Note to self: Do not buy hotel REITs.

And there would still be too many...

Off topic (sorta): Cali says it has one more day...

State IOUs loom as foes' battle lines harden - Los Angeles Times

Infighting continues. Does it matter who wins if the ship sinks under both of you?

A joint venture by Goldman Sachs defaults on a loan made by LEH? The finance industry really is incestuous.

Motel 6's “We have no money to Leave the Lights On"

From the prepignition thread previous:
sm_landlord (profile) wrote (in reply to...) on Wed, 7/1/2009 - 10:06 am

""That's the future of all new vehicle sales not just electrics. " [factory direct]"
I just realized that Amazon could be your next car dealer. Think about it:
1. Online reviews
2. Direct ordering
3. No annoying dealers or sales sharks
4. Best of all: No Sales Tax.
And, it would be a boon for independent service providers, who would get the servicing work because Amazon would not want to have a nexus in the state they sold in to. Couldn't happen to a nicer CARtel than the current dealers.

4. California and many other States have "use taxes" that already cover this circumstance. Sure, mostly ignored in practice but just try and register the vehicle and see what happens.

Somebody will bail them out. at taxpayer expense

I guess Fannie and Freddie are expecting those home values to rebound quickly. I'm not sure that's a wise expectation.

OT - Madoff

On Madoff, Charity and Morality
By Anthony Weiss

More tawdry news on the Madoff front. Lawsuits have been filed against Stanley Chais and Jeffry Picower for receiving what appear to be suspiciously generous and apparently preferential returns for their investments. An investigative report by ProPublica documents that Picower and his family withdrew an astonishing $5.1 billion from Madoff — more, apparently, than Madoff himself. Chais and Picower had been two of the most generous donors to Jewish causes, as well as a number of non-Jewish causes. (Just four months ago, Israeli non-profits held an event to honor Chais for his generosity through the years).

What this means is that the damage to Jewish institutional life seems to be both deeper and more insidious than was first suspected when Madoff bomb first went off and vaporized endowments and fortunes. Jewish philanthropy was awash in fictional money; now, we learn, it may also have been steeped in dirty money — money that helped obtain awards, encomiums, board seats and status.

This is, of course, the currency of philanthropy. Donors give money, and in return they get recognition, respect, publicity, loyalty, and a good (or a least a better) name. There’s a certain logic in this, and even a certain social benefit: Many big donors wouldn’t give a penny, or certainly not as much as they do give, if they weren’t paid back in prestige. They buy a little prestige, and society gets money for good works.

Generosity is only truly generosity when the money is given for the sake of the giving, but life is imperfect, and such is the way of the world.

But let’s not fool ourselves about the devil’s side of this devil’s bargain. The Madoff affair isn’t the first time we’ve seen big Jewish donors turn out to be big Jewish crooks. When you use money as a gauge of character, you get what you pay for.

The Forward’s editorial director, J.J. Goldberg, recently examined what the Madoff scandal says about Jewish money, charity, and morality. It isn’t pretty. But it’s worth thinking about.

http://blogs.forward.com/bintel-blog/108609/

Those container ships stack the boxes pretty high (they look like they'd capsize with a wave from a speedboat), so maybe we could just ship hotels to China/SE Asia in one piece.

To make it a real adventure, they could rent rooms on the hotels being shipped via container vessel.

"Fannie, Freddie to expand refinance program-source"

I rent. I save money. I live well within my means. I work hard. I am very, very very angry. I'd like to think I'm not alone, but judging from the lack of public outrage over all this crap, it appears maybe I am.

HST is up to over $8/share vs a low of slightly above $3/share. Priced in?

"Reality check: The new policy is intended to aid the struggling banks... "

exactly, as I said yesterday, this is a ploy to get homeowners to make an uneconomical decision. if these borrowers were rational and walked away (or better yet, defaulted and stayed until they were evicted), the bankers club would have a few less members, and we would be left with new banks managed by responsible people to fill the void. we wouldn't want that.

JBR,

you are not alone...bailout fatigue is wearing me down...Csc had it right..maybe its best to relax, roll a fatty and forget about it...Walden ponds with a sack of the good stuff...

"There's a word for people like you; donor."

No shit Rob, thanks for pointing that out.

JBR,
I think we're all a bit upset over all the BS that has been shoveled down our collective throats by TPTB.
The time will come soon enough for action; until then take care of you and yours (as it seems you have been).
Payback is a bitch.
Remember the revolution will NOT be televised (or even Hulu'd).
The rage that is simmering just below the surface may be just about to erupt.
Take care, sir.

Can I get my nothingburger super-sized?

China Rethinks H1N1 Flu Strategies
July 1, 2009, 7:06 AM ET
The steady spread of H1N1 flu through China is forcing national health authorities to adjust their containment strategies and take a case-by-case approach at the provincial level. More than 800 people have been diagnosed with the flu on the mainland to date — 240 in southern Guangdong Province alone — although no deaths have been officially linked to the virus yet.

In Guangdong, a series of outbreaks has shut down primary schools in recent days. Local cases now outnumber imported cases in the province, and the public health system is showing signs of over-stretch.

“For the next step, Guangdong should consider encouraging infected patients with light symptoms to go to outpatient clinics or to receive treatment at home,” a Health Ministry announcement read yesterday.

The local outbreaks of H1N1 Flu in Guangdong would seem to be a harbinger of things to come for other provinces in China.
China Rethinks H1N1 Flu Strategies - China Real Time Report - WSJ

Swine flu concerns rise in Southern Hemisphere
Several provinces in Argentina declared a health emergency Tuesday as the number of H1N1 cases continues to rise.
By Sara Miller Llana
Buenos Aires - As the number of diagnosed cases of swine flu recedes in the Northern Hemisphere, several countries in the Southern Hemisphere are now struggling with how to respond to the H1N1 virus.

Argentina is now surpassed only by Mexico and the US in swine flu-related deaths, but has not chosen – so far – to close down major public venues, restaurants, and schools to the same extent. But that may change as health experts warn that the virus appears to be spreading as the Southern Hemisphere moves into winter.
Swine flu concerns rise in Southern Hemisphere | csmonitor.com

Dawg, from what I understand, "Trainwreck" is some of the strongest green shoots around.
Apt, no?

July 1 (Bloomberg) -- The Federal Reserve should use its emergency powers to immediately limit rate increases on existing credit-card balances, U.S. Senator Charles Schumer said, to protect consumers before a law takes full effect in February.

You're a blockhead, Chuck!

Politicos=People worried about seating arraignments in the dining room of the Titanic.

Haahahah file under ya were fuc*ed

I was sitting at lunch and I had a couple of shills in front of me talking about the job market and when its going to get better, and then the conversation changed to one of them buying a home, but he was unsure because he had $45,000 in credit card debt and that if he bought a home he could roll it all in to the cost.

Just and unreal unrealistic conversation.

$45,000 in credit card debt...I think I would hang myself

JBR, for what it is worth, I fired off yet another email to one of my senators about this, but like the others, I doubt I will get a response:

"I fail to see how the Fannie/Freddie program to refinance mortgages up to 125LTV is legal.

According to their charters, they may not purchase loans over 80LTV without credit enhancement.

US CODE: Title 12,1717. Federal National Mortgage Association and Government National Mortgage Association

"No such purchase of a conventional mortgage secured by a property comprising one- to four-family dwelling units shall be made if the outstanding principal balance of the mortgage at the time of purchase exceeds 80 per centum of the value of the property securing the mortgage, unless
(A) the seller retains a participation of not less than 10 per centum in the mortgage;
(B) for such period and under such circumstances as the corporation may require, the seller agrees to repurchase or replace the mortgage upon demand of the corporation in the event that the mortgage is in default; or
(C) that portion of the unpaid principal balance of the mortgage which is in excess of such 80 per centum is guaranteed or insured by a qualified insurer as determined by the corporation."

I understand Mr Lockhart, their regulator, obtained a legal opinion that these new loans are "modifications". However, given that new mortgage notes are being created, I fail to understand how these are "modifications".

I thought we were a nation of laws. I thought it was the responsibility of my elected officials to set those laws. I guess I was wrong."

I thought after 4 houses, you GOT a hotel? Mine was in that shithole Baltic Avenue, though.

The limits of the public health system being overwhelmed and the impact on economic activity as social distancing strategies come to the forefront...

The current weekly FluView report from the CDC - viz the graph after the first two tables.
CDC - Seasonal Influenza (Flu) - Weekly Report: Influenza Summary Update

A funny thing is, the only time anyone can undertake disaster preparedness is when it is manifestly unnecessary - best of luck in the fall.

Guess who is coming to dinner? No really guess.

White House Pushes To Keep Visitor Logs Private
White House Pushes To Keep Visitor Logs Private : NPR 

Now if I could refi at 5.45% and 125% LTV I could purchase 6.2% double tax free CA GO bonds of the same term and live off the interest differential. Win-win and the mortgage interest is deducible.

Debt Free

IMO The protests will start on the internet with hackers crashing gov websites. Then will move into the streets as UE among young people will go north of 20%. Remember these kids have a lot of energy.

Bond Curve Mambo.

Enjoy.

YouTube - Yield Curve Mambo

How so? Their mortgage is the same size before and after.

What, no cash out?

How unfair.

most are against it not for it.

shill, I use the term "we" loosely. I was thinking more the originators of this plan.

energyecon (homepage, profile) wrote on Wed, 7/1/2009 - 10:35 am Can I get my nothingburger super-sized?
China Rethinks H1N1 Flu Strategies
July 1, 2009, 7:06 AM ET

In Guangdong, a series of outbreaks has shut down primary schools in recent days. Local cases now outnumber imported cases in the province, and the public health system is showing signs of over-stretch.
“For the next step, Guangdong should consider encouraging infected patients with light symptoms to go to outpatient

__
Makes sense to me -- China's not quite like 'Hotel California': you can still leave, you just have to go through Guangzhou/Hong Kong. Actually, I have flown in and out of Beijing, but Guangzhou seems to be the entry/exit point of choice for most foreing nationals. Maybe this is a holdover from the imperial days when the city was called 'Canton'?

PEOPLE x 10^9 = Look for lots of flu action in this neck of the woods ....

Anyone notice that AIG reverse 20:1 reverse split?

You know what the difference between a pit bull and AIG is? The Pit Bull has a longer lifespan.

RD

Always starts off small.

OT : Oh Miss Crabtree, there's something heavy on my heart... (L.R.)

no more fancy soap on a rope.

UPDATE 2-Crabtree & Evelyn unit in US files for bankruptcy
| Reuters

Not sure how this company even survived in good times. Prices are beyond absurd.

"Reality check: The new policy is intended to aid the struggling banks... "

Yep, and each new scheme gets fewer and fewer takers. Denial keeps everyone from seeing reality all at the same time. Denial is usually strongest in those in positions of authority.

Tim waiting for 2012 (homepage, profile) wrote on Wed, 7/1/2009 - 10:56 am
Always starts off small.

Always used to start small. This time will be different and there will be no containment. Flashmobs will be the shock and awe tool of the domestic rebellion. It'll go viral with the first social order capitulation.

Non-recourse vs. recourse yeah, if there are any non-recourse that haven't refi'd at least once already. But according to the atty. comments on this site, recourse doesn't happen anyway -- too time consuming, etc. That's what I think they said anyway.

/IMO The protests will start on the internet with hackers crashing gov websites./

These days the hackers are the consultants protecting the USG websites from China/Russia/Nigeria...so that's not IMO how "it" starts.

My guess if it unwinds, destabalizes, it happens very quickly.

--bh

General Motors June sales fell 33.6% YoY

IMO The protests will start on the internet with hackers crashing gov websites. Then will move into the streets as UE among young people will go north of 20%. Remember these kids have a lot of energy.

We HAVE to bring Manufacturing back to the US, can't create employment any other way for the young ones. May be dollar devaluation to that end is not a totally bad thing. You are right, idle young folks is a recipe for unrest,

RAGE AGAINST THE MACHINE:
Bullet In The Head

This time the bullet cold rocked ya
A yellow ribbon instead of a swastika
Nothin' proper about ya propaganda
Fools follow rules when the set commands ya
Said it was blue
When the blood was red
That's how ya got a bullet blasted through ya head

Blasted through ya head
Blasted through ya head

I give a shout out to the living dead
Who stood and watched as the feds cold centralized
So serene on the screen
You was mesmerised
Cellular phones soundin' a death tone
Corporations cold
Turn ya to stone before ya realise
They load the clip in omnicolour
Said they pack the 9, they fire at their prime time
Sleeping gas, every home was like Alcatraz
And mutha fuckas lost their minds

Just victims of the in-house drive-by
They say jump, you say how high
Just victims of the in-house drive-by
They say jump, you say how high

Run it!

Just victims of the in-house drive-by
They say jump, you say how high
Just victims of the in-house drive-by
They say jump, you say how high

Checka, checka, check it out
They load the clip in omnicolour
Said they pack the 9, they fire it at prime time
Sleeping gas, every home was like Alcatraz
And mutha fuckas lost their minds

No escape from the mass mind rape
Play it again jack and then rewind the tape
And then play it again and again and again
Until ya mind is locked in
Believin' all the lies that they're tellin' ya
Buyin' all the products that they're sellin' ya
They say jump and ya say how high
Ya brain-dead
Ya gotta fuckin' bullet in ya head

Just victims of the in-house drive-by
They say jump, you say how high
Just victims of the in-house drive-by
They say jump, you say how high

Uggh! Yeah! Yea!

Ya standin' in line
Believin' the lies
Ya bowin' down to the flag
Ya gotta bullet in ya head

Ya standin' in line
Believin' the lies
Ya bowin' down to the flag
Ya gotta bullet in ya head

A bullet in ya head
A bullet in ya head
A bullet in ya head
A bullet in ya head
A bullet in ya head
A bullet in ya head
A bullet in ya head
A bullet in ya head
A bullet in ya head!
A bullet in ya head!
A bullet in ya head!
A bullet in ya head!
A bullet in ya head!
A bullet in ya head!
A bullet in ya head!
Ya gotta bullet in ya fuckin' head!

You are right, idle young folks is a recipe for unrest,

There's always compulsory 13th and 14th grade. We haven't tried that yet.

Donor.

Also bag holder, greater fool, and sheep. Bzzzzzzzrttt!

It's OK, we have lots of company.

We need to starve the financial beast. Given how bad shape the economy is the DJIA should be at 6000 now but people keep bidding it up...anyway....

What are our demands? Here's part of the list:

* All the financial fraudsters are investigated, indicted, and prosecuted. This includes the con artists in CONgress who got "special deals" from Mozilo and his "Friends of Angelo" program (and who are blocking a subpoena to BofA as it would implicate them), it includes those past and current members of Government Sachs, and it includes all those other

financial "professionals" who deceived Americans and others with their sale of toxic exploding mortgage products along with the securities supposedly backed by them.
* Glass-Steagall is restored, in full, and all the firms that can't exist under it are broken up. Period.

good articles: Interesting Finance & Economic articles