Residents Find Lake Full Of Rotting Fish - KYPost.com

Residents Find Lake Full Of Rotting Fish - KYPost.com: "One resident says her kids were playing near the shallow lake Thursday evening, and everything was fine. When she went outside Friday morning, she saw dozens of dead and rotting fish floating near the surface. She tells 9News she stopped counting the fish at 100.

The residents here have contacted their Homeowners Association, who say they'll start cleaning this up on Monday."
------------------
Rotten fish? Call the HOA!

Condo association opposes making street private | hometownlife.com | the Observer & Eccentric Newspapers, Mirror Newspapers and Hometown Weeklies

Condo association opposes making street private | hometownlife.com | the Observer & Eccentric Newspapers, Mirror Newspapers and Hometown Weeklies: "Residents of Brookdale Condominiums are protesting a proposal to turn responsibility for Brookdale Court back to residents of the complex."
--------------
The city figures that since the street only services the condo complex, the residents should pay for it.

Most gated communities shy away from politics -- South Florida Sun-Sentinel.com

Most gated communities shy away from politics -- South Florida Sun-Sentinel.com: "Most gated communities shy away from politics. 'A lot of people are concerned, 'Is this bipartisan?' So rather than do something, they do nothing,' is Abe Fenster's take on the subject. He's the Shores' new president and manned the floor microphones with Harvey Hoffman, his predecessor. Most of the candidates interviewed said they had been in few or no other gated communities during this election cycle because they have to be invited."
--------------------
Well, if it is about listening to a sales pitch from some self-serving candidate, I can see why they'd rather play bridge. But if the political issue activates the NIMBY reflex, HOA residents can be mobilized to pay attention pretty fast. Propose building a low-income apartment project next door and see who shows up for the meeting.

Who's responsible for homeowner dues in case of bankruptcy and foreclosure? - Los Angeles Times

Who's responsible for homeowner dues in case of bankruptcy and foreclosure? - Los Angeles Times

The Villa Appalling authors address this question in their weekly LA Times column.

Condos must accommodate wheelchairs - Top Stories - (HometownAnnapolis.com)

Condos must accommodate wheelchairs - Top Stories - (HometownAnnapolis.com)The Maryland Human Relations Commission has directed 30 condominium owners in a Heritage Harbour complex to spend thousands of dollars to renovate their private homes to accommodate wheelchairs. The commission said when the developer constructed the units in 1997 they were not built to accommodate wheelchairs as required by the Federal Housing Act. The 1991 housing law forbids discrimination against tenants or residents who are wheelchair-users...The complaint said Broad Creek's developer, U.S. Homes Corp., failed to comply with the Federal Housing Act. The unit owner who filed the complaint no longer lives in the building and the residents said they are livid they have to hire contractors to move walls, lower doorjamb thresholds, and rewire and expand doorways within their own units.
-----------------
Tom Skiba sent me this. The strange part is that the owners have to make their own units comply with the law.

Pinellas Drug Sting Nets 18 Grow Houses, 18 Arrests

Pinellas Drug Sting Nets 18 Grow Houses, 18 Arrests: "Detectives eventually 'uncovered a network … of family members who decided to work this countywide,' said Capt. Mike Platt of the sheriff's narcotics squad. 'This is not an isolated case where people decide to grow some pot plants in their house.'

Rental homes were used for the grow operations, he said. Some were found today to contain as few as 23 plants; some had up to 100. Investigators say the coordinated effort annually could have produced a harvest worth more than $4 million."
-----------------
One way of coping with the declining property values in Florida.

Fay Dumps Record-Breaking Rain; Flood Victims Warned Of Alligator Swimming In Streets - Orlando Weather News Story - WKMG Orlando: "MELBOURNE, Fla. -- Homeowners in a Tropical Storm Fay-flooded community were being warned of an alligator swimming in their streets and near homes as record-breaking rain continued to fall Thursday."
-------------
Well, this is clearly a covenant violation. No alligators allowed. Somebody call the board of directors.

Living with humans has taught dogs morals, say scientists | Mail Online: "Dogs are becoming more intelligent and are even learning morals from human contact, scientists claim.

They say the fact that dogs' play rarely escalates into a fight shows the animals abide by social rules."
-----------------
I think these scientists have the relationship exactly backward. Dogs teach humans morals. If we were teaching them, they would be fighting all the time.

FOXNews.com - Man Jailed After Taking Photo of Police Van Ignoring 'Wrong Way' Sign - International News | News of the World | Middle East News | Euro

FOXNews.com - Man Jailed After Taking Photo of Police Van Ignoring 'Wrong Way' Sign - International News | News of the World | Middle East News | Europe News: "A British man was jailed for five hours after he photographed a cop reversing the wrong way up a one-way street. After Andrew Carter snapped the cop van, officer Aqil Farooq leaped out, hit the camera to the ground, handcuffed him and bundled him into the back of the vehicle. The plumber, 44, was arrested for supposedly being drunk, resisting arrest and assaulting the officer with the camera. He was kept in cells before finally being released on police bail at midnight."
----------------
And people wonder why the US founders wanted limits on government power.

Ron Paul supporters plan West Texas commune : Lone Star Times
Yes, Ronulans, there is now a place where you can live according to libertarian principles. Just hie thyself to rural Texas and find "Paulville," described as follows on the Paulville.org website:

The goal of Paulville.org is to establish gated communities containing 100% Ron Paul supporters and or people that live by the ideals of freedom and liberty. The process is forming a co-op of people buying shares in the community and these people would be granted land use at a minimum of 1 acre per share, for as long as they homesteaded the land. The community would be privately held by the co-op to establish private property for the general community thus preserving the community is 100% freedom and liberty lovers. The community votes on all community efforts, such as utilities etc. However no one is forced to consume these utilities and or pay for them, AKA people can be off grid on their share of land. This is in line with the ideals that you're free to live your life the way you want and not be forced to do or pay for other people's life styles you may not agree with.
---------------------
This is a great idea for several reasons. One: it will concentrate the nation's Ronulans in one place, so they will all be in one voting precinct. Two: it will force them to live with each other instead of annoying those of us who have heard enough about and from Ron Paul to last several lifetimes. Three: it will give us all a chance to see how libertarian ideas work in practice, because there isn't a place on earth that runs the way libertarians think we should all live. I envision them drawing lines all over the dining room table and privatizing the sections, but maybe I'm too cynical.

SignOnSanDiego.com > News > Business -- Apartment complex

As numbers of rental units rise, myriad problems can develop for owners: "When renter populations pass the 50 percent population threshold, many lenders will still make home loans, but at a higher cost to borrowers. A high renter population also can make it more difficult for condo associations to borrow money for maintenance projects, said University of Illinois political science professor Evan McKenzie, the author of “Privatopia,” a book about the growth of homeowner associations in the United States. “Usually, the banks want no more than 20 percent of the units rented out to make a loan,” he said."
-------------------
Good article by Emmett Pierce on one of the problems that has hit CIDs with the housing market in the dump. Little quote by yours truly.

cbs13.com - Bankrupt Calif. city losing cops amid rising crime

cbs13.com - Bankrupt Calif. city losing cops amid rising crime: "Three months after it became the largest California city to declare bankruptcy, this San Francisco suburb is facing an exodus of police officers as residents grow anxious about a surge in robberies and other crimes."
-----------------
Imagine that.

Forget back assessments when owner's foreclosed -- chicagotribune.com

Forget back assessments when owner's foreclosed -- chicagotribune.com: "If the unit proceeds to foreclosure, the association is unlikely to recover the delinquent assessments. The association will recoup delinquent assessments from a foreclosure sale only if the winning bid exceeds the amount due to the first mortgage holder, as well as other claims that may have a priority over the association."
---------------
So says Mark Pearlstein, Chicago lawyer and columnist. This is an answer to a question about $22,000 in unpaid assessments on a unit that the bank foreclosed on.

Frisco man says HOA won't let him park pickup on driveway | Dallas Morning News | News for Dallas, Texas | Latest News

Frisco man says HOA won't let him park pickup on driveway | Dallas Morning News | News for Dallas, Texas | Latest News: "If there's one thing Texans are serious about, it's pickups. But a Frisco man says his truck is being targeted simply because his homeowners association doesn't think it's classy enough. Jim Greenwood said he never dreamed his HOA would have a problem with his new Ford F-150 pickup. Then he received the first of three notices threatening him with fines. 'Mr. Greenwood, you're violating a subdivision rule that prohibits pickup trucks in your driveway,' the notice reads. Stonebriar HOA rules allow several luxury trucks on driveways, including the Cadillac Escalade, Chevy Avalanche, Honda Ridgeline and Lincoln Mark LT. But most Ford, Dodge or Chevy pickups are restricted."
-------------------------
So are homeowners supposed to go off to the state legislature and get a law passed allowing them to have pickup trucks, along with American flags?

islandpacket.com | Gated communities put brakes on scooter use

Then they came for the motorcycles: Gated communities put brakes on scooter use: "[D]riving mopeds, scooters and motorcycles is forbidden in Sea Pines, as it is in many other area plantations. That makes it challenging for some people, who have found those forms of transportation good options when it comes to the saving money on gas."
-----------
This is a new one on me. No motorbikes in the gated communities of Hilton Head, SC.

WXVT-TV Delta News - More Local News and Weather WXVT.com | Ark. city neighborhood under 24-hour curfew

WXVT-TV Delta News - More Local News and Weather WXVT.com | Ark. city neighborhood under 24-hour curfew: "HELENA-WEST HELENA, Ark. (AP) - Helena-West Helena Mayor James Valley says he ordered a round-the-clock curfew and heavy police patrol in a ten-block section of town because the neighborhood was 'under siege with repeated gunfire, loitering, drug dealing and other general mayhem.'...Thursday night, 18 to 20 police officers carrying M-16 rifles, shotguns and night-vision scopes patrolled the 'curfew zone.' They arrested about eight people and confiscated drugs and loaded weapons. Under Valley's order, officers do not tolerate loitering or 'hanging out.' Officers can stop and investigate all foot traffic, bicycle, horseback, mo-ped, motorcycle, riding mower, golf cart or other means of transportation. The American Civil Liberties Union of Arkansas says the curfew is 'blatantly unconstitutional' and has demanded that Valley lift the order immediately."
-------------------
What leads public and private officials to think they can exercise unlimited power over people? This is why there have to be constitutional limits on government power. At least somebody can go to court and stop this nonsense.

Residents beg city to bulldoze shuttered Houston condos | Front page | Chron.com - Houston Chronicle

Residents beg city to bulldoze shuttered Houston condos | Front page | Chron.com - Houston Chronicle: "Desperate residents who live near a shuttered condo complex in northwest Houston thronged a City Council meeting Tuesday, begging the mayor to bulldoze the empty buildings. Candlelight Trails, at 5626 De Soto, is a pretty name, but the property has become nightmarish, the neighbors said. Although the property is fenced off, criminals, squatters and drug addicts haunt the buildings, they said. The city closed the 240-unit development last August, citing myriad dangers, such as exposed wires, broken glass and broken sprinklers. Mayor Bill White appeared to support demolition but said it would be a long and legally difficult process because there are multiple owners of the units."
---------------
Submitted for your consideration: Isolated Instance Number 2645.

Eleven Becker & Poliakoff attorneys depart firm - South Florida Business Journal:

Eleven Becker & Poliakoff attorneys depart firm - South Florida Business Journal:: "Prominent litigation attorney Daniel Rosenbaum and a team of 10 other attorneys from Becker & Poliakoff have joined Katzman Garfinkel, a Miami-based firm focused on community association law."
-----------
Law firm wars...

Condo trustee to be prosecuted by state - Truro, MA - Wicked Local Truro

Condo trustee to be prosecuted by state - Truro, MA - Wicked Local Truro
What? Impossible! This must be another one of those "isolated instances."

Foreclosure fallout: Houses go for a $1

Foreclosure fallout: Houses go for a $1: "DETROIT -- One dollar can get you a large soda at McDonald's, a used VHS movie at 7-Eleven or a house in Detroit.

The fact that a home on the city's east side was listed for $1 recently shows how depressed the real estate market has become in one of America's poorest big cities.

And it still took 19 days to find a buyer."
---------------
Will Detroit be the first major American city to disintegrate into total chaos?

Emerald ash borer found in River Forest

Emerald ash borer found in River Forest: "The emerald ash borer beetle has been found in River Forest.

Top public works department officials made the announcement to trustees at a meeting the village board's public works committee on Tuesday night.

The news comes a week after the beetle's presence was confirmed in Oak Park by state agriculture department officials. The fast-moving beetle has been confirmed in at least 20 Chicago area municipalities."
-----------
River Forest is an old and very ritzy suburb a couple of miles west of Chicago. This emerald ash borer situation is potentially disastrous, because ash trees are everywhere in this metro area, and the characteristic look of many suburbs and neighborhoods is trees, trees, trees. I have two big ash trees in my back yard. River Forest could end up looking like River Desert.How bad can it get? The ash borer cost 40 million trees in southeast Michigan alone.

This becomes a cost issue. Municipalities typically order removal of trees by landowners, and with HOAs that means...the association, i.e., the owners. That costs hundreds of dollars per tree including chipping or removing the wood. If a development has, say 100 ash trees, this can be a major expense for somebody.

Main Street - WSJ.com

Home owners win one for a change: "In the latest of man-bites-dog rulings from the state courts, a three-judge panel of the New Jersey Appellate Division actually sided with ordinary homeowners over a greedy local government and developer.

In their ruling, the judges unanimously reversed a lower-court decision giving the city of Long Branch a green light to pursue its redevelopment plan. That has put a serious crimp into the city's hopes for taking the homes of about a dozen longtime residents -- and turning them over to a developer to put up luxury condos in their place."
-----------------
Thanks to Daniel Bliss for this link.

Bloomberg.com: Worldwide

Subprime writedowns top half a trillion: "The International Monetary Fund in an April report estimated banks' losses at $510 billion, about half its forecast of $1 trillion for all companies. Predictions have crept up since then, with New York University economist Nouriel Roubini predicting losses to reach $2 trillion.

``It just keeps spreading from one asset to another, so it's hard to know when these writedowns will stop,'' said Makeem Asif, an analyst at KBC Financial Products in London. ``The U.S. economy needs to stabilize first. But even then, Europe could lag and recover later. There's still a lot more downside.''"
---------------
A lot more downside? How much is "a lot"?

McClatchy Washington Bureau | 08/11/2008 | Cop cameras don't just catch speeders, they raise cash: "[C]op cams can be cash cows.

In Chevy Chase, for example, where speeding tickets brought in about $8,000 monthly before cop cams, 'We are routinely bringing in approximately a quarter-million dollars per month,' Geoffrey Biddle, Chevy Chase's village manager, told his Board of Managers in February.

For a community of 2,000 with an annual budget of $4.6 million, that's a bonanza. What's more, because locals know enough to evade the cop cams, the village's new revenue mostly comes from outsiders, rather like a commuter tax.

Nor are Chevy Chase's big gains unique. Washington's dozen cop cams have taken in more than $200 million since 2001. Scottsdale's six freeway cameras took in $17 million in 2006."
------------
Yet another way municipalities are finding new revenue sources to take the place of federal grants in aid, property tax revenues, and other streams that have dried up. Now it is HOAs, tobacco lawsuits, sin taxes, charging fees for what was once free, and cop cams.

Bloomberg.com: Worldwide

I think this means the housing bubble has burst...: "Aug. 12 (Bloomberg) -- Almost one-third of U.S. homeowners who bought in the last five years now owe more on their mortgages than their properties are worth, according to Zillow.com, an Internet provider of home valuations."
----------------
Zillow also says that almost one quarter of all US homes sold in the last year were sold at a loss.

Roswell tightens codes, including clothesline rules | ajc.com

Roswell tightens codes, including clothesline rules | ajc.com: "Nothing seems simpler than a load of fresh laundry hung on a clothesline to dry. Unless you live in Roswell, where a public view of socks and shirtsleeves snapping in the breeze may spell trouble. As part of an effort to strengthen code enforcement rules, the city last week started requiring its residents to hide clotheslines behind houses. The city also lowered the acceptable height of weeds and grass from 18 inches to 10 inches and reduced the time homeowners have to tidy their properties from 10 to three days. While other local governments in metro Atlanta don't admit to regulating clotheslines, it isn't uncommon to find such bans in neighborhood association covenants."
---------------
There is some sort of convergence between municipalities and HOAs going on. Thanks to Fred Pilot for this link.

The Myth of 'Privatopia' / Do private residential governments mean the end of the American dream?

The Myth of 'Privatopia' / Do private residential governments mean the end of the American dream?
Thanks to Fred Fischer for the link to this San Francisco Chronicle article that has some comments from yours truly.

BBC NEWS | UK | Wales | South East Wales | Cher fan has his stereo destroyed

BBC NEWS | UK | Wales | South East Wales | Cher fan has his stereo destroyed: "A man who blasted Cher and U2 from his home has had his stereo equipment and music collection destroyed. Karl Wiosna of Graig, near Pontypridd, was warned to turn down his music by Rhondda Cynon Taf Council after complaints were made. He was served with a noise abatement notice, which he later admitted breaching. As a result, his two tape and record decks, his radio and his tapes and CDs were seized by the council."
----------------
I have to go along with this one. Cher? Talk about ruining property values.

The rich are not so different after all: Hamptons town struggles with $12M deficit -- Newsday.com

The rich are not so different after all: Hamptons town struggles with $12M deficit -- Newsday.com: "East Hampton, one of the main towns on the eastern end of Long Island that make up the Hamptons, is burdened with a deficit that could exceed $12 million. And that has become a rich source of irony, given the community's spectacular wealth and its concentration of Wall Street money-management talent...The town operates its own airport, where Learjets and helicopters shuttle the beautiful people to their playgrounds. East Hampton also spends $100,000 a year for a day-care program for working families and $710,000 annually for free YMCA membership for all the town's children. A theater group for the handicapped gets $30,000 a year, and there are nutrition and transportation programs for senior citizens. The town replenishes its harbors with clams, oysters and scallops and recently bought $100,000 worth of beach rakes to keep the shoreline clean. In the fall, residents do not have to bag and dispose of their leaves themselves; the town lets homeowners rake them to the curb, where a giant vacuum truck sucks them up and hauls them away at a cost estimated by McGintee at $300,000 to $400,000 a year. Over the years, town leaders have been reluctant to raise taxes, because that could harm the many working-class folks struggling to pay their bills, and hurt the politicians on Election Day, too. But now they may have to cut services and increase taxes after all."
----------------------
Sounds like some pretty imaginative and generous spending has been going. Free YMCA membership for all the kids in town? An airport? Maybe a little budget-trimming is in order.

Nobel Economist Stiglitz Outraged That Fannie (FNM), Freddie (FRE) Paying Dividend With Our Bailout Money

Nobel Economist Stiglitz Outraged That Fannie (FNM), Freddie (FRE) Paying Dividend With Our Bailout Money: "WHAT BOTHERS ME FROM THE POINT OF VIEW OF PUBLIC POLICY IS THAT FREDDIE MAC AND FANNIE MAE CAME TO THE AMERICAN TAXPAYERS, ASKED FOR THE RIGHT TO WRITE A BLANK CHECK. CONGRESS GAVE THEM THAT RIGHT. WHILE WE ARE, AS TAXPAYERS, IN A POSITION TO PUT MORE MONEY INTO FREDDIE MAC AND FANNIE MAE.THEY'RE TAKING OUT MONEY. TO ME THIS DOESN'T MAKE ANY SENSE. IF THERE IS A THREAT OR A LACK OF LIQUIDITY IN THE FIRM, WHY ARE THEY STILL PAYING DIVIDENDS AT ALL? ANY DIVIDEND."
--------------------
So, the taxpayers commit to financial support for Fannie Mae and Freddie Mac because they are having liquidity problems, i.e., not enough $$$ given the loans they have outstanding. So waht do they do? Right away they both pay dividends to their stockholders, sending $$$ out. As Stiglitz says, did they have liquidity problems or not? If yes, they need to keep that money in house and not send dividend checks to stockholders. If no, then why on earth are they getting bailed out by the taxpayers?

Prince George's raid prompts call for probe -- baltimoresun.com

Prince George's raid prompts call for probe -- baltimoresun.com: "When the shooting stopped, two dogs lay dead. A mayor sat in his boxers, hands bound behind his back. His handcuffed mother-in-law was sprawled on the kitchen floor, lying beside the body of one of the family pets that police had killed before her eyes.

After the raid, Prince George's County police officials who burst into the home of Berwyn Heights' mayor last week seized the same unopened package of marijuana that an undercover officer had delivered an hour earlier."
---------
All this for marijuana? Shooting the family pets seems to be a recurrent theme in these no-knock police drug raids.

Scoopit - Miami residents stay in near-condemned condos / NZ News

Scoopit - Miami residents stay in near-condemned condos / NZ News: "Only 17 residents remained in the 51-unit Cedar's Point building along Northwest 15th Street and 16th Avenue after the housing market went bust, and those living there were left to try to manage the building on their own.

After Tuesday's near forced evacuation, only 10 remain (the others will stay at hotels with aid from the Salvation Army until they find some other form of shelter)."
---------------------
Another CID dying on the vine.

Bloomberg.com: Worldwide

Morgan Stanley freezing home equity credit lines: "Aug. 6 (Bloomberg) -- Morgan Stanley, the second-biggest U.S. securities firm, told thousands of clients this week that they won't be allowed to withdraw money on their home-equity credit lines, said a person familiar with the situation.

Most of the clients had properties that have lost value, according to the person, who declined to be identified because the information isn't public. The New York-based investment bank will review home-equity lines of credit, or HELOCs, monthly from now on, the person said yesterday.

Wall Street firms including Morgan Stanley are ratcheting back on risks after the collapse of the subprime mortgage market and ensuing credit contraction saddled banks and brokerages with almost $500 billion of writedowns and losses. Consumers fell behind on home-equity credit lines at the fastest pace in two decades in the first quarter, the American Bankers Association reported last month."
--------------------------------
A Morgan Stanley spokesperson confirmed it but won't state the dollar value involved.

S.F. mayor proposes fines for unsorted trash

S.F. mayor proposes fines for unsorted trash: "Garbage collectors would inspect San Francisco residents' trash to make sure pizza crusts aren't mixed in with chip bags or wine bottles under a proposal by Mayor Gavin Newsom.

And if residents or businesses don't separate the coffee grounds from the newspapers, they would face fines of up to $1,000 and eventually could have their garbage service stopped.

The plan to require proper sorting of refuse would be the nation's first mandatory recycling and composting law. It would direct garbage collectors to inspect the trash to make sure it is put into the right blue, black or green bin, according to a draft of the legislation prepared by the city's Department of the Environment."
------------------
Great. Remind me not to move to San Francisco. What bin do the leftover leeches from bass fishing go into?

I think San Francisco has become an intensely moralistic community representing the far left, and now seeks to parade its perceived moral superiority in the most public ways possible.

JS Online: Milwaukee man faces foreclosure because he didn’t pay parking fine: "Peter Tubic ignored a $50 parking fine in 2004, and on Monday, it cost him his $245,000 house. In what city officials believe is the first case of its kind, the city foreclosed on Tubic's house on W. Verona Court after repeated attempts to collect the fine - which over the years had escalated to $2,600 - had failed...Tubic takes the blame for disregarding the 15 or more notices he received seeking payment and warning of the pending foreclosure on the house, which was fully paid off, but says he had good reason. He was physically and psychologically unable to handle the situation, he says. According to the Social Security Administration, Tubic, 62, has been disabled since 2001. He has been diagnosed with psychological disorders that limit his "ability to understand, remember and carry out detailed instructions," according to documents from the administration. In addition he suffers from chronic pain caused by degenerative diseases of the knees and spine, as well as chronic respiratory disease, diabetes and obesity, among other ailments. "
---------------
I have been observing from time to time that municipalities seem to be emulating HOAs, and this example now holds the floor as the champion.

California Forum - David Holwerk: Get out the buckets; it'll start raining money any time now - sacbee.com

California Forum - David Holwerk: Get out the buckets; it'll start raining money any time now - sacbee.com: "The defining aspect of life in California is that people here have an enduring belief that money is bound to fall from the sky any minute now."
------------
Fred Pilot sent this take on the California mentality. That's about one-sixth of the US population, by the way. The belief that real estate values are like an escalator that always goes up is particularly strong in California. That's why people were buying new tract homes in the desert and commuting 70 miles each way to work in LA. They thought they couldn't lose.

Is this another housing crisis? | The Sun |News|Weird

Is this another housing crisis? | The Sun |News|Weird
Check out the photo and decide for yourself.

And Now Brace For the Bigger Wave of Mortgage Defaults

And Now Brace For the Bigger Wave of Mortgage Defaults: "There are signs that the sub-prime collapse is, finally, beginning to stabilize: The rate at which delinquencies are rising has started to flatten, especially on pre-2007 vintages (in part because mortgages that are paid or or houses that are foreclosed on don't count). But now, says Vikas Bajaj at the NYT, a larger wave of prime and Alt-A defaults is likely to take over. If so, this will likely finish blowing many bank balance sheets to smithereens."
---------------------------
These analysts say "the problems in the broader market may not peak for another year or two." So that means the overall economy will continue to be fragile, and any additional major shock, such as oil prices doubling if war starts with Iran, could make for memorable times.

FT.com / In depth - Wells Fargo cheer lifts banks

FT.com / In depth - Wells Fargo cheer lifts banks: "Shares in Wells Fargo, the fifth-largest US bank, leapt by more than 32 per cent on Wednesday after it reported better-than-expected second-quarter results and lifted its dividend, leading other financial stocks and broader equity markets higher."
------------
Here is some good news for a change. Wells Fargo is one of the top banks in housing loans, so at least somebody is surviving this meltdown. They had declining earnings for three quarters, but stayed in the black.

FT.com / In depth - FDIC warns four US banks over liquidity

FT.com / In depth - FDIC warns four US banks over liquidity: "Losses on mortages and other loans have helped bring down eight US banks this year, including one small Florida institution on Friday. Last month, Indymac, a California lender with $32bn in assets, became one of the largest banks to go under in US history. It filed for Chapter 7 bankruptcy protection on Friday.

The banks receiving cease-and-desist orders in June were MetroPacific Bank in Irvine, California; Bank Haven in Haven, Kansas; Clarkston State Bank in Clarkston, Michigan; and Hastings State Bank in Hastings, Nebraska."
-----------------
Eight failures so far this year. The big Indymac failure last year. Four more just warned for lack of liquidity, i.e., not enough cash. As I understand it, when the FDIC decides to close a bank they just show up on Friday afternoon without notice and take over. That way the depositors can't rush to the bank to get their money out. So who knows what nasty surprises are on the horizon?

Federal judge says Mount Soledad cross can stay - San Jose Mercury News
The federal judge is Larry Burns, a friend of mine from the DA's office in San Diego and our paperboy for the Pasadena Star-News when I was a kid. What a great decision.

Urban America: The New Solid South | Newgeography.com: "Today, America’s urban areas have evolved into a political monoculture that increasingly resembles the “solid South” that provided a base for Democrats from the late 19th century to the 1960s. Since 1972, the year of the Nixon landslide, the Democratic share has grown 20 percent or more in most of the largest urban counties."
---------------
Chicago is a great example. There is no functional Republican party opposition to the Democrat machine. No matter how bad the corruption and incompetence, the people vote for the Democrats. And that culture spread to the state government, which, thanks to corrupt Republican Governor Ryan, is now all Democrat-controlled and coincidentally corrupt and incompetent and dysfunctional. And if the coronation of Lord Obama proceeds as planned by He-Who-Must-Not-Be-Criticized and the media, a huge herd of Chicago/Illinois corrupticrats will descend on Washington and enjoy a feast at the public trough the likes of which this country has never seen. So this urban political monoculture will have disastrous consequences. Boss Tweed would have loved it.

Lake Bluff seeks records that led to tax exemption -- chicagotribune.com

Lake Bluff seeks records that led to tax exemption -- chicagotribune.com: "Lake Bluff requested financial records Thursday from a resident who got an $80,000 property tax break from the Illinois Department of Revenue after he converted his lakefront mansion into a church."
--------------
Nice idea, but the city won't go along with it. Thanks to Dennis James, founder of Quantum Pork, for the link.

About The Lawsuit

Involuntary HOA?The Sand Lake Hills Homeowners Association, hereinafter SLH, and a group of property owners who own 57 lots in Section 3, have taken it upon themselves to attempt to remake Sand Lake Hills into something it was never intended to be: a development controlled by a homeowner association which can levy mandatory assessments against all of the owners, even those who don’t want a homeowner association and who don’t want to pay assessments. SLH has stated that membership in the association is not mandatory for current owners. However, they say that even those members who didn’t join will still have to pay. Taxation without representation was bad enough. Taxation without affiliation is even worse.
------------------
This reminds me of those episodes of Star Trek when the Borg cube shows up and you hear, "Resistance is futile. You will be assimilated." Thanks to Beth Young for the link.

Mutual of Omaha Bank to Acquire Deposits of Failed First National Bank - FOXBusiness.com

BANK FAILURE: Mutual of Omaha Bank to Acquire Deposits of Failed First National Bank--including Community Association Banc: "OMAHA, Neb., Jul 25, 2008 (BUSINESS WIRE) ----Mutual of Omaha Bank has agreed to acquire from the FDIC the deposits of the failed Reno, Nev.,-based First National Bank of Nevada and its affiliate, First Heritage Bank of Newport Beach, Calif., the company announced...Federal regulators on Friday declared First National Bank of Nevada and its affiliates insolvent and the FDIC was named receiver...The acquisition also includes two First National operations: the Wealth Management Division and Community Association Banc, which serves neighborhood and condominium homeowners associations.
---------
Thanks to an alert correspondent who sent this along. Community Association Banc's website has already been changed to reflect the takeover. AHRC noted that the bank was making loans to condo and homeowner associations, was active with CAI, and was a supporter of aggressive foreclosure practices and laws in order to collect on those loans from debtors. Well, now it seems that it has gone into the "debtor" class itself.

Bloomberg.com: Worldwide

Bloomberg.com: Worldwide: "The S&P/Case-Shiller home-price index dropped 15.8 percent from a year earlier, the biggest decline since records began in 2001, after decreasing 15.2 percent in April. The gauge has fallen every month since January 2007.

Stricter loan rules, rising mortgage rates and an increase in foreclosures are making it more difficult for prospective buyers to get financing, hurting home sales. The prolonged real-estate slump, along with higher fuel prices a shrinking job market, is weighing on consumers and the economy."
------------------
This is report I referred to below that showed LA and Miami dropping by 28%.

The Unraveling of the Suburban Fringe

The Unraveling of the Suburban Fringe: "Annual price changes in most of the largest metro areas, including New York, Los Angeles, Chicago, Miami, San Francisco, Seattle, Baltimore, Washington D.C., and Philadelphia, followed a similar pattern: Values were most stable within a 10-mile radius of the center of the city, but generally worsened with each successive radius ring as far as 50 miles from the center of the city."
--------------
This article is an overheated analysis of the situation, but with gas prices and overbuilding on the fringe, there is more of a decline in value out there. Or actually out here, considering that I live 50 miles from Chicago.

HOA Watch - Home

HOA Watch - Home
This link was sent to me by somebody who I will keep anonymous for the moment. What we have here is a firm that offers to drive around your HOA finding violations. Check this out:

"We will do a house by house drive-through of your entire property anytime of the day or night you require. Digital photos are taken of the violations reported. This service can be done weekly, biweekly, monthly or a one-time basis. We report based on what your specific violations are for your community."

This outfit claims "over 18 years in the Homeowner Association Management field," and they even capitalize every word of it for some reason.

Bloomberg.com: Worldwide

Housing slump fuels bear market--Bloomberg.com: Worldwide
U.S. stocks fell and the Dow Jones Industrial Average lost more than 200 points for the second time in three days after the International Monetary Fund said there is no end in sight to the housing slump.
-------------
There was also a report today saying that housing prices fell 16% over the last year. Las Vegas and Miami lost 25%.

On a lighter note, I will be on WBEZ today at 9:00 and you can check out the podcast. This is Chicago's NPR affiliate. The topic is condo associations banning the mezuzah, something I have blogged about here. Check it out by going to the program "Eight Forty Eight", or find the program at this location:
http://www.chicagopublicradio.org/Program_848.aspx

Anarchists' gathering surprisingly organized | US News | Idaho Statesman

Anarchists' gathering surprisingly organized--Idaho Statesman
This is a real headline.

My Way News - It's the law: No sagging pants in Chicago suburb

My Way News - It's the law: No sagging pants in Chicago suburb: "LYNWOOD, Ill. (AP) - Be careful if you have saggy pants in the south Chicago suburb of Lynwood. Village leaders have passed an ordinance that would levy $25 fines against anyone showing three inches or more of their underwear in public."
------------------
A $25 fine isn't worth the cost of imposing and collecting it. I say an immediate, on the spot, public flogging is the way to go.

CANOE -- CNEWS - Weird News: Court sinks pirate ship tree house: "VANCOUVER - Everyone but the neighbour loved an elaborate pirate ship-shaped tree house Andrew Dewberry built for his kids in his front yard."
-----------
You have to admit, that is an enticing lead.

Nearly 1 in 5 poor people surveyed in Erie County reported living in a home without utilities : Latest Local News : The Buffalo News

Nearly 1 in 5 poor people surveyed in Erie County reported living in a home without utilities : Latest Local News : The Buffalo News: "Nearly one in five poor people surveyed in Erie County in January said they were living in a home without running water, electricity or heat, according to a report released today by the Homeless Alliance of Western New York."
------------
Why do they not have utilities? Because a heck of the lot of them are squatters living in abandoned homes, according to the Homeless Alliance.

Home prices at four-year low

Home prices at four-year low: "SAN FRANCISCO -- With bargain-priced foreclosures glutting the market, the median price paid for a Bay Area home in June plunged below the half-million-dollar mark for the first time in four years, a research firm reported on Thursday.

The $485,000 median price for resale homes, new homes and condos was a breathtaking 27 percent drop from the peak $667,000 median reached just one year ago, in June and July 2007, according to DataQuick Information Systems of La Jolla. It was the lowest median since March 2004, when the benchmark stood at $469,500."
------------------
From $667,000 to $485,000 in one year. Holy price collapse, Batman.

Exurban League: Don't worry. Mr. Godwin has been notified.

Exurban League: Did this sound better in German?

"[W]e are going to grow our foreign service, open consulates that have been shuttered and double the size of the Peace Corps by 2011 to renew our diplomacy," said Obama. "We cannot to continue to rely only on our military in order to achieve the national security objectives that we have set. We have got to have a civilian national security force that is just as powerful, just as strong, just as well funded." (link)
----------------------
The press is ignoring this astonishing proposal to create a "civilian national security force that is just as powerful, just as strong, just as well funded" AS THE UNITED STATES MILITARY. However, he did propose it. This was a popular idea in Nazi circles in the 1930s. He also proposed a federal mandate to conscript junior and senior high school students into doing 50 hours per year of national service and 100 hours per year for college students.

If McCain proposed this sort of quasi-fascist nonsense, it would be front page news and people would question his sanity. But with Obama, the press just scrubs it from the speech and it is like it never happened.

The Golden State's not-so-golden goose - BusinessWeek.com- msnbc.com

The Golden State's not-so-golden goose - BusinessWeek.com- msnbc.com: "In March 2000, California state Treasurer Philip Angelides announced a bold new initiative. Angelides felt the Golden State could do good for both the citizens of the world and its retirees by taking state pension fund money out of two asset classes that were performing horribly at the time, tobacco stocks and emerging markets, and reinvesting in something with a social benefit — businesses and real estate in low-income neighborhoods in his home state."
----------------
Smooth move. And what is the price tag on that virtuous decision?

Blagojevich: Chicago May Need National Guard Help - News Story - WMAQ | Chicago

Blagojevich: Chicago May Need National Guard Help - News Story - WMAQ | Chicago: "CHICAGO -- As Governor Rod Blagojevich on Wednesday signed a new law that will put in place tougher penalties for selling guns to minors, he also announced he's got a new idea to help combat the violence that Chicago is experienc[ing]: he's talking to the Illinois State Police and the National Guard to see if they could help."
----------------
Our meathead governor pulled his face out the public trough long enough to make another moronic attempt at grandstanding. There has been an uptick in violent crime, but not close to a return to what it was in the late 1990s. And if you take a look at Chicago crime rates for the 70s and 80s, you have to conclude that things are pretty calm today by comparison. But that sort of long-term inquiry would get in the way of terrifying the public into increasing government power, and the Chicago Democratic Machine loves power. Ask Mayor Daley, or even Barack Obama, about that sometime.

Fires, Foreclosures Raise Risk of West Nile Virus

Fires, Foreclosures Raise Risk of West Nile Virus: "SAN FRANCISCO (AP) -Two plagues in California, fires and
foreclosures, may be increasing the risk of another: West Nile
virus. Wildfires have sullied the air in the Sacramento area so badly
that officials there have held off aerial spraying of insecticide
to combat the virus, which is spread to humans and animals by
infected mosquitoes. At the same time, backyard pools left with standing water in
abandoned, foreclosed properties have created a breeding ground for
mosquitoes, raising the risk of West Nile infection."
-------------------
Just wait. Next it will be frogs, and then locusts.

Scientist's blowtorch weedkiller backfires - Telegraph: "Robert Gailey, 79, watched in horror as sparks from a gas-powered garden tool caused the lawn and shrubs of his neighbours, Stuart and Phyliss McLean, to catch light. Mr Gailey had been using a Weed Wand, a £20 hand-held flaming device which burns weeds, to treat the driveway of his semi-detached home in Paisley, Renfrewshire. Within seconds, the McLeans's manicured lawn and evergreen trees were aflame and Mr Gailey's wife, Mary, called the Fire
Brigade."
---------------
Making the omelette of science requires breaking a few eggs, and setting fire to a few lawns, apparently. I am content with my neighbors being IT people, plumbers, and investment counselors. You can keep your scientists, thanks just the same.

Housing, banking crisis piles pressure on Bush: "LONDON (Reuters) - The housing crisis in the United States is fast spilling into a banking and financial debacle that could destabilize the world economy and put mounting pressure on the Bush administration to act."
--------------------
Yes, that's about the size of it. But do we really want the Bush administration to "act"? Act how, precisely? What problem have they acted on with speed and wisdom to date? So far their record is a series of ham-handed, authoritarian, secretive, often-expensive interventions that at best have questionable outcomes. Education reform that nobody likes; taxing and spending so as to produce unprecedented deficits; the botched occupation of Iraq; failing on Social Security reform and then greatly expanding Medicare to include prescription drugs with no idea how to pay for it; faith-based programs that amount to nothing; anti-terror policies that have been repudiated over and over by the courts...you name it. Why would anybody expect the Bush people to have a solution to this spiraling meltdown...a problem that they didn't foresee, did nothing to prevent, and haven't done much about as it progressed to what is now looming disaster? Maybe the best thing to do now is nothing, and give somebody new a chance at the problem in 2009, whoever that may be.

Analysts say more U.S. banks will fail - International Herald Tribune

Analysts say more U.S. banks will fail - International Herald Tribune: "As home prices continue to decline and loan defaults mount, U.S. regulators are bracing for dozens of American banks to fail over the next year."
------------------
It is remarkable how little attention the presidential candidates are paying to this situation. I guess it isn't as important as who wears what kind of flag pin.

Bloomberg.com: Worldwide

Secretary of Treasury wants to bail out Fannie Mae and Freddie Mac--Bloomberg.com: Worldwide: "July 13 (Bloomberg) -- Treasury Secretary Henry Paulson sought blanket authority from Congress to buy equity stakes in and lend to Fannie Mae and Freddie Mac, aiming to stem the collapse of confidence in the largest sources of U.S. mortgage financing."
-------------
He also wants the Fed to have a "consultative role." Here is the definition of the verb " to screw up":

To harm irreparably through inept handling; make a mess: ball up, blunder, boggle, botch, bungle, foul up, fumble, gum up, mess up, mishandle, mismanage, muddle, muff, spoil. Informal bollix up, muck up. Slang blow1, goof up, louse up, snafu. Idioms: make a muck of.

I think that is helpful in understanding the current housing market situation.

Back in business: IndyMac reopens Monday - CNN.com

Back in business: IndyMac reopens Monday after being taken over by feds- CNN.com: "Customers who found locked doors and armed guards Friday afternoon could use ATM cards over the weekend to get to their money, but an estimated 5 percent of the $19 billion deposited in the bank was not insured by the Federal Deposit Insurance Corporation (FDIC). Indymac's failure, which the FDIC chairman said could add up to be the most expensive U.S. bank failure ever, came as the FDIC's list of 'problem' institutions is on the rise. The FDIC disclosed last month that it was closely watching 90 financial institutions on its 'problem list,' up from 76 in the first quarter of 2008. The total assets of 'problem' institutions rose from $22.2 billion to $26.3 billion, the FDIC said."
-----------------
Hey, let's have a look at that "problem" list. What? "The FDIC does not publish a list of trouble banks out of concern it could spur a bank run, which is what the Office of Thrift Supervision (OTS) said happened to Indymac in recent weeks."

Oh. I guess the next few months should be exciting for the banking industry.

U.S. Weighs Takeover of Two Mortgage Giants: Financial News - Yahoo! Finance

U.S. Weighs Takeover of Two Mortgage Giants: Financial News - Yahoo! Finance"WASHINGTON — Alarmed by the growing financial stress at the nation’s two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday. The companies, Fannie Mae and Freddie Mac, have been hit hard by the mortgage foreclosure crisis. Their shares are plummeting and their borrowing costs are rising as investors worry that the companies will suffer losses far larger than the $11 billion they have already lost in recent months. Now, as housing prices decline further and foreclosures grow, the markets are worried that Fannie and Freddie themselves may default on their debt. Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers."
-----------------
That $11 billion figure is nothing. These two companies are responsible for $5 trillion in debt. The public costs, if they have to be taken over, could end up making the S&L industry collapse look like a minor inconvenience.

U.S. officials rush to reassure markets about loan agencies - International Herald Tribune: "Senior U.S. officials on Thursday sought to reassure the markets about the financial health of the nation's two largest mortgage finance companies as their stock prices plunged to their lowest level in 17 years on fears that they could face the possibility of a government bailout...The two companies play a central role in the marketplace by buying hundreds of billions of dollars in mortgages from lenders, repackaging them as securities and then either holding them in their portfolios or selling them to investors. While their stocks trade on the New York Stock Exchange, they were created by Congress to promote housing and the marketplace has long come to believe that they would be bailed out should they become insolvent. They hold a far lower level of capital than banks."
--------------------
Fannie Mae and Freddie Mac are in major trouble. If you don't think this is a big deal, read a little more about it.

BBC NEWS | UK | England | Staffordshire | Pirate birthday sunk by council

AAARRGGG! Shiver me timbers! No Jolly Roger?
A family who wanted to fly a Jolly Roger pirate flag at their house for their son's birthday party have been told they need planning permission. Richard Smith and Sharon Cooper from Stone in Staffordshire have postponed Morgan's sixth birthday while they await the outcome of their application. Permission is required to fly anything other than national flags, a Stafford Borough Council spokesman said.
_______________
This is a municipality in the People's Republic of Great Britain, where I think you need permission from the government to draw a deep breath. We associate laws like this with private governments, but in Britain this is the way municipalities operate. Sometimes we don't know how good we have it here...

Council bans goldfish bowls. 24/07/2004. ABC News Online

Council bans goldfish bowls. 24/07/2004. ABC News Online: "A fish kept in a bowl has a distorted view of reality...and suffers because of this,' Mr Mosca said."
--------------
I need to get a contest started for most ridiculous local ordinance, either from a municipality or an HOA. Any contributions?

www.kansascity.com | 07/09/2008 | Summer camps find a new trend: Kidsick parents, not homesick kids

www.kansascity.com | 07/09/2008 | Summer camps find a new trend: Kidsick parents, not homesick kids: "These days, camp leaders and family counselors say it is an increasingly common dynamic. It used to be the homesick kid begging to come home from camp. While that still happens, they have noticed that it is often parents who have more trouble letting go. They call it “kidsickness,” a condition attributed in large part to today’s more involved style of parenting. Observers also say it is only being exacerbated by our ability to be in constant contact by cell phone and computer, as well as many parents’ perception that the world is a more dangerous place."
--------------
Maybe this is the kind of person who sincerely wants to live in a gated community, surrounded by people exactly like themselves and protected from that nasty old world out there.

Our Towns - Build a Wiffle Ball Field and Lawyers Will Come - NYTimes.com

Our Towns - Build a Wiffle Ball Field and Lawyers Will Come - NYTimes.com: "After three weeks of clearing brush and poison ivy, scrounging up plywood and green paint, digging holes and pouring concrete, Vincent, Justin and about a dozen friends did manage to build it — a tree-shaded Wiffle ball version of Fenway Park complete with a 12-foot-tall green monster in center field, American flag by the left-field foul pole and colorful signs for Taco Bell Frutista Freezes.

But, alas, they had no idea just who would come — youthful Wiffle ball players, yes, but also angry neighbors and their lawyer, the police, the town nuisance officer and tree warden and other officials in all shapes and sizes."
---------------------
Did you ever think that maybe HOAs and condo associations are reflections of some larger cultural and institutional opposition to the individuals being creative with property?

Reason Magazine - Hit & Run > Flint, Michigan Battles Crack Epidemic
Now here's a local ordinance that should be adopted across the country.

California town creates parking havens for homeless

California town creates parking havens for homeless: "In Santa Barbara, the traditional middle-class has all but disappeared as property prices have soared, according to Gary Linker, executive director of New Beginnings. New Beginnings has sought to help people who are living out of their vehicles, like Harvey, by organizing a network of safe overnight parking havens, mostly in church and public carparks."
-------------
Living in your does kill two birds with one stone: it makes housing and gas prices affordable.

G8 summit: Gordon Brown has eight-course dinner before food crisis talks - Telegraph

G8 summit: Gordon Brown has eight-course dinner before food crisis talks - Telegraph: "The Prime Minister was served 24 different dishes during his first day at the summit – just hours after urging the world to reduce the 'unnecessary demand' for food and calling on British families to cut back on their wasteful use of food."
-----------------------
Nice to see that our European betters are still showing us the way.

Property Owner Retaliates With Pink, Purple House - Local News Story - WCAU | Philadelphia

Property Owner Retaliates With Pink, Purple House - Local News Story - WCAU | Philadelphia: "BUCKS COUNTY, Pa. -- A couple of businessmen made a colorful statement after they were blocked from developing their property their way. Perkasie Borough, Bucks County is quiet and sedate for the most part until you get to a newly painted home at 208 Ridge Ave. that stands out.cThe house is painted purple and pink."
-----------
And they chose especially ugly shades, too.

My Way News - Fed plans new rules to protect future homebuyers

My Way News - Fed plans new rules to protect future homebuyers: "WASHINGTON (AP) - In an effort to prevent a repeat of the current mortgage mess, Federal Reserve chairman Ben Bernanke says the Fed next week will issue new rules aimed at protecting future homebuyers from dubious lending practices. Bernanke also says the Fed may give squeezed Wall Street firms more time to tap the central bank's emergency loan program. The mortgage rules will crack down on a range of shady lending practices that has burned many of the nation's riskiest 'subprime' borrowers - those with spotty credit or low incomes - who were hardest hit by the housing and credit debacles. The plan would apply to new loans made by thousands of lenders of all types, including banks and brokers. It would restrict lenders from penalizing risky borrowers who pay loans off early, require lenders to make sure these borrowers set aside money to pay for taxes and insurance and bar lenders from making loans without proof of a borrower's income. It also would prohibit lenders from engaging in a pattern or practice of lending without considering a borrower's ability to repay a home loan from sources other than the home's value."
----------
How could lenders have been doing such dumb things in the first place?

Gov. Crist vetoes bill dealing with HOA operations | news-press.com | The News-Press

Gov. Crist vetoes bill dealing with HOA operations : "By way of late breaking news, one of the major pieces of legislation adopted during the 2008 session of the Florida Legislature was recently vetoed by Gov. Charlie Crist. House Bill 679 primarily dealt with homeowners' association operations, including areas such as HOA election procedures and reserves. According to the governor's veto message, he killed the bill because he did not support a provision which would have de-regulated swimming pool water quality monitoring requirements for smaller HOAs."
---------------------
Say what?

Bloomberg.com: Worldwide

Fannie Mae and Freddie Mac stock falling: "Fannie Mae and Freddie Mac have declined more than 60 percent this year, with declines accelerating in the past two weeks, on concern the companies' capital raisings since December may not be enough to overcome writedowns. Washington-based Fannie Mae so far has raised $6 billion in capital to offset writedowns on mortgages it owns or guarantees. Freddie Mac, based in McLean, Virginia, raised $13.5 billion since December and said last week plans to add $5.5 billion probably won't be fulfilled until late next month. Freddie Mac fell $2.59 to $11.91 after earlier dropping as low as $10.28. Fannie Mae declined $3.04 to $15.74 and earlier fell to $14.65. The new FAS 140 rule that seeks to stop companies keeping assets in off-balance sheet entities may force Fannie Mae and Freddie Mac to bring mortgages back onto their books, requiring them to put up capital, Lehman analysts led by Bruce Harting wrote in a note to clients today. Fannie Mae would need to add $46 billion of capital and Freddie Mac would need about $29 billion, the Lehman analysts wrote. The companies will probably get an exemption from the rule because it would be ``very difficult'' for them to raise that amount of capital, the analysts said."
---------------------
So their stock is falling because they are undercapitalized, and their stock is falling because new rules require them to show their delinquencies...and the solution is probably going to be what? Giving them an exception from the disclosure rule. Wonderful. That will certainly fix the problem that they are undercapitalized. Not.

Gulf Times – Gated communities in Egypt: "PALM HILLS, Egypt: The four-wheel-drives outside the terracotta villas include a Lexus and a Porsche, and under the shade of the palms and the bright red poinciana trees men in liveried overalls are buffing them to a shine.
Across the road, concealed behind a wall and down a path littered with rubble, Sabri Ali and his fellow gardeners are living five to a small room, earning 18 Egyptian pounds ($3.35) a day for seven hours work tending lawns and pruning trees."
------------------
Some folks sure do know how to live the high life.

New Haven Register - Historic block in Clinton may soon have 1st new house ince 1850​

New Haven Register - Historic block in Clinton may soon have 1st new house since 1850​: "CLINTON - The Historic District Commission has approved a major revision of design plans that would meet the special criteria for construction of a new house in the tiny Liberty Green Historic District...No construction can take place within the block-long confines of the Liberty Green Historic District, where just six houses built between 1725 and 1850 exist, without first being approved by the HDC."
--------------
Now that is one tough association.

My Way News - 'Public' online spaces don't carry speech, rights

My Way News - 'Public' online spaces don't carry speech, rights: "Companies in charge of seemingly public spaces online wipe out content that's controversial but otherwise legal. Service providers write their own rules for users worldwide and set foreign policy when they cooperate with regimes like China. They serve as prosecutor, judge and jury in handling disputes behind closed doors.

The governmental role that companies play online is taking on greater importance as their services - from online hangouts to virtual repositories of photos and video - become more central to public discourse around the world. It's a fallout of the Internet's market-driven growth, but possible remedies, including government regulation, can be worse than the symptoms."
-----------------------
This is similar to the argument I and others have been making about CIDs for a long time now. What happens to civil liberties when a public function gets privatized?

Schoolboys punished with detention for refusing to kneel down and pray to Allah | Mail Online

Schoolboys punished with detention for refusing to kneel down and pray to Allah | Mail Online: "Two schoolboys were given detention after refusing to kneel down and 'pray to Allah' during a religious education lesson. Parents were outraged that the two boys from year seven (11 to 12-year-olds) were punished for not wanting to take part in the practical demonstration of how Allah is worshipped. They said forcing their children to take part in the exercise at Alsager High School, near Stoke-on-Trent - which included wearing Muslim headgear - was a breach of their human rights."
--------------------
This happened in what was once Great Britain.

Pagan symbols can stay if permit bought | DesMoinesRegister.com | The Des Moines Register

Pagan symbols can stay if permit bought The Des Moines Register: "A decision that allows hand-painted religious symbols on a Des Moines couple's privacy fence has opened a debate at City Hall over the definition of graffiti. Inspectors in May ordered Ryle and Rachel MacPebbles to remove pagan and Celtic symbols from the fence after a neighbor complained. The couple appealed on religious freedom grounds, and city officials this week decided the handiwork can stay if the couple buys a $35 sign permit."
-------------------
The issue is whether this is graffiti, which is prohibited, or a religious sign, which is protected by the First Amendment and allowed as long as you get a sign permit. The city is going at this case-by-case. Seems like a good approach. I like it when people use common sense instead of acting like petty dictators.

Down and out in Las Vegas - Americas, World - The Independent

Down and out in Las Vegas - Americas, World - The Independent: "America's most outrageous city is facing a growing multitude of problems, and they all boil down to a single, unavoidable point: right now, far too little happens in Vegas, because not enough people are actually staying there. The onset of global slowdown, high petrol prices, and a nation-wide housing slump is spelling disaster for a town that owes every aspect of its wealth – from that gaudy replica of the Eiffel Tower to those scale models of Venetian canals and the Pyramids of Egypt – to its ability to inspire free-spending hedonism."
-------------
Disaster might be too strong a word. There will always be a market for a place that offers the ultimate in distraction. I get why people visit there and work there. I just don't see why so many people retire and move there. I would have thought retirees would want a more congenial climate. I mean, if Chicago is too cold, why move to a place that is too hot?

‘Nightmare’ condo fees after foreclosure | Business | projo.com | The Providence Journal

‘Nightmare’ condo fees after foreclosure -- The Providence Journal: "When McGarry took over as condo association treasurer in April, she quickly learned that the association had been in financial trouble even before the two owners defaulted. Although monthly fees had been raised from $195 to $225 in November, there was no money in reserve, and water, heat and electric service were about to be shut off. McGarry raised the condo fee to $275 and obtained a personal credit-card loan of $4,800 to pay past-due bills and retain a lawyer to help her collect back fees. “I was the only one who could get a loan,” she said. McGarry’s situation is extreme, but it’s not uncommon. Other condominium associations are facing problems because of owners who can’t or won’t pay common expenses, according to state Rep. Patricia Serpa, D-West Warwick. Many owners who get into financial trouble stop paying condo fees months before they default on their mortgages, according to Edmund Allcock, a lawyer representing the New England chapter of the Community Association Institute."
-------------
This is an 8-unit condo and two people stopped paying. These small condo buildings are especially risky.

Mother of all foreclosures

Mother of all foreclosures: "It is without the doubt the largest housing-related foreclosure yet in the Manteca-Lathrop market. Hundreds of lots in Beck Properties' highly-touted Oakwood Lake Shores and two sister developments in Mossdale Landing are now in the foreclosure process."
---------------
This is in San Joaquin County, California.

Pictured: The floating cities that could one day house climate change refugees | Mail Online

Pictured: The floating cities that could one day house climate change refugees | Mail Online: "An architect has come up with an innovative answer to rising sea levels - a city that floats around the world. The self-contained 'Lilypad' city will be home to around 50,000 'climate refugees' from the worst hit areas - including London."
-------------------
Not me. I intend to live in a dirigible.

Analyst sees 'ghost town' in Inland Empire | L.A. Land | Los Angeles Times

Analyst sees 'ghost town' in Inland Empire | L.A. Land | Los Angeles Times: "A financial analyst fresh from a tour of construction sites in the Inland Empire is warning Wall Street of a 'ghost town' where finished homes sit vacant and additional homes are still under construction.

'At several properties, there were a significant number of fully built homes sitting vacant along with a large number of additional homes still under construction,' Sandler O'Neill & Partners analyst Aaron Deer wrote today after touring developments in Corona and Ontario. 'At one master plan community, the entire development appeared to be vacant -- with the exception of crews working on new construction, it was a ghost town.'"
-----------------
And of course the majority of this "ghost town" construction is in what are supposed to be HOAs.

Couple Who Let Lawn Die to Save Water Face Fine - Oddities - redOrbit

Couple Who Let Lawn Die to Save Water Face Fine: "[W]hen Gov. Arnold Schwarzenegger declared a statewide drought June 4, Hartridge decided it was only right to let her front lawn die to save water. 'The whole water conservation ethic is very important to me,' said Hartridge, a state employee who bikes or rides the bus to work. But that ethic didn't agree with her neighbors, or with the city. Before Hartridge could plan new landscaping, a neighbor complained to the city about her brown lawn, and the Code Enforcement Department slapped the family with a citation. Their small brick home was declared a 'public nuisance' in violation of city code section 17.68.010, which states that front yards 'shall be irrigated, landscaped and maintained.' A $746 fine will be next unless they correct the violation."
--------------
The City of Sacramento is doing this. In a drought. Yet another example of a municipality acting like a stereotypical HOA.

Bloomberg.com: Worldwide

Foreclosures increase in LA and Miami: "New foreclosures almost quadrupled in Los Angeles and doubled in Miami in the second quarter, with as much as $5 billion worth of loans going bad in L.A. alone, the online real estate data company PropertyShark.com reported. The number of homes scheduled for auction in Los Angeles rose 14,505 compared with 3,797 in the same period a year earlier, PropertyShark said in a report distributed by e-mail. In Miami-Dade County, the number climbed to 2,677 from 1,282."
--------------------
We haven't seen the bottom of the housing crash yet.

'Eco-towns' will fall victim to economics - Telegraph: "Protesters gathered outside Parliament yesterday to voice their opposition to the Government’s plans for a string of new “eco-towns” across England."
-------------------
More government-sponsored utopianism. This hearkens back to the Garden Cities that were based on Ebenezer Howard's ideas.

Starbucks closing 600 stores in the US: Financial News - Yahoo! Finance

Starbucks closing 600 stores in the US

I guess that would constitute a sign of a slowing economy. But why on earth people pay $4.00 for a cup of burned coffee escapes me anyway. I realize many people like the social experience of Starbucks, and that's worth something. But the coffee is so overpriced that it resembles the housing bubble....hey! Maybe I'm onto something here.

Chicago, city of broad strictures -- chicagotribune.com

Chicago, city of broad strictures -- chicagotribune.com: "The fact is, a lot of 'little soft cities' have become brassier and freer and, well, funner than Chicago.

At Reason Magazine, we recently took a look at how the 35 most-populous cities in the United States balance individual freedom with government paternalism. We ranked the cities on how much freedom they afford their residents to indulge in alcohol, tobacco, drugs, sex, gambling and food. And, for good measure, we also looked at the cities' gun laws, use of traffic and surveillance cameras, and tossed in an 'other' category to catch weird laws such as New York's ban on unlicensed dancing, or Chicago's tax on bottled water.

The sad news, Chicagoans, is that your town came in dead last. And it wasn't even close."
--------------------
Chicago under Dictator-for-Life Richie Daley is now the most repressive and paternalistic city in the nation. Take that, homeowner and condo associations!

Witnesses: Man brought unloaded gun to party : Local : Redding Record Searchlight

Witnesses: Man brought unloaded gun to party in gated community--beatdown ensues: "LAKE CALIFORNIA -- Following a ruckus at a house party, a 40-year-old Cottonwood man and a group of partygoers fended off a man armed with an unloaded shotgun early Saturday inside this gated community, according to authorities.

Tehama County sheriff's deputies responded to a disturbance at Covington Mill Road at 12:58 a.m. When they arrived, they found eight to 10 people fighting, deputies reported Monday."
-----------------
I could see this happening in a trailer park or the Jerry Springer show, but aren't gated community residents supposed to show a little more decorum?

Obama's Katrina - By Mickey Kaus - Slate Magazine

Obama's Katrina - By Mickey Kaus - Slate Magazine: "Obama's career has been unusually limited for a presidential contender. Housing and 'community development' has been a big part of it. If the result has been a disaster in which Obama's friends made lots of money while his poor constituents lived in dangerous squalor, that seems like a big warning sign, no?"
----------------
See below. With the media functioning as PR flacks for the Obama campaign, I wonder how much of the man's actual record and bizarre reversals of position will be covered.

Grim proving ground for Obama's housing policy - The Boston Globe: "CHICAGO - The squat brick buildings of Grove Parc Plaza, in a dense neighborhood that Barack Obama represented for eight years as a state senator, hold 504 apartments subsidized by the federal government for people who can't afford to live anywhere else.

But it's not safe to live here."
--------------------
Think Obama is a policy genius? Read this.

cbs2chicago.com - Cook County Tax Hike In Effect, Businesses Furious

cbs2chicago.com - Cook County Tax Hike In Effect, Businesses Furious: "As CBS 2's Joanie Lum reports, a 1 percent sales tax increase is in effect Tuesday, hiking the sales tax in the city of Chicago to 10.25 percent. By comparison, the sales tax in Lake and Will counties is 7 percent, and in DuPage County, it's 7.25 percent. A sales tax of 10.25 percent is also significantly higher than the sales tax in other major cities. The next highest rate in the country is in Memphis at 9.25 percent. New York, Los Angeles and Dallas all have a sales tax of under 8.3 percent, Phoenix has a tax of 6.3 percent, and Denver's sales tax is only 3.6 percent. The Cook County Board voted to raise the sales tax at the end of February, after a five-month stalemate on the 2008 budget. Board President Todd Stroger and his supporters ultimately prevailed, saying the tax hike was necessary to provide health care and other services."
-----------------
Chicago now has the highest sales tax in the US, at 10.25%, in order to fund the city's welfare state and pay exorbitant salaries to Todd Stroger's friends and relatives for the non-jobs the don't do.

Businesses are outraged, but with a Democratic city government, county government, and state government, they have no legitimate voice in politics. Everything is framed in terms of the Democrats and their constituencies. Their only route to influence in this state is through corruption: payoffs and campaign contributions to the Democrats and the few Republicans who are part of what columnist John Kass calls "The Combine." That, of course, is dangerous with the Feds lurking around. And we are now on the verge of electing as President of the US a man who came straight out of the Chicago machine.

Homeowners or Condominium Association Fees: Nondischargeable, But Maybe It’s Not a Problem : Bankruptcy Law Network

Homeowners or Condominium Association Fees: Nondischargeable, But Maybe It’s Not a Problem : Bankruptcy Law Network: "Section 523(a)(16) of the bankruptcy law, as amended by the 2005 Bankruptcy Reform Act, makes homeowners or condominium association fees nondischargeable, but only if the association fees arose after the date the bankruptcy was filed, and only for so long as the debtor has an ownership interest, or some other equitable interest, in the property. A post-bankruptcy sale or foreclosure of the debtor’s interest in the property, once fully completed, ends any further accumulation of association fees.

For debtors who are keeping their townhouse or condominium notwithstanding their bankruptcy filing, the nondischargeable nature of post-bankruptcy association fees is not a problem. However, debtors who plan to surrender their townhouse or condominium in the bankruptcy are vexed by the question of what to do about post-bankruptcy association fees."
--------------------------
The solution: the bank will have to pay the fees in order to sell the property.

FOXNews.com - Law Banning Annoying People During Pope's Visit to Australia Criticized - International News | News of the World | Middle East News | Europe News

FOXNews.com - Law Banning Annoying People During Pope's Visit to Australia Criticized
SYDNEY, Australia — New regulations making it a crime to annoy or inconvenience people gathering in Sydney during Pope Benedict XVI's visit later this month were criticized Tuesday as a heavy-handed blow to free speech.

The laws will apply in dozens of areas of downtown Sydney — including the city's landmark opera house, train stations and city parks — that are designated venues for World Youth Day, a Catholic evangelical festival at which the pontiff will conduct mass and lead prayer meetings.

The regulations give police and emergency services workers power to order anyone to stop behavior that "causes annoyance or inconvenience to participants in a World Youth Day event," according to a New South Wales state government gazette. Anyone who does not comply faces a 5,500 Australian dollar (US$5,300) fine.
--------------
So can any gated community inmates top this? When James Madison, et al., said government power has to be limited because neither the majority nor any minority can be trusted with unlimited power, they had a point.

Our little emperors: does worrying do more harm than good? - Times Online

Our little emperors: does worrying do more harm than good? - Times Online: "A US academic has coined the term kindergarchy – a new (affluent) world order in which children rule. “Children have gone from background to foreground in domestic life with more attention centred on them, their upbringing [and] their small accomplishments,” wrote Joseph Epstein, a recently retired lecturer at Northwestern University, in The Weekly Standard, a US magazine."
-------------------
I think Epstein's next words were, "Get off my lawn!"

Maybe he doesn't get the principle behind praising these "small accomplishments." Kids develop confidence by experiencing success, and if you reward them for doing well in school and so forth they will probably direct their energies in socially useful directions. That way they become successful members of a productive society.

Otherwise, they might turn into crabby university professors.

My Way News - Ex-Army scientist to get $5.8M in anthrax lawsuit

My Way News - Ex-Army scientist to get $5.8M in anthrax lawsuit: "WASHINGTON (AP) - A former Army scientist who was named as a person of interest in the 2001 anthrax attacks will receive $5.8 million to settle his lawsuit against the Justice Department. Steven Hatfill claimed the Justice Department violated his privacy rights by speaking with reporters about the case."
--------------
Remember the 9/11 anthrax scare? This gentleman had nothing to do with it. But that didn't stop the Justice Department from publicly declaring him a "person of interest." Now we, the taxpayers, are paying for that folly.

The BIG One - WTAM 1100

I'm from FEMA and I'm here to help you...: "(Cedar Rapids) According to police a contracted FEMA housing inspector nearly hit a Penford Products employee with his car and then got out of the car slamming the man with a golf club.

FEMA housing inspector Vincent Koley, 74, was charged with assault with a dangerous weapon after the 11:30 a.m. incident, the Cedar Rapids Police Department reported.

Koley stopped the car and jumped out, police said. Tom Kramer told him to slow down and that he was in the cross walk. Koley replied that 'he didn't have to slow down, he was with FEMA,' police said. The two argued for a minute, and when Kramer turned to walk away, Koley took a golf club out of his car and struck Kramer across the arm, breaking the golf club."
-----------------
Yeah, and don't eat tomatoes, either. Well, maybe it's not the tomatoes, but don't eat them anyway. And get out of the way, because FEMA is coming through.

We are the federal government, here to help you.