Scarcity of jobs puts more at risk of foreclosure
"Ultimately, the housing story, whether it is delinquencies, homes sales or housing starts, is an employment story," Jay Brinkmann, the Mortgage Bankers Association's top economist, said in a statement. "Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers."
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If things don't turn around relatively soon, I wonder if mortgage lenders will take a voluntary foreclosure holiday, figuring the costs of foreclosing and attempting to resell in a bad market simply aren't worth it. After all, foreclosure is based on the value (and marketability) of the property securing the amount of the loan. With home price deflation and so many out of work (and therefore unable to buy foreclosed homes), the quality of that security to remedy delinquent mortgage debt is called into question.
Thursday, August 26, 2010
California rejects even modest pension reform | Washington Examiner
California rejects even modest pension reform | Washington Examiner
I'm no fan of taking away pension benefits from public employees who have already paid a ton of money toward their pensions and deserve what they bargained for. I'm one of them. But unless some sort of reform takes place, many of these public pension funds will become insolvent. That will put in question the adequacy of the federal insurance that stands behind most of these plans. There was a savings and loan bailout in the 1980s, and a huge bank/auto bailout two years ago. The feds are up to their necks in red ink. How can they stand another bailout? So...what are the states going to do about their unfunded pension liabilities?
I'm no fan of taking away pension benefits from public employees who have already paid a ton of money toward their pensions and deserve what they bargained for. I'm one of them. But unless some sort of reform takes place, many of these public pension funds will become insolvent. That will put in question the adequacy of the federal insurance that stands behind most of these plans. There was a savings and loan bailout in the 1980s, and a huge bank/auto bailout two years ago. The feds are up to their necks in red ink. How can they stand another bailout? So...what are the states going to do about their unfunded pension liabilities?
Wednesday, August 25, 2010
Morgan Stanley Says Government Defaults Inevitable - Bloomberg
Morgan Stanley Says Government Defaults Inevitable - Bloomberg
It does look that way, doesn't it?
It does look that way, doesn't it?
Housing in Ten Words � The Baseline Scenario
Housing in Ten Words: The Baseline Scenario
The ten words are, "Housing fades as a means to build wealth, analysts say," and it is the title of a New York Times article. They say, "Many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg."
And I think they are right. Buying a house was like getting on an escalator. All you had to do was wait, and up you went. No longer. Take a look at the graph of housing prices.
The ten words are, "Housing fades as a means to build wealth, analysts say," and it is the title of a New York Times article. They say, "Many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg."
And I think they are right. Buying a house was like getting on an escalator. All you had to do was wait, and up you went. No longer. Take a look at the graph of housing prices.
Tuesday, August 24, 2010
Policy re comments
I need to ask some people to use a little common sense in posting comments here. I normally greenlight everything that isn't either commercial spam or potentially defamatory. What is defamatory? Going after particular individuals, especially by name, and accusing them of crime or other such activity. Please, people--use some common sense, OK? If you want to libel people on the web, get your own blog, and then you can defend yourself in the ensuing libel suit.
Home sales plunge 27 pct. to lowest in 15 years - Yahoo! News
Home sales plunge 27 pct. to lowest in 15 years - Yahoo! News
WASHINGTON – Sales of previously occupied homes plunged last month to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas. July's sales fell by more than 27 percent to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday. It was the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.
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Sales were weakest in the low to mid-priced range. That's especially troubling. This isn't just the end of the McMansion era. This is middle-class housing.
WASHINGTON – Sales of previously occupied homes plunged last month to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas. July's sales fell by more than 27 percent to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday. It was the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.
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Sales were weakest in the low to mid-priced range. That's especially troubling. This isn't just the end of the McMansion era. This is middle-class housing.
Monday, August 23, 2010
CNNMoney.com: The latest real estate rip-off
Here's an item appearing in CNNMoney.com that suggests the community association industry and other backers of residential property transfer fees are going to face PR and political headwinds on this issue, which was spotlighted on this blog several days ago.
US housing slide threatens to drag economy into recession
US housing slide threatens to drag economy into recession
NEW YORK/WASHINGTON: Housing led the US out of seven of the last eight recessions. This time, it may kill the recovery. Home sales collapsed after a federal tax credit for buyers expired in April.
Since then, the manufacturing-led expansion, which began in the second half of 2009, has been waning, with jobless claims rising and factory orders falling.
“If foreclosures continue to mount and depress home prices, that could send the economy back into a recession,” said Celia Chen, an economist who tracks the industry for Moody’s Analytics. “The housing market and the broader economy are closely intertwined.”
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More bad economic tidings: a potential double dip recession led by the still deeply troubled housing market. It's also not good news for the residents of Privatopia and future Privatopian developer/kings.
NEW YORK/WASHINGTON: Housing led the US out of seven of the last eight recessions. This time, it may kill the recovery. Home sales collapsed after a federal tax credit for buyers expired in April.
Since then, the manufacturing-led expansion, which began in the second half of 2009, has been waning, with jobless claims rising and factory orders falling.
“If foreclosures continue to mount and depress home prices, that could send the economy back into a recession,” said Celia Chen, an economist who tracks the industry for Moody’s Analytics. “The housing market and the broader economy are closely intertwined.”
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More bad economic tidings: a potential double dip recession led by the still deeply troubled housing market. It's also not good news for the residents of Privatopia and future Privatopian developer/kings.
Philly requiring bloggers to pay $300 for a business license | Washington Examiner
Philly requiring bloggers to pay $300 for a business license | Washington Examiner
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The city isn't doing anything for bloggers to justify this "tax." It isn't really a tax--it's more like a legalized form of theft.
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The city isn't doing anything for bloggers to justify this "tax." It isn't really a tax--it's more like a legalized form of theft.
Sunday, August 22, 2010
House buyers $tung - NYPOST.com
House buyers $tung - NYPOST.comJust when you thought it was safe to dive into the housing market, a new survey shows mortgage closing costs have skyrocketed an average 37 percent -- with New York topping the surge. The Bankrate.com survey released this week found that in New York, closing-cost fees hit $5,623, basing the estimate on a $200,000 mortgage for a $250,000 home. The national average on that same loan was $3,741 -- up from $2,739 last year. Blame it on regulations designed to rein in the mortgage industry.
Read more: http://www.nypost.com/p/news/local/house_buyers_tung_kpFSxiqYirMOtFoXnaiuxL#ixzz0xMzHV9e4
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So we have lots of new rules for lenders, tougher requirements for getting a loan, and higher costs. Now go buy a house.
Read more: http://www.nypost.com/p/news/local/house_buyers_tung_kpFSxiqYirMOtFoXnaiuxL#ixzz0xMzHV9e4
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So we have lots of new rules for lenders, tougher requirements for getting a loan, and higher costs. Now go buy a house.
Post-Mortgage Meltdown, Where Do We Go Now? : NPR
Post-Mortgage Meltdown, Where Do We Go Now? : NPR: "'The world we live in today is not quite the world that existed in 1950,' he noted. 'The nature of households and the rate at which they dissolve and reform, the nature of work and its transient nature across geographies are all things that suggest that maybe, just possibly, a middle-class American shouldn't stake themselves to an illiquid, very large, concentrated, leveraged asset —- that is to say, a house.'"
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Especially one where you not only have to deal with your "asset," but you have a complicated and troublesome joint ownership with all your neighbors.
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Especially one where you not only have to deal with your "asset," but you have a complicated and troublesome joint ownership with all your neighbors.
Saturday, August 21, 2010
FT.com / US / Economy & Fed - California faces issuing IOUs again
FT.com / US / Economy & Fed - California faces issuing IOUs again: "California will be forced to issue IOUs to public workers and other creditors in lieu of cash in the next two months if a budget deadlock cannot be broken, the state’s financial controller has warned."
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La de da, la de da. Off the cliff the California legislature and governor go, with Illinois state government hurrying to catch up with them.
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La de da, la de da. Off the cliff the California legislature and governor go, with Illinois state government hurrying to catch up with them.
Homeowners association battle threatens homes
Homeowners association battle threatens homes
CHARLOTTE COUNTY - Residents in a retirement community here say they are being threatened with lien and foreclosure notices because of a legal battle with their homeowners association.
"There was a 93-year-old woman, and they told her, 'If you don't pay your dues, we're going to take your house away from you,'" said Conklin Houle, 73. "You can't do that to somebody who's lived in their house 30 or 35 years."
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And the owner of that home with the brown lawn is likely in a heap of trouble with the HOA.
CHARLOTTE COUNTY - Residents in a retirement community here say they are being threatened with lien and foreclosure notices because of a legal battle with their homeowners association.
"There was a 93-year-old woman, and they told her, 'If you don't pay your dues, we're going to take your house away from you,'" said Conklin Houle, 73. "You can't do that to somebody who's lived in their house 30 or 35 years."
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And the owner of that home with the brown lawn is likely in a heap of trouble with the HOA.
Friday, August 20, 2010
Regulators Shut 4 California Banks
Regulators Shut 4 California Banks
WASHINGTON -- Regulators on Friday shut down four California banks, a big community bank based in Chicago, and banks in Florida and Virginia. The closures boosted to 118 the number of U.S. bank failures this year. The Federal Deposit Insurance Corp. on Friday took over the California banks: Butte Community Bank, based in Chico; Pacific State Bank, based in Stockton; Los Padres Bank, in Solvang; and Sonoma Valley Bank, in Sonoma.
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The hangover from the 2003-07 bash continues....pass the Excedrin.
WASHINGTON -- Regulators on Friday shut down four California banks, a big community bank based in Chicago, and banks in Florida and Virginia. The closures boosted to 118 the number of U.S. bank failures this year. The Federal Deposit Insurance Corp. on Friday took over the California banks: Butte Community Bank, based in Chico; Pacific State Bank, based in Stockton; Los Padres Bank, in Solvang; and Sonoma Valley Bank, in Sonoma.
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The hangover from the 2003-07 bash continues....pass the Excedrin.
Lake Mead's Water Level Plunges as 11-Year Drought Lingers - NYTimes.com
Lake Mead's Water Level Plunges as 11-Year Drought Lingers - NYTimes.comLake Mead, the enormous reservoir of Colorado River water that hydrates Arizona, Nevada, California and northern Mexico, is receding to a level not seen since it was first being filled in the 1930s, stoking existential fears about water supply in the parched Southwest.
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You do realize that Las Vegas is fated to become a ghost town, right? They can go ahead and spend billions of our money to build a bullet train line from Anaheim to Vegas because Harry Reid says so, but that whole part of the country is going to run out of water. It's just simple math. The ground water has been pumped down to levels that will take hundreds if not thousands of years to recharge. And there is the Colorado River, and you can read about that--Lake Mead hasn't been this low in 50 years. Why? Every year they take out of Lake Mead 1.6 million acre feet more water than flows into it. Vegas, Henderson, Phoenix, Mesa, and those other growing desert cities are artificial creations that depend on massive infusions of water from elsewhere, and there is no way the flow can be sustained. Try and tell that to a real estate developer or a local booster mayor, though. They won't hear it. And of course the hordes of retirees who flock there to lie around the pool and play golf on those massively watered courses have no idea what is going on.
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You do realize that Las Vegas is fated to become a ghost town, right? They can go ahead and spend billions of our money to build a bullet train line from Anaheim to Vegas because Harry Reid says so, but that whole part of the country is going to run out of water. It's just simple math. The ground water has been pumped down to levels that will take hundreds if not thousands of years to recharge. And there is the Colorado River, and you can read about that--Lake Mead hasn't been this low in 50 years. Why? Every year they take out of Lake Mead 1.6 million acre feet more water than flows into it. Vegas, Henderson, Phoenix, Mesa, and those other growing desert cities are artificial creations that depend on massive infusions of water from elsewhere, and there is no way the flow can be sustained. Try and tell that to a real estate developer or a local booster mayor, though. They won't hear it. And of course the hordes of retirees who flock there to lie around the pool and play golf on those massively watered courses have no idea what is going on.
Kenneth R. Harney - FHFA's proposed ban on private transfer fees could cost homeowners
Kenneth R. Harney - FHFA's proposed ban on private transfer fees could cost homeowners: "Andrew Fortin, vice president of government affairs for the 30,000-member Community Associations Institute, which represents homeowners and association managers nationwide, said that banning investments in mortgages on properties with transfer fees payable to associations 'is potentially a big problem.' Among other negatives, it could force associations to increase annual assessments on individual homeowners.
Fortin said his group 'shares the concerns of FHFA about programs that create neo-feudal arrangements' with outside investors, but believes the agency needs to better distinguish between profit-motivated transfer fees and those that benefit public interest and nonprofit organizations."
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Thanks to Fred Pilot for the link. CAI seems to want to protect HOAs power to assess transfer fees. Fred predicted they would take that position, by the way.
Fortin said his group 'shares the concerns of FHFA about programs that create neo-feudal arrangements' with outside investors, but believes the agency needs to better distinguish between profit-motivated transfer fees and those that benefit public interest and nonprofit organizations."
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Thanks to Fred Pilot for the link. CAI seems to want to protect HOAs power to assess transfer fees. Fred predicted they would take that position, by the way.
Blagojevich Jury Holdout Remaining Silent; Source Identifies Her As Jo Ann Chiakulas - cbs2chicago.com
Blagojevich Jury Holdout Remaining Silent; Source Identifies Her As Jo Ann Chiakulas - cbs2chicago.com: "Sources tell CBS 2 News that the holdout juror is Jo Ann Chiakulas, a retired state employee. She used to work for the Illinois Department of Public Health, had been a director of teen counseling for the Chicago Urban League and once handed out campaign literature for a relative who ran for public office."
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And she is somebody who should never have been on that jury in the first place, because the US Attorney's office should have bounced her. I picked her as the holdout while the jury was still deliberating. Ask my son if you don't believe me.
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And she is somebody who should never have been on that jury in the first place, because the US Attorney's office should have bounced her. I picked her as the holdout while the jury was still deliberating. Ask my son if you don't believe me.
Nearly 50 percent leave Obama mortgage-aid program - BostonHerald.com
Nearly 50 percent leave Obama mortgage-aid program - BostonHerald.com: "A new report issued Friday by the Treasury Department said that approximately 630,000 people who had tried to get their monthly mortgage payments lowered through the effort have been cut loose through July. That’s about 48 percent of the 1.3 million homeowners who had enrolled since March 2009. That is up from more than 40 percent through June.
The report suggests foreclosures could rise in the second half of the year and weaken the ailing housing market, analysts say."
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Borrowers say the program is "a bureaucratic nightmare." Banks lose their paperwork and then claim the borrowers never turned it in.
The report suggests foreclosures could rise in the second half of the year and weaken the ailing housing market, analysts say."
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Borrowers say the program is "a bureaucratic nightmare." Banks lose their paperwork and then claim the borrowers never turned it in.
Thursday, August 19, 2010
Cable TV: Homeowners associations buck cable bills - OrlandoSentinel.com
Cable TV: Homeowners associations buck cable bills - OrlandoSentinel.com: "For years, subdivision developers have locked their homeowners associations into blanket caCable-television contracts that force the associations to pay for every home in a community — even if a house is empty or the owners are behind on their homeowner fees.
But now, with associations racked by record foreclosures and delinquent homeowner fees, some communities are balking at paying for unused cable service in vacant houses or service to homes where the owners long ago stopped paying their association fees."
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Thanks to Beth for this instructive story. It is fascinating to hear industry advocates waxing eloquent about the supposed contract that the owners entered into with their fellow residents, thus indenturing themselves forever. Deals like, this, though, show what really happens. The developer writes whatever he wants, sells out, and leaves, and the residents are stuck with whatever situation he created for them. But when things like this happen...when it is the association that wants to break what looks like a bad deal...then watch the industry advocates switch sides and talk about the need to rewrite the deal to save the association in these hard times. As someone once said, where you stand depends on where you sit.
But now, with associations racked by record foreclosures and delinquent homeowner fees, some communities are balking at paying for unused cable service in vacant houses or service to homes where the owners long ago stopped paying their association fees."
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Thanks to Beth for this instructive story. It is fascinating to hear industry advocates waxing eloquent about the supposed contract that the owners entered into with their fellow residents, thus indenturing themselves forever. Deals like, this, though, show what really happens. The developer writes whatever he wants, sells out, and leaves, and the residents are stuck with whatever situation he created for them. But when things like this happen...when it is the association that wants to break what looks like a bad deal...then watch the industry advocates switch sides and talk about the need to rewrite the deal to save the association in these hard times. As someone once said, where you stand depends on where you sit.
HOA to Laguna Niguel man: Get rid of pet pigeons
HOA to Laguna Niguel man: Get rid of pet pigeons
After neighbors raised a flap over early morning bird noises, a Laguna Niguel pet owner has a tough choice to make. Wei Lu will have 10 days to get rid of about 50 pigeons in his back yard or face a lawsuit after receiving a formal complaint from his homeowners' association. The homeowner says if he does not fight the complaint in court, he will be forced to kill the birds as the specially-bred racing pigeons are trained to return to his back yard.
After neighbors raised a flap over early morning bird noises, a Laguna Niguel pet owner has a tough choice to make. Wei Lu will have 10 days to get rid of about 50 pigeons in his back yard or face a lawsuit after receiving a formal complaint from his homeowners' association. The homeowner says if he does not fight the complaint in court, he will be forced to kill the birds as the specially-bred racing pigeons are trained to return to his back yard.
Deflation Watch
For all you deflation hawks out there who appreciated my posts on the prospect of deflation: Check out my Deflation Watch blog.
I make no predictions as to whether deflation will occur. But I believe U.S. economic and demographic factors (such as Baby Boomers taking early Social Security retirement benefits) are lined up such to make deflation a clear and present danger.
I'll post developments and observations there from time to time. Please share your thoughts and comments on the blog.
I make no predictions as to whether deflation will occur. But I believe U.S. economic and demographic factors (such as Baby Boomers taking early Social Security retirement benefits) are lined up such to make deflation a clear and present danger.
I'll post developments and observations there from time to time. Please share your thoughts and comments on the blog.
Broke States Should Save Themselves By Selling Off Roads, Colleges, And Other Assets
Broke States Should Save Themselves By Selling Off Roads, Colleges, And Other Assets
One of the many looming financial crises in the United States is the horrendous budget shortfall faced by many states.
One of the many looming financial crises in the United States is the horrendous budget shortfall faced by many states.
James Altucher, managing director at Formula Capital, floats an innovative solution to this problem.
Instead of raising taxes, cutting spending, or going even deeper in debt, Altucher says, states should sell off some assets.
What assets?
Assets like roads, bridges, state parks, public transportation systems, and universities.
If New Jersey were to sell the New Jersey Turnpike, for example, it would immediately raise tens of billions of dollars, which would radically improve the state's financial health. And a private road operator might do a better job of running the turnpike than the state can.
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For the past three decades, local governments privatized local government as mandatory membership HOAs to cut costs. Now financially strapped states can do the same thing by privatizing their infrastructure, including universities. Query: Will our esteemed professor McKenzie retain tenure if the community association industry decides to buy the University of Illinois?
BBC News - Southern Sudan unveils plans for animal-shaped cities
BBC News - Southern Sudan unveils plans for animal-shaped cities Sure. With 90% of the population living on less than one dollar per day, why not a $10 billion plan to make cities shaped like animals and fruit?
What price liberty? Up to $50K - thestar.com
What price liberty? Up to $50K - thestar.com: "The municipality of Clarington is clamping down on a studious celebration of Canadian liberties, charging its rural hosts with a zoning offence carrying a hefty fine. “The irony isn’t lost on me,” said Peter Jaworski whose parents, Marta and Lech, have been charged under a bylaw for letting him hold — for the tenth time — the annual Liberty Summer Seminar on their 16 hectare spread east of Oshawa."
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Richly ironic tale of libertarian activists being shut down by the nanny state. Thanks to Mystery Reader for the link.
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Richly ironic tale of libertarian activists being shut down by the nanny state. Thanks to Mystery Reader for the link.
The Associated Press: Philadelphia housing director facing foreclosure
The Associated Press: Philadelphia housing director facing foreclosure: "A bank has foreclosed on a $615,000 condominium owned by the head of the Philadelphia Housing Authority, who earned $350,000 last year leading the nation's fourth-largest public-housing agency. Carl R. Greene, PHA's executive director, bought the three-bedroom, 2,100-square-foot condo in the upscale Naval Square development in 2007. He put down $215,000 in cash and took out a $400,000 mortgage, city records show. Greene, 53, stopped making payments on or around April 1, and three months later owed more than $7,500 in missed payments and late fees, according to the bank's July 27 lawsuit."
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Good grief. It seems that he has over $386,000 left on the mortgage. Now, in Chicago a public official could take care of that fairly quickly...Thanks to Tom Skiba for the link.
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Good grief. It seems that he has over $386,000 left on the mortgage. Now, in Chicago a public official could take care of that fairly quickly...Thanks to Tom Skiba for the link.
Real Estate & the Economy: Death of the 'McMansion': Era of Huge Homes Is Over - CNBC
Real Estate & the Economy: Death of the 'McMansion': Era of Huge Homes Is Over - CNBC: "In the past few years, there have been an increasing number of references made to the “McMansion glut” and the “McMansion backlash,” as more towns pass ordinances against garishly large homes, which are generally over 3,000 square feet and built very close together."
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I won't miss them.
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I won't miss them.
"Sovereign citizens" taking over homes | ajc.com
DA: Paper terrorists stealing homes �| ajc.com: "They call themselves “sovereign citizens” and believe they are immune to state and federal laws. They assert, among other things, that banks can’t own land and that any home owned by a bank – including the thousands throughout Georgia – is free for the taking.
Police and prosecutors take a different view. The FBI has listed them on the domestic terrorist list, saying their crime of choice is paper terrorism and attempting to disrupt the U.S. economy."
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This could get ugly.
Police and prosecutors take a different view. The FBI has listed them on the domestic terrorist list, saying their crime of choice is paper terrorism and attempting to disrupt the U.S. economy."
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This could get ugly.
Tuesday, August 17, 2010
HOA, residents fight over "Don't Tread on Me" flag
9NEWS.com | Denver | Colorado's Online News Leader | HOA, residents fight over flag: "Last week, he received a letter from the East York Villas Homeowner's Association stating: 'Tea Party flags are not permitted. Please Remove.' The letter threatened a fine of up to $100 per month if the flag is not removed.
The flag has also had connections to the U.S. military. But in recent years, the Gadsden flag has been a fixture at Tea Party rallies, making some think of it as a political symbol for that party."
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Thanks to the anonymous contributor who sent this along. Seems the Tea Party and the Gadsen flag aren't popular with the HOA crowd. Maybe it's that anti-authoritarian, pro-individual liberty message.
The flag has also had connections to the U.S. military. But in recent years, the Gadsden flag has been a fixture at Tea Party rallies, making some think of it as a political symbol for that party."
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Thanks to the anonymous contributor who sent this along. Seems the Tea Party and the Gadsen flag aren't popular with the HOA crowd. Maybe it's that anti-authoritarian, pro-individual liberty message.
Illinois Town Wants To Outlaw Eye-Rolling - The Consumerist
Illinois Town Wants To Outlaw Eye-Rolling - The Consumerist: "The idiocy stems from a recent city council meeting where an Elmhurst resident was ejected from the room after rolling her eyes in reaction to something that was said by a council member.
Members of the Elmhurst city council have asked the City Attorney to look into the creation of a 'disturbance and disorderly conduct' violation and to see if eye-rolling could somehow be shoehorned into its definition."
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Proving once again that city councils can be just as stupid as homeowner association boards.
Members of the Elmhurst city council have asked the City Attorney to look into the creation of a 'disturbance and disorderly conduct' violation and to see if eye-rolling could somehow be shoehorned into its definition."
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Proving once again that city councils can be just as stupid as homeowner association boards.
Karzai Orders Private Security Firms To Disband
Karzai Orders Private Security Firms To Disband: "Security operators – both Afghan and foreign – have become a point of contention between the government and coalition forces and the international community as complaints have mounted that the firms are poorly regulated, reckless and effectively operate outside local law."
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Sounds like things in Afghanistan are a lot like the US.
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Sounds like things in Afghanistan are a lot like the US.
Private Transfer Fee Covenants | TradingMarkets.com
Private Transfer Fee Covenants | TradingMarkets.com: "The Federal Housing Finance Agency (FHFA) is proposing to issue a Guidance, 'Guidance on Private Transfer Fee Covenants,' to the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), and the Federal Home Loan Banks (the Banks) that the entities it regulates should not deal in mortgages on properties encumbered by private transfer fee covenants. Such covenants appear adverse to liquidity, affordability and stability in the housing finance market and to financially safe and sound investments."
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This is a notice of a proposed rule change. Fred Pilot sent it along, with a note that CAI will probably oppose it. I keep hearing about HOAs and condos that are levying these private transfer fees.
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This is a notice of a proposed rule change. Fred Pilot sent it along, with a note that CAI will probably oppose it. I keep hearing about HOAs and condos that are levying these private transfer fees.
Sunday, August 15, 2010
Op-Ed Contributor - Universities Are Heading Toward Academic Bankruptcy - NYTimes.com
Op-Ed Contributor - Universities Are Heading Toward Academic Bankruptcy - NYTimes.com: "What we’ve seen with California’s distinguished state university system — huge cutbacks in spending and a 32 percent rise in tuition — is likely to become the norm at public and private colleges."
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Parents and students taking out huge loans to go to expensive "prestigious" private colleges, take it from a university professor: think that over very, very carefully before doing it. Did you know that you can't discharge student loans in bankruptcy?
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Parents and students taking out huge loans to go to expensive "prestigious" private colleges, take it from a university professor: think that over very, very carefully before doing it. Did you know that you can't discharge student loans in bankruptcy?
Banks to benefit most from Obama administration's effort to fight foreclosures - The Hill's On The Money
Banks to benefit most from White House effort to fight foreclosures - The Hill's On The Money
Well, my goodness. Who would have thought such a thing could happen?
Well, my goodness. Who would have thought such a thing could happen?
Saturday, August 14, 2010
Mall cops violate free speech rights, California Court of Appeal rules
A state appellate court has declared that rules regulating talk among strangers at the Galleria at Roseville violate California Constitution free speech guarantees.
A Placer County judge earlier had thrown out the case, finding that the owner's rules of conduct pass constitutional muster.
Read more: http://www.sacbee.com/2010/08/13/2957342/state-court-declares-gallerias.html#ixzz0wYPyi827
A Placer County judge earlier had thrown out the case, finding that the owner's rules of conduct pass constitutional muster.
But, in stark contrast, a three-judge panel of the 3rd District Court of Appeal declared this week in a 43-page opinion that "the rules are unconstitutional on their face" under the state constitution.
Friday, August 13, 2010
Leonard Link: Can the Proponents of Proposition 8 Appeal Judge Walker's Ruling?
Leonard Link: Can the Proponents of Proposition 8 Appeal Judge Walker's Ruling?
More detailed analysis of the standing issue I referred to below.
More detailed analysis of the standing issue I referred to below.
California Prop 8 case: Judge Walker’s Prop 8 Stay Decision | Emptywheel
Breaking News: Judge Walker’s Prop 8 Stay Decision | Emptywheel: "In the 9th Circuit, when a case goes up on appeal, and it has been there before to a given panel on any issue, that panel has the option of taking the full appeal when it is filed. Well, the Perry case has indeed already been up to the 9th previously on an interlocutory appeal of a discovery issue during the trial process, and that appeal was decided by a panel consisting of Judges Wardlaw, Fisher and Berzon. I think there is a very decent chance the standard 9th protocol is followed here and the full appeal is assigned to the previous panel of Wardlaw, Fisher and Berzon, which makes sense in terms of judicial economy since they are already up to speed on the parties and the case facts and posture. So who are these judges, and what is the book on them? Well, that is where the fun comes in. They are all three Clinton appointees, and two of them, Marsha Berzon and Ray Fisher, clerked for Justice Brennan. Solid liberal credentials for sure, and Kim Wardlaw may actually be even more enlightened. If the appeal gets assigned to this panel, it would be in excellent hands and I would like very much the chances for upholding Judge Walker’s decision in favor of marriage equality for all."
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This is some high-quality analysis. It makes sense to me. I followed the trial and it seems to me that Judge Walker's decision is going to stand--all the way to the United Supreme Court. That case was carefully set up by two of the best Supreme Court litigators in the country to foreground the key issue in Lawrence v. Texas. As with the Texas sodomy law that only applied to gays, the only basis for banning same-sex marriage is religious/moral disapproval of gays. I don't see how that can be the basis for a state law under the Equal Protection Clause, and I don't see how that constitutes a "rational basis" for a law, which means it also fails under the Due Process Clause.
ps: However, check out this post from law professor Ann Althouse, where she highlights Walker's point that his decision may not be appealed at all. Why? The State of California never defended Prop 8 to begin with, and the private parties who did defend it may have had standing to intervene and play that role at the trial stage, but may not have standing to appeal. That would mean Judge Walker's opinion would be the final word on gay marriage in California.
-----------------------
This is some high-quality analysis. It makes sense to me. I followed the trial and it seems to me that Judge Walker's decision is going to stand--all the way to the United Supreme Court. That case was carefully set up by two of the best Supreme Court litigators in the country to foreground the key issue in Lawrence v. Texas. As with the Texas sodomy law that only applied to gays, the only basis for banning same-sex marriage is religious/moral disapproval of gays. I don't see how that can be the basis for a state law under the Equal Protection Clause, and I don't see how that constitutes a "rational basis" for a law, which means it also fails under the Due Process Clause.
ps: However, check out this post from law professor Ann Althouse, where she highlights Walker's point that his decision may not be appealed at all. Why? The State of California never defended Prop 8 to begin with, and the private parties who did defend it may have had standing to intervene and play that role at the trial stage, but may not have standing to appeal. That would mean Judge Walker's opinion would be the final word on gay marriage in California.
Manhattan Luxury Condos Try FHA Backing in Sales `Game Changer' - Bloomberg
Manhattan Luxury Condos Try FHA Backing in Sales `Game Changer' - Bloomberg: "The Federal Housing Administration agreed in March to insure mortgages for apartments at the 98-unit Gramercy Park development, known as Tempo. That enables buyers to make a down payment of as little as 3.5 percent in a building where apartments range from $820,000 to $3 million."
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Cool. Can I have one of those mortgages and then default on it so the taxpayers get stuck with the tab? Or am I being too 2007?
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Cool. Can I have one of those mortgages and then default on it so the taxpayers get stuck with the tab? Or am I being too 2007?
Wednesday, August 11, 2010
Robert Reich: Anger boils as recession drags on
Long-term economic woes fuel anger
Widespread and long-term economic insecurity fuels anger. You can already see it in the backlash against globalization. Polls show most Americans don't want more trade, which is why the president can't get Congress to ratify any new trade agreements. Many people are also angry about immigration. Some even propose denying citizenship to children born in the United States of parents here illegally. The anger focuses on every major institution. According to polls, the public has a record low opinion of government, and also of big business and Wall Street.
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Add Privatopia -- mandatory membership homeowners associations -- to that list. The authority of private HOA government has never been fully accepted and respected compared to traditional muni and county government. HOAs consequently get plenty of anger and disrespect from their constituents. Current socioeconomic conditions will only make them more willing to flip off the HOA.
Widespread and long-term economic insecurity fuels anger. You can already see it in the backlash against globalization. Polls show most Americans don't want more trade, which is why the president can't get Congress to ratify any new trade agreements. Many people are also angry about immigration. Some even propose denying citizenship to children born in the United States of parents here illegally. The anger focuses on every major institution. According to polls, the public has a record low opinion of government, and also of big business and Wall Street.
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Add Privatopia -- mandatory membership homeowners associations -- to that list. The authority of private HOA government has never been fully accepted and respected compared to traditional muni and county government. HOAs consequently get plenty of anger and disrespect from their constituents. Current socioeconomic conditions will only make them more willing to flip off the HOA.
TaxProf Blog: NY Times: Museum Directors Enjoy Tax-Free Housing in Multi-Million Dollar Condos
TaxProf Blog: NY Times: Museum Directors Enjoy Tax-Free Housing in Multi-Million Dollar Condos: "The director of the Museum of Modern Art, Glenn D. Lowry, may have the best deal of all. In addition to the $2 million in salary and benefits he earned last year, he lives in a $6 million condo in the tower atop the museum.
But it’s not just the nice — and free — accommodation: None of these museum heads pay income tax on the value of this housing, which combined would rent for about $400,000 a year."
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Seems there is a tax loophole for university presidents and other cultural poobahs who are required to live on "business premises," meaning university or museum owned housing. It is major league perk. Not only do they get free housing--they don't even have to pay taxes on what is obviously a huge part of their pay package.
But it’s not just the nice — and free — accommodation: None of these museum heads pay income tax on the value of this housing, which combined would rent for about $400,000 a year."
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Seems there is a tax loophole for university presidents and other cultural poobahs who are required to live on "business premises," meaning university or museum owned housing. It is major league perk. Not only do they get free housing--they don't even have to pay taxes on what is obviously a huge part of their pay package.
Peak Food: Can Another Green Revolution Save Us? By Nicholas C. Arguimbau
Peak Food: Can Another Green Revolution Save Us? By Nicholas C. Arguimbau
Great summary of the situation. The Green Revolution prevented the global famines that Paul Erlich predicted in The Population Bomb. But now China, India, Pakistan, Mexico, and many other nations are running out of water to grow those thirsty super grains.
Great summary of the situation. The Green Revolution prevented the global famines that Paul Erlich predicted in The Population Bomb. But now China, India, Pakistan, Mexico, and many other nations are running out of water to grow those thirsty super grains.
Tuesday, August 10, 2010
The Muni-Bond Debt Bomb by Steven Malanga, City Journal Summer 2010
The Muni-Bond Debt Bomb by Steven Malanga, City Journal Summer 2010: "Rick Bookstaber, a senior policy advisor to the Securities and Exchange Commission, shook the market recently by observing that it has all the characteristics in place for a crisis that might unfold like the home-foreclosure mess: a few municipalities could declare bankruptcy, decline to honor their debts, and unleash “a widespread cascade in defaults.”"
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There are always predictions of financial Armageddon. The scary thing now is that the people who are saying these things aren't regulars on the Art Bell show. They are reputable professionals who aren't peddling books or trying to sell you gold.
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There are always predictions of financial Armageddon. The scary thing now is that the people who are saying these things aren't regulars on the Art Bell show. They are reputable professionals who aren't peddling books or trying to sell you gold.
Forecast at Florida condo: continued indoor rain
Leaky Roofs Plague Palm Beach Gardens Residents
Residents Cite HOA Inaction For Roofing Problems
PALM BEACH GARDENS, Fla. -- After all of this weekend's rain, a leaky roof and a lackluster response has started a major fight with a local homeowner's association.Homeowners in one Palm Beach Gardens neighborhood said their roofs have not been up to code for a long time. They said they're getting nowhere fast with their homeowner's association, and the recent rain is making it worse.Monday, August 09, 2010
The Golden State’s War on Itself | Newgeography.com
The Golden State’s War on Itself | Newgeography.com: "What went so wrong? The answer lies in a change in the nature of progressive politics in California. During the second half of the twentieth century, the state shifted from an older progressivism, which emphasized infrastructure investment and business growth, to a newer version, which views the private sector much the way the Huns viewed a city—as something to be sacked and plundered."
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Harsh words--but the fact is that California is not the only state that is being destroyed by its own political class.
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Harsh words--but the fact is that California is not the only state that is being destroyed by its own political class.
Sunday, August 08, 2010
Weak economy boosts early Social Security retirements
Forced to retire, some take Social Security early
It is one of the most striking fallouts from the bad economy: Social Security is facing its first-ever shortfall this year as a wave of people like Skidmore opt to collect payments before their full retirement age. Adding to the strain on the trust are reduced tax collections sapped by the country's historic unemployment — still at 9.5 percent.
More people filed for Social Security in 2009 — 2.74 million — than any year in history, and there was a marked increase in the number receiving reduced benefits because they filed ahead of their full retirement age. The increase came as the full Social Security retirement age rose last year from 65 to 66.
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The trend of people going on early Social Security retirement at age 62 is likely throwing a wrench in the projections of the Social Security Fund actuaries and adding further stress to a system that is already expected to have trouble paying retirement benefits for a tidal wave of Baby Boomers leaving the workforce at the customary age of 66. I imagine someone is already planning a second Woodstock in the summer of 2014 for Boomers forced to take early retirement in what could end up as the lost economic decade.
Saturday, August 07, 2010
Governments Go to Extremes as the Downturn Wears On
Governments Go to Extremes as the Downturn Wears On
Plenty of businesses and governments furloughed workers this year, but Hawaii went further — it furloughed its schoolchildren. Public schools across the state closed on 17 Fridays during the past school year to save money, giving students the shortest academic year in the nation and sending working parents scrambling to find care for them.
The New York Times reports on the continuing pain of penury wracking local government. And when local government catches a cold, it can seem like the flu in Privatopia where the tax base is much smaller and there is no help from bond revenues and federal government bailouts. One plus: HOAs don't have to worry about meeting employee pension obligations.
Plenty of businesses and governments furloughed workers this year, but Hawaii went further — it furloughed its schoolchildren. Public schools across the state closed on 17 Fridays during the past school year to save money, giving students the shortest academic year in the nation and sending working parents scrambling to find care for them.
Many transit systems have cut service to make ends meet, but Clayton County, Ga., a suburb of Atlanta, decided to cut all the way, and shut down its entire public bus system. Its last buses ran on March 31, stranding 8,400 daily riders.
Even public safety has not been immune to the budget ax. In Colorado Springs, the downturn will be remembered, quite literally, as a dark age: the city switched off a third of its 24,512 streetlights to save money on electricity, while trimming its police force and auctioning off its police helicopters.
Faced with the steepest and longest decline in tax collections on record, state, county and city governments have resorted to major life-changing cuts in core services like education, transportation and public safety that, not too long ago, would have been unthinkable. And services in many areas could get worse before they get better.
--------The New York Times reports on the continuing pain of penury wracking local government. And when local government catches a cold, it can seem like the flu in Privatopia where the tax base is much smaller and there is no help from bond revenues and federal government bailouts. One plus: HOAs don't have to worry about meeting employee pension obligations.
US national park faces sale | World news | The Guardian
US national park faces sale | World news | The Guardian
Wyoming Governor Dave Freudenthal says he will sell off a 1360 acre piece of Grand Teton National Park at auction, for an estimated $125 million, unless the Obama administration ponies up money to pay for public education.
Wyoming Governor Dave Freudenthal says he will sell off a 1360 acre piece of Grand Teton National Park at auction, for an estimated $125 million, unless the Obama administration ponies up money to pay for public education.
Friday, August 06, 2010
Another HOA flag flap -- film at 11
Family fights to keep flags
A family in a northwest San Antonio neighborhood is fighting to keep their flags against the will of their home owners' association.
A family in a northwest San Antonio neighborhood is fighting to keep their flags against the will of their home owners' association.
Fannie Mae: Home Prices To Decline Into Next Year
Fannie Mae: Home Prices To Decline Into Next Year: "Home prices will decline into next year, Fannie Mae said Thursday, reversing earlier projections that the housing market would stabilize this year.
Former Federal Reserve Chairman Alan Greenspan said Sunday on NBC's 'Meet the Press' that a so-called double-dip recession was possible 'if home prices go down.'"
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The administration's housing policies have failed. Period. End of debate.
And that means the economy is not in a recovery, no matter what anybody says. I don't see how there can be an economic recovery worthy of the name unless and until the housing market turns around.
Watch for the administration to do the magic "disappearing mortgage principal" thing in order to buy some votes for the November election. But it is all smoke and mirrors and making us pay other people's mortgages in addition to our own.
What it comes down to is this: the Obama administration and the congressional Democrats who are running this nation have no idea what to do about the housing market and that means they can't fix the economy. Maybe nobody can, but that hasn't been proven yet. We do know for sure that this crop of Democratic leaders can't. I'm no fan of the Republicans these days, but where else are the voters supposed to turn?
Former Federal Reserve Chairman Alan Greenspan said Sunday on NBC's 'Meet the Press' that a so-called double-dip recession was possible 'if home prices go down.'"
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The administration's housing policies have failed. Period. End of debate.
And that means the economy is not in a recovery, no matter what anybody says. I don't see how there can be an economic recovery worthy of the name unless and until the housing market turns around.
Watch for the administration to do the magic "disappearing mortgage principal" thing in order to buy some votes for the November election. But it is all smoke and mirrors and making us pay other people's mortgages in addition to our own.
What it comes down to is this: the Obama administration and the congressional Democrats who are running this nation have no idea what to do about the housing market and that means they can't fix the economy. Maybe nobody can, but that hasn't been proven yet. We do know for sure that this crop of Democratic leaders can't. I'm no fan of the Republicans these days, but where else are the voters supposed to turn?
Scientists find sea sponges share human genes
Scientists find sea sponges share human genes
That explains a lot of what I saw in the Gurnee Mills shopping mall yesterday.
That explains a lot of what I saw in the Gurnee Mills shopping mall yesterday.
Megan McCardle: Housing Insanity
Housing Insanity - Business - The Atlantic: "If you want to know why us libertarian types are skeptical of the government's ability to prevent housing market bubbles, well, I give you Exhibit 9,824: the government's new $1000 down housing program.
No, really. The government has apparently decided, in its infinite wisdom, that what the American economy really needs is more homebuyers with no equity."
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Incredible.
No, really. The government has apparently decided, in its infinite wisdom, that what the American economy really needs is more homebuyers with no equity."
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Incredible.
Camden Closing Library System
Camden, NJ, Closing Library System
And that includes getting rid of all the books, which would be a fire hazard in the buildings they are going to close.
And that includes getting rid of all the books, which would be a fire hazard in the buildings they are going to close.
Thursday, August 05, 2010
Friday's Jobs Report: Outlook Darkens for Economy, Obama - Yahoo! Finance
Friday's Jobs Report: Outlook Darkens for Economy, Obama - Yahoo! Finance
Net of inventory adjustments, the economy demand for goods and services
is growing at only 1.3 percent a year.
In the second quarter, consumer spending; investment in new structures,
equipment and software; and government purchases added 4.1 percent to
demand-but as imports grew much more rapidly than exports, the trade
deficit tapped off 2.8 percent.
The difference, 1.3 percent, is annual growth in demand for U.S.-made
goods and services. That has been the pace since recovery began in July
2009.
Businesses can accommodate up to 2 percent growth in demand by improving productivity and not adding workers. Unless the rapid growth in imports can be curbed, the U.S. economy is headed for very slow growth and rising unemployment.
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A driver of deflation is excess capacity in the economy and too few dollars
changing hands too slowly to absorb it. The tepid 1.3 percent rate of growth in demand shows the economy is at risk for deflation at worst and slowly slogging along for several years at best -- the price of recovery from the horrible hangover from the mortgage industry/Wall Street blowout of the 2000's.
Net of inventory adjustments, the economy demand for goods and services
is growing at only 1.3 percent a year.
In the second quarter, consumer spending; investment in new structures,
equipment and software; and government purchases added 4.1 percent to
demand-but as imports grew much more rapidly than exports, the trade
deficit tapped off 2.8 percent.
The difference, 1.3 percent, is annual growth in demand for U.S.-made
goods and services. That has been the pace since recovery began in July
2009.
Businesses can accommodate up to 2 percent growth in demand by improving productivity and not adding workers. Unless the rapid growth in imports can be curbed, the U.S. economy is headed for very slow growth and rising unemployment.
---------
A driver of deflation is excess capacity in the economy and too few dollars
changing hands too slowly to absorb it. The tepid 1.3 percent rate of growth in demand shows the economy is at risk for deflation at worst and slowly slogging along for several years at best -- the price of recovery from the horrible hangover from the mortgage industry/Wall Street blowout of the 2000's.
City bond rating downgraded :: CHICAGO SUN-TIMES :: City Hall
City bond rating downgraded :: CHICAGO SUN-TIMES :: City Hall
It's only the third largest city in the US. Nothing to see here. Move along.
It's only the third largest city in the US. Nothing to see here. Move along.
An August Surprise from Obama? | Analysis & Opinion |
An August Surprise from Obama? | Analysis & Opinion |
Speculation based on rumors that Obama is going to order Fannie and Freddie to forgive a ton of mortgage debt for people who are underwater on their mortgages. This would be aimed at influencing the election in November, of course. The date to watch is August 17, says the author of the post (he's Reuters' Money and Politics columnist, James Pethokoukis). The Democrats are absolutely desperate so this would not surprise me, and besides--Obama learned his politics in Chicago, and that's the way government works here.
Speculation based on rumors that Obama is going to order Fannie and Freddie to forgive a ton of mortgage debt for people who are underwater on their mortgages. This would be aimed at influencing the election in November, of course. The date to watch is August 17, says the author of the post (he's Reuters' Money and Politics columnist, James Pethokoukis). The Democrats are absolutely desperate so this would not surprise me, and besides--Obama learned his politics in Chicago, and that's the way government works here.
California consumers carry massive debt loads into bankruptcy | California Watch
California consumers carry massive debt loads into bankruptcy | California Watch
Fred Pilot says that if you look at this map you will see where the heaviest debt loads are: Privatopia. All the Sun Belt states where people have been buying into gated communities and condos.
Fred Pilot says that if you look at this map you will see where the heaviest debt loads are: Privatopia. All the Sun Belt states where people have been buying into gated communities and condos.
Wednesday, August 04, 2010
Study: Cut in delta water use needed for fish
Study: Cut in delta water use needed for fish: "The amount of water pumped out of the Sacramento-San Joaquin River Delta would have to be cut in half if vulnerable fish populations are going to be preserved for future generations, a state report declared Tuesday."
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The Central Valley of California, one of the nation's most productive agricultural areas, is covered with brown fields because a judge in the delta smelt case ordered the water flow from the delta reduced. That massive litigation continues. Meanwhile, here is the state water board saying it is necessary to cut the flow by half, permanently.
I think water wars are going to be front and center in US and international politics for a long time, and what is happening right now in California is part of the front line.
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The Central Valley of California, one of the nation's most productive agricultural areas, is covered with brown fields because a judge in the delta smelt case ordered the water flow from the delta reduced. That massive litigation continues. Meanwhile, here is the state water board saying it is necessary to cut the flow by half, permanently.
I think water wars are going to be front and center in US and international politics for a long time, and what is happening right now in California is part of the front line.
Tuesday, August 03, 2010
Record number of Illinois families on food stamps - chicagotribune.com
Record number of Illinois families on food stamps - chicagotribune.com: "CHAMPAIGN, Ill. — More Illinois families are receiving food stamps than ever before as a result of the deepest recession in decades, state officials said Monday.
More than 780,000 Illinois families got food stamps in June, up 11.9 percent from a year earlier, the Illinois Department of Human Services reported. Nationally, 40 million Americans -- 18.7 million households -- use food stamps."
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And because the state legislature hasn't even started to get realistic about cutting the budget, the fact is that this state's economy will continue to get worse for at least another two years.
More than 780,000 Illinois families got food stamps in June, up 11.9 percent from a year earlier, the Illinois Department of Human Services reported. Nationally, 40 million Americans -- 18.7 million households -- use food stamps."
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And because the state legislature hasn't even started to get realistic about cutting the budget, the fact is that this state's economy will continue to get worse for at least another two years.
Interactive map of unemployment since 2007
multimediafinal
This is why the Democrats are panic stricken about the November elections.
This is why the Democrats are panic stricken about the November elections.
Monday, August 02, 2010
Forget What We Said About Inflation, Say Big Investors -- It's DEFLATION You Should Be Worried About
Forget What We Said About Inflation, Say Big Investors -- It's DEFLATION You Should Be Worried About
Over the past six months, the smart money has gone from trying to cash in on the coming hyper-inflation the US will suffer as the Fed desperately tries to re-inflate the economy and destroys the dollar in the process...to reversing course and trying to cash in on a coming deflation.
For example, here's PIMCO guru Bill Gross in the Wall Street Journal:
"Deflation isn't just a topic of intellectual curiosity, it's happening," says Mr. Gross, who runs the $239 billion mutual fund Pimco Total Return Fund, citing an annualized 0.1% decline over the past two years in the U.S. consumer-price index. "It's an uncertain world that's tipping toward deflation."
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This article shows sophisticated investors with no experience with deflation and who worried about inflation their entire lives are having trouble wrapping their minds around the notion that prices can also enter a downward as well as an upward spiral. Federal Reserve policymakers have also been grappling with the depressing prospect of deflation. Their challenge is like that of pilot trying to precisely determine how much throttle to give a plane on the verge of stalling -- which is where the economy is now. Too little and the aircraft stalls and begins falling to the ground. Too much throttle and the engine races out of control, overheating the economy and setting the stage for another crash.
Over the past six months, the smart money has gone from trying to cash in on the coming hyper-inflation the US will suffer as the Fed desperately tries to re-inflate the economy and destroys the dollar in the process...to reversing course and trying to cash in on a coming deflation.
For example, here's PIMCO guru Bill Gross in the Wall Street Journal:
"Deflation isn't just a topic of intellectual curiosity, it's happening," says Mr. Gross, who runs the $239 billion mutual fund Pimco Total Return Fund, citing an annualized 0.1% decline over the past two years in the U.S. consumer-price index. "It's an uncertain world that's tipping toward deflation."
-----
This article shows sophisticated investors with no experience with deflation and who worried about inflation their entire lives are having trouble wrapping their minds around the notion that prices can also enter a downward as well as an upward spiral. Federal Reserve policymakers have also been grappling with the depressing prospect of deflation. Their challenge is like that of pilot trying to precisely determine how much throttle to give a plane on the verge of stalling -- which is where the economy is now. Too little and the aircraft stalls and begins falling to the ground. Too much throttle and the engine races out of control, overheating the economy and setting the stage for another crash.
AP analysis: US economic stress heads back up
AP analysis: US economic stress heads back up
After easing for four months, the nation's economic stress worsened in June because more bankruptcies in the West and foreclosures outside the Sun Belt outweighed lower unemployment, according to The Associated Press' monthly analysis of conditions around the country.
After easing for four months, the nation's economic stress worsened in June because more bankruptcies in the West and foreclosures outside the Sun Belt outweighed lower unemployment, according to The Associated Press' monthly analysis of conditions around the country.
The setback halted a drop in month-to-month stress readings that had begun in February. In May, economic stress had declined from the previous month in 33 states. And in April, stress fell in every state but two.
But in June, bankruptcy rates rose in Utah, California, Colorado and Idaho. Higher foreclosures spread to the Midwest, particularly Illinois. This occurred even as foreclosures eased in states that have suffered most from the housing bust, such as Arizona, California, Florida and Nevada.
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It's an economically stressful summer in Privatopia -- the states where the misery index is highest.
A Camry or a Condo?
Condos that cost less than cars
The housing bust has taken down the national median home price by about 23% since 2007, according to the National Association of Realtors (NAR). But condo have fallen even further, down about 25%.
This tends to happen in a down real estate market. Condos end up going for about the same as a vehicle.
The housing bust has taken down the national median home price by about 23% since 2007, according to the National Association of Realtors (NAR). But condo have fallen even further, down about 25%.
In Sacramento, Calif., condo prices have fallen 59% from what they averaged in 2007, according to NAR. Miami condo prices have plunged 65%, and in Las Vegas they are off 66%.
Prices of individual units are down even more. One condo in Deerfield Beach, Fla., that sold for $115,000 five years ago now lists for $25,000. That's a drop of nearly 80%.
Much of these price drops can be attributed to over development during the boom. Much of that came in Sand State markets such as Las Vegas Miami and Phoenix, where prices for all properties are have fallen precipitously.
-----------This tends to happen in a down real estate market. Condos end up going for about the same as a vehicle.
Sunday, August 01, 2010
Have jobs become a leading indicator?
Have jobs become a leading indicator?
"Employment typically lags the business cycle, but that doesn't have to be the case," said Karen Dynan, a former Federal Reserve economist now at the Brookings Institution. "The loss of momentum in labor markets in recent months was one of the signals that we weren't entering a self-sustaining recovery."
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Employment is classically a lagging indicator of improved economic activity. But it can also be a leading indicator of continued economic weakness and a W shaped recovery as this article posits.
"Employment typically lags the business cycle, but that doesn't have to be the case," said Karen Dynan, a former Federal Reserve economist now at the Brookings Institution. "The loss of momentum in labor markets in recent months was one of the signals that we weren't entering a self-sustaining recovery."
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Employment is classically a lagging indicator of improved economic activity. But it can also be a leading indicator of continued economic weakness and a W shaped recovery as this article posits.
Layoffs to gut East St. Louis police force
Layoffs to gut East St. Louis police forceGang activity. Drug dealing. Cold-blooded killing. Tracy worries that a decision to shrink the police force by almost 30 percent will bring more of everything.
The pastor voiced his concern on Friday at a raucous special City Council meeting at which East St. Louis Mayor Alvin Parks announced that the city will layoff 37 employees, including 19 of its 62 police officers, 11 firefighters, four public works employees, and three administrators. The layoffs take effect on Sunday.
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East St. Louis is a high-crime city to begin with. laying off 1/3 of the police force is the last thing they need. I notice they only got rid of three administrators.
The pastor voiced his concern on Friday at a raucous special City Council meeting at which East St. Louis Mayor Alvin Parks announced that the city will layoff 37 employees, including 19 of its 62 police officers, 11 firefighters, four public works employees, and three administrators. The layoffs take effect on Sunday.
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East St. Louis is a high-crime city to begin with. laying off 1/3 of the police force is the last thing they need. I notice they only got rid of three administrators.
So long, middle class - NYPOST.com
So long, middle class - NYPOST.com: "Compared to the rest of the world, American workers are extremely expensive, and the government keeps passing rules, regulations and taxes that make it even more difficult to conduct business here. What has developed is a situation where the people at the top are doing quite well, while the average family barely gets by. Entitlement programs are expanding at unprecedented rates, but it is the people in the middle — who shoulder the costs of these programs, while their salaries stagnate — who are being squeezed in a sea of depressing statistics."
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No kidding--and I get the feeling that a whole lot of these middle class folks understand that they have a big bulls-eye on their chest.
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No kidding--and I get the feeling that a whole lot of these middle class folks understand that they have a big bulls-eye on their chest.
New playground rules: No lone adults - Miami Beach - MiamiHerald.com
New playground rules: No lone adults - Miami Beach - MiamiHerald.com: "Beginning Sunday, anyone 18 or older could face a fine -- or at least get shooed away by police -- if found in a Miami Beach playground without a child.
Intended to protect children from predatory adults, the new rule is part of a national trend -- a municipal corollary to kids-required policies for grown-ups at children's museums."
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Interesting--the article goes on the say that New York City and San Francisco have laws like this already. Hard to see why San Francisco would bother. There are hardly any children there to protect. It's basically just the homeless and the yuppies and their dogs. All the kids seem to be in the Exploratorium, but I saw plenty of "unaccompanied" adults there...very suspicious.
Intended to protect children from predatory adults, the new rule is part of a national trend -- a municipal corollary to kids-required policies for grown-ups at children's museums."
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Interesting--the article goes on the say that New York City and San Francisco have laws like this already. Hard to see why San Francisco would bother. There are hardly any children there to protect. It's basically just the homeless and the yuppies and their dogs. All the kids seem to be in the Exploratorium, but I saw plenty of "unaccompanied" adults there...very suspicious.
Saturday, July 31, 2010
Upscale community may hire coyote trapper | Weird news stories, bizarre news, strange but true stories: Bizarre Florida | tampabay.com & St. Petersburg Times
Upscale community may hire coyote trapper | Weird news stories, bizarre news, strange but true stories: Bizarre Florida | tampabay.com & St. Petersburg Times
Gator trappers do a brisk business in Florida, and now a homeowners association in Parkland is contemplating hiring a coyote trapper, SunSentinel.com reports. Area residents say coyotes are slaughtering their cats, sheep and a dog. (We’ll assume the sheep are not in the gated, upscale CypressHead community.)
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A few years ago, an HOA here in Lake County, IL, hired some meatball who tramped around with a .44 magnum trying to find the mountain lion they were sure was lurking nearby. He never found anything but he did get his name in the paper. Other HOAs have hired people to shoot geese and deer. If you buy a house near Mother Nature, you get animals. Personally, I like the fact that we have coyotes, deer, foxes, possums, raccoons, ground squirrels, herons, red-tailed hawks, owls, and snapping turtles in and around our back yard. I never got this perspective that you can just eradicate any animal species that displeases you.
Thanks to Fred Pilot for the link.
Gator trappers do a brisk business in Florida, and now a homeowners association in Parkland is contemplating hiring a coyote trapper, SunSentinel.com reports. Area residents say coyotes are slaughtering their cats, sheep and a dog. (We’ll assume the sheep are not in the gated, upscale CypressHead community.)
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A few years ago, an HOA here in Lake County, IL, hired some meatball who tramped around with a .44 magnum trying to find the mountain lion they were sure was lurking nearby. He never found anything but he did get his name in the paper. Other HOAs have hired people to shoot geese and deer. If you buy a house near Mother Nature, you get animals. Personally, I like the fact that we have coyotes, deer, foxes, possums, raccoons, ground squirrels, herons, red-tailed hawks, owls, and snapping turtles in and around our back yard. I never got this perspective that you can just eradicate any animal species that displeases you.
Thanks to Fred Pilot for the link.
Regulators close banks in Fla., Ga., Ore., Wash. - Business - msnbc.com
Regulators close banks in Fla., Ga., Ore., Wash. - Business - msnbc.com
Regulators on Friday shut banks in Florida, Georgia, Oregon and Washington, lifting to 108 the number of U.S. banks to fail this year as the industry has struggled to cope with mounting loan defaults and recession.
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And so the recovery continues.
Regulators on Friday shut banks in Florida, Georgia, Oregon and Washington, lifting to 108 the number of U.S. banks to fail this year as the industry has struggled to cope with mounting loan defaults and recession.
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And so the recovery continues.
Texas soldier gets home back after foreclosure | texas, dallas, foreclosure - Online Extras - Brownsville Herald
Texas soldier gets home back after foreclosure | texas, dallas, foreclosure - Online Extras - Brownsville HeraldDALLAS (AP) — The Frisco soldier and his family who lost their home to foreclosure while he was serving in Iraq will get the house back.
Army National Guard Capt. Michael Clauer and his wife, May, lost their $315,000 southwest Frisco home in May 2008 after falling behind on Heritage Lakes Homeowners Association dues.
The Clauers sued the association and subsequent buyers in federal court. A court-ordered settlement conference led to an agreement this week that gives the house back to the Clauers.
A gag order prevents those involved from sharing details.
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Gag order? The episode is enough to make anybody gag. And the Texas state legislature is stirring itself into possible action, so stay tuned. But the state-by-state struggle to get simple protections for owners against their HOAs just goes on and on.
Thanks to Fred Pilot for the link.
Army National Guard Capt. Michael Clauer and his wife, May, lost their $315,000 southwest Frisco home in May 2008 after falling behind on Heritage Lakes Homeowners Association dues.
The Clauers sued the association and subsequent buyers in federal court. A court-ordered settlement conference led to an agreement this week that gives the house back to the Clauers.
A gag order prevents those involved from sharing details.
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Gag order? The episode is enough to make anybody gag. And the Texas state legislature is stirring itself into possible action, so stay tuned. But the state-by-state struggle to get simple protections for owners against their HOAs just goes on and on.
Thanks to Fred Pilot for the link.
Friday, July 30, 2010
States going deeper into debt - Jul. 30, 2010
States going deeper into debt - Jul. 30, 2010
NEW YORK (CNNMoney.com) -- The states are broke, and like many consumers, they're borrowing big time to get out of their fiscal binds.
The amount of debt that states are carrying spiked 10.3% last year to $460 billion, according to Moody's Investors Service. The debt is paid for through taxes and fees, making residents ultimately responsible.
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Honestly, it amazes me that this situation is getting so little attention. While the press covers Chelsea Clinton's wedding plans, half the states are becoming insolvent.
NEW YORK (CNNMoney.com) -- The states are broke, and like many consumers, they're borrowing big time to get out of their fiscal binds.
The amount of debt that states are carrying spiked 10.3% last year to $460 billion, according to Moody's Investors Service. The debt is paid for through taxes and fees, making residents ultimately responsible.
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Honestly, it amazes me that this situation is getting so little attention. While the press covers Chelsea Clinton's wedding plans, half the states are becoming insolvent.
Congratulations to Marjorie Murray and the Center for California Homeowner Association Law!
Evan: we want to share this announcement with you and with the readers. We look forward to seeing it posted on your blog and your website! We see small claims court and unbundled legal services as crucial tools for achieving justice for homeowners in the courts.
Please do visit our website: we have LOTS of new material on it – including a video of our small claims court workshop.
Regards –
Marjorie Murray, President
Center for California Homeowner Association Law
Oakland, California
www.calhomelaw.org
510.272.9826
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The Center for California Homeowner Association Law (CCHAL) announced today that it has been nominated for the Louis M. Brown award given annually by the American Bar Association.
This national award honors advocates across the country, whose innovative programs improve access to legal services for the working poor and for moderate income people, that is: people who may not qualify for legal aid or pro bono legal services, yet do not have sufficient resources to pay for full-service attorneys.
Announcing the nominees, the Bar Association said, “The sole unifying element of the Brown Award nominees is their dedication to improving access to legal services for those who cannot otherwise afford it and thereby advancing access to justice for all.”
The Center has campaigned for better access to justice by making it possible for homeowners to bring certain issues into small claims court and for training homeowners in small claims court procedures. The Center is also training attorneys to provide “unbundled” or limited scope services. "Limited scope" holds promise as a more affordable way to deliver legal services to the working poor, to seniors, and to others of modest means.
A California superior court judge with in-depth knowledge of the Center’s work, nominated CCHAL for this national award.
Some of the small claims suits filed by homeowners are on the CCHAL website. [Keyword: small claims.] The CCHAL training video on small claims is also on the website. Trainers are two attorneys who are experts in preparing small claims suits. A DVD on preparing a small claims action is also available by mail from CCHAL.
CCHAL NewsBrief
July 20, 2010
Please do visit our website: we have LOTS of new material on it – including a video of our small claims court workshop.
Regards –
Marjorie Murray, President
Center for California Homeowner Association Law
Oakland, California
www.calhomelaw.org
510.272.9826
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The Center for California Homeowner Association Law (CCHAL) announced today that it has been nominated for the Louis M. Brown award given annually by the American Bar Association.
This national award honors advocates across the country, whose innovative programs improve access to legal services for the working poor and for moderate income people, that is: people who may not qualify for legal aid or pro bono legal services, yet do not have sufficient resources to pay for full-service attorneys.
Announcing the nominees, the Bar Association said, “The sole unifying element of the Brown Award nominees is their dedication to improving access to legal services for those who cannot otherwise afford it and thereby advancing access to justice for all.”
The Center has campaigned for better access to justice by making it possible for homeowners to bring certain issues into small claims court and for training homeowners in small claims court procedures. The Center is also training attorneys to provide “unbundled” or limited scope services. "Limited scope" holds promise as a more affordable way to deliver legal services to the working poor, to seniors, and to others of modest means.
A California superior court judge with in-depth knowledge of the Center’s work, nominated CCHAL for this national award.
Some of the small claims suits filed by homeowners are on the CCHAL website. [Keyword: small claims.] The CCHAL training video on small claims is also on the website. Trainers are two attorneys who are experts in preparing small claims suits. A DVD on preparing a small claims action is also available by mail from CCHAL.
CCHAL NewsBrief
July 20, 2010
Few in U.S. move for new jobs, fueling fear the economy might get stuck, too
Few in U.S. move for new jobs, fueling fear the economy might get stuck, too: "Labor mobility has nearly ground to a halt in the past two years, and policymakers are increasingly worried that the slowdown is not just a symptom of the nation's economic struggles but also a barrier to overcoming them.
With many people locked in homes by underwater mortgages, only 1.6 percent of Americans moved between states in a one-year period that ended in March 2009 -- a labor stagnation not seen in half a century."
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Thanks to Shu Bartholomew for this link. People aren't buying homes because they can't sell the one they have. How can they move to another city without a job to go to, and without selling their home?
With many people locked in homes by underwater mortgages, only 1.6 percent of Americans moved between states in a one-year period that ended in March 2009 -- a labor stagnation not seen in half a century."
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Thanks to Shu Bartholomew for this link. People aren't buying homes because they can't sell the one they have. How can they move to another city without a job to go to, and without selling their home?
Thursday, July 29, 2010
AP survey: A bleaker outlook for economy into 2011
AP survey: Economists turn more pessimistic for coming year, but most say rebound will endure
Economic growth the rest of this year and early next year will be weak -- less than 3 percent. For the April-to-June quarter, economists pegged growth at 2.8 percent. That's far below the 3.7 percent pace predicted just three months ago.-- The unemployment rate will be no lower at the end of the year than it is now -- 9.5 percent. A majority think it will be 2015 or later before the rate falls to a historically normal 5 percent.
-- State budget shortfalls pose a "significant" or "severe" risk to the national economy. The loss of tax revenue has forced state and local governments to cut services and lay off workers.
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Memo to Prof. McKenzie: The economy is indeed post recessionary based on the growth figures above. But it's no great shakes as you are noting from the trailing indicators including unemployment and state budget shortfalls.
President of St. Louis Federal Reserve concerned by prospect of deflation
WASHINGTON (AP) -- Debate is intensifying at the Federal Reserve over how best to cope with a weakening recovery, with momentum growing for a concrete plan to prevent a backslide into recession.
That came into view Thursday as James Bullard, president of the Federal Reserve Bank of St. Louis, offered a specific proposal. He said the Fed should revive a crisis-era program to buy government debt if the country seems headed toward a bout with deflation.
Bullard, a voting member this year on the Fed's main policy-setting committee, worries that the United States could tip into a Japanese-like bout of deflation if the economy weakens. Deflation is a widespread and prolonged drop in prices of goods, values of homes and stocks, and in wages.
For now, Bullard thinks the deflation risk is still low. But the danger could grow. Buying government debt would energize the economy and nip deflationary forces.
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I believe deflation is a very real and present danger to the economy given the paralyzing gut shot it has taken over the past two and a half years that has sucked out all the money and consequently left a large amount of slack in the economy. All that excess capacity of goods and services can't be bought up because consumers and small businesses don't have a lot of dollars in their pockets to spend on them. They become devalued as a result.
It will be difficult for the nation and its economic policymakers to cope with deflation after four decades of being geared to counteract the threat of inflation starting in the 1970s.
That came into view Thursday as James Bullard, president of the Federal Reserve Bank of St. Louis, offered a specific proposal. He said the Fed should revive a crisis-era program to buy government debt if the country seems headed toward a bout with deflation.
Bullard, a voting member this year on the Fed's main policy-setting committee, worries that the United States could tip into a Japanese-like bout of deflation if the economy weakens. Deflation is a widespread and prolonged drop in prices of goods, values of homes and stocks, and in wages.
For now, Bullard thinks the deflation risk is still low. But the danger could grow. Buying government debt would energize the economy and nip deflationary forces.
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I believe deflation is a very real and present danger to the economy given the paralyzing gut shot it has taken over the past two and a half years that has sucked out all the money and consequently left a large amount of slack in the economy. All that excess capacity of goods and services can't be bought up because consumers and small businesses don't have a lot of dollars in their pockets to spend on them. They become devalued as a result.
It will be difficult for the nation and its economic policymakers to cope with deflation after four decades of being geared to counteract the threat of inflation starting in the 1970s.
Foreclosures up in 75 percent of top U.S. metro areas | Reuters
Foreclosures up in 75 percent of top U.S. metro areas | Reuters
Foreclosures rose in 3 of every four large U.S. metro areas in this year's first half, likely ruling out sustained home price gains until 2013, real estate data company RealtyTrac said on Thursday.
Unemployment was the main culprit driving foreclosure actions on more than 1.6 million properties, the company said.
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I guess all of us will just have to stay put for another three or four years...
Foreclosures rose in 3 of every four large U.S. metro areas in this year's first half, likely ruling out sustained home price gains until 2013, real estate data company RealtyTrac said on Thursday.
Unemployment was the main culprit driving foreclosure actions on more than 1.6 million properties, the company said.
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I guess all of us will just have to stay put for another three or four years...
Books - Mission Creep - Administrative Glut - NYTimes.com
Books - Mission Creep - Administrative Glut - NYTimes.com
In 1976, for every 1,000 full-time students, there were 42 professional administrative staff members, according to the National Center for Education Statistics. By 2008, the most recent year available, there were 84. At the same time, the number of full-time faculty members for every 1,000 students has declined, from 65 to 55, due to the greater use of adjuncts and teaching assistants.
While fewer undergraduates are being taught by full-time professors, the number of administrators keeps growing.
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So say political scientist Andrew Hacker and Claudia Dreifus. And they are right.
In 1976, for every 1,000 full-time students, there were 42 professional administrative staff members, according to the National Center for Education Statistics. By 2008, the most recent year available, there were 84. At the same time, the number of full-time faculty members for every 1,000 students has declined, from 65 to 55, due to the greater use of adjuncts and teaching assistants.
While fewer undergraduates are being taught by full-time professors, the number of administrators keeps growing.
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So say political scientist Andrew Hacker and Claudia Dreifus. And they are right.
Tow fees: Chicago suburbs cash in on towing - chicagotribune.com
Tow fees: Chicago suburbs cash in on towing - chicagotribune.com
Great expose by the Chicago Tribune that blows the lid off the auto impound racket. Municipalities have laws that allow the police to impound any vehicle involved in any way in any misdemeanor or felony, or some specified list of crimes, even something as trivial as an expired license or not having proof of insurance. Doesn't matter who was driving, ever if the owner was at home sleeping when it happened. The car gets impounded and then you have to pay hundreds of dollars to get it back. If you don't pay, you lose the car for good.
This is another of those municipal money grabs, like red light cameras and mandating that all new construction has to be in CIDs. There is also a map that shows the entire Chicagoland area with the details of all the various laws.
Great expose by the Chicago Tribune that blows the lid off the auto impound racket. Municipalities have laws that allow the police to impound any vehicle involved in any way in any misdemeanor or felony, or some specified list of crimes, even something as trivial as an expired license or not having proof of insurance. Doesn't matter who was driving, ever if the owner was at home sleeping when it happened. The car gets impounded and then you have to pay hundreds of dollars to get it back. If you don't pay, you lose the car for good.
This is another of those municipal money grabs, like red light cameras and mandating that all new construction has to be in CIDs. There is also a map that shows the entire Chicagoland area with the details of all the various laws.
Wednesday, July 28, 2010
Thanks to Fred Pilot and Shu Bartholomew
I can't thank Shu and Fred enough for keeping this blog lively while I was away on vacation with my children. I was able to check in from time to time, even though we were driving, camping, sight-seeing, and spending great times with family. The posts and comments were full of insights and what Bruce Lee used to call "emotional content." Great stuff.
I hope they will continue to post things here from time to time as the mood strikes them.
I hope they will continue to post things here from time to time as the mood strikes them.
BBC NEWS | Business | How can water be fairly distributed?
BBC NEWS | Business | How can water be fairly distributed? I think issues related to water will be at the center of politics at all levels in the decades to come.
Homeowners Association Spends $300,000 In Legal Fees Over A Pick-Up Truck - The Consumerist
Homeowners Association Spends $300,000 In Legal Fees Over A Pick-Up Truck - The ConsumeristA homeowner in Florida was awarded $187,000 in legal fees from a years-long court battle over the right to park a pick-up truck in his driveway. Now the homeowners association is going to have to pick up the tab for $300,000 in fees.
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How do you react to a story like this? Do you cheer for the owner who won? Or do you lament the fact that every owner in the development now has to pay for the folly of their governing board? In any event, thanks to Mystery Reader for sending it along.
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How do you react to a story like this? Do you cheer for the owner who won? Or do you lament the fact that every owner in the development now has to pay for the folly of their governing board? In any event, thanks to Mystery Reader for sending it along.
HOA Foreclosures; Necessary Tool or Extortion Racket? - Real Estate Channel Global News Center
HOA Foreclosures; Necessary Tool or Extortion Racket? - Real Estate Channel Global News CenterAlthough the HOA foreclosure crisis is clearly concentrated in the states of Texas, Florida, Arizona and California, the problem is not limited to these states. Some 33 states permit a nonjudicial HOA foreclosure. Unfortunately, we have no reliable statistics on how many of these HOA foreclosure filings actually lead to seizure and sale of the home. The CAI claims that the percentage is very small. Perhaps.
The fact that HOAs are able to file the foreclosure as a threat and then collect several thousand dollars in late fees, interest, fines and attorney fees for a delinquency that may total only $300-$600 has led critics to describe the situation as nothing more than a "shakedown racket."
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Thanks to Fred Pilot for the link to this detailed piece on HOA foreclosures.
The fact that HOAs are able to file the foreclosure as a threat and then collect several thousand dollars in late fees, interest, fines and attorney fees for a delinquency that may total only $300-$600 has led critics to describe the situation as nothing more than a "shakedown racket."
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Thanks to Fred Pilot for the link to this detailed piece on HOA foreclosures.
Nevada's Economic Misery May Be America's Future
Nevada's Economic Misery May Be America's FutureNevada has a greater concentration of economic misery than any other state. The state's unemployment rate, which in June edged up to 14.2 percent, has risen faster during the past year than it has anywhere else, and nearly six percent of all homes across the state's desert landscape received a foreclosure filing in the first six months of the year.
While the concentration of misery may be greater in Nevada, it was caused by the same unchecked housing bubble and unregulated financial gambling that brought pain to the rest of the country. If present trends go unchecked, Nevada is America's future.
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Now that's a scary thought.
I looked at President Obama's latest job approval numbers and maybe he ought to be scared, too. An average of seven different polls shows that he is currently at 45.7% approval and 49% disapproval. The election is just over three months away.
While the concentration of misery may be greater in Nevada, it was caused by the same unchecked housing bubble and unregulated financial gambling that brought pain to the rest of the country. If present trends go unchecked, Nevada is America's future.
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Now that's a scary thought.
I looked at President Obama's latest job approval numbers and maybe he ought to be scared, too. An average of seven different polls shows that he is currently at 45.7% approval and 49% disapproval. The election is just over three months away.
Tuesday, July 27, 2010
Home Vacancies Rise as U.S. Ownership Falls to Lowest in Decade - Bloomberg
Home Vacancies Rise as U.S. Ownership Falls to Lowest in Decade - BloombergAbout 18.9 million homes in the U.S. stood empty during the second quarter as surging foreclosures helped push ownership to the lowest level in a decade.
The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.6 million in the year-earlier quarter, the U.S. Census Bureau said in a report today. The ownership rate, meaning households that own their own residence, was 66.9 percent, the lowest since 1999.
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And yet people keep saying the economy is out of recession--with the housing market still in a trash can and government budgets gushing red ink from the federal government down to the local school districts.
The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.6 million in the year-earlier quarter, the U.S. Census Bureau said in a report today. The ownership rate, meaning households that own their own residence, was 66.9 percent, the lowest since 1999.
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And yet people keep saying the economy is out of recession--with the housing market still in a trash can and government budgets gushing red ink from the federal government down to the local school districts.
Monday, July 26, 2010
Homesteads and Other Sources of Tax Income - NYTimes.com
Homesteads and Other Sources of Tax Income - NYTimes.comAround the nation, cities and towns facing grim budget circumstances are grasping at unlikely — some would say desperate — means to bolster their shrunken tax bases. Like Beatrice, places like Dayton, Ohio, and Grafton, Ill., are giving away land for nominal fees or for nothing in the hope that it will boost the tax rolls and cut the lawn-mowing bills.
In Boca Raton, Fla., which faces a budget gap of more than $7 million, leaders are thinking about expanding the city’s size and annexing neighborhoods as an antidote. Sure, more residents would cost more in services, but officials hope the added tax revenues will more than make up for it.
And leaders in Manchester, N.H., and Concord, Mass., are taking an approach that might have once seemed politically unthinkable. They are re-examining whether their communities’ nonprofit organizations really deserve to be tax-free.
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Municipal promotion of CIDs is about money, and now cities are getting even more desperate. Soon they will be selling the right to rename the city. BP-Ville! Microsoftburg!
In Boca Raton, Fla., which faces a budget gap of more than $7 million, leaders are thinking about expanding the city’s size and annexing neighborhoods as an antidote. Sure, more residents would cost more in services, but officials hope the added tax revenues will more than make up for it.
And leaders in Manchester, N.H., and Concord, Mass., are taking an approach that might have once seemed politically unthinkable. They are re-examining whether their communities’ nonprofit organizations really deserve to be tax-free.
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Municipal promotion of CIDs is about money, and now cities are getting even more desperate. Soon they will be selling the right to rename the city. BP-Ville! Microsoftburg!
Sunday, July 25, 2010
The 18 States Facing The Most Brutal Austerity Cuts
The 18 States Facing The Most Brutal Austerity Cuts
They have Illinois as the third worst, exceeded only by New Jersey and Nevada. I hear the talking heads referring to the "recovery" we are supposedly in, and then I look at the condition of state and local governments and think, "no way, baby."
They have Illinois as the third worst, exceeded only by New Jersey and Nevada. I hear the talking heads referring to the "recovery" we are supposedly in, and then I look at the condition of state and local governments and think, "no way, baby."
Saturday, July 24, 2010
Professor returns from vacation to find office covered in aluminum foil
News from The Associated PressST. PETER, Minn. (AP) -- A science professor at Gustavus Adolphus College left for a week's vacation this summer and returned to a shiny office. Very shiny. Professor Scott Bur's students had covered his office in aluminum foil. Computer screen, chairs, the ceiling, the floor - all covered in foil. Books and pens were individually wrapped, so was the phone, a ball cap, a bottle and the coffee maker.
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Usually I stick to an aluminum foil hat. Keeps the mind control rays out, you know. Thanks to Fred Pilot for the link.
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Usually I stick to an aluminum foil hat. Keeps the mind control rays out, you know. Thanks to Fred Pilot for the link.
Amid Washington Heat Wave, Senator Talks 'Global Cooling'
His Al Gore igloo melted, Sen. Jim Inhofe Not Convinced of Warming Trend
Back in February, when Washington D.C. was buried under record-breaking snowfall and the capital was paralyzed, the nation's chief climate change doubter made much of a small igloo down the street from the Capitol building as he took to the Senate floor to refute climate change.
Back in February, when Washington D.C. was buried under record-breaking snowfall and the capital was paralyzed, the nation's chief climate change doubter made much of a small igloo down the street from the Capitol building as he took to the Senate floor to refute climate change.
Friday, July 23, 2010
With municipal pay like this, who needs Privatopia?
BELL, Calif. – Residents in this modest blue-collar Los Angeles suburb where one in six lives in poverty were angry: Their city manager was getting paid more than President Barack Obama and the police chief more than the commander of the nearly 13,000-member LAPD.
* * *
What a deal for counties and cities: not only do they shift the cost of providing services onto privately governed HOAs, they get volunteers to run them as well who are paid zip for doing so.
* * *
Their mayor and three of their four council members, people they see every day at the grocery store or church, approved the contracts, and put an obscure measure on the ballot that allowed council members to pay themselves any amount of money.
And they did: collecting between $90,000 and $100,000 a year as part-time officials.
- - -What a deal for counties and cities: not only do they shift the cost of providing services onto privately governed HOAs, they get volunteers to run them as well who are paid zip for doing so.
Real estate deflation hits most large California counties
Even though the state’s tax assessment system has the effect of muting the volatility of property assessments, 11 of the state’s 12 largest counties experienced a decline in their property tax roll this year.
* * *
Even the center of the Silicon Valley, Santa Clara County, was unable to avoid a shrinking roll.
“This is far worse than anyone had expected,” County Assessor Larry Stone said in the news release announcing the tax roll. The roll dropped 2.44%, by $7.4 billion.
“This county has not experienced such a devastating drop in property values since the Great Depression,” he said.
- - -
The data show this isn't a typical real estate correction cycle in which prices fall back to earth following a boom. They're actually falling into a deflationary hole in much of California, which along with Nevada has suffered some of the steepest declines in real estate value in the nation.
Economist and New York Times columnist Paul Krugman recently wrote that Federal Reserve Chairman Ben Bernanke, who studied the Depression of the 1930s for his doctoral dissertation, so fears deflation that he reportedly said he'd toss sacks of $100 bills out helicopters to prevent it. Memo to the Chairman: deploy a squadron of black helicopters bearing bags of Benjamins to California, starting in my ZIP Code.
Credit card contracts unreadable for most Americans
Credit card contracts unreadable for 80% of Americans"Credit card contracts and other such documents are written in dense prose for a reason: So that the customer will NOT be able to understand it," notes Roy Peter Clark, a national expert on writing and a senior scholar at the Poynter Institute in St. Petersburg, Fla. "I may be cynical, but I don't think their writing strategies are accidental, the collateral damage of a bureaucratic mindset. I think those writers know exactly what they are doing."
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Yes. And one might say the same thing about CC&Rs.
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Yes. And one might say the same thing about CC&Rs.
Alligator makes a meal of Tempe Town Lake fish | Phoenix News | Arizona News | azfamily.com | Phoenix News
Alligator makes a meal of Tempe Town Lake fish | Phoenix News | Arizona News | azfamily.com | Phoenix NewsTEMPE, Ariz. -- Since the dam at Tempe Town Lake broke and the lake drained earlier this week, one of the big questions has been what will happen to the fish left behind in the drying lake bed.
Well, let's just say an alligator named Tuesday is getting one heck of a meal.
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And he (or she) has a nice smile, no doubt as the result of a full tummy.
Well, let's just say an alligator named Tuesday is getting one heck of a meal.
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And he (or she) has a nice smile, no doubt as the result of a full tummy.
Ohio.com - Judge: Ohio man can't form own Indian reservation
Ohio.com - Judge: Ohio man can't form own Indian reservationLIMA, OHIO: An Ohio man who claimed that his American Indian ancestry makes him exempt from city nuisance laws has been ordered to clean up two homes that have fallen into disrepair.
A judge told William Bowersock on Thursday that he has 30 days to take care of the properties in Lima (LY'-muh).
The judge rejected Bowersock's argument that he had seceded from the local government and formed his own Indian reservation, thereby making him exempt from the city's property code.
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Obviously he should have formed a one-man HOA instead.
A judge told William Bowersock on Thursday that he has 30 days to take care of the properties in Lima (LY'-muh).
The judge rejected Bowersock's argument that he had seceded from the local government and formed his own Indian reservation, thereby making him exempt from the city's property code.
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Obviously he should have formed a one-man HOA instead.
Thursday, July 22, 2010
Man Pulled Gun On Condo Tenant In Shower
A Boynton Beach homeowner's association member was arrested after pulling a gun on someone in the shower Wednesday, police said."He had the gun within 12 inches from my face, shaking his hand," tenant James Korienek said.Korienek said he came face to face with an armed man inside the Boynton Beach condominium where he lives early Wednesday.Boynton Beach police said Virgil Wilkinson, a homeowner's association board member, broke into the unit."I was locked in the bathroom," Korienek said. "I come out, open the door and the gun is pulled on me like this, and he had the Boynton (Beach) police on the phone. He said, 'Just stand back. Stand back.' And I'm like, 'Virgil, it's me, Jim.'"
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Sounds like a scene out of a Hitchcock movie, doesn't it?
Should Condos have access to privately owned units? Is this an invitation for abuse?
Wednesday, July 21, 2010
Johnson battles homeowner's association in court
A homeowner's association in Kettering is suing Prince George's County Executive Jack B. Johnson (D) and his wife for allegedly failing to pay assessments to the HOA.
In court papers filed in Prince George's County District Court, the Kettering Community Association is asking for about $1,500 in late assessments and legal fees.
"We had this house for 30 years, paid our dues consistently for 30 years," Johnson said in an interview Friday. "They claim we didn't pay. ... It's only $150 (per year). The next thing I know I get a bill for $1,800 or more ... and [got a notice] they are going to foreclose on my house [from] some lawyer. I got pretty mad. I hired a lawyer representing me. ...
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Mr Johnson says: "There's a pattern that's been really frustrating for us," he said. "You have these developers that come in and they build condominium associations and homeowners associations, but the way the bylaws are drafted, the citizens of Prince George's County never take control over their own communities."
Oh, Mr Johnson, I think the problem is much bigger than that!
In court papers filed in Prince George's County District Court, the Kettering Community Association is asking for about $1,500 in late assessments and legal fees.
"We had this house for 30 years, paid our dues consistently for 30 years," Johnson said in an interview Friday. "They claim we didn't pay. ... It's only $150 (per year). The next thing I know I get a bill for $1,800 or more ... and [got a notice] they are going to foreclose on my house [from] some lawyer. I got pretty mad. I hired a lawyer representing me. ...
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Mr Johnson says: "There's a pattern that's been really frustrating for us," he said. "You have these developers that come in and they build condominium associations and homeowners associations, but the way the bylaws are drafted, the citizens of Prince George's County never take control over their own communities."
Oh, Mr Johnson, I think the problem is much bigger than that!
Two bodies found in S.W. Reno house that burned after reported explosion
Investigators have found two bodies in the burned-out rubble of a home in an exclusive southwest Reno neighborhood. They have been unable to identify the victims who died in the blaze, which began shortly before 11 a.m. Tuesday.
Deputies with the Washoe County Sheriff's Office had attempted to serve an eviction at the home, which was under foreclosure, on Tuesday at about 10:40 a.m. They said they knocked and identified themselves, then heard what sounded like gunfire or an explosion and took cover.
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Thanks to a a friend who alerted me to the story.
No word on whether this was a bank or an HOA foreclosure. Regardless, this is not the first time a homeowner has has self immolated in a burning house they were about to be evicted from. I sometimes think we are a little too cavalier about kicking people out of their own homes in this country.
Deputies with the Washoe County Sheriff's Office had attempted to serve an eviction at the home, which was under foreclosure, on Tuesday at about 10:40 a.m. They said they knocked and identified themselves, then heard what sounded like gunfire or an explosion and took cover.
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Thanks to a a friend who alerted me to the story.
No word on whether this was a bank or an HOA foreclosure. Regardless, this is not the first time a homeowner has has self immolated in a burning house they were about to be evicted from. I sometimes think we are a little too cavalier about kicking people out of their own homes in this country.
Tuesday, July 20, 2010
Petition seeks to have wolves howl across US
Petition seeks to have wolves howl across U.S.
Those wild canines better not howl too close to any exurban HOAs or they may find the HOA will send out the exterminators.
Those wild canines better not howl too close to any exurban HOAs or they may find the HOA will send out the exterminators.
Money missing from St. James HOA leads to embezzlement charge for employee
St. James | Brunswick County Sheriff's Office investigators arrested a Wilmington woman in an embezzlement scheme that siphoned more than $12,000 from the St. James Property Owners' Association.
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Another embezzlement story from Cynthia Stephens.
Carolina Beach woman charged with embezzling $30,000A Carolina Beach woman has been charged with embezzling about $30,000 from homeowners associations
Michelle Lynn Bowman, 42, of 300 The Cape Boulevard, was arrested June 28 after turning herself in to Carolina Beach police. She is still being held in New Hanover County jail in lieu of $40,100 bond, according to jail officials.
She is accused of using identification numbers from four homeowners associations to get bank cards and withdraw cash, said Lt. Bill Goodson of the Carolina Beach Police Department.
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Thanks to Cynthia Stephens for this story. I wonder how much money is missing from communal coffers in America's hundreds of thousands of residental associations?
Sunday, July 18, 2010
California political paradox unveils underlying tension between voters, interest groups
The Los Angeles Times has highlighted a political paradox that's playing out in California and certainly other states and the nation as a whole. While anti-incumbent sentiment remains high (last month, California voters nearly elected an unknown state worker who spent less than $5,000 on his campaign over an incumbent Assemblymember as the GOP nominee for insurance commissioner), it is incumbents whose campaigns are getting funded and not their challengers.
Voters in effect are saying we want new blood and someone not beholden to special interest groups, but we'll elect incumbents over non-incumbents since special interest groups get the incumbents' name out there more than their relatively unknown challengers. The real fight isn't over who gets elected, but between the voters and special interest groups.
The explosion of the Internet, which is already blowing a huge hole in the business models of the mass media, could change the equation. Folks running for office -- particularly in large, populous states like California -- have to raise gobs of money in order to buy political ads from mass media outlets. However, if more voters already sick of junior high school level attack ads decide to ignore them and visit candidates' websites instead, the balance of power is shifted between them and the special interest groups that fund candidates' high priced TV spots.
Voters in effect are saying we want new blood and someone not beholden to special interest groups, but we'll elect incumbents over non-incumbents since special interest groups get the incumbents' name out there more than their relatively unknown challengers. The real fight isn't over who gets elected, but between the voters and special interest groups.
The explosion of the Internet, which is already blowing a huge hole in the business models of the mass media, could change the equation. Folks running for office -- particularly in large, populous states like California -- have to raise gobs of money in order to buy political ads from mass media outlets. However, if more voters already sick of junior high school level attack ads decide to ignore them and visit candidates' websites instead, the balance of power is shifted between them and the special interest groups that fund candidates' high priced TV spots.
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