It depends. With most banks having failed in 2008, and with the introduction of new banking bill, I don't think banks will be lending easily now. Not at the expense of going bankrupt themselves.ramana wrote:So right now $7T worth of property is being mortgaged at $11.68T a gap of ~$4.68T? So banks must be making lots of money by not rewriting the loans. In what time period will the $7T equal the $11.68T in mortgages at say 5% growth? If its too long then defaults will increase.
Most of the money went to dilute the red ink (cover losses). Some leftover are being hoarded to prepare for the upcoming recession. Hoarding by big banks clearly points to signs that recession is coming.SwamyG wrote:^^^
The bill is an excuse for the banks. They were bailed out by both the administrations; they did not lend as expected. What did they do with the money, huh? They did not even trust each other enough....enuf said.
Creating A City
“I’m a big city person, and I always thought Miami didn’t have a real city,” said Dejan Krsmanovic, a 39-year-old biomedical engineer who was on a first date at Segafredo, a busy Italian restaurant and bar that opened in 2008 in the adjacent Brickell neighborhood, where the same trend is playing out.
“Miami Beach is not a city, it’s a resort,” he said. “This is beginning to resemble a city.”
The unsold condos represent almost a third of the 22,079 units in 75 buildings, mostly opened after 2004, tracked in a study released in March by the Miami Downtown Development Authority. The report focused on central neighborhoods including Downtown, Brickell and Wynnwood/Edgewater.
Occupancy rates in the new buildings, including owner- occupants and tenants, increased to 74 percent in February from 62 percent in May 2009, the study shows.
Price Cuts
The development authority estimates that the population of Miami’s urban core jumped to about 70,000 from 40,000 since the 2000 census, said authority spokesman Robert Geitner.
“For us, it doesn’t matter whether they rent or buy,” said Miami Mayor Tomás P. Regalado. “The more people, the more business, the more safety, the more progress.”
The influx of college students, young professionals and empty nesters from the Coral Gables section of the city and the suburbs intensified about 18 months ago when banks that financed the condo projects agreed to let developers slash sales prices by as much as 40 percent, said Peter Zalewski, a principal with consulting firm Condo Vultures LLC in Miami. That spurred demand from foreign buyers and all-cash investors, many of whom are renting out their units until prices rebound, he said.
The Miami metro rental market is one of the strongest in the country, according to Ron Johnsey, president of Axiometrics Inc., an apartment-research firm in Dallas. That’s the case even though unemployment is more than 11 percent, compared with 9.5 percent nationally, and developers are adding to supply by leasing units built for purchase.
Peter Sutherland
Peter Sutherland
Director-General of the World Trade Organization
In office
Peter Denis Sutherland, KCMG (hon) (born 25 April 1946) is an international businessman and former Attorney General of Ireland, associated with the Fine Gael party (part of the Christian Democrat bloc). He is a barrister by profession, and is also Senior Counsel at the Irish Bar. He is also known for serving in a variety of business and political roles.
He is non-executive Chairman of Goldman Sachs International (a registered UK broker-dealer, a subsidiary of Goldman Sachs). He was previously non-executive chairman of BP and was a director of the Royal Bank of Scotland Group until he was asked to leave the board when it had to be taken over by the UK government to avoid bankruptcy. He also formerly served on the board of ABB.
He is on the steering committee of the Bilderberg Group [1], a chairman of the Trilateral Commission[2] and vice chairman of the European Round Table of Industrialists.[3]
He is a member of the Comite d'Honneur of the Institute of European Affairs, and an Honorary President of the European Movement Ireland.[4]
Peter Sutherland (left) speaking with Garret FitzGerald (centre) and Will Hutton (right), at the Institute of European Affairs in Dublin in 2006.
He was appointed as a member of the Hong Kong Chief Executive's Council of International Advisers in the years of 1998–2005.[5]
He is President of the Federal Trust for Education and Research, a British think tank. He is Chairman of The Ireland Fund of Great Britain, part of The Ireland Funds.[6] He is a member of the advisory council of Business for New Europe, a British pro-European think-tank.[7]
In 2005, he was appointed as Goodwill Ambassador for the United Nations Industrial Development Organization.[8] In Spring 2006 he was appointed Chair of London School of Economics Council commencing in 2008.[9]
Britain ain't 'great' for nothing. And a mere 20% by 2012 is nothing, trust me. 90%? Now, thats 'great', sort of.UK House prices 'to crash 20pc by 2012' as Budget bites, says Capital Economics http://bit.ly/9WiMsH (We're predicting 90pc declines BTW)
Muni worries are overdone. DC will bailout the munis by the boatful when push meets shove, IMHO.Municipal Bond Defaults at Triple the Typical Rate http://bit.ly/aF6nMY (The stirrings of trouble as communities are pushed to the edge)
Yawn, basically.Great FDIC Friday bank closure bash so far. 6 banks knocked out today, yearly total to 96. #TGIF
23.5 percent of office space in Las Vegas is now vacant http://bit.ly/drsU2b
Moody's Downgrades $16.7B Of Morgan Stanley's Subprime RMBS as residential market continues to deteriorate http://bit.ly/9Nhlu7
Bank of America Slides as Net Income, Revenue Drop http://bit.ly/cAjsBH (Once again, more creative accounting and mark to fantasy trickery)
Citigroup Profit Falls 38pc as Trading Revenue Drops http://bit.ly/9VGNbv (Even with all their sham accounting & trickery profits fell,LOL)
Profound or what?The rules of the system are designed by those responsible for the greatest looting of public coffers in history. #Tragic beyond words.
There is no justice. There are only lies and deception. The #SEC is a joke and so is any notion of the rule of law. #Goldman #Tragedy
Some specifics on big-bank crimes, plz?So that's it? If you or I commit a felony we go to jail. Goldman gets to f***ing 'settle'? $550 Million settlement, they make that in 1 week
Wall St Is Laundering Drug Money And Getting Away With It (Wachovia apparently laundered $380 BN. Fine just $160 mn) http://bit.ly/bv0lQC
Banks repossess homes at record pace: RealtyTrac (Will likely top 1 Million this year) http://bit.ly/9AoR8j
CPI numbers put out by govt are fake.ramana wrote:The flat CPI is turning up scares of deflation.
Well, certainly lotsa generalizations, anecdotal evidence and the like out there but hard to fault the grain of truth in the argument's kernel, eh? Just saying only. I expect things to get better in a few yrs. Till then, hang on and ride the storm out. Or so I hope.Over a generation ago, a family of four could be supported by a single income.
Soon, it took that same family of four two incomes to get through.
Then, two incomes turned into two incomes + leverage.
Today, that family of four has lost one of those jobs and the leverage blew out 2.5 years ago.
The government is taking on an additional 200bn each month in spending and has gotten what in return?
25% of Americans now have a FICO score below 600 and 100 banks have been closed down this year.
Sales tax revenues are imploding.
blah blah blah
hi swamygal,SwamyG wrote:^^^
hari...you seems to have a change of heart. Why so openly optimistic about maasa?
I think AEP said it wonderfully well in 1 of his alarmist rants'if i owe $100,000 to the bank, I'm scared of the bank.If I owe $100 million...better still 100s of billions.....the bank better be scared of me.'
lastly, moi fully expects a glowrious revolution to come to yumreeka once things get revolting enough. Best case is a Ron Paul moment. Else a 'gather your arms and march to DC' kinda revolution. 'em khan civilians too own guns by the ton and won't march silently to the gas chambers, no sir.Well-armed sovereign states can do bloody well anything they want.
Botoxonomics?? LOLBotox is commonly used to improve a person’s appearance by removing facial lines and other signs of aging. The effect is temporary and can have significant side effects. The world is currently taking the “botox” cure. A flood of money from central banks and governments — “financial botox” — has temporarily covered up unresolved and deep-seated problems.The surface is glossy and smooth, the interior decayed and rotten
Yup, but what sustained gubmint axn did achieve was that it destroyed credibility of accounting standards, numbers and statements - perhaps irretrievably. I know of no serious econo-observer who takes accounting statements, of corporates and esp of gubmints at all levels atface value anymore.The 2009 ‘recovery’ was based on low or zero interest rate policies (“ZIRP”) of major central banks. Massive government intervention also helped arrest the rate of decline of late 2008/ early 2009. Without government support, it is highly probable that most economies would have been in serious recession. Just as China practised capitalism with Chinese characteristics, developed economies discovered socialism with Western characteristics.
Capital injections, central bank purchases of “toxic” assets and explicit government support for deposits and debt issues helped stabilise the financial system. Changes in accounting rules deferred write-downs of potentially bad assets. Despite these actions, the global financial system remains fragile.
O yes, mark my words, it is unemploymt which will turn the tables on US elites that have gotten away with loot n grand theft and larceny of real wealth from the US middle class on a scale unprecedented since the colonization of India. Its the unemplymt stupid. Indeed.Employment, a key indicator given the importance of consumption in developed economies, continues to decline albeit at a slower pace. In the U.S., unemployment reached 10%.
In many countries enforced reduction in working hours and taking paid or unpaid leave reduced the rise in unemployment levels significantly. Working hours and personal income have fallen.
Changes in the structure of the labour force also distort the real picture. If workers working part time involuntarily and looking for full time employment are included, the U.S. underemployment figure is in the 16-18% range. Long term and youth employment also remains high.
Add Germany to that.Bade wrote:The three large economies that are guaranteed to survive any extended global recession are going to be China, India and USA.
50 EYE OPENING STATISTICS ABOUT THE US ECONOMY
Written by TheCrossHairsTrader - 7/12/10
#50) In 2010 the U.S. government is projected to issue almost as much new debt as the rest of the governments of the world combined.
#46) Total U.S. government debt is now up to 90 percent of gross domestic product.
#45) Total credit market debt in the United States, including government, corporate and personal debt, has reached 360 percent of GDP.
#43) There are now 8 counties in the state of California that have unemployment rates of over 20 percent.
#41) In February, there were 5.5 unemployed Americans for every job opening.
#40) According to a Pew Research Center study, approximately 37% of all Americans between the ages of 18 and 29 have either been unemployed or underemployed at some point during the recession.
#39) More than 40% of those employed in the United States are now working in low-wage service jobs.
#37) Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008. Not only that, more Americans filed for bankruptcy in March 2010 than during any month since U.S. bankruptcy law was tightened in October 2005.
#35) RealtyTrac has announced that foreclosure filings in the U.S. established an all time record for the second consecutive year in 2009.
#29) For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.
#25) In 2009, U.S. banks posted their sharpest decline in private lending since 1942.
#24) New York state has delayed paying bills totalling $2.5 billion as a short-term way of staying solvent but officials are warning that its cash crunch could soon get even worse.
#23) To make up for a projected 2010 budget shortfall of $280 million, Detroit issued $250 million of 20-year municipal notes in March. The bond issuance followed on the heels of a warning from Detroit officials that if its financial state didn’t improve, it could be forced to declare bankruptcy.
#19) According to EconomicPolicyJournal.com, 32 U.S. states have already run out of funds to make unemployment benefit payments and so the federal government has been supplying these states with funds so that they can make their payments to the unemployed.
#10) The Dow Jones Industrial Average just experienced the worst May it has seen since 1940.
#4) According to a new report based on U.S. Census Bureau data, only 26 percent of American teens between the ages of 16 and 19 had jobs in late 2009 which represents a record low since statistics began to be kept back in 1948.
#2) During the first quarter of 2010, the total number of loans that are at least three months past due in the United States increased for the 16th consecutive quarter.
#1) According to the Tax Foundation’s Microsimulation Model, to erase the 2010 U.S. budget deficit, the U.S. Congress would have to multiply each tax rate by 2.4. Thus, the 10 percent rate would be 24 percent, the 15 percent rate would be 36 percent, and the 35 percent rate would have to be 85 percent.
You can catch the complete list of 50 here.
There is no question about it. I have been saying the same thing. I often wonder if we need to include Russia or Brazil in them. I just don't include them because of their relatively smallish population.Bade wrote:The three large economies that are guaranteed to survive any extended global recession are going to be China, India and USA.
It is not so much the US that has pushed all these jobs overseas, it is market forces responsible for this, and thus a normal part of economic growth. The solution to this isn't to bring these jobs back, but to retrain workers to do higher level work. That's the part that is always left out.SwamyG wrote: I have nothing against the theory per se; I understand it has assumptions to go with too. Running a country is not the same as running an economy, one reason why when somebody suggests that we should have a successful CEO run the country I get immense takleef.
A great example is nana sa pyara sa maasa. Look what is happening to it, it has dished out major manufacturing jobs to developing countries thinking about the bottom line. People are running out of jobs now. Vast prosperity increased their population, lifestyle and life span. Now it needs jobs to support their standard of living. Building airplanes for rest of the World is not going to feed and provide health for them all.
Why would anyone retrain an American worker to do higher level work when its far cheaper to have that higher level work done overseas?Carl_T wrote:It is not the US that has pushed all these jobs overseas, it is market forces responsible for this, and thus a normal part of economic growth. The solution to this isn't to bring these jobs back, but to retrain workers to do higher level work.
USA allowed the market to dicate its future. This retraining of people to do higher level work of is nice and dandy on paper. What exact sort of work do you have in mind?It is not so much the US that has pushed all these jobs overseas, it is market forces responsible for this, and thus a normal part of economic growth. The solution to this isn't to bring these jobs back, but to retrain workers to do higher level work. That's the part that is always left out.
Yes, you are correct. But it akin to saying, look at the baseball player he can hit a 1000-yd homer. Guess what he is on steroids. When on drugs one can certainly perform better, but the drug will leave an impact on the health of the individual and the nature of the game. It is unnatural.Pushing manufacturing jobs overseas has also had vast benefits for the US as well, giving the US access to cheap goods therefore reducing cost of living. I think you can imagine what prices might be like if the goods you use were made in US.
LoL. Are you working for or against MaasaThe US needs to keep moving low skilled jobs overseas or importing people to do low-skilled work while investing in the skills of its workforce. That has to be done at the same time as reducing budget deficits etc. I think the US will do well in the future as long as deficits are reduced and there is human capital growth.
? "human capital growth"? Between you and me, can you tell me what exactly it means. Remember, what talking to me you have to use simple language. Words from marketing literature and MBA books fly straight over my head like a bouncer. Apart from that I think these days the Western ideas have to be given a second thought.Dr. Elizabeth Warren is one of the few honest persons in the US govt. She's been speaking out against abuses by credit card companies and other wall street scammers trying to game the system and bail themselves out at taxpayer's expense.shyam wrote:Tim Geithner Opposes Nominating Elizabeth Warren To Lead New Consumer Agency