Too radical?

From New Jersey Newsroom:

Christie can cut billions more from N.J. budget if he really believes in limited government

Governor Christie’s property tax cap allows residents to override the 2.5% cap. What is the point of a cap then? Self government means that voters should be able to determine how much they want to spend on municipal services and schools. Local officials are supposed to be held accountable to voters who “hire” them at every election. If the officials are not good stewards of the public’s money, they should be fired by the voters when they seek another term in office.

If homeowners and residents in upper income towns want to increase spending on municipal services by 5% or more, they should go for it. After all, it’s their money. The governor should not object to self government. Besides, a 2.9% cap is an unwarranted interference in local governance.

To limit property tax increases, state government should give mayors and council as well as boards of education the tools to negotiate with police and teachers’ unions so taxpayers are not raked over the coals. Municipalities should not be at a disadvantage in negotiating with unions over salaries and work rules. Eliminating police salary arbitration should be the first reform enacted.

However, the Governor and the Legislature are not addressing the real issues facing the state: the redistribution of income from the suburbs to the cities, the unfairness of school property taxes and the entitlement philosophy that undermines most state spending.

The solution to the redistribution of income and high property taxes is 1) phasing out the state income tax over the next three years so residents around the state will have more of their money to pay for local services; 2) municipalities should charge fees for services; 3) and phasing out the entitlement spending that is driving costs higher every year in the state.

For example, in towns with swimming pools, like the one I used to live in, the town charged a fee to use the facility. This principle could be extended to libraries and schools. In fact, schools are “outsourcing” summer school this year; parents have to pay tuition for classed their children will be taking. In the fall, schools are implementing athletic fees. In other words, fees for services are being introduced in towns to deal with the fiscal crisis.

The next fiscal reform should be phasing out school property taxes over the next three years. The angst over property taxes will end once-and-for-all as municipalities no longer tax to fund public education. Parents would be in charge of education spending as teachers and administrators would have to structure the nonprofit schools for optimal performance — high quality and reasonable costs. In short, the empowerment of parents in education decisions would be maximized.

Critics will object that the “dismantling of public education” will be intolerable for children, but what they really mean is that they don’t want to eliminate the public school monopoly. Frederic Bastiat said it best more than 150 years ago:

“Socialism, like the ancient ideas from which it springs, confuses the distinction between government and society. As a result of this, every time we object to a thing being done by government, the socialists conclude that we object to its being done at all.”

And entitlement spending too must be phased out. Nonprofit institutions should be responsible for delivering health, counseling and other services the state, counties and local governments now provide. Phasing out of government welfare spending does not mean that people should suffer. On the contrary, it means the people of New Jersey would contribute directly to the best organizations that are assisting our fellow citizens in need. Charitable giving is humane; as Bastiat remarked, the welfare state is “phony philanthropy.”

This entry was posted in National Real Estate, Property Taxes. Bookmark the permalink.

168 Responses to Too radical?

  1. grim says:

    From Bloomberg:

    Foreclosed Homes Sell at 27% Discount as Supply Grows

    Homes in the foreclosure process sold at an average 27 percent discount in the first quarter as almost a third of all U.S. transactions involved properties in some stage of mortgage distress, according to RealtyTrac Inc.

    A total of 232,959 homes sold in the period had received a default or auction notice or were seized by banks, RealtyTrac said in a report today. That’s down 14 percent from the fourth quarter and 33 percent from the peak a year earlier, the company said. The average price of a distressed property was $171,971, according to the Irvine, California-based data seller.

    “The discount will probably stay between 25 percent and 30 percent as lenders carefully manage the number of new foreclosure actions in order to avoid flooding the market,” Rick Sharga, RealtyTrac’s senior vice president for marketing, said in an interview.

    “We’re clearly creating more properties that will be sold at distressed prices than the market is absorbing,” Sharga said. There were more than 250,000 new bank seizures in the first quarter.

    The discount reflects the average sales price of homes in the foreclosure process compared with the average sales price of properties not in distress. About 31 percent of all U.S. sales in the quarter were of homes in some stage of foreclosure, RealtyTrac said.

  2. grim says:

    From CNBC:

    Fixing Housing Crisis: Time To Scrap the 30-Year Mortgage?

    The long-term mortgage, which began as a Depression-era remedy to keep Americans in their homes, may be out of step, given the current housing crisis.

    Could it be time to say good-bye to the popular 30-year mortgage?

    “The 30-year mortgage is outdated, the standard fixed-rate mortgage is outdated, and it has to be improved,” housing expert Robert J. Shiller told CNBC.

    Shiller is Yale University professor and author, who is best known for co-creating the S&P/Case-Shiller Housing Indices, which track home prices in the United States.

    “People want a more modern vehicle, and that’s something we need to think about next,” Schiller said.

    With the sweeping financial regulations bill nearly finished, the next big job of Congress may be to revamp the broken housing market and scrutinize all its key elements, even the vanilla 30-year mortgage.

    Once Americans look more closely at this country’s housing situation, they may realize, and maybe even be surprised by, the fact that even though the US leads the world in 30-year mortgages, it doesn’t in home ownership.

    “We spend a whole lot on housing in the US and don’t necessarily get a very big bang for the buck,” said Mark A. Calabria of the Cato Institute.

    American homeowners, it turns out, have a very sweet deal to buy their home sweet homes, with the government being their candy man. For instance, America is nearly alone in not charging a fee for paying off mortgages early. And it’s one of the most liberal countries in allowing interest to be tax-deductible.

    “If America wants the government out of housing, it has to get used to a number of things,” said Raghuram G. Rajan former IMF economist, author of Fault Lines: How Hidden Fractures Still Threaten the World Economy and professor at the University of Chicago’s Booth School of Business.

    “For example, shorter mortgage durations, higher interest rates [and] potentially lower housing prices, because the cost of financing has gone up. Is it ready for that? I don’t know.”

  3. Mr Hyde says:


    from last night: not making fun of your civic. Someone on the blog talked about having a 2-1/2 ton military truck before. I couldn’t remeber who it was.


    pain is just gods was of letting you know your still alive.

  4. Jim says:

    There was conversation during the past week about how to get to your hideout, spiderhole, etc. in the event of world-wide economic/society collapse (for those in Detriot that has already happened). Here is the solution but it is only for the rich. The rest of us will have to walk or attempt to drive to our hide-out or missile silo converted condo.

  5. grim says:

    What idiot came up with that?

    Looks like it does nothing particularly well.

    They could have spent their time solving important problems like designing a blender wristwatch.

  6. Pat says:

    Would that particular wristwatch cost more or less than $194,000?

  7. Pat says:

    I’m obviously still in my nightmare from last night in which I go to a job interview at a company named Acme and it turns out to be a former employer of mine.

  8. Yikes says:

    Grim, whatever happened to Nashville?

  9. Simply Ravishing HEHEHE says:

    You really have to wonder how much book-cooking is going to go into the upcoming job numbers. Prior to a holiday weekend I have a hard time believing they’ll let it come in any lower than expected.

  10. grim says:

    Priced at 200k, but it comes with a matching BMW and Cessna (pre-owned).

  11. Simply Ravishing HEHEHE says:

    “I’m obviously still in my nightmare from last night in which I go to a job interview at a company named Acme and it turns out to be a former employer of mine.”

    Wile E Coyote the interviewer?

  12. Nomad says:

    SL – the marines would beg to differ – in their opinion, pain is weakness leaving the body.

    30 yr mtg – fine, dump it. force down housing prices to a more realistic level and reduce demand for the McMansions and the need for multiple furnace / AC systems for a single family home. Less space to heat, cool, maintain, pay taxes on and less room to store crap people don’t need.

    Like I have said before, many europeans live in 1000 sq ft, have less stuff (much high quality though) and what appears to be a far better quality of life.

    Wretched excess makes me want to puke. Someday maybe americans will figure out less is more or perhaps someday the decision will be made for them.

  13. Mr Hyde says:


    the army reminds you of that on a regular basis in basic training as well

  14. Mr Hyde says:

    Regarding the main article,

    while I think the general concepts are sound, the state needs to have some place in education. if we assume school property taxes were eliminated, the parents of brigadoon may be able to easily pay for school for their kids, will the parents in Newark and Camden be able to do so? Perhaps they would, I don’t know. But I do know we want to be careful of brazilification. We are already on that road, but there’s no need to accelerate it.

    In such a model I would imagine that you would want some sort of basic public education available.

    Better yet, ban property taxes and fund basic public education through consumption taxes. Education is an important enough social benefit that some sort of public system should be in place

    As long as there are property taxes you will never really “own” a square inch of RE, you are just renting it from the state.

  15. Simply Ravishing HEHEHE says:

    From Panzner:

    “Not the Time for Happy Talk and Wishful Thinking
    One of the drawbacks of living in a digital age is a pervasive, tunnel vision-like focus on “the numbers,” often to the exclusion of everything else. Sure, hard data matters, especially when the topic at hand is business and finance, but that’s not the end of it. What is just as important is what those numbers actually mean, how they are interpreted, and what people plan to do as a result.

    If, as we’ve seen in the U.S. (and elsewhere), the statistical picture is ostensibly positive but the majority are clearly in no mood to spend or invest, then it seems to me that the soft data, as such, should be weighted much more heavily.

    In fact, the dark and deteriorating social mood, as revealed through first-hand accounts, anecdotal and news reports, and other means, is one of the reasons why I have remained steadfastly bearish despite all the “good news” Washington and Wall Street keep shoveling our way.

    Arguably, the background details of a monthly statistical series announced this morning, summarized by Dow Jones Market Talk in “‘We Are Just Trying to Hold on,’” lend further support to the notion that now is definitely not the time for happy talk and wishful thinking”

  16. Nomad says:

    Want to raise money in this country, how about an Obesity tax.

  17. All "h-Train" Hype says:

    Continuing claims total 4.26 million, up 43,000
    Claims 4-week moving average up 3,250 at 466,500
    Weekly jobless claims rise 13,000 to 472,000
    The slow bleed continues…..

  18. grim says:

    Never happen, because it ultimately boils down to being a tax on corn, something that big agribusiness and their government cronies would never allow.

  19. Cindy says:

    How Consumer Gloom Might Save the Economy

    But it morphed into a sense of entitlement….

    I liked this piece.

  20. Simply Ravishing HEHEHE says:

    Speaking of what you eat:

    “Is there a deliberate effort by the government to dumb down the masses? The statement is hard to prove but there exists a great amount of data proving that the ruling elite not only tolerates, but effectively introduces policies that have a detrimental effect on the physical and mental health of the population. This series of articles looks at the many ways the modern man is being dumbed down. Part I looks at the poisons found in everyday foods, beverages and medications.”

  21. Cindy says:

    Pat – 112 – yesterday

    “Can you tell me if you have any experience with the overall success/ failure of breaking 3rd, 4th or 5th grade into part time teacher groups?”

    No…sorry, I have only worked in elementary school situations where two teachers shared one contract.

  22. Knifecatcher - Painhrtz says:

    Nom from yesterday

    “And I don’t even know where Lodi is.”

    This is not a bad thing!

  23. Final Doom says:

    nomad (17)-

    Better yet, tax stupidity.

    However, we are approaching a time when there are no wise men left.

  24. A.West says:

    Requiring people to pay for their services isn’t an idea too radical for me. I’m not a fan of the Libertarian Party as a political movement however.
    I’m willing to roll back government to the point that the police, courts, and prisons are the only “free” local government services.

    What we’ve got now at the government level is an all-you-can-eat buffet full of greasy slop, with the cooks and waiters getting paid as if they were running a five-star restaurant, and customers charged, whether they eat or not, according to how wealthy they look.

  25. Mr Hyde says:

    A west

    How about we change the system so that cops arent revenue collectors/generators. Change the system so that any money from fines goes to something that prevents the government from accessing the money, such as a general fund to divied up amongst non-profit charitable organizations.

    As long as the government has access to that revenue stream it provides an incentive for drive the police to act as revenue generation as opposed to law enforcement.

  26. jamil says:

    unexpected again!

    “WASHINGTON (Reuters) – New claims for state unemployment aid unexpectedly rose last week, heightening fears the U.S. economic recovery is stalling.

    Initial claims for state unemployment benefits increased 13,000 to a seasonally adjusted 472,000, the Labor Department said on Thursday.”

  27. A.West says:

    Good idea. Of course once we’ve privatized the roads and let their owner(s) do the driving fine definition/collection, police are unlikely to be significant revenue generators afterwards.

  28. grim says:

    Nice pending numbers

  29. Simply Ravishing HEHEHE says:

    Biggest Monthly Pending Home Sales Drop On Record As ISM Manufacturing Index Misses Big

    Hey the mirage is disappearing, no green shoots, just sand.

  30. Simply Ravishing HEHEHE says:

    We might hit 850 by mid-month

  31. me@work says:


    second day below 1040?


  32. Simply Ravishing HEHEHE says:

    “second day below 1040?”

    Done deal absent intervention.

  33. Jamal Van Jones says:

    I’m willing to roll back government to the point that the police, courts, and prisons are the only “free” local government services

    In other words, services that benefit my class.

  34. Frank says:

    Where’s the recession???

    Manhattan Apartment Sales Surge to Two-Year High as Wall Street Adds Jobs

  35. Mr Hyde says:

    I like to gamble and i expect to lose money… i went long DJIA

  36. Mr Hyde says:

    I was getting tired of throwing my money away on hookers&blow

  37. A.West says:

    I think other “classes” benefit more from those services than I do. I’m an infrequent user. But the government in the US was established to secure individual rights and liberty, which immensely benefits people of all “classes”, and without police, army, and courts, there’s no way to secure these benefits.

    I have heard of an intriguing idea to generate revenue from the court system by charging a contract fee, something mostly used by businesses. Some contracts already have fees built in by government – seems like real estate transactions do. But pretty much every contract which someone might take to court could require a stamp.

  38. Jamal Van Jones says:

    I think other “classes” benefit more from those services than I do. I’m an infrequent user.

    No, people with assets benefit more from these services. What is to prevent a vagabond from coming into your house and stealing your stuff, violating your women? Or a competitor from copying your IP?

    Poor people will not be as adversely affected in the absence of these services, since they have no assets to protect.

  39. maylook1day says:

    – not looking at live quotes but nasdaq looks almost vertical for the moment.

  40. me@work says:

    may, 42

    look out below!


  41. Comrade Nom Deplume says:

    [13] nomad

    Pain is your friend. It lets you know you are still alive.

  42. Comrade Nom Deplume says:

    [39] hyde

    The actor George Raft (a contemporary and animus of Edward G. Robinson), squandered the fortune he made in acting.

    He said “Some I spent on booze, some I spent on women, and some I spent gambling. The rest of it I spent foolishly.”

  43. Mr Hyde says:

    wow, how about GBPUSD.

  44. Comrade Nom Deplume says:

    [23] knife

    Actually, I may have misspoken on people from Bergen. A friend of mine here (yes, still here today) is from Teaneck (that’s BC, right?) and I would not characterize him as a pu$$y. Not in the least.

    So that’s one.

  45. Comrade Nom Deplume says:

    Finally seeing some jobs in an agency that I always thought I would end up in.

    The IRS.

    Yes, I am thinking of going over to the Dark Side.

  46. Confused in NJ says:

    ATLANTA, GA — Maggots falling from an overhead bin from a spoiled container of meat forced a US Airways flight to return to the gate so the bin could be cleaned.

    Passenger Donna Adamo, a Syracuse resident and former WTVH anchor, said she noticed a couple of flies on the Monday flight when she got to her seat but didn’t think much of it. Then, as the plane was taxiing, she heard a passenger behind her causing a commotion and refusing to take her seat.

    “Then I heard the word ‘maggot’ and that kind of got everybody creeped out,” she said. “All of a sudden, I felt somebody flick the back of my hair and on the front of me came a maggot, which I flicked off me.”

  47. Comrade Nom Deplume says:

    [46] hyde

    The buck is getting hammered. Look at the EUR/USD spike

  48. Comrade Nom Deplume says:

    [24] doom

    “Better yet, tax stupidity.”

    Finally, a solution to the deficit and the debt. I’ll draft the Code Sections.

  49. New in NJ says:

    I object in general to the unholy alliance among for-profit interests (such as prison operator CCA), the legislatures that pass increasingly harsh sentencing laws that were written by the prison operators, and the police and court systems that enforce the ridiculous, often victimless crime laws for the benefit of the local legal machine (and general funds, in the case of fines). All of this to the detriment of the general population.

    Why do we support this? Because we’re told that it makes us safer. What a joke.

  50. me@work says:


    *wiping coffee off my monitor*

    You owe me a new cup of Dunkin’ courtesy your comment 51.


  51. Mr Hyde says:


    I got a hot tip from a 1 eyed squirrel that we will see the DJIA turn around in the next 2 – 3days. you just have to ride the intervening down side. Of course it help when your independently wealthy and only work to give yourself something to do…


  52. Simply Ravishing HEHEHE says:

    “I got a hot tip from a 1 eyed squirrel”

    Is his name Madoff?

  53. Sas3 says:

    A. West, some of your ideas have already been implemented: small government, land owners control access to roads, etc.

    Kabul has transformed a lot when it was ruled by a socialist/communist party to a free enterprise.

  54. Mr Hyde says:


    you know the same squirrel????? He said I could triple my money if I could give him a small 500k deposit.

  55. Sas3 says:

    Nom, there’s a saying, a (converted) thief will be the best policeman. You know all the loop holes, so now you go get those rich.b’s that exploit these loop holes.


  56. me@work says:

    ppt called back from tee time?


  57. Al "Fat Thumbery" Gore says:

    Looks like Mish was right. Fing deflation, war, and a toxic volcano. Im thinking we have to tank bad before Bergabe can get congress to sign up for a few hundred billion and the Fed takes care of the rest.

    Election year and no appetite in Congress. Better get some extra ammo.

  58. Sas3 says:

    Newbie question on refi:

    Is it worth refinancing to move from 5% to 4.5%? What percentage drop would be worth it, say for about 250-300k principal. Any advantages if the loan is relatively new [1-2 years], or it has to go through the whole appraisal/inspection process again?

  59. implosion08 says:

    OT – has anyone paid for Reggie Middleton’s subscriber content and, if so, thoughts? He seems to share a lot of this board’s opinions and he crunches a heck of a lot of data but price is steep and some of it is tough reading for a non-Street guy. Thanks

  60. Al "Fat Thumbery" Gore says:


    I refied 2 years ago from 5.87 to 4.62. Generally a 1% decrease is the rule, however, it also depends on how new the mortgage is due to the amortization schedule.

    Based on your info it looks like your right on the fence. They made me repeat the appraisal even though it was 1 year old.

  61. Juice Box says:

    Heads need to roll.

    Avertible catastrophe (Gulf Oil Spill)

  62. FIinal Doom says:

    Die, market, die!!!!!!

  63. Mr Hyde says:


    how about we drop the BP execs off at the site of the spill and tell them if they can swim home their free to go

  64. chicagofinance says:

    see if you can get it without out of pocket cost and have it built into the rate…if you are still in the black, then it is your theoretical go/no go

    Sas3 says:
    July 1, 2010 at 11:46 am

    Newbie question on refi:

    Is it worth refinancing to move from 5% to 4.5%? What percentage drop would be worth it, say for about 250-300k principal. Any advantages if the loan is relatively new [1-2 years], or it has to go through the whole appraisal/inspection process again?

  65. Mr Hyde says:

    Sort of like what the Russian navy did to the Ethiopian pirates

  66. FIinal Doom says:

    implode (62)-

    Reggie Middleton’s free content is so detailed, you can act on it. I have, to some nice gains.

    Disclaimer: I also thought the Faroe Islands would make the WC finals.

  67. Final Doom says:

    DRV, baby…DRV!!!!

    sl, if you see me in your ER, you’ll know why. :)

  68. meter says:

    Gold being taken behind the woodshed, though not sure why.

  69. I think some of this is getting a little too out there. Radical, no doubt!

  70. Sas3 says:

    Doom, how much premium you’re bleeding every day with a 3x ETF like DRV?


  71. Simply Ravishing HEHEHE says:

    Looks like bergabe has seen enough?

  72. Final Doom says:

    sastry (73)-

    I just put on DRV today for a very short-term pop.

    I don’t do much with 2x/3x stuff that’s for more than a day or two.

  73. Final Doom says:

    HE (74)-

    In the end, Bergabe will be crushed.

  74. Simply Ravishing HEHEHE says:


    You promise:)

  75. Mr Hyde says:


    I’m with doom. I would bet against bergabe in the end.

  76. me@work says:


    These are balls-to-the-wall etfs. You can make a lot of money but you have to understand the beast. I know Doom understands the beast.


  77. me@work says:

    My long portfolio is bare minimum at this point. I am cash or short with the rest. I smell more badness coming and I want dry powder to reload as needed. My faith is long long gone.

    usual disclaimer: I learned trading from chinese fortune cookies studied only when I am drunk.


  78. Mr Wantanapolous says:

    “I would bet against bergabe in the end.”


    Been betting against him from the beginning.

  79. Mr Hyde says:

    Mr Wantan the oracle of NJRER

  80. Confused in NJ says:

    It’s interesting that the powers that be insist that blowing the Gulf Well could make it worse, when in fact it appears that nothing can make it worse then it already is. If they are really drilling through two miles of rock for the relief well, then a conventional explosive placed down the well at the mid point of two miles of rock ought to seal it. Not mud, two miles of rock.

  81. Sas3 says:

    Al and Chi, thanks for the feedback. I took the plunge and the guys at FVF (Doom’s finance guy) are working on a 4.375 rate [down from 5 — saves over a hundred bucks a month at an upfront cost of about a couple of k].

    I will write off the inspection costs as necessary work to see what harm I did to the house in the last one year.


  82. sas says:

    “obesity tax”

    i like that one. but agree with grim about the corn.

    obesity is a good way to keep one stupid, and throw in a little LeBron James and AMerican idol….you’re prime pickings…you fat hog!


  83. Juice Box says:

    Stages of evolution in modern central banking:

    1. “High inflation is bad. Our objective is to avoid high inflation”.

    2. “High inflation expectations cause high inflation. We need to manage inflation expectations”.

    3. “So long as inflation expectations remain low, inflation will remain under control. We need to focus on inflation expectations”.

    4. “Never mind high inflation, just keep on telling everybody that inflation will be low.. soon”.

    5. “Why won’t anybody listen to us???”

    6. “Gee, this gold we have is worth a lot of money!”

  84. Fabius Maximus says:

    #84 Sas3

    Just locked the same rate.

    What a geat day for a Refi!

  85. sas says:

    remember what I told you about cigs being a currency.
    oh MBA types won’t learn that one from your nutty professor.

    “Tax Pushes Cost of Cigarettes In New York Up to $11 Per Pack”–11-Per-/7596222

  86. Juice Box says:

    Immelt is he the next Lee Iacocca?

    “We have to become an industrial powerhouse again but you don’t do this when government and entrepreneurs are not in synch.”

  87. Final Doom says:

    I doubt they teach “crime that pays is crime that stays” at Harvard MBA.

  88. Final Doom says:

    Immelt = gangster

  89. Sas3 says:

    Juice #86

    Based on what I observed, near-term inflation is not a worry.

    Compared to late 2007:

    1. Houses are much cheaper (good for new buyers, and *gasp*, even for people wanting to “upgrade”).
    2. Rates are lower [combined with 1, is a pretty good thing, again for new buyers].
    3. Prices of essentials are lower [things like gas, grains, etc.]

    I had some cash stashed away for “eventually buying a house” in late 2007. Couldn’t put in stocks because I would have needed it in a couple of years, and the interest rates were pitiful (better than now, but still…), prices of everything were zooming up, and stocks were on a tear — which meant that the opportunity cost of savings accounts was very disadvantageous.

    Despite my personal experience coloring my world view, I’d say late ’07 was very bad — from a perspective of someone wanting to “settle down” with respect to homes. Not to mention, having had to answer people why we haven’t bought when everyone they know have great houses.


  90. meter says:


    – Housing prices, in spite of some correction, remain historically out of line vs salaries
    – Salaries are down
    – Workloads are up (ask Stu)
    – Unemployment is up
    – Food/staple prices are rising
    – Healthcare costs continue to skyrocket
    – NJ Transit just instituted a 25% across-the-board increase; similar huge spikes in NYC public transportation costs

    and the biggie:

    – r.e. taxes continue to rise and show no signs of abating. I would rather pay double the cost of whatever house I buy than be saddled with $15-20k in taxes per year, compounded from a near-guaranteed 3% to 3+x% per year in perpetuity.

  91. Sas3 says:

    Meter, the major driver is employment. Better employment -> better income and sales tax revenues and lower prop taxes.

    I typed about “lucky to be employed” — but didn’t want to jinx it.

    Food prices are mostly lower than in ’07 and are rising at a slower pace too than what was normal towards end of ’07.

    Workloads, aren’t we all supposed to working because we love the job? :)

  92. Mr Hyde says:


    Better employment -> better income and sales tax revenues and lower prop taxes


    you think property taxes will go down without drastic changes? Better income, did someone just nuke china and india?

    Are you interested in buying a bridge?

  93. meter says:

    The flaw in your logic is that there is no “better employment.”

    Maybe in Chennai or Pune, but not here.

    Unless you’re in banking. Big bonuses are all the rage again.

  94. meter says:

    Holy cr@p: gold went bonkers. I’m even tempted to dip a toe in.

    But I won’t.

    Not sure who I trust less: Morgan Stanley’s precious metal manipulation or gold bugs infesting the ‘net with fear and loathing for the sake of price appreciation.

  95. meter says:

    Morgan Stanley s/b JP Morgan.

  96. Confused in NJ says: says:
    July 1, 2010 at 2:30 pm
    remember what I told you about cigs being a currency.
    oh MBA types won’t learn that one from your nutty professor.

    “Tax Pushes Cost of Cigarettes In New York Up to $11 Per Pack”

    Be interesting to see if young New Yorkers have switched to illegal drugs, which are cheaper (no tax). Also be interesting to see where the tax will be shifted to, when Economic Prohibition achieves it’s end game. Personally, I’d like to see them make Cigarettes $1,000 per pack. Would save a fortune in unnecessary future Cigarette Legislation.

  97. Sas3 says:

    meter/Hyde… We can all hope for some technological breakthrough that will put us all towards comfortable lifestyle. Solar energy? Cold fusion (not the web services thingie)? Flying cars (oh, never mind)?

  98. Comrade Nom Deplume says:

    [99] confused,

    Know what the Mafia’s number one moneymaking activity is in the tri-state area?

    And it just got more lucrative.

  99. Comrade Nom Deplume says:

    [99] confused

    I expect we’ll see an uptick in offshore website titled or something like that. They can use the offshore website to solicit orders; cc charges go to the banks under inocuous headings; they contract with mules in low tax jurisdictions like S.C. to purchase, pack and mail cigs; and rake in profit.

    Kinda like an offshore gambling site.

    And just as illegal.

  100. chicagofinance says:

    clot: sent a client to First Valley…..n’kay?

  101. Mr Wantanapolous says:

    meter [97],

    Dip a toe in when the Prechterites objective is achieved.

  102. Confused in NJ says:

    The U.S. economy is in shambles and Americans will continue to see high unemployment and lower living standards in the years to come, Howard Davidowitz tells Henry and Aaron in the accompanying clip.

    Davidowitz lays much of the blame for the economy’s woes at the feet of the Obama administration, which he calls “the worst of my lifetime.”

    Obama “Mr. Mass Destruction”

    Davidowitz says that the key to Obama’s success is his ability to sell his policies to the public. He can confidently read from a teleprompter and appear competent and in control, when in reality, “it’s one big bag of empty words,” Davidowitz says of Obama’s messages.

    Davidowitz contends that the President’s spending, including the health-care bill, is creating massive deficits that will take the U.S. years to dig itself out of. “He is Mr. Mass Destruction,” Davidowitz says of Obama. “I mean he is a human destroyer. This guy has spent his way into oblivion and we don’t have a budget. He is surrounded by a bunch of complete incompetents, led by himself. “

  103. chicagofinance says:

    meter says:
    July 1, 2010 at 12:25 pm
    Gold being taken behind the woodshed, though not sure why.

    Everyone needed to have gold on the books for 6/30…now they don’t….be careful….if the market gets hit again, gold can get taken down too, because it is a read source of cash….I not saying it will happen, it just that you should be pissed that on a huge red day that it is red too….

  104. Confused in NJ says:

    Howard Davidowitz is a bear on America. If you’ve watched any of the recent clips, you know he’s negative on stocks, the economy and the political system. (If you haven’t seen them, check the links below.)

    Much of Davidowitz’s frustrations stem from the bailout of our financial system. “If a bank is bad, you let it go broke,” he says. “The bondholders lose their money, because they should. The stockholders lose their money, because they should. Lots of people get fired job, because they should. That’s the solution to the problem.”

    In the 1980s, Davidowitz’s firm worked on the restructuring of then struggling retailer Toys “R” Us. “We kept the good, we cut the bad. That’s how restructuring works,” he says. The national retail chain was cut down to 13 stores, but was kept alive. Today, the company is preparing for an IPO, five years after private equity giant KKR purchased the company for $6.6 billion.

    Again, Davidowitz believes the same measures should have been taken with the banks. Sure, bankruptcy is a painful solution in the short-term, but he believes the government’s rescue of some of our biggest financial institutions has had, and will continue to have, catastrophic economic consequences.

    As economist and Carnegie Mellon professor Allan Meltzer once said: “Capitalism without failure is like religion without sin.”

  105. chicagofinance says:

    be careful….if the market gets hit again, gold can get taken down too, because it is a readY source of cash….I’M not saying THAT it will happen, it’S just that you shouldN’T be pissed that on a huge red day, that it is red too….

    UGH :(

  106. Happy Daze says:

    The Guv needs to be a bit more ambitious.
    A minimum reduction of 2.5% YOY in property taxes should be in effect.
    Then let each community actively decide how to adjust.
    (Just have the riot police ready.)

  107. Mr Wantanapolous says:

    Chi [106],

    Why be pissed since the stock market was down? The move today, gold, was in currency switches; Eur/Gold, Yen/Gold, etc..

  108. d2b says:

    Will your mortgage guy do PA refi’s? If so can you post an email?

  109. chicagofinance says:

    Mr Wantanapolous says:
    July 1, 2010 at 3:54 pm

    Chi [106], Why be pissed since the stock market was down? The move today, gold, was in currency switches; Eur/Gold, Yen/Gold, etc..

    Bost: I am just mentioning that some people may be looking for that huge day where the market sells off 5% and then look and see the GLD up 10% or something….it just isn’t that straightforward….the move is more likely anything non-currency to currency; the secondary move is currency to currency and then to gold…..the point is that collateral gets posted as cash not gold, so it will be pressured along with everything else…..

  110. sas says:

    “Flying cars (oh, never mind)?”

    what a joke these flying cars.
    alot of you drive like complete imbusuls on the NJT & 78…you think I want to share the skys with you?

    you’re nuts.

  111. Essex says:

    I see a few flying cars — minivans with angst ridden young women driving with little care or awareness of a safe following distance. I stick to the backroads.

  112. Mr Wantanapolous says:

    Chi [112],

    Agree. I was just talking about today’s action.

  113. Sas3 says:

    Daze #109…

    “A minimum reduction of 2.5% YOY in property taxes…”

    You do realize that the math breaks down very quickly. 30 years — the time period when I think financially the SHTF.

  114. Al "Fat Thumbery" Gore says:


    Congrats if you get that 4.3 rate. Thats holy sh_t good. I think if we see 4% that I would be tempted to refi again.

  115. Jim says:

    I’m telling you, that flying car is the solution to get everyone to the Nompound once the SHTF. We could all pitch-in for gas. The plane/car would have to be stored in a central location. If the Nompound is too far away there would need to be one or two refueling points along the route.

  116. Jim says:

    It may be best to mount a machine gun on the flying car in case there are any bad guys near the Nompound. That way someone could go up and make a strafing run every so often.

  117. Sas3 says:


    You do realize the flying car is for “two people” — if you consider round trips, it means basically one person transported per trip. Enormous amounts of gas involved — gas that can be used to “burn baby burn”.

    Mounting a machine gun means lesser weight for cargo. A short, thin pilot may be needed.

    You would need to defend against zombies of Palin land. Though they don’t have brains, they have guns and will shoot randomly. No need to worry about libs ‘cuz they won’t be able to do much harm with “strongly worded essays”.

  118. wtf says:

    (105) Yeah, this country has no problems before Obama came along. Davidowitz is a douchebag.

  119. Jim says:

    Yes, I see what you mean. All supplies and ammo would need to be prepositioned then. I still like the idea of the machine gun though. Perhaps the flying car could just be used for strafing missions against ground targets attempting to over run the fortified Nompound.

  120. Mr Hyde says:

    SAS3/ jim

    More effective to build an armed UAV nowadays. You can get the aircraft and all the other components you need from local hobby stores, and you can download control software off the web for free from people who have been developing it as a hobby. You need to be handy with that sort of thing though

  121. Sas3 says:

    I wonder how second amendment would relate to armed UAVs, especially in the days when car bombs are termed as WMDs?

    It may all boil down to whether one is a “Good Guy” or a “Bad Guy” — which varies as frequently as the analysts’ ratings on stocks.


  122. Mr Hyde says:


    the BATF rules may already cover that. if not then i can think of about a dozen different ways you could be charged if you actually put up an armed UAV.

  123. Essex says:

    121. f-cking guy ‘runs’ (liquidates) a g*ddam toy store and all of a sudden he’s a f8cking economic authority.

  124. Confused in NJ says:

    102.Comrade Nom Deplume says:
    July 1, 2010 at 3:41 pm
    [99] confused

    I expect we’ll see an uptick in offshore website titled or something like that. They can use the offshore website to solicit orders; cc charges go to the banks under inocuous headings; they contract with mules in low tax jurisdictions like S.C. to purchase, pack and mail cigs; and rake in profit.

    Kinda like an offshore gambling site.

    And just as illegal

    Hard to know what is Legal or Illegal anymore, as the Government protects many Illegals?

  125. chicagofinance says:

    Al “Fat Thumbery” Gore says:
    July 1, 2010 at 5:04 pm
    SaS, Congrats if you get that 4.3 rate. Thats holy sh_t good. I think if we see 4% that I would be tempted to refi again.

    Gore: You can get 4% on a 15Y fixed…

  126. Yikes says:

    CBS News opens with really, really dismal job news. “Economists fear we could be headed for a double-dip recession.”

    Buckle up, it’s about to get ugly.

  127. grim says:

    There used to be a guy with a pontoon plane on the Passaic river.

    Probably a better and cheaper idea.

  128. grim says:

    Likewise just parking your plane at Caldwell or Lincoln Park airports.

  129. Nomad says:

    Flying cars – Chitty Chitty Bang Bang – for all you younger folk, it was a movie.

  130. borat obama says:

    Flying dooom

  131. borat obama says:

    Hi fiveeeee

  132. yo'me says:

    The Schwarzenegger administration today ordered State Controller John Chiang to reduce state worker pay for July to the federal minimum allowed by law — $7.25 an hour for most state workers

  133. yo'me says:

    The California State administration today ordered State Controller John Chiang to reduce state worker pay for July to the federal minimum allowed by law — $7.25 an hour for most state workers

  134. Pat says:

    Who would we write to, begging that the Russian spies be let go, in order to return to their rightful places, like Monklair. For all that’s right and honorable, just let them do their spy thing in peace.

    I’m becoming enamoured of the idea of having them there, and would be much more likely to buy a home there knowing the family is in town.

  135. Pat says:

    I don’t even really care if she has an SUV.

  136. Pat says:

    I’ll be up there on Saturday the 17 and guess I can drop the beast off.

  137. Final Doom says:

    chi (103)-

    Sure…and I’m sure they say thank you!

  138. Final Doom says:

    d2b (111)-

    They can get you started and refer you to a good PA lender.

    Bob Farrell: (908) 565-1640 or

  139. Final Doom says:

    Further proof that the gubmint of the US- and its corrupt Federal Reserve- are composed of nothing more than rank, petty criminals:

    “In its latest update of Maiden Lane assets the Fed has marked the net value of the CDO-legacy portfolio at multi year highs. Yet at the same time, it, together with Blackrock, has stripped away 60% of the interest rate hedges previously protecting ML1 from a blow out in interest rates. We ask why the Fed is increasingly certain there is no risk of a violent widening in rates, and how can it be certain of this occurring, without continuing to actively manipulate the Treasury/MBS market way past the QE due date?”

  140. Dink says:


    Netherlands +192? I want to pull the trigger.

  141. After much thought I believe your title “new jersey real estate report too radical?…” is distinguishable from what I have encountered today.

  142. meter says:


    You’re crazy. The Brazil vs Argentina final was a foregone conclusion before the first game kicked off.

    Everyone else is playing for third place.

    That said, I do like the Dutch team.

  143. Al "Fat Thumbery" Gore says:

    Just saw 3 tankers and 1 globemaster heading east out of Maguire. War is imminent.

    Talked to a former naval intelligence officer. He said the Israelis are going to be a bunch of crispy critters.

    I thank God for that.

  144. Essex says:

    147. Proof that anyone can post on the internet.

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  146. Pat says:

    NJ residents only please respond.

    Intersection, 4 way stop.

    You’re heading north, stop and make left to the east. There’s a wall blocking your view. As you turn left, an Escalade NJ plates is in the middle of the road, directly over the line, 15 feet from intersection, with left turn signal on, waiting to cross your path into a parking lot, waiting for a row of 10 cyclists to ride east.

    SUV is also on your tail, nudging. You inch forward, able to go past the Escalade only because you drive a Civic.

    EscaladeMan lowers window and yells “Couldn’t even let me turn in to park, could you b&/ch, could you?

    Correct response:

    1. Sorrrrry :{ !!!

    2. Who died and left the middle of the road to Gulf killers?

    3. Tell it to your four ex-wives.

    4. ______________________.

  147. Pat says:

    left to west.

  148. chicagofinance says:

    4. I am a woman and I am driving a car. Bad things are bound to happen.

  149. Sas3 says:

    Pat… Non-verbal response: finger and a honk — repeat as many times as needed. My thumb rule: if the response exceeds the mistake*, automatic finger. Otherwise, polite sorry, or a “thank you for understanding” smile.

    *in your case it is debatable, so even conceding that point to the EscaldeMan, b!tch is a bit too strong.

    I am not sure whether “four ex-wives” comes off as an insult.

  150. chicagofinance says:

    DOH! DOH! DOH!

    As a result, Habitat, a Christian group founded 34 years ago in Americus, Ga., around a philosophy of constructing and rehabilitating homes for low-income families, was recently ranked as one of the nation’s top 10 builders for the first time in a closely watched industry list compiled by Builder Magazine.

    Habitat was ranked eighth, based on the number of homes sold and closed, placing it above Ryland Group Inc. and behind Hovnanian Enterprises Inc. Habitat’s closings, which include new homes and rehabs, were down 3% to 5,294 in 2009. Ryland’s tumbled 30%, while Hovnanian’s sank 50%

  151. Pat says:

    cf…like it, but don’t think I could say the line unless I could also leave my vehicle and deliver a high chin kick to the other driver.

    I had three kids in the back seat.

  152. Pat says:

    gotta remember non-verbal. Non verbal is hard for a woman.

  153. spyderjacks says:

    This is cool.

    Schwarzenegger orders minimum wage for California state workers

    # As many as 200,000 state workers face pay cuts
    # Gov. Schwarzenegger orders salaries to be cut to $7.25 an hour
    # Directive would not affect state employees with contract
    # ‘This is not a scare tactic,’ official says

  154. Essex says:

    Gen. Stanley A. McChrystal will retain his four-star rank when he retires from the military, the White House said Tuesday. The decision means he will earn about $149,700 per year before taxes in military retirement pay.

  155. After much thinking I think your title “new jersey real estate report too radical?…” font size does not fit well on my browser, (I just wanna let you know) but possibly it’s my custome configured firefox plugin that is causing a problem other than this is a hot blog.

  156. meter says:

    @150 –

    My response would be to pull up to his window and say: “If you weren’t such a dick already taking up the intersection, I would have. But now here we are. Have a nice day.”

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  158. Hi. this is kind of an -unconventional- question , but have other visitors asked you how get the menu bar to look like you’ve got it? I also have a blog and am really looking to alter around the theme, however am scared to death to mess with it for fear of the search engines punishing me. I am very new to all of this …so i am just not positive exactly how to try to to it all yet. I’ll just keep working on it one day at a time.

  159. Sunil says:

    In my opinion,I think some of this is getting a little too out there. Radical, no doubt!

  160. Gordon Gomez says:

    Great insights. Lebron is on top of the sports world right now. I wouldnt be surprised if he will be called “next michael jordan”.

  161. Sam Behlke says:

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Comments are closed.