From NJ.com:
NJ votes today on Legislature, state borrowing
The future of stem cell research in the state and the makeup of the Legislature for the next two years will be decided by New Jersey’s voters today, Election Day 2007.
The balance of power in Trenton is at stake with all 120 seats up for election. Democrats currently control both houses, by margins of 50-30 in the Assembly and 22-18 in the Senate. County and local offices are also on the ballot throughout the state, along with four public questions.
The questions facing voters statewide are whether the state should borrow funds for stem cell research and open space preservation, how much sales tax money should go to property tax relief, and whether to remove the words “idiot” and “insane” from a section of the state constitution that deals with voting rights.
From the AP:
What’s at stake in the Nov. 6 NJ election
Q. What’s at stake?
A. Democrats control the Assembly 50-30 and the Senate 22-18. That’s the most held by Democrats since 1979. Republicans haven’t controlled a house since 2001, when they controlled both the Assembly and Senate.Q. Anything unique about this vote?
A. Retirements, resignations and primary election losses mean the next Legislature will have at least 13 new senators and 26 new Assembly members. Also, a record 56 women candidates are running.Q: What’s the expected turnout?
A: State legislative elections seldom draw many voters, so it’s expected to be low. In 2003, the last time all 120 seats were up, 34 percent of voters turned out. In 1999, 31 percent voted. In 1995, 38 percent showed up.Q. What’s on my ballot?
A. The state has 40 legislative districts, each electing two Assembly members and a senator. Click here to find your district.Q. Are there a lot of close races?
A. Most races aren’t expected to be competitive, since most districts favor either Democrats or Republicans.
…
Q. What would have to happen for Democrats to lose control?
A. Republicans need to gain 11 seats to take the Assembly and three to take the Senate. If Republicans gained two Senate seats, the Senate would be split 20-20, as it was in 2002 and 2003.Q. What are the ballot questions I’ve been hearing about?
A. There are four statewide “yes/no” questions that will appear on every ballot. Voters will decide whether to:
— Dedicate all money generated from last year’s sales tax increase to property tax relief.
— Revise language outlining when voting rights can be denied by deleting from the state Constitution the phrase “idiot or insane person” and replacing it with the phrase “person who has been adjudicated by a court of competent jurisdiction to lack the capacity to understand the act of voting.”
— Borrow $200 million for open space preservation.
— Borrow $450 million for stem cell research.Q. When will polls be open?
A. From 6 a.m. to 8 p.m.
From Reuters:
Greenspan, King see more pain for banks, U.S.
Central bankers past and present warned on Tuesday of more pain to come for the U.S. economy and that banks worldwide could take several months yet to reveal their full losses from U.S. subprime mortgage lending.
Former Federal Reserve Chairman Alan Greenspan and billionaire investor George Soros said the downturn in the U.S. housing market had yet to take its full toll on growth.
Bank of England Governor Mervyn King said banks would take some considerable time to flush out total losses related to mass defaults on U.S. mortgages leant to people ill-equipped to pay.
“We have several more months to get through before the banks have revealed all the losses that have occurred, and have taken measures to finance their obligations that result from that, but we’re going in the right direction,” King told the BBC.
From the Hartford Courant:
A Slip, Or A Slump?
Home sales plunged in Connecticut in September by the largest percentage in a year, and the median sale price dropped by several thousand dollars – creating a debate about whether the numbers point to a deepening housing recession.
Sales of single-family homes dropped 22 percent, from 3,051 in September 2006 to 2,386 in September 2007, according to The Warren Group. The 2,386 total was the lowest number in September since 1992, when the state remained mired in its worst slump in decades.
The drop is not by itself alarming, since monthly numbers tend to rise and fall even in a strong market. The drop in September 2006 was 24 percent from the total of one year before. Some industry experts said Monday that the Connecticut market – which is weak – is not showing signs of the sort of sustained drops that other regions have seen.
Still, Monday’s sales numbers – combined with other data – led others to say the picture is getting dangerously worse for home-sellers such as Linda and Erwin Flewelling, who first listed their four-bedroom home in East Hampton for sale late last year.
After several price cuts, the 2,200-square-foot house is now listed for $289,900, down from $369,900.
“I am frustrated. I thought it would sell faster than it has,” Linda Flewelling said Monday.
The median sale price of a single-family house, down across much of the nation, had eked out gains in Connecticut for most of 2007, albeit small ones. Monday’s report showed a drop of 2.6 percent, from $275,000 in September 2006 to $268,000 this September – reversing a trend of five months of gains.
The September decline in sales happened despite interest rates that were flat or slightly down. And it affected houses in all price ranges, the Warren data show.
Other numbers create cause for concern, as well. The number of houses on the market in Greater Hartford was 6,035 in September, up by 9 percent from a year earlier, and up a whopping 45 percent from 2002.
From the Seattle Times:
Investors sue WaMu over appraisals
Washington Mutual, the largest U.S. thrift, was sued Monday by investors claiming the bank sought to inflate real-estate appraisals.
Investors contend in two proposed class-action suits that Seattle-based Washington Mutual improperly exerted pressure on First American’s eAppraiseIT unit to get higher values for homes used as collateral for loans.
New York-based law firm Wolf Popper and San Diego-based Coughlin Stoia Geller Rudman & Robbins said in statements Monday they had filed lawsuits alleging WaMu’s results were boosted by such alleged practices.
From MarketWatch:
Beazer Homes USA to cut 650 jobs, halt dividend, take charge
Beazer Homes USA said after the close on Monday that it’s planning to take a $230 million fourth-quarter non-cash pre-tax charge to abandon land option contracts, to recognize inventory impairments and to record impairments and land option abandonments in joint ventures. It’s cut 650 positions, or 25% of its workforce, and halted its 10-cents a share dividend. Preliminary figures showed home closings down 39% and new home orders down 53% on a 68% cancellation rate. The company is still working to complete restatements.
From MarketWatch:
Hovnanian 4th-quarter deliveries off 19%, contracts off 10%
Hovnanian Enterprises Inc., the Red Bank, N.J., homebuilder, reported that for the fourth quarter ended Oct. 31, it delivered 3,969 homes, 19% fewer than in the year-earlier period. In the quarter, Hovnanian signed contracts on 2,781 homes, down 10% from a year earlier. Tighter mortgage-underwriting standards led to an increase in the quarter’s cancellation rate to 40% from 35%. Contract backlog at Oct. 31 was 5,938 homes, down 30% from a year earlier. The company said that it reduced the debt on its balance sheet by $390 million in the period.
From Bloomberg:
Citigroup’s Stuckey to Run Subprime Unit After Losses
Citigroup Inc. named Richard Stuckey to manage most of its $43 billion of subprime mortgage assets, choosing the same executive who helped unwind Long-Term Capital Management LP’s bad bets nine years ago.
Stuckey, 51, will run the Sub-Prime Portfolio Group, created after the largest U.S. bank by assets said Nov. 4 that it will write down as much as $11 billion of subprime debt and Chief Executive Officer Charles O. “Chuck” Prince III resigned. Stuckey will oversee most of the bank’s securities linked to homeowners with poor credit, according to a memo sent to employees and confirmed by Citigroup spokesman Dan Noonan.
Rescuing the bank’s subprime holdings may be a harder challenge than Long-Term Capital, said Lawrence White, professor of economics at New York University’s Stern School of Business. New York-based Citigroup owns subprime mortgage securities that rarely trade and are hard to value. The Long-Term Capital hedge fund was holding derivatives tied to interest-rate and equities that readily trade.
“The opaqueness as well as the stinkiness are greater,” White said.
Opaqueness I can understand, but stinkiness?
From the Record:
Flooring firm shuts its doors
Monday morning Jodi Riley, payroll manager for the now-closed Hoboken Wood Flooring LLC in Wayne, handed out what paychecks she had left to about 50 employees gathered at its Demarest Drive headquarters and advised them to file claims with the state’s Department of Labor for unpaid wages.
Angry and confused former employees had come to work after more than 100 people were laid off last week in Wayne and at the Pompton Plains warehouse. Notices had gone out last week advising people that their jobs would be terminated in 30 or 60 days. The offices were locked Monday when they arrived.
No one answered the doorbell at the Wayne office on Monday and further attempts to contact senior management through a security guard at the office were unanswered.
The company said it was exempted from the WARN Act — which requires that employees receive 60 days’ notice prior to plant closings or layoffs if the company has 100 or more workers — because it was seeking funding in order to stay open and giving notice would set back opportunities to raise new capital.
…
Sales were down 25 percent each month for the past year, Pryor said, because of the downward spiral in the housing industry, competition from manufacturers shipping directly to retailers, and the company’s push to expand nationally and eventually go public.
“New York City was carrying the majority of the company, and we were selling commercially,” said Pryor. But, he added, “residentially we were dying for a good year. I think we got too large, too quick.”
He said Hoboken Wood Flooring owes more than $50 million to its vendors and the company is taking steps to liquidate $25 million in inventory from the New York and New Jersey locations.
I went to vote in Parsippany at 6:30am, and they told me I was only the 2nd person there. I couldn’t believe it. Well, I hope it’s a good turnout today.
Stinkiness is a very specific FASB reference, used only rarely in describing economic activity devoid of controls.
Stinkiness arises behind closed doors, is characterized by a discernible absence of the flush effect, and increases with the probability of manual bailing of excrement.
Excessive stinkiness leads to temporary fixes, such as pumps and plunges, but always results in fast exits and eventual professional intervention.
the stem cell bill will be interesting.
personally, I’d like to see it pass.
Going to hear the new CEO of Citi speak tomorrow night. should be interesting…
SAS
NJ has extra money for stem cell initiative?
I think we are well “over-bonded”…..
“now listed for $289,900, down from $369,900”
“I am frustrated. I thought it would sell faster than it has,” Linda Flewelling said Monday”
Hey Linda!! You shot for the moon and your not getting what you want. Get over yourself and lower it a little more than just 20%.
sas
It will be more of the same in NJ
Just vote no on the first 3 questions, we just cannot afford any more taxes. I agree stem cell research would be great, but we cannot afford it!
Jim
From Bloomberg:
IndyMac Reports $202.7 Million Loss as Mortgages Sag
IndyMac Bancorp Inc., the second- largest independent U.S. mortgage lender, reported its first loss in more than eight years in the third quarter as the company made fewer loans.
The company lost $202.7 million, or $2.77 a share, compared with a gain of $86.2 million, or $1.19, a year earlier, Pasadena, California-based IndyMac said today in a statement. The average estimate of seven analysts surveyed by Bloomberg was a 46-cent loss, and IndyMac had forecast as much as 50 cents.
IndyMac today cut its dividend in half and said it eliminated more than 1,500 jobs to help weather the worst housing slump in 16 years. The company told investors last March they were confusing its business with purveyors of low-quality mortgages that had the highest default rates.
“While this loss is substantially higher than we had been forecasting, it was clearly not unexpected given the magnitude of the losses being reported by others in our industry,” Chief Executive Officer Michael Perry said in the statement. “We are in the midst of the most severe downturn our industry has experienced in modern times.”
Perry had previously predicted a loss of as much as $36.8 million, or 50 cents a share. He said today the company will reduce the dividend further if IndyMac is unprofitable during the fourth quarter.
http://money.cnn.com/real_estate/foreclosures/
“The peak pain for America’s sub-prime debtors will hit next spring as interest rates jerk upwards with venomous effect on all those “teaser” loans taken out at the height of the property bubble in 2005 and 2006.”
“Suki Mann, a strategist at Société Générale, said the credit markets feared an “Armageddon scenario” once again. “We’re back to pre-September risk-aversion mode,” he said.”
“There will be further write-downs. The liquidity problem of a few months ago has now changed into a capital problem, which is more difficult to solve. Banks have chewed through their capital ratios and this is going to put a brake on lending.” he said.
“Eric Chaney, Morgan Stanley’s euro-zone economist, said there was now a risk of a manufacturing recession in Europe. “Production has fallen off a cliff in Germany and has slowed in The Netherlands, France, and Belgium. Something has happened. We take the warning seriously,” he said.
“Ultimately, the US Federal Reserve can slash rates back to 1pc again – or even to Japanese-style zero rates – if need be. But it cannot re-open the floodgates of liquidity at a time when oil has reached $94 a barrel.”
“Nor can it easily act alone while the dollar is sliding to all-time lows, and risks a rout.”
“The Fed is hemmed in. This is the price America must now pay for mortgaging the nation.”
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/11/06/ccciti106.xml
No Need to Vote: I am out of Here in March 08 – Let the Liberals and Dems run this state into the ground.
Bottom line, the world’s central banks have created a vast pool of s*it. Do that, and all the pigs get dirty. The fed can cut until they are blue in the face. Good Luck. The problem is not interest rates, it’s a cosmic debt and leverage problem. There is a solution. However, there is no architect in DC/G7 available at the moment.
Vote?
For who?
I live in the 34 district. My democratic senator is running unopposed.
The solution is to let whatever damage will happen to happen asap. If you worked for a financial firm that leveraged mortgage debt 10 to 1, then you lose your job. If you are a homeowner who put nothing down because you couldn’t save 20% nor afford a normal fixed mortgage payment, then you lose your house. If you are a bank that wasn’t happy enough with record profits the last 5 years and relaxed lending standards to make even more profit, well you close your bank. If you are a homebuilder who keeps building when inventory is not selling, then you go bankrupt.
This is reality and this is what will eventually occur or is already occurring. The sooner the damage takes place, the sooner the recovery begins.
We can only hope that the next federal administration doesn’t keep trying to bail these rich folk out through more tax breaks on the wealthy. Unfortunately, I doubt that will be the case.
Greenspan: Cut home inventories
(CNNMoney.com) Ex-Fed chairman also says strong management by central banks can help global economies through higher commodity prices.Former Federal Reserve Chairman Alan Greenspan said Tuesday that cutting excess home inventories in the United States is key to stabilize the financial system at home and the rest of the world.”The critical issue on the whole subprime, and by extension, the international financial system rests very narrowly on getting rid of probably 200,000-300,000 excess units in inventory,” Greenspan told a business leaders’ forum videoconference in Tokyo from Washington.
The former Fed chairman urged central banks to avoid suppressing asset bubbles, which is “exceptionally difficult” to do.
Greenspan also said the global economy can handle higher commodity prices through strong monetary policies by central banks and that he expected major increases in commodity demand from rapidly developing nations.
Central banks avoid worldwide inflation by maintaining monetary tightness at appropriate levels, he said.
“I’m concerned that we were moving from this 20- to 18-year disinflationary period and beginning to move in the other direction,” Greenspan said.
Despite crude oil prices being above $90 a barrel, the global economy is still functioning, he said, indicating that the “underlying structure is doing well.”
Greenspan also predicted that the U.S. dollar will fall further against East Asian currencies in the long term if technological innovation boosts productivity, standards of living and therefore growth in the region.
VOTE FOR PEDRO
the stem cell bill will be interesting.
personally, I’d like to see it pass.
I just don’t think NJ taxpayers can afford another $450 million on the state credit card right now. Besides, if it is so promising, why isn’t private venture capital funding it?
I also question the motivation behind funding stem cell research in NJ. Is this really the best use of taxpayer money? Or, is this really just NJ Democrats taking a shot at George Bush at the taxpayer’s expense?
I just can’t take advice from a man named Suck e man.
“Suki Mann, a strategist at Société Générale, said the credit markets feared an “Armageddon scenario” once again. “We’re back to pre-September risk-aversion mode,” he said.”
No Need to Vote: I am out of Here in March 08 – Let the Liberals and Dems run this state into the ground.
Thanks alot. You could at least help out those of us stuck here a little longer.
Where are you headed?
“Or, is this really just NJ Democrats taking a shot at George Bush at the taxpayer’s expense?”
RentingNJ: You are so right. Nothing like taking out a loan to make a point against a lame duck president.
Message to Corzine and the NJ Dems. If you don’t get your act together soon, NJ’s gonna be a red state. Wanna make it happen quicker, pass the stem cell research loan.
any opinions on the open space question?
I was under the impression that property purchased for ‘preservation’ (at least in East Amwell Twn, Hunterdon Cnty where my parents live) cost less over time since taxes generated from new construction only covers ~70% of the money required to handle the additional infrastructure needs.
Therefore the 200M, if spent wisely, would be a smart investment.
about right?
stuw6 #29,
Message to Corzine and the NJ Dems. If you don’t get your act together soon, NJ’s gonna be a red state.
And what is going to be so special about NJ being a red state? Are you implying the NJ GOP doesn’t share the same corrupt proclivities of their Dem colleagues? I’d beg to differ, if so.
According to the Bergen Record, voter turn out is expected to be very light, and with the rain maybe even lighter.
Alos according to the Record, there are no issues out there that are grabbing peoples interest.
If things were different I would have no problem with the 450MM for stem cell research, and the 200MM for open space.
However, with 30 billion in outstanding bonded debt,and a state in financial melt down, I am going to vote no.
“According to the Bergen Record, voter turn out is expected to be very light, and with the rain maybe even lighter.”
3b [32],
Instead, they have decided to take a trip to their local bank and withdraw 100K to put down on a pos cape. They are voting with their wallets.
#33 Bc Bob: you mean one hundred dollars!!!, its all about the leverage.
California put up 2 billion for stem cell research. They are trying to lure away
the biotech and phatma companies in NJ.
This is Corzine’s attempt to keep them here.
Here is the research on the economic benefits for NJ.
http://policy.rutgers.edu/news/press/stemcell.pdf
This cartoon is brutal. Poor Hillary.
http://www.uclick.com/feature/07/11/05/po071105.gif
I am all for stem cell research and open space but now is not the time to drop money we literally don’t have on these initiatives. Stem Cell research at the very least should be funded by private enterprise. Open space $$ is debatable but I think you spend when you have it, not when you don’t.
Do I need anything with me besides my ID to vote? I registered when I moved into the state last year. Thanks
This is Corzine’s attempt to keep them here.
Please.
A report prepared at the request of a governor from a liberal state school that gets it’s funding from a state that wants to see this bill pass.
Since the state is paying for it, they also get to determine the inputs that go into the econometric modeling. The results were predetermined before the report was even written.
Do I need anything with me besides my ID to vote?
That’s about it.
Is buying home today a good investment?
Monday, November 05, 2007
By Dian Hymer
Inman News
Up until the recent slowdown, homeowners in many parts of the country saw the value of their homes rise rapidly. Home prices, in many areas, seemed to move in just one direction: up.
A combination of record-low interest rates and rapid price appreciation turned many homeowners into serial refinancers. When interest rates dropped, one mortgage was exchanged for another, sometimes several times within one year.
As home values rose, cash-out refinances allowed homeowners to pull equity out of their homes to remodel, send children to college, take vacations and buy new cars. It was good for the economy while wiping out billions of dollars of homeowner equity.
Tapping into home equity seemed like a great idea until the housing market softened. Now there are millions of homeowners around the country who can’t sell their home for enough to pay off the loans secured against the property.
HOUSE HUNTING TIP: Buying a home is still a good investment if you can afford it, if you are ready to put down roots in a community, and if you want to invest in your personal happiness. Profit potential shouldn’t be your only reason for buying a home, even though in most cases your home will appreciate in value if you maintain it and if you own it long enough.
The housing market, like any economic market, is cyclical. There are periods of robust activity followed by periods of sluggishness. Prices can go down as well as up. Now that the market has softened in most areas, it’s time to look at owning your home as a way to gain control over your personal domain — not as a source of quick cash.
In the areas that were previously hot, we are unlikely to see such significant home-price appreciation in the near future. So, if you’re considering buying in one of these areas, think in terms of buying for the long term. If your future is uncertain, it might make more sense to rent.
Some niche markets in South Carolina, Idaho, Washington, Texas and Utah are experiencing double-digit home-price appreciation while the country on a whole is suffering a slowdown. If you are buying in such a market, take a lesson from the numerous homeowners who bought using risky mortgages and extinguished their equity through successive refinances.
Pay careful attention to how you finance your home purchase. The cheapest loan possible may be not be the best loan if it requires you to refinance or sell within the next few years. If the market slows and you are no longer earning appreciation on your home, refinancing could be a problem. If the market is soft then, you could have difficulty selling.
One of the best investment strategies is to buy when the market is soft, not when it’s racing forward perhaps toward a peak. It’s also a time when you’ll find the least competition from other buyers, most of whom will wait to buy until the market has already turned.
Don’t forget to consider the tax advantages of home ownership when considering whether home ownership makes sense for you. Generally, property taxes and interest paid on mortgages up to $1 million on your primary residence can be deducted for income-tax purposes. Restrictions apply, so consult your tax adviser before making a move.
The tax advantage of home ownership should not be your sole reason for buying. Owning your own home is a big commitment financially as well as in terms of the time and energy you will spend maintaining and improving your property.
THE CLOSING: In some countries, such as Australia, there is no tax break for owning a home. Nevertheless, people still buy houses there.
Dian Hymer is author of “House Hunting, The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide,” Chronicle Books
Kurt #30 200m on open space if spent WISELY!
This is NJ no such luck after all the politicos get their hands on it.Sorry state of affairs could be a good thing if handled smart & honest.No chance, voted no across the board.
“Do I need anything with me besides my ID to vote?”
Just your EZ Pass. The state has decided to charge us to vote.
Mike 37 I just walked in with my sweats no pockets no problems.
#31 syncmaster:
You are correct. Both parties don’t show any fiscal restraint. This is the only difference:
Dems: Tax and Spend. We pay the bill.
Republicans: Borrow and Spend. Our future generations foot the bill.
We need a third alternative. Socially liberal, but fiscally conservative.
I believe you only need your ID the first time you vote. Subsequent times you don’t need ID, you just sign and they pretend to compare your signature to the one from last time.
Mike NJ #37
I’m voting against all the ballot initiatives because this state is an economic basket case, however, very few ground breaking drugs have come about without government funding and inititative.
I think if it was left to “private enterprise” as you say, all we would get is better erectile dysfunction drugs and new hormone creams for post-menopausal women.
Sometimes it is okay to enrich private enterprise at tax payer’s expense but it’s just that NJ cannot afford it.
We need a third alternative. Socially liberal, but fiscally conservative.
Ron Paul??? Any chance of a third party candidate?
So, let me see if I understand this correctly.
We can afford trillions of dollars in unnecessary and unjustifiable wars attacking innocent countries, but we can not afford to spend money on scientific and medical research that will improve the health well-being of future generations.
Interesting priorities some people have.
I voted no across the board. Wait…. there are some who actually believe government, especially in NJ, spend this allocated money on the actual issue? LMAO!!!! This is NJ kids, it’s called me and my cronies live well off your dime.
Check out post #257 last night,numbers are very bad.But how much of this level 3 stuff do they have to price to market and or be forced to by regulations.Can are MBA’s in area shed any light?
I definitely agree that some things require state funding and if NJ had two nickels (that were not borrowed) to rub together I would be all over it. The fact is that our infrastructure is crumbling around us, our sales tax was just hiked, our property taxes are killing us, our pension funds are massively underfunded and the tax roll is only going to get worse, not better. We are in deep, deep doo doo. Every few hundred million helps.
Have you guys seen the state of the bridges going towards NYC? The concrete is crumbling on most if not all of them. They just look like they have not been touched in 50 years and after what happened in MN I am no longer willing to just trust the govt.
very few ground breaking drugs have come about without government funding and inititative.
I agree, but I also think the next president is likely to back stem cell research (Hillary or Rudy). It passed the House and Senate and Bush, vetoed it. It will be federally funded in the future.
I’d rather be there fighting to get federal dollars funned to NJ, rather than NJ taxpayers paying the whole bill.
Again, NJ’s move is designed to show defiance to Bush. “You won’t support it? Fine! NJ will go it alone and you can’t stop us! We’ll show you!” Unfortunately, it’s at the taxpayer’s expense.
Happy camper 49 So in theory we wasted are money on war so lets give NJ politicos more of are money to misspend.How does that work for you.
Happy Camper,
Interesting connection you created between state expenditures and an executive and legislative branch decision. It allows you to be smug and self-righteous without actually making sense.
Rich
#49
Who said we could afford a war? We can’t.
Hey, while we are spending money on this, we might as well spend it on that right? That is absolute faulty logic and is exactly the type of logic that got us into this financial mess. One thing has nothing to do with the other.
Schwarzenegger orders plan for 10% budget cuts
http://www.latimes.com/news/local/la-me-budget6nov06,0,2564006.story?coll=la-home-center
“The tax advantage of home ownership should not be your sole reason for buying.”
quel insight!
Interesting, from across the pond;
“Credit card firms reject 3m applications”
http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=426002&in_page_id=9&ct=5
“Dems: Tax and Spend. We pay the bill.
Republicans: Borrow and Spend. Our future generations foot the bill.
We need a third alternative. Socially liberal, but fiscally conservative.”
Spot on, AT
Headline on CNN/Money
“Greenspan: Cutting home inventories key to stability”
I’m afraid to read the article, with a pull quote as dumb as that.
“Ex-Fed chairman also says strong management by central banks can help global economies through higher commodity prices.”
We can afford trillions of dollars in unnecessary and unjustifiable wars attacking innocent countries, but we can not afford to spend money on scientific and medical research that will improve the health well-being of future generations.
This is exactly the response NJ Democrats are looking for their political move
I think the war is a terrible waste of human lives and money, but that doesn’t mean it’s a good idea for NJ to go deeper in debt to prove a point to the Bush administration.
NJ has this martyr complex. Oh the feds won’t fund stem cell research? Well then I guess NJ taxpayers will have to carry the weight of the world on their shoulders. Oh, the feds won’t address global warming? Well, NJ will just have to go it alone at the expense to our economy.
“The former Fed chairman urged central banks to avoid suppressing asset bubbles, which is “exceptionally difficult” to do.”
“Have you guys seen the state of the bridges going towards NYC? The concrete is crumbling on most if not all of them. ”
True, Mike. Next time any of you are on the helix on 495 heading down to the Lincoln, have a look at the concrete on the overpass. It’s falling apart in chunks. And if you get stopped in traffic halfway down the helix, you’ll notice that you can feel the entire slab you’re on bouncing up and down whenever a truck goes by in the other direction.
That can’t be good.
“RentinginNJ Says:
November 6th, 2007 at 10:28 am
We need a third alternative. Socially liberal, but fiscally conservative.
Ron Paul??? Any chance of a third party candidate?”
Ron Paul isn’t socially liberal.
He’s certainly a better bet than Giuliani, Romney or McCain, however.
Re Stem Cell Bill,
I’d like to see it pass as in the long run it could bring higher paying jobs back to the state if we can become a research hub in the field.
“property taxes are killing us”
what kind of property tax would you be satisfied with? Would 0$ do it?
My parents house in Hunterdon county is on 3 acres of beutiful land, ~2500sq ft home built in 1982, assessed at $462k, taxes are $8300/year.
I’m looking at moving to Milwaukee, where P.T. on
cut off:
I’m looking at moving to Milwaukee, where P.T. on
Biased article from NY Times telling us to vote yes to all tax increase. They quoted from rating agencies (S&P..) saying that the NJ is in good financial health. It is ok to add more debt, it won’t affect our state’s rating.
I can’t believe the BS coming out of this article.http://www.nytimes.com/2007/11/06/nyregion/06ballot.html?ref=nyregion
CC
arg. Trying to say prop taxes in Milwaukee can be worse than NJ, the supposed “tax hell”
Biased article from NY Times telling us to vote yes to all tax increase. They quoted from rating agencies (S&P..) saying that the NJ is in good financial health. It is ok to add more debt, it won’t affect our state’s rating.
I can’t believe the BS coming out of this article.
http://www.nytimes.com/2007/11/06/nyregion/06ballot.html?ref=nyregion
CC
Anti –
“Dems: Tax and Spend. We pay the bill.
Republicans: Borrow and Spend. Our future generations foot the bill.
We need a third alternative. Socially liberal, but fiscally conservative.”
Bloomberg. Think we can swipe him from NY for a couple of years?
Should we start a pool on what date oil hits $100?
Everybody pick a date!
Did I mention this a couple of weeks ago? We put a sh*tty little deck on the back of my house this past summer. Three weeks ago I received a notice that my property taxes are increasing…. again….. for the third time in six years because of property improvemnents. LOL! Advice for those first time home owners: Be aware that those budget numbers you calculate on paper are nowhere near what your actual monthly payments are going to be. Not even close. Just some advice. It’s sort of like the Quants on the street thinking they had the right models in regard to the current credit and liquidity crisis. Not even close. In fact, they have to run them in reverse they’re so f*cked up. Think of yourself as your own little Quant.
#49..unless, of course, I disagree with both your positions. Imagine that! And I actually think I may be correct. I love America!
For lack of any market pricing, Citigroup used credit ratings as a key input in figuring out the value of the future payments it expected to receive on the securities, according to a person familiar with the bank’s valuation models. For example, in valuing the payments on pieces of subprime-backed CDOs with the highest triple-A rating, the bank would look to how the market was valuing payments on corporate bonds with the same rating.
http://online.wsj.com/article/SB119422328485282002.html?mod=hps_us_mostpop_viewed
saying that the NJ is in good financial health. It is ok to add more debt, it won’t affect our state’s rating.
It will, however, effect my ability to stay in NJ.
“I love America!”
Thanks for clearing that up.
whoa – new format or did something strange happen to my computer?
mikeinwaiting…this opinion has nothing to do with an MBA, but the number of lawsuits being filed on behalf of pension funds against trustees investing in slop has not risen to the legislative breaking point. Soon.
The actuaries haven’t had enough time to spit out thirty different valuations under constantly deteriorating assumptions.
When we see class action/multi party lawsuits on a regular basis, then maybe this guy will try to come up with a plan:
http://en.wikipedia.org/wiki/John_Dugan
OK, here’s proof that Bernanke’s rate cut is directly benefiting me and not the banks. I just got a new Terms of Agreement from by credit card issuer Bank of America. They are increasing my interest rate on cash advances from 19.99% to 24.99%.
I guess BoA is pissed I am a deadbeat…..
http://www.bloomberg.com/apps/news?pid=20601093&sid=acwn8LXocQyg&refer=home
john, I read the article, but I couldn’t find the fuel efficiency information…
#81
Yeah, I just received a letter, too from Bank of America about the rate increases, after already receiving a prior rate increase this past spring. The explanation in their letter made it sound like it was due to my account activity. So I ended up calling them about it, since I have low balance and great credit, and they told me that it was a form letter sent to more than 74 million customers.
One of the choice items is if you’re late on two payments, interest rate shoots past 24% +
The only reason why I don’t close it is because I’m trying to maintain the fico score, and a closed card reduces it.
God help anyone with high balances now on their cards – it’s a nightmare.
sas (12)-
Then you pay the stem cell people. I’d prefer my tax dollar be used to pay basics, rather than to flip the bird at Washington. We’re about to sell the Turnpike; how the hell do we have money to fund this boondoggle?
Besides, all the top stem cell people have long since departed for Singapore. They ain’t coming back.
Let’s take one at a time:
“#54 in theory we wasted are money on war so lets give NJ politicos more of are money to misspend.How does that work for you.”
It will grants “at institutions of higher education and other entities in the State conducting scientific and medical research”. The money is not going to politicos.
“#55 Interesting connection you created between state expenditures and an executive and legislative branch decision.”
Wait, at State level is an EXPENDITURE, but at Executive and Legislative level is a DECISION? Well, and how was the decision of the executive paid for? At least, at the State level I get to chose how my money is spent. I want it spent in scientific research. At the Executive level my FEDERAL taxes were spent attacking other countries.
“#56 Who said we could afford a war? We can’t.”
But then again you passionately argue against spending on scientific research while quietly and complicity supporting the trillions spent on the war that we couldn’t affort.
“63 I think the war is a terrible waste of human lives and money, but that doesn’t mean it’s a good idea for NJ to go deeper in debt to prove a point to the Bush administration.”
Proving a point to the Bush administration? Scientific Research is a sign of mature, intelligent society. The purpose of it is to seek health for humanity. It is not a political issue.
Home prices are fine. Worth over $22 Trillion in total.*
* Under FASB regulations they are currently assessed as Level 3 assets.
(I posted this late last night, for anyone that’s interested-
Here’s a revelation pulled from Roubini’s blog.)
____________________________________________
Monday evening update:
Bernard – a contributor to the comments on this blog has provided further insights and data on the level 3 assets of some major US financial institutions. He says:
Look at the info Citigroup just filed with the SEC today: they have $135 BILLION in LEVEL 3 ASSETS.
I have a neat idea.
Why don’t we take every single major financial institution out there and then divide their total Level 3 assets by their equity capital base and make comparisons?
This will give us a better idea as to which of them may really remain solvent at the end of the day. Shall we?
Let’s have a look at Citigroup. Their equity base is $128 billion. Therefore, their Level 3 assets to equity ratio: 105%
How about Goldman Sachs? Level 3 assets are $72 billion, equity base is $39 billion. Their Level 3 assets to equity ratio is 185%.
Morgan Stanley: $88 billion in Level 3, equity base is $35 billion. Ratio: 251% (WOW!)
Bear Stearns: $20 billion in Level 3, equity base is $13 billion. Ratio: 154%
Lehman Brothers: $35 billion in Level 3, $22 billion in equity. Ratio: 159%
Merrill Lynch: $16 billion in Level 3, $42 billion in equity. Ratio: 38%
Here is the Level 3 assets to equity ratio summary:
Citigroup 105%
Goldman Sachs 185%
Morgan Stanley 251%
Bear Stearns 154%
Lehman Brothers 159%
Merrill Lynch 38%
This becomes very interesting now, doesn’t it?
Looks to me like Goldman Sachs and Morgan Stanley are by far in the WORST situation among the investment banks.
And yet the media is focusing all of their attention on Merrill Lynch—which actually has by far THE LEAST EXPOSURE of all of them. What a joke.
As I said before, the media should stop diverting attention and trying to make this into a “Merrill-specific” problem.
All of the investment banks are in deep trouble. These numbers should make that extremely evident. The deception must be exposed.
Written by Bernard on 2007-11-05 11:33:55
http://www.rgemonitor.com/blog/roubini/224871
looking in ny Says:
November 5th, 2007 at 11:36 pm
So this may explain why Merrill has been one of the few firms to report huge losses:
” it is at least one of the few firms that has come out clean on this valuation game and put only 2% of its assets in the voodoo valuation model bucket; compare that with the 15% put by Goldman or the 13% by Morgan Stanley” (Roubini)
I can’t even fathom what’s coming down the pike.
Kurt (30)-
That’d be about right…were the programs not riddled with corruption and quid pro quo.
Happy Camper #86,
At the Executive level my FEDERAL taxes were spent attacking other countries.
Actually, no. Your taxes were pre-allocated to other activities well before the war started. Note that no appreciable spending cuts occurred under this so-called “republican” administration.
In fact, the war was financed with paper.
Sean (35)-
“California put up 2 billion for stem cell research. They are trying to lure away
the biotech and phatma companies in NJ.”
Trying? They’re already gone.
We live in a fastmoney world. Everything should be fast. Make money fast, lose weight fast, get out of recession fast. Absolutely no level of tolerance/patience especially when it comes to wallstreet. Bernanke is hoping by cutting rates, excess housing inventory will be cleared up the economy will continue its growth trajectory.
#60,
“We need a third alternative. Socially liberal, but fiscally conservative.”
Vote for Ron Paul in 2008
“#60,
“We need a third alternative. Socially liberal, but fiscally conservative.”
Vote for Ron Paul in 2008”
As I noted once already, Ron Paul is not socially liberal (although he’s a far better candidate than Giuliani, Romney or McCain).
I got the BOA letter too. Besides the changes already stated, there is no maximum charge for a cash advance where it used to be capped at $75. So if you are planning on taking 10,000 cash of the card, it’s now a quick $300 in their pocket.
Disclaimer: I make money off the credit card companies. God bless them! I’m going on a cruise in December almost entirely paid for by BOA.
anti (44)-
“We need a third alternative.”
We do. How about:
1. Armed overthrow of the government.
2. All adult citizens are issued one assault weapon.
3. All property owners are required to install some type of security fence/security system.
4. All adults are issued one pit bull.
5. Box cars.
Can’t be worse than what we’ve got.
Theo (46)-
Don’t forget exotic anabolic steroids and blood-doping products.
Clot,
The Lone Ranger was spotted on the Comex floor this morning.
John Says:
November 6th, 2007 at 9:04 am
I just can’t take advice from a man named Suck e man. “Suki Mann, a strategist at Société Générale,”
Douche, it’s pronounced Soo-kee Mahn….
Clotpoll,
These companies aren’t gone. Johnson & Johnson and Merck are still HQed in New Jersey and still have a large research presence here.
What has changed is that New Jersey is capturing very little of the industry’s rapid growth, despite being a hub in a sector where being a hub really matters.
Most of the new biz is going to California and Boston. This is because the brainiacs (both nerdy scientists and rich venture capitalists) who drive this sector want to live in California and Boston, not New Jersey.
The only place in New Jersey with a growing population of rich people and nerds is waterfront Hudson County.
“This is because the brainiacs (both nerdy scientists and rich venture capitalists) who drive this sector want to live in California and Boston, not New Jersey.”
Perhaps the $400 million would be better spent on the Red Sox or the Anaheim Angels then?
The $400 million would be better if it wasn’t borrowed and wasn’t spent at all. I’m gonna vote no on this one.
camper von oblivious (86)-
What planet do you inhabit? Are you bi?
“…It will grants “at institutions of higher education and other entities in the State conducting scientific and medical research”. The money is not going to politicos…”
Higher ups in NJ higher education are completely enmeshed with the politicos. Look at the UMDNJ: one of the most corrupt political sewers anywhere in America.
God, people here are stupid. Seems like everybody just listens to NPR and votes to doom themselves to oblivion.
BC (98)-
Hi ho silver.
#94,
You won’t get a more liberal candidate than Ron Paul in this country.
dream (99)-
Me love you long time.
pret (100)-
“These companies aren’t gone. Johnson & Johnson and Merck are still HQed in New Jersey and still have a large research presence here.”
You’re joking, right? JNJ is a dying ten ton elephant, and Merck can’t really do much of anything until they’ve fought off the latest round of lawsuits.
BTW, JNJ and Merck are getting as much of their operations out of NJ as fast as they can.
Ok, I have a really silly question…don’t yell at me….still pretty young. Last time I voted was for the 2004 presidential election(living in Middlesex county). I now live in Morris county. Can I vote in Morris county or was I suppose to do some new registration for Morris county??? Or it doesn’t matter…just show proof of my address?
Clotpoll,
I think we’re in agreement. I realize that JNJ and MRK aren’t growing here, and I know they’ve been spending a lot of $ to buy companies and build labs in California and Boston. These actions confirm that big pharma knows that they cannot depend on New Jersey talent in order to grow.
By the way, I am a big pharma vet. The companies are dreadfully bureaucratic. They should fire all the middle managers and outsource their tasks. The middle managers in those companies are running their employers into the ground.
BB,
Should be able to go to the local polling booth and fill out a provisional ballot. Show your licence to prove that you belong there.
New Jersey does well to offer this flexibility.
pre – Thank you
Clotpoll,
Lawsuits are just another operating expenses in the pharma biz.
“Frank Says:
November 6th, 2007 at 12:22 pm
#94,
You won’t get a more liberal candidate than Ron Paul in this country.”
I can’t tell if you’re joking…
If you’re not joking, then you should probably have a look at his voting record.
Hell, have a look at his issue positions as thumbnailed on his campaign website.
I like him a lot better than the alternatives on that side of the aisle, but he is not a liberal.
If NJ is going to inject cash into private enterprises, why don’t they just start a VC fund and do it for profit? It would impose some discipline on spending and would be much easier to tell whether it is successful (i.e., should turn a profit).
from the Wall St. Journal Law Blog:
“In another sign that the credit crunch is affecting Big Law, Clifford Chance laid off six associates in its structured-finance area yesterday. The lawyers worked exclusively for S&P assisting in the documentation for rating mortgage-backed securities, a business that’s collapsed. Here’s the NYLJ story.
“We concluded this work just wasn’t coming back,” said John Christian, Clifford Chance’s partner in charge of U.S. personnel committee, to the NYLJ. Severance? One of the lawyers terminated — all were reportedly relatively senior — told Lin they were offered three months’ salary with no bonus.
Christian told the NYLJ that Clifford Chance decided to not reassign the associates because of their relative seniority. The U.K.-based firm has about 260 lawyers in its New York office.
Last week we posted on how the securitization savants at McKee Nelson are encouraging associates to take sabbaticals, change practice groups or leave the firm.”
Skeptic,
Government bureaucrats make horrible VC investors.
First, if they possessed genuine investment savvy, they’d work for a VC firm. Second, politics would play a role and corrupt the investment decisionmaking process.
If the state can’t resist spending $ on this stuff, it should limit its spending to providing infrastructure, rather than transfer cash directly into companies’ bank accounts.
For instance, this infrastructure project seems to have generated some results.
http://www.njtechcentre.com/current_tenants.asp
#117
Well, the state could hire professionals to the run the fund. I know this would never happen in real life because politicians live to reward cronies. So ultimately I agree with you that a state gov’t should not be in the business of funding private enterprise.
But I don’t live in NJ so I should probably butt out.
pret (113)-
Yeah, but lawsuits stifle a pharma company’s desire/ability to grow and are discounted into the stock price.
I’ve always thought a SGP/Merck merger was a natch, but how can that happen in the current environment?
skep (115)-
Maybe Corzine can call the Chicoms and ask them how well the Blackstone thingy worked out…
Proving a point to the Bush administration? Scientific Research is a sign of mature, intelligent society. The purpose of it is to seek health for humanity. It is not a political issue.
Oh really?
Your justification for spending the money is because we wasted a lot of money in Iraq. It’s obviously political. If it’s all about people’s health, then spend money on obesity prevention for school children rather than spending tax dollars on a highly speculative gamble.
The republicans in 2004 did a very effective job in getting out the vote for an unpopular president by putting gay marriage on the ballot in many states and creating a fear that gay marriage would sweep the nation and turn the U.S. into Sodom. While these “family values” voters were in the voting booth anyway, they would vote for Bush. It was a stupid gimmick, but it worked.
The Dems are doing the same thing in NJ with stem cell research. Turnout is expected to be low (risky for incumbents), so they put a polarizing question on the ballot. Many liberal voters who might otherwise stay home tonight, now have an opportunity to “send a message to George Bush” and while they are in the booth anyway, vote democratic.
120
d’oh!
Clotpoll,
“Yeah, but lawsuits stifle a pharma company’s desire/ability to grow and are discounted into the stock price.
I’ve always thought a SGP/Merck merger was a natch, but how can that happen in the current environment?”
The existence of the Vioxx lawsuits won’t kill the chances that Merck merges or is acquired.
There are people out there who estimate the value of these liabilities.
A recent, real estate-related example is when Simon Property Group bought Mills Corp. Mills was the Xanadu developer. The company was being sued right and left by investors, and nobody knows how much these lawsuits will ultimately cost to manage and settle. In addition, Mills hadn’t issued financial statements for more than a year.
Still, Simon was able to get comfortable with the real estate and the lawsuits, and I think they stole Mills.
There is somebody out there who could do this for Merck. But if they didn’t make a move when MRK was trading in the 20s, I doubt they’re going to do anything now.
#86 YES the money will go to schools & state entities to do research.Have you ever worked in a school the waste is out of control.What entities, who will pay off who to get it , give job to relative or money to campaign.This is NJ don’t drink the kool aid.Stem cell research good thing,thinking state gov. will do it right,
fantasy island.
I’ll second njpatient – Ron Paul is not socially liberal in the least, he’s a Texas social conservative.
I actually find a few of his positions rather strange:
Fearmongers on trade relations and the “North American Union”.
When it comes to illegal immigration, he favors closed borders (fine), then says he wouldn’t offer amnesty for those already here but provides no practical solutions. Anger and indignation are all well and good but what about basic problem solving? Are we going to have the National Guard running around arresting everyone who is short dark and Mexican looking?
Obsessed with vitamins and nutritional supplements and control of them by the FDA (brought up more than once on his site) to the extent I get the feeling there is some agenda there.
Social Security – frankly I think he panders here. He doesn’t address the issue of an aging population at all and refuses to even consider raising the eligibility age. He also favors private accounts, and to be honest I envision boomers frittering away the money and then complaining about elderly homeless, insisting on a fix and voting to get money anyway even after they stopped putting it in. I don’t trust Americans to save for retirement at all.
Clot (91)-.
New Jersey had 10,071 biotech jobs in 2006, up from 7,834 in 2003. Add the state’s biotech jobs to its pharmaceutical jobs, and a total of 72,000 people are employed in New Jersey in the business of finding cures for illnesses.
It is better to grow bio and pharma jobs and innovations here that overseas or in another state.
Do you want this area to become another Detroit or Flint, Michigan?
http://www.northjersey.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXk4NDImZmdiZWw3Zjd2cWVlRUV5eTcxNTkwMTEmeXJpcnk3ZjcxN2Y3dnFlZUVFeXky
123 Pretorius, I’d love to engage you on certain topics that I can’t discuss, but on this one, suffice it to say that maybe it would make a difference to deal negotiations if Merck were a month from bankruptcy.
Sean,
No chance of this area becoming like Detroit or Flint.
We are situated in middle of the sea of prosperity that stretches from Boston to Washington.
This is what enables rust belt places like Philadelphia and Rhode Island to stay afloat despite their incompetent politicians and electorates, while Pittsburgh and Michigan die.
lisoosh (125)-
All this Ron Paul hoopla. Same old sh*t, different day. He’s a bum, just like all of them.
Politics is an unseemly activity that stopped attracting the best and brightest about 40 years ago.
Njpatient,
What topics?
By the way I checked MRK’s latest 10-q. $5.2 billion in cash on the balance sheet as of September 30, 2007. Zero chance this company goes bankrupt.
130 pret
I probably wasn’t clear enough, but unfortunately can’t be any clearer.
I am aware that Merck isn’t in danger of bankruptcy. You made a comparison, and I was adding color.
Can’t go much further than that.
sean (126)-
Most of NJ is going to end up looking like Detroit. And the handful of rich people left will live within heavily-guarded gated communities. They will go to Short Hills in armored Humvees, and their lives will be similar to what it’s probably like for the average millionaire who lives in Colombia or Paraguay. As long as you don’t get kidnapped for ransom (which will replace pharma as NJ’s top growth industry), you’ll be fine.
Also, like Detroit, the people in power will still- even then- refuse to recognize the devastation, the need for some degree of restraint and discipline…and join all the other blighted areas of the US, bleating at the public trough for a bigger portion of cold, unsatisfying gruel.
Njpatient,
You work for MRK?
no
pret (130)-
Also zero chance that MRK does anything over the next five years to further distinguish itself or do anything more ambitious than sustain the dividend.
Ron Paul?
OMG…the day has come when a kook with a hidden agenda gains traction as a serious “alternative” candidate.
I’m seriously considering moving to Costa Rica.
Ron Paul.
Ross Perot, except no brains and no money.
I agree that Paul seems looney.
I actually think that next year’s election offers the best opportunity to get a fiscally conservative/socially liberal president in thirty years. Just look at the frontrunner republicans
“best opportunity to get a fiscally conservative/socially liberal president in thirty years. Just look at the frontrunner republicans”
?
McCain is arguably fiscally conservative, but is also socially conservative.
Giuliani is arguably socially liberal (“arguably” in the sense that, if you said he was, he’d argue with you), but he’s about as fiscally conservative as President Bush.
Romney? He’s whatever is convenient.
Speaking of MRK and real estate, how much shareholder value did they destroy when they built that hexagonal HQ complex?
It cost about $400 million to build. Probably worth less than $200 million today.
AT&T sold its nearby HQ to Pharmacia for $200 million in 2002. 3 years later, Pharmacia sold it to Verizon for $125 million. That is the best comp I can find.
Never underestimate the ability of big pharma to find ways to destroy value.
Rudy: Pro gun control, not against gay marriage or abortion. Remains to be seen whether his really hawkish views would turn off moderates, I think.
Romney: His record is at odds with his recent rhetoric, obviously. I would expect him to run on his record (which is moderate) if he gets the nomination. State sponsored health care would be a big plus for him against Hillary.
Both of these guys are way more liberal than W.
Citigroup SIVs Draw $7.6 Billion of Emergency Funds (Update1)
By Neil Unmack and Jody Shenn
Nov. 6 (Bloomberg) — Citigroup Inc., the largest U.S. bank by assets, provided $7.6 billion of emergency financing to the seven structured investment vehicles it runs after they were unable to repay maturing debt.
The SIVs drew on the $10 billion of so-called committed liquidity provided by Citigroup, according to a Securities and Exchange Commission filing yesterday.
Citigroup’s disclosure came a day after it announced as much as $11 billion of debt writedowns linked to U.S. subprime mortgages, and the resignation of Chief Executive Officer Charles O. “Chuck” Prince III. The New York-based bank also said in the SEC filing that the amount of securities it owns that are considered hardest to value, known as Level 3 assets, rose 42 percent in the third quarter to $135 billion.
“This company, if it were any other company, would probably be considered to be operating in an unsafe and unsound condition,” said Josh Rosner, managing director at New York- based investment research firm Graham Fisher & Co.
SIVs sell commercial paper to buy longer term assets such as mortgage or bank bonds. Citigroup SIVs have no direct investments in subprime assets and $70 million of “indirect exposure” through collateralized debt obligations, or bonds that package debt, according to the filing.
Avoiding Fire Sale
“The current lack of liquidity in the asset-backed commercial paper market,” Citigroup said, “put significant pressure on the ability of all SIVs, including the Citi-advised SIVs, to refinance maturing commercial paper.” The liquidity line is provided at “arm’s length commercial terms,” the statement said.
Citigroup won’t consolidate the assets of the SIVs on its balance sheet, according to the filing.
Citigroup created the first SIV in 1988 and is the largest manager of the companies. The bank, along with JPMorgan Chase & Co. and Bank of America Corp., agreed last month to start an $80 billion fund to help SIVs avoid dumping their $320 billion of holdings at fire sale prices and further roiling credit markets.
Citigroup fell $1.16, or 3.23 percent, to $34.74 at 12:30 p.m. in New York Stock Exchange composite trading, after declining 4.9 percent yesterday. The stock had dropped more than 35 percent this year before today. Only National City Corp. and Washington Mutual Inc. had posted bigger losses of the 24 companies in the KBW Banks Index.
LTCM Experience
Credit-default swaps tied to Citigroup bonds traded at the highest level in at least five years yesterday, suggesting investor confidence is eroding. The contracts, used to speculate on a borrower’s ability to repay debt, rise as the perception of credit quality deteriorates. The contracts fell 5 basis points to 67 basis points today, according to Phoenix Partners Group in New York.
Citigroup named Richard Stuckey, 51, to manage most of its $43 billion of subprime mortgage assets, the same executive who helped unwind hedge fund Long-Term Capital Management LP’s bad bets nine years ago.
Investors are refusing to buy commercial paper, loans due in 270 days or less, from some SIVs because they are concerned about the value of the mortgage securities, asset-backed debt and finance company bonds they own.
U.S. asset-backed commercial paper shrank for 12 straight weeks to a seasonally adjusted $874.7 billion last week, the lowest since April 2006, according to the Federal Reserve in Washington.
Citigroup’s SIVs sold $19 billion of assets between July and the end of September, reducing their assets to $83 billion from just over $100 billion, according to the filing. About 98 percent of the companies’ assets are fully funded through the end of 2007, the filing said.
Citigroup said it doesn’t own any of the SIVs’ capital notes, which rank below the senior commercial paper and first in line for losses.
To contact the reporter on this story: Neil Unmack in London at nunmack@bloomberg.net
Last Updated: November 6, 2007 12:51 EST
Reply With Quote
An alternative to Ron Paul is Hillary, you pick the looney one.
“Both of these guys are way more liberal than W.”
that’s like being way better looking that Rosie O’Donnell.
Hillary isn’t my favorite either, but I wouldn’t describe her as looney (and neither would most of Wall Street and a host of conservatives who are sending her money).
I work for a big pharma and they are done with growing operations in NJ. Layoffs are coming soon. It makes no sense to grow in an area that’s hostile to business. Plus how will big pharma lure people to a high-cost location without loosening the purse strings?
Do you need to be registered to vote today?
I never got around to do it. Do you think they will cut me some slack?
#144
funny, but you’ve got to admit that it is pretty surprising that Rudy and Romney are the frontrunners given how conservative the GOP has become in recent years. It is interesting to me that the party seems to be moving to the center just as the Democrats are moving left.
#146 I am not a fan of either Hillary or Rudy, but if it comes down to it, and it is bewteen Hillary & Rudy, what does one do.
Sit this election out? Hold you nose and pick one?
Indymac estimating price declines of 8-10% for NJ…
From Calculated Risk:
http://calculatedrisk.blogspot.com/2007/11/indymac-house-price-forecasts.html
I am pro-Rudy, any man who takes a third wife is one heck of a a positive thinking guy.
Of course if Hillary wins I can picture big bill out in the rose garden in a dress snacking on a big mac doing his first lady things and that should be good for a laugh.
This Ron Paul guy is too smart to be President, he will be laughed out of DC with all his practical and sound advice, BORING>
Jmacdaddio,
When nerds who invent new medicines decide where to live, cost of living and compensation are only small parts of the equation.
They want to live in places where there are networks of similar professionals and neighborhoods with personality.
Only place in New Jersey that meets these requirements (here I go again) Hudson County. It is close enough to New York to be part of its knowledge network. And Hudson County neighborhoods, like Boston and San Francisco, retain some personality, such as walkability and preponderence of locally owned restaurants and shops.
Probably would make some sense for NJ to target northwest Hoboken for science research facilities. But the condo guys already control that part of town.
I acknowledge that Cary, NC, has done well without fitting perfectly into these parameters.
Furthermore, if a sophisticated and leading residential real broker and former president of the National Association of Realtors can’t accurately price and sell his own home, then how can any member Realtor be trusted to “evaluate your situation?”
http://paper-money.blogspot.com/2007/11/realtors-follies-slight-return.html
This is funny. NAR president has a empty home on the market for over 700 days and it never accurred to him that he should lower the price!!!
NJ has the highest rate of autistic children in the US, how come that is barely mentioned anywhere as a reason not to live in NJ. Something like 1 in a 100 in NJ.
njpatient Says:
November 6th, 2007 at 2:10 pm
Hillary isn’t my favorite either, but I wouldn’t describe her as looney (and neither would most of Wall Street and a host of conservatives who are sending her money).
Starting off by giving every kid that’s born a $5000 gift and a 401k ACCOUNT.
this is lunacy. we are not entitled to anything. make your own life and stop asking the gov’t for a handout.
Awesome Story about a high end Realtor who can’t seel his own house. On the market for 766 days. LOL
http://www.cnbc.com/id/21656207
I like Ron Paul.
I’m sticking to my guns on the stem cell bill (take away the money from the homeboys in Newark and Camden).
$100 oil in the next 2 weeks. Just like I’ve predict back in the summer (damn I’m good).
NJ will never be Flint, Michigan. But the hoo-raa days are over for NJ.
Corzine is still a damn crook!
SAS
“And Hudson County neighborhoods, like Boston and San Francisco, retain some personality, such as walkability and preponderence of locally owned restaurants and shops.”
Like Boston? The closest Hudson County will ever get to Boston is Bob Stanley.
Let’s compare the stroll; Newbury St [east] to the Commons to Back Bay to Faneuil Hall to the North End. Newbury St [west] to Fenway. Are you freaking kidding me comparing Hudson County, walkability, to Beantown? Washington Ave, Hoboken to downtown Boston? Has the whole world gone crazy.
http://www.faneuilhallmarketplace.com/
Clot,
Regarding NJ turning into Columbia, I love the comparison. As long as the rules of engagement do not apply to me the same way they don’t apply to Blackwater I am OK with that. I just need some armor for my Outlook and some smaller rifles for the kiddies. “Just start shooting if anyone comes near the car kids” “Aim to kill, not wound”
speaking of EZ pass….
I;ve always wondering why they don’t give out speeding tickets to speeders through that system??
The EZ pass system can easily calculate the avg speed ot takes a person to get from point A to point B via the time they go through the scanners…. if the avg speed is 10 or more mph…. bamn… speeding ticket for you.
It would really help reduce accidents, and it would cash in on alot of speeders, less cops on roads were they can actually focus on other things??
or is this state not serious about reducing traffic accidents, speeding laws are a mere joke, and the cops are afraid of their jobs?
What say you?
SAS
I wrote that Hudson County was walkable, not that it was fancy.
Walkable means that you can get to places by walking. You can do that in Hudson County.
160
good idea.
At the very least you’d catch folks like the two loons who went past me on 78 last month at what could not possibly have been less than 120 mph.
#160 – they tried to do that, it’s considered self-incrimination and it’s illegal.
sas [160],
They do. My friend got a ticket. However, that was a few years ago. Not sure if the same is done today.
BC Bob,
Newbury St., Boston; Sip Avenue, Jersey City…. A PERFECT MATCH!!! LOL!!! This kid is killing me!
#160: Statistically, people who drive 5 – 10 mph over the speed limit cause less accidents then those who drive at or below the speed limit.
it isn’t the people who drive 5-10 mph over the limit that cause the accidents. It is the people who drive under the speed limit, clog up the left lane, and not pay attention to driving which cause accidents and road rage.
Renting: You’re just not making sense, which is weird for you. NJ has a long history as a center for medical innovation. Corzine is looking to send a signal that NJ isn’t going to give up on Pharma without a fight.
I agree it’s largely a symbolic gesture, and at an incredibly high price. Which, of course, we cannot afford to pay this year.
But to declare categorically that NJ is just trying to put the thumb in Bush’s eye is kinda deranged.
#157: Do you actually think money will be taken away from Newark and Camden in lieu of stem cell research?
BCBob:
Yes, Hoboken is NOTHING like, well, a big mall:
http://www.faneuilhallmarketplace.com/shopping.html
;)
“they tried to do that, it’s considered self-incrimination and it’s illegal”
horse dung. I’ll try telling that to the police next ticket I get.
SAS
“Statistically, people who drive 5 – 10 mph over the speed limit cause less accidents then those who drive at or below the speed limit”
survey says… nope. no way
I am not buying that one until you show the stats. All stats I’ve seen over the limits.
If that was the case, why have limits?
SAS
170 have you gotten tickets through EZ pass? you should complain, they can’t do that.
“Do you actually think money will be taken away from Newark and Camden in lieu of stem cell research?”
No. But I wish they would. I would rather see tax money go to something that could possibly be an investment.
Rather than a sure waste of money, going to the blokes who suck off the breast of the govt, and give nothing back.. other than crime.
yup.
SAS
#171: The whole 55 mph speed limit was actually put in place to save gas. Do you honestly think that the people who drive 60 in a 50 zone are the ones causing the accidents? The extreme drivers are the ones causing the accidents.
Driving 90 in a 50 = extreme
Driving 40 in a 50 = extreme
Not paying attention to the road = extreme
HOV stock trading in single digits; has come full circle to January 2002 levels.
Time to start a hair-gel contribution fund for Ara?
While on this idea, think about how many lives would be saved if all cars were incapable of going over 65 mph? or maybe have some kind of sensor on our cars which links electronically to the roadway so we can’t exceed the maximum speed? I can see that happening in California and California Jr. (NJ)
158 ..its not worth the money they are asking for..very simple!!!!Maybe they dont read the news???
#154 John
“NJ has the highest rate of autistic children in the US, how come that is barely mentioned anywhere as a reason not to live in NJ. Something like 1 in a 100 in NJ.”
That’s because NJ leads the country in diagnosing autisic children earlier and provides the best level of services in the country. So the numbers will be higher.
The suspected link between Autism and childhood vacination is a nice segway from todays topic du jour.
All – Please read, looking for advice.
Can anyone make sense of this. I put in a 20% below listing “lowball” on a property last month. The selling agent got back to me today and wanted to work something out. Big Surprise this is the 4th time in the past 6 months this has happened.
Anyway, they want me to work with my lender to find the iRate at which the monthly payment would be the same as if I paid 10K below their asking price and about 25-35K higher than my original bid. What the buyer will do is buy the points to get the payment at the same price. Can anyone tell me why this would be better or worse?
Note: First, I plan on staying in the home for more than 7 years, probably longer. And obviously I know my total debt will be greater, but I would pay it down quicker with less money going towards interest.
Thanks for everyone’s help.
#178: Here is a fun fact: If your kid is austistic you get $$$. There are many parents who push for the austistic classification to get $$$
Question for realtors out there:
My friend has a simple website for his realty office. It’s tied in to the national office’s site, with sortable listings and the basic stuff.
Now he’s looking to upgrade.
Has anyone tried one of the offerings from a dedicated real estate web provider like Screen Dreamer?
#176 tbw: AS a former River Edge resident, you might like to know that today’s Mayoral election is shaping up to be the nastiest that i can remember.
Lots of accusations and recrimiantions,and ugly comments on both sides. I have never seen it so ugly.
#182: I wonder if Watkins will be re-elected? What do you think?
A report prepared at the request of a governor from a liberal state school
I’d imagine in your world, every state school is liberal…
TJ,
Put your offer in writing. Write at the top that your offer is not contigent on the sale of another property. Transfer $ around your accounts so that you have an amount equating to 20% of your bid in your checking account, and attach this checking account statement to your offer letter.
Tell the broker in a serious voice that you understand the seller was hoping for more, but that you want her to know that you will buy the place if your offer is accepted.
That should work. Don’t bother with the financial shenanigans.
#158 BC Bob: Why do you bother?Its not worth it.
#182 tbw : I think she will, but it will be very close. There is lots and lots of thing going on in RE. The town has changed int eh last few yera, we seem to have a nastier and more self centered element that has set itself up as the guardian of all things RE, for now, and int he future.
#187: Yes, I definately see that culture there…which is why I am liking South Bergen County so far.
#189 And if you do not subscribe to the notions that these people subscribe to, you are anti River Edge.
Pre [161],
Comparing that walk to Beantown is totally absurd.
3b: I hope they enjoy their McMansions built upon crawl space dutch basements with water issues and pressboard cabinets. How classy!
“thatBIGwindow Says:
November 6th, 2007 at 2:48 pm
#160: Statistically, people who drive 5 – 10 mph over the speed limit cause less accidents then those who drive at or below the speed limit.”
I’d love to see those statistics. Do you have a citation?
“Starting off by giving every kid that’s born a $5000 gift”
Hillary, how about also giving the parent the option to buy a flat-screen TV for the kids room with the $5K so that they can watch Baby Einstein?
I’d rather throw it into a variable annuity (I can feel some heads rolling)…… tax-deferred gains for 65 years with a 10% average annual gain gives the kid a shot to retire a millionaire…atleast in nominal terms.
#192: Doesn’t statistics depend on who is conducting the survey? You can think Senior Citizens are the safest drivers and find that AARP thinks so too!
“HOV stock trading in single digits; has come full circle to January 2002 levels.”
Hey bi, how much did you lose buying in at $16?
#172 lurker – it may be that they wrote it into the law so that people would not be discouraged from using EZ-Pass (I have no idea if this is the case, but it’s possible). Is that what you mean? It’s certainly not unconstitutional (state or fed) and “self incrimination” has absolutely nothing to do with it.
#180 thatBIGwindow
Here is a fun fact: If you have a kid you get $$$. There are many people who get pregnant and have kids just to get $$$
Re: NJ being a leader in services to autistic kids
A co-worker’s husband is stationed at Fort Dix. They have an autistic child. The family is in New Jersey because of a list that the military maintains of postings at which appropriate services for special needs children are available. New Jersey’s generous public schools brought them here.
#191 tbw I Think the McMansion era is over in RE, there are 15 or more rotting on the market fro months now, with another 3 that I am aware of in theh process of being built.
Only now are people begining to realiz that prices are dropping. There are over 50 hosues for sale right now, and still coming on the market (as of last Friday).
We went from being one of the lowest taxed towns in BC, to one of the highest.
We still have the situation with Oradell (River Dell), they are now taking their case to court, and the RE beat goes on!!!
SAS [160]:
Lowering speed limits do not lower the number of accidents. It does reduce the severity of accidents though.
http://epg.modot.mo.gov/index.php?title=949.2_Prevailing_Speed_Determination
Pret,
Thanks for the advice. I think the selling agent knows I am serious as all of those things that you have mentioned have been stipulated in the offer, accept for the 20%. I am doing 10% and have decided to purchase both of my cars outright and run them to the ground. Anyway, I believe the problem is with the seller. This is the 3rd selling agent. The owner has since moved out of the home. It has been sitting unoccupied for 3 months. I think they are banking on this money for retirement as they are at that age. Extremely stubborn.
There are many people who get pregnant and have kids just to get $$$
‘Get money’?
I’m doing something wrong…
Lies! We need to punish those who drive normally with hefty fines and violation points.
Long live the rubbernecking, text messaging, non-blinker using, makeup applicating, highway hogs!!
NJ being a leader in services to autistic kids
My coworker showed me his kid’s school picture. The extra teacher in the picture was for the one autistic child in the class.
Is that standard, one teacher per autistic student?
Whats the purpose of Speed limit and seat belt laws if our own Governer and State Trooper don’t follow it.
TJ,
You can always refinance your house but you can never refinance away the price you paid. That seller is playing games with you. For all you know the rates will go down anyway over the next year. I would guess no one has actually stepped up with a firmer offer so hold strong, you are in a position of power. Do your best to keep it civil so as not to PO the seller and stick to your guns. If all else fails, bust out the “That was my offer last month, prices are falling, this month I am offering 23% off list”
203 – are you sure that’s what it was for? if there are any classified kids in a class, the teacher has an in-class support, it’s not one per student, it’s one per class.
#204: Laws don’t apply to those in power
TJ,
Sounds like your position has become stronger.
If you can show that you have the $ for a 20% downpayment, then you should feel free to state in the offer letter that you can make a 20% downpayment.
The seller won’t know the difference unless she reads the settlement statement right before the closing ceremony. And by that point she doesn’t care about the amount of your downpayment – she just wants to close.
it’s not one per student, it’s one per class.
That could be it.
With the rate of occurrence, is that distinction meaningful?
As for using the EZ pass toll time stamps to determine speeding tickets…The day someone does this, will be the last day anyone uses EZ-pass. I’ve read that the total cost for the EZ-Pass install for the GSP and the NJTP was > $500,000,000. The state expected to get this money back through tickets issued for speeding through the tolls (not between toll plazas). When the state tried to collect all of the $25 fines, the cost of collecting the fines was greater than the $25 they would have collected. Now they are charging every EZ-Pass user $1 per month to defray the install costs. Perhaps it was not necessary to pay for every single toll lane to be EZ-Pass equipped as they use less than a third of the lanes for EZ-Pass customers.
It appears anytime you let these pension collectors in our government handle anything, it turns to crap. Especially here in NJ.
#204 He is not our Governor. He is our Comrade, or Commissar. Please refer to him buy one or the other of his correct titles.
#209
Some autistic children (depending on the severity) have aides to stay with them throughout the day. Without an aide, the teacher would not be able to spend enough time teaching. The aides are able to keep the kids on track, help control outbursts, help with interpersonal relations, etc.
I don’t use EZ Pass…for the simple reason I don’t need big brother to know where I’m driving and when. If he really wants to know, replay the tapes recording for cars that pay cash and scanning for my registration. I bet they already do that…
njpatient Says:
“McCain is arguably fiscally conservative, but is also socially conservative.
Giuliani is arguably socially liberal (”arguably” in the sense that, if you said he was, he’d argue with you), but he’s about as fiscally conservative as President Bush.
Romney? He’s whatever is convenient.”
I’ll add in – McCain has made himself irrelevant by cosying up to Bush, agreeing with Iraq and alienating his base. No more Straight Talk.
Guliani is a whack job obsessed with 9/11. No wonder because 9/11 acted to distract from what a freak show he had become – even the fact that his emergency preparedness was lousy. And his defence advisors are more neo-conny than Cheney. These are guys who would happily start WWIII on a dare.
Mitt Romney actually comes across as normal by comparison but is a flip floppy career polititian.
Anyway the President is only part of the problem, the rest is the Senate and Congress. And while plenty blame liberal tax and spending, the red state “suck at the teat of government with corporate welfare all the while proclaiming our independance and rugged individuality” schtick is no better. And lets not even get into the crowd who vote for whoever spends more energy policing peoples bedrooms and blood veins.
End Rant.
#210: “As for using the EZ pass toll time stamps to determine speeding tickets…The day someone does this, will be the last day anyone uses EZ-pass”
I disagree, there are people who post on this very board who are in favor of it.
#210
We don’t have EZ Pass but I was wondering if we bought it in another state, we wouldn’t have to pay the $1/month surcharge. I know my cousin got his in Delaware and doesn’t pay $1/monthand we could easily go up the Thruway to get one.
Pret/Mike,
The funniest part about this is that I now think that most Realtor’s who do not have a brain of their own go to the same sales school.
I kid you not, this agent and 2 other separate selling agents (from other homes I have bid on) have told me that other offers have come in for the property, some better than mine, but all lowballs. However, I am the most qualified (No house to sell, strong mortgage qualification, etc.) Wow, that makes me feel all warm and special inside.
I do not understand why, if I am the prime buying candidate, that I have to pay the same or more than other bidders. Doesn’t a prime candidate command a discount? I love how they try to convolute my logic by making me feel all warm and fuzzy.
Here is a even crazier fact, if you don’t have an autistic or special needs kid in your kid’s elementary school class it is an indicator your kid is not that smart. In some school districts if you have a special needs kid main streamed the class gets one extra teacher. However, special needs kids eat a lot of time away from other students, so the regular students in the class are picked from the kids who are the better students. Don’t want any plain old dumb kids eating up too much time. So then they lump all the middle of the road kids together and spread out the plain old dumb kids to make up the regular non-special needs class.
Now we also have this crazy thing happening that people would rather have their plain old lazy/stupid/ADD/Hyperactive kids labeled autistic cause it gets them and the school district lots of extra attention and money. So we appear to have clusters of autistic students, that plus people shopping school districts to get ones that cater to autistic school kids are wrecking havoc on charting this.
My district is well known for being a good one for special needs kids. In the last two years yellow street signs have popped up that says slow down autistic child but my wife knows all the newborns in neighborhood so a lot of the signs are for people who moved in with autistic kids. I wish the town would give me a big yellow sign for in front of my house for the speeders that says SLOW DOWN, CRANKY MAN> But I dont think it will fly.
40 years ago a 99 cent ruler and a mean old nun fixed those kids wagons – today it takes a village.
thatBIGwindow Says:
November 6th, 2007 at 3:02 pm
#178: Here is a fun fact: If your kid is austistic you get $$$. There are many parents who push for the austistic classification to get $$$
#216,
I got my PA Ezpass, and I don’t pay the $1 surcharge.
TJ, you would also have less of a mortgage interest deduction. I wonder why the seller would want to do that? Maybe they have multiple properties and are trying to keep the comps up?
As for using the EZ pass toll time stamps to determine speeding tickets…The day someone does this, will be the last day anyone uses EZ-pass.
I asked this question when I signed up. They told me “not as of this time”. I told them if the policy changed, I would mail it back to them.
While I don’t speed excessively (a few miles over…I keep up with traffic), I’m not going to Velcro an electronic traffic cop to my windshield waiting to write me a ticket.
Where will the cutoff be? Will I get a ticket if I average 67 in a 65? Will it be random or will everyone get tickets? Will it depend on how much revenue the state needs?
Why put myself in this position if I don’t have to?
203 -In my kids school, and in surrounding districts, there is one class that is integrated with high functioning “special needs” kids as well as regular kids. Instead of 1 teacher and 2 aides, they have 1 regular teacher,1 special ed teacher and 1 aid. In these schools it is only the high functioning ones who are integrated, the ones who would require too much help are in the special class. Some are really bad, and I live in a district which has a high level of assistance for autistic kids so some families move here specifically for that reason.
Suppose it depends on the district.
#216,
I have already switched 3 times to avoid the fee, but the new authority I would get my new account from always instituted the $1 fee shortly afterwards. I have officially given up. I guess paying $1 a month is worth it to me to save the state money (original reason for the creation of automated toll collection lanes).
This world is so effed!
EZPass should be the least of most people’s concerns. How about focussing on car insurance premiums? That’s where the scamming is…. who in here has not had a double digit increase in recent premiums?
#216
I don’t think you can just buy an ezpass from another state. It depends upon your registration. I kept receiving notices from EZ when I had NJ tags on my car while having a preexisting NY ezpass account. They must photograph your plate and compare it to the characteristics of your account.
#217 TJ The other agents ar probably playing you. It hey do noto meet your terms, walk away.
TJ,
The seller is stupid. You can’t change that.
But you still might be able to persuade her to accept your offer. Put your strong offer in writing and be firm, genuine, and polite when you tell her agent that you will buy the house if she accepts your offer.
We have one special needs kid in around 50% of classes and each class gets two full time teachers when they have one. If you count every type of special needs you are going to get them in almost 1/50 kids so you have a boondoggle of money for hiring new teachers if you spread them out.
Bottom line, it is very difficult to say which offer is better unless it is cash. After all you are factoring in taking a lower price for a higher credit score and the higher probability the deal will close. However, the buyer that has the less chance of closing that will pay more may work out better for the buyer.
I have one or two houses in my neighborhood that is offering a discount for 30 day closes.
pretorius Says:
November 6th, 2007 at 4:14 pm
TJ,
The seller is stupid. You can’t change that.
But you still might be able to persuade her to accept your offer. Put your strong offer in writing and be firm, genuine, and polite when you tell her agent that you will buy the house if she accepts your offer
“I’m not going to Velcro an electronic traffic cop to my windshield waiting to write me a ticket.”
Why not? Think of the lives this would save!
Born in hoboken grew up in hudson county, except for hoboken & new places along river its low life central.Mom still there in our house you do not want to look out window to see the people passing by.No place to raise kids thats for sure,pay for private school anyone.Gangs ,crime & dirty looking.Just lets not say hudson county its hoboken & water front the rest is crap.Then maybe you have a case.
Level III I-bank holdings from Minyanville:
http://www.minyanville.com/articles/MER-GS-C-BSC-ms/index/a/14774
“I’m not going to Velcro an electronic traffic cop to my windshield waiting to write me a ticket.”
Why not? Think of the lives this would save!
I personally don’t need that to drive in a safe manner. I have no tickets or accidents. I spend 10 years on a fire department company that did Jaws of Life calls, so I have see the results of reckless driving up close and personal. If an ez-pass style electronic traffic monitor is required by law one day, I will comply. But until then, why voluntarily subject myself to additional enforcement? Will I get a break on my insurance? Maybe I’ll think about it then, otherwise its additional risk to me with no benefit.
My fear is that an “electronic traffic cop” would start as a public safety mechanism and quickly transition into nothing more than a revenue generator. If you have ever spent time in a city, for example, you know that aggressive parking enforcement seldom has to do with the flow of traffic and maintaining order and everything to do with making money. Traffic cameras in Washington DC have led to lots of revenue collection, but no reduction in accidents.
Guys,
The $1/month surcharge was discontinued a while ago for EZ Pass (in New York State at least). Joe Bruno had it removed on a bill. I went ballistic when I realized they were charging this fee but before I had the chance to cancel the account I heard about the repeal. I have no idea about NJ though.
Charging a monthly fee for something that saves taxpayer money (or at least should) is ridiculous in my opinion. Any toll discount is nice but I love the fact that it just makes the whole toll process easier. Now they have the new EZ Pass toll stations where you can drive through at full speed without going through a toll and I love it. I guess it is a little big brother, but I have nothing to hide and it I will give up some liberty to not have to wait in line at a toll.
What the buyer will do is buy the points to get the payment at the same price. Can anyone tell me why this would be better or worse?
For the seller, buying points is less costly than accepting a reduction in price. For example, on a $300k loan @ 6%, 1 point would cost $3,000, but would allow you to spend $4,000 more dollars for the same monthly payment.
If you are willing to spend $300k, but the buyer “needs” you to come up by $25k, he can buy 5 points for you and you will make the same payment as if you only borrowed $300k. It will cost him $18k but he got $25k from you, so he nets $307k instead of $300k.
I agree with Pret. I would politely decline and reiterate your original offer. Don’t bother with the financial shenanigans.
If you want to buy points, do it yourself and you keep the savings in your own pocket. This buyer will limit you in the future if you need to sell.
Renting,
I really appreciate the break down. And I did feel like this is financial shenanigans in some way.
Oh, just got a call, I think they might accept my original offer, however, they would like to remove some items from the house. Geez, what are they going to do, hawk the items to make up the difference.
I will keep you updated.
Autism & Fetal Sonagrams;
Daily Record: “Assemblyman Joe Pennacchio, R-Montville, introduced legislation Monday that would direct the state Department of Health to investigate the possible relationship of sonograms to the increased incidences of autism. Pennacchio’s bill, A-3669 also directs the Commissioner of Health to work in conjunction with various medical groups to begin to develop a protocol for the usage of sonograms on expectant mothers.
Hey if the JETS can charge $50 a year to be on a wait list I guess anything goes in NJ>
Charging a monthly fee for something that saves taxpayer money (or at least should) is ridiculous in my opinion. Any toll discount is nice but I love the fact that it just makes the whole toll process easier. Now they have the new EZ Pass toll stations where you can drive through at full speed without going through a toll and I love it. I guess it is a little big brother, but I have nothing to hide and it I will give up some liberty to not have to wait in line at a toll.
RentinginNJ Says:
November 6th, 2007 at 9:11 am
No Need to Vote: I am out of Here in March 08 – Let the Liberals and Dems run this state into the ground.
Thanks alot. You could at least help out those of us stuck here a little longer.
Where are you headed?
New Hampshire , We only make 100k a year, and leaving because of the out of control property taxes. New Jersey used to be a land of opportunity, It just doesnt seemed that way anymore.
#239
NH is awesome. Your quality of life should improve drastically. Congrats.
We only make 100k a year
I know what you mean. How crazy have things gotten when making $100k isn’t good enough anymore? Not long ago, this was a comfortably middle-class salary.
Good luck in N.H. I was there a few weeks ago. It a beautiful state.
Stem cell defeated. Sanity prevails.
Ron Paul: Patriotism (Who are the Patriots?) 1 of 3
http://www.youtube.com/watch?v=cfEOn_zeAiE&feature=PlayList&p=0B883B30688A5942&index=0&playnext=1
RentinginNJ Says:
November 6th, 2007 at 10:13 pm
We only make 100k a year
I know what you mean. How crazy have things gotten when making $100k isn’t good enough anymore? Not long ago, this was a comfortably middle-class salary.
Good luck in N.H. I was there a few weeks ago. It a beautiful state.
It is sad about NJ – unless you bought a house 8-10 years ago you are going to be poor with this salary and all your relatives who live in other stated would think you are wasting all these money on something….
Dont tell too many people about NH, I glad most people dont like cold and snow.
There are houses there you can purchase in nice towns for 300k 2 acres/ 4 bed/2 bath , great school systems, and excellent economy. And its a repubican state, no state taxes, LIVE FREE OR DIE, property tax 5k, ect, ect, ect.