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7footMoose

7footMoose
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  • "It's an absolute frenzy to buy finished lots or platted lots, the busiest my company's ever been," says the head of a Phoenix land brokerage firm. The homebuilders have obviously had a big year. How might landowners and real estate developers fare in this environment? The St. Joe (JOE), Limoneira (LMNR), Tejon Ranch (TRC), and AMREP (AXR) come to mind. Any others? [View news story]
    Investors wiped out by the Tech Bubble are what fueled the real estate bubble the first time. The thinking being it is real hard collateral with no downside. Does this sound familiar to anyone? Demographics say this is a false positive.
    Dec 16 07:42 PM | 1 Like Like |Link to Comment
  • "It's an absolute frenzy to buy finished lots or platted lots, the busiest my company's ever been," says the head of a Phoenix land brokerage firm. The homebuilders have obviously had a big year. How might landowners and real estate developers fare in this environment? The St. Joe (JOE), Limoneira (LMNR), Tejon Ranch (TRC), and AMREP (AXR) come to mind. Any others? [View news story]
    We're talking our own book again. Where is the "demand" coming from? What has happened to the thousands of foreclosed and empty homes in Phoenix? They are still empty and rotting away or serving as temporary meth labs.
    Dec 16 01:48 PM | 4 Likes Like |Link to Comment
  • While much attention has focused on averting the fiscal cliff, the U.S. is just $66B below its $16.4T debt ceiling, which it's due to hit towards the end of the month. Treasury would then embark on some fiscal maneuvering that could buy it another 6-10 weeks. As with the fiscal cliff , Republicans want cuts to entitlement programs before agreeing to increase the debt limit again. [View news story]
    The President and the Democrats are getting greedy. while saying puplicly they want to "compromise" they are looking for a complete take down. That type of attitude could back fire.
    Dec 16 06:11 AM | 4 Likes Like |Link to Comment
  • Community Bank of the Ozarks of Sunrise Beach, Missouri has been closed by banking regulators, making it the 51st U.S. bank failure of 2012. Bank of Sullivan of Sullivan, Missouri, will assume all of the bank's $42M in deposits and essentially purchase its $43M in assets. The cost to the FDIC deposit-insurance fund: $10.4M. [View news story]
    In a bank "deposits" are liabilities. They are the safe side of the balance sheet, "assets" are made up of loans which go bad and have to be written down and off. Deposits are always sold for a small premium as they make up the raw material of loans.
    Dec 16 06:09 AM | Likes Like |Link to Comment
  • Community Bank of the Ozarks of Sunrise Beach, Missouri has been closed by banking regulators, making it the 51st U.S. bank failure of 2012. Bank of Sullivan of Sullivan, Missouri, will assume all of the bank's $42M in deposits and essentially purchase its $43M in assets. The cost to the FDIC deposit-insurance fund: $10.4M. [View news story]
    How in the hell is the FDIC losing $10.4MM when the acquiring bank is acquiring $43.0MM of assets for $42.0MM? Talk about funny money accounting.
    Dec 14 07:42 PM | 2 Likes Like |Link to Comment
  • BofA Merrill Lynch lays out a bullish vision for 2013, and it includes much to tantalize investors: S&P to 1,600, gold pushing as high as $2,400/oz., and an accelerating housing recovery. The year ahead can be divided into two halves: The first, in which growth will be slow due partly to Spain's debt and residual effects of the fiscal cliff, and the second when those issues are resolved and growth accelerates. [View news story]
    Oh Come On! Anything to drive a few investors into the waiting jaws of a Merrill Lynch Financial Advisor.
    Dec 11 07:03 PM | Likes Like |Link to Comment
  • The Fiscal Cliff Will Destroy The Economy? [View article]
    If you earn enough money, your taxes are going up 01/01/2012. You can count on that. It may be as little as $200,000 or it may be as much as $1,000,000 but it is going to happen.
    Dec 8 02:22 PM | Likes Like |Link to Comment
  • The Fiscal Cliff Will Destroy The Economy? [View article]
    That's the idea, Stevie.
    Dec 8 09:33 AM | 1 Like Like |Link to Comment
  • Cullen Roche's three bearish signs in a sea of negativity: U.S. rail traffic is grinding to a halt; U.S. manufacturers' new orders have turned sharply negative; and Suez Canal traffic is turning negative. (But things could be worse: three bullish signs.) [View news story]
    What about the Mayan Apocalypse?
    Dec 8 09:32 AM | 2 Likes Like |Link to Comment
  • Why the cliff matters: Eliminating mandated spending cuts and extending 2012's tax regime into 2013 could add 2.9% to GDP, according to Bloomberg's Joe Brusuelas. Of course, what the status quo means for the finances of the government down the road is a different story. [View news story]
    As I said, they are screwed. My generation, the Baby Boomers, are not interested in leaving anything behind for them. At least my kids will both graduate college with no student loans and a new car.
    Dec 6 03:13 PM | Likes Like |Link to Comment
  • Why the cliff matters: Eliminating mandated spending cuts and extending 2012's tax regime into 2013 could add 2.9% to GDP, according to Bloomberg's Joe Brusuelas. Of course, what the status quo means for the finances of the government down the road is a different story. [View news story]
    The entire burden of all of these moves will ultimately fall on the shoulder of those under that age of 40 years. They are screwed and they don't seem to understand that it is happening to them.
    Dec 6 11:40 AM | Likes Like |Link to Comment
  • J.C. Penney (JCP +5.8%) races higher with no news of note out on the retailer. Shares cracked through the $19 barrier for the first time in a month before peeling back gains. CNBC's Carl Quintailla says a major rumor is behind the action. [View news story]
    Of course, "They said....".
    Dec 6 10:30 AM | 1 Like Like |Link to Comment
  • Mario Monti may be out of a job. His government teeters as former PM Berlusconi threatens to pull his party's support. "We can't go on like this," says Berlusconi, "I can't allow my country to (continue) in a recessionary spiral without end." Shares in Milan fall 1%. The 10-year government bond yield rises 11 bps to 4.57%. [View news story]
    We look forward to welcoming back the Bunga Bunga Party. After all it worked for Nero.
    Dec 6 08:06 AM | Likes Like |Link to Comment
  • Why the cliff matters: Eliminating mandated spending cuts and extending 2012's tax regime into 2013 could add 2.9% to GDP, according to Bloomberg's Joe Brusuelas. Of course, what the status quo means for the finances of the government down the road is a different story. [View news story]
    The Mayans are gathering for the end of the world. If they are right then the fiscal cliff will have moved forward to December 21st and the tax increases and spending cuts of 2013 will never occur. That is the newest option being bandied about in Washington. The vote is expected to occur on December 22nd.
    Dec 6 07:46 AM | 1 Like Like |Link to Comment
  • Some Microsoft (MSFT) news: 1) Microsoft has begun selling Office 2013, along with new versions of Exchange, SharePoint, Lync, Project, and Visio, to businesses. Office 2013 brings a touch-friendly UI, SkyDrive integration, and a stronger emphasis on subscriptions. Many of the complementary products are seeing price hikes. 2) A Microsoft insider claims Redmond will launch 3 new Surface models next year: an 8.6" RT model with a Qualcomm chip, an 11.6" Pro model with an AMD Temash chip, and a 14.6" "Surface Book" with an Intel Haswell chip. Surface RT sales have disappointed thus far. [View news story]
    Desperate times call for desperate measures.
    Dec 3 08:17 PM | Likes Like |Link to Comment
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