The look on his face says it all: the story behind that stray 44-pound cat from New Jersey is actually not so funny any more.
Next stop, Wonderland: who will think about the dogs?
Are we in a recession? Yes, we are. No, we’re not! Yes, we are!
Posts Tagged ‘Economy’
Tuesday’s News…
Tuesday, July 22nd, 2008
Shocker: BAPCPA put more profits into the pockets of credit card companies says Harvard Law Professor Elizabeth Warren.
Yesterday I blogged about honesty in the bankruptcy. Today, there’s a report out of Wichita of a former debtor who was not so honest. He’ll be taking an involuntary vacation for 33 months for bankruptcy fraud.
Living on the edge: rising gas and food prices may push struggling families into foreclosure.
MSNBC explores the high price of commuting.
Does anyone have a spare $25 billion that they aren’t using?
Despite a new Massachusetts regulation forcing lenders to wait 90 days to foreclosure on homes (it went into effect on May 1), the Boston Business Journal reports that foreclosures continue to climb.
Sign of the times: Commercial bankruptcy filing rates are going up.
Sign of the apocalypse: Batman was arrested. No joke.
Things To Think About on a Thursday
Thursday, April 24th, 2008
I believe there are folks who believe that I am a huge Negative Nancy when it comes to talking about the economy. So much so, that they do not even want to bring up the subject around me. As I have mentioned: I am not an economist. I did not do well in economics while in college. I found it…quite honestly…a tad dry. It was also at 8:00 am. None of that means that I do not have the wherewithal to see that things all around us are not well.
I judge how well the economy is doing by how much it costs to fill my tank or buy groceries. I judge how well the economy is by how many vacant store fronts I see in downtown Boston, or how many I walk by on the way home. And I judge how well the economy is doing by how there is more and more positive spin (or what some people might call propaganda) on how things really are not as bad as they seem. And there are clients (and if you’re reading this, you know who you are) that are banking that “things will pick up later this year” or “I think we’ve hit bottom.”
At the risk of sounding like a Negative Nancy: Things ain’t looking so hot.
A post yesterday at Calculated Risk highlighted certain remarks made in a UPS Conference Call. Among them: “At this point, we see no immediate signs of economic improvement.” The tone of that remark seems a bit negative.
There were other tidbits in the news. There are stories about Americans hoarding food, and some retailers limiting the quantities that customers may purchase. Foreclosures continue to rise. It’s all so very negative. And some people say we’re in a recession while our President assures us that we’re not.
And me? Yesterday, I had to fill my tank. I am thankful I live in town and do not need to fill it as often as I did when I was commuting. But I think I may be in a bit of a shock. No. Actually, I am pretty sure I am in a bit of shock. Though I bet others might argue that I’m just being negative.
Todays news….and a New Series
Wednesday, March 26th, 2008
First, the news…
When a storm is coming, it’s not uncommon for New Englanders to stock up on bread and milk. According to today’s Financial Times, banks are apparently stocking up on cash. Does the FDIC’s announcment that it plans to add 140 new workers in anticpation of bank failures have anything to do with it?
New home sales fell to a 13-year low in February. Consumer confidential fell to a 5-year low in March. Also falling, the number of retail jobs in Massachusetts.
In Sacremento, the SPCA is seeking a jump in the number of animals being surrendered by their owners who are losing their homes.
And now, the series…
Starting next Wednesday, and continuing each and every Wednesday, there will be a special blog entry dedicated to “Storm Preparation”: dedicated to providing information to people and businesses who may be facing a financial storm.
Each week, I’ll offer tips, news and strategies to help people and business prepare for the financial storm clouds they may see on their horizon. Remember, nothing you read here is meant to replace legal advice – and if you’re facing a financial crisis now, I urge you to see an attorney.
If you have a question or a topic you’d like to see on “Storm Preparation”, please email us at info@mcleodlawoffices.com.
Today’s news…
Tuesday, March 25th, 2008
A friend passed along this story from today’s Boston Globe: “Going Into ’survival mode.’”” The report takes a look at the ways people from all over the area are cutting back on monthly expenses as the anxiety over the economy continues to rise. It’s worth the read.
I know there are those out there who proclaim that the economy will continue its decline so long as we continue to talk about it. I am not sure we can talk ourselves into anything – if we could, I am sure I could have talked my way into a 32 inch waist by now. But is it is hard not to talk about the economy when you read things like this blog entry over at Calculated Risk: Goldman Predicts $460 Billion in Credit Losses.
Finally, a reminder of the effects of foreclosures: family pets. From today’s USA Today:
…a man …arrived at the shelter this month saying he had to give up his cat and two small dogs. When an employee walked outside to help him get the animals into the shelter, “she discovered that he had arrived in a U-Haul loaded with boxes and furniture. He had lost his home and had no place to go. The very last thing he did was surrender his animals.”
And from Whitter, California:
One man brought in his cat, Speedy, but visits every day and hopes to get him back when he finds a place to live…
Good News and Bad News
Friday, February 22nd, 2008
Bad news: Check this out at Calculated Risk:
Moodys: 8.8 Million Homeowners Underwater
From Boston.com:
Mass. foreclosures rise 128% in January
Good News: T.G.I.F. (sorry, that’s all I got… enjoy your weekend).
Things Are Going to Get Worse Before They Get Better…
Thursday, February 14th, 2008
I have a message to all of those folks out there who are hoping that the economy will get better, that their mortgage company will “work” with them, or that the government will do something to help them through the financial quagmire they find themselves in: the sun is not going to come out tomorrow. Perhaps more succinctly said: it ain’t going to happen. I know I sound really negative, but hear me out.
Contrary to what you may read in the news, there are not a lot of mortgage work-outs and rewrites going on. If you do not have equity in your real estate, you’re going to have a tough – if not impossible time trying to refinance. The same applies if you are behind in mortgage payments or if the income is not there to pay the monthly mortgage payments. If you got sucked into an exotic mortgage product with the hope that the value of your real estate was only going to appreciate, then if you think you’re in a precarious position now, it’s only going to get worse.
Property values are depreciating everywhere. If you think I am being melodramatic, read about what’s happening in Arizona, California and Maryland. Then look further.
Property values are starting to go below the mortgage notes secured by the property ….and this hurts even those who did not get into exotic loans. Read more here: here’s a homeowner that bought a home for approximately $400,000 and the value has dropped 20%. Let’s assume that the homeowner put down a $40,000 as a down payment. If the value has dropped 20%, that down payment has evaporated. Poof. All gone (and unfortunately, I have clients in a very similar situation). If the homeowner was in an interest only payment period, then none of those payments were being applied to principal. Without equity, that homeowner has little chance of refinancing.
In addition to all of that the economy is tanking. I am no economist, nor do I pretend to be, but I did grow up during the 70s. I remember the gas lines, the “WIN” buttons and the nightly news updates reporting the price of gold. At that time, it touched just over $800 per ounce. A few years ago, on this very site, I wrote that a rise in the price of gold should be expected. Here’s what I wrote on October 17, 2005:
[W]hat can we Americans expect in the days, months and years to follow? Expect foreclosures to sky-rocket. Expect real estate values to plummet. Expect a slow down in consumer spending. Expect lay offs and business closings. Expect the price of gold, an indicator of inflation, to push past its now 18 year high (a fact which is curiously under reported in the main stream media).
As I write this article, gold is over $900 per ounce. In October 17, 2005, the price of gold closed at $473.80. And we’re no where near the end of this mess.
I’m not the only one touting this fact: Treasury Secretary Henry Paulson is. Watch these videos at Calculated Risk. Mr. Paulson is asked: “Is the worst over?” His answer speaks for itself.
Despite the wishful (and perhaps understandable) thinking of real estate professionals, the real estate market has not hit bottom. The price of gold (and likely silver) is only going to continue to inch its way up to history making highs. If the financial storm has not hit you yet, be thankful but do not assume you are safe and secure on high ground. Think of it this way: the flood waters are still rising, and no one really knows where “safe” high ground really is. All you can do is be aware, pay attention and prepare because when it comes right down to it, “the worst isn’t over, the worst is just beginning.”
In other words, the sun is not going to come out tomorrow. Please plan accordingly.
Nasty Debt Collector, WaMu Responds, and BAPCPA
Thursday, November 8th, 2007
Houston-based LTD Financial Services got slapped with $1.3 million in civil penalties to settle FDCPA violation charges.
Washington Mutual issued a press release in response to the action filed by the NY Attorney General. We reported on that action earlier this week.
An astute observation on the passage of BAPCPA: “Be careful what you wish for.”
Bad News On New Loans: Defaults are Up
Tuesday, October 16th, 2007
From today’s New York Times:
Borrowers who took out loans in the first six months of 2007 are falling behind on payments faster than homeowners who took out loans last year, according to a report by Friedman, Billings, Ramsey, an investment bank based in Arlington, Va. The data suggested that more Americans could lose their homes and that the housing market’s troubles might persist longer than many analysts have been predicting.
Hey, I’m just the messenger…
As the Senate begins to vote on the bailout, and as Washington and even some local leadership continues its campaign of fear mongering support, here’s some food for thought, courtesy of the good folks over at Calculated Risk:
What’s another $700,000,000,000?
Tags: Bailout, Commentary, Economy, Yep. We're in trouble.
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