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post #21 of 32 (permalink) Old 08-16-2008, 07:55 PM
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Gosh, that's too bad. But then, despite what they wish to believe, New York is not the world.

My home value continues to rise. In my part of the country business is booming and home renovation is difficult because home-building is balls-to-the-wall.


Unemployment is 2%.


And of course the best indicator: There are more Mexicans on roofs than in kitchens.

B
New Yawk is not the world, nor is it an indicator any more than your little part of Louisiana. Now when you look at the National numbers, of which the article was speaking, we see a paradigm shift in equity and all the implications that has on an economy. One of the prime drivers of the last two boom economies was borrowing on equity and credit spending. With that gone from the MAJORITY of the nation, it is going to take a lot of Louisianas to bring that catalyst back.

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Being smart is knowing the difference, in a sticky situation between a well delivered anecdote and a well delivered antidote - bear.
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post #22 of 32 (permalink) Old 08-17-2008, 03:14 AM
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Breaking up big banks questioned as losses mount

NEW YORK (AP) - America's biggest banks have suffered unprecedented losses from the ongoing credit crisis, and that's made some investors question whether the big financial conglomerates should be broken up in order to survive.

Break-up advocates, who for months have been clamoring for Citigroup Inc. (C) to be dismantled, got some validation of their viewpoint this past week. Europe's UBS AG (UBS) - created through the combination of Swiss Bank Corp. and Union Bank of Switzerland in 1997 - on Wednesday laid the groundwork to tear up its business model after another quarter of steep losses.

Though the UBS announcement was expected, it was nonetheless a departure from what executives promised during a wave of big bank deals that began in the late 1990s. The creators of global banks like Citigroup, JPMorgan Chase & Co. (JPM), and HSBC Holdings PLC (HBC) had promised customers and shareholders that a diverse set of businesses would shield them from economic volatility.

But, those models haven't sheltered the banks from the subprime mortgage crisis that turned into a dislocation of the credit markets. Major global banks have taken more than $300 billion in asset write-downs, and organizations like the International Monetary Fund believe that amount could reach $1 trillion.

"The whole idea was, 'let's be so unbelievably diversified that we won't be affected,' but when the credit markets seize up, no matter what kind of financial company you are, everything seizes up," said William Smith, president of New York-based Smith Asset Management. "The UBS statement basically shows the model is a failure."

That's not what former Citigroup Chief Executive Sanford Weill envisioned when the company was created in 1998 by the combination of Citicorp and Travelers Group. He maintained that offering a mix of financial products - such as investment banking at Salomon Brothers, brokerage services through Smith Barney, and Citibank's retail and consumer banking - would protect the company.

Critics like Smith believe that Citigroup is worth more split up. Current CEO Vikram Pandit has rejected the idea, believing the company should come through the credit crisis in one piece.

But, John Reed, who as head of Citicorp forged the deal with Weill's Travelers Group, commented recently that the universal bank model didn't work. That's only been highlighted by Citigroup's stock price, down 71 percent from its 52-week high of $49.

Talk about how Citigroup and others should be structured will only intensify now that UBS appears to have turned its back on its "one bank" strategy. Switzerland's largest bank posted a hefty $5.1 billion write-down for the second quarter, and disclosed plans to separate its ailing investment bank from healthier businesses.

And, concerns about the execution of the business model are spreading, even among those who support the idea of financial conglomerates.

Ladenburg Thalmann's Richard X. Bove, one of the most outspoken banking analysts since the credit crisis began last year, wrote in a note that the "concept behind the creation of JPMorgan Chase has broken down."

Bove said JPMorgan's acquisition of Chicago's Bank One in 2004 was intended to beef up its consumer business, including banking and credit cards. That would help offset problems if the capital markets, like investment banking and related areas, were to falter. The problem is that both markets are currently weak.

He said JPMorgan's exposure was hurt further by the acquisition of crippled Bear Stearns in March. Still, despite all this, Bove feels the model is viable - and that JPMorgan can work through the troubles over a number of years by cutting costs and refining its businesses.

"No steel company can sell steel when auto manufacturers aren't selling cars, and no bank can make big profits when there's a weakness in the housing and credit markets," he said. "They have to ride out the cycle, minimize the losses, and maximize profits when the cycle returns. You can't restructure a company to avoid that cycle."

"In 1985, there were 14,500 banks in the U.S. - and now there's 7,200," he said. "For the past 23 years, six of them went away each week. The big universal banks might get hit, but they stay in business and come out with a bigger share of the market than they had before."

My Way News - Breaking up big banks questioned as losses mount
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post #23 of 32 (permalink) Old 08-17-2008, 07:19 AM
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Ultimately, I think it comes down to this -- what is the point of whipping razor wire across someone's face if they cannot feel it?

Some of us have been bumping up old threads now and then as points of aspiration, or perhaps inspiration, but alas even I can no longer understand some of my old posts....

2 Corinthians 9:6

"Religion is regarded by the common people as true, by the wise as false, and by the rulers as useful" - Seneca
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post #24 of 32 (permalink) Old 08-24-2008, 10:24 PM
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No mousetrap here ?

Do architects enjoy preying on the young and innocent ?
Target is the operative word indeed.
------------------------------------------------------------------------------
Home, small home: 250 square feet in SoMa / New condo development targets young first-time buyers without too much stuff

It's about the size of seven ping-pong tables - and all yours starting at $279,000.

Architect George Hauser ...

The units themselves feel, well, small, but stylish and functional (Yeah like a box)
The units cost $279,000 to $330,000. (Monthly homeowners' association dues are around $270.)

Last edited by mlfun; 08-24-2008 at 10:31 PM.
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post #25 of 32 (permalink) Old 08-24-2008, 10:28 PM
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"The Debt Trap"

They main Debt we all owe is to the LORD and he doesn't take credit cards. Although he has already paid our debt in full.
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post #26 of 32 (permalink) Old 08-24-2008, 10:39 PM
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As I read this thread I feel more right about the decisons I made back a little while-ago.

I decided to get rid of all yes that is all of my debts I had a morgage at made me bite the nails and not one but two car payment and a boat payment along with everything else!

Well I worked hard sold all my junk and more on Ebay cut cornners till I was going nuts yea! I actualy used coupons in the grocery stores! did a bunch of moonliting work built and sold many computers.......

well it all paid off (no pun intended) as of friday the 22d of August 2008 I paid everything off! I no longer have car payments the Morgage has been closed, and the boat is free and clear....

Several folks who know me well have called me fool over this saying I could have invested the $$$ and made more... But knowing me as well as I do....

I know I would have screwed up on a payment or two somwhere and it would have costed me more.
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post #27 of 32 (permalink) Old 08-24-2008, 10:41 PM
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Quote:
Originally Posted by mlfun View Post
Do architects enjoy preying on the young and innocent ?
Target is the operative word indeed.
------------------------------------------------------------------------------
Home, small home: 250 square feet in SoMa / New condo development targets young first-time buyers without too much stuff

It's about the size of seven ping-pong tables - and all yours starting at $279,000.

Architect George Hauser ...

The units themselves feel, well, small, but stylish and functional (Yeah like a box)
The units cost $279,000 to $330,000. (Monthly homeowners' association dues are around $270.)
I have a personal and professional interest in seeing more of this kind of dense mixed-use and mixed-income development, but I'm a little confused by the silly monthly homeowner's dues.
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post #28 of 32 (permalink) Old 08-24-2008, 11:10 PM
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I have a personal and professional interest in seeing more of this kind of dense mixed-use and mixed-income development, but I'm a little confused by the silly monthly homeowner's dues.
Are u really a housing "professional" ?
The monthly HOA dues do not even include special assessments.
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post #29 of 32 (permalink) Old 08-24-2008, 11:16 PM
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Transportation's my gig, but land use planning is very closely related.
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post #30 of 32 (permalink) Old 08-25-2008, 04:27 AM
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Transportation's my gig, but land use planning is very closely related.
Good Humor?


Quis custodiet ipsos custodes?

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