Lowball! Trump Edition

From the Star Ledger:

‘You’re acquired’: Atlantic City’s Trump Plaza fetches $20 million in bargain-basement deal

Trump Plaza, the Boardwalk centerpiece of Donald Trump’s one-time Atlantic City empire, was sold Thursday to a California company for $20 million in the cheapest of a series of bargain-basement deals for distressed gambling halls in the struggling New Jersey seaside resort.

The Meruelo Group of Downey, Calif., plans to close the deal by May 31. It is the lowest price ever paid for a casino in Atlantic City.

The company has not decided on a new name for the casino-resort, but said it will not continue to use the Trump name.

“Trump Plaza is one of the world’s most recognized gaming resort destinations and is an integral part of the Atlantic City landscape,” said Alex Meruelo, founder and CEO of the Meruelo Group. “Our company is thrilled to have the opportunity to become the new owners of this property, and we are firmly committed toward establishing it as one of the elite destinations in Atlantic City and on the East Coast.”

Robert Griffin, CEO of Trump Entertainment Resorts, told The Associated Press the deal shows the Atlantic City market is still attractive to investors, given the right price.

“This is good news for the city, for the state, and for the Plaza,” he said. “There is still considerable interest in this market.”

Trump Plaza, which cost $210 million to build, opened in May 1984 as one of Donald Trump’s pet projects. The real estate mogul has since limited his dealings in Atlantic City to a 10 percent stake in Trump Entertainment Resorts.

Trump told The Associated Press he is a bit wistful to see his former properties in Atlantic City sold off and renamed.

“There was a period of time when Atlantic City was the hottest place in the world,” he said. “I got out years ago, and my timing was very good. But the world turns. They’re getting a very good location.”

The sale price was also consistent with the fire-sale prices casinos have been going for lately in Atlantic City. Resorts Casino Hotel sold for $31.5 million in Dec. 2010. Trump Marina Hotel Casino fetched $38 million when it was sold in May 2011 and became the Golden Nugget.

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123 Responses to Lowball! Trump Edition

  1. grim says:

    re: Lautenberg – he is so old that back when his family left Paterson it was actually a nice prosperous place.

    I can’t look at the guy without thinking of Scarecrow from Wizard of Oz.

    http://media.washingtonpost.com/wp-srv/politics/congress/members/photos/228/L000123.jpg

    http://studyabroad.apguru.com/wp-content/uploads/2012/07/Wizard-of-Oz-scarecrow.jpg

  2. Essex says:

    PRETORIA, South Africa (AP) — Oscar Pistorius held his head in his hands and wept openly in court Friday as prosecutors said they would pursue a charge of premeditated murder against the Paralympic superstar.

    Pistorius was formally charged at Pretoria Magistrate’s Court with one count of murder after his girlfriend, Reeva Steenkamp, a model and budding reality TV show participant, was shot and killed at Pistorius’ upmarket home in the predawn hours of Thursday.

    Prosecutor Gerrie Nel said Friday in court it was premeditated murder, indicating the prosecution would file that more serious charge, upgraded from murder.

  3. Essex says:

    Yeah Trump is a real master of the universe.

  4. grim says:

    Speaking of masters of the universe … Russian dudes boat is worth 20 times what the casino is worth?

    http://www.cnbc.com/id/100461801

  5. grim says:

    From CNBC:

    Foreclosures Fall Due to New Laws

    Foreclosure activity continued to drop in January, led by dramatic changes in the state that once led the nation in foreclosures. A new law in California, the “Homeowner Bill of Rights,” makes it much harder and potentially more costly for banks to foreclose; hence they are suddenly finding alternatives.

    “The new law imposes fines of up to $7,500 per loan for filing of multiple unverified foreclosure documents. As a result, the downward foreclosure trend in California accelerated into hyper speed in January, decisively shifting the balance of power when it comes to the nation’s foreclosure activity,” said RealtyTrac’s Daren Blomquist.

    Foreclosure activity fell 28 percent from a year ago nationally, according to a new report from RealtyTrac, but in California, they were down nearly 40 percent. More telling is foreclosure starts, the first notice of a foreclosure filling. In California they fell 62 percent from December and 75 percent from a year ago. The new law went into effect January 1st, 2013.

    “I do think some of these delinquent properties will still end up as foreclosures down the road,” notes Blomquist. “But this type of legislation is also forcing lenders to consider other creative ways of disposing of the delinquencies that may not be as difficult as foreclosure has become.”

    With legal changes in California, Florida now has the dubious distinction of having the most properties with foreclosure filings in the nation. One in every 300 homes had a filing in January, according to RealtyTrac. That is twice the national average.

  6. Essex says:

    The 2008 financial crisis cost the U.S. economy more than $22 trillion, a study by the Government Accountability Office published Thursday said. The financial reform law that aims to prevent another crisis, by contrast, will cost a fraction of that.

    “The 2007-2009 financial crisis, like past financial crises, was associated with not only a steep decline in output but also the most severe economic downturn since the Great Depression of the 1930s,” the GAO wrote in the report. The agency said the financial crisis toll on economic output may be as much as $13 trillion — an entire year’s gross domestic product. The office said paper wealth lost by U.S. homeowners totalled $9.1 billion. Additionally, the GAO noted, economic losses associated with increased mortgage foreclosures and higher unemployment since 2008 need to be considered as additional costs.

  7. Essex says:

    4. That is what you call a real “liquid” asset…

  8. What time today is the meteor strike?

  9. grim says:

    8 – We are safe, the anti-aircraft missiles on Abe’s boat will take it out.

  10. Mike says:

    Good Morning New Jersey

  11. Comrade Nom Deplume, the original maker of Scungilli Roll says:

    [9] grim,

    I’ve no doubt that the yacht has an arsenal that includes SAMs, at least Stingers or Russian equivalents.

  12. grim says:

    11 – I’m sure there is an arsenal of fully automatic weapons onboard as well. Is that legal in NYC? I suppose if you have enough money, maybe he’ll invite Bloomberg on board for dinner one evening.

  13. Essex says:

    12. You gotta admit, it’s goood to be da King.

  14. Essex says:

    Life is one big series of power grabs, alliances, and dalliances.

  15. grim says:

    Talk about taking your cold cuts seriously..

    Man convicted of killing Hanover resident who laughed at him after meat fell out of sandwich

    A Southern California man has been convicted of killing a New Jersey businessman who laughed at him when pastrami fell out of his sandwich at a doughnut shop.

    The prosecutor says 26-year-old Ronald Eugene Murray II, of Gardena, punched and kicked 56-year-old Mun Jang while they were eating in the Donut King in October 2011.

    Public records indicate Jang lived in the Whippany section of Hanover.

    Murray had taken a bite out of his pastrami sandwich and some of the meat fell out. Jang laughed and Murray became enraged and attacked him.

  16. freedy says:

    wait till they see what the Revel goes for . first the BK,then the sale

  17. yome says:

    Trump plaza is $270 million in debt, they will use the proceeds to pay down debt.
    Who pays the remaining $250 million?

  18. grim says:

    Who pays the remaining $250 million?

    What do you mean, I don’t understand. I keep trying to make sense of that statement, reading it over and over, but every time its just gibberish. Ga Ga Goo Goo, who pays their debt? Huh? Crazy talk so early in the morning.

  19. yome says:

    Yeah, who pays their debt? Will it not be better to erase that in bk?

  20. yome says:

    I am not reading about the buyer taking over the debt. It is a simple sale. Can they not put a lien on the property?

  21. JJ says:

    That whole thing is fishy to me. Paper wealth. Really. So I have a question, a person sells a house for 600K he bought for 200K to a guy and it falls in value to 400K. Sounds to me on a net basis a gain of 200K.

    Essex says:
    February 15, 2013 at 6:54 am

    The 2008 financial crisis cost the U.S. economy more than $22 trillion, a study by the Government Accountability Office published Thursday said. The financial reform law that aims to prevent another crisis, by contrast, will cost a fraction of that.

    “The 2007-2009 financial crisis, like past financial crises, was associated with not only a steep decline in output but also the most severe economic downturn since the Great Depression of the 1930s,” the GAO wrote in the report. The agency said the financial crisis toll on economic output may be as much as $13 trillion — an entire year’s gross domestic product. The office said paper wealth lost by U.S. homeowners totalled $9.1 billion. Additionally, the GAO noted, economic losses associated with increased mortgage foreclosures and higher unemployment since 2008 need to be considered as additional costs.

  22. grim says:

    From Bloomberg:

    Krugman Says Fed Low Rates Key to Housing Recovery: Tom Keene

    Nobel Prize-winning economist Paul Krugman said the Federal Reserve must keep interest rates low to sustain the U.S. housing recovery.

    “We have the beginnings of a housing recovery, it’s just starting to kick in,” the Princeton University economics professor said in an interview today on “Bloomberg Surveillance” with Tom Keene and Sara Eisen. “If the Fed were to raise rates, they would kill that.”

    Krugman called the housing recovery the “best chance” the U.S. economy has to expand. The U.S. should have learned from Japan, which “repeatedly aborted its recovery by tightening too soon” during that nation’s own crisis.

    Krugman said that the U.S. is already five years into a crisis that mirrors the Asian nation’s so-called “lost decade.” The period in the 1990s saw Japan’s economy slip in and out of recession and grow at an average rate of about 1 percent a year after the collapse of a real-estate bubble.

    “We already are Japan-like, we’re worse than Japan ever was,” he said. “The human misery here is much worse than Japan has ever suffered.”

    He said the U.S. needs to build infrastructure and that it is acceptable to pump money into the economy to jumpstart growth.

    “At times like this, the usual rules don’t apply,” he said.

    America’s problem now is unemployment, he said, and while the nation should worry about its long-term debt, it first needs to get joblessness in check.

    “There is no debt crisis,” he said. “The state of our budget in the year 2030 is an issue, but that issue should not get in the way of creating jobs right now.”

  23. Brian says:

    Wife and I used to drive all the way down to AC once a year, go out to eat at the melting pot, etc.

    This year we went to the sands in Bethlehem, PA. Shorter drive, found a room in a mariott much like the one we used to stay in outside of AC. Plus no tolls and a hell of a lot shorter drive.

    I know they say gambling is usually a recession proof business but the PA casinos must be pilfering business from AC.

  24. JJ says:

    So for fun yesterday I set up a twitter account to see what the fuss is. Anyhow I threw out some tweets on my train ride. Twitter you can actually tweet with no internet connection or phone connection on train as it will go when you have a connection.

    So after a few tweets I get a tweet from Vanilla Ice who is now following me. They say your first celeb no matter how minor is first step. I will give it a week or two as it kills time on train.

    I tweet under Row One Jet Fan or hashtag rowonejetfan

    I guess Mr. Ice is a jet fan.

    Anyhow this weekend going down to Lido/Atlantic Beach area house hunting on Sunday. I love the smell of a bear market in the morning.

  25. Brian says:

    Don’t these guys have enough prestigious Bergen County residents to rob?

    Three Arrested From ‘James Bond Gang’ For Burglaries In Sparta: Police Urge Residents To Call 9-1-1 If They Spot Suspicious Activities

    http://thealternativepress.com/articles/three-arrested-from-james-bond-gang-for-burglar

  26. Brian says:

    25 –
    JJ, I hear he likes to invest in real estate now too. Even has his own show about flipping houses in Florida.

    http://www.vanillaicerealestate.com/

  27. JJ says:

    Find luxury properties WAY below value just BEGGING for an investor to take control of the property and SELL IT for rock star cash. (Sell enough of them, and you’ll want to keep one for yourself!)

    I am learning RE from the ICE man

  28. Comrade Scungilli Cannon says:

    Perhaps the Nompound should be in Canada . . .

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

  29. Comrade Scungilli Cannon says:

    [24] brian

    “I know they say gambling is usually a recession proof business but the PA casinos must be pilfering business from AC.”

    Not just the casinos. PA has an entire government agency dedicated to poaching business from New Jersey.

  30. yome says:

    Allan Sloan used his column today to explain a simple but often overlooked point, when interest rates rise, bond prices fall. This means that if long-term interest rates rise substantially in a few years, as the Congressional Budget Office predicts, then the bonds issued at very low interest rates today will be selling at large discounts.

    The implication of this fact is that in 2015 or 2016, the Treasury would be able to purchase back much of the debt issued today at substantial discounts. This would allow it to drastically reduce the government’s debt at no cost. For example, if it bought back debt with a face value of $4 trillion at an average discount of 20 percent, it could instantly eliminate $800 billion in debt, reducing the debt to GDP ratio by almost 5 percentage points.

  31. JJ says:

    Allan Sloan is so smart he can state the obvious. What an idiot.

    yome says:
    February 15, 2013 at 10:12 am

    Allan Sloan used his column today to explain a simple but often overlooked point, when interest rates rise, bond prices fall.

  32. yome says:

    #32
    For some,they look at the rising interest rates as the end of the US.Not everyone has your quickness

  33. Any kind of rise in interest rates detonates the derivatives bomb. It also represents a kill shot to the US being able to service its debt.

    All outcomes to the current mess involve pain and gnashing of teeth. Only question is whether we get a 20-year depression (best case scenario) or the collapse of Western civilization (likely scenario).

  34. At some point, I’d just like to see Bernank and Krugman tried for treason and executed in public.

  35. Silver below $30 this AM.

    BTFD.

  36. JJ says:

    They can run printing press and buy back debt, it is a net positive. Think about it, you print one billion, buy back 1.2 billion of face value debt, rinse and repeat.

    Scrapple Cannon says:
    February 15, 2013 at 10:48 am

    Any kind of rise in interest rates detonates the derivatives bomb. It also represents a kill shot to the US being able to service its debt.

    All outcomes to the current mess involve pain and gnashing of teeth. Only question is whether we get a 20-year depression (best case scenario) or the collapse of Western civilization (likely scenario).

  37. With guys like jj at the controls, we might make it back to the 16th century in my lifetime.

  38. Comrade Nom Deplume, The Scungilli Cannon says:

    [35] scrapple

    This morning, I had the tube on Bloomberg, and was listening (not watching) when I heard some guy expounding on economics, and I thought “who is this guy, he is completely full of shiite, contradicting himself and spouting stuff that no self-respecting economist would ever utter. Sounds like some Krugman-wannabe”

    So I left the kitchen to see who it was.

    Krugman

  39. jj, at what point does creating little green pieces of paper fail to be the solution to all problems?

  40. Comrade Nom Deplume, The Scungilli Cannon says:

    Icahn and Ackman, making it personal. What a fcuking sideshow.

  41. Comrade Nom Deplume, The Scungilli Cannon says:

    [40] Cannon,

    Weimar.

    Look for the canaries in the coal mine: currency controls, reporting outbound investment and foreign investments, and extraterritorial reach by tax authorities. If we start to see these, game over.

    Oh, wait. . .

  42. Herbalife is a Ponzi, but the Ponzi + Icahn are about to crush Ackman in a short squeeze for the ages.

  43. Sh1tting skittles says:

    We are on a rocket sled back to $800/oz Gold.

  44. JJ says:

    Look at GM, CIT, etc. Paying back debt at pennies on a dollar is a great thing. Also towns such as Long Beach NY for instance which has been issuing debt like crazy last two years while munis are at all time lows at later dates when rates rise can buy it back at a big discount. A wonderful thing to take a small amount of surplus funds and pay off debt at a big discount to face. Key is to overborrow now while sun is shinning

    Scrapple Cannon says:
    February 15, 2013 at 11:03 am

    jj, at what point does creating little green pieces of paper fail to be the solution to all problems?

  45. Juice Box says:

    Also Yacht.
    I was on one of these a few years back in the Caribbean. The mega rich have their Yachts follow them from place to place so they can buy artwork and other collectables and not have to deal with import/export laws and customs duties/taxes plus it is nice crash and have parties.

  46. Juice Box says:

    Also berthing in the Hudson for the night then NY STATE LAW applies, no way there is legal weapons on board. Most likely they unloaded the weapons off shore before entering NY Harbor.

  47. Juice Box says:

    re # 43- Looks like the kids in Africa will starve. Didn’t Ackman say he was going to donate any proceeds from his short position to charity?

  48. Anon E. Moose says:

    JJ [45];

    I only which I could do that for my current mortgage when Jimmy Carter interest rates are back in fashion. What is the market value of a 3% note in a 12% environment as a discount off par?

  49. JJ says:

    You are funny, of course the answer to what will a 3% mortgage will be worth when rates go back to 12% is peanuts

    Anon E. Moose says:
    February 15, 2013 at 11:31 am

    JJ [45];

    I only which I could do that for my current mortgage when Jimmy Carter interest rates are back in fashion. What is the market value of a 3% note in a 12% environment as a discount off par?

  50. Anon E. Moose says:

    Juice [47];

    Isn’t there some exception under admiralty law for a foreign-flag vessel making a port call? What happens on the ship, stays on the ship.

    Admiralty law is kind of like alchemy — few know it, few practice it, I know it exists but probably wouldn’t know if it applied.

  51. grim says:

    Let me consult Commentary on the Law of Prize and Booty

  52. Juice Box says:

    Moose only for Gov flagged Military ships etc.

    Civilian vessels cannot berth in NYC with weapons on board, heck at least they let you keep a flare gun. Try sailing into Bermuda with a flare gun. They will take it from you.

    I don’t think he ins running around NYC with his own army. Most likely he has had to hire a local security company that has NY State licenced armed guards etc.

  53. joyce says:

    For the US government to restructure it in the fantasy scenario that JJ and yo mention, they would have to run a surplus at some point. Any gamblers want to take that action? If they continue to run deficits, they will have to borrow at the new high interest rates in order to extinguish debt. And what if people won’t sell their treasuries at a huge discount to face, what if they hold to maturity?

  54. skittlepoop (44)-

    And, at $800, I will BTFD.

    “We are on a rocket sled back to $800/oz Gold.”

  55. joyce (54)-

    Your introduction of reason to this conversation is most unwelcome.

  56. Phoenix says:

    Little Beijing coming to haughty Princeton. Stir the melting pot some more.

    http://www.nj.com/mercer/index.ssf/2013/02/new_princeton_boarding_school.html#incart_river_default

  57. JJ says:

    To large holes in your theory, first us govt can run printing press and make money second us govt owns 40% of outstanding treasury bonds. so are you saying the us govt wont sell to itself?

    joyce says:
    February 15, 2013 at 1:12 pm

    For the US government to restructure it in the fantasy scenario that JJ and yo mention, they would have to run a surplus at some point. Any gamblers want to take that action? If they continue to run deficits, they will have to borrow at the new high interest rates in order to extinguish debt. And what if people won’t sell their treasuries at a huge discount to face, what if they hold to maturity?

  58. Libtard in Union says:

    Nearly one in five who attend Princeton University are of Asian persuasion. About time they open an eating club that serves Chinese.

  59. Carlito says:

    I am short on gold, so I look forward that slide to $800

    I am taking as many 3% loans as I can (self, kids,etc) so I look forward those Carter inflation days

    Contradictory? nah, the first is short term, the second is for the next 5+ yrs

  60. JJ says:

    seems like a lot of tuition just to learn how to give a rub and a tug

    Libtard in Union says:
    February 15, 2013 at 1:39 pm

    Nearly one in five who attend Princeton University are of Asian persuasion. About time they open an eating club that serves Chinese.

  61. JJ says:

    3% sounds high to me. I know after Sandy SBA was giving loans at 1.9% and to some folks they tried to go as high as 3.5% which is usury.

    I told SBA at 3.5% they are loansharks. I was asked why and I told them when I made loans my loan cost was 2% above my borrowing costs. You have a zero % borrowing cost and FEMA is paying your admin costs so in effect you are marking it up almost double what I did. I said I would take a loan at a max of .09% but anything 1% or greater is loan sharking.

    Carlito says:
    February 15, 2013 at 1:47 pm

    I am short on gold, so I look forward that slide to $800

    I am taking as many 3% loans as I can (self, kids,etc) so I look forward those Carter inflation days

    Contradictory? nah, the first is short term, the second is for the next 5+ yrs

  62. joyce says:

    Glad to know I have “to” problems with my theory. You have two misconceptions of your own. The US Treasury has to borrow all of it’s money into existence. And the FED owns the bonds, not the government. The FED wins lawsuit after lawsuit regarding FOIA requests because they are not part of the govt and therefore not subject to the FOIA. If the US govt ever truly nationalizes the FED, I recommend buying gold, farm land, guns and ammo if you haven’t already.

    The FED only seemingly is assisting in the govt’s profligate ways; every action it takes is to shore up the banks. If it is in the banks best interest to buy or sell bonds, print or quantitatively ease something (gotta love the guy who came up with that jargon) than it will do so. Why is this a surprise? All the Federal Reserve System is is a collection of its regional and member banks.

    JJ says:
    February 15, 2013 at 1:39 pm
    To large holes in your theory, first us govt can run printing press and make money second us govt owns 40% of outstanding treasury bonds. so are you saying the us govt wont sell to itself?

    joyce says:
    February 15, 2013 at 1:12 pm

    For the US government to restructure it in the fantasy scenario that JJ and yo mention, they would have to run a surplus at some point. Any gamblers want to take that action? If they continue to run deficits, they will have to borrow at the new high interest rates in order to extinguish debt. And what if people won’t sell their treasuries at a huge discount to face, what if they hold to maturity?

  63. joyce says:

    When the inflation comes, you better pray incomes and wages inflate along with the cost of living.

    Carlito says:
    February 15, 2013 at 1:47 pm

    I am taking as many 3% loans as I can (self, kids,etc) so I look forward those Carter inflation days

  64. Carlito says:

    Joyce: pro’bly wages will lag inflation. So what, my debt (say, housing) is at 3%…in a few years I’ll pay that note with peanuts….

  65. The really scary thing about jj is that he presents the UST’s willingness to monetize debt as a positive.

  66. It all works. Until it doesn’t.

  67. grim says:

    When the inflation comes, you better pray incomes and wages inflate along with the cost of living.

    Depends, are you rich or poor?

  68. Ragnar says:

    Liberals scoff at pro-capitalists who say that individuals should invest in and work to create their own future wealth as “pulling yourself up by your bootstraps” thinking. Yet they have no problem with standard “pulling the country up by your printing press and debt issuance” theory. Contrary to Krugman, a country cannot borrow and spend itself rich. Production is the only source of future consumption. The US government believes its citizens are its indentured servants, and is borrowing against our lives and future production to spend on whatever it likes.

    Paper and debt isn’t wealth. It’s how the government transfers wealth to the politically powerful without people even realizing it.

  69. Libtard in Union says:

    “When the inflation comes, you better pray incomes and wages inflate along with the cost of living.”

    Has always been a major concern of mine. I’m guessing it will and that we are literally on the edge of a prosperous period. I often use my industry as a gauge of the greater economy and we had a hell of a year last year against some major sector headwinds. Good thing we work in an industry that caters to Wall Street and big business.

    I know Clot and the doomsayers here are hating on my prediction.

  70. Ricky Tickytavvi says:

    Grimbo,

    Why cite Krugman?

    He’s a mouth piece to cover up the foreigners who are destabilizing their own banking systems faster by taking out their currency and buying real assets (e.g., US real estate) faster than our banking system (the Fed Reserve) can transfer the electronic cash (US $ they manufacture via electrons) to the foreign banking systems’ needing loans.

    House of cards shall collapse.

    Ricky T

  71. Ragnar says:

    Libtard,
    I like your prediction. Armageddon is probably another 7-10 years away. The US papered over its problems of 2000-2001, had a 6-7 year boom, had a much bigger reckoning in 2008 as a result, and now is papering over that. Which means that things could be fine for another while.

    Eventually though, houses of cards can get stacked too high. On the other hand, the US has a decent legal system, and lots of companies and people who invent and create lots of useful things that the whole world wants. Corporate America (ex finance)appears a lot more competent than America.

  72. Fast Eddie says:

    When the inflation comes, you better pray incomes and wages inflate along with the cost of living.

    So, what you’re telling me is that $659,000 piece of sh1t house becomes a $729,000 piece of sh1t.

  73. Libtard in Union says:

    Ragnar, I would have to agree. I would say that if the house of cards does topple, our military, as long they don’t go coup d’état on us, might provide us an advantage in the race to the bottom.

    Now trying to win back the favor of the haters.

  74. Ragnar says:

    Did anyone watch that state of the Union?
    I watched it in between breakfast and checking out of my Dubai hotel earlier this week. Nonstop political platitudes, this guy panders to the ignorance and stupidity of Americans like none I’ve seen before. But I can’t blame him. A country gets the government and politicians they deserve, at least in the long run.
    The US deserves Obama like the delusional home seller deserves the RE agent who wins him with an overvalued estimate of its selling price. Americans don’t want to deal with the truth, they want someone who will lie to and flatter them, and string them along until they’re at the end of their financial rope.

  75. Fast Eddie says:

    Where’s Freedy!

    I heard that the spring market is on fire!

  76. Carlito says:

    From economics to “socionomics”/real estate: interesting nuances around Pistorius alleged killing of his girlfriend. Happened in a gated ‘hood where safrans retire from their “other half” to be more “secure” Said weapon was supposedly kept for that purpose. Reminds the statistics of violent death: #1 is passion crime. #2 suicide. #3 (far below) what the NRA sez. Corolarium: be good to your family, be good to yourself

  77. Carlito says:

    #74 Eddie: in the extreme case, you ought to value everything in pounds of beef and boxes of pasta….

  78. Fast Eddie says:

    Carlito,

    In that case, my house is worth approximately 125 head of cattle.

  79. JJ says:

    restaurants wont even tell us how much rat droppings are in the pasta yet you want the Fed to tell you how they make the sauce.

    joyce says:
    February 15, 2013 at 2:00 pm

    Glad to know I have “to” problems with my theory. You have two misconceptions of your own. The US Treasury has to borrow all of it’s money into existence. And the FED owns the bonds, not the government. The FED wins lawsuit after lawsuit regarding FOIA requests because they are not part of the govt and therefore not subject to the FOIA. If the US govt ever truly nationalizes the FED, I recommend buying gold, farm land, guns and ammo if you haven’t already.

  80. lib (71)-

    Everything always seems to be brightening before it fades to total black.

    I’m sure people felt the way you do just before the Middle Ages began.

  81. Carlito (78)-

    And all this time, I thought the corollary was “shoot anything that moves”.

  82. gary (80)-

    Would you sell your daughter for one slightly used cow? :)

  83. Ragnar says:

    Costco just sent me a booklet in the mail with a whole page of promotions for doomsday preppers. Lots of dried food and provisions. New addition was long-lived seeds to grow doomsday crops with. Typical Costco members have well-above average income and education.
    Where is this undercurrent coming from?
    But there will be no Galt’s Gulch in NJ, for sure.

  84. JJ says:

    One “doomsday” prepper in Island Park Long Island was somewhat joking he was always prepared in case of something, he even had a boat on blocks in his yard he figured if he was ever flooded he could just jump into it. Turns out water rose so quick boat came off blocks and ramed right into his picture window wrecking house, wrecking boat and flooding house. Some doomsday plan.

  85. Fast Eddie says:

    Meat [84],

    I’m sure an Amerikan version of a dowry will be standard practice sooner than you think.

  86. Wow, incredible weblog format! How long have you been blogging for? you made running a blog look easy. The whole glance of your site is great, let alone the content material!

  87. joyce says:

    The fact that you’re lack of wit and creativity is continuing to decrease is scary… considering it started at level 0.

    JJ says:
    February 15, 2013 at 3:10 pm
    restaurants wont even tell us how much rat droppings are in the pasta yet you want the Fed to tell you how they make the sauce.

    joyce says:
    February 15, 2013 at 2:00 pm

    Glad to know I have “to” problems with my theory. You have two misconceptions of your own. The US Treasury has to borrow all of it’s money into existence. And the FED owns the bonds, not the government. The FED wins lawsuit after lawsuit regarding FOIA requests because they are not part of the govt and therefore not subject to the FOIA. If the US govt ever truly nationalizes the FED, I recommend buying gold, farm land, guns and ammo if you haven’t already.

  88. Nomad says:

    Ragnar – 70 – and how much production, ie – good manufacturing jobs are being created in this country? The whole sector is so much more efficient that even a mere decade ago. I keep hearing that US innovation will drive manufacturing but no one can answer my question as to how this is so when for the most part, we invent something new China is make it in short order. Can 3D printing really save us?

    Lib – 71 – prosperity – how so. Unemployment remains high, still seeing layoffs, those I know who are getting jobs after not working for a while are seeing pay cuts anywhere from 10% – 30% and is lesser frequency up to 50% less. All those high paying big company jobs that were eliminated are never coming back 1:1 as bigco has become much more efficient.

  89. Juice Box says:

    # 73 – Tard re: “we are literally on the edge of a prosperous period”. I will agree we are on an edge for sure. Since we have had the technical discussions before, I will reiterate where we stand. We are still in a phase of private credit market debt deflation with 16th quarters of declines and we still have a 6% of GDP output gap. The “slow growth” that we have now is still subject to shocks like oil prices (Brent is up to $117) much higher and we will be firmly back into a recession again.

    Let’s look for the “hidden number”
    U3 is currently around 11.2 million
    U6 is currently around 21.1 million
    Those no longer counted? 11.4 million

    The “hidden number” appears if you add U-6 and the discouraged workers that are no longer counted then we are at 32.5 million (best guess) unemployed.

    If you don’t like the 32.5 million number I just tossed out then take a look at the other side of the coin. About 15 million added to the food stamp rolls since the great one took office. Labor force participate rate is 63.6% as of this month.

    We are on the edge of hollowing out the middle class. Needless to say I won’t be waiting much longer to buy into the middle class dream at a low low interest. I have an appointment tomorrow to meet with a FSBO who apparently won’t budge on his price even though the comps show otherwise. I want to see the whites of his eyes when I speak to him to see if there is a crazy person in there I can reason with. Wish me luck….

  90. Nomad says:

    make – making

  91. Here’s a bellwether for better times coming:

    “Wal-Mart shares are plunging as the firm reports a ‘total disaster’ in its February sales.”

    http://www.zerohedge.com/news/2013-02-15/wal-mart-stock-drops-after-it-says-february-sales-total-disaster-worst-montly-start-

  92. gary (87)-

    My daughter won’t go for any less than a cow and a bottle of Hennessy VSOP.

  93. grim says:

    93 – Hold on..

    Walmart = Devil
    Walmart = China
    Walmart = Shit Jobs
    Walmart = Destroy competition
    Walmart Sales Down = Bad

    That last one doesn’t compute

  94. joyce says:

    (95)
    Grim,

    I just think it’s showing the most patronized ‘low-cost’ store is losing revenue because times are that tough [for the poor / lower middle class (majority of people)].

  95. Fast Eddie says:

    Joyce [96],

    Or, does it mean that other stores are squeezing in on Walmart’s turf? I have no idea how other retail stores on that level are doing, just speculating.

  96. joyce says:

    Possible. Either way I think the consumer, which drives our “healthy” economic model, is even more tapped out which leads to retailers with thinner/non-existent margins… which is of course a recipe for success.

    That being said, Eddie, if you’re right and it’s other companies benefiting at Walmart’s expense… not as bad.

  97. Sh1tting skittles says:

    45 cal 1911…nice piece

    Phoenix says:
    February 15, 2013 at 1:48 pm
    The new generation.

    http://www.cnn.com/2013/02/14/justice/washington-school-murder-plot/index.html?hpt=ju_c2

  98. grim says:

    American consumer tapped out?

    You sure about that?

    http://www.shadowstats.com/charts/retail-sales

  99. Libtard in Union says:

    Exactamundo Grim.

    All I know is that I keep getting zero percent credit card offers, my rent role keeps increasing, my investments keep cruising along and I just got a 30K car for 20K. No time to offer you more than anecdotal evidence for now. If I have time, I’ll provide some empirical evidence during tonight’s Flyer Devil game. Now it’s off to 25 burgers for a family dinner with a $13 Groupon.

  100. Ricky Tickytavvi says:

    Grimbo,

    Don’t confuse being tapped out of cash with having a newly extended credit line.
    Those were sales charts, not consumer credit charts.

    You see, Grimbo, the realtor-banker-appraiser scam round N continues. That’s right, PUMP the prices again because every banker knows that the Jones’, especially Mrs. Jones, want that house and everything shiny and new to stuff it with. So, the banks, replenished with no-cost Fed loans (soon to be subsidized by negative interest rate treasuries) either sell their portfolio to renter investors, fixer-flippers, or to Mr. & Mrs. Jones, who will then have no cash left to consume (because the prices got pumped and their cash flow got squeezed) and now borrow via consumer credit card for the fungible wants (or better, they tap the retirement savings accounts and perhaps, the defined benefit plans via loans).

    Thanks for the pump & dump, Grimbo.

    Ricky T

  101. JJ says:

    Joyce I am laughing the consumer is tapped out. It is a bull market.

    I have a relatively new neighbor down the block, husband is a stock broker, she works, both went to college, she commented that nearly whole town is blue collar, most did not go to college, most wifes dont work, yet every house has new cars, going on vacation, going to dinner and spending like crazy.

    The economy is resilient. My whole town took on a massive flood October 28, not even 2-28 and folks have new cars, houses getting fixed, folks going on vacation. We did our three months of savings now lets spend.

    SBA was surprised when they came to my town, no one wanted loans. We wanted grants or we were using our own cash. There is a sea of liquidity out there. Who wants loans, everyone is loaded to gills with cash saving and saving, it felt good for folks in Long Beach to prior open their wallets and spend like 2005/2006. They had some mad stacks of fat cash. I think some was going to raise their houses by just setting them on their wallets.

  102. Anon E. Moose says:

    Did anybody see/hear/feel anything of the bigger asteroid that everybody seemed to be worried about, the one that DIDN’T hit the earth?

  103. Nomad says:

    Lib how did you get a 33% discount on a car?

  104. Grim says:

    103 – So what’s the market play for the situation you outlined. How can I profit on the scenario?

  105. joyce says:

    Good charts. But they are borrowing and spending which ain’t great for the long term. Like I said, I was very open to being wrong about the Walmart story.

    Quick question, and not trying to pick a fight at all, didn’t you mock Shadow Stats a little while ago? I believe it was because someone quoted it for ‘real’ unemployment and price inflation and you said something about why should we believe it when he doesn’t release his methodology.

    grim says:
    February 15, 2013 at 4:03 pm
    American consumer tapped out?

    You sure about that?

    http://www.shadowstats.com/charts/retail-sales

  106. Painhrtz - The Holy Hand Grenade of Antioch says:

    moose only siberia gets hit with meteors and asteroids we on the other hand get dumped on by the Fed

  107. joyce says:

    Where do I begin with our resident retard once again? All we need is a few more massive storms to get people spending. And then when people start to rebuild their savings and spending decreases… how’s that for steady growth?

    JJ says:
    February 15, 2013 at 4:16 pm
    Joyce I am laughing the consumer is tapped out. It is a bull market.

    I have a relatively new neighbor down the block, husband is a stock broker, she works, both went to college, she commented that nearly whole town is blue collar, most did not go to college, most wifes dont work, yet every house has new cars, going on vacation, going to dinner and spending like crazy.

  108. joyce says:

    JJ,
    It’s past 4:30 on a Friday… what are you doing posting on personal time?

  109. Richard says:

    Nice house in Montclair going 45% over the 1988 price http://www.zillow.com/homedetails/215-N-Mountain-Ave-Montclair-NJ-07042/38682266_zpid/. Could it be the $25k taxes?

  110. BearsFan says:

    108 – to be fair, I think grim specifically cited zerohedge and other websites whose “incomes are generated by 50% Gold/Silver ads”. I recall because he was replying to my comment where I said the BLS data was no good.

    It could have been another convo though where Williams’ site was mentioned though, and I am completely off base here Joyce.

  111. JJ says:

    doing my t and e if course

    joyce says:
    February 15, 2013 at 4:44 pm

    JJ,
    It’s past 4:30 on a Friday… what are you doing posting on personal time?

  112. joyce says:

    BearsFan,
    I think it was a while before that.

    JJ,
    What does blog time fall under… career development?

  113. JJ says:

    That is my twitter account. Just making sure now staff does not sneak out.

    joyce says:
    February 15, 2013 at 5:01 pm

    BearsFan,
    I think it was a while before that.

    JJ,
    What does blog time fall under… career development?

  114. Essex says:

    Richard Branson, the head of Virgin Group, is one of the most famous and successful entrepreneurs in the world.
    His portfolio of assets now include everything from media companies and airlines to telecommunications companies and real estate.

    But one of Branson’s smartest early purchases was Necker Island, a 74-acre island in the Caribbean that he visited in the late 1970s and quickly fell in love with.

    Entrepreneur Luke Murray recently recounted how the deal went down on Virgin’s blog.

    When Branson visited Necker at age 28, it was owned by Lord Cobham, who was asking $5 million for the uninhabited property. Branson boldly decided to offer $100,000 and was quickly evicted by the insulted landowner.

    Over the next few months, Branson slowly increased his offer while looking for the necessary funds, according to Murray. It just so happened that Lord Cobham was in need of short term cash, and he finally accepted an offer of $180,000, more than a 96 percent discount off the asking price.

    The purchase did come with some stipulations. The government required any foreigner who purchased the island to build a resort, or the state would reclaim ownership.

    It took Branson five years and $10 million to construct his island haven, but it was a worthwhile investment — despite the fact that part of the resort was destroyed in a fire last year.

    In addition to the enjoyment that guests have had over the years, Branson estimated in 2006 that the island’s value had grown to approximately $60 million, a 33233 percent increase over what he paid for it.

    Unsurprisingly, he called it his “best financial move” in an interview with UK website This is Money.

  115. Melo starting in the All-Star game.

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