Maybe now everybody can keep their nannies...

When the Going Gets Tough, Some People Lay Off the Nanny

"The luxury of household help, often in the form of immigrant labor, blossomed with the thriving economy. Some nannies came to oversee entire households. Now, the dive in the value of stock portfolios and real estate has caused even prosperous families to review their finances and make new plans. People unaccustomed to doing their own housework are dealing with dirty laundry and mowing their own lawns."

My favorite part...

Mrs. Sirof's daughters took the separation badly. They inquired incessantly about "Vita," as they called her. Normally a lively child, daughter Addie became sad and withdrawn. A doctor Mrs. Sirof consulted suggested renewed contact with Ms. Monterrosa.

"I try to have Alba come once a week," says Mrs. Sirof. She says she feels "horrible" about laying off Ms. Monterrosa. But there are some perks she isn't willing to give up. "Nothing deters me from my Botox treatments."

When the Going Gets Tough, Some People Lay Off the Nanny - WSJ.com

Thursday, December 11, 2008
Crash, 'Treas', Dummies

(Landlord called me early this morning saying I needed to go down into the Anonymous Monetarist storage room because he heard a 'beeping sound'. Curious, I complied.
Much to my surprise, in the back, was the source of the disturbance - in a box labeled 'Scherbius's stuff' - a machine whose instruction manual I had long ago memorized, dusty and emitting a call for attention.
Brought it up to the office and turned it on, stale smell of metal heating up was a bit offensive but it seemed to be in good working order. To test it out I typed in the recent Testimony Of Interim Assistant Secretary For Financial Stability Neel Kashkari Before The House Committee On Oversight And Government Reform, Subcommittee On Domestic Policy: - AM)

Chairman Kucinich, Ranking Member Issa, members of the Subcommittee, good morning and thank you for the opportunity to appear before you. I would like to provide an update on the Treasury Department's actions to stabilize our financial markets and restore the flow of credit to the economy. We have taken action with the following three critical objectives: one, to provide stability to financial markets; two, to support the housing market by preventing avoidable foreclosures and supporting the availability of mortgage finance; and three, to protect taxpayers.

(Piacere. It is a deep and moving honor to discuss the waste mangement business with all of youze.)

We have acted quickly and in coordination with the Federal Reserve, the FDIC, OCC and colleagues around the world to help stabilize the global financial system and it is clear that our coordinated actions have made an impact. Before we acted, we were at a tipping point. Credit markets were largely frozen, denying financial institutions, businesses and consumers access to vital funding and credit. Financial institutions were under extreme pressure, and investor confidence in our system was dangerously low.

(These are trying times for this thing of ours. Credit markets were saying 'va fa napole'. The Borgata was approaching a stage of crisis...)

At the same time, we recognize that a program as large and important as this demands appropriate oversight. We are committed to transparency and oversight in all aspects of the program and continue to take strong action to make sure we comply with the letter and the spirit of the requirements established by the Congress, including regular briefings with the Government Accountability Office, the Financial Stability Oversight Board, and the Inspector General. We are also committed to continuing to meet all of the reporting requirements established by the Congress.

(Let us not forget the Code of Silence. Anti-Trust violations aside... Those that go oobatz get pinched.)

As the markets rapidly deteriorated in October, it was clear to Secretary Paulson and Chairman Bernanke that the most timely, effective step to improve credit market conditions was to strengthen bank balance sheets quickly through direct purchases of equity in banks. In early October, after consulting closely with Chairman Bernanke, Secretary Paulson explained that Treasury would use the financial rescue package granted by Congress to purchase equity directly from financial institutions – the fastest and most productive way to use our new authorities to help stabilize our financial system. Working with our banking regulators, we have now approved dozens of applications from banks across the country. We will soon post the term sheet for private banks. We feel very strongly that healthy banks of all sizes, both public and private, should use this program to increase lending in their communities.

(Our capo in his esteemed wisdom gave the crew a taste without excessive vig. There was initally discord on points and even unfortunately a necessary message job for those that had not in the past paid tribute. But that jamook Fuld got his, buon' anima.)

With a stronger capital base, our banks will be more confident and better positioned to play their necessary role to support economic activity. Further in support of this goal, just two days ago, our banking regulators issued a statement underscoring the responsibility that banks have in the areas of lending, dividend and compensation policies, and foreclosure mitigation. Treasury commends this action and believes it is critical to focus on the importance of prudent bank lending to restore our economic growth so that we do not repeat the poor lending practices that are a major cause of the current economic problems.

(The shylock business continues.)

On housing, we have worked aggressively to avoid preventable foreclosures, keep mortgage financing available and develop new tools to help homeowners. Here, I will briefly highlight three key accomplishments:

One, in October 2007, Treasury helped establish the HOPE NOW Alliance, a coalition of mortgage servicers, investors and counselors, to help struggling homeowners avoid preventable foreclosures. Through coordinated, industry-wide action, HOPE NOW has significantly increased the outreach and assistance provided to homeowners. HOPE NOW estimates that nearly 2.5 million homeowners have been helped by the industry since July 2007; the industry is now helping about 200,000 homeowners a month avoid foreclosure.

Two, we acted earlier this year to prevent the failure of Fannie Mae and Freddie Mac, the housing GSEs that affect over 70 percent of mortgage originations. These institutions are systemically critical to financial and housing markets, and their failure would have materially exacerbated the recent market turmoil and profoundly impacted household wealth. We have stabilized the GSEs and limited systemic risk.

Three, just three days ago, HOPE NOW, FHFA and the GSEs achieved a major industry breakthrough with the announcement of a streamlined loan modification program that builds on the mortgage modification protocol developed by the FDIC for IndyMac. The adoption of this streamlined modification framework is an additional tool that servicers will now have to help avoid preventable foreclosures. Potentially hundreds of thousands more struggling borrowers will be enabled to stay in their homes.

(The necessary themes musciata are expressed by us. The cafones and poveretts, for whom the books are always closed have been told 'col tempo la foglia digelso diventa seta'.)

On Wednesday, Secretary Paulson outlined three critical priorities and related strategies for the most effective deployment of remaining TARP funds: one, to further strengthen the capital base of our financial system; two, to support the asset-backed securitization market that is critical to consumer finance; and three, to increase foreclosure mitigation efforts. These priorities are necessary to reinforce the stability of the financial system so that banks and other institutions critical to the provision of credit are able to support economic recovery and growth, and to help homeowners avoid preventable foreclosures.

(Gentleman, this Golden Age is quickly coming to an end. It is imperative upon us to complete our spring cleaning for it is possible that there might be mannagge with the tizzun. Already the fanook is getting all chiacchierone on the shy. That NY strunz. This is causing much agita I know for there could be predicates. None of us wish to be guests of the state. This is not time to eat alone.)

Our system is stronger and more stable than just a few weeks ago. Although a lot has been accomplished, we have many challenges ahead of us. We will focus on the goals outlined by Secretary Paulson and develop the right strategies to meet those objectives. Foremost among these will be to ensure that the financial system has sufficient capital to get credit flowing to consumers and businesses. Thank you and I would be happy to answer your questions.

(First though, Madonn' I'm hungry ... gabagool?)
Posted by Anonymous Monetarist at 6:31

Yesterday I was contacted by a friend that asked what they should do when asking for a loan mod. I'm not an expert at this but some here are. CAn anyone provide some information or a site where I can direct my friend in order to work up a script so to speak?

Again I have no idea where to send for this...I also am not aware of the specific details of there loan.

Any info is helpful. The irony is that there loan is with WFC.

Ciao
MS

you probably have to have a 700 fico for it...
serf Alan Greenspend | Homepage | 12.11.08 - 10:40 am | #
I think the best rate is for FICOS over 720, actually.

koan0215

Yeah... I think 700 is actually considered "sub-optimal".

I believe rates were 2% during the depression.

koan and Darth-

Thanks for input. I forgot about the CR posts (tanta) on the subject.

From what I gather I think they are just looking for the "pony" at least that's what I glean from it. I don't think they are in dire straits but as has been said before...if they give it out...why not try.

Many thanks

Ciao
MS

yogi-

You and Hoop are seeing what you want to. I'll say it again...all I said was that both groups had done enough damage to what we call a free market. Nowhere in ANY of my comments did I say that either have destroyed it. That was inferred by Hoop and now you've picked it up.

Get over it and try reading for a change.

Ciao
MS

This is all straightforward. Crooks are easy to spot. Liar loans, upside down, cheap money, unemployed, fraudster...get them all in the same boat and then drown them with a devalued dollar.
The key is to stay off 'dat boat, but blessum, Ben is takin' all comers.

Free Market Damage Inflicters:

1. Arabs
2. Jews
3. TBA

Ciao
MS

cd,

Rich- I respectfully eat my words that SRS would not get back below 76....good call..

Thank you for being humble. I bought a tiny bit of SRS yesterday mainly for team spirit. Go SRS!

As long as the NY Fed keeps trying to micro-manage the stock market in a narrow range, using mainly the SPY, it's going to be hard for double shorts to make money.

But always this kind of leveraged govt. intervention leads to more chaos in the end.

I'm out of EEV now in favor of the single short EUM. But I'm watching and if EEV gets down to 50, I plan to pounce.

11:02....nice try Yogi....

Check you IP.....

Ciao
MS

If they can push the long-rates down to the 4% level, we'll have a real interesting economic experiment on a grand scale, i.e., if you push really hard, can you push a string?

o you did....

You know there's this thing called I.P. addresses. You should be aware of that when you post under a different name (namely mine).

I'm sorry this hit a nerve with you but at this point it's your problem...please stop making it everyone else's too.

Ciao
MS

Most people have no idea how boring they are.

I expect to be preoccupied the rest of the day, so I will make my monthly "Realty Trash" comment in this thread.

Yogi,
MS adds much to this blog. Please do not throw rocks.

Wells Fargo is offering a 5.125% 30 year fixed rate mortgage (conforming limit) with 1 point. I'm sure others are offering similar rates"

I have 4.875% with no points available today....

Ben, I commend you on your success over recent days at achieving your lofty goal of driving up oil prices.

Mission Accomplished!

serf hopeinsd - knifecatcher!

Darth Paulson writes:
I wouldn't worry about Botox users suffering much in the way of brain damage.

You're right DP. If you're dim enough to inject a neurotoxin directly into your skull, you don't have too far to fall...

Yep, knew I would hear that. Trust me that I have considered everything involved in the choice and will be happy if we get this place at the price we offered.
serf hopeinsd | 12.11.08 - 11:26 am | #

You know I'm only kidding. As long as your intent is to live in the house and not consider it as an "investment".

I am still renting and now unemployeed. Having a mortgage and requiring to re-locate for employment at this point in my life could have wiped me out completely.

Sitting now with 5 years of reserves, I hope it lasts!

It's too bad that people, when presented with the third rail syndrome, can't or won't see things for what they are worth. Whatever your opinion is....it's valid.

I can at the very least understand and accept that fact. I stand by my original comment. You may infer whatever you like, it's your right. But just remember everyone else has to read it too.

Key point that.

Ciao
MS

But I ain't raising a family in an apartment.
Darth Paulson | 12.11.08 - 11:32 am | #

With a 1 year old almost walking now, the 1200 sqft unit I am in is getting pretty small.

But with the lack of job, I am forced to wait it out before jumping into debt.

"I am actually putting in an offer on a house right now....."

Congrats....I hope your back yard has good southernly sun (for your garden) and your town allows chickens & goats/a cow....

Effective Demand, I figured as much, but was unsure. This is why I told her to stop pressing the closing costs percentage and go ahead with the deal.

China slowdown
Video - CNBC.com

Can anybody explain how these lowered rates impact the forthcoming adjustments to mortage loan rates in the ALT-A category?
JimPortlandOR | 12.11.08 - 11:44 am | #
Jim, all arms are tied to LIBOR or a similar index. They normally included a clause that ensures that rates CANNOT adjust downwards on the initial adjustment (which is normally capped as well). This does nothing to help those ARMS.

But I ain't raising a family in an apartment.

Why not? The children won't mind until they're teenagers - and at that point the reason they mind is probably not something you approve of.

Relitters have done a great job convincing people you need lotsalotsa space to be happyhappyhappy. But you don't. Kitchen, family room, and bedrooms are all that ever get used in most houses and they don't need to be big.

Thanks Koan, I was wondering that myself, mine adjusts in February...

Still need a loan for CA buyers (non conforming)

A man who owns a mortgage company told a friend of mine recently that rates are going to 4%.

Thanks Koan, I was wondering that myself, mine adjusts in February...
Comrade Kristina | 12.11.08 - 11:49 am | #
Now's the time to refi if you have any equity left.

God, just logged on. Could not tell if this was a new or old thread.

Children!

Where is Sebastian?

Thanks CR that whole dialogue was growing tiresome, and thank you for this great site!

Best to be honest, let the pigmen be liars...

your slw broke thru 50sma, still like it...or all depends on dollar?

I am holding SLW until the cows come home gold-plated.

Gold is getting backwardated now, in addition to silver.

About 3 a.m. last night, I was lying there thinking about some rich older folks I know who have a lot of money (maybe more than a million) in CDs. I was thinking how they should have at least a little bit of silver or gold, preferably physical.

I'm thinking...rich older folks all over the world are lying there thinking the same thing. Relative to the "money" washing around in the world, it wouldn't take much to squeeze gold. It would take a pittance to squeeze silver. If you wanted to squeeze gold, you would start with silver and put the fear of God into Gold shorts.

--
"Jas, where are refi rates headed? I can get 4.75%/30 yr. fixed. Should I hold off?"

Ben Dover,

I expect the mortgage rates to go below 4% and likely to 3% during 2009-10.

Jas

The kids unhappiness at losing their effective mother doesn't count compared to biomom's unhappiness of course.

Tho if you really can't afford the nanny, you can't afford the nanny.

The city is about learning how to stand out, and the country is about learning how to find your place.

You clearly didn't grow up in a city. I did. Believe me, if you didn't know your place, you had to find it fast.

And I am not talking about gangs or crime, at all. My neighborhood was safe as a nunnery when I was little. I'm talking about everyone for nine blocks around knowing your name, your family, and your place in the world. Which included how much you were contributing, or not.

Koan, yeah I know the problem is my husband is laid off. Union says they have work coming up in January so I have my fingers crossed. I think I have some equity left but it's close. Appraised for 210K Feb of 2006, owe 129K. I'm in Florida though, we've been hit hard here.
Comrade Kristina | 12.11.08 - 12:00 pm | #
Good luck to you, I mean it! The good news is that unless there is a spike in LIBOR between now in Feb. your rate either may not adjust or only adjust slightly. If it was tied to 6 month LIBOR I think the fully indexed rate will fall somewhere in the 5-6 percent range on adjustment.

Shnaps, thanks, a friend of mine here is a Realtor she referred me to a lady that works closely with FHA and HUD, I'm going to give her a call and see what I can come up with. I've always paid my creditors, sometimes had late payments but nobody has ever not gotten paid. I am employed with the same company for 4 years now etc. So I have my fingers crossed somebody will work with me.

Markel - What 4.5% rates?

From what I read, it's 5.125% for 30-yr fixed conforming with 1 point paid at closing.

you're saying that rate is not being determined by the market? If so - dude - remove the tinfoil.

Next... the landscaping service?
Bob Dobbs | Homepage | 12.11.08 - 11:57 am | #

Well, if she won't quit the botox, it's a good bet she's still springing for the brazilian . . . < rimshot >

CW currently has 4.625% 30 year at par with 1% orig fee.
SL Mtg Brkr | 12.11.08 - 12:06 pm | #
Good God that's low. Too bad everyone I know is underwater on their homes here in OC.

Not clear what will happen with them, because they won't work as rentals because the rent will be out of the market. Going to be major failures for those developers.
JimPortlandOR | 12.11.08 - 12:11 pm | #
I guess the shine is off the Pearl District huh? I remember that there were some new gentrifying condo deals in process for North Interstate when I left - thank God I'm not a developer on one of those!

there is still no demand--- it will take A LOT MORE than these rates- housing stimulus lobbyed by home builders want 2.99 % and major tax credit... http://www.charlottecommunitiesonline.com/2008/12/09/nahb-fix-housing-first-a-lobbying-effort-that-thinks-big/Fix Housing First about what will be needed to spur demand

Thanks shnaps, I'll check him out.

Darth - if you like the country, live in the country -

In a small house. A large house has even less value in the country than in the city. You have privacy and space galore in a 300 sq. ft. shack there. There are many places in the country with dirt-cheap houses, right now (and all through the boom, for that matter, which was for metro area and vacation houses).

So move! What are you waiting for?

Let's see, what were we doing in 2004?

...Oh yes, destroying the country.

Back to 2004, one more year to go and we can invade Iraq again.

@awgee | 12.11.08 - 12:04 pm |
"folks taking delivery on the COMEX ... having an effect?"

Fact is, if they were to have an effect, it would have been 10 days ago.

As of this morning, there are 961 contracts, or 96,100 oz. remaining open for December. There are over 2 million ounces registered physical available to satisfy delivery.

That is not to say that this gold move does not have real motivations. In fact, that says the opposite.

Anonymous writes:
"The Seinfeld Economy"
Darth Paulson
A GDP about nothing.

I was thinking "Do the opposite."

Time to start flipping houses again! Party on Wayne!

Through all this bad news, stock market is steady as a rock. Miraculous!

Anyone want to comment on why the currency is being hit so hard today, while equities are in flatline? How does currency manipulation have feedback into equities?

--
"Trying to find a link... coworker said that Americans reduced their debt levels for the first time on record."

Brontide,

As usual I was a bit early but Peak Debt (TM!) is here. And deflation can't be far behind.

Jas

Holy crap, USD - YEN down to 91.97. I wonder what happens when it breaks 90.

Jas, I was under the impression that deflation was already here...

Re: Currencies

Ask yourself if given a choice would you rather hold Yen at 0% or Dollars at 0%?

Any questions?

Oushu no hana takai keizai was itsumo shokikan no junbi da. Nihon was chokikan de, shibaraku no itami o taeru hitsuyo ga aru keredomo, Shorai wa wareware no...

Markel, spare me.

koan0215, that's what he is referring to on his suggested 'research topic' #1. The big Fed MBS purchase last week. Which apparently, if the Fed buys any MBS, then the "market" is sufficiently tainted such that it is no longer a "market" according to Markel. Or something like that.

As to his 'research topic' #2) precisely what announcement led to speculation of 4.5% rates coming soon.

This is also not the market - as most people, including the Shnapster, define the market as the rate at which participants are currently transacting. Rather, that would be speculating about the market in the future. Which isn't what I'm doing.

"I expect the mortgage rates to go below 4% and likely to 3% during 2009-10."

Jas

I respectfully disagree, Jas. The bogey is the huge demand for funds from the Fed/Treasury which, in the event of insufficient supply, will push interest rates up hard and fast. When? Don't know. But it will be unexpected and quick IMO.

koan0215 writes:
Can anybody explain how these lowered rates impact the forthcoming adjustments to mortage loan rates in the ALT-A category?
JimPortlandOR | 12.11.08 - 11:44 am | #
Jim, all arms are tied to LIBOR or a similar index. They normally included a clause that ensures that rates CANNOT adjust downwards on the initial adjustment (which is normally capped as well). This does nothing to help those ARMS.
koan0215 | 12.11.08 - 11:47 am | #

Not necessarily. I had a 5/1 ARM that was linked to the one-year Treasury (1yrT + 2.75%). It could very well adjust downward, and in fact, the docs I got when I closed the loan estimated a lower monthly payment than the fixed period's (the 5 years) payment.

Meanwhile, I understand that (prime) Jumbo 30YFRMs are blowing up, hovering between 8-9%.

My banker just called (BAC) about a re-fi--30 year fixed at 4.625 with one point and 5.25 with 0 points--closing costs $1000-1200. Current rate is 5.825.

Can one of you mortgage gurus give advice? Thanks.

Can one of you mortgage gurus give advice? Thanks.

hit it.

Shnaps--great, I will call him back. Which do you think--the 4.625 or the 5.25?

Thanks.

I am now on hold for about 45 minutes waiting to talk to someone at citimortgage to refinance my current 6.5% 15 year loan. They say the call is importatnt to them on the recording but I don't believe them. I think they have put me into perpetual hold, maybe until the rates come up a little.

But what about Jumbo rates..... hardly at lows, in fact opposite.