Don’t you worry about those unintended consequences

From NJ Spotlight:

REPORT: FORECLOSURES, EMPTY HOMES STILL DRAGGING DOWN NEWARK’S ECONOMY

Baraka’s response – a plan for eminent-domain acquisition of inflated mortgages in two ‘model neighborhoods’ – may be needed citywide.

A new report finds foreclosures and housing vacancies continue to destabilize Newark, and the problems extend well beyond the two small “model neighborhoods” targeted for help by Mayor Ras Baraka.

“This is a problem that kind of spreads out throughout the city,” said Christopher Niedt, an associate professor of sociology at Hofstra University and a co-author of the study, “Our Homes, Our Newark: Foreclosures, Toxic Mortgages and Blight in the City of Newark.”

Without a more comprehensive approach, “We’re still going to see people pushed out of their homes,” Niedt said. That is particularly true for those whose mortgages were packaged into securities sold to investors, a common practice before the Great Recession, he said.

Baraka promised action later this year on a redevelopment plan intended to eliminate blight such as vacant homes. The mayor said it would include a controversial tool, eminent domain, as necessary to bring mortgage payments into line with the housing market.

“We are going to go after some of these distorted mortgages” that have left borrowers paying more than their properties are worth, Baraka told a forum organized by New Jersey Communities United.

The power of eminent domain allows governments to acquire property for public purposes such as roads or schools, even from unwilling sellers. But it frequently has been used to promote private interests, such as shopping centers and casinos.

Baraka acknowledged the tactic raises alarms in many minority communities, which often have been victimized by eminent-domain projects benefitting outside interests. But he said Newark would use it to acquire inflated mortgages, an action which has been discussed in communities across the country but never tried.

“We should be able to use eminent domain to keep people in their homes,” Baraka said.

The city “has the right and the responsibility to use eminent domain to seize” unrealistic mortgages that have been chopped up and repackaged as private securities, said Trino Scordo, executive director of NJCU.

Baraka’s remarks are “a pretty big deal,” said Udi Ofer, executive director of the New Jersey chapter of the American Civil Liberties Union. Previous studies also have documented the prevalence of “predatory” mortgage loans, at inflated interest rates or unrealistic payment terms, in Newark and other New Jersey communities, Ofer said.

“These are really, really, really bad loans,” contributing to continued high foreclosure rates in New Jersey after problems have diminished in most of the country, he added.

The gap can be significant, Meyer said. For 125 Newark mortgages purchased by NJCC, “the average amount of the loan was $325,000, but the average value of the property was $175,000,” he said.

Moreover, while banks often refuse mortgage modifications to individual borrowers, “they have no problem selling a mortgage at a discount to large private equity firms,” he said.

“We are going to be involved in that struggle” on behalf of residents, Baraka said. But he cautioned that progress “is going to take some time.”

This entry was posted in Foreclosures, Housing Recovery, Mortgages, New Jersey Real Estate, Politics, Risky Lending. Bookmark the permalink.

145 Responses to Don’t you worry about those unintended consequences

  1. grim says:

    Puerto Rico defaults? No last minute savior?

  2. anon (the good one) says:

    Puerto Rico is not a bank run by fat cats, why would we bail it out?

    grim says:
    August 3, 2015 at 7:00 am
    Puerto Rico defaults? No last minute savior?

  3. anon (the good one) says:

    @profwolff: #PuertoRico crisis…#banks+PR politicos profit from loans as corps+rich avoid taxes…now want people to pay debts.

    For some U.S. progressives, including presidential candidate Bernie Sanders (I-VT), this is a “moral outrage.”

    “At a time when 56 percent of children in Puerto Rico are living in poverty, the last thing that Puerto Rico needs is more austerity,” he said in a recent statement. “The people in Puerto Rico should not be forced to suffer so that a handful of billionaires can make even more money.”

  4. JJ says:

    PR is defaulting on non-GO bonds that are also not tied to any Revenue like Cofina or Tolls.

    It is a minor bond issue that in indenture clearly stated PR does not back them like a GO.

    PR is using this small bond issue as a litmus test, a shot across the bow to show bondholders they mean business if they don’t voluntarily take haircuts

    Trouble is folks who are hedge funds who own GO bonds refuse to budge and folks who own the electric company bonds for instance would rather get paid whole or let them declare bankruptcy, sieze electric plants, modernize them and streamline them like only a PE shop can do and IPO them out in next bull market.

    To really fix problem, Washington needs to kick in some cash, PR to kick in cash, Govt workers, taxpayers of PR needs to take concessions and then bondholders will take haircuts.

    No bondholder wants a haircut without shared pain cause they will keep running up debt and want a haircut on a haircut.

    I for one dont think they need any principal reductions. If they could just today double the maturity on every outstanding bond and cut coupon in half combined with cost cutting they would be up and running in a few years and the bonds would turn all A rated.

    PR needs to get its house Spic and Span before they ask for haircuts

  5. grim says:

    3 – So are you advocating that PR default on the $30 billion of PR bonds owned by PR residents? This may destroy the retirement of tens of thousands of PR residents. Surely, they have an obligation, don’t you think?

    Likewise, I believe the estimate is approximately 70% of US-based bond funds contain some portion of PR debt. That means any kind of haircut to PR bonds impacts US retirees as well. So not only does a haircut impact PR widows and children, but US contiguous as well.

  6. Banco Popular Trust Preferred Shares says:

    stop with the slurs you scumbag……

    JJ says:
    August 3, 2015 at 8:31 am
    PR needs to get its house Spic and Span before they ask for haircuts

  7. Libturd in Union says:

    What’s a Span? Half Hispanic/half Japanese?

    I’ll take some ropas viejas and a bubble tea please.

  8. Interesting. If it is truly empty homes and foreclosures that are dragging down Newark’s economy, those homes must have been empty for about 55 years.

  9. I miss Puerto Rican jokes. Remember the good old days when someone would wear striped pants and a polka dot shirt and you would ask them if they were going to a Puerto Rican parade?

  10. [9] As soon as we all started saying “Hispanic”, all the fun went away.

  11. grim says:

    Last time I was in PR, I got into a long discussion with a local involved in the construction business who said most of the public-funded projects were wildly corrupt, especially the private projects funded with local grants/subsidies. Huge sums of money would go missing, unaccounted. When I mentioned NJ he made a joke about PR being more corrupt than NJ when it was at it’s worst. Told me stories about plenty of sham buildings, look complete and beautiful from the exterior, but absolutely nothing on the interior. Multistory buildings with only the lobby and a floor or two complete. Millions of dollars in missing materials, either stolen or never purchased at all. No show jobs a mile long. Politicians knowing full well this was all going on, getting kickbacks for awarding contracts.

  12. If PR gets bailed out, Illinois, California, and New Jersey will all be elbowing each other to be next in line.

  13. FKA 2010 Buyer says:

    RANKED: The economies of all 50 US states and DC from worst to best

    44. New Jersey
    36. Pennsylvania
    32. Connecticut
    26. North Carolina
    9. New York
    4. Texas

    http://www.businessinsider.com/state-economy-ranking-july-2015-2015-7

  14. grim – Q1. When which was at it’s worst? Q2. Is it implied that either have gotten better?

    When I mentioned NJ he made a joke about PR being more corrupt than NJ when it was at it’s worst.

  15. Ben says:

    What’s a Span? Half Hispanic/half Japanese?

    That would be Japanic

  16. [13] As soon as the edumacation bubble pops, MA will jump from the top right to the bottom of that list. The Western 2/3 of the state are already there.

    RANKED: The economies of all 50 US states and DC from worst to best

  17. Interesting that the 3 top economies are:

    1. North Dakota – fracking.
    2. Colorado – legalized drugs.
    3. Washington DC – where Wall Street sends its protection payments.

  18. I wonder if anyone here besides clot, nom, and myself ever saw/remember Bob Nelson.

  19. homeboken says:

    The below can’t be true – Outside of a handful of small companies, NC is all tobacco fields. Pumpkin told me so.

    26. North Carolina
    North Carolina is home to 27 Fortune 1000 companies, including Duke Energy, Lowe’s, and Bank of America.

    Job growth was healthy in the state, with a 2.4% increase in nonfarm payrolls between June 2014 and June 2015, slightly higher than the 2.1% national growth rate. The state’s 2014 GDP per capita of $48,585 was a bit below the national level of $54,307.

  20. Libturd in Union says:

    Check out the New Crock Times article on the moron in Seattle who left economics out of his equation when deciding to pay his janitor $70K per year.

    A Company Copes With Backlash Against the Raise That Roared

    http://tinyurl.com/pumpkins-nemesis

    Of course the Times take is that the talent (worthy of a higher salary IMO) that left was greedy and selfish as was the CEO’s business partner who is suing the pants of the company. Of course, you learn of the wonderfully pious background of the CEO and how cool he is. After all, he’s a hipster (with beard and all) and he surfs. The Times also explains how the plan would work if only the CEO had more time to collect from his new clients. They also blame the distraction of the press for the potential downfall. Never is the CEO at fault for being a moron and not knowing how to successfully run a business.

    I see this time and time again from progressives. As they are acting on their utopian ideals it all seems wonderful. There is never any follow-up though. When someone questions the economics of their careless decisions, they are told, “Get with times.” Or, “It’s the way things are going, I know better.”

    The same thing is occurring in Montclair. All of the wonderful low income housing (and now worker housing too…look it up) is supposed to make Montclair more affordable. Instead, our taxes keep going up to pay for these wonderful idealistic programs. Meanwhile, the lower-income residents are being taxed out of the town. The black population is down like 20% in the last 10 years alone. But it sure sounds nice, doesn’t it?

  21. Libturd in Union says:

    Bob Nelson – Shouldermapads?

  22. Libturd in Union says:

    Also, the operating budget of Montclair’s library is around 4 million a year. At least it was in 2009. An average family of four in Montclair pays $432 per year for the privilege of borrowing books. I would think most families would prefer an annual shopping spree at Barnes & Noble where one gets to keep the items they are paying for. But what do I know. I’m not a progressive. Nor am I intelligent.

  23. JJ says:

    I heard they they pulled KY Jelly from the shelves of PR as no need to lube these folks up. They come pre-oiled

  24. NJT says:

    Rented a motocycle while on R&R in PR back in 1990(?). Gas guage didn’t work and ran out. Walked up to a house and asked how far the nearest station was. “many miles” the guy told me. He wanted $5 for about a 1/2 gallon out of a rusty can hr kept out back. Figured it was better than pushing the bike for miles in the hot sun. Gas station was right over the hill.

  25. FKA 2010 Buyer says:

    Is this a bet that an eminent domain case will go through the court system faster than the foreclosure process? This is my favorite one. What could go wrong in Newark?

    7 Maddening Examples of Eminent Domain

    7. ONLY A ONE-CAR GARAGE?

    When Lakewood, Ohio discovered their waterfront properties were appealing to condominium developers, they began to plot the exodus of hundreds of residents out of the area. But with occupants resisting, the city had to come up with a way to classify their area as “blighted,” or run down. Because the homes and apartments were well-maintained, Lakewood opted for higher standards: homes were earmarked for seizure because “blighted” was defined to mean anything less than a two-car garage, three bedrooms, and central air conditioning. The entire plan was distasteful enough that, according to a 2003 CBS News report, citizens eventually voted the acting mayor out of office.

    http://mentalfloss.com/article/63514/7-maddening-examples-eminent-domain

  26. grim says:

    19 – With corporations able to move across the country on a whim these days, what’s your thought on evaluation of economic potential of an area that doesn’t include current employers, but a propensity for job creation? BoA could move in a heartbeat, so could Lowes. It would behoove most corporations to play the US like a Twister board to take advantage of whatever local tax bargain is made available. At what point is no area safe anymore? If a company moves from X to Y, they’ll probably move to Z just as quickly. It would seem the only safe jobs are the jobs with some sort of inseparable proximal component.

  27. Anon E. Moose says:

    Grim [11];

    Funny story about corruption in construction. Seems when the HSBC Center was being built for the Buffalo Sabers, the plans called for a level of 40 luxury suites, each 20 feet wide. In an open space of 20′, who’s going to notice 6″ less? When you build 40 suites, each 19′-6″ wide, you end up with an extra 20′; i.e., an extra luxury suite. Who really counts the suites — particularly if there are at least enough to keep the box office happy? Who’s going to notice an unmarked door at the end of the suite level corridor? It could be a janitor’s closet for all anyone cares. Seems the GC, a season ticket holder, built himself a luxury box that only he knew about and only he had the key to.

  28. Essex says:

    17. Anyone see a “megatrend”….?

  29. [21] Lib – yep. I saw him at that comedy club that (used?) to be below Eagle Rock reservation back about a lifetime ago. I think the first time I hit 50mph on a bicycle was down that road (My wife and I on a tandem. She was not pleased).

    Bob Nelson – Shouldermapads?

  30. homeboken says:

    Grim 19 – Pretty much any CO. that employs 500 or more does have a built in “inseparable proximal component” as you phrase it.

    IMO – A corporate HQ for example will desire to be within (ie less than 1 hr, ideally < 30 mins) to an international airport. There will be some that do not desire that but likely the exception case.

    They should also desire an in-place commuter network. Access to the interstate is best, existence of and proximity to a reliable public transport system as a secondary benefit.
    Third – they should seek a balance of available and sufficiently employable existing population as well as desirable schools and community to entice employees they wish to keep motivation to relocate.

    But I get your point – The CO. is lured by the state/muni with extremly favorable tax incentives. This is no different than all the other free market discussions we've been having on this board. If state X can out-price state Y, and CO. sees a positive result in the cost/benefit anlaysis, then CO. moves to state X.

    This should end up reducing the total cost of doing business to the proper market level.

    Add the bias/incentive of the actual decision makers of where CO HQ is located and rational analysis can go right out the window. But states reducing the fixed and non-controllable cost component that is real estate tax, should be a net benefit to the private market at the expense of the public market.

  31. Fast Eddie says:

    Not that anyone really gives a f.uck but I figured I’d mention it for those who may be keeping score: I’ve got multiple bids over asking on my house.

  32. grim says:

    FSBO?

  33. grim says:

    Pretty much any CO. that employs 500 or more does have a built in “inseparable proximal component” as you phrase it.

    Number of employees doesn’t an inseparable component make. I’ve been in the outsourcing business long enough to see how easy it is to move 1000 back office jobs not only across the country, but across the world.

  34. homeboken says:

    OK – So you have identified a problem here or an opportunity? I am not sure I understand the point of the statement below.

    “I’ve been in the outsourcing business long enough to see how easy it is to move 1000 back office jobs not only across the country, but across the world.”

  35. Ragnar says:

    Libturd, 20
    Remember the story in Atlas Shrugged about the Twentieth Century Motor Company?
    This CEO’s company is working out pretty much the same.
    The best employees could see pretty quickly the injustice of declaring all employee’s economic worth to be equal, and that working for a company with such an unjust compensation philosophy would sacrifice their comp to those of others who contribute less to the company’s success.

  36. Fast Eddie says:

    grim,

    No. My attorney insisted on a course of action and I obliged.

  37. grim says:

    OK – So you have identified a problem here or an opportunity? I am not sure I understand the point of the statement below.

    It’s impossible to judge the long term economic viability of any area based on the current employers or recent migration.

  38. Libturd in Union says:

    Rags.

    It’s Animal Farm too.

  39. homeboken says:

    This is not my field of expertise but I do have an interest here, so I hope these questions are reasonable”

    How does one judge the economic viability of an area if not utilizing recent migration and current employers? It seems to me that both of these variables are very important to determining the economic viability. In fact – both are reliable and current data sets, so my mind would tend to assign greater weight to the more current data vs long-run historical. Also – how do you predict the future in these scenarios? Again – I have a half thimble full of knowledge on the subject so I ask in all seriousness. Any estimates of future activity/viability are projections that have dozens of uncontrollable variables.

    The quick question – How do you judge the economic viability if not using current data sets and in-place infrastructure that I mentioned?

  40. FKA 2010 Buyer says:

    Random News…. 30 years ago, “Shout” by Tears for Fears hit #1 on the Billboard Top 100. Who remembers Friday Night Videos on NBC?

  41. When that $70K for everyone Seattle guy made the news, I knew that it was a huge mistake on every level. Back in the 1980’s the original AT&T was well known for the “golden handcuffs”. My mother was a returning to work mother around 1980, previous experience as a secretary in the 1950’s. She went from being a temp earning maybe $16K to an employee making close to $20K and by 1986 or so was making $50K. She recognized that there was no place she could go where they would pay her that salary with her skills and used to talk about it often. She was fine with it, but she had a lot of friends at the company who were late 20’s, early 30’s in the same predicament and they …just…hated…life. I take that back, they loved their lives outside of work, but they hated their jobs with such a passion. In a way, I think people who hate their jobs are a lot more fun outside of work because it’s the only time they have an opportunity to seek satisfaction. Maybe that’s changed now as everyone seems to text or post stuff to the internet all day long at work, which they seem to enjoy.

  42. [40] For the whole year 1985:

    Billboard Top 10
    1. Loverboy – Billy Ocean
    2. Shout – Tears For Fears
    3. Heat Is On, The – Glenn Frey
    4. Broken Wings – Mr. Mister
    5. Miami Vice Theme – Jan Hammer
    6. Oh Sheila – Ready For The World
    7. We Built This City – Starship
    8. Power Of Love, The – Huey Lewis & The News
    9. Can’t Fight This Feeling – REO Speedwagon
    10. St. Elmo’s Fire (Man In Motion) – John Parr

    Top Albums
    Beverly Hills Cop – Sound Track
    Born in the U.S.A. – Bruce Springsteen
    Like a Virgin – Madonna
    Make it Big – Wham!
    Private Dancer – Tina Turner
    Reckless – Bryan Adams
    Suddenly – Billy Ocean

    Grammy Awards
    Album of the Year: No Jacket Required, Phil Collins
    Best New Artist: Sade
    Best Pop Duo or Group: “We Are the World,” USA for Africa
    Best Pop Female Vocal: “Saving All My Love for You,” Whitney Houston
    Best Pop Male Vocal: No Jacket Required, Phil Collins
    Best Rock Duo or Group: “Money for Nothing,” Dire Straits
    Best Rock Female Vocal: “One of the Living,” Tina Turner
    Best Rock Male Vocal: “The Boys of Summer,” Don Henley
    Record of the Year: “We Are the World,” USA for Africa
    Song of the Year: “We Are the World,” Michael Jackson and Lionel Richie

  43. grim says:

    Damn that was a good year for music.

  44. Linn Energy (LINE) – All the news was out last Thursday. Of course the downgrades came on Friday. Barron’s this weekend and RBC’s downgrade today smell of bought and paid for institutional entry today. In large at $3.38.

  45. JJ says:

    I found a few errors, I fixed them.

    40] For the whole year 1985:

    Billboard Top 10
    1. Loverboy – Billy Ocean
    2. Shout – Tears For Fears
    3. Heat Is On, The – Glenn Frey
    4. Broken Wings – Mr. Mister
    5. Miami Vice Theme – Jan Hammer
    6. Oh Sheila – Ready For The World
    7. We Built This City – Starship
    8. Power Of Love, The – Huey Lewis & The News
    9. Can’t Fight This Feeling we Suck – REO Speedwagon
    10. St. Elmo’s Fire (Man In Motion) – John Parr

    Top Albums
    Beverly Hills Crap – Sound Track
    Born in the U.S.A. – Bruce Springsteen
    Not Like a Virgin – Madonna
    Make it Big in Man’s Toilet – Wham!
    Private Dancer – Tina Turner
    Reckless – Bryan Adams
    Suddenly – Billy Ocean

    Grammy Awards
    Album of the Year: No Jacket Required, Phil Collins
    Best New Artist: Sade
    Best Pop Duo or Group: “We Are the World,” USA for Africa
    Best Pop Female Vocal: “Saving All My Drugs for You,” Whitney Houston
    Best Pop Male Vocal: No Toupee Required, Phil Collins
    Best Rock Duo or Group: “Money for Nothing,” Dire Straits
    Best Rock Female Vocal: “One of the Living,” Tina Turner
    Record of the Year: “We Are the Aids,” USA for Africa
    Song of the Year: The Boys of Summer,” Michael Jackson and Lionel Richie

  46. JJ says:

    Unless you can get a secured bond at a deep discount to Par the company is worthless. The secured bond holders will either own it soon and if not get paid back at Par.

    Common had a big div till last week which was only reason some folks were hanging on.

    The Original NJ ExPat says:
    August 3, 2015 at 11:41 am
    Linn Energy (LINE) – All the news was out last Thursday. Of course the downgrades came on Friday. Barron’s this weekend and RBC’s downgrade today smell of bought and paid for institutional entry today. In large at $3.38

  47. Anyone want to take a bet that JJ is or will be typing “Hamptons” within minutes?

  48. Uhhh…you might have a tough time finding those bonds. The company is buying them back at 65 cents on the dollar. Also no bonds coming to maturity for several years. Also making money for the next couple years on their energy hedges.

    Unless you can get a secured bond at a deep discount to Par the company is worthless. The secured bond holders will either own it soon and if not get paid back at Par.

  49. Libturd in Union says:

    Well done JJ!

  50. I know, My FIL Had 6000 shares he bought January 2013 in the 30’s. When I took over his portfolio in December I immediately sold it because the market was telling me the div was ridiculous and unsustainable. They halved it a week later and now have eliminated it starting Q4. I’m pretty sure ARP will be doing the same thing in the near future.

    Common had a big div till last week which was only reason some folks were hanging on.

  51. Comrade Nom Deplume, the anon-tidote says:

    There’s a reason I used to joke that Philadelphia was an extension of New Jersey across the Delaware:

    http://www.cnn.com/2015/08/03/us/hitchbot-robot-beheaded-philadelphia-feat/index.html

    This thing goes all over the world, starts its US tour in Boston (goes to Fenway for a game), goes through NYC, and meets its demise in Killadelphia, a.k.a. Camden with a functioning economy.

  52. Fast Eddie says:

    1980’s: Wow, the memories reading that list! :)

  53. Comrade Nom Deplume, the anon-tidote says:

    BTW, for all those who point out that I live in PA, that is true, but it isn’t the Illadel. Big difference. Folks in PA consider Philly to be a different state, and so do Philadelphians. And consider, when I moved to New Jersey, I moved out of the Illadel.

    When I used to work in Newark, a partner mistakenly referred to me as a Philadelphian on a conference call. I verbally roughed him up for that. And my wife warns people that I don’t consider myself a Pennsylvanian.

  54. NJT says:

    Capitol Theater Passaic, NJ 1983(?): Billy Idol , Joan Jett and Cyndi Lauper. $18 No problem with drinking , smoking or…whatever (inside or outside).

    *Buddy worried about someone stealing or destroying his 1968 Dodge dart (4 door) and we parked a mile away! I said “John, NOBODY is going to touch this. Maybe tow it…but then just say it was stolen. You paid $300 for it, right?”. It was there when we came back.

    Those were the days…

  55. Comrade Nom Deplume, the anon-tidote says:

    [16] expat

    Actually, the economy outside of 495 is better than it has been in decades. When I drove back and forth to UMass in the early 80’s, anything west of Fort Devens was the New Appalachia. Now when I drive out west, I see development in places that used to be vast tracts of forest. Some areas may still be hurting, like Springfield, and you are correct that there are still a lot of college towns but Amherst has more private industry than New Brunswick it seems, and Route 9 between Amherst and Northampton used to be a long stretch of farmland. It isn’t now.

  56. Comrade Nom Deplume, the anon-tidote says:

    [55] redux

    Also, you assume that when the bubble bursts, all players will be affected equally. I beg to differ. You think Cal and Stanford, or Harvard, MIT, BU will implode when the bubble bursts? No, it will be the third and fourth tier schools, especially state schools in jerkwater states. Rowan University or Del State will get slammed a lot faster than Rutgers and UD.

  57. The Great Pumpkin says:

    13- Nj wages were already high, are they supposed to grow 7%? What are they expecting? Same with gdp, what % do they think it’s going to be growing at? Kind of crazy to penalize jersey for this in the rankings. Have to be a little realistic with the data expectations.

    “New Jersey had some rather extreme scores on our measures. While New Jersey’s GDP per capita of $61,433 and average weekly wage of $1,211 were among the highest in the country, the growth rates for these two measures were far weaker: GDP grew just 0.4% in 2014, and wages rose just 2.0% between Q4 2013 and Q4 2014, much lower than the 3.5% change nationwide.”

    Read more: http://www.businessinsider.com/state-economy-ranking-july-2015-2015-7?op=1#ixzz3hlnJqaCH

  58. The Great Pumpkin says:

    Outside of those areas, NC is all tobacco fields, seen it with my own eyes.

    Also, mark my words, so as the area is no longer cheap, these corporations will all leave to the next cheap spot. They will keep doing this over and over until we smarten up with our tax laws.

    homeboken says:
    August 3, 2015 at 10:09 am
    The below can’t be true – Outside of a handful of small companies, NC is all tobacco fields. Pumpkin told me so.

    26. North Carolina
    North Carolina is home to 27 Fortune 1000 companies, including Duke Energy, Lowe’s, and Bank of America.

    Job growth was healthy in the state, with a 2.4% increase in nonfarm payrolls between June 2014 and June 2015, slightly higher than the 2.1% national growth rate. The state’s 2014 GDP per capita of $48,585 was a bit below the national level of $54,307.

  59. grim says:

    When a NJ retiree with a pension moves anywhere, they raise the median income for the area…

  60. grim says:

    North Carolina is home to 27 Fortune 1000 companies

    NY Urbanized Metro is home to 114 Fortune 1000 companies.

  61. Libturd in Union says:

    Maybe we should pay the pensioners a bonus for staying in NJ. Just like we do if you invest in a NJ based 529. Oh wait, there is no incentive for a local to invest in a NJbased 529.
    NJ – Suckiest state ever to work in the private sector.

  62. grim says:

    Also take a look at the INC 5000 – fastest growing companies – 2014.

    Charlotte Metro – 50

    NY Metro – 399

  63. Comrade Nom Deplume, the anon-tidote says:

    This is gonna fry pumpkin’s and anon’s onions, since in their view, a state with restrictions on property tax revenue can’t possibly have good schools.

    http://www.bizjournals.com/boston/news/2015/07/28/massachusetts-school-systems-rank-first-in-overall.html?ana=twt

  64. The Great Pumpkin says:

    58- I also remember North Carolina having a large african American population.

  65. grim says:

    Wallethub rankings are a massive joke.

  66. Comrade Nom Deplume, the anon-tidote says:

    [62] grim,

    First, you are comparing apples and oranges. NC isn’t trying to be NYC.

    Second, HQ locations are largely meaningless now. You pay tax in every state where you have presence and only on your pro rata share (generally) so it isn’t like NY collects exponentially more. Further, states rely on the income taxes of the workers more than the corporate taxes–Where are the workers? That is more important.

  67. Comrade Nom Deplume, the anon-tidote says:

    [65] grim,

    Nearly all such rankings are debatable. Change a metric, change the outcome. But the schools in Mass are pretty good and they do get plenty of revenue. I just like pointing out to our resident progressives that these are not mutually exclusive concepts.

  68. Libturd in Union says:

    Same number of white dudes Pumpkin. 69% and 70%.

  69. Libturd in Union says:

    Of course, we have 4 times the number of Asians, so you might have a hard time finding dry cleaning. See. NJ is better.

  70. anon (the good one) says:

    @CarlosLozadaWP:

    Trump:
    “I have only one regret in the women department—that I never had the opportunity to court Lady Diana Spencer.”

  71. anon (the good one) says:

    @ianbremmer:
    Latest GOP Numbers (NBC/WSJ)

    Trump 19%
    Walker 15%
    Bush 14%
    Carson 10%
    Cruz 9%
    Huckabee 6%
    Paul 6%
    Rubio 5%

  72. Nom, I agree with this 100%, although BU may shed lots of non-educational staff, they are particularly bloated. Even some of the jerkwater state schools may be OK, it will all come down to their debt load and their access to credit markets. You can’t even compare schools apples to apples on debt, endowments, etc. from what I read. It’s all about their credit ratings and their access to credit. I had no idea that some schools only have access to credit in the form of private loans from wealthy alums. That’s the kind of credit market that can go South very quickly. I’m trying to find this paper I read awhile back on the problem. It was a presentation to college presidents and administrators about how the problem will affect them.

    Also, you assume that when the bubble bursts, all players will be affected equally. I beg to differ. You think Cal and Stanford, or Harvard, MIT, BU will implode when the bubble bursts? No, it will be the third and fourth tier schools, especially state schools in jerkwater states. Rowan University or Del State will get slammed a lot faster than Rutgers and UD.

  73. Marilyn says:

    58 I don’t think they will leave for at least the next 20 years. In fact I see all the growth that Bergen County once had 20 years ago or longer. I see the same thing happening. I conclude that Wake Forest /over the outer belt line the same as Sparta NJ was growing. I see the growth of high end retail all over the Raleigh, Durham and CH. I see the hipsters taken over and revitalizing Durham. I see it to be what NJ once was along time ago. I also see tons of building homes and office building like crazy. I don’t see a lot of chains in that area I see more private small businesses. Tons of stuff opening up all over . NC lowered it corp tax, and income tax to a flat tax. I see it will fizzle out but not for at least the next 20 years. Then I don’t give a shit about where I live. I will be too old to leave and trapped in a dying tobacco field. BTW, PUMPKIN have you visited there at all recently? I mean the past let say 6 months to 1 year??

  74. Marilyn says:

    the growth out in Sparta and NW NJ has completely stopped. In fact Rockaway NJ is all for sale. The interesting thing is I see the same builders that were once up here building new construction have all moved down there and started. The sprawl has really started to ramp up. Its hit Apex, Holly Springs, Wake Forest and Durham. This will be good for awhile. When the building stops and no one wants to drive for example like a Sparta or Rockaway then I think it will stabilize.

  75. Alex says:

    Plumpy is rather ignorant of NC. I guess when Nana’s basement provides for all his creature comforts, he doesn’t have much desire to go out and explore.

  76. grim says:

    US population grew by 39 million in the last 15 years, and is projected to grow by an additional 40 million in the next 15 years.

    To put it in perspective, in the last 15 years, the US population grew as much as the entirety of Canada, and in another 15 years we’ll add the entirely of Poland (or Spain, or Argentina, etc). In this 30 year span we’ll have added more citizens than the entirety of the UK, Germany, or France.

    Why are we surprised that lower-cost regions of the US are growing?

  77. Marilyn says:

    you know I think Grim said it the best. Who knows the answers to the future of a State. However we will find out ! I will fill you in once a year and tell you the honest good, bad and ugly.

  78. JJ says:

    My brother and I got tickets to Billy Joels first concert in Coliseum ever. It turns out it was his second arena concert ever. The first being in Buffalo a few weeks earlier. With our savings we got the max tickets they would sell us and scalped the extras. Now the hard part, Neither myself or my brother were old enough to drive and needed a ride. We took the softer songs off the album and played them for my Mother and even offered to pay for her ticket and gas and she caved in. So in 1977 we loaded into my Moms faux wood paneled Buick Station wagon off to my first real rock concert. Since I stood in line a long time and was second on line I actually has 20 row dead center on the floor. The pot smoke was huge, everyone had smuggled “nips” and flasks and Billy came out and he had multiple levels of a stage he ran up and down. My Mom was a bit in total shock but she stayed. But when he ran up it the 200 section and 300 section had a better view of him. My mom was like that is quite an athletic young man.

    My Mom is long dead and Billy Joel is bald with fake hips. Would love to be at show tonight. I looked online and tickets are $600 bucks each to sit in the same seats that a ninth grader could afford back in 1977

    NJT says:
    August 3, 2015 at 12:16 pm
    Capitol Theater Passaic, NJ 1983(?): Billy Idol , Joan Jett and Cyndi Lauper. $18 No problem with drinking , smoking or…whatever (inside or outside).

    *Buddy worried about someone stealing or destroying his 1968 Dodge dart (4 door) and we parked a mile away! I said “John, NOBODY is going to touch this. Maybe tow it…but then just say it was stolen. You paid $300 for it, right?”. It was there when we came back.

    Those were the days…

  79. Marilyn says:

    I saw at the Capital Rush, and Asia. Remember hitsville that was a weird place too. I also used to go to Expose, Manhattans, and all those places in Rockland County. Saw the usual BOC, and so on. God it seems so long ago.

  80. The Great Pumpkin says:

    Amen! Why we compare states that were totally rural 20 years ago to states that have been developed already, and then claim these developed states are dead money based on a comparison to the new growth areas is just crazy. You are not comparing apples to apples. Of course North Dakota, Colorado, and Texas will experience way more growth, they are plowing over fields and turning them into towns. Bigger question should be with the long term, can these places support this growth long term? Are they building too quickly, meaning screw planning, just chase that immediate profit and worry about the impact later on? I know that water will become an issue in a lot of these places…..even in the carolina’s.

    grim says:
    August 3, 2015 at 1:57 pm
    US population grew by 39 million in the last 15 years, and is projected to grow by an additional 40 million in the next 15 years.

    To put it in perspective, in the last 15 years, the US population grew as much as the entirety of Canada, and in another 15 years we’ll add the entirely of Poland (or Spain, or Argentina, etc). In this 30 year span we’ll have added more citizens than the entirety of the UK, Germany, or France.

    Why are we surprised that lower-cost regions of the US are growing?

  81. The Great Pumpkin says:

    74- I haven’t been to the NC since 2012. I’m sure it’s changed some.

  82. Walking Bye says:

    Marilyn, I remember a few years back discussing Health care costs with a coworker while on business in NC. he basically said NC costs are much less for a variety of reasons, just wondering if you have done any healthcare cost comparisons and could fill us in on your experience.

  83. homeboken says:

    Grim/Pumpkin –

    My point is not that I am surprised that these areas are growing, or that their growth rate is faster than the developed MSA of NYC. My question is simple – Now that NYC/and metro NJ have to compete with these areas, are we willing to do so? How far are we willing to go to intice company’s and their jobs to stay in our state. It is FACT that other states are willing to do much more in terms of tax incentives to lure jobs.
    25 years ago NYC was not competing with Charlotte/Houston/etc. Now NYC and NJ must compete. If not, see Grim’s earlier comment about witnessing 1,000’s of job relocate across the country and around the world.

    Incentivize to stay/Penalize for leaving – whatever, I am open to hear it all. Doing nothing is not a strategy that I want to be a part of.

    Of course North Dakota, Colorado, and Texas will experience way more growth, they are plowing over fields and turning them into towns. Bigger question should be with the long term, can these places support this growth long term?

  84. The Great Pumpkin says:

    Honestly, this is terrifying stuff.

    grim says:
    August 3, 2015 at 1:29 pm
    Future’s so bright, I gotta wear shades:

    http://mic.com/articles/123027/moores-law-explained-computers-more-powerful-than-human-brains

  85. grim says:

    Between 2010 (census) and 2014 (census estimate)

    Population Increase
    New Jersey – 146,281
    North Dakota – 66,891

    Population Density (Per Square Mile)
    New Jersey – 1210.1
    North Dakota – 10.5

    GDP
    New Jersey – $561 billion
    North Dakota – $63 billion

    NJ’s story is more interesting.

  86. The Great Pumpkin says:

    Construction alone is a major factor in these areas. How many people’s jobs are tied to this super expansion of housing and factories? What happens when that expansion ends? What do these people do and what impact does this have on their economy. Anyone know what % of Texas economy is tied to construction? Jersey doesn’t have that problem obviously. We are def not relying on construction to keep our local population in work.

    homeboken says:
    August 3, 2015 at 2:30 pm
    Grim/Pumpkin –

    My point is not that I am surprised that these areas are growing, or that their growth rate is faster than the developed MSA of NYC. My question is simple – Now that NYC/and metro NJ have to compete with these areas, are we willing to do so? How far are we willing to go to intice company’s and their jobs to stay in our state. It is FACT that other states are willing to do much more in terms of tax incentives to lure jobs.
    25 years ago NYC was not competing with Charlotte/Houston/etc. Now NYC and NJ must compete. If not, see Grim’s earlier comment about witnessing 1,000′s of job relocate across the country and around the world.

    Incentivize to stay/Penalize for leaving – whatever, I am open to hear it all. Doing nothing is not a strategy that I want to be a part of.

    Of course North Dakota, Colorado, and Texas will experience way more growth, they are plowing over fields and turning them into towns. Bigger question should be with the long term, can these places support this growth long term?

  87. grim says:

    Bigger question should be with the long term, can these places support this growth long term?

    As long as population growth warrants it. So, perhaps we shouldn’t be so keen to close borders and cut off immigration…

  88. The Great Pumpkin says:

    I don’t know why people are calling for the end of jersey. Those stupid ranking really are a joke. Comparing jersey to North Dakota…. Come on now!! I’ll stay in the 44th ranked state in your stupid list instead of number 1. I’ll go to make my money in the area that is rich and carries the highest population density. It only makes sense to.

    grim says:
    August 3, 2015 at 2:37 pm
    Between 2010 (census) and 2014 (census estimate)

    Population Increase
    New Jersey – 146,281
    North Dakota – 66,891

    Population Density (Per Square Mile)
    New Jersey – 1210.1
    North Dakota – 10.5

    NJ’s story is more interesting.

  89. The Great Pumpkin says:

    10.5 compared to 1210.1…….not rocket science based on this data to understand which area offers you the better chance to get rich. Even an imbecile would be able to get the right answer.

  90. Alex says:

    86. At least half that gain in population (146,000) to NJ was from Hispanics.

  91. joyce says:

    Pumpkin,
    Just remember that the next time you find and post some random article merely because you agree with it.

  92. The Great Pumpkin says:

    Go look at Passaic. The Hispanics turned that city around. Not trying to bring race into this, but the change in population in Passaic from African Americans and Puerto Ricans, to Mexicans, has done wonders for that city. It’s much improved, imo. Obviously, it’s still one of the poorest areas of nj, but at least it’s doing better than these other cities, like Paterson.

    Alex says:
    August 3, 2015 at 2:50 pm
    86. At least half that gain in population (146,000) to NJ was from Hispanics.

  93. The Great Pumpkin says:

    You are absolutely right.

    joyce says:
    August 3, 2015 at 2:54 pm
    Pumpkin,
    Just remember that the next time you find and post some random article merely because you agree with it.

  94. Ragnar says:

    I still don’t see what Pumpkin sees in NJ, other than that’s where grandma’s house is. He keeps referring vaguely to the nightlife. Pretty much any state has computers and internet connections allowing one to read and write enormous quantities of pointless, ignorant garbage online.

  95. The Great Pumpkin says:

    Rags, don’t call me an idiot if you don’t understand what jersey has to offer. Landscaping for example, you show me another location where a landscaper can have access as many 100,000 yard make overs that jersey does? A dense population area filled with a bunch of rich people is pretty ideal, but I guess jersey has nothing to offer.

    Also, if you were truly rich, you would never move just because of property taxes. 50,000 a year is a joke to a rich individual. So all those people claiming that millionaires are leaving just don’t get it. You are not rich and can’t comprehend how a mind with endless money at its disposal works. They are leaving for retirement purposes or for family reasons. If you are fleeing a location because of property taxes, you are either no longer rich, or were never rich, and the cost of living is kicking you out.

    Ragnar says:
    August 3, 2015 at 3:13 pm
    I still don’t see what Pumpkin sees in NJ, other than that’s where grandma’s house is. He keeps referring vaguely to the nightlife. Pretty much any state has computers and internet connections allowing one to read and write enormous quantities of pointless, ignorant garbage online.

  96. Ragnar says:

    It’s just over 1 yr since Michael advised us of the great things Plug Power is into.
    Since then, the stock has fallen more than 40%.
    The company has had negative gross margin, negative cashflow, and large losses for the past 12 years.
    And he’s a “financial analyst”, no not investment analyst, but it’s a job title for someone not supposed to be financially and accounting- illiterate.
    Perfectly consistent with the quality of discourse this guy has brought to our discussion since showing up.

  97. homeboken says:

    Pumpkin asks “nyone know what % of Texas economy is tied to construction?”

    Construction jobs represent about 5.5% of non-farm payrolls. Less than all the following:

    Trade, Transport, Utilities – 20.1%
    Government – 15.6%
    Professional Services – 13.4%
    Education & Health – 13.4%
    Leisure & Hospitality – 10.6%
    Manufacturing – 7.4%

    But sure – feel free to say it is all construction jobs, don’t let facts get in the way of the narrative your are so afraid to take a critical look at.

  98. homeboken says:

    Link to data in summary of 98:

    http://www.bls.gov/eag/eag.tx.htm

  99. grim says:

    Baby Jesus is crying over the fact that the only example he could come up with was landscapers.

  100. The Great Pumpkin says:

    Yes, I recommended trading it, not investing in it. You forgot about that part. If you listened to me, you would have made a quick 15% in a week.

    Btw, I miss on stocks too…..who doesn’t?

    Ragnar says:
    August 3, 2015 at 3:29 pm
    It’s just over 1 yr since Michael advised us of the great things Plug Power is into.
    Since then, the stock has fallen more than 40%.
    The company has had negative gross margin, negative cashflow, and large losses for the past 12 years.
    And he’s a “financial analyst”, no not investment analyst, but it’s a job title for someone not supposed to be financially and accounting- illiterate.
    Perfectly consistent with the quality of discourse this guy has brought to our discussion since showing up.

  101. Comrade Nom Deplume, the anon-tidote says:

    According to our President, and the anon/Otto/Fabian axis, anyone who opposes the Iran deal is an abject idiot. Now here’s proof that our country is, by a liberal’s definition, idiotic by a 2-1 margin.

    http://www.quinnipiac.edu/news-and-events/quinnipiac-university-poll/national/release-detail?ReleaseID=2265

    Of course, we didn’t need a poll for that. 2008 and 2012 proved conclusively that we are now an idiocracy.

  102. homeboken says:

    Pumpkin – You also noted “NJ doesn’t have the problem” with regards to construction.

    For reference – 3.8% of NJ non-farm payroll is in the construction industry vs 5.5% in Texas.

  103. Libturd in Union says:

    Investment Club 14.4% (IRR)
    Plug Power Inc -54.9% (IRR)

    7-22-14 to 7/29/15

  104. Libturd in Union says:

    Same time period
    Investment Club 14.4%
    Vanguard Total Stock Market Index Fund (VTSMX) 8.0%

    I have a lot of titles, but none of them include Financial Analyst. Our returns are inclusive of all costs to operate the club.

  105. Comrade Nom Deplume, the anon-tidote says:

    [105] libturd

    Now THAT is gonna leave a mark!

  106. The Great Pumpkin says:

    ABSTRACT:
    This newsletter provides evidence in support of the widely held argument that current developments in industrial projects can more than offset the negative economic effect of falling oil production on South Texas. Employment data suggest that the regional economic impact of the shale oil boom already peaked out in 2012. Since then, the so-called New Economic Paradigm has shifted, with the construction industry as the new game changer for the Corpus Christi economy.

    http://stedc.tamucc.edu/files/Econ_Pulse_2015_5.pdf

  107. The Great Pumpkin says:

    I just read that nj was at 2.7%?

    homeboken says:
    August 3, 2015 at 3:51 pm
    Pumpkin – You also noted “NJ doesn’t have the problem” with regards to construction.

    For reference – 3.8% of NJ non-farm payroll is in the construction industry vs 5.5% in Texas.

  108. The Great Pumpkin says:

    Did I say to hold or to trade it that week? I beat your 14.4% on plug in one week.

    Btw, another thing you can blast me on….diversification is really for suckers. No one ever gets rich diversifying, you only diversify to maintain your wealth.

    Libturd in Union says:
    August 3, 2015 at 3:54 pm
    Same time period
    Investment Club 14.4%
    Vanguard Total Stock Market Index Fund (VTSMX) 8.0%

    I have a lot of titles, but none of them include Financial Analyst. Our returns are inclusive of all costs to operate the club.

  109. homeboken says:

    109 Cite your source. Mine comes from the Beauru of Labor, with a link that I posted above as of May 2015.

    either way – It doesn’t matter – focus on your TX claim, construction is not the driving employment industry you posited it was.

    Do you understand that NJ has to compete to keep jobs in state?

  110. Ragnar says:

    I think the Pumpkin should find a Texas rereport and become the hyperactive Clot of that website, telling them how doomed they are, and leave us alone.

  111. homeboken says:

    What the hell type of finance do you analyze? I wouldn’t trust you to run a snack bar on a golf course:

    Let’s just cash out those 401(k)s and savings accounts and inherited multi-family properties and day-trade with them. Or better yet – let’s go down to AC and put it all on black and let it spin.

    “Btw, another thing you can blast me on….diversification is really for suckers. No one ever gets rich diversifying, you only diversify to maintain your wealth”

  112. Ragnar says:

    Shocking, I found an article saying that foreign people are buying real estate in Texas. There are examples of Chinese people coming to the Dallas area specifically for the purpose of sending them to local Texas schools.
    http://www.texasmonthly.com/daily-post/texas-number-three-real-estate-market-us-foreign-homebuyers

    I guess Milburn, despite all of the amazing landscaping companies servicing it, cannot land all of the Chinese buyers.

  113. The Great Pumpkin says:

    Forget all the bs numbers. All I’m saying is there is a lot of construction accompanying this growth. What happens to all the people relying on these jobs down the road? What happens to all the other industries that are tied to the demand these construction workers bring to the economy?

    Best question, how many Mexicans are working construction in Texas under the table? I can’t even take the legal numbers seriously provided by the dept of labor. I know how the construction industry works. To have that kind of expansion and only 5.5% of the workforce tied to construction makes me question it.

  114. Ragnar says:

    What I note as an investment pro is that virtually nobody in the field gets their equity stock picks right more than 60% of the time. Because people are actually keeping track objectively, most of the time. 55% success is actually very strong. In contrast, when I encounter hobbyists, they tell me they get things right roughly 90% of the time. And they always know more about investing than I do, and diversification just slows down their brilliance. And if the topic of stocks or markets that didn’t work out ever come up later, I learn that they always did get out at just the right time.

  115. The Great Pumpkin says:

    When you are rich, you diversify. If you want to get rich, don’t diversify. 7% is a joke. Good luck. Don’t even make double your money in 10 years, meaning you are going nowhere fast. I’m not going to teach you how to make money when you disrespect me on a regular basis. Just keep listening to the experts and diversify! In 40 years, it will pay off!

    homeboken says:
    August 3, 2015 at 4:08 pm
    What the hell type of finance do you analyze? I wouldn’t trust you to run a snack bar on a golf course:

    Let’s just cash out those 401(k)s and savings accounts and inherited multi-family properties and day-trade with them. Or better yet – let’s go down to AC and put it all on black and let it spin.

    “Btw, another thing you can blast me on….diversification is really for suckers. No one ever gets rich diversifying, you only diversify to maintain your wealth”

  116. homeboken says:

    OK – So you are smarter than facts and data sets compiled by non-biased reporting agencies. You are smarter b/c “You know how it works”

    You are an expert in an industry where you have never worked and how the industry employs people 1500 miles away from your home-base. All b/c you say so, right?

    I got it now, you say it is fact and thus it is fact. I know many like you. Congratulations on all the success you have attained in your life. I hope you never find yourself in a position where you may have to really critically evaluate your world-view and listen/take advice of others. You are not prepared for such a scenario so I hope it doesn’t occur to you.

  117. Libturd in Union says:

    I am…speechless.

    If you recall, after your excellent short-term call on PLUG, I asked you at what price one should sell it. You were silent. Keep putting all of your eggs in one basket. That’s excellent advice.

    If you are not happy 15% per year in perpetuity, you should be fired right now. One of my clubs has done 15.2% IRR all in since 2/27/2008. The other club has done 10.2% since 4/26/2005. Both of these portfolios are both horizontally and vertically diversified to minimize risk. No position is greater than 15% of the entire portfolio. We use no paid analysis. We pay for two things. Our accounting software and an S&P500 raw datafeed containing ten years of data which could painfully be entered manually if we were willing to look up the data on Edgar. I would love to know what the TRUE return is on your personal portfolio of equities.

  118. The Great Pumpkin says:

    118- buffet got rich by diversifying? Gates? Name me one billionaires that became wealthy off of diversifying?

  119. The Great Pumpkin says:

    I said it once and I’ll say it again, if one’s goal is to get rich, the following statement applies……diversification is for suckers! If you want to preserve wealth, therefore reducing risk at an expense to profit, then diversify. You will reduce the risk of losing money drastically as well as lose the ability to profit dramatically. If you are in your 20’s or 30’s and not taking some of your money that you can lose and trying to hit home runs, your chances of being rich will be slim to none. You don’t want to take the risks it takes to get rich. No one gets rich diversifying. It’s impossible based on the average return.

  120. jcer says:

    120 the rich get rich by trading with distinctly non-public information or some nonpublic advantage. Either you had the money and you grew it, which is where diversification helps or you have a knowledge advantage see Paulson’s one way bet on mortgages going belly up in 2006, easy to bet against your own sausage. Really the rich tend to get rich either through inheritance, building a successful business, or highly leveraged investments in real estate(mostly because lending there is less regulated than in the securities industry). In real estate if i have the piddling sum of 1 million, I can buy a shopping center with a net leases that yields 6-8% with credit for 10 million and put 10% down on a 30 year amortization with a 10 year lock on rates as low as 4% knowing full well that in 10 years either I can make it work or default and probably still come out ahead based on the float. Other people’s money, that is why zirp has caused the huge perception of the rich getting richer. The rich can afford/have enough track record to buy property with OPM at low bank/insurance company interest rates. The rich don’t make huge risky bets unless the payoff is obscene.

  121. jcer says:

    119 lib if i could get 15% annually in perpetuity I’d be retired by now.

  122. The Great Pumpkin says:

    On the Texas subject.

    “Like almost everything in the Texas, the construction industry in the Lone Star State is big. One in every 13 workers here is employed in the state’s $54 billion-per-year construction industry.

    Homebuilding and commercial construction may be an economic driver for the state, but it’s also an industry riddled with hazards. Years of illegal immigration have pushed wages down, and accidents and wage fraud are common. Of the nearly 1 million workers laboring in construction here, approximately half are undocumented.

    Many of those workers have been in the U.S. for years, even decades. This critical mass of eager, mostly Hispanic workers means it’s possible for a family from New York or California to move to Texas and buy a brand new, five-bedroom, 3,000-square-foot home for $160,000.

    More From This Series

    Texas Contractors Say Playing By The Rules Doesn’t Pay April 11, 2013
    Just how cheap is the cheap labor in Texas? Sometimes, it’s free. Guillermo Perez, 41, is undocumented and has been working commercial construction jobs in Austin for 13 years.

    “[The employer] said he didn’t have the money to pay me and he owed me $1,200,” Perez says of one job. “I told him that I’m going to the Texas Workforce Commission, which I did. Then after that, he came back two weeks later and paid me.”

    Perez is brave. Undocumented workers are usually too afraid to complain to Texas authorities, even when they go home with empty pockets. And they almost never talk to reporters.”

    http://www.npr.org/2013/04/10/176677299/construction-booming-in-texas-but-many-workers-pay-dearly

  123. The Great Pumpkin says:

    124-

    “Cheated workers keep working, Tzintzun says, because contractors dangle wages like bait from one week to another, paying just enough to keep everybody on the hook.

    Two workers died when a crane collapsed under windy conditions at a University of Texas, Dallas, campus site in July 2012. OSHA cited the construction company with six serious safety violations and levied a $30,000 penalty.i
    Two workers died when a crane collapsed under windy conditions at a University of Texas, Dallas, campus site in July 2012. OSHA cited the construction company with six serious safety violations and levied a $30,000 penalty.
    Jack White/Courtesy of The Dallas Morning News
    “We’re talking large commercial projects, even state and county projects,” she says. “So it’s a problem that’s widespread in the industry.”

    If wage theft is a nasty cousin of slavery, Tzintzun says there’s a deeper, more fundamental sickness affecting the Texas construction industry: the misclassification of construction workers as independent contractors instead of as employees.

    “We found that 41 percent of construction workers, regardless of immigration status, were misclassified as subcontractors,” she says.

    It works like this: Pretend you’re an interior contractor, drop by the Home Depot parking lot and pick up four Hispanic guys to install Sheetrock for $8 an hour.

    By law, these men are your employees, even if just for the day. But in Texas, as in many other states, it’s popular to pretend they’re each independent contractors — business owners. Which means you are not paying for their labor but for their business services.

    With this arrangement, the contractor — you — don’t have to pay Social Security taxes or payroll taxes or workers’ compensation or overtime. Instead, you pretend the undocumented Hispanic worker you’ve just paid in cash is going to pay all those state and federal taxes out of his $8 an hour himself.

    “Our estimation is that there’s $1.6 billion being lost in federal income taxes just from Texas alone,” says the Workers Defense Project’s Tzintzun. The report estimates that $7 billion in wages from nearly 400,000 illegally classified construction workers is going unreported in Texas each year, resulting in billions of dollars in revenue lost owing to institutionalized statewide payroll fraud.

    “It’s really the Wild West out there,” Tzintzun says”

  124. The Great Pumpkin says:

    124-

    “According to the study, 1 in every 5 Texas construction workers will require hospitalization because of injuries on the job. Texas is the only state in the nation without mandatory workers’ compensation, meaning hospitals and taxpayers usually end up shouldering the cost when uncovered construction workers are hurt.

    And who profits from the system in Texas? Remember that five-bedroom house for $160,000? Customers are the winners, workers are the losers and many construction firm owners have been transformed into the exploiters.

    That’s not the case for all construction firms, of course. But for many smaller contractors and subcontractors — who together make up the majority of the industry here — it’s exploit your workers and cheat the taxpayers or go out of business. Those are the cold hard Texas construction industry facts.”

  125. The Great Pumpkin says:

    “And that’s how an estimated half-million undocumented, mostly Hispanic construction workers go to work each day in Texas. Marek says in the 1940s, ’50s, ’60s and ’70s, his uncle, John Marek, who started the company, paid union wages, and his workers lived stable, middle-class lives.

    If I were to speculate, I would probably say they are not paying their Social Security [taxes]. I would also say that they’re probably not filing their income tax returns on a regular basis.
    Trent, a landscape contractor, on his workers
    But according to a new study from the University of Texas and the Austin-based Workers Defense Project, today’s construction workers in Texas make near-poverty wages — an average $12 an hour.

    Marek says Texas high school kids no longer dream of a good life working in construction. “You’re not gonna get kids to go to work in construction without a career path and a better wage,” he says.

    Marek is a Texas Aggie conservative Republican, but he says his industry and the country need immigration reform that will turn all the undocumented workers into documented workers. That would level the playing field for companies like his that want to abide by the law, he says, and will lead to better wages and a career path for American kids who aren’t cut out for college.”

    http://www.npr.org/2013/04/11/176777498/texas-contractors-say-playing-by-the-rules-doesnt-pay

  126. Ragnar says:

    As if NY/NJ doesn’t have a ton of undocumented workers.
    Not only our construction industry but also our magnificent landscaping industry.
    But I’ll bet NJ is much more generous in spending public money on them than Texas is, at least on a per person basis.

    Our very own JJ has this move down: “Pretend you’re an interior contractor, drop by the Home Depot parking lot and pick up four Hispanic guys to install Sheetrock for $8 an hour.”
    Except in NY, I think JJ had to pay $15

  127. The Great Pumpkin says:

    “Oil prices have been falling or at low levels for a year, and prospects for a quick turnaround in in the oil industry is fading. Even with the U.S. economy improved and growing with some strength, the length and depth of the current drilling downturn would normally bring a mild recession to Houston. Fortunately, another very large energy event is taking place on the Texas Gulf Coast as well, with low oil prices driving a major construction boom. The construction provides a partial offset to the shale bust, but the temporary nature of the work limits its overall impact. ”

    http://www.bauer.uh.edu/centers/irf/houston-updates.php

  128. The Great Pumpkin says:

    Homeboken-Exactly like I stated earlier. Growth boosting jobs in construction, what happens when people stop coming to Texas and the construction ends? Also, stated that you couldn’t take their labor data in construction seriously due to being located right next to Mexico.

    It’s bs that I have to go find sources to back me up, you can’t just respect me enough to know I’m not talking out of my ass.

    “A fast-growing population was key to Texas’ record job growth, fueling a demand for construction and services while the rest of the country languished. How much did illegal immigration contribute to the state’s growth?

    Relying significantly on lower-wage jobs to fuel growth, Texas has drawn from a large, relatively cheap labor pool that’s included large numbers of legal and illegal immigrants. Illegal immigrants have taken jobs in many of the industries central to Texas’ economic boom, such as home construction, agriculture and the service industry. Illegal and legal immigrants make up about 20 percent of the state’s total workforce, according to the U.S. Census Bureau. And the Pew Hispanic Center estimates that 8 percent of Texas’ total workforce was made up of illegal immigrants as of 2008.

    “It’s a big part of our economy across the board, overwhelmingly in low-skilled, hard work,” says Charles Foster, a Houston-based immigration attorney and board member of the Greater Houston Partnership, a business development group. “It impacts Texas more than almost any other state.” The state’s heavy reliance on immigrant labor may not have dragged wages down to rock bottom either: As Matthias Shapiro notes, the state’s median hourly wage is $15.14, ranking 28th of 51 in the nation, and it’s been increasing at the sixth-highest rate since the recession.”

    http://www.washingtonpost.com/blogs/ezra-klein/post/how-much-did-illegal-immigrants-contribute-to-texas-economic-boom/2011/08/19/gIQASvBFQJ_blog.html

  129. The Great Pumpkin says:

    130- Cont

    “At the same time, the growing immigrant community — along with the rest of the state’s booming population — has put greater demands on the public sector, racking up costs in education, health care and other resources. While illegal immigrants are ineligible for most public benefits, they still receive emergency care that the state covers when hospitals pass on the costs. And the growing number of new residents overall is also expected to strain public resources in Texas down the road, especially if the state continues to make draconian budget cuts. By 2013, for example, Texas is expected to add 160,000 schoolchildren, and a higher demand for water amid a dwindling supply may force taxpayers to build reservoirs and fix
    aging infrastructure.”

  130. The Great Pumpkin says:

    131- Also proves what I have been saying about places like Texas and North Carolina. People start coming and the places become expensive. The costs go up with every single new person that lives there. Remember in the 70’s and 80’s, how everyone with money started moving to Morris county, hunterdon, and so reset because of the low costs….what happened? People came and drove up all the costs. Bye bye cheap taxes. Nothing to do with leftist policies or unions and everything to do with people.

    Also, stated that water was a problem in these areas. They will be paying so much for water compared to the north east. Every time someone moves there creates more demand on a limited resource. Price will go up.

  131. The Great Pumpkin says:

    Right now I have CNBC on mute (I’m addicted to the tickers, not necessarily the reporting) and Jim Cramer has a huge billboard up promoting being “Diversified”.
    This idea has been drummed into sheeple’s people’s heads for so long by Wall St. and the big banks that I beg of you to please open your mind for just a second and give me a chance to refute this common financial myth, or at least to poke a few holes in it.

    – See more at: http://www.kungfufinance.com/diversified-or-diworseified/#sthash.yw1CttTd.dpuf

  132. The Great Pumpkin says:

    133- cont

    First off, in the midst of the current financial crisis and sovereign debt debacle, most markets are moving in lock-step, even markets that have traditionally been “uncorrelated” to one another. People are rushing to the so-called safety of the U.S. dollar and treasury market (ha, but that is the subject of another post…) and markets are moving as much or more on rumors than on fundamentals. All global stock markets are down, gold and silver have taken a beating this past week, oil is down, bonds are paying such a low yield it is less than inflation in many cases, and the real estate market shows no signs of bottoming, particularly if interest rates rise in the future and/or the government decides to get rid of the mortgage interest deduction. So even if you own ALL of the above investment “vehicles”, are you getting any of the supposed so-called benefits of diversification? I doubt it!
    Second, let’s take a look at the “smart money”….are they diversified? Warren Buffett, arguably one of the best investors of all-time, has this to say about diversification, “diversification is protection against ignorance– it’s better to put all your eggs in one basket and then watch that basket very, very closely!”. He himself owns Berkshire Hathaway, a compilation of U.S. and global businesses, and that’s it– he believes in investing only in what he understands (although he is a supremely experienced and savvy investor and probably “understands” a lot more complex financial instruments than you or I do!). Jim Rogers, co-founder of the incredibly successful Quantum Fund with George Soros, owns metals and agriculture. Donald Trump focuses on real estate. Robert Kiyosaki focuses on his business and real estate. If any of these billionaires were asked the question, “so, how did you achieve your great wealth?”, I can guarantee that they wouldn’t answer “through proper diversification”.
    Finally, many people own 10 different stocks or mutual funds and think they are “diversified” because they don’t have all of their money riding on only one stock or fund…needless to say, this is not considered true “diversification” at all.
    My point here (I have one, I swear!) :) is that you should be extremely wary of words and their meanings and very cautious when applying financial “advice” from anyone who doesn’t truly have your best interest at heart (and frankly, no one will ever care as much about your money as you do, so that person is you!).
    When determining your financial strategy, ask yourself questions like, “do I want to become wealthy or do I want to play it safe?” and “what is the best strategy for me to get there?” and if great wealth is what you are shooting for, “can I really achieve great wealth through diversification?”. Diversification has its place, but only you know your own personal financial goals and dreams and how you will best be able to achieve them in the quickest way possible.
    For me, that’s not being “diversified”– it’s focusing my money on the things I understand and then watching those things very, very closely.
    YMMV…. Let me know your thoughts on diversification in the comments below! Are you diversified? What does diversification mean to you?

    – See more at: http://www.kungfufinance.com/diversified-or-diworseified/#sthash.yw1CttTd.dpuf

  133. NJT says:

    #75 [Marilyn]

    – Was a Rockaway, NJ (nothern twp.) boy. Now an edgeamacated adult but my neck is still red (during the summer).

  134. leftwing says:

    11 posts from 124 through 134.

    10 from punkin…….

  135. NJT says:

    Da Brennans down there (I know one is/was)?

  136. ccb223 says:

    Saw this comment from Ben yesterday and had to chime in:

    Hey dude – she went to Yale law school (which is practically impossible to get into), was a US Senator and Secretary of State for the United States of America. Not enough for you?

    Ben says:
    August 2, 2015 at 8:50 pm

    Hillary Clinton’s problem is that she was never anybody to care about. As of now, 50 years from now, no one will remember her. She probably won’t even get a single mention in a high school history book. If she gets the presidency, that all changes and she’s immortal. She’s an egomaniac. Kind of ironic that I’m pretty sure she’s never had any accomplishments to truly be proud of.

  137. Libturd at home says:

    Maybe my porfolio would be less diverse if my portfolio was insured by the GDIC (Grandma Deposit Insurance Corporation)?

  138. Libturd at home says:

    “US Senator and Secretary of State for the United States of America.”

    She used New York and would have never gotten in without her cheating husband’s name recognition. As for her performance as Secretary of State? Come on now. She wasn’t even smart enough to differentiate between her private and public email addresses for state business and conveniently deleted the incriminating ones. Not to mention the Russian Uranium deal in exchange for the lofty deposit into the Clinton Foundation. She is simply a weak person imo.

  139. The Great Pumpkin says:

    For Joyce.

    “But stick with me a moment…. so what exactly IS the Fed?

    Let’s go to their website and see:
    “On December 23, 1913,the Federal Reserve System, which serves as the nation’s central bank, was created by an act of Congress. The System consists of a seven member Board of Governors with headquarters in Washington, D.C., and twelve Reserve Banks located in major cities throughout the United States. The seven Board members constitute a majority of the 12-member Federal Open Market Committee (FOMC), the group that makes the key decisions affecting the cost and availability of money and credit in the economy. The other five members of the FOMC are Reserve Bank presidents, one of whom is the president of the Federal Reserve Bank of New York.”

    Hmmm. So it is a group of banks, who together determine and control the entire monetary policy for our country. What is the definition of “cartel”?

    cartel: group of firms or nations who attempt to control price or supply of a commodity (such as oil) through mutual restraint on production. Although such collusion among sovereign countries (such as in OPEC) is grudgingly accepted, it is illegal among corporations.[3]

    So there you have it, your conspiracy theory for today: the Fed is a cartel of banks.
    So what do you think? Innocent group of bankers working for the common good of the people, or evil group of bankers working primarily for their own profits, the people be damned? I have my opinion, of course, :), but what do you think?”

    – See more at: http://www.kungfufinance.com/the-book-that-changed-my-life/#sthash.6beJ8r91.dpuf

  140. Libturd at home says:

    And Pumpkin, Warren Buffet made virtually all of his money off of GEICO. Shrewd, yes. But insurance is all he knew and it hardly qualifies him to be an expert stock picker. He’s below the S&P 500 in the last five years as well. Of course now he gets to write his own rules so it’s hard to believe that BRK is doing so average in the past half a decade.

    As for Kung Fu Finance…you are such a dolt. It’s complete BS and the author probably got killed so badly on her metals investments that she offed herself. She essentially disappeared from the face of the earth, which is QUITE a stunt for someone who claimed to have made 100% interest a year for many years in a row. The fact you are following her teachings is really not surprising.

  141. The Great Pumpkin says:

    Lessons to be learned by all.

    You sum up my point with buffet, he put his eggs in the one basket he knew about. That’s how he won big. Once he won big he diversified and grew that capital to enormous levels. Once you hit big, you do not continue risking the whole pie, only an idiot does that. You won, now protect it.

    Libturd at home says:
    August 3, 2015 at 8:27 pm
    And Pumpkin, Warren Buffet made virtually all of his money off of GEICO. Shrewd, yes. But insurance is all he knew and it hardly qualifies him to be an expert stock picker. He’s below the S&P 500 in the last five years as well. Of course now he gets to write his own rules so it’s hard to believe that BRK is doing so average in the past half a decade.

    As for Kung Fu Finance…you are such a dolt. It’s complete BS and the author probably got killed so badly on her metals investments that she offed herself. She essentially disappeared from the face of the earth, which is QUITE a stunt for someone who claimed to have made 100% interest a year for many years in a row. The fact you are following her teachings is really not surprising.

  142. Ben says:

    Saw this comment from Ben yesterday and had to chime in:

    Hey dude – she went to Yale law school (which is practically impossible to get into), was a US Senator and Secretary of State for the United States of America. Not enough for you?

    Hey dude, she also failed the bar exam…I guess she wasn’t quite Yale material. Everything you mentioned afterwards is a joke. Her major accomplishment was marrying her husband. Name one productive thing she’s done with her life. Just one…

  143. leftwing says:

    Notwithstanding Hillary’s achievements Ben’s point remains valid. Absent the Presidency she goes into the dustbin of history.

    Very few Secretaries of State have any level of historical significance if they don’t move on to the higher office. See if you can name three.

    I googled the list. Maybe four with historical significance that have not had the Presidency. Only two of whom gained it in office. Both as a result of wartime.

    The position does not lend itself to historical significance.

    His point is even more relevant for US Senators. While a notable current achievement in the context of history they are a dime a dozen and that position is even less likely to produce *individuals* of historical significance. Not the nature of the institution.

    No Presidency for Hillary, in 50 years she is a historical footnote at best.

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