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August 17, 2011 at 1:08 PM #721639August 17, 2011 at 1:48 PM #720452
ucodegen
Participant[quote=briansd1] Another non-populist view of the Tea Party’s is to give a free pass to the banks for the bailouts they received. Granted, the Tea Party is against bailouts. But now that they bailouts have happened, the Tea Party is against taxing the banks to recover the money. So the banks essentially got a free ride. [/quote]This is not completely true. I covered this earlier. The banks had to pay back the TARP money, or become owned by the Gov. They were also charged an interest rate on the TARP money. There were more ‘insidious’ portions though. The interest rate depended upon how politically ‘favored’, from the Goldman Sachs point of view, the particular bank was. From what I could tell, GS paid 0% interest on their TARP money, BofA paid 5%.. and Freddy/Fannie paid 10%. The mortgage bankers do not like Freddy and Fannie because these institutions for a ceiling on what interest can be charged on Mortgages. There are a few banks, very few, that have not paid back the TARP money (CIT, FRE, FNM come to mind. GS doesn’t want FRE and FNM to recover, so the interest rate is so high that the 2-3%margin on mortgages can’t cover the TARP’s loan interest).
On the other hand, the Fed and local governments have been continually tampering with laws with respect to loans and mortgages. It makes it hard for banks to know how to handle lending.
BTW, looking at the banks for money right now is not the right focus. Try looking at the oil companies. They got a gimmie under Bush in terms of tax giveaways.
August 17, 2011 at 1:48 PM #720545Participant[quote=briansd1] Another non-populist view of the Tea Party’s is to give a free pass to the banks for the bailouts they received. Granted, the Tea Party is against bailouts. But now that they bailouts have happened, the Tea Party is against taxing the banks to recover the money. So the banks essentially got a free ride. [/quote]This is not completely true. I covered this earlier. The banks had to pay back the TARP money, or become owned by the Gov. They were also charged an interest rate on the TARP money. There were more ‘insidious’ portions though. The interest rate depended upon how politically ‘favored’, from the Goldman Sachs point of view, the particular bank was. From what I could tell, GS paid 0% interest on their TARP money, BofA paid 5%.. and Freddy/Fannie paid 10%. The mortgage bankers do not like Freddy and Fannie because these institutions for a ceiling on what interest can be charged on Mortgages. There are a few banks, very few, that have not paid back the TARP money (CIT, FRE, FNM come to mind. GS doesn’t want FRE and FNM to recover, so the interest rate is so high that the 2-3%margin on mortgages can’t cover the TARP’s loan interest).
On the other hand, the Fed and local governments have been continually tampering with laws with respect to loans and mortgages. It makes it hard for banks to know how to handle lending.
BTW, looking at the banks for money right now is not the right focus. Try looking at the oil companies. They got a gimmie under Bush in terms of tax giveaways.
August 17, 2011 at 1:48 PM #721143Participant[quote=briansd1] Another non-populist view of the Tea Party’s is to give a free pass to the banks for the bailouts they received. Granted, the Tea Party is against bailouts. But now that they bailouts have happened, the Tea Party is against taxing the banks to recover the money. So the banks essentially got a free ride. [/quote]This is not completely true. I covered this earlier. The banks had to pay back the TARP money, or become owned by the Gov. They were also charged an interest rate on the TARP money. There were more ‘insidious’ portions though. The interest rate depended upon how politically ‘favored’, from the Goldman Sachs point of view, the particular bank was. From what I could tell, GS paid 0% interest on their TARP money, BofA paid 5%.. and Freddy/Fannie paid 10%. The mortgage bankers do not like Freddy and Fannie because these institutions for a ceiling on what interest can be charged on Mortgages. There are a few banks, very few, that have not paid back the TARP money (CIT, FRE, FNM come to mind. GS doesn’t want FRE and FNM to recover, so the interest rate is so high that the 2-3%margin on mortgages can’t cover the TARP’s loan interest).
On the other hand, the Fed and local governments have been continually tampering with laws with respect to loans and mortgages. It makes it hard for banks to know how to handle lending.
BTW, looking at the banks for money right now is not the right focus. Try looking at the oil companies. They got a gimmie under Bush in terms of tax giveaways.
August 17, 2011 at 1:48 PM #721299Participant[quote=briansd1] Another non-populist view of the Tea Party’s is to give a free pass to the banks for the bailouts they received. Granted, the Tea Party is against bailouts. But now that they bailouts have happened, the Tea Party is against taxing the banks to recover the money. So the banks essentially got a free ride. [/quote]This is not completely true. I covered this earlier. The banks had to pay back the TARP money, or become owned by the Gov. They were also charged an interest rate on the TARP money. There were more ‘insidious’ portions though. The interest rate depended upon how politically ‘favored’, from the Goldman Sachs point of view, the particular bank was. From what I could tell, GS paid 0% interest on their TARP money, BofA paid 5%.. and Freddy/Fannie paid 10%. The mortgage bankers do not like Freddy and Fannie because these institutions for a ceiling on what interest can be charged on Mortgages. There are a few banks, very few, that have not paid back the TARP money (CIT, FRE, FNM come to mind. GS doesn’t want FRE and FNM to recover, so the interest rate is so high that the 2-3%margin on mortgages can’t cover the TARP’s loan interest).
On the other hand, the Fed and local governments have been continually tampering with laws with respect to loans and mortgages. It makes it hard for banks to know how to handle lending.
BTW, looking at the banks for money right now is not the right focus. Try looking at the oil companies. They got a gimmie under Bush in terms of tax giveaways.
August 17, 2011 at 1:48 PM #721664Participant[quote=briansd1] Another non-populist view of the Tea Party’s is to give a free pass to the banks for the bailouts they received. Granted, the Tea Party is against bailouts. But now that they bailouts have happened, the Tea Party is against taxing the banks to recover the money. So the banks essentially got a free ride. [/quote]This is not completely true. I covered this earlier. The banks had to pay back the TARP money, or become owned by the Gov. They were also charged an interest rate on the TARP money. There were more ‘insidious’ portions though. The interest rate depended upon how politically ‘favored’, from the Goldman Sachs point of view, the particular bank was. From what I could tell, GS paid 0% interest on their TARP money, BofA paid 5%.. and Freddy/Fannie paid 10%. The mortgage bankers do not like Freddy and Fannie because these institutions for a ceiling on what interest can be charged on Mortgages. There are a few banks, very few, that have not paid back the TARP money (CIT, FRE, FNM come to mind. GS doesn’t want FRE and FNM to recover, so the interest rate is so high that the 2-3%margin on mortgages can’t cover the TARP’s loan interest).
On the other hand, the Fed and local governments have been continually tampering with laws with respect to loans and mortgages. It makes it hard for banks to know how to handle lending.
BTW, looking at the banks for money right now is not the right focus. Try looking at the oil companies. They got a gimmie under Bush in terms of tax giveaways.
August 17, 2011 at 2:12 PM #720457Participant[quote=Nor-LA-SD-GUY2]You have to fix housing or wait for it to fix itself that is the only way you will get out of the current high unemployment problems (and no there are not too many houses at least not in socal).[/quote]
I don’t think housing will lead us out of this one. Functionally, housings biggest single cost item is land. Land is not produced in a factory nor does the sale of land create jobs. It does pay the ‘landed wealthy’ though when they can sell parts of parcels they own. The concentration needs to be on jobs, not saving Real Estate. Tweaking rates, mortgage terms etc to allow a how to sell at a higher price may help the one selling, but it doesn’t help the one buying.I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.
August 17, 2011 at 2:12 PM #720550Participant[quote=Nor-LA-SD-GUY2]You have to fix housing or wait for it to fix itself that is the only way you will get out of the current high unemployment problems (and no there are not too many houses at least not in socal).[/quote]
I don’t think housing will lead us out of this one. Functionally, housings biggest single cost item is land. Land is not produced in a factory nor does the sale of land create jobs. It does pay the ‘landed wealthy’ though when they can sell parts of parcels they own. The concentration needs to be on jobs, not saving Real Estate. Tweaking rates, mortgage terms etc to allow a how to sell at a higher price may help the one selling, but it doesn’t help the one buying.I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.
August 17, 2011 at 2:12 PM #721148Participant[quote=Nor-LA-SD-GUY2]You have to fix housing or wait for it to fix itself that is the only way you will get out of the current high unemployment problems (and no there are not too many houses at least not in socal).[/quote]
I don’t think housing will lead us out of this one. Functionally, housings biggest single cost item is land. Land is not produced in a factory nor does the sale of land create jobs. It does pay the ‘landed wealthy’ though when they can sell parts of parcels they own. The concentration needs to be on jobs, not saving Real Estate. Tweaking rates, mortgage terms etc to allow a how to sell at a higher price may help the one selling, but it doesn’t help the one buying.I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.
August 17, 2011 at 2:12 PM #721304Participant[quote=Nor-LA-SD-GUY2]You have to fix housing or wait for it to fix itself that is the only way you will get out of the current high unemployment problems (and no there are not too many houses at least not in socal).[/quote]
I don’t think housing will lead us out of this one. Functionally, housings biggest single cost item is land. Land is not produced in a factory nor does the sale of land create jobs. It does pay the ‘landed wealthy’ though when they can sell parts of parcels they own. The concentration needs to be on jobs, not saving Real Estate. Tweaking rates, mortgage terms etc to allow a how to sell at a higher price may help the one selling, but it doesn’t help the one buying.I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.
August 17, 2011 at 2:12 PM #721669Participant[quote=Nor-LA-SD-GUY2]You have to fix housing or wait for it to fix itself that is the only way you will get out of the current high unemployment problems (and no there are not too many houses at least not in socal).[/quote]
I don’t think housing will lead us out of this one. Functionally, housings biggest single cost item is land. Land is not produced in a factory nor does the sale of land create jobs. It does pay the ‘landed wealthy’ though when they can sell parts of parcels they own. The concentration needs to be on jobs, not saving Real Estate. Tweaking rates, mortgage terms etc to allow a how to sell at a higher price may help the one selling, but it doesn’t help the one buying.I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.
August 17, 2011 at 2:24 PM #720462blahblahblah
Participant[quote=ucodegen]
I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.[/quote]I feel your pain UCG, but I’m worried that the outcome will simply be to move everything overseas. Case in point – I know of a couple of projects where everyone involved is in China except project management which is here in the US. They have lots of problems, delays, etc… that all come down to time zone and communications issues. So what’s easier? Move all of the work back here or just hire a PM in China?
Once the big rock starts rolling downhill it’s hard to stop. I’m just trying to get out of the way.
I am heartened by this new show “Hoarders”, though. I think that hoarding cleanup might be a good business to get into.
August 17, 2011 at 2:24 PM #720555Participant[quote=ucodegen]
I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.[/quote]I feel your pain UCG, but I’m worried that the outcome will simply be to move everything overseas. Case in point – I know of a couple of projects where everyone involved is in China except project management which is here in the US. They have lots of problems, delays, etc… that all come down to time zone and communications issues. So what’s easier? Move all of the work back here or just hire a PM in China?
Once the big rock starts rolling downhill it’s hard to stop. I’m just trying to get out of the way.
I am heartened by this new show “Hoarders”, though. I think that hoarding cleanup might be a good business to get into.
August 17, 2011 at 2:24 PM #721154Participant[quote=ucodegen]
I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.[/quote]I feel your pain UCG, but I’m worried that the outcome will simply be to move everything overseas. Case in point – I know of a couple of projects where everyone involved is in China except project management which is here in the US. They have lots of problems, delays, etc… that all come down to time zone and communications issues. So what’s easier? Move all of the work back here or just hire a PM in China?
Once the big rock starts rolling downhill it’s hard to stop. I’m just trying to get out of the way.
I am heartened by this new show “Hoarders”, though. I think that hoarding cleanup might be a good business to get into.
August 17, 2011 at 2:24 PM #721309Participant[quote=ucodegen]
I am going to add the following – because I just got through dealing with it. We are shipping too much of our labor overseas, and it really doesn’t pay off. Too many companies are looking at the raw labor cost not factoring in production rate and quality. The reason this came up: I had to deal with Oracle support (MOS). On one issue, I had to deal with support based in China. The experience was almost like “Who’s on First”. Fine if I was wanting entertainment, but I have to deal with a system with reduced functionality – needs to be fixed. Part of the discussion ended up with the support person repeating everything I had entered, but in the form of a question.[/quote]I feel your pain UCG, but I’m worried that the outcome will simply be to move everything overseas. Case in point – I know of a couple of projects where everyone involved is in China except project management which is here in the US. They have lots of problems, delays, etc… that all come down to time zone and communications issues. So what’s easier? Move all of the work back here or just hire a PM in China?
Once the big rock starts rolling downhill it’s hard to stop. I’m just trying to get out of the way.
I am heartened by this new show “Hoarders”, though. I think that hoarding cleanup might be a good business to get into.
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