grammy Awards:

“The gay and straight weddings were officiated by Queen Latifah while the hit song about equality was performed by the rap duo with Madonna hitting the stage with them, along with Mary Lambert and jazz artist Trombone Shorty.

“This song is not a love song for some of us but for all of us,” said Latifah as she introduced the special segment.

The mass of couples exchanged rings at the same time as the singer pronounced them wed while Madonna emerged to sing her classic “Open Your Heart.”

That should rally the base for Rick Santorum’s 2016 presidential bid.


Comment by jose canusi
2014-01-27 07:19:46

Fellini was a visionary.

Comment by 2banana
2014-01-27 08:34:36

It will be interesting to see the divorce rate of the “in your face” marriages…

Comment by real journalists
2014-01-27 10:00:27

Is “in your face” some kind of coded language?

This is 2014. It’s no longer acceptable to be racis against gay people.

Comment by reedalberger
2014-01-27 13:12:20

Note to the LGBTQ community:

Nobody want’s to hear every aspect of your sexuality. Get over yourselves…Geez.

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Comment by real journalists
2014-01-27 06:49:53

Hope and Change from former NYC Mayor Michael Bloomberg:

“Our current immigration laws are national suicide,” Bloomberg said on Friday at an immigration summit in Washington. “I don’t think that’s an exaggeration.”

Bloomberg, who spent most of 2013 financing campaigns for more gun control and intends to focus on amnesty in 2014, then offered some unsolicited advice to Republicans, saying that the GOP also will not have a future if it does not embrace more amnesty.

“If you are against the fastest-growing voting bloc in the country, you and your party don’t have a future,” Bloomberg also said.

Comment by albuquerquedan
2014-01-27 06:59:14

“If you are against the fastest-growing voting bloc in the country, you and your party don’t have a future,” Bloomberg also said.

The fastest growing voting bloc in the country is lucky ducky thanks in large part to illegal immigration.

Comment by real journalists
2014-01-27 07:08:29

I don’t know what your comment is intended to convey, but it obviously wasn’t written by real journalists or cleared by real editors, and it sounds kinda racis.

Comment by Anklepants
2014-01-27 07:08:42

“Voting bloc”

How quaint.

Comment by jose canusi
2014-01-27 07:08:52

“saying that the GOP also will not have a future if it does not embrace more amnesty.”

Shamnasty would actually ensure the GOP’s death and burial. I’ve informed my rep’s office that if they do anything, and I mean ANYTHING that even begins to approach amnesty, I will never, EVER vote for a member of their party again, and I’ll mention my rep’s name why I won’t when solicited for votes or donations or whatever.

The only hope the GOP even has is to come out against amnesty, and for secure borders and attrition internally in the US.

Comment by real journalists
2014-01-27 07:16:05

This is the most racis thing I’ve ever heard.

Bad racis, bad.

Comment by jose canusi
2014-01-27 07:18:39

Two groups of whites. Who hate each other with a passion. And one group uses people of color as shock troops against the other group.

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Comment by real journalists
2014-01-27 07:38:45

This is not the narrative that the real journalists constructed for you.

You copied that from some fringe website, and it is racis.

Comment by jose canusi
2014-01-27 07:46:33

Two groups of whites. Who hate each other with a passion.

Comment by my failure to respect is unacceptable
2014-01-27 08:11:57

Two groups of whites. Who hate each other with a passion.

But they will put them on TV and make money off it.

Comment by jose canusi
2014-01-27 08:49:16

That’s ED ZACHARY right.

Now, you’ll see some REAL racism if the one group using the brown shock troops wipes out the whites they don’t like. That’ll be some ta-ra-diddle right there, when the shock troops turn on them.

Comment by spook
2014-01-27 11:52:30

“Negro auxiliaries”

How do you rhyme that?

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 12:04:15

“used as pillories”

Comment by Bill, just south of Irvine
2014-01-27 13:12:36

Negros Hillaries? Maybe she will then win in 2016.

Comment by oxide
2014-01-27 07:30:49

What is meant by attrition?

Comment by jose canusi
2014-01-27 07:34:36

I’m sure you’re smart enough to look up a definition. May I suggest google?

Attrition through enforcement of laws, followed by self-deportation.

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Comment by my failure to respect is unacceptable
2014-01-27 07:56:20

“If you are against the fastest-growing voting bloc in the country, you and your party don’t have a future,” Bloomberg also said.

Voting bloc for the democratic party, that is. That’s the reason many in GOP oppose it, right? If they would vote even a 40/60 for the republicans, they would have been citizens long time ago.

As Chucky Cheese Schummer said, you are a racis if you don’t belive in immigration. As for me I am glad I am not a racis because I do support amnesty but not voting rights.

Comment by measton
2014-01-27 07:57:27


Our elites need slave labor and to suppress wages.

Comment by rms
2014-01-27 08:17:45

“…suppress wages.”

+1 We definitely see this effort in big agriculture.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 13:34:20

Which is exactly why the most staunch Republicans are voting for amnesty.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 11:58:29

Illegal immigrants can’t vote, Bloomie.

Comment by In Colorado
2014-01-27 16:21:06

After the Shamnesty (OK, they’ll have to wait a few years before natualizing) they will be able to vote.

Comment by reedalberger
2014-01-27 13:16:02

““If you are against the fastest-growing voting bloc in the country, you and your party don’t have a future,” Bloomberg also said.”

Yeah, let’s keep importing more fish to be hooked by fascists like Bloomberg. We’ll be finished in no time.

Comment by Mugsy
2014-01-28 01:10:36

I wonder if these billionaires would be so hell bent on “immigration reform” if they were struggling to make it working low-wage jobs as an average American?

Comment by tresho
2014-01-29 15:19:30

if they were struggling to make it working low-wage jobs
they wouldn’t be billionaires.

Comment by phony scandals
2014-01-27 06:55:14

D’Souza Producer: “I Never Feared My Gov’t Until Now”

Newsmax ^ | Sunday, 26 Jan 2014 01:08 PM | Greg Richter

Posted on Monday, January 27, 2014 4:22:30 AM by Olog-hai

Gerald Molen, the producer of Dinesh D’Souza’s documentary film “2016: Obama’s America,” says he never feared his government before he learned that D’Souza is under federal investigation for election fraud. […]

“I’m a little bit taken aback by the whole thing because he’s such a great American,” Molen said of D’Souza on Newmax TV’s “Steve Malzberg Show.” The conservative writer and commentator understands the process in America and how it works, Molen said.

Molen, who also produced the Academy-award winning “Schindler’s List,” said he has not spoken to D’Souza since he learned of the indictment, and wouldn’t make comments about the specific case until he’s learned all the facts.

Asked by Malzberg if he ever felt threatened or had any feelings they should not have been making the film, Molen answered, “No. This is America. I’ve never had that feeling,” adding, “I’ve never had the occasion to think that I had to fear my government. I never had the thought that I had reason to think I had to look over my shoulder until now.” …

(Excerpt) Read more at newsmax.com …

http://www.freerepublic.com/focus/news/3116125/posts?page=2 - 10k -

Comment by real journalists
2014-01-27 07:46:15

Newsmax dot com are not real journalists.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 13:36:36

Maybe y’all should wait for the investigation to unfurl before you go accusing D’Souza of being innocent.

Comment by Albuquerquedan
2014-01-27 14:38:08

Maybe if we saw someone getting prosecuted in Philadelphia for election fraud or anywhere else where you had over 100% voting or if we did not see the IRS targeting conservatives or if we did not see the only rating agency downgrading the US getting prosecuted, we would be more willing to wait for the investigation. When there is a clear pattern of political prosecutions anyone with a brain gets suspicious.

Comment by Anklepants
2014-01-27 07:00:29

I’ll believe a correction when I see 20 percent. This is all just smoke and mirrors. Doesn’t thee fed meet for more tapering this week?

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 13:38:29


Comment by Janet Felon
2014-01-27 16:41:24

What if it’s 49?

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 18:12:30

I just don’t like the sound of that number. It has no ring to it.

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Comment by Professor Bear
2014-01-27 22:53:05

I’m thinking the Fed meeting later this week will offer more foot dragging on the taper, out of fears the fragile recovery will be upended if they act too quickly. This in turn will help prolong the period the global economy teeters on the edge of collapse, which coincidentally is the very same period that long-term Treasurys pay super-low yields.

Comment by Suite Joey Blue Eyes
2014-01-27 07:13:30

The biggest waste of our tax money is our insane military budget (remember, 70% of it goes to private contractors).

Look at this info graphic which depicts just one example of how much more the US spends than anyone else. This graphic is for aircraft carriers but if you surf around you can find others.


Comment by real journalists
2014-01-27 07:44:02

Downlow Joe has entered the building.

Comment by Suite Joey Blue Eyes
2014-01-27 08:15:53

Thank God for those bootstrappers at General Dynamics and all their subs.

Comment by 2banana
2014-01-27 08:40:30

19% of the US Budget goes toward the military

56% of the US Budget goes toward entitlements

Look at this info graphic which depicts just one example of how much more the US spends for each vote of the free sh*t army. This graphic is for monthly “crazy check” but if you surf around you can find others.

Comment by Suite Joey Blue Eyes
2014-01-27 08:52:35

You realize that the biggest amount of entitlement spending goes to MC & SS and that those people are the GOP’s most reliable voters, right? They’re the ones who watch Fox News and they’re the only age group that gave more votes to McCain and Romney than Obama.

Do you only play stupid or are you really stupid? (If it’s the former, you’re brilliant–it’s totally believable.)

Comment by real journalists
2014-01-27 09:34:50

The HALF A TRILLION DOLLARS spent annually on government contractors is not welfare, it’s an investment in our freedoms.

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Comment by azdude02
2014-01-27 08:56:23

monthly crazy checks are needed to keep people off food stamps.

Comment by Suite Joey Blue Eyes
2014-01-27 08:57:57

People receiving the most entitlements (SS & MC) vote GOP and supported McCain & Mitt. They were the only age group that did so.

Do you really think we millenials would complain if you wanted to scale back SS/MC immediately? The problem is that when the GOP talks about doing it, it always exempts the GOP age group. The Paul Ryan plan, shockingly, only talked about reducing SS/MC (vouchers) for those under age 50.

What people think is unfair would be allowing people to receive insane SS/MC (big expenses) while cutting things like SNAP or WIC (very small expenses in the fed budget). While continuing subsidies for big agriculture (very little goes to small farms).

Comment by scdave
2014-01-27 08:52:25

70% of the world is covered by water, 80% of al people live near water, 90% of all trade travels by water. Your Navy 100% on watch !!

Americas Navy….”A Global Force For Good”….

Comment by In Colorado
2014-01-27 16:22:17

Americas Navy….”A Global Force For Good”….

They should add a visual of a Navy drone wiping out a wedding party.

Comment by Albuquerquedan
2014-01-27 17:04:37

They should add a visual of a Navy drone wiping out a wedding party.

It will only get Obama condemned if it is a “gay” marriage.

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Comment by Mugsy
2014-01-28 01:16:40

That’s the Air Force thank you very much. Navy drones drop beer on wedding parties. Go Navy!

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Comment by Professor Bear
2014-01-27 07:24:16

Does anyone else notice Google viruses on their browsers these days?

Comment by Professor Bear
2014-01-27 07:25:16

I’m wondering if there is a way to “unintall” anything and everything related to Google, as it seems as though they have larded up my system with all kinds of extra steps to open any web site.

Comment by real journalists
2014-01-27 07:31:20

if you object to the nsa optimizing your browsing experience you do not support our troops and you hate our freedoms

Comment by jose canusi
2014-01-27 07:36:20

Buddy of mine uses Chrome exclusively and is constantly having to clean up his computer.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 13:43:03

That’s because Chrome is spyware.

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Comment by measton
2014-01-27 08:04:10

Here is my computer mistery

Came home computer in my locked office was on with yellow power light. Couldn’t get the computer to boot up. Took it to my computer help desk at work. They said it was a loose RAM chip. They reseated it and ran some updates and told me I could pick it up later in the day. When I got home and opened the computer all my files were missing music, work, pictures etc. I called the help desk and they say they didn’t move or delete a thing. They had scanned the computer for viruses and found none. The short cut to my file is still there but when you click on it it says something like the F drive is not available. I don’t have an F drive so I think someone stole the information. Now I’m left wondering who for what purpose. Serious ulcer.

Comment by rms
2014-01-27 08:26:04

Odds are that your files were set to “hidden”, and a Trojan program will direct you to a site that will likely ask for $20 through Paypal to “recover” your files. Take your computer to someone who knows what they’re doing.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 13:51:52

Have you used your disk manager to see where the new F partition is?

Comment by Janet Felon
2014-01-27 16:46:47

I can relate. I HATE computers, but I love them. I have my old laptop sitting under the desk with thousands of photos which I don’t want to lose, but it’s got a virus. Not only that, the cooling fan broke and it will overheat in short order. I tried to take it apart but the cooling fan is not easily accessible, so I put it back together. I need to figure out how to safely get those pictures off that laptop before I throw it right into the garbage.

Comment by rms
2014-01-27 19:36:46

“I HATE computers, but I love them. I have my old laptop sitting under the desk with thousands of photos which I don’t want to lose, but it’s got a virus.”

The 2.5″ drive can be removed, an adapter installed, and install it as an additional drive on a tower computer. Then it can be scanned and cleaned using programs from the primary drive on the tower computer, and then recover your documents, photos, etc., maybe burn a DVD for the bank safety box too.

The key thing to understand is that don’t want to run any software (bot, trojan, virus, etc.) that is installed on your 2.5″ drive; thus, the tower computer.

If you are not comfortable then take your computer to someone who knows what they’re doing before you lose your important files.

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Comment by Housing Analyst
2014-01-27 20:37:44

Google Hirens Boot CD. Download the .iso, burn the image using a working computer. Put it in your dead machines CD and voila. You have XP interface that you can use to copy all your files onto a flash.

Comment by Neuromance
2014-01-27 12:51:07

I have noticed some more aggressive pop-up advertising. Startling even, virus-esque. Like browsing a website and a new tab on my browser opened with a link to a malware site. I scanned my computer completely with a reputable, updated virus scanner and it came up clean. Another site did the same thing.

I haven’t seen the whole new-tab-opening-and-getting-the-focus thing before. That gives me some concern, but in my experience, while virus scanners cannot clean off installed advanced viruses (computer needs to be reset to factory defaults or reformatted), they can at least tell you something is there.

Comment by Captain Credit Crunch
2014-01-27 07:31:44

Lord help us, we’re taking the plunge. I’ve been posting and reading on this blog since 2004, although not much since 2009. After spending 12 years on the west side of LA for grad school and my first couple of jobs, both of us managed to find very strong employment in the Inland Empire (large employers) and my job was a major promotion with a national search on their end (tooting my horn for a minute–I’m excited).

I suspect we’re buying at the top of a dead cat bounce, and that 2014 will be a year of change toward better affordability. But, at the end of the day, I just don’t think it matters for us any longer. We can buy a nice place in one of the nicest areas of riverside (Alessandro Heights), with 20% down up to 100k, and probably spend no more than 25% of our after tax income (~3k). Compared to the 900sf house we have been renting in west la, the after tax out of pocket would be about the same (although I’m sure utilities are higher).

So, I’ll probably keep you guys and gals up to date :) I’d love comments and thoughts on the IE, even though we have a pretty good idea about it as we both grew up there (Redlands/MV).


Comment by phony scandals
2014-01-27 08:01:36

“So, I’ll probably keep you guys and gals up to date”

I was going to say I think you may have just insulted some part of the LGBT community but I decided not to, because that would be considered, well it would be considered something.

Comment by Suite Joey Blue Eyes
2014-01-27 08:01:37

Why wouldn’t you RENT in a decent but not expensive area, then stack up cash and buy once a) interest rates rise b) prices fall? Then you can ball out of control.

I guess my point is, there is _no way_ prices are sustainable in inland CA. I’m sure you realize this.

Comment by Suite Joey Blue Eyes
2014-01-27 08:19:49

In other words, if you’re really doing well financially, don’t worry about the monthly amounts. What you want to do is reduce the total outlay for housing. You go in with a big down payment and the intention to knock anything else out in 10 yrs or less.

If you actually believe that IE prices will rise over this period of time, I just happen to be running a 2-for-1 special today, you can buy the Brooklyn and the Verrazano Bridges before Bill de Blasio ruins them ;-)

Comment by Housing Analyst
2014-01-27 11:35:05

It’s going to take him much longer for the Willis Ave bridge. We built well.

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Comment by Captain Credit Crunch
2014-01-27 20:25:18

The reason we don’t rent is because the kind of place in which we want to live is simply not available to rent. Homes for rent are usually tract homes or trashy 2br pieces of shit.

Comment by scdave
2014-01-27 08:58:05

Health & many days of enjoyment in your new home Captain…

Comment by scdave
2014-01-27 09:05:43

I just street goggled Alessandro Heights…I can see why Captain is excited…Pretty nice…

Comment by Housing Analyst
2014-01-27 11:04:43

You’re quite right in that you bought just after the peak of a dead cat bounce. Good luck as I’m certain you’re going to need as much of it as you can get your hands on.

You’re already aware you’re not going to get any vindication here.

Carry on.

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Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 13:56:39

The rent on your new rental in the IE is going to be very cheap. If you’re going to stay in the IE, then you will surely buy a house with cash for 33-50% off in a year or two.

Comment by Captain Credit Crunch
2014-01-27 20:33:11

My preference would be to buy a cheap place and wait for the big leg down and buy the permanent home later, but one just can’t tell what’s going to occur. The government/FED already has done more intervention than I’ve imagined and maybe we will wind up like NHZ’s stories of never ending intervention in the Netherlands. We just want a nice place to live and can’t seem to find the quality we want in a rental. At the end of the day, our investments will pay for half our mortgage payments anyway. I just don’t give a fuck any longer. We spend about half our lives in our home and want to be in a place that’s excellent.

To give the appropriate finger to the REIC, we are representing ourselves and immediately shaving off 3% of what our bid would have been.

Comment by Janet Felon
2014-01-27 16:53:29

Enjoy your life as runway foam!

Comment by Reeferside
2014-01-28 01:41:38

How much do you enjoy breathing, Cap’n? Smog sink, dust storms, no water when the CO river allotment runs out, rednecks, low-riders, Mexican gangs, corrupt/bankrupt municipal/county government, Allergy Central. First to go under in a crash, last to recover. It was a marginally okay place to live when it was growing dates and oranges — but they cut them all down two generations ago.

You’re waaaay too smart for this.

Comment by Captain Credit Crunch
2014-01-28 07:57:59

Eh, we grew up in the IE, so we know what we are facing. I moved there in 1992 when I was 12. Actually, my allergies improved substantially from the Midwest ragweed. The desert environment was pretty effective that way. And the air quality has improved in the prior 20 years, although it’s not coastal like west la (there are some concerns with the Santa Monica airport blowing exhaust into our home, however). In any case, I’ve accepted the job and my wife already works in the area, so we are living there no matter what. It’s just a question of rent vs. buy.

Comment by Housing Analyst
2014-01-28 12:53:31

You’re young. You might have enough time to recover from this but man oh man…. the premium you’re paying is off the charts.

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Comment by phony scandals
2014-01-27 07:40:12

Congressional inquiry on Christine O’Donnell tax records heats up, but truth may stay hidden

By Ben Wolfgang
The Washington Times
Sunday, January 26, 2014

Powerful committees in both chambers of Congress now want answers to questions surrounding Christine O’Donnell’s personal tax records and whether the Delaware Republican’s private information was illegally accessed and ultimately used in an effort to derail her 2010 U.S. Senate bid.

The House Ways and Means Committee has joined the Senate Finance Committee in probing a string of incidents dating back to March 2010, when Ms. O’Donnell — a tea party favorite who riled Delaware’s GOP establishment by besting party mainstay Mike Castle in a primary contest before losing to Democrat Chris Coons in the general election — was told by Treasury Department investigators that her tax information had been breached.

“The IRS takes a position that they don’t have to tell you the wrongdoing by their own agency and employees because of the protections that are supposed to be afforded to the taxpayer are then reversed and afforded to the IRS employee. This is a big problem. This agency is a big problem,” said Cleta Mitchell, a Washington lawyer who has sued the IRS on behalf of the National Organization for Marriage and has worked with tea party groups who claim they were singled out by the government.

The National Organization for Marriage lawsuit is an attempt to find out who accessed and leaked its confidential tax files, which included the names of donors.

The IRS did not respond to a request for comment.

Follow us: @washtimes on Twitter

Comment by real journalists
2014-01-27 07:47:49

The Washington Times are not real journalists.

Comment by mathguy
2014-01-27 15:44:28

Any chance you will make a worthwhile post at some point?

Comment by 2banana
2014-01-27 08:42:49

It is not tyranny and oppression if we target conservatives

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 14:01:27

This is getting confusing. I thought that names of political donors were already public record.

Comment by reedalberger
2014-01-27 15:36:59

I’m sure our Injustice Department will get to the bottom of this.

Comment by real journalists
2014-01-27 07:42:33

THC-Hawks? Pot puns pack this Super Bowl

“From weed-themed Super Bowl parties to a Denver company’s “Stoner Bowl” tours of recreational pot shops, this year’s Super Bowl offers a twist on a sporting event better known for its beer commercials. Thanks to the recreational marijuana laws passed by voters in 2012, sales of taxed pot to adults over 21 began at Colorado pot shops Jan. 1 and are due to begin in Washington later this year.

There have been a slew of predictable, ready-made puns, most of which have to do with “bowl” being the part of the pipe where pot goes. Some fans have issued not-quite-serious calls for a cannabis-friendly musician — say, Willie Nelson or Snoop Dogg — to sing the national anthem.

“I’m staying home and will be watching the Super Bowl while I light up my own Super Bowl,” well-known stoner Tommy Chong, of the comedy duo Cheech and Chong, wrote on its Facebook page. The pair released a publicity photo doctored to show Chong in a Seahawks headband and Cheech Marin in a knit Broncos hat.”

Not so fast with the Cheetos, because it sends the wrong message to the children.

“Derek Franklin, president of the Washington Association for Substance Abuse and Violence Prevention, said all the attention about the “Weed Bowl or the Bong Bowl, what have you, it drives home the wrong public health message.”

He noted that Washington NORML’s Facebook page featured a cartoonish version of the Seahawks logo, with bloodshot eyes and a joint in its beak.

“That’s the kind of thing that for kids, it’s going to stick in their heads,” he said. This Super Bowl is “incredible for the ‘Hawks, but tough for those of us in prevention.”


Comment by oxide
2014-01-27 10:53:09

Kick off at 6:25 ET. Hope it’s a Peyton blowout so it’s over before Sherlock.

Comment by real journalists
2014-01-27 11:02:04

use the coupon code ‘broncos’ for 50 percent off all online orders at denver area papa john’s the day after the broncos win.

monday, february 3rd will be the day of the cheese stick.

Comment by phony scandals
2014-01-27 07:42:37

Foreclosed homeowners to get less than $1,500

by Kim Miller
January 24th, 2014

More than 1,700 Floridians who lost their home to foreclosure will start receiving $1,480 reparation checks next week as part of the landmark National Mortgage Settlement negotiated in 2012.

Florida Attorney General Pam Bondi announced the check distribution this afternoon, noting that the total payout is $2.5 million.

Borrowers had to apply to receive the money, and were only eligible if their homes were repossessed between 2008 and 2011 and they were clients of one of the five banks named in the settlement.

The banks include Bank of America, Ally Financial, Wells Fargo, JPMorgan Chase and Citi.

The amount of the checks and number of recipients was first announced in June of last year, but are just now making their way to homeowners.

How much borrowers received was based on how many applied for the money. Based on the number of eligible borrowers, it was initially thought just $850 would be awarded.

In Florida, about 53 percent of the 167,400 borrowers who were mailed letters applied. Nationwide, 55 percent of the more than 1.7 million borrowers applied.

But ultimately, not all borrowers met eligibility requirements, which included that the home foreclosed on was a primary residence.

Some consumer advocates have questioned the $1,480 payments, saying they are an admission of the fraud committed by the banks and do little to offset the loss of a home taken in a challengeable foreclosure.

“These checks are a joke,” said South Florida real estate attorney Roy Oppenheim last year. “If homeowners sued the banks for the fraud, forgery and perjury they committed, they could be getting more.”

This entry was posted on Friday, January 24th, 2014 at 4:55 pm and is filed under Foreclosures, Real estate bust. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Comment by Suite Joey Blue Eyes
2014-01-27 08:03:42

“total payout is $2.5 million”


Didn’t CA’s AG (Kamala Harris) get a much better deal by holding out?

Comment by my failure to respect is unacceptable
2014-01-27 08:13:47

How much the lawyers pocketed?

Comment by Whac-A-Bubble™
2014-01-27 11:06:07

You can buy lots of cake for $1500.

Comment by Whac-A-Bubble™
2014-01-27 11:07:25

P.S. If you want to see where the real money to homeowners flowed, check out how much debt has been forgiven, tax-free, for homeowners who walked away.

Comment by Whac-A-Bubble™
2014-01-27 22:55:44

I forgot the other part, which is many, many years of rent-free living in desirable homes.

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Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 14:06:10

They already got plenty.

Comment by phony scandals
2014-01-27 07:49:11

Florida real estate’s investor invasion

by Kim Miller

Despite belief that rising home prices across the state were driving investors out of the housing market, a new report found that 2013 saw an increase in buyers with plans to either flip the homes or renovate and rent.

According to RealtyTrac, 12 percent of Florida home purchases in 2013 were made by institutional investors, up from 9 percent in 2012.

In Palm Beach County, 8 percent of sales last year were to institutional investors _ defined as an entity that has bought at least 10 homes in the prior year _ up from 6 percent in 2012.

Nationally, investor sales made up about 7 percent of all purchases last year, up from 5.8 percent the year before.

The Jacksonville area boasted the highest percentage of investor purchases in the nation last year at nearly 39 percent. Lee County, on the west coast of Florida, was also high at 25 percent.

Local investors are watching the purchases with concerns. They say Wall Street buyers like Blackrock, which owns Invitation Homes, and Santa Monica, Calif.-based Colony Financial, are overpaying for properties, artificially jacking up the prices.

“It’s what I call the corporatization of residential America,” said Jack McCabe, chief executive of McCabe Research & Consulting in Deerfield Beach. “You have a lot of neighborhoods now where big percentages of homes are owned by corporations and what happens to the community in the long run isn’t being talked about.”

This entry was posted on Monday, January 27th, 2014 at 8:52 am and is filed under Florida economy, Housing affordability, Housing boom. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 14:22:35

McCabe is saying the same thing that we are saying on this blog, and he is right. The institutional investors will cause their own bubble to pop. They will accomplish this either by flipping the houses, or by driving down rents, which will in turn drive down prices.

Comment by Suite Joey Blue Eyes
2014-01-27 07:57:56

I highly recommend people watch the “Mitt” documentary on Netflix that came out last week. It’s very fair and he comes off as quite likable personally. The filming was done from the ‘08 primaries up until his concession speech in ‘12. A couple things stood out to me:

1. Mitt is actually pretty humble. In his alone time, unguarded, he talks about his dad a lot and how his dad put him on 3rd base. Mitt freely admits that Obama has a better “story” and “came from nothing”, etc., where as Mitt was born rich and waltzed his way into Stanford and Harvard Law/MBA. On the top of his debate notes in the first presidential debate vs Obama, he wrote “Dad” and drew a picture of a sun shining. He explained it to his kids as some story his dad told him about letting his light shine before others.

2. Mitt is obviously a good dad. His priorities immediately shift back to his family once the campaign was over in ‘08 and he was reluctant to run in ‘12. They show a family meeting where all his sons say that him running for prez will make their lives worse, but they want him to do it anyway bc they think he is better for the job than any of the other GOP candidates.

3. Mitt should’ve been the nominee in ‘08. He was thwarted by the South and in particular by McCain calling in favors from southern reptiles. There’s a really poignant scene where Romney finds out that Charlie Christ and Mel Martinez endorsed McCain, even though they had told him privately they would stay neutral and that, in fact, they agreed with Romney on the issues. But McCain, having been in the Senate so long, is owed favors by so many people… There is debate footage from the ‘08 primaries and I was reminded how much Mitt dominated McCain. All the focus groups of undecided voters came back in favor of Mitt. But McCain still basically ran the table in the south by repeating his war hero mantra. Romney hit the nail on the head in one discussion with his campaign people–saying that McCain might due OK vs Hilary, but Romney thought Obama would win over Hilary and then dominate McCain bc of his age and slow mind.

4. A lot of Romney’s “tone” issues in 2012, where he came off as insensitive or behind the times, were due to the idiots in the GOP field. Remember, Bachman, Herman Cain, and Santorum all had the leads at various points. Santorum was the “last man standing” other than Romney. This pushed Mitt to have to appeal more to GOP primary voters and say things he otherwise wouldn’t have said. The “47%” comment was part of that. Similarly, going into the foreign policy debate w/ Obama, polling was showing that teabillies wanted to see Mitt hold Obama to the fire on Benghazi. This drove Mitt to walk right into an Obama ambush (it’s at 1 hr, 6 min mark of the documentary), if you watch it you’ll remember. IMO, a big part of the GOP problem is what I’ve been saying for months on here–if they’re going to award more convention delegates to certain states, they should award them to purple (competitive) states like PA, OH, CO, OH. Instead, the GOP formula marginalizes big states and gives outsized portions of delegates to reptile strongholds.

5. It was shocking to see how much the Romney campaign coordinated with Fox News. As the election results roll in, the aides are calling back and forth with Karl Rove and Karl convinces him not to concede too early bc he’s convinced that the Ohio returns are not definitive. Mitt himself thought Rove was wrong. In fact, Mitt believed the polls that said Obama would win. Mitt always viewed his “pathway” as a long shot in the days before the election. In short, AQDan and Rasmussen were more bullish about Romney’s chances than Mitt. If you don’t believe me, watch the documentary. Mitt started writing his concession speech early on election night and had it finished 3 hrs shortly after the east coast polls closed. In short, Mitt isn’t delusional, he’s a logical alpha bro who looked at things evenhandedly. This impressed me.

6. I think Mitt would’ve been an OK president. He would’ve governed from the center and annoyed a lot of republicans, though. This seems to be the problem with any president–you need special interests to help you get elected. You need to appease the extremes of your party (if not win their support) to get the nomination. I don’t think Mitt would’ve been much different than Obama. If the GOP primaries were different, I think he would’ve been electable. At a minimum, there would be less damaging footage of him pandering to tea people on anti-immigration policies or “makers vs takers”, etc.

7. I had forgotten how much Ron Paul dominated some of those primary debates (the ones where he was allowed). He was the only one not speaking in clichés.

I also watched the Wikileaks documentary. Not sure if anyone else has seen that one. I definitely learned a lot of details about their involvement in the Iceland bank scandals and 9/11 text message files.

Comment by HBB_Rocks
2014-01-27 08:36:33

4. A lot of Romney’s “tone” issues in 2012, where he came off as insensitive or behind the times, were due to the idiots in the GOP field.
One day he’ll learn to stand up for himself and stop being pushed around by bullies.

So much for Republicans having conviction and Democrats having causes, eh?


Comment by Suite Joey Blue Eyes
2014-01-27 08:54:58

The whole social conservatism was pretty weird bc it’s glaringly obvious that his one son (who seems to be closest to him) is gay. I forget his name; he’s the only one who isn’t married with multiple kids in tow as they traverse the country.

Comment by 2banana
2014-01-27 08:45:56

I liked the part where he made up his own kill list.

Comment by jose canusi
2014-01-27 08:53:43

Mitt got doinked by his own consultants. Having been a “consultant” himself, I’m sure he knows how that works. Yawn. What goes around, comes around.

Comment by albuquerquedan
2014-01-27 08:56:16

You now like Mitt? Having second thoughts over Obama? BTW, the reason I did not vote for Romney is that I did not believe that he really did hold the views on China and illegal immigration that he espoused. The reason I thought it would be better that he won was because after espousing those views, it might have been harder for him to support amnesty. Of course, the ultimate irony is that if McCain had been elected amnesty would have been passed by now. The reason I could not support him in 2008. Amnesty means the death of the nation state called the United States and the end of blue collar workers in America making more than the world rate. We are moving in that direction anyway, but it would mean that we could not revert back to decent wages.

Comment by Suite Joey Blue Eyes
2014-01-27 09:08:15

I said I like Mitt personally (I like W personally as well) and I feel for him not having a chance to run in 2008 without having to contort himself because of the GOP’s backwards primary process. What you see in the documentary (which is like 2 hrs long) is that Mitt didn’t care about half the things the primary voters wanted him to talk about. Right or wrong, he had certain views on how to create a new climate in the US as far as business, employment, taxation, etc. Some of these would’ve been worthy experiments. I think he’s right that people want jobs, not handouts.

He didn’t think the US should be focused on the military, etc. but he was forced to say that to “appear strong” and contrast with Obama (who seems pretty militaristic the last time I checked).

He definitely didn’t care much about telling others how to live. Even as an agnostic, I found his faith very positive. He had his own views and would not want to push them on others. (It’s a mystery to me why his son remains in the closet, we’ve already had a VP who had an openly gay daughter.)

I would’ve voted for Gary J but only voted for Obama to voice disapproval with the direction of the GOP… that sounds vain, of course 2 votes (mine + wife) aren’t a “message”, but the whole GOP process is screwed up and gave independents no one to consider. As long as the GOP nominee has to kowtow to the south (a region they will sweep anyway) they aren’t going to have viable candidates. I hate Hilary but Hilary will probably win if the GOP keeps its primary process in place. Either a reptile will get the nomination or a moderate will have to say things and make pledges that will turn off independents in competitive states like PA/OH/CO.

The one thing missing from the documentary was what Mitt’s people did to Ron Paul. I wish they had shown that. The whole issue with the Paul delegates was anti-democratic and reprehensible.

Comment by real journalists
2014-01-27 09:18:33

Yup. Catering to the Duck Dynasty demographic will be an effective national strategy in 2016. What could possibly go wrong?

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Comment by real journalists
Comment by jose canusi
2014-01-27 09:22:12

“The one thing missing from the documentary was what Mitt’s people did to Ron Paul. I wish they had shown that. The whole issue with the Paul delegates was anti-democratic and reprehensible.”

Exactly. What goes around, comes around. Not always immediately. Karl Rove got Mitt but good.

As to your comments on the South, meh. These politicians and consultants pretty much cannibalize each other, no matter where they’re from. The GOP has been turning on itself since shrub. As one article I read said, Karl Rove IS the Republican party.

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Comment by Suite Joey Blue Eyes
2014-01-27 09:56:46

It’s not southerners, per se, it’s the formula for awarding delegates. States like OH, PA, and FL are winnable for the GOP, but since their state legislatures and cong. delegations are split, they don’t get the appropriate emphasis in the primaries. Meanwhile, states that are “all red” get an outsized share of delegates. I posted a chart before that showed that if you win in the south, you could do very poorly in the other GOP primaries but still win the nomination. The problem is, you need to contend in all the purple states and win a few.

It was a fantasy to think Mitt would win and even Mitt thought it was improbably on the day of the election. It turned out that he didn’t win any swing states and lost the popular vote by 4% and the EC by 126. He lost Mass (where he had been gov) by 61-38%. His best states were West VA, Alabama, Oklahoma, Kentucky, Utah, and Idaho. Anyone who wants to deny that social issues played a big role is crazy. And it’s sad bc Mitt would rather not have had to carry the tea people banner on those issues, but if he hadn’t sucked up in the primaries, someone like Santorum would’ve been the nominee.

Comment by Suite Joey Blue Eyes
2014-01-27 09:10:40

And yes, obviously there are problems with Obama. Hard to say until he’s out of office and someone dumps the goodies in a book. But his stunning capitulation to “military advisers” has been stunning. I am not giving Obama a free pass, but I wonder if any president can stop the MIC from its perma-growth trajectory?

Comment by Rental Watch
2014-01-27 09:52:35

What views did Mitt share on immigration during the election?

I remember attending a conference where he was speaking (long before the primary, in 2010). He was pretty clear on immigration. He essentially said that it was insane that we educate young immigrants and send them back home. In that speech, he said we should staple a green card to every advanced degree given to a foreign student in STEM fields.

Did he say something different during the election?

Comment by Suite Joey Blue Eyes
2014-01-27 12:45:17

“Self deportation”

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Comment by Happy2bHeard
2014-01-28 00:31:36

Nice summary. I also think Romney is a good man. But I disagree that he would have governed from the center. He would have been pulled to the far right as President just as he was as a primary candidate.

Comment by Bill, just South of Irvine
2014-01-27 08:20:40

Myth busting the MSM and government propaganda regarding the health of singles never married


A good read for this single guy after a brisk swim workout and while eating steel cut oatmeal and grapefruit.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 14:28:39

I always thought the stereotype was that people let themselves go once they found themselves in a stable relationship. Weird how some people have been raised with certain stereotypes, while others have always thought the opposite.

Comment by Bill, just South of Irvine, CA
2014-01-27 20:56:32

The truth is what you just said - people let themselves go once they got their trophies (wife or husband).

The MSM wants to try to convince you otherwise - that married people are wealthier and healthier.

ISTR a mormon colleague of mine in his late 30s (I was in my late 20s) with six kids - going on 7 - telling me “Bill, married men live longer than single men.”

He had a paunch and thinning, graying hair while he told me that audacious statement. He looked like I should look at my age of 54 going on 55 - but I have no paunch, and my hair far younger looking and thicker than his was in his late 30s.

He was the first I observed of rapidly aging males who are fathers. I guess they are worried about who is going to try to fork with their daughters and that drives them gray?

Also I observed the same in women - those who never had kids tend to look better ten to twenty years longer than the women who have kids.

All the female second cousins or the wives of second cousins are obese and in their 20s and 30s. I don’t have any childless second cousins

Comment by Whac-A-Bubble™
2014-01-27 22:59:02

“He was the first I observed of rapidly aging males who are fathers.”

I’ve observed lots of these in my day. However, it depends on the dad. In fact, I know a Mormon dad in his 60s who hikes faster than the 12-year-old Boy Scouts he leads on the trail.

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Comment by phony scandals
2014-01-27 08:29:23

The Second Subprime Bubble Is Bursting, Gundlach Warns

Submitted by Tyler Durden on 01/24/2014 14:05 -0500

http://www.zerohedge.com/news/2014-01-24/second-subprime-bubble-bursting-gundlach-warns - 122k

Comment by oxide
2014-01-27 09:27:36

Yeah yeah, another laundry list of “why” the housing market is going to pop. But even Tyler Durden won’t venture a guess as the WHEN and HOW FAR.

Comment by Housing Analyst
2014-01-27 10:55:27

It already started Mz. Craterton.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 14:49:43

Reference HA’s post above.

How Far:
In your neighborhood, many homes will be sold for 1/3 peak pricing.

Comment by oxide
2014-01-27 15:02:50

So the drop to ultimately 1/3 OF (not off) peak pricing has already begun? Which peak, btw? 2006? 2013?

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Comment by oxide
2014-01-27 15:06:46

OK just saw your post below. 1/3 of peak pricing, cash, to somebody. I don’t see how. The land is worth that much. Unless you think the entire government is going to implode?

Comment by Housing Analyst
2014-01-27 16:30:12

“The land is worth that much.”

No. You only believe that because that is what you you paid.

Comment by Janet Felon
2014-01-27 18:02:24

“The land is worth that much.”

Well that’s where the bubble is- in the land. That’s what’s going to fall.

Comment by Whac-A-Bubble™
2014-01-27 23:01:09

“Unless you think the entire government is going to implode?”

Some times it is hard to tell…

Comment by Rental Watch
2014-01-27 17:28:28

“But while warning on yet another subprime implosion is nothing new, and many have done it in the past, why this time may be different and far more timely, is because seriously delinquent borrowers are literally soaring, up from 7% in 2012 to 32% currently!”

This WOULD be a headline, if it were true.

Tyler Durden concluded that the above statement was true from the following text:

“About 32 percent of seriously delinquent borrowers, those at least 90 days late, haven’t made a payment in more than four years, up 7 percent from the beginning of 2012, according to Fitch analyst Sean Nelson.”

What this statement really means is that more and more, the remaining delinquencies are stuck in places where it takes FOREVER to foreclose (judicial states).

Comment by Housing Analyst
2014-01-27 18:17:33

Whether judicial or non-judicial, the delays are built into the system in all 50 states.

Comment by Whac-A-Bubble™
2014-01-27 23:00:02

Not to worry — the market will come back after the Souper Bowl.

Comment by phony scandals
2014-01-27 08:33:56

HSBC imposes restrictions on large cash withdrawals

By Bob Howard
Reporter, Money Box
24 January 2014

Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.

Listeners have told Radio 4’s Money Box they were stopped from withdrawing amounts ranging from £5,000 to £10,000.

HSBC admitted it has not informed customers of the change in policy, which was implemented in November.

The bank says it has now changed its guidance to staff.

New rules

http://www.bbc.co.uk/news/business-25861717 - 109k -

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 15:10:46

Depositor: Can I withraw my money?

Bank: Why do you want it?

Depositor: So I can close my account.

Comment by Janet Felon
2014-01-27 18:03:39

Depositor: Can I withraw my money?

Bank: Why do you want it?

Depositor: None of your stinking business, NOW GIVE ME MY MONEY.

Comment by Whac-A-Bubble™
2014-01-27 23:02:09

Sounds like a good way to prevent a bank run.

Comment by measton
2014-01-27 08:42:35

Associated Press

In a first, working-age people now make up the majority in U.S. households that rely on food stamps —

Some of the change is due to demographics, such as the trend toward having fewer children. But a slow economic recovery with high unemployment, stagnant wages and an increasing gulf between low-wage and high-skill jobs also plays a big role. It suggests that government spending on the $80 billion-a-year food stamp program — twice what it cost five years ago — may not subside significantly anytime soon.

Food stamp participation since 1980 has grown the fastest among workers with some college training, a sign that the safety net has stretched further to cover America’s former middle class, according to an analysis of government data for The Associated Press by economists at the University of Kentucky. Formally called Supplemental Nutrition Assistance, or SNAP, the program now covers 1 in 7 Americans.

The findings coincide with the latest economic data showing workers’ wages and salaries growing at the lowest rate relative to corporate profits in U.S. history.

With all those healthy consumers it’s just a matter of time before the market goes to the moon.

Comment by azdude02
2014-01-27 08:53:33

janet yellen is a visonary who will help these people on food stamps by buying more treasuries from the FED so the treasury can increase payments to food stamp recipients.

Comment by real journalists
2014-01-27 08:53:53

It’s a good thing the government reduced annual spending on government contractors from $530 billion to $515 billion, because those food stamps are bankrupting this country.

Comment by In Colorado
2014-01-27 09:53:47

The ex ceo of Trader Joe’s has started a new grocery store chain that sells food that it past its “best used by” dates.


The article claims that food is sold for “pennies on the dollar”, though there were nos specifics as for what the average discount it. It showed the SNAP crowd shopping there and the article heavily hinted that they were the target market (without saying so).

Comment by azdude02
2014-01-27 12:41:06

he will be out of business once the first lawsuit is filed after a food stamp recipient gets sick or dies.

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Comment by In Colorado
2014-01-27 12:48:44

They explained in the article that the dates are really just “suggestions” and that with few exceptions most food is still good far past the best used by date.

FWIW, there are plenty of mom-n-pop stores like this. And most food handed out in pantries is also “expired”. From what I have read, canned goods mostly lose vitamins as they age.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 15:13:44

In Colorado:

If the food is sold across state lines, there has to be an “expiration date”, and it’s not legal to sell expired stuff.

Comment by HBB_Rocks
2014-01-27 15:23:53

Lots of food doesn’t have an expiration date, and a ‘best by’ date is not the equivelent of an expiration date.

I just checked my breakfast - gatorade powder and cereal - the cereal is from Canada and has a ‘best by’ date, the Gatorade powder has nothing.

Comment by Albuquerquedan
2014-01-27 16:07:57

I am going to have to eat a lot of spam soon since the Mayan Calendar thing didn’t work out.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 17:06:23

Oh yeah, I forgot about food that never actually expires.

Comment by phony scandals
2014-01-27 09:01:06

Ukrainian Protesters Chant “Yankees Go Home”; Klitschko Warns Of “More Deaths”

Submitted by Tyler Durden on 01/24/2014 13:42 -0500

Following John McCain’s recent trip to Kiev practicing his new brand of international racketeering by threatening the Ukraine if they did not join the EU, it seems that the real Ukrainians have finally figured out that the pro-EU mobs have been staged by a conclave of western NGO’s and ‘democracy foundations’ – the very same nest of hornets who brought on the fabled ‘Arab Spring’ to the Middle East three years ago.

The main goal for Washington and the City of London is to separate Kiev from Moscow, and thus weaken Russia’s hand in Eurasia.

For EU central bankers, the prospect of raping and privatising the Urkraine economy- is also a big incentive.

It looks like the old tricks are no longer working. At last, the ‘colour revolution’ jig may finally be up…

A huge crowd of demonstrators has surrounded the US embassy in the Ukrainian capital of Kiev, protesting against Washington’s meddling in the country’s internal affairs.

Follow RT’s live updates.

The event was organized by Kievans for Clean City, a new pro-government activist group which has spoken out against the rioters and violence in downtown Kiev.

Several thousand demonstrators are taking part, urging the US to “stop sponsoring” mass unrests, local media reported.

“The US is behind everything that is happening in Kiev’s downtown right now. The financing is coming from over there. This has to be stopped. That is what we came out here to say to the whole world: ‘US – stop! US – there needs to be peace in Ukraine,’” said Ivan Protsenko, one of the movement’s leaders.

http://www.zerohedge.com/news/2014-01-24/ukrainian-protesters-chant-yankees-go-home-klitschko-warns-more-deaths - 125k

Comment by In Colorado
2014-01-27 09:14:31

They hate us because of our freedoms.

Comment by MightyMike
2014-01-27 10:46:26

So this fictional character Tyler Durden claims to know who the real Ukraininans are and what they want. That’s a good one. Unfortunately, there may be no reliable polling in Ukraine to tell us what the people there want.

The desire of the Western European elites to exploit cheap Ukrainian labor and natural resources is a complicated one. In the case of countries like Poland, the local population appears to be mostly benefiting fomr EU membership.

Comment by phony scandals
2014-01-27 12:55:36

Soros Activists Take Over Ukrainian Government Buildings

Spilna Sprava has direct connections to George Soros, the EU and the IMF.

Kurt Nimmo
Prison Planet.com
January 27, 2014

Early Monday members of Spilna Sprava took over the Justice Ministry in Kiev and demanded President Viktor Yanukovych resign. They smashed windows and erected barricades. In response, the government has threatened to impose a state of emergency.

Soros and EU activists leave Ukrainian Justice Ministry.

Justice Minister Olena Lukash said negotiations between the protesters and the government should be discontinued if Spilna Sprava activists do not leave the ministry and other government buildings. “I will be forced to ask the president of Ukraine to stop the talks if the building is not freed immediately and negotiators are not given a chance to find a peaceful solution to the conflict,” Lukash told Ukraine’s Inter channel. Lukash said she would also demand Ukraine’s national security council “discuss imposing a state of emergency in this country.”

Following the action at the Justice Ministry, Spilna Sprava announced on its Facebook page it had decided to blockade the building instead of occupying it following Justice Minister Olena Lukash’s threat to declare a national emergency. “The activists form a tight cordon and are not allowing media representatives into the building,” the Ukrainian News Agency reported on Monday. “According to them, all Spilna Sprava activists have left the building because continued occupation of the Ministry of Justice could have led to an escalation of the conflict.”

Spilna Sprava, translated as “The Right Deed,” is an Open Society Institute supported and funded group. George Soros’ Open Society Institute, now known as Open Society Foundations (OSF), doles out grants to activist NGOs in central Europe attempting to undermine the Russian Federation. It builds upon and continues the work of the Ford Foundation. Since the early 1950s, the CIA has used the Ford Foundation as a funding cover.

Spilna Sprava is mentioned in the 2009 annual report of the International Renaissance Foundation (IRF), an organization described as “an integral part of the Open Society Institute network (established by American philanthropist George Soros) that incorporates national and regional foundations in more than thirty countries around the world, including Africa, Central and Eastern Europe and the former Soviet Union.” IRF cooperates with the International Monetary Fund and European banksters interested in “economic reforms” and “integration processes and trends” in Ukraine and Moldova.

The IRF report describes Spilna Sprava as “[s]haring best practices, facilitating cooperation between Ukrainian, Polish and German NGOs through creation of a network of support for migrants and refugees.” It is partnered with a Polish NGO, the Euro-Concret Association, that conforms to the “the standards of the EU countries” and works closely with Arbeiterwohlfahrt Kreisverband Bremerhaven, a German NGO funded with support from the European Commission.

“Germany, the EU and the US are pursuing not only economic, but also geopolitical, objectives in Ukraine. Given Russia’s loss of influence in Eastern Europe since the dissolution of the Soviet Union, the incorporation of Ukraine into the EU would push Russia off to the edge of Europe,” writes Peter Schwarz.

The destabilization of the Ukrainian government is part of an ongoing geostrategic move by the globalists to undermine any challenge to their hegemonic designs:

Since the end of the 18th Century, Ukraine formed an important part of the Russian and Soviet state. Moreover, the Russian Black Sea Fleet is located in Crimea at a port leased to Russia by Ukraine.

Both the US and the EU have an interest in weakening Russia, which is considered to be an important ally of China. Immediately after his election in March, Chinese President Xi Jinping traveled to Moscow to strengthen the two countries’ “strategic partnership.” Both countries feel threatened economically and strategically by the aggressive incursions of the US and its allies in Asia, the Middle East and Africa.

The offensive against Ukraine raises profound historical questions. In two world wars, Germany sought to bring Ukraine under its control and committed abominable crimes in the process. The current brazenness of the German government is fraught with new dangers. The growing international tensions can quickly turn into armed conflict.

These international tensions and the globalist connection to the escalating protests not only in Kiev but now across Ukraine are naturally ignored by the corporatist media. Significant developments on Monday were overshadowed by the usual pablum, notably ad nauseam coverage of the 56th annual Grammy Awards ceremony on Sunday night.

Comment by In Colorado
2014-01-27 13:02:14

The desire of the Western European elites to exploit cheap Ukrainian labor and natural resources is a complicated one.

There’s nothing complicated about the desire. It’s the implementation that gets complicated.

Comment by MightyMike
2014-01-27 13:26:57

Yes, I expressed myself badly on that one.

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Comment by AbsoluteBeginner
2014-01-27 09:01:12

Bill, they will not drop PM prices. WTF?

Comment by albuquerquedan
2014-01-27 09:02:28

The EIC, food stamps and now Obamacare are used by the big corporations to hide that real wages and benefits are plummeting due to illegal immigration and outsourcing. The middle class that are still making decent wages now have to pay the additional costs of these programs. It is all good for the profits and capital gains which flow to the billionaires. Tax the 1% more so the .01% can expand their wealth.

Comment by In Colorado
2014-01-27 09:19:18

Hey, it only makes sense for mega corps like GE to pay no income tax while working stiffs foot the bill for the poor and unemployed. And if the local NFL team wants a billion dollar stadium, they by golly, the taxpayers better cough up the dough, otherwise they will find themselves in the shameful position of not having a local team anymore. (Don’t forget to buy your corporate produced snacks for Souper Sunday!)

Comment by oxide
2014-01-27 09:35:33

Dan, this has been going on since 1995. Or, about 1984 if you count the manufacturing industry.

The “trickle up poverty,” which appears to be the right’s new phrase du jour, is simply a reflection that higher and higher-skilled jobs can now be outsourced. Of course it will get pinned on Obama, but it started almost as soon as global phone lines became cheaper and the Internet was commecialized globally. Early Bush II years.

Colorado, working stiffs didn’t foot the bill for the unemployed’s taxes. UE is taxable income. When I was unemployed in 2009, I paid more taxes than GE did.

Comment by In Colorado
2014-01-27 09:43:20

Colorado, working stiffs didn’t foot the bill for the unemployed’s taxes. UE is taxable income. When I was unemployed in 2009, I paid more taxes than GE did.

Correct, but I was talking about the extended benefits, which are funded by taxpayer, unlike the first 26 weeks, which is insurance paid for by employers.

And yes, you paid more income tax than GE or the NFL.

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Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 15:17:37

I think it started when the United States decided to stop charging tariffs.

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Comment by jose canusi
2014-01-27 09:38:33

You’re on fire today, bro’!

Comment by cactus
2014-01-27 13:58:34

Tax the 1% more so the .01% can expand their wealth.”

“For whoever has, to him more shall be given, and he will have an abundance; but whoever does not have, even what he has shall be taken away from him.”

Gods work

Although in fairness this has nothing to do with money I’m just being a smarta$$

Comment by Avocado99
2014-01-27 18:54:13


Comment by Housing Analyst
2014-01-27 09:07:21

“Land is an extremely risky proposition if it’s priced much more than $500-$1,000 an acre. Highly speculative and volatile.”

You can say that again.

Comment by Suite Joey Blue Eyes
2014-01-27 09:12:22

Just buy land in SF/NYC for 1k/acre, man. No prob. If they offer it to you for 2k, laugh in their face. Smart.

Comment by Housing Analyst
2014-01-27 09:16:14

There’s Liberace the cherry-picking daddy!

Comment by real journalists
2014-01-27 09:24:33

I’m picking up a 20 acre ranch in Aspen after I go hit the Coinstar machine.

Comment by Housing Analyst
2014-01-27 09:26:11

There’s a globe full of land. And 95% of it goes undeveloped.

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Comment by Blue Skye
2014-01-27 12:17:34

“a 20 acre ranch”

Let’s say you weren’t a debt junkie in a world of debt junkies and had to earn actual money to pay for this. How much can a 20 acre ranch in Aspen return per year?

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Comment by polly
2014-01-27 16:24:25

Doesn’t matter much if you buy the land at $500 an acre.

Comment by Albuquerquedan
2014-01-27 16:54:07

Don’t go to this extreme to evade your debts:


Comment by Albuquerquedan
2014-01-27 17:16:06


A Russian woman on the run over unpaid debts has changed sex in an apparent attempt to avoid paying them back - but is still liable for the money, bailiffs said on Monday.

“The debtor changed gender to try to escape liabilities,” the press service of the bailiff service of the southern Astrakhan region said in a statement.

The 38-year-old woman, named only as Natalya, changed sex to become a man named Andrian after building up debts of around 130 000 rubles ($3745), a spokesperson for the bailiffs told AFP.

“During our investigation, we found out that the woman doesn’t exist anymore, and now a man exists,” said Yevgenia Zarynsh.

After changing gender, the man received a new passport with different details which he used as ID to secure new loans, bailiffs said.

But even such a drastic measure would not cancel the debts Andrian acquired as a woman, Zarynsh said.

Comment by Housing Analyst
2014-01-27 09:17:26

“So do you really think wages are going to double or triple to meet inflated prices of everything? Of course not. Prices will fall by 50% to meet existing wages as demand continues to collapse.”


Comment by Blue Skye
2014-01-27 09:41:19

Falling towards a falling target. Per capita wages continue to plummet as millions are shaken out of the workforce. Average income is back to 1998 level.

Comment by Housing Analyst
2014-01-27 10:11:25

And even then prices were a huge leap. A few people got some substantially higher wages until the blowoff in 2000. Most just treaded water or were getting laid off.

Comment by cactus
2014-01-27 14:01:38

I think the standard of living will just go down and corporations will own everthing

Comment by Housing Analyst
2014-01-27 16:28:54

And everyone will live in tents and eat gruel from wooden bowls too right?

Comment by phony scandals
2014-01-27 09:44:56

‘Face the Nation’ Edits Out Senator Cruz Condemning Obama’s ‘Abuse of Power’

By Jeffrey Meyer | January 26, 2014 | 18:35

Senator Ted Cruz (R-TX) appeared on CBS Face the Nation on Sunday morning and was met with a barrage of questions from host Bob Schieffer about his involvement in the government shutdown. Apart from being the victim of Schieffer’s accusations that the Tea Party senator was to blame for the shutdown, it also appears that Mr. Cruz was the victim of editing by CBS.

Based on video from Senator Cruz’s YouTube page and what aired on today’s Face the Nation broadcast, the senator’s comments surrounding President Obama’s “abuse of power” were edited from the program. Instead what aired was a segment that ignored many of the senator’s complaints directed at President Obama. [See the aired and unaired videos below.]

BOB SCHIEFFER: Will you run for president?

SEN. TED CRUZ: Well, look, my focus is on the challenges facing this country right now (UNINTEL) senate. My focus, for example, is on the abuse of power from the president. Let’s take something like the IRS scandal–

BOB SCHIEFFER: So, I’ll take that as a yes or a no.

SEN. TED CRUZ: Eight months ago–

BOB SCHIEFFER: Or still thinking about it.

SEN. TED CRUZ: Well, what you can take that as, is that my focus is standing and fighting right now in the senate to bring back jobs and economic growth. Economic growth is my number one priority…

BOB SCHIEFFER: Thank you, so much, for joining us and we’ll talk to you again.

However, as Senator Cruz’s YouTube channel showed, the Texas senator had extensive commentary on President Obama that mysteriously did not make it to air, just two days before the president’s State of the Union address:

SCHIEFFER: “Will you run for President?”

CRUZ: “My focus is on the abuse of power of this President. Let’s take something like the IRS scandal-“

SCHIEFFER: “Do I take that as a yes or a no?”

CRUZ: “What you can take is that my focus is standing and fighting right now in the Senate to bring back jobs and economic growth. Let me tell you something that is deeply concerning—the abuse of power from this Administration. We’ve seen multiple filmmakers prosecuted and the government’s gone after them. Whether it’s the poor fellow that did the film that the President blamed Benghazi and the terrorist attacks on, turns out that wasn’t the reason for the attack but the Administration went and put that poor fellow in jail on unrelated charges. Just this week it was broken that Dinesh D’Souza, who did a very big movie criticizing the president, is now being prosecuted by this Administration.”

SCHIEFFER: “Senator-“

CRUZ: “Can you image the reaction if the Bush Administration had went, gone and prosecuted Michael Moore and Alec Baldwin and Sean Penn?”


CRUZ: It should trouble everyone the government uses government power and the IRS in particular to target their enemies and you are talking a new minutes to Chuck Schumer—“

SCHIEFFER: “We are going to leave this for another day, senator. Thank you for joining us and we’ll talk to you again.”

http://newsbusters.org/blogs/jeffrey-meyer/2014/01/26/face-nation-edits-out-senator-cruz-condemning-obama-s-abuse-power - 61k -

Comment by real journalists
2014-01-27 09:54:28

Now THAT’S real journalism :)

Comment by Ben Jones
2014-01-27 10:16:24

“We told you so. This week’s report from the independent Privacy and Civil Liberties Oversight Board, or PCLOB, confirms what we said back in June of last year in our New York Times Op Ed “The Criminal NSA”. The NSA’s telephone record metadata program, in which it collects the calling records of almost everyone inside the United States, is illegal. Amend that: it’s screamingly illegal. Flat out. Not even a close call. The program is also a serious threat to civil liberties, but first things first – the NSA’s massive program of telephone spying is illegal.”

“And it’s not illegal just because it violates the Constitution – although it does (the Fourth Amendment, specifically). The illegality of the NSA’s telephone metadata program is much clearer and even more disturbing than that. The program is illegal because no law authorizes bulk collection of phone record data. To the contrary, several laws forbid it. Understanding that the program is illegal doesn’t require fancy lawyer arguments about the frustratingly terse and vague provisions of the U.S. Constitution. It requires only that you read section 215 of the Patriot Act, which is the statute identified by the NSA as providing congressional authorization for its programs. We read it. It is surprisingly clear. And it does not authorize the NSA to do what it’s doing.”

Comment by Janet Felon
2014-01-27 18:14:06

Snowden should get a full pardon. He’s a national hero.

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Comment by Albuquerquedan
Comment by Albuquerquedan
2014-01-27 12:46:20


Former congressman Ron Paul believes that Ben Bernanke is going to avoid responsibility for additional tapering and foist it on his successor, Janet Yellen. He believes the Fed has its back against the wall – if it tapers any more, emerging markets will spin out of control; if it continues buying bonds at the same monthly pace indefinitely (which is expected to be $75 billion this month), US and world markets could find themselves overvalued and susceptible to a big drop if and when the music stops. The US dollar’s role as a reserve currency is part of the reason this could be a global problem, according to Paul.

(Read: CEO of Bitcoin exchange arrested)

“We create money out of thin air to the tune of billions and billions of dollars,” says Paul. “Then we spend it in places like China and they monetize that debt. It’s a worldwide phenomenon. Everybody has mal-investments and overinvestments and all the problems built-in. The weakest economies are going to crack first. But, eventually, I think everybody’s going to suffer from the massive monetary inflation that’s been going on, not only for the last 10 years but probably 30 years.”

Paul believes the markets will eventually come under pressure. To see what Ron Paul has to say about Janet Yellen, Ben Bernanke, the Fed, emerging markets, and the US economy, watch the video above.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 15:23:04

As if US markets were not overvalued and in the beginning phase of a big drop.

(Comments wont nest below this level)
Comment by Bill, just south of Irvine
2014-01-27 10:43:26

Buy a new upscale house now in the next future Detroit. Or dollar cost average into a low expense index fund and flee urban blight by ending your lease. Which way leads to more net worth for you?

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 15:45:03

Even better: Time the markets. Buy at lows. Extract rents.

Comment by Bill, just South of Irvine, CA
2014-01-27 21:24:13

Let me guess, you are a multi multi billionaire.

If so, I’m Kanye West. BTW, Kim was fun last night.

Comment by Suite Joey Blue Eyes
2014-01-27 12:05:14

For those of you with children in college or heading to college in the future:

“Sallie Mae carries an $8.5 billion credit line that is subsidized at an interest rate of 0.23% and 0.34%. By contrast, college students take out loans that are 25 to 40 times higher. Undergraduate students borrow from Sallie Mae at an adjustable 3.85% rate while graduate students borrow at an adjustable 5.4% rate. Sallie Mae was able to borrow at less than one quarter of 1%. While Sallie Mae has maintained its profitability raking at $2.5 billion in interest payments alone, students carried the burden of cheaply-bought loans financed with tax payer dollars. Warren has called for an investigation into these practices, and an explanation of the lack of accountability for Sallie Mae. ”


Sallie Mae: .25% interest
Students/parents: 3.85-5.4% interest

Comment by my failure to respect is unacceptable
2014-01-27 14:23:04

No different than primary dealer banks….

Comment by Whac-A-Bubble™
2014-01-27 23:06:58

“Sallie Mae: .25% interest
Students/parents: 3.85-5.4% interest”

FedGov’s banking policies are all about spoon feeding gravy to Megabank, Inc now so they never again require a bailout.

Comment by AbsoluteBeginner
Comment by cactus
2014-01-27 14:10:04

In the video above, Zachary Karabell, head of global strategy at Envestnet, joins The Daily Ticker to discuss Rattner’s take on the U.S. manufacturing resurgence.

“It’s certainly true that the lower cost sectors that had been up there as a threat, particularly in China, are not so low cost anymore,” says Karabell. “But the issue is that you have a lot of cool, high-tech hubs and plants but it’s not going to create 1950s employment in manufacturing because you’ve got robotics and technology and highly skilled people manipulating just-in-time manufacturing on floors.”

Karabell’s bottom line? “We’re touting this as a revival…but don’t think that we’re going to suddenly have millions of manufacturing jobs.”

And for the few jobs that are coming back, wages are severly impacted. According to Rattner: “Wages for blue-collar automotive industry workers have dropped by 10 percent, after adjusting for inflation, since the recession ended in June 2009. By comparison, wages across manufacturing dropped by 2.4 percent during the same period, while earnings for Americans in equivalent private-sector jobs fell by “only” 0.5 percent.”

Not to mention that the subsidies Washington and local governments are doling out to keep the additional 586,000 manufacturing jobs are massive. Volkswagen received about $288,500 per worker to bring its factory to Tennessee and Boeing received $158 million to bring only 1,000 jobs to Alabama. Boeing recently threatened to leave Washington unless it was paid $8.7 billion with labor concessions- - Washington state lawmakers agreed to the terms.

“We are not ending a 30-year nightmare or dark period and returning to some sort of golden age. This is going to be a very different economic reality, a heavily subsidized one, a low-paying one, and a high-tech one,” says Karabell.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 15:49:02

I think the Thrive Eighty-Five already has a few government programs going to get Africa all started up and ready to manufacture US goods.

Comment by phony scandals
2014-01-27 17:36:51

Your papers are not in order, come with me.

Comment by "Uncle Fed, why won't you love ME?"
2014-01-27 18:14:47

Are we going to get an ice cream cone? Can anyone play?

Comment by Bill, just South of Irvine
2014-01-27 22:03:38

We can all stop being productive slaves when the thugernment comes for us and we will become children again. That would stop “progressives” in their tracks.

I became a child again in the year 2000. After my dad died, after my aunt died, and seeing my longtime girlfriend fly off to her home on the other side of the world I became a boy. No need to be a home owner. No need to commit to anything.

It’s been the best decision I made to be young again.

Comment by Bill, just South of Irvine, CA
2014-01-27 20:34:37

I took my first big gamble on some Bordeaux this evening. Bought three quality bottles at $100 per. They are 2005 vintage and drinkable through 2025. Should decanter them for a couple hours though. In a few weeks I will pop one open and keep the other two a few years.

I have $10,500 or so of new cash coming in tomorrow from selling off shares of former company stock. It more than offsets the wine buying.

Movable hidable wealth - wine!

Comment by AbsoluteBeginner
2014-01-27 23:41:17

‘Movable hidable wealth - wine!’

Bill, can’t somebody scam wine investors by making knock-off labels and putting them on reproduced bottles ?

Comment by Bill, just South of Irvine, CA
2014-01-28 19:52:28

I have to ask my colleague who has successfully auctioned some wine he’s had for over 20 years.

I’m sure he has answers.

Comment by Bill, just South of Irvine, CA
2014-01-27 21:27:13

If you are “timing” on investments that you made a mint on…

sell. Sell. SELL. SELL. SELL!

How does a gain of $5,000 on $5,000 sound to you in 18 months on market opening the 28th of January?


If you are not timing but dollar cost averaging, continue dollar cost averaging.

Comment by Whac-A-Bubble™
2014-01-27 23:10:22

This seems like a very interesting time for a rate hike! What gives?

Comment by Whac-A-Bubble™
2014-01-27 23:11:47

Jan. 28, 2014, 1:02 a.m. EST · CORRECTED
India surprises with rate hike; stocks, rupee fall
By Michael Kitchen

Corrects the rate action in the second sentence.

LOS ANGELES (MarketWatch) — The Reserve Bank of India surprised the markets Tuesday by lifting its benchmark interest rate, with the rupee and Indian stocks losing ground following the move. India’s central bank raised the policy repurchase rate by a quarter point to 8%, citing inflationary threats. However, the RBI also said that further tightening was unlikely in the near term if consumer inflation remains around its forecast. Most economists had expected no change to the repo rate, according to a Reuters survey. The RBI did keep the closely watched cash reserve ratio, which dictates how much banks must keep in reserve, at 4%. Stocks in Mumbai gave up their gains after the announcement, with the Sensex and Nifty indexes down 0.7% each. The rupee (USDINR -0.73%) also lost ground, with the dollar rising to 63.19 rupees from 62.97 rupees just prior to the decision.

Comment by Whac-A-Bubble™
2014-01-27 23:36:48

NBC News poll: Pessimism defines the state of the union
Mark Peterson / Redux Pictures
More than six-in-10 Americans believe that the nation is headed in the wrong direction, according to the latest NBC News/ Wall Street Journal poll.
By Mark Murray, Senior Political Editor, NBC News

As President Barack Obama enters his sixth year in the White House, 68 percent of Americans say the country is either stagnant or worse off since he took office, according to the latest NBC News/Wall Street Journal poll.

Just 31 percent say the country is better off, and a deep pessimism continues to fuel the public’s mood. Most respondents used words like “divided,” “troubled,” and “deteriorating” to describe the current state of the nation.

On the eve of Tuesday’s State of the Union address, more than six-in-10 Americans believe that the nation is headed in the wrong direction and 70 percent are dissatisfied with the economy.

Comment by Whac-A-Bubble™
2014-01-27 23:39:33

Top Bitcoin executives charged with money laundering in US
By PTI | 28 Jan, 2014, 11.05AM IST

NEW YORK: Two Bitcoin executives have been charged in the US with conspiring to commit money laundering by selling more than US $ one million of the digital currency to users of an illicit online drugs bazaar ‘Silk Road’.

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