From the Star Ledger:
N.J. unemployment rate grows in June
New Jersey added 1,700 jobs in June, but the unemployment rate inched up one-tenth to 9.5 percent as more people reported looking for work.
The Labor Department reports that the state added 6,400 private-sector jobs last month but public sector jobs declined by 4,700.
The state says leisure and hospitality industries added 5,200 jobs; education and health services added 1,800 jobs; and 1,000 construction jobs were added.
The manufacturing sector was hardest hit with a loss of 1,900 jobs; financial activities lost 900 jobs; and trade transportation and utilities lost 400 jobs.
From the APP:
NJ gained 1,700 jobs in June; unemployment climbs to 9.5%
New Jersey’s economy added 1,700 jobs in June, the state said Thursday in a report that shows the labor market recovering slowly but steadily from the devastating recession.
The job growth wasn’t strong enough to keep up with the number of residents looking for work; the state’s unemployment rate rose to 9.5 percent from 9.4 percent in May.
“Right now, my daughter, son-in-law and grandson moved into my one-bedroom apartment,” said Veronica Gaddis, 50, of Lake Como, who herself has been out of work for two years. “I’m grateful for that because I know there are people who have nowhere to go. It’s a mess.”
…
New Jersey is trying to dig itself out of the hole left by a recession that caused it to lose 265,000 jobs, or 6.5 percent of its employment. And without a strong manufacturing presence, it hasn’t taken been able to take advantage of a resurgence in the nation’s manufacturing sector.The report in June, however, carried a hopeful sign. The state added 6,400 private-sector jobs last month. It added 28,100 private-sector jobs the first half of the year, preliminary estimates show. And that puts it on pace for its best performance since 2000, Rutgers economist James W. Hughes said.
“It’s destined to be the best job growth year in 11 years,” Hughes said.
Still, New Jersey at that pace wouldn’t recover its lost jobs until 2016. And there are obstacles to get there. For one, there remains a gap between the pre-recession skills that workers developed and the post-recession skills employers need, said Mark Vitner, an economist with Wells Fargo Securities.
From HousingWire:
New lows in home prices ‘almost assured’: Radar Logic (except here -grim)
Home prices in May dropped 5.9% from the year before but gained 1.2% from the previous month, according to the RPX Composite Price index from analytics firm Radar Logic.
The annual drop is the steepest since September 2009. Radar Logic said the monthly gain barely offsets the declines seen earlier in the year.
“Home prices usually increase in the spring due to seasonal factors, and the bulk of the gains typically occur by May,” Radar Logic said. “The lackluster performance of the RPX Composite Price to date means that we are almost assured to see new post-bust lows in the fall, when seasonal strength comes to an end and softening demand pulls housing prices downward.”
Because of the new lows, analysts at the firm predicted more homeowners will become underwater on their mortgage than the already 10.9 million and thus more foreclosures are bound to occur.
The largest declines in May came in cities in the West and Midwest. Prices fell 14.7% in Seattle, followed by 11.9% in Sacramento, Calif., and 11.6% in Milwaukee. The smallest dip came in New York, at 0.4%, followed by a 1.1% drop in Charlotte, N.C., and a 4.6% decline in Washington.
Good Morning New Jersey
From the WSJ:
Uncle Sam Weighs Landlord Role to Ease Housing Slump
The Obama administration is examining ways to pull foreclosed properties off the market and rent them to help stabilize the housing market, according to people familiar with the matter.
While the plans may not advance beyond the concept phase, they are under serious consideration by senior administration officials because rents are rising even as home prices in many hard-hit markets continue to fall due to high foreclosure levels.
Trimming the glut of unsold foreclosed homes on the market is “worth looking at,” said Federal Reserve Chairman Ben Bernanke in testimony to Congress last week.
Good Morning New Jersey, it is 86 degrees at 7:21 am.
Putting pressure on an already lousy job market, the mass layoff is making a comeback. In the past week, Cisco, Lockheed Martin and Borders announced a combined 23,000 in job cuts.
Those announcements follow 41,432 in planned cuts in June, up 11.6% from May and 5.3% vs. a year earlier, according to Challenger, Gray & Christmas.
Meanwhile, state and local governments have cut 142,000 jobs this year, The WSJ reports, and Wall Street is braced for another round of cutbacks. This week, Goldman Sachs announced plans to let go 1000 fixed-income traders.
The Audacity of Hope….
Caution urged as sewage leaks into Hudson River
http://news.yahoo.com/caution-urged-sewage-leaks-hudson-river-200048244.html
Just in time for the hottest weekend of the year:)
The upside is that it is the raw sewage of the best and brightest from all over the country who come to NYC to make a name for themselves and keep real estate prices high.
– Debt increased by 40% in two years
– GDP growth is on the way down
– Food Stamps are up
– Millions more are unemployed
– $4,000,000,000,000 spent to accomplish it all
Any Questions?
“$4,000,000,000,000 spent to accomplish it all”
Now, if we would just spend some more, the extra stimulus will do the trick.
This blog has been light years ahead of the curve in nailing every economic event that has occurred thus far. To think that the next leg down in housing in our area isn’t going to be quick and brutal is pure blind foolishness. Companies are entering panic mode and jobs and benefits slashing is accelerating after a pause. I spoke to another friend yesterday who works for a firm that manufactures components for the aviation and construction industries. Their biggest client said they are “entertaining” competition from China as to not drop a bomb on them unexpectedly. Do I need to interpret? They are giving them time to get their affairs in order – like a terminal illness. My friend will be unemployed in 6 months.
http://www.nytimes.com/2011/07/22/business/us-sheds-its-stake-in-chrysler.html?ref=business
Another Beauty for the American Taxpayers
Freedy,
A loss of $1.3 billion on Chrysler.
You know we’ve entered a fantasy reality when numbers like $1.3B seem small.
How we bailed out an LBO firm like Cerberus is ridiculous. Their entire M.O. is to come in and whack 20-30% headcount, sell of a few losing divisions, and declare a company profitable so how exactly did avoiding bankruptcy save anything.
[3] grim
I saw that, and depending on how the USG handles this, it could be a trip across the Rubicon for America as we know it.
My $0.02:
One thing to watch is to what extent the Feds could be seen as short-circuiting their own laws. For example, Federal bank reg. laws limit how long a bank can hold onto OREO. The limit is 5 years, which can be increased incrementally to 10 years. So one avenue for the feds to pressure banks to unload OREO is to deny them the extensions. Very tricky as they may push banks under (Winstar anyone???). I suppose the feds could come in and take the OREO off the books, dump it into an RTC-like agency, and act as a landlord.
Of course, the result will be mini-projects all over the nation, further depressed values in at-risk neighborhoods, and a total re-write of landlord-tenant law because of the unique status of the Feds or any agency the feds set up. At a minimum, you are looking at a new bureacracy that will rival anything set up under Obamacare.
At least there is some little sign that DC may finally do the right thing and cut spending. Still, one should never underestimate the ability of congress — or the Empty Suit in Chief — to sc-rew up:
http://www.upi.com/Top_News/US/2011/07/22/Obama-Boehner-plan-Cuts-now-taxes-later/UPI-54071311323400/?spt=hts&or=1
WASHINGTON, July 22 (UPI) — The Barack Obama-John Boehner debt-cutting plan envisions $1.5 trillion to $3 trillion in U.S. spending cuts but few tax changes for two years, officials said.
snip
#9 gary: I know a guy who works 38.5 hours a week. They won’t let him work 40, as then they would have to pay health benefits. And he is happy to have the job.
# 1 except here -grim
??
Watched Armageddon 2012 on CNBC last night. Thought it was well done, but it focused a lot on the science(?) and mythology of 2012, which I thought was a decent predicate for discussing business (is not CNBC a business network???), but they overdid that aspect IMHO. Especially with a long interview of a certified tinfoil hat-wearing wingnut (and attorney, no less).
Also, it focused solely on 2012 and the End of Worlders but ignored (perhaps willfully) what I think is the 800 lb gorilla in the room: The prospect of TEOTWAWKI or TSHTF for reasons other than a Mayan calendar. You know, secular stuff like debt crises, depression, civil unrest, pandemics, natural disasters, or a combination thereof.
What I did learn is this: As a Nompound advocate, I am a poser thus far. Some of these guys are well on their way to outfitting old silos, or building village-style nompounds (one idea I had) in the middle of nowhere. But I don’t mind being something of a poser right now, because while I don’t disagree with the necessity for preparedness, there are folks who have dropped 7 figures into a hole in the ground, literally, in order to have a place to shelter when the calendar hits 2013. This strikes me as utter ignorance of history, common sense, and the law of probability.
If I am gonna dump 7 figures into real estate, I want to be able to enjoy it before the world ends, and continue to do so when it doesn’t.
People always forget reaching bottom is meaningless. The last bottom we hit in 1992 but until 1996 homes appreciated less than inflation so inflation adjusted 1996 was low not 1992. Also home appreciation has to be compared vs. other investments. Back between 1995 and 2000 stocks were rising 20% a year and bonds were paying 8% a year. The amount homes were rising in that time period was a poor performance compared to other asset class. From March 2000 to March 2005 houses as an investment was unbelievably good. Trouble was with a house unlike a stock or a bond you are all in or all out. Can be like me when my GMAC, C and AIG bonds doubled where I sold half to guarantee I can lose. Or people in stocks you can’t lighten up. If you bought that million dollar home in march 2005 and liquidated all your assets you are cooked.
My trade up dream house I have been talking to realtor about since December finally sold at 1.22 million. I refused to go above 1.2million. Then my wife decided to completely stop the bid. Now she refuses any trade up house. She feels the trade up house could result in if I lose my job or I am downsized it will cause stress or force her back into the workplace. She now feels a home is a losing investment, no one makes money off real estate. She feels the big trade up house, you have a party or two people come and go wow, and around 10 months later the excitement is done. Then she actually compared a home to my Jets PSLs, all exciting the first year and then what. However, unlike a house I can always sell tickets I can’t use on stubhub, a house just sits there gobbling up your money every day.
The 190K houses in Levitown with 6K taxes are looking better all the time. Vacations in Florida, dinners out, you can max our 401k and 529 all with the freedom of no more 2K a month property taxes, $300 a month property insurance and 3k a month mortgage on that 2005 Toll Brothers mcmansion deep in the heart of NJ.
for a 90k downpayment in Levitown your mortgage is $450 a month and your taxes $500 a month. No wonder people stay in those little shacks.
[13] shore
I reiterate that IMHO the GOP has to take the Bush tax cut issue off the table this year. If they don’t, they are sunk in 2012. One reason the Dems are “rolling over” on this is that they preserve the tax rate issue as an election year issue. That is solid gold to them.
Boehner’s problem is that nearly all of his delegation is in a box; they signed Norquist’s no-tax pledge, and even this deal will violate it (by eliminating deductions). So he has to do old-school headcounting and see how many safe seats he can muster to pass a limited hike on the rich. Then he has to work with Pelosi to get enough dems to sign onto a half-loaf. MSM has largely ignored the fact that lining up the Dems may not be any easier.
[17] JJ,
Lose your job? Why the concern? First, you are undoubtedly brilliant, so any Fortune 500 company would snap you up in a heartbeat. And with your natural “talents and attributes”, you can just relocate to the San Fernando Valley and work as a p0rn star, can’t you?
[189][prior thread] Meat
“Many schools in Memphis could be easily converted to jails. Memphis led the nation in bulldozing whole neighborhoods, so perhaps they can lead again by being on the cutting edge of mass incarceration.”
I see a screenplay here.
“Escape from Memphis”
Starring Clot as Snake Plisken.
[14] 3b
That is the future. It is also the reason a not-insignificant segment of the business community wants single payer or public option.
What? Am I the only one out here? A straight thread punctuated only by JJ, who took his hands off his tool long enough to make one of the better posts of the morning.
(JJ, I kid you, but you know we all love you here. Well, maybe not all).
True, I like the fact it is without doubt I am brilliant. In fact I think you made an infallible statement.
I was thinking of a career in catching home run balls, reality TV star, BS Internet Start up. Ron the Hedge Hog Jeremy was a nice Jewish Boy from Queens who was a college professor when he switched careers. I just need to come up with my porn star name. In fact I think today we all should only post under our “porn star” names.
Comrade Nom Deplume says:
July 22, 2011 at 9:05 am
[17] JJ,
Lose your job? Why the concern? First, you are undoubtedly brilliant, so any Fortune 500 company would snap you up in a heartbeat. And with your natural “talents and attributes”, you can just relocate to the San Fernando Valley and work as a p0rn star, can’t you?
Well, the company I work for is growing and hiring lots of folks, including some right out of college. Our business is helping people invest globally.
Two questions for the board
1) What options are available to a homeowner who has negative equity but not in financial distress? In 2009, I refied from a 30 year to a 15 year mortgage and kept my payments about the same. Interest rates now are close to a pt lower but I think I’m in a negative equity situation (condo)….I will either put down mor money or pay PMI which doesn’t make sense. Just thinking of making extra payments and get rid of the mortgage sooner.
2) Been a long time lurker and sometimes contributor back in the day. Does anyone know of a similar “tell it like it is” real estate blog covering the Mainline Area (Bryn Mawr, Gladwyne, etc) area of PA?
Comrade,
Any good nompound needs to be capable of double-duty: 1) it needs to be an appealing vacation/retirement home in the likely circumstance that the US doesn’t turn into the killing fields, 2) it’s defendable and self-sustaining in case it does.
I think you should look for mormons as your collaborators. Survivalists don’t appear to be good neigbors – think “Lord of the Flies” with grownups. Mormons have decent survivalist instincts, better manners, and typically don’t resort to cannibalism until they’re really hungry.
How does O spin this one????
The budget numbers tell a clear story: Given the aging of the population and the rising cost of health care, attaining a sustainable budget for the federal government will require the United States to deviate from the policies of the past 40 years in at least one of the following ways:
I) Raise federal revenues significantly above their average share of GDP;
II) Make considerable changes to the sorts of federal benefits we provide for older Americans;
III) Substantially reduce the role of the rest of the federal government—that is, defense (the largest single piece), Food Stamps, unemployment compensation, other income security programs, veterans’ benefits, federal civilian and military retirement benefits, transportation, health research, education and training, and other programs—in our economy and society.
http://cboblog.cbo.gov/?p=2371
For anyone who likes (I) realize that historically tax revenue above 20% of GDP is unsustainable as people either stop spending or engage in mass tax evasion.
historical data on tax revenue as a % of GDP for anyone curious
http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=205
A west 25
Dont forget that with multiple wives the mormons have their hands full as is and dont have time to engage in local nomponud politics that could become destructive! They are
Shore
you’ll like this part from my post at #26
……Thus, as can be seen in the chart, limiting federal spending to 18 percent of GDP would require a cut in spending relative to CBO’s baseline projections for 2021 of roughly one-quarter. (The precise amount of the required cut in federal programs would depend on interest outlays in 2021, which depend in turn on the size of deficits between now and then—and on interest rates in 2021. For simplicity, the rest of this paragraph assumes that programmatic spending would need to be cut by about one-quarter.) If certain categories of spending were protected from any cuts, then the proportional cuts to other types of spending would need to be larger. For example, if Social Security and the major health programs faced no cuts, then defense and other non-interest spending would need to be cut by about 60 percent. Alternatively, if defense and other non-interest spending faced no cuts, then outlays for Social Security and the major health programs would need to be cut by about 40 percent. Most of the outlays for those programs cover benefits for people over age 65, with smaller shares for blind and disabled people and for nonelderly able-bodied people. Thus, cutting outlays for Social Security and the major health programs to that extent would mean changing the sorts of benefits we provide for older Americans.
http://cboblog.cbo.gov/?p=2371
FKA2010buyer.
It sounds like you pretty much have a clear head for financing and making sure your assets are protected. The question I have for you is then “how did you get caught buying a house in 2010?”.
Naw, really, the real questions are “how much are you underwater?”, “do you intend to default on your mortgage because you are now under water?”.
If the answer is big $$$, or even a loss your not comfortable at taking then you probably should take steps to walk away from the home. If you have decided on staying for the long haul to see property values rebound then that narrows your options.
Lets say that you are going to stay in the home…If you have the opportunity to reduce the cost of financing the capital then you probably should be taking those steps right now. From ancedotal evidence, 1% off of the existing mortgage is often enough to get people refinancing. My guess is that rates are not going to go much lower from here as inflation acts as a cap. Rates could go lower in a deflationary environment but the fed will make sure that doesn’t happen.
Others in this blog might advise you to take your available capital and buy stocks or bonds with it. Some other investment mechanism and leave the mortgage alone. You will need to do a cost analysis to determine if paying down mortgage and refinancing results in a better economic/monetary position then buying some other asset.
1) What options are available to a homeowner who has negative equity but not in financial distress? In 2009, I refied from a 30 year to a 15 year mortgage and kept my payments about the same. Interest rates now are close to a pt lower but I think I’m in a negative equity situation (condo)….I will either put down mor money or pay PMI which doesn’t make sense. Just thinking of making extra payments and get rid of the mortgage sooner.
24.
FKA,
I am in a similiar situation except Im not underwater (yet). I too have contemplated paying off my mortgage but have resisted the instinct. What we are witnessing is the destruction of a currency system. While this isnt a historically rare event it is unique in the that never before has the world all had a fiat money system.
The cracks in the foundation are getting wider by the day. A brief period of severe inflation followed by deflationary collapse would make the mortgage a non issue. The mortgage would be paid off with devalued currency and your home will be revalued at whatever the new monetary system is.
As for now I would be using those prepayment funds to protect purchasing power.
http://pub.tv2.no/multimedia/TV2/archive/00895/Regjeringsbygg_895981i.jpg
happening right now in Norway
Nom, Clot
Does it have to be escape FROM memphis? Go in with the right connections, some good sources for drugs and guns ( dont forget that handy little airport right over the border in AK), and you can have your own little empire. A sort of mini Mogadishu, with you as the warlord! Use the local gang leaders and organized crime captains as your lieutenants
Shore,
What would make the prime minister of Norway a target for bombing????? Both the prime minster and the nation as a whole would appear to be pretty low on the list of people/places to bomb.
MLS listing I ran across. Guy bought in 1995 for 669K and sold for 925K in 2011.
That works out to 2% appreciation a year.
Property History for 6 Greenway St
Date Event Price Appreciation Source
May 24, 2011 Sold (Public Records) $925,000 2.0%/yr Public Records
May 16, 2011 Sold (MLS) (Closed) $925,000 — Inactive MLSLI #2358053
Mar 04, 2011 Pending (Under Contract) — — Inactive MLSLI #2358053
Jan 14, 2011 Listed (New) $1,100,000 — Inactive MLSLI #2358053
Mar 08, 1995 Sold (Public Records) $669,000 — Public Records
I purchased the condo in 2005 with a 30 year loan and in 2009, refied that loan into a 15 year. In October I will have 13 years left on the mortgage. Its a condo so as been stated several times here, their value can get wacked very easy. Ideally, I wish my current mortgage company would simply convert me to a 10 year loan so I could take advantage of the lower rates. Its not a question of affording the payment, the LTV ratio doesn’t qualify for a loan unless I put down more money and I’d rather hold onto those funds.
Its not a lot of money and I have no intentions of defaulting. I could rent it out and just about break even on the mortgage and association fees. The reason I’m keeping it is that I have a two year old and by the time he is a junior in HS it will be paid off and the rent will be his college money.
Green shoots!
Consumers in the U.S. are increasingly using credit cards to pay for basic necessities as income gains fail to keep pace with rising food and fuel prices.
http://www.bloomberg.com/news/2011-07-21/consumers-in-u-s-relying-on-credit-as-inflation-erodes-incomes.html
Ket,
Norway is a reliable NATO partner, so that would make it fair game for any follower of UBL.
Nom:
http://online.wsj.com/article/SB10001424053111903554904576460381949867902.html
Out of the Way, Please, Mr. President The Gang of Six puts forward some ideas worth pursuing.
“It’s good, it represents progress, build from it. That would be a helpful approach to the Gang of Six proposal on the debt. Don’t deep-six it because it’s flawed. Flawless isn’t going to happen. There will be a big election in 2012. A lot can be settled then, and after.
The Gang of Six—three Democrats and three Republicans in the Senate—this week put forward a plan aimed at reducing the national debt by almost $4 trillion over the next 10 years. It includes $500 billion in immediate cuts, and repeals a costly provision of ObamaCare. The plan would lower the top individual tax rate to 29%, push corporate tax rates down to 29% from 35%, and abolish the Alternative Minimum tax. On long-term spending the plan includes a legislative supermajority and sequester feature. In the words of a senator involved in the bargaining, “For the first time, we have some real teeth” in spending controls.”
snip
29% would be a step in the right direction. Go ahead and close the freaking loopholes if it allows us to lower the rates.
Ket,
On the other hand, it could be the Herring Liberation Front.
FKA – Wouldn’t advise throwing more money at an underwater condo! Condos are in for a very big fall. Very few units are being sold and inventories are swollen. Offers have disconnected from asking prices. Whatever money you throw at a condo will be lost to depreciation.
[25] west
The dual purpose has always been my mantra. In fact, it has spawned some criticism of my methodology, and certainly made the property search difficult.
Agree re Mormons v. survivalists. Came to that conclusion some time ago. If Utah were a less inhospitable environment (really meaning if water was plentiful), I would have already bought there. Open land, like-minded and decent neighbors, and access to some of the best skiiing and mt. biking in the world? No brainer.
From the WSJ above”
snip
The other day he announced the Gang of Six agreement with words that enveloped the plan in his poisonous embrace: “I wanted to give folks a quick update on the progress that we’re making.” We’re. He has “continued to urge both Democrats and Republicans to come together.” What would those little devils do without Papa? “The good news is that today a group of senators . . . put forward a proposal that is broadly consistent with the approach that I’ve urged.” I’ve urged. Me, me, me.
That approach includes “shared sacrifice, and everybody is giving up something.” He was like a mother coming in and cheerily announcing: “Dinner’s served! Less for everybody!”
We’re trying to begin a comeback, not a famine. We’re trying to take actions that will allow us to grow.
He’s like a walking headache. He’s probably triggering Michele Bachmann’s migraines.
The Gang of Six members themselves should have been given the stage to make their own announcement, and their own best case.
The president, if he is seriously trying to avert a debt crisis, should stay in his office, meet with members, and work the phones, all with a new humility, which would be well received. It is odd how he patronizes those with more experience and depth in national affairs.
snip
[24] FKA
If you are looking in Gladwyne, money should not be a concern. That’s the sort of place where if you have to ask how much, you can’t afford it.
Nom,
My wife was watching the mormon reality show on TV the other day and pointed out that logistically the mormon life style makes a lot of sense. You have 2 or 3 adults with full time incomes while you have at least 1 stay at home mom to raise the children and take care of the house hold. You are also much more resilient to the loss of any one income in the family.
“Consumers in the U.S. are increasingly using credit cards to pay for basic necessities as income gains fail to keep pace with rising food and fuel prices.”
Which is great considering most major banks have dramatically reduced their loan loss reserves for credit cards.
Windows blown out over a block away. Take a lok at buildings on right side of this pic.
http://twitpic.com/5tzsmx
#42 30 year I saw a couple of co-ops in the land of Unicorns that are priced not much more than where they were selling at in 1987/88. These of course are asking prices, and co-ops.
[39] shore
“”There go the people. I must follow them, for I am their leader.”
Alexandre Auguste Ledru-Rollin
#37 kettle: Here is another profound comment from an economist at BOA/Merrill in today’s NY Times discussing unemployment:
“we’re going to see improvements, but right now nothings improved yet, “
Abolish the mortgage and property tax deduction now!!!
In NY we practice More Man
Hey Gary,
This is why your friends are losing their jobs.
The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows. Dec 2007 to present.
Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places
Your tax dollars hard at work.
http://www.scribd.com/doc/60553686/GAO-Fed-Investigation
[46] kettle
Haven’t seen it. Are you talking about old-style mormon with multiple wives?
Another decent comparator are the Amish. Common denominators are strong communities that emphasize/reward cooperation and assistance, common value structure, familiarity, homogenity, and status as a minority. These act as centripetal forces that encourage compliance rather than evasion. It also calls to mind the old Twain quote: “Laws are sand, customs are rock. Laws can be evaded and punishment escaped, but an openly transgressed custom brings sure punishment. . . .” (that said, Twain was critical of customs).
Al
Its nice to know we bailedout eurpoe. I wonder if we get a thank you note?
[52] JJ
Abolishing those deductions are almost certainly going to be universally opposed by virtually every town, city, and county government. The effect will be to lower housing values (if only incrementally) and encourage voters to contest assessments more vigorously than they are now doing. They will see it as the Feds grabbing revenues from them. Not directly true, but true in a certain fungible sense.
Nom,
Yes, multiple wives. The show is called Sister Wives. homogenity……. but what about the vaunted diversity!?
Nom,
Both groups practice more of a “village” model which is much more resistant then the modern standard.
#57 I saw something a few days ago, stating that only 23% of American benefit from the mtg deduction, yet over 57% of Americans believe it should be preserved.
[56] kettle
didn’t get one in 1945. Not holding out hope now.
BTW, are you familiar with this story?
“In 1966, upon being told that Charles de Gaulle had taken France out of NATO and that all U.S. troops must be evacuated from French soil, President Lyndon Johnson told Secretary of State Dean Rusk: ‘Ask him about the cemeteries, Dean!’
So, at end of the meeting, Dean asked de Gaulle if his order to remove all U.S. troops from French soil also included the 60,000 plus soldiers buried in France from World War I and World War II. De Gaulle never answered.”
and while we are on the subject:
http://www.dailymail.co.uk/news/article-1161642/As-France-rejoins-NATO-humorous-reminder-missed-them.html
[59] kettle,
One aspect of the village model was the presence of extended family units. Not just linear descendants occupying a homestead or within close proximity, but extended families doing the same. Thus, if a village is dominated by a few, large, like-minded family groups, you have continuity and custom. Of course, there are those that will chafe at such dominance, but unlike the antebellum south, no one is chaining them to the plantation.
Ket [56];
I wonder if we get a thank you note?
Not even a reach around.
Interesting that they call them “The Gang of Six”, rather then, “The Group of Six”. That makes the Senate “The Gang of One Hundred”. Given that they are all criminals, “Gang” does make more sense, I guess.
Greetings from sunny happy island aruba
FKA,
I’d rather hold onto those funds.
Looks like you already have your answer, why do you need to search here for more support?
The reason I’m keeping it is that I have a two year old and by the time he is a junior in HS it will be paid off and the rent will be his college money.
Personally, I’m not a fan of putting assets/money into different pots. Why would the income stream from “rent” be different from “job”? Money is money. I don’t think it is a smart idea to partition income streams into logical boxes.
My wife had this idea of “extra money” when we first got married. I was baffled at the concept, and I questioned her more about what “extra money” meant. She explained that since that she gets paid every two weeks, some months have two paychecks and twice a year, there is an extra paycheck. Three paychecks in one month, therefore the extra paycheck is “extra money” and is treated like a windfall to which she spends on luxury items.
I think your doing the same thing here with your money, I don’t treat my rental income any different then I do my job income. I don’t treat money I find on the street any differently then I would money I worked hard for.
I think that the concept is solid, you would like to pay for your childs college expenses, but be careful of creating a sacred cow out of that specific rental property. If a better opportunity presented itself then you don’t want to have to explain to your family why you are slaughtering that cow. Better to not make it sacred in the first place.
[6] “The upside is that it is the raw sewage of the best and brightest from all over the country who come to NYC to make a name for themselves and keep real estate prices high.”
I’m only six comments into this blog and already it has put a smile on my face. Quality.
I’ll note that raw sewage in the Hackensack River is never an issue, as the unicorns drink it and convert it to the sweet nectar that gives rise to 26% year-over-year price increases in Brigadoon-on-Hackensack.
A little update from yesterday…..the sellers actually rejected our offer without even countering. We offered a very competitive price for their property. No need to have second thoughts at this moment, huh?
“No need to have second thoughts at this moment, huh?”
Nope.
“the unicorns drink it and convert it to the sweet nectar”
Kind of like the Fed.
50,
Nom, you have no idea how many times I have used that. If it were not real, it would have to be invented.
#67 Happy: Yes it is a truly wonderful ,magical place. The only draw back is the constant battle between the Unicorns and Geese. Geese have the potential to bring property values down,and we cannot have that happen.
Speaking of sewage, there was a release so NYC said no swimming in the East or Hudson Rivers, or the beaches below.
Who in their right minds would swim there in the first place?
[71] shore
We have to booze it up sometime. We really do.
Seems the IRS doesn’t much care for oversight so, if you can’t abolish them, keep them busy on their own house.
http://www.treasury.gov/tigta/auditreports/2011reports/201110052fr.pdf
N.J. judge files lawsuit against new pension and health benefit increases for public workers:
The complaint, filed Thursday by Superior Court Judge Paul DePascale, who sits in Hudson County, is the first legal challenge to the landmark health and benefit law enacted last month. State public employee unions angered by the changes are also vowing to go to court.
The complaint says the law runs counter to the part of the state constitution that says the salaries of the Supreme Court justices and Superior Court judges “shall not be diminished during their term of appointment.”
http://www.nj.com/news/index.ssf/2011/07/nj_judge_files_lawsuit_against.html
C’mon jamil, you are slacking out there. You on vacation or something?
http://articles.philly.com/2011-07-21/news/29798002_1_new-panel-law-school-allegations
I like the slacking Jamil.
Kettle,
“Superior Court Judge Paul DePascale, who sits in Hudson County” – Hudson County surprise, surprise, surprise
“slacking Jamil”
It sounds like a Kevin Smith movie.
the bigger issue may be mortgage recording tax and mansion tax, that will fall.
Comrade Nom Deplume says:
July 22, 2011 at 11:18 am
[52] JJ
Abolishing those deductions are almost certainly going to be universally opposed by virtually every town, city, and county government. The effect will be to lower housing values (if only incrementally) and encourage voters to contest assessments more vigorously than they are now doing. They will see it as the Feds grabbing revenues from them. Not directly true, but true in a certain fungible sense.
“I saw something a few days ago, stating that only 23% of American benefit from the mtg deduction”
Well as only half of Americans pay federal income tax that means just under half of taxpayers benefit from it.
[76] kettle
by the Judge’s logic, raising taxes on his salary would also be a violation.
This is a loser of a case, and a fine example of the fact that NJ appoints crony’ed up idiots to the bench.
“The Obama administration is examining ways to pull foreclosed properties off the market and rent them to help stabilize the housing market, according to people familiar with the matter.
While the plans may not advance beyond the concept phase, they are under serious consideration by senior administration officials because rents are rising even as home prices in many hard-hit markets continue to fall due to high foreclosure levels.
Trimming the glut of unsold foreclosed homes on the market is “worth looking at,” said Federal Reserve Chairman Ben Bernanke in testimony to Congress last week. ”
http://online.wsj.com/article/SB10001424053111904233404576458300001332210.html
Any renters move into my neighborhood and I will turn into the neighbor from hell.
Fannie and Freddie were a step towards nationalization of housing. Say hello to your new landlords. The motherf_cking g_v.
Single women looking for a spouse have a very different version of savings. One beautiful girl I dated was in debt maybe 40K. But she had a hampton share house, a studio in Manhattan, mazda miata red covnt.,wonderful clothes and went to all the right parties. She was a NYC non-tenured school teacher. To her spending was an investment. She was looking for a well off rich husband. Deciding to give up her apt, give up her share house. I only dated her three months but I understand where she was coming from. My wife had a brand new car, wonderful apt, fur coat, vacationed in the carribean, belonged to gym and did amazing things. Her net worth was not negative but was around 20K. To this day she claims it was a great investment. Don’t blame your wife for thinking the extra check was a windfall for shoes, clothes, nails, vacation etc. She is spending money to make money. Heck my wife has not worked in a job in over a decade I guess it was a good investment. But even if I married the beautiful girl who was 40K in debt, so what? I write a check pay off 40K. Who wants a mousy 30 year old girl who lives at home, does her own hair and nails drives a used corolla, shops at Kohls and rents videos for fun. I want a tan, hot in shape, well dressed fun girl with a great apt and car even if she does not have a nickle in the bank. Girls learn at an early age you have to spend money to make money.
Why did I get rid of beautiful teacher? Problem was I had same strategy, used mercedes, hampton house, ski house, apt in city etc. that attracted the ladies I was not in debt but had a net worth at time that could not bail out another person. Living with a beautiful girl used to nice things in a studio in NYC was not going to work out.
I should get a column in Cosmo
“My wife had this idea of “extra money” when we first got married. I was baffled at the concept, and I questioned her more about what “extra money” meant. She explained that since that she gets paid every two weeks, some months have two paychecks and twice a year, there is an extra paycheck. Three paychecks in one month, therefore the extra paycheck is “extra money” and is treated like a windfall to which she spends on luxury items”.
This OT post is for Meat, f.k.a. Clot
http://news.blogs.cnn.com/2011/07/22/whoops-1-million-worth-of-wine-spilled/?&hpt=hp_c2
FKA 2010 Buyer –
Your condo – is it on the Main Line and are you serious about renting it?
If so, are you near a train station (Walking Distance) and how far are you from 30th street station?
BTW, our formerly inhabited unit in our multi is now available for immediate occupancy if anyone is interested here. The landlord is really cool and there is no charge for the bedbugs or dog hair. $2,000 per month. Jamil need not apply.
#89 Do you allow pets?? I need a place that takes pets; specifically Unicorns.
[88] toast
Isn’t the better measure where FKA’s nearest station is? You can look up the time to 30th St. yourself.
FWIW, SEPTA rail is damn slow. Lots of stops and lots of “technical problems”. Explains why the Sure-Kill Expressway and City Ave. are always jammed.
[90] 3b
My yard in the Brig is large enough for several unicorns. However, we had a bear through here a couple of days ago. Not sure if bears like the taste of unicorn.
U.S. taxpayers are not taxed on imputed income derived from home ownership. This can be explained by comparing a person who owns a home and rents it out to strangers. The rents received are included in the taxpayer’s income If this taxpayer rents a place to live because he chooses not to live in the home he owns, the payments he makes are not deductible because it would be a personal expense. Simply by evicting the tenant and moving into the home that he owns, this taxpayer avoids including the rent on his own from his gross income.
I think if you own a home that can rent for $2,500 a month and your mortgage and RE taxes equal $1,500 a month we should make that $1,000 a month taxable income. I like it.
A bear in Westfield, NJ Holy cr-p! Want some iguanas?
Wish I was back in comparatively cool, comfy South Beach. I have declared the small garden in the front of my house officially dead. If only I knew in May what I know now, I would have saved that annuals money. Clippers and a rake this evening before sundown just to tidy up.
Comrade,
How far from 30th street station lets me know what suburb the place is located without stating it on the board if he preferred not to. Walking to local SEPTA station impacts decision greatly. I know the R5 and Acela to NYC well but thanks for your comments.
“iguanas”
Cool. How do you serve them?
grilled but some prefer batter fried. tastes just like chicken
Shore with chutney,
just got back from Minnesota, totally get how they can vote for Bachmann now. Got home late from airport only to see a bear being chased by a unicorn. who was then murdered by one of our upper middle class drug addicts. Morris county is grand
Good thing we spent all that infrastructure money on improving the energy grid.
#92 All Brigadoon (the original) is missing is Unicorns, and it would be perfect. I of course (my only claim to fame on this blog) came up with the name of Brigadoon for Westfield.
[101] 3b
I am glad there are no unicorns here. All they do is crap out Skittles, and my daughters would be eating them all day long.
From the No Good Deed Goes Unpunished files . . .
“Panagiotis G. Ipeirotis . . . a computer scientist who teaches at New York University’s Stern School of Business, wrote a post on his blog last week called “Why I will never pursue cheating again.” In it, he told the story of how he found that about 20% of a 100-person class had plagiarized — and described the fallout from his accusations. . . .
His students became antagonistic, he wrote on the blog post, and gave him lower teaching evaluations than he had ever received before. And those poor teaching evaluations were cited in a review that resulted in the smallest raise he had ever received.
To Ipeirotis, the experience led him to vow never to go after cheaters again. “Was it worth it? Absolutely not,” he wrote on the now-deleted blog post. “Not only [have] I paid a significant financial penalty for ‘doing the right thing’ (was I?) but I was also lectured by some senior professors that I ‘should change slightly my assignments from year to year.’ (Thanks for the suggestion, buddy, this is exactly how I detected the cheaters.) … I also did not like the overall teaching experience, and this was the most important thing for me. Teaching became annoying and tiring. There was a very different dynamic in class, which I did not particularly enjoy. It was a feeling of ‘me-against-them’ as opposed to the much more pleasant ‘these things that we are learning are really cool!'”
The Democrats are right. The definition of America has changed.
http://www.nj.com/news/index.ssf/2011/07/few_nj_school_districts_to_use.html
Screw you homeowners, our schools are the tops, and your going to pay for it.
Don’t ask any questions
I see where the confusion came from. The condo I own is located in South Orange. I can find plenty of renters they are unfortunately college kids.
My question about Mainline is that the Mrs wants to move back to PA and live there. I like to do a little due dili before I even consider it. Its already an issue for me considering I work in NY and would have to commute if I bumped my head and moved.
clot: for you….
http://www.mtv.com/videos/misc/675057/beavis-and-butt-head-sdcc-11-sneak-peek.jhtml#id=1667713
Speed forward to 1:45 if need be….
This thing goes on an exponential arc…..
FKA –
Where is your place in S. Orange? We are in situation where it would be easier to be back in NNJ – one of us prefers to stay in PHL. Either way, we are and will remain renters.
Daily commute from PHL to NYC is a grind. If you can do it 2-3 days / week, tiring but not as bad. Main Line prices have dropped – not sure how much. If you like S. Orange, you would enjoy living in the Lower Merion School district. Lots to rent if you want to try before you buy.
FKA – you probably already know this but…
http://www.prufoxroach.com/
You can click on counties and search rentals and stuff for sale by school district or neighborhood etc. Lower Merion school district is in Montgomery County and Tredyffrin Easttown school district is in Chester County. These are the primary Main Line school systems.
NJ.com indicates 105 degrees in Jersey City. All I can say is wow!
105. Long day. Have at it.
Thermometer read 110 in middlesex at 3pm
plume (12)-
If your prediction comes to pass, William Black’s head will explode.
vodka (33)-
Liquor, guns, drugs and BBQ were the main themes of my coming of age in Memphis. Fun as it was, I don’t think I could or should repeat the same prodigious consumption of those four items at my current age of 51.
plume (103)-
We are done for as a nation. Even learning has devolved into a giant, price-inflated Ponzi.
Had my daughter not gotten tons of $$$ from her school, I would have given her the Kathy Bates Misery treatment to prevent her from registering. I give it about 50-50 odds that she will only find work in coaching and sports training upon her graduation.
Both my daughter’s roommates are studying Chinese. Both indicate they will be leaving the US upon graduating college to pursue employment in the developing, productive part of the world.
Meat 117
they may want to wait until after WWIII settled down. southeast asia could get messy.
Meat
The nation is doing just fine thank you very much!
“It works like this: If steak gets too expensive and you start buying hamburger instead… well, your price of beef hasn’t really gone up and your cost of living is unchanged. This is one of the reasons official CPI is running 3.6%, but if it were still calculated the way it was before the Greenspan Commission went to work, it would be 11.1%.”
“Under “chained CPI,” if your hamburger gets too expensive and you start buying beans instead… well, your price of protein hasn’t really gone up and your cost of living is unchanged.”
Meat Plume 114
Given the track record of TPTB i think i may have to agree with Barbara and say that Nom’s prediction is highly likely in one form or another. Its that, or a WWIII event that forces the entire nation to mobilize in short order, thereby negating the “service” economy.
Although if the universe has a particularly twisted sense of humor, then we could see both.
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