US confronts possibility of long, deep recession : "A recession is typically defined as a period in which the economy shrinks for two quarters in a row. In the 2001 recession, the quarters weren't even consecutive.
But in the 1970s, the recession stretched on for a year and a half. Nearly 2.2 million people lost their jobs. By the end of 1974, the Dow Jones industrial average had lost more than 40 percent of its value. At the same time, the nation was focused on the Watergate scandal and the vacuum left by President Nixon's resignation in August 1974.
The economy began to recover in spring of the next year. But inflation, which had eased as the oil embargo was lifted, spiked again. By 1980, prices were rising at an annual rate of 13.5 percent."
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The point of this article is that we haven't had a deep recession since the early 1970s, and many people don't know what it feels like. I am astounded by the depth of political ignorance this year, as people get ready to vote but don't even know the Democrats control Congress, and I guess the economic ignorance is much worse.
Wednesday, October 15, 2008
Pre-debate talking points: Raising expectations - Yahoo! News
Pre-debate talking points: Raising expectations - Yahoo! News: "A copy of Obama surrogates' pre-debate talking points slipped out inadvertently on a campaign press list this morning, in case you want to skip hearing them repeated ad nauseum on the cable news, they're posted in full after the jump."
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Interesting inside look into the way the campaigns try to spin the press coverage.
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Interesting inside look into the way the campaigns try to spin the press coverage.
Metro State clears teacher in Palin essay flap : Updates : The Rocky Mountain News
Metro State clears teacher in Palin essay flap : Updates : The Rocky Mountain News: "A special investigation of part-time Metropolitan State College instructor Andrew Hallam has determined that he had not violated any college policies in assigning an essay on Republican vice president nominee Sarah Palin to one of his English classes.
'The investigation concluded that Hallam must learn to curb the use of vulgar language in class, and that the introduction of controversial topics must have a substantial relationship with the subject of the class,' according to a news bulletin released by the college Tuesday.
'While discipline is not warranted, appropriate mentoring is recommended.'"
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So, maybe he can do a little less swearing while he uses his English class as a forum for his lefty politics? That's it? The essay assignment in question, that was OK with the college after all: "He allegedly told them to write an essay that would contradict "the fairy tale image of Palin" as presented at the Republican National Convention."
'The investigation concluded that Hallam must learn to curb the use of vulgar language in class, and that the introduction of controversial topics must have a substantial relationship with the subject of the class,' according to a news bulletin released by the college Tuesday.
'While discipline is not warranted, appropriate mentoring is recommended.'"
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So, maybe he can do a little less swearing while he uses his English class as a forum for his lefty politics? That's it? The essay assignment in question, that was OK with the college after all: "He allegedly told them to write an essay that would contradict "the fairy tale image of Palin" as presented at the Republican National Convention."
toledoblade.com -- Obama maps rescue for middle-class U.S.
toledoblade.com -- Obama maps rescue for middle-class U.S.: "Highlights of his plan include:
• A temporary tax credit of $3,000 for each new job companies create in the United States over the next two years.
• New legislation that would allow families to withdraw 15 percent of their retirement savings — up to a maximum of $10,000 — without facing a 10 percent tax penalty this year (retroactively to Jan. 1) and next year.
• A 90-day foreclosure moratorium for homeowners who are making a good-faith effort to pay their mortgages.
• Calling on the Federal Reserve and the Treasury to work to establish a facility to lend to state and municipal governments."
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So state and local governments bring up the end of the line. Don't see the nation's condos and HOAs there.
• A temporary tax credit of $3,000 for each new job companies create in the United States over the next two years.
• New legislation that would allow families to withdraw 15 percent of their retirement savings — up to a maximum of $10,000 — without facing a 10 percent tax penalty this year (retroactively to Jan. 1) and next year.
• A 90-day foreclosure moratorium for homeowners who are making a good-faith effort to pay their mortgages.
• Calling on the Federal Reserve and the Treasury to work to establish a facility to lend to state and municipal governments."
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So state and local governments bring up the end of the line. Don't see the nation's condos and HOAs there.
Pasadena woman facing eviction is found dead in burning home - Los Angeles Times
Pasadena woman facing eviction is found dead in burning home - Los Angeles Times: "A series of financial setbacks left Wanda Dunn facing eviction from the house in Pasadena where her family had lived for generations.
Dunn, 53, told neighbors that she would rather die than leave.
Early Monday, the day of her expected eviction, firefighters pulled her body out of the house as it burned. She apparently had set it on fire before shooting herself in the head, authorities said.
'We knew it was going to happen,' said Steve Brooks, who lived across the street. 'It was nobody's fault; it was everybody's fault.'"
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That makes two of these in the last week. Tragic.
Dunn, 53, told neighbors that she would rather die than leave.
Early Monday, the day of her expected eviction, firefighters pulled her body out of the house as it burned. She apparently had set it on fire before shooting herself in the head, authorities said.
'We knew it was going to happen,' said Steve Brooks, who lived across the street. 'It was nobody's fault; it was everybody's fault.'"
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That makes two of these in the last week. Tragic.
Daily Herald | Waukegan store clerk fatally shoots robber, may face criminal charges
Daily Herald | Waukegan store clerk fatally shoots robber, may face criminal charges: "Walles said it's unclear why the clerk had a gun at the store, but confirmed there have been numerous theft and other disturbances at the location in the past two years. 'That's one of the things we are reviewing in the case,' he said. 'But, at this time, we are unclear on why the clerk had a gun in the store.'"
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Indeed. What a puzzle. And this Walles is a Waukegan police commander. Let's see if we can contribute to the solution of his conundrum, shall we? Hmmmmm.
Play the "Jeopardy" theme...
The answer: A gun.
The question: What is the best way for a store clerk in a bad neighborhood to protect himself against robbers and other miscreants?
If you want to debate whether he should have shot him, fine. I don't know how it all went down. But don't insult people's intelligence with all this public dithering about why there was a gun in the store. I have driven right past that store and if I worked there I would want a pistol nearby.
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Indeed. What a puzzle. And this Walles is a Waukegan police commander. Let's see if we can contribute to the solution of his conundrum, shall we? Hmmmmm.
Play the "Jeopardy" theme...
The answer: A gun.
The question: What is the best way for a store clerk in a bad neighborhood to protect himself against robbers and other miscreants?
If you want to debate whether he should have shot him, fine. I don't know how it all went down. But don't insult people's intelligence with all this public dithering about why there was a gun in the store. I have driven right past that store and if I worked there I would want a pistol nearby.
Monday, October 13, 2008
Soros Explains The Credit Crisis - Forbes.com
Soros Explains The Credit Crisis - Forbes.com: "With his near real-time critique of the credit crisis, George Soros has saved financial historians a lot of work. If he's right, the summer of 2007 and all of 2008 will be the topic of many an academic paper, much like how Ben Bernanke made a career out of studying the Great Depression. Soros sees this as a monumental time. It's not just a bursting housing bubble, he says. It's the end of a quarter-century of credit-driven economic expansion. We're in a whole new world"
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Excellent review published in May, 2008, of the Soros book that went to press in March. Soros predicted what just happened, so it is worth taking a few minutes to read this review.
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Excellent review published in May, 2008, of the Soros book that went to press in March. Soros predicted what just happened, so it is worth taking a few minutes to read this review.
BBC NEWS | Science & Environment | Predators could be superweed fix
BBC NEWS | Science & Environment | Predators could be superweed fix: "A superweed spreading throughout the UK could be brought under control by introducing plant-eating predators from Japan, scientists believe."
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I'm sure this will end well. Attack of the Killer Knotweed, followed by Knotweed Meets the Sap-Sucking Psyllid.
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I'm sure this will end well. Attack of the Killer Knotweed, followed by Knotweed Meets the Sap-Sucking Psyllid.
McClatchy Washington Bureau | 10/13/2008 | More lawsuits trip up bloggers on Internet: "The Citizen Media Law Project has tallied 280 legal actions against bloggers and other online publishers nationwide. Compared with the millions of blogs out there, that might not seem like a lot. But the numbers have been trending steadily upward, from a mere four lawsuits in 1997 to 89 last year.
Although only a handful of cases have resulted in verdicts or settlements, a few have been eye-popping enough to give even the average basement- residing poster pause."
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Yes. $11.3 million will give you Mary Feldman eyes for sure.
Although only a handful of cases have resulted in verdicts or settlements, a few have been eye-popping enough to give even the average basement- residing poster pause."
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Yes. $11.3 million will give you Mary Feldman eyes for sure.
Money Central - Times Online - WBLG: Ten people who predicted the financial meltdown
Take a look at No. 10. Hint: his initials are R.P.
Take a look at No. 10. Hint: his initials are R.P.
Sunday, October 12, 2008
Royal Bank of Scotland under state control - Times Online
Royal Bank of Scotland under state control - Times Online: "The Chancellor will move to take control of the Royal Bank of Scotland today by injecting £20 billion of taxpayers’ money.
The Government is also expected to take over HBOS in the most dramatic extension of state ownership in the British economy since the war. The bank’s rescue takeover by Lloyds TSB appeared to be on the brink of collapse last night.
As governments around the world scramble to prevent the collapse of the global financial system, Alistair Darling will unveil plans for a £40 billion “recapitalisation” of the banking sector."
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Marx said capitalism would collapse and be replaced by socialism. Maybe he was right after all. I hope not.
The Government is also expected to take over HBOS in the most dramatic extension of state ownership in the British economy since the war. The bank’s rescue takeover by Lloyds TSB appeared to be on the brink of collapse last night.
As governments around the world scramble to prevent the collapse of the global financial system, Alistair Darling will unveil plans for a £40 billion “recapitalisation” of the banking sector."
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Marx said capitalism would collapse and be replaced by socialism. Maybe he was right after all. I hope not.
Foreclosure-proof homes? - Los Angeles Times
Foreclosure-proof homes? - Los Angeles Times: "A U.S. District Court judge in Cleveland tossed out 14 foreclosure cases Oct. 31 on the grounds that the bank suing to repossess the properties, Deutsche Bank National Trust Co., didn't actually own them. Deutsche Bank held debt securities that were linked to the mortgage loans on the properties, not the mortgages themselves. And the judge ruled that a security backed by a mortgage is not the same as a mortgage.
That's a distinction that could make all the difference in the world -- especially to the millions of Americans facing potential foreclosure in our crumbling housing market."
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What if I have a mutual fund account that has some MBS shares? Do I get somebody's back porch or something?
That's a distinction that could make all the difference in the world -- especially to the millions of Americans facing potential foreclosure in our crumbling housing market."
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What if I have a mutual fund account that has some MBS shares? Do I get somebody's back porch or something?
Saturday, October 11, 2008
Pair arrested after large McCain sign torched in Sellwood yard | KATU.com - Portland, Oregon | News
Pair arrested after large McCain sign torched in Sellwood yard : "PORTLAND, Ore. - Authorities have arrested two men after a Molotov cocktail was thrown at a 4-foot by 8-foot campaign sign for Republican presidential candidate John McCain in a southeast Portland yard."
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If you are tossing Molotov cocktails while your candidate is up by 7 in the polls, what do you do if he loses? Or if he wins, for that matter.
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If you are tossing Molotov cocktails while your candidate is up by 7 in the polls, what do you do if he loses? Or if he wins, for that matter.
Crime: Buy Or Be Stabbed: "The global economy is crashing, credit markets are playing ice age, and you consumers have a simple choice: buy things now or prepare to be stabbed next year."
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The facts are in, courtesy of Mystery Reader.
Brown lawn means jail time - St. Petersburg Times
Brown lawn means jail time - St. Petersburg Times: "His crime? He had disobeyed a court order that he sod the lawn at his Beacon Woods home.
His bail? Zero.
Prudente, 66, must stay in the Pasco County jail in Land O'Lakes until the required sod work is completed, under a September court order signed by Circuit Judge W. Lowell Bray.
'He's in prison for God knows how long because we can't afford to sod the lawn,' said his sobbing daughter, Jennifer Lehr."
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Thanks to Beth Young for this sad tale. The Beacon Woods Civic Association is serious about that green lawn thing. And so is the judge.
His bail? Zero.
Prudente, 66, must stay in the Pasco County jail in Land O'Lakes until the required sod work is completed, under a September court order signed by Circuit Judge W. Lowell Bray.
'He's in prison for God knows how long because we can't afford to sod the lawn,' said his sobbing daughter, Jennifer Lehr."
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Thanks to Beth Young for this sad tale. The Beacon Woods Civic Association is serious about that green lawn thing. And so is the judge.
Behind McCain’s Fall « The State of the Union: "In this election, as in nearly all before, a black swan has shaped the race’s trajectory: one of those unforeseeable external events that pops up in the last month or so, bearing an impact far greater than any of the daily fluctuations dissected by the punditry."
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The line chart that accompanies the blog post tells a dramatic story. The black swan is honking louder than anything else. Unless another rara avis shows up before November 3, McCain's goose is cooked, so to speak.
Las Vegas Now | I-Team: Ombudsman Talks About HOA Investigation
Las Vegas Now | I-Team: Ombudsman Talks About HOA Investigation: "No other state has an office like Nevada's HOA Ombudsman, which has assisted thousands of homeowners over the past few years. However, it's up to the state's HOA Commission to handle more serious matters.
The I-Team found the commission has picked up the pace in the last year, but still processes a small trickle of cases, each of which takes about two years to be processed."
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No other state? What about Florida? In any event, the verdict seems to be that the Nevada ombudsman office and the state commission haven't made much of a difference.
The I-Team found the commission has picked up the pace in the last year, but still processes a small trickle of cases, each of which takes about two years to be processed."
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No other state? What about Florida? In any event, the verdict seems to be that the Nevada ombudsman office and the state commission haven't made much of a difference.
My Way News - Obama fundraiser, convicted of fraud, spills beans: "CHICAGO (AP) - Jailed political fundraiser Antoin 'Tony' Rezko, the Chicago real estate developer who helped launch Barack Obama on his political career, is whispering secrets to federal prosecutors about corruption in Illinois and the political fallout could be explosive."
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Our slimy governor, Rod "Testicular Fortitude" Blagojevich, has a lot to fear. He seems to be the top target of the investigation. But I don't think Obama is a real target at all. Maybe Rezko could say things that make him look bad, but unless Obama was involved in criminal conduct, which I doubt, we probably won't hear about it. Fitzgerald won't smear a likely future president unless he has a slam dunk case against him.
ps: I forgot to mention the obvious wild card. If Obama is elected, he can fire Patrick Fitzgerald, the US attorney for the northern district of Illinois (Chicago), and appoint some stooge who will make sure nothing bad happens to Blago or The One. Some people think Obama wouldn't do that because it would look so bad, given that everybody knows Rezko is already singing and Blago is the target. I wonder if those are the same people who said Obama would never go back on his promise to use public campaign financing. In other words, with this much at stake, I'm sure Obama can find a way to talk his way around looking bad. On the other hand, maybe Blago at long last has no friends left and Obama will let him swing. And I'm still unconvinced that Obama ever did anything criminal. However, just for the record there is one long opinion to the contrary, so we will just have to wait and see what Rezko has to say.
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Our slimy governor, Rod "Testicular Fortitude" Blagojevich, has a lot to fear. He seems to be the top target of the investigation. But I don't think Obama is a real target at all. Maybe Rezko could say things that make him look bad, but unless Obama was involved in criminal conduct, which I doubt, we probably won't hear about it. Fitzgerald won't smear a likely future president unless he has a slam dunk case against him.
ps: I forgot to mention the obvious wild card. If Obama is elected, he can fire Patrick Fitzgerald, the US attorney for the northern district of Illinois (Chicago), and appoint some stooge who will make sure nothing bad happens to Blago or The One. Some people think Obama wouldn't do that because it would look so bad, given that everybody knows Rezko is already singing and Blago is the target. I wonder if those are the same people who said Obama would never go back on his promise to use public campaign financing. In other words, with this much at stake, I'm sure Obama can find a way to talk his way around looking bad. On the other hand, maybe Blago at long last has no friends left and Obama will let him swing. And I'm still unconvinced that Obama ever did anything criminal. However, just for the record there is one long opinion to the contrary, so we will just have to wait and see what Rezko has to say.
Friday, October 10, 2008
IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Investors' Real Fear: A Socialist Tsunami
IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Investors' Real Fear: A Socialist Tsunami: "It isn't only that the most anti-capitalist politician ever nominated by a major party is favored to take the White House. It's that he'll also have a filibuster-proof Congress led by politicians who are almost as liberal.
Throw in a media establishment dedicated to the implementation of a liberal agenda, and the smothering of dissent wherever it arises, and it's no wonder panic has set in."
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The argument is that the continued selloff is the result of the public's reaction to the crash. They are moving to Obama. And that, the author says, is causing a secondary panic.
Throw in a media establishment dedicated to the implementation of a liberal agenda, and the smothering of dissent wherever it arises, and it's no wonder panic has set in."
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The argument is that the continued selloff is the result of the public's reaction to the crash. They are moving to Obama. And that, the author says, is causing a secondary panic.
Contra Costa sues major Wall Street institutions over alleged bid-rigging scam - Inside Bay Area
Contra Costa sues major Wall Street institutions over alleged bid-rigging scam - Inside Bay Area: "Contra Costa sued nearly every major Wall Street financial institution Wednesday, arguing they conspired to fix bidding on its municipal bond investments, costing the county perhaps millions of dollars in higher interest payments, fees and credit risks.
The lawsuit contends the conspiracy involved more than 50 investment firms, banks and brokers — including many bankrupt companies rescued or bought out in the recent Wall Street collapse — conspiring to get more lucrative interest payments and fees from public entities, including Contra Costa."
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And it is bigger than that. Much bigger. Many counties are involved, the money involved is huge, and this is not just a private civil suit. The FBI is involved.
The lawsuit contends the conspiracy involved more than 50 investment firms, banks and brokers — including many bankrupt companies rescued or bought out in the recent Wall Street collapse — conspiring to get more lucrative interest payments and fees from public entities, including Contra Costa."
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And it is bigger than that. Much bigger. Many counties are involved, the money involved is huge, and this is not just a private civil suit. The FBI is involved.
kakistocracy: Definition from Answers.com
kakistocracy: Definition from Answers.comn., pl. -cies.
Government by the least qualified or most unprincipled citizens.
[Greek kakistos, worst, superlative of kakos, bad; see caco– + –CRACY.]
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This may be where we are headed.
Government by the least qualified or most unprincipled citizens.
[Greek kakistos, worst, superlative of kakos, bad; see caco– + –CRACY.]
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This may be where we are headed.
Thursday, October 09, 2008
Narcissistic People Most Likely To Emerge As Leaders
Narcissistic People Most Likely To Emerge As Leaders: "COLUMBUS, Ohio – When a group is without a leader, you can often count on a narcissist to take charge, a new study suggests.
Researchers found that people who score high in narcissism tend to take control of leaderless groups. Narcissism is a trait in which people are self-centered, exaggerate their talents and abilities, and lack empathy for others.
“Not only did narcissists rate themselves as leaders, which you would expect, but other group members also saw them as the people who really run the group,” said Amy Brunell, lead author of the study and assistant professor of psychology at Ohio State University at Newark."
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Food for thought, not just for people who live in CIDs, but for the nation as a whole.
Researchers found that people who score high in narcissism tend to take control of leaderless groups. Narcissism is a trait in which people are self-centered, exaggerate their talents and abilities, and lack empathy for others.
“Not only did narcissists rate themselves as leaders, which you would expect, but other group members also saw them as the people who really run the group,” said Amy Brunell, lead author of the study and assistant professor of psychology at Ohio State University at Newark."
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Food for thought, not just for people who live in CIDs, but for the nation as a whole.
Wednesday, October 08, 2008
Panama Guide - Home Invasion Robberies, Safety, and Security in Panama
Panama Guide - Home Invasion Robberies, Safety, and Security in Panama: "Gated Communities: Many foreigners who talk about moving to Panama often eschew gated communities. They say they would prefer to mix and mingle with their Panamanian counterparts and don't want to live behind a wall or a fence. That's fine, but there's no doubt that gated communities exist for a reason, and the reason is that the people living in those communities are the most likely to be targeted for an armed home invasion robbery. As a foreigner you have a big, fat target painted on your back the minute you get off of the plane at Tocumen airport. Most of the real estate projects and developments have taken the safety and security of their residents into consideration in their planning, so be sure to look for and to ask about those elements when making your choice. You don't have to live like a scared cat but at the same time you don't want to invite trouble either."
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If the crime is that bad, I see the appeal of a gated community. The strange thing is that you see them even where the crime is practically nonexistent.
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If the crime is that bad, I see the appeal of a gated community. The strange thing is that you see them even where the crime is practically nonexistent.
Housing Pain Gauge: Nearly 1 in 6 Owners 'Under Water' - WSJ.com
Housing Pain Gauge: Nearly 1 in 6 Owners 'Under Water' - WSJ.com: "About 75.5 million U.S. households own the homes they live in. After a housing slump that has pushed values down 30% in some areas, roughly 12 million households, or 16%, owe more than their homes are worth, according to Moody's Economy.com.
The comparable figures were roughly 4% under water in 2006 and 6% last year, says the firm's chief economist, Mark Zandi, who adds that 'it is very possible that there will ultimately be more homeowners under water in this period than any time in our history.'
Among people who bought within the past five years, it's worse: 29% are under water on their mortgages, according to an estimate by real-estate Web site Zillow.com."
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Take a look at the map that accompanies the story. The red states have the highest concentrations of CID housing.
The comparable figures were roughly 4% under water in 2006 and 6% last year, says the firm's chief economist, Mark Zandi, who adds that 'it is very possible that there will ultimately be more homeowners under water in this period than any time in our history.'
Among people who bought within the past five years, it's worse: 29% are under water on their mortgages, according to an estimate by real-estate Web site Zillow.com."
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Take a look at the map that accompanies the story. The red states have the highest concentrations of CID housing.
How Much Oil is Actually Left On This Planet? Should We Care? : Gas 2.0
How Much Oil is Actually Left On This Planet? Should We Care? : Gas 2.0: "The way he sees it, the world has plenty of remaining and untapped fossil fuel resources to keep up with demand for at least the next 30 years. From squeezing oil out of unconventional sources such as oil shales, to using new technologies to re-exploit old oil fields that had since been left as dead, to undiscovered conventional oil sources, Dr. McCabe’s opinion is that there is no impending peak oil crisis - and the same thing goes for natural gas and coal."
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Check it out, complete with charts. 30 years doesn't seem like a long time, though. I think somebody had better come up with an alternative to burning all these dead dinosaurs.
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Check it out, complete with charts. 30 years doesn't seem like a long time, though. I think somebody had better come up with an alternative to burning all these dead dinosaurs.
Las Vegas Now | I-Team: HOA Insider Breaks Silence
Las Vegas Now | I-Team: HOA Insider Breaks Silence: "A former property manager is now coming forward saying she saw problems with the person at the center of the HOA investigations, Leon Benzer. New video and phone calls show some violent hired muscle willing to cross the line.
Allegations are flying back and forth in this case. Now there's proof it could get a lot worse.
From rigged elections and cushy contracts, to junkets to Cabo San Lucas and six tough guys acting as enforcers who would rough up anyone that would get in the way. The tale is the videotape, and it's one tale Diane Wild wishes she could forget."
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Thanks to Monica Caruso for this link, which includes scary video of the hired thugs. I haven't hear CAI's take on this whole deplorable saga yet. I expect something along these lines: this is just another isolated incident that is in no way representative of the hard working professionals who serve the hundreds of thousands of volunteer-run community associations across this great land of ours.
Allegations are flying back and forth in this case. Now there's proof it could get a lot worse.
From rigged elections and cushy contracts, to junkets to Cabo San Lucas and six tough guys acting as enforcers who would rough up anyone that would get in the way. The tale is the videotape, and it's one tale Diane Wild wishes she could forget."
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Thanks to Monica Caruso for this link, which includes scary video of the hired thugs. I haven't hear CAI's take on this whole deplorable saga yet. I expect something along these lines: this is just another isolated incident that is in no way representative of the hard working professionals who serve the hundreds of thousands of volunteer-run community associations across this great land of ours.
My Way News - Sheriff in Ill. county won't evict in foreclosures: "CHICAGO (AP) - Residents of foreclosed properties in Chicago and other parts of Cook County don't have to worry about deputies forcing them out. Sheriff Tom Dart says that starting Thursday his office won't take part in evictions."
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This is the first time I've seen this.
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This is the first time I've seen this.
Homeowner associations want state protections from legislators -- South Florida Sun-Sentinel.com
Homeowners want state protections from legislators -- South Florida Sun-Sentinel.com: "Homeowners responding to two recent surveys said they want a state agency to oversee their associations, training requirements for board directors and an ombudsman's office to act as a neutral resource and liaison for unit owners and board members. Condo associations have these protections in place, but HOAs have never had them in Florida.
Part of the reason is that historically the perception has been there are fewer HOAs, said state Rep. Julio Robaina, R-Miami, who championed condo reform over the past few years. As of June, there were 1,441,284 condo units in Florida governed by a total of 21,737 associations, but no state agency contacted could provide the number of HOAs."
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From Fred Pilot comes this piece signaling the start of a campaign to regulate HOAs in Florida in much the same way that condo associations are regulated.
Part of the reason is that historically the perception has been there are fewer HOAs, said state Rep. Julio Robaina, R-Miami, who championed condo reform over the past few years. As of June, there were 1,441,284 condo units in Florida governed by a total of 21,737 associations, but no state agency contacted could provide the number of HOAs."
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From Fred Pilot comes this piece signaling the start of a campaign to regulate HOAs in Florida in much the same way that condo associations are regulated.
Riley asks for help on city's sewer debt | montgomeryadvertiser.com | Montgomery Advertiser
Alabama Governor Riley asks for help on city's sewer debt | montgomeryadvertiser.com | Montgomery Advertiser: "The governor's meeting with legislators came after only two of the five members of the Jefferson County Commission voted Monday in favor of a bankruptcy filing. Others hope that a deal can be reached, but commissioners did vote to ask the county attorney to look into the possibility of bankruptcy. One plan would use excess education sales tax money to pay part of the sewer debt, a move that would have to be approved by the Legislature. Riley also has asked the interim head of the Treasury Department's $700 billion bailout to help Alabama's most populous county avoid filing the largest municipal bankruptcy in U.S. history."
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Mr. Cash and Carry is going to have a long line outside his door. Jefferson County has a $3 billion sewer bill it can't pay.
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Mr. Cash and Carry is going to have a long line outside his door. Jefferson County has a $3 billion sewer bill it can't pay.
Garbage crews 'paid to do nothing' city surveillance finds :: CHICAGO SUN-TIMES :: Politics
Garbage crews 'paid to do nothing' city surveillance finds :: CHICAGO SUN-TIMES :: Politics: "Chicago's household garbage is being picked up by crews that work less than six hours a day -- and get 'paid to do nothing' for 25 percent of their time on the clock -- costing taxpayers at least $14.3 million a year, the city's inspector general has found."
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I love the way President-in-waiting Obama reformed this city, county, and state before he went off to reform America.
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I love the way President-in-waiting Obama reformed this city, county, and state before he went off to reform America.
Deployed Soldiered Getting Sued For Not Land Scaping His Home | KXNet.com North Dakota News
Deployed Soldier Getting Sued For Not Land Scaping His Home | KXNet.com North Dakota News: "Is there anything in the world more vile than a Homeowner’s Association?"
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I think that was intended as a rhetorical question.
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I think that was intended as a rhetorical question.
My Way News - McCain would buy bad homeowner mortgages
My Way News - McCain would buy bad homeowner mortgages: "WASHINGTON (AP) - Republican presidential candidate John McCain is proposing a $300 billion program for the federal government to buy up bad home mortgages and allow homeowners to keep their houses.
McCain said: 'Until we stabilize home values in America, we're never going to start turning around and creating jobs and fixing our economy and we've got to get some trust and confidence back to America.'"
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This might actually work. The problem is it comes on top of the bailout of institutions. Maybe McCain should have said no to the bailout bill and proposed this instead. Why not bail out the consumers and stabilize the value of the underlying asset? This was suggested by others early on.
McCain said: 'Until we stabilize home values in America, we're never going to start turning around and creating jobs and fixing our economy and we've got to get some trust and confidence back to America.'"
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This might actually work. The problem is it comes on top of the bailout of institutions. Maybe McCain should have said no to the bailout bill and proposed this instead. Why not bail out the consumers and stabilize the value of the underlying asset? This was suggested by others early on.
Good Morning Yahoo!
Condo board goes to war against Segway rider
So this 83 year old WWII vet cruises around the seniors condo development on his Segway and the BOD bans it, even though they are fine with golf carts, those little personal mobility scooter thingys, bikes, and even motorized lawnmowers. He is a spunky old guy who has a girlfriend he needs to visit, so he won't back down.
So this 83 year old WWII vet cruises around the seniors condo development on his Segway and the BOD bans it, even though they are fine with golf carts, those little personal mobility scooter thingys, bikes, and even motorized lawnmowers. He is a spunky old guy who has a girlfriend he needs to visit, so he won't back down.
Tuesday, October 07, 2008
New Details Emerge in Las Vegas HOA Corruption Probe | HOA Nut House
New Details Emerge in Las Vegas HOA Corruption Probe | HOA Nut House: "So how was it done? For one thing, at Park Avenue, more than half the owners live elsewhere. The condos are investments, so they take little interest in board meetings. The most recent election had twice as many ballots cast as ever before, and most were mailed from one place. 'Funny part is, in California, all the different cities, they were all mailed form Long Beach at the same time on the same date,' said Dennis Noto.'They looked like real ballots that came in. Someone duplicated ballots, duplicated envelopes and then mailed them en masse. Even in Las Vegas, they were mailed all the same day from the same place,' said Lahargoue."
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I am interested to see whether this sort of thing is ultimately found to be criminal or just civil. If the former, homeowners' rights advocates have an opportunity big enough to drive a truck through. If the latter, we are back to the "6 years in court" drawing board.
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I am interested to see whether this sort of thing is ultimately found to be criminal or just civil. If the former, homeowners' rights advocates have an opportunity big enough to drive a truck through. If the latter, we are back to the "6 years in court" drawing board.
Frank says GOP housing attacks racially motivated
Frank says GOP housing attacks racially motivated: "BOSTON (AP) - Rep. Barney Frank said Monday that Republican criticism of Democrats over the nation's housing crisis is a veiled attack on the poor that's racially motivated. The Massachusetts Democrat, chairman of the House Financial Services Committee, said the GOP is appealing to its base by blaming the country's mortgage foreclosure problem on efforts to expand affordable housing through the Community Reinvestment Act. He said that blame is misplaced, because those loans are issued by regulated institutions, while far more foreclosures were triggered by high-cost loans made by unregulated entities."
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Frank is probably right on the issue of regulated CRA loans (a point made by a knowledgeable commenter on this blog yesterday). But this claim that criticism of housing programs is racially motivated is exactly the same thing Democrats said to silence Republican criticism of Fannie Mae (to the enormous detriment of the nation); it is the same thing the Obama campaign says whenever The One is criticized; and I hope the rest of the nation is as sick of hearing it as I am.
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Frank is probably right on the issue of regulated CRA loans (a point made by a knowledgeable commenter on this blog yesterday). But this claim that criticism of housing programs is racially motivated is exactly the same thing Democrats said to silence Republican criticism of Fannie Mae (to the enormous detriment of the nation); it is the same thing the Obama campaign says whenever The One is criticized; and I hope the rest of the nation is as sick of hearing it as I am.
AFP: US author of anti-Obama book detained in Kenya
AFP: US author of anti-Obama book detained in Kenya: "In a press release distributed earlier this week, Corsi announced he would 'expose deep secret ties between between US Democratic presidential candidate Sen. Barack Obama and a section of the Kenyan government leaders.' He was also to detail Kenyan leaders' 'connections to certain sectoral groups in Kenya and a subsequent plot to be executed in Kenya should Sen. Obama win the American presidency,' the release said."
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If he's not careful, HE will be the one "executed in Kenya."
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If he's not careful, HE will be the one "executed in Kenya."
A move to secede on California-Oregon border
A move to secede on California-Oregon border: "Guess the time is ripe to create a whole new state. That's the thinking up here along the border between California and Oregon, where 12 sparsely populated, thickly forested counties in both states want to break away and generate the 51st star on the nation's flag - the state of Jefferson. You can see the signs of discontent from Klamath Falls to Dunsmuir, where green double-X 'Jefferson State' flags hang in scores of businesses."
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These folks think the governments of Oregon and California are too liberal for them, so they want their own little Conservastan called "Jefferson."
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These folks think the governments of Oregon and California are too liberal for them, so they want their own little Conservastan called "Jefferson."
Monday, October 06, 2008
Leading geneticist Steve Jones says human evolution is over - Times Online
That is obvious. Exhibit A: daytime television. I rest my case.
That is obvious. Exhibit A: daytime television. I rest my case.
FT.com / In depth - Markets routed in global sell-off
FT.com / In depth - Markets routed in global sell-off: "Stock prices collapsed around the world on Monday amid growing fears that the credit crisis would trigger a global recession. The wave of selling swept through markets despite a scramble by governments to tackle the crisis, leading to rampant speculation that co-ordinated emergency rate cuts by the Federal Reserve and other central banks might be in the offing."
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Slow news day.
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Slow news day.
Indian American to oversee $700bn bailout
Indian American to oversee $700bn bailout: "Kashkari, who was one of the originator of the bailout plan, was part of the Treasury team that negotiated the asset-repurchase programme with Congress. Now, he would oversee some key decisions on how the rescue programme would operate."
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He is an engineer whose first career was with the space program. He also has an MBA in Finance.Sure hope he knows what he's doing.
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He is an engineer whose first career was with the space program. He also has an MBA in Finance.Sure hope he knows what he's doing.
Cramer to the Market: Now Is the Time to Panic
Cramer to the Market: Now Is the Time to Panic: "Whatever you may need for the next five years, please take it out of the stock market. Right now. This week. I do not believe that you should risk those assets in the stock market."
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Well. That is helpful.
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Well. That is helpful.
6 Family Members Dead In Murder-Suicide In Porter Ranch - News Story - KNBC | Los Angeles
6 Family Members Dead In Murder-Suicide In Porter Ranch - News Story - KNBC | Los Angeles: "LOS ANGELES -- All six people found dead in a home in the Porter Ranch area of the San Fernando Valley were members of the same family and were shot to death in a murder-suicide. Deputy Chief Michel Moore said the unemployed father of the family, 45, left two suicide letters claiming responsibility for his suicide and the murders of his family members, identified as his wife, three children and his mother-in-law."
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The article says he had no evident history of mental illness.
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The article says he had no evident history of mental illness.
Pakistan facing bankruptcy - Telegraph
Pakistan facing bankruptcy - Telegraph: "Pakistan's foreign exchange reserves are so low that the country can only afford one month of imports and faces possible bankruptcy."
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At some point you have to give up worrying about all this. How can the whole world go bankrupt? There have to be some creditors somewhere. We can't all be debtors...can we?
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At some point you have to give up worrying about all this. How can the whole world go bankrupt? There have to be some creditors somewhere. We can't all be debtors...can we?
Dewey Cheatham apparently not availableTreasury Secretary Henry Paulson is expected to name Neel Kashkari to oversee the U.S. government's $700 billion financial stabilization program, the Wall Street Journal reported, citing people familiar with the matter.
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With a name like that, what else could he do except become an economist? He is 35 years old, by the way, and has $800 billion to spend. When I was 35 I had 800, but without the "billion."
Germany takes hot seat as Europe falls into the abyss - Telegraph: "We face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars."
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Reading between the lines, I think the writer is a bit anxious about the state of the European economy.
Bloomberg.com: Worldwide
At what point do we start calling this "socialism"?: "Oct. 6 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke may find the next fronts of the financial crisis to be just as chilling as last month's downfall of Wall Street titans: its spread to corporate America and state and local governments.
Companies from Goodyear Tire & Rubber Co. and Duke Energy Corp. to Gannett Co. and Caterpillar Inc. are being forced to tap emergency credit lines or pay more to borrow as investors flee even firms with few links to the subprime-mortgage debacle. California Governor Arnold Schwarzenegger says his and other states may need emergency federal loans as funding dries up."
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$700 billion is a lot of money, but that is just for the banks. How can a government that is $14 trillion in debt even begin to think of bailing out the states and the rest of the failing corporations?
Companies from Goodyear Tire & Rubber Co. and Duke Energy Corp. to Gannett Co. and Caterpillar Inc. are being forced to tap emergency credit lines or pay more to borrow as investors flee even firms with few links to the subprime-mortgage debacle. California Governor Arnold Schwarzenegger says his and other states may need emergency federal loans as funding dries up."
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$700 billion is a lot of money, but that is just for the banks. How can a government that is $14 trillion in debt even begin to think of bailing out the states and the rest of the failing corporations?
Dogs being abandoned at state park (phillyBurbs.com) | Courier Times
Scenes from the Philadelphia suburbs: Dogs being abandoned at state park: "In the last six months, seven domestic dogs have been discovered abandoned in Nockamixon State Park, the most recent last week. Park officials and animal rescue agencies believe people are abandoning their pets there because they can no longer afford to care for them. “People think 'Oh someone will find him, take care of him. The park has leftover food. There's garbage there.' But these dogs can't fend for themselves,” said Lori McCutcheon, founder and president of Last Chance Ranch, a Richland animal rescue group, which since July, has taken in four dogs found at the park. But the 5,283-acre park, says McCutcheon and park officials, is not the place to dump animals. It's wooded, home to wild animals such as coyotes, and the pets will find little food or water."
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Sunday, October 05, 2008
FOXNews.com - Mass. Asks About Federal Loan Amid Market Worries : "BOSTON — The treasurer of Massachusetts has asked the federal government about lending Massachusetts money under the same favorable terms it has given banks and firms during the financial crisis.
Treasurer Timothy Cahill's requests to the U.S. Treasury and Federal Reserve Bank of Boston this week were prompted by the state's inability to borrow from the short-term debt markets, The Boston Globe reported Saturday. The financial turmoil has caused credit markets to stop lending, or to charge prohibitive rates."
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First California, now Massachusetts. Two down, 48 to go. Then there are 88,000 local governments, followed by 300,000 or so community associations. Who comes after that?
Political Punch
Put on your muck boots: Into the mire we go: "With the news that the McCain campaign is launching a full assault on Obama's associates, preparedness, and judgment in a TV ad campaign to start Wednesday -- as detailed in this morning's Washington Post -- the Obama campaign is planning a pre-emptive assault on the TV airwaves to start Monday."
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Enough about the economy and foreign policy. Time to get into mud-slinging!
As a political scientist I have been expecting this.
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Enough about the economy and foreign policy. Time to get into mud-slinging!
As a political scientist I have been expecting this.
Saturday, October 04, 2008
ESCONDIDO:Barron aims to restore city's reputation, attract corporations : North County Times - Californian
ESCONDIDO:Barron aims to restore city's reputation, attract corporations : North County Times - Californian: "A political novice, Barron said he has learned quite a bit about leadership serving as president of the Las Palmas Homeowners Association the past few years."
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Escondido is in north San Diego County. Their mayor has some big ideas. I hope his HOA experience stands him in good stead.
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Escondido is in north San Diego County. Their mayor has some big ideas. I hope his HOA experience stands him in good stead.
Home crisis hampers HOAs | InsideNova.com
Home crisis hampers HOAs | InsideNova.com: "Homeowners' associations got lost somewhere in the shuffle of the home mortgage lending crisis.
No one knows that better than Deby Wine, the president of the Brandy Station Homeowners Association.
The Manassas Park HOA has become a revenue graveyard where many residents pay their quarterly association dues late or don't pay at all, said Win"
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And I wouldn't be expecting a federal HOA bailout anytime soon. The bread line is pretty long right now.
No one knows that better than Deby Wine, the president of the Brandy Station Homeowners Association.
The Manassas Park HOA has become a revenue graveyard where many residents pay their quarterly association dues late or don't pay at all, said Win"
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And I wouldn't be expecting a federal HOA bailout anytime soon. The bread line is pretty long right now.
Bill Clinton's drive to increase homeownership went way too far - BusinessWeek
Bill Clinton's drive to increase homeownership went way too far - BusinessWeek: "Add President Clinton to the long list of people who deserve a share of the blame for the housing bubble and bust. A recently re-exposed document shows that his administration went to ridiculous lengths to increase the national homeownership rate. It promoted paper-thin downpayments and pushed for ways to get lenders to give mortgage loans to first-time buyers with shaky financing and incomes. It’s clear now that the erosion of lending standards pushed prices up by increasing demand, and later led to waves of defaults by people who never should have bought a home in the first place."
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This item is from February. The blog author relies on and links to analysis by Prof. Joseph Mason of Drexel Univerisity who analyzes the Clinton Administration's National Homeownership Strategy. This policy got underway in 1994 or 1995 and was intended to increase the home ownership rate by making it possible for people to buy houses even though they could not come up with a down payment, did not have enough money to make normal interest-plus-principal payments, or otherwise couldn't afford to buy a house in the first place. Clinton gave numerous speeches throughout his administration boasting of the success of the program.
As I keep saying, I don't see how any one culprit can be identified here. But Clinton is skating on what amounted to the intentional creation of a world of bad debt, backed up by GSEs.
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This item is from February. The blog author relies on and links to analysis by Prof. Joseph Mason of Drexel Univerisity who analyzes the Clinton Administration's National Homeownership Strategy. This policy got underway in 1994 or 1995 and was intended to increase the home ownership rate by making it possible for people to buy houses even though they could not come up with a down payment, did not have enough money to make normal interest-plus-principal payments, or otherwise couldn't afford to buy a house in the first place. Clinton gave numerous speeches throughout his administration boasting of the success of the program.
As I keep saying, I don't see how any one culprit can be identified here. But Clinton is skating on what amounted to the intentional creation of a world of bad debt, backed up by GSEs.
French PM says world 'on edge of abyss' | Business News | Reuters
French PM says world 'on edge of abyss' | Business News | Reuters: "Prime Minister Fillon, whose country is hosting an emergency summit of Italian, British and German leaders on Saturday, said only collective action could solve the financial crisis. He said he would not rule out any solution to stop any bank failing.
'The world is on the edge of the abyss because of an irresponsible system,' Fillon said, alluding to widespread anger over past lax regulation of financial markets and excessive lending."
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Here in the US the media portray this as an American problem and the political class seems to go along with that, but the fact is that European banks have been doing the same things that drove American banks under. It wasn't just based on risky home loans. All kinds of debt were used to create a bizarre unregulated aftermarket consisting of various forms of derivatives that I don't remotely understand. George Soros has a book out on this. Back in March he was predicting that the crash of the $50 trillion credit default swap market would dwarf the previous bank failures. I'm not a Soros fan but his argument on the failure of the neoclassical economics model is very persuasive.
'The world is on the edge of the abyss because of an irresponsible system,' Fillon said, alluding to widespread anger over past lax regulation of financial markets and excessive lending."
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Here in the US the media portray this as an American problem and the political class seems to go along with that, but the fact is that European banks have been doing the same things that drove American banks under. It wasn't just based on risky home loans. All kinds of debt were used to create a bizarre unregulated aftermarket consisting of various forms of derivatives that I don't remotely understand. George Soros has a book out on this. Back in March he was predicting that the crash of the $50 trillion credit default swap market would dwarf the previous bank failures. I'm not a Soros fan but his argument on the failure of the neoclassical economics model is very persuasive.
FOXNews.com - Lawmaker Accused of Fannie Mae Conflict of Interest - Politics | Republican Party | Democratic Party | Political Spectrum
FOXNews.com - Lawmaker Accused of Fannie Mae Conflict of Interest - Politics | Republican Party | Democratic Party | Political Spectrum: "WASHINGTON — Unqualified home buyers were not the only ones who benefitted from Massachusetts Rep. Barney Frank’s efforts to deregulate Fannie Mae throughout the 1990s. So did Frank’s partner, a Fannie Mae executive at the forefront of the agency’s push to relax lending restrictions. Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannie’s assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie."
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That is "partner" as in "life partner," not business partner.
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That is "partner" as in "life partner," not business partner.
Foreclosure Alley - SoCal Connected
Foreclosure Alley - SoCal Connected: "For the past few years, the Inland Empire in Riverside County has been one of the fastest growing counties in the state - home to a major housing boom. But now the Inland Empire is pretty much the poster child for the foreclosure crisis. In the newer developments, house after house sits vacant - either up for auction, for sale by a bank or going for what’s called a “short sale” which is when the owner owes more than the house is worth."
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Wow. All they need is some zombies staggering around. What a disaster.
Thanks to Fred Pilot for this grim link.
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Wow. All they need is some zombies staggering around. What a disaster.
Thanks to Fred Pilot for this grim link.
Friday, October 03, 2008
Woman, 90, shoots self inside foreclosed home - CNN.com
Woman, 90, shoots self inside foreclosed home - CNN.com: "(CNN) -- A 90-year-old Akron, Ohio, woman who shot herself as sheriff's deputies tried to evict her from her foreclosed home became a symbol of the nation's home mortgage crisis Friday. Fannie Mae foreclosed on the Akron, Ohio, home of Addie Polk, 90, after acquiring the mortgage in 2007. Addie Polk is being treated at Akron General Medical Center after shooting herself at least twice in the upper body Wednesday afternoon, her city councilman said."
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Fannie Mae Eases Credit To Aid Mortgage Lending - New York Times
New York Times, September 30, 1999: Fannie Mae Eases Credit To Aid Mortgage Lending: "In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans."
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And there you have the essence of the problem. The Clinton Administration and the banking industry were eager to have Fannie Mae underwrite the enormous risk involved in lending money to people so they could buy houses that were beyond their means.
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And there you have the essence of the problem. The Clinton Administration and the banking industry were eager to have Fannie Mae underwrite the enormous risk involved in lending money to people so they could buy houses that were beyond their means.
Feral cats to be trapped - Milford, MA - The Milford Daily News
Feral cats to be trapped - Milford, MA - The Milford Daily NewsFRANKLIN —The Highwood Condominium Association's board of trustees has decided to trap and euthanize a colony of feral cats at the complex that has been the center of a neighborhood dispute, according to Animal Control Officer Cindy Souza. The move may be illegal, however, depending on who actually owns the woods where the cats roam and eat, she said.
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It says at one time they had over 200 of these creatures and they were jumping out of trash bins and biting people. A feral cat bit my son when he was 6 and we were vacationing in St. Maarten. They look cute up until they attack. But why does the association have to do this? Shouldn't the Animal Control people be doing this on public land, and going on private land with the association's permission, instead of reading from the rule book?
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It says at one time they had over 200 of these creatures and they were jumping out of trash bins and biting people. A feral cat bit my son when he was 6 and we were vacationing in St. Maarten. They look cute up until they attack. But why does the association have to do this? Shouldn't the Animal Control people be doing this on public land, and going on private land with the association's permission, instead of reading from the rule book?
Quick Takes: Protest Over Political Ban at Illinois, Another Scandal for Pa. Loan Agency, Patent Loss for Johns Hopkins, Sick Students at Georgetown, Ig Nobel Prizes :: Inside Higher E
Protest Over Political (make that "Obama") Ban at Illinois: "Faculty members held a rally at the University of Illinois at Urbana-Champaign to back the Obama presidential campaign Thursday to show that they will not follow guidelines issued by the university that bar them from rallies or wearing political buttons on campus, the Chicago Tribune reported. The university says it isn’t enforcing the guidelines, which it says are required by state law."
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Nothing will happen to them for defying the ban. The U of I faculty will continue electioneering for Obama in every arena, including the classroom, and nothing will be done about it.
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Nothing will happen to them for defying the ban. The U of I faculty will continue electioneering for Obama in every arena, including the classroom, and nothing will be done about it.
Schwarzenegger to U.S.: State may need $7-billion loan - Los Angeles Times
Schwarzenegger to U.S.: State may need $7-billion loan - Los Angeles Times: "SACRAMENTO -- California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks The warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent."
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California isn't the only government that can't get a loan. But that state has been spending and regulating itself into insolvency for a long time, and the voters have made it worse by passing initiative measures that crippled the government (property tax cap, term limits, etc.) Add to that a new pattern of population movement--immigration of low income people and out-migration of the middle class to Nevada, Utah, Arizona, Colorado, etc., topped off with socialist mayors running LA and SF, oblivious to economic realities. The last thing the state needed was having their credit card cut up.
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California isn't the only government that can't get a loan. But that state has been spending and regulating itself into insolvency for a long time, and the voters have made it worse by passing initiative measures that crippled the government (property tax cap, term limits, etc.) Add to that a new pattern of population movement--immigration of low income people and out-migration of the middle class to Nevada, Utah, Arizona, Colorado, etc., topped off with socialist mayors running LA and SF, oblivious to economic realities. The last thing the state needed was having their credit card cut up.
Thursday, October 02, 2008
TEACHERS TOLD NOT TO WEAR OBAMA BUTTONS - New York Post
TEACHERS TOLD NOT TO WEAR OBAMA BUTTONS - New York Post: "The teachers union has been handing out thousands of Barack Obama campaign buttons to its members, sparking a clampdown by education brass.
The Department of Education - which has a long-standing policy barring teachers from wearing campaign buttons in schools - is set to send out an e-mail this week from Schools Chancellor Joel Klein laying down the law."
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This is looking like a concerted effort by teachers' unions to use their access to students for pro-Obama activism. Clearly, the Obama campaign knows how to influence and organize young people. And the teachers' unions are not hindered by rules against activism in the classroom.
The Department of Education - which has a long-standing policy barring teachers from wearing campaign buttons in schools - is set to send out an e-mail this week from Schools Chancellor Joel Klein laying down the law."
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This is looking like a concerted effort by teachers' unions to use their access to students for pro-Obama activism. Clearly, the Obama campaign knows how to influence and organize young people. And the teachers' unions are not hindered by rules against activism in the classroom.
Virginia Teachers Union Sparks Outrage With 'Obama Blue Day' - FOXNews.com Elections
Virginia Teachers Union Sparks Outrage With 'Obama Blue Day' - FOXNews.com Elections: "Virginia Republicans are in an uproar after the state teacher's union sent an e-mail to its members encouraging them to wear blue-colored shirts to school to show their support for Barack Obama.
State Republicans are calling it an undisguised attempt to influence students' political views.
The Virginia Education Association sponsored 'Obama Blue Day' on Tuesday. In an e-mail sent last week, it urged teachers to participate by dressing in blue."
State Republicans are calling it an undisguised attempt to influence students' political views.
The Virginia Education Association sponsored 'Obama Blue Day' on Tuesday. In an e-mail sent last week, it urged teachers to participate by dressing in blue."
What They Said About Fan and Fred - WSJ.com: "House Financial Services Committee hearing, Sept. 10, 2003:
Rep. Barney Frank (D., Mass.): 'I worry, frankly, that there's a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . .'
Sen. Charles Schumer (D., N.Y.): 'And my worry is that we're using the recent safety and soundness concerns, particularly with Freddie, and with a poor regulator, as a straw man to curtail Fannie and Freddie's mission. And I don't think there is any doubt that there are some in the administration who don't believe in Fannie and Freddie altogether, say let the private sector do it. That would be sort of an ideological position.'."
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There is more, and from a number of Democrats who are now blaming the whole thing on the Republicans. It wasn't all the Democrats fault, either, but it does take a certain chutzpah for Barney Frank to say the things he has said in the last week, after saying what he did five years ago. He was warned, and so were others, and they not only ignored the warnings, they criticized the people who delivered the news.
Rep. Barney Frank (D., Mass.): 'I worry, frankly, that there's a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . .'
Sen. Charles Schumer (D., N.Y.): 'And my worry is that we're using the recent safety and soundness concerns, particularly with Freddie, and with a poor regulator, as a straw man to curtail Fannie and Freddie's mission. And I don't think there is any doubt that there are some in the administration who don't believe in Fannie and Freddie altogether, say let the private sector do it. That would be sort of an ideological position.'."
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There is more, and from a number of Democrats who are now blaming the whole thing on the Republicans. It wasn't all the Democrats fault, either, but it does take a certain chutzpah for Barney Frank to say the things he has said in the last week, after saying what he did five years ago. He was warned, and so were others, and they not only ignored the warnings, they criticized the people who delivered the news.
Financial Crisis: So much for tirades against American greed - Telegraph
Financial Crisis: So much for tirades against American greed - Telegraph: "It took a weekend to shatter the complacency of German finance minister Peer Steinbrück. Last Thursday he told us that the financial crisis was an 'American problem', the fruit of Anglo-Saxon greed and inept regulation that would cost the United States its 'superpower status'. Pleas from US Treasury Secretary Hank Paulson for a joint US-European rescue plan to halt the downward spiral were rebuffed as unnecessary. By Monday, Mr Steinbrück was having to orchestrate Germany's biggest bank bail-out, putting together a €35 billion loan package to save Hypo Real Estate. By then Europe was 'staring into the abyss,' he admitted. Belgium faced worse. It had to nationalise Fortis (with Dutch help), a 300-year-old bastion of Flemish finance, followed a day later by a bail-out for Dexia (with French help).
Within hours they were all trumped by Dublin. The Irish government issued a blanket guarantee of the deposits and debts of its six largest lenders in the most radical bank bail-out since the Scandinavian rescues in the early 1990s. Then France upped the ante with a €300 billion pan-European lifeboat for the banks. The drama has exposed Europe's dark secret for all to see. EU banks took on even more debt leverage than their US counterparts, despite the tirades against ''le capitalisme sauvage'' of the Anglo-Saxons."
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I made note below of Steinbruck's condescension. Now it turns out that our sophisticated European betters, from whom we in the colonies need to learn so much, are in even worse shape due to their own risky credit practices.
Within hours they were all trumped by Dublin. The Irish government issued a blanket guarantee of the deposits and debts of its six largest lenders in the most radical bank bail-out since the Scandinavian rescues in the early 1990s. Then France upped the ante with a €300 billion pan-European lifeboat for the banks. The drama has exposed Europe's dark secret for all to see. EU banks took on even more debt leverage than their US counterparts, despite the tirades against ''le capitalisme sauvage'' of the Anglo-Saxons."
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I made note below of Steinbruck's condescension. Now it turns out that our sophisticated European betters, from whom we in the colonies need to learn so much, are in even worse shape due to their own risky credit practices.
Wednesday, October 01, 2008
IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Fannie, Freddie Critic Ridiculed In 2000
IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Fannie, Freddie Critic Ridiculed In 2000: "It is now consensus that Fannie Mae and Freddie Mac are at the heart of the systemic meltdown we are seeing in the mortgage market. They are costing taxpayers billions through their own bailouts and through the role they played in fueling an artificial mortgage boom. But eight years ago, when I testified before Congress that Fannie Mae and Freddie Mac's 'special privileges create a serious hazard to the market, to taxpayers (and) to the economy,' my criticism of these sacred financial entities was met with ridicule."
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He wasn't alone. Other people said similar things, and there was even legislation introduced that would have increased oversight of the GSEs. Nothing passed because numerous members of Congress rushed to Fannie Mae's defense. Maybe somebody should see who got what campaign contributions from whom. Maybe somebody with subpoena power might want to look into what other benefits certain people might have received.
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He wasn't alone. Other people said similar things, and there was even legislation introduced that would have increased oversight of the GSEs. Nothing passed because numerous members of Congress rushed to Fannie Mae's defense. Maybe somebody should see who got what campaign contributions from whom. Maybe somebody with subpoena power might want to look into what other benefits certain people might have received.
Teachers asked to remove Obama buttons in class - Santa Cruz Sentinel
Teachers asked to remove Obama buttons in class - Santa Cruz Sentinel: "SOQUEL -- Teachers at Soquel High School have agreed not to wear 'Educators for Obama' buttons in the classroom after a parent complained that educators were attempting to politically influence his daughter and other students."
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Hey, what about all the teachers who were wearing McCain buttons? Oh...there weren't any. What a surprise.
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Hey, what about all the teachers who were wearing McCain buttons? Oh...there weren't any. What a surprise.
Tuesday, September 30, 2008
Saudi woman driver hurt after defying ban
Saudi woman driver hurt after defying ban: "A young woman in Saudi Arabia who defied ultra-conservative kingdom's ban on women driving was injured when the car span out of control and plunged into a stream, a newspaper reported on Tuesday. The unnamed woman in her 20s 'stole' her brother's car on Sunday, picked up a female friend and drove at high speed through a town in the Eastern Province before losing control of the vehicle, Al-Riyadh said. The car hit an electricity pole and plunged into an irrigation channel. Both the driver and her friend were taken to hospital in serious condition, the paper said."
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The Saudi version of Thelma and Louise. And these policies continue because the nation sits on an ocean of crude oil.
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The Saudi version of Thelma and Louise. And these policies continue because the nation sits on an ocean of crude oil.
Feds, D.A. rebuffed HOA members - Face To Face: Final Take - Las Vegas Sun
Feds, D.A. rebuffed HOA members - Face To Face: Final Take - Las Vegas Sun: "he woman who brought her suspicions about collusion on her homeowners association board to the attention of the FBI says she didn't get far. Wanda Murray tells Jon on tonight's program that the feds deemed the issue a civil matter and had no interest. Ditto for the District Attorney, where Murray says she and her neighbors failed to get past the secretary.
So what got law enforcement to take notice? Tune in tonight to hear State Sen. Mike Schneider's (D-Clark) contention that the alleged activity extends beyond Nevada."
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So now we have two different stories of how this investigation got started, but Senator Mike's story is not out yet...stay tuned. Expiring minds want to know.
So what got law enforcement to take notice? Tune in tonight to hear State Sen. Mike Schneider's (D-Clark) contention that the alleged activity extends beyond Nevada."
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So now we have two different stories of how this investigation got started, but Senator Mike's story is not out yet...stay tuned. Expiring minds want to know.
From the Center for California Homeowner Association Law: the inside scoop on the Las Vegas HOA investigation
"So how exactly did five senior homeowners get the FBI to investigate possible fraud and collusion in their homeowner association? By doggedly collecting association records, by studying the facts, by keeping their ears open, by being patient, and by not giving up –- for three long years. On Aug. 22, 2005, Bill Farnsworth, Wanda Murray and three other owners of condominiums at the Rhodes Homes development of Vistaña walked into the local headquarters of the Federal Bureau of Investigation. In their possession was a 3-inch thick, three-ring binder full of records and other papers documenting -- at the least -- what they thought were serious conflicts of interest involving their homeowner association board of directors. At the most, they believed the records showed a possibility of collusion between members of the board, which included a former Las Vegas police lieutenant, to steer work toward a Las Vegas construction firm, Silver Lining Construction. The group of angry and diligent senior homeowners appears to have been on to something. The names contained in their three-ring binder largely correspond to those in a federal warrant served last week on two management companies, two association law firms, and seven associations. Read the story of these patient, dogged seniors on the CCHAL website [www.calhomelaw.org/] The link is http://calhomelaw.org/doc.asp?id=849."
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Fascinating story and well worth reading. Thanks to Marjorie Murray of CCHAL for sending this note. But there is another account out there saying that the owners were initially rebuffed by the DA and the FBI, who viewed it as a civil matter. That would be par for the course. Something else, other than a citizen complaint, must have happened to trigger the criminal probe.
"So how exactly did five senior homeowners get the FBI to investigate possible fraud and collusion in their homeowner association? By doggedly collecting association records, by studying the facts, by keeping their ears open, by being patient, and by not giving up –- for three long years. On Aug. 22, 2005, Bill Farnsworth, Wanda Murray and three other owners of condominiums at the Rhodes Homes development of Vistaña walked into the local headquarters of the Federal Bureau of Investigation. In their possession was a 3-inch thick, three-ring binder full of records and other papers documenting -- at the least -- what they thought were serious conflicts of interest involving their homeowner association board of directors. At the most, they believed the records showed a possibility of collusion between members of the board, which included a former Las Vegas police lieutenant, to steer work toward a Las Vegas construction firm, Silver Lining Construction. The group of angry and diligent senior homeowners appears to have been on to something. The names contained in their three-ring binder largely correspond to those in a federal warrant served last week on two management companies, two association law firms, and seven associations. Read the story of these patient, dogged seniors on the CCHAL website [www.calhomelaw.org/] The link is http://calhomelaw.org/doc.asp?id=849."
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Fascinating story and well worth reading. Thanks to Marjorie Murray of CCHAL for sending this note. But there is another account out there saying that the owners were initially rebuffed by the DA and the FBI, who viewed it as a civil matter. That would be par for the course. Something else, other than a citizen complaint, must have happened to trigger the criminal probe.
Monday, September 29, 2008
Biden Focuses on Debate Prep, Mishears Question on Rejection of Bailout Bill - From The Road
Biden Focuses on Debate Prep, Mishears Question on Rejection of Bailout Bill - From The Road: "As he exited the hotel for his dinner break, Biden was asked “Senator, can we get your reaction to the House bill not passing?”
Biden interrupted the question with a “Hey folks,” to reporters and then said “Oh, things are going well.”
Biden’s press secretary, David Wade, sent an e-mail minutes later, saying “the senator thought you asked how prep was going” for this week’s debate with Gov. Sarah Palin.
Prior to Biden's departure, the press was moved further away from the hotel's exit, perhaps far enough away that it prevented Biden from clearly hearing the question."
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When Biden shows he is out of touch, the press painstakingly explains it away. But when Palin asks Charlie Gibson for a clarification of an ambiguous question, the press portrays her as a dunce.
Biden interrupted the question with a “Hey folks,” to reporters and then said “Oh, things are going well.”
Biden’s press secretary, David Wade, sent an e-mail minutes later, saying “the senator thought you asked how prep was going” for this week’s debate with Gov. Sarah Palin.
Prior to Biden's departure, the press was moved further away from the hotel's exit, perhaps far enough away that it prevented Biden from clearly hearing the question."
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When Biden shows he is out of touch, the press painstakingly explains it away. But when Palin asks Charlie Gibson for a clarification of an ambiguous question, the press portrays her as a dunce.
Power Line: Was the Bailout Vote a Partisan Set-Up?: "Everyone has heard about the weirdly partisan and inaccurate rant which Pelosi contributed to the debate on the bailout bill. But that speech did not take place in a vacuum. Public opinion is running strongly against the bill, and it required political courage to vote for it. If you look at the list of those who voted 'No' in both parties, it is mostly members who are engaged in tough re-election campaigns. This is true on both sides of the aisle.
That being the case, and given the fact that the legislation was in fact a negotiated, bipartisan compromise, the first duty of the majority party is to line up its members to support the majority's bill. But evidence is growing that the Democrats did no such thing.
As of yesterday, the Democrats' House whip, Jim Clyburn said that he hadn't even begun 'whipping' Democratic representatives, and wouldn't do so unless and until he got orders from Nancy Pelosi. Today, Democratic Congressman Peter DeFazio told NPR that he never was 'whipped' on the bill. So Pelosi evidently left Democrats to vote their consciences--which is to say, vote against the bill if they thought it was politically necessary--while counting on Republicans to put the bill over the top.
This is a classic Charlie Brown and the football maneuver. Pelosi gives a speech that frames the issue, falsely, as the issue, falsely, as the result of bad Republican policies, then allows her own threatened representatives to do the popular thing while expecting Republicans to take one for the team by casting an unpopular vote. Which, of course, their Democratic opponents would use against them, thereby increasing the Democratic majority in the House.
If this was Pelosi's plan it failed, in part, perhaps, because her over-the-top partisan diatribe tipped off Republicans as to what was afoot. If, as it now appears, it's true that the Democrats made no serious effort to pass the bailout bill, it is just one more example of the failure of leadership we have seen since they took control of Congress."
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This is Powerline's explanation of why the bailout bill collapsed in the House. It is the only explanation for Pelosi's behavior that makes sense to me. I read Pelosi's speech and it was an attack on the Republicans she was expecting to vote for it. Here are some documents that are posted on the House Financial Services Committee web page along with the bill and summaries of it:
On Housing Finance, the Difference between Democrats and Republicans Has Been Night and Day
The Truth about the Community Reinvestment Act
The Truth versus the Republicans on the Regulation of Subprime Mortgages and Fannie Mae and Freddie Mac
The Democrats were being highly partisan in presenting this bill to the public as a fix for Republican failures, which is not true. That would be fair enough given that they have the majority, as long as they pass it as a Democrat bill. But Pelosi wanted to have her cake and eat it. She let the Democrats off the hook. Pelosi did not use her power to get all the Democrats in line, which she certainly could have done. She was counting on a whole lot of Republican support. She got lots of them, but not enough. About 94 Democrats voted against it, and they are a laundry list of the left wing of her party. The Democrats, not the White House, wrote this bill, and Pelosi seriously screwed up. Now it is back to the drawing board and we will see what happens later this week.
Homeowner links cameras to city cops :: CHICAGO SUN-TIMES :: Chicago Crime
Homeowner links cameras to city cops :: CHICAGO SUN-TIMES :: Chicago Crime: "Hill has become the first private homeowner to take the city up on its unprecedented offer to connect privately owned exterior surveillance cameras to Chicago's 911 emergency center...Nearly two dozen colleges, businesses and high-rises also have agreed to share their video with the 911 center to create a panoramic view of disaster scenes.
They include Boeing, Macy's, the Chicago Mercantile Exchange, the Chicago Board Options Exchange, Blue Cross-Blue Shield, Golub & Company, JPMorgan Chase Bank, Sears Tower, Prudential Plaza, the Cook County Administration Building, Rush Hospital, Columbia College, Harold Washington College, St. Xavier University, DePaul University, Roosevelt University, Ike Sims Village and an association of State Street merchants.
After the deadly school shootings at Northern Illinois University and Virginia Tech, DePaul is hooking up at least 15 cameras at its Lincoln Park and South Loop campuses at a cost of roughly $10,000 for computer servers and switches."
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I wonder if any condo buildings are on the list. It says "high-rises," but that would include business towers.
They include Boeing, Macy's, the Chicago Mercantile Exchange, the Chicago Board Options Exchange, Blue Cross-Blue Shield, Golub & Company, JPMorgan Chase Bank, Sears Tower, Prudential Plaza, the Cook County Administration Building, Rush Hospital, Columbia College, Harold Washington College, St. Xavier University, DePaul University, Roosevelt University, Ike Sims Village and an association of State Street merchants.
After the deadly school shootings at Northern Illinois University and Virginia Tech, DePaul is hooking up at least 15 cameras at its Lincoln Park and South Loop campuses at a cost of roughly $10,000 for computer servers and switches."
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I wonder if any condo buildings are on the list. It says "high-rises," but that would include business towers.
FBI investigates Las Vegas HOA corruption/ September 26, 2008 at Center for California Homeowner Association Law: "According to a law enforcement source, the FBI is investigating whether individuals were placed on homeowners association boards who, in turn, would direct business stemming from construction defect lawsuits to select companies.
At issue, according to the source, is whether HOA members were steering contracts to certain construction companies.
Other sources said there has long been speculation that some HOA representatives were hiring certain law firms to handle construction defect lawsuits in exchange for kickbacks.
State Sen. Mike Schneider, D-Las Vegas, a lawmaker who has been involved in homeowners association issues before the Legislature, said the speculation involved management companies steering construction defect business to law firms in exchange for kickbacks."
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I don't know anything about the merits of the cases that are being investigated, but the political ramifications intrigue me. I'm wondering if this case will turn out to be Exhibit A for why Nevada needs to pass legislation cutting back on the ability of community associations to file construction defect suits. Developers in many states have been arguing for decades that CID construction defect litigation is a racket.
Now here we are with the housing market in tatters. New homes are not selling, developers are in bad shape financially, and of course attorneys representing all the existing developments are filing litigation regardless. Now, on top of everything, the credit markets just imploded.
This case, if it proves to be a real example of criminal conduct, could be the wedge that developers need to open a policy window and enact such measures as:
1. Mandatory binding arbitration
2. Caps on attorney fees
3. Caps on damages--such as going to the traditional rule of cost of repair or diminution in value, whichever is less. Often the diminution in value is zero or very speculative. Cost of repair is the only thing that makes sense for an HOA.
4. Mandatory meet and confer requirements with the developer having a chance to repair
5. Having court appointed experts do the repair estimate
6. Changing the burden of proof or the test for recovery, or otherwise raising the bar for proving the case
Here is some historical background. In 1995, California passed a law that made it harder to file these suits. My informal understanding of things is that a number of California construction defect attorneys migrated to Las Vegas and Arizona in hopes of finding greener pastures in the desert, so to speak. These attorneys have done well for themselves, but now I think they may find themselves in an uncomfortable spotlight. This is a hard issue, because if there are serious defects in original construction, there has to be a real remedy for these associations. There has been a lot of shoddy construction, especially during housing booms. But the fees are so high for the attorneys involved, and the risks and cost of litigation so high for the developer and insurance companies, that there is always a temptation for some practitioners to trump up a damage claim in the hope of a settlement. If you want examples of ethical attorneys pursuing valid claims, you can find them, but if you want bad apples, you can find those too.
At issue, according to the source, is whether HOA members were steering contracts to certain construction companies.
Other sources said there has long been speculation that some HOA representatives were hiring certain law firms to handle construction defect lawsuits in exchange for kickbacks.
State Sen. Mike Schneider, D-Las Vegas, a lawmaker who has been involved in homeowners association issues before the Legislature, said the speculation involved management companies steering construction defect business to law firms in exchange for kickbacks."
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I don't know anything about the merits of the cases that are being investigated, but the political ramifications intrigue me. I'm wondering if this case will turn out to be Exhibit A for why Nevada needs to pass legislation cutting back on the ability of community associations to file construction defect suits. Developers in many states have been arguing for decades that CID construction defect litigation is a racket.
Now here we are with the housing market in tatters. New homes are not selling, developers are in bad shape financially, and of course attorneys representing all the existing developments are filing litigation regardless. Now, on top of everything, the credit markets just imploded.
This case, if it proves to be a real example of criminal conduct, could be the wedge that developers need to open a policy window and enact such measures as:
1. Mandatory binding arbitration
2. Caps on attorney fees
3. Caps on damages--such as going to the traditional rule of cost of repair or diminution in value, whichever is less. Often the diminution in value is zero or very speculative. Cost of repair is the only thing that makes sense for an HOA.
4. Mandatory meet and confer requirements with the developer having a chance to repair
5. Having court appointed experts do the repair estimate
6. Changing the burden of proof or the test for recovery, or otherwise raising the bar for proving the case
Here is some historical background. In 1995, California passed a law that made it harder to file these suits. My informal understanding of things is that a number of California construction defect attorneys migrated to Las Vegas and Arizona in hopes of finding greener pastures in the desert, so to speak. These attorneys have done well for themselves, but now I think they may find themselves in an uncomfortable spotlight. This is a hard issue, because if there are serious defects in original construction, there has to be a real remedy for these associations. There has been a lot of shoddy construction, especially during housing booms. But the fees are so high for the attorneys involved, and the risks and cost of litigation so high for the developer and insurance companies, that there is always a temptation for some practitioners to trump up a damage claim in the hope of a settlement. If you want examples of ethical attorneys pursuing valid claims, you can find them, but if you want bad apples, you can find those too.
O'S DANGEROUS PALS - New York Post: "WHAT exactly does a 'community organizer' do? Barack Obama's rise has left many Americans asking themselves that question. Here's a big part of the answer: Community organizers intimidate banks into making high-risk loans to customers with poor credit.
In the name of fairness to minorities, community organizers occupy private offices, chant inside bank lobbies, and confront executives at their homes - and thereby force financial institutions to direct hundreds of millions of dollars in mortgages to low-credit customers.
In other words, community organizers help to undermine the US economy by pushing the banking system into a sinkhole of bad loans. And Obama has spent years training and funding the organizers who do it."
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I wonder if this will go anywhere as an issue. Probably not. With a colossal economic bomb exploding five weeks before the election, on top of the five-year Iraq war and presidential job approval ratings that are like winter temperature in Fairbanks, it is hard to see how Obama can lose.
But on the merits of the issues (remember those?), there is more to the problem than the Community Reinvestment Act. However, that entire policy--forcing banks to lend to low-income borrowers--needs to be examined. McCain should be raising this issue loud and clear, and Obama should explain why we need this policy.
In the name of fairness to minorities, community organizers occupy private offices, chant inside bank lobbies, and confront executives at their homes - and thereby force financial institutions to direct hundreds of millions of dollars in mortgages to low-credit customers.
In other words, community organizers help to undermine the US economy by pushing the banking system into a sinkhole of bad loans. And Obama has spent years training and funding the organizers who do it."
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I wonder if this will go anywhere as an issue. Probably not. With a colossal economic bomb exploding five weeks before the election, on top of the five-year Iraq war and presidential job approval ratings that are like winter temperature in Fairbanks, it is hard to see how Obama can lose.
But on the merits of the issues (remember those?), there is more to the problem than the Community Reinvestment Act. However, that entire policy--forcing banks to lend to low-income borrowers--needs to be examined. McCain should be raising this issue loud and clear, and Obama should explain why we need this policy.
Sunday, September 28, 2008
Meettheboss.com: Advisers greet a financial 'Facebook' - InvestmentNews: "A free multimedia site for senior financial executives, MeettheBoss .com, which was launched this month, is a virtual community intended to foster communication among an elite group with shared interests."
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MEETTHEBOSS.COM is being called a virtual gated community. How nice for them to have a place where they can discuss plummeting stock prices, bankruptcy, golden parachutes, and government bailouts.
AB 2846 Assembly Bill - ENROLLED
AB 2846 Assembly Bill - ENROLLED: signed by The Governator of Kaleeforneea: "This bill would provide that, if a dispute exists between the owner of a separate interest and the homeowners' association regarding any disputed charge or sum levied by the association, and the amount in dispute does not exceed the jurisdictional limits of the small claims court, the owner of the separate interest may pay under protest the disputed amount and all other amounts levied, including certain fees, costs, and other specified amounts, and commence an action in small claims court."
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My understanding is that Marjorie Murray and her organization, the Center for California Homeowner Association Law, have been pushing this concept for a long time. Congratulations, and I hope it works. And thanks to Fred Pilot for the notice.
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My understanding is that Marjorie Murray and her organization, the Center for California Homeowner Association Law, have been pushing this concept for a long time. Congratulations, and I hope it works. And thanks to Fred Pilot for the notice.
German leader warns U.S. superpower era is over - UPI.com: "Indeed, it looks increasingly likely that the dollar will not even remain the leading reserve currency. For several years, Arab nations, led by Saudi Arabia, that were alarmed by the financial measures included in the Patriot Act have quietly been transferring hundreds of billions of dollars into euros. And strongly anti-American but major oil-producing nations such as Iran and Venezuela certainly have been talking themselves in that direction. Now Russia, the largest combined oil and gas energy exporter in the world, is talking about using its record financial reserves to create a gold ruble. The dollar has not been backed by gold since President Franklin D. Roosevelt was forced to effectively devalue it by taking it off the gold standard in 1933."
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But let's keep talking about Sarah Palin's interview with Katie Couric and Barack Obama's bracelet. Important stuff like that. We wouldn't want the presidential campaign to get bogged down in press coverage of tedious public policy issues.
Behind AIG's Crisis, Blind Eye to a Web of Risk - NYTimes.com: "Although America’s housing collapse is often cited as having caused the crisis, the system was vulnerable because of intricate financial contracts known as credit derivatives, which insure debt holders against default. They are fashioned privately and beyond the ken of regulators — sometimes even beyond the understanding of executives peddling them.
Originally intended to diminish risk and spread prosperity, these inventions instead magnified the impact of bad mortgages like the ones that felled Bear Stearns and Lehman and now threaten the entire economy."
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This is why the blame is all over the place, from Main Street to Wall Street to Washington, DC. People bought houses they knew they couldn't pay for. Banks lent them money, using a host of "here comes the foreclosure" deals: interest only, ARMS, no down payment, no verification of income and assets, and so on. Anything to make the loan. The federal reserve kept overall interest rates low to induce even more borrowing, and mortgage rates stayed low as well. Politicians ordered lenders to make risky loans to "first time home buyers" and got Fannie Mae into the business of buying them, and also left the derivatives market unregulated. Investors bought mortgage backed securities that everybody knew were backed by high-risk loans because of the guarantees from Fannie Mae and insurers. Insurers came up with "creative" credit derivatives such as the various kinds of credit default swaps to deal with the risk. But the whole house of cards was premised on housing prices going up forever, even though it had to be obvious to everybody that such a thing is completely impossible. And every single person in the housing market knew that sooner or later, when prices stopped going up, a huge number of people were going to lose their homes to foreclosure. They didn't know how far the consequences would go, but they sure knew the foreclosures were coming.
By the way, AIG's stock price went from $22.76 per share on Sept.8 to $2.05 on Sept. 17. Biggest insurance company in the world.
Originally intended to diminish risk and spread prosperity, these inventions instead magnified the impact of bad mortgages like the ones that felled Bear Stearns and Lehman and now threaten the entire economy."
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This is why the blame is all over the place, from Main Street to Wall Street to Washington, DC. People bought houses they knew they couldn't pay for. Banks lent them money, using a host of "here comes the foreclosure" deals: interest only, ARMS, no down payment, no verification of income and assets, and so on. Anything to make the loan. The federal reserve kept overall interest rates low to induce even more borrowing, and mortgage rates stayed low as well. Politicians ordered lenders to make risky loans to "first time home buyers" and got Fannie Mae into the business of buying them, and also left the derivatives market unregulated. Investors bought mortgage backed securities that everybody knew were backed by high-risk loans because of the guarantees from Fannie Mae and insurers. Insurers came up with "creative" credit derivatives such as the various kinds of credit default swaps to deal with the risk. But the whole house of cards was premised on housing prices going up forever, even though it had to be obvious to everybody that such a thing is completely impossible. And every single person in the housing market knew that sooner or later, when prices stopped going up, a huge number of people were going to lose their homes to foreclosure. They didn't know how far the consequences would go, but they sure knew the foreclosures were coming.
By the way, AIG's stock price went from $22.76 per share on Sept.8 to $2.05 on Sept. 17. Biggest insurance company in the world.
Saturday, September 27, 2008
Gated communities as artwork « Susan’s Writings
Gated communities as artwork « Susan’s Writings: "Gated communities, seen as a trend in many countries by conceptual artist Juan Kasari, is the topic of this exhibition. It is presented very well through a series of mixed media paintings and video works, and deals with a half-documentary micro cosmos. It is an art study of a closed community where people live their own private and sheltered lives outside of society, dreaming for security and prestige."
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At least Mr. Kasari doesn't insist that they are cowering in fear, expecting a horde of zombies to storm the gate moaning, "Brrraaaaiiiinnnnnssssss!"
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At least Mr. Kasari doesn't insist that they are cowering in fear, expecting a horde of zombies to storm the gate moaning, "Brrraaaaiiiinnnnnssssss!"
Credit crunch banker leaps to his death in front of express train | Mail Online
Credit crunch banker leaps to his death in front of express train | Mail Online: "The City was in shock last night after the apparent suicide of a millionaire financier haunted by the pressures of dealing with the credit crunch.
Kirk Stephenson, who was married with an eight-year-old son, died in the path of a 100mph express train at Taplow railway station, Berkshire.
Mr Stephenson is believed to have taken his own life after succumbing to mounting personal pressures as the world’s financial markets went into meltdown."
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This is sad. I was wondering when we would read of a suicide. That happened with Enron, too, and of course the stockbrokers leaping out windows was cartoon fodder from the Great Depression.
Kirk Stephenson, who was married with an eight-year-old son, died in the path of a 100mph express train at Taplow railway station, Berkshire.
Mr Stephenson is believed to have taken his own life after succumbing to mounting personal pressures as the world’s financial markets went into meltdown."
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This is sad. I was wondering when we would read of a suicide. That happened with Enron, too, and of course the stockbrokers leaping out windows was cartoon fodder from the Great Depression.
Who is attorney Nancy Quon?
This is the web page from her law firm. Says she is in CAI's Distinguished Speakers Club. Haven't seen anything from CAI yet on this exploding situation.
This is the web page from her law firm. Says she is in CAI's Distinguished Speakers Club. Haven't seen anything from CAI yet on this exploding situation.
FBI searches attorney's office as political corruption probe continues - Las Vegas Sun: "The latest search warrant served in the Las Vegas Valley in the ongoing investigation of possible political corruption was at a local attorney's office.
FBI agents went to attorney Nancy Quon, whose Web site says she represents homeowners associations, and seized more records, said KLAS-TV Channel 8 today.
A law enforcement task force first served search warrants at homes, offices and clubs all across the Las Vegas Valley Wednesday as part of what might become a political corruption investigation."
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This is an intriguing situation. The articles I have seen so far tell me that the press doesn't have the whole story yet. They say, "Lawmen believe [contractor Leon] Benzer and other persons conspired to take over the boards, hire Benzer to do repair work and funnel lucrative lawsuit cases to certain law firms." (I haven't seen police referred to as "lawmen" since the last John Wayne rerun I watched--lots of "lawmen" seem to be women these days.) The press seems to think that there is some sort of collusion among professionals, run by a contractor and enabled by rigged elections. Perhaps the argument is going to be that this contractor stage-manages elections and puts in BOD members who follow his orders and hire a certain law firm which in turn hires a particular set of experts who in turn present a case that generates a pot of money, the repairs are overseen by a certain property manager, and everybody profits.
But there are plenty of questions unanswered.
1. Such as, what exactly is the suspected crime that led to such a drastic step as searching an attorney's offices? Believe me, that is a big deal, because of attorney-client privilege. Obviously, I get why owners would be angry at having their associations taken over, but usually such things are civil matters. What made this one into a criminal investigation?
2. How can you have "outsiders" on an HOA or condo association BOD? Don't you have to be a member to serve as an officer?
3. If the vote total goes way up from one election to another, is that because of ballot box stuffing and/or ineligible voters, which obviously would be bad, or is it because somebody solicited votes from absentee owners? If the latter, why is that illegal? I get that the resident owners don't like it, but if absentee owners are members, don't they get to vote if they want to? If somebody helps them vote, so what? In political science we call that GOTV...Get Out the Vote. (It's the Chicago Way. We even have dead people voting here.) Don't these associations have some way of determining that each ballot they count is from an actual owner?
4. And why is it criminal if one law firm represents lots of HOAs, and in every case that has the same kinds of damages, they hire the same contractor, estimator, soils engineer, and so forth? And if one contractor or property manager habitually refers cases to the same attorneys, is that illegal? Referrals are how law firms get construction defect cases.
5. And what is the relationship, if any, of all this to actual political corruption? Not clear from the articles.
6. Fred Pilot asks if this would be happening but for the unfolding real estate and mortgage meltdown. Good question, and I don't know. It would depend on how serious this really is. Is there some larger dimension to this investigation that the press doesn't know about?
I assume law enforcement has at least tentative answers to these questions or they wouldn't be executing search warrants. But so far, this is a puzzling situation that leaves me curious.
FBI agents went to attorney Nancy Quon, whose Web site says she represents homeowners associations, and seized more records, said KLAS-TV Channel 8 today.
A law enforcement task force first served search warrants at homes, offices and clubs all across the Las Vegas Valley Wednesday as part of what might become a political corruption investigation."
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This is an intriguing situation. The articles I have seen so far tell me that the press doesn't have the whole story yet. They say, "Lawmen believe [contractor Leon] Benzer and other persons conspired to take over the boards, hire Benzer to do repair work and funnel lucrative lawsuit cases to certain law firms." (I haven't seen police referred to as "lawmen" since the last John Wayne rerun I watched--lots of "lawmen" seem to be women these days.) The press seems to think that there is some sort of collusion among professionals, run by a contractor and enabled by rigged elections. Perhaps the argument is going to be that this contractor stage-manages elections and puts in BOD members who follow his orders and hire a certain law firm which in turn hires a particular set of experts who in turn present a case that generates a pot of money, the repairs are overseen by a certain property manager, and everybody profits.
But there are plenty of questions unanswered.
1. Such as, what exactly is the suspected crime that led to such a drastic step as searching an attorney's offices? Believe me, that is a big deal, because of attorney-client privilege. Obviously, I get why owners would be angry at having their associations taken over, but usually such things are civil matters. What made this one into a criminal investigation?
2. How can you have "outsiders" on an HOA or condo association BOD? Don't you have to be a member to serve as an officer?
3. If the vote total goes way up from one election to another, is that because of ballot box stuffing and/or ineligible voters, which obviously would be bad, or is it because somebody solicited votes from absentee owners? If the latter, why is that illegal? I get that the resident owners don't like it, but if absentee owners are members, don't they get to vote if they want to? If somebody helps them vote, so what? In political science we call that GOTV...Get Out the Vote. (It's the Chicago Way. We even have dead people voting here.) Don't these associations have some way of determining that each ballot they count is from an actual owner?
4. And why is it criminal if one law firm represents lots of HOAs, and in every case that has the same kinds of damages, they hire the same contractor, estimator, soils engineer, and so forth? And if one contractor or property manager habitually refers cases to the same attorneys, is that illegal? Referrals are how law firms get construction defect cases.
5. And what is the relationship, if any, of all this to actual political corruption? Not clear from the articles.
6. Fred Pilot asks if this would be happening but for the unfolding real estate and mortgage meltdown. Good question, and I don't know. It would depend on how serious this really is. Is there some larger dimension to this investigation that the press doesn't know about?
I assume law enforcement has at least tentative answers to these questions or they wouldn't be executing search warrants. But so far, this is a puzzling situation that leaves me curious.
S.E.C. Concedes Oversight Flaws Fueled Collapse - NYTimes.com: "WASHINGTON — The chairman of the Securities and Exchange Commission, a longtime proponent of deregulation, acknowledged on Friday that failures in a voluntary supervision program for Wall Street’s largest investment banks had contributed to the global financial crisis, and he abruptly shut the program down."
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Talk about closing the barn door after the horse got out.
South Florida gated communities link teens to security troubles -- South Florida Sun-Sentinel.com: "Gated communities became popular in South Florida in the 1970s, promising an extra level of security and prestige, according to Joanna Lombard, a professor of architecture at the University of Miami. But with that security comes challenges, including teen behavior problems and unexpected costs."
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Ironic. The gates end up being expensive because teenagers break them. According to this article about the culture of gated teenagers, they express their existential teenage angst-ridden gatedness by acting out. I guess if it isn't one thing, it's another.
Weekend America: Gated Into Foreclosure
Weekend America: Gated Into Foreclosure: "San Niccolo has been feeling the effects of the real estate crisis for more than a year now. A lot of houses are vacant, post-foreclosure. Others are being rented out to college kids, or multiple families, by investors who'd hoped to flip the properties for a quick profit but couldn't find buyers.
Houses that went for $600,000 a few years ago are now on the market for half that. And the neighbors say the wrought iron front gate, supposed to symbolize prestige and security, is regularly rammed by tow trucks trying to get in to repossess residents' cars. Vandalism has become a problem in the neighborhood: break-ins, slashed tires, broken windshields."
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This is a high-priced gated community in Las Vegas. The houses sold for $500,000 and higher not too long ago.
Houses that went for $600,000 a few years ago are now on the market for half that. And the neighbors say the wrought iron front gate, supposed to symbolize prestige and security, is regularly rammed by tow trucks trying to get in to repossess residents' cars. Vandalism has become a problem in the neighborhood: break-ins, slashed tires, broken windshields."
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This is a high-priced gated community in Las Vegas. The houses sold for $500,000 and higher not too long ago.
Friday, September 26, 2008
Statement by John McCain, 2 1/2 years ago
Senator John McCain
May 26, 2006
Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
Quick Info
S-90 Federal Housing Enterprise Regulatory Reform Act of 2005
Last Action: Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
Status: Dead
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190,to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
I urge my colleagues to support swift action on this GSE reform legislation.
Senator John McCain
May 26, 2006
Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
Quick Info
S-90 Federal Housing Enterprise Regulatory Reform Act of 2005
Last Action: Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
Status: Dead
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190,to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
I urge my colleagues to support swift action on this GSE reform legislation.
Support, criticism for plan to rewrite mortgage-loan terms
Support, criticism for plan to rewrite mortgage-loan terms: "A plan by Democrats to allow bankruptcy judges to rewrite mortgage-loan terms for struggling homeowners as part of the proposed $700 billion Wall Street bailout has the support of some South Florida jurists. The judges say the proposal would let them lower the interest rate on home loans for borrowers who enter Chapter 13 bankruptcy because of a pending foreclosure. A Chapter 13 allows individuals to reorganize their debts. Right now, bankruptcy judges can modify the terms of all kinds of loans except those on a first home.''Since we can't help [homeowners], they end up losing their home and that may mean breaking up their family and putting them out on the street,'' said U.S. Bankruptcy Judge A. Jay Cristol in Miami. Added U.S. Bankruptcy Judge Laurel M. Isicoff, also in Miami: ''Every bankruptcy judge I've spoken with feels strongly that this is a tool that they should be given.'' She has talked with about 30 judges, she said. Cristol said the proposal is a ''win-win'' for homeowners and lenders. Homeowners keep their house and lenders have a performing loan rather then getting the keys to a property they'll then have to sell."
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It seems like a good idea to me, too. But the Mortgage Bankers Association is against it.
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It seems like a good idea to me, too. But the Mortgage Bankers Association is against it.
Las Vegas Now | I-Team: New Details Emerge in Homeowners Association Probe
Las Vegas Now | I-Team: New Details Emerge in Homeowners Association Probe: "Mountains of financial and legal documents seized by a law enforcement task force are being scrutinized. FBI Agents and Metro Detectives worked into the night, serving search warrants at nine locations to find evidence of what they believe is political corruption involving local homeowner associations.
The FBI and Metro are still not talking, nor do we expect them to say anything. The investigation is just getting started and it's now obvious it stretches in many directions.
Investigators already see a pattern, whereby the same law firms file construction defect lawsuits, the same contractors are hired to do the work, the same management company oversees the whole thing, and the homeowner boards are subjected to something like a political coup.
The elections, homeowners say, are rigged."
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They are talking about "dozens" of HOAs being "hijacked."
The FBI and Metro are still not talking, nor do we expect them to say anything. The investigation is just getting started and it's now obvious it stretches in many directions.
Investigators already see a pattern, whereby the same law firms file construction defect lawsuits, the same contractors are hired to do the work, the same management company oversees the whole thing, and the homeowner boards are subjected to something like a political coup.
The elections, homeowners say, are rigged."
------------------------
They are talking about "dozens" of HOAs being "hijacked."
Video: Burning Down the House--What caused our financial crisis?
This is a devastating video that will soon be everywhere because Drudge just posted a link to it. Viral video is turning into an unpredictable force in these campaigns. With almost six weeks to go, what else will go viral, and what will be the impact on the campaigns and the issues?
[update: The same basic story appears in an editorial in Investor's Business Daily.]
This is a devastating video that will soon be everywhere because Drudge just posted a link to it. Viral video is turning into an unpredictable force in these campaigns. With almost six weeks to go, what else will go viral, and what will be the impact on the campaigns and the issues?
[update: The same basic story appears in an editorial in Investor's Business Daily.]
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