Banks do not have large amounts of cash Davdah. To them, that is inventory. They want the money to work for them. Cash in the bank are the required reserves and emergency funds for unexpected events. The
Key word, Required reserves. For what reason is the answer.
quote:
Home prices differ from one year to the next. Property values is not the same as home values. Even if you bought a foreclosed home in the area at 30 cents for every dollar, your property tax would still be the same. That is how Texas law works here.[/b]
Not exactly. When the assessor does the valuation its supposed to be based on probable market value. Which to some extent does not take into account individual distressed sales price. But does take into account overall market conditions. For example. If a single home is discounted for what ever reason it won't impact the tax base since all homes are not in trouble.
If most of the homes in the area are down and out it will affect it. Something not found in San Antonio. The values have been stable or even increased a small amount.
[quote]Davdah, you are referring to the repeal of the Glass-Stiegal Act, This was done in 1999 under a Republican Congress and a Democratic President. this link describes how home prices have risen beyond what the consumer was available of paying. This is what I am saying Davdah. Yes, people have refi every two or three years
Not referring to glass-stiegal at all. Just common sense. On the original trust deeds the lender can not get a deficiency judgment against the borrower if the foreclosed property sells for less than the loan balance. Which in the past motivated lenders to start the bidding at the loan balance.
Here is where things get really twisted. The areas that are up side down are very specific. Not market wide. So the justification for the banks giving up those huge percentages without a fight doesn't make much sense. Unless they knew beforehand that someone else would be picking up the tab on the difference. Further the fact they are trust deeds and not mortgages with recourse against the borrower should have stymied most of the short selling since that is an instant loss. Something isn't right. No one, especially the greediest of all, the banks. Gives up that kind of money without a plan.
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
WASHINGTON (Dow Jones)--Top executives with Citigroup and Bank of America Wednesday told U.S. lawmakers they'd be willing to suspend foreclosures until President Barack Obama's administration unveils a new plan to help troubled homeowners keep their homes.
"If we could put a timeframe on it, we would do it," said Bank of America (BAC) Chief Executive Kenneth Lewis, who appeared with seven other top bankers at a House Financial Services hearing aimed at examining how banks are using government funds provided through the $700 billion Troubled Asset Relief Program.
Citigroup (C) Chief Executive Vikram Pandit also said he was willing to commit to helping more homeowners stay in their homes.
Its about time someone listened. This isn't about helping deadbeats who got mortgages they couldn't afford. More about stopping the slide in values of those that were responsible. They want a time frame? How about at least 6 months like I suggested.
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
Cuomo blasts Merrill executives on bonus plan NEW YORK – New York Attorney General Andrew Cuomo laid out further details Wednesday about $3.6 billion in bonuses Merrill Lynch & Co. executives received, calling the investment bank's executives irresponsible.
Cuomo detailed the size and scope of the bonuses in a letter sent to U.S. House Financial Services Chairman Barney Frank.
NEW YORK (Marke****ch) -- Treasury prices rose Thursday, pushing yields lower, after a government report showed continuing stress in U.S. employment and amid rising concern that lawmakers' plan to stimulate the economy will not be effective.
U.S. government debt briefly pared gains after the Treasury sold $14 billion in 30-year bonds, finishing off the massive amount of debt sold this week in the government's quarterly refunding.
The Treasury sold the 30-year bonds to yield 3.540%, the lowest on record.
Two-year note yields , which move opposite to prices, fell 4 basis points to 0.89%. A basis point is 0.01%.
Ten-year note yields were little changed at 2.79%.
Yields on the most-recently sold 30-year long bond rose 6 basis points to 3.51%.
Treasuries rise when the market looks bad. Yet the market reflects off government reports. The same reports that inversely affect t-bills. Are we to trust the reports as being unbiased when those giving it stand to gain from it leaning one way or the other?
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
WASHINGTON (Dow Jones)--JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and Bank of America Corp. (BAC) have committed to weeks-long moratoriums on foreclosures as the government works on a financial stability plan slated to include billions of dollars aimed at keeping people in their homes.
"We will not add to the foreclosure process any new owner-occupied residential loans that are owned and serviced by JPMorgan Chase," the company's chief executive, Jamie Dimon, said in a letter Thursday to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee.
The moratorium on new foreclosure actions will remain in effect through March 6 and is similar to a 90-day foreclosure freeze JPMorgan announced Oct. 31.
90 foreclosure feeze. They should be careful though. Obama and his crew may decide people should have the house for free and mandate the freeze indefinitely.
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
Something to consider when hoping for debt relief. When any creditor forgives a debt the IRS counts that as income to you. And of course wants their cut of money that never existed.
And before anyone on the left tries to take credit for this. Back in 07 while Bush was in office. A bill was passed that exempted the mortgage debt forgiven from being taxed. If you lose your house Obama won't be able to strip any more of your dignity away by putting you in tax prison. Say thanks to the repubs for that one.
...more details.
NORTH BAY – The Mortgage Forgiveness Debt Relief Act, signed on Dec. 20, 2007 by President Bush, gave homeowners conducting short sales an exemption from paying tax on the forgiven debt if they met certain criteria. But beginning in 2010, the forgiven debt will once again be considered taxable income.
You can count on Obama not reinstating this relief. If you're going to walk better do it soon while republican tax relief can still be taken advantage of.
This message has been edited. Last edited by: davdah,
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
All I know, Is, I want a free house toooo!!! Forget the Taxes!!! His Choices Do!!!
USC and Legal, Honest Immigrant Alike Must Fight Against Those That Deceive and Disrupt A Place Of Desirability! All Are Victims of Fraud, Both USC and Honest Immigrant Alike! The bad can and does make it more difficult for the good! Be careful who you blame!!! kami ay nanonood!!!
SAN FRANCISCO (Marke****ch) -- Bargain shoppers, beware. The last time a major economy experienced repeat price cuts across a broad range of consumer goods, the stock market lost 80% of its value and unemployment hit its highest level since World War II.
That was the outcome of Japan's bruising bout with deflation, which crept into the world's second-largest economy in the mid-1990s and didn't let up until 2006.
As unappetizing as it sounds, a U.S. version of Japan's so-called lost decade could be in the works.
A two-year slump in house prices has spread into a broad recession, sapping demand and driving down prices of manufactured items like cars and clothes as well as commodities like gasoline and milk. The consumer price index, the most widely watched barometer of inflation, will likely go negative this year.
Deflation isn't here yet, says Sherry Cooper, chief economist for BMO Capital Markets, "but it's the closest we've come since the Great Depression."
"Housing prices are falling, commodity prices are falling, so are lots of goods and services -- that sounds scary to me," she said.
And some of the projections are enough to keep folks up at night. U.S. consumer inflation is expected to fall 2% this year, according to RGE Monitor, the economic research firm lead by New York University's Nouriel Roubini. The group also predicts deflation could persist until 2010 while the country flirts with "a near depression," says Christian Menegatti, an RGE analyst...
What this means is our dollar will become in a sense stronger. Not a good thing. Foreign countries will be able to further undercut our prices. We will help them out of their recession but screw ourselves. The fed needs to raise rates to cause some inflationary pressure. The stimulus bill is preventing this due to the large low interest rate loans given. Should have went with tax cuts. Fire Geitner and get a republican to run the treasury before he bankrupts us all. I'll do it for free.
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
Here we have Barney Frank. Who with his boyfriend working at fannie mae up until recently insisted there were no problems in the mortgage industry.
If one can imagine. What was pro ported to be an elegant ballroom dance turned out to be an old man dressed in a dirty pink tutu. Standing in the middle of Broadway. In the rain. Dancing alone.
And there is more. Recently the excesses of banking execs and their bonuses were made public. In a fit of rage Obama declared it obnoxious and added pay limiting provisions to the bail out. There might be some justification to that. It might be fair to say if you want help there will be conditions.
Barney feels we should go a step further. He believes pay to all execs of all companies should be limited. Not just those asking for a handout. All companies. After all. Its the pay to the company's owners that caused this mortgage mess. To understand this logic think of Barny in his tutu and listen to this
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
Kansas running out of money State suspends tax refunds; payroll might be next
TOPEKA, Kan. -- Kansas has suspended income tax refunds and may not be able to pay employees on time, the state's budget director said today.
The state doesn't have enough money in its main budget account to pay its bills, prompting Democratic Gov. Kathleen Sebelius to suggest transferring $225 million from other accounts throughout state government. But the move required approval from legislative leaders, and Republican leaders refused Monday.
DETROIT (Dow Jones)--General Motors Corp. (GM) expects to submit a government-mandated recovery plan at 5 p.m. EST on Tuesday, although the report might not include critical concessions from the company's labor unions and bond holders.
Chrysler LLC is working on a similar disclosure and expects to release its plan around 5 p.m. EST as well.
The two auto makers, surviving on $17.4 billion in federal aid, are required to submit detailed restructuring plans to the U.S. Treasury on Tuesday as a condition of the loans.
GM shares were down 13.5%, or 34 cents, at $2.16 in recent trading. The auto maker's stock has lost more than 90% of its value in the last year.
At GM, overnight negotiations with the United Auto Workers failed to produce a deal that would substantially cut labor costs, sources familiar with the talks said. Bargaining continued Tuesday.
And unions are a good thing? For who? There won't be a job to negotiate a wage for. There won't be a company to work for. The only winners will be the Gotti style union bosses who collected dues from the idiot members.
WASHINGTON (Marke****ch) -- The Obama administration unveiled a plan Wednesday to help 9 million "at risk" homeowners modify their mortgages, committing $75 billion of taxpayer money to back the initiative.
The plan contains two separate programs. One program is aimed at 4 million to 5 million homeowners struggling with loans owned or guaranteed by Fannie Mae (FNM, Trade ) or Freddie Mac (FRE, Trade ) to help them refinance their mortgages through the two institutions.
A separate program would potentially help 3 million to 4 million additional homeowners by allowing them to modify their mortgages to lower monthly interest rates through any participating lender. Under this plan, the lender would voluntarily lower the interest rate, and the government would provide subsidies to the lender. Read the summary .
Lets see if we got this right. People who were reckless will qualify for lower rates.
People who are not in trouble will get shafted with higher rates. Will people be motivated to get a loan. Get themselves into financial trouble to qualify for a lower rate? What happened to being a good steward? Earning rewards of lower rates for financial responsibility?
I think I got this figured out. The home ATM re-born! There will be a bank run after all. Not to take their money out, no. Applications for seconds, thirds, and equity lines will flood the loan officers desk. With each new loan the possibility of qualifying for a lower mortgage rate predicated on carelessness. What a plan!
Further, these lower rates will have the affect of negative pressure on the prime rate creating two indexes. One is the real prime rate with the other born out of thin air. The further apart they are the greater the impact on the economy. Same as with home prices and the inflation index. Didn't we just do that?
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
DETROIT, Feb 18 (Reuters) - A government-backed bankruptcy reorganization may still be a viable option for saving General Motors Corp (GM) and Chrysler LLC, analysts said on Wednesday, even though the automakers have said they would rather not go down that road.
GM and Chrysler asked for billions of dollars more in federal aid on Tuesday and announced sweeping changes including capacity reduction and job cuts.
Some Wall Street analysts were disappointed that the restructuring plans submitted to the U.S. Treasury did not include key concessions from the United Auto Workers union and the bondholders.
And why BK?
...The auto maker's pension fund had a surplus in recent years but diminishing returns in weak financial markets, along with draws on the fund to cover restructuring, have diminished the reserves.
GM estimates its pension fund faced a $12.8 billion deficit in 2008, compared to a surplus of $20 billion in 2007...
The only way out of this mess since the union thugs aren't willing to negotiate is to break the union via a bankruptcy filing.
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
SAN FRANCISCO (Marke****ch) -- Ford Motor Co. shares jumped as much as 21% Monday, rallying after the United Auto Workers union said it has reached a deal on how the automaker will fund a trust to cover retirees' health-care costs.
The shares pulled back from their early highs as the broader market wilted, but they changed hands lately at $1.82, up 15% on the session. In the past year, shares of Dearborn, Mich.-based Ford (F, Trade ) have lost 71% of their value.
The union, without going into specifics, also said that there were other changes to the labor deal hammered out in February 2007 to go along with modifications to the health-care trust, known as the Voluntary Employee Beneficiary Association.
As is plainly visible the unions are having a negative impact on corporate America. A small loosening of the stranglehold produced dramatic results for Ford. Just think. What would happen if the unions were disbanded? Your 20 year retirement might buy more than a loaf of bread.
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
Lets see if we got this right. People who were reckless will qualify for lower rates.
People who are not in trouble will get shafted with higher rates. Will people be motivated to get a loan. Get themselves into financial trouble to qualify for a lower rate? What happened to being a good steward? Earning rewards of lower rates for financial responsibility?
ITA. This society almost across the board rewards bad behavior. In employment, if one screws up, they promote him. It is the american way
WASHINGTON (Dow Jones)--President Barack Obama's task force on the auto industry will meet with car-company officials this week as it considers whether to extend more aid to General Motors Corp. (GM) and Chrysler LLC, according to a government official.
The task force will meet with "auto company representatives," according to the official, who declined to be named. The official didn't say which companies would be present at the meeting or what day it would take place.
The task force, led by Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers, is reviewing plans submitted by GM and Chrysler describing how the companies plan to become viable using billions of dollars in government loans. The companies have requested additional loans beyond the $17.4 billion the Treasury has already committed to them.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
Where are the unions? Shouldn't they be called on the carpet for jeopardizing the future of American industry. GM is being forced to beg for more money. More government control which will be attached to every dollar given.
Everything is being subsidized but no one is speaking to what else is in the package beyond the money. You can bet there are numerous provisions which put GM in a position of weakness. Preferred convertible stock. To the average joe means nothing. In the market. The common stock that makes up your retirement will be diluted with the flood of government owned stock once the conversion occurs. Which also buys voting rights to control company direction.
The unions are not being forced by the government to concede anything. Why is that? Why aren't they being called to Washington to explain workers being paid substantially more than comparative labor in other sectors for the same job? In a word, socialism.
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
TORONTO (Dow Jones)--GM Canada's request for government help in funding its pension plans seems likely to confront stiff opposition from authorities worried about the broader implications of providing such assistance.
Helping out the pension plan of General Motors Corp.'s (GM) Canadian subsidiary could set a dangerous precedent at a time when pension plans and individual retirement savings across the entire economy are under acute pressure.
"It would open up doors that are awfully big and awfully hard to close again," said Bill Robson, president of the C.D. Howe Institute, a market-oriented think tank in Toronto.
So the government realized there is some personal responsibility after all. Well, that is a surprise. The market is up 170 points today, I have a novel idea. Why not let everyone come up with their own bailout and stimulate themselves.
The moment you capitulate to lawlessness you've lost your civility.
Posts: 8968 | Location: San Diego, or near by. | Registered: 06-08-2007
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