From Bloomberg:
Foreclosure Deal Deadline Arrives as States Must Choose Whether to Sign On
States that balked at bank liability releases in a proposed $25 billion nationwide settlement over foreclosure practices must decide by today whether its mortgage relief and reforms are worth the legal claims they’ll give up.
While some states have already announced their intention to sign the deal, others including California Attorney General Kamala Harris have yet to publicly commit in part due to terms that protect the banks from future litigation. Without Harris, the deal’s value will drop by several billion dollars, according to a person familiar with the matter.
The agreement is “beyond fixing,” said George Goehl, executive director of National People’s Action, a network of community organizations which advocates for fair lending and affordable housing.
“People are very disappointed in what this is going to be both in terms of dollars and release of claims,” Goehl said in a telephone interview. “We’re giving away the store.”
Most states don’t have the resources to go it alone and fight the banks in court, said James Tierney, director of Columbia Law School’s National State Attorneys General Program. States such as California that may reject the agreement must decide whether the time and money needed to fight for a better deal is worth it, given that the settlement provides immediate relief for homeowners, he said.
“How long does it take and how much better?” Tierney said of a state pursuing its own deal. “Is it so much better that it warrants the cost and delay?”
…
Today’s deadline, extended by the parties from Feb. 3, comes almost 16 months after all 50 states announced they were investigating bank foreclosure practices following disclosures that faulty documents were being used to seize homes.
From the WSJ:
Foreclosure Deal Gets Closer
They’ve been here before, but this time, they say it is for real. After a yearlong haul that has featured numerous false starts, federal and state officials aim to wrap up this week a multibillion-dollar agreement with five major banks to settle probes of alleged foreclosure abuses.
State attorneys general must indicate by Monday whether they are signing on to the deal, said one person familiar with the negotiations, a key test of whether banks and federal officials will be able to wrap up a deal. The Monday cutoff marks a step back from the previous deadline of last Friday—a delay that is emblematic of what has been a vexing process.
Government officials have been aiming for a deal valued at $25 billion in loan write-downs, refinancings and other homeowner assistance, as well as cash penalties, with Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co.
Ally said it continues to “participate in discussions in hopes of reaching a reasonable solution.” Representatives for the other banks declined to comment.
A settlement with additional banks could increase the deal’s value by $4 billion, said another person familiar with the negotiations.
Good Morning New Jersey
From the NYT:
Deal Is Closer for a U.S. Plan on Mortgage Relief
With a deadline looming on Monday for state officials to sign onto a landmark multibillion-dollar settlement to address foreclosure abuses, the Obama administration is close to winning support from a crucial state that would significantly expand the breadth of the deal.
The biggest remaining holdout, California, has returned to the negotiating table after a four-month absence, a change of heart that could increase the pot for mortgage relief nationwide to $25 billion from $19 billion.
Another important potential backer, Attorney General Eric T. Schneiderman of New York, has also signaled that he sees progress on provisions that prevented him from supporting it in the past.
The potential support from California and New York comes in exchange for tightening provisions of the settlement to preserve the right to investigate past misdeeds by banks, and stepping up oversight to ensure that the financial institutions live up to the deal and distribute the money to the hardest-hit homeowners.
The settlement would require banks to provide billions of dollars in aid to homeowners who have lost their homes to foreclosure or who are still at risk, after years of failed attempts by the White House and other government officials to alter the behavior of the biggest banks.
From the APP:
Income tax isn’t the problem
If the “New Jersey Comeback” is indeed under way, as Gov. Chris Christie likes to say, and the state can now afford to cut some taxes, we offer one emphatic recommendation: Start with relieving some of the property tax burden, not the income tax.
Christie announced during his State of the State address that he wants to slash income taxes by 10 percent across the board, a plan that would disproportionately benefit New Jersey’s wealthiest residents.
Meanwhile, he is busy declaring his administration’s efforts to bring property taxes under some control a success, noting a declining overall increase of 2.4 percent.
That figure, however, provides a woefully incomplete picture, totally ignoring the impact of direct cuts to property tax relief programs.
After incorporating the loss of rebates and credits, the actual overall increase in the property-tax burden under Christie is 20 percent, according to a report published last week by NJ Spotlight.
That doesn’t sound like much of a comeback.
Christie, of course, is hardly to blame for New Jersey’s crippling property-tax problems. He could not have been expected to wave a magic wand and start easing that burden right away. Slowing the rate of increase is an important — and more realistic — first step. And the governor’s policies have helped to rein in government spending to some degree.
But touting that 2.4 percent figure is deliberately misleading, lacking sufficient context. What the governor needs to do is also acknowledge the effect of the rebate losses.
It can be argued that Christie is laying the foundation for a healthier tax structure moving forward. In time, perhaps, New Jerseyans will more fully appreciate that slower tax growth. But if Christie thinks we’re ready to accommodate an income-tax cut, why not instead target those property taxes?
Way to go Giants! … and welcome to the spring market!
Not a single sore loser Pats fan out last night in Indy. Great game…..and I have a Giant hangover….
“and I have a Giant hangover….” Ditto……….. Great game!
From ClearCapital:
Clear Capital® Reports U.S. Home Values Softening: Midwest Hit Hardest (PDF)
“working from home this morning”. God Bless America
http://www.youtube.com/watch?v=gdXaYKuNE50
Who will we have to thank if there is a sustained rally in the stock market and an economic recovery?
-The Fed?
-Obama?
-Tea Partiers?
-Romney or Gingrich?
Nope….The Giants!
http://blogs.wsj.com/marketbeat/2012/01/24/the-super-bowl-indicator-or-we-are-all-giants-fans-now/
The Philadelphia, PA – Camden, NJ – Wilmington, DE market clocked in as the 5th worst performing market in January with a decline of 8.7% year over year.
Can’t spell Elite without E-L-I!
Thought the game was ‘meh’, not one for the ages. Now the hard part is driving to work with all those hungover and overstuffed fans.
Stay Safe peeps!
that was a really really boring game. Wow will the Mara family win its fourth superbowl, will Brady win his millionith superbowl, will Belechek further cement his Hall of fame career, boring. I wish a Tebow type player was in it, there was no underdog.
I do however wish I was there in person like Juice Box. Watching on TV is boring. Like looking through the window of a night club you cant get into to.
Now back to real estate. Went to see BOA REO with wife. Little bungalow type house but walking distance from train, bars, bank restraurants and a short bike ride from beach. House needed good cleaning and around 4K worth of work to rent. Just handyman type repairs, windows, roof, siding pretty good and kitcen bath from around 1991 and slightly dated but in good shape. Now for math.
Home Price 200K, Taxes $5,5000 a year.
Could rent for summer season for 15K.
Could rent year round for $1,800.
House was small 1,100 square feet and had a 30×100 plot. But in a good rental area. Wife was concerned can’t make any house bigger, but I thought a small solid house is a good selling point in a hot rental areas. I could buy lets say neighborhood not near beach and train and get a lot larger house house for price. But my rent would be same and my maint cost would great rise and be more work for me. I am not living there so why do I care if it is small.
Does this math work. My wife seemed to think big deal, I thought cash flow was good. Maybe I am wrong. When you buy a rental how much positive cash flow after expenses should one expect?
$1,800 a month rent for year round.
To call the game boring or so-so is ridiculous. It was a chess match… a heavyweight 15 rounder. It was a coaching peformance by two masters of the game. There were so many subtleties that it was mind boggling.
Jets still s*ck JJ!!!
JJ: Are you calculating summer rent and year round as mutually exclusive? Creative lease can get you both, perhaps little less for the year round – summer.
Jill: (Response to yesterdays post) Sorry Westwood would not do it for me. We would not leave River Edge to go to Westwood. We will continue looking in Hillsdale.
Yes, trouble is a summer rental has to be furnished a year round renal unfurnished. I could do both but off season subletters tend to be sketchy. I was thinking summer for one year only as closing would be April and a little place could be furnished easy. Get 15K rent up front on month after closing would be good. I have extra furniture, I would just need to get beds.
EJG says:
February 6, 2012 at 8:32 am
JJ: Are you calculating summer rent and year round as mutually exclusive? Creative lease can get you both, perhaps little less for the year round – summer.
I know still boring game. Last years game was better and when Giants won a few years ago better. Wife is a big Giants fan and fell asleep during game and kids who only watched half time show and were disappointed as C Low Green and the guys who sing Party Rock were cut short by some old lady singing 80s tunes.
I hate rooting for teams that are good. I like the underdog. When the Islanders won their 4th Stanley Cup many years ago there were thousands of empty seats. When Yankees back in the day won multiple world series no one cared. 1969 Mets, Knicks and Rangers when they won were exciting. They were planning for the parade last week. I am sure the NFL has secretly punished Belachek as a result of spygate and told him to let the Giants win these last two games anyhow.
Proud to be an American where at least I know I’m free HEHEHE says:
February 6, 2012 at 8:31 am
Jets still s*ck JJ!!!
Where is Nom, Pats fan I gather.
Today is the official start of the Spring selling season as grim noted;lets see hat happens inventory wise.
Nom avoiding the Giants noise sound bytes
Fab: I was working at the office through most of the game, but for you to write “meh” about this game is about as anti-American as you can get. You have to be absolutely kidding. I may level charges about your biases, but to offer up this level of prima facie evidence that you are a European socialist that reflexively spits on this country and its greatness is laughable. Ad hominem? I stand ready to be indicted……
Fabius Maximus says:
February 6, 2012 at 7:56 am
Thought the game was ‘meh’, not one for the ages. Now the hard part is driving to work with all those hungover and overstuffed fans.
I actually find it offensive that nom is not here. He certainly layers on the crap about the Pats way too much in an unsolicited manner. He should stand ready to receive bile.
http://www.metalsnews.com/Metals+News/BusinessInsider/The+Business+Insider+The+Money+Game/HEADLINE521141/Raymond+James+Pulls+The+Plug+On+The+Great+Hope+Trade+Of+2012.htm
I guess we may not have a housing rebound.
[13] Fab — Thought the game was ‘meh’, not one for the ages.
Agreed. Neither team decidedly outperformed, but both adequately performed. Good game plans on both sides but execution was spotty. NE receivers turned into stone hands, Giants could stop the Pats cold one drive , other drives Brady & co just marched down the field. I guess the only thing the Giants flawlessly executed, and it could have been a game turner: recovering their own fumbles. I’m a Giants fan, but I still thought the Pats would win, especially when Brady converted 4th and 16.
3b,
Giving up on it already. From what I have seen “sellers” have not learned a thing. Many homes prices 10% more than 2008. Others still wanting 50% more than 2001 purchase price. I guess a Giants win will enthuse everyone to frivously pay for houses this spring. That is the hope. Wake me up in the fall when both Giants and house selling seasons starters.
Starts that is. Damn droid.
Living in Boston as a NY fan is exciting when the Boston team loses away to NY. Well exciting in a different kind of way. People turn into zombies and just mill about Kenmore Square and Cleveland Circle in slow motion. Bartenders continue to serve drinks, but they do it in absolute silence. I saw this first hand only once before, when Grady Little left Pedro in too long and ultimately Wakefield gave up the walk-off HR to Boone. I actually ran a half mile down the street to Cleveland Circle to see it first hand that time. Last night I just watched stringer reporters and helicopter at Kenmore and Sky-cam on the local sports station. Looked exactly the same. Lots of cops earned a lot of real easy overtime, but they got sent home real quick, so I guess they didn’t earn as much as they hoped.
Housing is doing fine. It is price. The REO I looked at got three offers in one weekend. The nearest house for sale which is a great comparable, same plot, indentical house, identical condition is 309K, once bank moved price to 219K they got the offers. Both are cash. If I bid I need to go in cash or go slightly highe.r
[32] But if you’re a rich Boston College kid with a car with NY plates parked on the street, you’ll likely be calling your insurance company today.
[33] JJ, REO. In the old days you used to ask yourself the question “Can I rent it monthly for 1% of the purchase price?” and investigate further if the answer was yes. Now with property taxes as high as they are it doesn’t seem like anything approaches that level of cash flow anymore.
#30 bystander: I am seeing better asking prices than I have seen in years; whether my bids will be accepted or not is another story. Took us a long time to finally decide where we wanted to move to, so for us that is a major accomplishment. I fully expect the whole process to take 6 months or more, but that is OK.
Retired friends of my in-laws just sold their Glen Rock house for $799K to a neighbor, no realtor. Not a really big house, I think (I’ve never seen it), but apparently their property is big enough to expand the house but the buyer didn’t have enough property to expand his house down the block. A lot of Glen Rock sales in the choice end of town have sold that way for decades. You might call it Brig Jr.
#37 GR is a nice town, high taxes, but over the years taxes in other towns have gone up so much that they do not look as bad as they did. Lots of old charming homes in the town. Also a lot of busy streets too. It does have two train lines.
[37] Glen Rock FSBO. I just checked the tax records. House was built in 1936, My in-laws’ friends bought it in 1975 for $67,500. Taxes are $16,500 now. What color are 1975 appliances, yellow?
#39What color are 1975 appliances, yellow?
I believe the color is called harvest gold.
[38] 3b – Glen Rock taxes – My in-laws sold their house in 1992 for to get out from under their $13.5K tax bill *then*. Same owners still own it since then. Their tax bill is now $33.5K, the highest by far in their neighborhood. This is because they have a gigantic (for Glen Rock) yard that is actually a separate build lot, the only available build lot in their section of town for decades now. The taxes break down like this:
House lot 105 x 187, Taxes $22.5K
Yard lot 100 x 177, Taxes $11K
The yard lot has no improvements, no outbuildings, just a lawn and a couple trees.
A “meh” game? Really? I liked it very much. The game had good defensive play, but enough offense to keep it interesting. There was the non-tackle safety (for grounding while inside the pocket inthe end zone) and the Giants’ final touchdown, which they attempted, too latre, not to score; these things hardly ever occur and we had both in this game. In addition, there was the uncertainty caused by multiple players getting knocked out of the game with injuries. And, to top it off, the game was not settled until the last play — as New England could have executed the Hail Mary, much like the Giants did in the NFC Championship game.
This might not have been an up and down the field scoring fest where one ends up with a basketball-like score but, this was a solid game that was well played and very well coached. I rooted for the Giants but, either team could have won. As a game, it sure beat the many snooze fests that have occurred in the past.
Brady and Manning played Hall of Fame games. I’m not sure if you paid attention. Brady’s elusiveness is something only Rothleisberger can top, and Manning’s dart throwing was a sick display of gunslinging…….Brady almost completed a Hail Mary to Gronkowski……the all-Woodhead drive to make it 10-9 at the half? That is the best pass rush in the league that he stood in against.
The Original NJ Expat says:
February 6, 2012 at 10:31 am
[13] Fab — Thought the game was ‘meh’, not one for the ages.
Agreed. Neither team decidedly outperformed, but both adequately performed. Good game plans on both sides but execution was spotty.
This news just in: Spring Market DOA.
News flash: all Spring Markets until 2037 DOA.
Throw some lime on the bloating, putrefying corpse, and bury it.
ManU-Chelsea was a better game.
The Spring Selling Season runs from the Super Bowl until when? Is it the beginning of spring training? Valentines day? Noon on Friday?
3b,
I should qualify that I am looking in Fairfield county CT. Perhaps NJ prices are more realistic this spring. Not here really..unless you want a 2hr commute each way.
#41 The Orig: Can they sell the other lot?? 33k a year!!!! Insane!!!
Shore (47)-
The correct answer is, of course, the extinction of the human race.
No extinction until Magpies make Champions League.
Assuming leveraging the full purchase amount and property is rented the whole time you own it.You have an income stream of $300 a month plus possible equity on property.It is like an insurance agent that signed you in ,and gets a % of your monthly premium while policy is active.
JJ says:
February 6, 2012 at 8:22 am
Now back to real estate. Went to see BOA REO with wife. Little bungalow type house but walking distance from train, bars, bank restraurants and a short bike ride from beach. House needed good cleaning and around 4K worth of work to rent. Just handyman type repairs, windows, roof, siding pretty good and kitcen bath from around 1991 and slightly dated but in good shape. Now for math.
Home Price 200K, Taxes $5,5000 a year.
Could rent for summer season for 15K.
Could rent year round for $1,800.
#48 I have family in Ridgefield (CT), they told me at Christmas time, that there was lots of houses for sale in the town, and prices were down substanially. Nice low taxes there too. But it is a tough comute to NYC.
Half Time in America
http://www.marketwatch.com/video/asset/chrysler-halftime-in-america-ad-2012-02-05/E96B079E-FA8B-4EAB-8EAE-50259764CC05#!E96B079E-FA8B-4EAB-8EAE-50259764CC05
The game was a masterpiece. I said it earlier. Two of the best coaches in the league charting startegy and then making adjustments that none of us can begin to comprehend. Top it off with two QBs that have 40 seconds between each snap to make decisions that would boggle your mind. This was a chess match… a 15 round imposition fought to the final play of the game.
Green shoots:
http://mobile.bloomberg.com/news/2012-02-06/time-is-running-out-for-greece-to-accept-bailout-conditions-merkel-says.html
Lots of sad looking Pats fans at O’hare right now. I may have to strike up a Giants cheer for them.
Giants could stop the Pats cold one drive
I don’t think the Pats scored in the last 25 minutes of the game. Their last four possessions were punt-interception-punt-game over.
It wasn’t a pretty game, but very entertaining.
I agree. But to be honest until I actually looked at a rental that fit my needs, distress sale, pretty good shape, rentable walking distance train, schools, bars and stores and within 1/2 mile of beach the whole concept of being a landlord was not something my wife every talked about. When I considered bidding and bought her to house she made it clear she wants no part of any investment property unless it is far below market and an easy flip. I told her I can clear $600 a month after mortgage, taxes and insurance and I got what is $600 bucks going to do for me. I was like tennant pays if off and in 30 years we own home. She was like in 30 years I will be an old lady what do I need with money 30 years from now.
I then tried to explain the bond and stock market are near end of three year bull market and housing is near bottom. I can’t continue to make same returns I have on bonds. She kinda got that.
But bottom line most buy housewives with several children want investments where no work is required of them or their husbands. I think we have got lazy. People rather buy a REIT, home builder stock or MBS if they think housing is going up rather than buy actual property. They just want to click a button. But it is far less profitable that way.
I will put a low ball in and walk away. But tell you what people are buying with cash. There is a lot of cash out there. Mortgage rates may be low but investors dont want them. Raters are still higher on rental properties and cash and bonds are paying near zero. People dont want to borrow 200K at 4% if it means living 200K in bank at .001%
yo says:
February 6, 2012 at 11:53 am
Assuming leveraging the full purchase amount and property is rented the whole time you own it.You have an income stream of $300 a month plus possible equity on property.It is like an insurance agent that signed you in ,and gets a % of your monthly premium while policy is active.
JJ says:
February 6, 2012 at 8:22 am
Now back to real estate. Went to see BOA REO with wife. Little bungalow type house but walking distance from train, bars, bank restraurants and a short bike ride from beach. House needed good cleaning and around 4K worth of work to rent. Just handyman type repairs, windows, roof, siding pretty good and kitcen bath from around 1991 and slightly dated but in good shape. Now for math.
Home Price 200K, Taxes $5,5000 a year.
Could rent for summer season for 15K.
Could rent year round for $1,800.
what was entertaining. The Pats for punishment for spygate were told to give up two Superbowls. Why do you think Eli was not suprised. The game was fixed.
schabadoo says:
February 6, 2012 at 12:35 pm
Giants could stop the Pats cold one drive
I don’t think the Pats scored in the last 25 minutes of the game. Their last four possessions were punt-interception-punt-game over.
It wasn’t a pretty game, but very entertaining.
59
I guess we know who wears the pants in that relationship.
#56 They should just default and leave the Euro now. That is what they are going to do anyhow, even with the additional bail out.
jj (59)-
Best thing to do when wifey asks questions is give her another donkey punch and get on with it.
joyce (61)-
The real question is who gets to wear the leather chaps.
3b (62)-
The irony is, if Greece defaulted & went back to the drachma, investments would start pouring into that country.
The Pats for punishment for spygate were told to give up two Superbowls.
Any chance of another one for this gift?
Why do you think Eli was not suprised.
He doesn’t seem surprised by anything. That Gomer Pyle ‘Aww shucks’ persona doesn’t seem like an act.
Sovereign default is no big deal. Look how many times it’s happened in the last 100 years…and in many of the defaults (e.g., Russia), the defaulter is better off for having done it.
Sovereign Jingle Mail?
I agree, in the end she said I could do it. But if it goes south it is all on me. Unless bank gives it to me I will hold off for an REO/Short Sale on a trade up house where we are both on the hook.
Wow munis are crazy overpriced now. I am issued a hold/sell recommendation. Treasuries and investment grade bonds sell recommendation and Junk Bonds hold/sell recommendation. Hold/Sell is don’t buy any more. Also review all bonds held over one year and sell those with a lot of cap appreciation while we are in 15% tax rate and wait for new re-entry point.
people are so risk adverse they are taking on tons of risk. sounds like an Yogi-ism
There Went Meat says:
February 6, 2012 at 12:55 pm
jj (59)-
Best thing to do when wifey asks questions is give her another donkey punch and get on with it.
After her prayers for a Patriots’ championship went unanswered, Bunchen lashed out at the team’s receiving corps for failing to haul in her husband’s passes. While waiting for an elevator at Lucas Oil Stadium, Bundchen was being heckled by Giants fans when she spoke to people in her group.
“My husband can not f—— throw the ball and catch the ball at the same time. I can’t believe they dropped the ball so many times,” Bundchen said in a video captured by theinsider.com, a gossip website.
Wide receiver Deion Branch and tight end Aaron Hernandez dropped passes on New England’s final drive.
After the game, Welker said he let the team down when he failed to come up with a Brady pass he says he catches “1,000 times.”
“Wes is a phenomenal player and a teammate,” Brady said. “I love that guy.”
If only his supermodel wife felt the same way.
[49] 3b Can they sell the other lot?? 33k a year!!!! Insane!!!
Absolutely they can, it’s zoned for another single family. You might even make a case that the town is trying to extort them into selling it. New construction in that neighborhood would turn that lot from $11K annual tax revenue to $25-$30K easy. I think it’s the price you pay to be the current Wall Street BSD in that two train town. My in-laws bought it as their trade-up from a couple blocks away in the mid-70’s for like $116K. The current owner also moved from a couple blocks away to buy it as his trade-up in ’92. I wouldn’t be surprised if the next owner also comes from the neighborhood.
#65 Meat: And they will make a mess of that too!!! but I just do not understand why Merkel etc, is going on with this charade, default, pull the band aid off and be done with it.
#71 I would sell it!!!
Because an “uncontrolled default” would be Lehman. You need to get the bond swap to work or at least get it into a controlled default. Unexpected last minute out of blue default is bad.
3B says:
February 6, 2012 at 1:26 pm
#65 Meat: And they will make a mess of that too!!! but I just do not understand why Merkel etc, is going on with this charade, default, pull the band aid off and be done with it.
“That is what they are going to do anyhow, even with the additional bail out.”
If that is where they are going, then what is to stop them from taking the money and then defaulting? They will need some capital to begin reprinting drachmas — it might as well be Franco-German money.
JJ [74];
Unexpected last minute out of blue default…
And exactly who on the planet that gives a d@mn would a Greek soverign default to be unexpected*, last minute, or out of the blue?
*Gretchen and the mainstream media, naturally… “Shocking news today as the Greek government >unexpectedly< defaults on its bonds…"
“You might even make a case that the town is trying to extort them into selling it. ”
Well, then they can always donate it to a church, under the condition that the church cannot do anything to the land for as long as the current owners own the house next door, thus preserving the open space next to their house while converting the land to tax-exempt status. Take that, you taxing b@$tards!
Moose,
I hear that it is, unexpectdly, going to get dark a few hours from now, then the sun will unexpectedly rise again in the morning. Unexpectedly, this will occur for the rest of the month.
100% of the bond holders of Greek Bonds. They have been told either tender bonds at a big discount of have some GM type govt deal put on them in an in and out BK which gives them time to adjust portfolio. Meaning, tender or in 14 days we are doing a EU approved quickie BK in and out, 20 cents on dollar take it or leave it.
Waking up one morning and finding a BK that you had no time to hedge, sell etc. is bad. That would cause a cascade of defaults. Default is fine just do it in a planned way.
Anon E. Moose says:
February 6, 2012 at 2:05 pm
JJ [74];
Unexpected last minute out of blue default…
And exactly who on the planet that gives a d@mn would a Greek soverign default to be unexpected*, last minute, or out of the blue?
*Gretchen and the mainstream media, naturally… “Shocking news today as the Greek government >unexpectedly< defaults on its bonds…"
jj (79)-
Greek bondholders have had an eternity to put contingency plans in place. Hell, if nothing else, they could’ve done what El-Erian did (sell it all ASAP).
Anyone not hedged against complete annihilation in this situation is a moron, although there are plenty more of those in the bondholder pool than any of us can possibly imagine.
“Unexpected last minute out of blue default is bad.”
Kind of like the Jets collapse?
The real “unexpected” event in Europe would be Germany ditching the Euro.
IMO, this is the most likely event. Seems like everyone there but Merkel wants to see it happen.
Not to worry, Western capitalist pigs. European debt is nothing to worry about, inferior debtor slime. We here in the PRC stand ready to help our Western brothers and sisters, help you by selling you the rope you will hang yourself with. Although it does little to help us here in the PRC we are willing to bend over backawards in an effort to help our European neighbors, help you slide to capitalist hell. We are therefore offering to pay off ALL EU member state debt in exchange for one or two minor, well hardly worth mentioning, concessions — Portugal, Ireland, and Greece.
My guess is “Bobby Knight”….
There Went Meat says:
February 6, 2012 at 12:55 pm
jj (59)- Best thing to do when wifey asks questions is give her another donkey punch and get on with it.
JJ said #59 ” But tell you what people are buying with cash. There is a lot of cash out there.”
They are drooling for it! There are more people running around with cash trying to buy “distressed” property than during the bubble. Sometimes I believe there may be enough buyer’s in the North Jersey REO market to suck up the next big wave as fast as it rolls in. What I wonder about next is, who will those suckers be able to unload it on?
From “The Dying of Money”, Jens O. Parsson, 1974:
“The significance of all this is that the use of money in capital markets is a principal repository of inflationary potential. Monetary inflation invariably makes itself felt first in capital markets, most conspicuously as a stock market boom. Prices of national product remain temporarily steady while stock prices rise and interest rates fall. This happened at the commencement of the German inflationary boom of 1920, and it happened again at the commencement of the American inflationary boom from 1962 to 1966. Indeed, every monetary expansion in the United States since World War II was followed by a stock market rise, every cessation of monetary expansion by a stock market fall. Conversely, every stock market rise was preceded and accompanied by money inflation. Bull markets rest on nothing but inflation. The market fall following tight money merely brings the market back to its real-value level.
It is not difficult to understand why this is true. Virtually all, and not merely a proportionate part, of the excess money demand created by a monetary inflation goes temporarily into the capital markets. In our earlier example, the holder of excess money could either force up the prices of national product (price inflation) or hold the excess money longer than usual (low velocity), neither of which he had any wish to do. What he is actually most likely to do with the excess money is to buy himself some stocks, bonds, or savings accounts, in other words to “invest” the money or put it into the capital markets. This must force up the prices of real values in capital markets, to be sure, and this in turn is one form of simple price inflation, but no one thinks of it as such because no one is thinking of real values. One man’s price inflation is another man’s capital gain, and even the first man does not mind it if he is getting his capital gains too. The excess money which is happily at play in the capital markets is money which is not yet distressing the prices of national product, where it might hurt.
“
Re: [83];
Hu’s your Daddy?
#26 Chi
I watched my first. Superbowl back in 82 and have watched atmost all since. I haver seen great ones, poor ones and the spectrum in between. Eli and Tom may be going to the hall, but not on the back of that performance. Gary says a 15 round chess match. I think the 15 rounds were fought to get then there. The injuries thoughout the game just compounded the issue. As for the game plan, some nice ideas, but poor execution. Bad routes, dropped passes and I lost count how many low snaps came out of the giants. Gronkowski should not have been on the field. He spent most of the game on 1 for 20 and finished 3 for 26. If he had been fit he probably would have caught the Hail Mary, but also if he had been fit the interception probably would not have happened. As for the Hail Mary it shouldn’t have happened. There was no pressure on Brady, the NT ran a C route anf realised he had to pick himself up and run down Brady as he was still in the pocket and the NT was the only one anywhere near him.
Again the game gets a big meh! Not the worst SB and nowhere near any of the greats.
As for your Ad Hominen indictment, go shove it.
Great rant:
“As the marks go further into debt, the Wall Street shills report record earnings ($26 billion from loan loss reserve accounting entries), consumer spending rises and GDP goes higher. The mainstream media accomplices dutifully report an improving economy. The government accomplices massage the employment and inflation data and declare a jobs recovery with no inflation. The marks are supposed to feel better about the future and spend even more borrowed money. This is what is considered a self-sustaining recovery by the psychopaths running this country.”
http://www.zerohedge.com/news/guest-post-illusion-recovery-feelings-versus-facts
CDS on Greek bonds are too pricey. Greek bonds are making their interest payments. I would expect as a bond holder to at least get a GMAC, GM, Chrysler type gun to your head deal where I can make a decision to either accept, sell at a large loss or roll dice for better deal.
An uncontrolled BK where in middle of night the thing goes worthless will cause contagion risk to Portugal, Spain, Ireland etc. As well as a massive panic in intera banks credit markets. I am saying default, they should default but uncontroled default is trouble.
People are awash in a sea of cash with no place to go. Lets say I refinance well that gives me more cash per month, called bonds, bond maturity, matured cds, matured bonds. The Cash keeps coming. For instance in March I got a 35K called bond that was paying me a 8.75% coupon. What do I do with that cash? Bonus are paid in Feb, half of wall street is getting six figure checks where does that cash go. 2008-2010 people were complaining I cant pay my bills, now in 2012 they complain they don’t know what to do with their cash. Junk bonds, Munis, Pref Stock, Investment Properties, REITS, ETFs, etc. they are profiting from the sea of cash flooding in. However, this will end ugly. I was the biggest bond/stock bull in the world in 2009-2011 now I am scared. Unprofessional retail investors with itchy trigger fingers who have a habit of buying and selling at worst times are in the market in droves. They are trouble.
Post #91 should be a wake-up call for all of us here. Doom is nigh.
“However, this will end ugly. I was the biggest bond/stock bull in the world in 2009-2011 now I am scared. Unprofessional retail investors with itchy trigger fingers who have a habit of buying and selling at worst times are in the market in droves. They are trouble.”
Hmm. Greek bonds and reo you say?
No deal I guess?
Back on tuesday. Looks like theyre talking in circles. Look for your entry point.
http://mobile.reuters.com/article/idUSTRE8151TW20120206?irpc=932
Almost there
http://money.cnn.com/2012/02/06/news/economy/mortgage_settlement/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29&utm_content=Google+Feedfetcher
All these stupid deals are “almost there”. It’s nothing but lies, kick-the-can schemes and Rube Goldberg idiot fixes.
It’s all gonna blow to kingdom come.
I remember the first iteration of HAMP. I called the FHA and asked for some literature, and the person on the other end started laughing uncontrollably.
Most financial “fixes” nowdays are nothing more than some talking points, followed by a big press conference.
You need a hug
No underdog? Combined, the teams Giants beat in the playoffs had 54 wins. Giants came in at 9-7 and were a play away from extinction several times since November. Typical Giants; outplay the opponent and be +/- a couple points at the half. Then fall behind and play beat the clock. Microcosm of their season. Fortunately, Pats were just a bit shy of the task.
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