Fannie reform unlikely as housing dips again

From the WSJ:

Housing Ills Cloud Debate on Fannie

All year long, the Obama administration has defended its decision to postpone the debate over the fate of Fannie Mae and Freddie Mac by arguing that it first needed to put the housing market back on track.

Now, as mortgage-industry executives and government officials prepare to meet for a summit on Tuesday to begin those discussions in earnest, policy makers are facing an unexpected problem: The housing market appears to be stalling.

That will make officials more cautious in considering any dramatic overhaul, because a shaky outlook further underscores the market’s heavy dependence on Fannie and Freddie, which together with the Federal Housing Administration are backstopping nine out of every 10 new loans.

“It pulls the debate in the opposite direction,” said Howard Glaser, an industry consultant. “If we’re stuck in the midst of this semi-permanent housing crisis, the question of the federal role becomes almost intractable.”

“There’s been a feeling in government, which seems to be more pervasive than it was six months ago, that says, ‘We’ve solved this housing problem; let’s move on to Fannie and Freddie,'” said Laurie Goodman, a senior managing director at mortgage-bond trader Amherst Securities Group LP in New York. “But you haven’t solved this housing problem. We have another round of home prices going down a little more.”

Already, administration officials have said the previous ownership model for Fannie and Freddie should be discarded. For decades, a fuzzy “implied” guarantee allowed the companies, owned by private shareholders, to borrow cheaply because investors assumed that the government would rescue the firms at the first whiff of trouble.

While the administration has promised to deliver “fundamental change,” officials are likely to proceed slowly—focusing as much attention on any transition as they do on the final destination—to avoid rattling the $5 trillion bond market for government-backed mortgages. “People who have big reform ideas and objectives and no way to get there, that’s not realistic,” the administration official said.

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115 Responses to Fannie reform unlikely as housing dips again

  1. grim says:

    From the WSJ:

    Another Threat to Economy: Boomers Cutting Back

    America’s baby boomers—those born between 1946 and 1964—face a problem that could weigh on the economy for years to come: The longer it takes for the economy to recover, the less money they’ll have to spend in retirement.

    Policy makers have long worried that Americans aren’t saving enough for old age. And lately, current and prospective retirees have been hit on many fronts at once: They have less money, they earn less on what they have, their houses aren’t rising in value and the prospect of working longer to make up the shortfall has dimmed significantly in a lousy job market.

    “We will have to learn to make do with a lot less in material things,” says Gary Snodgrass, a 63-year-old health-care consultant in Placerville, Calif. The financial crisis, he says, slashed his retirement savings 40% and the value of his house by about half.

  2. grim says:

    From the Record:

    Bergen County Agency swims in $450M of debt; taxpayers could be left holding the bag

    An obscure financing wing of Bergen County government that has been implicated in a mortgage-fraud case has accumulated a debt of about $450 million — a 45-fold increase from its debt 10 years ago.

    More than $300 million of that debt is guaranteed by the county, which means taxpayers would be on the hook in the event of defaults.

    Much of the Bergen County Improvement Authority’s debt was acquired under the leadership of ex-Chairman Ronald O’Malley, who resigned last month after his former business partner named him in a mortgage-fraud scheme that involved the authority and their mortgage company.

  3. grim says:

    From Bloomberg:

    Your House Might Be Underwater for Years: Michael Carliner

    The housing market has usually led the economy into and out of recessions. It certainly led us into the latest slump.

    The same can’t be said of the recovery. If anything, housing today is stifling economic expansion.

    Rebounds in housing have typically been driven by declines in mortgage rates. Not this time. Rates on a 30-year mortgage have dropped to about 4.5 percent — the lowest since the early 1950s — with little effect. Tax credits and other programs to encourage buyers have provided only a modest, temporary boost.

    Other traditional measures of value, such as the size of monthly mortgage payments relative to income, show that housing is a bargain now.

    None of that matters because houses are bought with an eye toward the future and in anticipation of an eventual sale.

    We saw what happened in the boom in the middle of the decade — even though prices soared, demand increased as consumers thought about how much money they would have made had they bought sooner. People bought homes, often with no plans to occupy with an eye toward selling and making a quick profit.

    Now we’re seeing the opposite mindset. If a potential buyer believes that housing prices may fall more, then mortgage rates of 4.5 percent won’t attract home buyers. Rates could even drop to zero and it might not outweigh consumers’ negative perceptions.

    Household expectations of future U.S. home price appreciation aren’t directly measured, and are probably based on recent experience.

    If expectations reflect changes in home prices over the last three years, for example, consumers seem to anticipate annual house price declines of 3.7 percent to 10.4 percent, depending on which of the various house price indexes is used.

    More likely, market conditions will reinforce expectations of further price declines. Even with new home construction declining, there are too many houses for sale. And when the bounce provided by the home buyer tax credit ends, there will be renewed pressure on prices.

    The reality is that the real estate market won’t fully recover until builders and consumers start believing once again that housing is a relatively safe investment with reasonable returns, and that will take some time.

  4. Final Doom says:

    20-40 years for housing to recover. A refusal to write down losses- coupled with a generation coming into its earning years who will believe buying a home is a guaranteed ball-and-chain- will destroy the market entirely.

  5. grim says:

    From the NY Post:

    Mortgage madness

    President Obama’s flagship mortgage-modification pro gram is a colossal failure — it’s a boondoggle that’s wasting billions of taxpayer dollars.

    The program’s supposed to help Americans in danger of losing their homes — but the big winners are richly paid executives at Fannie Mae, the now-government-run mortgage giant.

    Obama originally promised that the program would spend $75 billion and save the homes of 3 million to 4 million families. But last month the administration reported that it had enrolled just 1.24 million homeowners — and 520,000 had already dropped out, while just 398,000 had gotten “permanent” mortgage modifications.

    In fact, even the “permanent” mods are iffy: This month the administration has had to admit that last month’s report lowballed the numbers of those borrowers who got modifications, but redefaulted. It now says that the redefault rate for the less than 5,000 mortgages that had been modified nine months earlier was 14.9 percent — more than six times higher than originally reported. The redefault rate for the 53,000 six-month-old mods is 7.7 percent — 2½ times higher than first reported.

    Industry experts estimate that 60 percent will eventu ally redefault and lose their homes anyway.

    Caroline Herron was terminated from Fannie in a 2007 downsizing wave; she was brought back in as a consultant in spring 2009 to help Fannie administer Obama’s mortgage-modification program.

    Fannie plainly thought she had expertise: It hired her to work 40 hours a week at $200 an hour — that’s $8,000 a week to help people struggling with their mortgage payments hopefully get modifications.

    In her suit, Herron claims she complained to Treasury officials that Fannie was pushing for trial mortgage modifications to start long before the borrowers had submitted backup documents to prove eligibility. She alleges that Fannie executives thwarted her efforts to streamline procedures so that only truly eligible borrowers would be signed onto trial modifications.

    Indeed, she claims Fannie execs intentionally signed up premature modifications with ineligible borrowers — because the execs qualified for bonuses up to 20 percent of their salaries if they produced enough trial modifications, even if few ever became permanent.

  6. grim says:

    From Fortune:

    The wasted 4.44% mortgage rate

    It appears even the bright spots of this tired economy are still working against heavily indebted homeowners. Mortgage rates have hit new lows nearly every week, but many borrowers are still unable to take advantage of them.

    Like it is in so many parts of today’s sideways economy, relief is out of reach. Stimulus dollars are everywhere, but somehow never where they’re needed most.

    Last week, U.S. mortgage rates fell for the eighth consecutive week to a record low after the Federal Reserve said it would buy more government debt to help the economy recover. A 30-year fixed-rate mortgage in the week ending Thursday dropped to 4.44% from 4.49%, according to Freddie Mac, which noted it was the lowest since the mortgage finance company began collecting data in 1971. The 15-year rate averaged 3.92%.

    But many of them are filling out all that paperwork only to get a rejection letter in response. The mortgage association does not quantify how many of those who apply for refinance actually get approved, but mortgage brokers say many homeowners are ineligible. Last year the Home Affordable Refinance Program, or HARP, was created to help homeowners get new loans, but the program has only resulted in a small fraction of the refinancings the government aimed to enable.

    Add it all up, and you get a 4.44% rate that most Americans can’t have.

  7. Confused in NJ says:

    Very depressing figures, a problem with no viable solution.

  8. yo'me says:

    I want to refi my house but appraisal will come in same as owed.Need to bring 20% to the table to refi at this low rate,alot of people either don’t have the money or will not spend that kind of money .I sure don’t want to waste money on PMI.

  9. Final Doom says:

    Big Ponzi in Branchburg about to be announced by SEC.

  10. Brian says:

    Via BR over at The Big Picture….

    “During the session, Norris-who is considered to be a top authority on the Southern California real estate market-shared some intriguing insights. He believes the region is in an artificial market and is concerned about the shadow inventory that could flood the market, forcing prices even lower. However, this isn’t the shadow inventory of bank-owned homes you may have heard about; he refers to all the houses that may yet go into foreclosure. The problem will vary by region, but referring to Riverside County in Southern California, Norris presented some pretty alarming statistics:

    • 23% of prime borrowers are not making payments
    • 47% of non-prime borrowers are not making payments
    • 90% of properties are upside down on value-to-loan (60% owe more than
    150% of value)

    Many borrowers haven’t made a payment in more than two years and have yet to receive a Notice of Default.”

  11. Libtard says:

    2.62?

  12. freedy says:

    Begen county continues to hold up .

  13. Libtard says:

    Essex County residents are subject to continuous hold ups.

  14. chicagofinance says:

    I like you better with tinted glasses and the open shirt….
    http://chiphughes.com/

    Final Doom says:
    August 16, 2010 at 8:01 am
    Big Ponzi in Branchburg about to be announced by SEC.
    http://chiphughes.com/

  15. Mr Hyde says:

    Yome 8

    Is a lower rate from a refi worth the loss on the no-recourse aspect of an original mortgage? The answer is different for everyone.

  16. Libtard says:

    I wasn’t even aware of the no-recourse on a refi. Then again, if you were honestly considering a strategic default, why the heck would you be refinancing except to potentially screw the bank even harder.

  17. Mr Hyde says:

    Report from the hinterlands of tennesee……

    Lots of anger at the government and not just O and the blues, plenty of anger at all politicians. Immigration seems to be a huge issue with the proletariat, as they see more of the jobs that they and their friends used to ave being taken by foreigners that speak a different 1st language. Plenty of belief that housing must recover because otherwise they are broke. They arent asking for the world, just steady jobs and an end to the bailout of giant faceless corps/banks at their expense.

    All it would take is an eloquent firebrand to cause some of these areas to explode.

  18. Libtard says:

    2.61!

  19. Libtard says:

    Correction… 2.60!

  20. Mr Wantanapolous says:

    2.62?
    Lib [11],

    When the dust clears, it will settle with a 1 handle, around 1.5.

  21. Libtard says:

    SA:
    U.S. Housing Is 10% Below Fundamental: Could Drop 10% More

    http://seekingalpha.com/article/220589-u-s-housing-is-10-below-fundamental-could-drop-10-more

    “Very good read”

  22. All "H-Train" Hype says:

    2.5980.

    I am starting to see Final Doom’s visions of 40 years in the darkness……

  23. Yikes says:

    Mr Wantanapolous says:
    August 16, 2010 at 9:51 am

    2.62?
    Lib [11],

    When the dust clears, it will settle with a 1 handle, around 1.5.

    can you explain why this matters?

  24. make money says:

    http://www.google.com/finance?q=NASDAQ:COCO

    We spoke about this on this site several times. The next BIG SHORT.
    Edumucation bubble.
    Obama has a “gainful employment bill” on deck that will cripple these organizations and the student loan data released this morning is dreadful. I’ve been sitting short for over a month now.

    STRA is down $50 in the last week. This could escalate. I’m about to double down.

    Let them all eat cake. I want BLOOD.

  25. Mr Hyde says:

    Libtard,

    I believe that a primary ORIGINAL mortgage is non-recourse in NJ, but once you refi it becomes recourse.

  26. yo'me says:

    Mr Hyde says:
    s a lower rate from a refi worth the loss on the no-recourse aspect of an original mortgage? The answer is different for everyone.

    Already did a cash out refi in 2005 at 5.6% ,paid cash to a shore house.Will be nice to be able to refi at 4.5% without bringing cash on the table.

  27. Final Doom says:

    hyde (22)-

    I’m subletting office space @ $22/ft in my building. Down to three agents now.

    About to install a shower and rent the whole place out to cash-paying illegals. If I did that, I’d actually make money.

  28. Final Doom says:

    make (26)-

    Copy you on that one.

  29. yo'me says:

    I am not sure how many original mortgages out there still exist,with low rates keep on going down might be stupid to still be holding a 8 handle when less than 5 has been available for a long time.Just don’t know why this change it to a recourse though it’s still a first lien.

  30. Al "Fat Thumbery" Gore says:

    10 year treasuries 2.59. Ill take my 3.75 30 year now Ben. Thanks a bunch.

  31. yo'me says:

    Strayer,Phoenix and other small Universties and online education, are being investigated with subsidies being cut.Student loans from this universities are being question on what is the ratio of student being able to find a job after graduating from this universities.It’s about time they stop this racket.

  32. Nomad says:

    Grim, Doom et al, thanks for your comments on previous days post regarding primaary & secondary mtgs pertaining to recourse etc.

    Anyone care to estimate how much they think home prices will drop by 12-31-11 from todays prices?

    Dam can only be shored up so much –

    Was told that after BOA is done foreclosing on a big part of their portfolio by years end, they will dump Balboa insurance and then the flood gates of foreclosures will open – if true, you all know how the supply demand things works. The intersection of those lines is going to be a lot lower.

  33. Final Doom says:

    nomad (34)-

    I’ll go out on a limb and predict that we’re in for another 10-12% drop in NJ house prices between now and 12-31-11. A lot of pain is going to get compressed into a short span of time.

  34. Final Doom says:

    Note to self: look into revising housing recovery call from 20-40 years out to 100 years.

    “The coming hyperinflationary depression and the credit and asset implosion that is likely to follow will most probably lead to the end of a 200 year era of growth for the Western world. If only the excesses from the 1970s were corrected we might have a circa 20 year decline. But more likely we will correct the era all the way back from the industrial revolution in the 18th century and this could take 100 years or more.

    So after the tumultuous and very painful times that we are likely to experience in the next few years, the West will have a sustained period of decline. All the excesses in the economy and in society must be unwound. These abnormal and unreal excesses are not just corporate executives, bankers, hedge fund managers or sportsmen earning $10s to $100s of millions but also a total collapse of ethical and moral values as well as a breakdown of the family as the kernel of society.

    Most people believe and hope that this major trend change could not happen today with all the measures that governments have at their disposal. But very few people comprehend that it is precisely the government interference, controls and regulations as well as money printing that have created the problems in the first place. Power corrupts, and the more pressure a government is under the more they intervene. Because they believe that their interference in the economy will save the country – read Obama, or the world – read Gordon Brown. Little do they understand that each interference, each regulation or each dollar or pound or Euro printed will exacerbate the problems of the economy manifold.

    Governments now have two options; continue to spend and print money like the US or introduce austerity programmes like Europe. Whichever way they chose will not matter since they have reached the point of no return. The economy of the West cannot be saved by any means. But governments both in the US and in Europe will still apply the only method they know which is to print money.”

    http://www.zerohedge.com/article/matterhorn-asset-management-there-will-be-no-double-dip-it-will-be-lot-worse

  35. Final Doom says:

    More from Matterhorn (this is well worth the time to read):

    “Very few people understand that money printing is a form of robbing the citizens of their money and their work. Money is supposed to be a medium of exchange for goods and services equalling the value of the good or the service produced. For example, an individual works extremely hard to earn an annual wage of say $40,000 which he receives in the form of paper money. The government, due to its mismanagement and incompetence simultaneously prints $40,000 in order to cover its deficits. So the government has by pressing a button produced the same amount of money that a man had to work a year for. This is what is currently taking place all over the world and which will accelerate in coming months and years leading to a total destruction of paper money. Paper money has completely lost its function as a medium of exchange or a store of value. This is why gold is gaining and will continue to gain value against perishable paper that is called money.

    The only reason that the US could build up such a major debt is that the US dollar has been the reserve currency of the world and therefore the US has been able to finance its debts and deficits internationally. The US has now reached a point when debts have to increase dramatically for the country just to standstill. Like all Ponzi schemes this one will also come to an end – and this very soon. The US dollar will decline dramatically and lose its reserve status and the US government will be unable to finance its deficit in any market. This process will lead to endless money printing, collapsing treasury bonds (substantially higher interest rates) and the dollar becoming worthless in a hyperinflationary black hole.

    Let us just reiterate that hyperinflation arises as a result of money printing leading to a currency collapse and not from demand pull. The slight deflation that we are experiencing currently is a prerequisite for hyperinflation. The fear of a deflationary implosion forces governments to print money, leading to a collapsing currency which historically has always been the cause of hyperinflation.”

  36. make money says:

    Anyone care to estimate how much they think home prices will drop by 12-31-11 from todays prices?

    5% decrease accompanied by a 30yr fixed rate @ 3%.
    I can’t rememebr if it was Wanta or Bc Bob who said were are staring at Japan.
    Has he ever been wrong?

    I’m calling for 30 yr fixed rate by the 12/31/2012 to have a two handle.

  37. make money says:

    Doom,

    COCO is toast if gainful employment passes in any shape or form. They’re just the first to go though.

    Wanta,
    lets say you want to mimick Magnetar trade and pull a John Paulson, is it possible to go long equity on a student loan CDO and short the BBB tranche?

    I want to be a billionaire soo fr**** bad.

  38. Juice Box says:

    re: #37 Doom – if I had a nickle for every time I heard hyperinflation senario trotted out. The gold bugs are wrong. At worst we will see 50% inflation over five years, not Zimbabwe style hyperinflation.

  39. make money says:

    Juice,

    You have a better chance of smoking weed with than Pope then controling inflation. It liek wildfire. I saw it go from 10% to 1000% in a span of 5 years. See Yugo in the 90’s.

  40. Al "Fat Thumbery" Gore says:

    “I’m calling for 30 yr fixed rate by the 12/31/2012 to have a two handle.”

    I agree.

    “At worst we will see 50% inflation over five years, not Zimbabwe style hyperinflation.”

    You are actually going to witness the destruction of the dollar. Who cares about inflation. SDR’s are ready to roll out. The game is world government and world currency. Everything else is semantics.

  41. Final Doom says:

    juice (41)-

    I’m in the deflation camp myself, but I like Matterhorn’s contrary take. I also find it an intriguing argument that the threat of deflation is the spark for hyperinflation.

    Mostly, I wonder about the prospects for long-term heavy deflation in an economy that is rigged to benefit only the rich. As we’ve discussed here many times, deflation hurts everyone- rich and poor- alike; however, inflation rewards those who are first movers/first accessers (i.e., the rich) and punishes everyone else.

    However things play out, the only winners will be the gubmint, giant corporations and wealthy individuals. The rest of us are doomed.

  42. Mr Hyde says:

    Doom 37/38

    That matches what you might see with an exponenital growth curve collapse ala bacterial populations.

    http://tiny.cc/c9me7

  43. Mr Hyde says:

    Doom, Juice,

    I think when its all said and done we see both. one after the other, a very nasty 1-2 punch. I don’t think we will see significant inflation until the debt deflation has leveled off and that wont be for a few years yet.

    And juice, lets just respectfully agree to disagree as we have debated this point many times

  44. Final Doom says:

    I think TPTB will be able to rig an inflation in necesssities to slaughter the proletariat, while at the same time exacerbating monetary deflation. A sort of “best of worst worlds” scenario. It will be like a ’70s-style stagflation, except 20 times worse.

  45. Final Doom says:

    At some point, we will roll into planet-wide war, and then all bets are off.

  46. chicagofinance says:

    http://chiphughes.com/remaxnj/modules/agent/agent.asp?p=findahome.asp&page=search&selected=mls&listing=true&mls=2741344&display=1&mlsnumber=2741344&mlsid=203

    HTF are you supposed to defend this from attack? Where is the perimeter? Also, I see “stockade fence” in the description…… I was expecting “stockade, fence”….you are getting soft in the head and belly…….

  47. Juice Box says:

    re: #26 – re: collapse of higher education

    NY Times eating their young now.

    Academic Bankruptcy

    http://www.nytimes.com/2010/08/15/opinion/15taylor.html?_r=2&hp

  48. sas3 says:

    Doom, is the $22 building where FVF is housed?

    S

  49. Anon E. Moose says:

    re: Yo [33];

    Why single out the for-profit entities? For years (decades, even) so-called ‘non-profit’ institutions have been enriching administrators and faculty far beyond their economic worth, who’ve built themselves palatial fortresses in which to ply their trade, all using taxpayer-guaranteed student loan money. Their product has been vast numbers of mostly uneducated, but well indoctrinated, Bachelors of ______ Studies whose market value has nothing to do with what they were taught.

  50. Final Doom says:

    chi (49)-

    I drink at work and keep weapons there. The stockade fence is in the back, and anyone who comes over it had better have some moves.

  51. Final Doom says:

    sastry (51)-

    Yes. They rent about 600 sf on the left side of bldg 1 as you face it.

  52. Final Doom says:

    The only reason my daughter is going to college is because she’s a good lacrosse player & is going to get money. If not, I wouldn’t pay a penny to send her anywhere.

    I’ve been on several college visits with her over the summer, and the uselessness of a college education is palpable on the campuses. We visited Drew, and this school has all the looks of a place that is going to shut down soon. Disgusting.

  53. Final Doom says:

    Drew is 52K/year for no sidewalks, broken sidewalks, muddy dirt paths, a prison cafeteria and a school “garden” that is choked with weeds.

  54. Final Doom says:

    3.76% on the 30. Gonna be a long fall when the rug gets pulled out from under that.

  55. Confused in NJ says:

    55.Final Doom says:
    August 16, 2010 at 2:02 pm
    The only reason my daughter is going to college is because she’s a good lacrosse player & is going to get money. If not, I wouldn’t pay a penny to send her anywhere.

    I’ve been on several college visits with her over the summer, and the uselessness of a college education is palpable on the campuses. We visited Drew, and this school has all the looks of a place that is going to shut down soon. Disgusting

    My daughter graduated from College of St Elizabeths in Convent Station with a dual degree in Psychology & Elementary Education. That campus was very nice. They use to have mixers with Fairleigh, Drew & Stevens. Graduation was on campus in their Greek Theater. My son graduated from Seton Hall in Finance. Campus was so so, and graduation was at the Meadowlands.

  56. NJ ExPat says:

    “Other traditional measures of value, such as the size of monthly mortgage payments relative to income, show that housing is a bargain now.”

    Patently False. Housing will only be a bargain when the ratio of median home price to median family income returns to historic norms of 3-4x like they were in just about every market in the US from 1985-2000. Whether wages rise, prices fall, or a combination of both, that is the meeting place.

    http://www.jchs.harvard.edu/publications/markets/son2007/metro_affordability_index_2007.xls

  57. yo'me says:

    My son graduated from Rutgers with a degree in accounting.He now works at MS loan free thanks to me while his co-workers carry a debt of $100 to $200k at NYU Stern.My brother graduated law in another country debt free,passed the cali bar exam and now a lawyer at a firm in LA got a masters at San Diego University with half scholarship.His friends owes $200k and can’t pass the Cali bar exam.Figure it out.

  58. DL says:

    We are witnessing the breakdown of western civilization. The fundamental element of any society is trust. What, or who do you trust these days? We no longer trust our government, our media, our economists, our elected officials, our corporations, and even my cat has been looking suspicious lately. With the coming economic dislocation it will literally be every man/woman for themselves. The only way to reform government is to starve it.

  59. Libtard says:

    Sheyit…I graduated from Montclair State in 93 where tuition was $82 per credit. My folks paid for my freshman year and I worked my buns off to pay for the next 4 years (I changed majors late in the game). I graduated without owing a single penny. I doubt it is still possible to do this today, but I would think there are still ways to work various positions on campus to defray certain costs. The costs though are out of control. I just looked online and tuition plus room and board are now $19,740. Was $6500 wehn I graduated 17 years ago. That’s a triple!!! Kind of makes you not want to have more than one child now doesn’t it. Oh my peers with no savings are so done. I hope they enjoyed their IPhones and fancy cars.

  60. Ben says:

    Colleges will continue to raise tuitions 10% a year as long as the US government’s solution to the problem is “make more money available for student loans”.

  61. Al "Fat Thumbery" Gore says:

    The best education you could give your kid is getting a passport and getting the hell out of the US. Its all going to sh_t and we havent even begun the real doom.

  62. Barbara says:

    Rutgers University: Enrollment has increased, tuition has increased yet the uni is broke. Campus looks like crap, classes are overcrowded. Professors train in one day a week, lecture for 2 hours, earn 200k – summers off! *POP*

  63. Mr Hyde says:

    Re Rutgers.

    The official policy is to increase enrollment as fast as possible to try and support the universities cost. The idea is to increase enrollment but keep the gross level of services flat, more students per professor etc.

    Those buying into the college bubble now are the equivalent of home buyers in 2006

  64. Libtard says:

    On the car front, it took us 4 tries and the truck still isn’t 100%. We did get the four cats replaced under warranty, but were charged to replace the anti-knock sensor. At first pick up, we drove home and the check engine light went on as we pulled into our driveway. Brought it back and they claimed a hose was kinked from the sensor install. Brought it back and we noticed a terrible rattle when in park and in gear. Brought it back and they removed the rusty heat shields. Now we drive it for a couple days and the light is back on. Now it’s the gas regulator valve (EGR), which was probably the culprit the entire time. Firstone will do it for $425 so not too bad, but still, it ain’t no 95 Civic.

  65. Libtard says:

    Worst grammar ever…sorry!

  66. NJGator says:

    Barb 65 – Freshman year at UF I took an honors linguistics class. Professor said he was constantly asked when he was going to retire. His response? “I teach one class a week for 3 hours, and spend 3 hours a week in my office. For this I draw full salary. If I retire, what will I do with those other 6 hours?”.

  67. yo'me says:

    I have a bad evaporator on my merc.To work on it ,they have to take out the dash board and it will cost alot.Anyway getting around this?

  68. reinvestor101 says:

    “We are witnessing the breakdown of western civilization. The fundamental element of any society is trust. What, or who do you trust these days? We no longer trust our government, our media, our economists, our elected officials, our corporations, and even my cat has been looking suspicious lately. With the coming economic dislocation it will literally be every man/woman for themselves. The only way to reform government is to starve it.”

    Breakdown my ass. The only damn breakdown is here with all you damn doom and gloomers. The damn country has never been better. Sure, the real estate terrorists tried to create some problems so they could get my house on the cheap, but they have failed miserably. I’m not giving my damn house away for nothing, and yes, you’re damn sure gonna want it, but you can’t have it.

  69. reinvestor101 says:

    “The best education you could give your kid is getting a passport and getting the hell out of the US. Its all going to sh_t and we havent even begun the real doom.”

    Bullspit. I have some friends whose daughter got into NYU and they gotta come up with $ 50,000 for her first year. Luckily, they have a huge tax refund for half of it. It’s well worth the struggle and that investment will come out in the damn wash.

    You stinking negative nabobs here want to kill off the damn American dream with your damn visions of a damn barren wasteland after some imaginary calamity. That’s bullspit. I’m hanging onto my damn dream and you’ll have to rip my house deed out of my cold dead hands….and you still won’t be able to do that until you meet my damn price.

  70. Barbara says:

    Gator,
    pretty funny….the s.o.b. Great work if you can get it.

  71. Morpheus says:

    72: “you’ll have to rip my house deed out of my cold dead hands”.

    well, only in a perfect world. I can dream, can’t I?

  72. cobbler says:

    libtard [67]
    I’d like to have my cat replaced under warranty (it’s getting way too noisy), what do I need to do?

  73. Final Doom says:

    Geordies 0-3 to ManU. Looks like it will be 38 weeks of relegation battle. They made Scholes and Giggs look 10 years younger.

    They should put Joey Barton back in prison.

  74. yo'me says:

    If there is a tsb on a car,is the manufacturer responsible in fixing the problem?

  75. NJGator says:

    Cobb,

    R U serious? Or just making a bad pet reference joke.

  76. NJGator says:

    Check your warranty and see if it is covered. If so, you better have a good reason for them to do the work. I got lucky and my check engine light went on. When is your inspection? If you fail it, you may get them to cover the replacement as well.

  77. Al "Fat Thumbery" Gore says:

    “Bullspit. I have some friends whose daughter got into NYU and they gotta come up with $ 50,000 for her first year. Luckily, they have a huge tax refund for half of it. It’s well worth the struggle and that investment will come out in the damn wash.”

    Better off buying her a universal harvester and a down payment on some land. If you are lucky you might be able to work in the road side vegetable stand when you retire.

  78. Final Doom says:

    al (80)-

    Nah. They should just send her to NYU and tell her to turn tricks for four years.

  79. renter says:

    Mon Aug 16, 1:30 pm ET
    One-fifth of Pakistan under water as flooding disaster continues
    By Liz Goodwin
    http://news.yahoo.com/s/yblog_upshot/20100816/wl_yblog_upshot/one-fifth-of-pakistan-under-water-as-flooding-disaster-continues
    “One-fifth of Pakistan is still under water after three weeks of devastating flooding, and as many as 6 million affected people have not yet received any relief, Pakistan’s National Disaster Management Authority told CNN.

    United Nations chief Ban Ki-moon said Sunday from Pakistan that the flood disaster is the worst he’s ever seen, characterizing the destruction as more dire than that caused by the 2004 Indian Ocean tsunami and the 2005 Pakistani earthquake. Ban urged the international community to send more relief funds to the area; the country now has just $93 million of the estimated $460 million needed to provide flood relief.”

    Where is this aid coming from?

  80. Al "Fat Thumbery" Gore says:

    82,

    Renter. The better question is where is all the bizarre weather patterns coming from?
    My lawn looks like the Arizona desert.

  81. sas3 says:

    Al Gore #80

    The logic of no college education and alternative investments is … hmm… like the economics of savings. It is probably good for one or two people to try that. If everyone does that, it will be a disaster.

    On that note, what is a good yearly savings to put aside for a kid’s education. In my case, I don’t need IRA because I have enough capital losses to cover any reasonable appreciation in investments in stocks — and the good thing is that money is accessible in case the SHTF…

    S

  82. reinvestor101 says:

    “Better off buying her a universal harvester and a down payment on some land. If you are lucky you might be able to work in the road side vegetable stand when you retire.”

    What the hell are you talking about? Look, you negative motherhubbard, I got a damn newsflash for you–we’re no longer a damn agrarian society and thank God we’re never going back there. You can have your damn kids behind the ass of a mule if you want to, but I’m going to get mine in the best damn school I possibly can even if I have to shoehorn their asses in there. So yes, you’re damn skippy that I’m going to move damn mountains financially to pay for it. I don’t give a shlt if there’s less mountains now because you stinking terrorists have damn near brought the damn real estate and securities markets to ruin. I’ll still find a way if for no other reason than to spite you damn people.

  83. House Whine says:

    Don’t even get me started on the “sabbaticals” that professors take every couple of years. Do you have any idea what kind of other perks tenured professors and administrators get at private universities? No way do I consider these places to be non-profit. Some journalist should start doing some serious investigative reporting and and boy would the public’s eyes be opened. We are talking big bucks.

  84. Outofstater says:

    #85 Uh, ya gotta eat and last I heard, people who knew how to do custom combining were able to make a living at it.

  85. Outofstater says:

    And as far as an agrarian society goes, if you eat, you’re involved in agriculture.

  86. Final Doom says:

    sastry (84)-

    The answer to that question is zero (even Suze Orman will tell you that). Let your kid pay or finance his own damn way through school; you only have one retirement, and nowdays it will take every ounce of effort you have to save enough just for that.

    “On that note, what is a good yearly savings to put aside for a kid’s education.”

  87. Final Doom says:

    renter (82)-

    These people need to shave 30-35% of their population. Better it gets done this way than we have to go in and shoot them.

    We should cut off all aid to these ingrates. They beg help form us, then turn around and support AQ. Let Bin Laden haul them all to higher ground now.

    As if.

  88. Final Doom says:

    The most important words in this article are: “locked in a tight race”.

    By PHILIP ELLIOTT, Associated Press Writer – 13 mins ago
    WASHINGTON – The Senate’s top Democrat on Monday came out against plans to build a mosque near the site of the Sept. 11 terrorist attacks, moving away from President Barack Obama on the controversial election-year issue.

    Locked in a tight race, Nevada Sen. Harry Reid became the highest profile Democrat to respond to Obama, who last week backed the right for the developers to build a mosque near ground zero. Since his comments Friday, the Democratic president and his aides have worked to explain the statement, which drew criticism from Republicans and Democrats alike.

  89. Final Doom says:

    Good. I needed to refresh my list of reasons why I hate baseball.

    HOUSTON (ESPN) — New York Mets closer Francisco Rodriguez suffered a torn ligament in his right thumb while allegedly striking the grandfather of his children last week at Citi Field, a team official said, and he is done for the season.

    Rodriguez, who pitched Saturday with discomfort in his return from a two-day team suspension, was examined Monday at the Hospital for Special Surgery in Manhattan. Team doctors recommended surgery, but a date for the procedure has yet to be scheduled.

  90. yo'me says:

    If you can give 10% of your gross income to charity,charity begins at home.For me, educating your kid is worth every penny.

  91. Confused in NJ says:

    83.Al “Fat Thumbery” Gore says:
    August 16, 2010 at 6:14 pm
    82,

    Renter. The better question is where is all the bizarre weather patterns coming from?
    My lawn looks like the Arizona desert

    Two years ago AllState stopped writing homeowners insurance in NJ because of Hurricane predictions. The weather patterns are becoming increasingly more violent. Never gentle rain forecast anymore, always sever thunderstorm forecasts with wind.

  92. Final Doom says:

    Let’s sacrifice some politicians and see if God will give us better weather.

  93. Final Doom says:

    yo (93)-

    Education? Yes. Training and/or brainwashing? No.

    True education in the US only exists in tiny pockets and quantities and is priced accordingly.

    “For me, educating your kid is worth every penny.”

  94. Al "Fat Thumbery" Gore says:

    “What the hell are you talking about? Look, you negative motherhubbard, I got a damn newsflash for you–we’re no longer a damn agrarian society and thank God we’re never going back there. You can have your damn kids behind the ass of a mule if you want to, but I’m going to get mine in the best damn school I possibly can even if I have to shoehorn their asses in there. So yes, you’re damn skippy that I’m going to move damn mountains financially to pay for it. I don’t give a shlt if there’s less mountains now because you stinking terrorists have damn near brought the damn real estate and securities markets to ruin. I’ll still find a way if for no other reason than to spite you damn people.”

    Lol. What are you going to do? Teach them how to trade exotic financial derivatives? Its easy to part a fool from his money.

  95. Final Doom says:

    I spent several years donating 10% or so of my gross income to charity, in one form or another.

    Now, I wish I had it all back. It would’ve been more fun to set stacks of $100s on fire.

  96. Final Doom says:

    al (97)-

    My BIL paid close to 200K to send my nephew to Syracuse. Nephew just landed an entry-level position in a NYC pastry shop.

    Great return on education investment dollar, huh?

  97. Al "Fat Thumbery" Gore says:

    99.
    Yeah. The market isnt there for most of these degrees especially with the lost income years and tuition costs. With the internet and vast amounts of information out there all you really need is experience and an apprenticeship.

    Check this out. 18 year olds that cant read.

    http://www.youtube.com/watch?v=Bx4pN-aiofw

  98. a mad as hell reinvestor101 says:

    “And as far as an agrarian society goes, if you eat, you’re involved in agriculture.”

    Let’s get something damn straight, you damn boilermakers in West Lafayette may still be living in a damn agrarian society, but the rest of the country has moved the hell on.

    You may be living in the damn hinterlands far off from civilization, but I live in a damn modern city with everyday damn conveniences–among them a 24 hour grocery store. The closest I’m ever going to get to picking something is off the damn shelf.

  99. a mad as hell reinvestor101 says:

    “Lol. What are you going to do? Teach them how to trade exotic financial derivatives? Its easy to part a fool from his money”.

    Hey, that made more damn money than sitting behind a damn plow looking at a mule’s ass.

    Don’t get smart with me, Motherhubbard.

  100. Al "Fat Thumbery" Gore says:

    “Hey, that made more damn money than sitting behind a damn plow looking at a mule’s ass. ”

    Im not denying it made a lot of money Im just wondering if you can keep it.

  101. Outofstater says:

    #101 Laughing! Pur- who??

  102. still_looking says:

    101, 102

    Ooooooooooooooooh so cute, you are! (smooch, smooch)

    sl

  103. Confused in NJ says:

    I worked with the fellow in Bedminster who dove 5 stories to his death Friday in AT&T Bedminsters Atrium. I wonder if they are downsizing? I can remember many stress related deaths in previous downsizings.

  104. chicagofinance says:

    yo’me says:
    August 16, 2010 at 7:56 pm
    If you can give 10% of your gross income to charity,charity begins at home.For me, educating your kid is worth every penny.

    only pay for 4 years…any extra time comes out of jr’s pocket…..

  105. Juice Box says:

    WTF Rex Ryan had a lap band installed in his Stomach
    Back in March and he has only lost 20lbs. He must be sneaking Bon bons all day.

  106. chicagofinance says:

    I used to work in that building….FCUK!

    Confused in NJ says:
    August 16, 2010 at 8:55 pm
    I worked with the fellow in Bedminster who dove 5 stories to his death Friday in AT&T Bedminsters Atrium. I wonder if they are downsizing? I can remember many stress related deaths in previous downsizings.

  107. a mad as hell reinvestor101 says:

    “Ooooooooooooooooh so cute, you are! (smooch, smooch)”

    That does it. I’m outta here.

    Lady, you aren’t tricking me one damn bit. You plan to woo me and kill my ass and I’m hauling ass outta here and will wait to post in the damn morning when you’re sleep and not around.

  108. chicagofinance says:

    Cindy: stop laughing…RIGHT NOW!

    WSJ
    NY REGION
    AUGUST 17, 2010
    Tasty Trails Around the Region
    By MELANIE GRAYCE WEST

    There are few better ways to spend a summer weekend than sipping and swirling. And New Yorkers are spoiled for choice, with literally hundreds of wineries in a 150-mile radius of the city. How do the wineries stack up? The Wall Street Journal put some wine trails of New Jersey, New York and Connecticut to the test

    First, the criteria: The wineries are the focus, but also considered was the “something extra” that each trail offered, from plentiful farm stands, places of interest to drop in or scenic drives. The chosen trails are fairly balanced, with a mix of established and new wineries. Visiting four on each trail gives a good sample of the overall quality, and is also about the maximum you can do in a day with a break for lunch. Plan to spend $25 to $30 on tasting fees.

    .Now, to the trails.

    New Jersey offers a mostly good trip, but from New York City it’s quite a drive—plan on spending at least two unscenic hours in the car just getting there. The Garden State Wine Growers Association organizes its member wineries in clusters of wineries relatively close to one another. The Warren Hunterdon Cluster begins near Princeton, N.J., and snakes north along the Pennsylvania border.

    On that trail, the first stop was Hopewell Valley Vineyards, a winery with a pleasant tasting room and interesting wines. Next, Unionville Vineyards offers a tasting of 15 uniformly good wines. All the sips can be a bit dizzying, so this is a good place to stop for a picnic lunch. Winemaker Cameron Stark says that the winery is in the testing phase: The goal is to grow the best-performing grapes for the region.

    From Unionville, it’s about 30 miles to Alba Vineyard in Milford, N.J. Alba’s owner, Tom Sharko, says the winery’s tasting—a dozen wines with a small plate of cheese, meats and nuts for $10—is a take on the tasting-room experience at sophisticated spots along the West Coast. Finally, Villa Milagro Vineyards, just down the road from Alba, is the smallest and newest of the four.

    There wasn’t much extra to the trail, but Mr. Stark says his cluster is in the start-up phase and aims to organize itself into a local trail. “We’re a little ways away from drawing people in for a wine trail,” he says.

    By comparison, Shawangunk Wine Trail in the Hudson Valley is a more organized trail. It’s also an easier, and prettier, drive from New York.

    The tasting room at Adair Vineyards is in a charming old barn. The wines are honest and good. A delectable white peach dessert wine turned out to be one of the most memorable wines out of a dozen wineries visited. Owner Marc Stopkie says it’s the winery’s most popular wine, and this year he hopes to make a similar wine from apricots and nectarines.

    Whitecliff Vineyard & Winery is the next stop and the tasting room is absolutely hopping. The winery is turning out serious wines made with grapes from its own vineyards and others around the state. The tasting is even more enjoyable outside on the pretty patio.

    Stoutridge Vineyard and Robibero Family Vineyards, the latter of which is not technically part of the trail, are both terrific places to stop for a picnic.

    The quality of the wines poured in the four tasting rooms, though dramatically different from one another, would be of interest to any wine lover.

    Finally, on to the Connecticut Wine Trail, which offers tasty wines, lovely wineries, a beautiful drive and plenty of extras along the way.

    The closest grouping of wineries on the trail is a solid two-hour drive from New York, in Litchfield County. Hopkins Vineyard is an excellent place to start. It’s one of the state’s more established wineries, and all of the wines are made with estate-grown grapes from its 30 acres of land. They are uniformly nice wines, some a tad sweet and fun and others, like the Cabernet Franc, quite serious.

    Sunset Meadow Vineyards is an absolute gem. Owners George and Judy Motel have been growing grapes for more than 10 years, and just opened the winery and tasting room in May 2008. They grow about 95% of the grapes for their wine on premise and manage their 40 acres by hand, using sustainable farming practices. The care of the vineyard is evident in the wines, which are all quite good. The Motels also work the tasting room, with Mrs. Motel pouring and Mr. Motel, who is also the winemaker, working the cash register when needed.

    Haight-Brown Vineyard and Miranda Vineyard are charming spots, too. Haight-Brown offers a wine and cheese tasting and, on a recent visit, Miranda had live music and sangria in the tasting room.

    The best part of the trail is a lovely drive through the country past quaint towns and a dozen farm stands. Must-do stops include getting cow cookies at the Bantam Bread Company, in Bantam, and stopping for dinner at a new place called Community table in Washington.

    All of the winery people were incredibly friendly and each eager to promote the wineries down the road. “We really try to impress upon the group to be really gracious hosts,” says Jamie Jones, president of the Connecticut Wine Trail. “We’re all about working together to encourage raising the bar in terms of growing our vineyards and improving our wine. Our ultimate goal is to make us a recognized region.”

    Write to Melanie Grayce West at melanie.west@wsj.com

  109. chicagofinance says:

    un mod

  110. josilyndob says:

    back action adapt contributed

  111. witchblade says:

    I really like reading this post and I am very happy that you posted it on this blog…

  112. kyndialfon says:

    warms end serious

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