From HousingWire:
MBA: Mortgage delinquencies and foreclosures drop in 1Q
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 5.54% of all loans outstanding at the end of the first quarter of 2015.
This was the lowest level since the second quarter of 2007. The delinquency rate decreased 14 basis points from the previous quarter, and 57 basis points from one year ago, according to the Mortgage Bankers Association’s National Delinquency Survey.
The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure.
The percentage of loans in the foreclosure process at the end of the first quarter was 2.22%, down five basis points from the fourth quarter of 2014 and 43 basis points lower than the same quarter one year ago. This was the lowest foreclosure inventory rate since the fourth quarter of 2007.
“The latest decline in the share of households suffering mortgage payment problems provides more evidence that the housing market is slowly normalizing,” said Ed Stansfield, chief property economist for Capital Economics. “To the extent that it encourages lenders to ease credit conditions and make more loans, it’s also positive news for mortgage market activity.”
…
The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 4.24%, a decrease of 28 basis points from the previous quarter, and a decrease of 80 basis points from the first quarter of 2014.“Delinquency rates and the percentage of loans in foreclosure continued to fall in the first quarter and are now at their lowest levels since 2007,” said Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasting. “The job market continues to grow, and this is the most important fundamental improving mortgage performance. Additionally, home prices continued to rise, as did the pace of sales, thus increasing equity levels and enabling struggling borrowers to sell if needed.”
…
At the state level, 27 states saw a decline in foreclosure inventory rates over the quarter. New Jersey, New York, and Florida had the highest percent of loans in foreclosure in the nation in the first quarter. Florida’s foreclosure inventory rate peaked at 14.5% in 2010, and was down to 4.8% in the most recent quarter, helped by rapidly improving local economies and job markets, leading to increased housing demand, strong home price growth, and more opportunities for distressed loans to be resolved.On the other hand, New Jersey’s percentage of loans in foreclosure peaked at 9% in 2013, and even though the rate has decreased in recent quarters to 7.7%, improvement has been slow relative to other states due to New Jersey’s long foreclosure timelines and a less robust housing market. Foreclosure starts increased in 26 states, but this measure has become more volatile with state-level mediation requirements and changing servicing procedures dictating changes from quarter to quarter.
Freakishly accurate.
grim: please comment for accuracy….
http://matadornetwork.com/life/20-signs-definitely-raised-polish-parents/
Good story on “zombie properties” in New York…focuses on the “epicenter” which is Long Island. The problems there are probably similar or the same in NJ.
The foreclosure process takes years, and during that process mortgage holders abandoned the property. Banks still don’t hold the title, so there’s a gap of many years where properties are abandoned, unoccupied and sorely in need of maintenance.
sorry, forgot the link:
http://data.newsday.com/projects/long-island/zombie-houses/
Hey anon:
Ξ BLACK REPUBLICAN Ξ @blackrepublican 14m14 minutes ago
How Bill Clinton’s tough-on-crime politics built world’s largest prison system http://www.salon.com/2015/04/13/the_clinton_dynastys_horrific_legacy_how_tough_on_crime_politics_built_the_worlds_largest_prison/ … #BlackTwitter
Ξ BLACK REPUBLICAN Ξ @blackrepublican 9m9 minutes ago
@blackrepublican ““We need more police, we need more prison sentences.” ~ Hillary Clinton
http://reason.com/blog/2014/12/05/hillary-clinton-response-eric-garner#.doqiqn:g4zH … …
Jobless Claims in U.S. Hover Around Lowest Levels in 15 Years
May 7, 2015, 8:30:01 AM
Fewer Americans than forecast filed applications for unemployment benefits last week, dropping the average over the past month to the lowest in 15 years, indicating companies are holding on to workers.
@chicofinan great article on 20 signs you are raised Polish. I remember when I visited Chicago I visited distant relatives (cousins of my grandmother), they took my entire family in and gave us a feast of a dinner.
[5] D-FENS
Come on, you know that prior inconsistent statements don’t matter if they are to be used against your side.
or as the author herself would have put it “What difference does it make?”
[6] a-none
Congratulations. Your guy finally slowed the bleeding. It only took six years.
That is, if you believe presidents can actually move the needle that much. Personally, I don’t. The best they can do is to stay out of the way as much as possible. I do give Chairman O credit for at least restraining his worse impulses and those of his followers in that regard.
Interesting Fact that is of Interest Only to Me:
For the past several years, I have kept two phone numbers, a 908 area code (NJ) and a 215 area code (PA).
I notice that I get a lot more spam telemarketer and scam calls on the 908 number than on the 215 number. In fact, at least 9 of 10 scam/marketer calls come on my 908 number.
I guess that it’s because NJ is bleeding wealth.
I retract my earlier statement somewhat about presidents having an effect on economic activity. There are sometimes outlier areas where policy can have dramatic effect.
Expat numbers are out for first quarter of 2015. Yet another record.
http://intltax.typepad.com/intltax_blog/number-of-expatriates/
Wow, this sharing economy I was talking about yesterday is all over the place. You can even use this app to enjoy a homecooked meal with a bunch of other strangers.
http://www.eatwith.com/
This economy is about to change drastically. Can you even think of the implications of this. Going to change everything.
“On the new sharing economy- ” This is going to be catastrophic for people who make stuff,” says Munger. “Nobody’s going to buy mixers or power drills. We’ll need far fewer cars….So a lot of people who have made their living manufacturing stuff are going to lose their jobs.”
Of course, many people think we’ve been consuming too much “stuff” anyway, and a world in which people share existing resources instead of buying the next big thing could benefit the planet. “
Yup, heading towards an economy where the poor share everything and the rich own everything.
Pumps, back on January 29 of this year, the Time magazine cover story was about the sharing-economy.
flightcar- rent someone’s car from an airport parking lot while they’re away.
dogvacay- let a dog owner watch Milo for a fraction of a kennel’s price.
monkeyparking- park in someone’s driveway instead of circling the streets for a spot or pay at a lot.
loanables.com- Rent or rent out stuff you need only once in a while- like a power drill or camping gear.
13 people historically are very bad at “Sharing”. The analog for Uber and AirBnB makes it much more palatable, and most people aren’t actually sharing, they are getting their own “Taxi” or renting an apartment that the owner isn’t staying in. There is a very limited market of adults that actually want to share, sharing is for broke millenials.
Thanks…going to look it up.
Jason says:
May 7, 2015 at 10:48 am
Pumps, back on January 29 of this year, the Time magazine cover story was about the sharing-economy.
17 – jcer
People are great at sharing.
It’s just the returning what you “shared” back to its originator (in the same condition) that becomes the problem.
Sharing economy for tools? You need an app for that? We’ve been borrowing tools from neighbors for 100 years.
but there was no money involved with your neighbors.
that’s the fukcing point! everything is now monetized.
truly sad.
grim says:
May 7, 2015 at 11:17 am
Sharing economy for tools? You need an app for that? We’ve been borrowing tools from neighbors for 100 years.
too funny
http://money.cnn.com/2015/05/06/news/companies/mcdonalds-new-hamburglar/
What’s different with grand-rental station or the tool rental department at Home Depot from what Blumpy is talking about?
The AirBNB thing and Uber will be short-lived, just as Craiglist is slowly dying. Homeowners need only here about the destroyed homes a couple of times before AirBNB dies. At one time, Ebay was fantastic. Now it’s hardly different than shopping on Amazon. Everything used is fake bid up to near new prices. Uber is great as long as new drivers are willing to work for peanuts. Wait until a few dads get shot. Craiglist too has become a safety issue.
The sharing economy is much like the coming Ice Age which time magazine gave a cover story to in 1975. After all, the scientists had measured the temperature from the 40s until then had dropped 2.7 degrees.
Let me know when you die of Sars and then I’ll believe in some far fetched theory that people are moving back into the cities or that bike trails will save an impoverished city.
trouble with sharing economy is someone always “jumps the shark”
Libtard, Uber turns into a marketplace for cabs as it get regulated and AirBnb will become like home away, a site to rent a vacation rental. The only real change is a demographic one, the older demographic was very brand centric, so they were reticent to purchase unless it was from a known and respect merchant. The younger generation knows big businesses will probably not treat them well if an issue arises so they are not as wary of smaller vendor and depend on the review system to keep everyone honest. Ebay is full of people paying stupid prices for things, it is great as a seller, not so much for the buyer. I don’t know about the fake biding there is a big market of buyers who want the used junk and bid it up accordingly. I look at it as not the sharing economy but one of more small independent entrepreneurs using the technology of other companies to provide business leads.
New York, NY
When deciding whether to become an Airbnb host, it’s important for you to understand the laws in your city. As a platform and marketplace we do not provide legal advice, but we want to provide some useful links that may help you better understand laws and regulations in New York. This list is not exhaustive, but it should give you a good start in understanding your local laws. If you have questions, contact the Department of Buildings, Department of Finance or other city agencies directly, or consult a local lawyer or tax professional.
Business Licensing. The New York City Administrative Code (ADC) requires certain businesses to obtain a license. You should consult these requirements to determine if your activity must be licensed. For more information, paste the following URL into your browser: https://www1.nyc.gov/nycbusiness/startabusiness/.
Multiple Dwelling Law. The New York State Multiple Dwelling Law restricts renting out a Class A multiple dwelling for periods of fewer than 30 days. The definitions of “Class A” and “multiple dwelling” can be found in Sections 4-7 and 4-8 (Article 1 of “MDW” under “Laws.”). The law exempts rentals to a “boarder, roomer or lodger,” which has been interpreted to mean that, in general, if a guest shares the apartment with a permanent resident who is present for the duration of the rental (i.e., a “shared space” rental), it is permissible under the Multiple Dwelling Law.
New York City Zoning Code. The New York City Zoning Code sets out the city regulations on zoning, which may apply to your listing. Chapter 2 contains definitions of things like “hotels” that could apply to you.
Rent Control. The Administrative Code (ADC) sets out rules for rent stabilized and rent control properties. If you live in a property subject to rent stabilization or rent control, you should review these rules carefully.
Taxes. New York City and New York State impose multiple taxes that may apply to transient occupancy or tourist use, subject to certain exemptions. Examples of taxes that could apply to your listing are State sales and use tax, City hotel room occupancy tax, and State and City nightly room fees. Additional information about hotel sales taxes is available here. Additional information about NYC hotel occupancy taxes is available here. (The word “hotel” has a broad definition that could apply to you.)
Other Rules. It’s also important to understand and abide by other contracts or rules that bind you, such as leases, condo board or co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable.
We’re committed to working with local officials to help them understand how Airbnb benefits our community. Where needed, we will continue to advocate for changes that will allow regular people to rent out their own homes.
Last updated: April 30, 2015
16 every single one of those besides monkeypark, is a bad idea fraught with risks.
1. Why would I ever let a stranger touch a piece of machinery I own that is worth 20k or more where my insurance likely denies all claims? I can’t imagine there are people lining up to rent their cars and for that matter when I rent a car I don’t want to be stranded in a bad car.
2. Trust my dog to some stranger? Again how can I trust this?
3.Ok park in someone’s driveway…no biggie
4. Why would I trust someone with my stuff? Why would someone trust my stuff? How does enough money change hands to make this work?
I get you jcer, but really, the services have always been there. They might be unique when they first come out, but ultimately, what ever they are selling has always been available. The only thing that is different really is the method to order the service. This is hardly a sharing economy. So the cab driver has temporarily been replaced by the person next door. But eventually, that person next door is going to morph into a cab driver. I’m just not seeing how it’s THAT different besides the interactivity that the internet replaces what was formerly done through your voice on a telephone.
“2. Trust my dog to some stranger? Again how can I trust this?”
Recently read a story where a dog sitter’s house went up on flames and 20 pooches burned to death. Makes you think twice about it. And as for insurance against it? Believe me, no dog sitter is insured for it.
@Ed_Miliband:
We have a few hours left to change the direction of our country. Thank you to every supporter out there making the case for Labour today.
Hey A-none,
How many copies of Silkwood do you own?
29 – Pet Liability
I may be mistaken but I am pretty sure in NK, I mean the Peoples State of NJ, you are only liable up the direct cost of replacement of the animal as they are considered “property”.
Legal advice would most likely exceed any distribution, unless you take them to court yourself and have the judge award you 500 dollars for your pets 10 years of loyalty.
It’s a lot cheaper, just like ubur is much cheaper than a taxi.
Libturd in Union says:
May 7, 2015 at 12:27 pm
What’s different with grand-rental station or the tool rental department at Home Depot from what Blumpy is talking about?
” just like ubur is much cheaper than a taxi. ”
Only for now. Wait until the Uber union is formed!
Remember, this sharing economy is for the bottom half of society. The people that are getting left behind in this economy. Yes, you are much better off owning, but that is for the top half of the population who have jobs and money.
You guys might be right, regulation might take these services from the wild west back to what they always were. You can bet your ass that there are an army of lobbyists lobbying for regulation as we speak.
End the lobbyist model and this country would absolutely explode economically. Will never happen. Not when you have idiots like Anone who see nothing wrong with it. Send in your campaign dollars now. There’s an election coming up. Oh wait, money is bad. WTF?
You might be right, greed will surely take over. Lure you in with “cheap”, take out the other businesses, then become exactly like the business you took out except charge you even more. This is why capitalism always starts out as an almost perfect system, but in the latter stages of its growth, it falls apart due to greed.
Libturd in Union says:
May 7, 2015 at 2:00 pm
” just like ubur is much cheaper than a taxi. ”
Only for now. Wait until the Uber union is formed!
For Joyce. You probably know about this, but if not, thought it would be worth sharing with you.
http://abcnews.go.com/blogs/headlines/2014/05/baby-in-coma-after-police-grenade-dropped-in-crib-during-drug-raid/
Burn bitch! Fatman finally helps out jersey. Guess the payout wasn’t enough for him to sign.
http://www.nj.com/politics/index.ssf/2015/05/christie_burns_bill_to_require_all_new_homes_have.html#incart_river
My main concern with the sharing economy is eventually discrimination lawsuits will shut them down.
Marriott, Hertz, NYC Cab, Parking Lots, Tool Rental Companies cannot discriminate but on a regular basis individuals do. For now it is under radar.
Take your little beach house, little pink bedroom for daughter, little blue bedroom for wife and your master bedroom and you throw it up on airbnb or VRBO what happens when gay pride week is nearby, A few rappers with gold teeth want place, redneck with a pickup truck and stripper girlfriend wants place. Legally you cant say I am only renting to hetrosexual white married couples over age of 35 with three kids or less with white collar jobs from good towns. Eventually, you will have an issue and either be forced to rent it to someone who you know will be a nightmare or cease operations.
Same with letting someone park in my driveway, same with lending a tool and the same with an ubercar, cant pick neighborhoods and who you want to deal with.
I am pulling my on-line ads for my place. Last summer I turned down 90% of folks as I knew it would cause grief with town, condo association, or wife or wreck the place. Not worth the headache. I actually had a great first year but in year two I started getting tons of requests for weekends, a single night, tourists from out of state or country and it is going to be trouble.
Already picturing Y”ALL going to let me on beach or some homie with a gun.
Then again my wife has issues as my winter tennant covers 100% of costs so summer is gravy and she is not in mood to be dealing with a ruined place, lawsuits and mad neighbors.
My wife is already winding down the sharing economy.
Goooooooo Christie!
Christie torches bill to require all new homes have sprinklers
Gov. Chris Christie on Thursday rejected a bill that would require all new single and two-family homes in New Jersey to be equipped with sprinkler systems.
Christie conditionally vetoed the bill (A1698), taking out its most substantial provisions and instead recommending that the state Department of Community Affairs study whether it should require sprinklers for only new townhouses.
“Mandating sprinkler installation would increase the upfront cost of every new freestanding home by thousands of dollars, even as this state’s citizens continue the struggle to rebuild their lives after Superstorm Sandy,” Christie wrote in his veto message. “That storm left unprecedented damage across the state in its wake, leaving whole communities devastated and entire houses demolished. This bill would further burden New Jerseyans rebuilding their homes after Superstorm Sandy.”
Added Christie: “With all construction, the law must reach the right balance between safety and cost, and I am concerned about any bill that would jettison traditional considerations in place of an unyielding mandate.”
But Christie said that it can be more affordable to install sprinkler systems in townhouses and that, since they’re attached, there’s more risk of a fire spreading from one house to another.
“If, after comparing the marginal cost of such devices with their marginal benefits, DCA determines that sprinklers in such structures are warranted, then DCA should amend the Uniform Construction Code as it deems appropriate,” Christie wrote.
This is the second time Christie has vetoed the bill. In January 2014, at the end of he last legislative session, he let a previous version lapse without taking action.
Common sense prevails.
What about the children? Sprinklers protect Children!
There will be another civil war before the sharing economy takes hold. Nothing p*sses another human being off more than taking a downgrade in lifestyle. Sharing tools with a stranger? Within 6 mos. the first death by drill bit will happen. Communes did not work in 60s and 70s basically bc trust, patience, forgiveness and steady work ethic are hard to sustain for unrelated groups of people over time. Clan mentality still reigns supreme. People generally have incentive to look out for their and their family’s interest while tolerating others for as long as bread and circus continues.
The children will just need to learn to wake up and leave the home when the alarm goes off. No snooze button for this one. Wait a minute sprinklers might actually help me get the kids in the car on school days. Now where did I put those matches?
Sprinklers do not protect children.
I remember fairly vividly, as a kid, we were playing in the back yard in the sprinker. It was one of those old fashioned ones, metal, with a spike in the bottom to hold it in the lawn. Well, someone tripped on the hose, pulled the spike out, next thing we knew that thing was flailing around like a scorpion’s tail. Bastard got me right in the head, took me right out. The water made the bloodbath even more impressive. I think my mother fainted.
44, exactly unless you’re some kind of unemployed hippy you aren’t going to want to share. Uber is great because I can hail a cab almost anywhere, it’s relatively cheap, and instantly boosts both the number and quality of cabs in a lot of places. Have you seen what a Hoboken or Jersey City cab looks like, trust me some guys late model Toyota is much better and as an added bonus in those markets even with the low rates I think the volume of short rides makes it better for the drivers(Uber works in NYC where the drivers are cabs and the rate is the same as a cab). I don’t want to stay in someone else’s home, hell I don’t want to stay at my parents home let alone some strangers place. I don’t want to rely on some else’s car at the airport who may or may not have done maintenance. Just the amount of drunk drivers Uber has taken off the road is an extremely positive argument in their favor.
The major challenge that I see, is that most of the successful new startups in this category skirt the line between white and black market, they launch with the claim that the end user is responsible for acting in a specific way or meeting local regulation. It’s not until critical mass is reached, because they don’t, that the real conversation happens. Really, most of their success is because they are providing a service that skirts the law or operates in the gray/black area.
I can tell you that personally, we were inking a contract with one of these companies, and their legal had issue with our contractual provisions that stated that they must comply with the law in the regions they operate, with regard to the services that we provide. That’s paraphrased, but it’s simple. If we work for you, the work you ask us to do needs to be legal and meet all regulatory requirements in the place that it’s done.
Their lawyers redlined that.
Just like that, nope, won’t agree to that. Just like they ask their provider customers to skirt the law, here they were asking us to be also complicit in skirting the law. This is no accident.
Uber and Airbnb are interesting ones, but so are the others like Taskrabbit, where you can hire an unlicensed worker, contractor, or otherwise.
Not to mention all the other things like Etsy – where you can run business selling handmade things and pay no taxes.
Not sure why Silk Road got shut down, all they were doing were allowing drug sellers and buyers to meet, they weren’t selling drugs.
All these companies are more than happy to be the toll taker in the transaction, and outlay pretty much nothing else. What better business to be in?
Just look at Taskrabbit – initially they took payment from the buyer, and paid it to the worker. When questions arose about whether someone should be paying employment taxes here, they said, “nope, not us”, and changed their model where the buyer pays the worker directly, and then Taskrabbit bills the worker for the service (to the tune of 20%). Problem solved! All that pesky tax nonsense, that’s up to you all to comply with.
Like I said:
Each User assumes all liability for proper classification of such User’s workers as independent contractors or employees based on applicable legal guidelines.
Users do not have authority to enter into written or oral — whether implied or express — contracts on behalf of Company. Each User acknowledges that Company does not, in any way, supervise, direct, or control a Tasker’s work or Tasks performed in any manner. Company does not set a Tasker’s work hours or location of work. Company will not provide any equipment, labor or materials needed for a particular Task.
The Service is not an employment service and Company does not serve as an employer of any User. As such, Company will not be liable for any tax or withholding, including but not limited to unemployment insurance, employer’s liability, social security or payroll withholding tax in connection with your use of Users’ services.
You agree to indemnify, hold harmless and defend Company from any and all claims that a Tasker was misclassified as an independent contractor, any liabilities arising from a determination by a court, arbitrator, government agency or other body that a Tasker was misclassified as an employee (including, but not limited to, taxes, penalties, interest and attorney’s fees), any claim that Company was an employer or joint employer of a Tasker, as well as claims under any employment-related laws, such as those relating to employment termination, employment discrimination, harassment or retaliation, as well as any claims for overtime pay, sick leave, holiday or vacation pay, retirement benefits, worker’s compensation benefits, unemployment benefits, or any other employee benefits.
@ivaningc:
#Ballghazi definitely sounds better than #DeflateGate
I’m not just directing this to you, but to the board. A lot of you will never want to use any of these services or participate in the sharing-economy, why? None of you fall below the 50% mark in the income percentages. Meaning, none of us are poor, we will own everything as opposed to using these services. These are for the have nots. I make more on my investments alone than these have nots make in a year working.
jcer says:
May 7, 2015 at 4:27 pm
44, exactly unless you’re some kind of unemployed hippy you aren’t going to want to share. Uber is great because I can hail a cab almost anywhere, it’s relatively cheap, and instantly boosts both the number and quality of cabs in a lot of places. Have you seen what a Hoboken or Jersey City cab looks like, trust me some guys late model Toyota is much better and as an added bonus in those markets even with the low rates I think the volume of short rides makes it better for the drivers(Uber works in NYC where the drivers are cabs and the rate is the same as a cab). I don’t want to stay in someone else’s home, hell I don’t want to stay at my parents home let alone some strangers place. I don’t want to rely on some else’s car at the airport who may or may not have done maintenance. Just the amount of drunk drivers Uber has taken off the road is an extremely positive argument in their favor.
Re: sprinklers
Correct outcome, but don’t get too excited about congratulations and doing the right thing.
He had to. If not, he does not have a chance at surviving IA and NH. Can you try to imagine him explaining this nanny state measure to a roomful of IA farmers and NH libertarians? Rest of the field would tear him apart. He wouldn’t clear 5% in either primary.
Separately, if DCA comes back with a townhouse rule they just put a rental premium on grandfathered units. Not necessarily in price, but in desirability/rentability of higher end units.
Sprinklers are fugly. Plus, if tenants have kids they are usually younger. Young kids kick balls, throw things while playing. Huge risk of accidental discharge risk on your stuff.
Grim 48/49.
Modern day equivalent of the sweatshop or 12 hour day in the coal mine.
There is always someone willing to assume the highest level of risk associated with an activity. It is usually those at the lowest rung of the ladder for whom the cost/benefit analysis works, ie. whatever level of compensation offered is worth the possible adverse outcome because the compensation is so badly needed.
Neither you nor I would directly assume that risk, too much to lose. Just keep jamming it down the socioeconomic ladder until it crosses the supply/demand curve.
Black lung, Triangle shirt factory to today. Song remains the same.
Thankfully Chubby made the right decision. As Grim mentioned: It would have just been a matter of time until existing units would had to have them installed as well.
Imagine a three unit apartment building with no attic? I was thinking about buying one…
On the other hand maybe there would have been grants like the underground oil tank stuff. I know a couple of plumbers and…
Eh, it’s easier the way things are now. Imagine the paperwork and bribes! Whew!
Kris Krispy for Pres. Hey, the devil you know is better than those that you don’t.
I can’t be too specific because it is ongoing but there are about $1m of fines pending in a jurisdiction against some recent immigrant laborer for violating certain environmental regulations.
The business for whom he was working had him set up as an IC. Guy probably did not even know what papers he was signing, just needed the work. He was, unfortunately, ‘licensed’ in his area of ‘expertise’. Isn’t everyone these days? The State required ‘license’ like so many others was no more than a fee establish by the State to collect more revenue from this business activity. There were no training requirements.
The combination of his individual licensure and IC made him liable.
He inadvertently swapped out canister ‘A’ for canister ‘B’ on one project. Nothing lethal, just prohibited and environmental in a State very sensitive to such. He had the misfortune to do it in a mutlifamily dwelling. $10,000 fine per ‘home’ times 100+ households. Ooops.
Guy barely clears WalMart comp. He has been offered a payment plan on the $1m fine spanning five years, lol. No joke.
Just keeping pushing the risk and costs down the ladder, until it doesn’t matter anymore. This guy has as much probability of paying $20k over five years as he does of coming up with a million.
I can tell you another story about how a certain hedgie made literally hundreds of millions off a similar model in the healthcare industry. Another story, another time.
Ah, the Radon thing. My now deceased FIN was into that for a few years. Saved me a bundle (by showing me how the con worked). Huh, almost forgot about that. Neighbor (back then) had to put in a whole system…for nothing!
Close on the radon. This guy was proactively using low level chemicals and just kept filling out of the wrong container.
Killer is there was no intent. Guy could barely read English. There was also no harm, but clearly a violation.
The point is to grim’s IC model above. Similarly the company this guy worked for was able to set up a structure whereby they pushed the risks and costs down to this individual who did not care/know that he was taking on such thus insulating themselves.
Grim’s contract in 49 reads like a direct lift of the checklist used to determine IC status for taxes. Something bad happens by this nonemployee employee the company is already establishing the record.
56 – Radon? Nah, gotta be pesticides.
I specifically like this line:
You agree to indemnify, hold harmless and defend Company from any and all claims
Not only must you defend yourself, but you must also pay to defend them! Talk about shifting the liability.
54 NJT
Rather than CC for president let’s just keep electing Republican governors with an eye to the White House.
We will get the best of all worlds.
We can keep all the benefits of living here, including the standard of living and generally liberal social policies, while reining in the worse regulatory and economic tendencies of the State if said governor actually wants to be a serious Republican Presidential candidate.
Basically, we can import the economic and libertarian philosophies of IA and NH without actually having to move there, LOL. Absent ethanol of course.
59.
For anyone in business for themselves this is a huge clause. Started incorporating it myself into customer contracts a few years ago. No one ever pays for your defense, it just assures you never get nuisance sued.
I’ll get a letter from some ambulance chaser or BIL ‘representing’ someone with a gripe. MO is to not respond in writing but have a four way. Bring my guy, on retainer. Listen intently. Silence from our side. At end of meeting my lawyer says “we will get back to you” and I slide a bill for $2k across the table. Customer is WTF, we point them to the appropriate clause whereby they pay for our defense. Ask them how they want to pay for this and future work.
Never hear from them again.
Bingo!! Any time something is extremely cheap, it comes down to one thing. You are doing nothing more than taking advantage of some human being that is low on the socio economic ladder.
They are desperate, and by going the cheap route, you are taking advantage of their desperation. That’s why I believe this sharing economy is for real with the bottom 50% of the population. It’s a self-fulfilling prophecy.
People start surviving by working for these services and before you know it, the only things they can afford are from these type of services. Can’t stress it enough, you don’t want cheap and you don’t want expensive in an economy, both destroy an economy in their own way. Expensive wages price people out of jobs and low wages leave consumers with the inability to participate in the economy leading to stagnant or non-existent growth. Both leave you with the same result, a broken economy.
leftwing says:
May 7, 2015 at 7:58 pm
Grim 48/49.
Modern day equivalent of the sweatshop or 12 hour day in the coal mine.
There is always someone willing to assume the highest level of risk associated with an activity. It is usually those at the lowest rung of the ladder for whom the cost/benefit analysis works, ie. whatever level of compensation offered is worth the possible adverse outcome because the compensation is so badly needed.
Neither you nor I would directly assume that risk, too much to lose. Just keep jamming it down the socioeconomic ladder until it crosses the supply/demand curve.
Black lung, Triangle shirt factory to today. Song remains the same.
Great post. You are on a roll here. Every single one of your posts to close the day have been informative and a pleasure to read. Thanks.
leftwing says:
May 7, 2015 at 8:17 pm
I can’t be too specific because it is ongoing but there are about $1m of fines pending in a jurisdiction against some recent immigrant laborer for violating certain environmental regulations.
The business for whom he was working had him set up as an IC. Guy probably did not even know what papers he was signing, just needed the work. He was, unfortunately, ‘licensed’ in his area of ‘expertise’. Isn’t everyone these days? The State required ‘license’ like so many others was no more than a fee establish by the State to collect more revenue from this business activity. There were no training requirements.
The combination of his individual licensure and IC made him liable.
He inadvertently swapped out canister ‘A’ for canister ‘B’ on one project. Nothing lethal, just prohibited and environmental in a State very sensitive to such. He had the misfortune to do it in a mutlifamily dwelling. $10,000 fine per ‘home’ times 100+ households. Ooops.
Guy barely clears WalMart comp. He has been offered a payment plan on the $1m fine spanning five years, lol. No joke.
Just keeping pushing the risk and costs down the ladder, until it doesn’t matter anymore. This guy has as much probability of paying $20k over five years as he does of coming up with a million.
I can tell you another story about how a certain hedgie made literally hundreds of millions off a similar model in the healthcare industry. Another story, another time.
Never dealt with radon. It’s all bs?
NJT says:
May 7, 2015 at 8:24 pm
Ah, the Radon thing. My now deceased FIN was into that for a few years. Saved me a bundle (by showing me how the con worked). Huh, almost forgot about that. Neighbor (back then) had to put in a whole system…for nothing!
Very good point. Makes sense.
leftwing says:
May 7, 2015 at 8:47 pm
54 NJT
Rather than CC for president let’s just keep electing Republican governors with an eye to the White House.
We will get the best of all worlds.
We can keep all the benefits of living here, including the standard of living and generally liberal social policies, while reining in the worse regulatory and economic tendencies of the State if said governor actually wants to be a serious Republican Presidential candidate.
Basically, we can import the economic and libertarian philosophies of IA and NH without actually having to move there, LOL. Absent ethanol of course.
smart move
leftwing says:
May 7, 2015 at 8:54 pm
59.
For anyone in business for themselves this is a huge clause. Started incorporating it myself into customer contracts a few years ago. No one ever pays for your defense, it just assures you never get nuisance sued.
I’ll get a letter from some ambulance chaser or BIL ‘representing’ someone with a gripe. MO is to not respond in writing but have a four way. Bring my guy, on retainer. Listen intently. Silence from our side. At end of meeting my lawyer says “we will get back to you” and I slide a bill for $2k across the table. Customer is WTF, we point them to the appropriate clause whereby they pay for our defense. Ask them how they want to pay for this and future work.
Never hear from them again.
I hate politics. Can’t we just get the job done and go home? No, of course not.
Going trout fishing next week. So looking forward to it.