If your Senator or Represenatives name isn't on this list, good for you, you can feel good about voting for the incumbent in your next election. Congrats to my Senator, John Warner, I am proud to be represented by you today. Senator Webb, Represenative Moran ... good luck in your next election. As soon as I find out who your most viable opponent is, I will be supporting them with my time, my money and my vote. I reccomend that the rest of you do the same if you find the name of your Senator or Represenative's name on this list.
Noteable non-votes in the Senate, Senators Obama, Clinton, McCain and Dole. Keep in mind Senators Obama and Clinton were key sponsors of the original Senate bill.
Senators voting for HR 3221: Foreclosure Prevention Act of 2008
HI Akaka, Daniel [D]
TN Alexander, Lamar [R]
CO Allard, Wayne [R]
MT Baucus, Max [D]
IN Bayh, B. [D]
UT Bennett, Robert [R]
DE Biden, Joseph [D]
NM Bingaman, Jeff [D]
MO Bond, Christopher [R]
CA Boxer, Barbara [D]
OH Brown, Sherrod [D]
KS Brownback, Samuel [R]
NC Burr, Richard [R]
WV Byrd, Robert [D]
WA Cantwell, Maria [D]
MD Cardin, Benjamin [D]
DE Carper, Thomas [D]
PA Casey, Robert [D]
GA Chambliss, C. [R]
MS Cochran, Thad [R]
MN Coleman, Norm [R]
ME Collins, Susan [R]
ND Conrad, Kent [D]
TX Cornyn, John [R]
ID Craig, Larry [R]
CT Dodd, Christopher [D]
NM Domenici, Pete [R]
ND Dorgan, Byron [D]
IL Durbin, Richard [D]
NV Ensign, John [R]
WI Feingold, Russell [D]
CA Feinstein, Dianne [D]
SC Graham, Lindsey [R]
IA Grassley, Charles [R]
IA Harkin, Thomas [D]
UT Hatch, Orrin [R]
TX Hutchison, Kay [R]
HI Inouye, Daniel [D]
GA Isakson, John [R]
SD Johnson, Tim [D]
MA Kennedy, Edward [D]
MA Kerry, John [D]
MN Klobuchar, Amy [D]
WI Kohl, Herbert [D]
LA Landrieu, Mary [D]
NJ Lautenberg, Frank [D]
VT Leahy, Patrick [D]
MI Levin, Carl [D]
CT Lieberman, Joseph [I]
AR Lincoln, Blanche [D]
IN Lugar, Richard [R]
FL Martinez, Mel [R]
MO McCaskill, Claire [D]
KY McConnell, Mitch [R]
NJ Menendez, Robert [D]
MD Mikulski, Barbara [D]
AK Murkowski, Lisa [R]
WA Murray, Patty [D]
NE Nelson, Ben [D]
FL Nelson, Bill [D]
AR Pryor, Mark [D]
RI Reed, John [D]
NV Reid, Harry [D]
KS Roberts, Pat [R]
WV Rockefeller, John [D]
CO Salazar, Ken [D]
VT Sanders, Bernard [I]
NY Schumer, Charles [D]
AL Sessions, Jefferson [R]
AL Shelby, Richard [R]
OR Smith, Gordon [R]
ME Snowe, Olympia [R]
PA Specter, Arlen [R]
MI Stabenow, Debbie Ann [D]
AK Stevens, Ted [R]
NH Sununu, John [R]
MT Tester, Jon [D]
SD Thune, John [R]
LA Vitter, David [R]
OH Voinovich, George [R]
VA Webb, Jim [D]
RI Whitehouse, Sheldon [D]
MS Wicker, Roger [R]
OR Wyden, Ron [D]
Represenatives voting for HR 3221: Foreclosure Prevention Act of 2008
TN-6 Gordon, Barton [D]
TX-9 Green, Al [D]
TX-29 Green, Raymond [D]
AZ-7 Grijalva, Raul [D]
IL-4 Gutierrez, Luis [D]
NY-19 Hall, John [D]
IL-17 Hare, Phil [D]
CA-36 Harman, Jane [D]
FL-23 Hastings, Alcee [D]
SD-0 Herseth Sandlin, Stephanie [D]
NY-27 Higgins, Brian [D]
IN-9 Hill, Baron [D]
NY-22 Hinchey, Maurice [D]
HI-2 Hirono, Mazie [D]
NH-2 Hodes, Paul [D]
PA-17 Holden, Tim [D]
NJ-12 Holt, Rush [D]
CA-15 Honda, Michael [D]
OR-5 Hooley, Darlene [D]
MD-5 Hoyer, Steny [D]
SC-4 Inglis, Bob [R]
WA-1 Inslee, Jay [D]
NY-2 Israel, Steve [D]
IL-2 Jackson, Jesse [D]
TX-18 Jackson-Lee, Sheila [D]
LA-2 Jefferson, William [D]
TX-30 Johnson, Eddie [D]
GA-4 Johnson, Henry [D]
IL-15 Johnson, Timothy [R]
OH-11 Jones, Stephanie [D]
WI-8 Kagen, Steve [D]
PA-11 Kanjorski, Paul [D]
OH-9 Kaptur, Marcy [D]
RI-1 Kennedy, Patrick [D]
MI-5 Kildee, Dale [D]
MI-13 Kilpatrick, Carolyn [D]
WI-3 Kind, Ronald [D]
IL-10 Kirk, Mark [R]
MI-9 Knollenberg, Joseph [R]
RI-2 Langevin, James [D]
WA-2 Larsen, Rick [D]
CT-1 Larson, John [D]
OH-14 LaTourette, Steven [R]
CA-9 Lee, Barbara [D]
MI-12 Levin, Sander [D]
GA-5 Lewis, John [D]
IL-3 Lipinski, Daniel [D]
NJ-2 LoBiondo, Frank [R]
IA-2 Loebsack, David [D]
CA-16 Lofgren, Zoe [D]
NY-18 Lowey, Nita [D]
MA-9 Lynch, Stephen [D]
FL-16 Mahoney, Tim [D]
NY-14 Maloney, Carolyn [D]
MA-7 Markey, Edward [D]
CA-5 Matsui, Doris [D]
NY-4 McCarthy, Carolyn [D]
MN-4 McCollum, Betty [D]
WA-7 McDermott, James [D]
MA-3 McGovern, James [D]
NY-23 McHugh, John [R]
NC-7 McIntyre, Mike [D]
CA-11 McNerney, Jerry [D]
NY-21 McNulty, Michael [D]
FL-17 Meek, Kendrick [D]
NY-6 Meeks, Gregory [D]
ME-2 Michaud, Michael [D]
CA-7 Miller, George [D]
NC-13 Miller, R. [D]
AZ-5 Mitchell, Harry [D]
WV-1 Mollohan, Alan [D]
KS-3 Moore, Dennis [D]
WI-4 Moore, Gwen [D]
VA-8 Moran, James [D]
CT-5 Murphy, Christopher [D]
PA-8 Murphy, Patrick [D]
PA-12 Murtha, John [D]
NY-8 Nadler, Jerrold [D]
CA-38 Napolitano, Grace [D]
MA-2 Neal, Richard [D]
MN-8 Oberstar, James [D]
WI-7 Obey, David [D]
MA-1 Olver, John [D]
TX-27 Ortiz, Solomon [D]
NJ-6 Pallone, Frank [D]
NJ-8 Pascrell, William [D]
AZ-4 Pastor, Edward [D]
NJ-10 Payne, Donald [D]
CA-8 Pelosi, Nancy [D]
CO-7 Perlmutter, Ed [D]
MN-7 Peterson, Collin [D]
WI-6 Petri, Thomas [R]
PA-19 Platts, Todd [R]
ND-0 Pomeroy, Earl [D]
NC-4 Price, David [D]
WV-3 Rahall, Nick [D]
MN-3 Ramstad, James [R]
NY-15 Rangel, Charles [D]
WA-8 Reichert, Dave [R]
TX-16 Reyes, Silvestre [D]
TX-23 Rodriguez, Ciro [D]
AR-4 Ross, Mike [D]
NJ-9 Rothman, Steven [D]
CA-34 Roybal-Allard, Lucille [D]
MD-2 Ruppersberger, C.A. [D]
IL-1 Rush, Bobby [D]
OH-17 Ryan, Timothy [D]
CO-3 Salazar, John [D]
CA-39 Sanchez, Linda [D]
CA-47 Sanchez, Loretta [D]
MD-3 Sarbanes, John [D]
IL-9 Schakowsky, Janice [D]
CA-29 Schiff, Adam [D]
PA-13 Schwartz, Allyson [D]
GA-13 Scott, David [D]
VA-3 Scott, Robert [D]
NY-16 Serrano, José [D]
PA-7 Sestak, Joe [D]
CT-4 Shays, Christopher [R]
NH-1 Shea-Porter, Carol [D]
CA-27 Sherman, Brad [D]
NC-11 Shuler, Heath [D]
NJ-13 Sires, Albio [D]
NY-28 Slaughter, Louise [D]
WA-9 Smith, Adam [D]
NJ-4 Smith, Christopher [R]
AR-2 Snyder, Victor [D]
CA-32 Solis, Hilda [D]
OH-18 Space, Zackary [D]
SC-5 Spratt, John [D]
CA-13 Stark, Fortney [D]
MI-1 Stupak, Bart [D]
OH-13 Sutton, Betty [D]
CA-10 Tauscher, Ellen [D]
MS-4 Taylor, Gene [D]
MS-2 Thompson, Bennie [D]
CA-1 Thompson, C. [D]
MA-6 Tierney, John [D]
NY-10 Towns, Edolphus [D]
CO-2 Udall, Mark [D]
NM-3 Udall, Tom [D]
MI-6 Upton, Frederick [R]
MD-8 Van Hollen, Christopher [D]
NY-12 Velazquez, Nydia [D]
IN-1 Visclosky, Peter [D]
NY-25 Walsh, James [R]
MN-1 Walz, Timothy [D]
FL-20 Wasserman Schultz, Debbie [D]
CA-35 Waters, Maxine [D]
CA-33 Watson, Diane [D]
NC-12 Watt, Melvin [D]
CA-30 Waxman, Henry [D]
NY-9 Weiner, Anthony [D]
VT-0 Welch, Peter [D]
FL-19 Wexler, Robert [D]
OH-6 Wilson, Charles [D]
VA-10 Wolf, Frank [R]
CA-6 Woolsey, Lynn [D]
OR-1 Wu, David [D]
MD-4 Wynn, Albert [D]
KY-3 Yarmuth, John [D]
NY-11 Clarke, Yvette [D]
MO-1 Clay, William [D]
NC-6 Coble, Howard [R]
FL-4 Crenshaw, Ander [R]
VA-1 Davis, Jo Ann [R]
VA-5 Goode, Virgil [R]
IL-14 Hastert, J. [R]
NC-8 Hayes, Robin [R]
TX-15 Hinojosa, Rubén [D]
CA-52 Hunter, Duncan [R]
LA-1 Jindal, Bobby [R]
TX-3 Johnson, Samuel [R]
FL-22 Klein, Ron [D]
OH-10 Kucinich, Dennis [D]
IL-18 LaHood, Ray [R]
CA-12 Lantos, Tom [D]
TX-14 Paul, Ronald [R]
NJ-3 Saxton, H. [R]
MO-4 Skelton, Ike [D]
CO-6 Tancredo, Thomas [R]
Wednesday, July 30, 2008
Friday, July 25, 2008
Sample 2008 SAT Questions
Tax payer is to Obama as ...
A) Grass is to mower
B) Sink is to dishes
C) Chicken is to Col. Sanders
The American dream is to Senator Christopher Dodd as ...
A) Bus is to stop
B) Paper is to ink
C) Hindenberg is to a match
The Forclosure Relief Act is to Bank of America as ...
A) Ocean is to green
B) Dog is to walk
C) The Constitution is to Thomas Jefferson
Lawrence Yun is to truth as ...
A) Stove is to hot
B) Rain is to fall
C) OJ Simpson is to innocent
A) Grass is to mower
B) Sink is to dishes
C) Chicken is to Col. Sanders
The American dream is to Senator Christopher Dodd as ...
A) Bus is to stop
B) Paper is to ink
C) Hindenberg is to a match
The Forclosure Relief Act is to Bank of America as ...
A) Ocean is to green
B) Dog is to walk
C) The Constitution is to Thomas Jefferson
Lawrence Yun is to truth as ...
A) Stove is to hot
B) Rain is to fall
C) OJ Simpson is to innocent
Friday, July 11, 2008
News & Notes
It took 6 months, but CNN is finally seeing things my way. Admiting fully that a bailout will only prolong the real estate slump and probably result in further tax payer expense.
According to this article on Yahoo!, only 21% of the country supports this legislation. Which makes me wonder what in the world Congress is doing with their bailout legislation. I can only look forward to the day Senator Christopher Dodd gets drummed out of the office that he rode into on his daddy's coat tails.
According to this article on Yahoo!, only 21% of the country supports this legislation. Which makes me wonder what in the world Congress is doing with their bailout legislation. I can only look forward to the day Senator Christopher Dodd gets drummed out of the office that he rode into on his daddy's coat tails.
Friday, July 04, 2008
Thanks For The Validation CNBC
9 out 12 analysts voted against a bailout. These highly respected analysts have comments like, "will only interfere with the price discovery process that is necessary in order to reach a clearing price for the housing market", or "This is an election year bill to pander to voters" and my personal favorite, "No, this is an oinker. Corporate welfare".
If all this sounds fimilar, your right, most of it you read here months ago.
If all this sounds fimilar, your right, most of it you read here months ago.
Wednesday, July 02, 2008
Senator Obama Was Cheap Too
You can now have a low mileage Presidential candidate for a mere $300 a month. Senator Obama received a $1.32 million super jumbo loan below the average rate for similar loans at that time. He paid no fees and he bought no points up front.
The overt buying and selling of US politicians has to stop. Senator Obama is a prominent sponsor of a housing bailout that will surely benefit Northern Trust of Illinois. In fact, I contend that they got themselves a massive bargain when they over paid for a freshmen Senator with no influence, but it appears that their investment has matured nicely.
I have to wonder why Senator Obama didn't disclose this favorable treatment sooner, especially in light of the resignation of the head of Obama's vice presidential search committee after it was disclosed that he had received favorable treatment from Countrywide. Associate law professor Adam J. Levitin, a credit specialist at the Georgetown University Law Center said, "Do they do business like that for people who are not congressmen? If they don't, that's a problem". I think we know the answer to that question already. So here we are a Presidential candidate who has already been bought and sold. While he peddles a line of rhetoric that says he's the candidate of change, all I see here is the same old stuff, which makes Senator Obama far worse, in my opinion, than those who he claims to be fighting.
Northern Trust claims that unlike Countrywide, they had no formal program for taking care of VIPs. Sure that’s great, but it never hurts to have a Senator on the payroll, especially at the bargain basement price of $300 a month. Northern Trust Vice President John O'Connell even went so far as to say, "A person's occupation and salary are two factors; I would expect those are two things we would take into consideration". So yea, cutting a deal with a Senator is advantageous, because some day you might need some help getting some legislation passed.
Like Senator Dodd's loan, this is beginning to reek of quid pro quo.
Furthermore, it appears that the Senator Obama paid $300,000 less than the $1.95 million asking price, in 2005. In 2005, the housing market was still white hot. Unlike today, when the market is lousy, buyers still have a hard time getting a low ball bid accepted. Keep in mind; a low ball bid is defined by real estate professionals as being more than 10% below the seller’s asking price. Here we have Senator Obama getting a seller in a hot market to give him a 15% discount to go with his sweetheart loan. Makes you think doesn't it?
The overt buying and selling of US politicians has to stop. Senator Obama is a prominent sponsor of a housing bailout that will surely benefit Northern Trust of Illinois. In fact, I contend that they got themselves a massive bargain when they over paid for a freshmen Senator with no influence, but it appears that their investment has matured nicely.
I have to wonder why Senator Obama didn't disclose this favorable treatment sooner, especially in light of the resignation of the head of Obama's vice presidential search committee after it was disclosed that he had received favorable treatment from Countrywide. Associate law professor Adam J. Levitin, a credit specialist at the Georgetown University Law Center said, "Do they do business like that for people who are not congressmen? If they don't, that's a problem". I think we know the answer to that question already. So here we are a Presidential candidate who has already been bought and sold. While he peddles a line of rhetoric that says he's the candidate of change, all I see here is the same old stuff, which makes Senator Obama far worse, in my opinion, than those who he claims to be fighting.
Northern Trust claims that unlike Countrywide, they had no formal program for taking care of VIPs. Sure that’s great, but it never hurts to have a Senator on the payroll, especially at the bargain basement price of $300 a month. Northern Trust Vice President John O'Connell even went so far as to say, "A person's occupation and salary are two factors; I would expect those are two things we would take into consideration". So yea, cutting a deal with a Senator is advantageous, because some day you might need some help getting some legislation passed.
Like Senator Dodd's loan, this is beginning to reek of quid pro quo.
Furthermore, it appears that the Senator Obama paid $300,000 less than the $1.95 million asking price, in 2005. In 2005, the housing market was still white hot. Unlike today, when the market is lousy, buyers still have a hard time getting a low ball bid accepted. Keep in mind; a low ball bid is defined by real estate professionals as being more than 10% below the seller’s asking price. Here we have Senator Obama getting a seller in a hot market to give him a 15% discount to go with his sweetheart loan. Makes you think doesn't it?
Monday, June 30, 2008
Senator Dodd Ceases to Amaze
While this high handed hypocrite is on vacation, along with the rest of Congress, he and his cronies have the audacity to tell the Fed, SEC and Treasury Dept that they should not take any action until they decide if its in the country's best interest. The exact quote is, "We ask that no action regarding implementation of the (agreement) be taken before we can determine that it is in the best interests of our nation's economy and the well-being of its citizens,".
Now I have to wonder if he means his best interest or his party's best interest, because I am certain that Senator with his BA in English Literature from Providence College does not qualify him to be making complex economic analysis. Nor does his JD from the University of Louisville. This guy sure did seek out the best and brightest institutions of higher education. But then we already knew that Congress was not where the best and brightest usually end up in this country.
Heck this guy didn't so much win his seat in House of Representatives in 1974, so much as ride his daddy's coat tails into office.
Now I have to wonder if he means his best interest or his party's best interest, because I am certain that Senator with his BA in English Literature from Providence College does not qualify him to be making complex economic analysis. Nor does his JD from the University of Louisville. This guy sure did seek out the best and brightest institutions of higher education. But then we already knew that Congress was not where the best and brightest usually end up in this country.
Heck this guy didn't so much win his seat in House of Representatives in 1974, so much as ride his daddy's coat tails into office.
Wednesday, June 25, 2008
Senators Are Becomming More Affordable
Senators are becoming more affordable every day. You still can't afford to buy a house, but you might be able to afford a Senator. You might even be able to get the exact Senator you want, rather than settle for a junior Senator with no influence, as if he/she were a small house out in the boonies. Even better yet, you can get the Chairmen of the Senate Banking Committee for $200 a month and NO MONEY DOWN! WOW! Sounds amazing doesn't it? But it’s true, that’s the approximate savings that Senator Dodd reaped from his sweetheart deal from Countrywide Financial.
I think the Mob pays crooked judges and cops more than that. If you feel ripped off because your tax dollars are going to bail out greedy, irresponsible, arrogant, stupid, ignorant borrowers and lenders, imagine how Tony Soprano must feel. I'd be looking over my shoulder if I were one of those guys who were over charging the mob.
What is even more amazing and hard to believe is that Senator Dodd denies that he knew he got preferential treatment. Countrywide wasn't making these deals for ordinary Toms, Dicks or Harrys. Shocking that Senator Dodd took out a half million dollar loan and knew nothing of the terms of the deal. He must be really really really wealthy. It’s even more amazing that Senator Dodd seems to have no sense for avoiding the appearance of impropriety, because the Foreclosure Relief Act of 2008 is absolutely screaming QUID PRO QUO.
Noteworthy is our hero, the man in the white hat, Representative John A. Boehner who is calling for an ethics investigation into Senator Dodd's dealings with Countrywide and major campaign contributor, Bank of America, who coincidently is buying Countrywide Financial and taking over lots of unfavorable loans. Representative Boehner said, "Democrats who receive sweetheart deals from their campaign contributors shouldn't be pushing legislation forcing taxpayers to bankroll a $300 billion bailout of scam artists and speculators, and the American people have every right to demand answers if they do". Fortunately for Senator Dodd, his crony, Representative Barney Frank is doing everything in his power as the House Financial Services Committee chairman to stifle any investigation. Wonder if he has any skeletons in his closet.
Stay tuned, this might get good.
I think the Mob pays crooked judges and cops more than that. If you feel ripped off because your tax dollars are going to bail out greedy, irresponsible, arrogant, stupid, ignorant borrowers and lenders, imagine how Tony Soprano must feel. I'd be looking over my shoulder if I were one of those guys who were over charging the mob.
What is even more amazing and hard to believe is that Senator Dodd denies that he knew he got preferential treatment. Countrywide wasn't making these deals for ordinary Toms, Dicks or Harrys. Shocking that Senator Dodd took out a half million dollar loan and knew nothing of the terms of the deal. He must be really really really wealthy. It’s even more amazing that Senator Dodd seems to have no sense for avoiding the appearance of impropriety, because the Foreclosure Relief Act of 2008 is absolutely screaming QUID PRO QUO.
Noteworthy is our hero, the man in the white hat, Representative John A. Boehner who is calling for an ethics investigation into Senator Dodd's dealings with Countrywide and major campaign contributor, Bank of America, who coincidently is buying Countrywide Financial and taking over lots of unfavorable loans. Representative Boehner said, "Democrats who receive sweetheart deals from their campaign contributors shouldn't be pushing legislation forcing taxpayers to bankroll a $300 billion bailout of scam artists and speculators, and the American people have every right to demand answers if they do". Fortunately for Senator Dodd, his crony, Representative Barney Frank is doing everything in his power as the House Financial Services Committee chairman to stifle any investigation. Wonder if he has any skeletons in his closet.
Stay tuned, this might get good.
Tuesday, June 10, 2008
Thanks Bloomberg
Thank you for reporting what I have been saying for months.
The only fix at this point is to allow nature to run its course. You can not hold back the economic tides any better than you can hold back the ocean's tides. Over the long run, the natural order of things will come to bear.
The only fix at this point is to allow nature to run its course. You can not hold back the economic tides any better than you can hold back the ocean's tides. Over the long run, the natural order of things will come to bear.
Friday, May 30, 2008
I Know Home Prices Are Falling Fast ...
I know home prices are falling fast, but really, I expected better from the Economist. Just the like our fair Senator Dodd, the Economist tried in earnest to compare the current epidemic of foreclosures to the Great Depression. From CNN, I expect this kind of populist reporting, but not from the Economist.
It's sad to see people trying to evoke a response by trying to tie our current economic maliase the Great Depression. However, as with dear Senator Dodd, the context is all wrong. 100% wrong.
During the Great Depression people were being foreclosed because our economy failed. Businesses failed, jobs were lost, people were truely in need. There were no jobs to be had. People were truely facing homelessness though no action of their own. Today, every Tom, Dick and Harry who is sweating their ARM reset is in that prediciment because they stupid, ignorant, irresponsible and probably greedy too. Unlike during the Great Depression, the people being foreclosed still have jobs, still have prospects for a rich and full life. Yet bleeding heart liberal (note: I am not right winger either) media outlets like the New York Times and CNN continue to lobby for foreclosure relief which flies in the face of common sense. The people who are at risk of foreclosure today have jobs and means to rent a new and possibly nicer home. Hell, they even have the opportunity to own a home again, once their credit rehabs, provided the current legislation proposed, does not pass in any way, shape or form.
The bill is coming due, the dumb ones who over spent are going to have to pay the piper. Nobody dances for free, we all knew that before the mortgage market began to unravel. The Foreclosure Relief Act will forsake significantly more people than it helps out. When I say "significantly more", I mean TONS MORE. Perhaps 10% of the population will benifit from this legislation while 20-30%, perhaps more will be harmed by the Foreclosure Relief Act.
No Bailout for the stupid, ignorant, irresponsible or greedy.
It's sad to see people trying to evoke a response by trying to tie our current economic maliase the Great Depression. However, as with dear Senator Dodd, the context is all wrong. 100% wrong.
During the Great Depression people were being foreclosed because our economy failed. Businesses failed, jobs were lost, people were truely in need. There were no jobs to be had. People were truely facing homelessness though no action of their own. Today, every Tom, Dick and Harry who is sweating their ARM reset is in that prediciment because they stupid, ignorant, irresponsible and probably greedy too. Unlike during the Great Depression, the people being foreclosed still have jobs, still have prospects for a rich and full life. Yet bleeding heart liberal (note: I am not right winger either) media outlets like the New York Times and CNN continue to lobby for foreclosure relief which flies in the face of common sense. The people who are at risk of foreclosure today have jobs and means to rent a new and possibly nicer home. Hell, they even have the opportunity to own a home again, once their credit rehabs, provided the current legislation proposed, does not pass in any way, shape or form.
The bill is coming due, the dumb ones who over spent are going to have to pay the piper. Nobody dances for free, we all knew that before the mortgage market began to unravel. The Foreclosure Relief Act will forsake significantly more people than it helps out. When I say "significantly more", I mean TONS MORE. Perhaps 10% of the population will benifit from this legislation while 20-30%, perhaps more will be harmed by the Foreclosure Relief Act.
No Bailout for the stupid, ignorant, irresponsible or greedy.
Tuesday, May 20, 2008
I Knew The NY Times Was Left Leaning ...
However I had no idea that they were in the business of promoting out and out socialism.
The Times rails against the President and Senate Banking Committee for not stepping forward and just throwing money at the problem. Ironically the Times is advocating using Federal money to support prices and insure mortgages. If that sounds like price control efforts that Richard Nixon advocated in during his tenure as President, your right. And coming from such a liberal media outlet, I am almost confused.
The Times cites the levels of decline over and over again in an attempt to inflame its readers and urge action to save a bunch of wildly irresponsible home owners and borrowers. The Times editorial even tries to apply the law of supply and demand, yet it ignores the basic premise of this most basic of economic theories. The editorialist believes that prices just fall and people start buying. However, this anonymous editorialist ignores the fact that real estate markets from coast to coast were dramatically over priced and over bought.
Historically, home prices double every 20 years. The nine years have seen home prices increase 85%. If this market were to reach some kind of equilibrium, prices would have to retreat a good 40% if its gains, before it could realistically start moving upwards again. The Times cites a 7.6% drop from February 2007 thought February 2008. That percentage drop represents a fraction of the correction needed to bring the market back to equilibrium so that the law of supply and demand could begin to work again.
When prices fall to levels which buyers think are reasonable, they will start buying again. Instead The Times home price levels like they are Constitutional Rights. The fact is, even in foreclosure, many homes are still priced above what is a reasonable valuation against historic real estate cycles.
In a final move of cowardice, The Times closed off its interface for readers to provide comments. The overwhelming sentiment of those comments was in deference to the anonymous editorialist. Quite frankly, I think it’s shameful for a public forum to provide an opinion on a given subject and then when it doesn't like the backlash it runs away and hides, but I guess you have to cut your losses sometimes when your DEAD WRONG!
The Times rails against the President and Senate Banking Committee for not stepping forward and just throwing money at the problem. Ironically the Times is advocating using Federal money to support prices and insure mortgages. If that sounds like price control efforts that Richard Nixon advocated in during his tenure as President, your right. And coming from such a liberal media outlet, I am almost confused.
The Times cites the levels of decline over and over again in an attempt to inflame its readers and urge action to save a bunch of wildly irresponsible home owners and borrowers. The Times editorial even tries to apply the law of supply and demand, yet it ignores the basic premise of this most basic of economic theories. The editorialist believes that prices just fall and people start buying. However, this anonymous editorialist ignores the fact that real estate markets from coast to coast were dramatically over priced and over bought.
Historically, home prices double every 20 years. The nine years have seen home prices increase 85%. If this market were to reach some kind of equilibrium, prices would have to retreat a good 40% if its gains, before it could realistically start moving upwards again. The Times cites a 7.6% drop from February 2007 thought February 2008. That percentage drop represents a fraction of the correction needed to bring the market back to equilibrium so that the law of supply and demand could begin to work again.
When prices fall to levels which buyers think are reasonable, they will start buying again. Instead The Times home price levels like they are Constitutional Rights. The fact is, even in foreclosure, many homes are still priced above what is a reasonable valuation against historic real estate cycles.
In a final move of cowardice, The Times closed off its interface for readers to provide comments. The overwhelming sentiment of those comments was in deference to the anonymous editorialist. Quite frankly, I think it’s shameful for a public forum to provide an opinion on a given subject and then when it doesn't like the backlash it runs away and hides, but I guess you have to cut your losses sometimes when your DEAD WRONG!
Wednesday, May 14, 2008
File This Under "I Told You So ... "
A while back, I warned everyone about where oil wealth was pooling, now others are writing about the same thing.
Tuesday, May 13, 2008
You Heard it Here A Long Time Ago
A Bloomberg article details how banks still have billions of dollars in unrealized losses related to the sub prime meltdown. Fortunatly? Unfortunatly? The foreign sovereign wealth funds from places like Abu Dhabi are probably going to cut their losses and see if they can cherry pick some low hanging fruit later on.
Duh!
The Wall Street Journal is reporting that the Democrats may face the rath of voters because they are pushing so hard for a housing bailout. Thankfully our President, in his first sound decision since 2002, is vowing to veto the measure. Not that the Republican plan is any better.
There are some great Youtube clips of the Republicans coming out and blasting this bailout. How could any level headed, objective person be in favor of this bailout? Nearly a 1/3 (32%) of the population rents their home, 27% of people own their home free and clear and have no mortgage, another 33% of the population is living within its means and are current on their mortgage. Which leaves another 8% of the population who are behind or in foreclosure. So, basically the Dems are going to stick 92% of us with the tab for a small fraction of the population who were, dumb, ignorant and selfish. Now granted, a small portion of the people who are still current on their mortgages must be shitting their pants, so lets say that half of the 33% who are current on their mortgages will not be without a bailout at some point. I am certain that it isn't that much, but lets cut the dumb some slack. If you assume that 25% of the population needs a bailout, your still talking about sticking it to 75% of us. Including a large portion of the renter population who were royally horned over by the dumb 25%. And its not really 25%, but that’s a nice round number, and here's what it comes down to ... The Democrats want to shaft 1/3 of us to save another 1/4 of us someplace else. This kind of thought process is just plain broken. Really, its populist, so what can any of us expect from a bunch of politicians.
There are some great Youtube clips of the Republicans coming out and blasting this bailout. How could any level headed, objective person be in favor of this bailout? Nearly a 1/3 (32%) of the population rents their home, 27% of people own their home free and clear and have no mortgage, another 33% of the population is living within its means and are current on their mortgage. Which leaves another 8% of the population who are behind or in foreclosure. So, basically the Dems are going to stick 92% of us with the tab for a small fraction of the population who were, dumb, ignorant and selfish. Now granted, a small portion of the people who are still current on their mortgages must be shitting their pants, so lets say that half of the 33% who are current on their mortgages will not be without a bailout at some point. I am certain that it isn't that much, but lets cut the dumb some slack. If you assume that 25% of the population needs a bailout, your still talking about sticking it to 75% of us. Including a large portion of the renter population who were royally horned over by the dumb 25%. And its not really 25%, but that’s a nice round number, and here's what it comes down to ... The Democrats want to shaft 1/3 of us to save another 1/4 of us someplace else. This kind of thought process is just plain broken. Really, its populist, so what can any of us expect from a bunch of politicians.
Tuesday, May 06, 2008
For Sale : The Fed Chairmen
And for that matter most other appointed and elected officials.
Ben bailed out Bear Stearns in the dark, behind the tax payers backs and got nothing for it. The American people will forgive a lot, but not the out and out corruption of its leaders and decision makers. Had Ben done this deal in full view, it might not have set off the amount of resistance that it did, but time would not allow for that. Where I think Ben failed in bailing our Bear Stearns was that he got nothing for the US tax payers. A number of times in recent history, the US government has bailed out big business and received an equity stake in return. Chrysler in the 80s comes to mind, so do the airlines following September 11th. Bailing out Bear Stearns was the right thing to do, all be it highly toxic and unpopular, but it was undeniably the right thing to do. In much the same way as George Bush shot his global credibility to hell when attacked Iraq, Bernake shot his credibility down the drain when he failed to get anything in return for the Bear Stearns bailout.
Now with no credibility for making another potential corporate bailout, Ben Bernake is reduced to pan handling for the big banks in the form of begging for an individual home owner bailout, since the administration’s soft dollar policy has failed to do anything to arrest our slide into recession. In fact, its probably contributing to our current predicament.
No BAILOUT!
Ben bailed out Bear Stearns in the dark, behind the tax payers backs and got nothing for it. The American people will forgive a lot, but not the out and out corruption of its leaders and decision makers. Had Ben done this deal in full view, it might not have set off the amount of resistance that it did, but time would not allow for that. Where I think Ben failed in bailing our Bear Stearns was that he got nothing for the US tax payers. A number of times in recent history, the US government has bailed out big business and received an equity stake in return. Chrysler in the 80s comes to mind, so do the airlines following September 11th. Bailing out Bear Stearns was the right thing to do, all be it highly toxic and unpopular, but it was undeniably the right thing to do. In much the same way as George Bush shot his global credibility to hell when attacked Iraq, Bernake shot his credibility down the drain when he failed to get anything in return for the Bear Stearns bailout.
Now with no credibility for making another potential corporate bailout, Ben Bernake is reduced to pan handling for the big banks in the form of begging for an individual home owner bailout, since the administration’s soft dollar policy has failed to do anything to arrest our slide into recession. In fact, its probably contributing to our current predicament.
No BAILOUT!
Tuesday, April 22, 2008
More Validation for Me!
Its not easy being so right about something so bad.
Many problems with mortgage bailouts
Yale economist Robert Shiller stated, "I'm not sure we can achieve continuing high home prices". Home prices are up 85% in roughly the last decade. Given the historic precedent of home prices doubling every 20 years, the recent 15% retreat in home prices is only fraction of the correction needed for the market to be at or near equilibrium. Considering the current tight credit markets, I think its safe to say that we haven't seen much more than the tip of the ice berg with respect to the correction in housing prices.
While many people think the Foreclosure Prevention Act of 2008 will arrest the slide of housing prices, they fail to grasp the concept and consequences of allowing housing prices to remain out of equilibrium with personal income. Barry Ritholtz, CEO of equity research Fusion IQ said, "If home prices don't go down, it means newlyweds can't go out and find a home they can afford". I have been saying this since Hillary Clinton first opened her yap on this subject. But I guess a PhD in economics or a successful Wall St career lends a certain amount of credibility that I don't have. Common sense just isn't worth much in this day an age.
Treasury Secretary Henry Paulson seemed to have the right idea, when he sought to insulate the major structural institutions from the housing market downturn. However, his Wall St roots can't help but allow him to be painted as being too good of a friend to Wall St. Although, some people see issues with this course of action. Keith Hembre, chief economist of First American Funds believes that by propping up the banks we are devaluing other financial objects. However, I think that he is under estimating the gravity of the situation that confronts our financial markets and banking institutions.
Many problems with mortgage bailouts
Yale economist Robert Shiller stated, "I'm not sure we can achieve continuing high home prices". Home prices are up 85% in roughly the last decade. Given the historic precedent of home prices doubling every 20 years, the recent 15% retreat in home prices is only fraction of the correction needed for the market to be at or near equilibrium. Considering the current tight credit markets, I think its safe to say that we haven't seen much more than the tip of the ice berg with respect to the correction in housing prices.
While many people think the Foreclosure Prevention Act of 2008 will arrest the slide of housing prices, they fail to grasp the concept and consequences of allowing housing prices to remain out of equilibrium with personal income. Barry Ritholtz, CEO of equity research Fusion IQ said, "If home prices don't go down, it means newlyweds can't go out and find a home they can afford". I have been saying this since Hillary Clinton first opened her yap on this subject. But I guess a PhD in economics or a successful Wall St career lends a certain amount of credibility that I don't have. Common sense just isn't worth much in this day an age.
Treasury Secretary Henry Paulson seemed to have the right idea, when he sought to insulate the major structural institutions from the housing market downturn. However, his Wall St roots can't help but allow him to be painted as being too good of a friend to Wall St. Although, some people see issues with this course of action. Keith Hembre, chief economist of First American Funds believes that by propping up the banks we are devaluing other financial objects. However, I think that he is under estimating the gravity of the situation that confronts our financial markets and banking institutions.
Friday, April 11, 2008
What a Turd
Read this story
Its the story of a moron who got in over their head and now they are basicly thumbing their noses at every single tax payer who is taking it in the back pocket while they squat mortgage free in their home in Stockton CA which is awaiting foreclosure. At one point they actually feel good that they aren't paying their mortgage, becasue they have money in the bank since they aren't paying for their mortgage that they can't afford. Just makes it burn, doesn't it?
Its the story of a moron who got in over their head and now they are basicly thumbing their noses at every single tax payer who is taking it in the back pocket while they squat mortgage free in their home in Stockton CA which is awaiting foreclosure. At one point they actually feel good that they aren't paying their mortgage, becasue they have money in the bank since they aren't paying for their mortgage that they can't afford. Just makes it burn, doesn't it?
Thursday, April 10, 2008
Wednesday, April 09, 2008
Who Would Have Thought
Who would have thought that GWB was going to be cast as the smart one in the sub-prime meltdown? I sure didn't, but just as the do nothing Congress gets off its preverbal ass to do something, the wrong thing, W is there waiting to slap them down.
At yesterday's White House briefing, Spokeswoman Dana Perino gave the bill an emphatic thumbs down, saying it would be counterproductive, do more harm than good, and not be supported by the President.
"The bill will likely do more harm than good by bailing out lenders and speculators, and passing on costs to other Americans who play by the rules and honor their mortgage debt obligations."
While I have been an epic critic of GWB and the Fed, for once I find myself on the same side of the fence with him. It surely can't last long, but for now, I am enjoy a return to the dark side, my Republican roots, that W has worked so hard for the last 7 years to kill off. While they were almost dead, Clinton and Obama (who I was actually close to endorsing) managed to resuscitate them in one short sentence each, affirming their support for an individual homeowner bail out.
Now if the Fed would just get themselves an equity stake with the stealth banking bail out thats going on right now, all would be right in the world.
At yesterday's White House briefing, Spokeswoman Dana Perino gave the bill an emphatic thumbs down, saying it would be counterproductive, do more harm than good, and not be supported by the President.
"The bill will likely do more harm than good by bailing out lenders and speculators, and passing on costs to other Americans who play by the rules and honor their mortgage debt obligations."
While I have been an epic critic of GWB and the Fed, for once I find myself on the same side of the fence with him. It surely can't last long, but for now, I am enjoy a return to the dark side, my Republican roots, that W has worked so hard for the last 7 years to kill off. While they were almost dead, Clinton and Obama (who I was actually close to endorsing) managed to resuscitate them in one short sentence each, affirming their support for an individual homeowner bail out.
Now if the Fed would just get themselves an equity stake with the stealth banking bail out thats going on right now, all would be right in the world.
Monday, April 07, 2008
The Over Flow Has Begun in Earnest
Municipalities and businesses alike are beginning to take it on the chin thanks to the sub-prime melt down. Its seems as if everyone was looking for a short cut. The market for auction-rate securities has plunged like Brittany Spears' underwear. The District of Columbia is now paying an additional $1.2 million a month to cover the interest on these securities they sold to cover the cost of building Nationals Stadium. I wonder what that foreclosure will look like. Its not just poor relation municipalities taking in the back pocket either. Hospitals, universities and even the NY/NJ Port Authority are neck deep in these cut rate debt obligations. Apparently, nobody thought the rates would go up or that the market for them would go to hell.
Granted, I can only say that I thought that housing prices would have to collapse sooner or later, I can't lay claim to seeing anything further than that. Although Nouriel Roubini probably did, but nobody listened to him. He was the biggest bear, caught in the middle of the biggest bull market anybody, anywhere has ever seen. I think its safe to say the cascade will be far reaching and perhaps worse than anyone could imagine. Public works will grind to a halt as politicians look for ways to stretch their shrinking tax base to cover rapidly growing interest payments. Universities will be forced to make tough decisions on staffing, up keep on their physical plant and quality of their programs.
The question on the tip of everyone's tongue is when will the end come, and the undeniable answer is no time soon. Certianly not while nood-nick, know nothing Senators like Christopher Dodd keep trying to meddle in markets which they know nothing about and aren't qualifed to be making adjustments to. At this time, the most prudent course of action has to be one of inaction, for any move made right now, is likely to only prolong the markets finding a proper equilibrium. Our check is coming and its going to be a big one. Putting it off only makes it worse.
Granted, I can only say that I thought that housing prices would have to collapse sooner or later, I can't lay claim to seeing anything further than that. Although Nouriel Roubini probably did, but nobody listened to him. He was the biggest bear, caught in the middle of the biggest bull market anybody, anywhere has ever seen. I think its safe to say the cascade will be far reaching and perhaps worse than anyone could imagine. Public works will grind to a halt as politicians look for ways to stretch their shrinking tax base to cover rapidly growing interest payments. Universities will be forced to make tough decisions on staffing, up keep on their physical plant and quality of their programs.
The question on the tip of everyone's tongue is when will the end come, and the undeniable answer is no time soon. Certianly not while nood-nick, know nothing Senators like Christopher Dodd keep trying to meddle in markets which they know nothing about and aren't qualifed to be making adjustments to. At this time, the most prudent course of action has to be one of inaction, for any move made right now, is likely to only prolong the markets finding a proper equilibrium. Our check is coming and its going to be a big one. Putting it off only makes it worse.
Sunday, April 06, 2008
Speaking of Irony
The Washington Post is reporting the Mortgage Bankers Association might not be able to afford its nice, new, shiney, big building in downtown Washington DC. The group's budget has been squeezed by membership that has been reduced by 17%, because sham, sub-prime brokerage firms went busto. Two senior VPs have jumped, like rats off a sinking ship. Furthermore, as closing time approaches, the group's borrowing costs are rising and their prostpects for leasing out space in the build are drying up. Tough break for those who were just laid off to support the MBA's hubris.
You've gotta love it when irony comes home to roost.
You've gotta love it when irony comes home to roost.
Saturday, April 05, 2008
Public Enemy #1 - Senator Chris Dodd
This week Senator Dodd wheeled out a bailout package that will forsake every single person in this country who currently does not own a home. He also did significant favor for the home building and real estate industries. He was promptly called out for doing this favor for big business, but most people still seem to be ignoring the long range implications of any individual home owner bailout. So after being called out, Senator Dodd retreated like a Washington Redskins corner back by saying, "I would have been more moderate on that, to put it mildly" and he acknowledged that he had reservations about the business-tax breaks, but he still put them out there in the hope that they would slide on by. So now, in addition to selling every single tax payer down the river to pay for this bailout, Senator Dodd is proposing that people who are late with mortgage payments take money penalty-free from their retirement accounts. That’s just brilliant Senator Dodd, so in 2008 we will bail these people out of their bad mortgages and in 2040 we get to bail them out again because they have no retirement savings. Absolutely brilliant. I don't know where Senator Dodd gets his ideas from, but I am fairly sure my 6th grade social studies class could have figured out a better plan than wrecking our economy for years to come, just to save a relative handful of foolish, ignorant, stupid and reckless homeowners.
No thanks Senator Dodd. No Thanks Representative Barney Frank and of course, lets not forget Senator & Presidential candidate Hillary Clinton, who opened her mouth first about an individual homeowner bail out.
Friday, April 04, 2008
The Needs of the Many ....
The primary problem I have with this bill is that it does nothing to address the disparity between home prices and personal income. Growth of home prices has vastly out paced the growth of personal income for more than a decade. At this point, anything that maintains the current home prices will only prolong the problem and likely make it worse. If this bill passes as is, nobody who doesn't own a home today will EVER be able to afford a home since just about every single market in the country is over priced and the cost of borrowing is going to go through the roof if lenders have to worry about bankruptcy court modifying the loan terms and writing down the principal. $7000 or even $15000 would do nothing to spur investment in markets like the west coast or around any large city.
The only possible outcome would be rampant inflation of personal incomes and the goods/services that aren't housing related. That would turn our dollar into the Peso or Yen.
Unfortunately, I think the time has come for America to take its medicine. Those who took the short cut are going to have to pay the price and lose their homes. I don't see any way to fix the problem, without making a bigger problem down the road. Lets not forget that its not 1929. There isn't rampant unemployment. Just about everyone who is losing their homes due to a sub-prime mortgage has a job and the means to rent. And as long as this bill doesn't pass, they will have the opportunity to own a home again some day when their credit rehabs.
The paper gains people have made on their houses, without selling are just that. Paper gains. Granted a home is usually a much bigger investment. A much more emotional investment than say stock options from 2001, but its really no different. I, along with many friends had enormous paper net worth’s that evaporated as the dot com bubble burst leaving us with only a tax write off on the options we paid taxes on. Some of us were worth millions and ended up with a few thousand. Most of us got nothing.
This bailout is very expensive. It’s very difficult to implement. Its has a significant likelihood of making things worse. This bill will help alarmingly few people in relation to the whole population of the American home owners and citizens in general. It forsakes the next generation's ability to pursue their American dream.
The needs of the many must be accounted for before the needs of the few. While it might be distasteful to see the CEO of Bear Stearns cash out $63 million from a company that was run into the ground but, preserving the integrity of our financial institutions benefits every American and perhaps every citizen of the world.
I urge everyone to contact their Senators and Representative and tell them you will not support them with your time, money or votes in their next election if they support this legislation.
List of Senators
List of Representatives
The only possible outcome would be rampant inflation of personal incomes and the goods/services that aren't housing related. That would turn our dollar into the Peso or Yen.
Unfortunately, I think the time has come for America to take its medicine. Those who took the short cut are going to have to pay the price and lose their homes. I don't see any way to fix the problem, without making a bigger problem down the road. Lets not forget that its not 1929. There isn't rampant unemployment. Just about everyone who is losing their homes due to a sub-prime mortgage has a job and the means to rent. And as long as this bill doesn't pass, they will have the opportunity to own a home again some day when their credit rehabs.
The paper gains people have made on their houses, without selling are just that. Paper gains. Granted a home is usually a much bigger investment. A much more emotional investment than say stock options from 2001, but its really no different. I, along with many friends had enormous paper net worth’s that evaporated as the dot com bubble burst leaving us with only a tax write off on the options we paid taxes on. Some of us were worth millions and ended up with a few thousand. Most of us got nothing.
This bailout is very expensive. It’s very difficult to implement. Its has a significant likelihood of making things worse. This bill will help alarmingly few people in relation to the whole population of the American home owners and citizens in general. It forsakes the next generation's ability to pursue their American dream.
The needs of the many must be accounted for before the needs of the few. While it might be distasteful to see the CEO of Bear Stearns cash out $63 million from a company that was run into the ground but, preserving the integrity of our financial institutions benefits every American and perhaps every citizen of the world.
I urge everyone to contact their Senators and Representative and tell them you will not support them with your time, money or votes in their next election if they support this legislation.
List of Senators
List of Representatives
Wednesday, April 02, 2008
In Layman's Terms
I'll put this in relatively simple terms so that even the intellectually challenged can understand.
Imagine 2 people sitting at a blackjack table. One is your average young person. They have a few bucks in their pocket, they are just getting started. The other person is your sub-prime borrower. The young person has read up and studied the game of blackjack and is going to play perfect basic strategy blackjack, while the sub-prime guy is not playing smart strategy. Throughout the game, the sub-prime guy takes cards or stands at inopportune times, thus messing up the game for the whole table, especially the basic strategy guy. At the end of the night when the basic strategy guy and the sub-prime guy leave the casino broke, someone gives the sub-prime guy his money back. And just to make things stick a little for the basic strategy guy, he's forced to go to the ATM and withdraw cash to cover a portion the sub-prime guys loss.
Imagine 2 people sitting at a blackjack table. One is your average young person. They have a few bucks in their pocket, they are just getting started. The other person is your sub-prime borrower. The young person has read up and studied the game of blackjack and is going to play perfect basic strategy blackjack, while the sub-prime guy is not playing smart strategy. Throughout the game, the sub-prime guy takes cards or stands at inopportune times, thus messing up the game for the whole table, especially the basic strategy guy. At the end of the night when the basic strategy guy and the sub-prime guy leave the casino broke, someone gives the sub-prime guy his money back. And just to make things stick a little for the basic strategy guy, he's forced to go to the ATM and withdraw cash to cover a portion the sub-prime guys loss.
Tuesday, April 01, 2008
Dear Senator
Dear Senator So-and-so, I would respectfully request that the tax dollars I am sending the IRS next week be earmarked for something less wasteful and more beneficial than this bailout, like the war in Iraq.
Signed,
A Taxpayer
Signed,
A Taxpayer
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