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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of Aubie Baltin
December 3, 2009
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"The housing crisis is NOT over," Mark Zandi, Chief Economist with Moody's said "I think we're going to see another leg down."

Mortgage applications for home purchases fell to a 12-year low and foreclosures rose to record highs in the third quarter, according to reports from the Mortgage Bankers Association. An index measuring November homebuilder confidence came in much lower than forecast and The Commerce Department on November 18th said residential building dropped 11% in October to the lowest level since April's all-time bottom.

The $8,000 federal tax credit for first-time buyers, extended by President Barack Obama on November 6th, drove existing home sales to a two-year high in September. At the same time, a 26-year high in unemployment is keeping many buyers out of the market and pushing existing owners into foreclosure. Like all Socialist measures they end up doing MORE HARM THAN GOOD by delaying the correction process from resolving itself.

The thing that drives our business the most is job creation," Donald Tomnitz, Chief Executive Officer of D.R. Horton, said today on an earnings call. "If we look at the macro-economic environment, it's not good for us."

U.S. companies have shed 7.3 million jobs since December 2007, the largest contraction since the Great Depression, and the unemployment rate jumped to 10.2% in October, the highest since 1983, according to the Bureau of Labor Statistics. "You don't pay a mortgage with economic output or a welfare check — you pay a mortgage with a paycheck,"

Existing home prices probably will fall 12% this year to a median of $173,800, while the new home median likely will tumble 8.7% to $212,000, according to a forecast on the Fannie Mae's Web site.

FORECLOSURE PLAGUE: NO CURE YET

The foreclosure plague continued to devastate last month.  There were more than 360,000 properties with foreclosure filings — including default notices, scheduled auctions and bank repossessions — an increase of 7% from June and 32% from July 2008, according to RealtyTrac, an online marketer of foreclosed homes. In fact, one in every 355 U.S. homes had at least one filing during July. "July marks the third time in the last five months where we've seen a new record set for foreclosure activity," said James J. Saccacio, Chief Executive Officer of RealtyTrac.  "Despite continued efforts by the Federal Government and State Governments to patch together a safety net for distressed homeowners, we're seeing significant growth in both the initial notices of default and in the bank repossessions."  The jump occurred as several foreclosure moratoriums phased out. They were initiated by many states to give the administration's foreclosure-prevention efforts time to work. The modification and refinancing programs have met with less success than hoped. They have actually made matters worse as huge government hace accumulated with not means of repayment
RealtyTrac statistics revealed that more than 87,000 properties were repossessed by lenders, effectively sending many families out of their homes. There have been a total of 464,058 repossessions — or REOs in industry parlance — so far this year (through the end of July).
"We're seeing more option ARM resets, triggering defaults and more prime loans, which are failing due to job losses," said RealtyTrac spokesman Rick Sharga.  “That is resulting in more filings on higher priced homes, for two reasons: 1). Option ARMs were typically used for more expensive properties; 2.) Borrowers using prime loans generally had better credit and were able to afford more expensive houses."

Can’t the Government get it through their thick heads that the only solution to the housing crisis is to clear the overhanging supply of homes and JOB CREATION brought about by real economic growth. . . . .

The Chinese absolutely hate the Obama/Geithner/ Bernanke easy money policy that is driving down the dollar to ease America’s debt burden and increase U.S. exports in an attempt to steal demand from the rest of the world. They’re not going to sit idly by and take it either!

That’s why President Obama and President Jintao never addressed this key rift between the world’s two largest trading partners in their joint statement, citing only “past agreements” and no new ones. The reason is clear: They couldn’t come to any agreement on the looming currency war that’s being fought behind the scenes. UNFORTUNATELY CHINA HOLDS ALL THE CARDS.

China’s currency 20% appreciation has cost it $400 billion on its $2 trillion hoard of US Treasuries  The Chinese are not going to be played for fools as the falling dollar makes their trillions in Treasury Bills worth less daily, causes their exports to shrink and is fast creating a form of U.S. currency protectionism the Chinese will not stand for. China’s chief banker says that U.S. currency policy needs to change—and not China’s!