SEC Said to Back Money Funds on Changes to Protect Investors Bloomberg.com
By Jesse Westbrook and Christopher Condon
June 17 (Bloomberg) -- The U.S. Securities and Exchange Commission may support most of the proposals by asset managers to make money-market funds safer after last year’s collapse of Reserve Primary Fund led to a run on the $3.5 trillion industry, according to people with knowledge the matter.
The agency will leave intact rules that allow money funds to carry a stable $1 share price, said the people, who asked not to be identified because the SEC may revise its plans. While Chairman Mary Schapiro said May 4 that the price rules may need to be altered, the agency instead will seek input on the issue from fund managers and investors, leaving a decision for later.
Ooof! South Cakalacky getting stuffed as well. Never been a lot of income to tax there anyway outside of the bankers in Charleston and the fixed income retirees in Hilton Head, but still...
All the car-people are going to think it's trending in the correct direction... where's my green shoots?
So what's up with Utah, Alabama, and North Dakota?
North Dakota = Oil? I guess Alaska would have something similar? I suppose that's why Louisiana is also not as bad?
Alabama and Utah have got me; same with West Virginia (coal or something?).
Lucifer,
Wouldn't the game be to get people into money market funds; just the nominal value of those dollars decreases... I thought money-market funds were supposed to be low risk by law anyway?
Precisely how does a state lose over half of it's imcome tax payments?
Stunning.
Curious though, about whether the states ever collected income tax revenues from illegals (doubtful) or from legal greencard immigrants who've returned home? Or something to do with lessened income to retirees?
PA's only down about 15%. With all of our retirees, that'll accelerate.
The reality is that the lagging depression of the 30s was the lack of local dollars to pay for things. It is no diffferent now. The question is how much and how far.
The reality is that the lagging depression of the 30s was the lack of local dollars to pay for things. It is no diffferent now. The question is how much and how far.
Interesting question. What's the status on Cali scrip? Any?
Well since I'm unemployed I will be paying a lot less in income tax next year. I also don't spend much either so that new additional 1% sales tax increase isn't really noticeable. I won't be replacing my paid off car, and I will probably be bartering my homemade goodies for fresh eggs and veg at the farmer's market. Wow, three weeks without a job and I'm going native.
June 17 (Bloomberg) -- Here’s a plan to rescue Starbucks Corp.: Stop focusing so much on the U.S. and other developed markets.
Americans who used to take breaks at the mall by indulging in $4 lattes don’t do much recreational shopping these days. People who relied on double-shot espresso macchiatos for a jolt before work either lost their jobs or worry they’re about to.
Youshouldaknowed (profile) wrote on Wed, 6/17/2009 - 11:41 pm
Well since I'm unemployed I will be paying a lot less in income tax next year. I also don't spend much either so that new additional 1% sales tax increase isn't really noticeable. I won't be replacing my paid off car, and I will probably be bartering my homemade goodies for fresh eggs and veg at the farmer's market. Wow, three weeks without a job and I'm going native.
LOL. Yeah, people without jobs (i.e. income) tend to pay a lot less income tax. And since they don't have money, they can't spend it, so they pay much less sales tax. They also tend not to buy new cars, or even trade-up, and tend not to buy different homes, assuming they are even able to keep the one they're presently living in. Funny how this all works isn't it? It is almost as if keeping the system running means the capitalist class (or somebody) has to create or sustain jobs via businesses they own rather than shoveling it into mon(k)ey markets, offshore bank accounts, and speculative investments. But if they did that, they might lose some of it!! We can't have that. Best of luck to you, though.
Your comments about starbucks becoming a venue for recruitment in MLM scams..
They are promoting another scam - decoupling
"Starbucks should forget about expanding in developed markets, where savings accounts now have more cachet than cappuccinos. Instead, it should target Brazil, where high-end coffee is creating a buzz."
//Lucifer, I saw the Starbucks story but I'm not sure how it impacts me.//
Curious though, about whether the states ever collected income tax revenues from illegals (doubtful) or from legal greencard immigrants who've returned home? Or something to do with lessened income to retirees?
Homedad;
In a previous life I was a lowly insulation contractor. We had multiple employees (who all had SS #'s mind you that was the extent I had to go to) who were illegal and all paid their taxes. Hell every contractor I knew had them. They'd all claim 8, get as much as they could in their check and be done with it. I always figured the state/fed actually loved them because they never filed a return to get the rest of it back.
"PK: How is it possible that Germany, which did not have a house price bubble, is having a steeper GDP fall than anyone else in the major economies?
The answer is that they depended upon exporting to the bubble regions of Europe, so they actually got side-swiped by the loss of those exports worse than the bubble regions themselves got hit.
It’s Germany on a global scale that is the concern. We worry about the drag on world demand from the global savings coming out of east Asia and the Middle East, but within Europe there’s a European savings glut which is coming out of Germany. And it’s much bigger relative to the size of the economy.
WH: And on top there is an unique and unaddressed huge potential banking crisis. The Germans pride themselves on their three-legged banking system, but it is incredibly interlinked. The IMF warns that Germany could have to take at least $500bn of writedowns, which its banks have not begun to recognise. German banks hold a trillion dollars - maybe more - of maturing collateralised debt obligations that can only be refinanced by crystallising the losses. We’ve had RBS and you’ve had Citigroup. Germany’s GDP will fall 6% this year - <b>before the banking crisis has hit it</b></i>.
And that’s just the CDOs — it doesn’t include probably another trillion dollars of loans to central and eastern European corporates and sovereigns, which are nowadays looking extremely toxic. Meanwhile, the political leadership in Germany is in denial, acting for all the world as though the loss of central bank independence is the biggest problem facing the global economy.
The base-case scenario, then, is that Germany goes Japan — and drags the rest of the Eurozone, if not the entire world, into a Japan-style Lost Decade. How do we stop that from happening, especially absent political will in Berlin? I have no idea."
Finally, US pundits are recognizing Germany's problems...they're huge.
broward (homepage, profile) wrote on Wed, 6/17/2009 - 11:50 pm
Bingo.
The tighter they grasp the gold, the quicker it slips through their fingers.
As it should. Money doesn't grow on trees. Too bad that compensation (if it can be called such) has become a function of proximity to the spigot instead of the results of risk taken successfully faced with the real possibility of personal loss.
OT: A couple of people were wondering where dryfly was these days. He's been on the road travelling here to Monterrey Mexico. I spoke with him earlier tonight. He hasn't had an internet connection to catch up, but he sends his regards to all.
California has an exremely progressive income tax structure. Income under ~$20,000 (or those with a lot of dependents) has no tax but for those with income > ~$100,000 (MFJ) the marginal rate is 9.3%, so a modest change in income for the higher earners can impact the tax greatly. This works in both directions, which is why in "good" times the money rolls in and "must be spent."
Capital gains are taxed at regular rates so when they change (up or down) there is also a big impact. Based on Wall Street's performance in 2008, it's not surprising that capital gains would tank, and take taxes with them.
There is a big change that will take effect when filing CA taxes; for 2009 the tax reduction for each dependent will drop by $300. This will have a huge impact on larger families at almost any income level.
BEIJING (AP) -- China has imposed a requirement for its stimulus projects to use domestically made goods -- a move that could strain ties with trading partners after Beijing criticized Washington's "Buy American" stimulus provisions
"Brazilian scientists have identified a new strain of the H1N1 virus after examining samples from a patient in Sao Paulo, their institute said Tuesday....The mutation comprised of alterations in the Hemagglutinin protein which allows the virus to infect new hosts"
No, he's reconning new manufacturing locations for one of his clients.
For anybody that does want to bail, it's actually a pretty good location to head to. Lots of opportunities: manufacturing, construction, banking, agriculture, goat herding, drug trafficing....
"Don't Stop Believin" was a song tailor-made for a parody... unfortunately I'm not feeling up to it... "World bankers in a smoky room" has a nice ring to it though. No need to change the chorus. Actually a lot of it works unchanged. Especially this part:
Working hard to get my fill,
Everybody wants a thrill
Payin anything to roll the dice,
Just one more time
Some will win, some will lose
Some were born to sing the blues
Oh, the movie never ends
It goes on and on and on and on
By: Jeff Cox, CNBC.com | 17 Jun 2009 | 05:06 PM ET
US banks could become less competitive—and less profitable—from President Obama's proposed financial overhaul, analysts say.
As details of the sweeping plan emerged, there was worry among investors that the sector—which has been recovering in recent months from last year's financial crisis—could take another hit.
Deflationary Jane (profile) wrote on Thu, 6/18/2009 - 12:09 am
In northern CA, it's not unusual for people to go from 1800 a week to 1800 a month (unemployment). I'm just surprised AZ beat us
Hmm... 1/12th income. Something very astrological in that. That's gonna make median homes into a speculative vehicle with leverage a hedge fund would be proud of!!!
edit: 1/4.3 as helpfully pointed out below. Leaving evidence of prior stupidity for abusement/amusement purposes
Sometimes bad news, any news, is good enough for Wall Street, Cramer told viewers on Wednesday. The Street fears uncertainty more than almost any other factor, and it often sparks a sell-off in whatever stock or sector’s in question. That’s why health care lately had taken such a beating – no one knew what reforms President Obama had planned.
The big winner of the Obama financial-regulation plan appears to be the Federal Reserve, which becomes the consolidated supervisor of large, systemically important banks.
This is like the fox guarding the henhouse. After all, the Fed’s overly loose money policies created the asset bubble — including housing, commodities, and energy — in the first place. Near-zero interest rates, huge money growth, and total disregard for the plunging dollar are what set up the housing boom and the unfortunate overleveraging by consumers, mortgage borrowers, and Wall Street securitizers.
One thing I noticed about CA is that when they were talking about issuing Cali-script for tax refunds most of the people I know increased the number of exemptions they claimed for state tax withholding. More unintended consequences.
NEoWave Institute's Glenn Neely is forecasting the largest vertical drop of the decade for the S&P 500. Neely predicts the stock market will decline 50% in the next 6 months.
Good news for med students worried about their debt loads: Physicians coming out of residencies last year reported increases in their starting salaries in many specialties, according to a survey by the Medical Group Management Association, a trade group for medical groups.
Here are the specialties with the biggest jumps in 2008 from a year earlier based on data from 3,520 physicians:
Neurology: $200,000 to $230,000 –- up 15%
Non-invasive cardiology: $350,000 to $400,000 – up 14.29%
Anesthesiology: $275,000 to $312,500 – up 13.64%
Emergency medicine: $192,000 to $215,040 – up 12%
Internal medicine: $150,000 to $165,000 – up 10%
President Obama may want Americans to have universal health care, but health insurers say they want to continue their practice of canceling the coverage for some sick individuals, called rescission, reports the L.A.Times.
A congressional investigation into three insurers found that they canceled the coverage of more than 20,000 people in a five-year period, allowing the companies to avoid paying $300 million in claims, the paper reported.
Purely anecdotal, but I have quite a few friends here in AZ that were formerly in the housing/development/realty/flippin' segments. Many were making in the low to mid 6 figure range. Now they're lucky if they still have a job and pull in 50K.
It was great fun while it lasted. I'm gonna miss their Cardinals season tickets the most.
Walmart's the single largest employer in AZ, albeit the low wage king, too. I wonder what portion of the remaining income taxes WallyWorld accounts for?
"Finally, US pundits are recognizing Germany's problems...they're huge. "
Since when exporting more than importing became a problem? Prudently saving for the rainy days also is now a PROBLEM?! Yes, Germans will have a Great Recession but Americans will have The Great Collapse while yapping about other people's problems which may or may not exist.
Dryfly is in Monterrey, Nuevo Leon? Maybe a good site for his businesses, but a high mountain valley with terrific pollution. My friend's Schd 40 PVC was brittle and discolored in a year from the ozone and UV exposure. But they are business friendly!
This thread is decidedly above average, although it could certainly use more dryfly.
Tons of illegals paying income tax in Arizona, plus tons of developers, realtors and mortgage brokers, all went to zero.
Arizona had a competent governor until recently. The state and local governments instituted serious budget cuts quicker than a lot of places, so the hole isn't quite as deep as it could have been. And we have all the different kinds of taxes, so income isn't everything. But it's bad, with no end in sight. Our legislators, collectively, are both stupid and insane, currently spending a lot of time debating whether they should expand the right to carry guns in bars. Our public schools are likely to lose their prestigious 48th place ranking.
"Since when exporting more than importing became a problem?"
um... when consumer markets overseas totally dried up and died?
but i largely agree - and the biggest thing germany has going for it as that most of them are renters that never bought into the 'homeownership' scam as some kind of form of social mobility
OoooOOoo yeah, I'm in the crash and burn zone, and it ain't pretty - currently the Govenor has filed suit in an effort to force the state legislature to send her the budget - Gov. Brewer sues over delay in sending budget bills
"Emergency medicine: $192,000 to $215,040 – up 12%
Internal medicine: $150,000 to $165,000 – up 10% "
Nice example of using reserve currency status to the max. Median salary in hospitals in Germany is about 43000 euros/ 60000 dollars (including all employees).
In terms of AZ, one shouldn't forget that the majority of the state economy was historically based on chicago mob money being recycled through real estate, with a generous portion of outright fraud on the side.
When you understand that Rehnquist was just another mob lawyer, America's recent history makes a bit more sense.
"A 2004 analysis done by the Economic consultants at the National Economic Research Associates came up with the following summary comparison of average Hospital salaries earned by Doctors :
Arzt (doctor) : 3420 - 4200 Euro/ up to 5880 dollars
Facharzt (specialist doctor like plastic surgeon): 4450 - 5600 Euro= up to 7900
Oberarzt (head of department/rassistant medical director ) : over 5650 Euro, 7900 dollars
leitender Oberarzt (chief surgeon): over 6500 Euro, 9100 dollars
Way OT; I'm pissed because I just analyzed all of the MP3s I've ripped from recently bought CDs and discovered they are all clipping, save 1 CD. Way to understand how to correctly master CDs America (okay some are from Great Britain and Australia)...!
"Is everyone going to flee the state and leave the housing units empty?"
Not everyone. I like it here. But I have a house in town. I strongly suggest you spend some time driving around looking at "for rent" signs on comparable units before you buy.
Unless you are looking in outlying areas, in which case the answer is "yes the housing units will be empty, not counting a meth lab approximately every other block," and I strongly suggest you make other plans for the weekend.
"the majority of the state economy was historically based on chicago mob money"
Not the majority. There were mines and citrus farms and regular retirees who were not in the mob. I would guess it was not more than 40% most of the time, and some of it came from places other than Chicago.
And Rehnquist wasn't just a mob lawyer. He also had a strong reputation as bigoted poll-watcher.
Sol, good handle for that neck of the woods. I hear July and August will make me yearn for the California desert.
Seriously, though, a lot of paper has gone really bad there it seems . . . and it's being held by folks who can't afford a lot of really bad paper . . .and there are sure are a lot of them around these days.
........ NK's technology is not mature enough , therefore that missile might be droped in California ....... dig a deep hole in your backyard and stay there....
I'm confident the CA legislature will respond quickly and directly at their overspending problems. RAISE TAXES & SPEND MORE !! I am completely convinced if we gave these clowns $1 Trillion they'd still need another 500 billion.
Do we really have to keep electing the fiscally impaired to state office ?
A million car march on washington DC, creating horrible traffic on interstates, carefully planned will force administration to give us one fity ... but then again, does wishing a problem away actually solve it?
Or we can ask ourselves, why the manager of Palmdale has a pension of... 240K/year?
not counting a meth lab approximately every other block
I thought this was a joke until we bought our house in Glendale (about 2 miles from the new stadium). The meth house for our block was about ten houses away and neighbors were always complaining about the smell of ether before it burned down.
I might be headed over to AZ this weekend to look at some multifamily units. Prices sure are down.
Is everyone going to flee the state and leave the housing units empty?
and I strongly suggest you make other plans for the weekend.
I'd love it if you went to look, but unless you know the area and community, it's a hard bargain. Most property management sucks, and even the good ones take such a chunk out of the profitability that it's barely worth it. Vacancy rates can skyrocket in a hurry, and I fully expect to see a new breed of professional renters appear.
sdtfs, that they can. That's where those low rents come in again. Asset deflation might make that doable . . and apparently there's a whole lot of that going on in AZ (not that CA isn't right behind in the race to the bottom).
"neighbors were always complaining about the smell of ether before it burned down"
That reminds me of a statistic I once read, which I thought is a classic, basically it was for some metro-area and stated:
"Police recorded a total of 147 meth producing facilities in 2004, just under 50% were detected before they burned down or exploded."
We got a great deal on a house which later turned out to be in a drug neighborhood and the builder went bankrupt leaving $40K of liens on the house. I hated the stadium and the ice hockey thing, they created a ton of traffic problems with no benefit to me. Glad I sold out early.
"I might be headed over to AZ this weekend to look at some multifamily units. Prices sure are down."
Well, rents are going down as well. . And since the most practical RE valuation is based on NOI (net operating income) / "required return" prices might keep going down for some time.
They are all drug neighborhoods. Except ours, which is special.
Our household is Roadrunner fans, so no tears for the Coyotes. Unfortunately the Roadrunners folded this season too.
But I really did have a number of people tell me that Glendale would be the new downtown, with skyscrapers overlooking the Cardinals' Toilet Bowl and everything.
And since the most practical RE valuation is based on NOI (net operating income) / "required return" prices might keep going down on those for a while.
That's what interesting from a mathematical (okay, profitability) perspective. Are asset prices declining faster than anticipated future revenue?
I don't know, but I've spent most of my life being too early and hoping the world would catch up.
Our first property managers started out well (and we needed somebody then), but after a year or two we started noticing the advertising charges and periodic vacancies. They were moving tenants around between different clients and charging us all for the costs. Plus the maintenance charges got a little ridiculous ($25/call to relight a water heater 3 times in one month,...we had to order them to replace the damn heater.)
"Are asset prices declining faster than anticipated future revenue?"
I am not sure about all of related details, it might depend on the market, etc. However as long as the rents are falling and prices will follow, why bother? Unless of cause you are seasonal RE investor and are able to pick the cream.
"I hear July and August will make me yearn for the California desert."
Well, you know what they say, "but, it's a dry heat". That is, until the monsoon sets in.
Regarding paper - I'm not holding any paper at the moment, so I wouldn't know about that. What I do know is that our personal business (which is tied to construction) has been totally hammered. We've had to let go more than 3/4's of our workforce, mothball most of our trucks, take personal pay cuts & sometimes take no pay at all for months on end, discontinue some benies, etc., etc.. We are still in business, we are fortunate, we have never run with a debt balance, we are one of the very few hanging in there while observing the fall of so many others before us. As far as I can see across the vast sprall of this desert valley there isn't a green shoot in sight, just a heck of a lot of tumble weed.
I'm pretty sure our house was used to defraud somebody. Bought at $155K in 2000, sold $180K in 2004, it resold for $300K about 18 months later. After that, it was vacant for a long time. I researched the deed info last year. My home loan payoff was $8K higher than it should have been. Perhaps it was a cashback loan or my wife took out a second without telling me.
The buyers in 2005 and 2006 have a maze of loans. It appears that there was a divorce, two other properties involved and loans for $50K, $22K, $111K, $100K, $200K float around between different banks/mortgage companies. It looks like there was a cashback fraud of at least $100K and the larger loans are option ARMs; the current owner is a flipper-wanna-be like Casey Serin... she bought in at the top.
It might be possible to make money on a rental here, but you'd have to basically hang out at the courthouse with cash in your pocket until you found a foreclosure auction where the bank wasn't credit bidding, and then you'd have to be very persistent.
I posted a couple of weeks ago about the house down the street that went for $67K, recent comps in the $150 to $180 range. They had a "for rent" sign up for two days, then apparently figured out they couldn't make it cash flow based on the repair costs and the dozen other places for rent within two blocks. So they flipped it for a quick $10K or so.
"Plus the maintenance charges got a little ridiculous ($25/call to relight a water heater 3 times in one month,...we had to order them to replace the damn heater.)"
true those insane labor costs ($100 for a lighting check or sign change) & the parts, that's the only way for them to make any money.
No doubt Arizona has serious problems right now and they're likely to get worse. Nevada isn't far behind and California still has Sacramento which is the bad joke it's always been.
But, as CR had pointed out more than a few times, and some of us have experienced, there really isn't any financing out there even for reasonable deals or for deals at reasonable LTV levels.
I think asset deflation has hit hard in AZ (with NV and CA shortly to follow) and owners who leveraged are going down.
It's morning and I'm reading. My wife yells out, "Get your gun".
We step out into the front yard and there's a guy lying literally on our doorstep, OD'ed.
My wife calls the police, who refer her to an ambulance and she says, "I don't give a crap if he dies, I want the police here".
Deflation and leverage, certainly true. But you might want to give it another year or so to see how it shakes out. I could be wrong, but I don't think there is any reason to hurry.
I am hoping to buy one of those old U shaped apartment buildings in another year or so, fortify the outside and turn it into a compound. I always wanted to live in a compound. I would let my friends move in as they lose their jobs.
Comrade de Chaos, cream unfortunately can go sour though it is sweet when it's fresh.
Sol, everyone is cutting back everywhere IMO. Some folks in some places are being hit harder than others. I suppose it all comes down to debt. Those with it are in trouble, one way or another.
albrt, I'd rather find people who are desperate to unload paper they are holding than battle at the courthouse steps. BTW, in my area, there are houses selling at five figures, but anything over $75k is getting multiple bids and often crossing $95k.
"We step out into the front yard and there's a guy lying literally on our doorstep, OD'ed."
That doesn't happen to us very often because we are on a bus line, so they usually lie down at the bus stop. I generally only call the police if they threaten to kill me.
I am hoping to buy one of those old U shaped apartment buildings in another year or so, fortify the outside and turn it into a compound. I always wanted to live in a compound. I would let my friends move in as they lose their jobs.
Sounds like an apocalyptic fantasy. Bankerdome wrought large. Though it could just be a good idea.
broward, I'm still working on my first wife and the kids are grown now, but I can guarantee any who will listen, there won't be a second under any set of circumstances.
albrt, I will be looking at two locations for signs that they might not be around in the future.
"cream unfortunately can go sour though it is sweet when it's fresh."
agreed, that's why I took a liberty to mention that other factors should be considered beyond "RE prices always go up."
Liquidity
Cash Flows
Trends of that particular market, etc.
and yeah, having a small (~10%) part of your portfolio as a rental property, is not necessary a bad idea.
( the above is not an investment advice, invest @ your own risk : ) )
Comrade de Chaos, I think RE will likely continue to go down in price over the next year. The RE itself is only the fallback position if you have to take possession. But, of course, those numbers have to work also.
All right, parting comment. I've heard that Arizona has rabid sports fans. Hard to get good tickets for UofA or ASU games.
But then that whole sports tickets thing could implode within the next year also.
"I think RE will likely continue to go down in price over the next year."
I believe that in certain "HOT" markets the RE will be going down for YEARS to come. And when it will reach the bottom, prices will be for years stagnant.
Reasons are simple:
a) FED won't be able to keep mortgage rates ~ 5 percent for long.
b) Investors into RE related securities will have little appetite for those, so it will all depend on how long will it take for BANKS to chew through all of those bad loans. And given number of those banks is kept afloat artificially, it will take a while.
So when it comes to S, Cali, Nevada, Arizona, Florida, I doubt prices will be going up any time within the next 5 years. Japanese experience is a perfect example of stagnant RE prices.
The only exemption might be due to the FED losing control over the inflation in the "near" future. However in that case inflation adjusted prices are still going to remain stagnant.
"The car will retail for $87,900 and top out at 95 mph -- not very spirited for someone who feels the need for speed, but perfect for someone who wants to send the message that they are green, rich and mellow.
Local officials expect the new Louisiana plant to produce up to 1,500 jobs averaging $40,000 per."
Let's assume a mere 25% total tax rate, incl. state, local federal, ss,med,. Let's assume a mere $800/month rent (furnished). Just $400/month food. (teetotaler) $150/month utilities (green living) $100/month busfare. $200/month miscellaneous (have to wear clothes in Louisiana; maybe one night out every quarter.)
0 for health care (keep the unions away).
That leaves $10,400/year surplus, with no car, staycations, no emergencies. So if they keep him employed for 9 tears (no guaranties with no union), and inflation doesn't outrun his wages (against the trend for several decades), he can buy a car from the factory where he makes them.
I hope there are enough rich, green, mellow bankers to keep the plant going,
Hope he doesn't want a family. Just fine and getting better?
Just caught a few minutes' NPR programming in the car - Barney Frank describing a proposed requirement that lenders retain a 5% stake in securitization products so that they'd keep some 'skin in the game'. That was followed by a mortgage bankers' spokesperson who opined the 'risk to lenders' reputations' was sufficient and pointing out that many lenders who mispriced risk are now out of business. The final note was that some don't see the tiny stake proposed as sufficient and calling for covered bonds, common in Europe, which involve a 100% stake.
What, under this new proposal, prevents lenders from retaining the required 5% stake while at the same time disposing of the risk via CDS? Clean slate for a modest premium, possibility of securitizing toxic loans while insuring against a 5% failure. Don't think I like that very much.
Talk to me in purchasing power, not in "jobs". I know you're ecstatic that Jean Pitchfork will be happy to toil for your green luxury, but will he be able to eat cake?
See, down here, perched on the rim of the Delta, the best of times have been terrible for the past 50 years. Never up much, never down much, just sort of struggling for air. The velocity of money as turgid as the bayous meandering round about.
This is a doubling of the available dollars, an infinite exponential increase in job opportunity, and a compounding effect that will ripple throughout the northern part of the state.
But I'll defend your right (not to the point of death) to be ignorant. Until you sweat in the shade on a summer afternoon, until you have spent some time in the Booker T neighborhood, after you have tasted the air of a once in a century opportunity, then you will come off as eccentric at best, ignorant for sure, and an intolerant bigot at worst.
I am just smart enough never to buy a gas-powered v-car when electrics are going to bankrupt the company, and oil/dollar is potentially out of control.
My drug neighborhood comment was facetious... just kind've blending in the whole thread.
I thought people who were having problems grasping for dollars in turgid meandering bayous would move somewhere else?
Anyway; that news is good for Louisiana, it seems like the south (doesn't Alabama have some car factories) is trying to replace the rust-belt? Competition is good; hope they can build better cars than GM and Chrysler. Speaking of GM haven't heard too much about their fast-track to and from the bk-house...
Yes, the locals were thrilled to have jobs building pyramids for the Pharaoh's afterlife. 'What difference does it make what he builds, he's giving us jobs.'
See, that's just another example of your lack of comprehension. Read the article again. Nobody knows what the car is, well very few do. Boone Pickens is involved, so is Al Gore. The designer is unmatched, a modern Ransom Olds. The propulsion system, the fuel type, the cost range is not clear.
What is clear is the vision of the principles, the commitment of the region, the strength, and good character of the people of Louisiana.
So, stop talking out yer ass, Mr. 99% reading comprehension. Must of been some sort of standardized, prejudiced exam; full of societal precepts that make allowance for almost anybody, because you do not get it.
broward: Neither do I. The commitment of the principals is to produce a breakthrough automobile that anybody can afford, very high mileage, and a positive buying experience. So far, nobody knows much more than that. The principles involved should give a thinking person some clues. T Boone means a NG connection of some sort. Gore means good political connections and a smooth approval of many different things. The designer is the father of the Miata. He intends this car to be an iconic car, like the Miata.
I wouldn't bet against these people. But if yog wants to persist, then c'mon.
I wish them success, but Al Gore called George Bush and conceded based on a television network's analysis of statistics. That allowed Bush to paint him a sore loser and Gore never won back momentum. I watched it. I was stunned when he conceded, and I didn't have a well-financed campaign machine, only common sense.
Today police identified the charred remains of a Louisana man as "Volcker The Viking".
The body was charred beyond recognition and positive identification was delayed pending dental records.
The designer of a car, and the designer of an automobile factory are two very different things. At some point you must also build and test the machines that build the cars.
I get the feeling that your factory is coming on pallets from S.Korea. Need to repair the automation? Call in a specialist from overseas.
I'm interested in following the transition into 21st c manufacture in America. Can't think of a better moment to launch a new co. Remains to be seen how well they've anticipated their market. The VC firm is good, of course, though that's no guarantee the concept isn't a match.
I see Tesla will produce a decent four-passenger full electric. Rather Lexus-like. And Fisker has a convertible coupe in the stocks now. Not placing bets, but it will surely be interesting to see what this country thinks it wants to drive over the next few years.
What the people from the company said yesterday is that the incentive package we offered was not the largest, Mississippi offered much more, but they decided to locate here because of the strong sense of community and strong work ethic exhibited by the people.
And yes, we have more than a few experienced auto workers who presently commute from here to Jackson, MS to work (120 miles one way). I suspect we'll be able to snap our fingers and have an expert cadre in place. And the necessary training will be taking place right in line with expectations.
Nattering nabobs of negativism, you people I swear.
burnside: you and I share the belief that now is the best time to start a business, and yes it will be interesting. Especially with the vacuum created by the death of GM and Chrysler.
-- it will surely be interesting to see what this country thinks it wants to drive over the next few years. --
Given that 10% of the total energy use of a typical automobile is expended in its manufacture, would it be better to mandate better fuel efficency, or increased longevity?
Volker I and some others here try to look at this news in the context of American and international car making capacity and the general allocation of capital. When you say, "it's getting better", it's meaningless unless you know for whom. It turned out that what was good for general motors may not have been so good for America, in the long run.
re: the electric and the hybrid car--they don't scale, they're too expensive and the exchange between energy used for energy created is minimal. Maybe cars will go away, maybe print will disappear, maybe I'll get taller and grow hair.
volker, I don't discount the idea that Chrysler may be too wounded to respond to these conditions, but I wouldn't discount either Ford or the emergent GM. A lot of seasoned design/engineering/manufacturing expertise there, if they can shuck off the existing 'culture'.
Remember, the people working at the little three aren't one hundred years old - only the culture is.
O! yes, we have a port ratcheer on the Ouachita River, and all the bridges that The Kingfish built with decks too low to allow ocean going freighters from passing, have been raised as of last year. I vision boatloads and trainloads headed for China and India.
The company has been founded with the express intention of doing it different from the broken model of Detroit's big three. The first notion was to build them in China. How sweet to have an opportunity to turn the export/import tables. And not for salad shooters at a dollar a holler.
Be of good cheer people. Something good is about to happen.
one thing to keep in mind with declining state revenues is that some states have much more troubling structural problems. Sure, almost every state experienced decreasing income tax revenues from higher unemployment, decreasing capital gains, and the real estate bubble. However, some states will be able to partially backfill these gaps with increasing population growths, especially as domestic wage arbitrage takes hold. The states that are also experiencing negative demographics (e.g. high senior population, decreasing overall population, etc) are absolutely beyond hope without massive restructuring of both taxes and spending.
wally writes: "When you spend all your fiscal stimulus on bankers, it doesn't come back to you like it would if you spent it on people."
Amen, brother. And that's what we did down here in Louisiana. See, we ain't the stupid, slope headed swamp dwellers we are depicted to be. A lot of smart people, a large dose of private money, each and every elected official in the region got together to make it happen.
And this will vault Bobby Jindal in front of the rest as a presidential hopeful.
With all the data coming at me, I am getting confused....Either I am losing my mind, because things like tax receipts cliffdiving will be forgotten by tomorrow. I am starting to feel like I am watching CNN...
Possible solution- set of dials with last date of update that can be quickly scanned to get a snapshot of the key relevant features affecting the economy...It could be called CR Dashboard...As a suggestion, the gages could cover tax receipts, GDP, Imports/exports, Unemployment, Case-Shiller property value declines....Just somewhere where you can give you or me the overall status of the economy....
re state tax revenues: Louisiana is largely an extraction economy with new found reserves to extract. And the model the state government used for projecting revenues was based on current pricing of oil, NG is lagging but expect those prices to double in the next few months.
lost-confused (profile) wrote on Thu, 6/18/2009 - 5:04 am
This is for Kcoop
With all the data coming at me, I am getting confused...
Possible solution- set of dials with last date of update that can be quickly scanned
Man, NY is in a world of hurt. Our falling revenues and and our ongoing deficits put us right in line behind California. With the FIRE econ collapsing, Wall Street free of tax liabilities for the next few years, publishing and advertising spiraling down, and what's left of manufacturing in trouble...where are there any drivers for the economy? Upstate NY has been beggared by high taxes, and every effort by Gov. Patterson to put even the smallest limits on future costs by public employees have been screamed down.
We should be doing as well as Lousiana. In our dreams.
Man, NY is in a world of hurt. Our falling revenues and and our ongoing deficits put us right in line behind California. With the FIRE econ collapsing, Wall Street free of tax liabilities for the next few years, publishing and advertising spiraling down, and what's left of manufacturing in trouble...where are there any drivers for the economy? Upstate NY has been beggared by high taxes, and every effort by Gov. Patterson to put even the smallest limits on future costs by public employees have been screamed down.
We should be doing as well as Lousiana. In our dreams.
Man, NY is in a world of hurt. Our falling revenues and and our ongoing deficits put us right in line behind California. With the FIRE econ collapsing, Wall Street free of tax liabilities for the next few years, publishing and advertising spiraling down, and what's left of manufacturing in trouble...where are there any drivers for the economy? Upstate NY has been beggared by high taxes, and every effort by Gov. Patterson to put even the smallest limits on future costs by public employees have been screamed down.
We should be doing as well as Lousiana. In our dreams.
"I wouldn't be surprised if people are withholding their SS now"
.....watch out! Big Brother has been trying to get blogger records for all LV Review-Journal posters that disagreed with the FedGov over the THIRD Kahre vs. IRS go around. Pretty soon it'll be "Mind-Thought Czar" time. Be careful what you type.
"Free speech should be practiced only by those who are ready to deal with the consequences...."
Treasury-Altered Reality Plan (profile) wrote on Thu, 6/18/2009 - 5:06 am
@lost-confused - maybe like a 'debt-clock' page, except for housing, tax, UE, etc.
All that red might just scare people, though
But what the hey, without some overview/god view, I am getting dizzy...and beginning to question what is reality, info here and other blogs or MSM's happy talk...
"This past week the newspaper (Las Vegas Review Journal) was served with a grand jury subpoena from the U.S. attorney's office demanding that we turn over all records pertaining to those [blog] postings, including "full name, date of birth, physical address, gender, ZIP code, password prompts, security questions, telephone numbers and other identifiers ... the IP address," et (kitchen sink) cetera.
Show trials will be about it. Madoff might be the only top dog to actually take one for the team. The rest of them will likely just have some intern or junior staffer set up for the fall.
While everybody is wringing their hands and looking to government for solutions, us swamp dwellers are taking decisive action.
Who knows, maybe some of you people will come on down, raise the collective IQ, get used to the heat. It's only bad a couple three months a year. And up north where we are, the storms are all but blowed out when they get here. The 36 hours of rain once or twice a year is tolerable.
volker the viking (profile) wrote on Thu, 6/18/2009 - 5:21 am
...the new opportunities and innovations are just beginning to surface
I'm sure the second class passengers were delighted at the free upgrade opportunities that became available in first class and were pleased that the Titanic's purser informed them of that good news rather than trouble them with
volker, it isn't cynical or negative to be wary of the steamrollers when collecting nickels.
Less than a year ago, Utah was paying about $3 million a week in unemployment benefits. Today, they are paying over $14 million a week in unemployment benefits.
What, under this new proposal, prevents lenders from retaining the required 5% stake while at the same time disposing of the risk via CDS? Clean slate for a modest premium, possibility of securitizing toxic loans while insuring against a 5% failure. Don't think I like that very much.
Banks are subject to audit by the various regulators. If as part of the sampling this particular loan comes up the bank examiners will be able to determine whether it is appropriately documented. So having it on their books helps a great deal in help keeping the system honest. The alternative is to have these loans disappear into the ether with only the rating agencies to look at them. I would go one step further and require all guaranteed depositary institutions to only purchase securitized assets that have a portion of the loan on the books of a regulated depositary institution.
The second graph is missing an entry for South Dakota. Maybe that's just another 'no data' but even then it should have a bar. Just curious, I wanted to compare SD to the improbably-well-performing ND...
bbartlog (profile) wrote on Thu, 6/18/2009 - 7:57 am
The second graph is missing an entry for South Dakota. Maybe that's just another 'no data' but even then it should have a bar. Just curious, I wanted to compare SD to the improbably-well-performing ND...
Good evening all. Is your state in trouble? Mine is (California)
best wishes
S(t)ink?
CR,
Could you not turn those graphs upside down.. you are scaring the children
got pigged ... added IGOTBICT
chalk up a 'win' for WA and TX!
With 12-15 months that question will be redundant.
//Is your state in trouble?//
How does this work?
SEC Said to Back Money Funds on Changes to Protect Investors
Bloomberg.com
By Jesse Westbrook and Christopher Condon
June 17 (Bloomberg) -- The U.S. Securities and Exchange Commission may support most of the proposals by asset managers to make money-market funds safer after last year’s collapse of Reserve Primary Fund led to a run on the $3.5 trillion industry, according to people with knowledge the matter.
The agency will leave intact rules that allow money funds to carry a stable $1 share price, said the people, who asked not to be identified because the SEC may revise its plans. While Chairman Mary Schapiro said May 4 that the price rules may need to be altered, the agency instead will seek input on the issue from fund managers and investors, leaving a decision for later.
Ooof! South Cakalacky getting stuffed as well. Never been a lot of income to tax there anyway outside of the bankers in Charleston and the fixed income retirees in Hilton Head, but still...
All the car-people are going to think it's trending in the correct direction... where's my green shoots?
So what's up with Utah, Alabama, and North Dakota?
North Dakota = Oil? I guess Alaska would have something similar? I suppose that's why Louisiana is also not as bad?
Alabama and Utah have got me; same with West Virginia (coal or something?).
Arizona is fantosminal!
Would love to hear the color commentary from AllenM on AZ. That is definitely going to leave a mark.
Can you bruise a corpse?
// That is definitely going to leave a mark.//
added Benny and the Ink Jets.... WAAHHOOO ! ! !
................
AZ drank almost as much kool aid as Cali... They just dont happen to have Prop 13
Lucifer,
Wouldn't the game be to get people into money market funds; just the nominal value of those dollars decreases... I thought money-market funds were supposed to be low risk by law anyway?
Precisely how does a state lose over half of it's imcome tax payments?
Stunning.
Curious though, about whether the states ever collected income tax revenues from illegals (doubtful) or from legal greencard immigrants who've returned home? Or something to do with lessened income to retirees?
PA's only down about 15%. With all of our retirees, that'll accelerate.
depends how you define trouble....
various banks were 'getting crushed' but we got crushed a little harder to help them
apparently turnabout is not fair play
Arizona is populated by ex-Prop 13 owners.
How about "Helicopter Ben"?
//added Benny and the Ink Jets.... WAAHHOOO ! ! !//
I'm curious what this does to California's budget projections. Time for another downward revision?
and Goldman-Sachs?
//added Benny and the Ink Jets.... WAAHHOOO ! ! !//
And this is surprising how?
The reality is that the lagging depression of the 30s was the lack of local dollars to pay for things. It is no diffferent now. The question is how much and how far.
It will be fine.. just keep on smoking the good stuff.
Plan A - Smoke strong Dope
Plan B - Pray
Plan C - Pray harder..
//I'm curious what this does to California's budget projections. //
Japanese bond smugglers released?
The Japanese Bond Smugglers Are Missing
YLSP,
Is that the SEC's role?
//Wouldn't the game be to get people into money market funds; just the nominal value of those dollars decreases//
Lucifer I'd suggest a Plan D
Follow Plan A but drag harder till you lungs give out.
broward,
I've thought they were questioned and released immediately? None of the articles mentioned them being detained anywhere...
The reality is that the lagging depression of the 30s was the lack of local dollars to pay for things. It is no diffferent now. The question is how much and how far.
Interesting question. What's the status on Cali scrip? Any?
Well since I'm unemployed I will be paying a lot less in income tax next year. I also don't spend much either so that new additional 1% sales tax increase isn't really noticeable. I won't be replacing my paid off car, and I will probably be bartering my homemade goodies for fresh eggs and veg at the farmer's market. Wow, three weeks without a job and I'm going native.
The answer lies in the source of this "income".. Was it job/ business income or investment (notional) income?
//Precisely how does a state lose over half of it's imcome tax payments?//
Cali script...what the rating and how much..
A quick note that Vancouver Canada just got a huge ratings slap 'cause of the budget stuff w/ the Olympics..EHP are you out there...
On one hand I am happy that vancouver is getting screwed, on the other hand I know that rating agencies are worthless.
//A quick note that Vancouver Canada just got a huge ratings slap 'cause of the budget stuff w/ the Olympics..EHP are you out there...//
Why would you release counterfeiters?
"on the other hand I know that rating agencies are worthless"
depends on what side of the fence..
If they enforced that law, wouldn't all banksters be jailed?
//Why would you release counterfeiters?//
Broward?
Women Sipping Espresso Signal Revved Economy: Alexandre Marinis
Women Sipping Espresso Signal Revved Economy: Alexandre Marinis - Bloomberg.com
Commentary by Alexandre Marinis
June 17 (Bloomberg) -- Here’s a plan to rescue Starbucks Corp.: Stop focusing so much on the U.S. and other developed markets.
Americans who used to take breaks at the mall by indulging in $4 lattes don’t do much recreational shopping these days. People who relied on double-shot espresso macchiatos for a jolt before work either lost their jobs or worry they’re about to.
Youshouldaknowed (profile) wrote on Wed, 6/17/2009 - 11:41 pm
Well since I'm unemployed I will be paying a lot less in income tax next year. I also don't spend much either so that new additional 1% sales tax increase isn't really noticeable. I won't be replacing my paid off car, and I will probably be bartering my homemade goodies for fresh eggs and veg at the farmer's market. Wow, three weeks without a job and I'm going native.
LOL. Yeah, people without jobs (i.e. income) tend to pay a lot less income tax. And since they don't have money, they can't spend it, so they pay much less sales tax. They also tend not to buy new cars, or even trade-up, and tend not to buy different homes, assuming they are even able to keep the one they're presently living in. Funny how this all works isn't it? It is almost as if keeping the system running means the capitalist class (or somebody) has to create or sustain jobs via businesses they own rather than shoveling it into mon(k)ey markets, offshore bank accounts, and speculative investments. But if they did that, they might lose some of it!! We can't have that. Best of luck to you, though.
almost as if keeping the system running means the capitalist class (or somebody) has to create or sustain jobs via businesses they own
Bingo.
The tighter they grasp the gold, the quicker it slips through their fingers.
Lucifer, I saw the Starbucks story but I'm not sure how it impacts me.
Your comments about starbucks becoming a venue for recruitment in MLM scams..
They are promoting another scam - decoupling
"Starbucks should forget about expanding in developed markets, where savings accounts now have more cachet than cappuccinos. Instead, it should target Brazil, where high-end coffee is creating a buzz."
//Lucifer, I saw the Starbucks story but I'm not sure how it impacts me.//
Curious though, about whether the states ever collected income tax revenues from illegals (doubtful) or from legal greencard immigrants who've returned home? Or something to do with lessened income to retirees?
Homedad;
In a previous life I was a lowly insulation contractor. We had multiple employees (who all had SS #'s mind you that was the extent I had to go to) who were illegal and all paid their taxes. Hell every contractor I knew had them. They'd all claim 8, get as much as they could in their check and be done with it. I always figured the state/fed actually loved them because they never filed a return to get the rest of it back.
Felix Salmon feeling gloomy after reading Krugman:
"PK: How is it possible that Germany, which did not have a house price bubble, is having a steeper GDP fall than anyone else in the major economies?
The answer is that they depended upon exporting to the bubble regions of Europe, so they actually got side-swiped by the loss of those exports worse than the bubble regions themselves got hit.
It’s Germany on a global scale that is the concern. We worry about the drag on world demand from the global savings coming out of east Asia and the Middle East, but within Europe there’s a European savings glut which is coming out of Germany. And it’s much bigger relative to the size of the economy.
WH: And on top there is an unique and unaddressed huge potential banking crisis. The Germans pride themselves on their three-legged banking system, but it is incredibly interlinked. The IMF warns that Germany could have to take at least $500bn of writedowns, which its banks have not begun to recognise. German banks hold a trillion dollars - maybe more - of maturing collateralised debt obligations that can only be refinanced by crystallising the losses. We’ve had RBS and you’ve had Citigroup. Germany’s GDP will fall 6% this year - <b>before the banking crisis has hit it</b></i>.
And that’s just the CDOs — it doesn’t include probably another trillion dollars of loans to central and eastern European corporates and sovereigns, which are nowadays looking extremely toxic. Meanwhile, the political leadership in Germany is in denial, acting for all the world as though the loss of central bank independence is the biggest problem facing the global economy.
The base-case scenario, then, is that Germany goes Japan — and drags the rest of the Eurozone, if not the entire world, into a Japan-style Lost Decade. How do we stop that from happening, especially absent political will in Berlin? I have no idea."
Finally, US pundits are recognizing Germany's problems...they're huge.
broward (homepage, profile) wrote on Wed, 6/17/2009 - 11:50 pm
Bingo.
The tighter they grasp the gold, the quicker it slips through their fingers.
As it should. Money doesn't grow on trees. Too bad that compensation (if it can be called such) has become a function of proximity to the spigot instead of the results of risk taken successfully faced with the real possibility of personal loss.
OT: A couple of people were wondering where dryfly was these days. He's been on the road travelling here to Monterrey Mexico. I spoke with him earlier tonight. He hasn't had an internet connection to catch up, but he sends his regards to all.
Monterrey Mexico
Is he bailing out?!
Run, Dryfly, run!
California has an exremely progressive income tax structure. Income under ~$20,000 (or those with a lot of dependents) has no tax but for those with income > ~$100,000 (MFJ) the marginal rate is 9.3%, so a modest change in income for the higher earners can impact the tax greatly. This works in both directions, which is why in "good" times the money rolls in and "must be spent."
Capital gains are taxed at regular rates so when they change (up or down) there is also a big impact. Based on Wall Street's performance in 2008, it's not surprising that capital gains would tank, and take taxes with them.
There is a big change that will take effect when filing CA taxes; for 2009 the tax reduction for each dependent will drop by $300. This will have a huge impact on larger families at almost any income level.
You, too, can become a Federal Economist!
SALARY RANGE: 31,751.00 - 51,124.00 USD /year
USAJOBS - Search Jobs
That explains a lot of things.
o/t things I'm watching:
BEIJING (AP) -- China has imposed a requirement for its stimulus projects to use domestically made goods -- a move that could strain ties with trading partners after Beijing criticized Washington's "Buy American" stimulus provisions
"Brazilian scientists have identified a new strain of the H1N1 virus after examining samples from a patient in Sao Paulo, their institute said Tuesday....The mutation comprised of alterations in the Hemagglutinin protein which allows the virus to infect new hosts"
Is he bailing out?!
No, he's reconning new manufacturing locations for one of his clients.
For anybody that does want to bail, it's actually a pretty good location to head to. Lots of opportunities: manufacturing, construction, banking, agriculture, goat herding, drug trafficing....
"Don't Stop Believin" was a song tailor-made for a parody... unfortunately I'm not feeling up to it... "World bankers in a smoky room" has a nice ring to it though. No need to change the chorus. Actually a lot of it works unchanged. Especially this part:
Working hard to get my fill,
Everybody wants a thrill
Payin anything to roll the dice,
Just one more time
Some will win, some will lose
Some were born to sing the blues
Oh, the movie never ends
It goes on and on and on and on
In northern CA, it's not unusual for people to go from 1800 a week to 1800 a month (unemployment). I'm just surprised AZ beat us
He's outsourcing America?
E tu, Dry?
Humor Alert!!
US Bank Profits Could Be Hurt By Financial Reforms: Analysts
Bank Profits Could Be Hurt By Financial Reforms: Analysts - CNBC
By: Jeff Cox, CNBC.com | 17 Jun 2009 | 05:06 PM ET
US banks could become less competitive—and less profitable—from President Obama's proposed financial overhaul, analysts say.
As details of the sweeping plan emerged, there was worry among investors that the sector—which has been recovering in recent months from last year's financial crisis—could take another hit.
Deflationary Jane (profile) wrote on Thu, 6/18/2009 - 12:09 am
In northern CA, it's not unusual for people to go from 1800 a week to 1800 a month (unemployment). I'm just surprised AZ beat us
Hmm... 1/12th income. Something very astrological in that. That's gonna make median homes into a speculative vehicle with leverage a hedge fund would be proud of!!!
edit: 1/4.3 as helpfully pointed out below. Leaving evidence of prior stupidity for abusement/amusement purposes
mutation comprised of alterations in the Hemagglutinin protein
Or maybe someone forgot to put the anti-HA back in the fridge....
RIF
It ain't quite that bad. Week/Month = 1/4.3
He's outsourcing America?
I think it's more of a business expansion located close to the customer. It will actually increase employment on the US side.
Ya, a dormir. Buenas noches a todos.
Cramer: It’s Time to Buy Health Care
Mad Money: Cramer: It’s Time to Buy Health Care - CNBC
Posted By:Tom Brennan
Sometimes bad news, any news, is good enough for Wall Street, Cramer told viewers on Wednesday. The Street fears uncertainty more than almost any other factor, and it often sparks a sell-off in whatever stock or sector’s in question. That’s why health care lately had taken such a beating – no one knew what reforms President Obama had planned.
picosec (profile) wrote on Thu, 6/18/2009 - 12:16 am
RIF
It ain't quite that bad. Week/Month = 1/4.3
LOL... good point. I was wondering about that after I posted. Just a sign I've been up too long and should be sleeping.
Why is Kudlow pretending to be holier than thou?
Kudlow: Fed Overseeing Systemic Risk? What a Mess
Kudlow: Fed Overseeing Systemic Risk? What a Mess - CNBC
Published: Wednesday, 17 Jun 2009 | 5:51 PM ET
By: Larry Kudlow
The big winner of the Obama financial-regulation plan appears to be the Federal Reserve, which becomes the consolidated supervisor of large, systemically important banks.
This is like the fox guarding the henhouse. After all, the Fed’s overly loose money policies created the asset bubble — including housing, commodities, and energy — in the first place. Near-zero interest rates, huge money growth, and total disregard for the plunging dollar are what set up the housing boom and the unfortunate overleveraging by consumers, mortgage borrowers, and Wall Street securitizers.
This is indirect evidence that utter collapse has been avoided only by the US Gov't supporting the financial system.
"Let's see--we saved the banks, the insurance companies, the equity markets, the bond markets...have we missed anything?"
Uh, yeah--state and local governments, which can't survive at current funding levels if the economy is moribund.
Good luck bailing them out as well, big O.
The second wave is almost upon us, and those that barely survived the first won't survive the second.
"He's outsourcing America?"
Not by sending jobs to Mexico, he's not.
One thing I noticed about CA is that when they were talking about issuing Cali-script for tax refunds most of the people I know increased the number of exemptions they claimed for state tax withholding. More unintended consequences.
NEoWave Institute's Glenn Neely is forecasting the largest vertical drop of the decade for the S&P 500. Neely predicts the stock market will decline 50% in the next 6 months.
"More unintended consequences."
LOL, payback is a bitch!
TJ and the Bear
If the SP500 were to go back to 16 p/E it would take us below 650. Good thing taxes are down 26%.
Do you see a problem? Is paying them more improving the outcome?
How Much Do Rookie Doctors Make? The Latest Scorecard
Median Physicians' Salaries - Health Blog - WSJ
Posted by Laura Yao
Good news for med students worried about their debt loads: Physicians coming out of residencies last year reported increases in their starting salaries in many specialties, according to a survey by the Medical Group Management Association, a trade group for medical groups.
Here are the specialties with the biggest jumps in 2008 from a year earlier based on data from 3,520 physicians:
Neurology: $200,000 to $230,000 –- up 15%
Non-invasive cardiology: $350,000 to $400,000 – up 14.29%
Anesthesiology: $275,000 to $312,500 – up 13.64%
Emergency medicine: $192,000 to $215,040 – up 12%
Internal medicine: $150,000 to $165,000 – up 10%
Tim,
Full-on bears are supposed to take us back to 6 p/e, not 16.
Larry Kudlow?
I though he was a entertainer for right wing simpletons-- Have I confused him for someone else?
Change you can believe in..
Insurers Not Committing to End Rescission
Insurers Not Committing to End Rescission - Health Blog - WSJ
President Obama may want Americans to have universal health care, but health insurers say they want to continue their practice of canceling the coverage for some sick individuals, called rescission, reports the L.A.Times.
A congressional investigation into three insurers found that they canceled the coverage of more than 20,000 people in a five-year period, allowing the companies to avoid paying $300 million in claims, the paper reported.
People like you are in the minority.. the world has more gullible, greedy and stupid people.
//I though he was a entertainer for right wing simpletons-- Have I confused him for someone else?//
SD is projecting a $27 million deficit (2.2% of the 09 general fund) for 2009... a bit better than CA's 13.6%
Legally, we cannot deficit spend! ...If only that was in the US constitution
Laws are meant to be broken!
//Legally, we cannot deficit spend! //
We're #1! We're #1! Hold on, wait a sec.....
Purely anecdotal, but I have quite a few friends here in AZ that were formerly in the housing/development/realty/flippin' segments. Many were making in the low to mid 6 figure range. Now they're lucky if they still have a job and pull in 50K.
It was great fun while it lasted. I'm gonna miss their Cardinals season tickets the most.
Walmart's the single largest employer in AZ, albeit the low wage king, too. I wonder what portion of the remaining income taxes WallyWorld accounts for?
TJ -
6% x very little (less the standard deduction) = not very much.
Why isn't Nevada on this list?
Oakland to lay off 100 workers, more layoffs said to follow.
Oakland sending pink slips to nearly 100 staff members this week - Inside Bay Area
No state income taxes in NV.
Believe Nevada doesn't have personal income tax.
"Legally, we cannot deficit spend! "
CA also has that in our constitution, but a superhero like Arnie doesn't let things like constitutions get in his way!
Thanks for the civil replies. I should have known with the money nevada generates from the gambling.
"Finally, US pundits are recognizing Germany's problems...they're huge. "
Since when exporting more than importing became a problem? Prudently saving for the rainy days also is now a PROBLEM?! Yes, Germans will have a Great Recession but Americans will have The Great Collapse while yapping about other people's problems which may or may not exist.
What is this rainy day savings you speak of?
Dryfly is in Monterrey, Nuevo Leon? Maybe a good site for his businesses, but a high mountain valley with terrific pollution. My friend's Schd 40 PVC was brittle and discolored in a year from the ozone and UV exposure. But they are business friendly!
This thread is decidedly above average, although it could certainly use more dryfly.
Tons of illegals paying income tax in Arizona, plus tons of developers, realtors and mortgage brokers, all went to zero.
Arizona had a competent governor until recently. The state and local governments instituted serious budget cuts quicker than a lot of places, so the hole isn't quite as deep as it could have been. And we have all the different kinds of taxes, so income isn't everything. But it's bad, with no end in sight. Our legislators, collectively, are both stupid and insane, currently spending a lot of time debating whether they should expand the right to carry guns in bars. Our public schools are likely to lose their prestigious 48th place ranking.
"Since when exporting more than importing became a problem?"
um... when consumer markets overseas totally dried up and died?
but i largely agree - and the biggest thing germany has going for it as that most of them are renters that never bought into the 'homeownership' scam as some kind of form of social mobility
"Is your state in trouble?"
OoooOOoo yeah, I'm in the crash and burn zone, and it ain't pretty - currently the Govenor has filed suit in an effort to force the state legislature to send her the budget - Gov. Brewer sues over delay in sending budget bills
I might be headed over to AZ this weekend to look at some multifamily units. Prices sure are down.
Is everyone going to flee the state and leave the housing units empty?
"Emergency medicine: $192,000 to $215,040 – up 12%
Internal medicine: $150,000 to $165,000 – up 10% "
Nice example of using reserve currency status to the max. Median salary in hospitals in Germany is about 43000 euros/ 60000 dollars (including all employees).
timmyone, how can you compare the salaries of physicians coming out of residencies (U.S.) with salaries of all employees in hospitals (Germany)?
Looks like apples and pomegranites for a reason.
"I might be headed over to AZ this weekend to look at some multifamily units. Prices sure are down."
Hey, come on down. Buy some, AZ should welcome those who are willing and able to pay them some tax.
In terms of AZ, one shouldn't forget that the majority of the state economy was historically based on chicago mob money being recycled through real estate, with a generous portion of outright fraud on the side.
When you understand that Rehnquist was just another mob lawyer, America's recent history makes a bit more sense.
Arizona had a competent governor until recently.
Yes, until she claimed the Terrorists were Canadians.
"A 2004 analysis done by the Economic consultants at the National Economic Research Associates came up with the following summary comparison of average Hospital salaries earned by Doctors :
* USA: $266,733
* Australia: $203,132
* Netherlands: $175,155
* Britain: $127,285
* France: $116,077
* Italy: $81,414
* Denmark: $73,236
* Spain: $67,785
* Germany: $56,455"
American versus Australian, European Hospital Doc Pays at MDsalaries - The Physician Salaries Blog
More recent survey:
Arzt (doctor) : 3420 - 4200 Euro/ up to 5880 dollars
Facharzt (specialist doctor like plastic surgeon): 4450 - 5600 Euro= up to 7900
Oberarzt (head of department/rassistant medical director ) : over 5650 Euro, 7900 dollars
leitender Oberarzt (chief surgeon): over 6500 Euro, 9100 dollars
Arzt/Ärztin - Gehälter-ABC - sueddeutsche.de
Way OT; I'm pissed because I just analyzed all of the MP3s I've ripped from recently bought CDs and discovered they are all clipping, save 1 CD. Way to understand how to correctly master CDs America (okay some are from Great Britain and Australia)...!
blame the software known as waves L1, which is actually not developed in one of the countries mentioned
"Is everyone going to flee the state and leave the housing units empty?"
Not everyone. I like it here. But I have a house in town. I strongly suggest you spend some time driving around looking at "for rent" signs on comparable units before you buy.
Unless you are looking in outlying areas, in which case the answer is "yes the housing units will be empty, not counting a meth lab approximately every other block," and I strongly suggest you make other plans for the weekend.
"the majority of the state economy was historically based on chicago mob money"
Not the majority. There were mines and citrus farms and regular retirees who were not in the mob. I would guess it was not more than 40% most of the time, and some of it came from places other than Chicago.
And Rehnquist wasn't just a mob lawyer. He also had a strong reputation as bigoted poll-watcher.
true enough - casino was on cable the other night - and kansas city was an underrated outpost for the outfit
Not just US states. States in Australia are seeing the same thing...going bust. Where would we go?...swim across to New Zealand maybe.
Hey, come on down.
Sol, good handle for that neck of the woods. I hear July and August will make me yearn for the California desert.
Seriously, though, a lot of paper has gone really bad there it seems . . . and it's being held by folks who can't afford a lot of really bad paper . . .and there are sure are a lot of them around these days.
........North Korea may fire a long-range ballistic missile toward Hawaii in early July.........
........ The Associated Press ..........
........ NK's technology is not mature enough , therefore that missile might be droped in California ....... dig a deep hole in your backyard and stay there....
I'm confident the CA legislature will respond quickly and directly at their overspending problems. RAISE TAXES & SPEND MORE !! I am completely convinced if we gave these clowns $1 Trillion they'd still need another 500 billion.
Do we really have to keep electing the fiscally impaired to state office ?
Thanks, albrt, yes I would spend a couple days in the two locations, but the units have a high occupancy rate at low rents.
It could just be that low rents are the only way to get high occupancy these days.
In fact I'd say low rents are the BEST way to get high occupancy these days.
A million car march on washington DC, creating horrible traffic on interstates, carefully planned will force administration to give us one fity ... but then again, does wishing a problem away actually solve it?
Or we can ask ourselves, why the manager of Palmdale has a pension of... 240K/year?
The page cannot be found
while former president of the United States has a pension of around 190K/year.
not counting a meth lab approximately every other block
I thought this was a joke until we bought our house in Glendale (about 2 miles from the new stadium). The meth house for our block was about ten houses away and neighbors were always complaining about the smell of ether before it burned down.
I might be headed over to AZ this weekend to look at some multifamily units. Prices sure are down.
Is everyone going to flee the state and leave the housing units empty?
and I strongly suggest you make other plans for the weekend.
I'd love it if you went to look, but unless you know the area and community, it's a hard bargain. Most property management sucks, and even the good ones take such a chunk out of the profitability that it's barely worth it. Vacancy rates can skyrocket in a hurry, and I fully expect to see a new breed of professional renters appear.
I'm confident the CA legislature will respond quickly and directly at their overspending problems.
Wow. You mean they're finally going to reduce the size of their Legislative staffs?
Thought I'd never see it.
Ah, Glendale. Did you buy into the story that it was going to be the new downtown for central Arizona? Hope you aren't a hockey fan.
The really scary areas are much further out, in places like Florence and Maricopa.
Vacancy rates can skyrocket in a hurry,
sdtfs, that they can. That's where those low rents come in again. Asset deflation might make that doable . . and apparently there's a whole lot of that going on in AZ (not that CA isn't right behind in the race to the bottom).
"neighbors were always complaining about the smell of ether before it burned down"
That reminds me of a statistic I once read, which I thought is a classic, basically it was for some metro-area and stated:
"Police recorded a total of 147 meth producing facilities in 2004, just under 50% were detected before they burned down or exploded."
We got a great deal on a house which later turned out to be in a drug neighborhood and the builder went bankrupt leaving $40K of liens on the house. I hated the stadium and the ice hockey thing, they created a ton of traffic problems with no benefit to me. Glad I sold out early.
"I might be headed over to AZ this weekend to look at some multifamily units. Prices sure are down."
Well, rents are going down as well. . And since the most practical RE valuation is based on NOI (net operating income) / "required return" prices might keep going down for some time.
The really scary areas are much further out, in places like Florence and Maricopa.
Don't forget Crapache Junction ! shudder, were I of Apache descent I'd be petitioning to have my tribal name removed from that place.
They are all drug neighborhoods. Except ours, which is special.
Our household is Roadrunner fans, so no tears for the Coyotes. Unfortunately the Roadrunners folded this season too.
But I really did have a number of people tell me that Glendale would be the new downtown, with skyscrapers overlooking the Cardinals' Toilet Bowl and everything.
And since the most practical RE valuation is based on NOI (net operating income) / "required return" prices might keep going down on those for a while.
That's what interesting from a mathematical (okay, profitability) perspective. Are asset prices declining faster than anticipated future revenue?
I don't know, but I've spent most of my life being too early and hoping the world would catch up.
Florence is an hour past Apache Junction, and much crappier. Lots of work for prison guards, though.
Our first property managers started out well (and we needed somebody then), but after a year or two we started noticing the advertising charges and periodic vacancies. They were moving tenants around between different clients and charging us all for the costs. Plus the maintenance charges got a little ridiculous ($25/call to relight a water heater 3 times in one month,...we had to order them to replace the damn heater.)
But I really did have a number of people tell me that Glendale would be the new downtown,
Can't say what the future will bring, but I really blew a chance to relocate to Scottsdale in 1992.
It would have been a helluva ride there then rather than continuing with 'California never did learn.'
"Are asset prices declining faster than anticipated future revenue?"
I am not sure about all of related details, it might depend on the market, etc. However as long as the rents are falling and prices will follow, why bother? Unless of cause you are seasonal RE investor and are able to pick the cream.
"I hear July and August will make me yearn for the California desert."
Well, you know what they say, "but, it's a dry heat". That is, until the monsoon sets in.
Regarding paper - I'm not holding any paper at the moment, so I wouldn't know about that. What I do know is that our personal business (which is tied to construction) has been totally hammered. We've had to let go more than 3/4's of our workforce, mothball most of our trucks, take personal pay cuts & sometimes take no pay at all for months on end, discontinue some benies, etc., etc.. We are still in business, we are fortunate, we have never run with a debt balance, we are one of the very few hanging in there while observing the fall of so many others before us. As far as I can see across the vast sprall of this desert valley there isn't a green shoot in sight, just a heck of a lot of tumble weed.
I'm pretty sure our house was used to defraud somebody. Bought at $155K in 2000, sold $180K in 2004, it resold for $300K about 18 months later. After that, it was vacant for a long time. I researched the deed info last year. My home loan payoff was $8K higher than it should have been. Perhaps it was a cashback loan or my wife took out a second without telling me.
The buyers in 2005 and 2006 have a maze of loans. It appears that there was a divorce, two other properties involved and loans for $50K, $22K, $111K, $100K, $200K float around between different banks/mortgage companies. It looks like there was a cashback fraud of at least $100K and the larger loans are option ARMs; the current owner is a flipper-wanna-be like Casey Serin... she bought in at the top.
It might be possible to make money on a rental here, but you'd have to basically hang out at the courthouse with cash in your pocket until you found a foreclosure auction where the bank wasn't credit bidding, and then you'd have to be very persistent.
I posted a couple of weeks ago about the house down the street that went for $67K, recent comps in the $150 to $180 range. They had a "for rent" sign up for two days, then apparently figured out they couldn't make it cash flow based on the repair costs and the dozen other places for rent within two blocks. So they flipped it for a quick $10K or so.
"Plus the maintenance charges got a little ridiculous ($25/call to relight a water heater 3 times in one month,...we had to order them to replace the damn heater.)"
true those insane labor costs ($100 for a lighting check or sign change) & the parts, that's the only way for them to make any money.
No doubt Arizona has serious problems right now and they're likely to get worse. Nevada isn't far behind and California still has Sacramento which is the bad joke it's always been.
But, as CR had pointed out more than a few times, and some of us have experienced, there really isn't any financing out there even for reasonable deals or for deals at reasonable LTV levels.
I think asset deflation has hit hard in AZ (with NV and CA shortly to follow) and owners who leveraged are going down.
"the Cardinals' Toilet Bowl"
Now that's the best description of that eyesore I've ever heard. Passing it on my way out of town heading to San Diego will be forever changed, lol.
They are all drug neighborhoods.
It's morning and I'm reading. My wife yells out, "Get your gun".
We step out into the front yard and there's a guy lying literally on our doorstep, OD'ed.
My wife calls the police, who refer her to an ambulance and she says, "I don't give a crap if he dies, I want the police here".
Deflation and leverage, certainly true. But you might want to give it another year or so to see how it shakes out. I could be wrong, but I don't think there is any reason to hurry.
I am hoping to buy one of those old U shaped apartment buildings in another year or so, fortify the outside and turn it into a compound. I always wanted to live in a compound. I would let my friends move in as they lose their jobs.
Comrade de Chaos, cream unfortunately can go sour though it is sweet when it's fresh.
Sol, everyone is cutting back everywhere IMO. Some folks in some places are being hit harder than others. I suppose it all comes down to debt. Those with it are in trouble, one way or another.
albrt, I'd rather find people who are desperate to unload paper they are holding than battle at the courthouse steps. BTW, in my area, there are houses selling at five figures, but anything over $75k is getting multiple bids and often crossing $95k.
My wife calls the police, who refer her to an ambulance and she says, "I don't give a crap if he dies, I want the police here".
broward, LOL. Sounds like she's a sensible person. That the nicest thing I've heard you say about her.
"We step out into the front yard and there's a guy lying literally on our doorstep, OD'ed."
That doesn't happen to us very often because we are on a bus line, so they usually lie down at the bus stop. I generally only call the police if they threaten to kill me.
I am hoping to buy one of those old U shaped apartment buildings in another year or so, fortify the outside and turn it into a compound. I always wanted to live in a compound. I would let my friends move in as they lose their jobs.
Sounds like an apocalyptic fantasy. Bankerdome wrought large. Though it could just be a good idea.
Sounds like she's a sensible person
ha.
I can only say that I had no idea I was involved in multiple lawsuits until I checked our savings and it was zeroed out.
OK, sounds like you know what you're doing. But there really are going to be some pretty big depopulated areas.
broward, I'm still working on my first wife and the kids are grown now, but I can guarantee any who will listen, there won't be a second under any set of circumstances.
albrt, I will be looking at two locations for signs that they might not be around in the future.
"cream unfortunately can go sour though it is sweet when it's fresh."
agreed, that's why I took a liberty to mention that other factors should be considered beyond "RE prices always go up."
Liquidity
Cash Flows
Trends of that particular market, etc.
and yeah, having a small (~10%) part of your portfolio as a rental property, is not necessary a bad idea.
( the above is not an investment advice, invest @ your own risk : ) )
Comrade de Chaos, I think RE will likely continue to go down in price over the next year. The RE itself is only the fallback position if you have to take possession. But, of course, those numbers have to work also.
All right, parting comment. I've heard that Arizona has rabid sports fans. Hard to get good tickets for UofA or ASU games.
But then that whole sports tickets thing could implode within the next year also.
Goodnight, all.
Ditto.
I don't have much desire to return to Phoenix
Reminds me too much of L.A.
Yes, I've been surprised at how fanatical people are about the Diamondbacks. (or whatever that team is).
"I think RE will likely continue to go down in price over the next year."
I believe that in certain "HOT" markets the RE will be going down for YEARS to come. And when it will reach the bottom, prices will be for years stagnant.
Reasons are simple:
a) FED won't be able to keep mortgage rates ~ 5 percent for long.
b) Investors into RE related securities will have little appetite for those, so it will all depend on how long will it take for BANKS to chew through all of those bad loans. And given number of those banks is kept afloat artificially, it will take a while.
So when it comes to S, Cali, Nevada, Arizona, Florida, I doubt prices will be going up any time within the next 5 years. Japanese experience is a perfect example of stagnant RE prices.
The only exemption might be due to the FED losing control over the inflation in the "near" future. However in that case inflation adjusted prices are still going to remain stagnant.
some regions are just fine and getting better:
In midst of auto crisis, Al Gore backs a new car company in Louisiana -- DailyFinance
"The car will retail for $87,900 and top out at 95 mph -- not very spirited for someone who feels the need for speed, but perfect for someone who wants to send the message that they are green, rich and mellow.
Local officials expect the new Louisiana plant to produce up to 1,500 jobs averaging $40,000 per."
Let's assume a mere 25% total tax rate, incl. state, local federal, ss,med,. Let's assume a mere $800/month rent (furnished). Just $400/month food. (teetotaler) $150/month utilities (green living) $100/month busfare. $200/month miscellaneous (have to wear clothes in Louisiana; maybe one night out every quarter.)
0 for health care (keep the unions away).
That leaves $10,400/year surplus, with no car, staycations, no emergencies. So if they keep him employed for 9 tears (no guaranties with no union), and inflation doesn't outrun his wages (against the trend for several decades), he can buy a car from the factory where he makes them.
I hope there are enough rich, green, mellow bankers to keep the plant going,
Hope he doesn't want a family. Just fine and getting better?
Yog--once again you missed
the numbers you use for cost is for the Fisker. We aren't building the Fisker. It's the V car. Try reading with some comprehension.
O! and BTW, the rest of your numbers are off by more than one concentric circle from ground zero as well.
Also investing is T Boone Pickens.
You people I swear.
I assume that either his taxes or the company will take care of 100% of his education, training, and retirement, and provide subsidized bus service.
Why would would I assume from the article that the V-car is any better-priced? Which of my numbers is off, and why?
have you ever been to Louisiana?
So you can tell from the article that the workers at the Karma factory are better paid? BECAUSE IF NOT, MY POINT STANDS.
My reading comprehension scores have always been in the 99th percentile.
No. I lived in Florida for 3 years.
your point is right there at the top of your head
Give me a number, Viking.
a number for what?
My reading comprehension scores have always been in the 99th percentile.
Yes, but that was back in the days when words meant something.
A number of mine "off by a concentric circle",.
Off the top of your head.
Just caught a few minutes' NPR programming in the car - Barney Frank describing a proposed requirement that lenders retain a 5% stake in securitization products so that they'd keep some 'skin in the game'. That was followed by a mortgage bankers' spokesperson who opined the 'risk to lenders' reputations' was sufficient and pointing out that many lenders who mispriced risk are now out of business. The final note was that some don't see the tiny stake proposed as sufficient and calling for covered bonds, common in Europe, which involve a 100% stake.
What, under this new proposal, prevents lenders from retaining the required 5% stake while at the same time disposing of the risk via CDS? Clean slate for a modest premium, possibility of securitizing toxic loans while insuring against a 5% failure. Don't think I like that very much.
Give me a number, Viking.
I think Volcker is married, Yogi.
see, the impact of this is immediate
750 construction jobs with a 35m payroll, one year build out
1500 jobs with 50m payroll when assembly starts
It's a billion a year in impact. 200,000 m/l people live here in region. That is 5k for every man woman and child of increased money swarming around.
Better yet, it's 1,500 jobs with an estimated 3,500 - 4,500 job impact in toto.
Some people are just jealous, some people are dumb. I dunno, which are you Mr. 99% comprehension?
Just for that, I'm charging you juice to use my currency, Broward (unless you have a gub)
Alas, I am gub-free.
I got gub's two for a dollar.
Unfortunately, he didn't score 99% percentile on spelling.
Talk to me in purchasing power, not in "jobs". I know you're ecstatic that Jean Pitchfork will be happy to toil for your green luxury, but will he be able to eat cake?
I thought you were ancient enough not to have missed the hold-up scene in "Take the Money and Run".
yog: are you just plain dumb, or are you some hybrid variety of dumb?
"I draw the line at Woody Allen" - original pick up line from my ex-wife
Isn't Louisiana just one big drug neighborhood? $10k is a lot of meth!
See, down here, perched on the rim of the Delta, the best of times have been terrible for the past 50 years. Never up much, never down much, just sort of struggling for air. The velocity of money as turgid as the bayous meandering round about.
This is a doubling of the available dollars, an infinite exponential increase in job opportunity, and a compounding effect that will ripple throughout the northern part of the state.
But I'll defend your right (not to the point of death) to be ignorant. Until you sweat in the shade on a summer afternoon, until you have spent some time in the Booker T neighborhood, after you have tasted the air of a once in a century opportunity, then you will come off as eccentric at best, ignorant for sure, and an intolerant bigot at worst.
I am just smart enough never to buy a gas-powered v-car when electrics are going to bankrupt the company, and oil/dollar is potentially out of control.
My drug neighborhood comment was facetious... just kind've blending in the whole thread.
I thought people who were having problems grasping for dollars in turgid meandering bayous would move somewhere else?
Anyway; that news is good for Louisiana, it seems like the south (doesn't Alabama have some car factories) is trying to replace the rust-belt? Competition is good; hope they can build better cars than GM and Chrysler. Speaking of GM haven't heard too much about their fast-track to and from the bk-house...
Yes, the locals were thrilled to have jobs building pyramids for the Pharaoh's afterlife. 'What difference does it make what he builds, he's giving us jobs.'
never to buy a gas-powered v-car when electrics are going to bankrupt the company,
We need a segway to something less explosive.
Did someone say Segway? I hope no one here was featured in that video... so funny....
See, that's just another example of your lack of comprehension. Read the article again. Nobody knows what the car is, well very few do. Boone Pickens is involved, so is Al Gore. The designer is unmatched, a modern Ransom Olds. The propulsion system, the fuel type, the cost range is not clear.
What is clear is the vision of the principles, the commitment of the region, the strength, and good character of the people of Louisiana.
So, stop talking out yer ass, Mr. 99% reading comprehension. Must of been some sort of standardized, prejudiced exam; full of societal precepts that make allowance for almost anybody, because you do not get it.
With educated people like you shining the light, it's no mystery the state of Louisiana.
Yep, you're so smart, you can't construct a complete sentence.
No, you can't comprehend it.
do so
I'm not sure Al Gore is a positive endorsement.
broward: Neither do I. The commitment of the principals is to produce a breakthrough automobile that anybody can afford, very high mileage, and a positive buying experience. So far, nobody knows much more than that. The principles involved should give a thinking person some clues. T Boone means a NG connection of some sort. Gore means good political connections and a smooth approval of many different things. The designer is the father of the Miata. He intends this car to be an iconic car, like the Miata.
I wouldn't bet against these people. But if yog wants to persist, then c'mon.
I wish them success, but Al Gore called George Bush and conceded based on a television network's analysis of statistics. That allowed Bush to paint him a sore loser and Gore never won back momentum. I watched it. I was stunned when he conceded, and I didn't have a well-financed campaign machine, only common sense.
The propulsion system, the fuel type, the cost range is not clear.
Boone Pickens is involved.
An assembly hall in Louisiana. Engineering and management cloaked elsewere.
Too Funny. Who is going to prototype the assebly line, and where will they do that?
Let it go, man. It's history.
The principals lack principles.
more disbelievers
Look, you people c'mon. I been sent to gather all your negative energy and use it as catalyst for positive outcome.
I been sent to gather all your negative energy
Dateline 19-June-2009
Today police identified the charred remains of a Louisana man as "Volcker The Viking".
The body was charred beyond recognition and positive identification was delayed pending dental records.
And the local population is sure to pick up those jobs. There no unemployed experienced auto workers anywhere who speak English, by any chance...
-- more disbelievers --
The designer of a car, and the designer of an automobile factory are two very different things. At some point you must also build and test the machines that build the cars.
I get the feeling that your factory is coming on pallets from S.Korea. Need to repair the automation? Call in a specialist from overseas.
it's volker the viking, a la e e cummings and everbody knows about the poor state of affairs within every mouth in the swamp
we stoopid, got no teevee, a buncha kids we abuse and a fat old lady we ignore
scuse me I gotta go fourwheelin out to the deer camp now
v the v:
I'm interested in following the transition into 21st c manufacture in America. Can't think of a better moment to launch a new co. Remains to be seen how well they've anticipated their market. The VC firm is good, of course, though that's no guarantee the concept isn't a match.
I see Tesla will produce a decent four-passenger full electric. Rather Lexus-like. And Fisker has a convertible coupe in the stocks now. Not placing bets, but it will surely be interesting to see what this country thinks it wants to drive over the next few years.
What the people from the company said yesterday is that the incentive package we offered was not the largest, Mississippi offered much more, but they decided to locate here because of the strong sense of community and strong work ethic exhibited by the people.
And yes, we have more than a few experienced auto workers who presently commute from here to Jackson, MS to work (120 miles one way). I suspect we'll be able to snap our fingers and have an expert cadre in place. And the necessary training will be taking place right in line with expectations.
Nattering nabobs of negativism, you people I swear.
burnside: you and I share the belief that now is the best time to start a business, and yes it will be interesting. Especially with the vacuum created by the death of GM and Chrysler.
"Louisiana is said to have tapped a considerable portion of its economic development war chest to lure the new company, "
And the profits go where again?
Read: comprehend.
-- it will surely be interesting to see what this country thinks it wants to drive over the next few years. --
Given that 10% of the total energy use of a typical automobile is expended in its manufacture, would it be better to mandate better fuel efficency, or increased longevity?
Volker I and some others here try to look at this news in the context of American and international car making capacity and the general allocation of capital. When you say, "it's getting better", it's meaningless unless you know for whom. It turned out that what was good for general motors may not have been so good for America, in the long run.
re: the electric and the hybrid car--they don't scale, they're too expensive and the exchange between energy used for energy created is minimal. Maybe cars will go away, maybe print will disappear, maybe I'll get taller and grow hair.
Hey, Mr. 99% comprehension, what profits? It's a freaking start up. The money stays here, ratcheer stoopid. Cain't you unnerstan plain English?
And, given positive outcomes, there will be more than a few V car millionaires just like the Google/WalMart/Amazon/
Costco millionaires.
volker, I don't discount the idea that Chrysler may be too wounded to respond to these conditions, but I wouldn't discount either Ford or the emergent GM. A lot of seasoned design/engineering/manufacturing expertise there, if they can shuck off the existing 'culture'.
Remember, the people working at the little three aren't one hundred years old - only the culture is.
-- And, given positive outcomes, there will be more than a few V car millionaires just like the Google/WalMart/Amazon/
Costco millionaires. --
You really have no idea about the current idle capacity, do you?
How nice of KCBP to lend at zero. I hope all the venture capitalists will play along.
O! yes, we have a port ratcheer on the Ouachita River, and all the bridges that The Kingfish built with decks too low to allow ocean going freighters from passing, have been raised as of last year. I vision boatloads and trainloads headed for China and India.
Oh sorry, interest dollars are distinct from profit dollars. Must be my poor comprehension.
-- Chrysler may be too wounded --
Screw Chylser! They're FIAT now.
The same FIAT that installed turnkey Lada factories in Russia.
The ability to bring such capacity on-line in USA is mind-boggling. The successful product will most likely resemble a Citroen 2CV though.
The company has been founded with the express intention of doing it different from the broken model of Detroit's big three. The first notion was to build them in China. How sweet to have an opportunity to turn the export/import tables. And not for salad shooters at a dollar a holler.
Be of good cheer people. Something good is about to happen.
Must go for today. No doubt you won't disappoint with the last word. Good luck.
Morning all
Did Ken reset the beast last night? My time-code got changed and a couple of other things were different.
Anyhow, Nikkei down, bonds up, US futures just on elmo side.
Roll up, roll up, place your bets for quad witching everyone!
C
One need not concern oneself with the idle capacity of a broken and now nationalized model.
Unemployment, under-employment and salary cuts don't explain income tax receipt declines this large.
There is an underground tax revolt going on.
-- The company has been founded with the express intention of doing it different from the broken model of Detroit's big three. --
Step one: Comprehend these murals: The Detroit Institute of Arts
run like the whipped dog you are
The successful product will most likely resemble a Citroen 2CV though.
Do take a look at the company. My calendar suggests it's 2009, not 1952. Among other lines, Fiat owns Ferrari.
-- My calendar suggests it's 2009, not 1952. --
The purpose of an automobile is transporation. BBAD can no longer afford them as fashion statements. If they can afford them at all.
Last one:
"We busted those unions down to Chinese wages. Volker sees that it is good."
I thought the PT Cruiser was this country's answer to the 2CV.
Not sure what question was tho.
C
There is an underground tax revolt going on.
I think the unemployment numbers are vastly distorted.
I wouldn't be surprised if people are withholding their SS now, just in case they don't get their previous payments back in 2024
-- I thought the PT Cruiser was this country's answer to the 2CV.
Not sure what question was tho. --
Perhaps the question is, "what automobile can be produced and used at profit to both the producer and consumer"?
edit: Things aren't getting better until utility > cost.
And the Winner Is.... the SDR -
Jesse's Café Américain: And the Winner Is.... the SDR
shill - replacing fractional reserve banking with fractal reserve banking is not necessarily an improvement.
C
I agree CP...interesting none the less...hey I am for a Gold and Silver standard...also bring back Glass-Steagal
When you spend all your fiscal stimulus on bankers, it doesn't come back to you like it would if you spent it on people.
one thing to keep in mind with declining state revenues is that some states have much more troubling structural problems. Sure, almost every state experienced decreasing income tax revenues from higher unemployment, decreasing capital gains, and the real estate bubble. However, some states will be able to partially backfill these gaps with increasing population growths, especially as domestic wage arbitrage takes hold. The states that are also experiencing negative demographics (e.g. high senior population, decreasing overall population, etc) are absolutely beyond hope without massive restructuring of both taxes and spending.
love it!!
we're heading in the right direction
BURN!!
wally writes: "When you spend all your fiscal stimulus on bankers, it doesn't come back to you like it would if you spent it on people."
Amen, brother. And that's what we did down here in Louisiana. See, we ain't the stupid, slope headed swamp dwellers we are depicted to be. A lot of smart people, a large dose of private money, each and every elected official in the region got together to make it happen.
And this will vault Bobby Jindal in front of the rest as a presidential hopeful.
This is for Kcoop
With all the data coming at me, I am getting confused....Either I am losing my mind, because things like tax receipts cliffdiving will be forgotten by tomorrow. I am starting to feel like I am watching CNN...
Possible solution- set of dials with last date of update that can be quickly scanned to get a snapshot of the key relevant features affecting the economy...It could be called CR Dashboard...As a suggestion, the gages could cover tax receipts, GDP, Imports/exports, Unemployment, Case-Shiller property value declines....Just somewhere where you can give you or me the overall status of the economy....
Just an idea...
re state tax revenues: Louisiana is largely an extraction economy with new found reserves to extract. And the model the state government used for projecting revenues was based on current pricing of oil, NG is lagging but expect those prices to double in the next few months.
@lost-confused - maybe like a 'debt-clock' page, except for housing, tax, UE, etc.
All that red might just scare people, though.
there is no 'overall economy', like politics it's local
Give it time, Volker, and we'll all be in an 'overall(s)' economy.
-- some states will be able to partially backfill these gaps --
In this case, the terms of the credit extended have not been onerous enough.
lost-confused (profile) wrote on Thu, 6/18/2009 - 5:04 am
This is for Kcoop
With all the data coming at me, I am getting confused...
Possible solution- set of dials with last date of update that can be quickly scanned
A Pig Ticker™!... CS20 +0.15... U-3 -607k... CRVIX 47+204... yogi +1... volker -1... CR +100...
we just did that, remember? the last 25 years have proven the flaw in such an approach.
Yeah, Ken, we need a customized "CR Dashboard" for each county / province in each country, plus the regions of Mars & Venus!
volker the viking (profile) wrote on Thu, 6/18/2009 - 5:05 am
re state tax revenues: Louisiana is largely an extraction economy with new found reserves to extract.
Pickens has discovered a huge deposit of subsidies and is actively extracting those and refining them into personal profits.
Man, NY is in a world of hurt. Our falling revenues and and our ongoing deficits put us right in line behind California. With the FIRE econ collapsing, Wall Street free of tax liabilities for the next few years, publishing and advertising spiraling down, and what's left of manufacturing in trouble...where are there any drivers for the economy? Upstate NY has been beggared by high taxes, and every effort by Gov. Patterson to put even the smallest limits on future costs by public employees have been screamed down.
We should be doing as well as Lousiana. In our dreams.
Man, NY is in a world of hurt. Our falling revenues and and our ongoing deficits put us right in line behind California. With the FIRE econ collapsing, Wall Street free of tax liabilities for the next few years, publishing and advertising spiraling down, and what's left of manufacturing in trouble...where are there any drivers for the economy? Upstate NY has been beggared by high taxes, and every effort by Gov. Patterson to put even the smallest limits on future costs by public employees have been screamed down.
We should be doing as well as Lousiana. In our dreams.
Man, NY is in a world of hurt. Our falling revenues and and our ongoing deficits put us right in line behind California. With the FIRE econ collapsing, Wall Street free of tax liabilities for the next few years, publishing and advertising spiraling down, and what's left of manufacturing in trouble...where are there any drivers for the economy? Upstate NY has been beggared by high taxes, and every effort by Gov. Patterson to put even the smallest limits on future costs by public employees have been screamed down.
We should be doing as well as Lousiana. In our dreams.
"I wouldn't be surprised if people are withholding their SS now"
.....watch out! Big Brother has been trying to get blogger records for all LV Review-Journal posters that disagreed with the FedGov over the THIRD Kahre vs. IRS go around. Pretty soon it'll be "Mind-Thought Czar" time. Be careful what you type.
"Free speech should be practiced only by those who are ready to deal with the consequences...."
THOMAS MITCHELL: Subpoena seeks names -- and lots more -- of Web posters - Opinion - ReviewJournal.com
Treasury-Altered Reality Plan (profile) wrote on Thu, 6/18/2009 - 5:06 am
@lost-confused - maybe like a 'debt-clock' page, except for housing, tax, UE, etc.
All that red might just scare people, though
But what the hey, without some overview/god view, I am getting dizzy...and beginning to question what is reality, info here and other blogs or MSM's happy talk...
just a thought...
....It's so refreshing to NOT have Nevada in the Top Ten List this time - matter of fact we aren't even ON the list - no state income tax.
good on T. Boone!
and broward--I'm picking up on your sarcasm :-l
get used to it folk--the FIRE economy is so last century
AND
something good is about to happen for us all
@lost - there are lots of MSM sites with all of that data at a glance - just run it through your personal 'BS' filter first.
OT but not really.....
"This past week the newspaper (Las Vegas Review Journal) was served with a grand jury subpoena from the U.S. attorney's office demanding that we turn over all records pertaining to those [blog] postings, including "full name, date of birth, physical address, gender, ZIP code, password prompts, security questions, telephone numbers and other identifiers ... the IP address," et (kitchen sink) cetera.
Tantamount to killing a gnat with an A-bomb."
something good is about to happen for us all
Does it involve a large nuclear explosion somewhere?
Ahem, BSR, my name is already attached to my writings.
"...just run it through your personal 'BS' filter first."
because it's mostly a big old pile of used hay
we don't need no stinking dashboard of data
we need to get everybody back to work
lots of stuff gets better when that happens and believe me when I say it--the market is already responding
the new opportunities and innovations are just beginning to surface
@volker - the banks have known the FIRE economy was dead for a long time, that's why they've already moved on to the pillaging.
Thought a viking would appreciate something like that.
I do. Let the indictments begin. I see show trials as a growth sector.
"....my name is already attached to my writings."
....me too broward - and a big sign out in front of the place. Look for the US and USMC flagpole coming down the road
Show trials will be about it. Madoff might be the only top dog to actually take one for the team. The rest of them will likely just have some intern or junior staffer set up for the fall.
While everybody is wringing their hands and looking to government for solutions, us swamp dwellers are taking decisive action.
Who knows, maybe some of you people will come on down, raise the collective IQ, get used to the heat. It's only bad a couple three months a year. And up north where we are, the storms are all but blowed out when they get here. The 36 hours of rain once or twice a year is tolerable.
I hope you're right, Volcker, but I'm not seeing how one experimental car factory is going to fix trillions in debt and fifteen years of outsourcing.
Love the Pig Ticker!
us swamp dwellers are taking decisive action
Y'all finally moved out of the FEMA trailers?
volker the viking (profile) wrote on Thu, 6/18/2009 - 5:21 am
...the new opportunities and innovations are just beginning to surface
I'm sure the second class passengers were delighted at the free upgrade opportunities that became available in first class and were pleased that the Titanic's purser informed them of that good news rather than trouble them with
volker, it isn't cynical or negative to be wary of the steamrollers when collecting nickels.
-605,000 initial
6.69 mill continuing
we sent the FEMA trailers to Arkansas
and no, one good thing won't solve everything
more, much more is needed, but more will be revealed too
.....I heerd tell you can grow 'bout inythang in Looseana
-605,000 initial
6.69 mill continuing
TAKE THE MARKET ON THAT!
...more will be revealed...
Volker, you don't sound like a viking, you sound like a prophet there. Revealed by whom?
Less than a year ago, Utah was paying about $3 million a week in unemployment benefits. Today, they are paying over $14 million a week in unemployment benefits.
Revealed by whom?
Please send $29.95 to
Prophecies c/o Father Volcker
PO Box 666
Swampville, LA 75757
A Pig Ticker™!... CS20 +0.15... U-3 -607k... CRVIX 47+204... yogi +1... volker -1... CR +100...
______________________________________________________________________________
Update...update...
A Pig Ticker™!... CS20 +0.15... U-3 -605k... CRVIX 38+208... energyecon +ß...
broward - lol - wouldn't that zip be 00666?
@Dawg - you could put Pig Ticker in the glossary, and just update the definition regularly.
What, under this new proposal, prevents lenders from retaining the required 5% stake while at the same time disposing of the risk via CDS? Clean slate for a modest premium, possibility of securitizing toxic loans while insuring against a 5% failure. Don't think I like that very much.
Banks are subject to audit by the various regulators. If as part of the sampling this particular loan comes up the bank examiners will be able to determine whether it is appropriately documented. So having it on their books helps a great deal in help keeping the system honest. The alternative is to have these loans disappear into the ether with only the rating agencies to look at them. I would go one step further and require all guaranteed depositary institutions to only purchase securitized assets that have a portion of the loan on the books of a regulated depositary institution.
BSR: for the last fifty years about all we been able to raise round here is hard feelings
broward: Bless you, my son
send your money to God, but address it to me ratcheer in the swamp
The second graph is missing an entry for South Dakota. Maybe that's just another 'no data' but even then it should have a bar. Just curious, I wanted to compare SD to the improbably-well-performing ND...
bbartlog (profile) wrote on Thu, 6/18/2009 - 7:57 am
The second graph is missing an entry for South Dakota. Maybe that's just another 'no data' but even then it should have a bar. Just curious, I wanted to compare SD to the improbably-well-performing ND...
No personal state income tax in the state.