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From the Star Ledger:
Advocates file suit for Abbott funds
Nine years after the state Supreme Court ordered New Jersey to repair “crumbling and obsoles cent” school buildings in 31 poor communities, thousands of children are still attending classes in substandard facilities with leaky roofs, broken boilers and falling walls, lawyers said in a petition seeking new construction funds yesterday.
David Sciarra, lead attorney in the long-running Abbott v. Burke lawsuit over public school funding, said lawmakers have failed to replenish a $6 billion fund set up to bankroll the repair work the court ordered in 1998, despite a 2005 court order to address the problem.
“Relief from deplorable, antiquated, overcrowded and unsafe facilities for this state’s poorest schoolchildren has only slipped farther away,” yesterday’s court filing says.
Sciarra, in the filing, seeks a court order demanding the Legislature authorize additional construction spending by June 30.
OT:
Corzine is in bad shape. So many broken bones. They’d have to keep me in an induced coma with all that, and I can handle pain.
Doesn’t sound like the guy was wearing seat belts.
http://www.bloomberg.com/apps/news?pid=20601087&sid=at01LXp.JTRw&refer=home
New Jersey’s Corzine Is Injured in Car Accident (Update4)
By Adam L. Cataldo and Terrence Dopp
April 12 (Bloomberg) — New Jersey Governor Jon Corzine suffered leg fractures, broken ribs and chest injuries from a car accident and is recovering at a Camden hospital in critical but stable condition.
The governor is undergoing surgery at Cooper University Hospital and his injuries aren’t considered life-threatening, said Anthony Coley, a spokesman for the governor, at a briefing at Cooper University Hospital. He has multiple broken ribs, a cracked sternum and collar bone, broken vertebrae and a head laceration, Coley said. Corzine suffered no spinal or brain damage, he said.
“The governor at the moment is stable,” said Dr. Steven V. Ross, head of the division of trauma and emergency medical services at Cooper. “He will be hospitalized in our intensive care unit in critical but stable condition.”
Yeah, sounds pretty bad…
Can anyone tell me the fate of 38 42nd st readington?
thanks in advance, as usual.
Listing expired on 4/12.
Anyone have any updates on the Vonage layoffs in Holmdel? I’ve been hearing numbers around 150.
jb
Is Morristown the new Hoboken?
Morristown panel OKs Speedwell Ave. project
The town redevelopment agency Thursday night unanimously approved a Speedwell Avenue redevelopment plan that calls for luxury residential units and retail space in a 12-acre area between Speedwell Avenue and Prospect Street.
The town council must give its final approval, but no date has been set for that action. Construction could begin in 2009, officials said.
The plan calls for 800 to 900 residential units, including both condominiums and apartments. About 20 percent of the units, or between 180 and 190, would be affordable housing. In addition, there would be about 50,000 square feet of retail space.
For anyone who hasn’t filed their return yet, here’s some competition for you to get yourself moving:
http://www.msnbc.msn.com/id/18077009/
“There is something fundamentally wrong about this.”
Yeah, it’s tough to try to mix moral values and capitalism. Even the taxman is backpedalling. “Well, there’s a reason we get this money. It’s perfectly legitimate from a paperpushing point of view.”
Right.
Lost (2)-
I’m rooting for the tearful bedside visit by Carla Katz.
Progress?
“Illegal immigrants filing taxes more than ever
While trying to avoid one federal agency, they collaborate with IRS”
http://www.msnbc.msn.com/id/18077009/
Clot #9
Ya think we can get a camera in there for that?
And the kicker is…all this happened while the Gov. was en route to hosting an event that can only be described as a photo op/media circus/bash-a-thon, staged to feast on the carcass of long-dead prey. Why would a Governor- of any state- inject himself into such a pity-party gone awry, much less open a house of the people to host such a pathetic event?
We should all learn to mind our mouths and speak with circumspection; however, it is a shameful day for all when race-baiters and toadies such as Al Sharpton can collude with spineless corporate America to essentially silence someone whose speech causes some to squirm.
Oops…#12 shot into moderation.
And…I thought the Imus/Rutgers team meeting was supposed to occur at an “undisclosed location”.
Why, then, did every media outlet on the planet have a camera and mike there?
Apoligies really don’t mean anything.
“as Al Sharpton can collude with spineless corporate America to essentially silence someone whose speech causes some to squirm.”
Clot [12],
I’m wondering when the Rev will be flying down to Durham to apologize to an entire community, not to mention the 3 lacrosse players whose reputation is now shattered and the millions their parents paid in legal fees. In addition to this, why not protest in front of CBS records and rebel regarding the use of the language/bigotry that rappers utilize in their messages to teenagers.
By the way, Rev of what?
“Apoligies really don’t mean anything.”
window,
It’s the American way, ask Bill Clinton, etc, etc….
By the way, did Paulson say something? Anything?
BC Bob: which is why the only person I apoligize to is my fiancee.
window,
LOL! Get used to it.
One other tibit, if you get in an argument and you know you are right and she knows you are right, please don’t admit that you are right. On the other hand, if she is right and you both realize this, please admit that she is right. It will save you a ton of aggravation.
Bob, I learned this when I first started dating :)
JB,
A follow-up to your MGIC discussion……..
C-Bass Problems Contribute to Dip of 43% at MGIC
A jarring loss at its joint venture C-Bass LLC combined with high claims costs to drive MGIC Investment Corp…a $15 million pretax loss at C-Bass, which invests in risky home loans and is 46% owned by MGIC, took 5 cents away from MGIC’s per-share earnings, compared with a 22-cent contribution a year earlier… “Like every participant in the [subprime] market, we were surprised at the speed and overreaction of this past quarter’s adjustment and have not been immune to these market events.”…..”A substantial portion of the first-quarter shortfall occurred during the last week of February and in March as the market continued to deteriorate due to announcements relating to” New Century Financial Corp., Fremont General Corp., “and others,” Mr. Williams said.
JB…folow-up to your MGIC discussion yesterday
C-Bass Problems Contribute to Dip of 43% at MGIC
A jarring loss at its joint venture C-Bass LLC combined with high claims costs to drive MGIC Investment Corp…a $15 million pretax loss at C-Bass, which invests in risky home loans and is 46% owned by MGIC, took 5 cents away from MGIC’s per-share earnings, compared with a 22-cent contribution a year earlier… “Like every participant in the [subprime] market, we were surprised at the speed and overreaction of this past quarter’s adjustment and have not been immune to these market events.”…..”A substantial portion of the first-quarter shortfall occurred during the last week of February and in March as the market continued to deteriorate due to announcements relating to” New Century Financial Corp., Fremont General Corp., “and others,” Mr. Williams said.
hey don’t knock Rev. Al,
don’t we need a comic relief once in a while?
on the other “less” important topic of real estate, it appears that NJMLS inventory of Closter jumped to 100.
Until about a month ago, it was sitting at 80, then 2 weeks ago, went up to 90, then now, it’s at 100. That’s a rapid increase.
I wonder how long it will take before it goes to 150, which was the high from last Summer.
BC Bob Says:
April 13th, 2007 at 8:20 am
“Apoligies really don’t mean anything.”
window,
It’s the American way, ask Bill Clinton, etc, etc….
I agree. It’s the American way. Look at Gingrich admitting all his affairs.
But most of all, look at the religious “leaders” with extramarital affairs. Who was that guy on TV who slept with transvestite prostitute?
#26
But most of all, look at the religious “leaders” with extramarital affairs. Who was that guy on TV who slept with transvestite prostitute?
iDavid, I thought you will be better informed about the minority & downtrodden ;-)
He was a respectable gay wh0re, not a transvestite.
LOL
About Imus, I have to admit.. as much as I tried, I could never get myself to listen to him for more than a minute.
The media made him big, and the media is making him small now. No tears here.
GE profits up… except the Mortgage div.
4th Qtr `06 – $9B in new mortgages
1st Qtr `07 – $3.4B, ouch. Apparently this is due to `tightening lending standards’.
If the rest of the Street is similar (rumors are JPM’s CDS biz is off 28 – 30 % y/o/y) when do we see the lay-offs?
There are no sccidents in NJ politics.
RentLOrd,
A “respectable gay wh0re” is not considered as “downtrodden” in my book. Downtrodden to me is — someone due to unavoidable circumstance suffer unjustly – a single mom with kids who lost her job and her husband dies from an accident, etc.
As for “wh0re”, it’s a totally different subject – the oldest profession. Now, we can discuss the legalization of.. :)
From the APP:
Rebates timed for the election
There’s no accidents either in NJ Politics:)
“there’s no accident in NJ politics”
another conspiracy theory?
and speaking of another “outstanding” Republican, we can talk about…
Wolfowitz and Shaha…
As Bob said.. all you have to say is.. I am sorry..
Paul Wolfowitz said..
““I made a mistake, for which I am sorry,” he added, pleading for “some understanding” of the “painful personal dilemma” he faced when he left the Pentagon to become bank president. Mr. Wolfowitz said he had been seeking to avoid a conflict of interest by having Ms. Riza, with whom he had a personal relationship, transferred from his supervision.”
JB,
My posts are being “filtred” and/or can’t see it. Is that because I used the words like Downtrodden? :)
or is this another conspiracy? :)
“All this talk keeps expectations low, which eventually keeps inflation low.”
What I meant was, Fed believe they can keep inflation expectations low by constantly stating they are going to aggressively fight inflation. If people believe that the interest rates will go up to say 7%, they will have lower inflation expectations.
Not everyone agrees with the theory that inflation expectations are leading indicators of inflation, not been true for last 15 years. However, Fed still use it for their policy making.
Lehigh & Northampton counties in PA are reporting more than a 30% increase in foreclosures this year alone. It look’s like all those folks that moved here from NJ & NYC did so using “subprime loans”. These commuters drove up prices 100% in 5 years, now they are watching real estate fall. Prices are down 20-30% easily and it’s only April. They just released a report saying our local inventory of homes is up 70% to last year. The summer is not even here yet, and that doesn’t count all the homes that didn’t sell and are now trying to rent (good luck renting 1k – 2k homes around here when rent is around 600-800 a month for a nice house). It’s going to be funny watching our prices revert back to 2002 or prior.
iD, you have to admit one of them was downtrod ;-)
Gee I don’t know, there were an awful lot of subpoenas floating around Trenton and wasn’t the guvnah calling for legislation getting rid of govt employees double or triple dipping with multiple no-show jobs. All I am saying is NOTHING would surprise me in this state, NOTHING.
“But most of all, look at the religious “leaders” with extramarital affairs. Who was that guy on TV who slept with transvestite prostitute?”
David,
LOL!! How about Jim and Tammy Faye Baker and good ole Jimmy Swaggart.
http://www.americanrhetoric.com/speeches/jswaggartapologysermon.html
RentL0rd,
Yes, one of them is a downtrodden – the “poor” minister who cried his eyes out and now completely rehabilitated.. sure. he is a downtrodden.. hahha :)
From MarketWatch:
Consumer sentiment falls more than expected in April
As gas prices climbed higher, U.S. consumer sentiment fell in early April, according to the Reuters/University of Michigan consumer sentiment index released Friday. The index fell to 85.3 from 88.4 in March. It’s the lowest since August. Economists expected the index to slide to 87.0. The current conditions dropped to 102.4 in April from 103.5 in March. The expectations index fell to 74.3 in April from 78.7 in March. Consumers’ expectations for inflation over the next year rose to 3.3% from 3.0%. They expect annual inflation of 3% over the next five years, up from 2.9% in March.
Bob,
Jimmy Swaggart? I remember way back in early 80’s.. turned on TV on sunday morning… and accidentally flipped to a channel. and Jimmy crying his eyes out. I have sinned. I have sinned.. I had no idea what he was talking about..
A few years later, after he was “forgiven”.. he was caught again on Airline Highway in New Orleans with another “working girl”.. the same spot where he sinned previously..
“What I meant was, Fed believe they can keep inflation expectations low by constantly stating they are going to aggressively fight inflation”
MJ,
False.
Everytime the fed speaks about being vigilant against inflation, the dollar gets hit. If your statement is true, the dollar would rally. What’s more inflationary than a depreciating dollar?
Hehehe.. with the ending of Sopranos.. I thought it was over.. but with this new conspiracy theory.. now.. here comes the 2nd coming of Sopranos.. once again.. based out of NJ..
Bob said.. “What’s more inflationary than a depreciating dollar?”
As Bob said, the sign of inflation is.. whenever gov’t said.. hey.. we are doing well.. economy is getting better..
Hi, everyone, Just buy $2 million house, don’t pay the morgages, wait for bail out.
Evey body please stop paying your morgage and Gov will bail out.
Just buy my house for $2 Mil.. and wait for foreclosure. hahaha..
Bob, sorry about the Eagles.. there is always next year.. who knows.. my kid might one day grow up to be 6’4″, 240 lbs, play defense like Bobby Orr.. offense like Wayne G. and even play golaie like Marty B. and might play for BC.. :)
“Every time the fed speaks about being vigilant against inflation, the dollar gets hit.”
I may be wrong.. but here is my take
If Fed really were acting on inflation ( increasing rates ), the dollar would be fine. Dollar is really going down because the consensus is that Fed may lower rates, now that everyone is realizing how bad US economy is going to get.
MJ,
If Fed lowers the rate to save the housing market, it’s way too late. A card has been pulled out from the house of cards – it is just moving at slow motion.
Fed has to raise the rate to salvage our economy.
“What’s more inflationary than a depreciating dollar?”
I agree. Thats should be the question for Fed, when they ask China to bump up Yuan. Hey its gone up 5% already but they want more, much more.
Alito to sell Jersey home
He coached kids, raised family here
Friday, April 13, 2007
Star-Ledger
Samuel A. Alito Jr.’s Jersey roots run deep: Trenton-born, he grew up in Hamilton Township, attended Princeton University and later settled in West Caldwell with his wife, Martha-Ann.
After Alito joined the U.S. Supreme Court last year as its newest justice, his family stayed put so his daughter could finish her senior year at James Caldwell High School. Every weekend, he left the nation’s capital and trekked back home.
But come June, Alito will no longer have a Jersey address: He and his wife are under contract to sell the two-story Colonial where they raised their children and lived for nearly two decades.
With both kids now in college, they plan to purchase a home closer to his new job, instead of renting as they had been doing.
“Unfortunately, we are going to have to,” Alito said yesterday. “We can’t afford to keep two houses, and it’s a long trip back and forth.”
“It’s not so much severing my Jersey roots,” he said of selling the West Caldwell house. “I’m sure we’ll be back.”
http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-6/117644279497130.xml&coll=1
MJ [50],
It’s much more complicated than just interest rates. The dollar has been in a downtrend since 2001. We have only been focusing on a weaker economy in the recent past. What’s the real explanation for a 6 year bear market??
David,
I agree, the fed should raise. However, don’t bet on it.
If your son grows to that height and can play like you mentioned, I’ll kidnap him and take him to Chestnut Hill. By the way, very tough loss, 2 years in a row in the finals. Ouch.
Bob,
As I said before, I am more of an anarchist than a liberal. Now, speaking of revolution and gold backed currency and M3..
There is a good chance that my kid will be around 6’2″ or 6’3″ and 220 lbs, but my little one? he will probably be 6’4″ and 240 lbs, definitely, and much more athletic than his older brother.
Oh, by the way, I am moving to Clifton. So you know where to come to kidnap my kid. My last name starts with B..
do I hear “signing bonus” from the Eagle Alum? :) hahahah
Whats with the sharp Yen drop? Is there something in the news?
If Fed really were acting on inflation ( increasing rates ), the dollar would be fine.
Not neccisarily. In addition to the interest rate lever, the Fed also has a printing press at its disposal. Since the M3 money supply statistic doesn’t get published anymore, its hard to tell how much money is getting printed.
Bob said…
“The dollar has been in a downtrend since 2001. We have only been focusing on a weaker economy in the recent past. What’s the real explanation for a 6 year bear market??”
Do you want a simple one word explanation? Shrub. hahahhaha..
OK. fundamentals. losing of middle class, outsourcing, gov’t wasting money in Iraq, where are the jobs for our kids?????
I am really worried about our next generation.
US ten-year bond yields have risen sharply today with the
yields almost touching 4.77% and well up from lows near 4.72% this morning. Watch out mortgage rates.
If Fed were increasing interest rates, the $ will not fall as hard as it is falling now.
Renting [57],
Bingo. It’s much more involved than strictly interest rates. The world is awash in dollars. Simply supply/demand. If the fed raised, we would get a massive short covering rally, imo. Then what??
All disclaimers apply.
To All: Don’t forget Tuesday April 17 is School Budget Vote Time. Please go out and VOTE YES!
If our elected state officials are clueless, I am sure our local officials are not. VOTE YES
Vote yes for the 10% increase (in my town), Vote Yes,keep your property values high and moving higher (it does not matter how high property taxes go, people will always wnant to move to desireable minutes from NYC any town in Bergen County.
Vote Yes, the state is bankrupt from top to bootom, critical structural damage exists in the states fiances, and its inability to create good paying jobs, but who cares VOTE YES!
We have the the highest property taxes in the country, but the 3rd best public education system in the country (should it not be first for all the money that is spent?) VOTE YES!
We are getting our rebate checks , property tax reform this year(only for this year,and with the increase in the school budget, a big chunk of it is gone, 50%+, and we are still waiting for our municipal an county increase) VOTE YES!!
Pay to educate your kids here, (but then send them to another state to start a life for themselves) VOTE YES, who cares if our children cannot afford to live here, just VOTE YES!!!
The BOE has given us our mandate, VOTE YES, ask no questions, entertain no dissent, and cast out those (like myself), who will be voting no.
Just VOTE YES, it does not matter that our test scores are dropping every year, even though we spend more money now then we ever did, just VOTE YES!!!
We are Blue Ribbon (10 years ago), VOTE YES, Build futures (even though they wont be in our state) VOTE YES, spredad the news tell all your nneighbors family and friends. VOTE YES on April 17! VOTE YES!!!!!!!!!!!!
BBB,
we are the 3rd best? who’s #1 and #2? Alabama and Louisiana? :) are we tied with Mississippi (did I spell that correctly??) for the 3rd ?
investordavid: the next generation is more concerned with Ipods, self-gratification, and appearing more successful than their parents.
“If Fed were increasing interest rates, the $ will not fall as hard as it is falling now.”
MJ [59],
On June 30, 2004, the fed began their first of 17 rate hikes. How did the dollar perform in this rate rising environment? I would be happy to pass on the chart, if you wish.
#63 tbw Their parents encouraged that, by living a grandiose life style, granite and stainless steel, and expensive cars, and trips to the DR.
thatbigwindow,
probably not all. Similar things have been said about our generation by our parents’ generation.
But I am genuinely concerned about our kids and future of once great nation of ours.
#62 David: yes according the NJEA, our public schools are ranked 3rd best in the country.
hey i take top 20 and a good place to live (like it used to be), but hey thats just me. VOTE YES!!!
By the way, some things just never change. From the Fed’s statement after the first rate hike, from 1 to 1.25 [ffr];
“Although incoming inflation data are somewhat elevated, a portion of the increase in recent months appears to have been due to transitory factors.”
One girl I know of had a great job making over 70k a year at 26 years of age in NYC. She worked at a big financial company. She was up to her eyeballs in debt, and her meger 70k a year salary wasn’t enough to cover her cost of living. Not to mention, she had bought a condo in Jersey City as an investment, but couldnt rent it out. Also took out a 100% financing loan to buy the condo. Couldn’t even keep up with the condo association fees. Last I heard, she felt the only way to get herself out of debt and start living the MTV life was to quit her job, liquidate her 401k and go back to school full time. Smart!
speaking of retiring, I am diversified. Megamillion and pick 6, scratch, once in a while a trip to CT to buy Power ball..
My town suggested “modest” increase of 4% in budget – something about needing a new boiler in high school, less than state average pay increase, I spoke to several candidates for BoE in our town. still debating..
thabigwindow, at least she was doing something about her future and smart enough to go back to school..
much better than some kids who stay in that life style and getting deeper and deeper into debt.
I wonder whether that condo is in foreclosure.. know the MLS number? hahaha. kidding. :)
#70 Davis: There must be soemthing wrong with your town(just kidding), you should be spending more, and more! VOTE YES!!
David The BOE Does not like me, because I used to ask questions. Now I have becoem like St. Thomas More; I remain silent, while every one else VOTES YES!!
Look where the S&P 500 index is compared to 2001, adjusted against the Dollar Index. While the S&P is today at 1450 in nominal terms, it is hovering around 1000, adjusted for dollar depreciation since 2001. Foreign institutional investors invested in the US are in the red over 30% since 2001. And as more US investors send money overseas to invest, these structural changes will weigh heavily on the US dollar in the coming years.
The dollar bear marches on….. 1.35 EUR/USD has been taken out this week.
BBB, here’s a funny thing. One candidate who is for the spending stated that.. hey.. I am a homeowner and by keepng our school system great, we can maintain our town desirable and keep the housing price up. hhahaha..
and the other person running.. no kids in the school system and wants to cut down everything.. especially the teacher salary..
#71: I disagree. Especially when she was making good money. She should have stopped spending. Now, not only will she pile on more debt by going to graduate school, she will probably still seek the same lifestyle she had when she had a job. Someone like that will always be in debt no matter how much they make.
From Marketwatch:
GE beefs up financial collections unit
General Electric said Friday it’ll beef up its collection efforts as it moves to contain any possible leakage of woes from the subprime sector into its lucrative financial business lines.
Turning toward GE’s financial services arm at the conglomerate’s quarterly conference call, CEO Jeffrey Immelt said the measure came as part of a series of moves to counteract a difficult quarter at its relatively small WMC Mortgage business, a major subprime lender.
thatbigwindow.. wow.. you have a crystal ball to see this girl’s future? :)
can you please tell me the next lotto winning number?
maybe she learned her lesson. maybe once she graduates from a grad school, she might get a job which might pay more. Are you saying that once you made a mistake, you never learn?
I remember putting my hand into hot boiling water once and I learned my lesson.
BCBob,
I took your advice and am still on the demo account.
“On June 30, 2004, the fed began their first of 17 rate hikes. How did the dollar perform in this rate rising environment? I would be happy to pass on the chart, if you wish.”
I think the $ did ok. By early 2004 $ had already fallen .8 to 1.25. Since then it has moved between 1.35 and 1.2. I agree it will now keep loosing value. Waiting for that to happen so I can make some money!
Perhaps some may learn their lesson, but not this particular girl. Some people never change.
BBB,
Utopia by St. Thomas More is one of my favorite books. I regard it as the beginning of “ideal communism” v. Communist manifesto by marx.
Speaking of Utopia, Jersey ain’t it. Tropical island, tropical drinks, warm breeze, drinks served by scantly clad… did I mention twins? :)
thatbigwindow.. but if she is pretty enough… who knows. :)
thabigwindow.. is it so bad that she said no to you when you asked her out? learn to take rejection well. It’s part of life. :)
If someone finds the missing White house emails, please forward them to the proper addresses. Apparently their dog ate their emails –
http://www.newsinferno.com/archives/1532
“I think the $ did ok.”
MJ [79],
I guess the definition of “ok” is relative. The dollar index [against the basket], is down almost 10% during this time frame. This % will vary against any specific currrency. However, the index is the broadest measure.
What demo account are you on? Real time?
Rent,
the email is lost in the shrub. :)
Poor shrub.. all this aggrevation due to Rove, Cheney, … Gonzales..
so is Jeb running?
I might consider voting for Mike Huckabee.. a “grace” republican.. notthe “law” republican..
#75 There has to be a middle ground, and over the last few years there has not, in my town it has been out of control spending.
If you voiced conecern, you were labeled anti-schools. I belive reform, change startes at the local level, and that the local municipalities should set a precedent of the sate will not.
We do not have the money, simpel as that, learn to live within our means. tighten the belt for a few years, if that means 23 in a class, instead of 20 for a few years then fine. If it means music and art ona cart instead of a seperate class room, its nto the end of the world. You get my point.
The odd thing is in my town with all the hoopla surrounding tth VOTE YES propaganda, I mean campaign, there are a total of 3 open spots between the local and regional HS School districts,and no one is running for them.
VOTE YESSSSSSSSSSSS!!!!!!!!!!!
From CNN/Money:
GE sees subprime woes spreading
General Electric sees problems growing from subprime loans into other types of mortgages, it said Friday.
Chief Executive Jeff Immelt told analysts that the company was starting to see an increase in delinquencies in Alt-A loans as well as subprime mortgages.
Alt-A loans are those where borrowers aren’t required to submit as much documentation of income as straight mortgages.
The company’s WMC Mortgage unit is the nation’s No. 5 lender to people with less than top credit ratings, a sector known as subprime lending which has been battered by rising delinquencies and defaults recently.
…
“We’re seeing some pressure in Alt-A loans as well,” he said. “Subprime delinquencies started ticking up in the summer of last year, and Alt-A delinquencies started ticking up in the fall.”
From the JEC Report:
“Estimates suggest that foreclosure prevention costs approximately $3,300 per household —
substantially less than the nearly $80,000 in costs of foreclosure”
Can anyone explain how they came up with that $3,300 number? How can $3,300 possibly save a foreclosure?
#83: lol, no she was my the former best friend of my fiancé. She ended up dropping out of our wedding because she hated me with such a passion. hehehe…
jb,
thanks!
sl
MJ Says:
April 13th, 2007 at 10:43 am
“Every time the fed speaks about being vigilant against inflation, the dollar gets hit.”I may be wrong.. but here is my take
If Fed really were acting on inflation ( increasing rates ), the dollar would be fine. Dollar is really going down because the consensus is that Fed may lower rates, now that everyone is realizing how bad US economy is going to get.
MJ: I agree – you may be wrong
thatbigwindow.. you still havne’t answered my question.. is she pretty?
Now, I wonder why she hated you so much. You should never asked for 3some with your finance and her best friend. hahaha.. just kidding. :)
(let’s see whether this post will be blocked or not. :)
CF,
are you turning into a stand up comic in your old age? trying to revive your first career like Rodney Dangerfield? :)
#93: no, not pretty at all (looks or personality)
“You should never asked for 3some”
David,
I though I was on a RE blog. How does that get thru the filter?
Bob,
speaking of loop “holes”….
thatbigwindow.. ok. you are right. she is doomed. hahahha
Subject: Imus & Duke Lacrosss Players
Does anyone think big problems can be avoided – wether you agree with the outcomes or not.
1. Imus’s words are taken as gospel by way too many folks, I don’t agree with that, but tremendous power has been bestowed, honor it, choose your words wisely.
2. No accusations can be hurled at young men who leave a party that a stripper has been invited to. Strippers can be seen at clubs, where they are employed, private hiring of a stripper is asking for trouble, sometimes you get what you ask for.
My son was instructed by me more than 2 years ago ( he’s 15) take your self out of a situation where A) you’ll be tempted to do what you shouldnt and B) You may be accused of doing somthing you did’nt/shouldnt – with that I gave him many examples, ie 1 girl many boys no supervision. That cover’s alot of examples.
KL
Can anyone explain how they came up with that $3,300 number? How can $3,300 possibly save a foreclosure?
Casket for the home-owner. It’s much easier to take the property from a dead man.
Well, no lacross for my sons. No Delbarton for my kids.
And to delight Clot, no Dook. :)
http://www.kansascity.com/182/story/66339.html
KL [98],
Good advice.
I hate to say, when I was in college, I would have had to live in a deserted dorm, locked in my room, to avoid those situations. Come to think of it, I probably would have required two AH-64 Apache’s hovering over my head for protection purposes.
#98
I’m (I was) a frequent listener/watcher of the Imus in the morning show. He definately said a stupid thing, but this has blown way out of proportion. Al “Tawana Brawley” Sharpton & Jessie “Hymietown” Jackson created a herd mentality of everyone jumping on the bandwagon…amazing…these guys are the moral majority for what’s decent on the airwaves…LOL
Forgive me father.. I was a bad boy when I was in college.. I sneaked in girls to my dorm room.. drinking.. smoking.. even asked my then g/f and her best friend for..
OK. I said I am sorry. So I should be forgiven like these politicians and religious leaders. :)
Did you hear that? Thurgood Marshall and MLK, Jr are rolling in their graves looking at the likes of Al and Jessie (I used to have a hope for Jessie and now.. )
“Forgive me father.. I was a bad boy when I was in college..”
David,
What’s your excuse when you were teaching?
Father, lead me not into valley of temptation.. as I will find my own way..
I have an fxcm demo account for almost 6 months now! Was planning to get a mini account back in Dec, but my trades were not consistent at that time. Now I have the consistency, waiting to improve my liquidity situation before diving in.
I haven’t seen an Inventory comparison in a while (GSMLS, NJMLS, yoy). Any chance of getting a spiffy graph up on the main page soon Jim?
IDave (100)-
Well done. More American youth taught to hate Dook.
IDave (100)-
Well done. More American youth taught to hate Dook.
Wonder if this will ever get any traction…
More than 20,000 American Business Financial Services Inc. bondholders are accusing four of the country’s top investment banks of creating the illusion the company was a safe investment before it went out of business.
JP Morgan Chase & Co., Bear Stearns Companies Inc., Credit Suisse Group, and Morgan Stanley collected $50 million in fees in lending to the Philadelphia-based subprime lender and repackaging American Business home loans into $3.6 billion of mortgage-backed bonds between 2000 and 2003, a period in which the company was insolvent, according to a lawsuit filed in Philadelphia court on behalf of the 20,000 investors who held about $600 million of the company’s bonds. American Business was shuttered in 2005.
The court-appointed trustee for American Business, George Miller, is seeking $750 million from bankers and former officers and directors. As of January, he has received 26,000 claims from creditors, many retirees.
Bear Stearns was the largest underwriter of mortgage bonds in 2006.
BC (from yesterday’s thread)-
Digging’s good, as always lately. However, all was trumped by a nifty 3-team hockey playoff parlay, capped by the Rangers’ win.
Potvin still s#ckz.
“Potvin still s#ckz.”
Clot,
I sat in the blue for one Ranger/Islander game. There was a priest sitting close to me. He took off his collar, held up his beer and started the Potvin chant. He was the rowdiest of the bunch.
Cover of The Trentonian today:
“Governor Crashes, Imus Burns”
You can’t make this stuff up.
BC (114)-
Why remove the collar? He was speaking the truth.
I still cannot figure out a way to explain the blue seats experience to my kids. They may never be old enough for some of those stories.
Clot,
blue seat experience vs.
sitting on the 50 yard line two rows behind the opposing team’s bench at candle stick park during the hey days of 49ers (Joe, Jerry, Steve.. ) .. yelling about other team players’ wives.. mothers.. brothers.. fathers.. Father, I have sinned..
BC Bob: Sorry to break this to you, but BC is cursed for weasling out of the Big East.
watching Devils v. Islanders games.. they both sing the same song.. how much they hate the Rangers..
Great thing about going to Devils game. You can always get to the blue seats.. no one is ever there.. hahaha..
RR [#98]
Perfectly summed up. No matter what kinds of scumbuckets Weird Al Sharpton and Jesse Jackson might be, they’re just a sideshow element to Imus’ self-immolation. If this had been the first incident, Imus would still be on the air making jokes about runny stool and pop chanteuses’ bouts with breast cancer. Gee, too f-in bad about that.
And the “hazards of Duke” is a cautionary tale at best. They were lucky to have the means to gain vindication. Wish we could say that of all the wrongly accused.
Subprime bailout? $120 billion
More than 1 million borrowers may be at risk of defaulting on their mortgages. Assisting them all wouldn’t come cheap.
By Stephen Gandel, Money Magazine senior writer
April 13 2007: 2:50 PM EDT
NEW YORK (Money) — Want to pick up the check for every homeowner who got saddled with a risky mortgage? It’s a big one – on the order of $120 billion.
Lawmakers and consumer groups in recent weeks have been calling for assistance for those at risk of defaulting on their mortgage.
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Quick Vote
Should subprime borrowers be bailed out?
YesNo or View resultsVideo More video
Comedian Kathleen Madigan has a reality check for subprime lenders hoping to get bailed out by the government.
Play video
On Wednesday, Congressional Democrats led by Charles Schumer (D-N.Y.) advocated steering hundreds of millions of dollars into nonprofits to help the growing number of homeowners who are having trouble paying their mortgage.
But economists and industry experts say the cost of a bailout would be significantly more than that.
Christopher Cagan, director of research at First American CoreLogic, says rising mortgage payments on adjustable rate loans will force 1.1 million homeowners into foreclosure over the next 6 years. He estimates the cost of paying off the debt for those borrowers would be $120 billion.
A spokesperson for Sen. Schumer says the senator is not suggesting the government should pay off borrowers’ loans in full. The spokesperson says Schumer believes a mixture of counseling and restructuring of the loans would bring down the costs of the program considerably. He says Schumer hasn’t finalized a plan, and that Schumer has said banks and lenders should foot part of the bill.
But even a partial bailout plan would cost far more than a few hundred million dollars.
Larry Litton, whose company Litton Loan Servicing oversees the payments on 400,000 subprime loans, says on average it costs his company $16,000 to put one of its customers through a “loan modification” program if which borrowers get moved into loans with slightly lower rates. That would put the price tag of a nationwide program to assist troubled borrowers at $17.6 billion, using Cagan’s default estimates.
“The numbers are going to get very large,” says Raphael Bostic, a professor of economics at the University of Southern California. “I don’t think this is a feasible plan.”
100 biggest markets – where the growth is
A historic rise in delinquency rates among borrowers with low credit ratings has raised concerns that a record number of Americans in the next few years will be unable to pay their mortgage. Many of those borrowers were put into loans with low teaser rates that are now adjusting upward, sometimes doubling their monthly mortgage payment.
Consumer advocate groups say those loans, with steeply rising payments, were pushed on borrowers who didn’t understand the terms. Advocates say a government bailout, even a large one, is appropriate because regulators didn’t do enough to stop predatory lending, and because of the high cost of foreclosures.
“The cost of not doing anything would be devastating to many communities around the country,” says Lisa Rise, a vice president at the nonprofit National Fair Housing Alliance.
Rise notes that even a $120 billion bailout would not be without precedent. Economists estimate the federal government spent nearly $150 billion to resolve the Savings and Loan Crisis in the late 1980s and 1990s.
Still economists say bailout could have the effect of causing more defaults. “If the plan is to pay off loans when people quit, then I plan to quit paying my loan,” says Michael Englund, chief economist at Action Economics.
What’s more, some economists say a bailout could encourage more risky lending in the future. “A bailout would validate what some of these lenders and borrowers did, which we now understand was reckless,” says Carl Tannenbaum, president of the National Association of for Business Economics.
“I don’t think that’s what we want to do.”
http://money.cnn.com/2007/04/13/real_estate/subprimebailout_cost.moneymag/index.htm?postversion=2007041314
Jamey [118],
No argument here. I guess it came down to taking the payday or asking Mitt Romney for a bailout.
I think the curse was bestowed upon by the good graces of the “Socks”. The Boston curse lives on.
By the way, hackey,[yes spelled right] was not a part of the Big East nor the ACC.
Also, who knew the State University would develop into a powerhouse while the state trudged to the depths of misery?
“Schumer believes a mixture of counseling”
From # 120,
Here’s a start;
Good; +
Bad; –
Next class; Black/Red
KL #98 –
I have seen more professors behave badly than 15year olds. I mean really!
This may sound all trivial and fun to talk about but it causes a lot of stress when adults behave badly. A lesbian professor going after her partner’s student, ruining the student’s future and jeapordazing her’s and her partner’s careers after a long department-wide drama… A professor’s wife going crazy because she suspects him of adultery, using her FBI brother to plant trojan computer viruses into everyones computer to peek into their pc activities… and recently a professor slapping his student’s ass to put 3 grad students work in jeapordy… the list goes on.
I just keep seeing more and more of screwed up professors.
jb, i’m in mod
IDavid (117)-
I went to a 49ers game- before Walsh- when about 2,000 people went to the mezzanine at halftime & “lit up”.
I’m sure I’ll never see anything like that again.
Clot/David,
I went to see the NJ Generals vs. LA Express in the LA Coliseum. There were 50,000 there and it looked empty. Flutie handing off to Hershel Walker vs. Steve Young.
Go compare a LA football tailgate to a Jet tailgate. I never saw so much wine and cheese in my life.
Looks like the commuters in the Lehigh Valley will be going home soon. It’s now known foreclosures are up 30% in Lehigh & Northampton counties. Now prices in central jersey are busting too. Later commuters, you overpaid and have negative equity in the cookie cutters you bought around here.
Nobody like to chat about reality, I wonder why?
Remember, realtors are like car salesman. They will always not give you 100% truth, it’s their nature. When you deal with commisions it’s all about “closing the deal”. The Morning Call has the closest ties too realtors & reality based companies, that’s almost all newspapers where bubbles occured(and before they always generate the most revenue). You won’t see coverage on this until it’s so far gone, that’s the way it goes.
Nobody liked or likes talking about the stock market crash too. Most people lost the majority of there investments. This thing is going to hurt worse. Per person individual debt is at levels that couldn’t even have been imagined 6 years ago. This is a beast, one the might criple the economy, at the least it’s going to destroy the lehigh valley real estate market. That’s not a bad thing though for locals. Back to normal prices and better living.
_________________________________________
The Home News Tribune reports from New Jersey.“There were 10,075 foreclosures in Central New Jersey last year, according to the JEC report. This means 1 in 87 homes, faced or are in the early stages of foreclosure, said JEC spokesman Israel Klein.‘I don’t know what happened but this month, the number of calls…have really picked up,’ said Claire Lawrence, director of a housing counseling agency that serves Middlesex County and Franklin.‘The problems are all over (the county).’”“Lawrence said she is ‘dumbfounded’ at the extremely high mortgage payments people who come to her agency are expected to pay. Some, she added, are three to five months behind on those payments.‘The problem is most of these people got into mortgages they can’t afford,’ she said.”“Joe Petrucelli, an Edison mortgage banker, said risky mortgage loans, such as negative amortization loans, caused his mortgage business to drop by more than 50 percent a few years ago.”“‘I wouldn’t sell the interest-only loans to people because they ratchet up,’ Petrucelli said.‘What happens is, someone would get this comfortable feeling that they are only going to pay $1,500 a month but then it adjusts and ratchets up.’”
The Times Union from New York.“In the Capital Region, housing prices are dropping. The Greater Capital Association of Realtors says the median-sale price for single-family homes fell 7 percent in February from year-earlier levels. And Realtors say the inventory of houses here is growing.”“‘People are going to have to come to the realization that prices are going to have to come down to get houses sold,’ said Mary Ann Larkin, a real estate agent in Sharon Springs.‘There’s a tremendous amount of inventory, and the days of putting a high price on a house to see what buyers will pay are over.’”“‘I’m definitely seeing price hesitation with buyers,’ said Latham Realtor Anthony Gucciardo.‘If you don’t price it right, it won’t sell.’”
Clotpoll Says:
April 13th, 2007 at 2:25 pm
BC (114)-I still cannot figure out a way to explain the blue seats experience to my kids. They may never be old enough for some of those stories.
clot/Bost/iD: How about Bleachers in Yankee Stadium pre-EvilEmpire/dry-rule? I am a Met fan, but being out there every June for Yanks-Sox and Clemens on the hill for the Sox was required viewing. Hardcore and no-f-ing frontrunners. The Bronx was burning. The sickest brawl of all time and Mel Hall hitting the base of the scoreboard back when that actually meant something.
#121 – That link for CNNMoney.
There is a poll there asking whether there should be a sub prime bailout.
9% Yes.
91% No.
The polititians picked the losing side if they thought this would be a vote getter.
One of the greatest quotes of all time from Steve Sax:
“How crazy is Mel Hall? Even Rickey says ‘That dude is crazy.'”
Rickey wants to play baseball.
#120
Please, don’t side w/the liberal Terry Moran and encite class warfare by saying “they were lucky to avoid vindication”.
I hope you are never in that situation and are falsely accused of rape.
My letter to Senator Menendez:
Dear Senator Menendez:
I strongly urge you to reject any taxpayer-funded bailout for the subprime mortgage lenders who carelessly lent their money or to the borrowers who irresponsible took on more debt than they could afford to repay. Your concern for the growing number of borrowers with subprime mortgages facing foreclosure is understandable. After all, no one wants to see someone lose his or her home through foreclosure. However, a taxpayer-funded bailout for individuals who made poor decisions is patently unfair to those of us who were responsible with our finances and didn’t buy a home we couldn’t afford.
Despite good jobs, good credit and saving a respectable down payment, my wife and I simply can’t afford to buy a home in Northern New Jersey right now. Rather than gambling with our financial future by taking on a risky loan, we don’t buy a home we can’t afford. It would be extraordinarily unfair to now ask my wife and I to subsidize the people who made housing unaffordable to us by bidding up prices to unsustainable levels using highly risky mortgages.
The problem in New Jersey is lack of affordable housing. Much of this problem was caused by several years of rampant speculation in the housing market and a complete deterioration in lending standards. This lack of affordability presents a major threat to our economy. Last year, New Jersey lost more than 72,000 of its residents to other states with better opportunities and more affordable housing.
The housing market, however, is currently undergoing a correction to restore a more normal balance between income levels and housing prices. This correction will be painful for some people, but is completely necessary for the long-term health and viability of New Jersey’s economy. Any action to support artificially high home prices through a bailout would only serve to keep housing unaffordable and force the next generation of buyers to either leave New Jersey or take on excessive levels of debt. In fact, if my wife and I don’t see affordability conditions in New Jersey improve, we are likely to leave the state as well.
I urge you to allow this problem to work itself out without government interference.
Chi,
Mel Hall? LOL. I forgot about him.
I actually prefer the bleachers in Fenway. When I was in school, we would go with approx 30 Yankee fans, including hackey and f-ball players. The bleacher bums in Fenway hated us, but what drunken, loser,hexed, [pre 2004] Sox fan wanted to mess with them. It was one of the few games our f-ball team won.
ChiFi (129)-
I’m a Mets’ fan too, but I remember the Yankee Stadium bleachers in the mid-80s.
Lots of battery-throwing, lots of beer (for years, you could leave, go to a bar on the street and come back in), more than a few fights and more truly horrible stuff directed at Ed Whitson than any human being deserves. I still use some of the insults I learned out there when I’m really PO’d.
I was also at the Stadium the day that gun battle broke out on the train platform. Good times.
From Diana Olick at CNBC:
The Jury is In, The Bailout is Out
You bloggers don’t mince words do you? First off, I want to thank all of you for writing in—a one day record for the Realty Check blog, 165 responses in one day and 9 more floating through the ether overnight (seriously, Jay J., what are you doing blogging at 1:21am???).
Jamey [120],
I will not claim to know all the facts. However, these kids were not acquitted. The case was dropped. Huge difference.
RentinginNJ: excellent correspondence
Subprime bailout? $120 billion
More than 1 million borrowers may be at risk of defaulting on their mortgages. Assisting them all wouldn’t come cheap.
http://money.cnn.com/2007/04/13/real_estate/subprimebailout_cost.moneymag/index.htm?postversion=2007041314
also on the page – Comedian Kathleen Madigan has a reality check for subprime lenders hoping to get bailed out by the government.
BC Bob: you should read the news before you post. the atty general of NC took the extraordinary step of saying two things: (i) the three kids are INNOCENT (which is even better than an acquittal, as an acquittal could be for techinical reasons) and (ii) no attack EVER occurred.
give me a break bob.
Imus’ show was certainly meant for a narrow audience, but the impact of his charitable efforts cannot be disputed:
The show’s charity fundraiser had raised more than $1.3 million Thursday before Imus learned he had lost his job. The total had grown Friday to more than $2.3 million for Tomorrows Children’s Fund, CJ Foundation for SIDS and the Imus Ranch, Deirdre Imus said. The annual event has raised more than $40 million since 1990.
The Deirdre Imus Environmental Center for Pediatric Oncology in Hackensack, N.J., works to identify and control exposures to environmental hazards that may cause adult and childhood cancers. Imus Ranch in New Mexico invites children who have been ill to spend time on a working cattle ranch.
On the other hand, Al Sharpton and Jesse Jackson are both frauds, criminals and longtime race-baiters, who promulgate a culture of victimization in order to both control black people and to use their social and economic voice as tools to extort the media and corporate America for their own, narrow personal gain.
“Nobody liked or likes talking about the stock market crash too. Most people lost the majority of there investments. This thing is going to hurt worse. Per person individual debt is at levels that couldn’t even have been imagined 6 years ago.”
People who bought recently have a LOT, if not their ENTIRE net worth tied to housing. The 2001-03 equity bear market will seem trivial compared to the losses over-leveraged folks have set themselves up for.
You buy a stock and it goes down. Atleast you can sell or tax harvest and have IRS share the pain a bit, carry forward some losses, etc.
When yOu lose money when you sell your house, you can’t write a portion of it off taxes. If you get a 1099 from the lender when they lose money on your house, you’re on the hook to the IRS for deemed income also.
what bubble [141],
Like I said, the case was dropped. What’s your point?
#138, right, because they should not have been charged…as their lawsuite will probably indicate
Please commence barfing:
CHICAGO (AP) – The Rutgers’ women’s basketball team and coach C. Vivian Stringer were scheduled to appear on “The Oprah Winfrey Show” Thursday as furor continues over remarks made about the team by radio host Don Imus.
Stringer and the 10 team members will appear live via satellite, a spokeswoman for Harpo Productions Inc. said Wednesday night.
what bubble,
Since you surfaced. I’m still waiting to hear how a 100k salary, after taxes and 401k contribution, supports a 400k-500k mortgage. Keep in mind prop taxes and every other daily living expense. Please provide details regarding your conclusion.
By the way, did you have a previous, different logon?
As ridiculous as it sounds, I actually find Sharpton more genuine than Jackson. Jackson tries to come across as holier and more refined. After getting to examine him closer living in Chicago, he is a hollowed and bigger fraud. At least Jackson has the indignity of having to subsist today at a fraction of his former influence.
ChiFi (148)-
That’s like saying your prefer copperheads to rattlesnakes.
I hope this isn’t a duplicate posting:
From Reuters: Subprime mess, supply to sour spring housing market
NEW YORK (Reuters) – The flowers may be blooming this spring, but the U.S. housing market is wilting.
An unwieldy supply of homes for sale and significantly tighter underwriting standards from lenders, ignited by the rapid meltdown of the subprime mortgage market, will pave the way for the spring housing season to see the worst drop in sales and new construction since the early 1990s
More at: http://www.reuters.com/article/gc06/idUSN0243364220070412?src=041307_1242_INVESTING_subprime_crisis
Renting [134],
hear,hear.
http://generationrisk.blogs.money.com/2007/04/05/real-estate-that-last-dip-could-be-a-doozy/
#149
exactly.
Pick your poison….
Going back to Imus, I know most here prob didn’t listen to him, but the guy did a hell of alot of good for unfortunate people…(kids w/cancer, trying to find a cure for autism, SIDS, etc..)
Too bad the REVERENDS didn’t take that into account.
Imus is a slug…..you are defending Bobby Knight
Clot,
Al is much funnier than Jessie.
CF,
don’t insult the slug. :)
I used to see a lot of Banana slugs around UC Santa Cruz after it rains.. you know.. there are a lot of mushroom to pick right after it rains.. :)
you leave bowls of beer out in the yard for slugs……
here is what grim does in his free time
http://www.youtube.com/watch?v=gwZD59Ic9T8
just heard that Ann Coulter wote this in her column:
“We should invade their countries [Muslims], kill their leaders and convert them to Christianity.”
thoughts on her anyone?
CF,
And I thought those slugs were looking for mushroom just like I did. :)
And our fearless leader, JB… working full time, working on this blog, scientist and has a wife? JB is Uberman.
Ann Coulter.. now I remember why I hate Republicans..
Funny…Ann Coulter is a complete clown who aspires to be taken seriously. Her offensive, caluculated and hate-filled speech is so outrageous that it fails to have any real impact. It’s hard to be offended by such a shrill, simple-minded biyatch. Her brain must be the size of a pea.
On the other hand, Imus is a complete clown who never asked anyone to take him seriously. Yet, one offensive remark has taken him off the air.
Makes you wonder exactly why Al and Jesse don’t take on Coulter. Could it be that the only reason they haven’t is that she’d snap back harder…and dirtier?
Imus;
Of course what he said was degrading, insulting,damaging and insensitive. He certainly deserved his due punishment. Fired? Was his comments delivered with malice and hostiliy? No, at least my opinion.
Who in politics, business or the msm went to bat for Harold Ford,[Terry Nelson/Bimbo ad] more than Imus? Not Jackson nor Sharpton. I seem to recall Imus being outraged by the bigotry, slander and slop being tossed around in that campaign.
Remember his satire and horseplay did/does not discriminate. It touches all; gender, race, income levels, etc.. I’m white, Irish, Catholic. I think the skit [Bernard], with Cardinal O’Connor/Egan is one of the best. Not to mention his comments regarding white trash.
I don’t need to go into Imus’s charitable endeavors, Clot has done that. Simply, some people talk the talk, others walk the walk. Don’t actions speak louder than words?
As clot said, Imus is an idiot and at least he can be funny.
Ann Coulter.. hmm.. where do I start?
I would love to put Al and Ann in one room and see what happens. Anyone care to guess?
I have a lot to say re: Imus. But since my opinion is in the distinct minority here, I will refrain. Instead I want to post something that our friend Richard might enjoy.
Westfield listing (mls 2290447) remarks: “A FANTASTIC PRICE.ALSO THE BUILDER WILL PAY 1ST YEAR PROPERTYTAXES, PURCHASE AND INSTALL A PLASMA TV UP TO $5000., CUSTOM PAINT INTERIOR OF HOME TO BUYERS COLOR CHOICE., INSTALL PAVER PATIO UP TO 600 SQ.FT”
The next time a buyer comes to his door, he can direct them to that house. ;-)
IDave (163)-
Coulter would eat his onions.
Possible (164)-
That one made my week! Thanks.
What a value. I’d rather the builder give me 320 shares of AUY, instead of the plasma. It’s be a nice hedge against the equity I’d lose the minute I closed title.
I guess you gotta offer the plasma to attract the moron who’d actually buy a house like this…at any price.
All disclaimers.
Clot,
AUY?? HMMNNN.
and I didn’t know Clot was a gold bug. I thought only Bob and I were gold bugs.
now clot, feel free to park your trailer filled with gold in my drive way – same offer as I gave to Bob.
I know I know Bob.. as for the lootting and that “forbidden” word of Downtr….
GOOG to buy doubleclick!
Now, we should really really be afraid
Neighborhood Assistance Corporation of America (NACA)
http://www.naca.com/members/eligibilityIntro.jsp
5.62% 30 year fixed mortgage, no clossing costs, no down payment!
cost – $600/yr (for 5 years) in membership fees. 5 weekends a year of voluntary work.
My wife is a silver and gold bug. She is obsessed with currency, inflation, and survival, not necessarily in that order. Personally, the stuff is too damn heavy for me to justify carting it around the dusty, neon streets of our future post-apocapolyptic landscape, so we’ve reached in an impasse in our relationship. Fortunately, it’s something we can resolve with a good cab and some free time. Maybe we can compromise by leasing our metals to ID, BC, and clot.
just heard that Ann Coulter wote this in her column:
“We should invade their countries [Muslims], kill their leaders and convert them to Christianity.”
thoughts on her anyone?
2001 called. They want their topic back.
Longtime reader, sometimes poster, signing off. I thought this was a real estate blog, not a boys club. It’s just not fun–or informative–anymore.
Imus’ show was certainly meant for a narrow audience, but the impact of his charitable efforts cannot be disputed
Clot,
I have never disagreed with you before, but I certainly do now, I am tired of hearing the above line quoted and quoted – and I am surprised to find it your comment as you are not usually a repeater but I guess that’s what everyone who does’nt feel he should have been fired says.
Many a good man has done some evil things, and
many an evil man has done some good.
There are many people who give of their time, and their money, and don’t offend anyone in the process.
To those defender’s of Imus who compare him with Al sharpton, so Imus looks good I say “So What!” Your Comparing 2 different kinds of snakes.
Ann Coulter isn’t even worth moving my fingers on the keyboard.
KL
sellout (173)-
Sayonara. You wanna fill a RE blog 24/7 with nothing but RE-specific content? Go ahead and try. You’ll get maybe one day out of seven worth of readable stuff, and pretty soon your posters will be looking for a strong crossbeam, a folding chair and ropes with which to kill themselves (from boredom).
All the blithe-seeming talk of stocks, gold, commodities and politics here ties neatly into the collective zeitgeist that influences RE…and influences the players in the game and our thoughts concerning RE investments.
Sorry we can’t fill your order for nonstop talk on cap rates, mortgage rates and comps. Or perhaps subprime-all-the-time is what floats your boat. RE is a slow-moving, boring game that’s completely dominated by its fundamentals. That’s why it attracts so many fundamental idiots. Sorry we’ve failed in keeping it lively for you. And, I can’t believe that Grim’s meticulous and painstaking charting of the biz’ fundamentals isn’t enough to keep you around. It is- by far- the best technical reporting around on what’s really happening, and it’s a shame that Pulitzer Prizes can’t be awarded to bloggers, because he’d wine one, hands down.
Goodnight, good luck…and good riddance.
IDave (168)-
Gold bug? If it comes out of the ground, I like it.
Thanks for the offer of your driveway.
CJ,
was it my line about the cab and some free time?
KL (174)-
So, looking back on the whole Imus thing…who wins? Let’s see:
1) Sharpton/Jackson? Maybe. However, Jackson probably fades back into complete insignificance; Sharpton gets some face time until he incites another murder (a la Freddie’s Fashion Mart) or fabricates a criminal complaint out of thin air (Tawana Brawley).
2) Imus? Maybe. Don’t forget that Mel Karmazin (Sirius) is the guy who took him from rich to stupid rich. You can say any damn thing you want on satellite, and having Imus in their stable probably gets satellite radio into cars that are a step up from Ford 150 pickups.
3) The public? Hardly. Gotta figure Michael Savage will be the next one the Victim Patrol turns against. Pretty soon, the airwaves will only be filled with stuff like Joan Hamburg and food talk.
4) Free speech? Evidently, corporate America finds it to be overrated. Lookout for when they start coming here to shut us up.
Clot,
Re #4 on your list: sic semper tyrannis
prof (179)-
Your wife is onto something.
From HSH Associates:
Two-month Highs for Mortgage Rates
The general drift upward in mortgage rates continued this week, according to the nation’s leading survey of mortgage prices. Thirty-year fixed-rate mortgages (FRM) rose by six basis points (.06%), ending the weekly survey at 6.38%, setting a fresh two-month high. Hybrid 5/1 ARMs continue to rise a bit faster than fixed rates, adding eight basis point to land at 6.22%.
“just heard that Ann Coulter wote this in her column…”
You’re about 6 years late in hearing.
But so far we’ve invaded their countries, killed their leaders, and the last item would certainly be an improvement.
clot
she’s a bit of a maverick. Found a gold source she did.
I hope CLOTPOL, that you won’t mind that I am re-posting what you wrote above(#142) about Imus and his gifts to the downtrodden, the sick and the poor–especially the children. You did a fine job in summing-up what he had done through all these years. I wasn’t a ‘fan’ of his. Most of the time when I sometimes watched him in the mornings on TV, I couldn’t understand what the old burn-out looking guy (He was ONLY 66 years old-WOW !!)was talking (more like mumbling) about…..But the man’s heart (IMHO) was always in the ‘right place’
A few years ago I had a contracting job in what was called the ‘IMUS WING’ of the Hackensack University Medical Center— I had noticed the lettering (IMUS-WFAN etc.) on the outside wall of the building about three stories high and wondered if that was the IMUS of radio fame—It was the same.–At that time, I had no idea that he helped build that childrens wing…..Today I rode by to see if it was still there and Yep, It was : —silver lettering fastened to the red brick–three stories up:
DON IMUS WFAN PEDIATRIC CENTER FOR TOMORROWS CHILDREN—–corner of Atlantic/Second streets —In Hackensack………….When I looked up at that and wondered if that so-called “reverend” sharpton and mumbling little jackson has done as much as MR. DONALD IMUS has for the HUMAN RACE !!!!
______________________________________________
Clotpoll Says:
April 13th, 2007 at 4:43 pm
Imus’ show was certainly meant for a narrow audience, but the impact of his charitable efforts cannot be disputed:
The show’s charity fundraiser had raised more than $1.3 million Thursday before Imus learned he had lost his job. The total had grown Friday to more than $2.3 million for Tomorrows Children’s Fund, CJ Foundation for SIDS and the Imus Ranch, Deirdre Imus said. The annual event has raised more than $40 million since 1990.
The Deirdre Imus Environmental Center for Pediatric Oncology in Hackensack, N.J., works to identify and control exposures to environmental hazards that may cause adult and childhood cancers. Imus Ranch in New Mexico invites children who have been ill to spend time on a working cattle ranch.
On the other hand, Al Sharpton and Jesse Jackson are both frauds, criminals and longtime race-baiters, who promulgate a culture of victimization in order to both control black people and to use their social and economic voice as tools to extort the media and corporate America for their own, narrow personal gain.
“How did a CA strawberry picker earning $15,000 a year qualify for a loan of $720,000? The answer, say the experts, lies in a lending industry that got too innovative for its own good.
Last week, a coalition of civil rights groups, including the National Council of La Raza, the Center for Responsible Lending and the NAACP, called for a national six-month moratorium on foreclosures — after observing that the subprime crisis disproportionately affected minorities.”
Bibaaa laaa razaaa! (brotuh’)
Reporter to guest: We are going to have to leave it there, and in a way I am glad, because I am getting vey depressed listening to you Noury….
http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vrlYJLMZ4fRY.asf
I don’t mind a government bailout if restrictions on risky lending is legislated.
From IL comes HB4050.
http://www.idfpr.com/newsrls/032107FINAL4050ruledraft31607.pdf
Special counseling required if –
a) the loan permits interest only payments; or
b) the loan may result in negative amortization; or
c) the total points and fees payable by the borrower at or before closing will exceed
5%; or
d) the loan relies on stated income; or
e) the loan financing transaction includes a simultaneous 100% second-lien loan; or
f) the loan includes a pre-payment penalty; or
g) the loan is an ARM.
If the borrower still goes through with the loan, the broker or originator must submit information for inclusion in the predatory lending database.
Discussion on HB4050
http://forum.brokeroutpost.com/loans/forum/2/109791.htm
from MN
http://forum.brokeroutpost.com/loans/forum/2/109791.htm
In MN a new Predatory Lending bill recently passed the House of Representatives and is headed to the State Senate. A few of the highlights of the bill are as follows:
– Eliminate ALL Pre-payment penalties (except for “A” paper loans)
– Require all licensed Mortgage Originators (Brokers) to prove a $250K Net worth
– Requires ALL Brokers and Employees (L.O.’s) to have 15 hours of eduction on Law and Ethics
– Raises the Licensing fee from $850 initially to $5,000.00 and from $425 every two years to $2,500 every two years.
– Requires L.O.’s to document (prove) that a borrower has the ability to repay a loan. (no more stated)
This blog is degenerating into a poker game on M*A*S*H.
Deal me in.
sellout,
As Clot pointed out, 24×7 discussion of slow moving RE market can easily be compared to Chinese water torture – drip, drip, drip, drip….
I wonder why you felt the need to let everyone know that you are leaving.
Hey Clot,
thought I’d let you know that I’m a hare’s breath from moving back to tarheel country.
Major Houlihan.. I mean.. Pat..
do you want 5 card stud? or Texas Hold’em?
Captain Pierce..
i’ve missed you Pat
profuscious.. i will take the gold medal.. you can give a lot of silver to bob and clot..
gold sure is an excellent hedge against inflation.. i rather hold on to gold than real estate (now I finally wrote something about real estate) at current economy..
What would be smaller…a hare’s breath, or a hair’s breadth? I like them both, but only if the hare’s not a garlic eater.
Prof, you made me laugh so hard after two drinks. I can’t stop.
Personally, I like the Caribbean stud, myself, but only if he comes with a free cruise.
Pat, I don’t know anything about small things.. but if you are speaking of … hahaha..
and I thought I was the funny one.. now you tell me you have been drinking…
Hi.. I am major hullihan.. i have been a..
Pat,
Now I know you’ve enjoyed this little dittie, but for those who haven’t imbibed yet, from my old, dear friend Dick West, humorist for UPI from 1955 to 1990:
“twice blessed is he who drinketh from another man’s wine, for he shall have his own on the second day.”
Now for CJ’s sake, can we apply that logic to the real estate market?
Pat.. good choice.. may I volunteer Bob to dress him up as Caribbean stud in grass skirts? Bob will volunteer himself to offer as many free rides as you desire. He has better motion than any motion of ocean.
Profuscious: twice blessed is he (BC Bob) who sold his real estate to a bag holder, for he shall have the opportunity to buy back at half the price in the future?
good lord…..JB, filters, help!!!!
see what happens when mommy isn’t here to monitor free speech?
am I going to be emasculated, eviscerated and fired from my soapbox now?
Let the digital mommmies come out and rebuke my statements. Sic Semprer Tyrannis
Same as it ever was. Tyrannis sick distemper.
clot
this is 0 hour. I’m heading for the hills. Like Pat said, I’m a ha’er’s breadth from NC right now.
Random thoughts all over the place…
In one of the strange paradox’s of modern life, people who hate Al Sharpton don’t seem to realize that they increase his credibility whenever they hold him up as a standard in any comparison.
My local school board is asking for a 4% increase. I’m sure I would vote for it at 2%, but the 4% request isn’t
outrageous.
Renting’s letter to Menendez was very good.
Back to Sharpton, say what you will, but he has clearly put a lot of effort into gaining a role as a spokesman for the black community. There’s still way too much racism in this country and blacks in New York know he is always on their side. That is a powerful thing.
Even if he were to negotiate peace between the Israelis and Palestinians and cure cancer, he still has to answer for Tawana Brawley.
Inventory in Monmouth County really started to pick up this week, particularly in the NE part of the county.
Imus’s apology might have been enough if he then shut up about the incident, but he kept digging and his history is not good. When the advertisers bailed, his fate was sealed.
I have to believe that the rise in interest rates did slow the dollar’s decline, but it clearly wasn’t enough to stop the train.
Good night.
Ok, since Real Estate in Northern NJ is not the topic of discussion… has any had a Sazerac?
How about 4 or 5, tonight?
With bonded rye (Rittenhouse or Old Overholt or better)?
If ya had, you’d either be smarter than me and not comment on politics (and sundry topics) and stick to real estate in NNJ.
Or, you’d be too pie-eyed to comment on anything.
I’m the later of the two.
G’nite
great day for open houses tomorrow LOL.
>>back to Sharpton, say what you will, but he has clearly put a lot of effort into gaining a role as a spokesman for the black community. There’s still way too much racism in this country and blacks in New York know he is always on their side
The white establishment annointed Sharpton the representative of the black community, not blacks themselves. Most of the blacks I know can’t stand the man and say he doesn’t represent them. And in case you’re wondering they are fine with being called blacks not african americans.
Hmm…What ever happened to Freedom of Speech? You know Rev. Jackson has used racial slurs publicly in the past and let’s not forget his love child. Rev. Sharpton leaves a lot to be desired for as we well know. I’m just tired of people sitting in judgement of others when they’ve done the exact same thing. Sure there should be consequences for actions, but this is hypocrisy, if not a public lynching.
Next question…do you feel -realistically- that there can be a mortgage bailout? This is an extremely expensive proposition, and I don’t feel the government can afford to do it. As well all know there’s a trillion in debt coming up for adjustment, there’s now way a “universal” and fairly applied bailout could happen. (don’t even get me started on why it happened in the first place – that’ll be a rant).
great day for open houses tomorrow LOL.
You know, I’m not one to blame the weather, but the past two months have been pretty unfavorable, especially the weekends. I can only imagine that this has some effect on the market (I’ll eventually get around to running that multi-way anova).
While inventory started to build early last year, the buyers came late (and thin). It’s now mid-April and we still seem to be waiting for spring, both this year listings haven’t increased at the same rates and the buyers are still thin. We’ll see what happens when the first few favorable weeks roll in (if they do).
jb
Next question…do you feel -realistically- that there can be a mortgage bailout?
I would make the S&L bailout and the LTCM bailout look like a walk in the park. The numbers are staggering.
So is it possible? Sure, like I mentioned above, we bailed out LTCM and the S&Ls, so precedent has already been set. Moral hazard, who cares? The government stands by to be the lender of last resort. Heck, Moody’s even changed it’s bank ratings to account for whether or not local governments would bail them out. Privatizing profit and socializing losses at it’s finest.
So will it happen? I think the probability is pretty low. We might see a few states attempt it, but they won’t have the capital to make a sizable dent in the debt.
On a national level? Not likely unless the fallout reaches a massive scale, for example Freddie or Fannie going insolvent.
Realize that a high sustained rate of inflation could be considered a bailout as well. The dollar can be systematically destroyed through inflation. As wages inflate, servicing prior debt becomes much easier. This has the benefit of being applicable to all overvalued asset classes, not just residential RE (Art, Commercial RE, credit card debt, etc).
jb
Mortgage Bailout
I see it coming but it truly benefits the corporations while looking like it is helping the little guy. NJ will do it and we will complain because it will only help really low earners who had no place buying a house anyway.
Lehigh Valley/Poconos
I have a fellow RN student whos husband is a auto mechanic and she REALLY wants to look out there. I need a simplified bubble explanation since we have way too much detail here.
Example?
Poconos used to be cheap, NJ/NY helocs happened boomers bought second house, boomers bought kids starter house prices went up 3X. Bill due soon, really bad…
If you want to see some lofty real estate, check this showhouse out:
http://www.statelyhomesbythesea.com
Doors open May 1 through 31. Could a be a fun date for you and the misses. And there is some amazing craftsmanship happening in this place.
Clot,
This subject should probaly be over and I would have replied last night ‘cept for a bad bout of indigestion ( having nothing at all to do with.)
You are quick witted and extremly literate obviously of superior mind, I am sure it’s extremly difficult to sway you and it is not my intention, although I have on occasion been swayed by your opinions. Not this time.
I do not feel my free speech rights will be affected at all by this, that’s a bogus argument and scare tactic, he will be hired again by satelite so he can keep up his charitable work, and stupid comments, it makes him feel good, but he was on radio being paid by sponsors, who pulled their support because of protests and outrage by many. Not just Sharpton and Jackson. Free speech is alive and well, but not always acceptable at your work place. I don’t think you’d get much business if you were to start calling people nappy headed ho’s on your blog. Ya think?
You know he’s like the popular kid you hate because he’s mean to people ( maybe even you or your friends) but people still like him, then he lets you in to his crowd and now you like him and you’ve probaly even forgot about your other friends. Come clot you know it…
KL
PS: I’m done w/ Imus
Lindsey (207)-
“…blacks in New York know he is always on their side.”
Lindsey, do you really believe this? A person who tells an entire race that needs to stop re-living its victimization that they’re better off continuing to assert their status as victims? A person who leads his people to believe that the hateful words of an entertainer trump their own sense of self-worth? A person who takes the meager moral and political capital of his community and uses it to blackmail corporate America into silencing his enemies?
BTW, I employ several black people who, to a person, cannot stand Al Sharpton.
http://www.financialsense.com/Market/pretti/2007/images/0413.h1.jpg
Chart shows how refinance deals correlates to market peak. Data from 1985.
218 is from
http://www.financialsense.com/Market/wrapup.htm
Hi guys,
Does anybody here commute to downtown Manhattan from the Fanwood/Scotch Plains area regularly? at rush hours?
I’ve just realized that the prices there are 10 to 15% lower than Fair Lawn, all other things such as schools and mileage to NYC being roughly similar. I’m puzzled. Could it be the difference between being in Union County vs. Bergen?
Also, NJMLS# 2709314 and 2706085, if anybody can look up status please.
Thanks.
Rich,
Can you tell me the story on these two NJMLS houses? the bottom one is rumored to be the house of Brooke Shields’ mother’s house.
2711540
2712244
Whoa! Clicked over at GSMLS, count stands at 31,960 -inventory is rocketing up at a ridiculous pace and the leaves aren’t on the trees yet!
reply to 209…
Sunday’s weather doesn’t look good at all…oops…just gave Lereah another excuse.
future report…April Home Sales down due to rainy weather on Open House Days…
Future Report: April Home Sales down due to Still Inflated Price.
My head hurts….
Marito,
2709314
ACT 3-33 32ND ST $389,900 3/8/2007
PCH 3-33 32ND ST $374,900 3/26/2007
ACT* 3-33 32ND ST $374,900 4/3/2007
U/C 3-33 32ND ST $374,900 4/11/2007
2706085
ACT 10-09 1ST ST $389,900 2/13/2007
ACT* 10-09 1ST ST $389,900 3/7/2007
U/C 10-09 1ST ST $389,900 4/11/2007
iDavid,
2711540
ACT 357 PLEASANT LN $689,000 6/18/2005
ACT* 357 PLEASANT LN $689,000 8/29/2005
U/C 357 PLEASANT LN $689,000 9/8/2005
BOM 357 PLEASANT LN $689,000 10/6/2005
PCH 357 PLEASANT LN $675,000 10/6/2005
PCH 357 PLEASANT LN $649,990 11/14/2005
ACT* 357 PLEASANT LN $649,990 12/16/2005
U/C 357 PLEASANT LN $649,990 12/22/2005
SLD 357 PLEASANT LN $610,000 1/23/2006
ACT 357 PLEASANT LN $729,000 6/26/2006 (“Renovated”)
EXP 357 PLEASANT LN $729,000 1/1/2007
ACT 357 PLEASANT LN $715,000 3/27/2007 (Same broker & agent)
PCH 357 PLEASANT LN $685,000 4/11/2007
This IS where Brooke Shields lived. I used to stalk… err, ride my bicycle past her hose as a kid.
2712244
ACT 440 HAWORTH AVE $2,650,000 9/8/2005
W-C 440 HAWORTH AVE $2,650,000 3/24/2006
EXP 440 HAWORTH AVE $2,650,000 9/8/2006
ACT 440 HAWORTH AVE $2,650,000 6/21/2006
W-U 440 HAWORTH AVE $2,650,000 3/29/2007
ACT 440 HAWORTH AVE $2,250,000 3/28/2007
(It’s very dated inside, but a cool looking exterior non the less)
Rich
Not only her hose but her windows, car, backyard…
Hose = House
Marito,
According to most realtors, they say, Fair Lawn’s housing price is high since they have great school system due to large Jewish population.
so take that with a grain of salt.
Rich,
The house you used to stalk, I mean, passed by riding the bike – does she still live there? does her mom live there? or did someone else live there now who is not related to Brooke Shields?
I saw that house so many times – yes, castle looking outside – but why is it so expensive?
I use to love coming to this site to hear other peoples oppinions on real estate conditions….Im done,The site lost it’s original intention..
iD,
I don’t know if her mom still lives there but the house is still owned by Shields.
Why is it so expensive?
Cause Brooke Shields lived there! Come on! Get with the program!
Ahhhh, old memories are coming back to me. The time a saw her in church and at the Dunkin Donuts in Emerson (the 1st DD around).
Actually, I don’t know why. It’s a beautiful town except for the fact that they have been knocking down some classis tutuors for McMansions.
Rich, I dunno how you do it. Look at those neatly-composed histories. I fell asleep on the sofa last night half-way through my second glass (lite!).
Still took me three hours to get the laundry folded this morning.
“classis tutuors”
classic tutors
I’m SO hung over from my “experiments”
The relevence here is not what is written, because it is nothing new…..however, what is pertinent is where this story appears and who is writing……this guy writes a colum about monitoring trends and is usually one of the first to notice something interesting. Bear in mind, when I first started sending content to grim, I would make a similar comment about RE issues popping up in the WSJ [circa late-2005]. It wasn’t so much the content of the articles, but rather the appearance of such articles at all and their increasing frequency. Bleeding edge [damn I hate that cliche]………..
WSJ
MarketWatch / Weekend Investor
Even the Seemingly Well-Off
Caught Easy-Borrowing Virus
By HERB GREENBERG
April 14, 2007; Page B3
You may have seen that LendingTree commercial with a happy-go-lucky guy named Stanley Johnson, who brags about his big house, his new car and how “I even belong to the local golf club. How do I do it?” he continues with a big, dumb smile, “I’m in debt up to my eyeballs.” Lowering his voice, but still smiling, he adds, “I can barely pay my finance charges.” The smile doesn’t leave his face as he drives a riding lawn mower, saying, “Somebody help me.”
Thanks to easy credit, many Americans have been living well beyond their means. But that credit picture is beginning to change. And when you think about where the U.S. economy might be a quarter or two from now, you have to wonder how many Stanley Johnsons are out there. This isn’t the stereotypical subprime borrower, with a spotty credit history and low credit score, but instead people perceived by friends and neighbors to be living the good life, some even sporting good credit scores.
‘How do I do it?’ — the LendingTree guy.
With the mortgage markets tightening, especially as certain types of adjustable-rate mortgages face a wave of forced refinancings, we will know soon enough. For a preview, all you really need to do is check with someone like R. Douglas Ley, a certified public accountant and certified financial planner in Macungie, Pa. Many of his clients live in a wealthy part of New Jersey. Few get a closer peek into what is really going on than people like Mr. Ley, who do taxes. As I recently quoted him in a MarketWatch column as saying, “I am shocked by the bad and deteriorating financial condition of many of my clients.”
He wasn’t referring simply to the “careless tapping” of home-equity loans as though they were ATMs with a bottomless pit or the extensive use of credit cards while paying only the minimum payment. More disturbing, he says, is how some clients have perilously little in taxes withheld by their employers but then wind up with a sharply higher tax hit at year-end because they have resorted to tapping their 401(k)s or individual retirement accounts for living expenses. Such moves trigger a 10% tax penalty for early withdrawal. “Two of my clients had to sell their homes last spring to cover their 2005 liabilities, some big numbers. These clients had adjusted gross incomes in excess of $200,000. At least they were lucky because the housing market was firmer a year ago,” he says.
Of course, these are merely anecdotes. Still, such stories suggest there are more Stanley Johnsons among us than we may think. There are plenty of people who are doing just fine. In fact, it appears, based on reports from some CPAs, that many who created wealth in recent years through wise investments or high-paying jobs still are genuinely wealthy. But it is the tales of trouble that resonate for anybody trying to figure out whether the equity in overinflated homes really was a large driver of the economy in the past few years. Based on conversations with CPAs, mortgage brokers, financial planners and others from all parts of this country, there is little doubt it played an important role.
No region is better represented with ready-to-tell stories than Orange County, Calif. That is where, until 2005, Donald Parker owned a large insurance agency. He recalls how low mortgage rates spurred business in late 2001 with refinancings and home-equity lines of credit that required proof of insurance. “It really became excessive by the summer of 2004,” he says. “That’s when I started noticing that many of my clients had either refinanced or added a second mortgage or home-equity line of credit multiple times within the prior three years — often doubling or in some cases tripling their mortgage balances.”
He adds that it wasn’t the expansion of mortgage balances that was so alarming. “It was all the new, expensive cars being purchased and added on to their auto insurance,” he says. “Often people were calling to replace a Honda Accord with a new BMW or Mercedes. We were also receiving a lot of phone calls from our customers asking coverage questions: for instance, ‘Is my new Rolex watch covered if I lose it on vacation in Hawaii?’ ”
If CPAs and insurance agents are among the first to spot the problems while they are occurring, divorce attorneys like Bruce Hughes, also of Orange County, are among the first to see the actual fallout. “We see it as it happens,” he says. “From industry to industry over the years, they come in groups when various industries go through turmoil. Now it’s real estate’s turn. I can’t tell you how many mortgage brokers, builders, developers and others associated with the building industry have come in for a divorce in the past six months — and it’s increasing.” Those not associated with real estate, but hurt by the false sense of financial security because of it, are no doubt next. Calling Stanley Johnson.
splitting to avoid moderation………………..
The relevence here is not what is written, because it is nothing new…..however, what is pertinent is where this story appears and who is writing……this guy writes a column about monitoring trends and is usually one of the first to notice something interesting. Bear in mind, when I first started sending content to grim, I would make a similar comment about RE issues popping up in the WSJ [circa late-2005]. It wasn’t so much the content of the articles, but rather the appearance of such articles at all and their increasing frequency. Bleeding edge [damn I hate that cliche]………..
Thanks, CF.
How many years has it been since the last big dance for the lawyers and accountants?
cj sellout/george,
I know I am guilty of deviating from the RE topic. However, other topics discussed have serious implications for this market; dollar, eurodollars, ib’s, mbs, govt repos, liquidity, leverage, the fed etc.. If you feel otherwise, that’s your prerogative, but, [imo] you would be dismissing critical factors for this market going forward.
Personally, I enjoy the diversity of individuals and topics. I have learned a boatload regarding other topics that I don’t normally follow. In conjunction with this, I have been on this site for more than a year. Every bear on this, since then, has been dead b*lls right concerning this market. Almost every topic which we discuussed over a year ago is now msm. How many ways can you slice and dice a dead cat? Certainly not close to the plethora of tranches created by the mbs market. We may be in a period of 3-5 years of declining prices, imo, albeit slow as a snail. I would be bored out of my dickens on this site, if we did not veer off course occasionally.
You can certainly blast me and others for being off topic. That’s fine. Just don’t dismiss the work that Grim and others provides; charts, lowballs, mls #’s, etc, etc… Just tune me/us out but certainly stay focused on the reports provided on this site. However, if you do walk/run please follow up with us if you discover an alternative site that offers a fraction of the news/details/professionalism as offered here.
Rich,
What was that crazy liquid?
Pro,
Kudos to the tigress.
Chi,
Stanley Johnson and Mel Hall in the same weekend, one must savor the diversity.
Anybody seeing much movement in individual towns on the preforeclosures and REO properties ?
Over in PA, they really don’t seem to be moving much in the last few months, even ones that the banks obviously put some effort into. I don’t know if this is a result of empty pockets or fear.
this from another blog:
“Comment by lainvestorgirl
2007-04-14 08:45:22
New phenomenon to report: attorney in my family is working on a case where PMI is REFUSING to pay because the underlying loan was FRAUDULENT. This could be huge.
”
The FB’s are coming! (…with a vengeance)
#240
What happens in a case like that? Who is held responsible- the buyer or mortgage broker/bank?
I am not sure anyone posted or wrote about Indymac and its subprime and Alt-A lending.
But, I heard from a reliable source that IndyMac is coming back strong to the subprime and Alt-A market. They are even offering Interest Only payment 3-5-7 year option. What made them so bold?
[240],
Huge.
“YES, THE FOMC IS PREDOMINANTLY CONCERNED ABOUT INFLATION, BUT…”
“With inventory equal to 8.1 months of the February sales pace, this is the largest excess supply of new houses by this measure since January 1991 – the last housing recession. Even an industry membership organization, the National Association of Realtors, has conceded that conditions in the sector remain dismal, as evidenced by its forecast that existing single-family home prices will decline nationally in 2007 – the first such occurrence since the Great Depression of the 1930s.”
[edit]Note;
Before opening link; in addition to RE there are a myriad of other diverse, boring, economic topics.
http://www.financialsense.com/editorials/kasriel/2007/0413.html
Yes, I deviated from the real estate. But personally I don’t feel the need to apologize. It’s not just about real estate if you look at the heading. It’s about real estate, economy and politics.
It’s ironic that these two people felt that they have the right to demand certain conversation or show disgust. Part of being an adult is that you can filter out the information you don’t want. This is not a classroom. This is where people exchange information and sometimes, have “fun”.
On top of that, these two people ignore the great work of Grim and others just because a few of us veered off the topic.
Can two of you say that you contribute more than Clot or CF or BC Bob to this forum?
“What made them so bold?”
David,
How about either a dp or Tony Soprano like terms.
“Can two of you say that you contribute more than Clot or CF or BC Bob to this forum?”
David,
Thank you. However, I’m not in the same class. I just like to rant and rave.
So should I compare Clot and CF to T. Jefferson and B. Franklin while calling you Thomas Paine? I always thought of him as not an original thinker but a great orator who loved to rant and rave but probably the most pivotal person in American Revolution.
I think of him as quite an interesting dude. :)
P.S. This is Politics. :)
#237 BC: Why in your opinion will the price declines be so slow?
With all of the bad news etc., it would be reasonable to think that prices should be falling faster.
BBB,
You know the answer to that.
As CF pointed out, “sticky” factor in Real Estate market – compare to stock price.
BBB,
And I know the School Election on coming Tuesday. :)
Yes, I will vote – still debating how to vote this coming Tuesday.
Just so everyone knows, you can mail your tax return by Tuesday April 17th this year, without being considered late.
Noticed more than a handful of open houses today.. Trying to beat the storm perhaps?
jb
http://www.bloomberg.com/apps/news?pid=20601103&sid=aOPCmEOB_HQg
“Blackstone Considers $20 Billion Bid for Sallie Mae”
Weird feeling I get when I read this stuff. For some reason, I can’t picture it. Can you image a private equity bid for the Fed? Would that be a hoot?
Which one am I? Franklin or Jefferson? Either way, I’m way undeserving.
However, I do like to think of myself as the Rickey of Real Estate. His work ethic- as evidenced by this famous quote- is what I’m all about:
“I think playing cards gave me the opportunity to relax in the game.”
PS to cj and George: this is sports.
Pat (254)-
Come to think of it, the Fed’s a perfect LBO target. Tons of cash to pay down the debt incurred…plus you could always fire up the presses if you come up a little short from time to time.
………..and I thought the fed was a division within GS.
I don’t think PMI will come into play that often as most people financing more than 80% utilized 2 loans, not PMI
KL
“classis tutuors”
“classic tutors”
classic tudors
Pat,
You know when they say “don’t try this at home”?
I should have listened.
BC,
Sazerac is a cocktail (also a brand of rye) made with rye, congac or bourbon.
Swirl a little absinthe (I use Pernod) in old-fashioned and dump.
Muddle sugar cube with a little water and a couple of dashes of Peychaud’s and Angostura bitters.
Add 2 1/2 oz. of rye and some ice.
Sip and repeat.
Tasty but deadly.
Yeah, maybe. Unless they took out so much equity when they refinanced that they still paid PMI, betting on one or two more years of appreciation to clear it out on the next refi.
>>Instead I want to post something that our friend Richard might enjoy.
why would i enjoy it? i already own a house, actually a couple but only 1 i live in. in regards to westfield, i ran into a neighbor on an adjacent street i’ve never met before and she asked me if i knew of anyone on my street intending to sell soon. i said why are you interested? she said no but she has a friend who wants to get into this particular neighborhood and doesn’t want to fight with others on the MLS. note there are maybe 2 houses in my hood but they are about 10% over even the highest sold price so they aren’t selling.
#250 David: I know, but it has been sticky for a while now, and with all the sbuses etc, i would have thought the process would have sped up at this point. I will continue to be patient, oh and VOTE YESSSSSSSSS!!!!
#260 Richard: i guess the other 170 houses do not work for your neighbor friends.
Me thinks you tell tall tales.
214–LEHIGH VALLEY, PENNSYLVANIA
I am a long time resident of the area. Our prices shot up 80-100% from 2001-2006. Recently prices have dropped at least 20% and the inventory of homes is at record levels (it’s not even summer yet)
Foreclosures in Lehigh & Northampton counties rose 30% and climbing. That would go along with most of the NJ commuters getting those ARM’s or subprime loans.
I live in the East Penn SD, that’s been the fastest growing SD in the region. During the last year we have watched beautiful homes in our area not even getting offers, eventually they either try to rent them after 6-12 months of not getting offers. The problem is nobody will pay $1,200 – $3,000 for renting a house, that’s sometimes not even enough for the owner to break even. The eventually are foreclosed on. You can rent apartments or houses for $600-900 and get something awesome.
If you look at the lehigh valley multiple listing service and compare houses with the lehigh county deeds website, you will see about 90% of the homes for sale have been purchased between 2003-2006. These people over going to lose their homes soon, they are the people who’s loans are reseting from 2003-2004, we are going to see a few more years of this disaster.
By the time mid to late summer comes you are going to see lehigh valley prices drop another 40%. Our prices are going to go back to pre 2002 or earlier.
Our population has only risen 7% in 5 years. That’s really nothing to brag about, it might be high numbers in PA but overall that’s nothing. I watched my kids classes change dramatically in the last 3 years. Each year kids would leave, this year it jumped to over 10 kids, in previous years it was 2 or 3, all moved back to NJ. When you are commuting 1 1/2 – 2 1/2 hours a day that’s no way to live, you can’t enjoy even being a homeowner. That’s what is happening now, it’s insane.
I really don’t feel bad for these people who are getting foreclosed on. Anyone with sense should have realized our area especially was a “bubble market”. Our average family makes around 50-60k (combined). This was easy to spot in 2003, prices rose double digits for 2 straight years, we didn’t get jobs, we got commuters.
You asked about the Poconos, I worked there around 2001. They had basically the same thing happen here just 10 years earlier and this time it’s 5X’s worse. Prices doubled in the mid to late 90’s, the houses were built like garbage and Carbon & Monroe county had close to a 70% foreclosure rate.
The one thing that kills me here is our local paper, the morning call. From 2001-2006, the printed if houses rose 1%. Since the middle of 2006 it’s apparent to everyone except the morning call that prices have dropped and nothing is selling. They still print whatever the local realtor assocation tells them. They haven’t printed anything to show how both counties foreclosure rate is skyrocketing, it’s a bias newspaper that is completely in bed with the realtors.
If you need any more local reports, let me know. This market has made me laugh so many times, I have followed our market since the mid 90’s. Trust me on this one.
http://www.teamfisher.com/blogs/norm_fisher/archive/2006/12/09/If-a-Picture-is-Worth-a-Thousand-Words_2C00_-What-Are-the-Photos-of-Your-Home-Saying-to-Prospective-Buyers_3F00_.aspx
Fairly amusing. Click on “The Unbelievably Bad Real Estate Photography Hall of Fame” link halfway down on the right to see a virtual tour this guy put together.
Reetch (260)-
I would also certainly like to buy a house in a top town…without that house being offered in a competitive bidding environment, like, say, an MLS.
I would also like to be a Senator, astronaut, professional baseball player and someday, President.
Why would any fine resident of your fair town- being wealthier and more educated than the plebes downhill- sell his home in a non-competitive environment? Everyone knows that people who live in Westfield are far too smart to have engaged in equity-stripping, used liar loans to finance an unaffordable home purchase or otherwise be anything other than solvent and upstanding citizens.
Perhaps your neighbor’s friend should go slumming for bargains over in Linden (LOL!!!).
And, Reetch, could it be that your neighbor’s pal is a…lowballer!?!?
A lowballer? Looking in Westfield?
Everybody knows that town’s prices ONLY go up.
Even with 170 unsold units festering away. They’ll all sell for full price when the weather gets warm.
Westfield inventory now at 189.
“However, I do like to think of myself as the Rickey of Real Estate.”
clot…..I hate to let you down, but no Rickey would refer to him/herself in the first person…..correctly stated “[clotpoll] do like to think of [him]self as the Rickey of Real Estate.”
investorDavid Says:
April 14th, 2007 at 1:03 pm
iD: 2 points – #1 do you care to wager that both “defectors” are (1) the same individual (2) trolls
#2 contribute? I only come here for the free food.
http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vrlYJLMZ4fRY.asf
Roubini on global asset bubble.
Hi, I am going to view the following MLS on Monday. 4827433. A comparable MLS is 4819810. The comparable sold for 380. The one I am interested in is asking 400. The comparable is in nicer condition. I think the one I am interested in is vacant and I think the owners passed away. I would like to pay 350k for it. How should I go about negotiating. I like the house, but I want to underbid. Help please. The good things I have going for me is I am currently a renter and am pre-approved for that much. Please help. you can email me : orangecrush007@hotmail.com
thanks for any help!
Ok man – holy s— you have to be absolutely kidding me – stupid a55holes
http://www.bloomberg.com/apps/news?pid=20601103&sid=aXqHEXUKrjqY&refer=us
Lehigh Valley, join the club of far or ex-urban commuting areas that are first strike casualty sites. Last areas to get boom bucks and first areas to get busted.
I still laugh over a Philadelphia Inquirer list about a year or so ago that said my area was at no risk because it didn’t have the appreciation of other areas. In fact, appreciation was in their forecast. I think your area was projected high app, too. After being out-bid a few times, and watching the feeding frenzy around me, I knew for whom the rag tolled.
Lots of folks move to Bucks, Lehigh – even Luzerne County – for the bargains.
Problem is, they don’t buy the bargains. They buy the dream they’d never be able to afford in New Jersey.
My daughter’s class started with 23 kids. There are 18 now.
What’s the upside to our dilemma? Will we have a lot of empty infrastructure in a few years? Wastelands of big box centers? Or will these areas be the future location of choice for companies needing cheap workers…like in Wilkes-Barre? Those poor souls work for free in those fabulous new Customer Service centers. If they work 3rd shift plus OT and get triple time on holidays, they can afford their heart’s desired junk at the new retail stores.
Human migration ability is the resource to fight the good fight. Homeownership takes that away, doesn’t it.
272–PAT
I agree with you, it’s funny how the philly & allentown newspapers talked about real estate if the price went up $150 dollars. Now with everthing that’s happening, foreclosures, inventories all that stuff, they don’t say a thing. The realtors are still telling buyers than can get someone if they just hold on, occasional they get one of the last suckers, the tank is almost dry. Some people rely solely on the Morning Call and Philly papers. That’s really scary to think, rememeber that study that found 40% of homeowners don’t know what kind of loan they had. That was conducted recently on people who had purchased homes from 2001-Present. There are some around the Lehigh Valley that don’t want to believe it’s true. They are the one’s who get hurt the worse, everyone should be ready and look at the other end of the spectrum, this was an easy to spot as a deer in downtown NYC.
Does anyone have experience with Round Robin bidding in this slow market?
My theory is that it must be difficult to attract enough excitement to get enough bidders to create an efficient bidding environment.
I’d be careful to factor in the super secret shill decoder deflator on any bid.
Whatever you think the comps are, knock off a good cut for your increased risk (not just inspection issues, if any, but another 10% venue risk, at least).
If you lose the bid, and then get e-mails or calls after the bidding ends, automatically reject any offer. Your bid was too high. Let the next lower bidder below you be the loser.
Pat (275)-
“Super secret shill decoder deflator”? Are you drinking again tonight?
Come to think of it…I think that’s one of Bernanke’s pet economic indicators.
Beware middle-aged men concentrating on deflators.
ChiFi (268)-
Right you are…my apologies. To make it up, here’s another Rickey classic…one I’ve never heard before:
In the late 1980s, the Yankees sent Henderson a six-figure bonus check. After a few months passed, an internal audit revealed the check had not been cashed. Current Yankees GM Brian Cashman – then a low-level nobody with the organization – called Rickey and asked if there was a problem with the check. Henderson said, “I’m just waiting for the money market rates to go up.”
vinland (274)-
In this market:
“Round robin” = “I’m desperate”
Pat and Lehigh:
The Philadelphia Inquirer is owned by one of the Toll Brothers. ‘Nuff said.
From the Asbury Park Press:
Some subprime loans can’t be changed
As lawmakers and regulators try to help strapped homeowners with “subprime” mortgages stave off foreclosure, they face an unexpected hurdle: Wall Street.
From Newsday:
Careful a ‘rescue’ doesn’t sink you
When Cindy Rankin of Rocky Point ran into financial trouble and faced foreclosure on the house she’d owned for 14 years, she decided to refinance her mortgage through a broker she had used before.
At the September 2005 closing, the mortgage broker put his name alone on the deed and mortgage, Rankin said. She decided to proceed with the closing because the broker told her that otherwise her house would go up for auction.
Now she faces foreclosure again. And because the broker, whose name appears on the deed, owed $70,000 in federal income taxes, the Internal Revenue Service placed a lien on the Rocky Point property.
“I couldn’t believe what it said,” Rankin said of the foreclosure notice she received in September. “I was like, ‘Wait, wait, wait, wait. IRS lien. For what?'”
Rankin, 36, a nurse’s aide, is among a record number of homeowners facing foreclosure, many squeezed by rising interest rates. In Suffolk in February, 1,639 homes – one out of every 319 – went into foreclosure, the highest rate in the state, according to Realty-Trac, an online foreclosure marketplace. In Nassau, 367 homes were foreclosed – one out of every 1,248, the fifth-highest rate in the state.
Rankin’s problems underscore a pitfall homeowners can face if they turn to people who offer to rescue them from their financial woes: The homeowner can get caught up in the rescuer’s own financial problems.
From Seacoast Online:
Code red on U.S. housing industry
You don’t want the truth, because deep down in places you don’t talk about at house parties, you are mortgaged to the hilt, inching toward financial ruin via excessive credit card debt. You’re trying to keep up with the Joneses; you’re living beyond your means.
You’re mortgaged to the hilt in part because of poor government policy that turned shelter into one of America’s biggest economic sectors.
…
Most of us today taking on massive $250,000, $350,000, $450,000 mortgages were left as prey of lenders due to a failure of the government to tighten the spigot that was an effective means for stimulating the nation out of recession in the early to mid-1990s.
American governmental policy and free-market capitalism turned shelter into a gluttonous, speculative piggy bank with inevitable cracks.
I’m an average Seacoast resident. I’ve got a wife and a kid and a decent-paying job. My wife is lucky to work a half-time position to spend more time at home with the baby — we also save on costly child care. Our household income is in the neighborhood of $80,000, appreciably greater than the $57,372, three-year average median household income in the New Hampshire for 2002-04.
However, due to a mortgage, plus property taxes, in the range of $1,900 a month, we cut corners, make due, scrape together money for modest vacations, yet still face an uncertain future. In fact, our budget shows we run a $252 monthly deficit if we don’t factor in how our federal income tax return keeps us barely in the black.
That house over our heads is an incomparable burden.
I don’t have a Ph.D. in macroeconomics, but I can throw together an Excel spreadsheet. I can identify revenue shortfall against expenses. I can statistically show how spending 28 percent of pre-tax income on housing is not sustainable while it feeds the insatiable housing beast industry. I’m not employed to sell houses, mortgages or to use the economy as a tool of political ideology.
Statistically, I know mortgages are so large today they are choking off other areas of the economy like vacations, dining out and living on the Seacoast. Forget about new furniture unless you turn to the credit card or cash out equity in your home.
…
My wife and I bought our house in 2004 for about $235,000 and it appraised a year later at $265,000. If my house appreciates by 227 percent by 2018, it would be worth $602,273. Hallelujah! Jackpot, right? We’ll all be in serious trouble if starter homes in America cost more than half a million dollars.
Economists use words like affordability, economic diversity and sustainability. Politicians use them as a punchline.
Is this a code red on the housing industry?
You’re damn right it is!
#283,
How dumb can Cindy Rankin be? Does she want to buy Brooklyn Bridge? I have it 50% off this week.
Spring massacre has arrived!!
Inventory in NJ went up 3.5% last week (3000 units), just shy of 2006 high. I see prices dropping at a rapid pace around my town. If you need to sell, cut your losses and run fast.
Clot ;) super secret shill decoder? Not drinking, just cleaning out the little one’s Easter basket and looking at the silly doo-dads while I was reading.
Any opinion on Fed raising rates to rescue the Dollar and putting the final nail on housings coffin?
Frank (288)-
Put yourself in their place: you are a political appointee, working in the government sector.
Now, do you think it is worth it to trigger a recession in order to shore up the dollar?
From the Star Ledger:
Spending cap helps to rein in budgets
As it cobbled together its budget this year, the Flemington-Raritan School District respected the new 4 percent cap on spending that is a centerpiece of the Legislature’s property tax reform.
But it wasn’t easy.
…
It’s a story being repeated across New Jersey, as residents prepare to weigh in Tuesday on the first school budgets assembled under the Legislature’s new rules for curbing local spending in a bid to control property taxes.
A Star-Ledger survey of 193 school districts across North and Central New Jersey shows the new limit appears to be having an effect.
Most districts came in above the 4 percent limit, invoking waivers or special spending proposals to seek tax increases that in some cases were as much as triple the new state limit. But two-thirds of the districts reviewed kept proposed tax hikes below 5 percent, and the average increase was about 4.5 percent — far below recent increases that typically have been close to 7 percent statewide.
If the trend found among the districts surveyed holds up statewide, it would mark the lowest average school tax hike since 1999.
…
Legislation Gov. Jon Corzine signed earlier this month (A-1) requires districts to keep their proposed levies to the new 4 percent limit — but with some big exceptions if they can document extraordinary increases in health care, special education and other tuition costs.
…
Take Nutley, for example. Corzine visited the high school last week to trumpet his new property tax measures, including the cap, a new state comptroller to monitor government spending, and plans for an average $1,000 tax rebate for most homeowners in the fall.
Yet Nutley has come in with a proposed 4.9 percent tax increase, due largely to health care costs that have risen 9 percent. The district is also asking for an additional $573,000 in a separate ballot question for new technology that would bring the tax hike to 6 percent.
Those totals include two new staff positions at the high school, and new gifted and talented programs in the elementary schools.
“But every year it’s getting harder,” said Superintendent Joseph Zarra. “Without the waivers, it would be very difficult to get under the cap and still meet the needs of the students.”
In the Somerset County community of Green Brook, homeowners are facing a 9.5 increase in their school tax bills.
#289,
Recession in 2007 or 2008 is a lock, given the housing dive. I think Fed will have a credibility problem triggering foreign investor exodus, resulting in even higher rates. Hike or two would shore up the dollar, bring inflation down and add credibility to Fed’s talk on inflation.
Frank (291)-
The foreign investor exodus has already begun. Look at the 10 yr and out…the recent jump in rates can be traced directly to China’s newfound distaste for dollar-denominated debt.
Perhaps our best hope is that the bond market continues to do the “heavy lifting” on the long side of the curve so that the Fed doesn’t have to become active in either raising or lowering short-term rates.
does anybody know why George Hincapie is not in paris-roubaix this year?
http://www.france24.com/france24Public/en/administration/afp-news.html?id=070413142253.lb0rci50&cat=sports
thank you JB I didnt realize he was injured.
# of homes for sale in select towns for $900,000+ / town population (Source: City-data.com)
Westfield – 100 listings / 29,918 pop.
Milburn/Short Hills – 80 listings / 19,765 pop.
Summit – 48 listings / 21,200 pop.
Thank goodness the investment bankers won’t have to get into bidding wars with each other in Westfield and Short Hills for their starter castles.
Hi all, back from my trip in South Florida. Prices of houses in the Weston/Ft. Lauderdale area seem to be not that far from North Jersey prices and the property taxes are a little cheaper but home insurance (hurricanes) will kill you alone. Couple that with monthly fees for living in a closed community (nicer homes here) and there really doesn’t seem to be an advantage to living in South Florida unless you like it warm to hot 365 days a year.
And for any decent paying jobs, you either got to get something in Ft. Laud. or commute to Miami. Just my $0.02.
A story of almost becoming a bagholder…A quick thank you for all the info on this blog.
I was in the market for LBI property and had missed the upside almost getting in 2002 – and with the downturn, was trolling for bargains (holding out for the 30-40% drop to get to 2002 to 2003 prices) when I came across a large, unimproved, solid, well located, highly rentable (would cover 3/4 of my costs) property – seriously considered it as it was dropped numerous times. Originally overpriced so it got caught in that unsalable vacuum of being on the market too long, too high.
Their new listing agent was smart and saw the impending drop in prices and increase in inventory, and lowered it drastically in late Feb to beat the spring unknowns. It was now down 25% asking from the OLP.
OLP 711k in early 2006
Was lowered to $529k
After an offer in the mid 4’s and another interested party, they agreed on 490 – 30% below OLP – meeting my requirements.
In a normal market it was a very good deal.
In the following weeks, a number of properties similar (but not as good for various reasons)have been lowerered to low 5’s with immediate pending (probably offers in the high 4’s)
Sellers interested in getting out are lowering and selling.
I was encouraged and concerned that there is more down to come – or at least more competition in the next year – which will further depress the prices – and this is not including the larger economy factors you guys discuss every day.
Long story short – after applying for mortage, doing inspection, I bailed out. Losing a few $. No loss in deposit though.
Again – a great buy in a “normal” market, but we’re not in a normal market.
I will do what I originally planned – wait and monitor until 2008/2009 when we will know the true consquences of this economy. Prices will certainly not increase in the next 2 years, and even if interest rates rise, that should depress the prices – which is a better opportunity for refi lower in the future.
My original plan is back and this time I will be patient.
bubblewatcher (298)-
So, basically, you’ve spent five years spinning your wheels?
You missed the run-up in ’02…and you’ll miss the bottom this time around.
Agreed that it is impossible to predict the top or bottom and this opportunity made sense – the reason I went in at this point.
But on second look the affordabilty just wasn’t there yet.
Bubble (300)-
Would the property have cash-flowed positive at the agreed-upon price & financing terms? Would your NOI have been acceptable vs. alternative investments?
bbb [249],
Unlike stock market bubbles, real estate bubbles [prices] don’t pop. Stocks are marked to the market, you don’t even have to wait for closing #’s, you can logon anytime during the day and get a market. With stocks, you see huge volumes [capitulation] of transactions at ever lower prices during a stock market collapse. Panic is appearing right before your eyes, real time. In addition to this, some stock markets crashes develop over time. The Nasdaq peaked in early 2000 and reached its ultimate low in late 2002.
Housing bubbles collapses are marked by large increases in inventory and a sudden disappearance of transactions. Buyers seem to evaporate. The market turns on a dime, like Bob Toll said, “like someone turned off the switch”. The greed that was apparent in the psychology of buyers that developed at the top the housing bubble now dissipates. What happens on the way down is that houses hit the market and buyers are awol. Nobody cares about the open house down the street, ambivalence sets in. Fear begins to permeate thru the market. Bullish news [if there is any] is ignored, bearish news is magnified.
Now, buyers don’t have to buy and sellers wait to get “their” price. Sell [at their price] to whom? Transactions dry up, periods of time pass when there are just a sprinkling of transactions, in relative terms. It’s a major standoff. The game is played at midfield and neither side advances to any great degree.
That said, after a disastrous spring, what’s next? Sellers can hold out until they can’t. At some point, sellers are confronted with standard life altering situations; job relocation, retirement, job loss, kids, divorce, etc…, just normal market factors. This process develops over years, resulting in prices deflating slowly. Housing price value changes are not experienced by property owners until they try to turn the property into a liquid asset. If there is little activity, is the real value of a particular property the 10% off 2005 highs, 6-8 months ago, or possibly 20% off 2005, in today’s environment? We don’t know until the asset is monetized.
Consider this a play with different scenes. Each scene incorporates different plots. We have witnessed Scene 1, the switch is turned off, the makeup of the market implodes on the weak foundation of its own insanity. Scene # 2 is just beginning, the spigots are turning off. There may be 2-3 scenes left before the curtain close on this nightmare. Some possible headlines for upcoming scenes; a major builder and/or lender goes bust, a full scale recession, etc…? The outcome of each scene will be accompanied by another prick in the overinflated balloon and is unique in its time frame and price decline. The only question is how many more scenes are left and the duration of each. IMO, the final scene will probably be approx 10-20% of the total time of the play and account for approx 30-40% of the total price decline.
Patience is the key, who knows what year the greatest % of sellers capitulate. I think it will be very interesting in 2008. Lastly, when these cycles turn they go longer and further that anyone can imagine. Unfortunately, mom, quarter on quarter, prices plod.
No. The numbers were negative even with full rental – with $4-8k neg/year after deductions, depreciation (a false deduction?), etc.
There was upside in the rental income (was being calculated very conservative), but the rentals have appreciated very little over the last 10 years. I figured they were due to finally increase to meet the prices – but this may reverse as there is competition to rent. Also improvements are expected by the renters.
This was partly an emotional, long-term investment – to have down the road.
$4 to 8 (not $48)
Bubble (303)-
Sounds like you did the right thing. Investment property that cash-flows negative in this environment can’t be expected to turn around anytime soon.
However, I think the potential cash flows on some quality properties will start to look up well in advance of the market hitting bottom.
Before you all beat up on Richard, the kind of behavior he’s describing is quite typical. It’s ALWAYS been hard to get a good house or apartment at a good price in this area. People go out and pound the pavement and HUNT.
A lot of my relatives have lived well into their 80’s and 90’s. They bought or built their houses at a time when it was quite common for people to buy extra lots to have space and a big yard. And they got good locations, too – top of a hill, cul de sac in a wooded area.
Ringing doorbells is aggressive, but not completely unheard of, either. What’s more common is a letter: “If you’re ever thinking about selling, please give me a call.”
In neighborhoods that are stable, if a good house is coming on the market because of a death, divorce, etc., the neighbors will tell their friends and relatives, and you might never see it appear in the MLS. It’s not the least bit unusual that someone’s mother passes away, and the house is sold to the granddaughter of another neighbor – privately and quietly.
Especially when it’s an estate situation, you don’t necessarily want to go through a public listing and all that entails.
If you rely solely on the MLS, you could be missing a lot.
#303,
Invest with your head not your emotions. Good move on your part.
scribe (306)-
Certainly, many homes in desirable areas have sold “at the country club”- or via some other form of private networking- over the years. For sellers of a certain profile, discretion and doing business outside the scope of public scrutiny are indeed benefits.
However, a great deal of benefit accrues to buyers in these circumstances. Anytime one can purchase real estate in the absence of a competitive bidding environment, it’s a good thing for the buyer.
The seller in the “estate situations” that you mention come to the game in an inherently-vulnerable position. Often, buyers assume that the seller is in a weak position and try to work that to an advantage. The only way to level the playing field for the estate is to place the home in as competitive a bidding environment as possible. That means listing the home and placing it in the MLS…not the opposite.
#308 in moderation purgatory.
Bloomberg: http://www.bloomberg.com/apps/news?pid=20601087&sid=aQUrHEhPwpZU&refer=home
Heebner Says Home Prices May Fall 20% Amid Bad Loans (Update1)
By Sree Vidya Bhaktavatsalam and Brian Sullivan
April 12 (Bloomberg) — Kenneth Heebner, manager of the top-performing real-estate fund over the past decade, said U.S. home prices may plunge as much as 20 percent because of rising defaults on riskier mortgages.
Subprime loans, made to borrowers with a history of missed payments or untested credit, and “Alt-A” loans, which require little or no documentation, account for about $2.5 trillion of the $10 trillion in outstanding mortgages, according to Moody’s Economy.com. As much as 40 percent of these loans may default, flooding the real estate market, Heebner said.
“It will be the biggest housing-price decline since the Great Depression,” Heebner, 66, said today in an interview in Boston. Prices may fall by a fifth in some markets, he said.
That would leave home prices at levels last seen in 2003 and 2004, the middle of boom that lifted prices to a record in 2005. The damage from high-risk mortgages will slow the U.S. economy, though not enough to send it into a recession, Heebner said. Fourth-quarter growth was revised to 2.5 percent from 3.5 percent because of housing, the government said March 29.
Heebner, who co-founded Capital Growth Management in 1990, manages the $1.6 billion CGM Realty Fund. The fund has gained an average of 20 percent a year in the past 10 years, the most of any real estate fund over that period, Bloomberg data show.
Falling Home Sales
Sales of new homes will tumble 16 percent in 2007, according to the National Association of Realtors. Existing-home sales will fall 2 percent, the first drop on record, the Chicago-based trade group has forecasted. Subprime mortgage delinquencies climbed to a four-year high of 13.3 percent in the fourth quarter, according to the Mortgage Bankers Association.
Fallout from subprime-loan defaults will also hit hedge funds, and to a lesser extent, mutual funds, that bought collateralized debt obligations and other securities backed by such mortgages, Heebner said. The investment banks and brokerage firms that package and sell these products won’t get hurt because they have passed on the biggest risks to the investors, Heebner said.
“They know the product is toxic; they’re not going to get caught,” Heebner said.
The CGM Realty fund does not invest in such securities, he said. Heebner said he has sold his shares of real estate investment trusts that invest in apartments because they will face competition from single-family homes that have been converted into rentals. His fund had 35 percent of assets in apartment REITs such as AvalonBay Communities Inc. at the end of last year.
Mining Companies
He’s buying shares of mining companies that benefit from growing infrastructure needs in India, China and Russia. CGM Realty Funds also holds shares of Las Vegas Sands Corp., the casino operator that is developing real estate in Macau, China, and Mexican homebuilder Desarrolladora Homex SAB.
Heebner is known for making concentrated investments in a few industries. He sold homebuilders after owning them from 2001 to 2005, record years for home sales. He bet against technology and telephone stocks in 2000, correctly timing their collapse.
Heebner, whose Capital Growth Management has more than $6 billion in assets, also manages the $2.3 billion CGM Focus Fund. The fund has advanced 13.5 percent this year, making it the top- ranked diversified U.S. stock fund, according to Chicago research firm Morningstar Inc.
Clot,
I’m not talking about a “country club” environment. I’m talking about a nice, but modest, blue collar area, where many of the neighbors have known one another for decades.
A lot of long-term owners own their houses outright. Given current pricing levels, it’s more than they ever imagined. They might get a little bit more if they go public, but the trade-off is a lot of stress and strain.
If you have multiple parties that are interested, you can have a bidding war – it can be handled by the family attorney.
I’ve been through this process, where the family attorney handled a very heated bidding war. And according to NJ.com, we got one of the top 15 prices in this area.
One of the bidders came through a realtor, but the winning bidder was a friend of a relative. And the house wasn’t in the MLS.
What I’m suggesting – don’t just look at the MLS.
There’s a lot that flies below radar.
A lot of the time, what attracts people to a neighborhood is that they have friends and family in the area, who will be on the look-out for a good house coming on the market.
Clot,
PS, I’m not arguing against realtors. I think good realtors provide a valuable service, and have certainly been key for some of my relatives who needed the help.
But I think, if you really want a good house in a good location at a good price, you have to do more than look through the MLS.
Ok folks, I have a question: Cary, North Carolina. Gimme the lowdown, upside, downside and everything in between. Any links, blogs or info you can supply would be appreciated. I know a lot of New Jersey/New York folks have moved there. Perhaps there’s a blog or forum where I could ask the transplants about their experiences? Thanks.
“The IMF today released a report outlining steps that five key economies have agreed to take to smooth out lopsided trade flows. China will “improve” its currency system, Saudi Arabia will increase investment, Japan and Europe will liberalize their labor markets and the U.S. will cut its budget deficit, the report said.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOSizBkRg8XM&refer=home
The US will cut its budget deficit? Were the IMF officials drinking Rich’s Rye concoction? Are we cutting spending, raising taxes or some combination?
Gary #297
We just got back from Ft. Lauderdale yesterday. I agree in that I didn’t notice any great bargains in the 18,094 listings on realtor dot com on Wednesday. The public schools are tricky in Fla., too, so cost of living may have to include private school as well. We have friends who moved to Atlanta & what they don’t pay in NJ taxes, they pay in private school tuition. It’s not JUST housing prices & taxes that have to be taken into account, imo.
I grew up in Ft. Lauderdale and left after high school. My entire family lives there. I wouldn’t move back there for anything. The job market sucks, the people have no ambition (unless delivering pizzas is a career), and it’s freaking hot. Oh, and not to mention when you buy a house you pay higher taxes then your neighbor who bought 20 years ago. Property taxes are assessed on your purchase price. Did I mention there are no jobs to support the prices of housing? Many people are now leaving and moving to GA and SC. There just isn’t any opportunity down there….
Rachel
Back to the US cutting its budget deficit. From the Daily Reckoning, no link.
The Treasury Department released a report on Wednesday showing that U.S.
federal government spent more money in March than in any other month,
ever. Ever. This spending pushed the federal deficit up 13%, to $96
billion.
Let’s see. What have we been spending all this money on? The report
shows:
“Defense spending: $67.8 billion in March and $268.3 billion for the year
so far, up 7%.”
Oh, it gets better, dear reader. This is just a drop in the bucket…
“Social Security: $55.5 billion in March and $306.8 billion for the year,
up around 6%.
“Medicare and Medicaid: $83.4 billion in March and $418.4 billion for the
year, up 15.6%. Spending on the Medicare drug benefit is up 144%.”
This is what U.S. Comptroller David Walker likes to call our country’s
“fiscal cancer.” Walker thinks that while it is important to think about
and make strides in Social Security reform, what scares the beejeezus out
of him are the rising health care costs.
The United States spends 50% more of its economy on health care than any
other country. Walker points out that Medicare is already underwater by
$32 trillion – five times the imbalance in Social Security.
Helicopter Ben, over at the helm of the Federal Reserve, has already
admitted that the best time to have taken on these problems would have
been (sigh) ten years ago.
Great. No help there. And it gets even better: John Fortier of the
American Enterprise Institute says that with our political situation is
uncertain, with a “lame-duck president, a new Democratic majority in
Congress and the 2008 presidential race up for grabs. That doesn’t bode
well for tackling the problems anytime soon.
“It’s not the atmosphere to really do anything,” he said. How
reassuring…but, unfortunately, this attitude is not all that
surprising:
This is a pretty widely held opinion that not much is going to get done
regarding these unfunded liabilities. Thomas Mann at the Brookings
Institute echoes this sentiment saying, “This is a problem future
presidents and Congresses will be forced to reckon with, but don’t expect
any action on it in this Congress.”
So…things aren’t looking very promising for any sort of immediate
action on these issues, despite the fact that all parties involved agree
that the health care system is a huge problem – and one that threatens our
entire economy.
As Budget Committee member Judd Gregg puts it: “At what point does the
cost of the retired generation get so high that the younger generation can
no longer afford to have the quality of life that our generation had?”
Clot, scribe,
Word-of-mouth is certainly a viable means of searching for a home, as part of an overall strategy. I think in a “normal” market, it probably serves the buyer and seller well. The buyer wants a break on fair market value and the seller will be willing to shave a few percent off comp selling prices to sell the house and pocket a few extra thousand.
This market is anything but normal. Based on my experience (we have put the word out with family and friends and have followed up on three leads thus far) today’s sellers are looking to sell at the exact same asking price that their neighbors are asking for adjusted for updates to the home. With prices being so out-of-whack with what a well-informed buyer will pay, a discount of 1-2% doesn’t even come close to making a home a good value, let alone affordable.
Many FSBOs I have watched eventually listed with an agent.
This market is a snoozefest, how do Realtors keep themselves entertained?
Gary@313: Among North Carolinians, Cary stands for “Containment Area for Relocated Yankees. It’s very pretty, very suburban. Kind of soulless, if you ask me. The Triangle area is booming right now; lots of building, with all the growing pains that go along with it. My brother-in-law is on the zoning board in one of the towns in the Triangle area and they are having a heck of a time keeping developers from building on every square inch of open space. Roads in the area are congested because they can’t handle the traffic. Don’t fool yourself either that there are lots of jobs; it depends on the field you’re in. If you’re thinking tech jobs, forget it. My sister has friends who are Web developers who have been out of work for four years.
Taxes are low, but as they build more and each house has 3-4 kids going into school systems, watch for taxes to go up. It’s a very livable area, but people relocating from Jersey are resented and blamed for turning the area into, well, Jersey. That said, there are good restaurants in the area and lots of cultural activities as well.
If you’re serious about the area and are looking for a realtor, e-mail me at brilliantatbreakfast-at-gmail.com and I’ll give you my sister’s contact info. She’s smart, realistic, and doesn’t scam her clients.
There’s no way I can read through all the posts this weekend and see if this article was linked somewhere, so I apoligize if it was. From the Journal about the mess Americans are facing because of real estate. I got the feeling this is something BC Bob would love to read. I hope it works.
http://online.wsj.com/article/SB117650906019369740-email.html
D #315 But at least the private school tuition will end at some point, as opposed to here, where even when your done you still pay;more and more every year.
And the more we spend the lower the test scores get every year.
#302 BC Thanks as always for your opinion.
What a great day to be outside. Drove to Greenwich today at this “lovely” weather for my kid’s water polo game (yes, my kid scored 7 goals – I am beating my chest:). Been giving some thought about moving to Greenwich. Talking to one of the dads there. As most of you know, Greenwich is a mixed area – super rich and super poor. So many problems at high school (one Goldman Sach’s diretor told a Spanish kid – tell your dad to come cut my grass – started death threat last year). I guess I will stay put in my little sleepy town where everyone is all poor. :)
I meant, a child of GS director
Ok folks, I have a question: Cary, North Carolina. Gimme the lowdown, upside, downside and everything in between.
Gary,
I have some family out there. Cary and Apex. I went down there last year to check out some of the new construction. It’s a nice area, very very new. You can tell that it’s new by how clean it all is. That won’t last long, obviously. I also thought people were friendlier than they are here. I’ve heard mixed things about the job market. Lots of IT positions but nowhere near the turnover you have here in the tri-state. That makes it more difficult to find a job. And the employer base is much narrower, not broad like in this area.
I have considered moving out there but am torn on the matter. If I lose a job I know NJ is a good place to get on my feet quickly. Lots of opportunity here. NC, not so much.
I don’t know if this has been posted already or not…. it’s a few days old.
Proposed school alliance could cut costs, taxes
Home News Tribune Online 04/12/07
By ERICA HARBATKIN
MIDDLESEX COUNTY — Five Middlesex County school districts plan to pool their resources in an effort to cut costs — and ultimately reduce school taxes — as early as the 2007-08 school year.
Dunellen, Highland Park, Middlesex Borough, P i s c a t a w a y and South Plainfield on Wednesday announced the formation of the Northern Middlesex Alliance, which is contracting with Rutgers Business School’s MBA Team Consulting Program to create a shared services report. The report, which costs the districts a total of $7,500, will provide detailed suggestions for shared services within the five school districts.
“The five superintendents at the table today have been looking for a number of years for ways to share services and make our tax dollars go a little further,” South Plainfield Superintendent Robert Rosado said at a press conference Wednesday. “We’re looking beyond the typical (shared services) in the state right now.”
[…]
The five districts have also applied for a half-million dollar special education grant to help keep more autism spectrum pupils in district.
[…]
A team of eight or nine MBA students will convene with school officials to discuss expectations for the project, probably in late May, said Paul Belliveau, the director of the Rutgers program.
Also remeber that alot of things in Fort Lee/Teaneck/Pal Park get sold in community.
Church ect bullietin boards or foreign language
posts.
Seneca (318)-
Don’t worry; there’s plenty for a good agent to do in this environment. Experienced practitioners generally gain market share in down markets, and that’s certainly been the case with me & my gang. We’ve seen a marked increase in volume since the end of October ’06. When a seller can’t just plant a sign in the ground and wait for his agent to field the offers, those sellers become very interested in hiring someone with credentials and a good track record; calling your retard Cousin Fred at Clodputz Banker doesn’t hack it. You don’t get “do-overs” when you sell in this environment.
We’ve also been spending a good deal of time setting up a REO/foreclosure operation. There are enough homes caught up in this web to now warrant a full-time effort. We’ve set up relationships with several out-of-area lenders who need help liquidating REO. To not be in this game is to not have a hand on a growing chunk of inventory that is becoming an influencer on overall prices. In my game, he who controls inventory wins.
The biggest challenge during this time remains- as I’ve mentioned before- the volume of available transactions. As long as deal flow remains adequate, it really makes no difference whether the seller or buyer side is under market pressure. Water finds its own level, and deals get done.
Thanks all for the scoop on NC.
I wonder what state the new Matzel & Mumford townhomes right on the canal (in South Bound Brook) will be in, after this is all over.
-sync
…FLOOD WARNING NOW EXPECTED TO END TUESDAY AFTERNOON…THE FLOOD WARNING CONTINUES FOR THE RARITAN RIVER AT BOUND BROOK * FROM THIS EVENING TO TUESDAY AFTERNOON …OR UNTIL THE WARNING IS CANCELLED. * AT 1:45 PM SUNDAY THE STAGE WAS 25.3 FEET * MAJOR FLOODING IS FORECAST. * FLOOD STAGE IS 28.0 FEET * AT 33.0 FEET… MAJOR FLOODING THROUGHOUT THE AREA
Clotpoll,
Could you please provide some insight into the Branchburg housing market in the 600-700k range. How is the buyer activity? It looks like there are a good number of homes on the market, but very few sales. Would an initial offer for a home at 15% off original listing (original listing price is approximately the same price as the 2005 sale price in the same neighborhood) be reasonable? The house was built in the 80s and the owners are the original owners.
Thanks!
This market is a snoozefest, how do Realtors keep themselves entertained?
Yes! How do I keep my self entertained
Especally now that my business is drained
Well for one thing I spend a lot of my time
Trying to make you folks laugh with a rhyme
Maybe somehow I can make rhyming pay
Cause this certainly was’nt a very good day
I cancelled an open house, rather that sit there alone
The good times are over, I should have known
My career in real estate is in shards
I think I ‘ll start selling, greeting Cards!
KL
The one open house I was interested in seeing was cancelled, oh well.
jb
cjaz (331)-
I’ll shamelessly plug my own blog, http://www.branchblog.com , where you can check Branchburg sold stats over the past few months.
Overall, we’ve been remarkably consistent in seeing homes- across all price ranges- sell right at about 90% of original asking price, with average days-on-market well into the 100’s.
The 600K-700K range is one of tremendous weakness, and there is ample selection available. If the sellers are asking ’05 prices and days-on-market have accumulated, 15% off original listing is an appropriate start.
My #334 to cjaz is moderated.
#334,
Are you sure those prices are correct? You’re taking some serious price drops from OLP.
Frank (336)-
Yep. I check every sold listing all the way back through the “chain” of listings to track true days-on-market and verify original list price. Many agents here are now listing and re-listing homes 4-5 times before they sell.
20%-30% drops could mean 2 things, the agents are delusional or the market really sucks.
Can anyone tell me what happened with GSMLS # 2377477?
Clotpoll,
Thanks for your insight! From the sale stats, it looks like the sale prices on the busier roads got hit really hard, or they were just asking way too much.
sync,
Still UC.
jb
Today was a nice day to drive around areas prone to flooding, and get a feel for areas you’d want to avoid.
JB, Thanks. That listing has been UC for over a month now…
cjaz (340)-
A busy road location is the equivalent of having a gas line or power lines crossing your property. It is, frankly, a “defect” (in the academic sense).
One thing that happens as markets decline is that properties that have this “defect” see their inherent discount to market increase. When the market ran hot, these homes sold for maybe 5-7% less than comparable homes on less-busy streets. Now that the market is in decline, that discount is running 10-12%. Of course, as with many other sellers, denial runs rampant among these homeowners. Some of the ways they attempt to minimalize or explain away serious defects in location border on the comic.
I once had a homeowner on a busy highway tell me I should be advertising in publications that cater to the deaf.
That was actually a pretty good idea…one of the better ones I’ve heard from people in this situation.
Saw this on digg.com
Kind of interesting.
“BoKlok: IKEA’s ingenious affordable housing system about to take root in the UK”
http://www.gizmag.com/go/7108/
SAS
SAS, luckily there’s not much land left in Jersey for too much of that to happen.
Zac,
Sure there is. Plenty in south Jersey.
And then there’s always the Lehigh Valley, which while not technically New Jersey, might as well be :)
Of course, mass transit options will have to improve significantly both in speed and range if this region is to continue growth beyond its saturated ‘core’.
JB just got another HTTP 500.
I truly hope the construction is better quality then Ikea’s furniture.
RE:
—- helen holmes Says:
April 15th, 2007 at 7:32 pm:::::”…….we seem to get very little in return for all the money we send to various government institutions and they just as a whole refuse to consider the fact that some of their many “services” can no longer be afforded. At the rate we are going this will be a state for a handful of the wealthy and masses of government employees and illegal aliens and receipients of government largesse. There simply is no way that middle class people can survive in this state much longer…….”
COMMANDERBOBNJ Sez:— Very well ‘put’ Helen. “…MANY SERVICES CAN NO LONGER BE AFFORDED..”
..A good example is the ‘education industry’ TRYING to make the public school system into a private school “atmosphere”.:..Small classrooms like 12 to 15 students, A teacher AND an AIDE in most classrooms, specialized subject classrooms with as little as 5 kids, glitzie and spacious buildings etc….ALL UNAFFORDABLE especially within a rapidly declining (formally) wealthy state….The above is the GOAL of the teacher’s union and THE PUBLIC BE DAMMED !…..Has everyone noticed the constant ADVERTISEMENTS on TV lately (the past Month !) about how ‘GREAT’ our New Jersey Public Schools are—-ADS (PROPAGANDA) all put out by the new jersey educational association (Union)…”They” must be ‘gearing-up’ for some sizable increases in their DEMANDS for their upcoming contracts !!!—This is something anybody here should keep in mind if they are considering buying into a New Jersey HOME QUAGMIRE——Can you say: “BIG PROPERTY TAX INCREASES !!!!(To pay for this ‘FOLLY”…”) — ———–HAH ?!———————- I Bet you can..!
Hearsay: Evacuations in Middlesex Borough, apparently the floodwaters will be a few feet higher than Hurricane Floyd…
Corzines new tax plan that was passed is supposed to limit property tax increases to 4% per year, but allows waivers.
The Star Ledger surveyed 193 North and Central Jersey towns:
– 70 Came in under 4% (36%)
– 14 Came in at 4% (7%)
-109, the majority, Elected to use waivers and came in above 4% (56%)
P i s c a t a w a y public access channel is running a list of roads that are closed due to flooding. It’s a long list.
What’s funny is the theme song they’re playing in the background is “I miss you like the desert misses the rain”
Re: 354
Now they’re playing, Everybody Hurts.
ithink_ithink,
ROFLMAO!!!