I've Been Thinking... Have YOU?

I love cars.  I've followed the car market since the mid 70's and not owned a USA domestic name plate until recently. 

But things are set to change.

GM is marketing the 2008 Malibu as "the car you can't ignore" and that is the truth.  This car is a game changer and gives me great hope that the US Domestic Auto Industry may survive into the coming decades.  If this car is just the start, GM should do well over the next few years!

Take a tour with "Maximum Bob!"  (Bob Lutz, GM's Design Czar)

According to several recent articles from well respected financial news organizations, such as bloomburg, Foreclosures DOUBLED in September.  (Read the article here.)

As always, the devil is in the details and I want to point out one little quote:  ``The truth of the matter is that borrowers are going into default as soon as they hit their adjustments,'' said Rick Sharga, executive vice president of marketing at Irvine, California-based RealtyTrac.

To understand why this is the real news in this story, you need to understand that we are only at the beginning of the Loan Reset cycle... which peaks in March of next year!  (source here)

Adjustable Rate Loan Resets For 2007–2008

Month           Millions
January-07      22
February-07     25
March-07        35
April-07        37
May-07          36
June-07         42
July-07         43
August-07       52
September-07    58
October-07      55
November-07     52
December-07     58
January-08      80
February-08     88
March-08        110
April-08        92
May-08          76
June-08         75
July-08         50
August-08       35
September-08    26
October-08      20
November-08     15
December-08     17

The current market is already being described as worse than the S&L disaster in the 1980's (see article here) and we aren't even at the peak yet. 

Of course, this means we will also see sharp rise in personal bankruptcy along with a contraction in consumer spending. 

Let's see how long it takes before we hear the "R" word.

Media Tidbit:
I'm currently digging UK phenom, Kate Nash.  Here is her hit (in the UK): FOUNDATIONS

01_-_foundations_128_lame_cbr

Kate Nash

WARNING.... this is an all music posting with double Media Tidbits.  If you are looking for my usual jaundiced views the Economy, Real Estate or Politics.... MOVE ON (dot org?)

Firstly, I added two new DIVA CD's to the library:  The latest by Chaka Khan and Annie Lennox.

Cha... Chaka Khan... Chaka Khan!  Awesome CD and real return to pop after a decade in jazz.  Here collaboration with Mary J. Blige is destined to be a hit ("Disrespected") and is already charting in the UK (as well as having shown up on a mash up).

Annie-Lennox early 80s

DIVA_annielenox_1

Annie also returned to a more pop format after a couple very down beat collections.  The new CD has some of her best work since DIVA and I hope it charts for her.  Ever since I saw the video for "Sweet Dreams" in the 80's - - I've been and Annie Fan.

This brings us to our first of two Media Tidbits!  From her new CD, my favorite cut: Coloured Bedspread... a cut that harks back to some of the best work she's done as a solo artist (ie: the DIVA Album).

MEDIA TIDBIT #1 of 2:

08 - Annie Lennox - Songs of Mass Destruction - Coloured Bedspread

Annie Lennox

MEDIA TIDBIT #2 of 2

BritneySpears-vs-Kelly-GimmeMoreShoes

Britney Spears vs. Kelly

There is an old saying:  "May you live in interesting times." and it is widely viewed to be a curse as it can be argued that the word interesting is meant to be a synonym for turbulent or dangerous.  The origins of this phrase are disputed but thought to be Chinese.  (you can see a whole discussion on this on Wikipedia here)

Boy, are we living in "interesting times!" - - Alas Babylon, it seems that we are just at the beginning of a truly "interesting" period.  Day-by-day the Machiavellians in Corporate America decimate our middle class while our inept government continues to stumble from fumble to fumble (Iraq... Katrina... FEMA corruption... habeas corpus... GOP Scandals... cronyism... need further reminders?).

The number one economic clown of our time, Alan Greenspan, created a credit bubble to avoid a necessary recession in 2001.  What could have been a minor, necessary correction, was thwarted by artificially low interest that created a credit bubble that is now unwinding as a foreclosure crisis.  Unfortunately, reality doesn't work that way... you can't avoid a correction, you can only postpone it. 

Bernanke-Caught between inflation and dollar collapse

Unfortunately, it is becoming more and more apparent that it won't matter for the middle class... since we do not matter or even figure in their calculation (except for trying to get us to vote... which they pay obscene $$ to deceive us on).

What we have seen since Reagan, is a massive transfer of wealth.  Not from the rich to the poor... but from the working classes to the financial classes.  How long will Americans remain oblivious?  The left is accused of trying to incite "class warfare" but the wealthy already fighting (and winning).

Wake up America!  The middle class is under attack by the wealthy.... The nostalgia for "better times" they play on for votes was created by the liberalism of FDR's "New Deal" and post-WWII GI Bill.  Those transferred tremendous wealth from the top to the middle and created a middle class that is now under attack.  All the good things in the common workers lives, from a living wage to employer funded health care to government funded education... it all served to make the America that the rest of world used to admire.  By the way, you can thank socialist and unions for most of those gains... if it wasn't for unions, we would not have a weekend, paid holidays or a 40 hour work week.

Obviously, the "trickle" in Trickle down economics is the rich pissing on us.  I'm sure they will start a campaign to point out that the piss is warm, so we should be grateful.  It is time to eat the rich... Tax them as they were in 1940's and 1950's (top tax rate was WAY higher than now and they still managed to be rich).

MEDIA TIDBIT:
OK... enough doom & gloom!  Even on bad days, there is beauty and joy in the world!  I was recently turned on to a great artist: Eva Cassidy.  She is deceased and has had tremendous posthumous success.  Lovely voice... passionate delivery.  Check this out: It's her cover of Sting's Fields of Gold.  You can learn more about Eva here and on Wikipedia.

01 Fields of Gold

Eva Cassidy

Big+Dollar+Sign

I've written before that I believe that the governments inflation figures are pure malarkey.  I've also written that house prices in California are not supportable by working people's income....

Over at one of my favorite blogs, Dr Housing Bubble, he has posted a very thought provoking analysis (see it here) of the "Median California Family's" financial predicament and how they are virtually forced into debt.  Obviously, this is a recipe for disaster on many levels.  Certainly for the families that will eventually have to go bankrupt.  It's an even bigger disaster for our state... Debt slaves do not make good consumers because eventually they run out of credit.  With 2/3 of our nation's economy tied to consumer spending, it's easy to forecast the future.  If you think this can be contained to the California market, keep in mind that 1 of every 6 Americans lives in California.  SO goes Cali, so goes the USA.

Here's the part that really opened my eyes.  It is a median family budget (assuming median priced home, median priced vehicles, average credit card debt, median food and utility usage....).  Brace yourself and keep in mind that the MEDIAN HOUSEHOLD INCOME is under $65,000/yr in California (see below for more on that)

Monthly Budget for the "Average" Cali Family

Housing expense/PITI: $4,100 (Putting down $54,750 on $547,500 and using current jumbo rates on a $492,750.00 mortgage - 30 year fixed conventional financing)

Auto Loan Cost: $894 (2 cars with each carrying a $447 monthly loan).

Auto Insurance Cost: $160 (2 cars full coverage)

Fuel Cost: $300 (assuming that we only use $150 per vehicle)

Food Budget: $564

Dining Out: $200

College Support: $1,667 (Providing our kid $20,000 a year support to attend a 4 year private school)

Utilities: $120 (includes Gas, Electric, and basic phone service)

Credit Card Service Debt: $168 (According to Bankrate, average household credit card debt of $8,400)

Health care cost: $575 (Lower approximation for a family of four full coverage, according to The National Coalition on Health Care.)

Total Monthly Expenses: $8,748 or $104,976 annually.

This leaves the family with an annual deficit of about $40K!!!  I'm sure they can just roll that debt over at favorable rates, right?

By the way, curious how you stack up on income? 

The percent of US Households (in parentheses) that have annual household income over:

• $65,000 (34.72%)
• $80,000 (25.6%)
• $91,705 (20.0%)
• $100,000 (17.8%)
• $118,200 (10%)
• $166,200 (5%)
• $200,000 (2.67%)
• $250,000 (1.5%)
• $1,600,000 (0.12%)

Doubt my numbers?  Use the power of the internet and prove this wrong.  If I'm wrong, I'll post it!

Media Tidbit
Kendall is a performer out of Buffalo NY... He has some great stuff recorded and is currently touring.  You can visit his site at www.kendallshead.com - this is one of my favorite cuts from him.  It's called "God in Two Persons"

In Kendall's words:  "I did a cover version of Closer by NIN and God by Tori Amos a few years back. It is a piano/vocal version where the 2 songs overlap in the Coda. I really love the feel of it. It's mellow but my voice gets rough and kind of Rock-N-Roll."

GREAT COVER TUNE...   You can download it for free here.  Or stream it here:

Kendall - God In Two Persons

Kendall

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Many of you know, I'm positively obsessed with the economy and Real Estate Market.  I haven't posted much about them lately because... well, it turns out I was right.

Anyways, now that the wheels are falling off the housing market, people are taking extreme measures to avoid foreclosure.  A friend of mine has filed bankruptcy... never mind that it means he is tied to the over-priced house even longer!  I guess some of us pull the band-aid off FAST... and others pull it off slowly.

But what is so funny to me, is the victimology of all this.  People that over paid for Real Estate and then took a big, fat, exploding loan are NOT VICTIMS.  They signed willingly and of their own volition. Certainly, if a High School graduate like myself could figure out that this was a bad deal, it is not rocket science!

The fact that no one accepts responsibility for their predicament is just plain nuts.

Take this couple, for example:  They couldn't make their mortgage payment, so they started a brothel.  I mean, can't you see how being in debt forced them to sell their souls?  Their good people, forced to a life of crime.  Not their fault (it never is!) :)

Nope, I don't feel sorry for them.  They made one bad decision after another.  Now they need to learn from the consequences.

Today's Media Tidbit
In honor of all those fools that want to hang on by their fingernails to upside down real estate.... I present, Hick-Hop legend COWBOY TROY joined by Big n Rich for "I Play Chicken With the Train"
I guess I'm thinking of this because Big n Rich have the new Jewel CD "in the can" and ready to drop (read more here)

01-Big & Rich-I Play Chicken With the Train

Big & Rich/Cowboy Troy

OK, I'm not some huge mega-britney fan... but I like fun pop music.  I was feeling hopeful for her when I heard the new track: GIMME MORE.  I thought: "OK, it's not great, but it doesn't suck!"  Her fellow Mouseketeer alum are doing much, much better as grown ups... (Justine and Xtina RAWK!)

but, maybe Britney is lost FOREVER.  What is it?  too many drugs?  too many sycophants?  Somebody stop her!

I mean, OUCH... when I watch this... MY EYES HURT!

On the British Music News website NME, Beth Ditto of THE GOSSIP, is quoted as saying "George Bush is absolutely a fascist piece of shit!"

I already liked her... but now I like her MORE!

The quote is from an upcoming interview in the Advocate.

Is she correct?

The dictionary defines a Fascist as "a person who believes in or sympathizes with fascism." 

Fascism is defined by the following 14 characteristics:

1. Powerful and Continuing Nationalism - Fascist regimes tend to make constant use of patriotic mottos, slogans, symbols, songs, and other paraphernalia. Flags are seen everywhere, as are flag symbols on clothing and in public displays.

 

2. Disdain for the Recognition of Human Rights - Because of fear of enemies and the need for security, the people in fascist regimes are persuaded that human rights can be ignored in certain cases because of "need." The people tend to look the other way or even approve of torture, summary executions, assassinations, long incarcerations of prisoners, etc.

 

3. Identification of Enemies/Scapegoats as a Unifying Cause - The people are rallied into a unifying patriotic frenzy over the need to eliminate a perceived common threat or foe: racial , ethnic or religious minorities; liberals; communists; socialists, terrorists, etc.

 

4. Supremacy of the Military - Even when there are widespread

domestic problems, the military is given a disproportionate amount of government funding, and the domestic agenda is neglected. Soldiers and military service are glamorized.

 

5. Rampant Sexism - The governments of fascist nations tend to be almost exclusively male-dominated. Under fascist regimes, traditional gender roles are made more rigid. Divorce, abortion and homosexuality are suppressed and the state is represented as the ultimate guardian of the family institution.

 

6. Controlled Mass Media - Sometimes to media is directly controlled by the government, but in other cases, the media is indirectly controlled by government regulation, or sympathetic media spokespeople and executives. Censorship, especially in war time, is very common.

 

7. Obsession with National Security - Fear is used as a motivational tool by the government over the masses.

 

8. Religion and Government are Intertwined - Governments in fascist nations tend to use the most common religion in the nation as a tool to manipulate public opinion. Religious rhetoric and terminology is common from government leaders, even when the major tenets of the religion are diametrically opposed to the government's policies or actions.

 

9. Corporate Power is Protected - The industrial and business aristocracy of a fascist nation often are the ones who put the government leaders into power, creating a mutually beneficial business/government relationship and power elite.

 

10. Labor Power is Suppressed - Because the organizing power of labor is the only real threat to a fascist government, labor unions are either eliminated entirely, or are severely suppressed.

 

11. Disdain for Intellectuals and the Arts - Fascist nations tend to promote and tolerate open hostility to higher education, and academia. It is not uncommon for professors and other academics to be censored or even arrested. Free expression in the arts and letters is openly attacked.

 

12. Obsession with Crime and Punishment - Under fascist regimes, the police are given almost limitless power to enforce laws. The people are often willing to overlook police abuses and even forego civil liberties in the name of patriotism. There is often a national police force with virtually unlimited power in fascist nations.

 

13. Rampant Cronyism and Corruption - Fascist regimes almost always are governed by groups of friends and associates who appoint each other to government positions and use governmental power and authority to protect their friends from accountability. It is not uncommon in fascist regimes for national resources and even treasures to be appropriated or even outright stolen by government leaders.

 

14. Fraudulent Elections - Sometimes elections in fascist nations are a complete sham. Other times elections are manipulated by smear campaigns against or even assassination of opposition candidates, use of legislation to control voting numbers or political district boundaries, and manipulation of the media. Fascist nations also typically use their judiciaries to manipulate or control elections.

Source: http://www.libertyforum.org

So, does Dubya's administration meet the standard?  Read more here !

For a Media Tidbit,  I award Ms. Ditto with the "Champion Stater of the Obvious" award.

Did I mention I love her music?  Here's a booty remix of her most recognized song, Standing in the Way of Control:

Standing__tronik_youth_mix_

Gossip

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