[DWCAP]

As for the employees trying to get an increase in their pensions, did they ever stop? DO they ever stop? Boom/recession/depression/bankrupcy, I think we can add another item to the list of things that are unavoidable. Death, taxes, and perpulatly increaseing public pensions.

[DWCAP]

As for the employees trying to get an increase in their pensions, did they ever stop? DO they ever stop? Boom/recession/depression/bankrupcy, I think we can add another item to the list of things that are unavoidable. Death, taxes, and perpulatly increaseing public pensions.

[DWCAP]

I dont mind the city raising water rates, IF (I know I know only in lala land) they also lowered the set fees they charge.

In my last water bill, the cost of the actual water was 12% of the bill. The rest was just a bunch of set connection/sewer fees. If they really wanted to increase water savings, triple the cost of water, but cut the fees. Reward the people who are responsible and reduce their need for services/inpact on environment; and let the people who want to flood irrigate their grass or shave while the water runs pay the true cost of doing so.

But that will never happen, theyll just add more fees for everyone.

[DWCAP]

I dont mind the city raising water rates, IF (I know I know only in lala land) they also lowered the set fees they charge.

In my last water bill, the cost of the actual water was 12% of the bill. The rest was just a bunch of set connection/sewer fees. If they really wanted to increase water savings, triple the cost of water, but cut the fees. Reward the people who are responsible and reduce their need for services/inpact on environment; and let the people who want to flood irrigate their grass or shave while the water runs pay the true cost of doing so.

But that will never happen, theyll just add more fees for everyone.

[DWCAP]

I dont mind the city raising water rates, IF (I know I know only in lala land) they also lowered the set fees they charge.

In my last water bill, the cost of the actual water was 12% of the bill. The rest was just a bunch of set connection/sewer fees. If they really wanted to increase water savings, triple the cost of water, but cut the fees. Reward the people who are responsible and reduce their need for services/inpact on environment; and let the people who want to flood irrigate their grass or shave while the water runs pay the true cost of doing so.

But that will never happen, theyll just add more fees for everyone.

[DWCAP]

I dont mind the city raising water rates, IF (I know I know only in lala land) they also lowered the set fees they charge.

In my last water bill, the cost of the actual water was 12% of the bill. The rest was just a bunch of set connection/sewer fees. If they really wanted to increase water savings, triple the cost of water, but cut the fees. Reward the people who are responsible and reduce their need for services/inpact on environment; and let the people who want to flood irrigate their grass or shave while the water runs pay the true cost of doing so.

But that will never happen, theyll just add more fees for everyone.

[DWCAP]

I dont mind the city raising water rates, IF (I know I know only in lala land) they also lowered the set fees they charge.

In my last water bill, the cost of the actual water was 12% of the bill. The rest was just a bunch of set connection/sewer fees. If they really wanted to increase water savings, triple the cost of water, but cut the fees. Reward the people who are responsible and reduce their need for services/inpact on environment; and let the people who want to flood irrigate their grass or shave while the water runs pay the true cost of doing so.

But that will never happen, theyll just add more fees for everyone.

[DWCAP]

Too true FSD, too True. Current rates on adjustable loans can all to often move DOWN, easing payments for the next 6-12 months. Interesting to think that even with that we still have increasing foreclosure actions.

But lets go back to this time two years ago (ie before the recession started) and see what 12 month LIBOR is.

—–>5.275%. (sept 07)
+2.25 and your rounding 1/8th and we have 7.6%.

Going back to 2002-2004, we see the same 1.3-1.4% LIBOR rates back when FED overnight lending rates were 1% HIGHER, and they hadnt flooded the market buying nearly ever piece of trash paper they could pick up. Or have to bail out the largest insitiutions from their own stupidity with direct infusions of capital, everyone is looking at you citi and BOA.

So rates have hit what seems to be a structeral bottom and can only go up from here, albeit I have a feeling not for atleast another year so the fed can get another bubble going in something.

[DWCAP]

Too true FSD, too True. Current rates on adjustable loans can all to often move DOWN, easing payments for the next 6-12 months. Interesting to think that even with that we still have increasing foreclosure actions.

But lets go back to this time two years ago (ie before the recession started) and see what 12 month LIBOR is.

—–>5.275%. (sept 07)
+2.25 and your rounding 1/8th and we have 7.6%.

Going back to 2002-2004, we see the same 1.3-1.4% LIBOR rates back when FED overnight lending rates were 1% HIGHER, and they hadnt flooded the market buying nearly ever piece of trash paper they could pick up. Or have to bail out the largest insitiutions from their own stupidity with direct infusions of capital, everyone is looking at you citi and BOA.

So rates have hit what seems to be a structeral bottom and can only go up from here, albeit I have a feeling not for atleast another year so the fed can get another bubble going in something.

[DWCAP]

Too true FSD, too True. Current rates on adjustable loans can all to often move DOWN, easing payments for the next 6-12 months. Interesting to think that even with that we still have increasing foreclosure actions.

But lets go back to this time two years ago (ie before the recession started) and see what 12 month LIBOR is.

—–>5.275%. (sept 07)
+2.25 and your rounding 1/8th and we have 7.6%.

Going back to 2002-2004, we see the same 1.3-1.4% LIBOR rates back when FED overnight lending rates were 1% HIGHER, and they hadnt flooded the market buying nearly ever piece of trash paper they could pick up. Or have to bail out the largest insitiutions from their own stupidity with direct infusions of capital, everyone is looking at you citi and BOA.

So rates have hit what seems to be a structeral bottom and can only go up from here, albeit I have a feeling not for atleast another year so the fed can get another bubble going in something.

[DWCAP]

Too true FSD, too True. Current rates on adjustable loans can all to often move DOWN, easing payments for the next 6-12 months. Interesting to think that even with that we still have increasing foreclosure actions.

But lets go back to this time two years ago (ie before the recession started) and see what 12 month LIBOR is.

—–>5.275%. (sept 07)
+2.25 and your rounding 1/8th and we have 7.6%.

Going back to 2002-2004, we see the same 1.3-1.4% LIBOR rates back when FED overnight lending rates were 1% HIGHER, and they hadnt flooded the market buying nearly ever piece of trash paper they could pick up. Or have to bail out the largest insitiutions from their own stupidity with direct infusions of capital, everyone is looking at you citi and BOA.

So rates have hit what seems to be a structeral bottom and can only go up from here, albeit I have a feeling not for atleast another year so the fed can get another bubble going in something.

[DWCAP]

Too true FSD, too True. Current rates on adjustable loans can all to often move DOWN, easing payments for the next 6-12 months. Interesting to think that even with that we still have increasing foreclosure actions.

But lets go back to this time two years ago (ie before the recession started) and see what 12 month LIBOR is.

—–>5.275%. (sept 07)
+2.25 and your rounding 1/8th and we have 7.6%.

Going back to 2002-2004, we see the same 1.3-1.4% LIBOR rates back when FED overnight lending rates were 1% HIGHER, and they hadnt flooded the market buying nearly ever piece of trash paper they could pick up. Or have to bail out the largest insitiutions from their own stupidity with direct infusions of capital, everyone is looking at you citi and BOA.

So rates have hit what seems to be a structeral bottom and can only go up from here, albeit I have a feeling not for atleast another year so the fed can get another bubble going in something.

[DWCAP]

I guess the answer lies in what “shadow inventory” is. If you only consider it to be houses that have been taken back by the bank, but are not for sale on the MLS, then there would be a question of ‘why sell anything?’ Why not just withhold inventory until prices reach par with the loan?

If you think of shadow inventory as all the houses that are in serious default, but not already REO on the market, then you realize that many many houses may be caught up in a limbo where banks are unable to process them in a timly manor, and as such only a certain number of them reach the market at any given time. That number is the amount the banks are able to process, both functionally and politically. The rest just live in limbo for another day/week/month/year.

Remember banks are not in the property management buisness. They are in the loan buisness. They dont want your property, they dont want to have to resell houses. They want your monthly payment, and only resort to taking the house when they have to try to get something of the cash they loaned you back.

[DWCAP]

I guess the answer lies in what “shadow inventory” is. If you only consider it to be houses that have been taken back by the bank, but are not for sale on the MLS, then there would be a question of ‘why sell anything?’ Why not just withhold inventory until prices reach par with the loan?

If you think of shadow inventory as all the houses that are in serious default, but not already REO on the market, then you realize that many many houses may be caught up in a limbo where banks are unable to process them in a timly manor, and as such only a certain number of them reach the market at any given time. That number is the amount the banks are able to process, both functionally and politically. The rest just live in limbo for another day/week/month/year.

Remember banks are not in the property management buisness. They are in the loan buisness. They dont want your property, they dont want to have to resell houses. They want your monthly payment, and only resort to taking the house when they have to try to get something of the cash they loaned you back.

[DWCAP]

I guess the answer lies in what “shadow inventory” is. If you only consider it to be houses that have been taken back by the bank, but are not for sale on the MLS, then there would be a question of ‘why sell anything?’ Why not just withhold inventory until prices reach par with the loan?

If you think of shadow inventory as all the houses that are in serious default, but not already REO on the market, then you realize that many many houses may be caught up in a limbo where banks are unable to process them in a timly manor, and as such only a certain number of them reach the market at any given time. That number is the amount the banks are able to process, both functionally and politically. The rest just live in limbo for another day/week/month/year.

Remember banks are not in the property management buisness. They are in the loan buisness. They dont want your property, they dont want to have to resell houses. They want your monthly payment, and only resort to taking the house when they have to try to get something of the cash they loaned you back.

[Author]

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