Bits Bucket for May 22, 2015
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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DEFINITION of ‘Capitalization Rate’
A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor’s potential return on his or her investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property. If you want to get technical, it is basically the discount rate of a perpetuity.
Capitalization Rate = Yearly Income/Total Value
Remember….. capitalization rates are negative at current grossly inflated asking prices of resale housing.
Bellevue, WA List Prices Plunge 11%; Housing Demand Plummets As Buyers Evaporate
http://www.movoto.com/bellevue-wa/market-trends/
Depreciation:
A decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.
Houses depreciate rapidly.
What are your losses to depreciation on your shanty so far this year?
If you have a 30-year-old house, it has already depreciated to zero, so what is your point exactly?
Houses depreciate and are a loss no matter what age they are my friend.
duh! everyone that has ever bought and sold a house lost a ton of money! that is why they did it again, losing money is fun.
I did it 3x, looking to do it again in a few yrs after 2.0 pops!
Fools math works for you. Carry on.
I work “next door” to Bellevue. A quick check of google show that median household income in Bellevue is $88,000.00/yr. Yet median house price is nearly ten times that at $750K.
Suzanne screwed the pooch on this one.
not everyone makes enough to buy a house. 50% rent.
the fry cook skews the income average.
the fry cook skews the income average.
The fry cook can’t afford to live in Bellevue. They used to live in Renton, but now can’t afford to live there either. Now they commute up from Burien/WhiteCenter/Tacoma.
That’s just it - it’s not average it’s median household income. By definition that screens out both the fry cook and Bill gates.
There’s a lot of single tech guys making in that 80K range, and none of them I know are in a hurry to get married. Consider the millenial-ish folk just coming out of college with a mountain of debt, the marriage rate at an all time low and dropping(a good thing IMHO), and it doesn’t make for a recipe for a lot of buyers spending 800K on a house.
Related item,
Did anyone see the realtwhore.com ad that ran during the Letterman Finale?
Basically it had the cure blonde extolling the virtues of owning your own house including having her move in with you after you sign on the dotted line.
Of course it fails to mention the part where she sleeps with the (entire)hockey team, then divorces you and you end up still making the mortgage payments while you live in a shack somewhere and eat ramen noodles for dinner.
Here is the cure for that particular ailment. Bear in mind though, it is a preventative measure and must be applied BEFORE entering into the contract.
Looks like a good beer drinking URL for later. Thanks!
I’ll repeat myself from a couple of days back on Bellevue. It is mix-shift that is responsible, as clearly shown by the data:
Comment by Prime_Is_Contained
2015-05-21 10:53:02
How about this theory: list price is down 11% YoY, primarily because people are listing smaller houses. Turns out that the SIZE of houses listed has CRATERED 17% YoY!! It has plunged from 2440 sq-ft a year ago all the way down to 2030 sq-ft today.
It’s real data, right there on the link that HA provided; HA just likes to ignore the big picture and imply that some cherry-picked data-point means something that it doesn’t.
Comment by Prime_Is_Contained
2015-05-21 11:01:02
p.s. For a better comparison that is not so noisy due to mix-shift, consider that Median $/Sq. Ft is up very slightly YoY, to $339/Sq. Ft from $338/Sq. Ft a year earlier. Quite a CRATER!!
Falling prices statewide- You Backpedal
Falling prices locally- You backpedal
Kirkland, WA List Prices Plunge 17% YoY As Prices Fall Across State
http://www.movoto.com/kirkland-wa/market-trends/
Does “yearly income” include capital gains or losses?
Investors who buy near a bubble peak typically neglect this component of income, or worse yet, assume it will remain positive forever.
I’m assuming you are being sincere in your question. The answer is no.
NOI (Net Operating Income) is typically the measure used as the numerator in the calculation. NOI specifically excludes capital investments, AND also excludes depreciation and interest cost. Cap rate is BEFORE taking into consideration any leverage. In other countries, people often use “yield” instead of “cap rate” as the lingo.
As long as the income generated on a property is greater than zero, a cap rate cannot go negative just because the purchase price was too high (as HA suggests). If you pay $100,000,000 for a property that only generates $1,000 of Net Operating Income each year, you have a stupid low yield on your investment (cap rate), but it won’t go negative.
That said, if you are buying an apartment investment at a 4% cap, you stand to lose 25% of your value (all-else equal) if cap rates rise to 5%. Conversely, if you buy a multi-tenant industrial project at an 8% cap, you only stand to lose 12% of your value if cap rates rise to 9% (and you have higher income in the meantime).
Some property will be more “shocked” as higher interest rates drive cap rates up than others.
That said, the correlation between higher market interest rates and higher cap rates isn’t perfect. This is because often times historically, higher interest rates correspond to a better economy, and greater rent growth. Real estate generally isn’t like a bond in that regard (for a bond, your coupon is fixed, for RE, the coupon changes with the market). I saw a study that said cap rate correlation to interest rates was only about 0.5 (a 1% increase in interest rates generally corresponded to only a 0.5% increase in cap rates).
That’s a nice theoretical average. However, I think for people buying property at historically low cap rates today, the correlation could be closer to 1 in the near term.
You’re misinforming again. Cap rates can and do go negative and are currently negative at current asking prices.
What would make you think you can earn a profit on a depreciating asset at current prices?
The only way any of this ever works in a bubble like now is by selling for outsized bubble gains. Some get lucky, most lose their asses. The various rental frauds here will soon be joining the long string of assess speculators we’ve sent to the graveyard over the years.
Cap rates cannot go negative if prices go up.
They can only go negative if NOI is negative.
NOI does not include depreciation, interest cost, or capital expense.
Property values decline because either NOI falls, or cap rates rise.
This is not misinformation, this is Real Estate 101. Put down the crayon and learn something.
Cap rates do go negative and are negative.
Houses depreciate rapidly.
Prices fall because they’re grossly overpriced.
Your misinformation will always be corrected.
Assless. Not assess. If you do not assess your losses, you will end up assless.
Rental_Fraud & Co lost their ass long ago which has subsequently caused them to lose their mind which we’re all now observing.
“The only way any of this ever works in a bubble like now is by selling for outsized bubble gains. Some get lucky, most lose their asses.”
Even when people sell at the peak, most of them buy another house right away anyway, so their next house is just as overpriced, if not more so. Only the few who are smart enough to rent actually make out.
Why would you want to define “Cap Rate” to exclude the most important component of income in a bubble market? Seems like bad planning.
Even when people sell at the peak, most of them buy another house right away anyway, so their next house is just as overpriced, if not more so. Only the few who are smart enough to rent actually make out.
For a lot of them, selling and then renting can feel like a leap of faith. They don’t have a crystal ball that tells them when the crash will happen, so they fear leaving money on the table by selling too soon.
+1 to Rental Watch: he or she has it right. Cap Rate can never go negative as long as income is greater than zero.
Commenters seem to be confusing cash flow vs. unrealized capital losses/gains. If I get $1500/mo rent and pay $1000/mo on a fixed mortgage for a rental, it doesn’t matter if the house loses 50% of its market value: it remains a positive cash flow investment. On the asset side it’s a big unrealized capital loss. Sort of like sky-high yields on junk bonds… works as long as the income keeps coming in. Trouble happens on default or a sale.
“Cap Rate can never go negative as long as income is greater than zero.”
But if your cap rate is, say, 4%, and your capital loss is 10%, then your income would go negative. In that case, would your cap rate go negative?
I find these arbitrary accounting constructs so confusing!
DEFINITION of ‘Return’
The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage.
There is no “income”. Nothing cash flows at current grossly inflated asking prices.
Get it right.
Wow you guys live in fairy tale land. If you are renting a property out for $5000/ yr, and you have to put a $6000 roof on it, your net income is negative. Thus your cap rate is negative. You might be able to amortize that over time, but it is absolutely possible to have net negative income. You can’t forget property taxes either, as those are an absolute cost to carrying a property, even if you paid all cash.
http://finance.yahoo.com/news/rents-are-rising–but-don-t-expect-broad-inflation-to-surge–merrill-economist-144405395.html
Of course, the landlord might just raise the rents to pay for the roof.
Remember….Owner expenses are never automatic passthrough costs to the end user.
But if your cap rate is, say, 4%, and your capital loss is 10%, then your income would go negative. In that case, would your cap rate go negative?
Nope, your cap rate would still be 4%, even though you may have lost money on the investment. Many people are confused on this point, because they misunderstand the definition.
Think of it more like the yield on a bond. You can lose money on a bond investment (capital loss), even though the yield is still positive. Cap rate is largely determined by the price that you pay—just like your bond yield is determined by the price at which you purchased the bond (NOT the coupon rate, but the market rate at the time of purchase, unless you purchased it at the initial auction, in which case they would be the same).
‘the landlord might just raise the rents to pay for the roof’
A long time property owner told me once that he always sets his rents under the market to maintain full occupancy. It really is the market that determines these things. While individual persons may view and act differently, here’s one take on rents; if I can say, the roof is being replaced, I can therefore raise rents. What that means is I could have raised rents all along and failed to do so. Any expenditure doesn’t figure into it. Another thing, the higher the rent the harder it is for that particular renter to pay it. That is always on a landlords mind. Because if they can’t afford the rent you will find out soon enough. Also, what goes up can go down. Who here has never seen rents drop in their lifetime? I certainly have. I’ve posted on recent rental declines in North Dakota, Australia and Canada. It’s like anything; if it doesn’t sell, lower the price.
and you have to put a $6000 roof on it, your net income is negative. Thus your cap rate is negative.
You are misunderstanding the different between Net OPERATING Income and Net Income. They are not the same. An annual set-aside for maintenance, including an every-thirty-year roof repair is likely included in the former; the actual payment for the roof is not.
It is a rational argument but not all landlords act in a rational manner, many do not raise rents until something happens to disrupt their cash flow, so if the government raises their taxes or the roof springs a leak that is when they raise rents. With a tax raise it is easier since everyone in their area will be more likely to raise.
Depreciation is far more costly than a roof every 30 years. And rooves don’t last 30 years.
And a depreciating house is a crushing loss at current prices no matter what your misunderstanding is about OPERATING income and NET income.
P.S. going to the rationale landlord argument, it is just like home sellers. Rationally, you price your house compared to the competition. But how many homeowners in a down market will say I paid $250,000 and I made $50,000 in improvements so I must get $300,000. If the market prices the house at $225,000 that is what they can get and if the market is falling rationally they should price at or slightly below to make a quick sale before values go even lower. However, it is almost rare that they initially price the house rationally. Many landlords particularly the ones with just a few rentals are equally irrational, so their expense can become your problem. Even if you can find a new rental, you still have to pay the not insignificant cost of moving.
‘many do not raise rents until something happens to disrupt their cash flow’
They are running a risk. The best time to raise rents is between tenants. Then you can qualify the tenant at the new amount. But being arbitrary invites late-payments, evictions, damages. Late payments in Arizona are problematic, because you never know when they are planning to bail on you and see what they can get away with. So you have the time and expense of 5 day notices, court filings, etc. That can add up too. If you have someone who is late all the time, you will find yourself with a new, low paying part-time job. Much better to have a sustainable rate that suits everyone involved.
And the cash flow thing works both ways. I was in small claims court recently and had to sit through an eviction proceeding. The tenants remarked, “everyone knows you move around tax refund time because that’s when you have the money.” I had never thought of it that way.
‘it is just like home sellers’
A sale is a one time thing, then the payments are the lenders problem. Rents are every month, so I have to consider the future. And it is rare that circumstances don’t change. If a tenant came to me and said, ‘I lost my job, can I skip the rent for a while…or can you lower the rent’, I wouldn’t go along.
And the cash flow thing works both ways. I was in small claims court recently and had to sit through an eviction proceeding. The tenants remarked, “everyone knows you move around tax refund time because that’s when you have the money.” I had never thought of it that way.
Good chance they are receiving the earned income credit.
You becha.
One more thing about rents; we read lately about the percentage of renters paying 40-50% of their income on rents. This means a substantial number of landlords aren’t qualifying their tenants based on income. Best lease application I ever saw said in bold at the top; RENTS CAN BE NO MORE THAN 30% OF TAKE HOME INCOME!
Hey RW, serious question: what are the cap rates that you are seeing in apartment builds today?
That all depends how well you understand construction contracts and execute the work. You can make a killing or lose your ass.
Oh, horrors! The most inane and empty-headed MSM show on Tee-Vee is about to go under.
http://www.vanityfair.com/hollywood/2015/05/the-view-barbara-walters-departure-drama
Every day a new story comes out showing the depth and breath of Hillary Clinton’s sleaziness and patronage, yet because 95% of the electorate are as amoral as they are stupid, she has a good shot at the White House.
We are so screwed.
http://www.businessinsider.com/hillary-clinton-sanctioned-tax-breaks-for-wealthy-charity-donors-2015-5
Sad pandas will still vote for her.
Imbeciles, of which we’re well stocked, will vote for her. Or Jeb, who may be even worse in his own way.
Hillary’s handlers will want to insulate her from the serfs insofar as possible. Too much chance of inconenient questions surfacing.
http://www.mcclatchydc.com/2015/05/21/267463/clinton-campaigning-in-a-bubble.html
That headline has a double meaning on this board.
“Imbeciles, of which we’re well stocked, will vote for her. Or Jeb, who may be even worse in his own way.”
Anybody who thinks the Iraq War wasn’t such a dumb idea is definitely worse.
Anybody who thinks the Iraq War wasn’t such a dumb idea is definitely worse.
She showed that she did not learn a darn thing after her Iraq vote by pushing for military intervention in Libya and Syria.
“She showed that she did not learn a darn thing after her Iraq vote by pushing for military intervention in Libya and Syria.”
I’m not saying she wasn’t gutless when she voted for the Iraq War, because she was. But she seems to have learned the lesson by losing to Obama. Jeb Bush hasn’t learned any such lesson, yet.
How can you say she learned a lesson when she was one of the main advocates for war in Libya and Syria. I have posted a few times this was against the advice of the military?
http://www.thenation.com/blog/159346/obamas-women-advisers-pushed-war-against-libya
The irony is that pushing that war, Obama has been saddled by much higher oil prices. HA is not totally wrong, lower prices are good for the economy, but only if they are market driven. If they are not market driven but a result of government intervention they hurt an economy and usually lead to higher prices over the medium and long term and oil is about to prove this.
“by pushing”. A stable Libya by now might be producing three million barrels of oil by now, making the world less dependent on high cost shale oil. The loss of production kept the price of oil around $100 a barrel which averaged over a year often led to higher prices than 2008, since the $147 price was for a very short time and it spent almost as long in the mid-thirties towards the end of the year. Combine high oil prices with Obamacare and you have the worse economic recovery EVER.
A Sad Panda is enough to bring anyone down.
Sad Panda - YouTube
http://www.youtube.com/watch?v=vymvr9jv9ho - 214k -
‘Everyday Americans need a champion, and I want to be that champion.’
By David Martosko
Published: 08:52 EST, 12 April 2015
Hillary Rodham Clinton is running for president, leaning on a message of middle-class rescue and claims that America’s economy is ’still stacked in favor of those at the top,’ according to a campaign video that went online Sunday afternoon.
‘I’m getting ready to do something,’ Clinton says in the brief ad, following a series of clips of ordinary-looking Americans describing what they’re ‘getting ready’ for.
‘I’m running for president,’ she says.
‘Everyday Americans need a champion, and I want to be that champion.’
That message is a daring one, given Clinton’s wealth. When she left the U.S. State Department in 2013, her financial disclosure report showed that her combined net worth with her husband was between $5.2 and $25.5 million. Millions more rolled in when she published her memoirs.
She famously claimed last year that she and former president Bill Clinton were ‘dead broke’ whenthey left the White House in 2001 – when they moved into a palatial home in a tree-lined New York City suburb.
Read more: http://www.dailymail.co.uk/news/article-3035748/Everyday-Americans-need-champion-Wealthy-Hillary-Clinton-enters-race-president.html#ixzz3asCkfUZu
Follow us: @MailOnline on Twitter | DailyMail on Facebook
‘Everyday Americans need a champion, and I want to be that champion.’
That message is a daring one, given Clinton’s wealth.
What’s “daring” about duping an electorate with an imbecile quotient of 95%?
As a weekend only American, I don’t feel represented.
Hillary is my Cloward-Piven crash the system choice.
If the left on this board believe what they have posted for years, they would all be lining up behind Bernie. Not so long ago, PB was saying he would never vote for Hillary while he was pushing for Obama’s reelection, it is strange, he has not said that recently.
If I thought Bernie Sanders had a chance to win, I’d vote for him, or Elizabeth Warren for that matter. But if the choice is between Hillary and some right wing war monger, I’m voting Hillary.
If you want your neocon, you can keep your neocon, I guess if they have a D behind their name, it is fine.
And THAT in a nutshell is the problem. You have been convinced that there are only two choices, but I guarantee there will be others on your ballot - pick one of them.
Whether or not they win this time, the more numbers we get in every election, the more people will realize they CAN win if every idiot who thinks they can’t actually votes for someone besides the “single party posing as two parties” that we currently have.
YOU. ARE. THE. PROBLEM.
But if the choice is between Hillary and some right wing war monger, I’m voting Hillary.
Translation: if the choice is between a left-wing war monger or a right-wing war monger, I’m voting for the left-wing war monger.
If I thought Bernie Sanders had a chance to win, I’d vote for him, or Elizabeth Warren for that matter. But if the choice is between Hillary and some right wing war monger, I’m voting Hillary.
Spoken like a true vegetable. By voting for HillaryJeb, you are giving explicit sanction to the oligarchy’s puppet show. Only when people start boycotting elections en masse, or better yet voting for NOTA - none of the above - will Wall Street’s Republicrat duopoly realize they have lost any legitimacy they once had. Then and only then will true reformers emerge, not the controlled opposition like Fauxahontus.
Only when people start boycotting elections en masse, or better yet voting for NOTA - none of the above - will Wall Street’s Republicrat duopoly realize they have lost any legitimacy they once had. Then and only then will true reformers emerge, not the controlled opposition like Fauxahontus.
There are already plenty of people who don’t vote. They’re nearly low- and middle-income people. The rich still get out and vote. Wall Street is quite is quite happy with that arrangement.
They vote for people that represent them well. Only when people refuse to vote for people that don’t, will there be real change. I am not going to vote for Jeb under any circumstances and will write in Bernie if he is on the ticket. How about the left pledging that if Hillary is on the ticket they will write in Paul, does not matter which one?
if he is on the ticket.
Meant: If he is not on the Democratic ticket or I will vote for him if he is and is running against Jeb.
If the rank and file Democrats right now said they will not vote for Hillary in the general election, her money backers would abandon her. Already hearing rumbles that the money backers of Jeb are getting worried. If we can’t stop a Jeb/Hillary match up, it is over no matter who wins, we have told the powers that be that we will accept anybody with the R or D attached to his or her name.
Well, Ray is suggesting that people just stay home, which won’t affect anything really. We haven’t seen nay history of write ins having any affect either in this country. If you like Bernie you should be able to vote for him in the New Mexico primary.
If you like Bernie you should be able to vote for him in the New Mexico primary.
No but I am registered as an independent and the state largely controlled by Democrats forces you to register as a Democrat or a Republican if you want to vote in their primaries. And it is not a question of liking Bernie, it is a question of voting against the puppet picked by the puppet masters.
“…while he was pushing for Obama’s reelection,…”
Liar.
I was pushing to show how your BS Rasmussen poll numbers were wrong. Turns out I was right!
Running a criminal cartel gets expensive, what with all the tax-deductable fines, but as long as 95% of the electorate remains docile and stupid, rest assured, no one is ever going to jail. If you like your crony capitalism….
http://www.zerohedge.com/news/2015-05-22/sec-commissioner-furious-sec-has-made-mockery-recidivist-criminal-behavior-banks
“US Farmland Prices Fall for 18th Month”
http://www.agrimoney.com/news/us-farmland-prices-fall-for-18th-month–8366.html
Worthless dirt…. worthless worthless dirt… It’s more worthless with each passing day.
appreciation:
The increase in the value of a property due to changes in market conditions, inflation, or other causes.
Houses depreciate rapidly. Just like cars.
a car is disposable. a house house eternal value.
HA is right: appraisals come with a life expectancy. I think mine was 60 or 75 years, I don’t recall exactly. Houses do slowly deteriorate with time, even if well-maintained. Like old cars they get to the point where the cost of repairs is greater than the market value.
they are still giving out 30 year loans on 100 year old houses.
And the buyer eats the losses.
Remember….. losses always result from buying a depreciating asset at a grossly inflated price.
“They are still giving out 30 year loans on 100 year old houses.”
Anybody buying a 100 year old house better have a complete set of tools, and know how to use them.
“US Import Prices Fall For 10th Straight Month”
http://articles.economictimes.indiatimes.com/2015-05-13/news/62124695_1_import-prices-10th-straight-month-washington
Remember… Falling prices to dramatically lower and more affordable levels is what your and my economy needs to recover.
“Britain Posts First Fall in Consumer Prices Since 1960″
http://abcnews.go.com/Business/wireStory/britain-posts-fall-consumer-prices-1960-31140356
“Oil Prices Fall On Weak China Data”
http://www.gmanetwork.com/news/story/487130/economy/business/oil-prices-fall-on-weak-china-data
OMG, consumer spending in China “only” increased by 10%, the horror. But don’t worry the Chinese leaders also find that unacceptable so they took actions which made the Chinese stock market hit another seven year high:
http://www.shanghaidaily.com/business/China-stocks-hit-7year-high/shdaily.shtml
BTW, if we had a ten percent growth in consumer sales we would have around a 7% GDP growth rate even with the rest of the economy being flat due to over 70% of our economy being consumer driven.
“if we had a ten percent growth in consumer sales”
Consumer sales aren’t going to grow because prices are massively inflated.
“…around a 7% GDP growth rate…”
Got weasel words?
I have always used the phrase around 7% growth, like anyone could pick the exact growth rate right to .1 percent. You just do not like it because I was right in 2014 and you were wrong and I am proving to be right this year because China is successfully defending that level and it is not collapsing like you thought. They call it the preliminary PMI for a reason, China is actively working to bring it up just like it did last month. The old Soviet Union 2/3 of the production occurred in the last 1/3 of the month.
Just like Chinese students come on unhinged if they get four As and one A-, the Chinese government cannot live with anything less than around 7% growth. Thus, they will have it.
“But don’t worry the Chinese leaders also find that unacceptable so they took actions which made the Chinese stock market hit another seven year high”
The Chinese stock market is an even bigger casino than ours. Check out the pictures of China’s savvy stock investors:
http://davidstockmanscontracorner.com/the-tulip-bulbs-of-shanghai-are-crashing/
Those grandmothers have a higher IQ than 95% of the delegates at the Democratic convention and 75% of the delegates at a Republican convention.
I bet they can knit those doilies at a 6th grade level at least.
If you are talking about the Democratic delegates I think you are right. The female Democratic delegates at the fifth grade level and the male delegates at the eighth grade level, due to more females than males it averages out to the sixth grade level.
I personally know a Chinese grandmother watching the stock market most days over there. My hope is that she gets out and stays out. But regardless, it’s interesting that their average old folks are watching the markets while ours are watching Fox.
Or in the actual casinos. I hit the buffets and always win, but I walk pass so many people with canes and walkers playing the slots getting to the buffet, I think I am in an assisted living facility.
“Soybean Prices Fall”
http://www.marketwatch.com/story/soybean-prices-fall-as-usda-forecasts-big-crop-2015-05-12
Remember…. everyone loves lower prices.
I love me some falling Soybean Prices.
I love me some falling Soybean Prices.
Soybean farmers don’t.
They’ll survive and the rest of the world thrives with falling prices to dramatically lower and more affordable levels.
Baltimore Rioters Burn Down House & Medical Equipment of Severely Disabled Child
Apparently only SOME black lives matter
Trey Sanchez
5.21.2015
Khai’Lee Sampson is a 7-year-old child that suffers from severe cerebral palsy caused by an asthma attack when he was 18 months old that left him without oxygen for 45 minutes. A few weeks ago, his house was burned down during the Baltimore riots, destroying all of his medical equipment that keeps him alive.
“They took everything from my child,” the boy’s mother, Laporsha Lawson, told The Washington Post.
“Everybody wants justice for Freddie Gray. But what about justice for Khai’Lee?” Lawsom said, feeling “betrayed by her neighborhood.”
It is reported that Lawson and Khai’Lee are living with her parents until they find another rental house. Help and donations have been pouring in from schools, centers, and neighbors, as well as the boy’s father and other relatives.
Fundraisers online have surpassed $21,000, but that amount won’t cover all of Khai’Lee’s medical needs. Without a wheelchair, the 40-pound boy has to be carried around. “It’s hard to carry him,” Lawson said. “But I’m his mom. This is what I do.”
The mother hopes she can get back into the home to see if anything is salvageable.
Photo: Karl Merton Ferron/Baltimore Sun
http://www.truthrevolt.org/…ers-burn-down-house-medical-equipment-severely-disabled-child - 73k -
This wasn’t part of the narrative that real journalists at the New York Times scripted.
Don’t Bring Me Down
The mayor had to give them their space to riot.
Good thing there are great gun control laws in MD so that people can’t defend themselves or their property…
Laporsha Lawson has no doubt spent a lifetime voting for corrupt Democrat politicians at the local, state, and national level. So now her neighborhood is in a dystopian maladministered Thirld World hellhole. Funny how those chickens have a way of coming home to roost.
You have no doubt at all about this person’s voting habits? How is that?
“India’s Wholesale Prices Fall for Sixth Consecutive Month”
http://www.wsj.com/articles/indias-wholesale-prices-fall-for-sixth-consecutive-month-1431588191
You want to offload it? Get Slashin’.
“Germany Producer Prices Fall More Than Expected In April”
http://www.rttnews.com/2501414/germany-producer-prices-fall-more-than-expected-in-april.aspx
Remember…. Falling prices makes your wallet grow fatter.
More positive economic news….
“Coffee Price Fall Puts Brakes On Colombia Coffee Revival”
http://www.agrimoney.com/news/coffee-price-fall-puts-brakes-on-colombia-coffee-revival–8360.html
B..b..but I thought the Health Insurance Company Enrichment Act, aka Affordable Care Act, was supposed to make heath insurance LESS expensive.
F**k you, Obama Zombies, for foisting this racket unto the rest of us.
http://www.zerohedge.com/news/2015-05-22/core-consumer-prices-jump-most-march-2006-thanks-surging-healthcare-costs
B..b..but I thought the Health Insurance Company Enrichment Act, aka Affordable Care Act, was supposed to make heath insurance LESS expensive.
A couple of minor mistakes I will fix them, I thought the Health Insurance Company enrichment Act, aka Unaffordable Care Act, was suppose to make health insurance LESS expensive. You probably thought Obama was going to bring peace to the Middle East too.
Don’t forget the oceans - the oceans were gonna be lowered under his watch as well - remember?
Yes. But I was trying to avoid the AGW debate today.
AGW is never a debate here. It is merely a game of insult tennis.
The cat is out of da bag!
This inevitable result has been bandied about for years now - strange how long it’s taken for people to believe it.
Buyer’s remorse is tough to accept, I guess. People just don’t want to believe they were ever that dumb.
Ray K -
another tid bit for your data bank….
http://davidstockmanscontracorner.com/if-you-like-your-obamacare-insurance-rates-you-cant-keep-them/
Comment by Dman
2015-05-21 10:54:32
“There have been lots of posts by 2Banana and Phony Scandals today. That’s enough to bring anyone down.”
Electric Light Orchestra - Don’t Bring Me Down - YouTube
http://www.youtube.com/watch?v=-rD-0tlGGPo - 309k -
A few links from Salon, Slate, or Huffington Post should cure that internet butthurt.
Midol - Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/Midol - 28k -
Things go better with Koch.
“Things go better with Koch.”
That’s a riot.
ri·ot (rī′ət)
n.
1. A wild or turbulent disturbance created by a large number of people.
2. Law A violent disturbance of the public peace by three or more persons assembled for a common purpose.
3. An unrestrained outbreak, as of laughter or passions.
That’s a riot.
Phony, you’re missing the news on the Twin Peaks white guy riot with your outdated focus on Baltimore.
Why won’t you get with the times, man? You’re so busy with yesterday’s news.
Biker gangs getting military weaponry
CNN
Waco, Texas (CNN)Texas law enforcement officials are investigating what they say are new threats against officers from biker gangs in the wake of a recent shootout in Waco.
Members of the Bandidos biker gang who are in the military “are supplying the gang with grenades and C4 explosives,” according to a bulletin issued Thursday by the Texas Department of Public Safety and reviewed by CNN.
The bulletin warns of plots targeting high-ranking law enforcement officials and their families with car bombs.
Too bad these guys aren’t black or Muslim - we would be reading a lot more posts about them if they were.
” we would be reading a lot more posts about them if they were.”
Exactly. If those were black motorcycle gangs involved, we’d be reading our 50th post on it today from the phony, AQDan, 2ban triad. And we’d be hearing about it for months afterwards, too.
But, they were white, so…crickets
If they actually do something the board will be filled with posts. But we have not seen any follow up attacks on the police. Meanwhile the “hands up don’t shoot protests” have led to actual deaths of police officers.
They’re just exercising their rights
If they actually do something the board will be filled with posts. But we have not seen any follow up attacks on the police.
If a black biker gang was said to have military grade weapons and was allegedly threatening to kill cops and their families, you guys would be apoplectic.
” you guys would be apoplectic.”
But since these gang-banger rioters are white, they’re waiting for “follow-up attacks on the police” until they find it comment-worthy.
No double standard there!
Where is 1/2 term Governor Palin in support of all of the Harley riden’ American patriots?
We would have a hard time reading about it before it happened because I know CNN would not cover it. The difference is whites find no need to protect white criminals. The truth is that for years gangs primarily Hispanic and black dominate gangs have been getting military weapons and for years the press has ignored the story, so you are flat-out wrong on this one Colorado. And yes, they have threaten cops after just about every shooting of one of their members but seldom do they carry through with the act.
Read this and see that it is just the opposite neither the press nor this board has paid enough attention to Somali gangs and gangs in general:
http://www.fbi.gov/stats-services/publications/2011-national-gang-threat-assessment
“And yes, they have threaten cops after just about every shooting of one of their members but seldom do they carry through with the act.”
So there’s a presumption of innocence when it’s white gangbangers, and fifty posts presuming guilt when it’s not.
“And yes, they have threaten cops after just about every shooting of one of their members but seldom do they carry through with the act.”
But if a cop feels threatened by a black guy for any reason, it’s okay if they shoot him in the back. Got it.
So there’s a presumption of innocence when it’s white gangbangers, and fifty posts presuming guilt when it’s not.
I was actually talking about black and Hispanic gangs there. They often threaten the police and we hear nothing about it. Just read the FBI report and you will find that we have not hyped it at all. I knew about this and I cannot remember posting one comment on it. It was not a major issue to me, I was certainly not apoplectic about it.
Hey, I found a housing link in the FBI report:
Some gangs, such as the Bloods and Gangster Disciples, are committing sophisticated mortgage fraud schemes by purchasing properties with the intent to receive seller assistance loans and, ultimately retain the proceeds from the loans, or to comingle illicit funds through mortgage payments. Gang members are also exploiting vulnerabilities in the banking and mortgage industries for profit.
◾According to open source reporting, in April 2009, members of the Bloods in San Diego, California were charged with racketeering and mortgage fraud.53
BTW, from Wikipedia for those not familiar with the Gangster Disciples a.k.a “community organizers”:
The Gangster Disciple is a gang which was formed on the South-side of Chicago in the late 1960s, by Larry Hoover, leader of the High Supreme Gangsters, and David Barksdale, leader of the Black Disciples. The two groups united to form the Black Gangster Disciple Nation (BGDN).
The gang has made several attempts to legitimize their image. Some members dropped the “B” and began to call themselves GDs or Gangster Disciples. In the 1990s the Gangster Disciples entered into politics in the Chicago tradition of Black Panthers, Blackstone Rangers, Latin Kings, Vice Lords, Black Disciples and Young Lords through the formation of the “Growth and Development” movement. Outside of Chicago some gangs will still go by the old name of BGD.[2]
Gangster Disciples have been documented in the U.S. military, found in both U.S. and overseas bases.[3] Graffiti characteristic of the Gangster Disciples has been reportedly seen in U.S. military bases in Iraq and Afghanistan.
” exploiting vulnerabilities in the banking and mortgage industries for profit.”
lol. Sounds like the white gangbangers are a lot more dangerous.
Too bad these guys aren’t black or Muslim - we would be reading a lot more posts about them if they were.
Nice job of race-baiting…
And:
But if a cop feels threatened by a black guy for any reason, it’s okay if they shoot him in the back. Got it.
I assume this is a reference to the Michael Brown shooting, as there was an allegation by his (lying) friend that he was shot while running away. But you have the facts entirely wrong. There were no wounds to Brown’s back. Read the evidence—you apparently bought the lies hook, line, and sinker.
Facts?
Evidence?
Are you trying to bring Dman down with facts and evidence?
“Phony, you’re missing the news on the Twin Peaks white guy riot with your outdated focus on Baltimore.”
Does George Soros have bus loads of protesters on the road to Waco for a Bandidos biker gang lives matter riot?
Or are they waiting for everyone to check in while they find the grenades and C4 explosives?
“Does George Soros have bus loads of protesters on the road to Waco for a Bandidos biker gang lives matter riot?”
It sure would be funny if he did. I’ll suggest it to him tomorrow when we golf.
Things go better with Koch.
I’d like to buy Koch the World.
Are you dressing up for Denver Comic Con?
Gonna be another year of record attendance
I’ll be there. Maybe I can cosplay as an oligarch.
I’ll be there. Maybe I can cosplay as an oligarch.
It’s an expensive costume, but it does sound fun to go as Mr. Banker.
It’s an expensive costume, but it does sound fun to go as Mr. Banker.
Yes, but that high class hooker can set you back for a lot.
I thought if you spent enough on the rest of the costume the girl was free?
Yep -
And this one “Don’t let it get you down - it’s only castles burning”…..(Neil Young)
2 B and PS - just can’t handle the deluge without my morning cup o joe!!
+1 After The Gold Rush
Most Saudi oil comes from its Eastern Province, which is populated by…Shias. If the Sunni-Shia conflict starts playing out in Saudi Arabia, we could end up paying a lot more for oil.
http://news.yahoo.com/suicide-bomber-strikes-saudi-shiite-mosque-several-casualties-101937898.html
Yes, I have talked about this earlier in the year it is not a new problem.
We are very lucky that you are on the case! Please keep us informed.
The Kabuki theater rolls on. Moar extend and pretend!
http://www.telegraph.co.uk/finance/economics/11622754/Merkel-doubts-Greek-deal-as-leaders-decide-over-euro-fate.html
But mutti has no courage. She will do whatever bankers tell her to do.
“She will do whatever bankers tell her to do.”
As do all of our employees.
April wholesale prices fall 2.2% on year
Japan: “April Wholesale Prices Fall 2.2% On Year”
http://www.japantimes.co.jp/news/2015/05/15/business/economy-business/april-wholesale-prices-fall-2-2-year/
Falling prices sure does make our wallets fatter.
What’s this? Futures are showing a strange shade of green. Usually on these ultra-thin volume trading days the algos manage to levitate the market on no volume whatsoever to lure in the retail bagholders. Is something amiss in the force?
http://www.bloomberg.com/markets/stocks/futures/
Region IV
Don’t Bring Me Down
Those who can, do; those who can’t, blog about it
http://www.picpaste.com/IMG_20150517_093104-oEsVKywc.jpg
Region VIII
Reminds me of this …
https://www.google.com/search?q=chilkoot+pass+photos&biw=1813&bih=857&tbm=isch&tbo=u&source=univ&sa=X&ei=EzNfVfryLc_doAT7nIJg&ved=0CB0QsAQ&dpr=0.75
The sheeple say Congress is doing a sh*tty job, yet who is it that keeps electing Wall Street’s Republicrat hirelings? Remind me again….
http://www.people-press.org/2015/05/21/negative-views-of-new-congress-cross-party-lines/
Bend over, American workers. And thank your union hierarchy for selling you down the river.
http://apnews.myway.com/article/20150522/us–congress_rdp-95d5f0f787.html
See what happens when inflated prices fall? The economy accelerates
“Gas Prices Fall, And Restaurant Sales Surge”
http://nrn.com/blog/gas-prices-fall-and-restaurant-sales-surge
“Copper Prices Fall After Weak Chinese Data”
http://www.news.com.au/finance/business/copper-prices-fall-after-weak-chinese-data/story-e6frfkur-1227354399946
Falling prices=Net Postive
(Platts)
Updated: 2015-05-22 08:53
Counter:
China’s refined copper consumption is expected to see a 4%-5% year-on-year increase in 2015, Shen Haihua, senior portfolio manager of HFZ Capital Management told Platts on the sidelines of the LME Week Asia Seminar in Hong Kong late Wednesday, May 20.
According to figures released by state-owned nonferrous metals information provider Beijing Antaike, refined copper consumption for 2014 totaled 8.72 million mt, up 6.3% compared with the 2013 level.
“I am not worried about the overall copper consumption in China this year, supported by stable demand in China,” Shen said.
But demand may slow down starting from the fourth quarter of this year and early next year, he added.
“Copper stock levels are down in China but prices [are] staying weak. I expect copper prices will continue to be affected by Chinese consumption as well as the macroeconomic environment,” Shen said.
Refined copper is commonly consumed by the power, construction, air-conditioning and transport sectors.
HFZ Capital Management invests in commodities futures and stocks.
The company manages the Hong Feng Zheng Fund which seeks to generate returns through arbitrage and relative value opportunities within the metals sector.
HFZ Capital Management is a joint venture between Red Kite Management and Maike Metals International, one of China’s largest metals and mining groups.
Dead.Cat.Bounce that hasn’t happened.
You call oil a dead cat bounce, when something is 2 to 3% off its low it is reasonable to call it a dead cat bounce when it is up 50%, it is a bull market.
Update: Crude Oil Down 40% YoY And Falling
http://www.marketwatch.com/investing/future/crude%20oil%20-%20electronic
You call it a recovery when oil prices rally by 1% over one day, even though they are still down by 40% year-on-year.
No. It is you that makes a big deal over one day one percent movements, I only post when you have a 2 to 3% movement after you have commented on a 1% movement usually the day before. But in the end we have moved from $42 to around $60 and the party is just getting started.
But being a little late to the party and then telling people to buy just before the OPEC meeting? Now, is the time to hold and wait, not aggressively buy. Yes, I think we are going up but the risk/reward just before an OPEC meeting is not worth it unless you know with certainty that OPEC is going to cut in two weeks.
http://247wallst.com/energy-business/2015/05/22/merrill-lynch-raises-energy-outlook-4-top-oil-stocks-to-buy-now/
BTW, I am sure many on this board will say after these nuclear plants come on line and reduce coal demand, that the reduced coal demand is a sign of a collapsing economy:
http://www.shanghaidaily.com/business/energy/Chinas-nuke-power-size-to-hit-30m-KW-this-year/shdaily.shtml
What matters is collapsing oil demand in a world awash with crude oil.
“China’s refined copper consumption is expected to see a 4%-5% year-on-year increase in 2015, Shen Haihua, senior portfolio manager of HFZ Capital Management”
China isn’t even pretending to try to finish the ghost cities and empty towers anymore. Just who is going to be using all this copper?
If you are going to assume facts not in the record, you will reach the wrong conclusion. China continues to build and people continue to buy. Not in all cities and not in all developments but in enough of the country to push up the use of copper.
The dreams and miracles of China permagrowth have broken down.
Copper and oil have told us this for over a year. Copper imports in China have passed a spectacular double peak moonshot and have clearly collapsed by 50%. Copper miners are shutting down just like the frackers. The boom is over.
Check out the max timeframe on this
http://www.tradingeconomics.com/china/imports-of-unwrought-copper-copper-products
It clearly shows the bottom was made last July.
Update: China GDP Growth Down 50% And Falling
https://goo.gl/fehojs
We need these falling prices to continue to accelerate the economy.
How much has Apple’s growth rate fallen since the 1980s?
A more succinctly absurd comment cannot be added.
We are very fortunate Albuquerquedan is able to spend his valuable time interpreting the data for us!
“Palladium Prices Fall on China Car Sales”
http://www.wsj.com/articles/gold-steady-palladium-falls-on-china-car-sales-1431356697
Inflated prices=Cratering Demand
LOSSES?
Houses are always losses because they depreciate.
“I molested some folks” — Josh Duggar
Duggar was running a used-car lot before he became the new face of the Family Research Council. Duggar’s dad, Jim Bob Duggar, served in the Arkansas House of Representatives from 1999 to 2002. As executive director of FRC Action, Josh Duggar would attend the major functions and share photos of himself with Republican candidates.
Sounds like a realtor.
Does “smaller government, lower taxes, and less regulations” also include lowering age of consent laws, LOLZ
Also note that when Lena Dunham admitted to molesting her sister in her own autobiography, she was given a pass, because Patriarchy™
But when Josh Duggar diddles a sister (or four) he gets crucified on the front page of the Washington Post
LOLZ he tweeted a picture of himself with Scott Walker three days ago
He’ll now want to distance himself from that sleazebag neo-con Wall Street stooge. Duggar might be a child molestor, but Walker and his ilk want to bugger the middle and working classes in this country on behalf of his oligarch puppetmasters.
“The Family Research Council (FRC) is an American conservative Christian group and lobbying organization formed in the United States in 1981 by James Dobson.”
It’s always the ones who talk about sin the most that you have to keep the closest watch on.
Molesting four of your sisters is low hanging fruit
If you’re a member of the U.K. Parliament, you get to film your own snuff porn with preteen boys
Also quite popular with the Davos crowd
And you wonder why the fundamentalists Christians really believe that the world is being run by an anti-Christ? Some of the things I see and read have me wondering if they are right that the end is near.
IIRC, the Anti-Christ will claim to be Christ at some point. Now I know that the Davos crowd think they are gods, but so far, AFAIK, none of them has stepped forward and said “I’m back!”
It’s always the ones who talk about sin the most that you have to keep the closest watch on.
What better way to cover up your bad behavior than to rail against said behavior?
While I don’t agree with his theology I do admire how Billy Graham always kept his personal behavior above reproach.
Read some real biographical work on Graham and you will find he was just like the rest of them. There is some old videos of him doing a little faith healin’. Not to mention a racist war-monger and Nixon stooge. Try that new thing called U-tube.
I was talking about “Squeezing the Charmin”. Like I said, I don’t agree with his theology and how he uses it to defend American Imperialism.
People who claim to preach the word of God shouldn’t delve into politics, whether it’s Mike Huckabee or Al Sharpton. It makes people question both you and your religion.
“Good people make mistakes” — Mike Huckabee
Never was a bigger bunch of nuts. All Republicans cow-tow to these clowns.
The pander to them, only giving them lip service. Notice how the GOP has not stopped gay marriage nor overturned Roe vs. Wade. Sure, they make big speeches about it, but never deliver. Now when Sheldon asks for something, you’d better believe they deliver.
Sounds like Josh he was doing a little family research of his own. The family that prays together, stays together.
Banksters mystified, can’t figure out why the wretched refuse isn’t spending any money….
http://tinyurl.com/mtdd6o3
You mean super low wage workers in third world countries don’t have money to spend like first worlders? Say it ain’t so, Joe!
Any thoughts on for how many more years the oil glut will last?
I say forever. So buy your wife a full-size suburban and yourself an F350 dually. The price will only go down. Especially when ISIS start moving on Saudi Arabia.
Not planning on buying any Suburbans. But I may consider buying the dip in case oil retests its early-2015 lows.
Markets Commodities Oil Markets
Oil Prices Lower as Dollar Strengthens
Investors focusing on release of rig count numbers
By Nicole Friedman
Updated May 22, 2015 9:38 a.m. ET
NEW YORK—Oil prices slid Friday as the dollar strengthened and traders waited for closely watched U.S. oil drilling data.
Light, sweet crude for July delivery recently fell $1.30, or 2.1%, to $59.42 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.41, or 2.1%, to $65.13 a barrel on ICE Futures Europe.
Moves in the oil price have closely tracked the dollar in recent weeks, with some analysts attributing nearly all of a recent rally in oil prices to a weakening in the dollar. The global crude market remains oversupplied, and some analysts warn that the rally was unsustainable and oil prices are likely to slump from current levels later this year.
…
“some analysts”
The dumb ones or the ones that are lying so they can get out of their short positions.
The Salt Lake Tribune
MAY 22, 2015
U.S. stocks mostly fall on lower oil prices, inflation
By BERNARD CONDON and KELVIN CHAN The Associated Press
First Published 1 hour ago • Updated 37 minutes ago
New York • U.S. stocks slipped in early trading Friday as energy companies fell along with the price of oil. Investors were weighing the latest batch of corporate earnings results and a report showing a slight increase in inflation last month. Investors are looking ahead to a speech later in the day by Federal Reserve Chair Janet Yellen.
…
Commodities Corner
OPEC may condemn the world to an oil glut for years
Published: May 22, 2015 9:20 a.m. ET
By Myra P. Saefong
Markets/commodities reporter
The Organization of the Petroleum Exporting Countries could flood the market with oil for years if it opts to do nothing to alter its output ceiling at a highly-anticipated meeting in June.
“If they don’t do something and find a way to get on the same page, we will all be floating on a glut of oil for a very long time,” warned Kevin Kerr, president of Kerr Trading International.
Questions about OPEC’s oil production are being raised as the oil cartel is set to call its first meeting since November 2014. Back then, OPEC’s vow not to cut output sent crude-oil prices plunging. Although prices have recovered somewhat in recent weeks, they are still sharply off their 2014 peak levels.
OPEC has maintained a collective production ceiling of 30 million barrels a day since it did away with individual country quotas about three years ago, and analysts expect the oil cartel to stand pat on that target when members meet on June 5 in Vienna.
But if OPEC decides not to change its target, it’ll be a “big signal that it is determined to continue with its policy to not give away market share,” even if prices fall as a result, Bhushan Bahree, senior director of OPEC and Middle East research at IHS told MarketWatch.
OPEC oil production estimates
OPEC has already been pumping more than it said it would. The group produced 30.93 million barrels a day in April — the highest monthly total since November 2012, according to a Platts survey of OPEC and oil-industry officials and analysts released May 8. Output in Saudi Arabia, OPEC’s biggest producer and the country with the most spare output capacity, is on the rise, topping 10 million barrels a day in April.
The Saudis have “effectively said, by doing what it’s doing” and not cutting output despite the drop in prices, that it would “rather maintain its share of the [oil] market and that other high-cost producers should cut,” said Bahree, who was at the November OPEC summit and plans to attend next month’s meeting.
Production has climbed even though prices for West Texas Intermediate (CLN5, -1.58%) and Brent (LCON5, -1.67%) crude still trade more than 40% below their peak prices from last summer.
…
The Saudis, among other goals, want to drive a stake thru the heart of the US frackers. Not just because of market share. Because it gives them a giant lever to control US foreign policy.
Yeah, sure…….”free markets”.
The big question is whether crude oil will be up for the tenth straight week. Opec cannot “condemn” the world to a multiyear glut because OPEC does not even have the ability to meet China’s growth, without shale oil it is gas lines and without $80 and increasing oil, shale oil cannot be produced. Despite the rig count being far below what is needed to maintain production the rig count fell again this week because the “sweet spots” are being drilled out.
crude is headed for another leg down. Inventories are building again.
Not in the U.S.
And which inventories, no question that the Chinese are adding to their strategic reserves but those are not inventories that are routinely tapped to match demand and so do not pressure oil to the downside.
Yes in the US. It’s global now.
Not what the EIA statistics have been showing for a number of weeks now.
And EIA missed the massive price collapse of crude oil too.
Don’t let the facts get in your way:
http://www.eia.gov/petroleum/supply/weekly/pdf/table1.pdf
What difference does it make with a global crude glut, collapsing demand and falling prices?
It is what it is Dan.
So where are you seeing this collapsing demand, exactly? And the falling prices?
Gasoline prices have been pretty stable lately in my area, around $3/gallon.
And local news reports that people in our state are driving more miles per year than ever before.
Nonsense.
Retail prices are down 35% and global demand has been cratering since 2009.
This dude must have a tattoo that says collapse. He can find doom and gloom in pretty much anything.
Pick yourself up off the floor and cheer up Poet…. Remember…. falling prices of all items to dramatically lower and more affordable levels is positively bullish and good for the economy.
I have a correction from yesterday’s thread. Someone was talking about having the Fed just print up a bunch of money to keep the economy going and I meant to say:
Comment by Biggvs_Richarvs
2015-05-21 16:45:31
Hey now, the same exact system literally made almost everyone in the country of Zimbabwe a
millionairebillionaire overnight. Now why wouldn’t that be a good idea?(Comments wont nest below this level)
I left out zimbabwe. Kind of a critical part. But it’s true - everyone there was an instant m/billionaire…….
Wouldn’t that solve all of our money problems?
Wouldn’t that solve all of our money problems?
It would solve the debtors’ problems if they had fixed interest rates, they could pay off their mortgages with pocket change. Now, if you had cash under the mattress, you would be using that for tissue paper as you cried about your lost fortune.
There’s a reason why Ben Bernanke was called “Zimbabwe Ben.”
Mean old GM wants to restrict your freedom…..at least that is the story the plaintiffs are trying to sell.
http:/tinyurl.com/qjywx5r
The real story……..auto shops and “tuners” want unlimited access to GM’s software codes to make money (or copy), and they don’t want to pay for it.
GM, for a number of reasons related to ownership of intellectual property, warranty, and product liability, says “hell no”.
All of this is funny to us in the aviation business. This “intellectual property” ship sailed thirty years ago. The absolute LAST thing needed in the aviation business is a bunch of boneheads screwing with software, then letting the OEMs pay the product liability bill, because the boneheads don’t have any money for the lawyers to come after when the SHTF.
The real story……..auto shops and “tuners” want unlimited access to GM’s software codes to make money (or copy), and they don’t want to pay for it.
My take is that it’s almost impossible to keep it from being reverse engineered for hotrodding purposes. I’m not aware of anybody expecting cooperation from GM or anybody else on that. But I haven’t stayed on the bleeding edge of what’s going on lately.
I realize there’s a liability issue. But I suspect that’s being exaggerated in hopes of keeping extra money for higher powered versions of the car for themselves.
Survey reports that Americans believe that 23% of the population is LGBT, when only 4% self-identify as LGBT
“The overestimation may also reflect prominent media portrayals of gay characters on television and in movies”
http://www.bloomberg.com/politics/articles/2015-05-22/americans-vastly-overestimate-size-of-lgbt-population
I dunno.
I know it’s late in the game, but I’m thinking about switching teams.
This hetro deal sure isn’t working for me.
Another sign that dementia/Alsheimer’s is starting to “kick-in” on the -fixr:
Among other “old guy” maladies that I’m beginning to suffer from is dry hands. Bought some stuff recommended you the lady in the office next door at Beauty Brands
(along with Bed, Bath and Beyond, it has become a regular stop…….because that’s how I roll now…….)
Anyhoo, took the stuff home, and put it on my nightstand.
Took me two weeks to realize that having a giant bottle of hand creme on my nightstand isn’t necessarily the image I want to paint in visitor’s heads…….
This hetro deal sure isn’t working for me.
Volunteer to bring an Asian facility up to speed. Trust me.
Article about the Houston public schools full of poors who can’t speak English:
http://www.politico.com/magazine/story/2015/05/houstons-learning-curve-117959.html
And speaking of Houston, what happened to turkey lurkey?
I’ll bet private and parochial have waiting lists.
It’s a good thing Monday is a holiday, because Greece is going to default, the Chinese stock market is going to crash, and Janet Yellen will announce that rates will be raised one millionth of a decimal point, which will collapse the American economy.
China buys USA, ISIS robs museums to pay for wars, Free market, gas $4 a gal, trickle down….
Just open a bottle of wine and have a bon fire.
happy 3 day weekend
Thousands of historical photos of New York City from the New York Public Library sorted by location on a clickable map:
http://www.oldnyc.org
All the people in the photos are smartly dressed and no tattoos or fats
Late reply to yesterday:
Comment by Blue Skye
2015-05-21 09:30:32
I have never understood what the reason is for the FB to do a short sale, unless there is a fraud buyer.
Reasons for an FB to do a short sale:
1) decreased harm to neighbors by turning the property over to a new owner who intends to live there (e.g. avoiding it becoming a zombie property).
2) reduced chance that the bank will come after you for the shortage amount (unless you are foolish enough to sign a personal note for it at closing).
3) more rapid closure, as once the property is sold, you can move on and forget about it. There is definitely an emotional or psychic load to having a property that you didn’t dispose of and that you feel badly about leaving in disrepair.
I recommended that my gf-at-the-time do a short-sale back in ~2009. We were honest with disclosure of her financials, and the bank did not pursue any shortage, at least not yet—guess we’ll know for sure in 2019! This was in WA, where lenders have both a recourse and a non-recourse path to choose from in order to foreclosure.
Did she have to pay federal taxes on the deficiency amount?
Nope—it was purchased as her primary residence, so she was exempt from counting the forgiven debt as income under the Mortgage Debt Relief Act of 2007.
Even Paul Krugman doesn’t like the way Obama is trying to push through this secret new trade deal. All Obama has to do is pass it with the help of John Boehner and his path to the dark side will be complete.
He will and it is just another example of the damage caused by ignoring the constitution. Treaties with foreign nations were designed to be difficult. The framers wanted only the most deliberative body to be involved and they required that 2/3 of them approve of the treaty. Starting with NAFTA, we made it much easier by passing treaties as legislation, the framers are rolling over in their graves. The treaty would be dead right now for a failure to get 67 votes, but thanks to the precedent started by Clinton for a major treaty, 61 votes is enough.
Seattle’s oldest Mexican restaurant being closed by the Chinese:
http://www.king5.com/story/news/local/seattle/2015/05/22/seattle-mamas-mexican-kitchen-to-close/27785995/
Those mythical Chinese investors strike again! Maybe the new building will have a Panda Express on the ground floor.
“unpossible”, they are all broke living in mud huts, they are just lying about their increased living standards and could never afford Seattle real estate.
Behind every great fortune is a great crime. Especially if you’re a Chinese embezzler.
Marxist feminists hate free speech because it might hurt somebody’s feelings
http://siliconangle.com/blog/2015/05/20/ellen-pao-confirms-intent-to-make-reddit-a-safe-space-doesnt-believe-in-free-speech
it might hurt somebody’s feelings
If it doesn’t then it probably was worth saying or reading.
A preview of what ‘Muricans are in for once Comrad Pelosi’s permanent Democrat Supermajority with its votes-for-entitlements schemes marries up with the Fed’s deranged money-printing.
http://www.businessinsider.com/currency-tumbles-as-venezuelans-look-to-offload-bolivars-2015-5
How much of this mayhem are we going to be importing along with Comrad Pelosi’s votes-for-entitlements permanent Democrat Supermajority voters?
http://news.yahoo.com/gunfight-western-mexico-kills-least-39-officials-185913396.html
http://news.yahoo.com/gunfight-western-mexico-kills-least-39-officials-185913396.html
Mexico shows us how to have a real gunfight, nine dead? We match that and raise you 30.
The stupidity of Hillary voters on display. Seriously, court-ordered sterilization is appropriate for most HillaryJeb supporters.
http://www.theburningplatform.com/2015/05/20/here-are-your-hillary-voters/
Seriously, court-ordered sterilization is appropriate for most HillaryJeb supporters.
I would support that platform. It would also help the water shortage in California, and other environmental and peak resource issues.
Iran has gone from sending “advisors” to actual troops to Iraq. So is this Iran’s Vietnam?
http://news.yahoo.com/us-officials-iran-enters-iraqi-fight-key-oil-181624273–politics.html
In case any f you HBBers want to learn something about global warming instead of just arguing about it then you can go here and learn it for free:
http://forecast.uchicago.edu/lectures.html
Go here for free classes on the weather:
http://www.srh.noaa.gov/jetstream/
And for some really excellent classes from MIT - hundreds of them - on various subjects (also free), go here:
http://ocw.mit.edu/about/
why do keep talking about this subject here?
I actually do believe it has relevance. It is an example of government trying to control people by creating a false threat. They want world government so they have invented a problem that only a world government can fix. What is going on in Greece only makes sense if you understand the goal of world government. Why give a country hundreds of billions of Euros that lied about their finances to get into the organization and lied about their finances right until the bubble collapsed? Rationally, you would throw such a member of any other organization out on their cans long ago. However, if the goal is world government, once a country enters such an organization it cannot leave. Since the subject has been raised, and it is a much better source than NOAA on global warming, I do appreciate the MIT link for other subjects:
http://wattsupwiththat.com/2015/05/22/uh-oh-looks-like-lewandowsky-and-oreskes-will-be-going-after-the-agu-now-for-admitting-the-hiatus-exists/
“why do keep talking about this subject here?”
Because it is an interesting subject, interesting on many levels.
“Since the subject has been raised, and it is a much better source than NOAA on global warming, I do appreciate the MIT link for other subjects:”
FWIW, the website I posted for the classes presented by NOAA had to do with weather, not global warming.
next thing you know we will be trying to control the inner core of the earth or space.
enjoy life and quit worrying about sh@t thats out of your control. There are bigger fish to fry in your own life.
Worry about housing and stock bubbles keeps me busy and thinking.
“enjoy life and quit worrying about sh@t thats out of your control. There are bigger fish to fry in your own life.”
“Enjoy life …”
That I do.
“… and quit worrying about sh@t thats out of your control.”
And that I don’t do, I don’t worry about sh@t that’s out of my control.
Becoming interested in a subject is not the same thing as becoming worried about it.
Who exactly wants a world government and why do they want it?
(Insert long ass rambling answer here).
Why do we keep going back to asset inflation as the source of a cure for the slow economy? There is a pattern that has developed here going back to the 2000 stock bubble.
What is really behind this? What are your thoughts if any?
IMO asset inflation is a RESULT of a policy, a policy that was supposedly meant to be a cure.
Wikipedia has this to say about the cause of the Great Depression:
“The two classical competing theories of the Great Depression are the keynesian (demand-driven) and the monetarist explanation. There are also various heterodox theories that downplay or reject the explanations of the Keynesians and monetarists.
“The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating the drop in demand.
“Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression.
“Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of the Great Depression is right, or the traditional keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today the controversy is of lesser importance since there is mainstream support for the debt deflation theory and the expectations hypothesis that building on the monetary explanation of Milton Friedman and Anna Schwartz add nonmonetary explanations.”
“There is consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse. If the FED would have done that the economic downturn would have been far less severe and much shorter.”
IMO the last paragraph is the key point that drives the FED’s thinking.
“There is consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse. If the FED would have done that the economic downturn would have been far less severe and much shorter.”
IMO the last paragraph is the key point that drives the FED’s thinking.
“Global net debt is zero.”
Bad debt doesn’t make money go poof, it simply transfers wealth from lenders to debtors (and those from whom the debtor purchased with the lent money).
Granted, because of fractional lending and the illusion that banks have all deposits on hand, bank failures could transfer the loss to depositors (but bank executives would not lose money from the toxic loans under today’s system).
Banks are hungry for money to lend. Depositors don’t want to lose savings. However, this system of not punishing those who generate bad debt invites (massive) abuse.
But with banks being in charge of national (and global) economic policy, there is little impetus to change banks’ business models.
If the FED would have done that the economic downturn would have been far less severe and much shorter.”
My theory is that by the end of this current episode, they will realize that their previous theory was incorrect… They have managed to drag this out for much, much longer than it originally would have taken, IMO.
The whats and whys don’t matter. What matters is demand is collapsing as a result.
You really need to get of that collapsing demand horse. Who pays you to sit there all day and type this stuff?
Demand for life’s necessities will not decrease.
Show me how much less groceries cost now than a few years ago.
Demand is collapsing for all these items my friend.
Welcome to the oligarcy.
http://www.oftwominds.com/blogmay15/crazymaking5-15.html
Did you notice how Mr Market goes into a drunken rage every time Auntie Janet threatens to take away his bottle?
Makes you wonder what will happen if she ever follows through on the oft-made threat…
Markets | Fri May 22, 2015 10:35pm EDT
Yellen tone suggests choppiness for markets ahead
NEW YORK | By Ryan Vlastelica
A street sign for Wall Street hangs in front of the New York Stock Exchange May 8, 2013. REUTERS/Lucas Jackson
U.S. stock investors have been enjoying an extended period of low volatility and steady gains, but with the Federal Reserve on track to raise interest rates this year and major indexes near records, the market could get a bit choppier in coming weeks.
Fed Chair Janet Yellen on Friday said she expected the U.S. central bank to raise rates in 2015, though the process was expected to be gradual, with the timing of the first hike dependent on the strength of economic data.
Yellen’s comments kept the likelihood of a September rate increase high. Currently, most economists expect lift-off in September, though dealers are not especially convinced of it. Market indicators put the first increase closer to the end of the year.
Recent data has been mixed. Some weak reports have pushed back the expected lift-off, but Yellen’s words suggest the Fed is still headed to rate increases later this year.
“I thought the message was, ‘if things stay like this, like they are today for a few more months, rates are going up.’ And that is probably the correct policy call,” said Stephen Massocca, chief investment officer at Wedbush Equity Management LLC in San Francisco.
When the Fed does raise rates, that will mark the first increase since 2006 and end a roughly six-year stretch of near-zero interest rates that has helped the stock market rally broadly to new records.
It has also kept a lid on long-term rates. The expectation that the Fed will raise rates soon, but keep the pace gradual, has been a boon for short-term rates and long-term rates, but less for the middle of the U.S. Treasury yield curve. Five-year notes, which outperformed earlier this year, have lagged lately.
“We are of the camp that this rate cycle will be low and slow. The remarks from Yellen confirmed that,” said Collin Martin, director of fixed income at Schwab Center for Financial Research in New York.
…
May 22, 2015, 2:50 P.M. ET
Yellen Speaks, Bond Market Yawns
By Amey Stone
The bond market showed little reaction to Fed Chair Janet Yellen‘s speech Friday afternoon. Part of the reason may be that half of Wall Street was already on its way to the Hamptons for Memorial Day Weekend. Most bond trading desks close early Friday.
It’s also because Yellen stayed pretty close to the recent script — that the Fed expects to raise rates sometime this year, depending on data, and that the pace of tightening will be slow. Here’s a key passage, from the full text of the speech:
“It’s likely she didn’t want to create any kind of volatility in the bond market on a shortened trading day, especially when the comments are hitting an hour before the market closed,” says Anthony Valeri, investment strategist with LPL Financial.
Yields on the 10-year Treasury moved higher Friday morning after the stronger-than expected Consumer Price Index for April was reported at 8:30 a.m. ET. But yields have stayed in a narrow range right around 2.21% since then.
“It’s a one step forward, one step back economy,” says James Camp, managing director of fixed income at Eagle Asset Management, noting the better data Friday follows lots of other weak economic indicators. “The problem for the Fed now is they desperately want to be a slow process of normalizing interest rates, but they are having trouble finding cover.”
…
May 22, 2015, 3:33 P.M. ET
Bill Gross Has a Great Analogy for the Fed’s Current Mood
By Amey Stone
New York Times DealBook columnist Andrew Ross Sorkin has a funny, warm and very personal Q&A with legendary bond investor Bill Gross in this week’s New York Times Magazine, which was just published on the web.
It’s well worth a read, but my favorite part is Gross’s response when Sorkin asks him when he expects the Fed to raise rates. Gross responds:
Gross, currently a portfolio manager at Janus Capital, also talked to Sorkin about what it felt like to get fired from Pimco, why he doesn’t tie his tie and his sense that the 35-year bull market in bonds is coming to an end, a topic he also elaborated on in his latest investment outlook.
phony scandals