Adoptsalot

Merry Christmas, Fannie and Freddie: Treasury Support Increased

Before this is over, some 28-36% of homeowners will have lost their homes. Only about 9-10% should have never had a loan to begin with.

And yet the saddest part of the foreclosure saga is rarely discussed.

1-The transfer of homes (future wealth/security), at pennies on the dollar on the courthouse steps, to others who Never could have qualified. The single largest transfer of wealth to happen in our lifetimes is playing out before us.
2-The age group of the majority of these people 40-55, making it virtually impossible to 'start over' and get a home/housing paid for before retirement, let alone recoup their retirement savings.
3- Most families are running through ALL of their savings before surrendering their home; checking, savings, IRA's, 401k's, kids college funds, credit cards...

With the lack of jobs available, the wave of people that will hit retirement, unprepared financially, will be staggering. With so much wealth wiped out, this group could and probably will face poverty in retirement.

Imagine, if you can, millions and millions of Americans reaching retirement, with little more than Social Security.

And Nero keeps fiddling...
So much for transparency.


On Dec 26 08:47 AM Cyrus Weiss wrote:

> The population is still increasing. The foreclosures will be purchased,
> and the people buying the property will pay their mortgages, as they
> have in the past. It will take till 2012 to begin the uptick. <br/>
>
> Relax.
>
> Cyrus Weiss

Fannie / Freddie - What Does Treasury Know?

Before this is over, some 28-36% of homeowners will have lost their homes. Only about 9-10% should have never had a loan to begin with.

And yet the saddest part of the foreclosure saga is rarely discussed.

1-The transfer of homes (future wealth/security), at pennies on the dollar on the courthouse steps, to others who Never could have qualified. The single largest transfer of wealth to happen in our lifetimes is playing out before us.
2-The age group of the majority of these people 40-55, making it virtually impossible to 'start over' and get a home/housing paid for before retirement, let alone recoup their retirement savings.
3- Most families are running through ALL of their savings before surrendering their home; checking, savings, IRA's, 401k's, kids college funds, credit cards...

With the lack of jobs available, the wave of people that will hit retirement, unprepared financially, will be staggering. With so much wealth wiped out, this group could and probably will face poverty in retirement.

Imagine, if you can, millions and millions of Americans reaching retirement, with little more than Social Security.

And Nero keeps fiddling...
So much for transparency.

Creating an Inflation-Proof Source of Income in Retirement

"Thus, an investor relying on this dividend stock might realize that it has failed to keep up with inflation and that he would have to downgrade his lifestyle."

Or... trade into another higher yielding stock.

Assuming you are 'bound and tied' to underperformers is a lifestyle killer no matter how you play it.

The Government Doesn't Listen to Reason

Possibly one of the best interviews I have seen in six months. A lot of topics covered. Very interesting.

www.pbs.org/now/shows/...
Elizabeth Warren on the Economy
Stocks are up, but so is unemployment. What's wrong with this economic picture and what's being done about it?
What exactly is going on with the economy? Stocks are up and big bonuses are back, but while they're throwing parties on Wall Street, there's pain on Main Street. One out of every six workers is unemployed or underemployed, according to government statistics - the highest figure since the Great Depression.

This week NOW gets answers and insight from Harvard professor Elizabeth Warren , who's been heading up the congressional panel overseeing how the bailout money is being spent. NOW Senior Correspondent Maria Hinojosa talks with Warren about how we got to this point, and where we go from here.

The Worst Unemployment Losses Are Yet to Come

Actually the BLS accounting errors will not be corrected until March of next year. They currently est.the unemployed at 18.5%. or 1 in 6 workers.

Possibly one of the best interviews I have seen in six months. A lot of topics covered. Very interesting.

www.pbs.org/now/shows/...
Elizabeth Warren on the Economy
Stocks are up, but so is unemployment. What's wrong with this economic picture and what's being done about it?
What exactly is going on with the economy? Stocks are up and big bonuses are back, but while they're throwing parties on Wall Street, there's pain on Main Street. One out of every six workers is unemployed or underemployed, according to government statistics - the highest figure since the Great Depression.

This week NOW gets answers and insight from Harvard professor Elizabeth Warren , who's been heading up the congressional panel overseeing how the bailout money is being spent. NOW Senior Correspondent Maria Hinojosa talks with Warren about how we got to this point, and where we go from here.


On Nov 15 02:30 PM Highonlife wrote:

> Considering it is already at 10.2, not going to stop going down for
> a couple of months......
> and added that the BLS has admitted that something like 0.6-0.7%
> were not accounted for (up til march of this year, not counting further
> accounting issues for the following months) and that these will be
> added early next year, ..
> this means that unemployment is already beyond the or nearing the
> 11% mark.
> so bbro, your theory kinda fails at this juncture

Why Losing the Homebuyer Tax Credit Is a Good Thing

Currently under discussion to ammend and extend through 2010-to all homebuyers and they may make the amount larger-
You can go here to write your representatives easily www.congress.org/news/...

Personal note:
I don't believe first time home buyers need/deserve a credit. That is $8K we are going to NEED in the tax digest, and there has been far to much fraud identified in the program.
However, I would be OK if: a credit was available to an individual who lost their home (Must be the original home buyer who was foreclosed) to foreclosure during the last 18 mos. and
1- the home has a value of $150K or less (no credits for high end houses)
2 -it is not a forclosed home (no credit for buying a forclosed home or any other home at a distressed price)
3 -it is not a new home (it is an existing home)
4- to insure the homebuyer can really afford the house, the credit should be taken in $2K increments over 4 years
5- it should be available to citizens or legal residents only

Expect Structurally High Unemployment to Continue; Risk of Recessionary Lapse

With 10% of the population recieving unemployment compensation and another 8% the government estimates did not qualify, have used up their benefits, may be working part time or may have given up (moved in with family/shelter/homeless) and now the BLS admits they have been using a bad formula that may have under counted the unemployed by 250,000 per month!! THIS BRINGS THE REAL UNEMPLOYMENT NUMBERS TO AROUND 20%, AND GROWING.
It is time for action.
12 things Washington could do to jump start the economy
--this is just a starting point--

1- Build a new Federal Prison in at least 25 states (for a minimum of 5000 prisoners) to relieve over crowding and stop early releases, provides construction jobs ++improves law enforcement moral- improves safety- long term infrastructure needs met

2-Provide zero interest loans to cities that build new additional jails (not replacement jails) that will provide new incremental jobs (loans to be paid back in equal payments over 20 years-- should eliminate early release and over crowding ++improves law enforcement moral- improves safet, long term infrastructure needs met

3- Provide a low interest loan ( 1-2 %) to any state for the addition of a state prison that would accommodate a minumum of 5000 prisoners and provide a minimum of 150 new jobs ++improves law enforcement moral- improves safety, long term infrastructure needs met

4- Work with the FAA to determine the best sites for 3-4 more major international airports to help relieve air congestion (5-10,000 jobs created per site) and a series of smaller regional airports, and perhaps 3-5 helecopter airports needed to improve air safety, long term infrastructure needs met

5- Working with Best In Class Nursing Universities, build 3-5 new nursing colleges that can each graduate at least 5000 students per year . As part of the back to work program, scholarships should be made available for unemployed persons with college degrees who could complete a degree in 18 mos or less and for those High school graduates who have at least 7 years of work experience. (not a part of the health care package.) Improves health care and infrastructure needed in the next 10 years *****part of our humanitarian aid package/policy should be to take 500-1000 students from 3rd world countries and provide a medical education (nurse, doctore, dentist...) they should not be allowed to stay in the US, as part of the condition of the degree, they must return to their country to help improve the overal health of the people

6-Extend COBRA to 36 mos ( temp- until unemployment returns to 5%) Require companies to pick up 25% of cost and Fed to pick up 25%.

7-Extend Unemployment benefits to 36 mos, with a requalifying visit required every 6 mos.

8-Substantially raise taxes on any personal vehicle that gets less than 20 miles to the gallon on city or hwy. (and raise that that 1mpg per year for 10 years) Conversely, charge no tax when the city/hwy mpg is greater than 35 (currently only the Ford Fusion, but more are on the way) could significantly reduce need for foreign oil, reduce road wear and tear, create a more organic reduction of 'big vehicles' while promoting new car sales with out cash incentives- also promotes the auto development that we have needed for the last 20 years- but did not get.

9-Add 2000 additional Coast Guard positions

10-Add 10,000 National Parks 'special' jobs with a duration of 1 year with healthcare, but no retirement benefits elegibility other than qual. for SS credits (use for repairs, improvements, tours prep for added intrest following the National Parks PBS Special and more local vacationers) provided needed maintenance and improvement support

11- Add 8000 Border Patrol 'special' jobs with a duration of 12-18 mos.with healthcare, but no retirement benefits elegibility other than qual. for SS credits
-fills an existing need and supports our streched border patrol teams

12- Allow the unemployed to draw interest or dividends from their 401k, IRA's without penalty (Not the principle) for up to 36 months. Hopefully, this will provide enough time for them to find new permanent jobs.

This would help them forestall taking SS early or losing their home, help pay for for utilities, insurance... without diminishing the principle balance of the accounts.

Which Dividend Stocks Are Relatively Safe?

Also, don't overlook that foreign stocks like CEL will have a (in addition to US tax) foreign tax attached to them, reducing your dividend yield and selling profit- and, if there was a problem, you would be a day late or at least 6-7 hours before you even knew about it.

Three More Stocks Going Ex-Dividend End of September

You did not remind people they need to hold onto each of the stocks for the minimum required 61 days to get the reduced dividend tax rate.

Picking Up Pier 1 Ahead of Earnings

I have been to Pier 1 a number of times out of curiosity or to browse.
I never see more than 2 or 3 customers in the stores at a time except at Christmas.
Their parking lots are almost always empty.
I just don't see the mechandise as particularly desirable.
It's just a matter of time.....

Jobless Claims Data Moving Back in the Right Direction

The data I have seen for total unemployed; including underemployed (those now with just a part time job ,1-3 days) and those that used up their benefits and still do not have a job is 16.8%. Add to that most of these jobs are not coming back. Some will, but not most of them.

Couple that with 12% of homeowners currentlty in foreclosure or behind 2 or more months on their mortgage and unable to get help.Note that over 15 million have already lost their homes.
Remember that over 90% of all reported home sales are courthouse steps sales! ...not new home sales.

Personal bankruptcies are up over 300%.

Far too many people have already lost everything, many too old to really start over. And millions more are about to share their fate.

The lack of focus on creating new jobs is creating a sunami we will all be talking about for years to come.
We should all bcheck in with our local goverments to see just how they spent or are spending the stimulus money. Did they buy things that create jobs or did they hire new employees? Or did they blow it?

81 Stocks Returning 35%+ in the Past Four Weeks

These stocks only made 30% --if ---you bought them while they were at their low point.
Most are still more than 30% below their former 'high' and may not see that point again for years.
And, increased revenues and stock prices, 6-12 months following major reductions or restructuring (CBT/GT/R/..) is expected , and should not be interpreted as a 'turn around' or a sign to buy for a portfolio holding.
Take your money and run.

The Recession Ain't Over Until It's Over

I don't get it. Who are these economists that think the recession is over ? How can 'the recession' be over? It's a math thing.

12% of homeowners are still reported to be either behind on their mortgage or it in the foreclosure process .
10% of the population is unemployed (most experts believe this number is under reported due to the number of people who have exhausted their unemployment benefits , never signed up for unemployment benefits, or were not entitled to unemployment benefits ) with no -new -real -jobs on the horizon.
Those that are employed are realizing that they need substantial savings in order to survive a layoff themselves , possibly as much as 18 to 24 months.
Boomers who saw their savings errode or get wiped out completely, now have to save as though their retirement depends on it , oh wait... it does .
Massive personal debt has caught up with over 23% of the population , with many of them looking at bankruptcy in some form, as a means of escape . In some areas, personal bankruptcies are up over 300%.
There are cirites and states that have so poorly managed their finances they are facing bancruptcy. And those that are having a bad time now, are not going to know what to do with themselves when April 15 comes around next year and even less money rolls into their coffers .
Increased taxes are on the horizon everywhere, and between city , county , state & Federal , could easily hit an adddtional 10%.
Banks continue to be closed at an alarming rate.
And the Fed is propping up its pet projects and contributors , I mean businesses, by throwing billions of dollars at them . (Any new jobs coming out of the clunkers program ? I don't think so ! )