Does anyone care about the economy?

[dkfan9]

I dont know what it's like in other areas of the country right now but residential real estate is getting frothy again here...every open house I go to lately on listings that just hit the market are having multiple bids and selling way over listing.

this is a serious question: are rich Chinese people moving to that area of the country in somewhat large numbers?

not at all, this is LA not Vancouver BC

i wonder how cold thodoks is right now.

also, i'm in ohio, so i see no housing froth, and no matter whether a bubble happens, i probably won't see too much.

I dont know if he's posting here or not now...actually the chinese money is drying up at pretty quik pace in Vancouver as well..3 months ago I had my choice of houses here but now it's its way too difficult..it reminds me of NYC real estate at the start of about 2004-5

i guess my moving to california plans are falling to the wayside

depends on where you want to live...still plenty of affordable stuff out there...it's just that west LA near the ocean is getting ridiculous..And San Fran is always bat shit crazy expensive

this is more a thing for a few years down the line, so i'm just crossing my fingers against another housing bubble (though if it pops by the time i go that way, i might luck out)

[doug rr]

I dont know what it's like in other areas of the country right now but residential real estate is getting frothy again here...every open house I go to lately on listings that just hit the market are having multiple bids and selling way over listing.

this is a serious question: are rich Chinese people moving to that area of the country in somewhat large numbers?

not at all, this is LA not Vancouver BC

i wonder how cold thodoks is right now.

also, i'm in ohio, so i see no housing froth, and no matter whether a bubble happens, i probably won't see too much.

I dont know if he's posting here or not now...actually the chinese money is drying up at pretty quik pace in Vancouver as well..3 months ago I had my choice of houses here but now it's its way too difficult..it reminds me of NYC real estate at the start of about 2004-5

i guess my moving to california plans are falling to the wayside

depends on where you want to live...still plenty of affordable stuff out there...it's just that west LA near the ocean is getting ridiculous..And San Fran is always bat shit crazy expensive

this is more a thing for a few years down the line, so i'm just crossing my fingers against another housing bubble (though if it pops by the time i go that way, i might luck out)

good luck, I wont lie, its great out here..are you looking at southern california or elsewhere?

[dkfan9]

I dont know what it's like in other areas of the country right now but residential real estate is getting frothy again here...every open house I go to lately on listings that just hit the market are having multiple bids and selling way over listing.

this is a serious question: are rich Chinese people moving to that area of the country in somewhat large numbers?

not at all, this is LA not Vancouver BC

i wonder how cold thodoks is right now.

also, i'm in ohio, so i see no housing froth, and no matter whether a bubble happens, i probably won't see too much.

I dont know if he's posting here or not now...actually the chinese money is drying up at pretty quik pace in Vancouver as well..3 months ago I had my choice of houses here but now it's its way too difficult..it reminds me of NYC real estate at the start of about 2004-5

i guess my moving to california plans are falling to the wayside

depends on where you want to live...still plenty of affordable stuff out there...it's just that west LA near the ocean is getting ridiculous..And San Fran is always bat shit crazy expensive

this is more a thing for a few years down the line, so i'm just crossing my fingers against another housing bubble (though if it pops by the time i go that way, i might luck out)

good luck, I wont lie, its great out here..are you looking at southern california or elsewhere?

southern, yeah. the weather is hard to resist (among other things)

[dkfan9]

Ok, so I haven't read this, but knowing the author fairly well from his blog, I'd highly recommend it:

[simple schoolboy]

I dont know what it's like in other areas of the country right now but residential real estate is getting frothy again here...every open house I go to lately on listings that just hit the market are having multiple bids and selling way over listing.

this is a serious question: are rich Chinese people moving to that area of the country in somewhat large numbers?

not at all, this is LA not Vancouver BC

i wonder how cold thodoks is right now.

also, i'm in ohio, so i see no housing froth, and no matter whether a bubble happens, i probably won't see too much.

I dont know if he's posting here or not now...actually the chinese money is drying up at pretty quik pace in Vancouver as well..3 months ago I had my choice of houses here but now it's its way too difficult..it reminds me of NYC real estate at the start of about 2004-5

i guess my moving to california plans are falling to the wayside

depends on where you want to live...still plenty of affordable stuff out there...it's just that west LA near the ocean is getting ridiculous..And San Fran is always bat shit crazy expensive

this is more a thing for a few years down the line, so i'm just crossing my fingers against another housing bubble (though if it pops by the time i go that way, i might luck out)

good luck, I wont lie, its great out here..are you looking at southern california or elsewhere?

southern, yeah. the weather is hard to resist (among other things)

Just don't make any furtive movements towards your waistband or try to start a business without the explicit blessing of the local city council.

[dkfan9]

I dont know what it's like in other areas of the country right now but residential real estate is getting frothy again here...every open house I go to lately on listings that just hit the market are having multiple bids and selling way over listing.

this is a serious question: are rich Chinese people moving to that area of the country in somewhat large numbers?

not at all, this is LA not Vancouver BC

i wonder how cold thodoks is right now.

also, i'm in ohio, so i see no housing froth, and no matter whether a bubble happens, i probably won't see too much.

I dont know if he's posting here or not now...actually the chinese money is drying up at pretty quik pace in Vancouver as well..3 months ago I had my choice of houses here but now it's its way too difficult..it reminds me of NYC real estate at the start of about 2004-5

i guess my moving to california plans are falling to the wayside

depends on where you want to live...still plenty of affordable stuff out there...it's just that west LA near the ocean is getting ridiculous..And San Fran is always bat shit crazy expensive

this is more a thing for a few years down the line, so i'm just crossing my fingers against another housing bubble (though if it pops by the time i go that way, i might luck out)

good luck, I wont lie, its great out here..are you looking at southern california or elsewhere?

southern, yeah. the weather is hard to resist (among other things)

Just don't make any furtive movements towards your waistband or try to start a business without the explicit blessing of the local city council.

don't worry, the only business i run will sell pot and eco-terrorist propaganda, so i'm sure the city councils of southern california will approve me

[Electromatic]

I dont know what it's like in other areas of the country right now but residential real estate is getting frothy again here...every open house I go to lately on listings that just hit the market are having multiple bids and selling way over listing.

this is a serious question: are rich Chinese people moving to that area of the country in somewhat large numbers?

not at all, this is LA not Vancouver BC

i wonder how cold thodoks is right now.

also, i'm in ohio, so i see no housing froth, and no matter whether a bubble happens, i probably won't see too much.

I dont know if he's posting here or not now...actually the chinese money is drying up at pretty quik pace in Vancouver as well..3 months ago I had my choice of houses here but now it's its way too difficult..it reminds me of NYC real estate at the start of about 2004-5

i guess my moving to california plans are falling to the wayside

depends on where you want to live...still plenty of affordable stuff out there...it's just that west LA near the ocean is getting ridiculous..And San Fran is always bat shit crazy expensive

this is more a thing for a few years down the line, so i'm just crossing my fingers against another housing bubble (though if it pops by the time i go that way, i might luck out)

good luck, I wont lie, its great out here..are you looking at southern california or elsewhere?

southern, yeah. the weather is hard to resist (among other things)

Just don't make any furtive movements towards your waistband or try to start a business without the explicit blessing of the local city council.

don't worry, the only business i run will sell pot and eco-terrorist propaganda, so i'm sure the city councils of southern california will approve me

You'll want to clear that with the local cartels.

[shinkdew]

Turns out Romney was right about Fisker being a loser.

http://online.wsj.com/article/SB1000142 ... %3Darticle

Fisker Speeds Up Its Search For Suitors

By SHARON TERLEP

Fisker Automotive Inc., the struggling maker of battery-powered sports cars, is in talks with several potential bidders as it accelerates a search for buyers and investors so it can keep operating, according to people familiar with the discussions.

The Anaheim, Calif., company, a clean-energy startup funded in part by the Obama administration's program to promote electric vehicles, has set a goal of finding a suitor by next month, the people said.

Two possible buyers have hired banks to work on a potential offer for Fisker, the people added.

Fisker is running low on funding and supply, and it isn't producing vehicles because the company can't obtain batteries from supplier A123 Systems Inc., AONEQ -8.16% which is in bankruptcy and working to sell itself.

Fisker last year hired investment bank Evercore Partners Inc. EVR +0.48% when it became clear the electric-car maker couldn't continue without a buyer or partner.

A sale of the company is the most likely path, the people said, but it is possible Fisker could remain independent if it finds a partner or investor, the people said. The company is seeking investors even in the case of a sale to make the company more attractive to potential buyers, they said.

Much of the interest in Fisker is coming from China and elsewhere in Asia, where company executives believe there is stronger interest in Fisker's electric-car technology, the people said. Fisker is also talking to companies in other regions, including the U.S., they said.

In addition to a lithium-ion battery that drives the car, Fisker vehicles also have a small gasoline engine that generates power when the battery runs low, alleviating concerns the car battery will die on the road.

On the mass market, only General Motors Co.'s GM -0.62% Chevrolet Volt has a similar setup. Most other plug-in cars either run on batteries alone or rely simultaneously on the battery and gasoline engine.

Among potential investors, Fisker has been in talks with Chinese-owned auto-parts manufacturer Wanxiang America Corp., one of the people familiar with the discussions said. Wanxiang America, a unit of China's Wanxiang Group, agreed late last year to buy battery maker A123, and is awaiting U.S. government approval.

Pin Ni, president of Wanxiang America, declined to comment.

In its pitch to potential suitors, Fisker is making the case that it offers an already developed battery-powered car that would otherwise cost more than $1 billion to develop.

Meanwhile, Fisker doesn't have the money to finish engineering its second model, a more modestly priced plug-in hybrid called the Atlantic, which the company hopes to sell for about half the price of the roughly $100,000 Karma and in much higher volumes.

A Fisker spokesman said the company is in "potential partnership and strategic alliance talks with the goal of moving the Atlantic project forward."

Fisker's struggles highlight the challenges facing electric-car makers, particularly in the U.S. The costs of electric-car batteries remain high, and gasoline-fueled vehicles have become more efficient, limiting the appeal of electric and plug-in hybrid vehicles.

In 2011, the U.S. Department of Energy put a hold on a government loan initially for $529 million, after Fisker missed several development deadlines for the Atlantic.

Fisker received $192 million in Energy Department loans. The company has said it is in regular contact with the government about its plans to become viable.

A Fisker failure would be a political setback for President Barack Obama, whose administration has been under fire in Congress for lending money to clean-energy startups that subsequently collapsed, including A123 and solar-panel maker Solyndra LLC.

[dkfan9]

The position I take, regarding stories like that: The failure of one or even a number of government funded startups isn't an indication that the policy itself was misguided--a lot of privately funded startups fail too, and even failures often provide some value. Of course, you can still disagree with the policy, or its execution, but in themselves company failures aren't strikes against an "infant industry" policy like this one.

[broken iris]

Stolen from zerohedge:

Goldman on to it's clients 10.Feb:





Stock price on 13.Feb:

http://finance.yahoo.com/q?s=hnz&ql=1
H. J. Heinz Company (HNZ) -NYSE
72.50 Up 12.02(19.88%) 10:36AM EST - Nasdaq Real Time Price


Tell your 'clients' to sell now so you can buy low and then two days later sell high. Anyone who thinks this game isn't rigged is deluding themselves.

[shinkdew]

When did Goldman buy low, the stock didn't move on their report.

[Biff Pocoroba]

What's going on with the price of gas?
I know that's a loaded question but c'mon. It's gone up 24 cents here since Sunday.

[Bob Loblaw]

The stock exchange is the economy, guys: http://www.newyorker.com/online/blogs/j ... picks=true

[dkfan9]

The stock exchange is the economy, guys: http://www.newyorker.com/online/blogs/j ... picks=true

lol yeah I hate that kind of thing. That kind of bland, entirely conventional liberalism seems just like the New Yorker to me.

Though i will say the Bush and Obama admin's for the most part pursued smart policies from the standpoint of crisis aversion. But crises have benefits too: they purge the system of bad debts and bad investments, and set the stage for long term economic success (see US post WW2)--pumping liquidity into the bond market doesn't solve the problem of overindebtedness, and thus the economy is still fragile today. However, this purging is incredibly painful, and in the process lots of otherwise good debts and good investments are taken down with the bad ones, and increased risk aversion reduces the number of good investments made. At the same time, it's tough to blame individual homeowners for the value of their house declining: an individual has as little power over cyclical changes in the economy as they do over changes in government policy like the sequester (and probably less power--one poor worker's vote in a House race can easily carry more weight than their consumption and savings decisions).

Saw this Kudlow from Bush'sw market highs in 07 on twitter today, pretty funny too: http://www.realclearpolitics.com/articl ... nfide.html

[simple schoolboy]

http://www.youtube.com/watch?v=0CaYuss28HQ

Kucinich calling for the nationalization of the Federal Reserve. Its funny in that while his prescription isn't he same as the Pauls, the underlying concerns are similar. Its a shame he isn't still in congress to promote civil liberties and the like.

And yes, I am very aware of how annoying this harping is. Accept these views or the punishment will continue!

[dkfan9]

http://www.youtube.com/watch?v=0CaYuss28HQ

Kucinich calling for the nationalization of the Federal Reserve. Its funny in that while his prescription isn't he same as the Pauls, the underlying concerns are similar. Its a shame he isn't still in congress to promote civil liberties and the like.

And yes, I am very aware of how annoying this harping is. Accept these views or the punishment will continue!

Interesting how close his views here seem to align with Modern Monetary Theory guys like Randall Wray and Warren Mosler. See http://neweconomicperspectives.org/p/mo ... rimer.html

[dkfan9]

And one of my favorite ideas in economics: http://neweconomicperspectives.org/2011 ... ersus.html

[simple schoolboy]

I don't know if any particular economic theory plays a strong part in his argument, but I could be mistaken. I thinks is based out of a concern for fairness and the recent history of fed guys being creepily close to bankers. This current system where the fed is neither nationalized nor merely a private entity competing among other private entities is probably the worst possible as far as favoritism and patronate go.

My vote is for bitcoin. Gold is just too damn dense.

[---]

.

[dkfan9]

Modern Monetary Theory is just national income accounting cloaked in an indecipherable wall of circular verbiage. Light on the models and actual economics, heavy on the insanity. Belongs in the trash heap of terrible ideas alongside the labor theory of value and Paul Krugman's unhinged pop-economics rants.

It does rely too heavily on the accounting identities, but these identities are important, and understanding the causality behind them is as well (that investment is the driver in S=I).** I tend not to worry much about US default, like the MMTers. The principle that lending creates money (and in our economy is the primary method for money creation) is one I fully support. What's so terrible in the MMT theory?

**This reminds me of something that always irks me in the Crusoe on the island metaphor. Saved coconuts for the building period are inventory investment, also savings, in period one. After they're consumed and the hut is built, the investment in the hut becomes the new savings. However, it's often presented with coconuts as the savings that equal the investment of the hut--instead, the coconuts=the coconuts, and the hut=the hut, and S=I in both cases.