Probably because, to your average swinish investor, that would look a little too much like a funeral. You have to put it on a plate to keep them from realizing that they're commiting cannibalism.
The Beef Council won't do anything. Since Oprah sicced Dr Phil on them, they been eating at Chick-Fil-A.
It is refreshing to know that there's no danger of clear thinking intruding into Congress and interfering with the earmark allocations. First things first.
I'm with Wally. Wish more ribs places understood the wonders of dry ribs, though. Sauce is too often a cover for not knowing how to cook ribs.
By the way, as regards Congress knowing what to do, here is Bernanke back in 2002, discussing Japan's inability to make necessary changes.
"...in the short run, comprehensive economic reform will likely impose large costs on many, for example, in the form of unemployment or bankruptcy. As a natural result, politicians, economists, businesspeople, and the general public in Japan have sharply disagreed about competing proposals for reform. In the resulting political deadlock, strong policy actions are discouraged, and cooperation among policymakers is difficult to achieve."
Sounds dead on target for the US right now. Given what he knew 5 years ago, I doubt Bernanke has much hope for regulatory or legislative wisdom right now.
People who think the US has inflation problems should read about China to see what "real" inflation looks like:
Food prices, which make up just over a third of CPI, jumped 18.2% in August, accelerating from July's 15.4% gain, according to the National Bureau of Statistics. Meat and poultry price rises accelerated to 49% on year from July's 45% increase, fresh vegetables rose 23% in August compared with July's 19% and grain prices were up 6.4% in August, picking up from July's 6% gain.
Wally, I think this is just one of those times you can't get there from here.
Why do investors have "egg on their face"? Are they embarrassed that they bought this stuff? Or is it the originators and raters who have egg on their face?
Is Ackerman being snarky about the "silver platter," suggesting that investors were just the rich trying to get richer? Or are we actually supposed to feel sorry for them now that they're down to paper plates?
And "laying hens"? A farmer will tell you those are the ones you don't eat, because they're too valuable. But Hollywood will tell you that "laying an egg" is a bad thing. Everyone knows "having egg on your face" is no fun, but is hardly life-threatening. I can't believe he didn't manage to work in the goose that laid the golden eggs and the rotten eggs with which miscreants are traditionally pelted. Must have been short of time.
see, look what i found. they support apple and hate you:
From Standard&Poor's Equity Research. S&P REITERATES BUY OPINION ON SHARES OF APPLEAAPL; $135.01 Apple's CEO, Steve Jobs, offered an apology and a $100 credit at Apple stores to early adopters of the iPhone who faced a $599 price on the high-end model since its late June introduction until an abrupt one-third price cut to $399 on Sept. 5. We view the action as a positive step towards mending customer relations. We estimate that, with less than a million iPhones sold to date, and with the spur it gives to future store visits, the overall impact of the cost of the credits will be small. We are maintaining our EPS estimates, and also reiterating our 12-month target price of $170.
Cut the congressman some slack... he's just proving congressman are smart enough to know the difference between beefcake and pork barrel.
If he was a Midwestern congressman I'd expect him to suggest they turn the problem over to the USDA as they are are the answer to every problem (from a Midwesterner's perspective of course)... Being he's from New York I doubt it. Though maybe he has an idea to expand the school lunch program, or treat real estate like free cheese. That's how we get rid of excess food production and there is one helluva inventory of housing out there.
Who knows. You can read into the MMI whatever you want - that's how they keep getting elected.
Chicago, especially in the suburbs, has higher vacancies and lower rents than other U.S. office markets. As of midyear, the metropolitan area had an 18.5 percent vacancy rate, 532,678 square feet more put back on the market than was taken off by leasing and an overall asking rent of $22.16, still off from the high of $22.30 in 2000, according to Cushman & Wakefield of Illinois Inc.
Downtown Chicago, meanwhile, has 6 million square feet of new offices in development.
In the past two months "suburban leasing velocity is down," said Doug Shehan, a senior director at Cushman & Wakefield. "It's a bit of a quagmire for landlords that recently bought at high prices with expensive short-term loans."
"They bought on the dream that rents would rise but not many have achieved that," he said.
Suburban Chicago is a mess - of all the cities I drive through & do business in, Chicago appears to have the largest glut of unabsorbed CRE.
I don't go downtown much so can't speak for the Loop or the NNS.
From the original post! "Bear in mind that the original idea for the Muddled Metaphor Index arose from the insight that when normally articulate people start speaking in tongues, you know you have a crisis on your hands."
Does this mean that people are skipping the posts to jump right into comments?
ac , regarding your comment on inflation in China. Why is our inflation tame on food in the US if it is a commodity and China's dollar is pegged to ours?
The National Association of Realtors trimmed its sales forecast for the seventh straight month and widened its predicted drop in existing home values.
Existing-home sales should hit a pace of 5.92 million units this year, down from the 6.04 million units it predicted last month.
The national median sales price for existing homes should ease by 1.7 percent to $218,200 this year. Last month the trade group said prices would slip 1.2 percent.
The median new-home price will probably fall 2.2 percent to $241,100 this year, the NAR said in its monthly economic outlook.
Certainly ... or 'mangled or murdered or metaphor'... but not if you're dull like me 'mixed metaphor' is the only way I can remember it... otherwise I'm apt to think its a franchise or something...
Media Metaphors Inc.... Can I be a franchisee? Tanta, how much are you charging?
"Mixed" metaphor is a subset of Muddled Metaphor. We used to see a lot of mixed metaphor, but lately we have an outbreak of merely confused metaphor, such as the implied comparison between a "laying hen" and a nonperforming security, which may be an internally consistent metaphor (it's all meat to Ackerman), but it's just a consistent way of being unclear on the concept. Or something.
I agree I don't think that Congress or for that matter the world bankers know what to do about the credit crises.
How does a fed funds cut help homeowners with ARMS indexed to the LIBOR?
Just how flexible can a servicer be when the owner of any given mortgage, could be several individuals who own various derivatives in the same mortgage?
How does a fed funds rate cut help with the frozen ABCP held in a bank conduit?
How does it help attract foreign investors to US Government debt when they are beginning to sell because they are losing value as the dollar declines against the major world currencies?
And what of repricing debt in the world markets? Not to mention the covenant lite loans for M&A's and LBO's.
How does it restore confidence in debt instruments?
How does it help the US savings rate? Why save if the dollar continues to lose value and you are taxed to the max? Who can save with the high rate of real inflation, and not the phony core rate?
How does a fed funds cut begin to stop the proliferation of asset / credit bubbles?
It is way to early for this here in the Pacific NW.
1) Some of the items they listed there are NOT commodities or not easily transported & import/export commodities:
I. E. Fresh vegetables & meat & poultry.
Certainly not easy to transport with China's infrastructure.
2) There has been rumblings that maybe China is having difficulty 'sterilizing' all the USD its taking in.
Setser has been looking for this to happen for a couple years now. If the Chinese balk at buying USD debt & equity or have trouble convincing their people to aggressively save by buying matched RMB denominated bonds (paired to the USD debt & equity)... then they get inflation, LOTS of inflation.
Or they have to let the RMB appreciate vs USD to cut back on the RMB created.
I would be very grateful for help with a few questions (below) about foreclosure. These are issues that will increasingly be important in the months to come and I expect to see a lot of inaccurate and misleading stories in the press.
How does the interplay between first and second liens on a property affect the loss mitigation, foreclosure and REO processes?
How is the relationship designed to work, and what actually happens?
In particular, if a borrower defaults on a second, can and does the second lien holder foreclose on the property?
What then happens to the first lien holder? Who is most likely to attempt a foreclosure alternative (mod or short-sale) and do the first and second lien holders generally coordinate actions?
Same questions if the borrower is paying on the second, but defaults on the first....is that even a realistic scenario?
Do first lien holders generally know if the borrower takes out a second at some time after the primary mortgage was originated?
In particular, if a borrower defaults on a second, can and does the second lien holder foreclose on the property?
Any lender with a lien can FC. That's the whole point of filing a lien. Second lienholders can FC, but they do not frequently FC.
What then happens to the first lien holder? Who is most likely to attempt a foreclosure alternative (mod or short-sale) and do the first and second lien holders generally coordinate actions?
The first lienholder has to get paid off first in an FC by a second lienholder, in order for the second lienholder to take clear title to the property. It usually isn't worth it for the second lienholder to FC unless it buys out the first lien first, so that it is now the only lienholder. Otherwise the second lienholder hopes there's enough left after the first lienholder FCs to pay some or all of the junior debt. The second lienholder cannot prevent a first lienholder's workout except by foreclosing, which usually isn't economic for it. OTOH, first lien holders are highly unlikely to work out a loan with a delinquent second lien. A modification legally requires the second lienholder's cooperation, because it's a renewal of the first lien, and unless the second lienholder agrees to "subordinate" its lien to the modification agreement, the mod becomes a third lien instead of a modified first lien. When you hear people talking about endless "delays" in getting mods done, it's often for technical legal reasons like this: waiting for a second lienholder to record a subordination agreement.
Same questions if the borrower is paying on the second, but defaults on the first....is that even a realistic scenario?
Nearly all second liens originated these days have a "cross-default" provision, such that a default on the first counts as a default on the second. First lienholders can pursue judicial foreclosure in a case when the first is current but the second is defaulted, on the grounds that it is protecting its security interest in the property per the terms of the mortgage document.
Do first lien holders generally know if the borrower takes out a second at some time after the primary mortgage was originated?
Junior lenders will generally send notification to the senior lender's servicer, precisely because the junior lender wants to be notified in the event of default on the first. The problem in the industry is that tells you that a lien was filed, but doesn't give you a reliable way to calculate CTLV on the original loan, since junior lienholders aren't required to report a balance to the senior holder every month. Just the original fact of the junior lien.
Now this morning I heard something on the news about Ohio's attorney general blaming the rating agencies and claiming he was willing to sue them and use the proceeds to help subprime borrowers who lost their homes. Somewhere in there seemed to be the belief that the malfeasance of the rating agencies caused subprime buyers to lose their homes.
I hope it was my sleep deprived brain tricking me because that's batty. I could see how someone who bought a AAA rated CDO sandwich full of subprime goodness could believe they had a basis for a suit (doesn't mean I think they should win but I can connect the dots between point A and point B). But to claim that the rating agencies misrating a CDO caused a mortgage in the underlying asset pool to foreclose seems batty.
Why paper plates? Why aren't the ribs just laid out on the table?
Ackerman the silver tongued devil!!
What better MMI for a con?
Why aren't the ribs just laid out on the table?
Probably because, to your average swinish investor, that would look a little too much like a funeral. You have to put it on a plate to keep them from realizing that they're commiting cannibalism.
I don't see pork ribs as inferior to beef in any way. I guess that whole metaphor is lost on me.
The Beef Council won't do anything. Since Oprah sicced Dr Phil on them, they been eating at Chick-Fil-A.
It is refreshing to know that there's no danger of clear thinking intruding into Congress and interfering with the earmark allocations. First things first.
I'm with Wally. Wish more ribs places understood the wonders of dry ribs, though. Sauce is too often a cover for not knowing how to cook ribs.
By the way, as regards Congress knowing what to do, here is Bernanke back in 2002, discussing Japan's inability to make necessary changes.
"...in the short run, comprehensive economic reform will likely impose large costs on many, for example, in the form of unemployment or bankruptcy. As a natural result, politicians, economists, businesspeople, and the general public in Japan have sharply disagreed about competing proposals for reform. In the resulting political deadlock, strong policy actions are discouraged, and cooperation among policymakers is difficult to achieve."
Sounds dead on target for the US right now. Given what he knew 5 years ago, I doubt Bernanke has much hope for regulatory or legislative wisdom right now.
People who think the US has inflation problems should read about China to see what "real" inflation looks like:
Food prices, which make up just over a third of CPI, jumped 18.2% in August, accelerating from July's 15.4% gain, according to the National Bureau of Statistics. Meat and poultry price rises accelerated to 49% on year from July's 45% increase, fresh vegetables rose 23% in August compared with July's 19% and grain prices were up 6.4% in August, picking up from July's 6% gain.
Whoops... I thought this post was about food.
Wally, I think this is just one of those times you can't get there from here.
Why do investors have "egg on their face"? Are they embarrassed that they bought this stuff? Or is it the originators and raters who have egg on their face?
Is Ackerman being snarky about the "silver platter," suggesting that investors were just the rich trying to get richer? Or are we actually supposed to feel sorry for them now that they're down to paper plates?
And "laying hens"? A farmer will tell you those are the ones you don't eat, because they're too valuable. But Hollywood will tell you that "laying an egg" is a bad thing. Everyone knows "having egg on your face" is no fun, but is hardly life-threatening. I can't believe he didn't manage to work in the goose that laid the golden eggs and the rotten eggs with which miscreants are traditionally pelted. Must have been short of time.
it's true...it's all S&P's fault that you bought that iPhone that is now $200 less. Bastards.
ephemera?
Moin
uh ohh......
Report says Countrywide seeking new investors
Stock under pressure pre market....
There's a deeper issue here that few commentators have yet nailed down.
It's the inability to project the long-term negative consequences of short-term profit opportunities.
It isn't just subprime. It's everywhere.
Look, the State of New Jersey has considered selling the New Jersey Turnpike to private developers to raise cash.
Short-term profit.
Long-term negative consequences: higher tolls and exit ramps that don't hit the ground.
We just keep painting future generations into a corner.
see, look what i found. they support apple and hate you:
From Standard&Poor's Equity Research. S&P REITERATES BUY OPINION ON SHARES OF APPLEAAPL; $135.01 Apple's CEO, Steve Jobs, offered an apology and a $100 credit at Apple stores to early adopters of the iPhone who faced a $599 price on the high-end model since its late June introduction until an abrupt one-third price cut to $399 on Sept. 5. We view the action as a positive step towards mending customer relations. We estimate that, with less than a million iPhones sold to date, and with the spur it gives to future store visits, the overall impact of the cost of the credits will be small. We are maintaining our EPS estimates, and also reiterating our 12-month target price of $170.
...teen pregnancy
Where does this Fitch live? Ah'm gettin' my 12 gage...
True, Tanta. I don't want to be too hard-boiled about this, but metaphor should go over easy, but that one is thoroughly scrambled.
"Long-term negative consequences: higher tolls and exit ramps that don't hit the ground."
Ramps that don't hit the ground? Well, here in Minneapolis we've got a bridge that did.
From the Chicago Tribune, sub prime fallout hits office property:
Empty offices leave landlords high and dry As the credit squeeze from escalating residential loan defaults takes atoll on real estate services companies, the owners of commercial buildings arealso experiencing pain - Chicago Tribune
Seems there's a bit of metaphorical ova kill happening. Should the commenters be egged on? It could lead to a fowl day.
Cut the congressman some slack... he's just proving congressman are smart enough to know the difference between beefcake and pork barrel.
If he was a Midwestern congressman I'd expect him to suggest they turn the problem over to the USDA as they are are the answer to every problem (from a Midwesterner's perspective of course)... Being he's from New York I doubt it. Though maybe he has an idea to expand the school lunch program, or treat real estate like free cheese. That's how we get rid of excess food production and there is one helluva inventory of housing out there.
Who knows. You can read into the MMI whatever you want - that's how they keep getting elected.
What does MMI stand for?
jmf, I just read that about Countrywide. I wonder why anyone would throw good money after bad on Countrywide at this point?
What does MMI stand for?
How pathetic. Obviously YOU aren't a regular [/sarcasm]...
Mixed Metaphor Index... high score indicate panicky and unreasoned thought... or an affiliation with a large media conglomerate or gov't entity.
Hey Dryfly, isn't MMI=Muddled Metaphor Index
Chicago, especially in the suburbs, has higher vacancies and lower rents than other U.S. office markets. As of midyear, the metropolitan area had an 18.5 percent vacancy rate, 532,678 square feet more put back on the market than was taken off by leasing and an overall asking rent of $22.16, still off from the high of $22.30 in 2000, according to Cushman & Wakefield of Illinois Inc.
Downtown Chicago, meanwhile, has 6 million square feet of new offices in development.
In the past two months "suburban leasing velocity is down," said Doug Shehan, a senior director at Cushman & Wakefield. "It's a bit of a quagmire for landlords that recently bought at high prices with expensive short-term loans."
"They bought on the dream that rents would rise but not many have achieved that," he said.
Suburban Chicago is a mess - of all the cities I drive through & do business in, Chicago appears to have the largest glut of unabsorbed CRE.
I don't go downtown much so can't speak for the Loop or the NNS.
From the original post! "Bear in mind that the original idea for the Muddled Metaphor Index arose from the insight that when normally articulate people start speaking in tongues, you know you have a crisis on your hands."
Does this mean that people are skipping the posts to jump right into comments?
ac , regarding your comment on inflation in China. Why is our inflation tame on food in the US if it is a commodity and China's dollar is pegged to ours?
It really does not add up
I like pork ribs too. Pickled pig's feet would work better for the metaphor, yuck!
Here is one for when CR wakes up.
Realtors cut forecast for home sales in 2007
Realtors cut forecast for home sales in 2007
| Reuters
The National Association of Realtors trimmed its sales forecast for the seventh straight month and widened its predicted drop in existing home values.
Existing-home sales should hit a pace of 5.92 million units this year, down from the 6.04 million units it predicted last month.
The national median sales price for existing homes should ease by 1.7 percent to $218,200 this year. Last month the trade group said prices would slip 1.2 percent.
The median new-home price will probably fall 2.2 percent to $241,100 this year, the NAR said in its monthly economic outlook.
Hey Dryfly, isn't MMI=Muddled Metaphor Index
Certainly ... or 'mangled or murdered or metaphor'... but not if you're dull like me 'mixed metaphor' is the only way I can remember it... otherwise I'm apt to think its a franchise or something...
Media Metaphors Inc.... Can I be a franchisee? Tanta, how much are you charging?
Does this mean that people are skipping the posts to jump right into comments?
LOL I actually read the damned thing & still muddled the MMI. I always knew I should be a reporter. Or run for congress.
Oh well, maybe things will improve after my second cup of coffee.
I would vote dryfly for Congress! in an instant.
"Mixed" metaphor is a subset of Muddled Metaphor. We used to see a lot of mixed metaphor, but lately we have an outbreak of merely confused metaphor, such as the implied comparison between a "laying hen" and a nonperforming security, which may be an internally consistent metaphor (it's all meat to Ackerman), but it's just a consistent way of being unclear on the concept. Or something.
Tanta,
I agree I don't think that Congress or for that matter the world bankers know what to do about the credit crises.
How does a fed funds cut help homeowners with ARMS indexed to the LIBOR?
Just how flexible can a servicer be when the owner of any given mortgage, could be several individuals who own various derivatives in the same mortgage?
How does a fed funds rate cut help with the frozen ABCP held in a bank conduit?
How does it help attract foreign investors to US Government debt when they are beginning to sell because they are losing value as the dollar declines against the major world currencies?
And what of repricing debt in the world markets? Not to mention the covenant lite loans for M&A's and LBO's.
How does it restore confidence in debt instruments?
How does it help the US savings rate? Why save if the dollar continues to lose value and you are taxed to the max? Who can save with the high rate of real inflation, and not the phony core rate?
How does a fed funds cut begin to stop the proliferation of asset / credit bubbles?
It is way to early for this here in the Pacific NW.
MOT - two points on ac's post (link ac?)...
1) Some of the items they listed there are NOT commodities or not easily transported & import/export commodities:
I. E. Fresh vegetables & meat & poultry.
Certainly not easy to transport with China's infrastructure.
2) There has been rumblings that maybe China is having difficulty 'sterilizing' all the USD its taking in.
Setser has been looking for this to happen for a couple years now. If the Chinese balk at buying USD debt & equity or have trouble convincing their people to aggressively save by buying matched RMB denominated bonds (paired to the USD debt & equity)... then they get inflation, LOTS of inflation.
Or they have to let the RMB appreciate vs USD to cut back on the RMB created.
One or the other.
MMI doesn't stand for Morbidity and Mortality Index ?
If it didn't before, it will very shortly
Tanta
I would be very grateful for help with a few questions (below) about foreclosure. These are issues that will increasingly be important in the months to come and I expect to see a lot of inaccurate and misleading stories in the press.
How does the interplay between first and second liens on a property affect the loss mitigation, foreclosure and REO processes?
How is the relationship designed to work, and what actually happens?
In particular, if a borrower defaults on a second, can and does the second lien holder foreclose on the property?
What then happens to the first lien holder? Who is most likely to attempt a foreclosure alternative (mod or short-sale) and do the first and second lien holders generally coordinate actions?
Same questions if the borrower is paying on the second, but defaults on the first....is that even a realistic scenario?
Do first lien holders generally know if the borrower takes out a second at some time after the primary mortgage was originated?
Any help would be appreciated. Thanks!
Many a slop betwixt the cow & the hog
May we add "a child drowning while a father looks on with cold indifference, nay gleeful hatred" to the MMI?
Just checking, cause I'd be long if we could.
Cheers,
prat
In particular, if a borrower defaults on a second, can and does the second lien holder foreclose on the property?
Any lender with a lien can FC. That's the whole point of filing a lien. Second lienholders can FC, but they do not frequently FC.
What then happens to the first lien holder? Who is most likely to attempt a foreclosure alternative (mod or short-sale) and do the first and second lien holders generally coordinate actions?
The first lienholder has to get paid off first in an FC by a second lienholder, in order for the second lienholder to take clear title to the property. It usually isn't worth it for the second lienholder to FC unless it buys out the first lien first, so that it is now the only lienholder. Otherwise the second lienholder hopes there's enough left after the first lienholder FCs to pay some or all of the junior debt. The second lienholder cannot prevent a first lienholder's workout except by foreclosing, which usually isn't economic for it. OTOH, first lien holders are highly unlikely to work out a loan with a delinquent second lien. A modification legally requires the second lienholder's cooperation, because it's a renewal of the first lien, and unless the second lienholder agrees to "subordinate" its lien to the modification agreement, the mod becomes a third lien instead of a modified first lien. When you hear people talking about endless "delays" in getting mods done, it's often for technical legal reasons like this: waiting for a second lienholder to record a subordination agreement.
Same questions if the borrower is paying on the second, but defaults on the first....is that even a realistic scenario?
Nearly all second liens originated these days have a "cross-default" provision, such that a default on the first counts as a default on the second. First lienholders can pursue judicial foreclosure in a case when the first is current but the second is defaulted, on the grounds that it is protecting its security interest in the property per the terms of the mortgage document.
Do first lien holders generally know if the borrower takes out a second at some time after the primary mortgage was originated?
Junior lenders will generally send notification to the senior lender's servicer, precisely because the junior lender wants to be notified in the event of default on the first. The problem in the industry is that tells you that a lien was filed, but doesn't give you a reliable way to calculate CTLV on the original loan, since junior lienholders aren't required to report a balance to the senior holder every month. Just the original fact of the junior lien.
Food Network.com
Smoked Pork Ribs
Smoked Pork Ribs Recipe : Paula Deen : Food Network
Tanta
Thanks--much appreciated.
Now this morning I heard something on the news about Ohio's attorney general blaming the rating agencies and claiming he was willing to sue them and use the proceeds to help subprime borrowers who lost their homes. Somewhere in there seemed to be the belief that the malfeasance of the rating agencies caused subprime buyers to lose their homes.
I hope it was my sleep deprived brain tricking me because that's batty. I could see how someone who bought a AAA rated CDO sandwich full of subprime goodness could believe they had a basis for a suit (doesn't mean I think they should win but I can connect the dots between point A and point B). But to claim that the rating agencies misrating a CDO caused a mortgage in the underlying asset pool to foreclose seems batty.