Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (61533)	2/27/2010 2:39:18 AM
From: energyplay	Read Replies (3) \| Respond to of 217678

There is now a bit of worry for some of the California population - 1) The economy and employment have not improved. 2) Every time the state government has a budget plan, and makes a few cuts, the economy gets worse and revenue drops, creating another big hole. 3) Local cutbacks for cities and counties are increasing, and starting to pinch even the better off communities. 4) Local and state employees are trying to push back at the cuts and hour reductions. 5) Various fruitcake ideas, like legalizing and taxing "medical" marijuana, have been floated. 6) It looks like the State can hang in until around May-June. IF the economy picks up strongly, the state will be able to arrange short term financing to get to a time when tax revenue will be higher. The alternative is even more cuts, and a likely strike by state employees. That could be a nasty strike, since much of the public blames state workers, and their unions and lobbying, for causing the budget problems. ** I have no idea if there will be large handouts from the Federal government - that will depend on which political party wants to take the blame/credit for this. No panic in the streets yet, and maybe no panic is the streets ever. There is some talk that California could go BK, break all the union contracts, and be able to keep all the debt service current. I don't yet have an idea of how the anti-Obama / anti-Congress feeling will translate into changes in the California legislature. Most voters tend to like their state representatives, and California is strongly gerrymandered to make it easy for incumbents to be re-elected. *** Surprisingly, Californians don't panic as easily as I would expect. Living near earthquake faults may have something to do with this, also massive wildfires, and mud slides. I don't think Intel will stop making chips, or Hollywood will stop movies, or farmers plow under their crops if the State Government has trouble paying their bills. Or maybe many of the people are oblivious.... More Bounce in California song - youtube.com California Tourism Ad - visit4info.com

To: TobagoJack who wrote (61533)	2/27/2010 3:42:49 AM
From: marcher	Read Replies (2) \| Respond to of 217678

tj, don't-worry-be-happy is out. worry-and-speak-softly is in. at least around here it is. californians seem to be afraid to talk about the economy, as if by discussing it something bad might happen. i suppose it's the flip-side of the real estate mantra "visualize abundance (and you'll be rich)." on march 4th there will be rallies throughout the state addressing cuts to public education funding. unions that are not directly involved with education may also be involved. the u.c. students and faculty have focused on neoliberal privatization as the cause for funding problems. this is a new evil, recently recognized, and it might resonate with many in the general population. it certainly has support in europe. here's a long piece about u.c. privatization: indybay.org cheers! --marc

To: TobagoJack who wrote (61533)	2/27/2010 6:43:44 AM
From: elmatador	Read Replies (1) \| Respond to of 217678

Stop making parallel with Greece 2010 and look to Argentina 2001 when: Some of the provinces are in dire economic straits in their own rights. Several have been forced to pay state employees with provincial bonds because they do not have the cash to pay salaries. The country's 23 provinces owe $22 billion in debt, on top of the $128 billion owed by the federal government. Most are considered to be in such precarious financial condition that lenders and investors refuse to advance them any more cash thefreelibrary.com Then they defaulted

To: TobagoJack who wrote (61533)	2/27/2010 7:23:26 AM
From: elmatador	Read Replies (1) \| Respond to of 217678

What confiscation looks like. Argentina Corralito en.wikipedia.org Froze accounts. Forbidden take money out. took USD gave back local money.

To: TobagoJack who wrote (61533)	2/27/2010 7:25:34 AM
From: elmatador	Respond to of 217678

Another confiscation Collor Brazil 1990. Elmat's money was safely in Deutsche Marks then as he pole climbed for Siemens in Nigeria -which was his Noah's Ark as Lost Decade ravaged Brazil. tupiwire.wordpress.com

To: TobagoJack who wrote (61533)	2/27/2010 10:04:37 AM
From: Crimson Ghost	2 Recommendations Read Replies (1) \| Respond to of 217678

The California GOP seems more concerned about which senatorial candidate is more slavish in his loyalty to Israel than solving the state's enormous problems. articles.latimes.com

To: TobagoJack who wrote (61533)	2/27/2010 6:50:04 PM
From: Cogito Ergo Sum	Read Replies (5) \| Respond to of 217678

Funny but another case of misplaced faith.. Cali deficit 20 Billion ? Chicken feed.. Ontario >25 billion and Canada is fine :O) And the walls come tumblin' down... TBS

To: TobagoJack who wrote (61533)	2/28/2010 1:31:45 AM
From: Dr. Voodoo	2 Recommendations Read Replies (1) \| Respond to of 217678

online.wsj.com lololol it's ok not to feel bad about forclosure. When It's OK to Walk Away From Your Home By BRETT ARENDS Millions of Americans are now deeply underwater on their mortgage. If you're among them, you need to stop living in a dream world and give serious thought to walking away from the debt. No, you shouldn't feel bad about it, and you shouldn't feel guilty. The lenders would do the same to you—in a heartbeat. You need to put yourself and your family's finances first. How widespread is this? More than 11 million families are in "negative equity"—that is, they owe more on their home than it is worth—according to a report out this week by FirstAmerican Core Logic, a real-estate data firm. That's a quarter of all families with mortgages. And for more than five million of those borrowers, the crisis is extreme: They are more than 25% underwater—the equivalent of having a $100,000 loan on a property now worth just $75,000 or less. That's true for a fifth of mortgage holders in California, nearly a third in Florida and an incredible 50% in Nevada. Are you in this situation? Are you still battling to pay the bills each month, even when it may make little financial sense to do so? It's time for some tough talk. Stop trying to chase your lost equity. That money is gone. Don't think like the gambler who blows more and more cash trying to win back his losses. That's how a lot of people turn a small loss into a big one. And do the math. Even if you hope the real estate market is near the bottom—it's possible, but by no means certain—it may still take years to see any meaningful recovery. If you are 25% underwater, your home will have to rise by 33% just to get you back to even. Is that likely? And over what time period? Even if home prices rose by 5% a year from here, that would still take six years. And during that time you could instead be building fresh savings elsewhere. View Full Image 0225roi Bloomberg News A real-estate agent moves a torn "Lender Foreclosure" sign outside a foreclosed home in Reno, Nev., last Monday. If you are reluctant to give up on "your" home, realize that it isn't "yours." If you are in negative equity, it's the bank's home. You're just renting it. And right now you may be paying way above market rates. You need to be ruthless about your cash flow. Are you worried about the legal consequences of walking away? Certainly, you should check with a lawyer before doing anything, but the consequences will probably be more limited than you think. In "non-recourse" states, the mortgage lender may have no right to come after you for any shortfall. They may have no option but to take the home, sell it and eat the loss. According to a survey last year by the Federal Reserve Bank of Richmond, such states include negative-equity hot spots California and Arizona. Even in "recourse" states, lenders may have limited ability to come after you. Often they'd have to jump a lot of legal hurdles, and it's just not worth it for them. They're swamped with cases anyway. "In my experience, right now they're not really going after anyone," says Richard Nemeth, a bankruptcy attorney in Cleveland. "They just don't have the resources." If you've taken smart steps to protect your money, you may be safer still. For example, money held in a 401(k), Individual Retirement Account or pension plan is sheltered from creditors. Sure, a strategic foreclosure may hurt your credit score. But if you're in financial difficulties, it's probably already suffered. And your credit score is not the only thing in life that matters. Still, when it comes to the idea of walking away from debts, many people are held back by a sense of morality. They feel it's wrong to abandon their obligations. They don't want to be a deadbeat. Your instincts, while honorable, are leading you astray. The economy is fundamentally amoral. Sometimes I think middle-class Americans are the only people who haven't worked this out yet. They're operating with a gallant but completely out-of-date plan of attack—like an old-fashioned cavalry with plumed hats and shining swords charging against machine guns. Do you think your lenders would be shy about squeezing you for an extra nickel if they thought they could get away with it? They knew what they were doing when they wrote your loan. Many were guilty of malpractice, but they pocketed good money and they've gotten away with it. And if they thought your loan was "risk free," how come they were charging you so much more than the interest on Treasury bonds? If you're only a small amount underwater on your mortgage, it's probably the case that you're going to be better off staying put. But if you are deeply underwater, it's a different matter. Whether we like it or not, walking away from debts is as American as apple pie. Companies file for bankruptcy all the time, and their lenders eat the losses. Executives and investors pocketed millions from the likes of Washington Mutual, Lehman Brothers and Bear Stearns when the going was good. They didn't have to give back one cent of that money when the companies went into bankruptcy. Limited liability, after all, is one of the main reasons every business from your local dry-cleaner to a major multinational gets incorporated in the first place. They're not shy about protecting themselves if things go wrong. You shouldn't be either. Write to Brett Arends at brett.arends@wsj.com

To: TobagoJack who wrote (61533)	2/28/2010 5:52:46 AM
From: elmatador	Respond to of 217678

have incurred crushing debts in part because they bought too many Mercedes cars and other imports from Germany and elsewhere, without producing enough of their own export goods. Mr. TJ, what I know wasn't reading a magazine. It was and still is right there in the front. In the trenches. Bullets zooiming around my ears. Case in point that above. My Portuguese colleague here, is a former salesman of Fiber Optics cable, whose market went to Ping and his Chinese cohorts. He shows me all the consumption he did. The man is consumerholic!!! It makes Experiment looks spendthrifth! Look the opening paragraph. I use him as an example of all the consumption those peripheric countries did when they thought they had become rich!!!! You known damn well that what is consumption for is tomorrow's junk tomorrow. All electronic gadgetry of today is junk in between 1 and a half and 5 years. All house appliances will be junk in between 5 to ten years. A house and a lot, because outlives natural human lives is not consumption. Ok. granted: your own house will only be investment if you immigrate to Equador, as you once wrote.