Friday, December 7, 2012

Best explanation of foreclosure crisis, ever!

A breakdown of the housing crisis in this video that tells the truth.  The reality of its causes and who profited.  Anyone who thinks this is not the truth is wrong.  This needs to be seen by everyone and should be on national news.





Econ4 Video on the Housing and Foreclosure Crisis (With Your Humble Blogger in a Supporting Role) « naked capitalism

Wednesday, December 5, 2012

Consider It Sold Las Vegas: Las Vegas Real Estate is Improving

Consider It Sold Las Vegas: Las Vegas Real Estate is Improving: Las Vegas Real Estate is improving this year.  There have been price increases in many parts of the city.  Some areas have seen over 25% pr...

Chris LaHaie Realtor
List with Chris
Prudential Americana Group,
Las Vegas, NV
chrislahaierealestate@gmail.com

Revolution long forgotten? Kings and Queens of Wall Street Rule

Does cutting costs always have to come at the expense of employees jobs?  Maybe.  But it certainly seems that with CEOs raking in millions in bonus dollars, company profit margins greater than ever, and corporate fraud running rampant that there has to be a better way.  One reason this method of business continues is because the workers are so far removed from Wall Street.  The absurd notion that the boss gets $10 million in bonuses when the company is losing money daily is Anti-American.  Our country is founded on the idea that we would not live in a society of kings, queens and peasants.  We have moved back to this type of structure under the veil of capitalism.  We are no more capitalist here than England was in 1776.  We are allowing our system to be corrupted by Wall Street as those who gave their life fighting for our liberty turn over in their graves.  We have gone one step further than England.  We now have many Kings and Queens reaping the spoils of royalty as the American worker gets squeezed.  Our democratic republic is turning out to be more like a monarchy than a democracy.  Our current recession has made it clear. 


 Henry Blodget wrote today how destructive the “cream for the top, crumbs for everyone else” business attitude is:
The first chart shows that big American companies now have the highest profit margins in history.
The second chart shows that the companies are now paying the lowest wages in history as a percent of the economy.
If you happen to be an owner of a big American corporation, these charts could be construed as good news: You’re coining it!
If you happen to be a rank-and-file employee, however–or someone hoping to be such an employee–this is bad news: You’re sharing less than ever before in the success of American industry.
This situation, by the way, is only temporarily good news for the company owners. Because, by pumping so little back into the economy in the form of employee wages (and capital investments–the other area where companies are scrimping), our companies are constraining the growth of the economy.
Why?
Because the rank-and-file employees of America’s corporations are also mainstream American consumers–the folks who account for ~70% of the spending in the economy.
Almost every dollar these folks earn in salaries gets spent–on food, clothing, houses, education, entertainment, cars, and other goods and services that big American companies produce.
So, if, instead of hoarding their wealth by hiking their profit margins ever higher, companies invested more in employees and equipment, they would help the whole economy.
And the companies would also, of course, help their employees–the people who are dedicating their lives to helping the companies earn such vast profits.
This situation, by the way, is only temporarily good news for the company owners. Because, by pumping so little back into the economy in the form of employee wages (and capital investments–the other area where companies are scrimping), our companies are constraining the growth of the economy.
Why?
Because the rank-and-file employees of America’s corporations are also mainstream American consumers–the folks who account for ~70% of the spending in the economy.
Almost every dollar these folks earn in salaries gets spent–on food, clothing, houses, education, entertainment, cars, and other goods and services that big American companies produce.
So, if, instead of hoarding their wealth by hiking their profit margins ever higher, companies invested more in employees and equipment, they would help the whole economy.
And the companies would also, of course, help their employees–the people who are dedicating their lives to helping the companies earn such vast profits…
The business-ethos pendulum in this country has now swung so far toward “profit maximization” that most American companies would never dream of voluntarily sharing more wealth with their employees.
These employees, after all, are not viewed as people. They’re viewed as “costs”–cash outflows that just drain financial value away from owners…
Think about that for a minute.
Some of the richest, most revered companies in this country–companies that are currently generating record-high profits–pay their full-time employees so little that they’re poor.
Even more depressing is the fact that concepts like “fairness” and “sharing” are now seen as evidence of bleeding-heart socialism–as though the only way to be a bona fide capitalist is to treat your employees like costs and pay them as little as possible.

Sunday, December 2, 2012

Economy not showing strength in spite of spin

We are now getting more data on the reality of our economy.  It is unfortunate but the data is not allowing us to paint a pretty picture.  You can be be assured that the media was spinning things to aid in an Obama re-election but check out the numbers. Here is a quote from Market Watch:

"Yet buried within the recent array of economic reports is sufficient evidence to point to a slower pace of U.S. growth"
If this is true we are in trouble.  A much slower pace will be much closer to another recession than we are to a robust recovery.  It is amazing that we have changed little with the Too Big To Fail Banks and with regulation to prevent another economic catastrophe.  Everyone is hoping and praying for the economy to pick up but there is little evidence that goes along with the media hyperbole regarding a recovery.  The article further states:

"Looking beyond the hurricane, the fourth quarter of 2012 has clearly gotten off to a slow start. Consumer spending, by far the biggest source of economic growth, fell in October for the first time in five months. And orders for expensive, long-lasting goods were flat in October."
Read more in full article HERE

Here is another good point made in a Market Watch article regarding how advanced warning of the Sandy should have helped stores before the end of the month.  It makes a plausible argument that has to be considered as we go forward toward the Fiscal Cliff. 
"That’s strange. When people know a big storm is coming, they usually hit the stores to stock up on groceries, hardware and other goods.  Some of that happened in the days leading up to Sandy. Batteries were low on supply, for example, and water bottles disappeared from store shelves."
"So Sandy should have boosted sales in October as well as decreasing them. If so, all that shopping appears to have had little impact on the national spending numbers."
See more on the cut in consumer spending with full article HERE
I am tired of hoping for a better economy and a recovery.  I would like to see some evidence of this soon so we can stop hearing the spin from everyone.  People are getting squeezed more and more.  Many more well qualified and well educated people are taking lower and lower paying jobs.  It is not necessarily because they want to live on less but their choices are shrinking.  We have seen the data for black Friday was not as expected as people are running down savings to survive.  Discretionary
spending still could take a hit this holiday season and easily through economy back into recession.  We have been sold a bill of good for a long time now.  It is about time we get some of the goods and not just the bill.