From the Times of Trenton:
Trenton jobless numbers climbing
When Mayor Douglas Palmer saw the city’s latest unemployment figure, he literally couldn’t believe his eyes.
The unemployment rate hit 17.5 percent in January, soaring from 12 percent a year earlier. More than 3,000 residents entered the unemployment rolls in a city of 83,000, Palmer said.
“How could 3,000 people in Trenton lose their jobs?” he said. “The city only laid off 29 people. The state didn’t lay off anybody, the county didn’t lay off anybody, the schools haven’t laid anybody off yet.”
Trenton’s unemployment rate was the highest among New Jersey’s cities, ahead of Camden at 15.7 percent, Paterson at 15 percent and Newark at 12.5 percent.
Statewide, unemployment was at 7.3 percent in January and then jumped to 8.2 percent in February, just above the U.S. rate. The federal Bureau of Labor Statistics will release February figures for cities next week.
…
The figures also show county job losses in a range of private industries. The shrinking of fields like construction, retail and domestic work are likely having a disproportionate impact on lower-skilled Trenton residents, said James Hughes, dean of the Edward J. Bloustein School of Planning and Policy at Rutgers University.“The demographic sectors hit hardest so far tend to be younger workers, particularly teenagers and those with lower skill levels and education levels,” he said.
“So as the economy contracts, a lot of the job losses could be impacting really more unskilled jobs,” he said.
From the NYT:
Banks Starting to Walk Away on Foreclosures
Mercy James thought she had lost her rental property here to foreclosure. A date for a sheriff’s sale had been set, and notices about the foreclosure process were piling up in her mailbox.
Ms. James had the tenants move out, and soon her white house at the corner of Thomas and Maple Streets fell into the hands of looters and vandals, and then, into disrepair. Dejected and broke, Ms. James said she salvaged but a lesson from her loss.
So imagine her surprise when the City of South Bend contacted her recently, demanding that she resume maintenance on the property. The sheriff’s sale had been canceled at the last minute, leaving the property title — and a world of trouble — in her name.
“I thought, ‘What kind of game is this?’ ” Ms. James, 41, said while picking at trash at the house, now so worthless the city plans to demolish it — another bill for which she will be liable.
…
The so-called bank walkaways rarely mean relief for the property owners, caught unaware months after the fact, and often mean additional financial burdens and bureaucratic headaches. Technically, they still owe on the mortgage, but as a practicality, rarely would a mortgage holder receive any more payments on the loan. The way mortgages are bundled and resold, it can be enormously time-consuming just trying to determine what company holds the loan on a property thought to be in foreclosure.
In Ms. James’s case, the company that was most recently servicing her loan is now defunct. Its parent company filed for bankruptcy and dissolved. And the original bank that sold her the loan said it could not find a record of it.
“It is what some of us think is the next wave of the crisis,” said Kermit Lind, a clinical professor at the Cleveland-Marshall College of Law and an expert on foreclosure law.
Using Kettle’s U-6 Unemployment Estimator ™ of 1.77x, Trenton U6 unemployment is approximately 30%.
Unemployment measures, for reference.
# U3: Official unemployment rate per ILO definition.
# U4: U3 + “discouraged workers”, or those who have stopped looking for work because current economic conditions make them believe that no work is available for them.
# U5: U4 + other “marginally attached workers”, or those who “would like” and are able to work, but have not looked for work recently.
# U6: U5 + Part time workers who want to work full time, but can not due to economic reasons.
“How could 3,000 people in Trenton lose their jobs?” he said. “The city only laid off 29 people. The state didn’t lay off anybody, the county didn’t lay off anybody, the schools haven’t laid anybody off yet.”
Looks like there’s plenty of room for government to grow.
“New Jersey voters have a history of approving school budgets. But with the bleak economy and state unemployment at its highest level since 1994, some wonder whether this could be the year that school budgets sink en masse when voters in 549 school districts (of a total 616) go to the polls April 21.”
http://www.courierpostonline.com/article/20090330/NEWS01/303300002
Obama Denies Funding to Automakers; What Happens to $1T in CDS?
Credit Event Triggered
One last point: This will be a “credit event” triggering payouts on credit default swap bets.
I have reported before that GM has a $trillion or so in credit default swaps written on it (but my information on this is well over a year old). If banks stocks rally tomorrow (or even if they simply do not collapse), you will know that banks are fully hedged or on the right side of those swaps.
However, given the swaps dwarf GM bonds, it is virtually guaranteed that someone is on the wrong side of them.
http://globaleconomicanalysis.blogspot.com/2009/03/obama-denies-funding-to-automakers-what.html
Interesting, the Government will let GM & Chrysler fail, with all those Private Sector Product jobs, while pouring billions into Public Sector Dis-Service jobs, and Foreign Country Bailouts. They can’t be that stupid, so one must assume the Government is now controlled by the enemy. Guess Kruschev was right, about burying us from within. End of Days.
If you take the above Mish article along with the AIG scam article Kettle posted yesterday you get a better understanding how the government is moving money around and making decisions behind the scenes to protect these banks and manipulating the market to put them into a position to make money on dying companies (GM, Chrysler, AIG).
Essentially the government is using the CDS market to feed money to the banks by ensuring they are positioned properly when these trades are unwound and the plug is pulled on these companies.
Who loses? Taxpayers who shelled out the money to prop up AIG, GM and Chrysler for months while these trades are organized behind the scenes.
Well, believe it or not, there is a state government that is even more out of touch with reality than the collection of fools running the show in Trenton. Try this on:
http://mobile.nytimes.com/article?a=350829&single=1&f=22
Just a quick comment, I went to an open house over the weekend and I just wanted to point out that there were about 10 young couples looking at this cedar grove split level going for 450K. I did not believe there was going to be that big of a turnout, but i was wrong.
Time for Fiscal Austerity
The Treasury Secretary said Sunday that some banks will need large amounts of financial aid. Geithner’s comments seemed to imply that his recently announced rescue plan for the banking industry is only a first step and that additional government funds will be needed. Markets responded with a massive selloff in Asia and the Dow futures are down heading into Monday morning.
I am getting feeling that today will be one of those black days.
Brian says:
March 30, 2009 at 8:28 am
Just a quick comment, I went to an open house over the weekend and I just wanted to point out that there were about 10 young couples looking at this cedar grove split level going for 450K. I did not believe there was going to be that big of a turnout, but i was wrong.
B-Boy: after all this time and given all the little goodies tossed at first home buyers, why wouldn’t someone drink the kool aid; no joke, there is pant up demand; bear in mind, this is fleeting; if you shoot up enough adrenaline and cocaine into a beheaded chicken, it will run around…..
#9
Just chalk it up to spring fever.
Just a quick comment, I went to an open house over the weekend and I just wanted to point out that there were about 10 young couples looking at this cedar grove split level going for 450K. I did not believe there was going to be that big of a turnout, but i was wrong.
The price was attractive enough to get you to show up, wasn’t it?
Cedar Grove has got just about the most attractive taxes in all of Essex County, and that split level would have been asking well over $500k two years ago. Vanberg is a nice street and that house has got plenty of curb appeal. Doesn’t hurt that the house is in good shape and has a style/interior that will appeal to many. This isn’t an ugly 70s pine paneled split, the place actually looks nice.
There are plenty of folks that can afford to buy, but they won’t unless they find a price that makes sense. You aren’t the only one out there looking.
Grim 2
thanks for the mention, :)
Brian (9)-
Lots of folks out there, heads full of stories about cheap mortgage money and tax credits.
It will dissipate by Memorial Day. Trust me. I’m in the trenches.
The next few weeks’ action will be the entirety of the meaningful activity of the 2009 NJ RE market.
Mind you, whatever happens between now and Memorial Day will be a pimple on a rat’s ass.
The market is dead and rotting.
I’d love to know how many people thinking of buying think the $8,000 tax credit is a tax deduction.
I bet it’s 9 out of 10.
Heck, I almost showed up at that open house Brian.
It appears the new growth area for my business will be people who own 700K+ homes who “suddenly” decide to divorce.
I guess I should be shocked at the calls coming in, and how similar the stories are.
Also amazing how all these guys claim money/jobs have “nothing to do” with the divorce. Also funny how fast they offer that up…without my asking the question.
It’s the end of the world as we know it, and I feel fine.
Out now to till the gardens of human misery.
If you see me at an open house, get your gat.
What is the #1 reason people divorce?
re #21 – panic do to being broke.
Bernanke Treasury Plan Drives Pimco to Mortgage Bonds
http://www.bloomberg.com/apps/news?pid=20601109&sid=awSxPMGzDW38&refer=exclusive
“Mark-to-Market Lobby Buoys Bank Profits 20% as FASB May Say Yes”
“A final vote on the resolutions, which would apply to first-quarter financial statements, is scheduled for April 2.”
Will this then affect the numbers used for stress test? Doesn’t this play havoc with the PPIP agenda?
Can the government just keep its hands off of something for 10 minutes.
Bankers to get keys to kingdom
A key test as to whether central banks can go back to their accustomed knitting is when it comes time to unwind their balance sheets and take out the cash from the system. What if legislators object, arguing the economic recovery has yet to kick in?
“If the central bank feels it doesn’t have the authority to stick its finger up at the state, then you do have the danger of moving toward Zimbabwe,” warned Mr. Hilton, of the British think-tank.
That south African country has been subjected to hyperinflation, the result of its central bank forced to finance the public spending through directly acquiring Zimbabwean bonds from the government.
Chicago – Gottschalks goes into bankruptcy court later today. Our only hope is a Chinese buyer. All other bidders are liquidators. The local paper says we won’t know the results until Wednesday. If you hear anything, could you post it? Thanks.
The Big Takeover
The Mall at the Source defaults on $124M loan.
“The owners of the Mall at The Source in Westbury have defaulted on a $124-million interest-only balloon loan, according to a Manhattan-based firm that tracks commercial mortgage-backed security transactions.”
http://www.newsday.com/business/ny-bzmall2812594563mar28%2C0%2C1079473.story
Love these comments from a Madison listing. It makes me want to drop everything and overpay. Solid?
“REM: Solid, impressive colonial classic in walk-everywhere Hill-area spot. Adaptable spaces, high ceilings, great floorplan. Easy walk to town, NYC train, all schools. Good 3/10-acre lot, fenced rear yard.
ADD REM: A member of the highly-regarded Academy Road Association, an awfully nice house that’s easy to underestimate from the street. It will be well worth your time to take a minute and go inside. Great sense of light and space. Open floor plan. Excellent garden and play space good for pets and others. It’s a house that’s comfortable in its own skin. It makes folks know that they’re home safe. You deserve a house that makes you happy. You deserve this one.”
#29 stu: Hurry, hurry!!!
3b:
I enjoy your overpriced-listing posts. Keep it up when you have free time, good for multiple chuckles.
Honey! Stop the car!
Clotpoll says:
March 30, 2009 at 8:57 am
What is the #1 reason people divorce?
clot: small peanut-sized fahloom-bwueh-bwueh
SO the Mayor is implying that everyone that lives in Trenton is a government employee? If 17% are unemployed, then 83% of the city’s residents work for the Government.
Cindy says:
March 30, 2009 at 9:13 am
Chicago – Gottschalks goes into bankruptcy court later today. Our only hope is a Chinese buyer. All other bidders are liquidators. The local paper says we won’t know the results until Wednesday. If you hear anything, could you post it? Thanks.
‘course….
#34 – Are you surprised?
Boxwood Elder Bug infestation….any ideas? Short of pick up the phone and call the landlord…..remember, I have a pregger and a 2-year old…..
From MarketWatch:
General Growth says still working with bond holders
Real estate company General Growth Properties Inc., which is fighting to avoid bankruptcy and is behind on its debt and payment deadlines, on Monday said it is continuing discussions with holders of the Rouse “TRCLP” unsecured notes. General Growth said the group of bond holders did not achieve the minimum acceptance levels for the previously announced consent solicitation, which expired on March 27. Some of General Growth’s lenders have already moved to foreclose on the company’s mall properties.
What New Jersey Makes, Trenton Takes.
#31 zieba: Thanks. I find it very theraputic for myself as well.
#17 clot:I bet it’s 9 out of 10.
Your too generous.
OT tax stuff – From Congressional Research Service, which analyzed the two Bills of Attainder being debated on the Hill:
” . . . the legislative history seems to contain comments that would indicate the existence of a
congressional intent to punish those individuals receiving bonuses. Consequently, it would appear
that while both of these bills may raise constitutional issues, H.R. 1586 would raise the most serious constitutional concerns.”
Ya heard it here first folks—I would depose the Congress and impeach their cred with their own words, straight from the Congressional Record. I surely hope some has the stones to dig in and tell the feds to fcuk off, I’m keeping the bonus.
[21] clot,
“What is the #1 reason people divorce?”
Marriage!
Grim,
Nice version of the “Trenton Makes Bridge” sign
[39] Grim,
A great political stunt, a la Cal Tech, would be to create a giant screen that covers the neon “Trenton Makes” sign, and imposes your message instead.
With the tag line “Sponsored by NJREReport.com”
Naturally, I would intercede with the A.G.’s office on your behalf. ;-)
From the AP:
Some N.J. towns ask state help with tax break for disabled veterans
Some New Jersey towns are asking the state to reimburse them for the major tax breaks they’re required to give some veterans.
Totally disabled veterans are excused from paying the highest-in-the-nation property tax. Officials in some towns said the veterans deserve a break — but it should be the state that pays for it.
New Jersey already reimburses local governments for the revenue lost for other tax reduction programs for other veterans, senior citizens and the disabled.
Gloucester Township Mayor Cindy Rau-Hatton called the program an unfunded mandate. Her Camden County town loses more than $120,000 per year in revenue because of the exemptions for 95 veterans.
More than 6,000 veterans statewide get the exemptions.
ChiFi: It appears they are harmless. Do you have any Maples on your property?
“http://www.unexco.com/boxelder.html”
[19] Clot,
You forget that I postulated earlier on this board that HENRYs may delay marriage because the Dems tax agenda essentially puts the marriage penalty on steroids. Two high earners that are over teh 250K threshold can divorce and suddenly that top tax tier threshold is 400K. Further, there are deductions that you get back, or can shift to the lower-earning “spouse.” Control is kept through an amicable, prepackaged divorce and decree that doesn’t cost much to implement, and has further tax advantages. For example, Dad can agree to a high alimony rate and get a deduction whilst low tax wife gets income. This is classic income shifting. Further, shift all of the phased out deductions to wife, and keep above the line deductions for hubby, further maximizing them. There are other tax advantages to not being married but this is not a marital or tax advice blog.
I doubt that this factors into what you are seeing more than a fraction, but it does factor in at some level. The real test will be if realtors start to see an uptick in unmarried couples jointly purchasing homes in HENRY towns. That will be proof that the tax policies are causing what Joint Committee types call “distortion.”
The Housing Bubble Started in 1979: The 3 Stages of the Housing Bubble. From Birth to Bust. Housing Collapse is 30 Years in the Making.
Chifi Short of knowing what type of bug Citonella spray if you can find it this type of year is non-toxic and works. Cigarette butts soaked in water and transferring the nasty concoction to a spray bottle works as well. I would recommend the citronella as the better alternative.
Can someone provide the address of this home in Wayne
MLS# 2664094 I want to see if it is flood and the possibility of proposing a lowball. Externally it looks nice.
[49] sg
Nice piece. Picks up on the psych factors. Does not go much into the pre-history that much as to how the Carter years (and the Nixon-Ford years to a lesser extent) set the table for a change in pyschology, investment and property. One could also argue that the creation of the investor class, through retirement plans and IRAs, also contributed.
Well, back to work on my number one asset because my money isn’t working for me.
From MarketWatch:
White House moves to restructure auto makers
Shares of General Motors fell almost 30% on Monday after the White House ousted the ailing auto maker’s chief executive, rejected its turnaround plan and said the best path to restoring the company’s health might lead through bankruptcy.
The government also rejected the restructuring plan submitted by GM rival Chrysler LLC and ordered the company to form an alliance with Italian car giant Fiat as a condition for receiving more government aid. It said Chrysler, too, might have to declare bankruptcy to survive.
“How could 3,000 people in Trenton lose their jobs?” he said. “The city only laid off 29 people. The state didn’t lay off anybody, the county didn’t lay off anybody, the schools haven’t laid anybody off yet.”
And it will always be this way until the last fool hasn’t a penny left.
From the WSJ:
Mortgage Defaults, Delinquencies Rise
Defaults on home mortgages insured by the Federal Housing Administration in February increased from a year earlier.
A spokesman for the FHA said 7.5% of FHA loans were “seriously delinquent” at the end of February, up from 6.2% a year earlier. Seriously delinquent includes loans that are 90 days or more overdue, in the foreclosure process or in bankruptcy.
Since the collapse of the subprime mortgage market in 2007, most home loans for people who can’t afford a sizable down payment are flowing to the FHA. The agency, which is part of the U.S. Department of Housing and Urban Development, insures mortgage lenders against the risk of defaults on home mortgages that meet its standards. FHA-insured loans are available on loans with down payments as small as 3.5% of the home’s value.
The FHA’s share of the U.S. mortgage market soared to nearly a third of loans originated in last year’s fourth quarter from about 2% in 2006 as a whole, according to Inside Mortgage Finance, a trade publication. That is increasing the risk to taxpayers if the FHA’s reserves prove inadequate to cover default losses.
As of January, the cities with the highest FHA default rates in January were Punta Gorda, Fla., at 18%; Detroit, 15.6%; Flint, Mich., 15.1%; Fort Myers-Cape Coral, Fla., 15%, and Elkhart-Goshen, Ind., 12.1%, according to a HUD report.
Foreclosed FHA homes owned by HUD totaled 39,687 in January, up 22% from a year earlier.
Subprime is soooo 2007, FHA is the new black.
Took years for subprime to blow up catastrophically, FHA got there in mere months.
ChiFi, re box elder
I found this:
http://www.extension.umn.edu/distribution/horticulture/DG0998.html
most search results don’t seem to show them as dangerous to trees, more a short lived nuisance.
I’d be careful using any tobacco leaf based formulation because of the risk of infecting other plants with tobacco mosaic virus which can ruin ornamental plants. [sorry, painhrtz]
Hope this helps.
sl
49.SG says:
March 30, 2009 at 9:55 am
The Housing Bubble Started in 1979: The 3 Stages of the Housing Bubble. From Birth to Bust. Housing Collapse is 30 Years in the Making.
Good article linking start of bubble’s to end of product economy and start of service economy. Service Economy’s, by nature, are not Real, and require bubbles.
Painhrtz #50,
47 Woodlot Rd.
SL duh forgot about TMV, I should know better.
thanks Dink
From CNBC:
UBS Shares Fall as More Writedowns, Job Cuts Seen
Shares in UBS fell sharply again on Monday as speculation grew the Swiss bank is poised to announce further job cuts and hefty writedowns, including on asset categories that have so far avoided the spotlight.
Swiss newspaper Sonntag said on Sunday that UBS, the world’s largest wealth manager in terms of assets, would cut a further 8,000 jobs and write down at least another $2 billion on illiquid assets.
Is There Even Demand For New Debt?
Brian says: I went to an open house over the weekend and I just wanted to point out that there were about 10 young couples there. I did not believe there was going to be that big of a turnout, but i was wrong.
Brian, i was on here in Jan saying the exact same thing about open houses near me. I even noticed alot more houses selling. Purely based on emperical evidence, I was certain that the market was starting to recover. Surprisingly, yoy jan sales were down significantly.
Moral of the story is that the length of lines outside open houses tell us nothing about the volume or prices of home sales.
Brian,
#9
So what if a lot of people showed up…Open Houses are free!!! Real test is if any of those or even multiple of those who showed up make an offer!!!
The Quiet Coup
The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.
Its pretty long article.
““How could 3,000 people in Trenton lose their jobs?” he said. “The city only laid off 29 people. The state didn’t lay off anybody, the county didn’t lay off anybody, the schools haven’t laid anybody off yet.””
Is there any more telling a statement? No appreciation for the role of PRIVATE employment.
Brian,
It’s Spring. We saw this same pop last year at this time. In another month, I would expect these anxious buyers to retreat back to their nests.
Stu,
“Nests”? More like bunkers.
#67 Stu: So, no hurry, hurry??
sg,
numerous figures throughout history have warned of allowing the banks/money changers to control or have significant influence in government.
We have ignored those warnings and been seduced by the promised riches of “financial Innovation”
Now we must pay the consequences. The financial collapse will not be corrected until the financiers are removed from government and the control of currencies is returned to representative governments as opposed to private banking cartels
Shore,
bunkers? i might be interested, whats the MLS?
Shares in UBS fell sharply again on Monday as speculation grew the Swiss bank is poised to announce further job cuts and hefty writedowns, including on asset categories that have so far avoided the spotlight.
Grim,
This is NOT true. Bi and the s&p said that there will no more writedowns.
From the hedged bet article on debt demand. This sentence stood out from the rest of the arguments that were essentially a rehash of much debated here.
“The obvious question is whether there is any reason to expect American households to fix their balance sheets in the near future so that they are creditworthy?”
What do you all think? Are people even going to bother to pay off their own debt or will this go ‘toxic’ as well?
Is there a demand for new debt? Of course there is — amongst those who are not worried about paying it back.
The O man has named his point person on tax policy.
http://law.usc.edu/contact/contactInfo.cfm?detailID=216
No centrist, she. Well to the left of most on his “hard issues” team. Will look for a lot of new ways to redistribute wealth and will dust off a lot of ivory-tower, “social justice” type commentary to justify redistribution of wealth.
Stu, SHore,
thats the great irony in all of this. The governments of the world are trying to force feed debt to populations that do not want it. We are the goose and the government is trying to prep a fresh batch of Foie gras
re #62 – SG I would think not. The economic turmoil we are in now will again turn a generation of Americans into savers and frugal consumers that look at total prices of a purchase including interest and not just the monthly payment. People already have been avoiding debt like the plague by getting rid of car leases, cutting cable channels and getting the lower payments on cell phones and other monthly recurring charges like XM radio.
It still remains to be seen if this crisis will ever turn this country into a net saver like Japan but we have already started on the road to living with less.
“Are people even going to bother to pay off their own debt”
Why bother? After all, the government will come bail-out the indebeted; well, the government or inflation.
Nom…
I think the “redistribution” discussion is over — at least in the sense you imply. Most of the redistribution has been happening upwards — from tax payers to (very) rich bankers.
S
B.O. about to go on the air to talk auto bailout.
If government is paying for both, Chrysler and GM should be forced to merge.
It sounds like they are giving GM 60 days, before it gets thrown into BK. It sounds like they do not want people thrown out of work before the weather is warmer.
All: thanks for the Elder bug advice…..I know they are harmless, but they are flying roaches I far as I’m concerned. For me it’s Indiana Jones and snakes…..
Subprime was the last gasp of the housing bubble. There was a lot of easy credit available out there and too few eligible borrowers (as per the original criteria), that banks decided to expand their net to subprime borrowers.
The main culprit of this debacle is unchecked housing appreciation. Classic inflation of assets, a lot of easy credit chasing fewer houses/borrowers. It took a while for the builders to ramp up production and now we are facing an inventory glut and a scarcity of borrowers/credit.
The gubmint is now trying again to lend easy money via FHA, try to reflate the bubble one more time. Good luck with that, it is impossible to inflate the same bubble twice.
Stu,
Fedco could get some venture capital funds to organize two new car companies and then force GM and Chrysler to sell their IP and plant to the new entities. They could start off strong.
I got it…..Depeche Mode is the non-toxic cure all. I will take the sound system and blast it at the sides of the house. They will all fly away when I fire up Corrupt…..I am renaming these things the Clotbugs….
2 Cents says:
March 30, 2009 at 11:06 am
Subprime was the last gasp of the housing bubble.
2 cents: I made the call here at the time. The last gasp of the housing bubble was the investment banks buying out the mortgage originators and taking them in-house in 2005-2007.
Calling on dealers, unions, creditors to — in essence — treat GM and Chrysler as if they are BK and make the concessions that would be forced on them by BK Court — or watch the USG allow them to slide into BK.
#66 Shore guy- I thought the same thing. This Mayor is obviously part of the problem. He can’t fathom that the public sector lives off of the private sector.
It just shows you how most elected officials perceive thier little fiefdoms.
The article about the school budgets was eye opening as well. Taxpayers will vote down a budget and it goes to a review board to institute the changes they see fit? Wow
From the APP:
Job cuts mean more office space available in Manhattan
The amount of Manhattan office space available for rent in the first quarter rose to 12 percent and rents fell as companies fired workers, FirstService Williams said.
The share of empty space plus occupied offices available for lease climbed from 10.9 percent at the end of 2008, the property broker said in an e-mailed statement today. The average rent sought by landlords fell to $65.18 a square foot from $74.49 in the fourth quarter, the company said.
“Large financial institutions that are major users of space in the city had earlier announced both employment reductions and goals to utilize less space per employee,” Mark Jaccom, chief executive officer of FirstService Williams, said in the statement.
Bam!
Obama dropped the “bankrupcy” bomb and immediately proceeded to explain the procedure in layman terms.
Why is the chosen one reading from a tele-prompter?
From HousingWire:
Mortgage Crisis a Prime Problem, Data Shows
As the number of troubled borrowers continues to grow within the U.S. mortgage market, two trends are becoming amply clear: a focus is emerging on loan modifications, and the housing mess is working its way well into prime credit categories. Both points were underscored by a press statement Monday morning from HOPE NOW, a private sector alliance of mortgage servicers, non-profit counselors, and investors.
The group touted a 9 percent month to month increase in the total number of loan modifications during February, from 123,409 in January to 133,836 in February; but that increase was offset by a 11.3 percent decline in repayment plans. The result was that February’s total “workout plans” — repayment plans and loan modifications — were down slightly in February to 244,474 from January’s 248,175.
…
Foreclosure sales soared in February, HOPE NOW reported — reaching 87,346, compared to 68,114 in January, as various foreclosure moratoria wore off and servicers restarted their proverbial engines. The pace of foreclosures in the first two months of 2009 suggest a 52 percent increase in foreclosures is likely to be seen in the first quarter of this year compared to 2008’s totals.
Almost all of that increase is being driven in the prime credit sector, which saw foreclosures jump from 30,413 in January 2009 to 55,530 in February — in fact, February’s prime foreclosure totals were almost equal to the 60,699 prime foreclosure sales reported by HOPE NOW for the entire first quarter of 2008. During the same time frame, subprime foreclosure sales have steadily decreased.
And despite the increases in raw numbers, troubled prime borrowers remain far less likely to see their loans modified, a trend HousingWire first identified months ago. During February, 39.7 percent of loan workouts for prime borrowers were loan modifications; in contrast, 66.5 percent of subprime loan workouts were loan modifications. Servicers do appear to be focusing on the disparity, however — the prime loan modification percentage for February represents the highest monthly modification-as-a-percentage-of-workouts ratio since HOPE NOW first began reporting data in July 2007.
Enough with the teleprompter jibes already! You are insulting your own intelligence by bringing that up.
What is the difference between reading from a page and reading off of a teleprompter?
There are multitude of other reasons to be critical of Obama, but complaining about a teleprompter is just childish.
From Channel Register:
Rumour: Sun pink slips to fly today
The word on the street this morning is that the second part of the 5,000- to 6,000-person layoff by struggling server and operating system maker Sun Microsystems will kick in today.
…
In late January, about 1,300 people were let go as part of the November layoff round, reportedly cutting across all employee levels and all product lines.
Today’s rumoured layoff is a much bigger cut, and the scuttlebutt is that Sun is aiming for that 6,000 layoffs figure. That would put Sun’s payroll after the layoffs at around 28,800 employees worldwide.
I bought GM at $2.50 and sold it @ $3.00. Easiest money I ever made. I love the chosen one. I figured even in bankrupsty he will sell GM to these bozos and PPT team will back him up.
I love this country.
From the The Atlantic Article. This is last summary.
In my view, the U.S. faces two plausible scenarios. The first involves complicated bank-by-bank deals and a continual drumbeat of (repeated) bailouts, like the ones we saw in February with Citigroup and AIG. The administration will try to muddle through, and confusion will reign.
Boris Fyodorov, the late finance minister of Russia, struggled for much of the past 20 years against oligarchs, corruption, and abuse of authority in all its forms. He liked to say that confusion and chaos were very much in the interests of the powerful—letting them take things, legally and illegally, with impunity. When inflation is high, who can say what a piece of property is really worth? When the credit system is supported by byzantine government arrangements and backroom deals, how do you know that you aren’t being fleeced?
Our future could be one in which continued tumult feeds the looting of the financial system, and we talk more and more about exactly how our oligarchs became bandits and how the economy just can’t seem to get into gear.
The second scenario begins more bleakly, and might end that way too. But it does provide at least some hope that we’ll be shaken out of our torpor. It goes like this: the global economy continues to deteriorate, the banking system in east-central Europe collapses, and—because eastern Europe’s banks are mostly owned by western European banks—justifiable fears of government insolvency spread throughout the Continent. Creditors take further hits and confidence falls further. The Asian economies that export manufactured goods are devastated, and the commodity producers in Latin America and Africa are not much better off. A dramatic worsening of the global environment forces the U.S. economy, already staggering, down onto both knees. The baseline growth rates used in the administration’s current budget are increasingly seen as unrealistic, and the rosy “stress scenario” that the U.S. Treasury is currently using to evaluate banks’ balance sheets becomes a source of great embarrassment.
Under this kind of pressure, and faced with the prospect of a national and global collapse, minds may become more concentrated.
The conventional wisdom among the elite is still that the current slump “cannot be as bad as the Great Depression.” This view is wrong. What we face now could, in fact, be worse than the Great Depression—because the world is now so much more interconnected and because the banking sector is now so big. We face a synchronized downturn in almost all countries, a weakening of confidence among individuals and firms, and major problems for government finances. If our leadership wakes up to the potential consequences, we may yet see dramatic action on the banking system and a breaking of the old elite. Let us hope it is not then too late.
If unemployment is raising, why is it that I find it so difficult to find childcare without breaking my bank. Something’s not right..
Daycare for my 2 kids for summer sets me back by $5000 (after tax dollars). Ugghh
If unemployment is raising, why is it that I find it so difficult to find childcare without breaking my bank. Something’s not right..
You really want an ex-subprime banker touching your kid?
Ewww, skeeevola.
“Why is the chosen one reading from a tele-prompter?”
This is the reason: The WH folks are trying to walk a narrow line and communicate very specifice messages to several different groups. The statement B.O. delivered is full of very-carefully-crafted language and, as good a public speaker as he is, they do not want a single missed word or misplaced comma from altering the message or causing misunderstandings of what was said. I am not a fan of B.O. but, using the TelePrompter is smart.
From LegalTimes:
Fried Frank Lays Off 99, Adjusts Incoming and Summer Associate Schedules
Fried, Frank, Harris, Shriver & Jacobson announced via a firmwide e-mail this morning that it is laying off 41 associates and 58 administrative staff, according to a firm spokeswoman. The legal blog Above the Law first reported the cuts, and the Fried Frank spokeswoman Paula Zirinsky confirmed the authenticity of the e-mail that appeared on the blog.
The layoffs will affect Fried Frank’s New York and Washington offices. The spokeswoman would not break down how many people in each office were affected.
Single family in Chatham for under 300k? Might this be the official start of the end of days? ok, train’s in the back yard and there’s a great view of high tension wires but still…
“Why is the chosen one reading from a tele-prompter?”
Cause unlike his predecessor, he actually knows how to read.
[79] sastry
Agree that upflow in form of bailouts have occurred, much to the disgust of all. If you want to call it wealth redistribution, I will go along with that.
Do not agree that this is the end of the story, but the first chapter. The gov always can collect on its debts, and the source for collection will undoubtedly be those left standing, whether bankers or not. Garrett’s appointment confirms that tax policy will follow a Rawlsian model that strives use the tax code to correct perceived historical inequities, and, following that, to leave everyone with the same disposable income after necessities are paid.
The problem is (and this is endemic in our tax structure), those that have looted (to use the popular term, even though I struggle to try to figure out what they can be charged with) and left with their winnings are completely immune from the redistribution to come. This leaves the wage slaves, who had little do to with the debacle, to pay for the new debts. IMHO, it is further proof that ours is an inherently unfair tax system.
Further, I think it is a huge gamble because, unless you radically change the tax structure, O is both eliminating wealth and seeking to tax it. His policies will, IMHO, have a depressive effect on wealth generation, and will regulate entire methods out of existence (at least here), and will cause income destruction at the highest earning levels, yet he also seeks to tap into those high levels of income for his budget priorities. In fact, I can make a persuasive case that it will INCREASE the wealth divide between the top 1% and the rest of the country. Warren Buffett can make his taxes go down if he wants. Mine will go up. Yours will too but you won’t see it in your W-2. Sound fair?
If you want, we can debate tax policy at a GTG; You and Victoria disagree with me regularly but at least you don’t resort to ad hominem garbage to make your points. It would be fun, and hopefully informative. But for now, I think we will have to agree to disagree when it comes to tax policy and the history of how we got to this point.
Interesting….
Russia backs return to Gold Standard to solve financial crisis
Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.
http://www.telegraph.co.uk/finance/financetopics/g20-summit/5072484/Russia-backs-return-to-Gold-Standard-to-solve-financial-crisis.html
Where was the outrage when GWB couldn’t even utter a coherent sentence WITH a teleprompter? Or was that yet another case of “Everything is OK if you’re a Republican?” (including torture, mass wiretaps of everyone’s communications, putting us into debt for a generation, etc.)
lol! Just ask his teleprompter via blog, facebook and twitter.
http://baracksteleprompter.blogspot.com/
Congress considers ‘cash for clunkers’ proposal
Owners of old gas hogs would get $4,500 to have them taken off the road
WASHINGTON – Congress is mulling a proposal to pay people to get rid of those old gas guzzlers sitting in their driveways.
Under legislation introduced Wednesday in both the House and Senate and called the “Cash for Clunkers” program, drivers could get vouchers of up to $4,500 when they turn in their old fuel-inefficient vehicles for scrapping and buy vehicles that get good gas mileage.
http://www.msnbc.msn.com/id/28663037/
#39 grim –
I grew up in Lawrence… when I was a kid we said “Trenton Uses what the World Refuses.”
But yours is economically correct.
I’m sure that there are plenty of state workers who live inside Trenton’s borders, but all the ones I know live in the ‘burbs. and from what I can tell, most of the people they work with also live outside the city.
I’ve always wondered if Trenton would be as bad as (or worse than) Camden if the state government wasn’t there.
Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.
This issue could lead us into Albanian governament.
As far as B.O. he is on the right path and showing some backbone when dealing with Detroit.
I certainly wish he would fire weisel face and replace him with Pauly O’neal.
he’s our best weapon against russia and china reserve currency issue
With regards to open houses:
When I go to open houses I expect freshly backed Chocolate Chip Cookies on the table!!!
I went to two open houses this weekend and there was NONE!!!
I want my d@mn cookies!!!
(jk – I did not go to open houses. Mainly because if I did go, I’d be only looking for cookies… not for houses…)
A panel appointed by Gov. Jon Corzine to examine immigration policies in New Jersey today issued a number of recommendations handling undocumented immigrants, ranging from a moratorium on raids to creating an immigrant welcome center.
The panel also said the state should allow undocumented immigrants in New Jersey to drive legally, though only if the U.S. Department of Homeland Security approves. Corzine expressed less personal support for the driving proposal as he released the report at a news conference in Jersey City.
APGov. Jon Corzine
Other parts of the report advise the state to let undocumented immigrants benefit from lower in-state tuition rates for state universities; to toughen penalties for employers caught paying workers off-the-books; to stress that its public school systems not seek social-security numbers from parents of potential students; and to establish an immigrant welcome center, “either physical or virtual.”
It also calls for a moratorium on raids by Immigration and Customs Enforcement on immigrants here illegally until immigration reform passes.
With the state and country in economic crisis, it is far from certain that any of the recommendations will be made law. Still, the report is expected to be highly controversial, with critics sure to argue that its recommendations provide multiple incentives for the estimated 400,000 immigrants in New Jersey stay here illegally to stay rather than return to their home countries.
http://www.nj.com/news/index.ssf/2009/03/corzines_panel_supports_drivin.html
You have got be kidding me.
Justin says:
March 30, 2009 at 12:23 pm
Congress considers ‘cash for clunkers’ proposal
Owners of old gas hogs would get $4,500 to have them taken off the road
WASHINGTON – Congress is mulling a proposal to pay people to get rid of those old gas guzzlers sitting in their driveways.
Is it for real?? Is it time to go get 100$ 30 year old gas guzzler from junk yard??
re:109
the State of New Jersey owns about a third of the city of Trenton’s 7.5 square miles, much of which was used to make parking lots for suburban employees. Factor in government buildings, including county and federal properties, as well as nonprofits and churches, over half the city is tax exempt.
The state basically has looted the city for the past 40 years.
Re (75) comrade nom deplume says:
March 30, 2009 at 10:54 am
The O man has named his point person on tax policy.
FYI, Garrett was a member of former President George W. Bush’s 2005 tax advisory panel.
chicagofinance says:
March 30, 2009 at 9:30 am
Boxwood Elder Bug infestation….any ideas? Short of pick up the phone and call the landlord…..remember, I have a pregger and a 2-year old…..
in your rental? already?
shoulda bought a place!
Anyone remember a scatter plot of loans for Jan/Feb in the Northern-NJ region that showed FHA vs other sources, contract sale price and mortgage amount?FHA are going into foreclosure fast and that graph demonstrated just how important FHA loand are to the market. The data points were different for different types of loans.
Thanks in advance to the soul who knows the graph I am talking about.
Gerry
gary says:
March 30, 2009 at 11:23 am
Why is the chosen one reading from a tele-prompter?
i dont understand the fascination with reading speeches from a tele-prompter. what does it matter if he uses one or not?
just curious.
“A panel appointed by Gov. Jon Corzine to examine immigration policies in New Jersey today issued a number of recommendations handling undocumented immigrants, ranging from a moratorium on raids to creating an immigrant welcome center”
Alap,
Surely this is from the Onion. I sure hope it is.
I predict that GM will end up in Ch 11 due to unwillingness of UAW to make the necessary cuts. UAW ultimately believes the O-man has their back and will take this to the brink.
Jolly Olde England in a blue ribbon Bergen Co train town.
Make this wonderful Tudor Colonial home yours today.
The pictures tell it all. Attention to detail, with the must have granite and stainless steel, in a kitchen that says small (tiny), but with a sophisicated coziness.
Notice the sought after 2 car garage. Perfect for the boat!!!
No pictures of the backyard?? Well um, ah, hmmm, jeez, well it does not have a backyard. You could fit a small BBQ, and 2 garbage cans in the back strip, (notice the easy access from the kitchen), but no, no there is not a back yard.
But honestly greedy buyers should you really expect a backyard with an asking price of 495k!!!!!
Hurry, hurry!!!
http://www.njmls.com/cf/details.cfm?mls_number=2908796&id=999999
April Fools early?
Shore Guy says:
March 30, 2009 at 12:58 pm
“A panel appointed by Gov. Jon Corzine to examine immigration policies in New Jersey today issued a number of recommendations handling undocumented immigrants, ranging from a moratorium on raids to creating an immigrant welcome center”
Alap,
Surely this is from the Onion. I sure hope it is.
yikes says:
March 30, 2009 at 12:45 pm
chicagofinance says:
March 30, 2009 at 9:30 am
in your rental? already?
shoulda bought a place!
28-31: I was in the West Street Hudson Park on Saturday and one of the new building had a sign that said (paraphrasing) “Still time to Repent……RENT…”
” predict that GM will end up in Ch 11 due to unwillingness of UAW to make the necessary cuts. UAW ultimately believes the O-man has their back and will take this to the brink.”
After the way B.O. caved to the House Dems on the 2009 Federal Budget, why would anyone think he will yield to pressure from the left? Cough. Cough. Gasp and chuckle. The man has showen himself to be a Loopner Politician — “born without a spine.”
shown, even
Walletpop:
“Mortgage rates are done falling, Freddie chief says”
http://www.walletpop.com/blog/2009/03/30/mortgage-rates-are-done-falling-freddie-chief-says/
Shore,
Re: 118
Sadly, it is not from The Onion, or an April Fool’s joke. This is really what Corzine and the moronic NJ gov’t is proposing and spending its time/money on when the state is already going down the crapper. Stretch the budgets of municipalities even more by allowing these illegals kids into the schools, when they dont even pay any taxes in the first place.
Morgan Stanley Says Sell Best S&P 500 Rally Since ’38..
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEaj0AIFX2w0&refer=home
This would be the dump in the old Pump n Dump Scheme.
I am still looing for Dow 4800 sometime between now and year end.
Or, if hyperinflation kicks in, 48,000, but it will have the same value
126. Corzine needs the minority vote more than ever in order to have a chance at re-election now that he lost the votes of anyone with a half of a brain and anyone making over $150K/yr.
Wave Goodbye to the Bankrupt Joneses: Deconstructing the American Dream. The Shifting Financial and Societal Goals of a Country Mired in Debt.
make 110
russia, china and the middle east have been discussing a gold backed reserve currency basket for the last year+. Its not a question of “if”, but of “when”.
Anyone who pointed this was called a nut until the last few weeks and it is now a serious concern funny how that works
130 – Can illegals vote?
#133 – Only in Hudson Co, right alongside the dead.
Alap
let undocumented immigrants benefit from lower in-state tuition rates for state universities; to toughen penalties for employers caught paying workers off-the-books; to stress that its public school systems not seek social-security numbers from parents of potential students; and to establish an immigrant welcome center, “either physical or virtual.”
This is insane! Why dont i start to refuse to provide my SS# and start the process to become an undocumented worker. starting to seem like they get better benefits.
How long con the state and federal governments continue to have no regard for laws and expect people to respect the same laws they routinely ignore?
———–
Nom,
could such a move be challenged in court? How can the government actively service individuals who are breaking the law in order to receive said service?
“130 – Can illegals vote?”
Yes, but they must vote illegally.
Congress considers ‘cash for clunkers’ proposal
I just had my ’79 Scout towed away. Damn.
Too funny for words:
http://z.about.com/d/politicalhumor/1/7/z/O/2/obama-palin-dancing-stars.jpg
“Yes, but they must vote illegally.”
They would NEVEr do that, Stu. They are all honest and hardworking folks.
Another one:
http://www.monstersandcritics.com/news/usa/news/article_1467766.php/Six_killed_in_Silicon_Valley_shooting_
Music to this buyer’s ears:
http://www.bizjournals.com/washington/stories/2009/03/30/daily11.html
The number of people buying vacation and investment homes fell 30 percent last year, according to the National Association of Realtors.
But, those who are buying are doing so with cash – with more than four out of 10 investment buyers and more than three in 10 vacation home buyers coming to the table with money up front.
“We expected vacation-home sales to fall given the impact of a declining economy on discretionary purchases,” said Lawrence Yun, NAR chief economist, in a news release. “A steady share of investment-home sales results from buyers taking advantage of deeply discounted prices in many areas, with a smaller portion of new homes in the sales mix.”
The market share of homes purchased for investment was 21 percent last year, unchanged from 2007, while an additional 9 percent were vacation homes, down from a 12 percent market share in 2007, according to NAR.
[snip]
Maybe it was the sound of Geithner’s plans falling flat.
http://news.yahoo.com/s/space/20090330/sc_space/mysteryflashandbigboomrattlesvirginia
The Black Box continues to defy all other stock picking methodologies:
“bi says:
March 26, 2009 at 11:27 am
44#, stupid? not enough to hold some ultra-short stuff. this is greatest March madness I have ever seen. market rallied by 20% in less than 10 trading days. if you believe stock market is a leading indicator, it clearly shows the end of the tunnel is near.”
A mere 2 market days later:
This session’s downturn carries over from losses seen Friday, which means stocks are now down more than 5% for the past two sessions.
WH on GM and Chrysler:
http://www.whitehouse.gov/blog/09/03/30/GM-and-Chrysler/
143#, i think today’s pull back is knid of good news for long term investors. i thought the train has left us forever. thanks to mighty omama pulling back the train to the station, i can make another jump.
Ms. Bair said banks might be able to take an equity stake in those funds as partial payment for their loans, which would give them a payoff if the loans ultimately rise in value and would provide bankers with more incentive to sell troubled assets. “We’d be open to comments on that,” Ms. Bair said. Domestic U.S. banks held loans valued at $6.5 trillion on their balance sheet last month, almost 60% of which are tied to consumer and commercial real estate. Those real-estate loans are causing the biggest headache and are likely the ones banks will hope to sell.
Top-tier, income-generating properties sell for as much as 90 cents on the dollar in regular FDIC auctions, Mr. Greenland said. At the other end of the spectrum, COF Capital Partners LLC of Rocklin, Calif., paid $1.78 million, or only four cents on the dollar, for a portfolio of eight loans with a face value of $44.6 million, according to the FDIC’s sale database.
http://justincash.blogspot.com/2009/03/bair-is-open-to-banks-profiting-on.html
SO we have about 4 trillion tied up in bad RE and the market has determined prices as low as 8% on these loans? There goes a few more trillion $ down the drain
want to now what the US looks like in 1 years if the status quo is maintained? look at argetnina
Welcome to America, the World’s Scariest Emerging Market
Many economists and analysts are worrying that the United States might go the way of Japan, which suffered a “lost decade” after its own real estate market fell apart in the early 1990s. But I’m more concerned that the United States is coming to resemble Argentina, Russia and other so-called emerging markets, both in what led us to the crisis, and in how we’re trying to fix it.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/25/AR2009032502226.html?wprss=rss_print/outlook
AIG Fights a Fire at Its Paris Unit
Amid the flap over bonuses at American International Group Inc. two of the company’s top managers in Paris have resigned. Their moves have left the giant insurer and officials scrambling to replace them to avoid an unlikely but expensive situation in which billions in AIG trading contracts could default. Representatives of the Federal Reserve, AIG’s lead U.S. overseer, are talking with French regulators and AIG officials to deal with the consequences of a complicated legal scenario in which the departures of the managers in Banque AIG, a subsidiary of AIG’s Financial Products unit, could trigger defaults in $234 billion of derivative transactions, according to people familiar with the situation and a document AIG provided to the U.S. Treasury.
Defaults, by no means inevitable, could not only hurt AIG but also could force European banks involved in the trades to raise billions in capital to cushion potential losses, according to AIG documents. That is because the banks used Banque AIG to hedge the risk in some of the assets they own, allowing them to hold less capital against those assets, which could include securities such as mortgages and corporate debt. The executives at Paris-based Banque AIG, Mauro Gabriele and James Shephard, have resigned in recent days but have agreed to stay on for a transition, according to people familiar with the matter. In the wake of their resignations, AIG must replace them to the satisfaction of French banking regulators.
If they don’t, French regulators may appoint their own designee to manage the bank — an outcome that could trigger defaults under the bank’s derivative contracts. The private contracts say that a regulator’s appointment of a manager constitutes a change in control, according to a person familiar with the matter; the provision is often included in derivative contracts where parties want to preserve a way out if something about their counterparties changes. Messrs. Gabriele and Shephard didn’t respond to requests for comment.
http://online.wsj.com/article/SB123802506167942421.html
Rush Limbaugh has announced that he is leaving NYC because of the fascist tax audits and the new tax hikes. He is considering Florida (I think he spends a lot of time there already) or Texas.
First, but not the last victim in War on Rich. This will cost millions for NY in lost tax revenue. When will dems learn?
1 = 10 in post 147
Damn Kettle, for a high school janitor you sure read a lot.
Coming soon to a city near you?
http://www.reuters.com/article/newsOne/idUSN28291897
Brazil builds walls around Rio de Janeiro slums
Sat Mar 28, 2009 12:03pm EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
RIO DE JANEIRO, March 28 (Reuters) – The government of Rio de Janeiro is building concrete walls to prevent sprawling slums from spreading farther into the picturesque hills of this world-famous tourist destination, an official said on Saturday.
snip
Geithner’s ‘Dirty Little Secret’
US Treasury Secretary Tim Geithner has unveiled his long-awaited plan to put the US banking system back in order. In doing so, he has refused to tell the ‘dirty little secret’ of the present financial crisis. By refusing to do so, he is trying to save de facto bankrupt US banks that threaten to bring the entire global system down in a new more devastating phase of wealth destruction.
The Geithner Plan, his so-called Public-Private Partnership Investment Program or PPPIP, as we have noted previously is designed not to restore a healthy lending system which would funnel credit to business and consumers. Rather it is yet another intricate scheme to pour even more hundreds of billions directly to the leading banks and Wall Street firms responsible for the current mess in world credit markets without demanding they change their business model. Yet, one might say, won’t this eventually help the problem by getting the banks back to health?
Not the way the Obama Administration is proceeding. In defending his plan on US TV recently, Geithner, a protégé of Henry Kissinger who previously was CEO of the New York Federal Reserve Bank, argued that his intent was ‘not to sustain weak banks at the expense of strong.’ Yet this is precisely what the PPPIP does. The weak banks are the five largest banks in the system.
The ‘dirty little secret’ which Geithner is going to great degrees to obscure from the public is very simple. There are only at most perhaps five US banks which are the source of the toxic poison that is causing such dislocation in the world financial system. What Geithner is desperately trying to protect is that reality. The heart of the present problem and the reason ordinary loan losses as in prior bank crises are not the problem, is a variety of exotic financial derivatives, most especially so-called Credit Default Swaps.
In 2000 the Clinton Administration then-Treasury Secretary was a man named Larry Summers. Summers had just been promoted from No. 2 under Wall Street Goldman Sachs banker Robert Rubin to be No. 1 when Rubin left Washington to take up the post of Vice Chairman of Citigroup. As I describe in detail in my new book, Power of Money: The Rise and Fall of the American Century, to be released this summer, Summers convinced President Bill Clinton to sign several Republican bills into law which opened the floodgates for banks to abuse their powers. The fact that the Wall Street big banks spent some $5 billion in lobbying for these changes after 1998 was likely not lost on Clinton.
One significant law was the repeal of the 1933 Depression-era Glass-Steagall Act that prohibited mergers of commercial banks, insurance companies and brokerage firms like Merrill Lynch or Goldman Sachs. A second law backed by Treasury Secretary Summers in 2000 was an obscure but deadly important Commodity Futures Modernization Act of 2000. That law prevented the responsible US Government regulatory agency, Commodity Futures Trading Corporation (CFTC), from having any oversight over the trading of financial derivatives. The new CFMA law stipulated that so-called Over-the-Counter (OTC) derivatives like Credit Default Swaps, such as those involved in the AIG insurance disaster, (which investor Warren Buffett once called ‘weapons of mass financial destruction’), be free from Government regulation.
At the time Summers was busy opening the floodgates of financial abuse for the Wall Street Money Trust, his assistant was none other than Tim Geithner, the man who today is US Treasury Secretary. Today, Geithner’s old boss, Larry Summers, is President Obama’s chief economic adviser, as head of the White House Economic Council. To have Geithner and Summers responsible for cleaning up the financial mess is tantamount to putting the proverbial fox in to guard the henhouse.
The ‘Dirty Little Secret’
What Geithner does not want the public to understand, his ‘dirty little secret’ is that the repeal of Glass-Steagall and the passage of the Commodity Futures Modernization Act in 2000 allowed the creation of a tiny handful of banks that would virtually monopolize key parts of the global ‘off-balance sheet’ or Over-The-Counter derivatives issuance.
Today five US banks according to data in the just-released Federal Office of Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activity, hold 96% of all US bank derivatives positions in terms of nominal values, and an eye-popping 81% of the total net credit risk exposure in event of default.
The five are, in declining order of importance: JPMorgan Chase which holds a staggering $88 trillion in derivatives (€66 trillion!). Morgan Chase is followed by Bank of America with $38 trillion in derivatives, and Citibank with $32 trillion. Number four in the derivatives sweepstakes is Goldman Sachs with a ‘mere’ $30 trillion in derivatives. Number five, the merged Wells Fargo-Wachovia Bank, drops dramatically in size to $5 trillion. Number six, Britain’s HSBC Bank USA has $3.7 trillion.
After that the size of US bank exposure to these explosive off-balance-sheet unregulated derivative obligations falls off dramatically.
http://globalresearch.ca/index.php?context=va&aid=12953
zieba,
i have a lot of free time in between moping hallways and scraping gum off of chairs.
———————–
Shore 152
How long before California starts designated indigent zones? the MSM will never touch that one, just like they wont touch the homeless camps springing up all over the place, while the foreign media does.
zieba,
i have a lot of free time in between moping hallways and scraping gum off of chairs.
———————–
Shore 152
How long before California starts designated indigent zones? the MSM will never touch that one, just like they wont touch the homeless camps springing up all over the place, while the foreign media does.
welcome to 3rd world status
#145 bi: You are too funny. If the market was up today, you would poin to how that would indicate all is well on the road to recovery, and that the market will continue to rise.
Sounds like you are back pedaling. By the way, as per your post last week, tomorrow is the last day of the recession, right?
bi says:
“i think today’s pull back is knid of good news for long term investors. i thought the train has left us forever. thanks to mighty omama pulling back the train to the station, i can make another jump”
Are you serious? Today’s move back is Obama’s fault, and last week’s rise is an result of Reagan’s policies? I know it is just a blog, but even by those standards yours is a dishonest discourse.
S
94. 2 Cents says:
March 30, 2009 at 11:28 am
Enough with the teleprompter jibes already! You are insulting your own intelligence by bringing that up.
What is the difference between reading from a page and reading off of a teleprompter?
There are multitude of other reasons to be critical of Obama, but complaining about a teleprompter is just childish.
———–
I don’t think it is the teleprompter. It is more the perception that he doesn’t know what he is doing.
157#, it’s not omama’s fault. its just the market react washington actions: 1) GM episode 2) geither’s comments on some banks need substantial more money. whenever washington (especially congress) takes action, i see market go down and i see opportunity.
[115] PA bound
Yes, it was a bipartisan panel, meaning that the left was represented. And it would be a fine choice as her scholarship is well known. I have no doubts that if you want to take the country in that direction, Prof. Garrett is as able a person as any to do it.
The question is, do you want to go in that direction? For some readers, the honest and understandable answer will be yes.
And what is up with the teleprompter crap?
All presidents read from teleprompters, ever since they were created.
Jill says:
March 30, 2009 at 12:18 pm
“Where was the outrage when GWB couldn’t even utter a coherent sentence WITH a teleprompter? Or was that yet another case of “Everything is OK if you’re a Republican?” (including torture, mass wiretaps of everyone’s communications, putting us into debt for a generation, etc.)”
Second that… and add “an illegal war that killed four thousand US soldiers and over 600k Iraqis.” Though, for republicans, those numbers won’t matter, because none of them are super-rich contributors to GOP.
S
[135] kettle,
“could such a move be challenged in court?”
No. You do not have standing.
#159 bi: Is the recession over after tomorrow or not? Because I bought fire works, and half a ham to celebrate. So, I need to know.
162#, where did you get evidence to support the claim that there are more super-rich GOP contributors.
I see dems are richer – at least in congress.
http://www.opensecrets.org/pfds/overview.php
Nom #104…
I hope the estate tax (when reinstated completely) will get those looters. If not, I hope the gods will show their wrath on those by blessing them with the likes of Paris Hilton.
S
164#, 3b, tomorrow. but you won’t know 6 months later so save it to labor day.
politics-off
/politics-off
[politics off]
Damn it, why doesn’t this work…
It is nice to see that the lawmakers in NY know how to exercise “restraint,” if one calls a 15% increase an act of restraint.
http://www.newsday.com/news/local/nassau/ny-stbudg3112601086mar30,0,7303291.story
This would seem to provide cover to Trenton for doing something similar, if smaller:
State lawmakers weighed a higher tax on rich to provide property tax reliefBY JAMES T. MADORE | james.madore@newsday.com
March 30, 2009
ALBANY – During negotiations over the state budget, state leaders considered but then rejected providing property tax relief to low- and middle-income homeowners by diverting $1 billion from an income tax hike on the wealthy, Gov. David A. Paterson said Monday.
The governor said that increasing income tax rates any higher than what are in the 2009-10 budget would lead the rich to leave New York. He said he hoped to secure some form of property tax relief before the end of the regular legislative session in June.
Paterson and leaders of the legislative majorities agreed to raise tax rates on the wealthy for three years and use the $4 billion in proceeds to help close the two-year $17.7 billion deficit.
Households earning more than $300,000 but less than $500,000 will see their tax rate rise 1 percentage point to 7.85 percent. Those earning more than $500,000 will pay 8.97 percent, up 2.12 percentage points.
The current top rate is 6.85 percent.
A plan pushed by State Senate Democrats to provide property tax relief would have raised the top tax rate to 10.3 percent, higher than New Jersey and close to California’s tax ceiling.
“I think that would accelerate an exodus of New Yorkers,” Paterson said. “Where we have the tax rate now … 8.97 percent on the highest payer is still under where New Jersey is and way under where California is and from just our sampling seems to make people unhappy but it will be tolerable to them than another place.”
He also cautioned that tax relief would not happen without the money to pay for it. “What we would have to do is find the resources,” he said.
Asked if he still supported a 4 percent cap in yearly increases in school property taxes, Paterson said he did, but added that he would sign into law a “circuit breaker” that targets relief to low- and middle-income homeowners. Such a plan passed the Democrat-controlled Assembly last year.
Senate Majority Malcolm Smith (D- St. Albans) said, “We clearly have to give some relief … most of the STAR money was unaccounted for. We want to do real property-tax reform.”
Lawmakers are to begin voting on nine budget bills tomorrow and hope to make Wednesday’s 12:01 a.m. deadline. If they do, the 2009-10 budget will be only the third on-time plan in 25 years.
This is a 31% increase in taxes for those earning over $500K. I suspect that many folks who can move an office to a lower taxed state will do so.
The good news is that, as the high-earners leave the region, housing prices will drop. The bad news is that increases in property taxes to make-up for the loss of income tax receipts will more than offset the declines.
cindy
CaliPERSnication
…Apollo, Carlyle, TPG, CVC, Silver Lake, Blackstone, and Avenue pretty much hold the fate of the majority of California’s teachers and public workers in their hands… And that future is looking really, really ugly…..
…We randomly picked as a case study the Apollo Investment Fund VI L.P., which CalPERS has committed $650 million to, actually invested $508 million into, withdrawn $10.9 million from and present the residual value (including the withdrawn amount) as $450 million, or a -10.7% IRR. Now we don’t have reason to believe that CalPERS is fudging this number: after all it is reporting merely what Apollo is telling it.
So the next question is, is this -10.7% IRR indicative of the investments in Apollo VI?
The names that constitute the $10.2 billion in committed capital Apollo VI are:
Realogy (on verge of bankruptcy)
Harrah’s (on verge of bankruptcy)
Claires (on verge of bankruptcy)
The debacle that was the Huntsman LBO
Rexnord
Berry Plastics
Verso (bankrupt)
Jacuzzi brands
etc.
We highly doubt -10.7% is anything even remotely close to where CalPERS should consider its residual equity value in Apollo VI. And by fair estimates, this is merely the tip of the iceberg. Nonetheless, presenting public data that shows that the public pensions manager is disclosing over $14 billion in profits when it is hiding potentially much more than that in losses….
http://zerohedge.blogspot.com/2009/03/calipersnication.html/
Who here could do their jobs from nearly anywhere, perhaps with a bit of travel back to the metro area, even weekly, to deal with face-to-face issues?
#167 bi: Last week you said it would be over after tomorrow, now you are saying it will be over, but I won’t see it until Labor Day. You did not say that last week.
But OK. Do you know if my half a ham will keep until Labor Day?
[174]
This is what I do now.
This is a 31% increase in taxes for those earning over $500K. I suspect that many folks who can move an office to a lower taxed state will do so.
Perhaps this is a big plus for Northern NJ?
” The chances of a depression are, he says, “quite high” – even if that is averted, the recession will last a long time. “Look, we are not going back to where we came from. In that sense it’s going to last for ever.” -george soros
http://www.timesonline.co.uk/tol/news/uk/article5989163.ece
[166] sastry,
“I hope the estate tax . . . will get those looters”
Not hardly. The estate tax has been called a voluntary tax because it is easily avoidable. Just don’t die with a lot of money.
Believe me when I tell you that the estate planning business will do quite well off of this. It is the ultimate expression of the Laffer Curve or of the concept of “deadweight loss” (no pun intended). By raising the tax, you increase the likelihood that folks will work to avoid it, thus diminishing revenues.
[177] grim
No, the change was designed to put NY state taxes in sync with NJ, thus assuring that the wealthy would not have a reason to flee to NJ.
As for nontax or low tax states, if they had a reason, they’d be gone already.
Me thinks bi should use a teleprompter.
mmmmm bubbelicious
Markey Taps FERC Over CFTC as U.S. Carbon Market Fuels Turf War
Markey and Peterson are jockeying for control of the biggest regulatory plum to hit Washington in years: a proposed system for trading carbon-dioxide permits that would be one of the world’s largest derivatives markets.
“Some believe this will create the largest new derivatives market in the world,” Senator Debbie Stabenow, a Michigan Democrat, said at a hearing last month.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aPQlqDUndiLY&refer=home
http://uk.news.yahoo.com/22/20090330/tbs-uk-autos-obama-remarks-sb-03c9bed.html
President Obama’s remarks on U.S. car industry
“It is my hope that the steps I am announcing today will go a long way towards answering many of the questions people may have about the future of GM and Chrysler. But just in case there are still nagging doubts, let me say it as plainly as I can — if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warrantee will be safe.
In fact, it will be safer than it’s ever been. Because starting today, the United States government will stand behind your warrantee.”
The use of the teleprompter is not what is amusing, it’s what O sounds like without it.
And I thought that the lefties were bad during the past eight years.
sastry @ 2:39 pm, see sastry @ 2:26 pm regarding “dishonest discourse.”
given the massive budgetary problems in NY and NJ, I would be very careful to the extent you are thinking of buying in a good small school district that is next to another small school district that is not so good. seems that combining districts will happen sooner or later– there is no other way to substantially cut costs without gutting services at the ground level. seems reasonable that the tiny school districts will be the first to get merged since their administrative costs are proportionately so out of whack.
So If my hypothetical GM car breaks down under warranty I have to go to a goverment employee to get warranty service approved.
Who would of thought dealerships could get more inefficient and beuracratic but there you go.
Grim,
Perhaps you should put back on the mod?
skep-tic, this is another myth. people tend to think you will have hugh overhead expense in small school district but there is no evidence supporting this hypothesis. you can pull numbers from any county and probablly you will find exact opposite.
#186.. Qwerty… re dishonest discourse. Thanks for pointing out. I’m prone to exaggeration :) However, I do believe that the Iraq war is a really great mistake [the GOP part was the exaggeration].
My apologies to Bi.
S
Hard to disagree w/ Corker’s take on the GM nonsense.
“The administration is pursuing much of what we pushed for in December, but the delay of several months has increased the severity and sent billions of taxpayer dollars down the drain. Now any investment is likely unrecoverable . . . .”
“It’s been a long time since Washington has seen the kind of kowtowing that’s about to occur among members of Congress trying to curry favor with the administration to keep plants in their states open, and it will be interesting to see if the administration makes these decisions based on a red state and blue state strategy or based on efficiency and capable, skilled workers at each plant. If they use the latter, our GM plant in Spring Hill, Tennessee should do very well.”
#190
“skep-tic, this is another myth. people tend to think you will have hugh overhead expense in small school district but there is no evidence supporting this hypothesis. you can pull numbers from any county and probablly you will find exact opposite.”
I will take your word for it, but this seems really counterintuitive.
Skep:
I have heard the small district argument as well. I think the problem that occurs with the larger districts that does not occur in the smaller ones is the bloat at the administrative level.
I still haven’t figured out what all of those central office people do anyway. Is education today that different than when we went?
Does anyone know anything about what they are planning on building at 520 Palisade Ave. in Teaneck? If not, where can I find out what they are planning for the site?
Call the building dept in Teaneck.
grim (55)-
New black? How about new crack?
“Subprime is soooo 2007, FHA is the new black.”
Guys in the office here refer to FHA as “the softer side of subprime”…or, “Original Recipe subprime”.
I did, they said I had to fill out a form and fax it in and pay a fee, etc., etc. and it would take a week.
I was wondering if anyone here knew anything.
Thank you.
confused (57)-
I prefer not to have reality impinge upon my virtual existence, thank you very much.
What recession?
http://unemploymentolympics.com/
http://www.teaneckccp.org/2.html
“The developer has filed with the Board of Adjustment a plan for a 76,365 sq. ft. chemical factory …”
Administration is where the cuts need to happen. Most administrators seem to spend their time thinking of new hoops for teachers to jump through. I do not think many parents would be happy if teachers were cut and class sizes got bigger.
If what bi says about big districts is true, then I guess I would say that I would be wary of moving to a district that is surrounded by bad districts.
AAF- answer in link.
Silera:
Awesome, thank you.
vodka (76)-
I was wondering when the day would come that the sausage metaphors around here would upgrade to foie gras.
We are so fuct.
Skep/bi,
If one constrains bloat when merging small districts, one can save a fair bit ofmoney. The following duplicated positions go away right away: Superintendent and Board Secretary. Depending on the structure, one can lose athletic directors, health positions, curriculum folks, etc. The key, as noted above, is to avoid bloat in the new district, and that can bedone by capping spending increases.
Shore (82)-
Yeah. That way, the riots can get started right away.
“It sounds like they do not want people thrown out of work before the weather is warmer.”
BTW, the riots will be nothing, compared to the 1 tn in CDS that will be triggered by a GM adverse credit event.
re #207 Clot the number is not that high.
http://blogs.wsj.com/marketbeat/2009/03/30/the-end-game-for-gm-bondholders/
March 29, 2009 —
Any comic who couldn’t be funny this past year should just give up and become a funeral director. The well of material has been virtually bottomless. George Bush leaving office, Obama coming into office, economic woes, scandals galore, whatever came out of Paula Adbul’s mouth — it all lent itself to wisecracking. So The Post asked dozens of comedians, both big-time and local, to pick their favorite jokes — whether they told it, or heard it from someone else — from the past 365 days. The best 50 are compiled here.
LARRY MILLER
“Is it good when banks buy each other? They make it sound like the most natural thing in the world: ‘Wachovia . . . now part of Wells Fargo! WaMu . . . now part of Chase!’ But to me, that just sounds like, ‘Poland . . . now part of Germany!’ ”
BOB NEWHART
“It’s a shame that the ‘3 a.m. phone call’ issue in the Democratic campaign was resolved after Obama’s nomination, when John Edwards was caught by the paparazzi while visiting his mistress and love child.
“Thinking quickly, he ran down several flights of stairs and barricaded himself in a stall in the men’s room until escorted back to his room by hotel security.
“It showed quick thinking, originality and inventiveness. I personally would want John Edwards there for that ‘3 a.m. phone call.’ ”
JONATHAN KATZ
“The economy is so bad that a picture is now only worth 830 words. It’s so bad, we had to lay off one of our kids.”
WENDY LIEBMAN
“My husband suffers from migraines. It sucks for him, but it works for me. I’m like, ‘Not tonight, honey — you have a headache.’ ”
DICK GREGORY
“I’m bringing a civil rights case against Bernie Madoff. How are you gonna steal $100 billion, but not a dime from black people? That’s just racist.”
JIM GAFFIGAN
“I love how New York is so multicultural. I wish I was ethnic. ‘Cause if you’re Hispanic and you get angry, people are like, ‘He’s got a Latin temper.’ But if you’re a white guy and you get angry, people are like, ‘That guy’s a jerk.’ ”
ZACK GALIFIANAKIS
“You know it’s time to do the laundry when you’re drying yourself off with a sneaker.”
MAC KING
“I checked into a hotel here in Vegas the other day and I asked the woman behind the counter if the porn channel was disabled, and she said, ‘No, it’s regular porn, you sick bastard.’ ”
JACKIE MASON
“Eighty percent of the married men cheat in America. The rest of them cheat in Europe.”
ANDY BOROWITZ
“I’ve started using Obama’s catchphrases around the house. Like the other day, my wife said, ‘We can’t have sex tonight.’ And I said, ‘Yes, we can.’ ”
LORD CARRETT
“I learned a lot from my divorce. Did you know they won’t sell you a gun if you’re crying?”
JIM NORTON
“For the ‘Miracle on the Hudson,’ let’s be honest — if Sully wasn’t a hero pilot, we’d all be looking at his creepy mustache and trying to get the FBI to investigate his hard drive.”
GARY GULMAN
“Nice to have a literate president again. A president who says a word and you have to look it up to see what it means, not to see if it’s a real word.”
JOSELYN HUGHES
“I was interested in how celebrities get so extremely skinny, and I found out they all follow this really easy diet. You start out with a few baby carrots for breakfast, you skip lunch and then for dinner you have a reasonably sized amount — like three to four ounces — of pure Colombian cocaine.”
MIKE BIRBIGLIA
“April Fool’s Day is about saying the most preposterous thing you can to someone, and trying to get them to believe it. And that’s getting harder. Like right now someone could say, ‘The US government is taking over Citigroup, and they’re going to charge $20 ATM fees, and those fees are going to be used to pay bonuses to AIG executives.’ And you’d be like, ‘That sounds about right.’ ”
ROBERT KLEIN
“I’m an Obama man. But when Hillary Clinton said, ‘Who would you rather be there when that crucial call to the White House comes at 3 a.m.?’ I went with McCain on that one. He’d already be up taking a leak.”
SETH HERZOG
“Joe Biden says that offshore drilling is like ‘raping the ocean.’ Which Sarah Palin is fine with, as long as the ocean pays for its own rape kit.”
PAUL SCHEER
“I just saw the poster for ‘Fast and the Furious 3’ and the tag line is ‘New Model. Same Parts.’ Isn’t that just a crappy version of something? Who would want to buy a car like that? ‘Yes, it’s the 2009 Porsche, but under the hood all the parts are from 1986.’ ”
JERMAINE FOWLER
“The longer Magic Johnson doesn’t die from AIDS, the more I start to think that he’s an actual magician.”
DAVID LETTERMAN
Letterman: “Why exactly are you here, honest to God?”
Gov. Rod Blagojevich: “Well, you know, I’ve been wanting to be on your show in the worst way, for the longest time.”
Letterman: “Well, you’re on in the worst way, believe me.”
JEFF KREISLER
“I went to the Inauguration in DC. I feel bad for Bush — I’ve had bad days, done things I’m not proud of, but I’ve never performed so poorly that when I left, they threw a party with 2 million people and Bono.”
LOUIS C.K.
“We live in an amazing, amazing world and it’s wasted on the tackiest generation of spoiled idiots that don’t care. I was on an airplane and there was high-speed Internet. It’s the newest thing I know that exists. It’s fast and I’m watching YouTube on an airplane! Then it breaks down and they apologize that it’s not working. And the guy next to me goes, ‘Pfft, this is bulls – – – .’ Like, how quickly the world owes him something he knew existed only 10 seconds ago!”
VICTOR VARNADO
“When I am making out with a girl I used to think it spoiled the mood when she would whisper in my ear, ‘Victor you’re the first black albino I’ve ever kissed.’ But then I realized that it’s way better than hearing her say, ‘Victor, you are the 43rd black albino I’ve ever kissed. I’m a collector — you’re getting sleepy because of the poison. Bye bye.’ ”
CHRISTIAN FINNEGAN
“Sometimes when you’re out on a stormy night, you’ll see a broken, mangled umbrella lying on the sidewalk. I find that very poignant. Because every umbrella corpse that you stumble across represents a truly sh – – – y moment in someone’s life. If hell exists, it consists of eternally walking up 10th Avenue in the pouring rain, on the way to a dinner party, armed with nothing but a $4 Duane Reade umbrella.
GREG GIRALDO
“Rolling Stone magazine called George Bush the worst president ever. That’s ridiculous. I’ll give them worst American president, but there have definitely been worse presidents in the history of presidents. Like in Liberia, they’ve had some pretty sh – – – y presidents — and do you remember the president of the Selena fan club?”
RALPHIE MAY
“Birds knocked that plane out of the sky. Birds. Now every terrorist is all training pigeons. ‘You are my favorite pigeon. You are going to fly on the wings of jihad to the heart of the infidel, knocking him out of the sky!’ ”
CRAIG FERGUSON
“Here’s how bad the economy is: Today ‘Sesame Street’ laid off 67 people, so tonight’s episode is brought to you by the letters ‘F’ and ‘U.’ ”
ILIZA SHLESINGER
“Americans will eat anything. We’ll eat the same thing over and over again, thinking it’s something different. I saw an ad for pizza with a side of cheesy bread and marinara dipping sauce. Cheesy bread, marinara sauce — that’s pizza! Amazing that America’s favorite side dish to pizza is pizza.”
BO BURNHAM “I’m an optimist. I don’t think of strippers as pole dancers. I think of them as confused fi remen.”
SARA BENINCASA
I’m madder at the Arab world for algebra than for 9/11. Is that racist or mathist?”
MICHAEL SHOWALTER
I recurring anxiety dream that I’m back in high school. It’s the fi rst day of classes and for some reason I’ve forgotten to wear a shirt. No matter how hard I try I can’t find one and I have to go through the entire day, shirtless and exposed. I’ve since learned that this is a common anxiety dream. It makes me wonder: When Matthew McConaughey has this dream, it’s probably the opposite — he’s wearing a turtleneck sweater and can’t take it off .” .
JIM FLORENTINE
Obama is have a obviously still on his honeymoon with the American people when he gets away with making jokes about the Special Olympics. If President Bush said that about the Special Olympics, those kids would be banging their helmets against the White House door.”
D.C BENNY
A lady came up to me on the train and handed me a pencil with a note that said, ‘I’m deaf.’ I wrote, ‘I’m broke,’ and gave it back.”
grim unmod
Is it the administrators who keep on thinking up ways to inject more environmental propaganda into every lesson plan, including first graders?
I was reading the Little House on the Prarie books to my daughter last year. What was striking is that back then, a town paid Laura Ingalls a dollar or two a week (probably the equivalent of $100/wk today), a 15 yr old who hadn’t yet finished high school, but passed a test and interview, to teach their kids in a freezing one-room building. Laura and these kids sounded like they were learning more essential things than a lot of kids today. Overall, I’d rather send my daughter to her school today than to Laura Ingalls’ school. But on a cost/benefit analysis, the spending in most schools is yielding very low incremental gains, for the students’ education at least. Very high gains for the education establishment.
But back then the Batmobile didn’t even exist….
tbiggs (109)-
How about “Trenton Uses Heroin”?
sean (208)-
Thanks. That’s comforting.
Hype (127)-
I’m shocked, just shocked.
Evidently, blatant pump-and-dumps are now OK in the US.
Hot off the presses!
AIG execs pressed to donate to Chris Dodd. Sorry to bring the politics back in Grim. This was too good to pass up though.
http://www.washingtontimes.com/news/2009/mar/30/aig-chiefs-pressed-to-donate-to-dodd/
This wonderful, truly unique home started in the mid 700’s.
you can steal it at the unbelieveable price of 624K!! Of course as the listing says it is only 1 block to the train station, because, teh train tracks are in your back yard.
Hey come on, some people may be perfectly OK with that.
And as the listing says, it is on a dead end street. And yes it is. However the dead end feeds out to the intersections of Kinderkamack Rd, Main St, and New Bridge Rd.
But hey come on luxirous new construction in a Bergen Co blue ribbon town for 624K!!!! They are practically giving this unique hoem away.
The listing forgot to tell you that in addition to the train station being only a block away, Mc Donalds,a gas station, anda auto body shop are even closer.
Everything that you need. So convenient!!!
And do not forget, the owner has a NJ real estate license.
http://www.njmls.com/cf/details.cfm?mls_number=2900959&id=999999
Stu (143)-
Serves that nit-brained doofus right.
I hope he got margined into oblivion today.
Guess we won’t be hearing from him until some hare-brained gubmint scheme manages to turn the ticker green again.
Also: Yes, I know it’s from the Washington Times.
/disclaimers on, etc. etc.
bi (145)-
Jump in front of the train.
It will be fun.
“I did, they said I had to fill out a form and fax it in and pay a fee, etc., etc. and it would take a week.”
All that sort of information should be on the Web.
“the riots will be nothing, compared to the 1 tn in CDS that will be triggered by a GM adverse credit event”
Not to worry, Clot. We have ink. We have presees. We have paper. All is good. At least that is what Timmy told me; that guy needs to find a well.
“http://unemploymentolympics.com/”
Chifi,
Maybe they can walk over and persuade Patti Smith to play for the opening ceremony. She can sing: “Because the Debt.”
“FIRST-QUARTER LAYOFFS: Selection Of Job Cuts By Major Companies”
http://tinyurl.com/dbkpwp
#221 – Maybe they can walk over and persuade Patti Smith to play for the opening ceremony. She can sing: “Because the Debt.”
How about Modest Mouse w/ Bankrupt on Selling?
I really want to hear Patti doing Land.
off to do one hell of an assignment tomorrow…
I’m back in the saddle again.
SAS
“The demographic sectors hit hardest so far tend to be younger workers, particularly teenagers and those with lower skill levels and education levels,” he said.
And I’m willing to bet these guys can’t afford to buy houses. Why do you think we keep seeing all these 500k Cape Cods. The unemployment we see in Nj hasn’t impacted those that own real estate yet.
Max Kaiser is right on spot.
“Max Keiser on Bankers’ Bonuses – 27 March 2009 (1 of 2)”
http://www.youtube.com/watch?v=NzvMh73WflQ
SAS
“Max Keiser on Bankers’ Bonuses – Face Off – 27 March 2009 (2 of 2)”
http://www.youtube.com/watch?v=3GxIUhd1pAk&feature=related
Max Keiser: ….they (Goldman Sachs, JP Morgan et al) are systematically undermining the entire system. They are creating a mechanism to carve out equity and capital for themselves at the expense of society at large.
So in the United States, unemployment is skyrocketing. The uninsured is skyrocketing. The social fabric is coming unglued. You have riots all over the world…in Iceland and other countries due to this financial terrorism that was pre-meditated, on purpose and should be addressed as such.
There is a double standard. Why is the US pursuing so-called terrorists in nations like Afghanistan when they let these guys roam free on Wall Street? They’re the worst criminals of all – they do far more damage.
Interviewer: Let’s leave Afghanistan out of this…
Max Keiser: But why? It’s a great source of poppy and heroin which fuels a lot of these bankers bonuses. Let’s be frank about that.
anyone say Monsanto?
“Monsanto Planting Seeds in the White House?”
http://www.opednews.com/articles/Monsanto-Planting-Seeds-In-by-Asher-Miller-090324-445.html
Housing Market: No Bottom in Sight
http://www.minyanville.com/articles/avb-hov-bzh-spf-eqr-udr/index/a/21899
Or, “‘Til Bankruptcy”
Raise the sky.
We got to fly over the land, over the sea.
Fate unwinds and if we die, souls arise.
God, do not seize my house please, till bankruptcy.
Take arms. Take aim. Be without shame
No one to bow to, to vow to, to blame.
Legions of light, virtuous flight. Ignite, excite.
And you will see us coming, V formation, through the sky.
Film survives. Eyes cry.
On the hill, hear us call through a realm of sound.
Oh, oh-oh. Down and down.
Down and round, oh, down and round.
Round and round, oh, round and round.
Rend the veil and we shall sail.
The nail, the grail: That’s all behind thee.
In deed, in creed, the curve of our speed.
And we believe that we will raise the sky.
We got to fly over the land, over the sea.
Fate unwinds and if we die, souls arise.
God, do not seize my house please, till bankruptcy.
Bankruptcy. Till bankruptcy. [repeat]
“Russia backs return to Gold Standard to solve financial crisis”
-Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.
http://tinyurl.com/dlyc78
“Take arms. Take aim. Be without shame
No one to bow to, to vow to, to blame.
Legions of light, virtuous flight. Ignite, excite.”
I think she wrote this stanza for Clot.
#225
Well, in my neck of the woods no one has been spared from the wrecking ball called unemployment. These are the fields of my friends who have been laid off (including me): Law, finance, healthcare – major reduction of hours but not laid off, sales of financial products, accounting. Believe me, these are people with mortgages to pay.
ahh yes, one of my favorite words:
“NJ Labor Inspector Admits Taking $1.8M in Bribes”
http://www.1010wins.com/NJ-Labor-Inspector-Admits-Taking–1-8M-in-Bribes/4109714
The GM relief pitcher likes to throw high and inside:
“General Motors’s new chief executive told CNBC that filing for Bankruptcy may be the best option for the struggling automaker.
In a taped interview to be aired tonight on NBC Nightly News, Fritz Henderson said that because of greater demands from the Obama administration to restructure is considering the bankruptcy option. The auto giant previously had ruled out such a move, saying it would discourage people from buying GM cars.
Henderson’s comments came after President Obama bluntly rejected turnaround plans by GM and Chrysler and demanded that both companies make fresh concessions in order to get more federal aid.”
I think he just gave o’Bama a little chin music, and cast a glare over to the unions in the on-deck circle that they could expect some of this too!
After B.O. backed the warranties it removed the big objection to BK.
#105 Russia backs return to Gold Standard to solve financial crisis
Is there even enough gold in the world to back all currency in the world?
An article last year about gold paper trading in the market not covered by the metal.
[240] shore,
True, but O man doesn’t want bk for obvious reasons, including the fact that he won’t be able to save the unions, pensions and legacy welfare bene plans if GM goes down. There is also the cascading domino effect of a bankruptcy. It will force O man into even more welfare spending, which he really cannot afford, even if it does buy him some votes in the rust belt. I also think it will cost him just as many there, and may cost more if he ramps up spending even more.
Fritz has bama by the short hairs as much as bama has GM by the neck. He just reminded O-man of that.
“True, but O man doesn’t want bk for obvious reasons, including the fact that he won’t be able to save the unions, pensions and legacy welfare bene plans if GM goes down. ”
Did you listen to him this morning? I am fully persuaded that he is committed to throwing the UAW under the bus. He knows that there will be serious pain inflicted on the unions but can say 1) it was a mutually-negotiated settlement between the unions and the companies, so who am I to interfere or 2) it was a BK judge who ordered the gutting of the union, who am I to interfere.
in moderation, not sure if it is a politician’s name or a body fluid.
How Corzine in wonderland this sounds. Read the NY Govrnor’s comments about “tough choices” and fiscal discipline.
http://www.bizjournals.com/albany/stories/2009/03/30/daily8.html
Somebody, please have the Governor of NY piddle into a sample jar. He must be under the in.fl.uence of some nar-cotic, that or Corzine. Actually, Corzine does sound like the name of a nar-cotic.
Nurse: “Doctor, the patient is lucid and rational.”
Physician: “I can fix that, lets give him 3-ml of Corzine. He should be irrational in no time.”
From the article noted below: ““We made the tough choices,” Paterson said. “If the Legislature can maintain this [spending] discipline over the next few years, I can see the light at the end of the tunnel. I can’t tell you that our fiscal woes are over—that wouldn’t be honest. We have not found the floor of this recession.””
How very Corzineesq
http://www.bizjournals.com/albany/stories/2009/03/30/daily8.html
Gov. David Paterson and legislative leaders that finalized a balanced state budget Sunday night got some feedback Monday from interested parties.
The proposed $131.8 billion budget that lawmakers will vote on increases spending by 9 percent and includes roughly $7 billion in higher taxes.
“We made the tough choices,” Paterson said. “If the Legislature can maintain this [spending] discipline over the next few years, I can see the light at the end of the tunnel. I can’t tell you that our fiscal woes are over—that wouldn’t be honest. We have not found the floor of this recession.”
“We did the best we could in a difficult situation,” added Senate Majority Leader Malcolm Smith (D-Queens). “This was an unprecedented time. As I’ve said before, we cannot cut our way back to prosperity.”
Paterson, Smith and Assembly Speaker Sheldon Silver (D-Manhattan) brokered the deal privately over the weekend.
[snip] (some scathing responses to the budget that makes Trenton look prudent).
great stuff, Stu. Anyone who listens to this clown about ANYTHING deserves what they get. i wonder if he can tie his shoelaces or button his jeans.
Nice! Another one on deck for a bailout.
Just months before the start of last year’s stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks.
Switching from a heavy reliance on bonds, the Pension Benefit Guaranty Corporation decided to pour billions of dollars into speculative investments such as stocks in emerging foreign markets, real estate, and private equity funds.
http://www.boston.com/news/nation/washington/articles/2009/03/30/pension_insurer_shifted_to_stocks/?page=full
quote of the day
Let the president explain in plain terms to the people why Wagoner was guillotined while Lloyd Blankfein, Vikram Pandit and Edward Liddy and all those chaps are still in their plush seats
when any of the big 5 are just as bankrupt if not more so
#193 Skep – If Bi is right (what am I saying??) then how does one explain the superintendent of the Bedminster School receiving $162,000 per year. There are 620 students in that one school, K-8. I have to be missing something. Are there other public schools in Bedminster? That CAN’T be right!
anecdote:
went to get the last remnants from our old rental (townhouse). owner is fixing some things he neglected (probably cost him 1500 out of pocket, bet he loved that) and tells me that he may have a renter – who is moving from within the neighborhood (nice community).
i tell him he lucked out and he makes a sad face. Turns out a guy bought FOUR townhouses in this community … and he’s getting all of them foreclosed upon.
so all 4 renterss have to look for a new place. there are already a lot of places in the community up for sale. AND it’s a double-whammy: The value of my old landlord’s townhouse is about to take a hit.
bummer. he bought in 2005 for 300k. i’d say it’s worth 250k at best right now.
200K (228)-
Take another hit off that crackpipe, pal.
And come spend a week with me if you really think your preposterous statement holds as much as a drop of water. I guarantee you you’ll think different at the end of those seven days.
Do you think RealtyTrac has it wrong when they state NJ is in the US “top ten” foreclosure list?
“The unemployment we see in Nj hasn’t impacted those that own real estate yet.”
People call me now the day after they lose their jobs.
Most don’t have enough savings to take them 30 days.
Yeah, six-figure types.
sas (235)-
The fact that Russia has repudiated their debt on multiple occasions really adds a lot of weight to their suggestion. :)
Shore (236)-
Nah. Chuck D did write this for me, though:
We got to pump the stuff to make us tough
from the heart
It’s a start, a work of art
To revolutionize make a change nothin’s strange
People, people we are the same
No we’re not the same
Cause we don’t know the game
What we need is awareness, we can’t get careless
You say what is this?
My beloved lets get down to business
Mental self defensive fitness
(Yo) bum rush the show
You gotta go for what you know
Make everybody see, in order to fight the powers that be
Lemme hear you say…
Fight the Power
“Chuck D ”
I thout that was an evil ventriloquist’s dummy who goes around killing people.
Shore (256)-
Sometimes, I don’t know when you’re joking. :)
anyone curious what the political bs we are playing looks like in a few years?
Memorias_del_Saqueo
Argentina financial crisis of 2001
http://video.google.com/videoplay?docid=-6758899307929087686
sas (238)-
I like that guy’s portfolio mix. Too bad he got caught. Guess he was starting his own little stash of shiny.
“As part of a plea bargain, he agreed to forfeit two homes in Ocean City, one in Fort Lauderdale, Fla., a 2008 Lexus, $120,000 in cash and a collection of valuable coins, along with five gold plates and four silver bars.”
(243) Shore
I read it differently, and don’t you think the uaw is gonna call in its chits?
(247) Vic
We are sooo screwed.
I resisted saying that until now but I am compelled to say itan even though PBGC is not obligated to make retirees whole. There will be metaphorical blood when DB plans go under and the feds don’t make participants whole.
They keep coming on the market folks.
This one is to be built, at a mere 859K.
The basement is Dutch, that is a charming local term, meaning cheap as in really no basement. You can stand in the center;the sides are for storage
http://www.njmls.com/cf/details.cfm?mls_number=2913881&id=999999
As the listing says this is gem, “that has amenties that would only be found in multi-million dollar mansions”.
It also has that wonderful Dutch basement and is on an irregular lot. (Were you expecting an acre or more for a house this size?)
Make it yours today for an unbelieveable 894k!!!
http://www.njmls.com/cf/details.cfm?mls_number=2914162&id=999999
Nom,
I think the UAW is going to ask for some protection but B.O. wil defer to congress and congress will start dumping wheelbarrows of cash at the displaced or otherwise adversely-affected GM and Chrysler bargaining-unit workers. Again, B.O. will defer to congress. He will duck every issue he can, because there are pleanty he can’t.
I think he has very clearly said that either through BK or negotiations, GM needs to get where it would get via BK. So, start wallpapering your basement powder rooms with GM stock certificates, as all current shareholders are going to be wiped out. The dealer network is going to be decimated, in its truest sense.
In a couple of weks, I would not be surprised to see GM consist of Cadillac, Buick, Chevrolet, and, maybe GMC, although GMC could be spun off. I don’t think Saturn and Pontiac survive. Anymore, beyond lux, near lux, and everyone else, what is needed? Even the nameplates that survive will, I suspect have fewer offerings.
If people are looking at the G20 Results they may finally come to the realization that their is no solution to the Bubble Problem. We will enter the “Greatest Depression”, as payback for the Fake Bubble Service Economy created in 1979.
#264 B.O is going to have his head handed to him by Angela Merkel.
“Memorias_del_Saqueo
Argentina financial crisis of 2001”
Kettle, thanks for putting the english subtitles on this film.
this is a great docu.
yes, people should watch, cause it coming your way.
SAS
something to think about next time your wife or your date powders her nose:
“The beauty products from the skin of executed Chinese prisoners· Cosmetics firm targets UK market ·
Lack of regulation puts users at risk”
http://www.guardian.co.uk/science/2005/sep/13/medicineandhealth.china
:P
SAS
““Memorias_del_Saqueo”
What was the link address?
holy sh%t !!
this current house episode is a stolen story.
wow.
wife likes House, I am stuck being in the same room.
in any case,
SAS
SAS,
Get some wine, or milk and cognac and it will not matter soon enough.
speaking of stories…
i know some you blokes like that show “24”
i hate to break it to you, thats a govt run “militainment” show.
CIA gives them stories. aka. Top Gun
CIA has Oliver Stone by the shins.
many pop culture movies & TV shows have been purposlt planted stories for propgandistic reasons.
i can go on forever, but i won’t.
SAS
Honey, does this make me look fat?
http://photos.ecanadanow.com/obesity-cd32.jpg
“Pension insurer shifted to stocks
Concern increases as losses mount; Failing plans could overwhelm agency”
http://www.boston.com/news/nation/washington/articles/2009/03/30/pension_insurer_shifted_to_stocks/
Can anyone provide the public access website for Hudson County MLS? Thanks!
“Hudson County MLS?”
thats a conspiracy theory, doesn’t exist.
just go back to eating as much as you can and max out as many credit cards you can.
after all,
your not a citizen….
your a consumer..
:P
SAS (with a wink)
stater (249)-
That’s nothing. The principal of the school in Stockton Boro (smallest school in NJ) makes over 100K a year. They have 33 students…spread from K-6.
Unbelievable.
Are we having a gtg soon? DH wants to know who is making me giggle so much (ChiFi).
can anyone tell me why RiverEdge is getting such a bad rap on this site? what did that town do to anyone? or is it the residents you are all making fun of? ok, then i understand!
blue ribbon schools mean nothing unless the home is ‘blue ribbon’ – by that i mean the parents take a vested interest in the child’s education…
btw, someone should do this analysis…most of the recent graduates that were elevated to those high paying positions in Wall street – dumb as a door knob when it comes to thinking rationally – probably graduated from the ‘best blue ribbon’ schools in NJ!!!!
#247 yikes
great stuff, Stu. Anyone who listens to this clown about ANYTHING deserves what they get. i wonder if he can tie his shoelaces or button his jeans.
Got Velcro?
Hudson:
http://www.mlsguide.com
#249 kettle,
i don’t understand it either. Why are CEOs of major banks that are now gorging at the public trough allowed to stay on?
Why would the US allow GM and Chrysler to go bust? I thought 3 million people work in the auto industry in some capacity.
Shore Guy says:
March 30, 2009 at 5:18 pm
“http://unemploymentolympics.com/”
Chifi,
Maybe they can walk over and persuade Patti Smith to play for the opening ceremony. She can sing: “Because the Debt.”
Excellent :)
lostinny says:
March 30, 2009 at 9:20 pm
Are we having a gtg soon? DH wants to know who is making me giggle so much (ChiFi).
GTG in Atlantic City….
http://ev6.evenue.net/cgi-bin/ncommerce3/SEGetEventInfo?ticketCode=GS%3AGLOBAL-BORGATA%3ABOR09%3AEBG0801%3A&linkID=global-borgata&shopperContext=&caller=&appCode=
[261] redux
from the boston globe story:
“Nonetheless, agency officials say that if the pension agency fails to meet its obligation, the government would come under intense political pressure to step in. That means taxpayers – including those who don’t get pensions – could be asked to pay for a bailout.”
If you think you have seen the mother of all bailouts, what Kronish is talking about is the mother of all bailouts.
This was why I expected to be fully disinvested by 2010.
What recession?
WSJ
Burger King Holdings Inc. is breathing new life into some of the hundreds of Starbucks Corp. locations closed by the coffee chain in response to the economic downturn.
“Who would’ve thought five or six years ago that we would ultimately be able to take over a conversion of a Starbucks location?” Burger King Executive Vice President Russell Klein said at a recent investor conference.
#279 caic: It is I, and I am not knocking River Edge in fact I like my town;its home.
I am knocking the still in so many instances outrageous asking prices, and the fact sellers/realtors use blue ribbon train town to justify delusional asking prices as well as outrageous property taxes.
It can apply to other so called blue ribbon train towns in Bergen Co or elsewhere in NJ.
some dense reading today. i’ve been busy at work and also recently just got back from vaca this sat. been reading the blog sparingly in the past few weeks.
a RE note from my travels. was out in SF & Tahoe last week. got our rental in tahoe for about 40% off peak rental price as per owner. sounded about right since per family we only spent $75 a night for housing. we also noticed at night that most houses looked empty since all lights were out. I’m guessing about 2/3 of the houses. oh yeah, skiing was fantastic. 2nd night got 18-24 in of snow. skiied squaw and northstar. saw some new developments at northstar. they were desperate for traffic, though they got the occasional internet millionaire plunking down big $ for places.
friend in sf said houses in primo neighborhoods still asking for near peak prices, though he didn’t know what actual sales were. areas outside the city absolutely decimated. unfortunately they bought last year, but at least it was a deal on an estate sale. many houses for sale, but not as many commercial for rent signs like in NYC.
You won’t hear me complaining about Patti Smith, but what about the Talking Heads?
Think you’ve had enough-
Stop talking, help us get ready
Think you’ve had enough-
Big business, after the shakeup
plume (242)-
GM learned from the banks. The most effective tool in negotiating with the gubmint is blackmail.
“You wont hear me complaining about Patti Smith, but what about the Talking Heads”
Psycho Banker. Duh duh duh duh duh. duh duh duh.. TARP TARP TARP TARP TARP TARP TARP a-way….Eye eye eye eye…Bail-ail-out
“GM learned from the banks. The most effective tool in negotiating with the gubmint is blackmail”
Also, while GM makes things, the banks own the central bank, and the central makes money.
Clot/Grim/other Realtors:
How are you coming up with recommended list for clients? Or as buyers agent, how would you recommend a homes value for buyers? I’m curious as I’d imagine this gets harder with fewer sales and weekly barrages of declining national/regional stats.
Rev (293)-
You mistake me for being an analytical person.
Analytical people make horrible Realtors.
Gauging value in this environment goes like this:
1. Find house you like.
2. Find out if seller is underwater and/or desperate.
3. Buyer asks Realtor to give him comps.
4. Realtor tells buyer to start offering (offering low, that is).
5. Once the seller accepts your offer, you’ve now created a new comp.
Here’s how I work the other side of the table:
1. Find out how desperate/underwater my seller is. Usually I get this story before the first face-to-face.
2. Find out how committed my seller is to doing the right thing, rather than stiffing his lender in order to obtain a fantasy price.
3. List house. Cheap.
4. Field offers.
5. Tell seller to consider all offers that come from qualified buyers. If it’s the only offer present, once it appears the buyer won’t budge any further, tell the seller to sign the contract.
See how easy RE is?
Thanks Clot… I guess I’m a numbers weenie, and I fear the opinion of my gut, and the emotions of the sellers/realtors.
Read an article about appraisers having this problem. Too few comps, and dropping prices.
Here’s what I do (in case anyone else finds it helpful):
I get the sale date and plot it against the NJAR qtrly index for the respective county and do the same for the Case-Shiller monthly NYmetro indices… They often agree. OFHEO’s indices seem way off. If no sales data for that house (or it’s too old), I’ll try to look at comparable houses in the neighborhood (even if sold years ago), and plot them against the indices, to guestimate THEIR current value.
It’s been useful for me, but of course the latest index value is a few months old (so you have to trend a bit at the end), and it doesn’t help predict future drops.
Clot, you’d probably throttle me if I was your client.. :)
Rev, I wouldn’t work with you. In fact, I’d bet you $1,000 you’ll never buy a house.
You’d say: “You like it? JUST DO IT!!”
I’d say: “But my graph says…”
Rev, that’s my problem, not yours. I don’t take on analytical people as clients.
I can’t handle paralysis by analysis, and I can’t find a work-around.
On one thing, I’ll insist I am right:
Residential RE- in the micro sense- has nothing to do with logic.
Clot,
I recall you saying that awhile back to someone, and I thought it was… arrogant?
But you were actually right. The paralysis thing is real, and I’m probably not suited to this kind of marketplace.
If I had my way, I wouldn’t buy a house.
Unfortunately, my wife is not that type, and will leave me if we don’t get one by summer.
clarification: I recall you saying to someone else that they would never buy a house.
Anyway, appreciate the candor. Off to bed.
Rev (301)-
I hope you wake up Tuesday AM, and show this to your wife.
In a market like this, “I want it” is not a solid enough justification for buying a house by some date certain.
Deciding not to buy a house in the current environment is a SMART CHOICE from most people. The market is going to get worse, and prices will get much better for you if you wait.
I only counsel my buyers to allow instinct to work in their favor when their basic premise for buying is sound.
You cannot use logic to make the process precise, nor can you use it to predict or time a market bottom. However, when we are at/near the bottom, you are going to have eons of time within which to make decisions, because any recovery that follows will NOT be V-shaped.
BTW, if my wife put pressure on me like that, I’d call her bluff.
301. Geez….do yourself and favor and let the woman go. I love owning a home, but partly because I live in it with a sane woman.
Clot #303 and Rev #301
Second (or third) Clot’s note. I got a similar advice from Grim when I asked him for advice on a property.
Though, all said, I’d be kinder to wifey. I think I can relate to her situation. And I hope that the summer threat is more of a rhetorical statement.
For the longest time, we (my wife and I) were wondering whether we will ever afford a house. My personal opinion is that a house is four walls and a roof… Now that prices are coming down (and throw in a few REOs), we can look at houses that we’d never have even bothered to think about.
I try to reassure my wife that this *MAY NOT* be the market bottom *YET*. And that we can put more money down a year from now, and may be able to get something nicer for lesser price.
In fact, I will use Clot’s post as another reassurance.
Of course, I’d definitely ignore the suggestions about calling the bluff. And, *DO NOT* question the sanity, *EVER* :)
S
Clot #303 and Rev #301
Second (or third) Clot’s note. I got a similar advice from Grim when I asked him for advice on a property.
Though, all said, I’d be kinder to wifey. I think I can relate to her situation. And I hope that the summer threat is more of a rhetorical statement.
For the longest time, we (my wife and I) were wondering whether we will ever afford a house. My personal opinion is that a house is four walls and a roof… Now that prices are coming down (and throw in a few REOs), we can look at houses that we’d never have even bothered to think about.
I try to reassure my wife that this *MAY NOT* be the market bottom *YET*. And that we can put more money down a year from now, and may be able to get something nicer for lesser price.
In fact, I will use Clot’s post as another reassurance.
Of course, I’d definitely ignore the suggestions about calling the bluff. And, *DO NOT* question the sanity, *EVER* :)
S
Essex,
A sane spouse is a very good thing, especially in unsettled economic times.
Essex,
A sane spouse is a very good thing, especially in unsettled economic times.
Essex,
A sane spouse is a very good thing, especially in unsettled economic times.
Essex,
A sane spouse is a very good thing, especially in unsettled economic times.
Shore Guy? Channeling Jack Nicholson?
Not sure what happened there. But, it is true that, “All work and no play makes Jack a dull boy.”
Now there’s two guys I have to worry about, you and SAS.
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I bookmarked this guestbook. Thank you for good job!
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