From the Press of Atlantic City:
Region’s jobless rates still worst in state for month of December
Jobless rates in southern New Jersey counties – already the highest in the state – jumped by a fifth in December to double-digit or near double-digit levels.
Atlantic County lost 2,600 jobs in December, more than it lost in the previous 11 months combined, according to state data released Monday.
“We used to think that the casinos were recession-proof and they’d help us through. That’s obviously not true anymore,” said Richard Perniciaro, director of business research at Atlantic Cape Community College. “What really hurts is that most of what people do down here is discretionary spending, and many aren’t spending if they have the choice.”
Cape May County’s unemployment rate rose to 12.4 percent in December, up from 10.2 percent the month before, and remains the highest in New Jersey. A year ago, it was just 8.5 percent.
With 10.4 percent jobless, Cumberland County had the state’s second worst picture of unemployment in December.
And Atlantic County, with 9.6 percent out of work, rounded out the three-worst counties for employment in the state. The next highest jobless rate in December was in Passaic County, with 8.4 percent.
Ocean County continued to trend with the northern half of the state, its rate rising 1.3 percentage points to 7.9 percent.
S&P Case Shiller Home Price index out at 9am this morning.
From Crains:
Credit storms lash Hamptons real estate
The Hamptons’ residential market took another beating from a floundering economy in the final quarter of 2008, with prices and sales volumes both dropping significantly from levels in the fourth quarter of 2007, according to a report released Tuesday.
The number of sales in the posh far end of Long Island plummeted 41.3% to 257 in the fourth quarter. Meanwhile, the median sale price for the market slipped by 7.9% to $830,000, according to a report by brokerage firm Prudential Douglas Elliman and real estate appraiser Miller Samuel Inc.
“What you are seeing here is similar to parts of the city,” said Jonathan Miller, president of Miller Samuel, adding that for the last four years, with the exception of one quarter, there has been a decline in transactions. “The drop is attributable to the credit contraction and uncertainty with Wall Street in terms of unemployment and compensation.”
From the Star Ledger:
Asbury Park still a shell of its former self
For decades, the massive steel structure dominated the shorefront skyline of Asbury Park.
“It seemed like it would be there forever,” an old friend of mine from Asbury Park told me. “In a thousand years they’d be looking at it like Stonehenge: ‘It points to the east. It must be a symbol of some strange religion.'”
In the spring of 2006, about 80 pounds of plastic explosives finally leveled the 12-story skeleton of a redevelopment scheme that had begun 20 years earlier. The town fathers gathered for the demolition and everyone was optimistic about a new era for Asbury.
But guess what now occupies the spot where that skeleton stood? You got it: The superstructure of another massive condo project that was halted as soon as the I-beams went up.
Timing is everything, they say. In Asbury Park, it’s bad timing. The town has a habit of planning its redevelopment projects so that they get underway just as a housing bubble is about to burst.
“We thought we were right on target with it, but we missed it by about two years,” says Deputy Mayor Jimmy Bruno. “We came such a long way in the last seven years.”
T-4 days until the self-imposed foreclosure moratorium put in place by Freddie and Fannie ends. The date has already been extended once, will it be extended again?
The Pfizer/Wyeth job cut estimate is now up to 26,000.
From CNN/Money:
Pfizer to buy Wyeth for $68 billion
Pfizer spokesman Ray Kerins said that two waves of job cuts would occur in 2009. In the first, Pfizer said it would cut 10% of its 81,900 staff – about 8,000 jobs.
Kerins said that Pfizer will launch the second round of job cuts once its merger with Wyeth and its 50,000 workers is completed in the third or fourth quarter. At that time, Kerins said Pfizer will cut 15% of the combined company’s 120,000 or so workers – about 18,000 more job cuts.
In all, Pfizer is planning about 26,000 new job cuts and will close five manufacturing plants.
Memories of the looting? Oops; this was yesterday:
ESPN, January 27, 2009
The headquarters of Argentine first division club Newell’s Old Boys was attacked by an armed gang who vandalised property and intimidated staff, police and club officials told local media on Monday.
The gang, numbering around 30 and armed with guns and baseball bats, were believed to belong to a faction of the Rosario-based club’s own supporters, officials added. Twenty-one people were arrested.
Newell’s treasurer Jorge Ricobelli told local media that the gang burst into administrative officers at the club’s Parque Independencia stadium where new members were enrolling.
They then moved on to the barbecue area and a covered gymnasium, forcing members to leave, vandalising property and firing shots at a tree and a water tank, reports said.
Rosario police official Miguel Angel Rodriguez told reporters that the gang was linked to the club’s own fans.
Newell’s, one of the country’s most popular provincial clubs, have recently undergone a tumultuous leadership change, with the controversial, long-serving president Eduardo Lopez defeated in last month’s elections by a new group led by Guillermo Llorente.
Argentine soccer suffers from chronic soccer hooliganism blamed largely on groups of hardcore fans known as barras bravas.
Many groups are split into factions who sometimes fight among themselves and often take sides in internal political disputes between directors.
Look at this house on a golf course in Galloway Township (Atlantic County)
http://www.realtor.com/realestateandhomes-detail/Galloway-Township_NJ_08205_1102769489
You can buy it for 309k (down fro 349k) or rent it for $1,800 a month.
It looks pretty nice, too bad its in Atlantic County.
#5
I wonder how many vendors will go out of business because of this merger and add thousands more in our area to the unemployment lines.
http://www.economics.harvard.edu/faculty/rogoff/files/Aftermath.pdf
Grim – Has this working paper from Carmen Reinhart and Kenneth Rogoff been posted before?
They work from historical numbers and provide charts for comparisons.
Interestingly, they say – The main cause of debt explosions during a banking crisis is not the widely cited costs of bailing out and recapitalizing the banking system.
“The upper-bound estimates pale next to actual measured rises in public debt. In fact the big drivers of debt increases are the inevitable collaspe in tax revenues that governments suffer in the wake of the deep and prolonged output contraction, as well as often ambitious countercyclical fiscal policies aimed at mitigating the downturn.”
They say (historical averages mind you)… “Asset market collapses are deep and prolonged. Real housing price declines average 35 percent stretched out over six years, while equity price collapses average 55% over a downturn of about three and a half years.”
Their second point relates to unemployment and thirdly – they address historical data related to government debt.
I’m thinking they must have updates to the working paper I have posted here because it is dated 12/08.
WEST DEPTFORD — Budget issues that would cost the average resident here $538 more in local property taxes this year are a “story unfolding,” said township administrator Eric Campo. Municipal layoffs, a hiring freeze, attrition, regionalized or shared services within Gloucester County and salary and program cuts are possibilities being discussed to slash a projected 46-cent per $100 local tax hike.
http://www.courierpostonline.com/article/20090127/NEWS01/901270342/-1/newsfront2
Was surprised to see so many S.Jersey counties in the top 25 category. Who knew the water bill for the Pine Lands was so high?
Our tax dollars hard at work-
US bets on bank execs to fix this mess
“WASHINGTON (AP) — They’ve been bailed out, but not kicked out. At banks that are receiving federal bailout money nearly nine out of every 10 of the most senior executives from 2006 are still on the job, according to an Associated Press analysis of regulatory and company documents.”
http://finance.yahoo.com/news/AP-IMPACT-US-bets-on-bank-apf-14162223.html
lisoosh,
Re “carry trade”
I found this: it’s sort of understandable…
http://ksghome.harvard.edu/~jfrankel/CarryTradeNov19-2007.pdf
sl
http://www.forexfactory.com/news_archive.php?id=122048
Lisoosh and Still – from yesterday…I’m with you on a poor understanding of the carry trade.
I found this article that echos BC’s comments that the unwinding is an unprecedented event.
From the best I can tell, as everyone looked for trading profits, they borrowed at the very low rates in Japan for use elsewhere. But the cessation of credit caused liqidations and the speculation came to a halt.
Something like that?
Still -Isn’t that FUNNY – We are still trying to understand Yesterday!
Cindy 14
WOW….telepathy… through 3 time zones, yet!!
sl
When you understand yesterday, it makes today and tomorrow that much more frightening.
WHOA! just caught a sec of thain saying he’ll reimburse for his excess spending! I know it was yesterday but I’ve been MIA for a few days…
LMAO
SL [12],
Simply borrowing one currency, selling and buying another. Look at it as a spread trade, for example long A and short B. Back in 2003 you could borrow yen below 1%. The world markets dove in head first. They borrowed yen and invested elsewhwere; stocks, commodities, re, mbs, etc.. Why not? It was free money. The boat was loaded one way. It works fine as long as asset prices continue to move higher. Once they fall, the unwinding/deleveraging takes place.
As mentioned in the above article, once these cycles turn, they tend to go much longer and deeper than most can imagine. Today the yen is the world’s best performing currency. Not a result of their economy/current account balance, simply the unwinding of this massive spread.
Firestormik says:
January 26, 2009 at 11:14 pm
Re:yikes says:
$440.
this damn
————————
Shitty built end unit townhouse here. After sealing it as much as I could, insulating ducts in the basement, cleaning the furnance, my electric+gas bills are below 400(even with 18% hike this year).
Your 100+ bill for 6 days is about right, if your monthly ~440.
If I did nothing, the bills would be 600+
yup, end unit townhouse. in the summer you get some bugs because of the slab – in the winter you get insanely high bills.
guess the trade off is that you’re on an end unit.
John Thain and Barack Obama
http://www.lewrockwell.com/blog/lewrw/archives/024993.html
And here I am thinking the $178 PSEG bill from last month seemed kind of high.
Welcome to the Depression
http://www.minyanville.com/articles/MSFT-UAUA-PFE-CAT-SLB-tm/index/a/20799
From Bloomberg:
U.S. Retail Sales May Post First Drop in 14 Years, Group Says
Sales at U.S. retailers may decline in 2009, the first annual drop in at least 14 years, as consumers continue to spend less and only purchase items that are discounted.
Sales may fall 0.5 percent compared with a year earlier, the National Retail Federation said today in an e-mailed statement. This is the first time the trade group has forecast an annual decline since it started making sales predictions in 1995, according to spokeswoman Kathy Grannis.
Sales will slow until a strengthening economy gives them a boost in the fourth quarter, the Washington-based NRF said.
Declining home values, the worst unemployment in almost 16 years and tightening credit are causing consumers to alter their spending habits and look for deals on everything from essential items such as food to discretionary things like clothing and televisions. Consumers’ spending patterns will be much like they were in 2008, the NRF said.
“Shoppers will be seeking value and trading down to discount and off-price retailers in order to stretch their purchasing power,” NRF Chief Economist Rosalind Wells said in the statement.
From the Record:
NJ Transit to bring back the Northern Branch
NJ Transit plans to spend up to $800 million to bring rail service — along with 10 train stations and hundreds of parking spaces — to North Jersey towns historically underserved by commuter trains.
Whether it’s diesel trains that rumble or electric trolley-like cars that whistle through communities from North Bergen to Tenafly will determine the cost, as well as how many commuters can get onboard.
The goal is to reopen the Northern Branch line, which now handles freight, to pull at least 8,100 commuters off the state’s congested roadways each day.
The 11-mile rail line will have as many as 10 stations — three in Englewood alone — as well as parking spaces for commuters.
…
Transportation advocates say communities along the line also will benefit by allowing residents to take quick local trips to go shopping.
“There are tons of downtowns there,” said Zoe Baldwin, spokeswoman for the Tri-State Transportation Campaign. “You’re going to see development go up in value.”
…
Others say the large number of stations and parking lots serving fast-moving trains will destroy the region’s last bastion of peace and solitude — and bring down local property values.
Under the plan, parking lots with as many as 550 spaces could be located in communities such as Leonia and Tenafly, whose old-fashioned, well-preserved downtowns can’t support the additional parking and traffic, officials say.
“Atlantic County lost 2,600 jobs in December…”
Good luck getting a place on a $10 table down there. Do you think they are all playing craps to supplement unemployment?
Another sign that the economy is tanking – ‘Snuggies’ and ‘Ped Eggs’ hit Prime Time.
http://www.msnbc.msn.com/id/28869549/
Some more info on the Northern Branch project:
http://www.northernbranchcorridor.com/
“Corning cuts 3,500 jobs as 4Q profit slumps”
http://tinyurl.com/bs2kxr
Some upcoming mass layoffs in NJ:
CLARA MAAS CONTINUING CARE AT BELLEVILLE
1/26/2009
208
JOHNS MANVILLE
BERLIN
1/31/09
170
GROCERY HAULERS
S. KEARNY
1/31/09
138
PIKE MACHINE PRODUCTS
ELIZABETH
1/31/09
71
ABBOTT LABORATORIES
EDISON
2/4/09
143
whats next euthanasia will stimulate the economy? you better hope you never get sick.
“Nancy Pelosi This Week “Contraception Will Reduce Costs” Help Economy”
http://tinyurl.com/clarhy
ohh, thats over there. that doesn’t effect me in NJ. we are different here.
yeah, I’d like 2 chocolate glazed donuts, & large coffee. thanks….
“Iceland’s government topples amid financial mess”
http://tinyurl.com/cdl3w7
http://www.google.com/hostednews/ap/article/ALeqM5gZ06csb9RnjucPmt_-8yrjMOOPQgD95V12701
So the latest talk here is about a 1.5 percentage point increase in sales tax. Local taxes range from 7.5 to 9.25 percent, varying from county to county and even city to city. So that would boost the rate to nearly 10% in many parts of the state.
The governor would also like to begin taxing auto repairs, massages, pet grooming, amusement park and sporting event admissions, vet services, pool cleaning services, etc.
And then there’s golf….
“You don’t see a tax on movies,” said Bob Boucher, executive director of the Calif. Alliance for Golf. “You don’t see a tax on bowling. You don’t see a tax on skiing. You don’t see a tax on any other sport.”
Of course we also need to raise vehicle registration fees..Let’s not pass up that opportunity…
Calif. is losing residents in droves already…oh dear.
i wonder if Johnny Corzine & Arnold Goobernager swap ideas over the phone?
“Calif. governor wants to tax golf, auto repairs”
http://tinyurl.com/co3n2o
Houses in Galloway are so cheap it amazes me how does the Seaview Marriot there sell those timeshares. Is it just a lot of pushy timeshare salesmen finding suckers and the re-sale value on those things are nothing? If I got one of those timeshare units for 20 cents on the dollar second hand I might go to Galloway one week a year but I certainly would not want a house in a place with at best a few days worth of things to do in an entire year.
bairen says:
January 27, 2009 at 6:37 am
Look at this house on a golf course in Galloway Township (Atlantic County)
http://www.realtor.com/realestateandhomes-detail/Galloway-Township_NJ_08205_1102769489
You can buy it for 309k (down fro 349k) or rent it for $1,800 a month.
It looks pretty nice, too bad its in Atlantic County.
SAS,
while the UK may not be an exact copy of Iceland, It is very close to following in its foot steps…..
Notice a few headlines this past 2 weeks out of the UK saying “We are not Iceland”
sounds very similar “our bank is well capitalized”
If the UK government really nationalizes the level of private debt that is being proposed then its foreign liabilities will be much larger then GDP…… oh wait, that’s what took Iceland down
Is it just a lot of pushy timeshare salesmen finding suckers and the re-sale value on those things are nothing?
Timeshare resale is an oxymoron.
Grim, actually timeshares only have resale value. If a timeshare is sold by the sponsor for 20K and on the same day on the internet in the resale market it is selling for 5K the actual value of timeshare is 5K even on the day you paid 20K.
Funny, I heard some guy in florida bought 52 timeshares for a buck each in a resport in florida and just plans on living there year round, now that is funny.
I’ve been told that the only timeshares that have any real value are Disney timeshares in Orlando area. It’s for the kids I suppose!
And thanks again for the insurance attempt Kettle1. I suppose I’m on my own in this own ;)
“timeshare”
you have to make this decision right now, today. only time we will offer this deal.
SAS
I love timeshares. I went to one of the $99 weekend specials at the Seagrit Marriott. At the start of the “presentation” I handed the sales guy a spreadsheet of current eBay prices. After a 5min discussion on why the bonus points were not worth it, he called it quits. After I got my golf passes, we had a great chat about the area and things to do. We got some great recommendations for restaurants in the area.
I’m scoping out eBay for a week in Florida. Although I might upgrade to Hawaii if the cost of flights come down.
some good news:
“Verizon 4Q earnings rise 15 percent on continued strength in wireless and Internet service”
http://tinyurl.com/czu4f9
sorry stu :(
http://www.americanprogress.org/issues/2009/01/house_stimulus_overview.html
Got this site from Market Ticker Forums…
You click on your state and see the proposed bailout funds…
I have no idea about accuracy or how the percentages were figured…
But it is fun to just click on the states…voila – money!
SAS,
That is good news. VZ is one of my two remaining long-term positions. With dividends, I’m still in the plus column with them. The other long-term holding is JNJ which never does anything exciting.
34: But you’re so close to exciting Atlantic City and the all you can eat buffets.
The year round idea is fair enough. The timeshare itself is ok, it is the maintainence fees that are the real pain.
That said, if the guy is paying $700 a year for each week, that works out at $3k per month. That is better than a rental or mortgage for some people considering the service level.
http://www.nj.com/news/index.ssf/2009/01/little_house_in_montclair_is_a.html
“A Tiny Abode Competes with Montclair’s mansions”
from Star Ledger
From Marketwatch:
U.S. Nov. Case-Shiller home prices down 18.2% in past year
The news on the intertubes is that David Rosenberg called for Depression in a note out yesterday. Anybody with a Merrill account over here? If so, could you post a synopsis of what he said?
Cindy,
Let’s not forget that the chosen one was not endorsed by our brilliant pussy of a governor until Billary was clearly out of the race. He then wisely changed his endorsement (another example of his jellyfish like backbone). This might not factor in favorably when NJ goes for its piece of the bailout pie.
Got as quote from USAA for car insurance in NJ. More than what I pay in Germany. Insane.
From MarketWatch:
Home prices in all 20 cities fall at least 1% in November
Cindy,
Let’s not forget that the chosen one was not endorsed by our brilliant whimp of a governor until Billary was clearly out of the race. He then wisely changed his endorsement (another example of his jellyfish like backbone). This might not factor in favorably when NJ goes for its piece of the bailout pie.
Center for American Progress? Another lobby? Why did I bother looking.
(52) Stu – Center for American Progress –
Wiki – “Liberal political policy research and advocacy group..” Thanks for the heads up, Stu.
93-year-old froze to death, owed big utility bill
BAY CITY, Mich. – A 93-year-old man froze to death inside his home just days after the municipal power company restricted his use of electricity because of unpaid bills, officials said.
Marvin E. Schur died “a slow, painful death,” said Kanu Virani, Oakland County’s deputy chief medical examiner, who performed the autopsy.
Neighbors discovered Schur’s body on Jan. 17. They said the indoor temperature was below 32 degrees at the time, The Bay City Times reported Monday.
“Hypothermia shuts the whole system down, slowly,” Virani said. “It’s not easy to die from hypothermia without first realizing your fingers and toes feel like they’re burning.”
Schur owed Bay City Electric Light & Power more than $1,000 in unpaid electric bills, Bay City Manager Robert Belleman told The Associated Press on Monday.
A city utility worker had installed a “limiter” device to restrict the use of electricity at Schur’s home on Jan. 13, Belleman said. The device limits power reaching a home and blows out like a fuse if consumption rises past a set level. Power is not restored until the device is reset.
The limiter was tripped sometime between the time of installation and the discovery of Schur’s body, Belleman said. He didn’t know if anyone had made personal contact with Schur to explain how the device works.
Schur’s body was discovered by neighbor George Pauwels Jr.
“His furnace was not running, the insides of his windows were full of ice the morning we found him,” Pauwels told the newspaper.
Belleman said city workers keep the limiter on houses for 10 days, then shut off power entirely if the homeowner hasn’t paid utility bills or arranged to do so.
[snip]
…..well, hey, not our fault…you know, he didn’t pay his bill after all….
nevermind…. I’m going back to bed.
sl
Stu [44],
Hard to believe, I own it also.
Renter 47 – Baristanet had a write up on this place not too long ago –
http://www.baristanet.com/realestate/2009/01/a_onebedroom_house_in_montclai.php
Re house in 56 – Taxes on this tiny “chalet” are still over $4k.
Montclair comp killer from today’s listing:
This one is updated, with granite!
92 High Street (GSMLS 2526097)
OLP: $725,000
LP: $569,000
DOM: 236
Tax Assessment: $790,200
Ouch!
I’d like to get your thoughts on this career move I’m thinking of making.
I’m currently employed in the financial services sector (one of the bigger players who is HURTING). I’m 37, been with this company 10 years, have an MBA, focused on marketing/sales/account development roles, survived all layoffs so far.
I’m forecasting that the financial services sector and corporate America in general will never look the same after this mess (if we even get out of this mess). I don’t think having an MBA makes a difference anymore in regard to job security or job prospects.
So, I’ve decided to return to school to work on a career that is more focused on an actual “skill” vs. just BS (which is basically what I feel like I’m doing now).
While I’m concerned about doing something that will take me to retirement, I’m also wanting to do something that I am interested in. So, I’ve decided to get a Master Degree for Elementary Education.
Wanted to get a sense from the folks on this board if they feel the same way on the future employment prospects in corporate America, and if they feel like going down the road in education (while hard, I know…and a major salary reduction) is a “safer” and more needed skill.
Thoughts?
some quick stats-
NJMLS for Mahwah NJ
-89 currently active listings*
-11 under-contract(awaiting close)
-2 sold (going back 1 month)
*8 in attorney review
CNN Money article,
Home prices fall at record pace
Index of 20 U.S. cities shows 18.2% annual drop, to the lowest levels since 2004.
New York and Cleveland prices fell by only 1% for the month, the smallest November drops. The best 12-month performer was Dallas, where prices slipped by 3.3%. Other 12-month, single-digit percentage drops were recorded by Denver, at 4.3%, Cleveland, at 5.2%, and Charlotte N.C., at 5.3%.
“We’re clearly seeing some of the impact of falling prices,” said Larson. “But the problem is that many of those sales are made at the cheapest prices [often of bank repossessed properties], making it hard for normal homeowners to sell.”
He does not foresee any swift improvement in housing markets – not as long as industries of all kinds keep announcing new layoffs, as several companies did Monday when more than 70,000 Americans learned they would lose their jobs.
“Home prices will likely decline, albeit at a slower pace, for the rest of 2009,” said Larson
I don’t think having an MBA makes a difference anymore in regard to job security or job prospects.
Well, Have u not read BusinessWeek lately? Did u do MBA from top 10? Some would say when u come out of those creamy universities, u are larger than life and can never be unemployed.
SG –
No, not a top 10 US school. Studied in Canada, and got it from a top 3 school there (which, according to most Americans, doesn’t even count, as they have no concept of international).
I’m assuming your comment is sarcastic…… I’ve worked with more top 10 MBA’s who are by far the most unintelligent people I’ve encountered in my life. Harvard takes the lead.
NJMLS for Franklin Lakes-
residential stats
-108 active
*5 in attorney review
-8 under-contract
3 sold(1 month back)
I have nine credits left to go for my part time MBA at Rutgers-Newark. If my company had decided to stop reibursing this year, I told my friends I would say “Well, I was nine credits short and it wasn’t worth paying for out of my pocket……”
Go to Math or Science in education and check out http://www.nyctf.org. They may have a lot of applicants though these days for the NYC teaching fellowhsip.
NYTimes,
Making Foreclosures More Orderly
Today, estimates suggest that foreclosures cost $50,000 per home or more.
A smart foreclosure policy would replace delay with speed and uncertainty with clear rules.
If a defaulting homeowner could afford the mortgage if the principal were reduced to the home’s current market value and the rate were revised to the current fixed rate, then the mortgage should be quickly renegotiated. If not, then the authority should sanction a speedy eviction. No good is done by duplicating the subprime trick of keeping homeowners who can’t afford their homes in place by giving them short-term teaser rates.
34. John Says “Houses in Galloway are so cheap it amazes me how does the Seaview Marriot there sell those timeshares”
I bought a Seaview Marriott vacation club package while i was down there this summer for a wedding, they called me two weeks ago and canceled it because of the economy and will be sending my money back.
here’s an interesting turn of event to follow up from yesterday’s post. the lot directly behind the “rabbi and contractor” is now up for sale. tax records show it’s not the same owner but the listing says “bring all offers”. do i throw a real low ball before the new comps are set with the rabbi’s offer for the nearby lots? this lot is net 4 feet smaller. hmm, decisions, decisions….
Agreed. The MBA is not worth it at all anymore. It used to be an elite degree, but now with all schools offering abbreviated programs, and everyone and their mother with some sort of MBA degree, it’s a total joke.
I looked into that NYC fellowship – I can’t handle that. I don’t want to be tied to having to teach for a number of years in a high-needs inner city school.
I’ve decided to go with a 1.5-2 year traditional Masters program at one of the SUNY schools.
Inman News,
Obstacles delay REO sales
“Banks are not in the property ownership business, and I don’t think philosophically they’re going to change that position,” Jennings said. “They will continue to dispose of them as quickly as they can.”
But Jennings said that in California, the typical turnaround time for a bank to put a foreclosed property on the market has lengthened from 60 days to six months or more.
“I have some properties I’ve been managing for six or seven months that are not on the market because of tenant-related issues,” Jennings said. Problems clearing title because notes have been sold and resold on Wall Street are also common, Jennings said.
==
By disposing of some properties through auctions, asset managers can keep them out of the MLS, Thompson said. That way, agents running comps on their other properties don’t have to factor in those discounted sales. This could be one partial explanation for RealtyTrac’s discovery that as many as three out of four REO properties are not listed in the MLS (see part one), he said.
#59 lena-
I’ll leave the financial issues to the more qualified on the board… knowledge is always a positive, learning and growing should be constant, so I applaud your return to school. You mentioned being interested in what you do, IMO it’s paramount to a life/career choice. Actually I’d want to be quite a bit more than “interested” in something if I were to go back to school for it(not that your old but your not a kid). That said if you can deal with the decrease in salary the hours seem great, summers off out at 3-4pm. If you have a family the quality of life factor jumps up(or not) depending… generally speaking it appears to be a definite 180 from where you were,best of luck.
this is just one opinion from a man with a little bit of a history, to be taken “with a grain of salt”
“I don’t think having an MBA makes a difference anymore in regard to job security or job prospects”
yes, i believe this is true as well. The buisness & corporate models that worked that required the MBAs are drying up and will no longer come back. There will always opportunitys, but will be very limited & competitive. MBAs were handed out like candy when there was the demand.
but, there are opportunities to take what you have learned and “create” your own buisness model. for example, i have been an advocate of decentralization.
MBAs have come from the old school model of centralization.
in any case, thats a different story…
There is a popular belief (or misbelief), that if you went to a top 10 or Ivy league school, you will always be in demand. I don’t think this is true (only ones who usually think this is true are the top 10/Ivy leaguers themselves, they don’t want their “bubble” to be broken).
I think coming from top 10/Ivy league does help right out of the gate. i.e getting your first job. no doubt it helps then, and only then. but, put a few years under everyones belt,and it all comes out in the wash, and you realize there is nothing special about Tuck or Columibia and NYU.
and at age 37, and with real world working experience, where you went to school means nothing.
“I’ve decided to return to school to work on a career that is more focused on an actual “skill””
I think that is a great idea.
and i do think this will be the trend of the future.
“I’ve decided to get a Master Degree for Elementary Education”
now, i can’t sound off on this cause i don’t know much about the elementray education arena. i do know it can be challenging & buracratic. more so than you may think.
I do know, take your time, make your own decision for yourself.
and don’t fear change.
(unless its omama’s change)
:P
SAS
“Tuck”
lol
I left my mark in more ways than one at that place.
thats a good GTG story to tell.
he he
SAS
BC 18
Thanks! I think I am kinda starting to understand it. I guess my difficulty is in the visualizing it part.
I understand how to buy stocks, bonds etc but how does one “borrow” a currency.
Do these folks go to a bank and say “give me a loan?”
It’s the nebulous-ness (if that’s a word) of it.
sl
lena (59)-
I wouldn’t throw away another penny on hyper-inflated educational costs. You think homeowners who bought at the top feel like bagholders? Wait ’til you see what higher education costs in about 2-3 years. Just another bubble about to burst.
If that’s not enough, think about this: if you start school now, at just about the time you’re getting the degree, the gravy train of bennies for teachers will be whittled down to something more resembling the “good old days”. And, your pension will be replaced by some crummy 401k. You’ll be paying for your hyper-inflated educational bill with your new, deflated income.
Sounds great, huh?
what buisness models i was referring to in my above post would be way & means to keep the flow of money, within your community or state, and not have that cash flow intermediated by Wall St & minimize the Govt mitts.
SAS
Clotpoll,
So what do you suggest people who want to get out of the corporate world and do something that has a higher degree of stability do? Become a truck driver? At some point, I think you can’t look at everything as a “bubble” about to burst. If you are in it for the long term (a house, an education, etc), then you have to take the plunge.
Plus, reduced bennied for teachers is better than total unemployment for a former financial services MBA. Don’tcha think?
From another blog I read a guy made a great point about the new business world we already live in.
By way of example, I was at a major conference in 2006 when the head of one large firm stood up and said that he had been shocked by the acquisition of YouTube by Google for $1.65 billion in October 2006.
Not because of the deal, but because there was a firm out there worth $1.65 billion that he had never heard of.
So he called his executive team in, and asked who had heard of YouTube.
None of them had.
So he put “YouTube” into his PC and the message came back “access to this website is not allowed through the corporate firewall, please contact your systems administrator if you believe this is incorrect”.
That was the CEO of McKinsey!
….
So the issue is that most executives are firewalled out when it comes to this technology stuff.
How can you understand your future channels if you cannot see them, access them, connect with them or use them?
Hey! New thread, move it up!
SL,
(someone please correct me if i am off)
the carry trade:
i borrow 1000 yen at 1% and then use that to buy an asset in the US, as opposed to borrowing 1000 USD at 8%. Of course you run the numbers so that any currency conversion makes sense (JPYUSD).
The unwind starts to come in when interest rates fall. if the USD rate drops to 1% then my carry trade no longer makes sense with the currency conversion costs as the JPYUSD rate is going to change as well, very likely in an unfavorable manner.
Now remember that i have to fund my debt maintenance with USD that i earn on my US investment. So i have to convert USD to JPY to pay my monthly bill to the Japanese bank that loaned me yen.
When the USD rate goes to 1% i am actually losing money on the deal by the time all the currency conversions (JPYAUD) take place. So i run to sell my assets,
In order for someone to buy my asset, they need US dollars. I take the USD they give me and convert it to JPY. i then repay the japanese bank.
Now you have string demand for JPY and USD because everyone needs the currency pair to unwind carry trades that have now become unprofitable
Re: #58 Check out tinyhouseblog.com.
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