From Bloomberg:
Sales of U.S. Existing Homes Drop to Lowest in Four Months
Purchases of previously-owned U.S. homes fell in October to the lowest level in four months as limited supply and higher mortgage rates restrained momentum in the housing-market recovery.
Sales dropped 3.2 percent to a 5.12 million annual rate, the fewest since June, according to data released today by the National Association of Realtors in Washington. The median forecast of 76 economists surveyed by Bloomberg projected a 5.14 million pace. The partial federal shutdown last month may have delayed some closings, the group also said.
Concern that fiscal gridlock in Washington will damage the economy combined with the increase in borrowing costs amid expectations Federal Reserve policy makers will soon dial back monetary stimulus have slowed the rebound in housing. Sustained payroll gains would help repair confidence and enable more Americans to buy real estate.
“The housing data has downshifted in recent months, presumably because of the pop in mortgage rates beginning in the spring,” Thomas Simons, an economist at Jefferies LLC in New York, said in an e-mailed note. “Low inventories may also be impeding sales.”
Sales forecasts in the Bloomberg survey ranged from 4.9 million to 5.35 million. The September reading was unrevised at 5.29 million pace.
…
The median price of an existing property increased 12.8 percent in October from the year before to $199,500, today’s figures showed.The jump in property values reflects a changing in the “mix” of sales toward higher-end properties, NAR Chief Economist Lawrence Yun said at a press conference as the figures were released. There is a very limited supply of houses priced at $100,000 or less, leading to a 16 percent drop in sales in that category over the past year, he said. In contrast, sales of homes costing $250,000 or more are up 20 percent to 30 percent over the same period, he said.
The disappointment was with the SAAR number, which is an estimate of annual sales based on a monthly sales number adjusted for seasonality. I don’t like it at all, too much mathematical gymnastics.
What do I like? Non-seasonally adjusted numbers, monthly, year over year. What sold this October versus last October, simple.
http://www.realtor.org/sites/default/files/reports/2013/embargoes/ehs-11-20-idshwilasswbm/ehs-10-2013-overview-2013-11-20.pdf
Looking at those numbers, Northeast posted the strongest performance in October, with sales up 10% over last year – a very different picture.
A second one from Bloomberg this morning:
Americans Recover Home Equity at Record Pace: Mortgages
The number of Americans who owe more on their mortgages than their homes are worth fell at the fastest pace on record in the third quarter as prices rose, a sign supply shortages may ease as more owners are able to sell.
The percentage of homes with mortgages that had negative equity dropped to 21 percent from 23.8 percent in the second quarter, according to a report today from Seattle-based Zillow Inc. The share of owners with at least 20 percent equity climbed to 60.8 percent from 58.1 percent, making it easier for them to list properties and buy a new place.
A shortage of inventory has forced homebuyers to compete, driving up prices and leaving some shoppers out of the market, said Thomas Lawler, a former Fannie Mae economist who now is a housing consultant. The number of homes for sale reached a low of 1.8 million in early 2013, the fewest in more than a decade, according to data from the National Association of Realtors.
“The pent-up demand from people who now have enough equity to sell their homes will help next year,” said Lawler, president of Lawler Economic & Housing Consulting LLC in Leesburg, Virginia. “We’ll see the effect during the spring selling season. Not a lot of people put their homes on the market during the holidays.”
“Home sales will pick up very nicely when people gain the equity they need to sell their house and have a down payment for the next one,” said Neal Soss, chief economist at Credit Suisse Group AG in New York. “There’s a magnifying effect on sales — people are able to list their home and sell it, and odds are they’re going to go on and buy another one.”
What’s up with increase of Wells Fargo foreclosures making it to the steps in NJ? Jesus, they are dominating the scene across many counties, but are absolutely OWNING Essex.
On the 11/19 Sheriff Sale in Essex, out of the 10 foreclosure sales, 8 were Wells, 7 out of 17 on the 12th.
Morris had 13 Wells properties on the docket for this morning (a few were adjourned, a big chunk by the sheriff)
Simply a function of focus and scheduling. The attorney will schedule a bunch at one time for efficiency.
[2] grim
Lawler misspoke. It’s pant-up demand.
3 – They better hurry it up.
Irvington considering eminent domain to stem foreclosure crisis
http://www.nj.com/essex/index.ssf/2013/11/leaders_in_irvington_announce_plans_to_use_eminent_domain_to_stem_foreclosure_crisis.html
Vacant is misleading though, the homes are clearly being occupied by vagrants, gangs, and drug users.
If my tax dollars are going to buy those homes, I’d prefer them to be bulldozed and not re-sold or redeveloped. Sorry, but that’s my vote. NJ is not capable of executing such a scheme without the sole benefactors of the program being politically connected cronies, and not the community.
By the way, there is a FANTASTIC comment in that thread:
The city of Irvington taxes at property 3.39% of market value on a house per year. That means that for the majority of property owners who have a mortgate in the City of Irvington the amortized tax part of the monthly note is more thant the intrest and principle paid to the bank. Maybe if the Irvington City Government, Irvington Board of Educaiton, and County of Essex spent less and taxed less this would not be an issue or would be a lesser issue as the monthly payment would be more afordable and proerty oweners of Irvington would be able keep up with payments to the bank and keep thier homes. So the government is the primary creator of this problem.
Why is nobody talking about this?
Because nobody likes bankers. They are easy scapegoats.
385 Vermont Ave, Irvington – Asking price $50,000 – in atty review
Assuming 0% down, 5% interest:
Monthly Mortgage – Principal and Interest – $270
Monthly property taxes – $701
Holy shit, that is insanity, monthly property taxes as 3x the P&I. That comment is SPOT ON – the problem in Irvington has nothing to do with unaffordable mortgages, and everything to do with unaffordable property taxes.
Is this the future of NJ?
Why is nobody talking about this?
We can talk about it all day and most days, we do. The question is, how does one escape the government ext0rtion and change the course.
There is a flip two doors up from me (bought at sheriff sale by local builder who rehabbed it). I looked at this house about six months ago (serious discussions with builder/seller to put on an addition; we were discussing terms) but ultimately dinged it due to layout, seller nonresponsiveness, and a few cut corners. It sat on the market for well over a year and
Walking the dog this morning, I noticed the “Sold” sign on it. Will be interesting to see what it sold for insofar as it dropped price after I dinged it and still sat 6 months.
Jobless claims down 21k to 323k, 4 week avg down 6,750 to 338.5k. Good numbers … if you believe them.
Is this the future of NJ?
What have some of us been screaming about for years now? What held me back from buying one of those houses?
10 – I wonder what the breakdown of the tax bill is on that property. What percentage is School/County/Municipal.
I imagine that Irvington gets a lot of money from the state for it’s schools. I’m wondering if the County/Municipal portion is greater than the school portion. This would be the opposite of most suburban towns.
15 – If the town of Irvington requires subsidies to fund it’s services, because it can’t collect sufficient tax revenues, that furthers my case that demolishing properties is the most fiscally responsible approach for the town.
Each house demolished represents one less household worth of services that need to be delivered, one less household that requires county and state subsidy to fund it’s services.
Demolish.
[10] grim,
Future? It’s the present in a decent percentage of NJ, I’d wager. And it will only get worse once the pension and debt bombs start going off. It’s one reason I am glad I am out of NJ.
Across the river, its a completely different mentality. My township has only one department, police. Many surrounding townships don’t even have that. Now the police are talking about unionizing. My neighbor, one of the town supervisors, indicated that if the police vote to unionize and it looks like it will be a significant cost to the township, they will disband it.
I doubt that will happen since ours is one of the few police forces in the area and they bring in a lot from details for local events and from ticketwriting on the state highways and Rte 202. Also, township portion of taxes aren’t that high, less than $1500 a year and folks here can afford it. Finally, I would want it simply because our street has a supervisor and a ward judge so it gets patrolled regularly. I’m getting my money’s worth.
agree w libturd, possibility of this type of attack is so very close to zero. but fear, fear is one of the regressives favorite past time. and if you can add a racial aspect, even better. so many puzzys here afraid that a large, dark peniis may stick you from behind.
Libturd in Union says:
November 20, 2013 at 11:54 am
Odds are pretty low that any of us are going to get knocked out. Yes, it speaks to the stupidity of some troubled youth and their disregard for humanity. Fortunately, you have a better chance of getting killed in your car on your way to work, than of getting smacked down.
So that house, costs $8415.92/yr in property taxes.
Man this state is fcuked up. I keep thinking about that article that was in the Asbury Park Press from 2010 where rich billionaires and celebrities paid as little as $500/year using the farm subsidy. And this house costs $8000/yr. WTF, who isn’t cheating the system in this state?
http://www.app.com/article/20101210/NEWS/101209096/
Grim [10];
Is there any bank that will even write a note for $50k? I thought that would be under most’s threshold. If they did take it they’d write it as a HE loan, with price and terms commensurate (4%, 7-10 yr).
19 – The “fix” for the Farmland Assessment loophole was as insulting as the loophole itself.
[16] grim,
Demolition may be the only option simply because there will be no owner-occupiers. Eminent Domain operates as an involuntary acceleration and foreclosure. Banks won’t be amenable to lending there.
Liberals will scream about redlining (see link below) but CRA compliance will take on other forms so that the banks can comply and still avoid the exposure–Irvington is in the same MSA as Newark, etc. It isn’t like Detroit where you cannot avoid the MSA.
The fact that this battle is headed to Congress is troubling news.
http://www.nytimes.com/2013/11/16/business/more-cities-consider-eminent-domain-to-halt-foreclosures.html
Minimum income was moved up from $500 to $1,000. In reality, it should have been moved up to somewhere around $7,500 or $10,000 per initial 5 acres. If you can’t make at least $10k income from 5 acres of land, you aren’t a farmer, you are a hobbyist.
I guess this sort of thing is why bankers make easy scapegoats……
“Vernon Hill II, former CEO of Commerce Bank, Moorestown: 29 acres, $79 in 2010”
Eminent Domain
Is that the white rapper from Detroit?
Even if the eminent domain program goes forward, where does the muni get the money?
Where do you think?
https://www.baycitizen.org/news/housing/mortgage-bailout-proposal-san-francisco/
[24] street,
Vernon Hill was the poster child for bad bankers, a walking, talking Reg O violation.
I recall once hearing about the “design contract” for the ugly Commerce branches (Vernon’s wife got the contract) and remarked to the attorney I heard it from that “I’m surprised the OCC isn’t up his ass with a microscope.” Six months later, I learned that they were.
[18] anon,
Fear? Nah. Not in Pennsy.
And I’m sure that fear is groundless. After all, you walk through the ‘hood at night all the time, right?
So is a fire, but we still have fire extiguishers and insurance and smoke detectors. It’s still concerning. For Chr1st’s sake, there’s a whole book that documents hundreds of cases of the knockout game and videos of it happening. What more do you want?
18.anon (the good one) says:
November 21, 2013 at 8:50 am
agree w libturd, possibility of this type of attack is so very close to zero. but fear, fear is one of the regressives favorite past time. and if you can add a racial aspect, even better. so many puzzys here afraid that a large, dark peniis may stick you from behind.
When it comes to children’s learning, are we focusing too much on schools—and not enough on parents?
“There is, quite rightly, a cacophonous debate on how to reform schools, open up colleges, and widen access to pre-K learning,” notes a new article, “Parenting, Politics, and Social Mobility,” published by the Brookings Institution, a Washington think tank. “But too little attention is paid to another divide affecting social mobility—the parenting gap.”
Given all the roiling debates about how America’s children should be taught, it may come as a surprise to learn that students spend less than 15% of their time in school. While there’s no doubt that school is important, a clutch of recent studies reminds us that parents are even more so. A study by researchers at North Carolina State University, Brigham Young University and the University of California-Irvine, for example, finds that parental involvement—checking homework, attending school meetings and events, discussing school activities at home—has a more powerful influence on students’ academic performance than anything about the school the students attend.
(MORE: Why Parenting is More Important Than Schools)
Another study, published in the Review of Economics and Statistics, reports that the effort put forth by parents (reading stories aloud, meeting with teachers) has a bigger impact on their children’s educational achievement than the effort expended by either teachers or the students themselves. And a third study concludes that schools would have to increase their spending by more than $1,000 per pupil in order to achieve the same results that are gained with parental involvement (not likely in this stretched economic era).
So parents matter—a point made clear by decades of research showing that a major part of the academic advantage held by children from affluent families comes from the “concerted cultivation of children” as compared to the more laissez-faire style of parenting common in working-class families. But this research also reveals something else: that parents, of all backgrounds, don’t need to buy expensive educational toys or digital devices for their kids in order to give them an edge. They don’t need to chauffeur their offspring to enrichment classes or test-prep courses. What they need to do with their children is much simpler: talk.
Read more: The Key to Smarter Kids: Talk to Them | TIME.com http://ideas.time.com/2013/10/01/the-key-to-smarter-kids-talk-to-them/#ixzz2lI2YW4Mi
ATEOTD, the investors will have their say on eminent domain jurisdictions: This is from the legislative history of the Cali bill to breach Holder in Due Course protections and assign liability to future assignees:
“Other states have implemented assignee liability for loans considered high-cost (Those loans 8-10 points above comparable securities), yet few, if any, of these types of loans are even made. The impact of assignee liability for loans with points and fees at lower thresholds is not clear. The specific examples offer some insight, but they do not offer a complete picture. For example, the Georgia Fair Lending Act (GAFLA) contained liability for assignees that authorized punitive damages against passive investors and required that loans provided to borrowers contained a “net tangible benefit.” The market reaction to GAFLA was both negative and severe. In response, Standard and Poor’s, Moody’s, and Fitch Ratings all refused to rate MBSs that contained loans under GAFLA. This effectively shut down lending for loans under the GAFLA standard. The Georgia legislature was forced to modify GAFLA to remove its more onerous provisions.”
Four northern New Jersey towns face the loss of $29 million of combined revenue as some of the world’s largest pharmaceutical companies depart, complicating Republican Governor Chris Christie’s drive to boost business and cut the highest U.S. property taxes.
Merck & Co. (MRK), the second-biggest U.S. drugmaker by sales, is shutting its headquarters in Readington and a complex in Summit as part of a 16,000-job reduction. Roche Holding AG, the world’s biggest maker of cancer drugs, by year-end is closing its campus spanning the municipalities of Nutley and Clifton. The latter has seen the extra yield investors demand on some of its debt almost double in the past six weeks.
Nearly half of New Jersey’s life-sciences jobs are in its northern region. Summit and Readington, which are 16 miles (26 kilometers) and 50 miles, respectively, west of New York, both count Merck as their largest taxpayer. Roche is the biggest in Nutley, 8 miles from Manhattan. The closings are a credit negative for the localities, with pressure on taxes and revenues, Moody’s Investors Service said in an Oct. 10 report.
Rumor has it the Merck closing was partially over the proposed helipad on that site…..the town was difficult to work with…
Three “Knockout” Attacks Reported In Philadelphia Area
http://philadelphia.cbslocal.com/2013/11/20/three-knockout-game-attacks-reported-in-philadelphia-area/
RE: Summit Merck closing….
The rumor is, the town was being difficult over a proposed helipad….
http://www.nj.com/independentpress/index.ssf/2010/08/summit_council_votes_in_favor.html
My last word on the eminent domain issue: The Law of Unintended Consequences.
http://www.sfgate.com/realestate/article/Eminent-domain-plan-may-have-spooked-investors-4773720.php
Got a server hangup message….that’s the reason for the similar posts….
Merck CEO Clark Gets a Helipad on Top of Old Schering HQ
http://www.cbsnews.com/news/merck-ceo-clark-gets-a-helipad-on-top-of-old-schering-hq/
The Kenilworth, N.J., planning board has approved a helicopter pad to be built for Merck (MRK) on top of a seven-story garage at the former Schering-Plough HQ.
Dealing with the knockout game is the same as dealing with jerks dating your daughter:
“Kill the first one. Word will spread”
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CCkQFjAA&url=http%3A%2F%2Fwww.mlive.com%2Fnews%2Findex.ssf%2F2013%2F08%2Fpoint_it_out_knock_it_out_brut.html&ei=WhqOUo78B4bNkAfX1oGgCA&usg=AFQjCNGq3t3oRsPyO-_fdecOgapamiDrlQ
Surely for Irvington the % tax rate is so high because the price of properties is so low. 4% property taxes sounds high, but $4,000 is very low. The real problem is that no one wants to live there, not that the town is spending too much.
Not that NJ property taxes aren’t high. They suck for everyone. 2-3% for NNJ is quite normal which I think everyone agrees is insane.
24- Wow, that is disgusting!!!!!!!!!!! This is the problem with this state and country, the people that can afford to pay are always finding ways to get out of paying their fair share. What sick bastards.
Surely for Irvington the % tax rate is so high because the price of properties is so low. 4% property taxes sounds high, but $4,000 is very low.
Property taxes on the house I posted were in excess of $8,000 annually. That is low?
This is the problem with why property taxes are so high and govt needs to tax the avg citizen more—-corporations don’t pay taxes anymore. What a bunch of bs!!!!!!!! Pay your fair share!!!!!
“To put those numbers in perspective, remember that the 30-year, $1.38 trillion pension shortfall is just $46 billion a year — and “just” is the operative word in comparison with the amount states give away in the form of corporate subsidies.
According to a 2013 study by the U.S. Public Interest Research Group, states lose roughly $40 billion a year thanks to loopholes that let corporations engage in offshore tax avoidance. Additionally, a New York Times analysis recently found that “states, counties and cities are giving up more than $80 billion each year to companies” in the form of subsidies — many of which create no jobs.
State and local governments, then, aren’t bankrupt. Indeed, contrary to pension-cutters’ assertions, they are so flush with cash that they spend a combined $120 billion a year on corporate handouts — almost three times the total pension gap.”
http://www.timesdispatch.com/opinion/their-opinion/columnists-blogs/david-sirota/sirota-the-plot-against-pensions/article_7a707268-4957-5c08-9dca-ebd933e32b36.html
38 – Clearly they aren’t being taxed enough if they can afford to travel by helicopter.
[42, 44] michael
I pose this question to everyone who raises it. I have yet to get a straight, coherent, noncircular answer from anyone whose opinions on tax policy are on the left.
And since you raised it, I’ll ask you: What is “fair share” in the context of taxes?
Serious question: Discuss
http://www.solutionsfornewjersey.org/?p=929
One Possible Solution for New Jersey
One plan that Solutions would like the state to take a look at is really a tax shift and a return to using the State Income Tax to provide property tax relief as originally intended. Under the Plan, a State Income Tax surcharge will be applied for the purpose of funding 100% of the T&E portion of every district’s tax bill. Currently over 90% of the poor districts’ budgets are T&E. However, in the wealthy districts perhaps only 40% of their budget may be T&E. According to the experts, SNJ’s idea is completely constitutional because it funds 100% of every school district’s T&E Budget.
Everyone is treated equally and everyone will see their property taxes reduced!
SNJ’s idea, also, does not usurp the authority of any local school board in formulating their budget, nor does it take away the right of local residents to vote a budget up or down. If the district wants to spend money on a pool, or astro-turf for their football field, that still remains under the purview of the local board and the voters. Each district has sole control over the EE portion of their local budget.
The people decide what they need and what they can afford over and above the basic educational requirements.
Placing a surcharge on the income tax makes sense because:
There are 2.7 million property tax payers and 3.5 million income tax payers.
There are more people to share the burden.
It is progressive in that it is based on one’s ability to pay, not their address.
Property tax bills will go down
By implementing the income tax surcharge, those in the higher income brackets might pay more. Under SNJ’s concept, however, the surcharge amount an individual pays is determined by their earnings and therefore will be adjusted if their earnings change. If someone retires, or loses their job, their surcharge will be reduced proportionally, unlike today where your taxes are based on uncontrollable factors such as housing values and decreasing amounts of State aid. Also, taxpayers can still control the EE portion of their tax bill through the ballot. In addition, an individual’s total tax liability could be reduced because the tax base is increased. For the purpose of illustration, the income tax surcharge will be 1%. The actual surcharge would depend upon the amount of money needed to fund the T&E portion of the school funding formula for the entire state, as well as the number of individuals filing state returns. It is also possible that the Legislature may want to implement a progressive surcharge in which those making under $50,000 per year pay no surcharge, those who make $100,000 pay 1%, those over $200,000 pay 2%, etc. Keep in mind that the surcharge is still a tax but, it will lessen most residents’ total tax liability.
Following are two (2) examples of how the SNJ concept would work. The State Aid portion of the formula is what would be generated from the income tax surcharge. Remember, these are hypothetical as they assume an across-the-board 1% surcharge. People – particularly the middle class – are leaving New Jersey at an astonishing rate. A recent study shows that the upper income earners are beginning to follow suit. Between 2000 and 2008, 304,000 people left New Jersey and took $12.3 billion of income with them. The major reason cited is the high property taxes. If these trends are not reversed, New Jersey will soon be home to the very rich, who can still afford to live here, and the very poor, who survive off of the government entitlements.
Example A:
A person makes $75,000 per year. They pay $9,000 per year in property taxes of which $7,000 is school tax.
Current Formula:
Total School Tax = $ 7,000
T & E portion = $ 5,000
EE portion = $ 2,000
State Aid 40% = $ 2,800
School Tax bill = $ 4,200
SNJ’s concept:
Total School Tax = $ 7,000
T & E portion = $ 5,000
EE portion = $ 2,000
State Aid = $ 5,000
School Tax bill = $ 2,000
1% surcharge = $ 750
Savings = $ 1,450
Example B
A person makes 250,000 per year. They pay $10,000 per year in property taxes of which $8,000 is school tax.
Current Formula:
Total School Tax = $8,000
T & E portion = $5,000
EE portion = $3,000
State Aid 20% = $1,600
School Tax bill = $6,400
SNJ’s Concept:
Total School Tax = $8,000
T & E portion = $5,000
EE portion = $3,000
State Aid = $5,000
School Tax bill = $3,000
1% surcharge = $2,500
Savings = $ 500
SNJ’s concept is fairer because:
It pays the entire T&E amount for every school district.
It will lower property tax bills.
It is based on ability to pay rather than value of property.
It gives residents more control over their school budget.
It increases the tax
Taxes…
The bottom don’t pay any as they don’t make anything, at least on the books.
The top tier have the best accountants, etc, and although they pay a substantial amount, they do pay the least they could possibly pay legally as they have the skill and connections to accomplish this.
The suckers in the middle with the third rate accountants/tax preparers/ investment people (who don’t want to bother with anything less than 250k investments) pick up the slack.
This is why the middle is shrinking and the bottom is rising. Healthcare will be the final nail in the coffin for the middle class. Obama did that with Obamacare ( a much faster decline). Romney’s result would have been the same with his “vouchers”, except for the “grandfathered” ones, the seniors he caters to would have had a little more breathing room, remember the “55 and older” cutoff. Imagine being 54 and getting a voucher when your neighbor that was born 1 week before you get real medicare. A vote for Obama was a vote against the older crowd, not the wealthy. Romney drew that line very clearly. Fast Eddie talks about greedy sellers, houses not fixed since Nixon in office.
It is more than houses Eddie, the greed extended beyond that. The tide shifted toward Obama types now. Slippery slope, did not have to happen, may still be correctable but getting worse each day. And CND, I get the whole PA carry thing, etc, but even the best of the best get clipped from military to police. Sooner or later you will have to come out of your ” nompound” to get food or something else you need and you will be vulnerable. That eye in the back of your head might just let you down. Living in the sticks helps you more than your arsenal does. I only hope that those in charge can re stabilize this shitstorm before it goes nuclear. I have a kid, I would like for her to have a decent country to live in.
(18) Close the zero odds … Fear mongering … Throwing in gratuitious racial angles …
You must be referring to the case of St. Trayvon of Skittles and the phantom menace of white-on-black violence that had the libtard media in a frenzy for the past year, and president Obama sponsoring race-marches and yapping about what his son might have looked like. Surely you remember that case? It’s the one with the “white hispanic” bad guy.
Phoenix [48],
Well said.
*close TO zero odds
chi – sounds good, thanks for the reply. and no, not a Ditka worshipper. I’m from Jersey…just a huge Walter fan as a kid and became a Bears fan.
The majority of the top tier get their money directly/indirectly from the govt. Forgot about having the best accountants, they have the best lobbyists. What do they care if they pay 15% or 39% rates? Their incomes would be cut by 75% or more without big daddy govt funneling money their way.
Phoenix says:
November 21, 2013 at 11:17 am
Taxes…
The bottom don’t pay any as they don’t make anything, at least on the books.
The top tier have the best accountants, etc, and although they pay a substantial amount, they do pay the least they could possibly pay legally as they have the skill and connections to accomplish this.
The suckers in the middle with the third rate accountants/tax preparers/ investment people (who don’t want to bother with anything less than 250k investments) pick up the slack.
This is why the middle is shrinking and the bottom is rising. Healthcare will be the final nail in the coffin for the middle class. Obama did that with Obamacare ( a much faster decline). Romney’s result would have been the same with his “vouchers”, except for the “grandfathered” ones, the seniors he caters to would have had a little more breathing room, remember the “55 and older” cutoff. Imagine being 54 and getting a voucher when your neighbor that was born 1 week before you get real medicare. A vote for Obama was a vote against the older crowd, not the wealthy. Romney drew that line very clearly. Fast Eddie talks about greedy sellers, houses not fixed since Nixon in office.
It is more than houses Eddie, the greed extended beyond that. The tide shifted toward Obama types now. Slippery slope, did not have to happen, may still be correctable but getting worse each day. And CND, I get the whole PA carry thing, etc, but even the best of the best get clipped from military to police. Sooner or later you will have to come out of your ” nompound” to get food or something else you need and you will be vulnerable. That eye in the back of your head might just let you down. Living in the sticks helps you more than your arsenal does. I only hope that those in charge can re stabilize this shitstorm before it goes nuclear. I have a kid, I would like for her to have a decent country to live in.
Nom [46];
The answer will only be “more”.
Just like tipping — as a patron, try asking a server what they think a fair tip should be for reasonable service. I’ve never heard a firm answer, only mealy milquetoast about how little servers make, etc. AFAIK, servers are mostly AGAINST a flat service fee on all checks. 1) It makes their income reportable; and 2) they do better because most people will overtip expectations. Sure, they gripe about getting stiffed once in a while, but on average, they are better off, and they know it.
Just so with taxes. “Fair share”, carried to its logical end consistent with equal treatment under the law, would inexorably lead to a flat tax. Neither Michael, nor any other self-actualizing leftist, will endorse that at any level.
An income tax surcharge will be a huge hit to primary home owners. and a huge benefit to folks who own multiple homes they rent out.
Taxes will go down a little on the house but income taxes will go up even more.
Folks who own 20 properties will see income tax rise a bit but property taxes fall by 20x
We need Jaimie Dimon as President.
53- well said!!
Those who yield the power /have the money/influence in this country have a duty to incentivize the bottom class to have the dream of becoming middle class to avoid an uproar in the country. You don’t want the natives to become restless. Unless you do.
Then just use technology to get rid of them. Drones never sleep and Facebook/Google knows who you are better than you do. Funny thing the other day bought a new Nexus 7.
Took it to my second house where I have an internet connection. Expected to have to input router password,hey, its brand new, never seen that location…… guess what, Google did that for me. So sorry I wasted so much time making a secure password like $INsECurE #wasteof my F’N time. Not only that, but every friend that I had visited and used their router, their password was conveniently reinstalled on my new Nexus from the cloud. How thoughtful of Google to do that for me.
Just should have kept it 12345.
Or better yet just leave the whole damn thing unsecured.
A simple majority to change the rules of the Senate? PRAVDA isn’t even reporting on it correctly, they gave themselves more power to change the rules of the Senate with a simple majority and approve appointees with a simple majority instead 60 votes and no filibusters. This is big…..
http://www.nytimes.com/2013/11/22/us/politics/reid-sets-in-motion-steps-to-limit-use-of-filibuster.html?hp
A simple majority to change the rules of the Senate? PRAVDA isn’t even reporting on it correctly, they gave themselves more power to change the rules of the Senate with a simple majority and approve appointees with a simple majority instead 60 votes and no filibusters. This is big…..
Don’t worry they will be whining like stuck pigs about those same rules they passed when the Hillbilly teathuglicans of the Republican party recapture the senate. About how unfair it is for them to not be able to fillibuster. I call the republicans the stupid party but wow is this shortsighted on the part of Dimbulb Harry and the Democrats.
[54] moose,
I’ve yet to hear any justification that cannot be reduced to a quote from an Occupy type who said “we need more, you have more.” Even Rawls, patron saint of the tax wonks on the left, for all his dissembling, said little more than that.
Phoenix suggests that higher taxes are the price you pay for peace. Pay us off and we won’t riot. Ill wait for him to distinguish that from extortion. As it stands, the only distinction I see is that you go to jail for it unless you have a badge. Too bad he didn’t focus as there is a cogent argument related to that which is rarely if ever raised.
Still waiting to hear from Michael, but any quarter will do. What is fair about progressive taxation and why?
National foreclosure inventory stands at 1.5 million homes — a five-year low — according to the latest figures from the Mortgage Bankers Association.
Yet despite the nationwide decline, foreclosure inventory has been rising in the judicial states of New York and New Jersey. A judicial state is one that requires court action on a foreclosed home (i.e., a judge must sign off on the foreclosure before the lender repossesses the property).
New York’s foreclosure inventory stood at 144,000 at the end of the third quarter, and New Jersey’s was at 119,000 — both around peak levels.
“New York’s foreclosure backlog has been made worse by a requirement that lenders positively affirm that all elements of a foreclosure filing are correct, while mitigation programmes in New Jersey may be dragging out inevitable foreclosures,” writes Paul Diggle, a property economist at Capital Economics, in a note to clients.
Diggle told Business Insider he believes the foreclosure overhang could have been exacerbated by Hurricane Sandy. Some borrowers that weren’t fully insured at the time may have chosen to walk away instead of rebuilding their homes.
The judicial process means it typically takes about two years from the last payment made on a mortgage to foreclose on a home in New York and New Jersey, compared with states like Alabama and Missouri where it takes less than a year.
This foreclosure overhang, weak demand, and relatively high unemployment rates are the main reasons Diggle doesn’t think either state has good short-term housing market prospects.
“A robust recovery is unlikely to emerge anytime soon,” says Diggle.
The chart below plots the rise of foreclosure inventory in New York and New Jersey against the decline in Florida, which still has the nation’s largest foreclosure inventory in absolute terms.
From the Record:
NJ added 2,200 jobs in September and October
New Jersey added 2,200 jobs in September and October, while the jobless rate ticked down slightly, giving little sign of a robust economic recovery in the first employment report released in two months due to the federal government shutdown.
The state lost 2,000 private sector jobs and added 4,200 government jobs in the two-month period, according to the report released by New Jersey Department of Labor and Workforce Development.
The report also revised New Jersey’s previous loss of 1,500 jobs in August, to a gain of 1,400 jobs.
The department normally releases the jobs report each month, but no report for September was released due to the shutdown in October of the federal government, which compiles the jobs figures for each state and the national figures.
The jobless rate ticked down from 8.5 percent in August, to 8.4 percent in September and stayed there for October. It remains well above the national rate of 7.3 percent.
I was insanely poor growing up and I would say the majority of my friends from the Bronx growing up with five kids in a two bedroom apt stay at home mom, parents with an eight grade education and no car qualified as poor. These kids are went to college, did not want to end up like parents and are what you consider well off. Why should they give up a penny of their salary to lazy folk Why dont these lazy folk do with smart phones, cable, cars, new clothes, internet, startbucks, going out for many years saving and going to school so by time they are 50 they have the huge corner office, 500K salary, BMW, house in surburbs and a pretty wife. Why cause it involves work and sacrifice.
Phoenix says:
November 21, 2013 at 1:26 pm
Those who yield the power /have the money/influence in this country have a duty to incentivize the bottom class to have the dream of becoming middle class to avoid an uproar in the country. You don’t want the natives to become restless. Unless you do.
Not everyone is hung like a donkey JJ. Cut them some slack.
Disclaimer: I don’t believe in progressive taxation at all, whether it’s based on income, wealth, property value, etc. Question: JJ, why should everyone (continue to) be forced to give money to the lazy, stupid, bankrupt criminals in lower manhattan?
JJ the Welfare Queen says:
November 21, 2013 at 2:41 pm
Why should they give up a penny of their salary to lazy folk
46- The tax policy is easy. No tax on goods and services. Straight 20 % across the board on people with networths of 10 million or less. 50% on income with people of net worths of 10 million or more. The 10 million will be tied to inflation index. Corporations will have a 20% tax rate on all companies that have a net worth of 50 million or less. 30% tax rate on corporations worth 50 million or more.
Too bad this will never happen. It will kill lawyer and accountant jobs, so they will lobby against it just like doctors lobby against changing their money making health care system. Corporations will obviously lobby against it because now they can’t dodge the tax bill.
The state lost 2,000 private sector jobs and added 4,200 government jobs in the two-month period, according to the report released by New Jersey Department of Labor and Workforce Development.
LMAO!! What a f.ucking sorry @ss sack of sh1t we’ve become. This whole country is becoming a bunch of l0sers.
Only reason I would charge the 10 million or more group a 50% income tax is because our economy is based on capitalism. Putting a higher tax on that group will keep individuals from getting to far ahead of the rest of the pack in the game we call capitalism. Right now our tax policy is allowing that group to prosper by giving them 3 million ways to shelter their money from the irs leading to more inequality and more pressure on the middle class.
Comrade,
Don’t respond to that. I don’t agree with everything you say, but still… don’t take the troll bait.
Wall Street carries the weight of all of Manhattan on their backs. As well as Bergen County, Nassau County the Hamptons and every German Car Dealership within 60 miles of zip code 10004
For the most part no one else really does anything. My dentist, doctor, lawyer, lawn guy, painter, coffee guy, car mechanic as well as all the firemen, cops, teachers and garbage men just wait to get a hold of my wall street money as they are incapable of making money only accepting it.
Pretty much we know how to MAKE money, most folk only knows how to TAKE money.
joyce says:
November 21, 2013 at 3:07 pm
Disclaimer: I don’t believe in progressive taxation at all, whether it’s based on income, wealth, property value, etc. Question: JJ, why should everyone (continue to) be forced to give money to the lazy, stupid, bankrupt criminals in lower manhattan?
The financial services industry provides jobs for 7.6 million Americans nationwide.
Last year, the financial services industry raised nearly $1.6 trillion in equity and debt capital to fund businesses.
The financial services industry also raised $475 billion for state and local governments/projects in 2009. These funds are used to build schools, roads, hospitals, and to make other infrastructure improvements.
Nearly 6% of the U.S. gross domestic product is generated by the financial services industry.
I can do all this and still blog and take three martini lunches
Comrade,
Extortion is primal. Good luck with undoing primal. Not saying I agree with it but I do accept the fact it exists. I had it happen to me one night near Bryant park in NY.
It was not fun. But it was real. He owns my watch now and I live to type this.
I don’t think he cared that what he was doing was illegal. Some people just don’t care about others. Human nature is not going anywhere anytime soon.
Just when I was about to agree with JJ, I read a few more post and then I’m back to square one.
JJ, I came up from a cash poor family, hit the books hard, scraped and saved but even I’m not that deluded when it comes to an overdeveloped sense of self-importance. For those working in finance: You don’t create anything. You don’t feed anyone. You don’t clothe anyone. You don’t shelter anyone. Nada. Never. Doesn’t happen. You move paper from one person or group to another in an effort to increase economic efficiency by reducing idle resources.
The problem we are having in this country is that too many finance professionals are not producing said gains or efficiency and are merely takers. Since it is too hard to determine which ones are garbage, they all become garbage. Either police your own or the whole group gets reformed.
Enjoy the ride.
73 JJ
It’s thinking like this that leads me to believe doctors are severely underpaid. They should charge 300k for a cholecystectomy. Cash. Maybe with Obamacare they will finally get their chance instead of taking that progressively extorted tax called Medicare.
“For the most part no one else really does anything. My dentist, doctor, lawyer, lawn guy, painter, coffee guy, car mechanic as well as all the firemen, cops, teachers and garbage men just wait to get a hold of my wall street money as they are incapable of making money only accepting it. “
62 – filibusters
it doesn’t matter if GOP wins all 33 seats next year that won’t impact the Dems as it is still Obama who gets to make the nominations.
It would take GOP winning the Senate in 2016 (they have 24 seats up that year, and many in Dem friendly territory and in a Presidential year) PLUS winning the Presidency. Then and only then could they truly enact revenge for this change… and with the built in Dem advantages in Presidential years I forsee them controlling the Senate or Presidency in 2017
JJ: 73 & 74
All you do is accept welfare payments to the tune of 85 billion/month. The only work you do is inserting your blood funnel into the vein of the US gubbmint.
I have been receiving plenty of inner city REO lately and not a single one has had a squatter. Not much copper to be found in any of them…but no squatters.
Michael, the rich already pay 50% on earned income around here, between federal and state. I like flat taxes, but soaking the rich and successful doesn’t equal capitalism. Congress will never pass flat taxes because it would massively reduce their ability to grant favors and charge for political pull.
As for your opinion about dumb parents getting most of the credit for dumb kids, I agree. Similarly, smart parents probably deserve a lot of the credit for smart kids. Teachers seem to want to blame parents for the dumb kids and take credit for the smart ones, which seems contradictory. Further along those lines, do you think Obamacare should offer cash bonuses for poor and dumb people to have free and voluntary sterilizations?
I grew up poor and knew no college educated adults, yet somehow I managed to become reasonably intelligent. I knew a lot of dumb kids who stayed dumb, and knew a lot of kids smarter than me who squandered their potential.
[69] Michael,
I didn’t ask what you would do, I asked why.
Why?
I say we sterilize Michael and anon.
[75] Phoenix,
So you’re saying that our entire tax system is and should be based on the Law of the Jungle?
I agree that it is. I question why it should be.
[71] Michael
Very good. You get a cookie. About the only rationale I accept is the need to prevent accumulation of wealth such that capitalism grinds to a halt. I disagree that this can actually happen but there may be periods of greater accumulation than the polity can stomach, and no patience for the pendulum swing. So we have gov interference in markets and naked redistribution simply to address this perceived “injustice.” ATEOTD, redistribution to keep capitalism going is no different than Phoenix’s pay-us-or-we-riot, but it sounds better and preserves the functioning civil society.
This isn’t unprecedented in our history, but we have dealt with it in ways that did not involve forced redistribution of wealth but used market forces instead, and very effectively.
And if you have to rely on the tax code, there are ways to incentivize voluntary wealth spreading. But like the bum on the corner, voters don’t want measures to help society at large, they want cash now.
C’mon, plume. Some animals are more equal than others. Bend over and learn to love it.
People like Michael and Phoenix are why God created 30.06.
nicholas / phoenix,
What are you guys kidding me… asking JJ a question after 4:59?
Spine,
Currently kicking back with a 2011 Ludovicus. Got a case in Delaware from a shop I discovered that competes with Total and Moore Bros. Got a bunch of others to try as well.
When I went in and asked about case discount, they said “15 percent, but if you are a Longwood Gardens member, it’s 20.” I replied “hey, I am a member. Bonus.”
Also went to Moore Bros and got more of the Friande and also the Generation white from Domain Jaume.
84 com
Never said it should , but it is. Money needs to circulate vs accumulate in order for the system to work. When I said incentivize I did not mean handouts, they do not promote the best behavior. Look at the returns you got by giving Steve Lonegan a little Social Security money. Not everyone that hits a rough patch is there long term.
Anybody done the NJ-based internet gaming? The five-day trial started tonight.
I heard it is invite only….they are testing it….I think it will go live some time next week……
Spine Snapper says:
November 21, 2013 at 10:45 pm
Anybody done the NJ-based internet gaming? The five-day trial started tonight.
Looking forward to reading more. Great article.Really looking forward to read more. Really Great.
A round of applause for your blog.Really thank you! Keep writing.
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