From the AP:
S&P: Home values post 18.2 pct annual drop in Nov.
A closely watched index shows home prices dropped by the sharpest annual rate on record in November.
The Standard & Poor’s/Case-Shiller 20-city housing index released Tuesday tumbled by a record 18.2 percent from November 2007, the largest decline since its inception in 2000. The 10-city index dropped 19.1 percent, tied with October for the biggest drop in its 21-year history.
Both indices have recorded year-over-year declines for 23 straight months. Prices are at levels not seen since February 2004.
Prices in the 20-city index have plummeted 25.1 percent from their peak in July 2006. The 10-city index has fallen 26.6 percent since its peak in June 2006.
All 20 cities recorded year-over-year declines in November.
From Bloomberg:
November Home Prices in 20 U.S. Cities Fall 18.2% From Year Ago
Home prices in 20 U.S. cities declined 18.2 percent in November from a year earlier, the fastest drop on record, as foreclosures climbed and sales sank.
The decrease in the S&P/Case-Shiller index was in line with forecasts and followed an 18.1 percent drop in October. The gauge has fallen started falling in January 2007, and year-over-year records began in 2001.
Record foreclosures have contributed to more than $1 trillion in losses worldwide that have prompted banks to shut off access to credit. While plunging values have made homes more affordable, they have also hurt household wealth, contributing to a slump in spending that’s likely to continue for the first half of the year.
“The decline has accelerated over the past few months due to the increase in deeply discounted foreclosure sales,” Michelle Meyer, an economist at Barclays Capital Inc. in New York, said before the report. “The decline in the housing market worsened markedly at the end of last year.”
Economists forecast the 20-city index would fall 18.4 percent from a year earlier, according to the median of 27 estimates in a Bloomberg News survey. Projections ranged from declines of 17.4 percent to 20 percent.
…
“The freefall in residential real estate continued through November,” David Blitzer, chairman of the index committee at S&P, said in a statement. “Overall, more than half of the metro areas had record annual declines.”
…
The 20-city index is down 25 percent from its 2006 peak. Eleven of the 20 metropolitan areas showed record declines in the year ended in November, and eight showed the biggest month-to- month decrease on record.
From CNBC:
Home Prices Plunge Record 18 Percent in November
Prices of single-family homes plunged a record 18.2 percent in November from a year earlier, indicative of a housing market that is still in the throes of a deep recession, according to the Standard & Poor’s/Case-Shiller Home Price Indices.
The composite index of 20 metropolitan areas fell 2.2 percent in November from October, S&P said in a statement on Tuesday. The depreciation on a month-over-month basis was slightly worse than expectations based on a Reuters survey of economists.
…
S&P said its composite index of 10 metropolitan areas fell 2.2 percent in November from October for a 19.1 percent year-over-year drop, matching the previous month’s record drop.“The freefall in residential real estate continued through November 2008,” David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s, said in a statement.
First, or maybe second?
2nd
I notice a lot of homes for sale in Pa have the notice seller is a PA realtor. Asking proces on rehabs double what they paid. How many realtors were in this market flipping?
Get ready for those post-Superbowl sales.
Jan. 27 (Bloomberg) — Corning Inc., the biggest maker of glass for flat-panel televisions, will eliminate about 3,500 jobs this year after fourth-quarter profit plunged 65 percent on slowing demand for TVs and computer monitors.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ax77DF3VrdF8&refer=home
btw- these home price declines have not been seen in the NJ markets that I monitor. towns like Milltown, Bridgewater, Whitehouse, Basking Ridge… no noticeable declines at all. sellers seem as oblivious as ever. though i do believe this spring selling season will change that… maybe i shouldn’t be focusing so much on listing price…
I have 2 questions for the board:
I am eligible for a pension plan lump sum distribution from my previous employer. As far as I see it, my options are the following:
1. Take the cash directly, and take a beating on taxes
2. Roll it over to my 401k account (Hewitt Associates) at my current employer
3. Roll it over to my 401k account (Fidelity) with my former employer
4. Open up a new IRA with my brokerage (Schwab)
5. Other??
I’m leaning towards #4, if only because I will have ease of access and full control of the account. Otherwise, I’ll go with #2. Any other suggestions, or anything to watch out for?
-What is the most common compensation structure for Financial Planners? I would like to establish a relationship, but don’t know what to expect in that regard. Also, are the fees from a FP tax-deductible?
Randy,
You have to look harder. Prices in Montclair have definitely dropped close to 10% for sure. It is still not where it should be, but it is getting there.
NY Metro area home price declines are still accelerating. No bottom here yet.
S&P Case Shiller YOY Change
Jan 07 -0.79%
Feb 07 -0.85%
Mar 07 -1.20%
Apr 07 -1.84%
May 07 -2.46%
Jun 07 -2.68%
Jul 07 -2.79%
Aug 07 -3.23%
Sep 07 -3.69%
Oct 07 -4.07%
Nov 07 -4.41%
Dec 07 -5.03%
Jan 08 -5.68%
Feb 08 -6.64%
Mar 08 -7.14%
Apr 08 -7.50%
May 08 -7.29%
Jun 08 -6.54%
Jul 08 -6.50%
Aug 08 -6.24%
Sep 08 -6.75%
Oct 08 -7.13%
Nov 08 -7.56%
S&P CS NY Metro Area Commutable Prices are now down 13.45% from the June 2006 peak.
i remember reading somewhere that if you sell a place and have a gain, you don’t have to pay taxes on it if you buy a new place…
anyone remember the specifics of this law?
i’m thinking of selling my place, renting, then buying when/if prices become affordable…
do i have some time limit before i get my next place?
thanks
You don’t even have to buy a new place. You just had to live in the home you sold for 2 yrs as you primary residence
IRS pub selling your home
http://www.irs.gov/pub/irs-pdf/p523.pdf
thank you.
Will update the NJ home price tracker later in the day.
Grim u da man
It’s all baked in. CNBC said that these people getting laid off recently are the dead wood. Time for a quick turn around. It will back to normal by Memorial day!
The spring recovery is here!
Time to sky the markets. Send out the pump monkeys.
Sacasm off/
Sybarite, I got my financial knowledge in a box of Cap’n Crunch.
For more background, can you state if whether will be a forced transaction? If not, then how do your current options stack up to a similar basket in an IRA? Would you be able to duplicate any outstanding funds and fee breaks you might currently have?
What are your thoughts on converting the amount to a Roth? Have you been thinking about your recent losses, and whether you want to take advantage of the conversion opportunity? That might make timing a more important factor than you’ve state.
I know it’s difficult, because none of us can predict tax law changes during the years prior to retirement. But if you think the probability is high for increased taxation, then consider that Roth thingy.
There is also a rising storm of consumer anger. Expect changes to qualified plans with the intent of reducing risk (and the correlated reduction in expected returns, excluding recent events). We might even see some changes to the penalties.
if whether yikes
if this
Randy-
what are you looking at. I follow whitehouse, readington and hunterdon closely, and closing prices are down at least 20% from the peak. Take a look at will work for beer’s posts. Bridgewater’s declines have been even more pronounced . Those areas have been battered compared to north jersey.
A lot of tree triming going on. Right now it is good that companies are triming dead wood. But trimming becomes butchering pretty quick. My Mom worked at a company back in late 70s and between 79 and 82 there were lots of layoffs, first was easy, bottom 10% in ratings, dead wood, next came another ten percent made up of people now in the new bottom ten % and people who really did not need the jobs, part timers, students, people near retirement, housewives whose husband had a good job, then they came bac again for another round and took ou the entire bottom 50%. Well the last lay-off happend in 1982 and all that was left was people with above aveage review ratings who really need jobs, head of households, widows etc. That day they just came in and laid off every other worker and my Mom was at the right desk that day. Yea we are still chopping dead wood, but if we get a prolonged recession like 1979 to 1982 the cuts in year three are awful ugly.
From MarketWatch:
Consumer confidence at record low; income worries persist
Consumer confidence hit a record low in January, according to the monthly Conference Board index reported Tuesday, as worries worsened about future income. The January consumer confidence index fell to 37.7 from an upwardly revised 38.6 in December. Economists surveyed by MarketWatch had expected a January reading of 38. “It appears that consumers have begun the new year with the same degree of pessimism that they exhibited in the final months of 2008,” said Lynn Franco, director of the Conference Board’s Consumer Research Center. “Looking ahead, consumers remain quite pessimistic about the state of the economy and about their earnings.”
Hi Pat,
Thanks for chiming in.
It’s not a forced transaction per se, but I have to make an election within the next couple of months since it’s not guaranteed that I’ll always be eligible for a lump sum distribution. The way I look at it, I should take the money and run, lest they change their policy and I lose the ability to receive it.
As for the Roth, the letter from my previous employer explaining the tax implications specifically states that Roth IRA, SIMPLE IRA and Coverdell Education Accounts are not eligible to receive rollovers because they are not traditional IRA’s.
As for the fee breaks, that’s a good point that I should investigate. It may make more sense to roll it into my employer plan if indeed some of the fees are exempt.
“CNBC said that these people getting laid off recently are the dead wood”
Dennis Kneale actually said that these layoffs are good because all these people are the worst performers and will make these companies stronger.
Now, if we could only figure out who will the buy the products these companies are selling and we will have a bull market in no time.
Syb, once you convert your balance to a rollover/conduit IRA, then at that point you make your Roth conversion decision.
I’m not sure what you mean by having a now or never possibility on the withdrawal provision in your plan. You think your sponsor employer could change the withdrawal provisions on a grandfathered deferred vested employee? They’d have to give you SAR/notice of material change on such a plan change, if it were possible at all.
Spring market starts next week. Get yer ya yas out
Pat,
The reason I mentioned that is because they clearly indicate in bold type several times that “Note: there is no guarantee that you will always be eligible for a lump sum distribution.”
Syb 26 – Your eligibility for a lump sum payout could be based on the value of what you are vested for. Once my account is worth over $X, I must wait for a monthly payout when I reach retirement age.
Victorian (23):
As a person who is about to be laid off I can say that Kneale statement is the most insulting statement I have heard in a long time. I may even write him an email.
Some more data mining.
From the S&P Case Shiller Tiered Price Index.
Lower priced properties in the NY Commutable area are being harder hit
YOY Change
Low Tier (Under $320,407) down 10.94% YOY
Mid Tier ($302,407-$476,338) down 9.75% YOY
High Tier (Over $476,338) down 6.66% YOY
Just got off the phome with Dennis Kneale. He is going to call me back.
Sybarite,
Although not an FA, I concur with Pat’s suggestion.
John, your right about that. First they start with mainly poor performers and people who do not get along with their managers. Then in the subsequent rounds a growing percentage is high performing, low paid useful employees who get tossed, and I mean the type they could not replace for what they were paying them. In may senses it is a very short sided way of doing things. At the company I work at they basically gutted the IT and Systems development department and for some strange reason only management is left. Ahh, I feel like a work at ford, there is a team here with a manager, 3 assistant managers, a lead developer who doesn’t code and 1 developer. So at my count 5 managerial types 1 actual worker. Too many chiefs not enough indians.
“High Tier (Over $476,338) down 6.66% YOY”
I would say most on this board are looking at this category. This number seems to reflect the complaints that prices really haven’t come down much.
This is the category of homeowners who had good jobs and were not subprime. But now with the job losses this category is no longer insulated. I expect that some of the gap between this and the other categories will close over the course of this year
is this the new thread?
hugh?
SAS
vic (23)-
By Kneale’s reasoning, he should be the next person out the door at CNBC. What a spectacular moron.
SL,
(someone please correct me if i am off)
the carry trade:
i borrow 1000 yen at 1% and then use that to buy an asset in the US, as opposed to borrowing 1000 USD at 8%. Of course you run the numbers so that any currency conversion makes sense (JPYUSD).
The unwind starts to come in when interest rates fall. if the USD rate drops to 1% then my carry trade no longer makes sense with the currency conversion costs as the JPYUSD rate is going to change as well, very likely in an unfavorable manner.
Now remember that i have to fund my debt maintenance with USD that i earn on my US investment. So i have to convert USD to JPY to pay my monthly bill to the Japanese bank that loaned me yen.
When the USD rate goes to 1% i am actually losing money on the deal by the time all the currency conversions (JPYAUD) take place. So i run to sell my assets,
In order for someone to buy my asset, they need US dollars. I take the USD they give me and convert it to JPY. i then repay the japanese bank.
Now you have string demand for JPY and USD because everyone needs the currency pair to unwind carry trades that have now become unprofitable
skep (25)-
More like get your gat:
“Spring market starts next week. Get yer ya yas out”
Clotpoll says:
January 27, 2009 at 10:38 am
vic (23)-
By Kneale’s reasoning, he should be the next person out the door at CNBC. What a spectacular moron.
_______________________________________________
I am just going to tell the guy that high performing people do lose their jobs in the this type of economy and that his blanket statement is wrong. May not do much but I will say my peace.
hype (38)-
Please give him a warm f-you from me.
As GE is pretty much bankrupt, CNBC as a whole is dead wood. Pretty much they can close the channel. Not sure if it will be profit making at all, since all their customers are bankrupt as well.
Good Luck to Kneale.
I would say most on this board are looking at this category. This number seems to reflect the complaints that prices really haven’t come down much.
Skep,
Keep in mind that this tier also showed the smallest price gains through the bubble years. The strongest price gains were seen in the low tier, followed by mid.
The higher they go, the farther they’ve got to fall.
This does fit in with the anecdotes that came out of the last bubble collapse. Condos and townhomes saw the steepest declines during the last real estate crash. Of course, this was aided by some amount of overbuilding.
Clotpoll,
by the sounds of some of your posts as of late, you may be under some stress?
if it helps any, take a little nip of vodka at lunch time.
works for me:)
SAS
Posted to the last thread.
“From another blog I read a guy made a great point about the new business world we already live in.
By way of example, I was at a major conference in 2006 when the head of one large firm stood up and said that he had been shocked by the acquisition of YouTube by Google for $1.65 billion in October 2006.
Not because of the deal, but because there was a firm out there worth $1.65 billion that he had never heard of.
So he called his executive team in, and asked who had heard of YouTube.
None of them had.
So he put “YouTube” into his PC and the message came back “access to this website is not allowed through the corporate firewall, please contact your systems administrator if you believe this is incorrect”.
That was the CEO of McKinsey!
….
So the issue is that most executives are firewalled out when it comes to this technology stuff.
How can you understand your future channels if you cannot see them, access them, connect with them or use them?”
PGC (43)
that is why corporations are dinosaurs.
run by old school rejects with an old school syllabus.
SAS
#41
that is a good point grim. I don’t necessarily disagree but here are a couple of reasons why maybe the high may be more vulnerable than it appears. Number 1, most new construction in our area was “luxury.” I know around me there are at least 5 yrs of high end homes sitting vacant. When they get foreclosed on, that will drive the high end averages down hard. Also, look at all the new luxury construction in Manhattan and the Gold Coast.
Second, while it definitely makes sense that the low end would fall hard initially given that many people who otherwise would not have been able to buy did due to loose credit (and that pool of buyers is now absent). But now the much larger, traditional pool of buyers is getting hammered on the employment side. I think this ultimately will be a much bigger factor in our area than the credit squeeze. Of course, poor people loose their jobs too, but I sort of think the loss of high end jobs (and overall reduction in comp for those that remain) is more of a fundamental shift in that segment of the market.
#36 Sybarite
If you open a traditional IRA and roll the money into that you can still invest in Mutual Funds, perhaps even the same ones you company uses, some online brokerages that offer IRAs have fees as low as $10 a trade that makes the capitalist piggies among us squeal with delight.
Managing the money yourself gives you the opportunity to also short the crap out of companies or to become a bag holder by going loing and to also not pay any capital gains taxes. A self managed traditional IRA is about as close to pure capitalism as we can get, no taxes, low fees and heck if you are enterprising you can day trade and make up the money you did not get in bonus or stock options because the economy is in the shitter.
Ameritrade, Charles Schwab, Datek Online, ETRADE and Fidelity Investments are the TOP Five online brokerages you can open an online IRA with should be very easy to roll the money over to them.
Skep:
Option arms don’t start resetting until April. Then the high end will come down.
“Mutual Funds”
some would argue that mutual fund are a rip off, and that ETF may be better.
research mutual funds vs ETFs.
just an idea
SAS
how about it Grim?
lets see some NJ bubble blog traffic stats? those are always interesting.
has traffic changed in accordance with economic climate?
what say you bloke?
:)
SAS
Many argue that investing in anything but an index tracking ETF is a rip-off as well.
46-sean
I know nothing about this so excuse if this is a dumb question- are there limits on how much money you can put in/trade?
sas (42)-
I eat stress for breakfast. The main source of it for me these days is seeing how many people and companies are willingly following a course of action that will lead to their complete self-destruction. The whole world has simply gone mad.
It’s just amazing to me how many people so deliberately and repeatedly make the wrong decision. I am more and more coming to the conclusion that everybody out there deserves what they get.
Only the market cap of the individual equity ;)
Could I get some info on this mls 2852960 in Orange, wondering the address. There are some nice homes on the border with SO near Montrose. Thanks.
“It’s just amazing to me how many people so deliberately and repeatedly make the wrong decision.”
So true!
Clot- I here you loud and clear- I used to think ignorance was bliss, it’s not… it’s just plain ignorance. reminds me of the definition of insanity- doing the same thing expecting different results.
“It’s just amazing to me how many people so deliberately and repeatedly make the wrong decision. I am more and more coming to the conclusion that everybody out there deserves what they get”
i know, i hear you.
I’ve learned that majority of people do the wrong thing at the wrong time.
and in the end, people have to sleep in their own beds they made.
don’t stress it. i know its hard not too. but try you must, otherwise it will tear you apart. jump ship if all else fails.
i know when i get stressed, i literally have to have a mental converation with myself to relax cause i don’t want those inflammatory reactions that happend in the body while stressed.
Take a deep breath, go for a walk, set up a punching bag.
SAS
Cooper – Nope no limits for rollovers or trades, they will give you a margin account as well. I have rolled over two 401k plans over the years into my IRA. I think 401k plans are great do to the tax deduction limits. They are about times higher than a traditional IRA and your company provides a match % as well. Where 401ks lack is options for investment and fees, most 401k invest in mutual funds that are long only so you do need to watch these investments and you can the symbols are available from most trading programs.
The traditional IRA cash contribution for regular income is 5k by Apr 15 for the tax deduction, you can add another 1k for a “catch up’ contribution as well, not as nice as a 401k, so do both and IRA and 401k if you want to spread out your risk and manage some retirement investments yourself.
//All Disclaimers, I am some dude on the internet who is not much smarter than your average Labrador Retriever.//
“Take a deep breath, go for a walk, set up a punching bag.”
Or do what I do. Play ice hockey!
that would be a good topic of discussion for some of you smart people out there:
mutal fund vs. ETFs
could educate alot of people without the bias.
SAS
cooper
ignorance may not be bliss, but i am becoming more convinced that insanity may be.
Could I get some info on this mls 2852960 in Orange, wondering the address. There are some nice homes on the border with SO near Montrose. Thanks.
jcer,
408 Fairview Ave
Came on the market at $675k in January of 2007. Has been relisted and has had a number of price reductions bringing the price down to $465,000.
58 sean- no worries on the disclaimer, all info reliable but never guaranteed
thx for the info meeting up with my accountant next week trying not to get killed
Citi had to give up its 50 million dollar corporate jet. Bummer.
ket-61
so your sayin insanity could be the pathway to total bliss. hmmmmm interesting angle, leaves a few questions,how do we intentionally become insane yet remain stable enough to enjoy happiness?
all disclaimers
“how do we intentionally become insane yet remain stable enough to enjoy happiness?”
The answer is actually quite simple…Invest in the triple leveraged short ETFS.
thanks Ket,
I am slowly getting it… it helps with the concrete examples.
Or I could just be hypoxic from this cold/cough/whatever.thef.uck.this.is thing.
I’ll know I understand it when I can explain it to someone else. IOW, I still got a ways to go.
But thanks~ it’s becoming less foggy.
sl
it took roughly 18 months of downturn I think for most sellers to realize that we were not going back to bubble land. But by and large I still do not think most understand how swiftly the market is collapsing beneath them right now.
As I’ve mentioned, we bid on a place in late Dec and the sellers recently came back and said they would like to accept the bid we made (which was withdrawn). But now interest rates are 50 bps higher so their price needs to be 5% lower for it to be the same value to us. It was hard enough to get them to accept that their place wouldn’t sell for anything close to their original ask, so I don’t think it is worth the time to try to explain why our bid must go lower again. It seems that there are legions of sellers who are constantly one step behind
i dont think this was posted- 2nd thread confused me-
Roubini Sees ‘Nowhere to Hide’ From Global Slowdown
Jan. 27 (Bloomberg) — Stock market declines globally are increasingly correlated and emerging economies will follow developed nations into a “severe recession,” according to New York University Professor Nouriel Roubini.
Roubini said economic growth in China will slow to less than 5 percent and the U.S. will lose 6 million jobs. The American economy will expand 1 percent at most in 2010 as private spending falls and unemployment climbs to 9 percent, Roubini said.
“There is nowhere to hide,” Roubini, an economics professor at NYU’s Stern School of Business who predicted the financial crisis, said in an interview with Bloomberg Television. “We have for the first time in decades a global synchronized recession. Markets have become perfectly correlated and economies are also becoming perfectly correlated. This is not your kind of traditional minor recession.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=aSPfvFnuTl20&refer=home
Stu 59 – “Or do what I do. Play ice hockey!”
trying to reduce stress not teeth!
Stu 66 “triple leveraged short ETFs.”
Oy.
sl
Syb, this is probably not what you’re looking for, and it’s not going to help you make a decision on fees, but you might want to read up on the differences between various IRAs in pub590 (note that’s for 2007):
http://www.irs.gov/formspubs/article/0,,id=181213,00.html
sl, I caught the thing from you. Now I have to decide if I should expose my new dentist to it tomorrow, or wait for another appointment. Humanity v. Need for Cleaning.
Pat and others,
Thanks a bunch for the tips; I now have some work to do before deciding.
Any wisdom on my 2nd question from the post:
-What is the most common compensation structure for Financial Planners? I would like to establish a relationship, but don’t know what to expect in that regard. Also, are the fees from a FP tax-deductible?
Thanks
I remember when they pulled out of NJ auto.
State Farm to pull out of Fla. homeowners market
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090127&id=9550149
Pat 72
That’s simple! Reschedule.
Problem is that when you clean teeth. All the horrific bacteria can accidentally get into your bloodstream.
Healthy? No problem.
Healthy heart valves? No problem.
Already stressed immune system? Asking for trouble.
If you seed your blood with Strep viridans (most common, particularly virulent tooth bacteria) you can get sepsis, endocarditis (infected heart valve) or worse brain abscess.
Almost always– even with healthy valves, I will take the prophylaxis dose of antibiotics before teeth cleaning… I’ve seen all three of the above and they are bad – the endocarditis in particular.
Not to scare you but just to keep you informed. These are uncommon but you really don’t want them.
sl
I can’t resist.
This doesn’t look good. I guarantee it!
Men’s Wearhouse shares fall on downgrade
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20090127&id=9550154
Sean-
I don’t think that you can short stocks in an IRA but I may be mistaken.
Thanks Grim, no wonder they are having a hard time selling it. That price for that area of orange is bad.
skep 68 new anthem from buyers to sellers- Time is on my side- Stones
Time is on my side, yes it is
Now you always say
That you want to be free
But you’ll come running back
You’ll come running back
You’ll come running back to me
You’re searching for good times
But just wait and see
You’ll come running back
You’ll come running back
You’ll come running back to me
Time is on my side, yes it is
d2B:
Can’t short stocks (won’t do margin on an IRA account), but options and ultra ETFs are fair game. I’m proof!
Just got another update on a different house we looked at in Dec. 5% reduction. So basically it is just as overpriced as it was a month ago
SL
i’ll try again ( as you said if forces me to understand it better i order to explain it)
we have 3 people partaking in a business transaction
Ben, Hank, and Tim:
Ben does business in Yen (JPY)
Hank does business in US dollars (USD)
Tim can do business in any, either USD or JPY……
Tim wants to make money. he sees that the JPY has a nominal interest rate of 1% and the USD had a nominal interest rate of 5%. he also see’s that there is an asset (a printing press)that he can buy from Hank.
Tim must borrow money to make the purchase, he see’s that hank would charge him 5% interest for a loan and that Ben would charge him onyl 1% interest on the same loan.
naturally Tim borrows the money from Ben in JPY @ 1%. Hank only accepts dollars though. So Tim exchanges all of his shiny new JPY for the equivalent in USD minus an exchange fee. Tim now takes the USD to Hank and buys the printing press.
Tim is now happily making money on his investment. every month his income from the printing press, minus operating expenses is a profit. But he still has to pay his monthly note on the JPY loan that Ben gave him. So every month Tim takes a portion of his profits and exchanges them for JPY at the cost of an exchange fee.
Well as long as the exchange rate (fee) is favorable Tim is making a NET profit and is happy.
This is the carry trade. Tim makes money by borrowing in one currency and doing business in another, because the interest rate on the foreign currency loan allows him to make a profit on the total transaction.
however the favorable exchange rates and interest rates can reverse and cause you to loose a lot of money, i.e unwinding
can’t do both IRA and 401K if you earn a decent salary and get any deduction for the IRA.
Focus on tax savings should be above the line deductions, max 401k, max flex spending, max transist check and then go below the line.
Cosmo, Accused of Ponzi Scheme, Raised $370 Million, U.S. Says
Email | Print | A A A
By Charles Carter
Jan. 27 (Bloomberg) — Nicholas Cosmo, founder of Agape World Inc. in Hauppauge, New York, was charged with defrauding 1,500 investors of more than $370 million, U.S. authorities said.
Cosmo, arrested yesterday in New York, claimed to be in the lending business. He lent only $10 million of the money raised, according an affidavit supporting a warrant authorizing a search of his offices
He lost 80 percent of $100 million he used in commodities futures trading, according to the affidavit.
SL,
would gargling with grain alcohol before the dentist help kill the bacteria???? maybe floss with it?
“He lost 80 percent of $100 million he used in commodities futures trading, according to the affidavit.”
And this differs from Citi and Countrywide how?
shore,
the difference? cosmo didnt fund a substantial portion of one of the dominant political parties activities
“But now interest rates are 50 bps higher so their price needs to be 5% lower for it to be the same value to us.”
And the trend in prices is clearly down so, whether you buy it now or they hold onto it, the house will be worth less next year than today. Therefore, even the 5% reduction would not be enough of a reduction for me. They want to keep their cake and eat it too; hold out for higher price then go back to you if they cant get it, kind of like a “safety date” to the prom. If it were I, there is NO WAY I would go back and make a deal TODAY for the same cost to me as the one they rejected before; I would be inclined to exact more concessions and make their initial rejection cost them. If they then rejected my latest offer, I would make sure they knew that I would never again offer as much and any future offers would be at a lower number.
http://www.agapeworldinc.net/
a little different as they were supposed to lend it not invest it.
Stu plays hockey???
Wow, an opportunity to flatten Stu and not suffer disopprobrium for it. Where do we sign up? ;-)
more like a safety date for the prom with a back up bootie call girl.
Asia Times Online,
Back to the woodshed
Very nice long article.
Thanks Grim, no wonder they are having a hard time selling it. That price for that area of orange is bad.
Not to mention the fact that the property carries taxes of more than $14,000/yr.
One more note, was purchased for $400,000 in 2004.
Yeah agapeworldinc was supposed to take private money and lend it to buisness and commercial enterprises.
Did you mean opprobrium?
Nom…You play? What position and in which league?
I must warn you though, I’m the fastest 250 pounder you’ll ever see. My weight is deceiving though. Most people crazy enough to hit me don’t budge me. With that said, I’m more of a finesse player and average two penalties per season. I’m a lover, not a fighter!
“VIENNA, Jan 25 (Reuters) – The United Nations’ crime and drug watchdog has indications that money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday.
http://www.reuters.com/article/marketsNews/idUSLP65079620090125
wow, now i will really stay away from that Pepsi.
but wait… little Johnny poo just loves the Pepsi…
“Report: High Fructose Corn Syrup Contaminated With Mercury”
http://www.iatp.org/
Did John write the Asia Times article?
“f you were an American adolescent male in October, 1973, your first introduction to economics might have been the “gas crisis” that hit the country following the Arab oil boycott in the 1973 Yom Kippur war. There you were, with a freshly minted driver’s license, which, of course, you wanted to use to pick up girls. That was accomplished by driving to some hotspot where the girls were hanging with their friends, catching one’s eye, then driving around the block maybe 20 or so times to see if any eye contact the two of you had established was going anywhere.
But that was much harder to do during the gas crisis. Fuel supplies during that time were extremely limited, so you might have been only able to purchase 30 liters at a time, maybe every other day – that wouldn’t get you that many spins around the block. Also, you might have had to wait up to five hours at a time just to get that wholly inadequate fillup”
“money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday”
is this a surprize?
how many times have i said this on these boards?
but the black economy doesn’t exist, neither does that EZ pass, now go back to drinking your Mercury filled Pepsi and order pizza for superbowl sunday.
SAS
Gary,
you didnt tell me you had a video blog….
http://dailybail.com/home/2009/1/25/there-are-no-words-to-describe-the-following.html
———————————-
SAS
not a surprise itself, but unusual to se it in the MSM
next, somebody should ask Timothy Geithner where did that $3.3 trillion of undocumentable adjustments go?
He should know, since he was at the NY Fed bank while it happened. After 3.3 trillion, all we are left with is literal “change” in our pockets.
but hey, what do i know. Let me get back to my pepsi.
SAS
kettle @ 100
that was funny!
he is straight up telling the truth.
SAS
lol,
this reminds me of Clotpoll as of late :)
“where is all the god damn money! sheet!”
SAS
interesting MBA discussion.
I’m not quite in Lena’s spot, but a similar one – started a business, got lucky, and it’s done well so far. been able to put some money aside. BUT, who knows how long it’ll last?
i started poking around for college teaching jobs in my field (the media), and even at the CC level, you need a master’s.
does anyone know if schools keep hard and fast rules about having a master’s, or do they sometimes bend the rules for people with quality experience and small business experience? I suppose it varies by field, but …
Bank bailout could cost $4 trillion
Banks don’t have enough capital to fix their problems, which means the Obama administration may need a lot more money to clean up the financial mess.
http://money.cnn.com/2009/01/27/news/bigger.bailout.fortune/index.htm?po…
grim (8)
I calculate CS NY Metro YOY for Nov 08 as -8.59% instead of -7.56%. Don’t mean to nitpick, just trying to figure out what the right number is. Thanks.
Clotpoll says:
I eat stress for breakfast. The main source of it for me these days is seeing how many people and companies are willingly following a course of action that will lead to their complete self-destruction. The whole world has simply gone mad.
It’s just amazing to me how many people so deliberately and repeatedly make the wrong decision. I am more and more coming to the conclusion that everybody out there deserves what they get.
Agree and as a 2o yr old in the last bubble, I witnessed it then too in a few business situations where I was just working part time, answering phones. Maddness to the point where I couldn’t even tell you what the actual nature of said business was. It was all about German business car leases, expensive office equipment, 1st class airfare. Vanity. All of it. I grew to learn that business is really simple, but people are a PITA.
yikes having a masters is bending the rules, usually they want PhD, certain subjects like accounting or finance they bend rules for business people. Generally, you have to be one degree higher than the people you are teaching. So since you already have a college degree you can teach people pursuing a college degree, if you have a masters you can teach people pursuing a masters but unless you have a PhD no one would let you teach PhD courses. Try a local community college or your alamatta is you want to give it a try.
Yeah 3% property taxes are bad. I figure that between the negative connotation of Orange, the property taxes, and lack of financing because banks won’t appraise properties in Orange highly., I should be able to purchase a nice historic home very cheaply and just deal with the taxes because I am not paying a huge mortgage. I want 60% city of Orange appraisal as a purchase price and I think given the economy and situation in that area I should not be far off.
AP:
NY AG subpoenas Thain over Merrill bonuses
http://finance.yahoo.com/news/NY-AG-subpoenas-Thain-over-apf-14168259.html
“Thain, 53, was serving as the head of the newly combined company’s wealth management division before he resigned last week. The resignation came shortly after reports surfaced that billions of dollars were paid to Merrill executives in late December.
Those bonuses were paid as Merrill was about to report a $15 billion fourth-quarter loss, and while Bank of America was seeking more federal funds to help it absorb the mounting losses at the New York-based investment bank.”
http://money.cnn.com/video/#/video/news/2009/01/27/news.pvd.ford.taurus.cnnmoney
Emerging Markets Report: Poland’s central bank cuts key interest rate to 6.25% from 5%
#88
“If they then rejected my latest offer, I would make sure they knew that I would never again offer as much and any future offers would be at a lower number.”
Shore– this is good advice and this is what we said when we walked away in Dec. They obviously did not believe us. Were I to bid again I would definitely go lower, even accounting for the interest rate difference. But my experience with these sellers tells me that they are highly reluctant to admit to themselves what their house is really worth, so I declined to bid again and will wait and see where they are in a month or so.
people are funny, they sell a car right away as they know it is falling in value each month so in a falling market you can’t wait too long. But a house is another story. For fun I told a seller last year I was willing to pay full market price, which is I think the market is falling another 25% so I will give you 25% off asking. Somehow he did not think it was funny.
“people are funny, they sell a car right away as they know it is falling in value each month so in a falling market you can’t wait too long.”
John,
A car? What about stocks? How about all those that hold JPM, C, BAC, just to name a few.
There is nothing wrong with being wrong. However, to remain materially wrong? That’s downright idiotic.
““Report: High Fructose Corn Syrup Contaminated With Mercury””
The same people who came up with some of the “modern” financial instruments must have concocted the idea of processing food in VATS OF MERCURY! What the heck, there was insufficient lead or DDT available?
“After 3.3 trillion, all we are left with is literal “change” in our pockets.”
Yes, but it is change we can believe in.
pretty illustrative article on sellers’ mentality in sunday Times RE section this week. lady put her house in LI on the market and received her first bid at $540k. She rejected it and then over a year later ended up selling the place for $550k. I think agents a lot of times are really setting their clients and themselves up to fail to recognize good bids because they encourage sellers to list so high right off the bat
“Somehow he did not think it was funny.”
Facts seldom are funny.
“She rejected it and then over a year later ended up selling the place for $550k. ”
Skep,
I bet she believes she made out well. I suspect she discounts the carrying costs and the time-value of money. Something like, “I got $10,000 more. I was SO SMART to hold out.”
I agree, but at least with stocks people know their current value. My wife has JPM stock, she is not irrational as she keeps forgetting to sell it. Maybe one day she will be rich by reinvesting dividends. The really irrational people are people working at citi, aig, bac who have tons of company stock who will lose their job and nest egg in same day but still won’t diversify. Then again someone told me this week that they won’t buy a NY GO bond as they are afraid NY will go bankrupt yet they are buying stocks. I am ok with them buying stocks but when they tell me there is a higher chance of NY going bankrupt than a beaten down company you gotta wonder.
BC Bob says:
January 27, 2009 at 2:05 pm
“people are funny, they sell a car right away as they know it is falling in value each month so in a falling market you can’t wait too long.”
John,
A car? What about stocks? How about all those that hold JPM, C, BAC, just to name a few.
There is nothing wrong with being wrong. However, to remain materially wrong? That’s downright idiotic.
http://www.cnbc.com/id/28874865
Sort of like, “Well, before I crashed it, this car was worth $50,000.” Not that it or the stocks in the article above will ever be worth what they were once worth.
I have a boatload of Citi stock. Rode it all the way down from $56. At first I held onto it b/c of its decent dividend ($2.16/annually at one point). I’m kicking myself for not getting rid of it now that i can’t even get a decent dividend from it. hopefully it’ll go back to $5 so i can get out of it.
Might get a better return using it as a fire starter.
shore
carrying costs and the time-value of money……… whats that? are you a banker or something?
Banker? No, I have no debt; so I can’t be a banker.
A tiny abode competes with Montclair’s mansions
by Philip Read/The Star-Ledger
Tuesday January 27, 2009, 5:21 AM
The tiny, circa-1890 frame house on the narrowest of lots — just 18 feet wide — is as modest as a single-family home can get so close to Montclair’s stately Estate section, where a handsome six-bedroom colonial with “old world craftsmanship” is listed at $1.49 million.
But this little old house on Cross Street is on the opposite end of the spectrum. It is, in fact, at just $117,500, believed to be the lowest-priced listing in town.
http://www.nj.com/news/index.ssf/2009/01/little_house_in_montclair_is_a.html
what did i say? this shake out is far from over, and mistrust is running deep.
“NY financier arrested in purported $400 million scam”
http://tinyurl.com/b7clcp
*Authorities on Monday arrested the chief executive of a private New York financing firm on suspicion of running a purported Ponzi scheme that attracted $400 million in investments
SAS
speaking of fraud, don’t let this story gone by unnoticed:
“Halliburton to pay $559 million to settle bribery probe”
http://tinyurl.com/ce32dc
man, these numbers are sure starting to add up.
no black economy here, move along :P
SAS
Heck, SAS, why get all outraged over $400 million? It is not even enough to run a presidential campaign. In a world where “trillion is the new billion.” $400 million is like a CHC in Brigadoon.
According to the JED (John’s English Dictionary):
alamatta = alma mater
alamatta wears army boots?
131
Ah, I thought it was an olive reference.
From MarketWatch:
Fed launches program seeking to stem foreclosures
After years of pressure from Democrats and some Republicans on Capitol Hill, the Federal Reserve on Tuesday announced a program seeking to stem foreclosures. According to the measure, mortgages “held, owned or controlled” by a federal reserve bank would be subject to modification as part of an effort to help troubled homeowners avoid foreclosure. For example, mortgages backed securities guaranteed by Fannie Mae and Freddie Mac that are purchased by the New York Federal Reserve would be subject to modification. The New York Fed plans to buy $500 billion in mortgage securities by mid-year.
these guys have no legs to stand on cause they didn’t do there jobs, and they were in on the fraud.
and you think the lil SEC is there to protect lil ol you, aww…
btw: look for the fraud, within the fraud.
“Regulators defend actions amid Madoff scandal”
http://tinyurl.com/au6m5f
Hey Clot,
Assuming 20% down and high 700 credit score, what are typical MUL financing rates these days looking like?
BC (115)-
Anyone holding the common of C, BAC or JPM is essentially playing chicken with the gubmint.
heard on the radio earlier…
latest cali proposal was to call a special election, and let the voters decide.
it seems that this can’t happen quickly enough. Plus, it will cost $100 Million for a special election. Money that the State doesn’t have.
Pat 71..wow did you see this on in the link you provided? Mortgage debt forgiveness write off until 2012 http://www.irs.gov/irs/article/0,,id=179073,00.html
Shore (120)-
The only way I keep a hold on sanity is knowing that for every person mentioned in a story like this, there are still 10 more I ought to be able to take to the cleaners.
[137] Perhaps, but the government just flooded C with cash, it doesn’t seem likely that it will let it be wasted – what bad publicity that would make.
John (121)-
Your dividend outlook for big banks is a bit rosier than the consensus, don’t you think?
“My wife has JPM stock, she is not irrational as she keeps forgetting to sell it. Maybe one day she will be rich by reinvesting dividends.”
“Fed launches program seeking to stem foreclosures”
i asked a question the other day that nobody had an answer, so for kicks, i will ask again:
when the US is done bailing out all the fraud, who will bail out the US?
SAS
http://www.youtube.com/watch?v=TQZVtL9e6I8
Ron Paul just schooling Keynsians.
really cool stuff.
-What is the most common compensation structure for Financial Planners? I would like to establish a relationship, but don’t know what to expect in that regard. Also, are the fees from a FP tax-deductible?
went to the best friend of a relative. he’s with Ameriprise. so far, no major issues. he hasn’t charged us anything but a small, one-time, up-front fee.
i do listen to that radio guy Ric Edelman and im curious what he charges his clients.
syb (136)-
Not good. Lots of add-ons. Nobody wants to touch them. Call Cindy @ (908) 231-7390 and ask her about your specific situation.
Clot,
Thanks. Hoped maybe the landscape had changed a bit lately, but it sounds like no such luck.
“Perhaps, but the government just flooded C with cash, it doesn’t seem likely that it will let it be wasted – what bad publicity that would make.”
[137],
Hope you’re being sarcastic?
My #148 was to # 141.
sl 75 thx
If a financial planner knew what he was doing why would he be doing financial planning for other people? Amerprise has independent agents, some good some bad. The bad ones push you into the things with the highest fees. Also with FPs you need a certain amount of money to make it worthwhile. Someone with 200K pocket change and more than a dim lightbulb upstairs don’t need them. However, most people are dolts so they need them, my neighbor is one and he does nurses, cops, firemen and teachers mainly and even the most basic thing he tells them they act like he is albert einstein.
BC (148)-
As if transfusing a corpse isn’t- in and of itself- a bit embarrassing?
But hey! Those holders of C also get the double bonus of share dilution and a .01 USD dividend.
I am reminded of the old Monty Python bit about how you can tell if someone is dead.
Clot,
i can’t wait till 5.
going to take my little nip right now.
:P
SAS
Yikes,
A fee only FP is a good idea if you have the assets to justify it. They have Fiduciary responsibility to you and not themselves or their employer.
Here is a link to find one.
http://www.napfa.org/
If a financial planner knew what he was doing why would he be doing financial planning for other people? Amerprise has independent agents, some good some bad. The bad ones push you into the things with the highest fees. Also with FPs you need a certain amount of money to make it worthwhile. Someone with 200K pocket change and more than a dim lightbulb upstairs don’t need them. However, most people are dolts so they need them, my neighbor is one and he does nurses, cops, firemen and teachers mainly and even the most basic thing he tells them they act like he is albert einstein.
– help with managing your 401k, if you need it
– help with balancing the portfolio, if you care about that kind of thing
those are just two. hey, it’s not for everyone.
but yeah, lotta crooks in that game. gotta be careful, obviously. then again, lotta crooks everywhere.
trust nobody (except anon NJ RE commenters who dominate the market)
Let me get this straight. One’s business can lend someone, say a relative, money for a mortgage. They can fail to pay and one can then forvive the mortgage. Then, one gets to take a loss on the loan, thus reducing one’s business income and one’s relative gets to receive much more than the usual gift that is free of tax? Is this where we are now?
Monty Python’s “dead parrot” routine:
A customer enters a pet shop.
Customer: ‘Ello, I wish to register a complaint.
(The owner does not respond.)
Customer: ‘Ello, Miss?
Owner: What do you mean “miss”?
Customer: I’m sorry, I have a cold. I wish to make a complaint!
Owner: We’re closin’ for lunch.
Customer: Never mind that, my lad. I wish to complain about this parrot what I purchased not half an hour ago from this very boutique.
Owner: Oh yes, the, uh, the Norwegian Blue…What’s,uh…What’s wrong with it?
Customer: I’ll tell you what’s wrong with it, my lad. ‘E’s dead, that’s what’s wrong with it!
Owner: No, no, ‘e’s uh,…he’s resting.
Customer: Look, matey, I know a dead parrot when I see one, and I’m looking
at one right now.
Owner: No no he’s not dead, he’s, he’s restin’! Remarkable bird, the Norwegian
Blue, idn’it, ay? Beautiful plumage!
Customer: The plumage don’t enter into it. It’s stone dead.
Owner: Nononono, no, no! ‘E’s resting!
Customer: All right then, if he’s restin’, I’ll wake him up!
(shouting at the cage)
‘Ello, Mister Polly Parrot! I’ve got a lovely fresh cuttle fish for you if
you show…(owner hits the cage)
Owner: There, he moved!
Customer: No, he didn’t, that was you hitting the cage!
Owner: I never!!
Customer: Yes, you did!
Owner: I never, never did anything…
Customer: (yelling and hitting the cage repeatedly) ‘ELLO POLLY!!!!!
Testing! Testing! Testing! Testing! This is your nine o’clock alarm call!
(Takes parrot out of the cage and thumps its head on the counter. Throws it up in the air and watches it plummet to the floor.)
Customer: Now that’s what I call a dead parrot.
Owner: No, no…..No, ‘e’s stunned!
Customer: STUNNED?!?
Owner: Yeah! You stunned him, just as he was wakin’ up! Norwegian Blues
stun easily, major.
Customer: Um…now look…now look, mate, I’ve definitely ‘ad enough of this.
That parrot is definitely deceased, and when I purchased it not ‘alf an hour
ago, you assured me that its total lack of movement was due to it bein’ tired and shagged out following a prolonged squawk.
Owner: Well, he’s…he’s, ah…probably pining for the fjords.
Customer: PININ’ for the FJORDS?!?!?!? What kind of talk is that?, look, why
did he fall flat on his back the moment I got ‘im home?
Owner: The Norwegian Blue prefers kippin’ on it’s back! Remarkable bird, id’nit, squire? Lovely plumage!
Customer: Look, I took the liberty of examining that parrot when I got it home, and I discovered the only reason that it had been sitting on its perch in
the first place was that it had been NAILED there.
From a post at Dealbreaker;
A huge wave of bank loans to the PE industry starts coming due in 2012 and won’t crest until 2014. Hundreds of billions due each year, and there’s no guarantee of refinancing. Anyone who’s not already paring down costs to the greatest possible extent is screwed. (Garett Moran of The Blackstone Group)
We’ve be primarily concerned with the credit bubble as it has manifested itself in the real estate market. Along the way a lot of us became aware of how cheap cash affected markets we, heretofore, hadn’t been aware of or paid attention to; CDS, ARS, etc.
I suppose I’m wondering; how long will it take to burn off all the excess cash that was generated over the past 10-15-20 years?
It seems, just when I think I’ve gotten a handle on how big this is it gets bigger in ways I hadn’t thought about.
What other obscure time-bombs are out there that we haven’t heard of yet?
We all know about the problems with the pension funds & state insolvency & currency valuations. But I keep getting the feeling this hydra has far more heads than I can know about.
This is going to be a long hard and drawn out reversion.
In the old days, Monty Python said one could tell the King, because he was not covered in $hit. Given the mess we are in, how can one tell our “leaders” as so many of them seem to be covered in it.
BTW – I know we’ve discussed the CP markets before, just sayin’ is all.
Clot (159) –
ROFL!! Was that parrot named AIG?
Shore (160)-
There are no leaders. All the pretenders are covered in shit now.
I own a S corp, mainly involved in IT consulting. What is a reasonable amout to pay for tax preparation? I am paying my tax preparer roughly $1200/yr to do my perosnal and S corp taxes including al the quarteryly filings. IS $1200 a reasonable amount or am I overpaying?
Syb(136):
I’ve been researching multi-family refis for a few months now and the rates quoted all had a minimum 3/8ths basis hit to the interest rate above what each bank is quoting for a single family refi. Some penalized even more and many a whole lot more.
http://www.google.com/hostednews/ap/article/ALeqM5hNzeaKyiSJsOcwD6VdbiuyU7FbRQD95VKGM00
Shore (166)-
Springsteen needs to write some songs people can sing while standing around trash barrel fires.
Springsteen tour dates:
http://www.brucespringsteen.net/news/index.html
DATE CITY VENUE ON-SALE DATE
Feb 1 Tampa, FL Super Bowl XLIII
Apr 1 San Jose, CA HP Pavilion at San Jose Feb 2
Apr 3 Glendale, AZ Jobing.com Arena Feb 2
Apr 5 Austin, TX Frank Erwin Center Feb 7
Apr 7 Tulsa, OK BOK Center Feb 7
Apr 8 Houston, TX Toyota Center Feb 7
Apr 10 Denver, CO Pepsi Center Feb 2
Apr 15 Los Angeles, CA LA Memorial Sports Arena Feb 2
Apr 21 Boston, MA TD Banknorth Garden Feb 2
Apr 22 Boston, MA TD Banknorth Garden Feb 2
Apr 24 Hartford, CT XL Center Feb 2
Apr 26 Atlanta, GA Philips Arena Feb 2
Apr 28 Philadelphia, PA Wachovia Spectrum Feb 2
Apr 29 Philadelphia, PA Wachovia Spectrum Feb 2
May 2 Greensboro, NC Greensboro Coliseum Feb 6
May 4 Hempstead, NY Nassau Veterans Mem. Col. Feb 2
May 5 Charlottesville, VA John Paul Jones Arena Feb 2
May 7 Toronto, ONT Air Canada Centre Feb 6
May 8 University Park, PA Bryce Jordan Center Feb 2
May 11 St. Paul, MN Xcel Energy Center Feb 2
May 12 Chicago, IL United Center Feb 2
May 14 Albany, NY Times Union Center Feb 2
May 15 Hershey, PA Hersheypark Stadium Feb 2
May 18 Washington, DC Verizon Center Feb 2
May 19 Pittsburgh, PA Mellon Arena Feb 2
May 21 E. Rutherford, NJ Izod Center Feb 2
May 23 E. Rutherford, NJ Izod Center Feb 2
May 30 Landgraaf, Holland Pink Pop Festival March 7
June 2 Tampere, Finland Ratinan Stadion ON SALE
June 4 Stockholm, Sweden Stockholm Stadium SOLD OUT
June 5 Stockholm, Sweden Stockholm Stadium SOLD OUT
June 7 Stockholm, Sweden Stockholm Stadium SOLD OUT
June 9 Bergen, Norway Koengen SOLD OUT
June 10 Bergen, Norway Koengen SOLD OUT
July 2 Munich, Germany Olympiastadion ON SALE NOW
July 3 Frankfurt, Germany Commerzbank Arena ON SALE NOW
July 5 Vienna, Austria Ernst Happel Stadion ON SALE NOW
July 8 Herning, Denmark Herning MCH ON SALE NOW
July 11 Dublin, Ireland RDS Jan 30
July 16 Carhaix, France Festival des Vielles Charrues Jan 30
July 19 Rome, Italy Stadio Olimpico ON SALE SOON
July 21 Turino, Italy Olimpico di Torino ON SALE SOON
July 23 Udine, Italy Stadio Friuli ON SALE SOON
July 26 Bilbao, Spain San Mames Stadium ON SALE SOON
July 28 Benidorm, Spain Estadio Municipal de Foietes ON SALE SOON
July 30 Sevilla, Spain La Cartuja Olympic Stadium ON SALE SOON
Aug 1 Valladolid, Spain Estadio Jose Zorrilla ON SALE SOON
Aug 2 Santiago, Spain Monte Del Gozo ON SALE SOON
Since the new Album, Lucky Town LI, ummm, Human Touch II, umm, Working On A Dream deals with dreams, and RE is the American Dream, it only figures that this is on-topic.
“Springsteen needs to write some songs people can sing while standing around trash barrel fires.”
Clot [167],
Here you go;
There’s a blood red circle
on the cold dark ground
and the rain is falling down
The church doors blown open
I can hear the organ’s song
But the congregation’s gone
My city of ruins
My city of ruins
Now the sweet veils of mercy
drift through the evening trees
Young men on the corner
like scattered leaves
The boarded up windows
The hustlers and thieves
While my brother’s down on his knees
My city of ruins
My city of ruins
Come on rise up!
Come on rise up!
Scott Adams must be reading this site..
http://www.ritholtz.com/blog/wp-content/uploads/2009/01/39706stripprint.gif
JB,
Rise up, #170 in mod.
Apologies if already posted:
Citigroup will not take possession of new aircraft
NEW YORK – Citigroup Inc., which has received $45 billion in federal bailout money, said it will not take delivery of a corporate jet it previously planned to purchase. The canceled deal comes a day after a New York Post report said the bank planned to take possession of the plane, and amid a chorus of concerns from politicians who are worried about how banks that have received federal funds are spending the money.
“Citi has no intent to take delivery of any new aircraft,” the New York-based bank said in a statement Tuesday.
In a statement late Monday, Citi said it had placed a deposit in 2005 to acquire a new corporate jet. The New York-based bank noted that any cancellation of the deal would likely lead to millions of dollars in penalties.
A deposit on the jet will be lost, but is recoverable once the jet is sold, according to a person familiar with situation. Citi was in the process of purchasing a Dassault Falcon 7X for $50 million, the person said.
Aside from not taking control of a new jet, Citi is also planning to cut the number of corporate jets in its existing fleet to two from five, said the person, who asked not to be identified because those details haven’t been made public.
On Monday, the New York Post reported that Citi was set to take possession of a new corporate jet it decided to acquire two years ago. The Post report said Citi was still planning to receive the jet even after it received billions of dollars in support from the government amid the ongoing credit crisis and recession.
Corporate jets have become a hot-button topic amid the ongoing credit crisis as the cost of owning and operating them has come into question, especially for companies receiving financial support from the government.
Sen. Carl Levin, D-Mich., released a statement Monday after the New York Post report, saying financial firms receiving federal money should not be purchasing new planes.
In November, executives of automakers Ford Motor Co., General Motors Corp. and Chrysler LLC were roundly criticized for flying on corporate jets to Washington to ask Congress for federal bailout money.
Citi has been among the hardest hit banks by rising loan defaults and souring investments, and been one of the biggest receivers of government support.
The bank has received $45 billion in capital from the government as part of the U.S. Treasury Department’s plan to directly invest in banks. The government is also providing guarantees on hundreds of billions of dollars of Citi investments in mortgages and other troubled investments.
Amid the struggles, Citi has been working to streamline its operations and shed assets in an effort to regain profitability. The bank has posted five consecutive quarterly losses, including a fourth-quarter loss of $8.29 billion.
Earlier this month, Citi reached a deal to sell a majority stake in its Smith Barney brokerage unit to Morgan Stanley. Citi has also announced plans split its operations into two units, separating its traditional banking businesses from its riskier operations.
It might take a while for Citi to recover its deposit on the canceled jet deal, as the market for corporate aircraft has softened with the economy.
Before the jet market cooled last year, speculators sometimes placed orders with no intention of taking delivery of the plane. They would sell their position in line.
“There was such a backlog — three or three-and-a-half year waits — people could buy positions and flip them for a profit,” said Robert F. Agnew, president and chief executive of aviation consulting firm Morton Beyer & Agnew. “Selling a slot today is probably very difficult.”
Agnew said buyers typically pay a few percentage points of the purchase price when placing the order, then a series of payments as production begins and other milestones are reached. They might pay about 35 percent of the cost before taking delivery, then pay the balance when taking the plane, he said. At that rate, Citi could have already spent $17.5 million on a plane it will no longer receive.
Agnew did note that upfront costs can be much lower where a strong relationship exists between buyer and seller, but said he was not familiar with Citigroup’s arrangement with Dassault.
http://news.yahoo.com/s/ap/20090127/ap_on_bi_ge/citigroup_jet
BC – #170
http://blog.nj.com/njv_paul_mulshine/2009/01/asbury_park.html
Before the jet market cooled last year, speculators sometimes placed orders with no intention of taking delivery of the plane. They would sell their position in line.
“There was such a backlog — three or three-and-a-half year waits — people could buy positions and flip them for a profit,” said Robert F. Agnew, president and chief executive of aviation consulting firm Morton Beyer & Agnew. “Selling a slot today is probably very difficult.”
It makes condo flipping seem small time.
Springsteen is a chump:
http://news.bbc.co.uk/2/hi/americas/us_elections_2008/7705464.stm
Vanguard has closed its Treasury MM Funds.
“Vanguard has announced the closure of Vanguard® Admiral™ Treasury Money Market Fund and Vanguard Treasury Money Market Fund to new accounts effective 4 p.m., Eastern time, on Monday, January 26, 2009. In light of the substantial decline in yields on short-term Treasury securities, this decision was made to protect the interests of current fund shareholders. Current shareholders of the two funds who invest directly through Vanguard may continue to invest up to an additional $50,000 per day, per fund account. Although we’re taking this step, it is likely that the yields on Vanguard’s Treasury money market funds will continue to decline to negligible levels if short-term interest rates remain as low as they are now.”
#157
“Let me get this straight. One’s business can lend someone, say a relative, money for a mortgage. They can fail to pay and one can then forvive the mortgage. Then, one gets to take a loss on the loan, thus reducing one’s business income and one’s relative gets to receive much more than the usual gift that is free of tax? Is this where we are now?”
********
in theory, but IRS will look to substance of transaction above the form. but stuff like this is why forgiveness of debt is usually treated as income
JB [174],
The quintessential marathon.
I was driving around Asbury Park on Saturday night. Place is absolutely scary. We were in the area and I saw on zagat a sushi place that looked interesting. So, I set my gps to get us there and as usual, it took me through the backroads getting to Mattison Ave. You couldn’t give me a place to live there.
In order to make that place liveable, you’d have to transplant 90% of the current residents and start over again
“you’d have to transplant 90% of the current residents and start over again”
x,
Just keep the Stone Pony.
“Target says it will cut jobs in weak economy”
http://tinyurl.com/c4z2nt
skep-tic says:
January 27, 2009 at 10:37 am
“High Tier (Over $476,338) down 6.66% YOY”
“I would say most on this board are looking at this category. ”
Is that really true?
Asbury Park,, is it as bad as paterson,
elizabeth, or Trenton yet?
I’ve been to a lot of good shows at the stone pony over the years.
I thought I heard it closed a while ago but the website is still up…good news
Mattison Ave looks all fixed up with trendy restaurants and such..pretty nice actually but a total ghost town at 6:00. We bagged dinner there though because I didn’t really feel like walking around there at night
Freedy,
Yet?
“Vermont: Fewer than 500 layoffs at IBM plant
Vermont labor commissioner: Fewer than 500 layoffs expected at IBM’s Essex Junction plant”
http://tinyurl.com/anvoww
ps. like how the AP threw in that word “fewer”.
hey only “fewer” than…
The Pony had a roof issue and closed for a few weeks. I have not been over to see if it is now open. This place is the only national/international draw to the city and as I understand it the plans are/were to tear it down and relocate it to a new building. Smacks of moving CBGB to Vegas; it is not and would never be the same.
http://www.cnbc.com/id/28878404
Accused Ponzi-schemer Nicholas Cosmo onced owed tens of thousands of dollars in gambling debt to the Genovese crime family, the latest twist in a scheme federal authorities believed bilked small investors out of $370 million, according to people with knowledge of the matter.[snip]
stone pony going to join my fathers place and cbgb’s in the history books soon.
SAS,
Given the population of VT, I wonder what that equates to for a state like NJ?
Asbury park,,, i was just trying to see how bad it is,,, NJ offers opportunity with many of its wonderful destinations.
Do they have a Social Security office?
Have to service the BO fans.
Zack (164)
Accountants have hourly billing rates which may or may not be presented to the client. I’m at a small firm and I’m billed out at $150 per hour. So for my firm $1,200 would be 8hrs of my time. Sometimes we “eat” time and sometimes we make money on an account. We’ve got individuals we bill more than $1,200, but those are the ones that call 2x per month with some question about something they read in the paper.
I thin kwe should rename the Ponzi scheme to the Bernie Madoff Scheme.
I mean come. Ponzi was a little peanut compared to the all mighty Madoff.
50 billion is 10X the GDP of Albania. Now that’s a scheme. People say why did he do it?
So that he can “immortal”.
Freedy,
elizabeth isnt that bad….. there is a perfectly nice dealer who hangs out on the corner across from one of my clients. Very nice fellow really. His name is Marvin
Apparently the local cops love him, as his presence reduces crime in the immediate area (he’s a big dog i guess) and he tends to act like a buisness man as opposed to a thug…..
http://www.netfxx.com/mfpclub/archive.htm
Great flashback for all of you who remembers my fathers place. Best night there was in high school, saw StephenWolf there on a Monday night, John Kaye showed up by himself, drunk and play with house musicans. Sat at long wooden table full of buds and when John Kaye was between sets he just sat at bar having beer. Course we went there with around a quart of gas in my old dart and ran out of gas going uphill about amile from the club at 3am, some old coot in a pontiac pulls over and take my brother to the gas station to get a bucks worth of gas and we make it home. In spanish class the next morning at 8am my head hurt, I was tired on two hours sleep and my ears were still ringing from sitting next to the speakers, but I loved it. It is a shame that places like that are not still around. I got the tickets from WLIR for free as part of their Monday night concert series. Born to be Wild he belted out for the millionith time but the guy did it with gusto for the 100 people there!
StephenWolf
blink… reads again…. blink
John says:
stone pony going to join my fathers place and cbgb’s in the history books soon.
What’s going to replace it? A hi-rise luxury crack house? How will that dive bar next door survive?
So Springsteen was charging $50 bucks a set when he first started.
Soon after the release of the first album, Springsteen returned to the club for a memorable four-night serie’s as a headliner. Epstein re- calls that, thanks to the tradition of tour support, he got Springsteen and the entire E Street Band for the four-night, eight-shou- run for $400.
#198 – What’s going to replace it?
A re-born Fastlanes?
yeah, I saw Jaime Hendricks play at the stone phony
X
grandpa, is that you?
#201 – I actually lol’d at that.
tosh/x,
Now I’m all confused, are we really talking about Marty Springstead, umpire, and not Bruce Springsteen?
Now I got japanese people making fun of my spelling. My name in japanese means Menospellgood
tosihro_mifune says:
January 27, 2009 at 4:15 pm
StephenWolf
blink… reads again…. blink
Here we go.
New York City fears return to 1970s
Tue Jan 27, 2009 3:48pm EST
By Joan Gralla
NEW YORK (Reuters) – While many U.S. cities worry that their economies are deteriorating to the level of the 1930s Great Depression, New York City fears reliving a more recent decade that features strongly in city lore.
http://www.reuters.com/article/domesticNews/idUSTRE50Q6IH20090127?feedType=RSS&feedName=domesticNews&rpc=22&sp=true
[196] John
Sounds like the old Rusty Nail in Sunderland, Mass. A true roadhouse. Last band I saw there was George Thorogood and the Delaware Destroyers (when they still used the word Delaware, long since dropped).
[164] zack,
If the service is comprehensive, and you are happy with it, that sounds like a reasonable number.
If your business and personal situations have no complex tax issues whatsover, then I may find it a tad high, but I don’t know accountant’s rates very well, and this is NJ after all.
“AIG Said to Pay $450 Million to Retain Swaps Staff”
http://tinyurl.com/cl6d22
– the insurer saved from collapse by government money after losses on credit-default swaps, offered about $450 million in retention pay to employees of the unit that sold the derivatives
-About 400 workers at the financial products unit may get the money
so. let me see.
450e6/400 = 1.125 million/per person.
but sas, they would walk if they didn’t get their 1.125 million. Then where would we be? Do you really want to live in a world that doesn’t grossly reward incompetence? Would we even recognize it?
I know everyone is gone, or is finally starting to work cause its 5, but does anybody know anything about amerisave.com? They have an ad on the main story link on this thread (on yahoo) that tells me I can get a 30 year fixed rate mortgage at 4.125%
4.125%? It even has today’s date on it. Its too good to be true…
Wow. The Dow has been up nearly every day of th B.0. administration. The 20th was a parting shot to bush, after all.
4.125%? It even has today’s date on it. Its too good to be true…
How many points? What fees? Are they even a lender? Are they a lead aggregator who is going to sell your name to 4 dozen hungry brokers?
New thread, move it up!
#164 Zack,
I think you are underpaying.
I prepared many S corp returns at a big firm, a number of years back, and they charged way more than that, even for a simple return.
Zack says:
January 27, 2009 at 3:15 pm
I own a S corp, mainly involved in IT consulting. What is a reasonable amout to pay for tax preparation? I am paying my tax preparer roughly $1200/yr to do my perosnal and S corp taxes including al the quarteryly filings. IS $1200 a reasonable amount or am I overpaying?
Zack: if you can wait until tomorrow, I will ask the person in my office. As a frame of reference, she makes sure to stay current to the market. She charges $175/hour.
yikes says:
January 27, 2009 at 3:08 pm
but yeah, lotta crooks in that game. gotta be careful, obviously. then again, lotta crooks everywhere.
yikes: I think they are representative of the population that they serve. No joke.
PGC says:
January 27, 2009 at 3:07 pm
Yikes, A fee only FP is a good idea if you have the assets to justify it. They have Fiduciary responsibility to you and not themselves or their employer.
PGC: Any CFP has fiduciary responsibility, unless they provide you with specific language that states they do not uphold the requirement of acting as a fiduciary….(a.k.a. undoing the Merrill Lynch rule). Yes, I’m serious. It is done.
“A fee only FP is a good idea if you have the assets to justify it.”
This statement is so qualified that it is a joke. It is the equivalent of saying, you should play pro football if you have the talent to justify a career.
Clotpoll says:
January 27, 2009 at 2:39 pm
According to the JED (John’s English Dictionary):
alamatta
clot: Is alamatta some type of Olive Loaf Italian Bread?
W8TING says:
January 27, 2009 at 2:20 pm
I have a boatload of Citi stock. Rode it all the way down from $56. At first I held onto it b/c of its decent dividend ($2.16/annually at one point). I’m kicking myself for not getting rid of it now that i can’t even get a decent dividend from it. hopefully it’ll go back to $5 so i can get out of it.
I had a client dump a nice several time over six figure dollar sum of C when it was at $20. Compliance came back and broke his trade. He was cleared a couple of weeks ago an received $6.75 a share.
chi (219)-
Former middleweight champ; subject of movie, “Raging Bull”.
chi (219)-
BTW, olive loaf is disgusting.
I think Knob Creek is starting to eat a hole in by brain.
It’s great to hear that prices are falling. I’m buying a home through Taylor Morrison (learn more about them on their website – http://dreambig.taylormorrison.com/?utm_source=bc) and I was surprised to learn how many great opportunities there are for home buyers. Thanks for such a great article – I love reading the New Jersey Real Estate Report!