Institutional bribery takes a holiday

February 29, 2008

[SF Gate]

The National Association of Home Builders has a way to solve the housing and economic slowdown: Give a tax credit of $10,000 or thereabouts to anyone who buys a newly built house.Congress declined to include this blatantly self-serving proposal in its first economic stimulus plan.

The builders group responded by halting all contributions to federal congressional candidates and their political action committees.

Heh. They’re taking their bribe money and going home to pound the floor. Wah.


Dislocation from realty

February 25, 2008

The term intentional foreclosure pretty accurately describes a new trend fast developing in the real estate market.

A buyer (idiotus homedebtorus horribulus anus) sees the house across the street for sale and it is significantly less than the one purchased just a short while ago. Homedebtor buys it and moves his family in.

Shortly thereafter, they stop making payments and default on their old home. Ruins their credit for awhile, but that’s a minor concern.

Is it right?

“Is it wrong to steal when you’re hungry? That’s an issue that a lot of people are trying to figure out right now,” says Linda.

Ah, but the question is, Linda, “Is it wrong to steal when you are NOT hungry?


A sad tale of woe

February 22, 2008

& It will melt your heart.

OK, let’s do the math:

300,000-  (bought house in 2001)
500,000+  (refinance and doubtless MEW)
75,000-    (spent on refurb)
————
125,000+

Hmmm, it would appear they cashed out to the tune of $125,000.

I’d say they made out like bandits. Gee, I wonder what kind of cars they drive? His- and- hers Hummers? How apropos she’s holding a cuppa Starbux.

Eat dessert first, life is uncertain.

And these are the sort of people who the US gummint wants to bailout?

There is an estimate floating around that 8.8 MILLION homeowners are upside down, Probably not as bad as these maroons, but still, if that number is in the ballpark, then that’s a serious black hole sucking the wealth out of the pockets of the middle and lower class

The people referred to in this article- “Pinnegar said he hears often that novice investors are holding on to their homes and renting them out, hoping for a better market in a few years” – have dying the death of a thousand cuts to look forward to. If they’re smart they’ll walk away, cut their losses, take the hit to their credit(debt) rating. If they’re not…

Q: “When do you make the decision to say we have to cut our losses?”
A: Now.


Vanity plate sold for $14 million in UAE

February 18, 2008

“I bought it because it’s the best number,” said Khouri, whose family made its fortune in real estate. “I bought it because I want to be the best in the world.”

Criminy.


Waaah.

February 14, 2008

Homebuilders Lobbying Group Cuts Off Contributions to Federal Congressional Campaigns [Yahoo]

Oh it’s a howler:

The lobbying group representing homebuilders is cutting off contributions to federal congressional campaigns, saying lawmakers and the Bush administration have not done enough to stabilize the housing market.

Perhaps the got their skids greased all too well back when it all began.

Looking for someone else to blame here just look in the mirror. Keep moving.


To paraphrase Groucho

February 13, 2008

I wouldn’t want to belong to a club which wouldn’t have me as a member.

The running turmoil in the markets is stirring fears that more of these funds will fail, some, perhaps, spectacularly.

Sol Waksman, president of Barclay Group, an alternative investment database, said that three-quarters of the 1,241 hedge funds that have reported returns for January lost money.

“It’s that sad dawning when you realize the market is so much bigger than you are,” he said.

Plop plop, fizz fizz , take an Alka Seltzer, old boy.


Moral Hazard ‘R’ US

February 11, 2008

So, what’s it like to have a Milstein around your neck? Do you sink fast?

Milstein et al can drop dead.

I read this wankers modest “proposal” much like I would Swift’s.

Or closer still there is the legend or myth of the US general who said sometime during that earlier version if Iraq, Vietnam, that “we’re destroying the village in order to save it.”

At least the LAT allows some differing (or, if you will, dithering) opinions. This guy Viles seems pretty grounded:

Funny thing about government policy: Sometimes big changes happen with little public debate and no warning — for example, the decision by Congress to lift conforming loan limits by $300,000 to help high-cost housing markets like California, quite possibly at the expense of other markets. You would think a momentous decision like that — opposed by regulators, quite likely to mean higher interest rates for some borrowers — would generate an old-fashioned debate in Washington. You would be mistaken.

He’s basically commenting on Milstein’s shite- which is how I happened upon that hot steaming pile of. Viles sees right through him, and has a clearer view of the much bigger picture around what Milstein proposes, as well as how this STOOPID “stimulus package” (“I got your stimulus package right here, babe”) sets a bad precedent.

As this post on patrick.net puts it:

“Heck, if $600 is a stimulant, let’s go for the real gusto with $10,000 each to really jump start the economy.”

Why not, eh? Are the (elected) powers that be such pikers that they think I (what about you?) will sell out my country for 600 fucking ameros?

Indeed, why such a paltry limit? It’s all gonna be funny money pretty soon anyway, eh, why not shoot for the moon?

Whatevs.

Taxation without representation? My ass.

That $600 check is a bribe to look the other way while these wretched turdlingers steal the palace jewels.