Thu 31 Jul 2008
From the Star Ledger:
A dozen chatty women and children stepped off a yellow school bus Saturday morning and into a vacant condo on 5th Street in Elizabeth. Armed with notepads, digital cameras and binders, they sounded optimistic about finding their dream home in the Union County city.
They peppered tour guides with questions about taxes, schools, unfinished basements and the number of bedrooms in each of the dozen properties the group would see. But this wasn’t an ordinary real estate tour.
It was a foreclosure bus tour hosted by the city — the first in the state to offer such tours as a public service, according to the New Jersey League of Municipalities.
In Florida, California and Michigan, where the housing foreclosure crisis has hit residents especially hard, these tours are becoming the rage among real estate agents. In New Jersey, which according to RealtyTrac, a firm that monitors foreclosures, saw a 140 percent jump in foreclosure filings over the last three months, real estate agents are catching on.
Tours are being organized in Sussex, Morris, Union and Warren counties and along the Shore. But this one was different: It was designed not only to help first-time buyers get an affordable home, but to keep troubled homeowners above water.
“Maybe it’s better to call it a ‘pre-foreclosure tour,’” said the city’s housing program director, Susan Ucci. “We want to prevent people from going into foreclosure.”
…
Only one of the homes on the tour had been repossessed by the lender; the rest were nearing foreclosure. Tour guides — carrying binders of information to match prospective buyers with sellers — were members of the city’s Home Improvement Program and the nonprofit housing group Brand New Day. The nine prospective buyers on the tour, all women, were pre-qualified for mortgages by Brand New Day, and all took and passed classes for first-time home-buyers.Elizabeth’s program stands out, Ucci said, with benefits for all involved. Homeowners don’t go through the painful and credit-ruining foreclosure process. First-time buyers get a bargain on a home and “we get an occupied house instead of a foreclosed house in the neighborhood.”
Bill Dressel, executive director of the New Jersey League of Municipalities, said this is the first he’s heard of a city working with a nonprofit group to show off nearly foreclosed homes.
“I think it’s absolutely brilliant,” Dressel said, adding he wants to promote the program across the state. “It cuts through a lot of bureaucracy, and it literally matches people in homes where they want to be.”
…
Sandra Johnson, from Edison, said she was hesitant to look at homes that are near foreclosure but came on the tour because she was curious about what the market has to offer. “The tour is beautiful,” she said. “Everybody’s reminding you about what you can afford. A Realtor’s not reminding you.”Organizers are planning another tour in September. And cities across the state may soon follow suit. Jacques Howard, economic director of Plainfield, said the tours “make perfect sense.” He plans on rolling out a comprehensive package of programs to battle foreclosure in his Union County city. He hopes to include home foreclosure tours.
When homes are vacant, “the city’s losing, the bank’s losing, everyone’s losing,” Howard said.
“America’s house price time bomb”
http://tinyurl.com/6kqygl
SAS
personally, I think a purchase of a foreclosured home is way overrated.
Do you really want a house thats been sitting empty? there are usually alot of problems lurking w/ these homes.
and, a forclosed home reminds me of maggots, if you see one, you know in any day, there are going to be a heck of alot more, meaning the purchase of that foreclosed home will lose even more value right after you purchase it.
I know you can find good deals here and there, but in general, I think its more hype, and the industry is just putting salt & pepper on a turd and calling then French Fries.
SAS
The realtor’s persepctive:
I get to make 10 commissions in one day and put the mileage on a tourbus instead of the 7 series
I know this is story out of Brooklyn, but the same trends apply to many hospitals in NJ, especially in the low oncome areas.
“Hospital Obstetrics Ward Will Close Amid Malpractice Crisis”
http://tinyurl.com/5q5f34
SAS
Most doctors don’t realize that they are compartmentalized morons who just know how to take standardized tests well.
Trained to do C-sections because it quicker, they can go home and eat taco bell by 5, and the directors of the hospital love it because now instead of 1 person taking a bed for 12 hrs, they cut that time in half.
“Hospitals Try To Rein in Doctors’ Rudeness”
http://tinyurl.com/6cn3nn
Ever wonder why the highest rate of C sections is at near 5 o’clock, and shift changes? easy, taco bell is calling some idiot Dr.
ok, back to RE
SAS
“Deutsche Bank writedowns swell beyond $11 billion”
http://tinyurl.com/6kdobg
“NY gov slashes spending; state said in “recession”
http://tinyurl.com/5vdunk
SAS
#2-
I’ve known a few people that it’s worked out well for. A buyer just has to be prepared to tackle unknown problems.
#4-
That’s the hospital where both of my kids were born. My wife’s doctor is consistently ranked as one of the best in the city. And, she still sees him.
I knew that hospital was having $$$ problems, but didn’t realize it was this bad. And, I think this is more money related than bad physicians. They’ve sold several buildings (like brownstones) and clinics to raise cash and cut costs. It’s too bad. The next closest hospital is in Park Slope.
Starbucks (SBUX) needs a coffee break.
More bad news filtered out of the struggling coffee kingpin late Wednesday, with the company reporting a fiscal third-quarter net loss of $6.7 million, down from a profit of $158 million in the year-ago quarter. The company said it is still vexed by slow traffic at U.S. stores, with same-store sales down in the mid-single-digits in the third quarter.
“We continue to battle the perfect storm of this economy,” CEO Howard Schultz says. “Until the economy significantly improves, we’re just trying to do what we can to get through this storm.”
Poor Starbucks.
http://www.usatoday.com/money/companies/earnings/2008-07-30-starbucks_N.htm
SAS,
have seen the doctor issue myself. My son is 1 and when we were looking for a doctor to use for delivery we weeded out quite a few due to the issues you touched on.
My son was born in boston, and i have to say that i think the medical care in the boston area is definitely a notch above the NYC metro area. Not that there arent any good doctors here, but they are much harder to find and the so-so ones seem to out number the really good ones.
we get an occupied house instead of a foreclosed house in the neighborhood.
Won’t it be cheaper to buy after foreclousre?
Cindy, Tom
From the end of last nights thread regarding banks and morality.
I think there are 2 different arguments here. Tom is discussing how to logically behave within the framework you find yourself in and cindy is talking about moral behavior. While not mutually exclusive, these 2 things are not inherently tied together.
In our nation as it currently exists it would be illogical and in your own disinterest to try to act MORE moral then joe sixpack and the banks. i.e why would you willingly take a financial hit that you could easily avoid just for principle? You and the bank agreed to certain rules, so why hold yourself to a higher set then what is on paper.
Cindy, to your point; yes there is indeed moral/social issues that are deeply involved in this mess. The problem is that these moral and social issues have been created by the active “consumerization” of the american public since the end of WWII. People have been conditioned to be CONSUMERS, not CITIZENS. One you have made the transition from citizen to consumer then the moral aspects are irrelevant, twisted into commercial conditioning.
Cindy, i would also suggest that morals are not as solid as many thing. In my opinion it would be immoral for me to voluntarily punish myself financially even though the legal agreement i have with the bank does not require it. Doing such would hurt my family financially and i/we would gain nothing for taking the “moral” high ground.
No surprise here. I only wonder what took so long? Yes, we are all turning Japanese, that’s a guarantee.
The credit crash has only just begun. If Pavlov’s dog can be trained, can the glutton US shopper? You can only survive for a period of time on cheap credit created out of thin air and gov’t counterfeit coupons. Can you imagine, future spending based on actual savings?
“FASB: OK For USA to Turn Japanese”
“Just when you think there is a glimmer of hope that some of these ne’er do well, lying, cheating, sniveling, cowardly bank CEOs might finally be forced to step up to the confessional and tell all, this comes along: FASB Postpones Off-Balance-Sheet Rule for a Year.”
“Which makes me wonder: How precarious is the financial health of the US banks and brokers that they need yet another year before they can, oh, I don’t know — disclose what they own on their balance sheets?”
http://bigpicture.typepad.com/
BC,
I thought we were in the ninth inning?
BC 13
they need time to quietly move large sums of money to off shore accounts. you wouldnt want to attract any attention would you?
Cindy,
regarding your rose colored glasses…
It depends on your personality. Ultimately you are better off without them as you can actually prepare in what ever manner may be appropriate for you.
Although this point is an interesting discussion. I know some people who refuse to acknowledge the current mess because it would disturb their pretty little world picture. They will be rocked by the forthcoming mess and prefer to continue playing house rather then acknowledge their situation and attempt to correct it.
What is the primary factor in determining who cant/wont see the real world and those do see/seek out the real world?
“Doing such would hurt my family financially and i/we would gain nothing for taking the “moral” high ground.”
kettle,
You buy a new car and realize that as soon as you walk out of the showroom, you just lost 20K. Well, you just hurt your family’s finances. Do you now try to renege on that deal? Another example, I have built years of trust/honesty/credit with my broker. I see an opportunity in the markets. Unfortunately, my account is not fully funded. My broker says, that OK, we know you are good for it. We’ll buy you 100K of stock on margin. You can have your bank wire the $ in. Subsequently, the market crashes, I just lost 30K on the trade. Bad decision on my part. Do I honor my committment/years of mutually beneficial relationship or be a sc#mbag and stiff the broker?
Are you saying that risk/reward is your haven/goal but risk/failure is to be shunned.
I was taught, in any deal, that a handshake is an oath. I guess it’s just old school.
It’s getting close to time for us to rent a bus and stock it with booze, cigars and Jager girls. Go out and look at a few shiny toys. The ultimate GTG.
BC (17)-
Very old school.
Clot [19],
Yeah, that’s how my parents taught me. Now it’s greed/profit is mine, greed/loss is yours.
Cindy, Kettle1, All:
What is more immoral? Playing the jingle mail game or being forced (through tax-funded bailouts) to pay for the fiscal crimes knowingly committed by low-income renters turned homeowners, banks and mortgage brokers turned predators, credit rating agencies turned liars, Fed policy turned middle class wealth stealers?
On the Stu scale, the jingle mail side is way higher than the greedy SOB side.
SBUX 2008 = Benetton 1988
Hey reading WSJ today and it mentioned that mid career IVY league grads make around 130K a year, and mid career state grads make 101K a year and party school grades make around 95K a year. Now that assumes 15 1/2 years out in the workforce.
Now we are supposed to pay 2.5 times income for a house and even BC historically used to be a very high 4x income. so that means an ivy league grad should be paying at my 4x formula a max of 520k and a state school grad should be paying 380K for a house. Heck if I used the 2.5 formula the most a 36 year old state grad should pay for a house is 237K
Who the heck are buying all the 1.5 million dollar houses in BC?
Here is some cheese fro Pretorious:
CnnMoney.com:
Help wanted on Wall Street
http://money.cnn.com/2008/07/31/markets/wall_street_jobs/index.htm?postversion=2008073105
“If previous market downturns are any guide, analysts project that Wall Street could cut anywhere between 20% to 25% of its workers if the economy gets even worse.
But despite this, there are some financial firms hanging out the “Help Wanted” sign.”
John (23) - “mid career state grads make 101K a year and party school grades make around 95K a year.”
Attending a party school seems worth it to me.
I should have attended a party school.
GDP
Initial Claims
Chicago PMI are all due out momentarily.
Lets see if any of the GDP reports mention anything about the impact of the stimulus checks.
“Deutsche Bank writedowns swell beyond $11 billion”
That CAN’T be true!!! bi (and S&P) said there would be no more writedowns!!
Maybe we shoud all go back to school, an advanced degree at a party school?
#17 BC Bob - Very old school, and very commendable. You are a man of integrity who can be trusted.
BC 17,
i clearly did a poor job of trying to make a point at #16. I agree with you BC bob in regards to personal integrity. It has been a while since i read or studied the philosophy of morality/ethics and clearly lack at making such arguments. My main point was that i think tom and cindy are arguing around each other, parallel arguments if you will.
Compliments are put in moderation now? Has John taken over for Grim?
21 stu
I’d further note that jingle mail is what the parties AGREED TO contractually!!
This means everything. How is it immoral if you do precisely what it was agreed you could do?
sas:
If you check out the blog on my site, you’ll see that some of the foreclosures in bergen county are going for 50% of peak prices. Worth a look I think. But the foreclosure tours sound like a gimmick to drive demand and help people that don’t know any better take the foreclosures off the bank’s books at a price they like.
I don’t recommend buying a foreclosure to people that haven’t learned a bit about the subject first.
Did anyone see that the Doha trade talks collapsed yesterday?
GDP 1.9% (street expected 2.3)
It appears that the recession was effectively delayed through the stimulus rebates.
Expect another round of stimulus checks to be announced on the first Monday in November.
Anyone here get the feeling that when market dislocation day occurs, they’ll have to rename Black Tuesday, off-white Tuesday due to all of the facades and delays constructed by the current Fed?
I hope the day after Obama gets elected, he brings back Volcker who finally rights our sinking ship. I just hope we have some remaining ballasts by the time we cast our ballots.
By the way, all this doom and gloom talk was starting to get old. With the fall coming, it’s a good time to improve your lawn.
I started putting together a lot of what I learned about organic lawn maintenance that I have been trying to learn over the past year and just posted it. Some of you might be interested. The organic part was more recent after Stu got me thinking about it. I’ll be updating it as my renovation progresses and I use the organic lawn care program I talked about more.
Initial jobless claims for the week ending July 26 totaled 448,000, which is above the 393,000 that was widely expected. The prior week’s claims were revised slighly downward to 404,000.
Whoops?
448K…recession talk should pick up again with this beauty.
COAH housing impact
First off, it imposes a 2.5 percent tax on all new nonresidential construction in New Jersey – in effect making it yet more expensive to physically build a business in New Jersey – that won’t attract new businesses to New Jersey.
Next up we have the increased cost of new construction — as I understand it the new legislation requires 20 percent of all new construction to be affordable. I make the assumption that affordable in our case means a 50 percent discount off the current market price for a similar residence. If my assumption is correct, that means that every new market-priced residence built in New Jersey will now cost 12.5 percent more, that being its proportional share of the 50 percent discount on the fifth, “affordable” residence. This will make 80 percent of the new residences in New Jersey cost more — that won’t attract people to buy new homes in New Jersey.
here in the Hopewell Valley, the vast majority of our undeveloped residential land is zoned for multi-acre residences - will our “affordable” houses also be on multi-acre lots, or will this new legislation create neighborhoods of houses on, say, 6-acre lots, with 20 percent of the houses on smaller lots, undermining our local zoning and growth plans for our community?
Grim, my 34 is in mod.
Is it possible that the mere mention of “Volcker” trips some kind of federally mandated moderation?
I’d have to agree with Stu. On my moral scale the jingle mailers rank much lower than the scumbag I-bankers and bankers who profited from all of this and now have the government bailing them out.
Most jingle mailers just followed the herd and bought into a hyped up bubble. Wall Street was shelling out record bonuses the past 5 yrs you knew they knew that in the end the Feds would have their back. On this sinking ship the first class passengers get the life boats. Women and children be damned.
Having said that I keep all of my financial commitments.
Lot’s of writedowns coming over the next few years, I can see why FASB posponed the Off-Balance-Sheet rule change for over a year.
Here are some Merrill 2007 CDOs that are Triple A Toast.
http://www.reuters.com/article/fundsFundsNews/idUSN3037304620080730?sp=true
Tom (35),
A couple of other tricks. Always lime in the late fall and seed just prior to what should be the last major snowfall of the winter. The birds can’t get to the seed and the slow melt of the snow and solar heating it creates softens the frozen ground. This allows the seed to sink into the soil where it will lay dormant until Spring temps reach the high 50’s.
If you miss that date and you are seeding a large barren area, lay entire pine branches over the area after you seed. This fertilizes the seed and protects them from the birds as well.
Good luck with your lawn. Now find me a natural cure for crab grass and I’ll be indebted to you.
From Bloomberg:
GMAC Reports $2.5 Billion Loss as Auto and Home Lending Slump
GMAC LLC, the auto and mortgage finance company majority owned by Cerberus Capital Management LP, reported a $2.5 billion loss as vehicle sales plummeted and the housing slump boosted foreclosures.
The second-quarter loss, GMAC’s fourth straight, compares with profit of $293 million a year earlier, the Detroit-based company said today in a PR Newswire statement. Residential Capital LLC’s loss jumped to $1.86 billion from $254 million a year earlier as the decline in home prices accelerated.
Since arranging a $60 billion debt refinancing package last month to keep ResCap out of bankruptcy, GMAC has faced a deteriorating auto market on top of the U.S. housing slump. General Motors Corp., which sold 51 percent of GMAC to Cerberus two years ago, said sales of new cars and light trucks dropped 18 percent in June. GMAC said this week it will stop subsidized auto leasing in Canada as the value of vehicles declines.
“It’s a disaster,” said Gregory Habeeb, who manages $8.5 billion in fixed-income investment at Calvert Asset Management Co. in Bethesda, Maryland, including a “small position” in GMAC and ResCap bonds. “There’s very little good news with General Motors. Then you consider all the mortgage-related problems.”
when I went to stony brook for a while it was labeled a big big party school. Every dorm had a bar open seven nights a week, till 2am Sun to Wed till 4am Thurs to Sat, then we had free campus all you could drink parties mainly on Thursday night that had jungle juice and keg mix mixed with straight up Gordans vodka and grain alchol, plus we had a great disco opened sat nights called Tokyo Joes that could easily fit 3,000 kids. That on top of the concerts in the gym, good banks like B52s etc. My room was right above James Pub in G quad and damm it the room shook to 4am on Thursday nights, The weirdest thing they had was a monthly movie night in the gigantic eco 101 room that could hold 500 people complete with free Beer. The craziest night was they showed debbie does dallas to 500 drunken guys with free beer and their were six rapes on campus right after movie ended. The other weird part was back in the late 60s/early 70s in response to the kent state shootings they took away the guns from the campus police and gave then crappy brown six clynder dodge aspens and took away their power to arrest people. I used to drive over to the suites on campus cause I was too lazy to walk in my 68 Buick V8 GS and just smoke an aspen if it got in my way. All the kids did it as you could not get arrested for drunk driving on campus. Kookie thing I went to a lude party their once and this girl down the hall tripped on LSD and thought she had bugs on her face and kept trying to scratch bugs off her face with nails her two roomates spent the entire party and night keeping that girl from scratching her face off, to make it worse she was a pizza face so you had some nice white heads, black heads mixed in with the blood. ICCK. The other thing that was cool their was the dumpy port jeff pizza where the guy made hash pies for an extra five bucks and delivered!!!! Back then you just needed a good set of speakers, a serious Led Zep and Black Sab record collection and a few king sized bongs in your room to be a playa. Funny the school has a lot of asians too that I never saw and one day I happened to wander into the library as I needed to use the bathroom and wow they were all hiding in there.
Covered Bonds: What the Paulson Plan Means for You
Treasury Secretary Henry Paulson announced a plan on Monday to encourage banks to issue a new form of debt known as a covered bond. Paulson said that if investors buy enough of these bonds, which are generally considered safer than many of the risky mortgage-backed securities that proliferated during the housing boom, banks will feel more comfortable financing mortgages again. That, along with various other measures, could restart the stalled housing market, Paulson said. Four banks — JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) — have agreed to begin issuing covered bonds to “kick-start this market in the U.S.”
Stu,
Thanks for the tips, I heard about the winter seeding. I remember also reading that freezing the grass seed helps it germinate faster. I’m gong to overseed soon so it has a chance to establish though. If it doesn’t come in nice I’ll try to seed in the winter like you suggested but if you read the whole posting, you’ll notice I forget about the lawn in winter :) But I’ll be using corn gluten meal which acts as a pre-emergent and that might keep the grass from germinating depending when I apply.
For a natural cure for crab grass I’ve heard to following recommended.
Spray the grass lightly with water that has a little bit of baby shampoo in it to act as a surfactant. Then sprinkle some baking soda on it. Use a sock or pantyhose to tap on it. I hear boiling water and vinegar work too. Check out lawnsmarts.com. They have good posters there.
Rewriting history?
http://www.bloomberg.com/apps/news?pid=20601103&sid=aZMDdtdqEPOU&refer=us
Stu,
Also, the organic lawn care program I talked about has a treatment for weeds in the program. Won’t try it out till next year though.
I’ve decided to try and be one of the “good news guys(s)” on the blog. So far, it’s been hard to find much good news.
But I did read that hedge funds are willing to buy up CDOs and deal with the losses on the mortgage backed securities. Plus Merrill helped to set a price bottom at 22 cents on the dollar (woo hoo!). So that helps get the credit flow going again which isn’t a cure all but it certainly makes more transactions possible.
I think there’s a decent chance oil could trend down to $100 or lower.
And even Cramer says we’ve hit bottom!
http://www.cnbc.com/id/25932873
Stu,
Wish I could keep my thoughts in order before posting :) I’ve found that crabgrass pulls up easily. That’s the most natural way to get rid of it. It’s also an annual so when it dies it dies. I wonder if making sure it gets mowed before it produces seeds will help it from germinating next year. CGM in addition to being a fertilizer is a pre-emergent weed control.
Are you using an organics? and if so what?
#2 SAS
While purchasing foreclosures is not for everyone, if you know what your looking at it is worth the effort. I bought my Bergen County REO, the repairs were for the most part what we expected. We are finishing up the repairs and the additional bathroom, well under budget. We even had the bank kick in for half the repairs at closing.
The house had been empty for six months and issues like flood damage from a burst pipe in the bathroom. Walking into the house and seeing two great holes in the living room ceiling would have had most buyers heading for the door.
Buying forclosure properties like this require three things. A sound understanding of how houses are built and how much it costs to fix. A solid grip of the financials so you know how much is going to cost to fix, carry, close, maintain etc. A good real estate lawyer to rework the one sided contract.
While the house has lost some value since we bought it, we are probably still ahead of the game and could sell at a profit, even in this market. Will it drop further? Probably, but as I had said to Strawman back when he called me an idiot for buying, I’m not looking to catch a knife. The house may end up falling to 30-40% from peak, but the bank paid to get it most of the way down.
There were some interesting results from our purchase. One if the biggest, seemed to be that it put a temporary floor into the local housing market. Within two months of our close five local properties sold around the same price point. I think it needed someone to step back into the market to set the new level.
Good Morning everyone…
First, BC - I am SO old school…
Tom and I are discussing the same issue - a systemic problem. The only difference I see is I consider the comsumer to be part of the problem and Tom views them more as victims caught up in the problem.
Systems begin and end with people. Even in Tom’s analogy of the assembly line it took a person to find the problem and change the system. Everyday I have to teach children not to lie, cheat and steal… To aim to be citizens of high moral standards. I want the generation I work with to be part of the solution, not part of the problem. There must always be someone around who declares “The emperor has no clothes.” I can’t give up my idealism. Although, I have turned in my rose-colored glasses. I am learning from you all and trying to be more of a realist.
It has always been hard for me to face changing moral values. When my daughters were in high school, I found out a boy one of my daughters knew had taken advantage of a friend when she was drunk at a party. In the “old days” that would not have happened. It would have been considered bad form and taking advantage of the situation. Come to find out, the social stigma of having your way with a drunk girl was gone.
I read the book “Reviving Ophelia” and found out what my daughters were now up against in high school. Times had changed. What was once considered unacceptable was now common practice.
But that does not change my view that such a practice is morally repugnant.
So, I attempt to arm myself with knowledge.
But I will never forsake my moral compass.
I don’t believe , if you think about it, that you really want me to. I am teaching your children - the next generation who will help run this country. Please, let me teach them some ethics - some set of tenets that may help in navigating this morass going forward.
How is this different from transfering bad debt from left hand to right hand. Isn’t the same kind of off books commitments with hedge funds got them into current mess?
With banks and brokers like Merrill Lynch desperate to raise capital and clean up their balance sheets, it’s a great time to be a buyer of distressed debt.
Little wonder then that financial superstars like Lone Star’s John Grayken, Paulson & Co.’s John Paulson, and Pimco’s Bill Gross are reportedly putting more capital into so-called distressed debt securities and the companies that have been waylaid by them.
Consider Lone Star’s deal this week with Merrill Lynch. As if paying 22 cents on the dollar for Merrill’s $30.6 billion of CDOs wasn’t good enough, Lone Star also got Merrill to finance 75% of the transaction and agree to retake ownership of the securities if they ultimately default. Taking that into consideration, Lone Star actually paid less than 6 cents on the dollar, writes The Big Picture’s Barry Ritholtz.
Of course, scant few investors can get these kind of terms, but very few have the expertise and capital like Lone Star and a select few others.
Steve,
I called for $100 oil a few weeks ago and everyone laughed at me. Filled up the Xterra for $3.65 a gallon this morning. Barring an Israeli attack on Iran’s nuclear bomb program, I think $100 oil will be the new baseline for a while. If the dollar strengthens (somehow), I would feel even more confident about this call. Either way, I’m not money where my mouth is on this one.
I did go to a party school. THE party school. Totally worth it, and not doing too shabby either.
Go Gators!
College was a trip. One day I woke up with a terrible hang over and all the guys in my dorm were giving me high fives. The lot where I park emptied out on weekends. I went out to the lot to find my Camaro randomly parked with burn out marks up and down the lot with some donuts mixed in. I swore off drinking for the rest of the semester. I took up watching TV in the TV room. A lot of weird people hung around and played Dungeons and Dragons. One guy that hung out with the weirdos but was cool enough to talk to directed me to the main TV room above the cafeteria. He said go up there on Saturday at 11. Me and some freinds walked up there to see about a dozen geeks decked out in full Star Trek gear but the kicker was they all had lines and would act out the lines in tune with the TV show. One of the Asians naturally played Sulu.
Tom,
I’m too cheap to pay for organic or any fertilizer. For the most part, I’m just mulch mowing, liming in the fall and overseeding in the winter. My only problem is the crabgrass, but when you have more of it than grass (which I do in parts), it doesn’t look too bad ;)
Att: K Mart Shoppers. There is a bull market somewhere;
The Treasury, yesterday, announced their borrowing needs would almost quadruple this quarter. Rising supply, lower revenues. Get ready for stimulus, round 2. V#agra, is longer lasting than round 1.
Trained to do C-sections because it quicker, they can go home and eat taco bell by 5
As my wife’s due date came and went, she got to the point where she was a little more than a week late. The doctor decided it was time to intervene, so she recommended that we schedule a C-section. We asked, “why a C-section? Why can’t we induce labor?”
Her doctor responded that it was Passover and she would not be working into the evening. And, by the time Passover was over, the baby would be too big to risk a natural delivery.
So I asked, “so, my wife is forced to have unnecessary major abdominal surgery because you don’t want to stay late on your holiday? Doesn’t that sort of come with the job when you’re a doctor?” She didn’t seem phased on bit.
My wife went into labor on her own the next day. Her doctor said, “okay, c-section time”, but we refused. So, her doctor left the hospital and the covering doctor, who was very supportive of us, delivered our baby.
re: Dungeons and Dragons crowd.
If you need an 11 minute diversion, this video is a good watch into the lives of real Dungeons and Dragons geeks.
Video is called “Fear of Girls”
http://www.youtube.com/watch?v=HmgLOKRl5J0
stu,
keep an eye out for the EIA report due out in november.
Taking care of the lawn is one of most wasteful activities. There have been several books detailing how grass became a social signifier. The health of your grass as an evidence of your social, political and economic status?!
“The Lawn: A History of an American Obsession by Virginia Scott”
‘AMERICAN GREEN,’ BY TED STEINBERG
Can’t We All Get a Lawn?
Never go anywhere near it, but of course I have to pay someone else to keep my lawn up.
HC
#17 BC Bob
“Do you now try to renege on that deal?”
I don’t classify this as a “Renege on the Deal” I see this as exiting the deal on the terms of the contract. If the contract says they can come after me for the difference, then so be it. If there is a 1930’s depression law stopping them, well it works both ways.
One big point here is that the contracts are one sided. The banks, finance companies, write the contracts and riders. If I sit down at a loan signing and ask to change the terms of the contract, I am told sign or walk.
As for moral obligation, it does not exist in the corporate world. While it is a nice marketing gimmick, unless it affects the value of the brand, the bottom line is “Shareholder Value”.
Here is one from the other side. I sign a HELOC for 100K and use 80K for house improvements. I’m making my payments and my plan is to pay off within the 10yrs of the agreement. The bank comes in and cuts the credit line to 40K based on market conditions. Are they within the terms of the contract, YES. Have they met their moral obligations?
Did I miss this in the last few days. The limit must be wrong for a start.
From the FT
US delays accounting changes
Jul 31 2008 01:25
Banks have been given a one-year reprieve by US accounting standard-setters from having to take up to $5,000bn of debt assets on to their balance sheets, easing fears that they would be forced to raise large amounts of new capital quickly
>
http://link.ft.com/r/UXDMSS/IP3C7/JN92/P1GSC/KS9HQ/OS/t
Stu,
Mulch mowing should give you close to 20% of the nitrogen your lawn needs depending on the grass you have.
Fertilizing will help you get better color as well as better growth to help fill in spots to help outcompete the crabgrass.
Why do you lime every year? You shouldn’t lime if you don’t need it. The calcium is good for the lawn but if you’re pH is ok, you’re probably better off spreading some CGM or other fertilizer instead. If you just want the calcium, I think gypsum will do the same without messing with the pH.
I’m going to be aerating and overseeding and hopefully that will help with the weeds. I’ve been pulling a lot but every day there’s just more and more. I might spot treat some areas with weed b gone just to give myself a head start.
John,
Ref 45. Getting misty eyed with nostalgia.
Bergenfield Comp Killer!
SOLD: 52 CLINTON PARK DR $379,000 5/22/2006
MLS#: 2806189 (REO)
Orig List: $379,900 5/7/2007
SOLD: $312,600 7/29/2008
“the bottom line is “Shareholder Value”.”
PGC,
I think that what people think of improving shareholder value isn’t what it used to be. Improving shareholder value shouldn’t mean improving day trader value or other short term investors. You hurt shareholder value when you don’t think in the long term, especially when it comes to financial institutions. Look what the recent practices have done. They haven’t increased shareholder value, unless you’re talking about the execs that got big raises and bonuses.
#17 BC Bob
“My broker says, that OK, we know you are good for it. We’ll buy you 100K of stock on margin. You can have your bank wire the $ in.”
Go read your margin agreement, its a bit more specific than a handshake.
My house was a foreclosure, which is how we got it 20% off 2006 comps on the same block. I personally put a ton of work into this house which saved me big $$, but probably took a few years off my life. Still not done, but accomplished a great deal in the short time living there.
60 Renting - I’d take a c-section over induced labor any day. Induced labor is way more painful, and most of my friends who were induced wound up with c-sections anyway, but after suffering for hours.
Not, of course that I would advocate scheduling one to make a seder. Was the doctor a solo praticioner? Our son was delivered by a group practice, so you never had to worry about being delivered by a stranger.
Our son was born by scheduled c-section. It was a great way to have a baby. I know it’s not PC to say that, but it was. My recovery was a breeze - so much so that Stu said I got around better than 3/4 of the women in the maternity ward. I attribute that to the fact that I only had to recover from surgery, and not labor plus surgery.
Of course my views on labor and delivery are skewed because my brother was born in a botched delivery. He was in distress for a long time and my mother’s pr**k of an OB refused to do a section, because she had delivered “the right way” twice before. As a result my brother has CP and I was demanding a C (Stu’s nephews were all 9lbs plus) from the midpoint of my pregnancy. I never understood the desire of folks to birth at home without drugs!
Funny thing about my delivery, is 2 days after my son was born, my male OB asked me if I had any regrets. I told him not a one, and his response was “Not that I can say this publicly, but if I had to do it myself, I’d do it exactly the same way.” He cared for many female OBs as patients, and when we had to tell one that he baby was breech, her response was “YES!”.
Fair Lawn Comp Killer!
SOLD: 7-09 ELAINE TER $617,000 10/30/2006
MLS#: 2811457
Orig List: $649,000 3/21/2008
SOLD: $530,000 7/30/2008
Northvale Comp Killer!
SOLD: 186 SCHOOL ST $399,900 11/30/2004
MLS#: 2800458 (REO)
Orig List: $348,900 1/4/2008
SOLD: $281,500 7/29/2008
“Go read your margin agreement, its a bit more specific than a handshake.”
PGC,
Of course it is. That said, if I fail to comply my broker is on the hook. I have never stiffed him for a dime.
Att: K Mart Shoppers.
I was shocked last night to see an ad where Martha has defected to Walmart.
PGC
“I don’t classify this as a “Renege on the Deal” I see this as exiting the deal on the terms of the contract. ”
That’s it in a nutshell.
45 … John… My vote for best John post of all time. hilarious. and believable. what happened to this country… the politically correct mob crashed the party.
River Edge Comp Killer!
SOLD: 290 KINDERKAMACK RD $480,000 11/10/2003
SOLD: 290 KINDERKAMACK RD $585,000 8/17/2006
MLS#: 2821368 (REO)
Orig List: $575,000 11/27/2007
SOLD: $467,000 7/29/2008
“what happened to this country… the politically correct mob crashed the party.”
I, too, pine for the good old days when everyone was like john.
randy,
Really? #45? I thought it was a bit lacking, left me feeling unfulfilled.
OT, but damn if this isn’t an interesting piece. Surprising that Kingham would contrast the housing recession with the Troubles, especially since he lived through it.
From Bloomberg:
Housing Slump Hits Northern Ireland Economy Harder Than Bombs
Jim Kingham says the credit crunch is hurting his Belfast-area moving company more than the violence that ravaged Northern Ireland for 35 years.
Kingham has fired nine of his 12 workers at A1 Shortnotice, based in Newtownards, as house prices plunge and sales dry up.
“You can take me back to the days of the bombings,” says Kingham, who has run A1 for 40 years. “Business was better then. Five of my six lorries haven’t left the yard for months.”
The credit-market rout is undermining the peace dividend for one of the U.K.’s poorest regions. Northern Ireland’s economy is stalling as house prices, which surged as violence came to an end, fall at the fastest rate in the U.K. and building reaches a 12-year low.
“First-time buyers are now frozen out; the investors have packed up,” says Alastair Adair, a professor at the University of Ulster in County Antrim who helps compile the province’s main house-price index. “It’s a real problem for the economy.”
…
At the peak of the boom, a five-bedroom house on Alliance Avenue in Belfast sold for 800,000 pounds. The North Belfast thoroughfare had been dubbed “Murder Mile” because 40 people were killed on or near the road during the conflict.
Four years ago in Dunmore, in north Belfast, homebuyers lined up overnight to buy property just yards from a park split by a 25-foot-high corrugated iron wall erected to keep Protestants and Catholics apart, Turley says. Prices in the area fell 25 percent in the past 12 months.
…
“I don’t think we’ll continue that much longer,” he says. “Even during the Troubles it wasn’t as hard as it is now.”
Cindy,
I don’t think I said what you think I said :)
You seemed to have missed the point in the assembly line story. It’s not that people aren’t involved, it’s that people need to keep digging to discover the root of the problem for it to be effective. I’m not claiming some nameless institution is to blame, I’m saying there are people that facilitated what happened and they should be discovered and penalized.
The borrowers ditching their homes is a symptom, not the problem. There are people that can’t afford to pay their mortgage, it’s not because they’re all taking expensive monthly vacations. Even if they could find a way to stay in their homes, it would still impact the economy as their money goes to housing and almost nothing else but bare necessities.
They created their own personal mess and have to deal with it. Same as with the banks. The banks are at the root of the problem and as such deserve most of the blame.
You want to be disgusted with the borrowers that’s fine but I’m trying to say be disgusted with everything and get others to be disgusted with it to so that there’s enough outrage that things change and this doesn’t happen again. After the S&L crash we should have learned, but we didn’t and we let it happen again.
#75 BC Bob
I understand what you are saying. While your broker may get chewed out by his boss, he’ll still liquefy the rest your portfolio and sue you for the balance of the margin call.
we are officially in me generation!
‘I have become a symbol of the possibility of America returning to our best traditions’
— osbama
#82 grim
Remind me to give you the full scope of that housing market at the next GTG I get to. There is a lot more to it. Its too much for a post.
Houston, keep up the good job. Apparently they have offered the chairmanship to W after he leaves office.
HOUSTON — Exxon Mobil Corp. reported second-quarter earnings of $11.68 billion Thursday, the biggest quarterly profit ever by any U.S. corporation
Are you coming on Sat? I’m interested.
Ridgewood FUTURE Comp Killer!
SOLD: 47 JOHN ST $795,000 6/30/2006
MLS#: 2819679
Orig List: $769,000 5/13/2008
Last List: $699,000 7/30/2008
don’t whine your taxes! you are expected to pay more if you are not properly colored:
http://www.worldnetdaily.com/?pageId=71043
Woodcliff Lake FUTURE Comp Killer!
SOLD: 212 GLEN RD $838,000 8/8/2006
MLS#: 2825921
Orig List: $829,000 5/1/2008
Last List: $779,000 7/29/2008
Wyckoff FUTURE Comp Killer!
SOLD: 727 MOUNTAIN AVE $562,500 8/15/2006
MLS#: 2825519
Orig List: $619,900 3/19/2007
Last List: $539,000 7/30/2008
#88 grim
Unfortunately, Mrs PGC and I are still adjusting to life with the latest tax deduction, so I’m always babysitting these days.
Hillsdale FUTURE Comp Killer!
SOLD: 330 KINDERKAMACK RD $425,000 4/29/2004
SOLD: 330 KINDERKAMACK RD $485,000 12/9/2005
MLS#: 2817884
Orig List: $579,000 3/13/2007
Last List: $429,000 7/30/2008
the little one is more important than a gtg!
shoot me an email, jamesbednar at gmail dot com
John M. is trying to scare you if you are not scared yet.
This article is from MSNBC of
Nov. 30, 2006:
The senator, contemplating a run for president, met privately with Ludacris on Wednesday. “We talked about empowering the youth,” said the rapper, whose real name is Chris Bridges.
http://www.msnbc.msn.com/id/15972471/
BI:
Do you subscribe to The Enquirer?
From CNN/Money:
Jobless claims surge to 5-year high
Jobless claims rose to their highest level in five years last week, the latest evidence that Americans are still having a hard time finding a job.
The Department of Labor reported Thursday initial filings for state jobless benefits increased by a seasonally adjusted 44,000 to 448,000 in the week ended July 26.
Unemployment claims rose much more than had been expected. The consensus estimate of economists surveyed by Briefing.com was for claims to come in at 395,000.
Last week marked the highest total for weekly jobless claims since the week ending April 19, 2003. It was the highest week-to-week increase in jobless claims since the week ending September 10, 2005.
Grim,
Every time I try to post my John story, I get the error “An appropriate representation of the requested resource /blog/wp-comments-post.php could not be found on this server.”
Any idea what this is?
98#, stu, this is from reputable MSNBC and ABC!
http://blogs.abcnews.com/politicalpunch/2008/07/a-ludacris-obam.html
This one allways cracks me up:
162 SCHRAALENBURGH RD, HARRINGTON PARK
ACT $799,000 3/20/2006
PCH $749,000 4/4/2006
PCH $699,000 4/25/2006
ACT $699,000 10/16/2006
PCH $649,000 10/30/2006
PCH $589,000 12/4/2006
ACT $569,900 2/12/2008
PCH $559,900 2/25/2008
PCH $558,900 3/8/2008
PCH $549,900 3/21/2008
PCH $548,900 4/5/2008
PCH $546,900 4/8/2008
PCH $544,000 4/17/2008
PCH $542,000 4/26/2008
PCH $541,000 5/7/2008
PCH $540,000 5/23/2008
PCH $539,000 6/10/2008
PCH $538,000 7/7/2008
PCH $537,000 7/10/2008
PCH $519,000 7/25/2008
PCH $509,000 7/30/2008
Bi
Didn’t JB ban you from posting political nonsense on here?
So what you are trying to say BI, is that since Ludacris has dirty lyrics, then Obama must be like Ludacris.
You are clutching at straws baby!
Typical indirect, non-substantial Republican BS and fear mongering.
Want to see a nice short list of Republican lies?
Franklin D. Roosevelt was a communist and a terrible president.
Jimmy Carter used to be a waffler, now he’s a traitor.
Walter Mondale is a flip-flopper.
Michael Dukakis is a waffler.
Ronald Reagan was the best president in history.
The media is liberal.
Bill Clinton is a flip-flopper.
Hillary Clinton murdered Vince Foster.
Bill & Hillary Clinton are radical leftists.
Al Gore is a waffler.
Al Gore claimed he invented the internet.
Al Gore is boring, stiff and wonky.
George W. Bush is a great guy to have a beer with.
George W. Bush is a Texan.
George Bush was a successful businessman.
Bush won Florida in 2000.
Losing by 2 million votes in 2000 is a mandate.
This administration will hold itself accountable.
Bush will restore honor and integrity to the White House.
The Clinton administration trashed the White House before the Bush administration took over.
Bush will make health insurance affordable for low-income families.
The Healthy Forests Initiative will help forests.
No Child Left Behind will help children.
The Clear Skies Initiative will reduce air pollution.
Republicans are compassionate conservatives.
It is executive privilege not to reveal the members of the energy task force.
Vice President Cheney no longer has ties with Halliburton.
Bush is not that familiar with Ken “Kenny Boy” Lay.
There is no global warming.
There is global warming, but humans aren’t causing it.
If there is global warming, it’s actually good for us.
There are legitimate scientists who dispute the “liberal” theories about global warming.
Sex education causes STDs and increases pregnancy rates.
HPV vaccine will cause teen sex cults.
Unemployment numbers have never been so low.
Outsourcing will create more jobs.
The vast majority of Bush’s tax cuts go to the bottom end of the spectrum.
Tax breaks for Hummers are good for the economy.
Tax cuts increase federal revenue.
The estate tax hurts family farms.
Privatizing Social Security will save Social Security.
Citizens will earn more money for retirement with “private accounts.”
Republican proposals to change Social Security are not plans to “privatize.”
They are not “private accounts,” they are “personal accounts.”
The budget deficit will be cut in half in four years.
The economy is doing great.
Nothing is more important in a time of war than cutting taxes.
Bill Clinton is responsible for 9/11.
Bill Clinton was offered Bin Laden on a silver platter and turned it down.
No one could have anticipated airplanes flying into buildings.
We have removed the Taliban from Afghanistan.
Pat Tillman was killed by enemy fire.
They hate us for our freedom.
The creation of a department specializing in Domestic Security isn’t necessary.
Refusing to support the creation of a new Department of Homeland Security is anti-American.
The Patriot Act is needed to protect Americans.
Giving up some freedoms is necessary to defend freedom.
“Bin Laden Determined to Strike within the U.S.” was a historical document.
You’re either with us or against us.
We don’t want the smoking gun to be in the form of a mushroom cloud.
The British government has learned that Saddam Hussein recently sought significant quantities of uranium from Africa.
Anyone who leaks information will no longer be a part of this administration.
There can be no doubt that Saddam has reconstituted his WMD program.
The only way to get Zarqawi is to invade Iraq.
Saddam Hussein attacked us on 9/11.
We’re fighting them over there so we don’t have to fight them here.
Critics of the war are liberal, left-wing radicals.
Opposition to the war gives aid and comfort to the enemy.
Democrats hate America.
Dissent is unpatriotic.
The Iraqis will welcome us with open arms and flowers.
It could take six days, six weeks - I doubt six months.
Several hundred thousand troops is wildly off the mark.
Democrats voted for the war too.
Iraq is the central front on the war on terrorism.
Yellow ribbon magnets on your car mean you support the troops.
Iraqi oil will pay for the war and the reconstruction.
US liability for the war shouldn’t be more than a billion dollars.
Saddam would not let the weapons inspectors in the country.
Saddam would not let the weapons inspectors do their jobs.
There is a large international coalition participating in “Operation Iraqi Freedom.”
We know where the WMD are. They’re in the area around Baghdad and Tikrit and north, south, west and east somewhat.
Those trucks we found in Iraq were mobile biological weapons labs.
Iraq sent its WMDs to Syria.
Mission accomplished.
The violence is the result of a few Baathist dead-enders.
The insurgency is in its last throes.
Bring It On.
No one could have anticipated the Iraqi insurgency.
There is no civil war in Iraq.
We’ve turned a corner in Iraq.
A spike in violence in Iraq is a sign of American success as insurgents resist positive changes.
A decline in violence in Iraq is indicative of American success in getting a handle on Iraqi security.
If our military commanders need more troops, all they have to do is ask for them.
Abu Ghraib was the result of “a few bad apples.”
There is no need for a bill banning the use of torture.
We do not torture.
A “signing statement” freeing the executive branch from having to follow a law is necessary during a time of war.
Progress as a result of the “historic” pass of sovereignty, formation of government, election in Iraq will be seen in the next 6 to 8 months.
When they stand up, we’ll stand down.
A plan to withdraw troops is defeatist.
U.S. beliefs that Iraq had WMD was an intelligence lapse.
The WMD mistakes were made in good faith.
Congress had access to the same intelligence on Iraq.
The Founding Fathers were Christians.
George W. Bush is a Christian man.
America is a Christian nation.
There is a war on Christmas.
There is a war on Easter.
Democrats and the ACLU want to ban the bible.
Democrats and the ACLU want to make it illegal to pray.
Bush was elected by “values voters.”
Dems struggle to attract “values voters.”
Jesus would have voted for Bush.
Gay marriage threatens the sanctity of marriage.
Republicans are pro-life.
Democrats are the party of death.
Evolution isn’t supported by the facts.
There are legitimate scientists who dispute the “liberal” theories about evolution.
Man existed alongside the dinosaurs.
The earth is 6,000 years old.
Terry Schiavo wanted to live.
Michael Schiavo wanted to murder his wife.
Michael Schiavo abused his wife.
Terry Schiavo can laugh, smile & communicate.
Terry Schiavo can recover.
The country is ‘bitterly divided’ over the Schiavo controversy.
George W. Bush is a war hero. John Kerry isn’t.
John Kerry shot himself in the leg to earn his medals.
Max Cleeland blew off his own limbs.
Bush is a war president.
Bush is a popular president.
The Democrats are weak on national security
Bush critics are ’shrill,’ ‘angry,’ ‘bitter’
John Kerry was against the $87 million before he was for it.
John Kerry is a flip-flopper.
John Kerry outed Mary Cheney.
Howard Dean is insane.
Diebold voting machines are secure.
Fox News is fair and balanced.
Jeff Gannon is a journalist.
Bill O’Reilly looks out for you by cutting through the spin to get to the truth.
Chris Matthews will not let anything get by him.
Tim Russert asks the tough questions.
Dan Rather got what was coming to him.
No one could have anticipated the breech of the levies.
Kathleen Blanco never asked for federal help.
Ray Nagin should have used the buses.
All of the president’s nominations should be given an “up or down vote.”
John Roberts would be a great Supreme Court justice.
Harriet Miers would be a great Supreme Court justice.
Harriet Miers is the best candidate to fill the Supreme Court vacancy.
It is not necessary to give Harriet Miers an immediate “up or down vote.”
Sam Alito is the best candidate to fill the Supreme Court vacancy.
It is the duty of Congress to approve the President’s nominations.
Tom DeLay is decent Christian businessman.
The Delay investigation is the result of a rabidly partisan prosecutor.
Nobody at the White House knows Jack Abramoff.
Democrats took money from Jack Abramoff too.
The Corruption scandals are bipartisan.
The 9/11 plot would have been discovered with the NSA domestic spying program.
Press reports about warrantless wire tapping undermines American national security.
Bill Clinton did it too.
Democrats don’t want to wiretap terrorists.
Whenever we say “wiretap,” that means we’re going to get a court order.
The government is tapping your phone to protect you.
Leaks of classified information authorized by the President are ok because he can de-classify anything at will.
Leaks of classified information to the press by a whistleblower to expose illegal activity are treasonous and will be prosecuted to the full extent of the law.
You cannot have Civil Liberties if you are dead.
Anyone who thinks Dubai shouldn’t control our ports is racist.
No one who thinks we should build a wall along the Mexican border is racist.
The national anthem should only be sung in English.
Mexicans must be stopped from taking jobs Americans won’t do.
George W. Bush is a decider.
Dick Cheney is a sober shooter.
Joe Wilson admitted that Valerie Plame wasn’t covert.
Valerie Plame is a traitor.
Joseph Wilson is a traitor.
Patrick Fitzgerald is going to indict Joe Wilson.
Karl Rove has a faulty memory.
Scooter Libby has a faulty memory.
Gas prices are high because of liberal environmentalists.
Gas prices are high because of taxes.
Drilling in the Alaska National Wildlife Refuge will lower the price of oil.
High gas prices are the result of increased global demand.
Capping gas prices interferes with the free market.
Gas is still cheaper in America than in Europe.
Windfall taxes on high oil company profits is socialism.
It’s surprising that Bush’s poll numbers are so low since people like him so much.
Basically everybody likes the president except for a few wackos on the left.
George Bush doesn’t read the polls.
The Democrats are in disarray.
The Democrats are struggling to take advantage of opportunities even with a weakened GOP.
Some Democrat party insiders are concerned the party is too liberal.
Some Democrat party insiders say Howard Dean is destroying the party.
Howard Dean can’t raise money.
The Republican Party is the party of ideas.
Democrats lack new ideas.
Democrats are struggling to articulate ideas.
Democrats take a political hit criticizing Bush when he has strong poll numbers.
Democrats look like they are “piling on” if they criticize Bush when he has weak poll numbers.
Al Gore is an angry madman.
John McCain is a maverick.
John McCain is a straight shooter.
Hillary Clinton will be the Democrat nominee in 2008.
And with that, I depart from politics
103#, cyber, did u find any politics in my posting?
#104 - I think he fails to find anything relevant.
My vote goes to the first candidate who has a private meeting with GWAR.
81 grim
“I thought it was a bit lacking, left me feeling unfulfilled.”
Likewise, but maybe that’s because I attended Stony Brook and can’t manage to find anything about the place interesting.
85 bi
Nice out-of-context quote. In context, he was saying precisely the opposite of what you are implying.
I don’t believe you are incompetent, by the way - rather, you are intellectually dishonest.
I know my plumber make much more that. Do u just suggest we all go to a trade school to learn the house-building skills?
I would logically guess that only plumbers could afford to live in BC after all.
#23 John Says:
Now we are supposed to pay 2.5 times income for a house and even BC historically used to be a very high 4x income. so that means an ivy league grad should be paying at my 4x formula a max of 520k and a state school grad should be paying 380K for a house. Heck if I used the 2.5 formula the most a 36 year old state grad should pay for a house is 237K
Who the heck are buying all the 1.5 million dollar houses in BC?
Funny, I thought the same thing about the first one.
From MarketWatch:
White House calls second stimulus package ‘political’ idea
Calls for a second economic stimulus package are “all about politics and the election,” White House Budget Director Jim Nussle said Thursday.
OMG - now you are citing to worldnutdaily??
‘I have become a symbol of the possibility of America returning to our best traditions’
Bi…your racism is showing again.
Bi
I believe you’re a filthy, latent racist. That’s all.
Today’s GDP;
“Q4 GDP Revisions: Revised from +0.6 down to -0.2%; The first negative quarter (Don’t say we didn’t warn you) since Q3 2001.”
http://bigpicture.typepad.com/
104 bi
“103#, cyber, did u find any politics in my posting?”
Nothing but politics, in fact.
(83) Tom
In order for people to “keep digging to find the root of the problem” they must first be unwilling to go along with the “game.”
“The jig is up!” “The emperor has no clothes.” In organizations and governments that are “gaming” it will take someone with a moral compass to be unwilling to continue “business as usual.” A Ron Paul so to speak.
SOME of the borrowers took vacations and bought hummers. SOME of the borrowers flipped and swindled. SOME of the borrowers are then part and parcel of the problem….
in my opinion.
“You want to be disgusted with the borrowers that’s fine but I’m trying to say be disgusted with everything…”
I already agreed with you there, Tom - yesterday at post #335.
Are we done now? The US has a big mess and people need to stand up and say so before anything can get fixed.
112 sybarite
Yes.
Wow, what a story. Hat Tip to Calculated Risk for this one. Although, its a bid odd that the reporter seems to blame the lack of computers for the insolvency. Instead, I’d suggest that incompetence may have played some role here, not a lack of technology.
From The Day:
Credit union was a holdover from the past
The New London Security Federal Credit Union, shut down this week after government authorities declared it insolvent, had been one of only a handful of credit unions in the country still posting accounts manually.
…
A former manager of the credit union, who retired last year after decades and spoke on condition of not being identified, admitted Wednesday to being “computer illiterate.” She had been posting information manually for decades, she said.
Edwin F. Rachleff, the 82-year-old broker who handled the credit union’s investments and who committed suicide on the day the institution was declared insolvent, also reportedly did not feel comfortable with computers.
“John Says:
Now we are supposed to pay 2.5 times income for a house and even BC historically used to be a very high 4x income.”
Where did you get that figure from? 1980 it was 4.27 then it dropped to 3.73 and the lowest was 3.14 in 2007. Height was in 2005 with a ratio of 5.63. Not counting the recent boom average BC ratio is 3.46. I have a chart showing Bergen County house price to income ratio.
woops meant 1980 not 1990
“Q4 GDP Revisions: Revised from +0.6 down to -0.2%; The first negative quarter (Don’t say we didn’t warn you) since Q3 2001.”
Wow, I entirely missed that this morning. Hot damn, we were in recession in Q4. I wonder what the scale of downward revisions will be to the first half.
117 grim
“I’d suggest that incompetence may have played some role here, not a lack of technology.”
Maybe we can revive the teaching of logic as a core educational principal? Basic concepts such as the difference between correlation and causality would go a long way towards improving the quality of journalism (and the social discourse generally).
“Q4 GDP Revisions: Revised from +0.6 down to -0.2%; The first negative quarter (Don’t say we didn’t warn you) since Q3 2001.”
don’t tell pretorius.
Correction: negative growth
Or as Hank says, downclimb.
Steve (50)-
At .22/USD, the vultures will be able to withstand a good deal of non-performance in those CDOs. All the playas- including Goldman- have known since early on that many of the CDOs out there are mispriced to the downside and that a lot of that debt will quietly, and profitably, mature at par.
It’s a great time to be a vulture.
#124
growing in another direction
PGC (52)-
You are exactly right on all counts. Show me any other market where you can get tomorrow’s price today.
112#, where is racism come from? this is the problem. when you guys cann’t win on the issues, just throw out label same as neocom labeling liberals. don’t you feel a little too presumptuous? maybe not since you think yourselve in the same way.
‘I have become a symbol of the possibility of America returning to our best traditions’
Bi, so what then in the above statement do you find offensive? Do you even know his intent?
I think it’ll take more than simply agree. It take the responsibility to fix the mess and pay for the debt.
I don’t see people are ready for the responsibility in the country any time soon. Instead they’re just pointing fingers here, would it be consumer, bank, regulator, politician, rating agency, etc…
We need a great depression, a new deal and a FDR to solve this mess.
#115 Cindy Says:
July 31st, 2008 at 10:41 am
(83) Tom
In order for people to “keep digging to find the root of the problem” they must first be unwilling to go along with the “game.
A new New Deal? Specifically, a new WPA.
You really think that Americans would do any of those jobs today?
bi
You’re posting bull$hit. There are no issues.
When you post that Ob*ma proposed reparations for native americans and blacks, you are posting a bald-faced lie.
When you follow by posting that you’ll be taxed more if you’re the wrong color, you’re posting not just a lie, but a lie that is intented to cause white people to resent non-whites.
Yes, you’re a racist. And you’re an unsubtle one, at that.
#132 - No.
Stu, Patient (111, 112)-
Kindly do not taunt or agitate my market-timing oracle.
Thank you.
See, it’s all good, the guvmint was looking for unemployed people, that is the reason the numbers were so high!
http://news.yahoo.com/s/ap/20080731/ap_on_bi_go_ec_fi/jobless_claims
What a bunch af garbage. Add it to the list of Republican lies.
Sorry Clot ;)
130 stu
“Bi, so what then in the above statement do you find offensive? Do you even know his intent?”
Of course bi knows his intent. That’s why bi had to hide his intent by clipping out the part of the statement preceding it, which was:
“It has become increasingly clear in my travel, the campaign, that the crowds, the enthusiasm, 200,000 people in Berlin, is not about me at all. It’s about America. I have just become a symbol … ”
http://tinyurl.com/5q5r2p
I do have faith that a large portion of people would have the courage to stand up finally, in the case catastrophe such as great depression be forced on them.
I do hope the Gods would include the coming catastrophe as part of the plan. So that people would have another chance to learn and prosper for the next 100 years.
#132 grim Says:
July 31st, 2008 at 11:00 am
A new New Deal?
135 clot
was trying to stear him back into the financial world and away from the world of scary people who are not like him.
“computer illiterate.”
[118],
Was it Ambac or MBIA that claimed the same?
What a bunch of do-do.
I have an Idea - How about for next stimulus package we give all People in the USA who NEVER OWNED A HOUSE a 100K TAX CREDIT, WHICH CAN ONLY BE USED TO PAY MORTGAGE for 5 years. That might get me to buy a house.
And a real credit and not a no interest 15 years loan.
All the playas- including Goldman- have known since early on that many of the CDOs out there are mispriced to the downside and that a lot of that debt will quietly, and profitably, mature at par.
You can’t be serious? Who is feeding you that BS.
I fear the hearts of men are failing
These our latter days we know…
NJl$rd,
To fix a problem you have to first identify it. Or be really lucky and hope you guess the right fix.
Fannie Mae was intended to help get us out of the Great Depression, now it’s leading us into one.
That story about the credit union is unreal. Even my grandma has used a computer to trade stocks and she’s 80.
“WASHINGTON - The number of people filing claims for unemployment benefits jumped last week to the highest level in five years, reflecting in large part a new government outreach effort to locate people eligible for benefits.”
From # 136,
Just a do-do type of day. It just seems to be piling up lately.
Fannie Mae was intended to help get us out of the Great Depression, now it’s leading us into one.
“To beer! The cause of… and solution to… all of life’s problems” - H. Simpson, 1997.
Bi
My claim is not simply based on that single post, but rather on your history of posts taken as a whole.
Clot,
Those CDO’s that will mature at par are probably not trading at .22 cents. Those .22 cents CDO’s may be lucky to be worth .30-.40 in recovery.
148
Haha, nice
I agree with you historically BC pays around 4. However Financial Planners think 2.5 is best and in the midwest 2.5 used to me normal.
“John Says:
Now we are supposed to pay 2.5 times income for a house and even BC historically used to be a very high 4x income.”
Where did you get that figure from? 1980 it was 4.27 then it dropped to 3.73 and the lowest was 3.14 in 2007. Height was in 2005 with a ratio of 5.63. Not counting the recent boom average BC ratio is 3.46. I have a chart showing Bergen County house price to income ratio.
150
“Those CDO’s that will mature at par are probably not trading at .22 cents. Those .22 cents CDO’s may be lucky to be worth .30-.40 in recovery.”
The terms of the deal reflect that it’s not clear that they will be worth more than .06 on the dollar, in fact.
I wanted to be a plumber but I am not italian and I could never figure out how they get their pants to show their crack when they bend over but when they stand up it covers their crack. I wanted to be an electrician but I am not itallian and generally don’t like to spend my days in old irish bars drinking beer five days a week plus if I drank a six pack of tall boys on the train ride home I would be peeing all night. The job requiremnets are quite unusual.
Tom, I thought you already did the good jobs of identifying the problems. No? I would take your credits back and put them under my belts no problem.
#145 Tom Says:
July 31st, 2008 at 11:07 am
NJl$rd,
To fix a problem you have to first identify it. Or be really lucky and hope you guess the right fix.
That’s exactly why we have the housing bill to create another agency to fix Fannie Mae. Trust me all your people keep your ENTITLEMENT the system will work. I love this play!
Fannie Mae was intended to help get us out of the Great Depression, now it’s leading us into one.
njpat,
didn’t really look at the full underlying for the MER deal. How do you get to implied .06 worth?
148 grim: lol
155: NJl$rd
I didn’t identify the problems specifically just the general area where I believe they can be found.
This one got lost amid the morning doom and gloom. Didn’t expect this one at all.
Star-Ledger announces large-scale buyout
The Star-Ledger today announced a large-scale buyout to all non-union workers with the goal of reducing the staff by at least 200 employees.
Publisher George E. Arwady said if 200 employees don’t agree to the buyout and if the paper cannot reach agreements with unions representing drivers and mailers meant to reduce costs, the paper will be sold. He said the deadline for reaching both of those targets was Oct. 1.
The offer comes at a time when the newspaper industry is reeling from plunging advertising revenues linked to a troubled economy and sea changes in the way information is disseminated.
The offer was announced to grim-faced employees by Arwady at the paper’s headquarters in Newark. He characterized the paper as being “on life support” and urged employees to consider the offer for the good of fellow employees.
“This is a matter of simple survival,” he said.
#157- Hard Place - Per Seeking Alpha, among others, the buyer only put up $1.6 bil. MER financed the rest of the deal.
NJP,
It’s getting closer:
BlackRock-Brandywine’s Philly deal ‘close’
One of the pros working on Brandywine Property Trust’s Cira South project tells us they’re expecting a formal announcement and political brag-fest in early August to confirm that BlackRock Inc. will indeed move 1,200 investment workers from temporary quarters in an old Merrill Lynch complex in Plainsboro, N.J., to Brandywine’s proposed tower adjoining Penn’s campus, thanks to state and city tax breaks.
BlackRock is expected to lease more than 500,000 square feet, with an option for another 100,000, in a building that will total around 750,000 square feet — not as big as the Liberty Place towers, but in that league.
For a company that’s earning $90 million a month (Financial Times story here), plain-vanilla investment manager BlackRock sure gets a lot of tax breaks: As reported by PhillyDeals earlier this month, BlackRock CEO Larry Fink says he’ll double its Wilmington, Delaware, workforce to 600, now that Gov. Ruth Ann Minner has signed a law limiting investment company taxes. Release here. — New Jersey’s failed effort to save BlackRock in Newark Star-Ledger story here.
Brandywine traded higher this morning
http://www.philly.com/philly/blogs/inq-phillydeals/BlackRock-Brandywines_Philly_deal_close.html
154 john
“if I drank a six pack of tall boys on the train ride home”
I thought that was the traders on their way home to Lawn Guyland on the LIRR?
157 hard
“How do you get to implied .06 worth?”
Because that’s how much cash they got.
See here:
http://seekingalpha.com/article/87688-merrill-cdo-deal-how-can-it-book-a-sale
bi: How much have you actually worked with Republicans and Democrats in Congress? I have worked with both of them and on the same table. There is no difference. All those ideological divide is for purpose of press. In recent years, you have renegade talk show hosts trying to gain market-share by talking any non-sense they can. Don’t buy into either MSM or Talk Radio. They are both Clue Less.
“The offer was announced to grim-faced employees”
Why are they targeting people that look like James?
Kind of like Cramer and stocks, right?
Why are they targeting people that look like James?
They hate me because I’m beautiful.
(Sorry, couldn’t help but throw out the Pantene reference)
all I know is I am voting for Obama because
-he looks good
-he is cool
-change is good
-good public speaker
-was on + endorsed by the Daily Show
besides, we all know democrats are so much cooler (and better looking) than the republicans
The .06 price assumes Lone Star defaults immediately on the loan and there is 0% recovery of any value in the CDO’s. I don’t see LoneStar anteing up on the deal unless it was a fire sale.
hey jamil
“WASHINGTON (AP) — A federal judge has sided with Congress in its fight with the Bush administration over whether top White House aides can be subpoenaed by Congress.
The House Judiciary Committee wants to question the president’s chief of staff, Josh Bolten, and former legal counsel Harriet Miers, about the firing of nine U.S. attorneys.”
#128 Clot
“I’d gladly pay you Tuesday for a hamburger today”.
Clot,
I hate to say it but you may be on to something.
Hedge Funds buying up distressed CDO and MBS for pennies on the dollar.
“We’re much easier to deal with than a bank,” said Jacob Benaroya, managing partner of New Jersey-based Biltmore Capital Group, a hedge fund that’s buying up to $100 million in mortgage debt per year. “We’ve bought (the loan) at enough of a discount that we can make special arrangements with the borrower.”
http://www.forbes.com/feeds/ap/2008/07/30/ap5272076.html
“In our nation as it currently exists it would be illogical and in your own disinterest to try to act MORE moral then joe sixpack and the banks. i.e why would you willingly take a financial hit that you could easily avoid just for principle? You and the bank agreed to certain rules, so why hold yourself to a higher set then what is on paper.”
kettle1, this is precisely correct.
Once one has logically assessed the situation in this country, one can no longer logically try to save it, fix it, make it better, or take a stand for what is right. Doing so would be absolutely futile, and only result in pain and destruction of the folks you love and care about — yourself and your family.
I’m voting for that nice high yaller feller!
200,000 Germans seemed to like him, and the last time that many Germans had a fervent following for a single guy, great things happened.
—The fertile mind of a Republican Operative.
http://www.marketoracle.co.uk/Article5678.html
This time around, the Federal Reserve and its government enablers, sic co-conspirators, have created far more leveraged debt than existed during the historic 1920s stock market bubble. The housing bubble of 2002-2006, created in the wake of the 2000 dot.com bubble (remember that?) is the biggest bubble in history and again we will relearn the lesson that the more that goes up, the more will come down.
Dr. Bernanke, the current US credit provider, and his predecessor Dr. Greenspan will be remembered for their fatal over-prescribing of central bank credit to the US and world economy. Too much of a good thing is and has always been in the end, a bad thing.
Long Article, But good read.
based on above, Loan Star can cut everyone’s mortgage in half and still make .25 cents on the dollar. Who needs a a housing bill the market is already sorting this out.
170 hard
MER needs cash like a cart needs a horse.
Yet they settled for .06 on the dollar, with any other cash to be deferred.
Why?
If Lone Star defaults, MER never gets more than .06 on the dollar.
If Lone Star pays up in full, MER gets .22 on the dollar.
So MER believed somewhere between .06 and .22 was the right price (that’s the full range of what it can get); and obviously you have to discount the value of the deferred .16, since (a) they needed that cash NOW and didn’t get it and (b) they may never get it).
Lone Star is protected on the downside all the way to .06, of course. Remember, this debt is not recourse other than to the CDOS, so if it turns out that the value is any less than .22, they will default (side question: is this moral??).
Short description of this deal: Lone Star bought a really cheap option on the off chance that the CDO value is greater than .22
Another short description: MER bet a lot of money that the value is less than .22, and Lone Star bet a small amount of money that the value is greater than .22.
177 make
“based on above, Loan Star can cut everyone’s mortgage in half and still make .25 cents on the dollar. ”
Wrong. These CDOs aren’t backed by first mortgages that could lead to an REO such that the value is necessarily more than 0. They’re likely backed by crap like HELOCs, 2nd mortgages and other subordinated RE debt where the value of the debt could easily hit 0.
Donald Luskin on Kudlow last night gave an interesting commentary on the Lone Star & Merrill CDO deal, he called it an imaginary sale since Merrill is financing 75% of the deal and it is not really off of their books.
“Wrong. These CDOs aren’t backed by first mortgages that could lead to an REO such that the value is necessarily more than 0. They’re likely backed by crap like HELOCs, 2nd mortgages and other subordinated RE debt where the value of the debt could easily hit 0.”
njpatient,
Even if it’s a heloc or second mortgage, if it’s secured with the house as collateral, a junior lien holder can foreclose on the property.
If the senior lien is larger than the junior lien and they’re both in default, then the senior lien takes precedence but the junior lien holder can buy the senior lien to protect their interest. Otherwise if the senior lienholder forecloses, the junior lien holder is entitled to any overbid but that’s not likely in this market.
If the senior lien is not in default but the junior lien is, the senior lien holder may purchase the junior lien to protect their interest.
In NJ this can happen even after the auction during the 10 day redemption period.
I have a headache so I might have messed some things up. The point is junior liens aren’t always worthless, but you’re right, they can be. Especially for people that try and buy junior liens at auction that don’t know what they’re doing.
“The point is junior liens aren’t always worthless, but you’re right, they can be.”
My only point was that they can be, not that they necessarily are (otherwise Lone Star would have paid 0).
Obviously if the senior debt is greater than the value of the collateral, the subordinated creditor has a problem. Sure, you can buy the senior debt, but now you’re worse off than if you’d simply lit your junior note on fire.
re: #180 Grim in Moderation
Decline in U.S. Stocks Isn’t Over, Merrill’s Bernstein Says
By Lynn Thomasson and Monica Bertran
July 31 (Bloomberg) — U.S. stocks will keep falling until consumer and business loans are more readily available, Merrill Lynch & Co.’s chief investment strategist said.
“It’s going to be pretty hard for the stock market to bottom and form a bull market without credit conditions easing,” said Richard Bernstein in a Bloomberg Television interview. “Clearly credit issues aren’t easing just yet.”
The Cost of Socialism
Over the past few decades, the United States has steadily evolved from a nation of ‘producers’ to one of ‘consumers’. The change has been celebrated by politicians and economists as proof of America’s arrival at the top of the global economic food chain. In reality, the development has depleted the nation of its hard-earned wealth, and has led us to the brink of ruin.
But rather than encouraging a return of America’s productive energy, our government is responding to the growing economic crisis by simply trying to boost consumerism at all costs. Their strategy involves socializing losses among all citizens so that the depletion can’t be easily discerned.
Now that the nation has chosen socialism as its economic salvation, it is worthwhile to examine some historic precedents. They are not encouraging. Europe, the former Soviet block and much of Africa and Asia, show vividly that socialism curbs individual freedom and enterprise, and leads inevitably toward economic decline.
America was blessed both with abundant natural resources and individual freedom, the backbone of enterprise. The combination rendered American productivity the envy of the world. Based on the strength of our industry and productivity, the American Treasury became the world’s largest.
Why would America swap a history of successful capitalism for a murky future of socialism? The Answer is politics.
When the vast majority of the country’s private sector working population is employed in the service sector, then votes tip in favor of consumerism. This is happening in America. Consumer spending now accounts for 72 percent of Gross Domestic Product (GDP), and is viewed as the engine of our continued prosperity.
Over the past decade, when recession threatened to curtail spending, the government pumped hundreds of billions of dollars into the economy. This led to two massive liquidity-driven booms; first in technology, then in housing. During these booms, greed knew few bounds and leverage became a way of life.
But when the merry-go-round stalled, politicians did not, and will not, allow the normally corrective mechanism of a recession to operate. It is trying to take the pain out of capitalism, while leaving only the pleasure. This is impossible.
In the current attempt at a market correction, the government has decided that our bloated financial companies are “too big to fail”. As a result, the government has lent billions of taxpayers’ dollars to bail out Wall Street and the mortgage industry. Some investment banks were given privileged access to the ‘Fed Window’ to borrow unlimited amounts of money, secured by ‘junk’ securities and at the lowest (negative) interest rates, well below the level of inflation. In addition, the shares of the larger financial companies were also given special ‘short-selling’ trading protections.
It is important to note that these protections were not given to other industries, and were not even extended to the entire financial industry. Those receiving the public largesse are precisely the large institutions most responsible for the mess. It was the financial and corporate fat cats who made the private profits gleaned from massive, irresponsible lending and borrowing. Yet, when it comes to rescue, the ordinary citizen pays.
Declining corporate earnings, increased government intervention and higher taxes are tell-tale symptoms of socialism. They can now be expected in America, bringing downward pressure on U.S. government paper and equities. Recession in America will likely reverberate around the world, bringing worldwide strain to economies and equities.
Let us hope that the rest of the world will not follow America’s example and head down the road toward socialism. Economies adopting a free market approach are likely to far outperform those embracing the discarded doctrines of financial failure.
RE njpatient #138
Thank you for the clarification, you beat me to it.
I ,for one, am not elevating the Dem nominee to exalted status - say like Ronald Reagan. But feel compelled to dispel the sophomoric BS propagated by some of the right talk machine.
To cite such sources as WND, Opinion Journal, AEI, et al, verbatim demonstrates a lack of intellect and a lazy devotion to ideology. When one party sees fit to compare the other nominee to Britney Spears and Paris Hilton it seems to me a tacit admission that their campaign has absolutely no substance to it. I would be rather ashamed of my party if it behaved in such a
immature manner. Considering the real and perceived issues facing this country I would rather have a candidate addressing those rather than sniping like an immature school child. Many times we were told that were are facing an existential situation regarding the so called GWOT and yet the party that propagates that idea snips about perceived celebrity. How the hell does that address our existential threat!
Citing any source without some critical analysis is akin to accepting NAR marketing
as concrete sales data.
H
Patient,
The CDO’s that Merrill Sold are all 2nd and HELOC’s?
Your source is?
I beg to differ. I’m hearing that they’re just subprime stuff ex. NINJA loan types. And for those I’m saying that if we cut a 400K POS mortgage into 200K fixed rate, lower property taxes based on value and the homeowners in those homes then hedgefunds then it’s a Win Win.
Am I missing somthing?
NJP, cindy
I think the question of morality needs to be defined before we ask it. how are we defining morality?
1. code of conduct held to be authoritative in matters of right and wrong.
2. an ideal code of conduct, one which would be espoused in preference to alternatives by all rational people
3. interchangeably with ethics where morals = ethics.
The argumnets so far seem to be based on definition 2. The problem with this argumnet is that we must have a common “code of conduct”. If walk away from the house, jingle mail, and yet you have fulfilled the terms of a contract, then it is legitimate to say that this was a moral action.
The arguments over morality quickly become complex here, the question is not black and white. The problem is not a break down of morals per se, but a break down of a cohesive social structure. We have gone from being a nation of neighbors to a nation of consumers. those to groups will behave very differently.
Add to that the fact that joe sixpack is feeling the economic squeeze and survival of the fitest starts to kick in, i.e do what you have to to survive.
“Sure, you can buy the senior debt, but now you’re worse off than if you’d simply lit your junior note on fire.”
Maybe I missed something. But I think if they were able to pick junior liens that were originated after 2003 with senior liens that were originated before 2003 chances are good that they’d make money.
Not sure if that’s the case. I have to admit I’m just trying to make clicky noises to distract me till the aspirin kicks in :)
188
I think John should get to define morality.
the tax credit has scam written all over it.
Bought a home in Dec 2008 and didn’t file a tax return this year or any other since I am a illegal alien.
In 2009 I file a tax return for the first time and request the IRS send me a tax credit check which they are required to do by law.
I cash the check and pocket the money and without the IRS knowing I defaulted on the loan and headed back to Mexico with $7500.
Since I didn’t put up but maybe a $1000 for a downpayment through a friend I’m ahead by with $6500.
Wait a minute how can you get a home today with only $1000? Easy, owner financed through one of your friends and when it defaults it goes right back to the same person who actually never moved out.
Just one of the many scams that will eat this money right up. But you’ll never know about it because it will be hushed up by politics,
Congress knows this will be ripe for scam but its good PR work for votes
I am always interested in the correlation between party school and academic quality. I went to UMass, which was supposed to be a party school when I went there, but it really wasn’t.
It had a rep, but that was based on very old laurels from the 70’s, and more recent grads tell me that, notwithstanding the Boston Globe’s slant, the party scene there sucks. It never even gets mentions in party school compilations anymore. I found more drunks and harder partying at BC.
In retrospect, this makes sense when you consider the academic rigors. BC Bob may disagree, but UMass academics are top rate and I knew quite a few very smart people that struggled there, including folks that turned down top tier schools to go there (outside of Mass, UMass is well regarded). This meant that the true party people, who couldn’t handle the partying and studying, dropped out in droves (25% dropout/flunkout rate for freshmen while I was there).
Truth be told, I also struggled at UMass but when I went onto law school, I did very well. In fact, I got better grades in my undergrad courses at Amherst College, Mt. Holyoke and Harvard than I did at UMass (though, at Harvard, that isn’t a stretch because of their notorious grade inflation).
So I wonder if, notwithstanding their reps, Florida or Az State also had high quality grads because the partying and distractions separated the wheat from the chaff. Gator would be a prime example of that, I suppose.
“make money Says:
July 31st, 2008 at 12:26 pm
The Cost of Socialism….blah, blah, blah….”
I, for one, will never defend Socialism. But it is absolute idiocy to say that we are on a path to Socialism. Milton Friedman would say something like that because his solution to any problem with Capitalism is more Capitalism.
We are in a economic mess due to massive corporate fraud which has been made worse by a corrupt and incompetent government.
Regulation and accountability is not Socialism.
HC
Why does everyone point at Europe to say how bad Socialism is? Aren’t most europeans enjoying a higher quality of life as compared to their American counterpart?
I understand that they are taxed out the wazoo, and it’s more difficult to be an independent business-person there, but I don’t think Europe is the hell that many make it out to be.
At this point, the Brigadoon GTG for fall is still on.
Home inspection went well, and the appraisal contingency I crammed in during AR was unnecessary, so we are under contract and just need sellers to address some structural and safety issues to close at the end of August.
193 under moderation; unsure why.
From Economist.com
Bring out your models
The economic slowdown is testing all of Europe’s cherished economic philosophies
Denmark (an honorary member of the euro zone, with its krone firmly pegged to the single currency) recently became the first EU state to enter a formal recession, thanks in part to a housing bust. The bursting of property bubbles is also causing misery in Ireland and Spain, with an estimated 1.5m unsold homes in Spain alone.
All manner of financial institutions are now in trouble, not just those in Anglo-Saxon countries. To that must be added rising inflation. “In a sense, it would be easier if everything were contagion,” he says. Countries with big financial sectors have so far suffered more, he concedes, but that is because they are intrinsically more volatile, not because their economic model is based on fraud and illusion.
197 make
“Your source is?
I beg to differ. I’m hearing…”
What if I told you “I’m hearing” is my source as well?
We’re talking an original face value of $30B in CDOs. Do you really think that Lone Star has a good idea of what’s backing that $30B in paper? I don’t. My view is that anyone claiming to know what it is that Lone Star bought (including Lone Star) is full of crap, or is making a wild guess what is meant by “super senior ABS CDOs” when they read the Merrill press release. I’m not claiming to know what Lone Star bought; I am merely suggesting that it is possible for there to be 0 value in any particular piece of paper that they bought. There is no floor.
Now, you may suggest, and you might be right, that Lone Star did some pretty spectacular diligence and knows what they’re getting, and it really is all the best stuff and they struck a great bargain because MER had no choice. But if that’s the case, it should be pretty frightening that .06-.22 on the dollar is the GOOD stuff and the rest is worse than that!
[185] Make,
My favorite quote on this subject:
“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. . . ”
Attributed alternately to Alexander Tytler and Alex. de Toqueville.
“At this point, the Brigadoon GTG for fall is still on.”
Shweet
good stuff, nom
Great!, now the FDIC can borrow from the FED! “The FDIC takes over banks that are insolvent, not temporarily illiquid. And the discount windows provide liquidity, short-term and -supposedly- only in emergencies. Nothing about them says solvency, for good reason.”
July 31 (Bloomberg)
— The Federal Reserve will be able to lend more easily to failed banks under government control because of a provision in legislation that bailed out Fannie Mae and Freddie Mac.
In the rescue signed into law by President George W. Bush yesterday, the Fed will no longer have to pay penalties on loans it makes to institutions taken over by the Federal Deposit Insurance Corp.
http://tinyurl.com/662ehd
191- make.
How can you file a tax return without a SSN?
[200] NJP
There will be Scotch
{and you can practically stagger home from there)
dealbreaker reporting Goldman Sachs bonuses for first year people $75k, or $60k, “plus a 20k increase in base.”. Bonus buys hardly a BMW! IBs are going to starve this winter.
This is worse than the Great Depression.
191 “How can you file a tax return without a SSN?”
You don’t need SSN for tax return. Illegals do it all the time (and some legal immigrants)
sybarite
if you add up total tax many europeans pay less total tax then americans do and get 10X the service in return
NJ,
I hear you. You mean to tell me that if you’re Loan Star and Thain says I need to sell you’re not going to stick it to him.
Of course you are.
In addition, Would you buy paper from Thain if you didn’t have your best people go through the junk and actually find some treasures in there.
Then you pull Jamie Dimon and say that it’s all worthless.
Thain thinks he’s Bergabe and provides a backstop.
done deal.
jamil johnson is right.
dealbreaker reporting Goldman Sachs bonuses for first year people $75k, or $60k, “plus a 20k increase in base.”. Bonus buys hardly a BMW! IBs are going to starve this winter.
Even the blind governor sees this coming.
Thank the Lord we all work in investment banking…
204 Nom
“There will be Scotch”
Brigadoon GTG & Scotch Tasting.
Brilliant!
Ah scotch tasting, nice idea. Everyone brings a bottle?
Has anyone heard about banks giving a 50% off discount for an REO if you buy cash?
Say you bank has an REO for 300k, and you feel that you could buy it for 150k cash, and then invest maybe 20k and flip it for 250. With most banks are hurting bad now, wouldn’t they gladly take the 150k immediately?
Thoughts?
You can file a tax return using a TIN, taxpayer id no.
reading ‘millionaire next door’, should be required for anyone getting a mortgage. Simple concept saying to buy a cheap house in a cheap neighborhood, drive a cheap used car, wear cheap clothes from jc penney, send your kids to public school, get a budget and shrink it, drink cheap wine, be cheap, etc., kind of depressing actually.
Also claims that your net worth should be: (pretax annual salary and investment income x age) / 10, which i think is somewhat of a high standard, unless you’re really cheap…
215: yes..Originally TIN was meant for foreigners who bought property in the US, but nowadays it is used mainly by illegals (who can get cash back using EITC or other tax credit scams).
Has anyone heard about banks giving a 50% off discount for an REO if you buy cash?
Say you bank has an REO for 300k, and you feel that you could buy it for 150k cash, and then invest maybe 20k and flip it for 250. With most banks are hurting bad now, wouldn’t they gladly take the 150k immediately?
Thoughts?
Even IndyMac would have rejected you offer. We’re not there yet.
Does anyone know where I can find a cell phone scrambler for my business.
215: yes..Originally TIN was meant for foreigners who bought property in the US, but nowadays it is used mainly by illegals (who can get cash back using EITC or other tax credit scams).
Exactly. I see a lot of Albanians filing taxes even though they worked off the books all year. They declare $2000 in income. get the Earned Income Credit and Child Tax Credit(3 kids) and their refund is around $5K. Now add $7,500 for housing and you’re looking at nice POS cape in Mexico paid in cash.
great work Washington. This housing bill will prop up housing in Mexico.
#192
Nom,
ASU Grad here. I did see a ton of students come and go within a semester or two. It’s very easy to get out there in the sun where every apartment complex has a pool, jacuzzi, beach volleyball court, basketball court, etc and forget that you are actually there for school. Next thing you know you are boozed up, drugged up, failed two classes and you’re back home in Minnesota sleeping on Dad’s couch and taking the bus to community college. My roomates/wife and I partied HARD, but we all got through and graduated. Now, were all doing very well with those party school BA’s and nothing else (mostly in Sales). I have worked with many Ivy League grads, and guess what, nobody cares where they went. I understand it works that way in Law, and some other fields, but not everywhere. If you cannot present - develop relationships - and SELL, then nobody cares where you went to school. Actually, I couldn’t tell you where 95% of the people I work with went to school.
I like to think our time at ASU helped mold us all, somewhat academically but more so socially.
217
Dude, you should be happy they’re paying taxes in the first place.
njpat,
I have no idea what was in those sales for MER, but implying a loan is made that is made by MER knowing there is a default is a little far-fetched. No way that gets through a lending committee. If MER makes the loan knowing there is a strong chance of default, they will work like dogs to make sure that they value the collateral to protect their payback in the loan. I’m guessing they sold at .22 and recovery value is at least.30. MER needed the cash so they couldn’t stick out long enough to find out the true recovery. MER didn’t make any bets here, they needed to go to the ATM to get more money.
Complete speculation on my end.
213 grim
“Everyone brings a bottle?”
Yes! Er … everyone so inclined, I suppose. Wouldn’t want to exclude merely on the basis of Scotch.
hard
“implying a loan is made that is made by MER knowing there is a default is a little far-fetched”
I don’t think I implied that.
Here’s the thing, Make: It’s being done. My lawyer’s wife is an agent in the DC area and she has seen some people come in with the cash and swing the deal.
It’s obviously not happening more often because few have that much cash laying around. And this couple is running into problems because they have investors (and a primary residence) … but the banks are still rejecting them for a variety of reasons.
(one being - we want to see that you’ve had this cash for awhile, like 90 days or more.)
A hair of the dog
From The Economist print edition
Congress has been too lenient on Fannie Mae and Freddie Mac
But imagine that Fannie and Freddie had turned for financial support to Hank Paulson not as treasury secretary but in his old incarnation as head of Goldman Sachs. Goldman would have insisted that the companies paid a high price: shareholders would probably have been wiped out. Just look at the deal that Lone Star, a private-equity firm, has struck with Merrill Lynch to buy the latter’s dodgy mortgage-related assets: not only is Lone Star paying a mere 22 cents on the dollar, Merrill is lending it most of the purchase money. By comparison, the federal government’s negotiating skills look more like those of Donald Duck than of Donald Trump.
If Fannie and Freddie are too important to be allowed to collapse, and the American government is really responsible for their debts, then they should be nationalised. The current arrangement allows managers and shareholders to take all the profits and leave the losses to the taxpayer.
The whole package is an attempt to throw government cash at a market that is already heavily distorted by tax breaks and subsidies. And it comes at a time when house sales, if not prices, look at last to be bottoming. Nationalisation, followed by speedy, full privatisation would have been so much better. Are there are any free-market capitalists left in Congress?
Paulson: Work to lower Fannie, Freddie risk must start now
This guy has no shame. Last week he said that we would’nt need to spend a dime.
from Marketwatch
Make you forget to pay someone to unwind the dam$ cdo and sort out all the nitty-gritty who owns what where’s lien who service the debt stuff.
The last time I check my wife’s paycheck I can tell you it’s not going to be cheap. Especially we don’t have too many good maths students in this country anymore.
ML always kept the good trenches in their books so yes you’re correct Lonestar may just get bunch of unsold subprime. I assumed Lonestar no dummy they’ll have better asset recovery process/group than ML that they feel they could make a few bucks of the garbage. So it’s still a win-win if everything work out quickly. But with the speed of falling, there will be better assets in the market soon so there is no point to be in a rush for next Lonestar.
Just my personal opinion as an outsider - all disclaimer
#185 make money
Am I missing somthing?
Also MER provided the financing because nobody else understands the collateral. Not that MER did, since they are in this mess in the first place.
“If MER makes the loan knowing there is a strong chance of default, they will work like dogs to make sure that they value the collateral to protect their payback in the loan. I’m guessing they sold at .22 and recovery value is at least.30. MER needed the cash ”
- They needed the cash (I agree)
- They made darn sure the collateral has a value of at least .30 (I’ll stipulate this for the sake of argument).
Then why didn’t they get .22 in cash?
If cash was what they needed, and there is any clarity at all that the collateral is worth at least .30, then why was no one else out there willing to pony up the bridge loan?
I don’t think either party really knows what they have. I believe that they made a bet, where in return for giving Lone Star really good odds (i.e., the terms of the deal), MER got some cash.
I don’t think we can know much more than that.
217: “Dude, you should be happy they’re paying taxes in the first place.”
Actually, they are not. For example, an illegal alien can get a check from the goverment under EITC scheme even if he didn’t pay any taxes.
There are also many other similar cash back scam which are widely popular among illegals.
mike
http://www.cell-phone-jammers.com/
but be aware that there may be legality and FCC issues involved.
Laughing all the way,
my man. I’ve been sitting on cash and have serious contacts in Brooklyn, Queens, BX, and somewhat in SI and I don’t have any info on this type of REO sales.
deutch Bank sold a batch in March for 55 cents on the dollar for single and two families. I think it was 40 homes or so.
Nothing like that happening around here.
I assure you.
[213] Grim
“everyone brings a bottle?”
Works for me!!! But I would not insist on scotch. Vino works just as well.
(Mrs. Nom joked that it should be BYOC (Bring your own chair) because of our lack of furniture. I hope to have that resolved.)
Veto,
“Simple concept saying to buy a cheap house in a cheap neighborhood, drive a cheap used car, wear cheap clothes from jc penney, send your kids to public school, get a budget and shrink it, drink cheap wine, be cheap, etc., kind of depressing actually.”
Not so depressing, I’ve known people like that. I included the book in one of my recent posts and included a story about one of the people I know in the comments when someone asked about The Millionaire Next Door”.
“But I would not insist on scotch. Vino works just as well.”
Or both.
Grim #227 in mod
[234]
further to my earlier post. I think it goes without saying that, when it comes to bringing bottles to a GTG, Grim’s money is no good here, figuratively speaking.
The value of the education received here goes well beyond a bottle of scotch. Every GTG should be a Grim Appreciation GTG.
My $0.02
#214 Laughing all the way
Wouldn’t make it through the compliance department.
[236] patient
No argument from me. The wine “cellar” has an unpleasant echo quality to it.
njpat,
“I don’t think we can know much more than that.”
That I do agree with.
today’ sheadlines
Weekly Claims at 5-Year High,
GDP Revised Lower,
Borrowing From Fed Soars
Nice stuff ha?
surprise to know somebody is cheaper than a sluml$rd like me. way to go Tom.
#235 Tom Says:
July 31st, 2008 at 1:37 pm
Veto,
229 hard
“Also MER provided the financing because nobody else understands the collateral.”
which is why I doubt Lone Star does, either.
Mass. regulators accuse Merrill Lynch of fraud
Mass. regulators file fraud complaint against Merrill Lynch over auction-rate securities
BOSTON (AP) — Massachusetts security regulators accused Merrill Lynch of fraud Thursday for allegedly promoting the sale of auction-rate securities when they knew the investments were becoming increasingly unstable.
C sections are great! They can tighten up your muscles, cut the stretch marks off, and you get to stay in the hospital for 4 days no cleaning, cooking, taking care of a baby, and all the pain meds you want. Reg delivary they kick you to the curb in 36 hours stretch marks and all.
Interesting article at Naked Capitalism that looks at possible shenanigans involving Lehman.
To whit; Lehman has been selling it’s assets to a group called R3 which it (Lehman) largely owns. Nice !
Morality is easy to define. Pope John when he did some updating of Church Doctine a few years ago did say stuff like credit card and mortgage fraud where you borrow money and do not pay it back is indeed a sin. From a morality point of view it is clear it is a violation of one of ten commandments and as such the church can state infaliblly that is indeed a sin and unmorale to not pay back your mortgage when you agreed in writing to pay it back and you have the means to pay it back. That said 99% of people know that and don’t care. We all that most of the fun things are immoral and most of the get rich quick schemes are immoral and no one cares. I do know that in the year 2060 the subprime section of hell is going to be pretty crowded.
Someone else pointed out before this is a true sale. I think the financing thing is because MER could not find a cash buyer (like a pre-foreclosed home owner). So instead a ’short sale’ is arranged.
It would be insane to hoard the cashes and be a casher buyer these days in wall st. when everybody use to leverage to 20:1,30:1,40:1 while pocketing serious bonus in the pocket.
#244 njpatient Says:
July 31st, 2008 at 1:45 pm
229 hard
“Also MER provided the financing because nobody else understands the collateral.”
which is why I doubt Lone Star does, either.
“From a morality point of view it is clear it is a violation of one of ten commandments ”
Huh?
I can see a biblical argument that involves prohibitions on certain credit-card-related behavior, but the only one I can think of is the prohibition on lending money for interest.
They are illegal in the US and the FCC forbids them to be shipped into country. But they are legal in Japan and lots of stores, buses and trains have them. If you know anyone on a business trip to Tokyo I saw them in electronics stores in teh Ginza. Also legal in China, so maybe get a buddy who is going to olympics to pick one up.
Mikeinwaiting Says:
July 31st, 2008 at 1:22 pm
Does anyone know where I can find a cell phone scrambler for my business.
252
To quote “Finding Nemo”: You’re very cute, but I can’t understand a word you’re saying.
That prohibition is a jewish person can’t charge another jewish person interest which is why the smart money always tells their landlord they are jewish as the landlord can’t take a deposit as legally he needs to pay interest and he cant.
jpatient Says:
July 31st, 2008 at 1:57 pm
“From a morality point of view it is clear it is a violation of one of ten commandments ”
Huh?
I can see a biblical argument that involves prohibitions on certain credit-card-related behavior, but the only one I can think of is the prohibition on lending money for interest.
NJl$rd,
I wouldn’t call him cheap. He just spent his money wisely on things that mattered to him. His vacation home was nicer than his primary home, he put his kids through good schools and after that he started to spend more money on himself. It paid off.
254 john
Please explain how you determine which prohibitions in the Old Testament apply to Catholics and which do not, given that you moments previously were citing the Old Testament as dispositive of Catholic morality.
Can someone look up MLS ID: 2498353
It is a home in Sparta that we discussed a while back. I wonder if it sold or is being relisted.
Ugggh. Religion!
Five Things You Need to Know: America, The Banking Welfare State
http://www.minyanville.com/articles/fannie-Freddie-fnm-fre-mailbag-banks/index/a/18300
PGC
UC
Anticipated Close: 09/30/2008
“Ugggh. Religion!”
It’s the NJ Real Estate, Economics, Politics, Oil, Gold, Immigration, Scotch, Stroller, John-Imitation and Religion Report!
Mikeinwaiting Says:
July 31st, 2008 at 1:22 pm
Does anyone know where I can find a cell phone scrambler for my business.
Those looked like GSM jammers anyway. The US has a few GSM companies but there are still a set that doesn’t use GSM. Verizon Wireless comes to mind in my area as a non-GSM carrier.
I believe that they are moving to GSM solutions in the future but for now a GSM jammer will only get you about 50% of the traffic stopped.
I believe that it is illegal to operate one, not own one which is why they state that they can ship them anywhere. I would check on that though.
FCC gives liscense to a company allowing unfettered access to that radio frequency band, if someone is jamming or disturing that access they can ask the FCC to intervene. I believe the FCC only regulates how much power a transmitter can measurably produce so if the transmitter is of sufficiently low power then they cannot prohibit you from operating it even if it bleeds onto different frequencies.
Kinda like how the FCC doesn’t come and arrest you for operating a vacuum cleaner that causes your TV channels to come in all funny while it is being operated.
Oh c’mon, who brought religion into this.
The Headaches of College Debt
BC,
Have fun!
I can handle all of the other diversions, but I draw the line on religion. Anyone who thinks their religion is above the next person’s needs to return to the sea post haste.
“Oh c’mon, who brought religion into this.”
It was john. I was just imitating.
Don’t forget about cars. Been driving around today in a new BMW 530xi (loaner).
Really nice car from a fit/finish perspective, but I’m less than impressed from a performance standpoint.
Good point John I happen to have some vacancies in the slum. Please refer those eyesores to me if your he$$ is too crowded. We could arrange the commission in private - just ask dear Mr. Grim for my email.
#249 John Says:
July 31st, 2008 at 1:52 pm
Morality is easy to define. Pope John when he did some updating of Church Doctine a few years ago did say stuff like credit card and mortgage fraud where you borrow money and do not pay it back is indeed a sin. From a morality point of view it is clear it is a violation of one of ten commandments and as such the church can state infaliblly that is indeed a sin and unmorale to not pay back your mortgage when you agreed in writing to pay it back and you have the means to pay it back. That said 99% of people know that and don’t care. We all that most of the fun things are immoral and most of the get rich quick schemes are immoral and no one cares. I do know that in the year 2060 the subprime section of hell is going to be pretty crowded.
race & religion. two conversational dead ends.
“It’s the NJ Real Estate, Economics, Politics, Oil, Gold, Immigration, Scotch, Stroller, John-Imitation and Religion Report!”
You forgot lawns! :)
Need the V8 in the 5 series to feel impressed.
530xi is a dog
535xi is the one to drive, if you’re into that size.
Hard place,
I disagree. BMW’s new turbo 6 is amazing and is on par with their V8’s.
“Really nice car from a fit/finish perspective, but I’m less than impressed from a performance standpoint”
Grim, I’ll let you test drive my 95 Civic at a GTG. Manual steering, power assist breaks. It’s truly responds to muscle.
morality is like pornography. I know it when I see it.
And unless you pay for it, you only get to see a little bit that’s poor quality.
Doyle (221)-
I got the best of both worlds: a h@rd-core party school (UNC) that somehow got an academic rep. Although I was able (on occasion and when-inclined) to find some excellent classes, my development in those years was mostly in the area of- how shall I put this- “social skills”.
turbo 6 is nice.
oh, no who brought up the cars…
Personally, I’m not a fan of the current 5’s styling. The last gen E39 was a classic, beautiful design. The 540i 6-speed and M5 were excellent vehicles, although a bit large for my tastes.
Carl Witzig - Real Estate Pro in Upper Montclair responded to 162 Schlaalenburgh on another blog.
162 Schlaalenburgh sold 9/05 for $300K it appears from Tax records.
Assessed at $607K.
Hard to believe any house was listed from 2006 to present day for 799K to 509K without selling in No. NJ. Must be some special circumstances., not the least of which is the price and the motivation of the seller.
Town is an enclave of 5000 people, 1600 households, median income of $105K, 84% white, 15% asian.
Point well taken on how reliable an index is based on a small sample.
Just what is the P valueof the CS index? Anyone know?
I’m looking forward to one day getting a convertible 3 series or a used 911 cab. When i turn in my current car for a minivan, my wife & i are in agreement that the sports car is in the cards.
Grim,
Saw a nice CRX for sale on Old York Rd in Raritan and thought of you. Looked like an Si, looked pretty clean, with $2495 on the window.
“race & religion. two conversational dead ends.”
Nigga please!
(don’t hurt me)
It appears that 162 Schlaalenburgh expected 399,000 increase in property value after only six months.
This is the true American dream.
282
:-0
“Don’t forget about cars.”
“You forgot lawns! :)”
D’oh!
Funny, because I started the year getting a new car, and am now starting a new lawn (Tom, I’ve been clicking on your links - thanks!).
#281 - $2495, as long as it hasn’t been completely abused that’s not too bad.
I’ve been toying around with the idea of getting a 2002 tii and fixin’ her up, Or getting Conquest/Starion fixin’ it up and dropping a massaged 4G63T under the hood.
SG Says:
July 31st, 2008 at 2:10 pm
The Headaches of College Debt
Shail: That kid profiled should be disemboweled. It would match his lobotomy very nicely. It is also a shame that his higher order brain functions were disconnected from his stem at such a critical phase in his ability to spend money. $300,000?
Nom,
structural and safety issues …
Like what?
(don’t hurt me)
Alright now, I’m gonna have to lay a hurtin’ on you for make me spit up my coffee on my computer screen.
Grim, I’ll let you test drive my 95 Civic at a GTG. Manual steering, power assist breaks. It’s truly responds to muscle.
Hey, this thing was a loaner, I’d be dreaming if I thought I could afford one of these.
262 nicholas: “Those looked like GSM jammers anyway…I believe that they are moving to GSM solutions in the future but for now a GSM jammer will only get you about 50% of the traffic stopped.”
Latest cell-phone jammers don’t care about the technology (e.g. GSM or CDMA), they just jam all relevant RF frequencies so they should block 100% of cell-phone traffic in the proximity of the jammer.
I don’t know effective they are, but it probably depends on transmit power, distance, indoor/outdoor etc. At least Pakistani ISS has had great success with them (blocking cell-phone triggered bombs in assassination attempts on Musharraf), but I doubt they are using retail models..
I traded the pathfinder in the other day for a smaller truck of ‘06 vintage. given the fact that i was averaging 14mpg in the nissan, I figured it was time to downsize.
I think Jamil is CIA.
#276
Clot, yes great rep for UNC, in both respects. I honestly believe that those “social skills” you speak of go a long way. They really do play a role, particularly in Sales. ChiFi often talks about having the right skill set, or total package to advance in a given field. I really do believe this. Being the smartest guy in the room isn’t always going to pay the bills. Particularly if you don’t know how to communicate those smarts verbally.
A lot of “smart guys” really struggle with this.
dreaming is the best part. Keeps us going. Think I really can afford a 3 series convert or a used 911 cab at about 50k a pop? Since I’m dreaming I might as well say I would love to get behind the wheel of a Ferrari Modena.
We have a runner!
Federal prosecutors suspect that a Wall Street broker who is the target of a criminal investigation into sales of mortgage-related securities has left the U.S. and could have fled to his native Bulgaria, according to people familiar with the case.
The move comes as prosecutors prepare to bring criminal charges in a high-profile probe into the activities of two former Credit Suisse brokers, the people say. Authorities have been investigating whether the brokers — Eric Butler and Julian Tzolov, who is Bulgarian-born — lied to investors about how they placed their money in so-called “auction rate” securities tied to subprime mortgages, the people say.
Kenneth Breen, a lawyer for Mr. Tzolov, and Paul Weinstein, a lawyer for Mr. Butler, declined to comment, as did a spokesman for the U.S. attorney’s office for New York’s Eastern District in Brooklyn, which is handling the case.
Credit Suisse said in a statement that the brokers were suspended last year as soon as the firm “detected their prohibited activity,” and that it notified regulators.
The investigation is the first known criminal matter stemming from the now-collapsed market for auction-rate securities. This type of debt soared in popularity in recent years because of its unique structure: It let issuers borrow for the long term, but at lower, short-term interest rates. The interest rates reset at periodic auctions, thus the name.
However, this market — which once topped $330 billion — seized up in February, leaving thousands of investors stuck with securities that they now can’t sell. This has forced many bond issuers, such as state and local governments, to refinance such debts, often at higher rates and after paying extra fees.
The investigation is being widely watched by Wall Street firms, which are facing civil claims and regulatory probes about whether they adequately disclosed the risks in these auctions. (See related article1.)
SUBPRIME AGGRAVATION
Two former Credit Suisse brokers are being investigated for fraud in connection with selling auction-rate securities tied to subprime mortgages to their corporate clients — including many in Israel, whose balance sheets have suffered. Below, the clients and their status:
Compañía Panameña de Aviación SA (Panama), commercial airline: Settled last year with Credit Suisse for $3.6 million, according to regulator records.
IncrediMail Ltd. (Israel), Internet firm: Wrote down $4.9 million, nearly its entire investment.
Logitech International SA (Switzerland), computer-related products: Settled with Credit Suisse but still had to record $46 million paper loss.
Mind CTI Ltd. (Israel), billing and customer-service products: Wrote down $15.2 million, or 75%, of their holdings, and filed arbitration claim.
Sarin Technologies Ltd. (Israel), diamond measurement tools: Wrote down nearly all of its $1 million investment and filed arbitration claim.
STMicroelectronics NV (Switzerland), semiconductors: Recorded $75 million charge and filed an arbitration claim.
Syneron Medical Ltd. (Israel), cosmetic-procedure devices: Took $5.8 million charge and filed an arbitration claim.
Tadiran Communications Ltd., now part of Elbit Systems Ltd. (Israel), military-communications technology: Settled with Credit Suisse for $7.3 million last year, according to regulator records.
Teva Pharmaceutical Industries Ltd. (Israel), drug maker: Took $52 million charge; a Credit Suisse employee flew to Israel to negotiate but the talks failed.
Visonic (Israel), electronic security systems: Announced $1.7 million settlement with Credit Suisse earlier this year but later said negotiations had broken down.
Source: SEC filings, WSJ research
Just last week, New York Attorney General Andrew Cuomo filed civil fraud charges against UBS AG, accusing the firm of a “multibillion-dollar consumer and securities fraud,” and demanding the firm pay back its profits from the auction-rate-securities business, make investors whole, and pay damages. UBS is fighting the charges.
The Credit Suisse case would represent the second instance of criminal charges being leveled against Wall Street employees since the credit crisis erupted a year ago. Last month, criminal prosecutors charged two former Bear Stearns Cos. hedge-fund managers with securities fraud.
The Bear Stearns managers are contesting the charges.
The investigation into Messrs. Tzolov and Butler was spurred by meetings starting last fall that involved a number of the brokers’ institutional clients, the Justice Department and the Securities and Exchange Commission, the people say. The clients alleged that the New York-based brokers sent them emails that mislabeled the auction-rate securities by using names that made it appear as if the securities were backed by student loans, the people say. In fact, the securities were backed by riskier assets tied to subprime mortgages, according to the people and emails reviewed by The Wall Street Journal. Some clients had authorized purchases only of securities backed by student-loan assets.
Mr. Tzolov, 35 years old, appears to have moved out of his condominium, which is located a few blocks from Credit Suisse’s Madison Avenue office in the Flatiron District of Manhattan. He bought the property last year for $2 million, public records show.
Mr. Tzolov moved his belongings out about a month ago, according to the doorman at the apartment building, who said the condo was “empty.”
U.S.-Bulgaria Extradition
It’s unclear whether Bulgaria could extradite a defendant in a U.S. securities-fraud case. The current U.S.-Bulgaria extradition treaty from 1924 covers “fraud” but isn’t more specific. A new extradition treaty, which could go into effect as early as September, would include most felony crimes, including securities fraud.
Mr. Tzolov graduated from an English-language high school in Sofia, Bulgaria, in 1992, and got a bachelor’s degree in finance and investments from Baruch College in New York in 1997, according to regulatory records.
In his early days in the U.S., he struggled financially. In 1994 Mr. Tzolov filed for personal-bankruptcy protection over $7,000 in credit-card debt due to “financial difficulties and lack of support from my parents.”
He went on to work at CIBC World Markets Corp. and Lehman Brothers Holdings Inc. before joining Credit Suisse with Mr. Butler in 2003.
Mr. Butler, 36, and Mr. Tzolov resigned from Credit Suisse last September and joined Morgan Stanley, which fired them earlier this month based on indications they might face criminal charges by federal prosecutors, according to a person familiar with the matter. Ed Friedman, a Morgan Stanley executive who hired and supervised the brokers, was let go in January, a person familiar with the firm said.
In its statement, Credit Suisse said that “while these former employees violated their obligations to our firm and our clients, Credit Suisse provided the corporate clients involved with official trade confirmations and account statements accurately reflecting their trading and holdings.”
FROM THE ARCHIVES
• Page One: Auction-Rate Crackdown Widens2
07/25/08
• Auction-Rate Probe Grows Over Clarity From Brokers3
07/09/08
• Two Ex-Managers at Bear Indicted Over Hedge Funds4
06/20/08
Even before the auction-rate market froze in February, some customers of Messrs. Tzolov and Butler had suffered significant paper losses because their auction-rate securities were backed by instruments tied to subprime mortgages, and auctions for those securities began failing as early as a year ago.
More than a half-dozen companies have filed civil legal claims against the two brokers and Credit Suisse to recover losses, according to records of customer disputes kept by industry regulator Financial Industry Regulatory Authority, or Finra, which is also investigating the matter.
Sophisticated Investors
In customer-dispute reports kept by Finra, the brokers responded to some complaints by saying clients were sophisticated investors “that directed each trade” and received confirmations and monthly statements about all the transactions. They added that the securities had the highest ratings given to debt by major credit-rating firms, and that at least one client didn’t complain until the market for its securities disappeared.
Many of the brokers’ clients were Israeli firms, based on relationships the pair formed years ago. The clients ranged in size from drug giant Teva Pharmaceutical Industries Ltd. to IncrediMail Ltd., a small Internet firm. One firm, STMicroelectronics NV, a Swiss semiconductor company, has taken a $75 million charge stemming from the auction-rate securities losses. Some companies have suffered paper losses of nearly all their investment.
The brokers began visiting Israel and acquiring clients when they worked for Lehman Brothers several years back, according to an Israeli executive who had dealt with the brokers. Lehman declined to comment.
The Israeli executive said Mr. Tzolov was “hungry for business,” adding that he introduced the brokers to executives at other Israeli companies, which later became clients. The brokers developed a reputation for bringing solid returns, he said.
Messrs. Tzolov and Butler put some clients’ money into newly issued auction-rate securities tied to mortgages, according to the Israeli executive. Selling the newly issued securities would have earned the brokers heftier commissions.
Many of these companies say their money was put into securities that were much riskier than their conservative business plans called for and came at a time when the brokers should have known that subprime loans for people with poor credit had already begun to default nationwide.
In two emails that were shown to prosecutors and reviewed by the Journal, the brokers described investments to one client by adding the words “student loan” and “st. loan” to the names of securities which weren’t primarily student-loan related. The client had authorized only student-loan investments.
In one example, Mr. Tzolov sent a report to the client regarding a multimillion-dollar purchase of “South Coast Funding St. Loan.” The actual name of the security is “South Coast Funding IV Ltd.,” which is largely backed by real-estate- or mortgage-related securities. It may also include a small portion of student-loan securities, according to the security’s offering document.
In another email, sent by a junior broker at Credit Suisse who worked with Messrs. Tzolov and Butler, a security was described as “Camber Funding Student Loan” rather than its real name, “Camber Master Trust.” This security didn’t include student-loan securities, according to its offering document. Currently, investors can sell these types of securities only at a steep discount, if at all.
http://online.wsj.com/article/SB121746841444299461.html?mod=yahoo_hs&ru=yahoo
If your downsizing trucks should look into some of the mid 2000 Toyota Highlander 4 cyclinders. Some of those get close to 30 hwy. I thought about it as an alternative to a minivan.
Grim,
Did you see this?
http://money.cnn.com/galleries/2008/autos/0807/gallery.kbb_used_suvs/index.html
Most of your customers will appreciate a new bmw than the pf. so it’s justified have a fun ride.
#268 grim Says:
July 31st, 2008 at 2:12 pm
Don’t forget about cars. Been driving around today in a new BMW 530xi (loaner).
comrades:
(Iam sure that caught homeland security and jamil’s attention!)
When researching comps in order to make a bid on home, I use homegain.com. It is my understanding that realtor’s do not use foreclosure’s in order to determine comps on the property (After, REO’s “don’t count”/sarcasm off”). Does anyone know where I can find REO sales information in order to include that in my comps when I lowball? Thanks in advance.
WaMu, Sovereign get British hedge fund investment
http://www.reuters.com/article/marketsNews/idINN3134160520080731?rpc=44
tosh,
Funny you mention that. I was about an hour short on picking up a 2002tii last month. Was about 15 minutes from his house to look at it when he called me to tell me it was sold.
It’s getting harder and harder to find them in good condition.
My first car was a 1982 BMW 320i I got for $200. I’ve been scrutinizing craigslist for a 320is, as they were suprising the most fuel efficient car BMW ever imported, and it brings back fond memories of my first car and the adventures that followed…
And yes, the CRX appears to be a good deal, especially if the owner could be bargained down to $2000 or so. Would make a nice commuter/autox car.
Sean (180)-
Exactly. Whatever the quality of the debt in the CDOs, the Lone Star deal is essentially an Enron-style giant je#K-off.
Stu,
No, I didn’t see that, but since I was trading truck for truck, I don’t think I took too much of a hit. Dealer actually gave me a fair amount for my trade, was surprised since most other of the local dealers were lowballing me.
169#,
why don’t u post ur pics here?
>besides, we all know democrats are so much cooler (and better looking) than the republicans
I have a question:
Is there a way to see how many properties a particular agent has sold in the past x months?
Clot,
Comparing MER’s deal to Enron’s deals is a big leap. Enron was shadier. I give credit to what MER is doing here, though some may think differently.
Same reason we traded in the old Altima for the Xterra. We needed new tires and the Blue Book value was $6,000. Was offered almost $7,000 on the trade and the new mongo horsepowered Xterra’s had been out a year so the old slow ones needed to be moved. Was also given $1,000 cash back, 0.5% financing and the sport model for less than the sticker price of the standard. Of course the larger tires and rims really are not helping much with the gas mileage, but I can see over almost everything on the road ;)
I also negotiated the 4 year warranty into an 8 for $750. If Lisa was willing to go with an orange or yellow one, it could have gone for another K or 2 off list.
Something about using the word ‘cheap’ that makes people cringe, like scratching black board. Nothing’s worse than being labeled a cheap person in America. ‘Millionaire Next Door’ calls it ‘frugal’ to sound less offensive. We wouldnt be in this glutonous housing mess if we were more cheap.
MIT develops way to bank solar energy at home
http://www.reuters.com/article/environmentNews/idUSN3145191020080731
” A U.S. scientist has developed a new way of powering fuel cells that could make it practical for home owners to store solar energy and produce electricity to run lights and appliances at night.
A new catalyst produces the oxygen and hydrogen that fuel cells use to generate electricity, while using far less energy than current methods.”
Thru Jan, 2009? I guess the fed has no faith in the IB’s ninth inning closer. Fragile circumstances?
“Extension of the PDCF and TSLF
In light of continued fragile circumstances in financial markets, the Board has extended the PDCF through January 30, 2009, and the Board and the Federal Open Market Committee (FOMC) have extended the TSLF through that same date”
http://www.federalreserve.gov/newsevents/press/monetary/20080730a.htm
stu 282,
i believe you meant this
http://tinyurl.com/5573hl
Jone is even not in top 10 list today:
34 njpatient
28 Stu
22 grim
18 Tom
16 Hard Place
15 Sybarite101
12 make money
11 PGC
11 kettle1
10 SG
#82 Grim
Calculated risk have some links to local news reports on the Northern Ireland housing market. http://calculatedrisk.blogspot.com/2008/06/northern-ireland-bursting-bubble.html
The market shot up like a rocket and the firework has just gone off.
Here is a quote from 2006/2007
“With a massive 57.6 per cent annual increase, the average house in Northern Ireland now fetches £203,815. Putting the rate of growth into perspective, Northern Ireland’s quarterly inflation was 14.6 per cent, which is more than prices have increased in London over the last 12 months.”
The 2007/2008 number was 37%. The bubble has just burst and the fall out is looking ugly.
Okay since we’ve had a lot of OT talk today. I just looked and saw the Packs offer Farve $20mm not to play. Come again? I don’t see the strategy in that one. Just deal him to another team, like the NJ Jets!
I would take the 20 million!
pgc,
Thanks, I’ll have to watch those later when I’m on a real broadband connection.
In slightly related news; Princess Chunky’s owner has been found. Apparently the owner lost their home to foreclosure and turned the pudgy cat out on the street.
She (he) is up for adoption on Sun.
On CNBC now:
Greenspan: Nowhere near the bottom for U.S. housing prices
Agree. What’s Thain do is in essence, is taking the loss by going the de-leverage path, as prescribed by his fed friends. The question is whether we still have enough liquidity in the system to de-leverage all IBs to safe plateau. I really double it so going Japanese is the only way out. Thain may get the credit saving private ML don’t get me wrong. In Enron case, it’s a big leap to the abuse of SPE by intentionally committing accounting fraud (criminal intent) - all disclaimer.
#305 Hard Place Says:
July 31st, 2008 at 2:49 pm
Clot,
Comparing MER’s deal to Enron’s deals is a big leap. Enron was shadier. I give credit to what MER is doing here, though some may think differently.
WaMu is still TOAST, even with JAM.
Greenspan: Nowhere near the bottom for U.S. housing prices
Doesn’t sound like frothy bubblettes to me.
Paulson said there was a clear need to strengthen government sponsored mortgage giants Fannie Mae and Freddie Mac’s ability to provide liquidity to the home financing market by giving them temporary government backstops.
Now that Congress has created a stronger regulator for the GSEs, he said, “all parties must get to work immediately to address the systemic risk issues posed by the GSEs.
No shame in his game. He’s like a pimp.
Clot,
From your experience in dealing with short sales, do you find that most people in this situation take responsibility for their predicament? Do they admit they overpaid, took on more than they could affords to pay or wrongly bet on continued rising prices?
Or, do they tend to blame others; the media, RE agents, mortgage brokers, etc. Do they tend to think that they got screwed, it’s not their fault and a short sale or walking away is fair and just and their right under the circumstances for being treated so poorly.
Renting
a short sale or walking away is fair and just and their right
it is under the usual mortgage contract
“Andersch said the shelter has received hundreds of calls about the cat and at least 20 formal applications to adopt Powder.”
Four of those applications were from weight-loss supplement suppliers; Fucoxanthin, Hoodia, Guarana, Ephedra.
Six of those applications were from cat huffing enthusiast.
http://uncyclopedia.org/wiki/Kitten_huffing
(You have to scroll down for the funny)
The remaining 10 were from people who wanted to dine on this rare treat.
http://www.messybeast.com/eat-cats.htm
Grim,
Somehow my post got stuck in moderation…
(188) Kettle1
#3 - Ethics is concerned with how a moral person “should” behave. In that way, it is more universal than morality.
The virtues I find lacking in society today are those of character: trustwortiness, respect, responsibility, fairness, caring and citizenship.
I do not mean to come off as acting “holier than thou”..I am merely pointing out that I am responsible for teaching these virtues on a daily basis…it would help - tremendously - if some of them were displayed by our government officials and pillars of industry.
jamil, being so paranoid, ever worry that those illegals are not only screwin’ the tax payer but your wife too while you are posting stuff about’em in the internet?
HC
232: jamil Says:
July 31st, 2008 at 1:34 pm
217: “Dude, you should be happy they’re paying taxes in the first place.”
Actually, they are not. For example, an illegal alien can get a check from the goverment under EITC scheme even if he didn’t pay any taxes.
There are also many other similar cash back scam which are widely popular among illegals.
Jingle Mail Morals:
The fact of the matter is that your neighbors are 100% not accountable to you. Arguing about what they should do is a pointless exercise bordering on whining.
Congress and Industry are (supposed to be) accountable to you. It is their job not to give people a long enough rope to hang themselves with and destroy the economy that you have not choice but to participate in.
Usury laws have been a part of human existance for thousands of years. Notice that Jesus could care less about w h o r e s and drug users but went toe to toe with the money changers.
cindy,
you do not come across wrong at all. I agree with you. for #3, i was saying that some people use the terms morals and ethics interchangeably, although that is incorrect as you point out.
To have a debate though you need to use the definition and in the previous debate we seemed to be using different definitnions. You seemed to be using #1 while tom and I were using # 2.
It might be more productive to couch the debate in terms of integrity. The act of walking away from the house could be both ethical and moral but still lack integrity.
Walking aware form the house could be morally acceptable while still be unethical. but once again, that could be a complex debate
Aaron,
well w h o r e s and drug users are the true capitalists in any society while the money lenders tend to the root of most problems. SO i can see why JC chose that stance. perhaps we should adopt that stance now! Hook ers and blow for all! Hang the Bankers!
He have a John sighting!!!!!!!!!!!!!!!!
http://www.nypost.com/seven/07312008/news/regionalnews/voodoo_rapist_122424.htm
Renting
a short sale or walking away is fair and just and their right
it is under the usual mortgage contract
True. But it was a right reluctantly exercised as a last resort under extremely adverse conditions. Rightly or wrongly, it was typically accompanied some level of shame and a feeling of failure.
Does this still exist or do people feel they are fully justified in walking away after than have been “so unjustly” wronged?
#334
ChiFi, that looks like the guy that killed Patrick Swayze in Ghost.
Stu and Tom:
For crabgrass control: apply CORN GLUTEN every spring when the forsythia bloom. Can reapply late summer (I never have)
After 3 years of applying corn gluten I now have one of the best lawns around and we are the only ones not to have a lawn care service.
We also mulch mow, overseed now and then (when the mood hits once a year), and have never aerated. When there is an obnoxious large weed I may pluck the weed with a knife.
We are into a low, low maintenance and non-toxic lawn and this definitely is the way to go.
We don’t do additional fertilizing because corn gluten acts as a fertilizer, and mulch mowing adds nitrogen back into the soil.
Doyle,
Heading to 13A.
Toscafund says it owns 6% of largest US thrift; also has stake in Sovereign
SAN FRANCISCO (MarketWatch) - Washington Mutual shares surged 16% on Thursday after financial-services hedge fund Toscafund Asset Management LLP disclosed a 6% stake in the nation’s largest thrift.
Tosca, a $7 billion hedge fund firm run by former Tiger Management trader Martin Hughes, owns more than 105 million WaMu (WM) shares, according to a filing with the Securities and Exchange Commission.
The shares weren’t bought to try to influence or change the management of WaMu, Hughes said in the filing.
WaMu shares jumped 16% to $5.52 during afternoon trading on Thursday.
Toscafund also disclosed a 5.1% stake in Sovereign Bancorp (SOV) on Thursday. Sovereign shares advanced less than 1% to $9.68.
Re 334 I love the voodoo that you do.
John
Do you feel like a superstar?
Congress will leagalize pot when people are grabbing ropes and pitchforks.
I bought sov and wisdom tree in the last few days solely on the fact they were rising for no good reason even on down days. NICE. Stupid but Nice.
Whenever you see forclosures the lawn is always un-mowed, why?
My neighbor was forclosed on and the property went vacant for about 9 months.
I went around the the surrounding neighbors and said “hey, just because this guy got forclosed on doesn’t mean he has to drag our property values down, I’m mowing his yard you can help out if you want”
Between the three of us surrounding him we took turns mowing his grass so that it wasn’t an eyesore and I only had to do it once every 6 weeks or so.
I know you guys are against footing the bill for those people who profited/lost from housing in the last few years but it might be time for you to show some solidarity and start mowing your neighbors yard to protect your assets.
His house eventually sold and I’m hoping I did my part to help preserve some of my house value.
Only when I VOGUE
Sybarite101 X Says:
July 31st, 2008 at 3:56 pm
John
Do you feel like a superstar?
BC,
Nice! Position yourself right near an easy exit point, sit back and enjoy… you’ll have a great night.
344
I don’t know, I kind of like the wild savannah look, it’s exotic.
j/k
(332) Kettle1
If I had the intellectual ability to debate issues of integrity and ethics with the likes of you and others here, I would not be a 2nd grade school teacher earning $60,000 a year after 25 years of teaching.
I’m just not one to give in and say “I’m doomed.” I’m only looking for plausible answers from highly intelligent people as to how we get out of this mess.
I have started back to work in the classroom a few hours each day and will start up again in two weeks - I’ll be out of your hair soon…
‘drug users as true capitalists’ i’m lost please educate. I have no problem with ‘whores’ though, as they obviously just provided a valuable service to one of my governors…
#333 kettle1 Says:
July 31st, 2008 at 3:48 pm
Aaron,
well w h o r e s and drug users are the true capitalists in any society while the money lenders tend to the root of most problems.
I read ‘Lord Jim’ in HS and I think the guy was an idiot.
I went around the the surrounding neighbors and said “hey, just because this guy got forclosed on doesn’t mean he has to drag our property values down, I’m mowing his yard you can help out if you want”
If I were to mow the lawn of a foreclosed home, I would want to know which bank offered the mortgage. Then I would deposit the grass clippings in front of their local branch.
Gov Schwarzenegger just added allot of people to the unemployment rolls.
http://news.yahoo.com/s/ap/20080731/ap_on_re_us/california_budget
Doyle,
Also going to Foxboro on Sat.
Cindy,
You are certainly not out of your league here. we all have our little niche of knowledge but there are no omnipotenets here.
I honestly couldnt have a real debate on ethics and morals as it has been entirely to long since i actually had to study “academic ethics/morals”.
We enjoy having you around , so please stick around, you cheer the place up a bit after i come storming around with my doom and gloom.
I also dont think there are many people here who go the (i’m doomed) route, even me! although i may be bit of a masochist
by all, off to a wedding in the finger lakes! dont get to cheery without me around!
kettle [355],
Make sure you give paper coupons for a gift, hold onto that shiny metal.
Greenspan Says Housing Prices Not Yet Near Bottom (Update1)
By Steve Matthews
July 31 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan said falling U.S. home prices are “nowhere near the bottom” and the resulting market turmoil isn’t showing signs of abating.
While the odds of a recession are 50-50, achieving stable markets will “take a while,” Greenspan said today in a CNBC interview.
The economy grew at a 1.9 percent annualized rate in the second quarter after expanding 0.9 percent in the first quarter, the Commerce Department said in Washington. Gross domestic product was revised to show a contraction in the final three months of 2007.
BC - Let us know if you get the full deal - Twist and Shout at the end..
Sing it Jamil!
http://news.yahoo.com/s/ap/20080731/ap_en_mu/mccain_song
BC, what would be your % chance of another round of stimulus checks?
50%?
Laughing[359],
100%
Laughing,
50% chance for a round 3.
Do you get to retire after 25 years or something? You should have cashed out at 29yo, just kidding. I used to date a teacher but when I ate peanutbutter she made me stand in the hall and I had to raise my hand when I went to the bathroom, that plus she was off all summer while I was working made me jealous. She still was better than the emergency room nurse who on valentines day told me she just had her hand in a bums HIV + chest grossed me out but the worst was I dated a chemist from kellog who came up with the nasty chemicals I can’t pronounce on the box, damm that chick was freeky she must have inhalled the meds at Kellogs. Now I know why I don’t let my wife work, she has one less thing to complain about.
Cindy Says:
July 31st, 2008 at 4:06 pm
(332) Kettle1
If I had the intellectual ability to debate issues of integrity and ethics with the likes of you and others here, I would not be a 2nd grade school teacher earning $60,000 a year after 25 years of teaching.
I’m just not one to give in and say “I’m doomed.” I’m only looking for plausible answers from highly intelligent people as to how we get out of this mess.
I have started back to work in the classroom a few hours each day and will start up again in two weeks - I’ll be out of your hair soon…
BC,
Would that be the Methadone maintenance model of fiscal policy?
Cindy,Tom & Kettle,
Don’t forget -legal- some people judge moral and ethical by the fact that it is legal. Legal does’nt make moral or ethical, and illegal does’nt make immoral or illethical.
KL
Hope that was’nt stated already , I just could’nt make it thru all these posts.
I am on wisdom tree call right now and I am still enjoying the fun.
Enjoy it BC, great little weekend you got there.
http://www.lohud.com/apps/pbcs.dll/article?AID=2008807290404
John,
Is this one of your funny stories?
(249)-
I want John to be Pope.
Just think: stripper poles in the Vatican!
Good times.
(362) John - “Do you get to retire after 25 years?” No, unfortunately, I have half of my years in Oregon, half in CA. I’m looking at at least 2012. Don’t misunderstand John, I actually love what I do…
(364) Hi Rhyming…”Legal doesn’t make moral or ethical..”
No, actually that hasn’t been stated clearly. Ethics is a branch of philosophy so I can’t even imagine all of the ins and outs. What is going on today, I have had explained to me, is legal. Ethical?….that’s where everything went haywire. Several here have basically said “It’s none of my business!”
rent (325)-
The reactions cover a gamut of emotions and behaviors. In general, those who pursue a short sale have come to terms with their own misjudgments much better than those who pull a jingle mail or simply abandon homes and allow the foreclosure.
Cindy, according to my humble observation, the correlation coefficient between ethics and paycheck is closely to -1. So don’t be discouraged by any fat cats.
disclaimer - the above statistical observation does not apply to mr & mrs. slumlord and /or his friends in this board.
#348 Cindy Says:
July 31st, 2008 at 4:06 pm
(332) Kettle1
If I had the intellectual ability to debate issues of integrity and ethics with the likes of you and others here, I would not be a 2nd grade school teacher earning $60,000 a year after 25 years of teaching.
Cindy (329)-
“I am merely pointing out that I am responsible for teaching these virtues on a daily basis…it would help - tremendously - if some of them were displayed by our government officials and pillars of industry.”
Cindy, this is precisely why all your efforts in this area will fail. In fact, these virtues have largely disappeared from the population in general (as we are about to discover).
Messrs Jefferson, Franklin, Paine, Washington, et al understood when circumstances dictated that the only remedy left was a good blood-letting. We are at that point again.
Please wake me when it’s time to march.
Ok, for all the survivalists, here’s one for your library:
http://www.nytimes.com/2008/07/31/garden/31disaster.html?pagewanted=1&_r=2
I know tithing does not apply to catholics thank god and we can eat ham, other than that I am unsure but glad I don’t have to wear black suits and a hat in august. Oh year in NT the gate of heaven is open in OT they are still close.
njpatient Says:
July 31st, 2008 at 2:02 pm
254 john
Please explain how you determine which prohibitions in the Old Testament apply to Catholics and which do not, given that you moments previously were citing the Old Testament as dispositive of Catholic morality
Actually I am eligible to be Pope. Look it up you do not have to be a priest to be a pope just a male catholic in good standing.
Clotpoll Says:
July 31st, 2008 at 4:44 pm
(249)-
I want John to be Pope.
Just think: stripper poles in the Vatican!
Good times.
Nick (344)-
I wish more people shared your common sense.
You wouldn’t believe how many homeowners cannot grasp the following simple concepts:
1. The listing agent does not own the pre-foreclosure house.
2. The bank does not own the pre-foreclosure house.
3. The town will not cut the grass on the pre-foreclosure house.
4. Repeated whining phone calls to anyone other than the owner of the pre-foreclosure house result in no action.
(372) Clot
The first question you asked me Clot - Umpteen months ago was reguading munitions.
So you knew way back then….
I’m about to start up a new school year and I will continue to teach those virtues. These kids will need them…for after the revolution…
(371) NJL$rd - “So don’t be discouraged by any fat cats.”
Oh, don’t worry - I’m rarely discouraged. I’m slow to pick up on things, and slow at the computer etc. but I don’t give up.
John (362)-
We are not worthy.
348 cindy
“I’ll be out of your hair soon…”
Don’t say that! You’d better not up and disappear. Do keep teaching those chillun the ethics, and throw in some logic here and there as well.
life is good:
http://www.marketwatch.com/News/Story/Story.aspx?column=Futures+Movers
(375) John
“Actually, I am eligible to be Pope.”
Oh My G@D!
Cindy (377)-
First, you should teach them how to break down an M-16, assemble roadside bombs and how to stage hit-run guerrilla attacks.
374…Dood. I have eaten more ham than you have had hot showers.
And I’m a Heeb. Just not really very adherent to anyone’s rules. And from the South.
Wow. Maybe they should hold a lottery to determine the next Pope. They’d sell a helluva lot of tickets.
Pope John Pompous the Second.
Okay - You guys are cracking me up again.
“Pope John Pompous the Second…”
“First you have to teach them how to break down an M16…”
(380) nj - I’ll keep teachin um…
bi (381)-
Yeah. Next stop, $40.
bi,
Please do alert us when you put on a short position.
352]
whew. Minimum wage for state employees! Is that better than unemployment insurance?
NJI$
You said:
‘drug users as true capitalists’ i’m lost please educate.
Read the novel, “Clockers”
‘The touch of bi’ - everything turns to dust.
381 bi
“life is good:”
Ever closer to $40.
rebar (392)-
I prefer the term, “Costanza Theory”.
oops
forgot to fix the handle.
Ich bein John.
(390) nj - minimum wage - $6.55 hour
There is a big sign outside of the soon-to-open In and Out Burger a few streets over -
“Now Hiring - $10.00 hour”
389#, bob, buy signal is created:
http://www.gallup.com/tag/Gallup%2bDaily.aspx
John,
It seems like you’ve been trying to out-John yourself lately.
Competing with your own legend - that’s tough :)
I really miss all the fun when I leave for the day.
Cindy 370
Several here have basically said “It’s none of my business!”
The way you word it makes it sound like a cop-out.
Not worrying about things you can’t control is a strategy to keep ones sanity; other people’s financial choices is one of those things.
got caught in that 16W traffic.
damn!
SAS
“Richard Viguerie: Bush White House Hides True Scope of Federal Deficit”
http://tinyurl.com/5pw45j
713-725 JEFFERSON ST Hoboken mls#80002673
Sold on 09/15/06 for 451000
sold for $429,000 this week
A loss after 18 months on the Gold coast…….
It cant be.
More Info 04/26/06 sold for $480000
Hudson Tea Building 1300 Hudson
7/25/2008 $491,500
factoring in costs, its a loss
hudson MLS# 80002596
“A loss after 18 months on the Gold coast”
The Gold Coast has lost its glitter.
;)
SAS
This one is Maxwell Place 1025, Hoboken
Sale Date: 03/29/07 Price: $704000
Closing Date 7/23/2008 $685,000
Hudson mls 80005906.
Greenspan says the current crisis happens once every century. It sounds like Greenspan has been living for the past 1000 years and he has witnessed this event every time every century.
Translation “I don’t know what the f$$k is happening, and I don’t know how to solve it. This crisis is messed up all because of me”
(401) Aaron
“The way you word it makes it sound like a cop-out.”
I said “Several here have basically said, “It’s none of my business.”
You originally posted @331 “The fact of the matter is that your neighbors are 100% not accountable to you. Arguing about what they should do is a pointless exercise bordering on whining.”
Isn’t that telling me to “mind my own business?”
If not, I’m sorry I misunderstood you.
“Now that Congress has created a stronger regulator for the GSEs, he said, “all parties must get to work immediately to address the systemic risk issues posed by the GSEs.”
What bothers me is they were always supposed to be heavily regulated. That was the price they paid for being Government Sponsored.
We’re just creating more waste with a new agency. The Office of Federal Housing Enterprise Oversight was asleep at the wheel. If we’re going to create a new agency, fire the old.
MS,
Corn glutten helps a lot, I’ll be applying that in the spring. How many lbs/1000 sq ft do you apply?
I’m going with the organic lawn care program I mentioned in my blog because I want to do more feedings. The results I’ve seen with elite grasses and good fertilizing have been amazing. Here’s a good side by side comparison photo. The guy on the left killed his existing lawn and reseeded with the Galaxy blend and uses mostly an organic program with a lot of feedings. In addition to the organic he uses urea which some people consider iffy. The lawn on the right was plain Scott’s KBG. A lot of the color is in the variety of grass but adding nitrogen a couple of times a year helps keep the color greener longer.
Tom - isn’t nitrogen the purpose of the urrea? (Don’t confuse me with someone who knows what he’s talking about).
pardon my extra r. I was distracted by your glutten.
Tom:
Do NOT, I repeat DO NOT , apply any fertilizer in addition to the corn gluten. Because after you apply corn gluten in the spring and then the corn gluten breaks down, the grass starts to grow and grow and grow. No additonal fertilizer is needed. Not to worry - your lawn will be greener than everyone else’s.
And every year the lawn will look better and better (it’s a cumulative effect). However, some people apply again in August, because in August some more weeds start showing up.
We don’t remember how big our lawn area is - at least 7000 sq. feet (we have almost 1/2 an acre), and we always apply 5 bags of corn gluten in early spring (in a checkerboard pattern - first do the lawn all in one direction and then go over it in another direction with a regular spreader). I think the bags are about 40 pounds each. Old Hook Farm in Westwood, NJ is where we buy ours (about $45 a bag?).
Good luck!
make - where’d you get 185 from? I assume there’s a link?
That’s scary, scary stuff
njpatient,
From what I understand, urea only provides nitrogen which helps green up the lawn. It is more along the lines of a quick sugar boost. The other fertilizers also provide other important nutrients such as phosphorous and potassium. The corn glutten meal provides a little phosphorous too. The combination fish meal, bone meal, feather meal, etc treatment provides a good mix of all three N,P and K. Those are what the numbers on synthetic fertilizers represent.
In addition there are treatments that include bacteria, fungi as well as other elements that promote good turf growth.
I’m still getting my head around the organics but the basics is that you’re feeding the soil and the microorganisms in the soil that will decompose the materials you use to fertilize which in turns feeds the grass.
I’m not an expert but I’ve learned enough to understand that the program I subscribed to should help the lawn in a number of different aspects on top of the changes in mowing and watering I’ve made.
I’m going to be posting the progress with some pics as I go along. I have the before pics which are mainly of trouble areas so I’m waiting till I get some better after pics.
“I’m going to be posting the progress with some pics as I go along. ”
Looking forward to it.
njpatient,
Forgot to add…
“pardon my extra r. I was distracted by your glutten.”
Mrs. Patient might be troubled to hear that. :) I need to start proofreading before I post.
Organic Lawns for America also has a 4 step organic fertilizer program that is a little cheaper. It just skips the weed treatment and the liquid aeration.
I know I could have answered your question with a simple “yes” but I thought this might be what you were getting at.
Based on this, doesn’t that mean a) the value of the dollar will fall further, and b) we should load up on tat speculative wretch known as gold?
obviously ‘disclaimers’
OT
So who might actually be going to the gtg?
sas (406)-
Looks like the Gold Coast has just become the Rust Coast.
lost (419)-
The family is off to Vermont until Tuesday (I just hope they don’t come back soci@lists). Therefore, I plan to hit the GTG.
Full hooligan mode.
Wanna hit The Vault for a nightcap (or, nightchoke)?
Yay Clot!
Can’t do the Vault. I don’t want to change clothes and I have nothing that will work in both places.
PVC is always appropriate.
Clot
I am over all the pvc. I’ve sold it all off.
A tiny part of me just died. :)
Awwww Clot.
Perhaps a new interest in latex?
Don’t toy with me. I’m fragile right now. :)
another reason to own a gun.
if I was on this bus, I would of pulled out the ol’ Colt 45, hit center mass, one shot…one kill, as not to waste bullets, and go back to eating my ham & swiss.
“Man decapitated on Canadian bus”
http://news.bbc.co.uk/2/hi/americas/7535840.stm
SAS
Back to RE. Today’s latest, from Mike Morgan. As usual, he nails it:
“Let me give you the three things that happened today which guarantee a market collapse that will renew itself over the next few days:
1 – Jim Cramer called the Absolute Bottom and he pulled out the Bear Slicer.
2 – British Hedge Fund Increases Stake in Washington Mutual – that’s truly bad money chasing already dead money. And it was interesting that this was initially announced as an investment, when it was nothing more than adding to their mistake, which triggered a regulatory announcement.
3 – Alan Greenspan is back on TV today telling finally admitting the truth. He has finally flip-flopped and now he says it is not a liquidity problem. I’ve said that for two years now . . . it is a solvency problem. He stated we are nowhere near the bottom in housing, but then he started talking GobilyGook. It was truly a pukable performance.
Sell the kids and short the market. We will be below 9000 before we ever see 12000 again. After hearing Greenspan’s opening comments, I can’t understand why the market is not down 500 points. He summed it up perfectly . . . this is a Solvency Problem.”
http://tinyurl.com/6mee8q
God Bless the Second Amendment!
SAS
sas (429)-
Funny that they haven’t given the attacker’s name. Could it be Arabic?
Just asking.
The job market is still hot,
especially in mortgage backed securities.
“Were you recently laid off? Don’t despair. There is probably a hedge fund out there who wants to hire you. Oddly enough, the strongest demand is for people with experience in structure credit products, especially mortgage backed securities, according to David Ellis at CNNMoney.”
http://dealbreaker.com/2008/07/where_the_jobs_are_structured.php#comments
“Could it be Arabic?”
I doubt it, because if it was the media would of blast it all over as to propagate the so called “war on terror”.
if I had to call it, I would say it was some loco on serotonin reuptake inhibitors.
serotonin reuptake inhibitors due cause these types on tendacies. I think one is better of with the bottle than serotonin reuptake inhibitors.
SAS
never did understand how you declare a war on a tactic?
i.e war on terror
SAS
432 clot:
“Funny that they haven’t given the attacker’s name. Could it be Arabic?”
I bet the attacker was Amish.
btw-
some of you women out there in the blogosphere should really consider firearms training.
at a minimum carry a mace or learn some hand to hand combat.
cause I will you right now, 911 is joke.
I know they might mean well, but they by the time they show.. its damn too late.
I taught all my daughter hand to hand combats from the my days in the service.
I wouldn’t mess with them in the ring;)
SAS
“cause I will you right now, 911 is joke.”
I mean… 911 is a joke.
SAS
sas
You don’t strike me as a Public Enemy fan.
“You don’t strike me as a Public Enemy fan.”
What the f*ck is a public enema!?!
(lost - know the reference?)
436 sas
too right. WTF, next we’re going to declare war on the West Coast Offense?
434 frank
“The job market is still hot,
especially in mortgage backed securities.”
Really? Then why did Cadwalader lay off 96 on Wall Street yesterday, all working in RE and structured finance?
“You don’t strike me as a Public Enemy fan”
hugh? this must be an inside joke from the last gtg?
SAS
missed another pvc discussion!
Blast!!
sas
“911 is a joke” - you inadvertently quoted a Public Enemy song
oh I see.. I googled Public Enemy.
nope, don’t know their tracks.
but, I do see the name of the 911 song.
so, we must be on the same page.
god help me if I am on the same page as a brother with fake gold teeth that wears a clock around his neck.
who let out the freak show? they doing a casting calling for Grease?
lol:)
I’m a funny bloke!
SAS
No Patient I don’t get that reference. I am also too tired to think right now. So please forgive me.
sas
Do a search on Public Enemy and 911 is a joke.
911 is a joke is off bi’s favorite album:
Fear of a Black Planet
sas
You mean you missed his shows- Flavor of Love? What a train wreck that was.
Patient
You snooze you lose. No you’re probably working aren’t you?
Lost - the reference was to the Kid & Play movie “House Party” (which you should see, if you haven’t) - there’s a scene where Public Enemy is being played really loud, and the cranky guy next door (probably john) yells over to the gang “hey, you kids turn down that music! WTF is a Public Enema anyway?”
Ok I’m off to snooze. Have a good night all.
“No you’re probably working aren’t you?”
I was. Should’ve taken a break earlier. Next time.
Patient
I’ve seen that movie more then once, many many years ago. I don’t remember that at all.
I retired from hip hop long ago. :(
I quit rap/hip hop circa 1989, so Public Enemy is still “recent”, as far as I’m concerned.
I actually somewhat agree with the brothers/blokes about 911. But,I don’t think intent is malicious as the lyrics of the song lay it out.
To me its just not an optimal & 100% reliable when you need it the most, or if someone women is about to get assulted.
All I know, is if there is a cared for firearm in the home (or in an instant acess pistol safe) you can save a life or prevent a crime over any 911 service anyday..
but, I was attracted to these lyrics:
“Thinkin’ you are first when you really are tenth
You better wake up and smell the real flavor
Cause 911 is a fake life saver”
yeah man.. that was a pretty smooth line.
SAS
yup me too.
night blokes!
SAS
well, now that I’ve lost my sas, I’m off to the grind.
njp,
C’mon, you aren’t still in the office, are you?
jamil (437)-
Has anyone here ever mentioned that you suck?
Frank (434),
And I suppose for you to believe that the housing market is no longer “hot”, NO homes would be sold at all?
From the article:
However, most of the workers that land on their feet tend to be those with some significant experience or expertise.
Within that group are senior and mid-level bankers who may boast numerous business relationships.
If less people are employed than hired the job market isn’t “hot”.
Once again, people will continue to be hired to fill needs but that doesn’t mean the job market is “hot”.
You should be able to understand this one, it isn’t as complicated as inflation.
Kettle 233 Thanks, I will have to check on legal aspects.
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