No, this is most surely not a recommended course of action for anyone, but it would seem that at least some of the so-called "recovery" in consumer spending is simply "robbing Paul to pay Peter." I just find it incomprehensible that the mortgage lenders are either unwilling or unable to promptly follow through with foreclosures and evictions.
PrimateDave
JoinedPosts by PrimateDave
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12
Mortgage crisis and increased consumer spending
by PrimateDave ini just read this piece at financial armageddon: .
more about that 'healthy' consumer spendingi've highlighted posts at the market ticker, business insider's the money game, and housingwire which have suggested that one reason why americans can afford to keep on spending in the face of 20 percent underemployment and stagnant incomes is because many of them have decided to stop paying the mortgage.. now, yves smith, publisher of another one of my daily must-read blogs, naked capitalism, and author of econned, a great new book on how we got into the mess we are in, is also weighing in on the subject.
in the following excerpt from "strategic defaults increase consumer spending," yves reveals some of the eye-opening tidbits that others have passed along to her:.
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Mortgage crisis and increased consumer spending
by PrimateDave ini just read this piece at financial armageddon: .
more about that 'healthy' consumer spendingi've highlighted posts at the market ticker, business insider's the money game, and housingwire which have suggested that one reason why americans can afford to keep on spending in the face of 20 percent underemployment and stagnant incomes is because many of them have decided to stop paying the mortgage.. now, yves smith, publisher of another one of my daily must-read blogs, naked capitalism, and author of econned, a great new book on how we got into the mess we are in, is also weighing in on the subject.
in the following excerpt from "strategic defaults increase consumer spending," yves reveals some of the eye-opening tidbits that others have passed along to her:.
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PrimateDave
I just read this piece at Financial Armageddon:
More About That 'Healthy' Consumer Spending
I've highlighted posts at The Market Ticker, Business Insider's The Money Game, and Housingwire which have suggested that one reason why Americans can afford to keep on spending in the face of 20 percent underemployment and stagnant incomes is because many of them have decided to stop paying the mortgage.
Now, Yves Smith, publisher of another one of my daily must-read blogs, Naked Capitalism, and author of ECONned, a great new book on how we got into the mess we are in, is also weighing in on the subject. In the following excerpt from "Strategic Defaults Increase Consumer Spending," Yves reveals some of the eye-opening tidbits that others have passed along to her:
My anecdotes on strategic defaults
Here’s what I have uncovered via two anecdotes a friend sent me.
This first one comes via Bill Fleckenstein from a retired hedge fund manager. Catch Fleck via his daily newsletter (subscription) or his MSN column, which is free. Bill says the reader told him the following five anecdotes:
- My 25 year old niece had $10,000 of outstanding credit card debt. Recently, she told the bank she couldn’t pay. She is not unemployed so the ‘hardship’ is all relative. Nevertheless, the bank offered her a concession which she refused. They offered another concession, she refused again. Finally, they told her if she paid $150/month for 2 years (total of only $3600 with no interest), they would call it paid in full! She accepted in a heartbeat. It is less than a month later, and she celebrated her good fortune by going on a cruise to Hawaii....
Another hedgie in San Francisco, responded with this after seeing these anecdotes:
From the West Coast I have at least that many stories. They come in clusters. One brave party takes the first step and "wins" then relatives or co-workers follow the successful example. The persons are still employed – default on debt – they rarely get contacted by lenders and then negotiate hard (the debtors that is). After some settlement they keep spending lavishly. In every case a vacation is part of the program. Every case!
There is more at the link above. The gist of it all being that lots of people are apparently living the good life in their overvalued homes, have stopped making mortgage payments, and seem to be getting away with it... for now. Does anyone here know of someone in this situation? Any Witnesses you know of who stopped making house payments yet still spend money on major non essential things?
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NOW how do you view the Future?
by theMadJW incasting aside what little you learned about god and christ- are you thrilled with the future of mankind?.
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PrimateDave
Billions of people will die this century, more than in any other time in the history of humanity on this planet.
However, the way I NOW see things, at least most people will get to live out a natural life span and won't die in some fantasy "Armageddon" as I used to believe when I was a Witness.
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What's a really good movie you'd recommend that most people probably haven't seen?
by A.Fenderson inwhat's a really good movie you'd recommend that most people probably haven't seen?.
my personal recommendation: synecdoche, new york.
it's one of those movies that words fail utterly to capture--which really is the hallmark of a good movie, i suppose.
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PrimateDave
Tampopo (Dandelion) - Japanese
Daremo Shiranai (Nobody Knows) - Japanese
Wings of Honneamise, Royal Space Force - also Japanese, animated
Salaam Bombay - Indian
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What kind of cereal do you eat in the morning?
by asilentone inmy favorite is strawberry fields (kashi brand)..
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PrimateDave
Most of the time I eat oatmeal mixed with some fruit (and a glass of soymilk to wash it down).
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Do you disagree with the Atheist's 21 commandments?
by dgp inpeople, here are the atheist's 21 commandments.
it would be interesting to know how many people on this board disagree with them or find them wrong.. 1. we are committed to the application of reason and science to the understanding of the universe and to the solving of human problems.
2. we deplore efforts to denigrate human intelligence, to seek to explain the world in supernatural terms, and to look outside nature for salvation.
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PrimateDave
Call them suggestions, maybe. Also, many of them have nothing that directly links to atheism. A lot of points listed can be ideals even for people who profess belief in deities.
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Is Wall Street Driving Up Gas Prices?
by leavingwt inwe're paying almost $2.70 per gallon, here in mississippi.
(our prices are usually among the lowest in the country.).
what's driving up oil prices again?
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PrimateDave
Yes, market speculation and the printing presses at the Fed. Also, the world is on the "bumpy plateau" of peak petroleum production which started in 2005.
"So far, the record year for world crude production was 2005, and the record month was July 2008. Tellingly, the leveling-off of extraction rates between 2005 and 2008 occurred in the context of rising oil prices; indeed, in July 2008, the price spiked 50% higher than the previous inflation-adjusted record, set in the 1970s. Yet as both oil demand and prices rose, production barely budged in response. ...
"The argument that oil production could theoretically continue to grow past 2015 is mainly put forward by organizations such as Cambridge Energy Research Associates and Saudi Aramco, which explain away evidence of dwindling discoveries, depleting oilfields and stagnating total production by claiming that it is demand for oil that has peaked, not supply — a claim that hinges on the observation that oil prices are high enough to discourage potential buyers. But high prices for a commodity usually signify scarcity, so the "peak demand" argument doesn’t hold water." - Richard Heinberg, Economic History in 10 Minutes
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PrimateDave
Homo sapiens
Ancestry is north European.
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Argh, this is just getting worse by the day
by teel ina few months have passed since my relationship with my wife took a turn for the worse.
yesterday i finally questioned her about what she wants as for the future.
i know she will always stick with the wts, no matter what.
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PrimateDave
"Idolatry is revering and serving non-living entities and symbols as if they were alive and feeling beings. Idolatry is mistaking the symbol for Reality, putting the symbol above reality."
This quote is from a blog that I like to follow: http://zerocurrency.blogspot.com/
The author applies this to corporations,
"You might notice that a few times I've denounced Wal Mart in this blog, and some people have become highly offended, as if I've blasphemed a living, breathing god. I've been noticing how folks who are offended when we call corporations bad names have no problem calling fellow human beings names and looking down on them. Go out and check it out for yourself: experiment in different crowds of people by denouncing the corporation of your choice, and see what I mean. It's a blasphemy to many Americans, right up there with flag burning."
If we use his logic, then the Watchtower Corporations are actually idols for people who claim to be Jehovah's Witnesses. To openly criticize the Watchtower is considered an act of blasphemy greater than any other "sin" against Jehovah and Jesus (and the Holy Spirit, which apparently isn't all that important to Witnesses anyway).
"What if we put Reality above symbol? What if we were as apalled about our rejecting our own ten commandments ("thou shalt not kill" and "thou shalt not covet" and "thou shalt not bear false witness") as we are upset about not getting to prop up inanimate plaques of the Ten Commandments on government property? What if we pledged allegiance to living beings instead of to a symbol? What if we were as upset about not keeping Jesus' teachings as we are about burning inanimate Bibles? What if the Word were a Living, Breathing Being, right here and now in the flesh, rather than a book or an unapproachable person who lived thousands of years ago"
I don't know if that example would have any effect on your wife, though. I hope you both can get some help.
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PrimateDave
Iced tea and chocolate soy milk, though not together.