How many bailouts need to fail before they realize it won’t work?

From CNBC:

More Borrowers Underwater: Why We Should Care

Falling home prices at the turn of the year pushed more borrowers into a negative equity position, meaning they owe more on their mortgages than their homes are worth.

In Q4, 23 percent of borrowers nationwide, or 11.1 million, were holding “underwater” mortgages; that’s a collective $750 billion of negative equity, according to the latest survey from CoreLogic. That’s up from 22.5 percent, or 10.8 million, in Q3, again, thanks to falling home prices. To make matters worse, 2.4 million borrowers have less than 5 percent equity in their homes, deemed as “near-negative” equity.

So why should we care if the bulk of these underwater borrowers can still make their monthly mortgage payments? “Negative equity holds millions of borrowers captive in their homes, unable to move or sell their properties,” notes CoreLogic’s chief economist Mark Fleming. “Until the high level of negative equity begins to recede, the housing and mortgage finance markets will remain very sluggish.”

Negative equity will slow the pace of home sales, no question, but it will also provide more problems for policymakers and state and federal regulators. Right now the mortgage market is at the mercy of a huge potential settlement with the state attorneys general and a whole bunch of feds, part of which will be a push for principal write down on troubled loans. With negative equity continuing to rise, the principal write down argument gains strength. I spoke with Missouri state AG Chris Koster yesterday at a conference in DC:

“I think principal write-down is the right way to go. Twenty to 25 billion dollars is a significant amount of money. The big question is are we talking about five banks, 15 banks who chip in on that fund? We don’t know the answer to that until we get through these negotiations, but we’re at the beginning of something serious that could be successful.”

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87 Responses to How many bailouts need to fail before they realize it won’t work?

  1. grim says:

    From the Daily Record:

    Layoffs notices handed out at AC Casinos

    Layoff notices have gone out to 110 more workers at the New Jersey Casino Control Commission. That leaves only three workers untouched by the sweeping deregulation that’s part of Gov. Chris Christie’s Atlantic City turnaround plan.

    The latest notices went out Friday. Of 261 workers at the commission, 258 have gotten layoff notices.

    The job cuts are designed to save millions of dollars for the 11 casinos, which pay the workers’ salaries. But state officials recently acknowledged the cuts will save far less than originally anticipated: about $10 million instead of $20 million to $25 million. The discrepancy was first reported last month by The Press of Atlantic City.

    Earlier this year, layoff notices went out to 110 casino inspectors and 33 clerical employees.

  2. Mike says:

    Good Morning New Jersey

  3. grim says:

    From the WSJ:

    Citigroup May Move 400 Jobs to N.J.

    Citigroup is considering moving as many as 400 jobs from New York to Jersey City, as New Jersey’s Economic Development Authority on Tuesday approved a $12.3 million subsidy package in an effort to woo the Manhattan-based bank.

    Citi is exploring relocating the jobs to 499 Washington Blvd., a building near the shore of the Hudson River owned by the LeFrak organization, according to a summary of the incentive package from the New Jersey agency.

    In a statement, a Citigroup spokeswoman characterized the potential move as one of growth in the region. “Citi is exploring additional office space to accommodate growth plans in the tri-state area but has not entered into any definitive arrangements,” the spokeswoman, Anu Ahluwalia, said. “We are looking for additional space to make room for planned hires in our TriBeCa office.”

  4. grim says:

    From the Record:

    Woodcliff Lake Pharmaceutical Company to Layoff 600 Around US

    Eisai Co. said Tuesday that it would eliminate about 600 jobs, or 20 percent, from its U.S. operations, an unspecified number of which will include employees from its Woodcliff Lake headquarters as the pharmaceutical company loses its patent on its biggest-selling drug.

    “We don’t have specific numbers by site, yet, so I can’t confirm specific numbers by state,” said Lynn Kenney, a company spokeswoman, in an e-mail. “[Woodcliff Lake] will definitely be affected, in all areas of business — commercial, support services and [research and development.]”

  5. grim says:

    From the NY Observer:

    New York Homeowners: A Taxing Situation

    It’s no secret that more than a few New York homeowners actually live beyond the boundaries of the Empire State. They own a small apartment in the five boroughs, or a vacation home on Long Island or in the Hudson Valley, but they actually live in New Jersey or Connecticut or Pennsylvania.

    Owning a piece of New York real estate doesn’t make you a real New Yorker, any more than investing in a vineyard in Tuscany makes you Italian. But according to a recent court decision, owning a second home in New York may not make you a citizen of the Empire State, but it does make you a New York taxpayer. Whatever happened to the notion of “no taxation without representation?”

    Incredibly, a New York court recently ruled that a couple from Connecticut must pay New York state income tax based on their ownership of a beach house on Long Island. The couple was hit with a bill for $1 million in back taxes. The court affirmed an early decision, equally bizarre and potentially destructive, that contended that ownership of a vacation home that could be used year-round counts as a permanent residence, even if the owners spend little or no time there.

    Experts say that the absurd ruling very likely will depress real estate values in Manhattan and the Hamptons, where many out-of-state businesspeople own small apartments or vacation homes. This would be a disaster at any time, but especially so in the midst of a slow and possibly faltering economic recovery.

  6. Mike says:

    I asked this question the last time principal write down was mentioned here but I did not get an answer. What does it mean to a home owner who can afford to pay their mortgage but won’t because they’re blowing bubbles? Start throwing some out on the sidewalk and maybe the rest will get the message.

  7. jamil says:

    comrade, prev thread

    Too many lib dirty tricks nowadays. Cant’t track them all..besides, internet connection sucks in this part of the world..

  8. grim says:

    From the WSJ:

    States Push Banks to Fix Foreclosure Process

    State attorneys general stepped up pressure on banks to address allegations that mortgage companies violated state laws when processing foreclosures.

    “What we’re really trying to do is change a dysfunctional system,” Iowa Attorney General Tom Miller told reporters Monday at a conference of attorneys general. “We’re hopeful that we can reach a resolution that will be good for homeowners and good for the banks in the long run.”

    Mr. Miller said that the negotiations between the government officials and the banks could be completed in “a couple” of months.

    He and federal regulators aim to reduce foreclosures by more tightly regulating how banks and other mortgage servicers treat homeowners struggling to make their mortgage payments. Several lenders have acknowledged using “robo-signers” who didn’t personally review documents their colleagues prepared.

    Officials have been discussing whether to impose large financial penalties on servicers. Those penalties could include requirements that banks write down more than $20 billion of loan balances for borrowers who owe more on their properties than their homes are worth.

    Attorneys general and federal regulators are still hashing out which borrowers would qualify to have a portion of their loans forgiven.

  9. hoodafa says:

    Bank Chief Rejects Idea Of Reducing Home Loans

    Showing resistance for the first time against government pressure to write off tens of billions worth of mortgage debt, Bank of America executives said on Tuesday that the idea was unworkable and warned that it would be unfair to borrowers who had managed to stay current on their loans.

    More at: http://www.nytimes.com/2011/03/09/business/09bank.html?_r=1&hpw

  10. Dissident HEHEHE says:

    The principal writedown is going to be so miniscule per loan that the same borrowers are still going to be underwater and foreclosed on within a year of the writedown. Just look at the numbers for the past mortgage mods that end up back in foreclosure. They are through the roof. These moronic politicians and attorney generals are trying to fight a forest fire with squirt guns.

  11. bankheadbetty says:

    The American Way: (1) Excuses removing personal responsibility & (2) Entitlement. Let’s also bail out people who were irresponsible in their purchase of stocks, boats, autos, vaction trips, dinners at restaurants, (___fill in the blank___). All Americans think they’re entitled to experience house appreciation. This country is in major trouble…

  12. Lone Ranger says:

    “These moronic politicians and attorney generals are trying to fight a forest fire with squirt guns.”

    He,

    Exactly. There are more than 10M in some form of foreclosure/deliquent. If you took the worst 2M of the bunch and wrote down 10K each, you have allocated your 20B. It’s fighting a category 5 with a ceiling fan.

    If 20B is the final #, bank execs will be doing cartwheels down WS.

  13. Lone Ranger says:

    “The American Way: (1) Excuses removing personal responsibility & (2) Entitlement.”

    [11],

    Not sure if you are talking about the sheeple or the banks, or both?

  14. Only sensible thing to do if you have no equity is to default on the loan, and work a strategy to stay in your house as long as you can.

    I would also add that if one has equity in a home, now would be an excellent time to take advantage of some of the banks offering HELOC again. Strip the equity, then follow the same strategy as in the paragraph above.

    It’s all going to hell, folks. Oblivion is nigh.

  15. First, the US taxpayer gets butt-banged for TARP, TALF and guarantee provisions that have turned our biggest banks into giant, zombie GSEs.

    Now, we will take it in the arse again with this bogus “relief” program. An average 2K principal reduction per affected borrower is an even bigger joke than any of the HAMP iterations. At least HAMP didn’t come with what’s sure to be comprehensive releases from all kinds of future claims against the banksters.

    BC is right. The banksters will be bathing in Cristal when this travesty is announced.

  16. Clearly, the banksters now own the attorneys general of all 50 states. Whatever “negotiation” is occurring now is simply eyewash to dupe the masses into thinking someone is on our side.

  17. This is not your grandfather’s moral hazard.

    It is, in fact, a recipe for the end of the world.

  18. jamil says:

    16, i hope so. That is also rule of law. Alternative, that being loyal to hopey and change is too scary.

  19. JJ says:

    What cuomo should be going after is rent control and rent stabalized apartments. When I had one the paper lease sitting in the file cabinet at the realtors office somewhere made me claim that apartment was my primary residence. But I know at least 50% of my building no one had their apartments listed as primary residences on their tax returns. Single people had moms house in NJ or LI, rich folks had they beach house listed, heck one lady lived in Ireland and only stayed in NYC apartment a few months a year. Others had it as a pied a tier. I am shocked that this big slam dunk since people legally signed paper work saying it is their primary residence Cuomo does not just do a data base check vs. tax returns.

  20. safe as houses says:

    Since Tiki Barber retired around the peak of the bubble, can we use his his un-retirement as a sign we are at or near the bottom? Or is it just one step closer to the end is nigh time?

  21. JJ says:

    If Tiki stayed one more year and got SB ring with Giants he would not be looking for west coast bench warmer jobs in the NFL at the age of 36.

    Cheating on your 8th month pregnant wife is disgusting. Cheating on her with a summer intern your are working with (employee/boss) relationship is even stupider. Guaranteed to lose your job and wife.

    I once worked for a big big boss at a white shoe private bank (BBH), but not name dropping. Dope was cheating on his wife with the secretary. He went on vacation for week and all at once a guy from Kroll shows up that high end firm that handles white collar fraud. He interviewed everyone, then they went through all the TE receipts and dope did not want wife to catch on about affair as she saw his personal credit card statements so he ran his dinners and hotel with secretary through TE system which got him fired. He never returned from vacation. Needless to say the young secretary wanted nothing to do with him when he was fired. He had no job, and no wife. Why do dopes cheat on wife with a direct employee is beyond me. Bad enough to either put your marriage OR job at risk, but why do people put their marriage AND job at risk for a few rolls in the hay with a jr. staffer.

  22. Lone Ranger says:

    Ali has a better chance of making a comeback than Tiki.

  23. JJ says:

    His best chance is to wait till next time twin brother is injured and fill in for him.

    Lone Ranger says:
    March 9, 2011 at 9:56 am

    Ali has a better chance of making a comeback than Tiki.

  24. Juice Box says:

    re # 21 – JJ it’s the “hamburger rule” don’t get your meat at the same place you get your bread.

  25. Kettle1^2 says:

    Juice

    Don’t $hit where you eat!

  26. Juice Box says:

    Tiki used to have a legendary off-season workout, he would go running in the Ramapo Reservation hills several times a week near his home, and bragged that he was the only Giant who could handle those Rocky hills three times a week.

    I had a chance run in with him right after he retired when he spoke at a conference back in 2007 . I asked him if he still runs the hills three times a week and he said to me has has not ever worked out a single day since he retired at the end of the 2006 season.

    The only thing that kept him pretty injury free for the decade he played for the Giants was all of his running and working out, he is a short guy at 5’9″ or less and he was a solid 205. It will be interesting to see if he can get back into the kind of shape that gave him 10 good years at the Giants or will he be another Emmit Smith and just do Dancing with the Stars.

  27. JJ says:

    http://www.dailyfinance.com/story/10-unusual-things-you-probably-dont-know-about-steve-jobs/19871357/

    Interesting Steve Jobs real life is pretty unusual, he is a adopted muslim and his Mom that raised him did not even graduate High School. He is a dead beat dad, who refused to pay child support. He does not give to charity. In fact Apple has 40 billion in cash and never even bought a girl scout cookies, not a nickle. He is a college drop out, just did a semester in a college. Although his real parents are muslim so he is considered Muslim but he practices Zen Buddhism, which is odd as he does not believe in charity. When he and Steve Wozniak made Breakout to sell to Atari for 5k they were supposed to split is 50/50 yet he cheated Steve by saying he only got paid $700 and gave Steve only $300 bucks and kept $4,700 for himself. He eats healthy as a pescetarian. In other words, he eats fish but no other meat. Yet he admits to doing lots of LSD and drugs in his past. His sister is Mona Simpson, who is a famous author long before Steve Jobs was ever famous. But also rarely is that mentioned. At least having a famous seat is a cool bit of info.

    See full article from DailyFinance: http://srph.it/ia3gkb

    Not judging, but Steve Jobs is weird

  28. NJGator says:

    We’re so proud of our elected officicals here in Montclair!

    Councilman Lewis says odds of no tax increase the same as him, Africk putting on ballet slippers

    Imagine Montclair Township Councilmen Nick Lewis and Cary Africk in tutus. Well, the odds of really seeing that are about the same as there being no increase in municipal taxes this year, Lewis is telling township residents.

    Third Ward Councilman Lewis, barraged by almost 100 e-mails in support of a 0 percent increase in municipal taxes, is sending out a detailed letter in response, saying the campaign by Concerned Citizens of Montclair [CCM] is “like thousands of residents writing to demand that Cary Africk or I become a prima ballerina.”

    Lewis added, “Some things are simply not possible.”

    http://www.northjersey.com/news/117596508_Councilman_Lewis_says_odds_of_no_tax_increase_the_same_as_him__Africk_putting_on_ballet_slippers.html?page=all

  29. Declaring BK would be a great thing for Montklair. Sounds like there’s enough people beginning to get fed up with the robbery there to exert some political will to cut off the leeches.

  30. Mike says:

    Number 9 Hoodafa you said the keyword UNFAIR The fair way is to toss a few on the sidewalk and set an example!

  31. Mocha says:

    “Bank of America executives said on Tuesday that the idea was unworkable and warned that it would be unfair to borrowers who had managed to stay current on their loans”

    Since when does BAC give a flying f about its customers? If it made business sense to them they would burn the homes down.

  32. make money says:

    Something really ugly is about to happen…(if ZH report is true)

    And many thought Bill Gross was only posturing when he said he is getting the hell out of dodge. Based on still to be publicly reported data by Pimco’s flagship Total Return Fund, the world’s largest bond fund, in the month of January, has taken its bond holdings to zero.

    After sporting $28.6 billion in “government related” securities, TRF dropped to $0.0, while its cash holdings surged from $11.9 billion to a whopping $54.5 billion.

  33. Anon E. Moose says:

    Mocha [31];

    Perhaps. My take is – how bad of an idea must the AGs have cooked up if BAC won’t even get behind it and/or can’t find an angle to profit from it?

    It is accurate to think that if they can limit their liablity to some known quantity now, it is certainly in their interest to do so. Analogous to the tobacco settlements: $12/pack Marlboros (in NYC, anyway) aren’t killing the tobacco industry; They just needed to know the rules that they were going to have to play by going forward, and set their prices accordingly. So if the biggest banks could pull off some market-share proportional settlement fund to cap their downside, they’d probably do it in a heartbeat.

    The problem is that giving the settlement money to the deadbeat squatters via principal reductions simply encourages future defaults and losses. Therefore, it does not limit the banks exposure in any meaningful way, which is, after all, the real purpose of any settlement.

  34. JJ says:

    Bill gross must have read my post yesterday. Problem is you can’t get out of bond market for long with zero interest rates. I just sold my long term non callable bonds with below average coupons and bonds that are trading well above par. But that is all I can do. I now have 150K dry power, I can’t even go short term bonds as everyone is doing that 0-3 year yields on anything is very little. Average coupon on my bond portfolio is 8, most have calls coming up so all around par. Bill Gross talks a big game, but his investors are expecting at least 5-7% each year relatively risk free. He goes to cash, it may lower risk, but when he is getting 1% yield he will lose customers. Bill is also talking about going into stocks, but that move 2 years into a bull run carries risk. I only have like 130K in stock and still that scares me as I want out in next few weeks. Then there is the problem, Gross buys and holds lots of good bonds, for instance he feasted on GMAC bonds back in 2009, good move, back when they were paying 30%, he locked that rate in for a good 20 years. Stuff like that pays a lot of interest you have to reinvest. Bond traders don’t get paid to sit on their hands. Heck, I got around 100K worth of bonds in early 2009 below par with coupons well over 10%. The cash comes in every two weeks. Mr. Gross also has issue he needs liquidity, in times of trouble retail investors hit sell button. His junky GMACs, that are cash cows turn illiquid in times of trouble. Mr. Gross has never beaten me in a single year as he has many masters to serve. Plus he has NAV to worry about. Times have gotten so bad I had a chance to buy two new york munis today with a 6 coupon today at par, I put in low ball bids that were rejected, normally 6% yield on a NY muni is like a unicorn, you rarely see it, with QE 2 ending, one does not know what is happening. I am out of margin. Sitting on average 8 coupons and had 150K dry powder, I can wait and see what happens. Others may get burned. 40% of my illiquid bonds are for kids college or wedding anyhow. I can sit 10-20 years if I have to collecting the coupons, must people cant.

  35. make money says:

    Wanta,

    CNBC and Bloom are now citing and reporting Tyler form ZH. Mainstreem media reads blogs now???

  36. 30 year realtor says:

    #34 Moose – What are you thinking? Limit exposure on a mortgage in a real estate market in steep decline? Just because they limit exposure to the consequences of their fraud doesn’t mean they can do anything about the rest.

    Just like buyers who f*cked up and bought homes beyond their means, banks loaned money like they were drunk. Consequences are a 2 way street. Getting caught committing fraud and making bad loans are 2 different issues that both carry heavy price tags.

    As usual your objectivity is clouded by your agenda!

  37. Essex says:

    Cheating is a waste of time and a distraction. Use a pro.

  38. Kettle1^2 says:

    Essex,

    that didnt work out so well for spitzer…. iots hard to cover the money trail if someone looks closely

  39. Anon E. Moose says:

    30-yr [37];

    You’re right, I’m not objective. I don’t merely want a fairly priced house by historical measures. Its far too late for that.
    I want my pound of flesh for suffering the slings and arrows of outrageous fortune since 2005.
    I want the same free house that the deadbeats are now enjoying on my tax dime.
    I want the deadbeats living in Obamaville tent cities, with their kids having night terrors like my daughter because we had to move rentals and she wants to go ‘home’. I want the seller to profusely thank me because I didn’t bend his wife over the closing table as part of the deal.

    Not that I expect to get any of that, but if I enter the process with a ‘fair and equitable’ outcome as my opening offer, no good can come of it.

  40. d2b says:

    Kettle:
    That Spitzer story fascinates me. The guy is worth $80 million dollars and gets jammed up withdrawing a couple of thousand for a hooker.

  41. d2b says:

    Has anyone else noticed a lot of chatter about a crash this week? Probably means that we are in for a rally.

  42. Essex says:

    39. My guess is Spitzer was setup.

  43. Fabius Maximus says:

    Grim / Tosh
    Previous thread

    Would be up for the 24 hrs of Lemons. How about Stafford in July.
    http://philadelphia.craigslist.org/cto/2248879935.html

  44. Kettle1^2 says:

    Essex D2B

    I dont know about setup, but someone who had a bone to pick new about his side action. You have to figure that virtually everyone has some dirt they wouldn’t want public. So its really just a matter of your political enemies digging it up.

  45. Comrade Nom Deplume says:

    [39] Kettle,

    Spitzer could have covered his tracks easily. Simply withdraw random amounts from ATMs periodically for “walking around money” and stuff it in the mattress until you need it for that untraceable purchase.

    His problem was that he wasn’t paranoid enough.

  46. Comrade Nom Deplume says:

    This from the Chutzpah department. Nice try, applying to DOL for cover. Still would not have saved him from the IRS.

    http://www.dol.gov/ebsa/regs/aos/ao2011-04a.html

  47. chicagofinance says:

    In a word….booya…
    http://finance.yahoo.com/q?s=chsi

  48. Fabius Maximus says:

    It was a total set up. He got jammed up when he went over state lines, at that point the three letter crowd got involved.

    That Commerce Clause will get ya!

  49. chicagofinance says:

    The end is nigh (gubernatorial edition):

    Town hall fan calls NJ governor Chris Christie ’hot and sexy’

    HOPATCONG, N.J. — New Jersey Gov. Chris Christie has received an unusually warm reception at his latest town hall meeting — warm enough to make him blush.

    During Wednesday’s event at a church hall in Hopatcong in Sussex County, Debra Nicholson from Sparta prefaced a question about affordable housing laws by telling Christie he was “hot and sexy.”

    The portly but recently reducing Christie responded by asking her to write a note to his wife restating that claim.

    On Tuesday, Christie and his wife, Mary Pat, celebrated their 25th wedding anniversary. Christie said comments like Nicholson’s would keep Mary Pat on her toes.

  50. Kettle1^2 says:

    Fabius

    So the lesson there is to always check the hookers divers liscense to ensure your not crossing state lines? Is it sort of like region coding on a DVD? Region coded prostitutes?

    Cant a fellow contract out for an “erotic massage” while on a business trip any more???? If she cant resist you dashing good looks, its not your fault!

  51. The guy is worth $80 million dollars and gets jammed up withdrawing a couple of thousand for a hooker

    It wasn’t the withdrawals so much as the deposits!

    /tah dump dump

  52. Fabius Maximus says:

    #51 Ket,

    Not quite, his problem was he was he ordered a Grimaldis Brick Oven Pizza to be delivered from Brooklyn to DC.

  53. #44 – You have no idea how tempting that is….

  54. Kettle1^2 says:

    Fabius 53

    You would imagine that a fellow of his position would know how to acquire the desired pizza locally. Especially since he has to have know about the risks of ordering a pizza from out of town.

    I wonder how long it took before his wife shared some pizza with him after that little fiasco.

  55. Anon E. Moose says:

    Re: [55];

    Wow. Trolling for clients by spamming random unrelated blog comment threads. There are so many thing wrong with that. Is it Phoenix or Pasadena (hover over link to see URL)? DUI or deportation? I can’t phathom this being so cheap to do that even one client pays for it.

    And “%BLOGTITLE% Quality post.” Reminds me of the time I complained to eBay about shill bidders. The reply was “We have thoroughly investigated your complaint about [insert username here].” The investigation was so thorough that they forgot to fill in the name on the form letter e-mail reply. Meh.

  56. willwork4beer says:

    Fawn Hill Farm sold for bargain price

    Published: Wednesday, March 09, 2011, 12:24 PM Updated: Wednesday, March 09, 2011, 12:51 PM

    By Leslie Kwoh/The Star-Ledger

    You know the luxury property market is struggling when one of New Jersey’s most lavish estates sells for barely one-quarter of its original listing price.

    Fawn Hill Farm, the storied Harding Township landmark that hit the auction block last October, sold for just $6.4 million —a fraction of its original listing price of $22.5 million —according to a recent update on the auction company’s website.

    The 34-acre property, located in the affluent New Vernon section of the township, languished on the market for five years before owners Herb and Gloria Glatt hired an auction company as a final resort. By that time, they had marked down the price to $15.3 million, but with no luck.

    Concierge Auctions, which specializes in luxury properties, had advertised it would auction off the property in three pieces. However, the winning bidder ended up purchasing the entire property, which dates back to 1937 and features a 21 room main residence, bowling alley, courtyard and horse stable. At the time, Concierge declined to immediately reveal the selling price.

    Mary Horn, the listing agent for Fawn Hill for four years, estimates the estate was worth double its auction price. In the year leading up to the auction, she received an $8 million offer for the house alone, but the owners hoped to get even more with an auction, she said.

    “It’s worth a lot more than $6 million,” said Horn, who specializes in luxury homes at Weichert Realtors. “I was there at the auction—I was numb.”

    http://www.nj.com/business/index.ssf/2011/03/fawn_hill_farm_sold_for_bargai.html

  57. chicagofinance says:

    If president timber is measured on pure balls….here is your man….
    http://news.yahoo.com/s/ap/20110309/ap_on_el_ge/us_gingrich2012

  58. chicagofinance says:

    president = presidential

  59. NJGator says:

    Paula Deen comes to the bargaining table and offers the taxpayers nothing…

    Union proposes flat tax to save Montclair’s teacher aides

    The Montclair Education Association has proposed a new flat tax it says could avert the impending outsourcing of Montclair’s teacher aides.

    Margaret Astorino, the MEA’s interim president, said each household in Montclair would be assessed a $131 annual fee under the plan proposed by the teacher union.

    “It would generate $1.4 million,” Astorino explained. “When you combine that with the $366,000 that the board has already restored for teacher assistant positions from the increased state aid they just received, you get to the $1.7 million the board would save by outsourcing the aides.”

    The MEA proposal was contained in a one page document that was presented to Jim Patterson, the Montclair School District’s personnel director. It was being forwarded on to the board’s three-member negotiating committee.

    “The board asked us to present them a proposal in writing,” Astorino said. “We did that. Now we’re waiting to hear back from them. We’re ready to meet with them again.”

    Board Vice President Leslie Larson, who sits on the negotiating committee, declined to comment on the MEA proposal late Wednesday afternoon because the panel had not had an opportunity to go over it.

    “We will review it,” Larson promised.

    http://www.northjersey.com/news/117678723_Union_proposes_new_flat_tax_to_save_Montclair_s_teacher_aides.html

  60. moose (40)-

    What’s more entertaining than the simple fact that you are a completely self-serving prick is the fact that you are completely unconscious of it.

  61. sx (43)-

    Don’t doubt for a minute that Kenny Langone didn’t simply have a good detective do a little recon work on Spitzer, then drop a dime when he came upon his penchant for interstate crime.

  62. chi (50)-

    You ever been to Hopatcong? In a town like that, Christie’s nickname would be Flacco.

  63. Outofstater says:

    #60 I didn’t see anything in that piece about a referendum on the issue. Please tell me the taxpayers of Montclair get to vote on the new flat tax to save teachers’ aides.

  64. Anon E. Moose says:

    Debt [61];

    Quite a high compliment from someone such as yourself, given how much in-depth and personal knowledge of the type you surely have.

  65. Anon E. Moose says:

    Re [56];

    Actually a little disappointed that the example I was referring to has gone down the memory hole.

  66. NJGator says:

    Outofstater 64 – Montclair taxpayers don’t get any vote on school budget issues. Whatever the BOE and Union agree to, the taxpayers have to cough up the bill.

  67. Outofstater says:

    #67 I thought we won a revolution over that pesky little issue.

  68. Outofstater says:

    In other news, the Wisconsin Senate has successfully bypassed the Dems over the
    collective bargaining issue.
    http://minnesota.publicradio.org/display/web/2011/03/09/wisconsin-union-collective-bargaining/

  69. grim says:

    #69 – Oh boy. Trying to playing a game, and they got played. I can’t imagine the uproar right now.

  70. Fabius Maximus says:

    #55 Ket

    Harold summed it up best.

    Harold: I want that.
    Kumar: What? A Hot Dog Heaven super chili cheese dog?
    Harold: No. I want that feeling. The feeling that comes over a man when he gets exactly what he desires. I NEED that feeling!
    Kumar: Are you saying what I think you’re saying?
    Harold: We gotta go to White Castle.

  71. grim says:

    #67 – Word on the street is that Clifton will support the rebel uprising in Montclair.

    Comparisons to Gaddafi really don’t seem so far fetched. Although nobody that looks like Paula Dean could mean any harm to anymore.

  72. Outofstater says:

    #72 You know, seriously, I am beginning to think that Clot might be right about the possibility of civil unrest here. Some of the conversations in Wisconsin got a little testy. Throw in a few gas lines, some spot shortages and ridiculously high food prices and the average American anesthetized by television and sated by chili cheese fritos might actually wake up.

  73. Al Mossberg says:

    The stupid t_t suckers of Wisconsin are the least of my worries. All h_ell is about to break loose in the middle east in 48 hours.

  74. Outofstater says:

    #74 What do you think the odds are that the Saudis will be able to pull off a day of rage on Friday? I don’t have a clue. The gov’t is so repressive. Do they still have public amputations and executions in Chop-Chop Square every Friday like they used to? Sick.

  75. Juice Box says:

    Re:73 – requires less eating and more reading.

    another Fat man calls for change.

    http://www.huffingtonpost.com/michael-moore/america-is-not-broke_b_832006.html

  76. Comrade Nom Deplume says:

    [76] Juice

    Now I know what my delusional liberal friends have been smoking (wait, is delusional liberal redundant?).

    Personally, I’d love to see a total democratic takeover of Wisconsin by progressive Michael Moore types. The resulting carnage would be a cautionary tale to others in other states.

  77. moose (65)-

    Isn’t it time for your monthly douche now?

  78. stater (69)-

    It’s a nice start, but the parasites will eventually have to be quelled with bullets.

    When those of us who survive look back, stuff like what’s happened in WI will be remembered as the good old days, when the “system” worked.

  79. grim (72)-

    People who look like Paula Deen only mean serious harm to themselves.

    We need to take this self-destruct mindset and apply it to 30mm or so carbo-addicted Amerikans.

  80. Eat yourself to death with simple sugars and processed carbs.

    If so, gubmint and insurance should pay for a $14.99 grave marker and an unlined pine casket. Period.

    Get your fat ass out of the way, you stupid fat fcuk. Coffee is for closers.

  81. Like those WI parasites who got fired are gonna organize and start a business incubator Monday morning.

  82. I’d just like to fire a cruise missile into the office of the guy at NPR who thinks that anyone in Amerika wants to watch Lawrence Welk reruns.

  83. Essex says:

    83. Hatred for Lawrence Welk? Oh my.

  84. Essex says:

    Doom we are circling the drain. We should bow to our overlords and take whatever rights we have left and trash them. It’s just easier that way. The rubes and rich have won. It’s only a matter of time now.

  85. Essex says:

    But I do find the constant reference to the much hated public employees from equally despised professional realtor to be comedic.

  86. Neanderthal Economist says:

    Its funny how early spring has actually prompted some significant price reductions in my town. Didn’t think that would start to happen until june.

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