Money Matters - Part 9

Sally, as to why a foreclosed home might be "occupied" by whomever. This is beyond the obvious advantages to having a property lived in rather than vacant or abandoned and the progression to neighborhood or area "blight" when properties are not turned over in a timely manner, etc. (There are reports of almost entirely unoccupied brand new cities in China because no one can afford to live there, but I digress)

The housing bubble scam/banking/wallstreet bail- outs continues to ripple and unfold as economic and media alchemists can shortly no longer convince enough of the people that they have the golden goose in the form of securitized assests, no matter how many of them they continue to print and flood the markets with. We feel slightly more "secure " because even though banks aren't lending , they are holding much more on the side of the assets books than previously. However, how much of these held assets are in the form of unreported "foreclosures" or bad securitized paper?

As the Fed and Govt buy up these bad debts and keep the money printing presses rolling 24/7 the latest ploy to come along is to convert on the books foreclosures into an income stream by converting them to "rentals" with the banks being landlords or allowing the banks to sell off large blocks of these foreclosures to "investers" to manage and collect from and at bargain prices I might add. It is unclear whether a state or local gvt will receive any "transfer taxes" from this change in ownership. How much of America is "owned" by individual Americans any more? ( As if it was ever ours to be "owned" to begin with...} And what does a rapid transition from the "nanny state" to a corporate "nanny" mean in the short or long run for any of us?

When I was about ten and my brother nine, my dad brought home a penny slot machine he was given. The next day it was too cold for us to go to school (below zero and a mile walk to catch the bus) so we stayed inside and played with the slot machine. I remember the sound as each penny we put in the slot dropped into the till. Bars, cherries, lemons fascinating to watch fall in to place with each pull of the arm. Any pennies we won we used to keep playing. Hmm. When those were gone we raided our piggy banks for more and continued on until every penny in our house was locked inside the till and my dad had taken the key with him.
Need I say that the house always wins?


This message was edited Jan 13, 2012 1:50 PM

hee hee



Now I know why the post office is having $ problems. I ordered uniform shirts for my son, the company is in Philly about an hour or so from here...I checked the tracking they shipped it to Chicago, then Elk Grove, IL then Kearny, NJ then finally the Trenton facility.......... geez.... with the price of gas!!!

jeez Jen, what a mess.


There was a very interesting radio piece about a European country, maybe Holland, in which it has been the norm that people are allowed to live in and even improve empty buildings, and many casual communes did that. Now recently the govt is cracking down on it.

After 119 years...Carhartt has ceased production of their USA, Union-Made Product Line

Oh, no, Jen, what's the world coming to?

You know, almost everything we buy today is made in China. And not just the cheap stuf, either. The good stuff, like gifts from Hallmark, also made there. And not really cheap. It's tough to find anything made in the USA now.

Karen

Ugh. We don't make anything here anymore.

There's lots of things still made here you just have to look for them

http://allusaclothing.com/

Love the Made in America map...
http://abcnews.go.com/WN/MadeInAmerica

But that's the problem - $60 for a plaid flannel shirt! Nuts.

or $64 for imported
http://bananarepublic.gap.com/browse/product.do?cid=74839&vid=1&pid=434397&scid=434397022

Rather pay $60 for the one made in the USA, if I were gonna spend that much on a shirt. Too bad more chain stores couldn't carry USA made.

Karen

Silly name brands. I would not buy either.

My Mom used to look for the union labels in clothes before she would buy them. She and my Dad cancelled each other's vote out, but they voted at every election.

What happened to those union labels in clothes these days? Also, what was once made in America keeps changing. Since Marsdon Mills closed forever, I don't know where to buy microfleece without one of those web guides.

I have heard that one of the major appliance manufacturers has decided to re-tool one of its US plants instead of sending the work offshore. That is a start.

Looking at the difference in price on flannel shirts - when a job moves off-shore and a US worker is unemployed as a result - how much does it cost in social welfare to support the unemployed worker and family? That is a cost that is not talked about - the taxpayers take the loss and the corporation gets a plus to it's bottom line. (And a mega-rich CEO gets an even bigger bonus.)

Too too true. And when a family flips out it costs everyone even more.

Guess great minds do think alike - http://www.youtube.com/watch?v=7PNDCZjH758&feature=colike.

Too bad it's not true. Do a quick google and see how much stimulus money went to support jobs OVERSEAS. And he has LLBean boots there. They were ALWAYS made here. Unfortunately, it's about the only product they do still make here. And - Bean is non-union.

I have said this umpteen times but it needs repeating. Cheap labor is the result of world changes such as the end of the cold war and advent of the global economy. It is a genie that will never go back into the bottle. So if American company X wants to be 'patriotic' and keep manufacturing jobs here, it can only happen if workers take a huge pay cut. They are never willing to do that - especially union workers. So instead, they lose their jobs entirely. If company X doesn't use the available cheap labor, they will go out of business because their competition will.

This is an easy issue to demagogue, and all the pols, of all stripes, do! It is a tough, tough problem. On an individual basis, the only answer is education. Learn the high tech skills so you design things instead of make them. Or learn a skill that is in demand or that cannot be outsourced. Those are the only choices.

And everyone complains about Walmart, Costco, etc., selling so many Chinese products but they keep shopping there. Why? They save lots of money! In this economy, with all the challenges, how much more would we be paying for everyday products if all Chinese and third world stuff was banned???

Example of what I was saying is Apple. Their hardware is made in Chinese sweatshops. But the apps and software, etc. are mainly done here by well paid engineers and programmers.

And look where OUR Federal Reserve money went in the crisis.

http://www.bloomberg.com/news/2011-04-01/foreign-banks-tapped-fed-s-lifeline-most-as-bernanke-kept-borrowers-secret.html

Good news about that appliance manufacturer, Memory. Maybe more companies will eventually follow suit. This country so needs more companies to make their products here so that people can actually be working. You really have a point about the real cost of US workers losing their jobs due to them being sent to foreign countries.

And Victor, you have a point about the fact that we shop at Walmart cause it's cheap and affordable, and in this economy we can't afford to shell out a lot of money for all the stuff we want and need in our daily lives. Walmart does get a lot of my money, I must admit.

Karen

Victor is reminding us that monetary policies that kinda worked in the past may work more like a tsunami if we overlend. Sadly, of late there don't seem to be any political solutions on the horizon either. I do have control only over the daily local decisions, such as to pay the extra money for fresh local produce, and now over decisions of what my family does on the world-wide web.

Our family believes in the importance of education, too, but that is another system that we think is broken or inadequate. Every time I meet a family who says their young boy is curious and creative, I think, "Uh oh, big trouble ahead." It felt really good when I met a single mother I could put in touch with my son's website and email so her kid can get computer guidance that they don't have at home. Otherwise it can get pretty lonely out there.

History has shown, over and over, that 'make-work' schemes never work. The New Deal programs were certainly a psychological boost in the depression, but really did not make much difference. After an initial drop in unemployment, it went right back up. Only the war ended it.

We see it now with the federal government pouring money into the fictitious 'green economy'. Chevy Volts are subsidized by us to the tune of a quarter million per vehicle. And no one is buying them. If it were not for the fleet purchases by federal, state and local governments, there would be virtually no sales at all. And to boot, there is evidence the news about fires from the batteries was covered up. And, of course, there is Solyndra.

The Cash for Clunkers program was supposed to help individuals by removing less efficient cars from the roads so people would save on gas. What was the result? The cost of used cars went through the roof. This directly affects the middle class! Rich people don't buy used cars. Also, the program mandated total destruction of the cars - so tons of valuable parts were needlessly destroyed. Result - much more expensive parts. Duhhhhhh.

This message was edited Jan 15, 2012 2:02 PM

Hated the whole Cash for clunkers. A moron (me) could tell it was a bad idea.

Many people shop as a hobby. They'd rather have many chances to buy cheap clothes, than make an investment in more expensive quality clothes. I think.

Are those Chevy Volts run on electric only? Are they the ones that need to be plugged into special plug in stations? If so, no wonder no one wants them. The hybrid cars seem to be fairly popular, though. I have a friend who bought the Toyota one, and our company bought 2 Honda Civic hybrids.

Victor, what a waste on those cars that were destroyed. Doesn't part of living green mean that we reuse old stuff to as much an extent as we can?

Speaking of buying clothes, Macy's has a lot of stuff I like, but outrageous prices. I wait till they have them on clearance, and I've gotten a lot of nice things there for cheap.

Karen

Volts are electricity (30 mile range) and gas.

Actually I think that the Cash for Clunkers was a stimulus for the auto industry and had little to do - other than spin - with the environment.

Two years ago people here in Fairfield County drove around in their Hummers - today the Prius is the car to have. (Wish I had one.)

Fairfield County = status, rich.

The stimulus deal that might have actually been green was the tax rebate for fuel efficient woodstoves. The incentive gave my thrifty little heart the boost to install a fuel efficient stove that we managed to turn into an architectural feature. On this cold night, the branches from the last storms are heating us, and when you look at the chimney from outside, there is truly no visible smoke anywhere. But for cars, we really don't have such great alternative fuels or efficient batteries yet.

Like my pellet stove. Missed the incentive on that one. Bought mine a few months before it started. My installer offered to change the date on the paperwork but I declined. Did get great incentives on my solar.

We thought about pellet stoves too. Maybe on the next house. Victor, sounds like you must have researched solar. We haven't figured a good way to do that

Those fuel efficient stoves sound nice. Wood or pellet or both? I missed out on that one, not that we had the money to replace our old stove. We don't use it much these days. My sister was buying wood last year, but I felt it wasn't saving us any money, as it only heated one end of the house, so we ended up turning on the furnace anyhow to heat the other end.

Victor, do the Volts have to be plugged in, or does the gas engine charge the battery?

Karen

Have pellet prices gone up lately? I thought I heard they had, due to slowdown in construction.
(I'd LOVE to have a sunroom/ weatherized outdoorsy room, with stove or fireplace...sigh....) I have a fireplace with brick surround, not at all instyle or efficient. When you really want a fire, its really cold out and the makeup air is extra cold, plus the vent air, since we leave the flue open plenty long after the fire.

Rich people can afford to buy a new car when conditions change. For many of us, once you own the vehicle, trading in to save gas is not an easy payoff.

Victor - actually Fairfield County = 1%

I'm looking into trading in my car, but I owe more than it's worth. Will end up costing me more money, which I really don't want. Not unless I have about $2,000 to put down, which I don't. I was looking at the Hyundai Accent. Nice car and very fuel efficient. Even though I like my PT Cruiser, it is not good on gas. I spend a good $60-$70 a week on it. When I think about it, maybe the extra cost in payments would be worth it, as I'd be saving a lot of money in gas. It would probably work out to be about even. Hmmmm.....

Karen

Don't forget the increase in Insurance and car tax. That alone has me driving my old Saturn because in Connecticut, the increase would be about $200 a month.

If there's any question of finances, a used car is often the way to go. Cars lose a huge part of their value the minute thery6're driven off the lot. We bought a used car not long ago, but insisted that it must be later than 2002, and then researched the side air bags. AWD, and no-roll over features to be sure they were adequate. Then you still have to consider the maintenance costs.

In our case, we wanted to teach the kids how to repair a car, so instead of going to summer canp, they got instructions from their dad early morning and night, so I consider it a savings by purchasing a fixer-upper with Ford parts, as well as not having to send two to summer camp, and they could work or volunteer a bit in daytime. There's always an odd one that has different interests. We're trying to pass on the practical skills which schools in this era don't do. When one DD marries, she's going to get some lucky guy who can ask her to do a brake job on the family car.

Questioning my own math now. I might trade in my used van for a used Civic and get 35 mpg instead of 22. Trading down to a smaller car might offset the taxes and decrease the insurance.

Rosemary, good deal. My dad taught me some car stuff. Back then you could open the hood and see through to the pavement. Engine, big round air filter housing over carb... radiator, battery.... About does it.

Karen - volts are plugged in AND get re-charged while driving.

I don't know if there would be an increase in my insurance. Wouldn't be much. I already have full coverage, cause my current vehicle still has 2 years left on the loan. Silly me, I thought I only had one year left on my loan. Was thinking it was a 5 year loan. No, it's a 6 year loan. That just shows you how confused I can get.

That Hyundai Accent gets 40 mpg, and my PT Cruiser get nearly half that. About 24 hwy and 20-21 city. That would save me a lot in gas. I drive anywhere from 50-100 miles a day, as I use my car for work. At work I put anywhere from 30-60 miles a day, 4 days a week, then my commuting miles and errands, going out for fun, etc. It really adds up. I get .50 a mile reimbursement for my work.

That's great you guys taught your kids how to repair cars, Rosemary. That's a skill that's seldom taught these days, though I dare say many parents don't have those skills to pass on.

Victor, do those Volts have to be plugged in at special stations or on a regular outlet at home? They seem rather limited compared to the Prius or Honda Civic hybrids.

Karen