TBill

State by State Unemployment Rate: June 2009 Update

Michigan has been mismanaged for many years. Problem with the economy? Then we need another government program! I don't know how many $$$ were spent advertising nationwide for businesses to come to MI. What a joke! Businesses are and have been leaving MI as fast as they can. Piss poor government is the reason. Spartan INdustries, for example, recently left their long time home in Jackson for IL of all places! If IL is better than MI, you know you got a big problem! The government's solution? More taxes, followed by bailouts from DC, which means the successful will bail out the incompetent. It's the American way!

Crash and Burn for Phoenix Area Home Prices

Just talking to Phoenix realtors [something you might want to do]... It's a seller's market! They are down to a 3 month supply, well below the national average. When a bank puts a house up for sale, there is a rush of bids and the house goes for above asking price. Realtors complaining they have to do a lot of work submitting bids for every sale. Prices have bottomed and are heading up, at least for now.

Ongoing $134.5 Billion Bearer Bond Mystery: Possible Link to Upcoming Bank Holiday

Remember, Italy has the world's best forgers. They are always looking for something high value to forge. But first, they have to get their hands on a real one...

And why run off so many? How the heck are you supposed to market them without raising suspicion? Deposit them and borrow against them? I mean, what's a bank to think went someone shows up with over $100 billion to deposit? If they had only one, maybe they get away with it, particularly if no one knows for sure what a real one looks like. Remember, these guys can turn out paper so good even the Treasury wouldn't know the difference without checking the numbers, and even then might pronounce it real. OTOH, once you've set up the presses, might as well run off a bunch...

ONe thing I know for sure, you can forget about a bank holiday for the purpose of devaluing the dollar. It worked in FDR's case because the dollar was tied to gold. Today's dollar isn't tied to anything.

Boomers in Trouble: The Unheralded Economic Mega-Trend, Part 1

Household wealth drops 11 trillion in the last year... kinda puts it in perspective, doesn't it? Government prints and pumps a trillion or two in and it doesn't work... just like FDR's spending didn't work, just like Japan's spending didn't work. I don't know why we bother. Looks more like an excuse to reward friends and fund pet projects to me.

Banks Not Letting Owners of Foreclosed Homes Walk Away

That's exactly what home owners are doing. In some areas, 20% of home owners have stopped making payments, and anyone still paying has equity to protect.... or is considered stupid. Further, investors have stopped paying on their rental property while banking the rent. Banks aren't kicking anyone out... until they do, they don't have to recognize the loss, and there is such a backlog they don't know what to do with it. Consequently, Phoenix is down to a 3 month of supply with multiple bids on each property brought to market.... seller's market, regardless what you hear in the media, tho prices are far lower than boom times.


On Jul 13 06:42 PM WAKEUP wrote:

> If I understand all this information, correctly (which may or may
> not be the case, since it's pretty tangled), it seems to me that
> the thing to do if you are underwater with the house mortgage, and
> you're "sick of the whole damned thing," is this: STOP making mortgage
> payments; STOP paying taxes on the old shack; WAIT, payment/rent-free,
> until the sheriff's deputy arrives at the front door, with the eviction
> order (in most places, you'll STILL have 30 days, to get out.) Sure,
> you may be (or may NOT be, depending on what state you live in) saddled
> with a bunch of judgements, etc., after (read, IF) you are evicted
> (which is simply NOT happening, in many cases where the guy just
> won't pay, and won't leave, without a court order), but WHAT THE
> HELL DO YOU CARE? If the judgements are coming, they'll be coming,
> either way. Your credit is SHOT (which would have happened, anyway,
> if you had left the house); you are forced to find another place
> to live (which would have been the case, anyway, if you had left
> the house); it will take you about seven years to make some improvement
> in your creditworthiness (same-oh); you are now on a "cash-only"
> basis, in your life (same-oh); but YOU HAVE MORE MONEY IN YOUR POCKET
> than you would have had if you had continued making payments (suggestion:
> DON'T put that money into a bank account; it could be seized.) Why
> make it easy on everybody else (read, the banks), by making it tough
> on yourself? MAKE 'EM PUT UP, OR SHUT UP. Either way, you'll buy
> more time for yourself, and walk away with more dollars.

Wall Street Breakfast: Must-Know News

Was wondering about that myself. T. Boone Pickens is a big supporter, drives a converted car for much less than gas. Now that his windmills are on hold, maybe he can do something.


On Jul 10 10:56 AM axelrod608 wrote:

> XOM's big NG find begs the question - in a massive glut of NG oversupply,
> why isn't LNG for auto fuel a national priority ??
>
> Our "leaders" are too busy clamoring for another "stimulus package"
> to notice.

Wall Street Breakfast: Must-Know News

Since the 'correct' pricing of the warrants is subject to opinion, the situation is ripe for corruption. Big money is at stake here, and the people setting the price don't have any skin in the game.


On Jul 10 08:43 AM AndrewBaker wrote:

> More games with money and markets from our treasury and political
> masters. To be seen to be tough on the banks yet fair, small banks
> are supposedly being asked to pay a lower amount to redeem their
> warrents, and the big banks are complaining. This is just so much
> hogwash. The government and the Fed are in bed with the big banks
> and bankers, and this show is just that: a display designed to fool
> us that tough firm measures are being taken whilst the small guy
> is being considered. I'm not taken in.
>
> Obama's getting his bit in with his public rousting of the mortgage
> companies, so everyone is busy telling us today how much they are
> helping as they don't want us to forget it or them over the weekend.
> Trouble is, there's not many that believe it anyway and not many
> either that think they're doing a very good job.

Apartment Vacancies Cause New Nightmare in U.S. Housing Collapse

Yes, but you didn't have the Clintons and Barney Frank threatening to sue banks that didn't lend to those who couldn't pay back and harassing banks that used 'outdated' standards such as assets and income to determine who qualified for a loan.


On Jul 09 09:29 AM Canadian Guy wrote:

> What a difference a border makes.
>
> In June, the greater Toronto area (seekingalpha.com/symbo...)
> which includes the city of Toronto and all the outlying suburbs,
> approximately 5 million people, set a record for the most number
> of homes sold in a month.
>
> Listings are down 30% from the boom times a year or so ago, but sales
> continue due to lower interest rates and the fact that people are
> spending less money in general, therefore have higher saveings for
> down payments when they do decide to buy a home.
>
> Compare this to the economic desolation I see when I cross the border
> to visit Buffalo and I'm glad our Canadian bankers have always been
> a bunch of tight fisted twats who refused to lend money to people
> if they couldn't prove they could repay it.

Easing Pain at the Pump with Gasoline ETF

Might work if you don't get eaten up by contango.

Chart of the Day: TIPS Derived Inflation Expectations

You can't print money as fast as this government does and not get inflation at some point down the line... and that line is probably going to be well within 10 years. Bet on TIPS.

Declining Divorce Rate Is Wreaking Havoc on Extended Stay Hotels

Guess there will be some self deporting back to Mexico....

Why Are Banks Paying Back Loans They Can't Afford?

It all makes perfect sense if you remember the purpose of these corporations is line the pockets of the CEO. All else, including the health of the company, is very secondary. When exec comp limitation suddenly appeared, there was a collective "Opps" and a rush to pay these things back.

Greenspan testified that his error was to think the bank CEO's would not put their company's at risk chasing a quick and easy profit, and therefore took their word that their complicated trading rooms were adequately hedged. All sorts of nasty stuff was hidden from us. That Greenspan and his regulators couldn't find it makes me feel better that I couldn't either... but not much.

Offshore Oil Storage Trade Just Got Less Profitable

Something that needs to be pointed out is that the amont of floating oil storage has nothing to do with the price of oil. It's all completely hedged. As long as the contango is large enough the storage continues. If not, the oil gets delivered when the hedges expire, regardless of the current price. Keep an eye on the contango. The timing of the deliveries would depend on the hedges, but that is not public information, AFAIK.

Wall Street Breakfast: Must-Know News

So the banks are told to raise capital before they will be allowed to give their taxpayer money back. OK, so they do, then they are told "Sorry, that's not enough. [hee hee]" When will it dawn on them that they will never be allowed to pay the money back and get free of government controls.... unless they are Goldman with a lot of political pull.... or they pay off the right people/entities?

Wall Street Breakfast: Must-Know News

So why the rush to pay back the TARP money? Not often a company turns away from free $$$. How does this benefit the stockholders? ANS: it doesn't. It's all about getting rid of the government strings that come with it, specificly the limits on CEO pay. Hits them where they live, right in the name of the game.