Saturday, June 26, 2010

Lawmakers to talk about severing Lake Michigan from Mississippi River to halt carp - chicagotribune.com


Lawmakers to talk about severing Lake Michigan from Mississippi River to halt carp - chicagotribune.comA century ago, reversing the Chicago River and building a complex system of channels to steer sewage away from Lake Michigan was considered one of the great engineering feats in world history.

As concerns mount about Asian carp, momentum is building to re-engineer Chicago's waterways to allow for the passage of boats and ships, but not harmful invasive species.

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Reversing the direction of the Chicago River was one of the greatest engineering feats in American history, considering it was done between 1889 and 1900. Now, with every Illinois government insolvent, from the state down to the local mosquito abatement district, the plans are being proposed to do something equally grandiose. And all because of a fish. Last time at least it was because of...well, never mind.

Some California fire departments billing after accidents - Sacramento Living - Sacramento Food and Wine, Home, Health | Sacramento Bee

Some California fire departments billing after accidents - Sacramento Living - Sacramento Food and Wine, Home, Health | Sacramento Bee
More than two dozen fire agencies, struggling for ways to boost sagging budgets, have begun tallying service charges at crash sites and sending bills to drivers or their insurance companies.

Is a pumper truck called to the scene? That'll be $400. Traffic cones and flares needed? Another $20. An incident commander to oversee? That's $75 an hour.

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As I was saying on "On the Commons" today, local governments are clever about finding ways to make up for lost revenues. Whenever state legislatures and voters try to make them cut back, they find new way to raise money. CIDs, which are now the lowest level of local government, are one of those fiscal tools used by cities and counties. People who think that CIDs will replace local governments are missing the big picture--CIDs are the lowest and most vulnerable level of local government. Their supposedly "private" nature is just a legal fiction that allows them to get away with things public governments can't do.

Durbin asks Obama to appoint carp czar - Chicago Breaking News


Durbin asks Obama to appoint carp czar - Chicago Breaking News As concerns mount about the presence of Asian carp near Lake Michigan, U.S. Sen. Dick Durbin today urged President Obama to appoint a carp czar to oversee efforts to keep the invasive species out of the Great Lakes.

"We need to have one person who coordinates the efforts of the federal, state and local agencies that are doing everything they can to keep the Asian carp out of Lake Michigan," Durbin said during a news conference at the Shedd Aquarium. "We believe it's absolutely essential."

Durbin was responding to the discovery of a bighead carp, a variety of Asian carp, during routine sampling this week in Lake Calumet, just six miles from Lake Michigan. Standing beside environmental advocates who have championed closing Chicago-area locks as a way to prevent carp from entering Lake Michigan, Durbin called the finding a possible "game changer" and said "we have to take it very seriously."

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Durbin wants a czar so the President will have ultimate control over what happens to Illinois shipping in the Chicago River. He has been trying to prevent anybody from interfering with the status quo--an obviously ineffective system that is allowing the carp to move up the river toward Lake Michigan. Durbin thinks Obama will look out for the local economic interests, which are substantial. Durbin is afraid the Supreme Court or even Congress (imagine them actually solving a problem!) will effectively close the canal and river system down to prevent these nasty carp from wrecking Lake Michigan and then the rest of the Great Lakes.

The Supreme Court refused to rule on this twice in the last term. Big mistake, in my opinion. These Asian carp are a destructive invasive species. We were looking at them yesterday in the Shedd Aquarium in Chicago. Weird things, with eyes below the midline of their bodies--constantly sucking in water and eating the plankton. They grow at an incredible rate and if they kill the bottom of the food chain, the Great Lakes will never be the same.

Court Upholds St. Louis’s Attempt to Suppress Eminent Domain Protest Mural | Institute for Justice: Litigating for Liberty

Court Upholds St. Louis’s Attempt to Suppress Eminent Domain Protest Mural | Institute for Justice: Litigating for LibertyArlington, Va.—The right of free speech suffered a blow today when a federal court upheld St. Louis’s attempt to suppress activist Jim Roos’s mural protesting the city’s abuse of its eminent domain power.
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Thanks to Mystery Reader for this link to the Institute for Justice website (the property rights law firm), where you can read about the battle over Jim Roos's "End Eminent Domain Abuse" mural. The struggle over municipal use of the eminent domain power looks like a lasting issue. There are several areas where property rights activists, and many citizens, want reform.

First, there is the issue of what constitutes a taking. There are what we call "regulatory takings," where the city doesn't actually condemn the land and pay you for it, and instead they just pass regulations that restrict your use of the land so heavily that it loses much of its value, and for all practical purposes the city might just as well have taken it from you--without paying for it.

Second, there is the the Kelo v. City of New London issue: what are the limits of the "public use" condition in the due process clause? The Kelo decision upheld the right to take property from one private party and practically give it to another private party (in that case, Pfizer Corporation) in order to enhance tax revenues and stimulate economic development, even though there was no public use. Most states passed reform legislation to limit that sort of taking, but UIC Political Science graduate student Tom Kelly wrote a dynamite dissertation showing that this legislation has been ineffective (I was on his committee).

Third, what kinds of property interests can be taken? Does it have to be physical property, or can intangible property interests be "taken" and thus require compensation?

Stone Oak resident claims HOA harassment over porch gate to protect autistic son | kens5.com | San Antonio News, Weather, Sports, Traffic, Entertainment, Video and Photos

Stone Oak resident claims HOA harassment over porch gate to protect autistic son Christa says Luke would run out of the house and into the street just about every day. He came close to being run over by a car on a few occasions.

So Christa says she decided to do something about it. The Colquhouns filed an application with the Panther Creek at Stone Oak Homeowners Association asking to build the gate.

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And, she says, the HOA let 60 days go by without responding, so they built the gate. And then somebody complained to the HOA, who demanded that she remove it, complete with the usual threats of litigation.
Thanks to Fred Pilot for another example of the kind of thing that, according to the industry, hardly ever happens.

China's Desert Ghost City Shows Property `Madness' Persists - Bloomberg

China's Desert Ghost City Shows Property `Madness' Persists - BloombergInvestors are stockpiling empty apartments because there are few alternative investments, undermining government efforts to deflate a property bubble, said Patrick Chovanec, an associate professor at Tsinghua University in Beijing.

“Money is being dumped into property because there are no alternatives,” said Chovanec, adviser and former vice president of the Hong Kong venture capital firm Asia Mezzanine Capital Group. “Policy makers are nibbling around the edges of the core problem.”

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A bursting real estate bubble in China? That would be interesting.

Wednesday, June 23, 2010

New-home sales plunge 33 pct with tax credits gone - Yahoo! Finance

New-home sales plunge 33 pct with tax credits gone - Yahoo! Finance
Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.
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The smoke and mirrors economic policy is collapsing.

Maywood, CA Plans To Disband ALL City Services

Maywood, CA Plans To Disband ALL City Services The small city of Maywood south of downtown Los Angeles plans to lay off almost all its employees, disband its police department and contract municipal operations to a neighboring city.

Facing a budget deficit of at least $450,000 and unable to get insurance because of a history of lawsuits, many involving the police department, the Maywood City Council said Monday night it had no choice but to adopt the plan.

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The article says this is "unprecedented" in California.

Wednesday, June 16, 2010

Housing Starts Drop in May; Producer Prices Dip - WSJ.com

Housing Starts Drop in May; Producer Prices Dip - WSJ.comU.S. home construction plunged in May as builders remained cautious about sales prospects absent government support programs for the housing sector.

Housing starts dropped 10% the month after the government ended its tax-credit program for home buyers, to a seasonally adjusted annual rate of 593,000. Permits for new construction also declined, the Commerce Department said Wednesday. Single-family housing starts slid by 17.2% to an annual rate of 468,000, the lowest level in a year.

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Isn't it clear by now that this all this federal "stimulus" spending is a failure? Short term gain followed by bust, and more debt accumulated that has to be paid off. Where does it end? Apparently the White House doesn't get it. Now they say that we need to take another $50 billion out of the deep end of the pool and pour it into the shallow end to bail out state and local governments. And after that runs out, then what?

UPDATE 2-Fannie Mae, Freddie Mac to delist shares on NYSE | Reuters

UPDATE 2-Fannie Mae, Freddie Mac to delist shares on NYSE | ReutersJune 16 (Reuters) - Fannie Mae (FNM.N) and Freddie Mac (FRE.N), the largest U.S. home funding companies, will delist their shares on the New York Stock Exchange after failing to meet minimum trading price requirements, the companies' regulator said on Wednesday.

The companies, each taken under government control in September 2008, said they no longer met NYSE listing standards and that shares would trade in the over-the-counter market.

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This housing recovery is just rocketing along.

Thursday, June 10, 2010

FDIC's Bair questions housing tax breaks - Street Sweep: Fortune's Wall Street Blog

FDIC's Bair questions housing tax breaks - Street Sweep: Fortune's Wall Street BlogBair took aim at federal tax deductions for mortgage interest, local property taxes, and capital gains on house sales (in certain circumstances). She said these taxpayer subsidies for homeowners, taken together, "are about three times the size of all rental subsidies and tax incentives combined."
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Why don't we just put all our money in a paper bag and send it to President Obama to do with as he sees fit?

the-housing-market-recession-is-not-over: Personal Finance News from Yahoo! Finance

the-housing-market-recession-is-not-over: Personal Finance News from Yahoo! FinanceIn a presentation to the National Association of Real Estate Editors in Austin, Texas, last week, Stan Humphries, Zillow.com's chief economist, pointed to four myths he said consumers are latching on to as they try to make sense of recent housing statistics.
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Myths, says he:
1. the housing recession is over
2. after markets hit bottom, prices will rebound to boom levels
3. the worst of the foreclosure mess is behind us
4. the tax credits saved the housing market

Friday, May 28, 2010

New Home Sales Set to Plunge in Former Bubble Markets (Update1) - Bloomberg.com

New Home Sales Set to Plunge in Former Bubble Markets (Update1) - Bloomberg.comNew home sales in Phoenix and Las Vegas, two U.S. markets hardest hit by foreclosures, are set to plunge as a federal tax credit for homebuying expires, according to data from real estate researcher Metrostudy.
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Possibly an infusion of mud and golf balls would help.

Soldier in Iraq Loses Home Over $800 Debt | Mother Jones

Soldier in Iraq Loses Home Over $800 Debt | Mother JonesMichael Clauer is a captain in the Army Reserve who commanded over 100 soldiers in Iraq. But while he was fighting for his country, a different kind of battle was brewing on the home front. Last September, Michael returned to Frisco, Texas, to find that his homeowners' association had foreclosed on his $300,000 house—and sold it for $3,500.
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Here's another one of those "isolated examples."

Thursday, May 27, 2010

Bankruptcy talk spreads among Calif. muni officials | Reuters

Bankruptcy talk spreads among Calif. muni officials | ReutersStreet expects more talk of municipal bankruptcy across California because local government finances are in such dire shape -- a situation underscored on Wednesday when a top finance officer for Sacramento County projected a worse-than-expected shortfall for the county of $181 million, which could force more than 1,000 layoffs from the county's payroll.
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That's peanuts. Illinois is in the hole to the tune of $80 billion just to the state employee pension funds.

Wednesday, May 26, 2010

US money supply plunges at 1930s pace as Obama eyes fresh stimulus - Telegraph

US money supply plunges at 1930s pace as Obama eyes fresh stimulus - TelegraphThe M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the biggest fiscal blitz in history.
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This recovery is just rocketing along.

Renewed effort in Austin to limit HOA powers | kvue.com | KVUE News local | Austin, Tx | Breaking news

Renewed effort in Austin to limit HOA powers | kvue.com | KVUE News local | Austin, Tx | Breaking news"You don't seize someone's home that's entirely paid off for a few hundred dollars in back dues," said State Rep. Chris Turner (D-Dist. 96). "That's fundamentally unfair and not right."

Turner is the latest state legislator to tackle HOA reform, and on Monday, he recruited Sherre Mueller to join his fight.

"I want to be an advocate for people to never let this happen again," she said.

State lawmakers have tried unsuccessfully to reduce the powers of HOAs for years. In 2009, two proposals in the House and Senate ran out of time.

Turner would like to add two major safeguards to the law, including one that would make it impossible for an HOA to foreclose without a court order.

He also thinks members of an association — your neighbors — should have the final say and vote whether to seize a house.

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Thanks to Fred Pilot for this link to yet another cavalry charge in the TX legislature.

Sunday, May 23, 2010

KOB.com - Homeowner faces fines over 'for sale' sign in yard

KOB.com - Homeowner faces fines over 'for sale' sign in yardA Rio Rancho homeowner is facing hundreds of dollars in fines for putting up a "For Sale" sign in his own front yard. Geoffrey Padilla, who lives in Diamond Ridge, said his homeowners association fined him $400 over the past few months. He said the the association handbook bans signs and billboards, including "For Sale" and "For Rent" signs. Padilla said the policy went into effect several weeks after he bought his home, so he thinks the fines should be waived. He also said he thinks the policy is unfair because the subdivision's developer, D.R. Horton Homes, posted similar signs throughout the neighborhood. Padilla claims the builder encouraged the homeowners association to enforce the policy because it doesn't want competition from homeowners.
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From Fred Pilot--and keep in mind that municipalities can't ban all signs under the Supreme Court decision of Ladue v. Gilleo, but even Ladue didn't ban "for sale" signs. That was covered by the earlier decision of Linmark Associates v. Willingboro. This is one of those "get away with violating constitutional rights if you are a pseudo-private corporation" kind of things.

I-Team: Homeowners Hammered with HOA Arbitration Fees - KLAS-TV Channel 8 News Las Vegas

I-Team: Homeowners Hammered with HOA Arbitration Fees - KLAS-TV Channel 8 News Las VegasIn July of last year, a dispute over a budget ratification meeting went to non-binding arbitration under the Nevada Real Estate Division. It's a mandatory first step before going to court. Friedrich lost, and to the victor went the spoils. He was ordered to pay $22,000 in arbitration and attorneys fees. "I was expecting the worst, and the worst came true," he said.

Friedrich responded with a lawsuit challenging the arbitrator's authority to impose attorney's fees. It is a common practice among arbitrators selected by the Real Estate Division. Records obtained by the I-Team reveal a dozen recent awards in excess of $10,000 against homeowners. Some awards were as high as $20,000.

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Fred Pilot sent this along, which we are talking about even though it happened in Vegas. This is a big issue. The whole idea of ADR is to cut costs. If lawyers can make five figures off it, courtesy of the "arbitrators," it makes you wonder if the process is just another lawyer-driven arm of the industry.