Gretchen Morgenson: Wall Street Refused To Stop Shady Practices In Order To … Huffington Post (blog) The biggest bet which has paid off immensely for Wall Street is banking on the American people's ignorance. The truth is they have bought most of the … Seeing vs. Doing New York Times all 2 news articles
… the seller on the sales contract, according to Fannie Mae. 5. Short Sales Schemes. The Scam : Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. …
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5 Real Estate Scams You Need to Know About – Toni's Real Estate …
Pelosi: Obama was Happier about Health Care than Getting Elected CBS News This is apparently something that the over-educated meathead Obama just couldn't understand – before he rammed his Socialist Obacare scam down our throats. … and more
Why is Face the Nation hosting John Fund despite his history of falsehoods? Media Matters for America On July 25, Face the Nation will host Wall Street Journal columnist John Fund, who has pushed phony allegations that the Justice Department engaged in … and more
It is the biggest ponzi mafia scam ever. They should all pay BIG TIME! 25. mrburnone. Sunday, 25. July 2010. how can we still be talking about “irresponsible leadership”? what we have in place is outright corruption at every level. it’s …
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The Infamous Bail-out Of Fannie and Freddie | Auto Loans | Best …
Globe and Mail Dell Agrees to $100 in Penalties to Settle SEC Accounting Fraud Charges Lawyers and Settlements “Dell was only able to meet Wall Street targets consistently during this period by breaking the rules.” The legality of the rebates is also coming under … Wall Street Breakfast: Must-Know News Seeking Alpha (blog) Dell to Pay $100 Million Settlement New York Times 'A Bad Way to Run a Railroad': Dell Pays Big to Settle Fraud Charges Wall Street Journal (blog) USA Today
Washington Post Digging into finance's pay dirt: The risky business of payday loans and more Washington Post Chris Dodd's bill “financial reform” and started calling it ” Wall Street reform.” Most of the headlines and news releases on the sweeping legislation …
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Digging into finance’s pay dirt: The risky business of payday loans and more – Washington Post
I have received over a hundred Emails in the last few days regarding the city of Bell, California. I usually stay away from these kind of stories because most have seen them. However, in the interest of stopping a further chain of emails, and more importantly discussing what if anything can be done, let’s do a quick recap of events. July 20, 2010 – Citizens Protest City Administrator, Council Member Salaries Californians Protest City Manager’s $800,000 SalaryHundreds of residents of one …
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Bell California Emails Gone Viral; Citizens Protest $800K Salaries; City Manager Resigns; Can Anything be done about $600,000 Public Pensions?
Shadow housing supply, foreclosed but not on the market as well as sellers who want out but cannot get out is one of the factors weighing on residential real estate. Similar supply issues weigh heavily on commercial real estate. Office vacancies are widely reported, but few gave factored in the shadow supply, downsized companies with more leased space than they need, holding on to it hoping thing get better, or stuck in long-term leases with more space than they want or need. Minneapolis …
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Shadow Office Space "Leased but Empty" Haunts Commercial Real Estate
In response to Deflationary Wage Pressures Hit Canada; Attitudes and Wal-Mart, the 800-Pound Gorillas several Canadian readers sent me an update on the situation at Canadian grocery giant Loblaw. CBC News reports Loblaw seeing price deflation Brampton Ont.-based grocery giant Loblaw Companies said Thursday it’s feeling the pinch from price deflation and doesn’t see any signs that will ease anytime soon. Loblaw president Allan Leighton told investors on an earnings conference call that …
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Price Deflation at Canadian Grocery Giant Loblaw; Anecdotes from the Illinois Home-Front
Newark Mayor Cory Booker and the city council are fighting over ways to balance a $70 million budget hole. Literally everything is under discussion except the one thing that needs to be done: declare bankruptcy. Please play this video. It is pretty enlightening. CNN Money reports Newark mayor: No toilet paper for city offices In a desperate attempt to fill a $70 million budget hole, Newark’s mayor is taking a chainsaw to the town’s budget — even going so far as to cut toilet paper from …
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Emergency Press Conference on Newark Budget Gap; Massive Service Cuts; No Toilet Paper for City Offices; Newark is Bankrupt
Tack on another month of no progress with weekly unemployment claims. The 4-Week moving average is still hovering around the 450,000 to 460,000 level where it was in mid-December 2009. Please consider the Unemployment Weekly Claims Report for July 17, 2010.In the week ending July 17, the advance figure for seasonally adjusted initial claims was 464,000, an increase of 37,000 from the previous week’s revised figure of 427,000. The 4-week moving average was 456,000, an increase of 1,250 from …
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Four-Week Moving Average of Weekly Unemployment Claims Holds Steady near 460,000, No Progress for Seven Months
In response to Bernanke Says Economic Outlook is “Unusually Uncertain”, Fed Prepared for “Actions as Needed” I received this comment from “Economics Teacher”. ET Writes… Ben is forecasting uncertainty and saying the Fed’s prepared for action as needed. Did Uncle Ben strain his cerebrum coming up with that one (forecasting uncertainty)? I suppose there’s a difference between “unusually uncertain” and “typically uncertain.” Either way it …
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Bernanke is "Unusually Uncertain" – Is that an Improvement?
Here is a Dear Abby kind of question that I get all the time. A reader asks .. Hi Mish, My girlfriend just got her MBA and wants to become an “Executive Coach.” Considering we are heading into a depression and many companies/industries will go bye-bye, any ideas on what industries might be good to focus on? Thanks, ToddHello Todd I do not mean to sound harsh, but her odds of becoming an executive coach are likely close to zero. What real world experiencing does she have in …
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Mish Mailbag: Job Seeking Advice
Be prepared for Quantitative Easing Round 2 (QE2) and/or other misguided Fed policy decisions because Bernanke Says Fed Ready to Take Action. Treasuries rose, pushing two-year yields to the fourth record low in five days, as Federal Reserve Chairman Ben S. Bernanke said the economic outlook is “unusually uncertain” and policy makers are prepared “to take further policy actions as needed.” Ten-year note yields touched a three-week low as Bernanke said central bankers are ready to act to aid …
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Bernanke Says Economic Outlook is "Unusually Uncertain", Fed Prepared for "Actions as Needed"
Here is an Email from reader Gregory Levine on how road stimulus money is squandered in one California city. Levine writes …Dear Mish, I have conducted an informal study of American Recovery and Reinvestment Act stimulus fund usage in my hometown of Claremont, California. Recently the city completed a four-month “sidewalk accessibility enhancement” project. I have observed the work almost daily and documented the work with before and after pictures which I have …
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Road Stimulus California Style, the Seen and Unseen
China’s property bubble is now on the verge of collapse. Transaction volumes are significantly down and declining volume is how property bubbles always burst. In simple terms, the pool of greater fools eventually runs out. In China’s case, the pool of fools is heavily involved in “loan shark” schemes where speculators hope property values rise fast enough to cover the interest. Ponzi Loan Shark Operations Fuel Bubble Please consider The Secret Engine Behind China’s Housing …
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Ponzi "Shark Loans" Fuel China’s Housing Bubble; Home Sales Plunge 44% in Xiamen; Bubble Busts in Tianjin
I have commented many times on US Consumer and Corporate Frugality but inquiring minds might be interested in happenings down under. Frugality has gone global. Predatory Customers Addicted to Discounts The Herald Sun reports Retailers could take years to recover because customers addicted to discounts.A bargain frenzy since the global financial crisis has led consumers to expect and accept only slashed prices. The dire forecast, from market research company TNS director Chris Kirby, …
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Frugality the New Reality in Australia; Predatory Customers Addicted to Discounts
Maywoood, California outsourced all city services including police and fire. The unions predicted dire consequences. Well, not only did the sky not fall, but services have improved. Please consider A City Outsources Everything. Sky Doesn’t Fall. While many communities are fearfully contemplating extensive cuts, Maywood says it is the first city in the nation in the current downturn to take an ax to everyone. The school crossing guards were let go. Parking enforcement was contracted out, …
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News Alert: Sky Does Not Fall
In response to Five Reasons for Nonsensical Forward Earnings Estimates several people sent me a link to a McKinsey Quarterly report Equity analysts: Still too bullish No executive would dispute that analysts’ forecasts serve as an important benchmark of the current and future health of companies. To better understand their accuracy, we undertook research nearly a decade ago that produced sobering results. Analysts, we found, were typically overoptimistic, slow to revise their forecasts to …
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Charts Show Analysts Historically Overestimate Corporate Earnings by 100%
I have a few more candidates that I would like you to consider supporting in the upcoming mid-term elections. The first of these candidates is Deon Long, running in Florida’s 24th Congressional District. Please check out Where Deon Long Stands on Issues. Deon Long Writes … Dear Mish, I am in a five-way primary battle for the Republican nomination in Florida’s 24th Congressional District. I am running to represent Florida’s24th Congressional District because America needs to …
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Deon Long for Florida District 24
Inquiring minds have been watching the ECRI’s weekly leading index plunge nonstop since October of 2009. Moreover the WLI has been in negative territory for 6 consecutive weeks. click on chart for sharper image Is that a recession call by the ECRI? Absolutely not, at least as of June 14, according to Lakshman Achuthan managing director of ECRI who blasted the Wall Street Journal for misleading reporting. The Business Insider discusses the situation in Why Last Week’s Collapsing ECRI …
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ECRI Weekly Leading Indicators at Negative 9.8; Has the ECRI Blown Yet Another Recession Call?
Here’s an interesting sign of the times from Bloomberg: Treasury Bids Rise 18% as Investors Surpass Dealers For the first time since the government started collecting the data, central banks, mutual funds and U.S. banks are buying more government securities at Treasury auctions than Wall Street’s bond dealers. Foreign and domestic investors bidding directly at note and bond auctions bought 57 percent of the $1.26 trillion in Treasuries sold by the government this year, up from 45 percent …
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First Time in History – Direct Bidders Buy More Treasuries than Wall Street Dealers; Reflections on Common Sense
Forward S&P 500 earnings estimates are outrageously optimistic as noted in Hussman on Misallocating Resources, Market Valuations, Earnings Estimates, and Public Policy. The above link addresses what is happening. This post will address the reasons why. Reasons for Nonsensical Earnings Estimates Analysts do not do their homework on what is really happening and why. Instead they see rising earnings and take them at face value, nearly always figuring following quarters will be better …
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Five Reasons for Nonsensical Forward Earnings Estimates
Nouriel Roubini appears to be sticking with his “U-Shaped Recession” call, at least for now. However, his stance seems much more cautious than before. Please consider Double-Dip Days by Nouriel Roubini. The global slowdown – already evident in second-quarter data for 2010 – will accelerate in the second half of the year. Fiscal stimulus will disappear as austerity programs take hold in most countries. Inventory adjustments, which boosted growth for a few quarters, will run their …
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Roubini Ponders the "L-Shaped Recession"
Putting America Back To Work In response to Kentucky Retirees May Soon Outnumber Pension Contributors where I said “Public unions and untenable pension problems are the whales in the living room. It is high time we do something about it because the whales are rotting and the stench is unbearable” reader Carol replied ….Hello Mish, Here’s a great whale video. Love your blog…thanks! CarolThe Exploding Whale Alternate link: http://www.youtube.com/watch?v=1_t44siFyb4 Please …
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Sunday Funnies 2010-07-18: American Reinvestment and Exploding Whales
In response to Union Hires Non-Union Workers at Minimum Wage to Protest a Company Hiring Non-Union Workers “Harm” commented … Now that Mish has brought to light every conceivable form of labor union hypocrisy and corruption (and I must admit, he really hit the mark on this one), can we move on the *other* evil “unions” that are robbing us all blind? Hold your horses. Please consider the following image snips from the New York Metro “News” Report Attack on Iran …
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Transit Union Plays Nuclear Terrorist Card
Here’s four interesting ways businesses, private citizens, and counties are coping with the economic depression. The first is the most important one. Let’s hope it catches on. Gold, Silver, Copper, Freely Accepted as Money Connect Mid-Michigan reports Competing currency being accepted across Mid-Michigan.New types of money are popping up across Mid-Michigan and supporters say, it’s not counterfeit, but rather a competing currency. Right now, you can buy a meal or visit a chiropractor …
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Ron Paul Silver Ounces Accepted at Michigan Gas Station; Chiropractor Accepts Gold, Silver, Apple Pie; Back to the Stone Age; Chickens Invade Lansing
Once again truth is funnier and stranger than fiction. Please consider To Protest Hiring of Nonunion Help, Union Hires Nonunion Pickets Billy Raye, a 51-year-old unemployed bike courier, is looking for work. Fortunately for him, the Mid-Atlantic Regional Council of Carpenters is seeking paid demonstrators to march and chant in its current picket line outside the McPherson Building, an office complex here where the council says work is being done with nonunion labor. “For a lot of our …
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Union Hires Non-Union Workers at Minimum Wage to Protest a Company Hiring Non-Union Workers
The time for a dollar bounce is at hand. One reason I make that statement is the single best contrarian indicator on the US dollar has spoken. Please consider Dollar Rout by Peter Schiff, July 15, 2010. Peter Schiff has proven to be a huge contrarian indicator on commodities, on China, on foreign investments, and on the US dollar. I suspect this video will be no different. In the video, Schiff makes a case that it was impossible to see these bounces coming. I disagree and have called …
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Time for a Dollar Bounce