TheHill.com: "Senate Democratic leaders unveiled their $56 billion economic stimulus package on Thursday, less than an hour before leaving to meet President Bush at the White House to continue the fragile negotiations on the financial rescue bill."
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So that is the Democrat price tag for supporting the bailout?
[update: Here is a summary of what the House Republicans want, which isn't what Bush and Paulson want. So I guess the situation is the House and Senate Democrats will support something like the Paulson plan if they get their $56 million; the House Republicans don't like the plan, which is being panned like crazy by many conservatives; and neither McCain nor Obama has so far tried to play the role of Bigfoot. Harry Reid is bashing McCain for not being helpful enough, and seems to have forgotten that Obama was sitting there not doing a whole lot either. As the presidential candidate of the party that controls both houses, I would think more leadership would be expected of him than of McCain, but Obama has made a fantastic career out of acting supremely important while doing absolutely nothing, so why change now?]
Friday, September 26, 2008
Steven Pearlstein - Gut Check
Steven Pearlstein - Gut Check: "[T]his isn't primarily a bailout for Wall Street -- it's an attempt to jump-start certain credit markets that have broken to the point that nobody is buying, driving down prices to the point where they are well below any reasonable estimate of their long-term economic value.
The basic idea is to use special auctions to recreate a market for these securities with many competing sellers and one buyer (the Treasury), so that a credible 'market' price can be established. If that price turns out to be below what those securities are now valued at on the banks' balance sheets, then banks will have to take the loss. If the price turns out to be higher, then banks may be able to record gains. The point isn't to bail out institutions that have made bad bets and suffered credit losses, but to provide a buyer of last resort so the market can begin pricing again."
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This is a short and persuasive take on the Paulson proposal. Worth reading for sure.
Pearlstein doesn't talk about the politics, just the policy. Politically, we now have the spectacle of the Democrats blaming the congressional Republicans for the breakdown in negotiations over the bailout. Last time I checked the Democrats had majorities in both houses of Congress and they can surely count on some Republican votes, and the President won't veto it because it's his administration's proposal. So why don't the Democrats just negotiate with the administration, come up with a Bush/Democrats bill, pass it, and take credit for saving the economy? Pelosi told Paulson that the Republicans are the problem, so in fact there is no problem, right?
Except that the Democrats don't want the responsibility of making the decision. They want some sort of bipartisan bailout so they don't take the heat for the current unpopularity of "bailing out Wall Street," and for the possibility that it will be a failure anyway. And they want Republican support on Democrat terms, apparently with all sorts of additional spending for other things and new powers for bankruptcy judges to remake the terms of mortgages. Some of these things may be good ideas. But it comes down to power. They don't want to do this without some sort of Republican leadership on board. Yet, it seems to me that there is so much vehement conservative opposition to this entire bailout concept (listen to talk radio on this) that the Republican leadership will continue to balk. Maybe McCain can twist their arms, maybe not. If he succeeds in getting the Republicans in line (and that's why he went to Washington), we have a bailout and the usual bipartisan blame-and-credit-game afterword. If he fails, the Democrats will have to choose between a) taking responsibility for a huge, complex, and untested policy that may not work, or b) letting the financial sector melt down entirely and trying to blame the resulting depression on Bush, McCain, and the Republican minority in Congress.
The basic idea is to use special auctions to recreate a market for these securities with many competing sellers and one buyer (the Treasury), so that a credible 'market' price can be established. If that price turns out to be below what those securities are now valued at on the banks' balance sheets, then banks will have to take the loss. If the price turns out to be higher, then banks may be able to record gains. The point isn't to bail out institutions that have made bad bets and suffered credit losses, but to provide a buyer of last resort so the market can begin pricing again."
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This is a short and persuasive take on the Paulson proposal. Worth reading for sure.
Pearlstein doesn't talk about the politics, just the policy. Politically, we now have the spectacle of the Democrats blaming the congressional Republicans for the breakdown in negotiations over the bailout. Last time I checked the Democrats had majorities in both houses of Congress and they can surely count on some Republican votes, and the President won't veto it because it's his administration's proposal. So why don't the Democrats just negotiate with the administration, come up with a Bush/Democrats bill, pass it, and take credit for saving the economy? Pelosi told Paulson that the Republicans are the problem, so in fact there is no problem, right?
Except that the Democrats don't want the responsibility of making the decision. They want some sort of bipartisan bailout so they don't take the heat for the current unpopularity of "bailing out Wall Street," and for the possibility that it will be a failure anyway. And they want Republican support on Democrat terms, apparently with all sorts of additional spending for other things and new powers for bankruptcy judges to remake the terms of mortgages. Some of these things may be good ideas. But it comes down to power. They don't want to do this without some sort of Republican leadership on board. Yet, it seems to me that there is so much vehement conservative opposition to this entire bailout concept (listen to talk radio on this) that the Republican leadership will continue to balk. Maybe McCain can twist their arms, maybe not. If he succeeds in getting the Republicans in line (and that's why he went to Washington), we have a bailout and the usual bipartisan blame-and-credit-game afterword. If he fails, the Democrats will have to choose between a) taking responsibility for a huge, complex, and untested policy that may not work, or b) letting the financial sector melt down entirely and trying to blame the resulting depression on Bush, McCain, and the Republican minority in Congress.
BBC NEWS | UK | Pilot completes jetpack challenge
BBC NEWS | UK | Pilot completes jetpack challenge: "A Swiss man has become the first person to fly solo across the English Channel using a single jet-propelled wing. Yves Rossy landed safely after the 22-mile (35.4 km) flight from Calais to Dover, which had been twice postponed this week because of bad weather. The former military pilot took less than 10 minutes to complete the crossing and parachute to the ground. The 49-year-old flew on a plane to more than 8,200ft (2,500m), ignited jets on a wing on his back, and jumped out."
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I want one of these for my birthday.
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I want one of these for my birthday.
Money: HOA delinquencies on the rise | association, hoa, foreclosures, hoas, aliso - OCRegister.com
Money: HOA delinquencies on the rise | association, hoa, foreclosures, hoas, aliso - OCRegister.com: "The Laguna Hills condo complex had at least 23 foreclosures in the past six months, resulting in months of unpaid homeowner association dues.
Now, Aliso Meadows is so short on cash that it has deferred roof and termite repairs, can't fix rotten wood siding and must wait to fix potholes 'big enough for your families to make Jacuzzi's of,' association officials said."
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Many associations are getting hit hard by the foreclosure meltdown. Banks aren't paying assessments on their REO CID units. Do you think they are going to start paying now, in the middle of a financial crisis? Harder times are coming, it seems.
Now, Aliso Meadows is so short on cash that it has deferred roof and termite repairs, can't fix rotten wood siding and must wait to fix potholes 'big enough for your families to make Jacuzzi's of,' association officials said."
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Many associations are getting hit hard by the foreclosure meltdown. Banks aren't paying assessments on their REO CID units. Do you think they are going to start paying now, in the middle of a financial crisis? Harder times are coming, it seems.
MyFox Tampa Bay | Homeowners face foreclosure for bushes, fees
MyFox Tampa Bay | Homeowners face foreclosure for bushes, fees: "A group of homeowners say they face liens on their homes and possible foreclosure for something as trivial as tall bushes. Others say they're accused of not paying fees when they have. Now, the issue is headed to court."
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This is the wrong time for HOA boards to get all hard-nosed about minor issues, if you ask me. Thanks to Fred Pilot for this link.
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This is the wrong time for HOA boards to get all hard-nosed about minor issues, if you ask me. Thanks to Fred Pilot for this link.
WaMu is largest U.S. bank failure - Yahoo! News
WaMu is largest U.S. bank failure - Yahoo! News: "NEW YORK/WASHINGTON (Reuters) - Washington Mutual Inc was closed by the U.S. government in by far the largest failure of a U.S. bank, and its banking assets were sold to JPMorgan Chase & Co for $1.9 billion...It vaults JPMorgan past Bank of America Corp to become the nation's second-largest bank, with $2.04 trillion of assets, just behind Citigroup Inc. Bank of America will go to No. 1 once it completes its planned purchase of Merrill Lynch & Co."
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At the rate this is going, we will soon have just a few giant banks.
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At the rate this is going, we will soon have just a few giant banks.
Thursday, September 25, 2008
Rescue plan could hinge on value of bad assets
Rescue plan could hinge on value of bad assets: "Treasury Secretary Henry Paulson's $700 billion financial rescue plan has grown from a program focused on relieving lenders and investors of their bad mortgages to one in which the government would have the authority to take over any kind of problem loan or other asset, from bad credit card debt to commercial real estate securities."
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Fred Pilot wonders if this would include delinquent HOA assessments. Maybe HOAs should start packaging their bad debt as securities and selling it, because if the credit markets dry up they won't be able to borrow to repair common area elements that 1) they have insufficient reserves to repair, and 2) they can't get enough from the owners in regular or special assessments to fix, and 3) there ain't no place else to go but the bank.
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Fred Pilot wonders if this would include delinquent HOA assessments. Maybe HOAs should start packaging their bad debt as securities and selling it, because if the credit markets dry up they won't be able to borrow to repair common area elements that 1) they have insufficient reserves to repair, and 2) they can't get enough from the owners in regular or special assessments to fix, and 3) there ain't no place else to go but the bank.
China banks told to halt lending to US banks-SCMP | Markets | Markets News | Reuters
China banks told to halt lending to US banks-SCMP | Markets | Markets News | Reuters: "BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday."
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I think this is what Bush was talking about when he said that "credit markets are frozen." I wonder if Obama thinks this is important enough for him to stop the preening and posturing and go back to Washington. Last time I checked, he was supposedly a US Senator. I realize he thinks he is already President, but it seems that he might actually need to vote "present" again.
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I think this is what Bush was talking about when he said that "credit markets are frozen." I wonder if Obama thinks this is important enough for him to stop the preening and posturing and go back to Washington. Last time I checked, he was supposedly a US Senator. I realize he thinks he is already President, but it seems that he might actually need to vote "present" again.
Bailout: Full text of Bush's address about economy - On Deadline - USATODAY.com
Bailout: Full text of Bush's address about economy : "The decline in the housing market set off a domino effect across our economy. When home values declined, borrowers defaulted on their mortgages, and investors holding mortgage-backed securities began to incur serious losses. Before long, these securities became so unreliable that they were not being bought or sold. Investment banks, such as Bear Stearns and Lehman Brothers, found themselves saddled with large amounts of assets they could not sell. They ran out of money needed to meet their immediate obligations, and they faced imminent collapse. Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up, and the gears of the American financial system began grinding to a halt."
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I don't pretend to be an expert on the financial sector, but I wish Bush had gone further and explained a couple of things.
The speech laid out the basics. There was a tsunami of cheap and easy money being lent out, creating enormous risk to the financial institutions, and the GSEs were in terrible jeopardy. When housing prices began to fall, the wave began to crash.
But while he correctly pointed to the speculation in housing that occurred, he never mentioned two things, because to do so would set off the blame game and paralyze his efforts to get the bill passed:
1. The Clinton Administration's major initiative to force banks to give home loans to "first time home buyers," meaning people who couldn't afford home ownership. You could call this over-regulation. This got Fannie Mae and Freddie Mac involved in buying all kinds of bad loans, and they passed that on in what turned out to be bad (but guaranteed) securities.
2. The total lack of regulation over the huge array of bizarre derivatives that were spawned to deal with all the excess risk. Credit default swaps proliferated all over the place and led to demands for payment that could not possibly be met--even by a giant like AIG.
So it seems to me that there was both over and under regulation: over-regulation in housing finance to induce reckless lending to people with no money, and under-regulation in the financial sector where they bought and sold all that risk. He avoided mentioning either. That makes the whole thing sound like a big natural disaster instead of something that was created by human action. Maybe that helps get the bailout passed, but doesn't the public need a fuller explanation of how we got here? I can see a typically vapid finger-pointing election "debate" over this between Obama and McCain with nobody explaining why both explanations are part of the real story.
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I don't pretend to be an expert on the financial sector, but I wish Bush had gone further and explained a couple of things.
The speech laid out the basics. There was a tsunami of cheap and easy money being lent out, creating enormous risk to the financial institutions, and the GSEs were in terrible jeopardy. When housing prices began to fall, the wave began to crash.
But while he correctly pointed to the speculation in housing that occurred, he never mentioned two things, because to do so would set off the blame game and paralyze his efforts to get the bill passed:
1. The Clinton Administration's major initiative to force banks to give home loans to "first time home buyers," meaning people who couldn't afford home ownership. You could call this over-regulation. This got Fannie Mae and Freddie Mac involved in buying all kinds of bad loans, and they passed that on in what turned out to be bad (but guaranteed) securities.
2. The total lack of regulation over the huge array of bizarre derivatives that were spawned to deal with all the excess risk. Credit default swaps proliferated all over the place and led to demands for payment that could not possibly be met--even by a giant like AIG.
So it seems to me that there was both over and under regulation: over-regulation in housing finance to induce reckless lending to people with no money, and under-regulation in the financial sector where they bought and sold all that risk. He avoided mentioning either. That makes the whole thing sound like a big natural disaster instead of something that was created by human action. Maybe that helps get the bailout passed, but doesn't the public need a fuller explanation of how we got here? I can see a typically vapid finger-pointing election "debate" over this between Obama and McCain with nobody explaining why both explanations are part of the real story.
Wednesday, September 24, 2008
Bush: U.S. Citizens to Welcome Our 51 State
Bush: U.S. Citizens to Welcome Our 51 State: "(2008-09-20) — Although it cost more than the Louisiana Purchase and the Alaska purchase combined and offers far less acreage, President George Bush today said he thinks “U.S. citizens will welcome our 51 state with open arms.”
The announcement that the financial realm collectively known as “Wall Street” had applied for statehood follows a week in which the federal government took control of mortgage giants Fannie Mae and Freddie Mac, and insurance megalith AIG. It also comes as news breaks that the U.S. plans to spend up to a $1 trillion to “rescue” other foundering financial firms.
President Bush noted that the newest state is not so much a geographical swath of land as it is “a state of mind.”"
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You did hear about this, didn't you?
The announcement that the financial realm collectively known as “Wall Street” had applied for statehood follows a week in which the federal government took control of mortgage giants Fannie Mae and Freddie Mac, and insurance megalith AIG. It also comes as news breaks that the U.S. plans to spend up to a $1 trillion to “rescue” other foundering financial firms.
President Bush noted that the newest state is not so much a geographical swath of land as it is “a state of mind.”"
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You did hear about this, didn't you?
3 News > Business > Story > Cows that milk themselves
3 News > Business > Story > Cows that milk themselves: "The country's first robotic dairy farm is now up and running, complete with milking robots that allow the cows to choose their own milking time.
It is run by robots, milking robots that allow cows the freedom to be milked whenever they choose. Each animal has its own computerised collar giving it access to the milking shed, and monitoring its milk outflow and health."
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Somebody tell PETA about this so they can stop asking Ben & Jerry to make ice cream with human breast milk (see below).
It is run by robots, milking robots that allow cows the freedom to be milked whenever they choose. Each animal has its own computerised collar giving it access to the milking shed, and monitoring its milk outflow and health."
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Somebody tell PETA about this so they can stop asking Ben & Jerry to make ice cream with human breast milk (see below).
Beware the Button Police :: Inside Higher Ed :: Higher Education's Source for News, Views and Jobs
Beware the Button Police :: Inside Higher Ed :: Higher Education's Source for News, Views and Jobs: "Sporting an Obama or McCain button? Driving a car with one of the campaigns’ bumper stickers? You might need to be careful on University of Illinois campuses.The university system’s ethics office sent a notice to all employees, including faculty members, telling them that they could not wear political buttons on campus or feature bumper stickers on cars parked in campus lots unless the messages on those buttons and stickers were strictly nonpartisan. In addition, professors were told that they could not attend political rallies on campuses if those rallies express support for a candidate or political party. Faculty leaders were stunned by the directives. Some wrote to the ethics office to ask if the message was intended to apply to professors; they were told that it was. At Illinois campuses, as elsewhere, many professors do demonstrate their political convictions on buttons, bumper stickers and the like."
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Yes, they do "demonstrate their political convictions." But the University of Illinois faculty's political convictions are about 99% on one side: the left. So what we are really talking about is suppression of Obama buttons, Obama bumper stickers, and attendance at Obama rallies. And many professors also demonstrate their convictions in the classroom, which I noticed didn't pop up on the list, presumably because of legitimate concerns about the professors' academic freedom. So, the hard question is, who, if anybody, makes sure professors respect the students' freedoms? How do you address that concern without trampling on the professors?
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Yes, they do "demonstrate their political convictions." But the University of Illinois faculty's political convictions are about 99% on one side: the left. So what we are really talking about is suppression of Obama buttons, Obama bumper stickers, and attendance at Obama rallies. And many professors also demonstrate their convictions in the classroom, which I noticed didn't pop up on the list, presumably because of legitimate concerns about the professors' academic freedom. So, the hard question is, who, if anybody, makes sure professors respect the students' freedoms? How do you address that concern without trampling on the professors?
Tuesday, September 23, 2008
Brad Setser: Follow the Money » Blog Archive » Some ballpark math on the US financial sector (i.e. just how big is $700b?): "The Federal Reserve’s flow of funds data indicates that US households have $11.2 trillion in outstanding mortgage debt on non-farm homes, another $2.4 trillion in outstanding “other mortgage debt” (a category that includes corporate farms, who knew … ) and $2.5 trillion outstanding consumer credit."
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Not so big after all?
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Not so big after all?
PETA Urges Ben & Jerry's To Use Human Milk - News Story - WPTZ Plattsburgh: "PETA officials say a move to human breast milk would lessen the suffering of dairy cows and their babies on factory farms and benefit human health."
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When did the press start doing PETA's bidding here? When a cow reproduces, the offspring is called a "calf," not a BABY. And pardon me for being squeamish, but I'm not buying human breast milk ice cream. Besides, I'd say this whole milk gig is good for cows when you consider the alternative. If we don't use cows to produce milk, why not shoot them and turn them into meat? While on the subject of unpleasant alternatives, I think if you surveyed the nation's cows, they would vote about 9 to 1 that they would rather be milked daily than have their hind legs eaten by a pack of wolves while their front legs are still trying to run away.
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When did the press start doing PETA's bidding here? When a cow reproduces, the offspring is called a "calf," not a BABY. And pardon me for being squeamish, but I'm not buying human breast milk ice cream. Besides, I'd say this whole milk gig is good for cows when you consider the alternative. If we don't use cows to produce milk, why not shoot them and turn them into meat? While on the subject of unpleasant alternatives, I think if you surveyed the nation's cows, they would vote about 9 to 1 that they would rather be milked daily than have their hind legs eaten by a pack of wolves while their front legs are still trying to run away.
Americans reluctant to fund bailout, poll finds - Los Angeles Times
Americans reluctant to fund bailout, poll finds - Los Angeles Times: "Asked whether the government should use taxpayer dollars to rescue financial firms whose collapse could have adverse effects on the economy, 55% of the poll's respondents said they did not believe the government should be responsible for funding a bailout plan."
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The precise working of the questions would determine the results in this situation, because most of the respondents probably think Fannie Mae is a candy store.
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The precise working of the questions would determine the results in this situation, because most of the respondents probably think Fannie Mae is a candy store.
FinancialRx: Credit Default Swaps Now Total $283 Trillion: "Last week the International Swaps and Derivatives Association said that at the end of June, the outstanding nominal value of swaps and derivatives was $283.2 trillion. As the New York Times pointed out over the weekend, that's a lot of money, vastly superior to the combined gross domestic products of the U.S., European Union, Canada and China -- a paltry $34 trillion -- or the value of all U.S. homes, which is about the same amount. 'To be sure, notional value is an exaggerated term as it greatly overstates the amount at risk in many contracts,' the Times noted. 'But the growth rate is real, and in the fastest-growing area of swaps -- credit default swaps -- notional value is closer to the amount at risk, because such swaps promise to make up the losses if a borrower defaults on the notional amount.'"
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This is a link to a blog post. The chart that accompanies it will blow the mind of anybody who looks at it long enough to understand it. Then look at the date of the post: September 28, 2006.
And now we are reading about how the financial sector of the US economy is melting into a puddle of goo because of...credit default swaps.
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This is a link to a blog post. The chart that accompanies it will blow the mind of anybody who looks at it long enough to understand it. Then look at the date of the post: September 28, 2006.
And now we are reading about how the financial sector of the US economy is melting into a puddle of goo because of...credit default swaps.
Freddie Mac's new chief to get $900,000 salary - Sep. 23, 2008: "WASHINGTON (AP) -- Mortgage finance company Freddie Mac says its new chief executive is earning a base salary of $900,000 a year, a 25% pay cut from his predecessor who also received sizable bonuses and stock options."
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Nice to see all this belt-tightening at Freddie Mac, now that we the taxpayers have taken it over and all. A mere 900K for the base salary, while his full salary package is being determined, mind you. This is just to tide him over. Isn't that special?
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Nice to see all this belt-tightening at Freddie Mac, now that we the taxpayers have taken it over and all. A mere 900K for the base salary, while his full salary package is being determined, mind you. This is just to tide him over. Isn't that special?
FOXNews.com - FBI Investigating Potential Fraud by Fannie Mae, Freddie Mac, Lehman, AIG - Local News | News Articles | National News | US News: "Over the past year as the housing market cratered, the FBI has opened a wide-ranging probe of companies across the financial services industry, from mortgage lenders to investment banks that bundle home loans into securities sold to investors. Mueller has previously said the FBI's hunt for culprits in the nation's subprime mortgage crisis focused on accounting fraud, insider trading, and failure to disclose the value of mortgage-related securities and other investments. The investigations revealed Tuesday come as lawmakers began considering whether to approve emergency legislation that would give the government broad power to buy up devalued assets from troubled financial firms."
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Pardon my skepticism, but I can't help wondering if this is a conveniently timed leak intended to convey the impression that the Bush administration isn't just showering the financial industry with taxpayer largesse, but investigating...seeking to find and punish the bad guys who created this mess, whoever they may be (and I should emphasize that I am not blaming any particular individuals for the economic debacle--I'm just talking about the way this leak makes things look).
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Pardon my skepticism, but I can't help wondering if this is a conveniently timed leak intended to convey the impression that the Bush administration isn't just showering the financial industry with taxpayer largesse, but investigating...seeking to find and punish the bad guys who created this mess, whoever they may be (and I should emphasize that I am not blaming any particular individuals for the economic debacle--I'm just talking about the way this leak makes things look).
Fort Lauderdale condo association has dog fight -- South Florida Sun-Sentinel.com
Fort Lauderdale condo association has dog fight -- South Florida Sun-Sentinel.com: "Michael Colyer lost his cool with his condominium board's president, so now the condo association wants a judge to order him to get lost when it comes to future meetings."
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No sooner do I blog about dogs than up jump a couple of schnauzers and nip a Shih Tzu, leading to a big row at the condo association meeting, with F-bombs thrown around, and next thing you know the association wants a TRO barring the hurler of the F-bombs from meetings and "other condo functions," which I assume amounts to shunning.
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No sooner do I blog about dogs than up jump a couple of schnauzers and nip a Shih Tzu, leading to a big row at the condo association meeting, with F-bombs thrown around, and next thing you know the association wants a TRO barring the hurler of the F-bombs from meetings and "other condo functions," which I assume amounts to shunning.
Monday, September 22, 2008
CARPE DIEM: Size of U.S. State Economies vs. Foreign Countries: "We often lose sight of: a) how big the U.S. economy is, b) how productive American workers, and how much we produce vs. other countries. After all, who can get their mind around $13 trillion, the size of the U.S. economy measured by GDP ($13,000,000,000,000)?
World GDP is about $47 trillion according to the CIA World Factbook, so the U.S. economy produces more than 30% of world output every year, with just 5% of the world's population."
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A little perspective helps to get a sense for the kind of money this bailout represents. The map that accompanies the post is astounding. Russia=New Jersey???
Home, small home: 250 square feet in SoMa / New condo development targets young first-time buyers without too much stuff
Home, small home: 250 square feet in SoMa / New condo development targets young first-time buyers without too much stuff: "It's about the size of seven ping-pong tables - and all yours starting at $279,000. A San Francisco design and development firm has begun marketing 98 tiny condominiums - ranging from 250 to 350 square feet - at the Cubix Yerba Buena building in SoMa."
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And the condo dues are $270 per month. Thanks to Kimberly Cane for this link. What a deal. Maybe they just wall you up in it like The Cask of Amontillado.
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And the condo dues are $270 per month. Thanks to Kimberly Cane for this link. What a deal. Maybe they just wall you up in it like The Cask of Amontillado.
Bailout Prevents Great Depression 2.0 - Capital Commerce (usnews.com): "What would be the dollar cost of not bailing out Wall Street? Try a number north of $30 trillion. (The awful math is detailed below.) That's why Hank Paulson and Ben Bernanke were so scared last week."
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That number will get your attention in a hurry. How much money is there in the world?
FEATURE-For many U.S. Christians, it's God before mortgage | Markets | Bonds News | Reuters
FEATURE-For many U.S. Christians, it's God before mortgage
For some Christians, tithing to their church takes precedence over paying their mortgage. Shorting the bank is one thing, but if you ask me they had better pay those HOA fees.
For some Christians, tithing to their church takes precedence over paying their mortgage. Shorting the bank is one thing, but if you ask me they had better pay those HOA fees.
Woman whose dogs mauled neighbor gets 15 to life: "SAN FRANCISCO (AP) - A judge has sentenced a dog owner to 15 years to life in prison, seven years after her canines fatally mauled her neighbor in an upscale San Francisco neighborhood."
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This is a highly unusual sentence. Normally the owner of a dog that attacks somebody gets a small fine and maybe a civil suit. In this case, these dogs were huge, vicious beasts raised by white supremacists, and the owners were attorneys who represented the creeps and acquired the dogs from them. The woman who died was opening the door to her apartment and the dogs were in the hall with their owners. They attacked her and the owners couldn't get them off her. It was a horrific incident.
Apparently this was in an apartment building, but the issue that comes to mind is the presence of potentially dangerous dogs, such as those Presa Canarios, pit bulls, etc., in condo and hoa developments. Most condos have rules on the number and/or size of pets. Many HOAs are much less restrictive. I have been consulted by people who had problems with their neighbors' dogs, which were legal under existing rules but scaring the daylights out of everybody. Of course, the owners say the dogs are harmless and just look scary. Seems to me that this is a difficult situation where there are generally two sides to the story. There is no easy solution. Do you ban certain breeds, and if so, besides pit bulls, which ones? Do you give the dogs disposition tests? Do you go by weight? Give them one free bite? How much power should people have over the neighbor's choice of pet? Not an easy issue to be fair about.
(PS: would the pit bull lovers please spare me the lectures about what wonderful misunderstood animals they are? I've heard it all before and it is nonsense. I could fill this blog with stories of people mangled by pit bulls. I know some of them are great dogs, but they are unpredictable time bombs and should all be sterilized.)
Business & Technology | WaMu loaned millions to California home flippers convicted in fraud scheme | Seattle Times Newspaper
Business & Technology | WaMu loaned millions to California home flippers convicted in fraud scheme | Seattle Times Newspaper: "In July 2007, Vijay and Supriti Soni of Corona del Mar, Calif., paid $440,000 for a home at 2129 W. Civic Center Drive in Santa Ana. Five weeks later, they resold the house to Javier Hernandez, the family gardener and handyman, for $660,000. That's a 50 percent gain in 38 days — at a time when real-estate prices in Santa Ana were plunging. But the lender that financed both mortgages, Washington Mutual, took a bath. Last March, Hernandez's loan went into default and in July the bank foreclosed. On the trustee's deed, the bank listed the home's value at $377,137 — $220,000 less than the outstanding loan...The Soni family's transactions with WaMu indicate it continued making risky loans long after its underwriting standards were supposedly tightened in mid-2007, said James Barth, a senior finance fellow at the Milken Institute in Santa Monica."
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Ah, the good old days. Can I be excused for politely asking why WaMu should not bear the full financial consequences of making loans like this? In other words, why should a single penny of tax dollars go to absolve WaMu of whatever loss they suffer here? Why is it even a public policy question at all? People are free to do dumb things with their money. When I do dumb things with mine, I lose it. WaMu spent years aggressively advertising their willingness to lend money to just about anybody. It seems that they meant it, so give them points for honesty. But it is still dumb. I'm not saying the whole bailout package is a bad idea, because I don't know at this point. But I hope banks that just did incredibly stupid things don't get bailed out.
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Ah, the good old days. Can I be excused for politely asking why WaMu should not bear the full financial consequences of making loans like this? In other words, why should a single penny of tax dollars go to absolve WaMu of whatever loss they suffer here? Why is it even a public policy question at all? People are free to do dumb things with their money. When I do dumb things with mine, I lose it. WaMu spent years aggressively advertising their willingness to lend money to just about anybody. It seems that they meant it, so give them points for honesty. But it is still dumb. I'm not saying the whole bailout package is a bad idea, because I don't know at this point. But I hope banks that just did incredibly stupid things don't get bailed out.
Science unveils hidden drivers of stock bubbles and crashes
Science unveils hidden drivers of stock bubbles and crashes: "'In standard economic theory, the way that prices in all markets are meant to be set depends on people being rational and having access to all available information,' says David Tuckett of the Psychoanalysis Unit at University College London.
'This way of looking at things is almost completely wrong,' he said. 'Markets are operated by human beings.'"
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This is worth reading. The people who really need to read it won't. That would be the libertarians and other free-marketer zealots who insist that we should model public policy on the assumption of rationality.
'This way of looking at things is almost completely wrong,' he said. 'Markets are operated by human beings.'"
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This is worth reading. The people who really need to read it won't. That would be the libertarians and other free-marketer zealots who insist that we should model public policy on the assumption of rationality.
City bylaws torpedo pirate ship tree house - USATODAY.com
City bylaws torpedo pirate ship tree house - USATODAY.com: "Architect Andrew Dewberry and a crew of friends spent Saturday dismantling the pirate ship tree house he's had in his Vancouver yard for two years. He said he had no choice after a court ordered it to be removed for not complying with city bylaws."
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Arrrrrr. Prepare to repel boarders, ye scurvy bilge rats!
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Arrrrrr. Prepare to repel boarders, ye scurvy bilge rats!
Do you owe more on your home than it is worth?
Do you owe more on your home than it is worth?: "Its study extrapolated national trends that showed 17 percent of home loans between 2002 and 2007 were subprime and that 30 percent of all mortgages during that time would be upside down. In Pima County over that same period, 38 percent of home loans were subprime.
That and rapidly falling property values lead the council to project that a third of all mortgages in Pima County could be more expensive than the property they back.
A subprime loan is one made to a borrower who doesn't qualify for a home loan under Fannie Mae or Freddie Mac lending guidelines."
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That is a heck of a lot of subprime loans. How much of this mortgage crisis is caused by deregulation of the lending process, and how much by government policies that basically forced lenders to make loans to people who couldn't afford to buy any house at all? I don't know, but when this whole debacle is studied it will be interesting to see how the under-regulation vs. over-regulation balance comes out.
That and rapidly falling property values lead the council to project that a third of all mortgages in Pima County could be more expensive than the property they back.
A subprime loan is one made to a borrower who doesn't qualify for a home loan under Fannie Mae or Freddie Mac lending guidelines."
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That is a heck of a lot of subprime loans. How much of this mortgage crisis is caused by deregulation of the lending process, and how much by government policies that basically forced lenders to make loans to people who couldn't afford to buy any house at all? I don't know, but when this whole debacle is studied it will be interesting to see how the under-regulation vs. over-regulation balance comes out.
Sunday, September 21, 2008
Man vows to fight garden gnome arrest threat | Mail Online
Man vows to fight garden gnome arrest threat | Mail Online: "A man vowed to keep a glowing garden gnome on display today in defiance of a police notice. Gordon MacKillop even faces possible prosecution over the offending ornament. He was woken in the night by two police officers who warned him that the solar-powered gnome, dressed in full police uniform, was offensive to his neighbours. They served him with a notice under the Protection From Harassment Act 1997 for 'placing a garden gnome with intent to cause harassment to Mr John McLean'. The notice, issued on August 30, also accuses Mr MacKillop of intimidating potential buyers of former policeman Mr McLean's £209,000 cottage in Treovis, near Liskeard, Cornwall. It warns the 46-year-old that he could be arrested and prosecuted."
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So, what is the verdict on this gnome? Take a look and decide.
I say not offensive, definitely not intimidating, but probably irritating. What say you?
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So, what is the verdict on this gnome? Take a look and decide.
I say not offensive, definitely not intimidating, but probably irritating. What say you?
Palin Bags a Bigfoot | Weekly World News
Palin Bags a Bigfoot | Weekly World News
You heard it here first.
You heard it here first.
Saturday, September 20, 2008
Killer's ex-girlfriend may lose house - UPI.com: "CLOVIS, Calif., Sept. 19 (UPI) -- The California woman who became notorious as the girlfriend of convicted wife-killer Scott Peterson may lose her house to foreclosure.
Amber Frey, who testified against Peterson during his 2004 trial, bought a house in Clovis in 2005, taking out a $431,000 mortgage, the Fresno Bee reports. Court records show that in May she owed $16,000 in overdue payments."
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This makes me wonder how Kato Kaelin is doing these days.
Condo owners fear big losses from theft | HeraldTribune.com | Southwest Florida's Information Leader
Condo owners fear big losses from theft | HeraldTribune.com | Southwest Florida's Information Leader: "The condo association's maintenance and savings accounts were allegedly depleted recently by a property manager. Some residents estimate losses total close to $1 million."
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400 owners lost close to $1 million thanks to what looks like yet another instance of property manager embezzlement.
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400 owners lost close to $1 million thanks to what looks like yet another instance of property manager embezzlement.
Condo owners fear big losses from theft | HeraldTribune.com | Southwest Florida's Information Leader
Condo owners fear big losses from theft | HeraldTribune.com | Southwest Florida's Information Leader: "The condo association's maintenance and savings accounts were allegedly depleted recently by a property manager. Some residents estimate losses total close to $1 million."
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400 owners lost close to $1 million thanks to what looks like yet another instance of property manager embezzlement.
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400 owners lost close to $1 million thanks to what looks like yet another instance of property manager embezzlement.
Friday, September 19, 2008
FOXNews.com - Explosive Real Estate: Florida Homes Built Atop WWII Bombing Range - Local News | News Articles | National News | US News
FOXNews.com - Explosive Real Estate: Florida Homes Built Atop WWII Bombing Range : "ORLANDO, Fla. — When residents of several neighborhoods near Orlando International Airport go to bed, they wonder what most homeowners don't: Is there a bomb under my house?
They recently learned their 8-year-old developments were built on a World War II bombing range that wasn't thoroughly cleared. Now they're scared for their lives and investments and angry with developers and local government officials who residents claim shouldn't have allowed the homes in the first place."
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Looks like real estate is booming in Orlando again.
They recently learned their 8-year-old developments were built on a World War II bombing range that wasn't thoroughly cleared. Now they're scared for their lives and investments and angry with developers and local government officials who residents claim shouldn't have allowed the homes in the first place."
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Looks like real estate is booming in Orlando again.
Thursday, September 18, 2008
cbs4denver.com - Metro State Professor Investigated For Palin Essay Assignment
cbs4denver.com - Metro State Professor Investigated For Palin Essay Assignment: "DENVER (CBS4) ― Metro State College is investigating a professor who asked students to write an essay critical of Republican vice presidential candidate Gov. Sarah Palin. One student said the instructor singled out Republican students in the class and allowed others to ridicule them."
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I read this and think, dog bites man. This sort of thing happens every day at most colleges and universities. Don't people know that by now? One in a thousand incidents hits the press and then the administrators fuss over it for public consumption and the next day the faculty is back to business as usual.
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I read this and think, dog bites man. This sort of thing happens every day at most colleges and universities. Don't people know that by now? One in a thousand incidents hits the press and then the administrators fuss over it for public consumption and the next day the faculty is back to business as usual.
California home sales surge as prices plummet
California home sales surge as prices plummet: "LOS ANGELES (AP) - Home sales in California surged 13.6 percent in August as a flood of foreclosures drove down prices. The figures released Thursday by MDA DataQuick showed 37,988 new and preowned homes were sold statewide last month, up 13.6 percent from August 2007 but down 3.8 percent from July. The firm said 46.9 percent of all homes sold last month were foreclosed properties. That helped send the statewide median home price plunging 35.3 percent to $301,000 during the year ended in August. Most of the foreclosed homes were located in inland regions that have taken the worst hits during the housing crisis."
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Maybe this is what the bottom looks like. If so, we have nowhere to go but up.
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Maybe this is what the bottom looks like. If so, we have nowhere to go but up.
Biden: Paying higher taxes patriotic for wealthy - Yahoo! News
Biden: Paying higher taxes patriotic for wealthy - Yahoo! News: "WASHINGTON - Democratic vice presidential candidate Joe Biden said Thursday that paying more in taxes is the patriotic thing to do for wealthier Americans. In a new TV ad that repeats widely debunked claims about the Democratic tax plan, the Republican campaign calls Obama's tax increases 'painful.'"
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Meantime, Obama runs around saying that he isn't going to raise taxes. To wit, yesterday: "If they tell you, 'Well, he's going to raise your taxes,' you say, 'No, he's not, he's going to lower them.'" http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/09/17/politics/p185733D40.DTL&type=politics
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Meantime, Obama runs around saying that he isn't going to raise taxes. To wit, yesterday: "If they tell you, 'Well, he's going to raise your taxes,' you say, 'No, he's not, he's going to lower them.'" http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/09/17/politics/p185733D40.DTL&type=politics
Wednesday, September 17, 2008
Lehman Brothers: The 10 Biggest Chapter 11 Bankruptcies In US History
Lehman Brothers: The 10 Biggest Chapter 11 Bankruptcies In US History: "CNBC has put together a quick slideshow list of the top 10 largest Chapter 11 bankruptcy filings in US history based on the pre-bankruptcy assets of the companies in question. It really gives you a sense of the incredible scale of the Lehman Brothers filing — the next closest bankruptcy was Worldcom, which had $103.9 billion in assets before the filing — 535.1 BILLION DOLLARS less than Lehman Brothers. Damn."
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Damn, indeed. The $639 million bankruptcy of Lehman Brothers is SIX TIMES the size of the largest previous bankruptcy ever.
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Damn, indeed. The $639 million bankruptcy of Lehman Brothers is SIX TIMES the size of the largest previous bankruptcy ever.
City uses DNA to fight dog poop | Lifestyle | Reuters
City uses DNA to fight dog poop | Lifestyle | Reuters: "PETAH TIKVA, Israel (Reuters) - An Israeli city is using DNA analysis of dog droppings to reward and punish pet owners. Under a six-month trial programme launched this week, the city of Petah Tikva, a suburb of Tel Aviv, is asking dog owners to take their animal to a municipal veterinarian, who then swabs its mouth and collects DNA. The city will use the DNA database it is building to match faeces to a registered dog and identify its owner. Owners who scoop up their dogs' droppings and place them in specially marked bins on Petah Tikva's streets will be eligible for rewards of pet food coupons and dog toys."
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I was under the impression that the nation of Israel had problems more pressing than unidentified dog poop, but apparently I was misinformed. I would think, though, that many an American gated community will adopt this policy.
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I was under the impression that the nation of Israel had problems more pressing than unidentified dog poop, but apparently I was misinformed. I would think, though, that many an American gated community will adopt this policy.
Stupid banks making stupid loans - : "The key thing to remember here is that the emphasis belongs on the word financial. The economy is not the problem; lousy lending standards and the excessive use of leverage are the problem. Gales of punitive destruction are knocking down one investment bank after another, while gales of creative destruction continue to move the economy forward. In fact, real gross domestic product (GDP) has grown 2.2 percent in the past year and accelerated to a 3.3 percent growth rate in the second quarter."
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I agree with that. I'm no economist, but it looks to me as though we have a reasonably OK economy. The problem is in the twisted relationship among government, mortgage banking, and the housing industry. Since the mid 1990s government has been pressuring banks large and small to lend money to people, especially so they can buy houses they otherwise would not be able to afford. Low interest rates, weird mortgage arrangements, subsidies, mortgage insurance, relaxed government oversight, mortgage securities, REITs, you name it. Money was flowing everywhere and government was totally supportive of that. They did this to prop up the economy and because the Clinton administration was adamant that poor people should own their own homes, which is a crazy idea in my book (but that is another story). We ended up with this widespread notion that money was cheap and real estate prices were going to go up forever, so buy above your means and cash in before you go broke, and you couldn't lose. You could sell anytime you wanted. Rich and poor alike were doing it. That bubble popped, as it had to eventually, and the trouble started with those borrowers, then spread to the banks who made the loans, and now to whoever has an interest in the banks.
All that is bad, but it isn't the end of the world, and it doesn't mean we need a socialist revolution.
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I agree with that. I'm no economist, but it looks to me as though we have a reasonably OK economy. The problem is in the twisted relationship among government, mortgage banking, and the housing industry. Since the mid 1990s government has been pressuring banks large and small to lend money to people, especially so they can buy houses they otherwise would not be able to afford. Low interest rates, weird mortgage arrangements, subsidies, mortgage insurance, relaxed government oversight, mortgage securities, REITs, you name it. Money was flowing everywhere and government was totally supportive of that. They did this to prop up the economy and because the Clinton administration was adamant that poor people should own their own homes, which is a crazy idea in my book (but that is another story). We ended up with this widespread notion that money was cheap and real estate prices were going to go up forever, so buy above your means and cash in before you go broke, and you couldn't lose. You could sell anytime you wanted. Rich and poor alike were doing it. That bubble popped, as it had to eventually, and the trouble started with those borrowers, then spread to the banks who made the loans, and now to whoever has an interest in the banks.
All that is bad, but it isn't the end of the world, and it doesn't mean we need a socialist revolution.
FEDS TRY TO FIND A BUYER FOR WAMU - New York Post
FEDS TRY TO FIND A BUYER FOR WAMU - New York Post: "The fate of Washington Mutual remained in question yesterday as federal regulators recently called a number of banks asking if they would consider buying the nation's largest savings and loan should it eventually falter, sources told The Post. In recent days, federal banking regulators have reached out to Wells Fargo, JPMorgan Chase, HSBC and several other financial institutions to gauge their interest in a possible acquisition of WaMu, but no merger discussions are currently under way between the Seattle-based bank and anyone else, sources said. The move comes as investors worry that WaMu's customers could begin pulling their money, which totals about $143 billion, out of the bank should its stock fall further."
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Remember when WAMU was all over the place extending credit to anybody who wanted it? I never saw such aggressive marketing of loans in my life. Now it is, "Hey, does anybody want to buy this company? Hello?? Anybody???"
Oh, sure. Just put a big federal guarantee on it first, why don't you?
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Remember when WAMU was all over the place extending credit to anybody who wanted it? I never saw such aggressive marketing of loans in my life. Now it is, "Hey, does anybody want to buy this company? Hello?? Anybody???"
Oh, sure. Just put a big federal guarantee on it first, why don't you?
Coppell resident locks horns with homeowners association over Obama yard signs 7:48 AM CT | News for Dallas, Texas | Dallas Morning News | Latest News
Coppell resident locks horns with homeowners association over Obama yard signs: Texas: "Surely, he figured, his Coppell homeowners association couldn’t force him to pull up his small yard signs supporting Democratic presidential nominee Barack Obama.
He didn’t know it at the time, but a 3-year-old state law prohibits associations from enforcing outright bans on reasonably sized political signs.
Still, less than a month later, Mr. Graupner was told that his signs violated a homeowners association rule. He got a letter threatening at least $200 in fines if the two signs in his flower bed didn’t come up."
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First, you shouldn't need a law to keep associations from banning political signs. That should be your right and associations should never have this power anyway. But now you see them banning the signs, notwithstanding the law, and that highlights the second major problem with associations: when they don't follow the law, which is commonplace, it is incredibly hard to do anything about it.
Watch all these housing industry related financial meltdowns, and then tell me our state and national legislators have the slightest idea what they are doing. They turned the whole thing over to the industry long ago. It is privatization of the policy making process itself.
Thanks to Chris Casey for this link.
He didn’t know it at the time, but a 3-year-old state law prohibits associations from enforcing outright bans on reasonably sized political signs.
Still, less than a month later, Mr. Graupner was told that his signs violated a homeowners association rule. He got a letter threatening at least $200 in fines if the two signs in his flower bed didn’t come up."
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First, you shouldn't need a law to keep associations from banning political signs. That should be your right and associations should never have this power anyway. But now you see them banning the signs, notwithstanding the law, and that highlights the second major problem with associations: when they don't follow the law, which is commonplace, it is incredibly hard to do anything about it.
Watch all these housing industry related financial meltdowns, and then tell me our state and national legislators have the slightest idea what they are doing. They turned the whole thing over to the industry long ago. It is privatization of the policy making process itself.
Thanks to Chris Casey for this link.
Tuesday, September 16, 2008
AIG: Too big to fail: "Sept. 16 (Bloomberg) -- American International Group Inc., the biggest U.S. insurer by assets, has been offered an $85 billion U.S. loan in return for an 80 percent stake in the company, according to a person familiar with the situation.
The Federal Reserve was persuaded to offer the loan because of the risk that an AIG failure would threaten the stability of world financial markets, according to the person, who declined to be identified because negotiations were confidential. Efforts to find a private-sector solution failed because the company is too big and a long-term fix was needed, the person said.
The agreement keeps New York-based AIG in business, averting a collapse that could have threatened more financial companies and cost them $180 billion in losses, according to RBC Capital Markets. AIG needed the rescue to stave off a collapse after its credit ratings were cut and shares plunged 79 percent since Sept. 11.
``There's a systemic risk if AIG isn't saved,'' Benoit de Broissia, an equity analyst at Richelieu Finance in Paris, said in a Bloomberg Television interview. Richelieu has about $6.2 billion under management."
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AIG is enormous, and I understand with $180 billion at stake "the stability of world financial markets" can be on the table if it fails. But how do you top this? Is the sun going to go out? Will the galactic core collapse on itself?
HOA Q&A: 'Private' areas must obey law
HOA Q&A: 'Private' areas must obey law: "Question: I live in a gated community. Recently, the board sent a letter to all homeowners saying city and county ordinances do not apply to our neighborhood because we are a 'private' community. I don't believe this is true. Who is right?"
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Ah, yes. Gilbert, AZ, where an HOA director can really get expansive and throw his/her weight around.
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Ah, yes. Gilbert, AZ, where an HOA director can really get expansive and throw his/her weight around.
Jamie Gorelick, Mistress of Disaster
Jamie Gorelick, Mistress of Disaster: "It's not often that one person plays key roles in two -- count 'em, two -- trillion-dollar disasters. Welcome, my friends, to the world of well-connected Democrat Jamie Gorelick."
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Worth reading. She was the power behind the scenes in the Janet Reno Justice Department and created the "wall" that kept intelligence and law enforcement from cooperating pre-9/11. Then she sat as a member of the 9/11 Commission that investigated why 9/11 wasn't foreseen. Conflict of interest? Not for her. She just sat there and brazened it out.
Then she resurfaced as vice chairman of Fannie Mae, and presided over its meltdown while saying everything was fine and making over $26 million.
What do you bet she ends up on the commission investigating the collapse of Fannie Mae?
To complete the trifecta, I could envision her being Obama's Attorney General. Then after that she could investigate how they lost the case of US v. Osama Bin Laden.
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Worth reading. She was the power behind the scenes in the Janet Reno Justice Department and created the "wall" that kept intelligence and law enforcement from cooperating pre-9/11. Then she sat as a member of the 9/11 Commission that investigated why 9/11 wasn't foreseen. Conflict of interest? Not for her. She just sat there and brazened it out.
Then she resurfaced as vice chairman of Fannie Mae, and presided over its meltdown while saying everything was fine and making over $26 million.
What do you bet she ends up on the commission investigating the collapse of Fannie Mae?
To complete the trifecta, I could envision her being Obama's Attorney General. Then after that she could investigate how they lost the case of US v. Osama Bin Laden.
'Global warming' Gore attracts heat | www.tennessean.com | The Tennessean
'Global warming' Gore attracts heat | www.tennessean.com | The Tennessean: "His large Nashville home, utility bills and jet travels have drawn flamethrowers over the last year and a half. Now, it's a houseboat he bought this summer."
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Come on. It's only 100 feet long. Nobel laureates need giant boats to save the planet and stuff, sort of like Dr. Xavier and X-Men.
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Come on. It's only 100 feet long. Nobel laureates need giant boats to save the planet and stuff, sort of like Dr. Xavier and X-Men.
Suburban mums taking ecstasy | The Courier-Mail
Suburban mums taking ecstasy | The Courier-Mail
Didn't the Stones do a song about this? "Here it comes...here it comes...here it comes...here comes your 19th nervous breakdown."
Didn't the Stones do a song about this? "Here it comes...here it comes...here it comes...here comes your 19th nervous breakdown."
D052402.PDF (application/pdf Object)
California Appellate Court finds CC&R provision unconscionable
CAI stalwart Jon Epsten wins on appeal by arguing on behalf of an HOA that the waiver of jury trial against the developer contained in the CC&Rs was unconscionable.
Does that mean owners will win using the same arguments of unconscionability when the CC&Rs take away their rights? Don't count on it. There is so much judicial protection of associations going on now that it is like watching the Chicago Tribune cover for Barack Obama.
Thanks to Fred Pilot for this alert.
CAI stalwart Jon Epsten wins on appeal by arguing on behalf of an HOA that the waiver of jury trial against the developer contained in the CC&Rs was unconscionable.
Does that mean owners will win using the same arguments of unconscionability when the CC&Rs take away their rights? Don't count on it. There is so much judicial protection of associations going on now that it is like watching the Chicago Tribune cover for Barack Obama.
Thanks to Fred Pilot for this alert.
Monday, September 15, 2008
www.MyRecordJournal.com - Condo buyout notice is sudden shock
www.MyRecordJournal.com - Condo buyout notice is sudden shock: "'Please be advised that I represent 665 Foxon Road, LLC, the owner of over 80 percent of the units at Parker Place Condominiums. It is probably not a secret that my client would like to and intends to acquire all of the remaining units, including the unit owned by you. ... (A)s an owner of 80 percent of the units, my client can accomplish this without your cooperation or that of any other unit owner. The Common Interest Ownership Act, as adopted by the State of Connecticut allows the condominium to be terminated and all units purchased at fair market value, by a vote of 80 percent of the unit owners, which my client already has.'"
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How would you like to get that letter in the mail? It is like a sort of private eminent domain, authorized by Connecticut law.
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How would you like to get that letter in the mail? It is like a sort of private eminent domain, authorized by Connecticut law.
Sunday, September 14, 2008
Bloomberg.com: Worldwide
Bloomberg.com: Worldwide: "Sept. 14 (Bloomberg) -- Wall Street readied for a potential Lehman Brothers Holdings Inc. bankruptcy after Bank of America Corp. and Barclays Plc pulled out of talks to buy it and the government indicated it wouldn't provide funds to prevent a collapse."
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I realize this isn't as important as the fact that Sarah Palin didn't know which Bush Doctrine Charlie Gibson was referring to (neither did I until he said it was the one about anticipatory self defense) but it seems that we are about to see another major financial firm collapse in a smoldering heap.
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I realize this isn't as important as the fact that Sarah Palin didn't know which Bush Doctrine Charlie Gibson was referring to (neither did I until he said it was the one about anticipatory self defense) but it seems that we are about to see another major financial firm collapse in a smoldering heap.
Eating veggies shrinks the brain-Health/Sci-The Times of India: "MELBOURNE: Scientists have discovered that going veggie could be bad for your brain-with those on a meat-free diet six times more likely to suffer brain shrinkage."
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I think this explains a lot about American politics from the 1960s to the present, but I will let you fill in the blanks. That's a self-test, because if you can't fill in the blanks you are probably not eating enough meat.
Friday, September 12, 2008
Antarctic sea ice increases despite warming - earth - 12 September 2008 - New Scientist Environment
Antarctic sea ice increases despite warming - earth - 12 September 2008 - New Scientist Environment: "The amount of sea ice around Antarctica has grown in recent Septembers in what could be an unusual side-effect of global warming, experts say."
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No matter what happens, it supports the global warming theory. Hot weather, cold weather, more ice, less ice...big storms, small storms...whatever. The debate is over and that's that. I suppose that is true in the sense that most of the public is no longer listening to the global warming alarmists. Their last stronghold is the public school systems, where the environmentalist brainwashing kids are subjected to is astounding. It is no wonder so many kids are depressed. They keep hearing that the world is ending. With my generation is was the fear of nuclear war, but at least we were told we could duck and cover under our desks.
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No matter what happens, it supports the global warming theory. Hot weather, cold weather, more ice, less ice...big storms, small storms...whatever. The debate is over and that's that. I suppose that is true in the sense that most of the public is no longer listening to the global warming alarmists. Their last stronghold is the public school systems, where the environmentalist brainwashing kids are subjected to is astounding. It is no wonder so many kids are depressed. They keep hearing that the world is ending. With my generation is was the fear of nuclear war, but at least we were told we could duck and cover under our desks.
Thursday, September 11, 2008
The Friday Flyer, September 12, 2008 - Article: Council candidates answer questions on their campaign
The Friday Flyer, September 12, 2008 - Article: Council candidates answer questions on their campaign: "Carl Armbrust: My campaign platform is to maintain the economic viability of Canyon Lake and its continued existence as a gated community."
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That is every single word of the campaign platform of a candidate for the City Council of Canyon Lake, CA, which is in Riverside County. Pretty simple, I'd say. In answer to another question, he elaborated as follows: "I want to ensure that Canyon Lake remains the paradise I believe it to be," by which I think he may have been referring to that whole "gated community" thing.
You will find that the other candidates had a bit more to say about other mundane issues such as development, city revenues, fiscal responsibility, open government, and a few other minor matters. Busybodies!
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That is every single word of the campaign platform of a candidate for the City Council of Canyon Lake, CA, which is in Riverside County. Pretty simple, I'd say. In answer to another question, he elaborated as follows: "I want to ensure that Canyon Lake remains the paradise I believe it to be," by which I think he may have been referring to that whole "gated community" thing.
You will find that the other candidates had a bit more to say about other mundane issues such as development, city revenues, fiscal responsibility, open government, and a few other minor matters. Busybodies!
islandpacket.com | Island fourth grader suspended for using broken pencil sharpener
islandpacket.com | Island fourth grader suspended for using broken pencil sharpener: "A 10-year-old Hilton Head Island boy has been suspended from school for having something most students carry in their supply boxes: a pencil sharpener.The problem was his sharpener had broken, but he decided to use it anyway. A teacher at Hilton Head Island International Baccalaureate Elementary School noticed the boy had what appeared to be a small razor blade during class on Tuesday, according to a Beaufort County sheriff's report. It was obvious that the blade was the metal insert commonly found in a child's small, plastic pencil sharpener, the deputy noted. The boy -- a fourth-grader described as a well-behaved and good student -- cried during the meeting with his mom, the deputy and the school's assistant principal. He had no criminal intent in having the blade at school, the sheriff's report stated, but was suspended for at least two days and could face further disciplinary action."
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Anybody who thinks that utter and complete stupidity is the province of HOA and condo boards hasn't spent enough time looking at what public school officials do every day. School vouchers, anybody?
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Anybody who thinks that utter and complete stupidity is the province of HOA and condo boards hasn't spent enough time looking at what public school officials do every day. School vouchers, anybody?
The Next Little Thing? - NYTimes.com
The Next Little Thing? - NYTimes.com: "Mr. Janzen has become interested in the small house movement, whose adherents believe in minimizing one’s footprint — structural as well as carbon — by living in spaces that are smaller than 1,000 square feet and, in some cases, smaller than 100. Tiny houses have been a fringe curiosity for a decade or more, but devotees believe the concept’s time has finally arrived."
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The New York Times has discovered a nonexistent trend. The "small house movement..has finally arrived"? I think not.
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The New York Times has discovered a nonexistent trend. The "small house movement..has finally arrived"? I think not.
Tuesday, September 09, 2008
SPORTSbyBROOKS » LA Rejoices As Scully Says He’ll Be Back In 2009
SPORTSbyBROOKS » LA Rejoices As Scully Says He’ll Be Back In 2009: "And now this news from the LA TIMES: legendary announcer Vin Scully says that he’ll be back next year for his 60th season of Dodger broadcasts."
Best baseball announced who ever lived. Way to go Vinny.
Best baseball announced who ever lived. Way to go Vinny.
Hunting season brings gunfire to quiet suburbs | Houston & Texas News | Chron.com - Houston Chronicle: "DALLAS — Reports of gunfire bombarded 911 centers in the typically peaceful northern suburbs of Dallas last week. The shots rang in the start of hunting season — which, as many surprised North Texas families are learning, is legal in their rural cities under a 2005 state law. Police in cities like McKinney say they're now trying to educate neighbors about the right hunters have to fire shotguns or rifles under certain conditions, at the same time planning to lobby state lawmakers next year to tighten the rules."
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Yee haw. I like hunting and shooting as well as the next fellow, but I don't think I want to be cleaning shotgun pellets out of my rain gutters.
Washington Wire - WSJ.com : Ron Paul Plans 'Special Announcement': "Rep. Ron Paul, the former Republican presidential candidate who excited a multitude of young voters during the primaries, announced a “major” news conference in Washington Wednesday."
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I imagine legions of Ronulans booking a last-minute flight to DC National right now. In the morning they will emerge from their parents' basements like a swarm of cicadas and head for the airport. And history will be made by The Ron.
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I imagine legions of Ronulans booking a last-minute flight to DC National right now. In the morning they will emerge from their parents' basements like a swarm of cicadas and head for the airport. And history will be made by The Ron.
HOA Wants Man To Tear Down Home Rebuilt After Airplane Crash - Orlando News Story - WKMG Orlando
HOA Wants Man To Tear Down Home Rebuilt After Airplane Crash - Orlando News Story - WKMG Orlando: "SANFORD, Fla. -- A Sanford man whose wife and son were killed when an airplane crashed into their home may have to tear down his rebuilt house because a homeowners' association said he is breaking their rules.
Joe Woodard's wife and son were killed in the July 2007 crash, and he's been building a new home on the same lot for the past year."
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They don't like the shingles, and the house extends a few feet farther back than they allow. They want him to rebuild exactly what he had before the crash. He doesn't want a reminder of the place he used to share with his wife and son.
You can't make things up that top what associations really do. People used to say, "Would your mother be proud of you if she knew what you are doing?" But questions like that assume that people are capable of feeling shame, which it seems not everybody is, these days.
Joe Woodard's wife and son were killed in the July 2007 crash, and he's been building a new home on the same lot for the past year."
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They don't like the shingles, and the house extends a few feet farther back than they allow. They want him to rebuild exactly what he had before the crash. He doesn't want a reminder of the place he used to share with his wife and son.
You can't make things up that top what associations really do. People used to say, "Would your mother be proud of you if she knew what you are doing?" But questions like that assume that people are capable of feeling shame, which it seems not everybody is, these days.
Sunday, September 07, 2008
CATS: ALL YOUR MORTGAGE ARE BELONG TO US!!! Government takes control of Fannie Mae and Freddie Mac: "WASHINGTON - The Bush administration’s seizure of troubled mortgage giants Fannie Mae and Freddie Mac is potentially a $200 billion bet that it will help reverse a prolonged housing and credit crisis.
The historic move announced Sunday won support from both presidential campaigns, but private analysts worried that it may not be enough to stabilize the slumping housing market given the glut of vacant homes for sale, rising foreclosures, rising unemployment and weak consumer confidence.
Officials announced that both giant institutions were being placed in a government conservatorship, a move that could end up costing taxpayers billions of dollars...The companies, which together own or guarantee about $5 trillion in home loans, about half the nation’s total, have lost $14 billion in the last year and are likely to pile up billions more in losses until the housing market begins to recover.
The Treasury Department said it was prepared to put up as much as $100 billion over time in each of the companies if needed to keep them from going broke, in exchange for senior preferred stock."
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I think we can call this a massive deprivatization in the sense that Fannie Mae and Freddie Mac are no longer being operated as private companies. To say it "could" cost taxpayers "billions of dollars" is merely stating the obvious. Undoubtedly it will cost billions. If we start talking about what it"could" cost, think in terms of hundreds of billions. And this bailout gives the federal government more control over the housing market than they may know how to handle, if you ask me. I realize they had to do something because shares in these companies had plummeted from around $70 per share to about 5 bucks, and there was no end in sight. But I don't see this as a rescue. I see it is a desperation measure. The real fix here is for the housing market to level off, and I hope that the feds can make that happen, now that they have half of its value in their hands.
Free Real Estate Articles » Real Estate Values Fall As Home Owner Associations Avoid Insurance Liabilities
First time I've heard of this. The author says associations are getting rid of swing sets and playgrounds so they don't have to pay so much for liability insurance, but in doing so they reduce the value of the properties.
MINI gets into fight with gated community on Flickr - Photo Sharing!
MINI gets into fight with gated community on Flickr - Photo Sharing!
From the photo I would give this round to the gate.
From the photo I would give this round to the gate.
Democratic National Convention - Yahoo! News Photos
Democratic National Convention - Yahoo! News Photos
I wonder if we will be seeing this photo a lot between now and the election. Check out the bottom right corner...that object lying on the floor next to Biden's foot.
I wonder if we will be seeing this photo a lot between now and the election. Check out the bottom right corner...that object lying on the floor next to Biden's foot.
Saturday, September 06, 2008
World's deadliest spider discovered in Britain inside a box of Tesco bananas | Mail Online: "The world's deadliest spider forced a supermarket to close after a terrified worker spotted it under a box of bananas.
The highly-venomous Brazilian Wandering Spider - a species responsible for killing more people than any other arachnid - was eventually captured by RSPCA officers.
Victims usually die within an hour of being bitten by the spider, which has a 4in leg-span and is listed in the Guinness Book of World Records as the planet's most venomous animal."
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Take a look at the ugly mug on this guy. It's enough to make you swear off bananas.
Daily Herald | Council to weigh in on host of home association issues
Daily Herald | Council to weigh in on host of home association issues: "As some of the readers of this column may be aware, in early 2008 I was appointed by the Illinois legislature as chairman of the Condominium Advisory Council, consisting of two other laypeople (Shelli Lulkin and George Panagakis) and four legislators (Reps. Harry Osterman and Angelo 'Skip' Saviano, and Sens. Pam Althoff and Mattie Hunter). Our engagement is to advise the legislature as to necessary changes and new laws needed to improve the quality of life of residents of condominium and homeowners associations."
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This is a column by Buffalo Grove attorney Jordan Shifrin explaining the task of the Condominium Advisory Council, which he chairs. He explains what issues he thinks are important and how to have some input into their deliberations. Well worth reading. I have always found Jordan to be a voice of reason, so I think he is a good choice for this position.
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This is a column by Buffalo Grove attorney Jordan Shifrin explaining the task of the Condominium Advisory Council, which he chairs. He explains what issues he thinks are important and how to have some input into their deliberations. Well worth reading. I have always found Jordan to be a voice of reason, so I think he is a good choice for this position.
Friday, September 05, 2008
Bloomberg.com: Worldwide
Bloomberg.com: Worldwide: "Sept. 5 (Bloomberg) -- Foreclosures accelerated to the fastest pace in almost three decades during the second quarter as interest rates increased and home values fell, prompting more Americans to walk away from homes they couldn't refinance or sell.
New foreclosures increased to 1.19 percent, rising above 1 percent for the first time in the survey's 29 years, the Mortgage Bankers Association said in a report today. The total inventory of homes in foreclosure reached 2.75 percent, almost tripling since the five-year housing boom ended in 2005. The share of loans with one or more payments overdue rose to a seasonally adjusted 6.41 percent of all mortgages, an all-time high, from 6.35 percent in the first quarter."
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New foreclosures increased to 1.19 percent, rising above 1 percent for the first time in the survey's 29 years, the Mortgage Bankers Association said in a report today. The total inventory of homes in foreclosure reached 2.75 percent, almost tripling since the five-year housing boom ended in 2005. The share of loans with one or more payments overdue rose to a seasonally adjusted 6.41 percent of all mortgages, an all-time high, from 6.35 percent in the first quarter."
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BBC NEWS | UK | Northern Ireland | Wilson row over green 'alarmists'
BBC NEWS | UK | Northern Ireland | Wilson row over green 'alarmists': "The Environment Minister Sammy Wilson has angered green campaigners by describing their view on climate change as a 'hysterical psuedo-religion'."
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Paging Al "The Debate is Over" Gore.
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Paging Al "The Debate is Over" Gore.
Mark Hemingway on Community Organizing on National Review Online
Mark Hemingway on Community Organizing on National Review Online: "Obama spent three years in housing projects in Chicago and — according to his book, Dreams of My Father — even he couldn’t explain what he was doing. “When classmates in college asked me just what it was that a community organizer did, I couldn’t answer them directly,” Obama wrote. Indeed, who could say what a community organizer does?"
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Sarah Palin's devastating comment that a small town mayor is sort of like a community organizer, except with actual responsibilities, has caused the Obama campaign to squirt blood from its collective ears in rage. But I think she has a point. If you have a mayor and city council who listen to your problems, why would you need a community organizer? The fact is, these folks are essentially trying to duplicate the roles of elected officials and in most cases undermine them.
I have met many community organizers over the years and I know what they do. They are overwhelmingly socialists or at least far to the left. Their activities are mainly of the "politics of protest" variety. Read the bible of their icon, Saul Alinsky, who wrote "Rules for Radicals." Their work mainly consists of trying to get ordinary people angry at the government and business institutions in their neighborhoods, and using that manufactured discontent to disrupt those institutions enough to force concessions from them. Those victories give the community organizers credibility that they try to leverage into a permanent power base. Community organizers also get involved in local politics. Some community organizers use their power base to run for elective office themselves. Give me a minute and I'll think of an example...
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Sarah Palin's devastating comment that a small town mayor is sort of like a community organizer, except with actual responsibilities, has caused the Obama campaign to squirt blood from its collective ears in rage. But I think she has a point. If you have a mayor and city council who listen to your problems, why would you need a community organizer? The fact is, these folks are essentially trying to duplicate the roles of elected officials and in most cases undermine them.
I have met many community organizers over the years and I know what they do. They are overwhelmingly socialists or at least far to the left. Their activities are mainly of the "politics of protest" variety. Read the bible of their icon, Saul Alinsky, who wrote "Rules for Radicals." Their work mainly consists of trying to get ordinary people angry at the government and business institutions in their neighborhoods, and using that manufactured discontent to disrupt those institutions enough to force concessions from them. Those victories give the community organizers credibility that they try to leverage into a permanent power base. Community organizers also get involved in local politics. Some community organizers use their power base to run for elective office themselves. Give me a minute and I'll think of an example...
Cats on a bank-owned roof: Bobcats claim foreclosed house | L.A. Land | Los Angeles Times: "A postcard from Lake Elsinore: 'Taking advantage of a slump in local real estate, a family of bobcats has moved into a foreclosed Lake Elsinore home, lolling about on fences and walls and riveting an entire neighborhood.'"
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Meow. Somebody call the HOA.
Associations see foreclosures, renters as pressing issues -- chicagotribune.com
Associations see foreclosures, renters as pressing issues -- chicagotribune.com: "What's on the minds of community association residents these days? Foreclosures, renters, secretive boards and sloppy managers are high on a long list.
That's what they told the Illinois Condominium Advisory Council at a recent public hearing in Naperville.
The council has been assigned the task of identifying major challenges to associations and making recommendations for legislative change to the General Assembly. Made up of lawmakers and association veterans, the council is conducting a series of public hearings around the state before preparing its report by year's end."
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Illinois doesn't have an active owners' rights organization that I know of, as they do in California, Nevada, Arizona, New Jersey, Maryland, Virginia, Florida, Texas...well, you get the idea. I wonder if the way assessments are collected is the reason. Here there is no non-judicial foreclosure, and we have statutory authority for condos and HOAs to collect overdue assessments using eviction court. The owner stands to lose possession instead of ownership.
That's what they told the Illinois Condominium Advisory Council at a recent public hearing in Naperville.
The council has been assigned the task of identifying major challenges to associations and making recommendations for legislative change to the General Assembly. Made up of lawmakers and association veterans, the council is conducting a series of public hearings around the state before preparing its report by year's end."
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Illinois doesn't have an active owners' rights organization that I know of, as they do in California, Nevada, Arizona, New Jersey, Maryland, Virginia, Florida, Texas...well, you get the idea. I wonder if the way assessments are collected is the reason. Here there is no non-judicial foreclosure, and we have statutory authority for condos and HOAs to collect overdue assessments using eviction court. The owner stands to lose possession instead of ownership.
Wednesday, September 03, 2008
Homeowner associations in disrepute | www.azstarnet.com ®
Homeowner associations in disrepute | www.azstarnet.com ®: "Across the United States, homeowner associations are falling into disrepute. People hate them. But what's the alternative?
Most planned communities include common areas and amenities like swimming pools, tennis courts and clubhouses, all of which must be maintained. Somebody has to hire tradesmen, pay the bills and maintain standards. And who better than the residents themselves?
In theory, it's a great idea. Unfortunately, it no longer seems to work in practice — if it ever did."
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Fred Pilot forwarded this piece, written by an HOA officer from Arizona. I imagine some law firm will draft a response to protect the rice bowl.
Most planned communities include common areas and amenities like swimming pools, tennis courts and clubhouses, all of which must be maintained. Somebody has to hire tradesmen, pay the bills and maintain standards. And who better than the residents themselves?
In theory, it's a great idea. Unfortunately, it no longer seems to work in practice — if it ever did."
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Fred Pilot forwarded this piece, written by an HOA officer from Arizona. I imagine some law firm will draft a response to protect the rice bowl.
Tuesday, September 02, 2008
Republicans propose borrowing, cuts to balance California budget - Los Angeles Times
Republicans propose borrowing, cuts to balance California budget - Los Angeles Times: "Among the bills given final approval by the Senate was a hard-fought, complex measure by Sen. Darrell Steinberg (D-Sacramento) that aims to spur future growth in California in ways that reduce commute times and greenhouse gas emissions.
The bill, SB 375, links regional greenhouse gas reduction goals to transit funding to discourage local governments from approving far-flung subdivision developments. It won the support of environmentalists and the building industry. The Senate passed the measure 25 to 14.
Sen. Tom McClintock, a Republican from Thousand Oaks who voted against the measure, likened it to centralized Soviet planning. He said it would force people to live in urban cores near train stations.
'Most people prefer the quiet, tree-shaded neighborhood,' said McClintock."
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Fred Pilot sent this link to a report on recent measures passed by the California senate. This one is an anti-sprawl measure. I wonder what happens to demand for California housing when instead of the California Dream house in the suburbs you get an urban apartment.
The bill, SB 375, links regional greenhouse gas reduction goals to transit funding to discourage local governments from approving far-flung subdivision developments. It won the support of environmentalists and the building industry. The Senate passed the measure 25 to 14.
Sen. Tom McClintock, a Republican from Thousand Oaks who voted against the measure, likened it to centralized Soviet planning. He said it would force people to live in urban cores near train stations.
'Most people prefer the quiet, tree-shaded neighborhood,' said McClintock."
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Fred Pilot sent this link to a report on recent measures passed by the California senate. This one is an anti-sprawl measure. I wonder what happens to demand for California housing when instead of the California Dream house in the suburbs you get an urban apartment.
Monday, September 01, 2008
Some bugging out over 'killer' wasps -- themorningcall.com: "The female cicada killer digs a hole about three quarters of an inch wide and about two feet deep and goes hunting for cicadas. After catching a bug and stinging it with paralyzing venom, the cicada killer pulls it into the hole, lays an egg on it and waits for her babies to emerge and munch on the powerless, still-paralyzed cicada."
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That's what they do when they aren't busy chasing exterminators across the lawn and down the street. Those things are huge.
What properties is Paul Hogan hiding? | The Daily Telegraph
What properties is Paul Hogan hiding? | The Daily Telegraph: "AUSTRALIAN Crime Commission target Paul Hogan has gone to great lengths to keep his fortune a secret - with his multi-million dollar US property portfolio hidden in a complicated web of private trusts, Hollywood lawyers, agents and accountants.
Hogan's American mansions have been squirelled away in a secret trust account that the Crocodile Dundee star named Brentwood-Westridge Trust - after the street (Westridge) and upmarket Los Angeles neighbourhood (Brentwood) where he and wife Linda Kozlowski once lived."
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Slip another mansion on the barbie.
Hogan's American mansions have been squirelled away in a secret trust account that the Crocodile Dundee star named Brentwood-Westridge Trust - after the street (Westridge) and upmarket Los Angeles neighbourhood (Brentwood) where he and wife Linda Kozlowski once lived."
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Slip another mansion on the barbie.
Association cuts down Kihei man’s attempt to conserve water with artificial Grass - Maui News
Association cuts down Kihei man’s attempt to conserve water with artificial Grass - Maui News: "KIHEI - When Maui County asked South Maui consumers to cut back on water use, homeowner Wolfgang Bayer replaced his front lawn with artificial grass estimating it will save 20,000 gallons of water a year. But he did not submit a landscaping plan and get approvals first from the Kilohana Ridge Homeowners Association. The association issued a notice of violation with a $100 fine. 'I felt what I was doing was the right thing. I wanted to make a point. I agreed to be the guinea pig and go and get this done,' Bayer said. Association President Connie Lappin said it's not a problem of saving water but of following association rules and submitting plans. 'Any project of any scope requires approval,' she said."
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Bed-Stuy Banana: Satans Demonic Daughter and the Block Association: "The Head of the Block Association 'Satan's' demonic daughter, Numerous times for years walks her dog leaving Urine + Stool in Front of My Home. Your a Noise, 'Gossiping,' hateful, Evil, Jealous lying, Orthopedic 'PHONY HYPOCRITE.'"
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But on the bright side, you can be Satan's demonic daughter and still be allowed to join the block association. Can't accuse them of discrimination.
Saturday, August 30, 2008
Condo foreclosures hurt others, too - Mortgage Mess- msnbc.com
Condo foreclosures hurt others, too - Mortgage Mess- msnbc.com: "When too many condominium owners lose their units to foreclosure, condo associations feel the financial pain. That's bad news for homeowners and real estate investors who depend on these associations to take care of building maintenance, property insurance, utilities, landscaping and other amenities that are shared in common."
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Nice to see the media catching on to this situation at long last.
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Nice to see the media catching on to this situation at long last.
Changes may bring dark days for condos - Jacksonville Business Journal:
Changes may bring dark days for condos - Jacksonville Business Journal:
This goes back to May. I heard about it this morning on Common Interest Radio, CAI's program that is broadcast on WIND-560 AM here in Chicago. This is a bombshell that I missed when it happened:
NORTHEAST FLORIDA -- Changes in the underwriting standards of mortgage giant Fannie Mae have caused lenders to look more closely at condominiums and the companies that manage them, often resulting in more rejections of mortgage applications. The new lending requirements imposed by one of the nation's largest buyers in the secondary mortgage market have bled through to lenders' requests from condo management companies in the form of additional lines on questionnaires and legal document requirements. Lenders wanting to sell bundles of mortgages are further scrutinizing association reserves, investor occupancy ratios and the number of past-due loans in the complex. One wrong answer that results in a higher risk to the lender can mean a loan is rejected.
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The guests on Common Interest Radio are saying that this will make it impossible for many associations to borrow, and for many buyers to get loans. If Fannie Mae won't buy the loan, many lenders won't lend. It will be a lot of work for association boards, and if they don't do it right they don't get the loan. Basically, Fannie Mae is making the lender hold the association to much higher standards.
This means harder times for associations, especially those that are already in trouble.
This goes back to May. I heard about it this morning on Common Interest Radio, CAI's program that is broadcast on WIND-560 AM here in Chicago. This is a bombshell that I missed when it happened:
NORTHEAST FLORIDA -- Changes in the underwriting standards of mortgage giant Fannie Mae have caused lenders to look more closely at condominiums and the companies that manage them, often resulting in more rejections of mortgage applications. The new lending requirements imposed by one of the nation's largest buyers in the secondary mortgage market have bled through to lenders' requests from condo management companies in the form of additional lines on questionnaires and legal document requirements. Lenders wanting to sell bundles of mortgages are further scrutinizing association reserves, investor occupancy ratios and the number of past-due loans in the complex. One wrong answer that results in a higher risk to the lender can mean a loan is rejected.
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The guests on Common Interest Radio are saying that this will make it impossible for many associations to borrow, and for many buyers to get loans. If Fannie Mae won't buy the loan, many lenders won't lend. It will be a lot of work for association boards, and if they don't do it right they don't get the loan. Basically, Fannie Mae is making the lender hold the association to much higher standards.
This means harder times for associations, especially those that are already in trouble.
Merrill's Mortgage Gamblers Lose One-Quarter Of Money Firm Made In Last 36 Years
Merrill's Mortgage Gamblers Lose One-Quarter Of Money Firm Made In Last 36 Years: "How much of a toll has the credit crisis and subprime meltdown taken on Wall Street? Here's one example: In the past 18 months, Merrill Lynch (MER) has lost a quarter of the money it made between 1971 and 2006:
FT: Merrill Lynch’s losses in the past 18 months amount to about a quarter of the profits it has made in its 36 years as a listed company, according to Financial Times research that highlights the extent of the global banking crisis."
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FT: Merrill Lynch’s losses in the past 18 months amount to about a quarter of the profits it has made in its 36 years as a listed company, according to Financial Times research that highlights the extent of the global banking crisis."
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Lenders face huge hit on mortgages fraudulently obtained by crime gangs - Times Online
Lenders face huge hit on mortgages fraudulently obtained by crime gangs - Times Online: "Britain’s mortgage lenders may be sitting on hundreds of millions of pounds of worthless loans fraudulently obtained by criminals to support drug manufacturing, illegal immigration and money-laundering.
Bradford & Bingley, the buy-to-let mortgage lender, admitted yesterday that it had been forced to take an £18 million impairment charge in the half year to June 30 to cover borrowing by criminal gangs and other fraudsters. The sum represents an increase on a £15 million charge taken in June.
B&B’s losses may be only the tip of the iceberg."
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I wonder if US banks were doing the same thing.
Bradford & Bingley, the buy-to-let mortgage lender, admitted yesterday that it had been forced to take an £18 million impairment charge in the half year to June 30 to cover borrowing by criminal gangs and other fraudsters. The sum represents an increase on a £15 million charge taken in June.
B&B’s losses may be only the tip of the iceberg."
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I wonder if US banks were doing the same thing.
Bloomberg.com: Worldwide
Tenth bank failure this year: "Integrity Bank, with $1.1 billion in assets and $974 million in deposits, was shuttered by the Georgia Department of Banking and Finance and the Federal Deposit Insurance Corp. Regions Financial Corp., Alabama's biggest bank, will assume all deposits from Integrity, which was run by Integrity Bancshares Inc. The failed bank's five offices will open on Sept. 2 as branches of Regions, the FDIC said."
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It isn't 1929, or 1987, but it isn't good.
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It isn't 1929, or 1987, but it isn't good.
Friday, August 29, 2008
Advocates assail suburbs for fighting housing rules | CourierPostOnline.com | Courier-Post
Advocates assail suburbs for fighting housing rules | CourierPostOnline.com | Courier-Post: "TRENTON — New Jersey's wealthiest and least diverse municipalities are the ones most resisting new state rules that require towns to build more affordable housing units for low and moderate-income families, according to a report released Monday by affordable housing advocates."
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Mystery Reader sent this piece that recounts the latest episode in New Jersey's affordable housing saga. This has been a huge issue for decades, including the Mt. Laurel litigation and statutory law and battles at the local level.
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Mystery Reader sent this piece that recounts the latest episode in New Jersey's affordable housing saga. This has been a huge issue for decades, including the Mt. Laurel litigation and statutory law and battles at the local level.
BBC NEWS | Science/Nature | 'Lost towns' discovered in Amazon
BBC NEWS | Science/Nature | 'Lost towns' discovered in Amazon: "A remote area of the Amazon river basin was once home to densely populated towns, Science journal reports...Like medieval European and ancient Greek towns, those forming the Amazonian urban landscape were surrounded by large walls. These were composed of earthworks, the remains of which have survived. "
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It seems as though whenever an old city is unearthed they find a wall around it.
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It seems as though whenever an old city is unearthed they find a wall around it.
Monday, August 25, 2008
Gun Rights vs. Freedom?: How "take your guns to work" laws violate property rights - Reason Magazine
Gun Rights vs. Freedom?: How "take your guns to work" laws violate property rights - Reason Magazine: "Supporters of the right to keep and bear arms have long recognized the value of firearms for the defense of life, liberty, and property. But in Florida, a perverse conception of the 2nd Amendment has produced the opposite effect: The cause of gun rights is being used to attack property rights.
In 1987, Florida wisely affirmed personal freedom by letting law-abiding citizens get permits to carry concealed weapons. But this year, the legislature decided it was not enough to let licensees pack in public places. They also should be allowed to take their guns into private venues—even if the property owner objects.
The 'take your guns to work' law says anyone with a conceal-carry permit has a legal right to keep his gun locked in his car in the company parking lot. Until recently, companies had the authority to make the rules on their own premises. But when it comes to guns, that freedom is defunct."
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This is another example of what I think of as "repressive libertarianism," where certain people who call themselves libertarians invariably side with property owners who want to limit other people's liberties through the use of contract law. Property rights (usually held by somebody with a whole lot of economic clout) trump every other liberty. The libertarian defense of HOAs is the perfect example. The developer writes covenants and leaves. Everybody who lives there has to obey them forever, even if they lose due process of law and expressive liberties.
As private corporations take over more functions of government, this position could lead to gradual elimination of constitutional liberties. But ironically some state governments are pushing back against the property owners, not only in this gun situation but with HOAs and condos.
In 1987, Florida wisely affirmed personal freedom by letting law-abiding citizens get permits to carry concealed weapons. But this year, the legislature decided it was not enough to let licensees pack in public places. They also should be allowed to take their guns into private venues—even if the property owner objects.
The 'take your guns to work' law says anyone with a conceal-carry permit has a legal right to keep his gun locked in his car in the company parking lot. Until recently, companies had the authority to make the rules on their own premises. But when it comes to guns, that freedom is defunct."
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This is another example of what I think of as "repressive libertarianism," where certain people who call themselves libertarians invariably side with property owners who want to limit other people's liberties through the use of contract law. Property rights (usually held by somebody with a whole lot of economic clout) trump every other liberty. The libertarian defense of HOAs is the perfect example. The developer writes covenants and leaves. Everybody who lives there has to obey them forever, even if they lose due process of law and expressive liberties.
As private corporations take over more functions of government, this position could lead to gradual elimination of constitutional liberties. But ironically some state governments are pushing back against the property owners, not only in this gun situation but with HOAs and condos.
FBI saw threat of mortgage crisis - Los Angeles Times
FBI saw threat of mortgage crisis - Los Angeles Times: "WASHINGTON -- Long before the mortgage crisis began rocking Main Street and Wall Street, a top FBI official made a chilling, if little-noticed, prediction: The booming mortgage business, fueled by low interest rates and soaring home values, was starting to attract shady operators and billions in losses were possible.
'It has the potential to be an epidemic,' Chris Swecker, the FBI official in charge of criminal investigations, told reporters in September 2004. But, he added reassuringly, the FBI was on the case. 'We think we can prevent a problem that could have as much impact as the S&L crisis,' he said.
Today, the damage from the global mortgage meltdown has more than matched that of the savings-and-loan bailouts of the 1980s and early 1990s. By some estimates, it has made that costly debacle look like chump change. But it's also clear that the FBI failed to avert a problem it had accurately forecast."
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So let's all give the FBI a big hand for preventing a disaster. Oh, wait.
'It has the potential to be an epidemic,' Chris Swecker, the FBI official in charge of criminal investigations, told reporters in September 2004. But, he added reassuringly, the FBI was on the case. 'We think we can prevent a problem that could have as much impact as the S&L crisis,' he said.
Today, the damage from the global mortgage meltdown has more than matched that of the savings-and-loan bailouts of the 1980s and early 1990s. By some estimates, it has made that costly debacle look like chump change. But it's also clear that the FBI failed to avert a problem it had accurately forecast."
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So let's all give the FBI a big hand for preventing a disaster. Oh, wait.
Kannapolis subdivision divided over homeowners association - Independent Tribune - Concord and Kannapolis
Kannapolis subdivision divided over homeowners association - Independent Tribune - Concord and Kannapolis: "ANNAPOLIS - A Kannapolis subdivision that residents say was shorted on some amenities and infrastructure by its developers is now seeing some turmoil over a homeowners association formed for the community."
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But this is a voluntary association, so it is questionable whether they can get it organized. That's why the industry makes them mandatory. That's also why the libertarians who keep touting HOAs as examples of voluntarism are so, so, so wrong.
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But this is a voluntary association, so it is questionable whether they can get it organized. That's why the industry makes them mandatory. That's also why the libertarians who keep touting HOAs as examples of voluntarism are so, so, so wrong.
Residents Find Lake Full Of Rotting Fish - KYPost.com
Residents Find Lake Full Of Rotting Fish - KYPost.com: "One resident says her kids were playing near the shallow lake Thursday evening, and everything was fine. When she went outside Friday morning, she saw dozens of dead and rotting fish floating near the surface. She tells 9News she stopped counting the fish at 100.
The residents here have contacted their Homeowners Association, who say they'll start cleaning this up on Monday."
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Rotten fish? Call the HOA!
The residents here have contacted their Homeowners Association, who say they'll start cleaning this up on Monday."
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Rotten fish? Call the HOA!
Condo association opposes making street private | hometownlife.com | the Observer & Eccentric Newspapers, Mirror Newspapers and Hometown Weeklies
Condo association opposes making street private | hometownlife.com | the Observer & Eccentric Newspapers, Mirror Newspapers and Hometown Weeklies: "Residents of Brookdale Condominiums are protesting a proposal to turn responsibility for Brookdale Court back to residents of the complex."
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The city figures that since the street only services the condo complex, the residents should pay for it.
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The city figures that since the street only services the condo complex, the residents should pay for it.
Sunday, August 24, 2008
Most gated communities shy away from politics -- South Florida Sun-Sentinel.com
Most gated communities shy away from politics -- South Florida Sun-Sentinel.com: "Most gated communities shy away from politics. 'A lot of people are concerned, 'Is this bipartisan?' So rather than do something, they do nothing,' is Abe Fenster's take on the subject. He's the Shores' new president and manned the floor microphones with Harvey Hoffman, his predecessor. Most of the candidates interviewed said they had been in few or no other gated communities during this election cycle because they have to be invited."
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Well, if it is about listening to a sales pitch from some self-serving candidate, I can see why they'd rather play bridge. But if the political issue activates the NIMBY reflex, HOA residents can be mobilized to pay attention pretty fast. Propose building a low-income apartment project next door and see who shows up for the meeting.
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Well, if it is about listening to a sales pitch from some self-serving candidate, I can see why they'd rather play bridge. But if the political issue activates the NIMBY reflex, HOA residents can be mobilized to pay attention pretty fast. Propose building a low-income apartment project next door and see who shows up for the meeting.
Who's responsible for homeowner dues in case of bankruptcy and foreclosure? - Los Angeles Times
Who's responsible for homeowner dues in case of bankruptcy and foreclosure? - Los Angeles Times
The Villa Appalling authors address this question in their weekly LA Times column.
The Villa Appalling authors address this question in their weekly LA Times column.
Friday, August 22, 2008
Condos must accommodate wheelchairs - Top Stories - (HometownAnnapolis.com)
Condos must accommodate wheelchairs - Top Stories - (HometownAnnapolis.com)The Maryland Human Relations Commission has directed 30 condominium owners in a Heritage Harbour complex to spend thousands of dollars to renovate their private homes to accommodate wheelchairs. The commission said when the developer constructed the units in 1997 they were not built to accommodate wheelchairs as required by the Federal Housing Act. The 1991 housing law forbids discrimination against tenants or residents who are wheelchair-users...The complaint said Broad Creek's developer, U.S. Homes Corp., failed to comply with the Federal Housing Act. The unit owner who filed the complaint no longer lives in the building and the residents said they are livid they have to hire contractors to move walls, lower doorjamb thresholds, and rewire and expand doorways within their own units.
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Tom Skiba sent me this. The strange part is that the owners have to make their own units comply with the law.
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Tom Skiba sent me this. The strange part is that the owners have to make their own units comply with the law.
Pinellas Drug Sting Nets 18 Grow Houses, 18 Arrests
Pinellas Drug Sting Nets 18 Grow Houses, 18 Arrests: "Detectives eventually 'uncovered a network … of family members who decided to work this countywide,' said Capt. Mike Platt of the sheriff's narcotics squad. 'This is not an isolated case where people decide to grow some pot plants in their house.'
Rental homes were used for the grow operations, he said. Some were found today to contain as few as 23 plants; some had up to 100. Investigators say the coordinated effort annually could have produced a harvest worth more than $4 million."
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One way of coping with the declining property values in Florida.
Rental homes were used for the grow operations, he said. Some were found today to contain as few as 23 plants; some had up to 100. Investigators say the coordinated effort annually could have produced a harvest worth more than $4 million."
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One way of coping with the declining property values in Florida.
Thursday, August 21, 2008
Fay Dumps Record-Breaking Rain; Flood Victims Warned Of Alligator Swimming In Streets - Orlando Weather News Story - WKMG Orlando: "MELBOURNE, Fla. -- Homeowners in a Tropical Storm Fay-flooded community were being warned of an alligator swimming in their streets and near homes as record-breaking rain continued to fall Thursday."
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Well, this is clearly a covenant violation. No alligators allowed. Somebody call the board of directors.
Living with humans has taught dogs morals, say scientists | Mail Online: "Dogs are becoming more intelligent and are even learning morals from human contact, scientists claim.
They say the fact that dogs' play rarely escalates into a fight shows the animals abide by social rules."
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I think these scientists have the relationship exactly backward. Dogs teach humans morals. If we were teaching them, they would be fighting all the time.
Wednesday, August 20, 2008
FOXNews.com - Man Jailed After Taking Photo of Police Van Ignoring 'Wrong Way' Sign - International News | News of the World | Middle East News | Euro
FOXNews.com - Man Jailed After Taking Photo of Police Van Ignoring 'Wrong Way' Sign - International News | News of the World | Middle East News | Europe News: "A British man was jailed for five hours after he photographed a cop reversing the wrong way up a one-way street. After Andrew Carter snapped the cop van, officer Aqil Farooq leaped out, hit the camera to the ground, handcuffed him and bundled him into the back of the vehicle. The plumber, 44, was arrested for supposedly being drunk, resisting arrest and assaulting the officer with the camera. He was kept in cells before finally being released on police bail at midnight."
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And people wonder why the US founders wanted limits on government power.
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And people wonder why the US founders wanted limits on government power.
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