Home ownership hits new lows

From HousingWire:

Homeownership drops to 1998 level

The U.S. homeownership rate in the second quarter dropped to its lowest level in 13 years, according to the Census Bureau, with analysts expecting even more drops ahead.

The homeownership rate fell to 65.9%, down one percentage point from a year ago. It’s the lowest level measured since the first quarter of 1998. Analysts at Capital Economics said this means the homeownership rate built during the housing boom has been “completely wiped out” by its bust.

“The poor economic climate, the double dip in house prices, the high number of foreclosures and tight credit conditions are all reasons why the homeownership rate will continue to fall,” analysts said.

The rate remained highest in the Midwest at 70%, followed by 68.2% in the South, 63% in the Northeast and 60.3% in the West. Since the second quarter of 2007, the homeownership rate in the West has dropped more than four full percentage points.

Homeownership for younger consumers has become even more sparse. According to the Census Bureau, the rate among Americans younger than 35 years old dropped to 37.5% from 39% one year ago. This, analysts said, is a sign credit has tightened for younger consumers. With unemployment elevated for this cohort, as well, the rate could continue to fall in coming quarters.

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163 Responses to Home ownership hits new lows

  1. grim says:

    From the NY Times:

    Buying a Final Resting Place, Very Gently Used

    For sale: 101-year-old Greek Revival building in landmark area. Top-quality granite exterior, marble interior, high ceiling, custom-made window by famous artist. Immediate occupancy: vacant since the 1950s. Sleeps eight. Asking $750,000.

    Standing on the threshold, Susan Olsen explained that the price did not include putting the buyer’s name above the stately bronze doors.

    The current owner’s name, Peale — as in the Rev. Norman Vincent Peale, the longtime minister at the Marble Collegiate Church in Manhattan and author of best-sellers like “The Power of Positive Thinking” — had been covered up. Potential buyers become discouraged if they see someone else’s name up there, she said.

    “Of course, if their name is something like Schwarzenegger” — with 14 letters — “it might not fit,” she said.

    The property she was showing is a mausoleum, one of three on the market at Woodlawn Cemetery in the Bronx. Ms. Olsen is Woodlawn’s staff historian.

    In New York, where so much of daily life seems to revolve around real estate, it stands to reason that big-money prices and maxims like “location, location, location” figure in death as well. Mausoleums change hands just like two-bedroom co-ops or six-story walk-ups. And with cemeteries running short on space, cemetery officials have been known to call descendants who own long-empty gravesites or mausoleums, and suggest a sale.

    At Woodlawn, which has more than 1,300 mausoleums, there is precedent for such turnover.

    “Our most famous resale was J.C. Penney,” Ms. Olsen said. Penney, the department-store founder, died in 1971 at 95.

    “He bought his from Mrs. William Randolph Hearst when she bought another used one,” she explained.

  2. Mike says:

    Good Morning New Jersey

  3. Mike says:

    From Yahoo Finance refering to the debt: All states rely on federal aid, but the impact will vary state to state. New Jersey, for example, counts on a smaller percent of federal money for state spending than other states, chiefly because it has more wealthy residents.

  4. grim says:

    From the Record:

    Interest rates, down payments set to rise for high-end homes

    Buyers of certain high-end homes will face higher mortgage rates and heftier down payment requirements starting Oct. 1, when the federal government takes a small step back from the mortgage market.

    Fannie Mae, Freddie Mac and the Federal Housing Administration currently buy and guarantee mortgages of up to $729,750. That government support allows borrowers to put down as little as 3.5 percent and enjoy lower interest rates.

    But as of October, the government is going to stop backing loans of more than $625,500. Loans that exceed that limit will be considered “jumbo” loans, which typically carry higher interest rates and require 20 percent (or higher) down payments.

    “If they want to buy something that’s $750,000 and all they have is 10 percent to put down, they’re not buying that house,” said Carl Nielsen of Mortgage Masters, a mortgage broker in Wayne.

    The lower limit is likely to put pressure on home prices, said Robert Wilderotter, a mortgage broker with Real Estate Mortgage Network in River Edge.

    “If the change creates a falloff in demand or lack of affordability, it’s certainly possible you could see a falloff in home prices,” agreed Keith Gumbinger of HSH.com, a mortgage information company in the Pompton Plains section of Pequannock. But he predicted that the drop would be minor.

    Marvin Anhalt of Anhalt Realty in Englewood also expects only minor effects because most buyers in the $700,000 price range can afford to put down 20 percent or more.

    “They’re not first-time buyers,” he said.

    Nielsen said that in his experience, most buyers in higher price ranges do not choose FHA loans. Although those mortgages have the lowest minimum down payment — 3.5 percent — they also carry higher fees. As a result, many buyers put down at least 10 percent, for loans backed by Fannie Mae and Freddie Mac. The higher down payment requirements would hit those buyers.

  5. Confused In NJ says:

    So, we raise the Debt $2T Now, and cut spending $2T over next 10 years. That should cover the interest on the $2T we raised the Debt Now. How dysfunctional is this government?

  6. ZH calls the Clowngress deal “Debt Man Walking”.

  7. Dissident HEHEHE says:

    Debt deal = yawn

  8. Comrade Nom Deplume says:

    Meat,

    Good to see you out early. Had to cover for you a couple of times last week with stench of death posts.

  9. Comrade Nom Deplume says:

    (90) (prior thread) fabius

    Yr tax policy question would take pages to answer. There are things I would change, and some would surprise you.

    On article, u could take corp tax msg, but it is stretch vs more obvious accumulated wealth tax call. And one economist blog called it a personal opinion piece, which it was. Nice to know our econ news isn’t being filtered and slanted, eh?

  10. gary says:

    LONDON (AP) — British banking group HSBC said Monday it will cut 30,000 jobs worldwide by 2013 and sell almost half its retail bank branches in the U.S., part of a new strategy to focus on fast-growing emerging markets.

    Let me know which part you don’t understand.

  11. 3b says:

    #68 (from yesterday) There is no way the Russians would even consider venturing into Afghanistan again;there 10 years there form 79 to 89, hastened the fall and collapse of old Soviet Union. And no way they would touch the quagmire of Iraq either. They have their own restive Muslim populations in Russia. As far as China, they will just do what they have been doing in parts of Africa, and Brazil, establishing economic relationships on very favorable terms for themselves.

    As far as setting governments that will work for us well that is just a joke;both of those places are ungovernable. We need to withdraw from both countries.

  12. JJ says:

    If I buy J.C. Penney’s Mausoleum can I used one of those 20% off coupons I get with the Sunday paper?

    In New York, where so much of daily life seems to revolve around real estate, it stands to reason that big-money prices and maxims like “location, location, location” figure in death as well. Mausoleums change hands just like two-bedroom co-ops or six-story walk-ups. And with cemeteries running short on space, cemetery officials have been known to call descendants who own long-empty gravesites or mausoleums, and suggest a sale.

    At Woodlawn, which has more than 1,300 mausoleums, there is precedent for such turnover.

    “Our most famous resale was J.C. Penney,” Ms. Olsen said. Penney, the department-store founder, died in 1971 at 95.

  13. chicagofinance says:

    Been saying as much for a week, but my clients don’t see it that way.. :(

    Hopefully I get to look good for not going to all cash on Friday…….

    Dissident HEHEHE says:
    August 1, 2011 at 7:37 am
    Debt deal = yawn

  14. chicagofinance says:

    Dude….one of your best….

    gary says:
    August 1, 2011 at 8:41 am
    LONDON (AP) — British banking group HSBC said Monday it will cut 30,000 jobs worldwide by 2013 and sell almost half its retail bank branches in the U.S., part of a new strategy to focus on fast-growing emerging markets.

    Let me know which part you don’t understand.

  15. chicagofinance says:

    gary….sorry about Plax…we needed him…

  16. The Original NJ Expat says:

    Re: Home “ownership”. For most, isn’t it really home access? Does anyone with negative to low equity in a home really “own” anything other than long term debt, maintenance, and tax obligations?

  17. Comrade Nom Deplume says:

    Gold drop pretty tepid. So much for an entry point.

  18. Comrade Nom Deplume says:

    (17) expat,

    With strategic default, you don’t even own those anymore.

  19. Painhrtz - Salmon of Doubt says:

    Lock and Load time. time to go even more long on brass

    “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.”

    http://market-ticker.org/akcs-www?post=190615

  20. gary says:

    chifi,

    Plax was a non-issue. Hixon is back, Nicks will be a monster and Manningham is ready to go to another level. If Steve Smith stays healthy, all is well. It’s the offensive line that worries me.

  21. gary says:

    And I’m actually watching the Mets this year! :)

  22. Anon E. Moose says:

    Juice [23];

    Nice catch — just beat me to it.
    Shorter link: http://dilbert.com/strips/comic/2011-07-31/

  23. Mikeinwaiting says:

    OOPS!
    10:01 AM July ISM Manufacturing Index: 50.9 vs. 54 consensus and 55.3 prior.

    Dare I say “unexpectedly”.

  24. Simply Ravishing HEHEHE says:

    Stench is everywhere. Good thing there’ll be no stimulus package since we just agreed on no more spending:)

  25. Nicholas says:

    That stock market rally from them declaring a debt deal sure was brief.

  26. 3b says:

    #25 This will all be blamed on the now ended (if you will) debt ceiling crisis, and the experts will be calling for an improvment in August.

  27. Zack says:

    ISM down….

    Did I hear a double dip recession…

    People who got on the “worst is over” housing band wagon will be roasted.

  28. 3b says:

    #26 Bernanke will be back later in August with QE3

  29. Painhrtz - Salmon of Doubt says:

    Come mister tally man tally me bannana republic

    That dilbert is pretty funny

  30. JJ - AKA Two Hands says:

    Other than Cars I did not even know the US manufactured anything. So what is big deal that it is falling?

    Jet fans drive me nuts, cheapest fans ever. The amount of people who asked me if they can have my seats at face to a regular season game is amazing, even more amazing they are mostly ex season ticket holders who gave them up as they did not want to pay for a PSL or preseason.

    Stock market down again today, the bond rally is very long in the tooth.

    Any Plax, Holmes and Cromertie signing helped me unload a preseason game this morning at only 30% under face, my highest selling preseason game ever!!

  31. Nicholas says:

    According to NPR we also export more than 2 Billion chopsticks each year.

  32. Libtard in the City says:

    30 year – 2.75

  33. gary says:

    Yes… We… Can…

  34. Shore Guy says:

    When does the downgrad happen? Today?

  35. Dan says:

    Gary,

    Regarding HSBC, I was working for a company which switched banks to HSBC a couple of years ago so every so often I would bring the check deposits over if one of my staff was out. I would usually go to the Millburn branch and one of my co-workers would go to Summit. We would both joke how there were NEVER NEVER NEVER any customers in the branches.

    Back then, I used to do my personal banking at Bank of New York and got familiar with the people inside. One day, I make a deposit for the company at HSBC and see one of the tellers that used to be at Bank of NY now at HSBC and I said hello and I see that he switched banks and replied “Yes, to a better bank”.

    I joked about this with my co-workers and we just assumed he didn’t like dealing with customers.

  36. 3b says:

    #34 1o Year-2.73

  37. Dan says:

    JJ,

    My friends who chose to not go with the PSL’s last year and chose nosebleeds aren’t renewing. Maybe seats as good as yours aren’t affected but I think there may be a glut of seats available in the upper deck this year.

  38. Comrade Nom Deplume says:

    (23) juice

    Damn. Beat me to it.

  39. Juice Box says:

    Shore – US T is the least dirty shirt in the hamper, no worries.

  40. Simply Ravishing HEHEHE says:

    To be honest, I am not sure if QE3 is going to get the type of reaction the past two rounds have gotten.

  41. chicagofinance says:

    Q to the board:

    I know that sleeping on the clock for a union job may get you written up, but what about being dead on the job?

    Dead bus driver goes unnoticed for five hours at Port Authority

    Transport authorities were investigating Monday how a bus idled for five hours at Port Authority terminal with its dead driver inside.

    The NJ Transit bus from Meadowlands Station in East Rutherford, NJ, arrived Sunday at 10:30 a.m. Five hours later, the driver, Thomas Truex, was discovered slumped dead in a passenger seat, The Record reported Monday.

    NJ Transit officials called the driver’s wife at 3 p.m., and she confirmed that he was missing. NJ Transit officials then called the Port Authority, and a supervisor found the body.

    Truex’s death was not being treated as suspicious, although the cause of death was not known.

  42. JJ - AKA Two Hands says:

    There is absolutely no reason to buy an Upper Deck Jets Season tickets unless is between the goal posts first twenty rows or first ten row of endzone. The crappiest 7K seats up there will always be available as season tickets.

    Seats in the first three rows from goal line to 30 yard line in lower level in the PSLs from 6k to 10K have a big mark up every game. I actually only regret not buying more seats. People forget when selling tickets in lower level is row one competes with row one, row two competes with row one and two, row three competes with rows one, two and three. Until you get to row 40 and realize you are competing with rows 1,2,3,4,5,6,7, 8,9,10,11,12,13 ….. 10. Historically if you track PSL resales of other NFL teams, low row non premiun lower level sideline seats have highest resale value. Many Jet fans bought an investment dependent on individual tastes, however they are now suffering. I am still furious Giants would not sell me the 1k UD Psls they go for like 3-4K in secondary, they locked me out of a 300% return investment. .

    Dan says:
    August 1, 2011 at 10:57 am

    JJ,

    My friends who chose to not go with the PSL’s last year and chose nosebleeds aren’t renewing. Maybe seats as good as yours aren’t affected but I think there may be a glut of seats available in the upper deck this year.

  43. Al Mossberg says:

    17,

    Expat,

    “Re: Home “ownership”. For most, isn’t it really home access? Does anyone with negative to low equity in a home really “own” anything other than long term debt, maintenance, and tax obligations?”

    Thats exactly what home ownership is.

  44. Al Mossberg says:

    18,

    Nom,

    Dont bet against a sure thing. The move you will see over the next 6-8 months will be awe inspiring. Death to fiat.

  45. BC Bob says:

    ISM down close to 20%, from 3/11. Folks, that’s a crash. Combine this with Friday’s GDP #’s, the economy is firmly underwater. These reports can only be interpreted in one of two ways; we are in a recession or about to enter one. We can’t be digging out of a recession, the manipulators/liars have already told us that the recession ended in 2009. What they fail to address is that a depression is simply a series of recessions (rolling recessions) interrupted by miniscule, temporary growth; government spending. Unfortunately the short term sugar highs are not sustainable. Nothing of substance is gained, we are simply left with more debt.

    While our dysfunctional govt stroke themselves over ceilings, was there any discussion regarding real job growth? I wonder if anyone asked, got demand?

    The great unwind continues. It will go longer than most can imagine.

  46. 3b says:

    #42 It is the only thing he can do.

  47. Just Asking says:

    If he dies and does not clock out us he entitled to OT?

  48. Juice Box says:

    re #43 – Guy was driving a bus for 26 years, my condolences goes out to him. I have bus drivers in the family and anyone who can deal with the Lincoln Tunnel traffic for that long should get a monument put up in the Meadowlands park and ride.

  49. Mikeinwaiting says:

    Man the market rolled over quickly in regard to the debt deal , double dip on firm ground IMHO.

  50. BC Bob says:

    “If he dies and does not clock out us he entitled to OT?”

    Just Asking,

    He is only entitled to vote in Hudson County.

  51. Libtard in Union says:

    I heard he was promoted to customer service. Apparently, he is now qualified to serve in that roll.

  52. Mikeinwaiting says:

    Re51 That it both RE & the economy.

  53. xmonger says:

    chicago,

    Thank you for the uberinspector rec. in the other thread. Is that your business? I have someone else lined up but there may still be time to change the gears.

  54. A.West says:

    JJ, (32)
    The US was the world’s biggest exporter in 2009. Just behind Germany and China in goods, ahead of everyone in services. Big exporter of airplanes & armaments, heavy equipment, software, medicine. Biggest exporter of films and media.
    The US is a huge manufacturer of the world too, given the large non-export base. Not just of corn chips.
    The main thing is that manufacturing employs fewer people, because manufacturing is becoming increasingly efficient.

  55. reinvestor101 says:

    Dammit. I called for bulldozing the damn excess inventories months ago. Had they done that back then, the stinking real terrorists and buyers would have folded their damn tents months ago. I guess it’s better late then never, but it’s about damn time that someone listens to me:

    http://news.yahoo.com/bulldoze-way-foreclose-102000063.html

  56. Libtard in Union says:

    The Uberinspector ought to donate to Grim.

    BTW, Have gone half a year and no bones have been found.

  57. toomuchchange says:

    #69 – Cobbler and Shore Guy

    Re NYT article:

    If this guy wants people to stop “Tuning Out the Democrats” then I suggest he stop equating the Democrats with “center-left”, “progressives” and “liberals.”

    There’s lots of people who consider themselves moderate Democrats. I happen to be one of them. There’s also quite a few voters who identify themselves as unaligned moderates, independents or dissatisfied Republicans who don’t like the Tea Party and will consider a candidate who isn’t a Republican.

    But if you pitch the Democrats as the party of the left, you end up alienating those who don’t consider themselves as part of the left.

    If this is how an expert is going to do outreach — by reinforcing the perception that Democrats=left, then Democrats are in trouble. What he said about immigration was simply not true either; at the national level it’s been nothing but pander-pander-pander for years and “comprehensive immigration reform” will still allow mass migration through extended family reunification and automatic birthright citizenship.

    Considering state of the economy and unemployment, wouldn’t this be the perfect time for the Democrats to reclaim their place as the “Party of the People” and of the “Party of the Working Man [Woman]”? That’s where the votes are — tens of millions of them — and look, they’re not even trying for them.

    Too bad the forgotten working class and middle class can’t advertise for a new party to represent them, since neither the Democrats or Republicans seem interested.

    http://www.nytimes.com/2011/07/31/opinion/sunday/tuning-out-the-democrats.html?src=rechp

  58. toomuchchange says:

    Whoops — Forgot to say I was referring to #69 yesterday. Sorry.

  59. JJ - AKA Two Hands says:

    I once saw that place in Washington where they build the dreamliner, I think it is largest building in world.

    I was half kidding, in the tristate area very few people make anything. I have never worked in a factory nor really know anyone other than my father in law who has. Must people, me included want to make money via cap gains, bond interest, sitting in a nice corner office pushing paper etc.

    My wife even commented when I told her I was going to start a website or buy a rental property that why don’t I just push some buttons on the computer and make money investing. She does not want to flip houses, have rental properties, a second home anymore as what is the point. Sadly the whole US economy can’t push bottons on a PC and make money, someone has to produce something.

    A.West says:
    August 1, 2011 at 12:07 pm

    JJ, (32)
    The US was the world’s biggest exporter in 2009. Just behind Germany and China in goods, ahead of everyone in services. Big exporter of airplanes & armaments, heavy equipment, software, medicine. Biggest exporter of films and media.
    The US is a huge manufacturer of the world too, given the large non-export base. Not just of corn chips.
    The main thing is that manufacturing employs fewer people, because manufacturing is becoming increasingly efficient.

  60. Shore Guy says:

    So, which of you is D.B. Cooper?

  61. seif says:

    Two takes worth reading…
    When a true conservative and true liberal are in agreement on what needs to be done but politicians in Washington do the exact opposite = system is broken.

    From David Frum – former Bush special assistant:
    http://www.cnn.com/2011/OPINION/08/01/frum.debt.republicans/index.html?hpt=hp_c1

    From Paul Krugman – Nobel prize winning economist:
    http://www.nytimes.com/2011/08/01/opinion/the-president-surrenders-on-debt-ceiling.html?_r=2

  62. Al Mossberg says:

    Re: Municipal defaults.

    Update: Central Falls RI files for bankruptcy; contracts voided

    “CENTRAL FALLS, R.I. — The state-appointed receiver overseeing cash-strapped Central Falls filed for bankruptcy Monday morning on the city’s behalf in an effort to help it get back on its financial feet.

    Receiver Robert G. Flanders announced the step at City Hall Monday. He was joined by Gov. Lincoln Chafee, who says the move is needed to address Central Fall’s “dire” finances.

    All contracts with municipal workers and retirees, including the fire and police departments, are immediately voided.

    Retirees must begin to pay 20 percent of their medical coverage effective immediately, as Flanders proposed when he met with the city’s retirees July 19.”

  63. BC Bob says:

    “double dip on firm ground IMHO.”

    MIW [51],

    Short term steroid injections and fiscal insanity simply mask the underlying problems, all smoke and mirrors. We are $5T past green shoots, jet the global economy is sputtering as a bull market in new debt was created. I’ll stick to my guns; no double dip, just a single scoop depression. Actually, that may have come from Wantanapolous.

  64. BC Bob says:

    yet.

  65. Anon E. Moose says:

    xmonger [55], or chi, or Lib;

    Could you forward contact info for the uberinspector to: john(unders©ore)doebinski(@t)yahoo(d.t)com? TIA

  66. JJ says:

    As if anyone owns Rhode Island Bonds, little munis are bad investments even more from little states. Usually the piddly little towns pay a high yield and an individual investor might buy a 5k or 10K piece if yields are above 7% tax free.

    Unless NY/NJ GO type bonds where investors would buy a 100K piece or more go under not that big a thing.

  67. Painhrtz - Salmon of Doubt says:

    Al 65 Municipality Meltdown Monday?

  68. Libtard in Union says:

    Moose(69)…Done.

  69. Libtard in Union says:

    Well, judging by the market and my 529 contribution. Lil’ Gator gets to attend a community college, but on the bright side, gas will be cheap.

  70. xmonger says:

    (#69)

    Anon, chicagofinance had the link posted a few days ago.

    http://www.afullhouseinspection.com/

    Click through for the contact details.

  71. Comrade Nom Deplume says:

    [64] seif,

    Starting with the premise that I am, in your view, a knuckle-dragging, drooling, inbred, moron by virtue of my politics, could you enlighten me on how Frum and Krugman agree, other than on the need to not cut spending? I am not seeing a lot of overlap on that Venn diagram. Could you enlighten us dim bulbs with the briliance of your liberally-inspired erudition? And please, use small words.

  72. Comrade Nom Deplume says:

    [63] shore

    I think we two are the only ones on this board that were alive when DB made his escape.

  73. Comrade Nom Deplume says:

    [46] Moose,

    Personally, I hope you are not right about that. Such a move would mean really bad things (unless I were 100% in shiny, then it would merely be sorta bad).

  74. Mike says:

    JJ 70 Any idea what happens to the bond holders if any, are they screwed completely?

  75. 3b says:

    Speaking of muni’s Moody’s has put Bergen Co (currently AAA) on credit watch for potential downgrade.

  76. Painhrtz - Salmon of Doubt says:

    Nom I was kicking granted as a todler when DB made his jump. One of my first memories of air travel was getting off an old 707 via the rear ramp.

  77. The Original NJ Expat says:

    #79 Mike-

    “In an effort to calm investors, Rhode Island lawmakers recently passed a law that gives general obligation bonds priorities over all other payments, including pension payments. The bill requires municipalities to raise property taxes as much as necessary to make their debt payments.”

    Read more: http://www.businessinsider.com/rhode-island-scrambles-to-reassure-investors-as-central-falls-slides-toward-bankruptcy-2011-7#ixzz1Tnu6Ip7x

  78. Painhrtz - Salmon of Doubt says:

    OOPs 727 hit the wrong key

  79. Painhrtz - Salmon of Doubt says:

    and I checked the date on DB cooper, my bad not in diapers yet

  80. Kettle1^2 says:

    Shore, Juice

    More Fukushima fun:

    Geiger counters, used to detect radioactivity, registered more than 10 sieverts an hour, the highest reading the devices are able to record, Junichi Matsumoto, a general manager at the utility, said today.
    http://www.bloomberg.com/news/2011-08-01/tepco-says-highest-radiation-yet-is-detected-at-fukushima-dai-ichi.html

    So how high do you think the radiation really was since the meters pegged out at their max reading?!?!?

    “I suspect the high radiation quantity was an aftermath of venting done,” Matsumoto told reporters in Tokyo. “The plant is not running. I don’t think any gas with high radiation level is flowing in the stack.”

    Gee i wonder who actually believes this statement.

  81. Kettle1^2 says:

    Expat 82

    The bill requires municipalities to raise property taxes as much as necessary to make their debt payments.”

    Easy solution…. if you have a mortgage play the default game. the bank has to eat the property taxes. Oh, and there goes the property value of the areas covered by this. Talk about some upside risk.

  82. Al Mossberg says:

    86.

    Kettle,

    Thats exactly why I wont pay off my mortgage even thought I have the cash to do so.

  83. JJ - AKA Two Hands says:

    I have seen bondholders in the TWA bankruptcy get actual planes and in even Firetruck bond muni issues sieze the firetruck. Sad part is bondholders are the least screwed in a muni bankruptcy. Also are bonds insured, some are collateralized, some bonds have a Letter of credit. Remember only rock solid bonds usually can do any issuance with no collateral or insurance, usually a bond that went bk was shaky to begin with.

    I have a super junky bond for instance on a stand alone basis, that is insured by MBIA, secondary insured by FSA and has a letter of credit, for me not to get paid both insurers, the bank and the muni would have to go bk at same time.

    Bad munis is like loaning to a deadbeat brother in law, get it co-signed, get a lien on what he is buying and hold onto something he loves until he pays you back. Sometimes it is the stuff like wamu, aig and lehman that kill you, was investment grade at time of loan so you did not do any of this.

  84. homeboken says:

    ” The bill requires municipalities to raise property taxes as much as necessary to make their debt payments”

    It’s a great time to buy a home! Don’t worry about that one-way tether that the local goverment just hooked up to your wallet…

  85. JJ - AKA Two Hands says:

    My favorite bad airline ride was a discount fair on Pan Am in the last row in the middle to Texas on a packed plane when smoking was allowed sitting between two 300 pound texans in cowboys hats smoking the entire time.

    Second bad flight was an 11:30pm out of Denver to NY on TWA which was already in BK but went under at 12 midnight, was a DC-10 with like 8 customers, 30 minutes into flight flight attendents stopped serving sat down and started drinking heavily while cockpit door was wide open

    Third bad flight was aeromexico to cancun with 60 guys from brooklyn on a liberty travel trip who smuggle drugs, liquir and pot on plane and a few blown fist fight was taken place, finally two large men in uniform came down aisle and busted up flight, buddy goes thank God, I go look ahead, cockpit door is open, no one in it, that was pilot and co pilot. When mexican police came on plane with machine guns when we landed to arrest people even more fun.

    People express was another fun one, no seats like a bus you line up, $29.99 to florida. Only two planes, plane one broke down so waited 8 hours for plane two, JFK fogged in, then Boston fogged in, we circled till we ran out of fuel and did emergency landing in Boston and bus back to NY.

    I love flying cheap airlines.

  86. xmonger says:

    #86
    “The Default Game”, someone should really come out with a board game along those lines.

  87. NJGator says:

    Stu 34 – Wake me up when it is time to sign the re-fi paperwork.

    As for the Uberinspector, I gave him another referral to someone outside of this board just this morning. Told them to make sure they sprung for the thermal imaging. Totally worth it.

  88. Barbara says:

    what good is the thermal imagining on a house built prior to 1950? Honest question, I don’t get it. Old houses leak, its part of the “charm” (and lifestyle).

  89. NJGator says:

    Barbara – We found leaks that were not apparent to the naked eye. He also gave us a road map for insulating the place. It was pretty cool. And he was still competively priced to other inspectors even factoring in the additional charge.

    The guy spent 4 hours going through the place with us…and explaining the issues he was finding as he went. He was totally professional and amazingly thorough. Our realtor was impressed with him as well…although I think she was also secretly annoyed about how long it took. She didn’t plan on staying that long.

  90. The Original NJ Expat says:

    PPT pressing the “close green” button.

  91. Barbara says:

    NJGator,
    I like the road map idea, however any historic house with multiple wood burning fireplaces are going to be drafty, no matter how much caulk and insulation you apply They were built for structural soundness and beauty, not warmth since fuel was cheap and abundant. The house we are buying has entire rooms that are 80% paned glass. We will reglaze where needed but I don’t expect any miracles. Keeping the JCrew catalogs handy for sweater purchases.

  92. Hobokenite says:

    Anyone know what happens when your landlord is bankrupt? Just got a visit from the Sheriffs office telling me I’m supposed to send my rent payments to them from now on. Apparently a judgment has been obtained against my landlord, who now lives out of state. Trying to figure out what this means from a future living perspective.

  93. Barbara says:

    Hoboken,
    are you in a house or a complex?

  94. NJGator says:

    Barbara – The price on our place was really low and it had previously fallen out of contract. We needed someone to go through it with a fine tooth comb to find the bodies hidden inside the walls.

  95. Barbara says:

    98.
    hehe the house we are in now had a small, loose marble headstone with engraved initials. On one side of the basement is a hump that is about 6 ft long. Neighbors assured us that the stone was for a beloved pet. Hmmmm I still wonder about that hump in the concrete.

  96. Outofstater says:

    I like drafty houses – fresh air is good for you. Buildings that are too well insulated and climate controlled tend to have yucky air quality. You save on energy but you’re breathing the same old stale air.

  97. Juice Box says:

    Hobokenite – Bank the rent and take a nice vacation, and plan on moving to cover all bases. If the Sheriff showed up it means a sale of the property IS pending soon less than 6 months. Do you have a valid lease or is your lease expiring soon? The new owner has to go a special Landlord/Tenant Section of the New Jersey Superior Court and eviction will take months. When the property is sold the new owner may move to evict, however they made the laws tougher now. The new owner can offer you cash to move, cash for keys etc. There are a few shysters that specialize in Hoboken cash for keys, ask around.

  98. NJGator says:

    Stu tells me yesterday that local friend asked him his opinion about purchasing a multi-family near the Bullock School in Montclair. Stu simply asked him if he ever read the police blotter. This ain’t Mayberry, kids.

  99. Hobokenite says:

    Barbara,

    I’m in a condo building.

  100. toomuchchange says:

    75 – Comrade Nom Deplume

    I don’t know how Seif would answer you but here’s my nonsarcastic answer to your question:

    Personally I really liked the From piece and I would agree that there is considerable agreement between him and Krugman. For one thing, the idea that making cuts now is a huge mistake is so big it’s kind of like Items 1-5 out of 10 in my mind, because it covers so much ground.

    Here’s another important point of similarity:

    From’s piece is called “Wake up GOP: Smashing system doesn’t fix it”

    Here’s what he says at the end:

    “7) You can’t save the system by destroying the system.

    In their passion, Republicans convinced themselves that the constitutional republic and the free-enterprise system were threatened as never before. Their response? To threaten to blow up the free-enterprise system and wreck the republic unless they gained their point.

    Republicans have become so gripped by pessimism and panic that they feel they have nothing to lose by rushing into a catastrophe now. But there is a lot to lose, and in these past weeks America nearly lost it. Let’s hope that as America steps back from the brink, Republicans remember that it’s their job to protect the system, not to smash the system in hopes of building something better from the ruins.

    That’s how student radicals think — not conservatives.”

    These are Krugman’s final words:

    “Make no mistake about it, what we’re witnessing here is a catastrophe on multiple levels.

    It is, of course, a political catastrophe for Democrats, who just a few weeks ago seemed to have Republicans on the run over their plan to dismantle Medicare; now Mr. Obama has thrown all that away. And the damage isn’t over: there will be more choke points where Republicans can threaten to create a crisis unless the president surrenders, and they can now act with the confident expectation that he will.

    In the long run, however, Democrats won’t be the only losers. What Republicans have just gotten away with calls our whole system of government into question. After all, how can American democracy work if whichever party is most prepared to be ruthless, to threaten the nation’s economic security, gets to dictate policy? And the answer is, maybe it can’t.”

  101. Hobokenite says:

    Juice Box,

    I have valid leases from several years ago. The last couple years the landlord just sent me an email asking if I wanted to renew, and I replied yes. Still have copies of the email, but I’m not sure if they’re “valid” leases.

  102. JJ - AKA Two Hands says:

    Walk to nearest sewer throw 50K in cash in is a quicker way to lose money.

    NJGator says:
    August 1, 2011 at 4:23 pm

    Stu tells me yesterday that local friend asked him his opinion about purchasing a multi-family near the Bullock School in Montclair. Stu simply asked him if he ever read the police blotter. This ain’t Mayberry, kids.

  103. Juice Box says:

    re: # 105 – You don’t have a valid lease with anyone, you are month to month. Still either way whomever buys the condo still need to go to court to evict, this Condo may go back to the bank at auction, which is a definite possibility. They may want to keep you there as a renter meaning a new lease would be offered, or waste money going to court to evict. The cash for keys option could net you a bit of moving money. I would be prepared for all eventualities, talk to a Lawyer.

  104. Happy Renter says:

    [104] “It is, of course, a political catastrophe for Democrats, who just a few weeks ago seemed to have Republicans on the run over their plan to dismantle Medicare; now Mr. Obama has thrown all that away.”

    Can’t blame it all on Chairman O — the Dems lost their momentum the moment “Weiner” became a household name. Medi-what? What is this “NY 26” you speak of?

  105. make money says:

    JJ[106],

    You have no idea what you’re talking about.
    Stick to the buttons on your keyboard.

  106. Juice Box says:

    re # 105 – Hobokenite – today is also the 1st of the month did you log in online to your bank and cancel the August rent check to the old owner?

  107. 3b says:

    #10 Juice; Are you familiar with Park Ridge at all?

  108. 3b says:

    #02 The walk from the Bay street train. station to the Wellmont theater last week, prove that beyond a doubt.

  109. NJGator says:

    3b (112) – I bet some unicorns and pixie dust could fix that.

  110. Juice Box says:

    3B – Park Ridge brings back memories. I broke the land speed record for the NJ Parkway from exit 171 to exit 172 back when I parked cars for the Giants team meeting held the night before home games at the Woodcliff Lake Marriott. That was the year before Lawrence Taylor was suspended for the first four games of the season for coke abuse. He drove a slant nose Purple 911 at the time, we used to joy ride it up and down the Parkway and race against other cars from the Giants players or a wedding party. One of the other parking attendants would take a Porche or a Vette or when there was a mobsters wedding there might be few Ferraris in the lot. Taylor was so high as a kite back then he did not notice the tank was nearly empty or the nick I put in his BBS rims.

    Park Ridge is a great town nice and quiet and has lots of commercial rateables to help keep the taxes low.

  111. freedy says:

    the only problem in park ridge these days is the mexicans living like animals
    in rented rooms.

  112. Barbara says:

    100.
    Out of stater
    the old lady we are buying has had central air installed a few years back. It was well done, no visible sofits (sp?) and I know its a selling point for the sellers and most buyers but I was very meh. Duct work gets filthy. Luckily its still radiator heat.

  113. Mike says:

    82 Original that must piss some people off

  114. Comrade Nom Deplume says:

    [104] toomuchchange

    I appreciate the lack of sarcasm

    If you are looking on a macro level, perhaps the overarching messages are similar (re: don’t bring down the house), but the details are less so.

    Further, I think we would disagree that there was, in fact, a problem. In fact, I would say that the system worked as designed. Would a different political system, with different rules, have worked differently, and more efficiently? Perhaps, but that isn’t what we have. The tendency for people to blame one party or the other for not compromising their core beliefs in order to get to an agreement overlooks the fact that the system is designed precisely to do this. It was designed to prevent what my professors called “tyranny of the majority.” It’s the primary reason we have the Senate. Now, if the views of those supposedly “holding the country hostage” are sufficiently widespread, then they deserve consideration. If not, they are easily bypassed.

    Further, those who are astute students of politics, and don’t worship at the alters of Saint Maddow or Saint Hannity, would see that the maneuvering and grandstanding and intransigence of the Democrats was just as evident. Further, I don’t think that they gave away the store politically or on the issues. In fact, I would argue that the Dems once again got a pretty good result and was able to let the GOP take credit for the eventual pain.

    But getting back to the deal, in the end, both sides threw their extreme wings under the bus, though not very far under. And that is a problem, why?

  115. chicagofinance says:

    Create your own escrow account and send your rent checks there…show proof to sheriff….eventually you will send the money to someone, if no one asks…then keep it. Talk to the people in City Hall…they were helpful to others I know, although this goes several years back…

    Hobokenite says:
    August 1, 2011 at 3:52 pm
    Anyone know what happens when your landlord is bankrupt? Just got a visit from the Sheriffs office telling me I’m supposed to send my rent payments to them from now on. Apparently a judgment has been obtained against my landlord, who now lives out of state. Trying to figure out what this means from a future living perspective.

  116. chicagofinance says:

    If it is possible, the website sells him short…..

    xmonger says:
    August 1, 2011 at 1:44 pm
    (#69)

    Anon, chicagofinance had the link posted a few days ago.

    http://www.afullhouseinspection.com/

    Click through for the contact details.

  117. Neanderthal Economist says:

    “There is no way the Russians would even consider venturing into Afghanistan again”
    Keep in mind both countries are a much weakened version of what they were in the 80’s when we we’re funding the insurgents. Theyre ripe for the taking with little to no effort if we leave now, especially since we recently discovered trillions of dollars of nat resources lie under the mountains. If they don’t go in themselves they can just have iran do it.

  118. chicagofinance says:

    No. I am a financial planner, but Peter Bennett worked with my wife on the house we are renting in Colts Neck….he is a boy scout. In fact, even boy scouts think he drinks too much milk :)

    xmonger says:
    August 1, 2011 at 11:54 am
    chicago, Thank you for the uberinspector rec. in the other thread. Is that your business? I have someone else lined up but there may still be time to change the gears.

  119. xmonger says:

    #122.

    Thx. Although I must admit, I am a little disappointed. It would have been great for someone who writes so keenly on financial matters to have been a home inspector who decided to rent rather than own.

  120. Shore Guy says:

    Neanderthal,

    ANYONE that goes into Afghanistan is going to regret it. It has always been thus.

    As for Iran in Iraq, the while Shi’a-Sunni thing, not to mention the Kurds and tribal factions would create a mess for them.

  121. Happy Renter says:

    [123] Great article.

    “Fattened by decades of affluence, the American people shrank from the tough choices they needed to make to retain their position as top dog …. Behind these figures lies the disease that has afflicted so many great powers through history: complacency. After decades of having it all, many Americans refuse to believe that they simply must slash their debts …. Instead of working hard and consuming less, they have allowed themselves to grow fat and lazy. They’ve racked up debts as if there were no tomorrow, forgetting that one day those dues must be paid …. At some future moment, the American people will look around and wonder where it all went wrong. But by then, of course, it will be too late.”

    But I have just one question — when do I get my cash-for-crapshacks payment? I am sure those nice folks in China will agree that I am entitled to live the American Dream.

  122. Outofstater says:

    Barbara – You can always have the ductwork cleaned. And I’m envious of radiator heat. I would love to have hot water baseboard heating to replace the godawful forced air we have.

  123. Shore Guy says:

    A follow-up to something posted not that long ago (and it makes one wonder about the quality of the very-long bridge China is building):

    http://www.telegraph.co.uk/news/worldnews/asia/china/5685963/Nine-held-over-Shanghai-building-collapse.html

    Nine held over Shanghai building collapse

    The Chinese authorities are holding nine people in connection with the collapse of a 13-storey block of flats, raising fresh questions about corruption and shoddy practices in China’s construction industry.

    By Peter Foster in Beijing

    5:11PM BST 29 Jun 2009

    The collapse at the Lotus Riverside, a complex of 11 residential buildings in Shanghai, early on Saturday morning killed one construction worker and left hundreds of prospective tenants angrily demanding their money back.

    China’s official news agency, Xinhua, said officials were taking “appropriate control measures” against nine people, including the developer, construction contractor and supervisor of the project after it was reported that the company’s construction license had expired in 2004.

    The collapse shocked many in China where construction failures are relatively common in inland areas, but not expected in showcase cities such as Shanghai which will host the 2010 World Expo.

    On Monday, just two days after the Shanghai collapse, rescuers were searching a river in northeast China after a section of a road bridge gave way, sending seven vehicles into the water below.

    Local sources said the bridge in Tieli, a city in Heilongjiang province, had been built in 1973 but repaired as recently as 1997.

    snip

    Preliminary investigations found that the Shanghai building fell over after workers began excavating an underground garage for the complex, causing the bank of the river next to the complex to collapse.

    Hundreds of prospective tenants besieged government offices demanding refunds for apartments in the same complex which they had already purchased for upwards of £40,000 but were now too frightened to live in.

    snip

  124. Shadow Of John says:

    “I still wonder about that hump in the concrete.”

    That reminds me of one night two buddies and I was out drinking and met these three hot hot hot women in a selfpark ramp.

  125. serenity now says:

    Re #123 Shore Guy – Great Post!

  126. Juice Box says:

    Re:Iraq -still only 500k barrels a day. Allot of bloodshed for a quarter of a supertanker a day or 7 supertankers a month. Afghanistan needs stuff like no tomorrow, a guy I know from the mining business in Colorado told me Back in 2007 that it would take decades to develop the minerals there do to lack of infrastructure like roads and power plants and access to ports. I don’t believe much will change.

  127. Hobokenite says:

    Thanks for the advice. Was planning to go there tomorrow to speak with them (city hall).

    chicagofinance says:
    August 1, 2011 at 6:08 pm

    Create your own escrow account and send your rent checks there…show proof to sheriff….eventually you will send the money to someone, if no one asks…then keep it. Talk to the people in City Hall…they were helpful to others I know, although this goes several years back…

  128. 3b says:

    #121Russia learned their lesson well, no way they want to get back into Afghanistan and be bled to death again like last time they were there. And again they have their own restive at times violent Muslim population. They do not even want Belarus any more. They only thing they are interested in getting back is western Ukraine and the Crimea that goes with it. They just have to bide their time for that.

    Iraq is an artificial mess, Sunni’s Shiites, Kurks, Turkmen. etc. Russia does not need more non-Russian, people. They have their natural gas, they do need the oil Iraq produces. It is time for us to leave both of those failed states.

  129. 3b says:

    #115 freddy: That is everywhere now.

  130. 3b says:

    #114 Juice: I am amazed at the low taxes in Park Ridge vs. the land of Unicorns. 7k to 8k a year vs. 11k to 12k or more for the same house in Brig on Hack. Also amazed that there are only 27 houses for sale in the whole town at the moment. It looks to be the lowest inventory in all of Bergen Co.

  131. 3b says:

    #115 freddy: Very little rental aparments in Park Ridge too, which is another plus. Not sure where you think they would all be residing.

  132. Shore Guy says:

    “121Russia learned their lesson well, no way they want to get back into Afghanistan and be bled to death again like last time they were there”

    Also, insamuch as they no longer own Turkmenistan, Tajikistan, Uzbekistan, or Kazakstan, the logisticsd are very different now than 1980.

  133. Shore Guy says:

    As for the Chinese, once one gets much past Xining, the Hahn population is a small minority. The Chinese government has its hands filled with its native Uigher population and is unlikely to move on Afghanistan. If they move anywhere, I suspect it would be south and southwest. The South China Sea has lots of oil to exploit.

  134. xmonger (90)-

    Hard to devise rules to a board game in which the primary tactic would be cheating.

    “The Default Game”, someone should really come out with a board game along those lines.”

  135. Jesus. Am I really watching Giffords being paraded in front of the cameras like a little retarded kid on Barney?

  136. Shore Guy says:

    Clot,

    Maybe this will help you sell some wine:

    http://www.medicalnewstoday.com/articles/232059.php

    Drinking wine may protect against the harmful effects of sunburn, researchers from the University of Barcelon revelaed in the Journal of Agricultural and Food Chemistry. They explained that grapes and grape derivatives have a compound – a flavonoid – that helps protect human skin from the damaging effects of ultraviolet radiation.

    The authors explained that wine has been shown in previous studies to have some effect in protecting against Alzheimer’s disease, cavities, and prostate cancer. However, no prior study had looked at the effect it may have on human skin.

    snip

  137. Shore Guy says:

    http://online.wsj.com/article/SB10001424053111904800304576476402881011290.html?mod=googlenews_wsj

    Why Canada Is Beating America
    It shrank government, and now unemployment and debt are declining.

    snip

  138. Shore Guy says:

    Well, if Krugman is against the debt deal, it must be good:

    http://www.nytimes.com/2011/08/01/opinion/the-president-surrenders-on-debt-ceiling.html

  139. Shore Guy says:

    Well, duh!

    http://www.latimes.com/news/opinion/commentary/la-oe-gelinas-foreclosure-california-20110731,0,5937152.story

    A free-market fix to the nation’s housing hangover
    The nation’s mortgage hangover is particularly bad in the Golden State. It’s time to let the free market fix the problem.

    By Nicole Gelinas

    July 31, 2011
    There’s a reason California hasn’t seen as much of an economic recovery as some states: It has a serious debt problem.

    The nation’s mortgage hangover is particularly bad in the Golden State. From 2000 to mid-2006, home prices across the nation doubled, outpacing inflation six times. In the Los Angeles area, things were much more extreme: Home prices nearly tripled. Prices in San Diego and San Francisco beat the nation too. And even though home prices have now plummeted, much of the debt that funded the bubble remains and is still hampering the economy.

    The crisis has not affected all states equally. Some parts of the country have a lot of homeowners who owe more than their houses are worth, but they also had far lower home prices at the height of the bubble, so the amount each borrower owes is relatively low. In other places, such as New York, fewer homeowners are “underwater.” But because housing costs are high, these homeowners each owe a lot.

    California ranks in the top five of both categories. Nearly a third of California homeowners with mortgages — 2.1 million families — owe more than their homes are worth, according to CoreLogic. And each of those borrowers is underwater by an average of about $93,000.

    This all adds up to $196 billion in dead-weight debt in California that isn’t backed by property value. If home prices were to fall by an additional 5% — not an unlikely scenario — that figure would rise to $225 billion.

    To put the numbers in perspective: $200 billion is more than twice the $79 billion in general obligation bond debt that Californians owe. State bonds, though, generally pay for something useful, like road repairs. Dead mortgage debt doesn’t pay for anything but a forehead-slapping “what were we thinking?”

    It would cost California’s underwater homeowners more than $12 billion annually over 30 years to pay off this debt, even at today’s super-low interest rates. That’s money that people can’t save for retirement or their kids’ education, or can’t put into businesses to create jobs.

    No magic wand can make all this debt go away, nor should it. Some people have good reasons for paying debt on bubble-era valuations. They like their houses, or they think it would be a moral failing to leave. Maybe they figure house prices will regain bubble-era heights in less time than it would take to repair credit scores after defaulting.

    For people who aren’t sure, though, it’s past time for Washington to stop prolonging the suffering that comes with uncertainty. How? By letting the free market work.

    Washington has attempted to intervene since the start of the crisis, but the interventions have only prolonged the pain. And elected officials have been reluctant to do the one thing that would make a difference: forcing lenders to accept responsibility for their bad lending practices.

    snip

  140. Shore Guy says:

    From the article on Canada:

    Canada’s government, for example, has grown smaller over the last 15 years. Total government spending as a share of the economy peaked at a little over 53% in 1993. Through a combination of spending cuts in the 1990s and spending restraint during the 2000s, it declined to a little under 40% of GDP by 2008. (It’s currently about 44% due to the recession.)

    Reductions in government spending allowed for balanced budgets and the retiring of debt. Federal debt as a share of the Canadian economy was almost halved from nearly 80% to a little over 40% over the same period.

    On the federal level, capital gains taxes in Canada were reduced twice and currently stand at 14.5%. A series of cuts to the corporate income tax beginning in 2001 have seen the rate slashed to 15% from 28%. Many provinces followed suit by reducing both corporate and personal income tax rates.

  141. The Original NJ ExPat says:

    #140, clot-
    We all know sex sells. Retarded sex *really* sells.

    Jesus. Am I really watching Giffords being paraded in front of the cameras like a little retarded kid on Barney?

  142. shore (141)-

    Grain alcohol makes you smart, too.

  143. expat (146)-

    That is a very disturbing post.

    Kinda funny, though…

  144. chicagofinance says:

    Shore: hate to be a bug….but don’t you think Potash prices and oil clearing the $40 for oil sands viability barrier were more important?

    The U.S. has something called fracking, which should not be confused with what the state capitals and D.C. perform on the U.S. public.

    Shore Guy says:
    August 1, 2011 at 10:11 pm
    From the article on Canada:

    Canada’s government, for example, has grown smaller over the last 15 years. Total government spending as a share of the economy peaked at a little over 53% in 1993. Through a combination of spending cuts in the 1990s and spending restraint during the 2000s, it declined to a little under 40% of GDP by 2008. (It’s currently about 44% due to the recession.)

    Reductions in government spending allowed for balanced budgets and the retiring of debt. Federal debt as a share of the Canadian economy was almost halved from nearly 80% to a little over 40% over the same period.

    On the federal level, capital gains taxes in Canada were reduced twice and currently stand at 14.5%. A series of cuts to the corporate income tax beginning in 2001 have seen the rate slashed to 15% from 28%. Many provinces followed suit by reducing both corporate and personal income tax rates.

  145. Good article,I will follow your articles.fighting

  146. wish you can write better and i like it so much

  147. Thank you very much, thanks for your nice share.nice well

  148. Comrade Nom Deplume says:

    That canary is developing a nasty cough, and I am not the only one that hears it . . .

    “Beckett G. Cantley (John Marshall (Atlanta) has published The Cure Causes New Symptoms: Capital Control Effects of Tax Enforcement, Gold Regulation, and Retirement Reform, 7 S.C. J. Int’l L. & Bus. 75 (2010). Here is the abstract:

    For the last five years, the United States government has devoted significant attention and resources to how U.S. taxpayers are investing their money with special focus on offshore investments, gold, and retirement savings. In 2006, Congress held hearings and issued a report on the offshore banking activities of U.S. taxpayers that led U.S. Senator Carl Levin to state that the “universe of offshore tax cheating has become so large that no one, not even the United States government, could go after all of it.” The hearings and report began a flurry of activity by the United States government intended to crack down on the use of offshore bank accounts by U.S. citizens. This included forcing a major Swiss bank to break Swiss law by breaching the confidentiality of its clients by providing information to U.S. authorities. In addition to cracking down on offshore tax cheats, Congress passed the Hiring Incentives to Restore Employment (HIRE) Act, which created a tougher regulatory environment for foreign financial institutions with bank or investment accounts for U.S. taxpayers. The HIRE Act regime may result in foreign banking institutions collecting taxes directly from their U.S. clients and remitting them to the U.S. Treasury. Increased attention, regulation, and high profile criminal prosecution activity provides a huge deterrent to U.S. taxpayers with investments outside the United States to maintain their foreign investments offshore. Increased pressure and regulation is also making offshore financial institutions question their business relationships with U.S. taxpayers and weigh the risk and rewards of continuing these relationships.

    In addition to these offshore measures, in 2008, Congress broadened its focus on U.S. investors to include their domestic decisions as well. Congress enacted legislation which, in 2012, will require all businesses to issue an IRS Form 1099 to any individual or corporation from which they buy goods or services in excess of $600 in a tax year. This change implicates gold companies, which are thus required to report extensive information to the IRS for each sale of gold in excess of 0.43 ounces based on prices as of Decembe 1, 2010. In addition to the reporting requirement, Congress also recently passed legislation requiring gold companies to report if certain countries are the source of the gold they sell to U.S. citizens, whether onshore or offshore. Futher, the Dodd-Frank Act restricts U.S. gold dealers from contracting with clikely result in an increased cost of investing in gold, and thus U.tain countries that supply gold to the market. These regulatory regimes will likely reduce the number of gold dealers and significantly increase the compliance costs for remaining gold dealers. These increased compliance costs will be passed on to gold investors and generally make it more expensive for U.S. taxpayers to invest in gold. Consequently, the net result is that increased gold regulation will S. investors are more likely to avoid gold and seek alternative investments.

    In 2008, Congress also began examining retirement investment vehicles. One proposal under consideration, the Guaranteed Retirement Account (“GRA”), calls for a “$600 refundable tax credit, which takes the place of tax breaks for 401(k)s and similar individual accounts” as a way of paying for a partially government-funded, broad-based, government-managed retirement account system. The Social Security Administration would administer the GRAs in addition to existing Social Security benefits. Without a tax incentive, 401(k) plans would likely cease to exist, making Social Security and GRAs the principal retirement investment vehicles for many Americans. However, Congressional borrowing from the Social Security Trust Fund for non-Social Security spending has resulted in a Treasury debt to the Trust Fund in excess of $2.6 billion. Implementation of GRAs would provide the federal government with an entirely new source of capital to raid to meet current spending needs. In essence, taxpayers would be nudged out of Section 401(k) plans and into a government-held and government-managed retirement system that the Treasury could borrow against.

    While each of the policies discussed above individually has a direct, laudable public protection purpose, the cumulative effect of these activities makes it more likely that U.S. investors are discouraged from investing in non-preferred locations, like offshore; asset classes, like gold; and vehicles, like Section 401(k) plans. Instead, these policies direct U.S. investors to preferred domestic locations; preferred asset classes, like U.S. Treasury bonds; and preferred investment vehicles, like GRAs. These measures comprise a network of capital controls that use regulation, incentives, taxes, and the threat of civil and/or criminal penalties to incentivize taxpayers into directing their investments where the U.S. government has more disclosure, control, and access to the capital. It is impossible to know whether the current U.S. budget and debt crises are driving these actions. However, it is possible that these policies are driven by the government’s need of access to capital, particularly in light of the government’s willingness to step on the toes of sovereign governments and historic allies, such as Switzerland.

    Regardless of whether this capital control effect is intended, these policies make investing offshore more burdensome, make investing in gold more expensive and propose a radical shift in capital flow from private retirement accounts into a government-controlled retirement system at a time when the U.S. government is running a huge deficit. This paper discusses the concepts of international and domestic capital control, the current actions of the government referenced above, and the capital control effect of these government actions.”

  149. Shore Guy says:

    Chifi,

    It couldn’t hurt. The same is true of reducing the drag on the economy excessive government brings.

  150. Shore Guy says:

    Nom,

    What do you know about “Patriot Act” restrictions on the number of times per month depositors can access money they have in savings accounts?

  151. Comrade Nom Deplume says:

    And if our citizens are discouraged from buying it, well, there are others . . .

    “South Korea’s central bank bought gold for the first time in more than a decade as global growth and debt uncertainties encourage monetary authorities around the world to diversify foreign reserves.

    A brittle global economic recovery and precarious debt conditions in the United States and Europe have boosted the safe-haven appeal of gold, lifting bullion to a series of record highs in July, as investors and central banks chased prices higher.

    The Bank of Korea said in a statement on Tuesday it bought 25 metric tons of gold over the past two months, raising its gold holding to 39.4 metric tons, or 0.4 percent of its total reserves.

    The increased holding remains far smaller than that of other Asian central banks, with China, which ranks sixth globally, the biggest among Asian banks with 1,054.1 metric tons, equivalent to 1.6 percent of its entire reserves, by the end of May, the World Gold Council says.
    Japan, No. 9 globally, has 765.2 metric tons of gold, or 3.3 percent of its total reserves, and 11th-ranked India has 557.7 metric tons, or 8.7 percent.

    “South Korea’s central bank seems a little late to the party, but gold investors should continue to expect price support as central bankers around the world are underinvested in the yellow stuff,” said Sean McGillivray, head of asset allocation at Great Pacific Wealth Management.

    “Investors and central bankers are looking to protect purchasing power, (by) diversifying into the currency of last resort, gold.”

    With prices hovering near historic highs, the central bank of Asia’s fourth-largest economy said gold looked less lucrative as an investment, but it was the right time to buy the precious metal because its foreign reserves had risen above $300 billion.

    The news barely moved gold prices, with spot [XAU = Loading… () ] up just 0.1 percent at $1,620.24 an ounce by 0253 GMT, although analysts said it was supportive of prices. Gold hit a record high of $1,632.30 on Friday.

    “Any news about central banks buying gold reassures consumers and other major players who are already looking at gold as an investment,” said Jeffrey Pritchard, analyst at California-based commodities futures and options brokerage Altavest Worldwide Trading.

    Conditions Ripe for Gold Purchase

    The Bank of Korea said its latest gold purchase was valued at $1.24 billion. It did not say whether it had bought gold bullion or funds.

    The central bank also would not say whether it plans to buy more gold. But chances are slim for the bank to sharply boost gold holdings in the near future because it is keen to make profits from reserves management while gold hardly generates yields unless it is sold at a profit, an act that could cause tremors in the market or send unwanted signals to investors.

    The purchase comes weeks before the central bank is due to face an annual parliamentary audit, expected in September, and after several South Korean lawmakers from both the ruling and opposition parties have repeatedly called for it to boost holdings of gold to diversify reserves.

    At 25 metric tons of gold, equivalent to 803,769 ounces, the average price paid comes to around $1,543 an ounce, based on Reuters calculations.

    A BoK official said it was the bank’s first gold purchase since at least the 1997-1998 Asian financial crisis when patriotic Koreans collected the precious metal as part of a campaign to boost the country’s foreign reserves, when it was on the verge of a sovereign default.

    “The country had too small an amount of foreign reserves to diversify into gold before 2004 and was not able to buy gold between 2005 and 2007 due to concerns about the central bank’s annual losses,” the Bank of Korea said.

    “Now that our total reserves topped $300 billion and foreign exchange markets stabilized, we judged that conditions were ripe for us to increase gold holding.”

    The increased gold holding would put South Korea in 45th position in the World Gold Council’s list of central banks holding gold, up from 56th previously, the Bank of Korea said.

    The United States has the biggest gold holding in its reserves, at 8,133.5 metric tons, or 74.7 percent of total reserves, according to the WGC’s July report. Germany is a distant second with 3,401 metric tons, or 71.7 percent of its total reserves.

    The Bank of Korea declined to disclose the purchase price but said it had entrusted all of its gold holding to the Bank of England for possible use in gold lending and other related transactions in future.

    Including the gold, South Korea’s foreign reserves rose by $6.55 billion in July to $311.03 billion, equivalent to about 30 percent of the country’s annual gross domestic product of just more than $1 trillion in 2010.

    South Korea’s foreign reserves ranked seventh in the world as of the end of June, the central bank said.”

  152. Comrade Nom Deplume says:

    [155] shore,

    Offhand, I am not aware of any set limit or restriction on normal domestic deposit account activity. There are the CTR and SAR rules, which may come into play, but on the face if it, I cannot think of any reporting requirements, let alone restrictions.

  153. Shore Guy says:

    http://online.wsj.com/article/SB10001424053111903999904576466411161774824.html?mod=googlenews_wsj

    Barack Obama the Pessimist
    His lack of faith in American exceptionalism has dashed any hope of a ‘transformational’ presidency.

    By FOUAD AJAMI
    In one of the illuminating, unscripted moments of the 2008 presidential campaign, Barack Obama said—much to the dismay of his core constituency—that the Reagan presidency had been “transformational” in a way that Bill Clinton’s hadn’t. Needless to say, Mr. Obama aspired to a transformational presidency of his own.

    He had risen against the background of a deep economic recession, amid unpopular wars in Afghanistan and Iraq; he could be forgiven the conviction that the country was ready for an economic and political overhaul. He gave it a mighty try. But the transformational dream was not to be. The country had limits. Mr. Obama couldn’t convince enough Americans that the twin pillars of his political program—redistribution at home, retrenchment abroad—are worthy of this country’s ambitions and vocation.

    Temperament mattered. Ronald Reagan was the quintessential optimist, his faith in America boundless. He had been given his mandate amid economic distress—the great inflation of the 1970s, high unemployment and taxation—and a collapse of American authority abroad. Through two terms and a time of great challenges, he had pulled off one of the great deeds of political-economic restoration. He made tax cuts and economic growth the cornerstone of that recovery. Economic freedom at home had a corollary in foreign affairs—the pursuit of liberty, a course that secured a victorious end to the Cold War. The “captive nations” were never in doubt, American power was on the side of liberty.

    By that Reagan standard, Mr. Obama has been a singular failure. The crippling truth of the Obama presidency is the pessimism of the man, the low expectations he has for this republic. He had not come forth to awaken this country to its stirring first principles, but to manage its decline at home and abroad. So odd an outcome, a man with an inspiring biography who provides no inspiration, a personal story of “The Audacity of Hope” yielding a leader who deep down believes that America’s best days are behind it.

    snip

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