Jimi Posted July 2, 2005 Report Share Posted July 2, 2005 Still laughing. Link to comment Share on other sites More sharing options...
Guest Posted July 2, 2005 Report Share Posted July 2, 2005 SFGate article on recourse/non-recourse loans in California and what happens during sales or foreclosures. I thought I would post this since it has been discussed several times... here are some good parts: "No tax deduction: If you sell your primary residence at a loss -- meaning for less than you paid plus the cost of improvements -- you get no tax deduction..." Foreclosure taxes: Suppose your house becomes worth less than you owe, you can't keep up the mortgage payments and the lender forecloses on the property. You may be liable for two types of taxes: capital gains and cancellation of debt income. The same holds true if you abandon the property or voluntarily turn it over to the lender. These taxes depend on whether you have a recourse or non-recourse loan. Non-recourse generally means that if the lender takes over your house, your debt is satisfied and the lender can't go after your other assets, even if the proceeds from the foreclosure sale are less than the debt. In California, if you take out a loan to buy a house or a building with up to four units and you live in the house or one of the units, the loan is non-recourse. A recourse loan generally means the borrower is personally liable for repayment. If the lender takes over the house that is worth less than the debt, the lender can go after the borrower's other assets to pay the difference. A home equity loan or line of credit is a recourse loan. So are consumer loans secured by your house. In most instances, if you refinance your house, the new loan is a recourse loan, says Michael Pfeifer, a real estate attorney with Pfeifer & Reynolds. However, Roger Bernhardt, a professor at Golden Gate University School of Law, says there is no California case law that definitively establishes this as fact. If you borrow money to buy investment property, it is generally a recourse loan unless it was financed by the seller, in which case it is typically a non-recourse loan. -- Non-recourse loans. If you default on a non-recourse loan, you could be subject to tax on capital gains, but you won't be taxed on the cancellation of debt. The rest of the article is about how taxes will work on a sale of a home that a person is underwater on the payments on. California may enter a new and interesting real estate problem with the recourse/non-recourse thing. What will people do when they have to sell their home at a loss, and pay back the bank on that money they took out of the house? Declare bankruptcy? Oops, can't do that anymore! Link to comment Share on other sites More sharing options...
Jimi Posted July 2, 2005 Report Share Posted July 2, 2005 Good stuff, Dr. Porter. I know some people in Berkeley who are extracting equity from their primary residence to purchase income properties up on the Russian River. They need to keep the places full 5months/year to make the math work right.... ... but I doubt they believe that having secured the income proprty with equity on their home that they have established a recourse loan. I doubt they're alone.... Link to comment Share on other sites More sharing options...
cwd Posted July 2, 2005 Report Share Posted July 2, 2005 Program Trading Accounts For 76.3% of NYSE Volume that's not true 99% of the stock market is small retail Investors making prudent long-term Investments based on solid business fundamentals and compelling equity values, guided by the in-depth research and analysis of their hard-working brokers and updated by the straight-shooting reporting of unbiased professional financial journalists on C.N.B.C. enjoying the opportunity to participate in our free, fair, open, honest markets by grabbing their own piece of Corporate America, to ensure their own American Dream, a comfortable retirement in a strong economy with low inflation, surrounded by friendly neighbors in a Home that appreciates 20% per year, with cash on tap from Ditech thanks to all those fine Corporate Insiders working long hours looking out for the common stockholders, our wise Government Leaders, a fiscally responsible Congress, and a rock-solid monetary policy backed by, ahh.....er....well, never mind butt you can't lose buying and holding You Nattering Nabobs of Negativism, you bad bad bad news bears, you better get with the program! it's all good, all the time you see, higher crude oil prices are good for energy stocks, and lower crude oil prices are good for all stocks higher interest rates serve only to keep inflation under control at 0.000000001% with a core rate of only 0.0000000000000000000000000001% get on board the elevator and hold on tight stocks are never gonna be cheaper they're not makin' any more ya know <{POST_SNAPBACK}> Shorty, if you loose interest in the markets, you can start writing for SNL. Great post. Link to comment Share on other sites More sharing options...
beardrech Posted July 2, 2005 Report Share Posted July 2, 2005 I dont know whether it was Walter williams or William Sowell,two friedmanite monetarists,who,answered in response to the question:If we are so indebted then how are we going to pay our creditors back? The answer my friends is blowing in the wind: ==Simple; We repudiate it!!!!!!!!! So much for the moral integrity of the college Professoriat REPUDIATION, REPUDIATION:ROLL THE WORDaround your mouth--get used to it;make it go trippingly on the tongue for you're going to hear it more and more I'm afraid--- beardrech Hey what about the Marshall plan? If we were paid back at current rates of interest iver time I'm sure it would be a wash.RIGHT?or am I right? Hey what about the Manhatten Island? What about Pearl Harbor? What about the Massacre aat wounded knee What About the Treaty of Vienna What about the Massacre at Wounded Knee What about the slaughtered Saints,the Huegonuts What about Sacco and Vanzetti Loeb and Leoppold Napolean at Austerlitz The Spanish Armada Laurel & Hardy The Ritz brother Moe Shemp & Curly What about them???? Yeh---Buddy can you spare a dime??? Link to comment Share on other sites More sharing options...
GregFokker Posted July 2, 2005 Report Share Posted July 2, 2005 Still laughing. <{POST_SNAPBACK}> Me too. Can't We All Just Get a Long? by Theodore Mantle, Friday July 01 2005 Buy a stock, any stock. Only sell at a higher price. I'll do the same. We're all gonna be rich. Short selling is evil. In fact all selling is evil, unless you sell at a higher price than you bought. Can't we all just agree to never sell any stock below the price we paid? No? Then let's pass a law to that effect, allowing sales of stock only on up-ticks. Then we'll have a Guaranteed Money-Making Stock Market and we can all be rich. Just like the Real Estate Market. Once banks realize that stocks can only go up, just like real estate, they'll be willing to finance our stock purchases no-money-down with interest-only, no-doc loans. As the stocks go up we can refi and cash out our equity tax-free. Think of all the wealth this will create, especially when Congress makes the interest on stock loans tax-deductible. The Uptick-Only Rule. It's a Win-Win idea. And it's already been proven to work by traders in SHLD, GOOG and CME. They all got along just fine (except for a few small traders who didn't get the memo, but they were proven insignificant). Surely the rest of us can wink at each other and make some big bucks too? Grab your partner, here we go, pick a stock and do-se-do. You buy high and I buy higher, back to you now you're the buyer. My turn now we're getting richer, wink and buy you get the picture? Uh-oh it's the SEC, you paid them off or was it me? Your turn my turn, can't keep track. Can I get my money back? Oh that's OK we both can pay, we make money every day. Don't mind sharing with our friends, so our party never ends. http://wallstreetexaminer.com/?itemid=1144 Link to comment Share on other sites More sharing options...
fxfox Posted July 2, 2005 Report Share Posted July 2, 2005 GOOG neg divs on RSI and MACD 12,26,9 longer MACD 21,72,10 made bearish crossover on friday if you wanna short wait till the uptrendline gets broken on a closing basis Chart ?ffnen Link to comment Share on other sites More sharing options...
longOnUranus Posted July 2, 2005 Report Share Posted July 2, 2005 GOOG neg divs on RSI and MACD 12,26,9 longer MACD 21,72,10 made bearish crossover on friday if you wanna short wait till the uptrendline gets broken on a closing basis Chart ?ffnen <{POST_SNAPBACK}> I've been looking at similar charts. And consider this, from a screen grab of the CBOE site (below): even though GOOG is "only" #2 ranking in equity option traded in May, if you look at the dollar leverage on these options (ADV times underlying price, eg, GOOG is 9x GE), GOOG option activity controls about as much market cap as do the rest of the top 5, combined. In May, P:C was about 0.6. As of 7/1/05 close, open interest P:C (front two months, near the money) was about 0.45. Average daily option leverage is running abut 20% of total shrs traded. And a huge number of these contracts are odd-lots. These P:C ratios have been "historically" associated with pullbacks on GOOG. It is obvious to me that most John Qs (and myself, thank you) are playing GOOG from the options side - many of them naked, no doubt. The options, that is. I look at options data more frequently than the GOOG chart pattern. Combined with the threatened ribbon rollover, it suggests further price decline. I have an JUL opex target of 255, but I'll close my put postion when P:C takes a big intraday jump. Link to comment Share on other sites More sharing options...
Captain's Log Posted July 2, 2005 Report Share Posted July 2, 2005 La La La, can't hear you... This picture came from the minutes of the last Fed meeting. Inflation well contained? Consider this since the year 2000 - Housing prices have doubled or tripled. - The cost of gas has doubled (In january 2002 I was paying $1.09 in northern ca). - health insurance premiums have nearly doubled. - grocery prices up 20-30% - car insurance up 30% - wages FLAT (unless you work for the government). The prices of everything you need are increasing. The "well contained" part of inflation are the toys you want. The Alice in Wonderland economy brought to you by Sir Alan Greenspan. <{POST_SNAPBACK}> Link to comment Share on other sites More sharing options...
DrStool Posted July 2, 2005 Report Share Posted July 2, 2005 Chart O' The Day Don't you always love those signs that say "Fish O' the day". Like, how much trouble is it to write an "f". Link to comment Share on other sites More sharing options...
Drano Posted July 2, 2005 Report Share Posted July 2, 2005 Sure and begorra, top oF the mornin' to ye...... Link to comment Share on other sites More sharing options...
Yellowstone Posted July 2, 2005 Report Share Posted July 2, 2005 Q4 has lots of potential for crude awakenings. no energy growth = no economic growth = no debt repayment = KAOS Have the OPEC countries been picking up the slack? Hardly. OPEC ministers are saying publicly that any member countries such as Iran, Venezuela, and Indonesia are failing to meet production targets. (Indonesia is now a net importer of oil? so much for the E in OPEC). (executives of oilfield services companies like Schlumberger and Baker Hughes for example) are now saying publicly that the average decline rate of the world?s oil wells is 8%! ? a shockingly high hurdle to overcome with new production. So why are things looking so bleak for oil supply? For one thing, it is becoming increasingly apparent that North Sea oil production is now falling off a cliff. In a report released this week, it was revealed that Britain had the steepest decline in oil production of any oil-producing nation last year, falling by 10% or 230,000 barrels per day. Norway (the other major North Sea oil producer) in the first four months of the year saw its oil production similarly fall 10% compared to last year. Even more disturbingly, the month of May alone saw a drop of 40,000 barrels per day versus April. If such a month-over-month rate of decline continues then Norway will lose at least 400,000 barrels per day of production this year alone. The heyday of North Sea oil production is clearly a thing of the past. It is worth noting that at its peak in 1999, the North Sea accounted for 9% of world oil production. Since that time it has lost one million barrels per day of oil production, with the most precipitous declines occurring in the last 12 months. http://www.sprott.com/pdf/marketsataglance/06-20-2005.pdf Link to comment Share on other sites More sharing options...
capitall Posted July 2, 2005 Report Share Posted July 2, 2005 Regarding "the resilient consumer", hotels seem to be becoming more like airlines, where, if you ask the person in the seat or room next to you "What did you pay for it?' your answer is always a wildly higher or lower price than what you paid, depending on where you made the purchase. I, and apparently tons of other folks, seem to be getting more and more of these "prizes" where you get a "free" vacation at the Sheraton in Kaui or wherever, with a $649 processing fee. I got one in the mail today. My local Toyota dealer is also giving away vacations with a $149 processing fee. A friend of mine got one of these offers for filling out a home equity loan application. Apparently hotels are having more trouble than ever before filling their rooms, so they are offering stays of 3-5 nights at a 50-80% discount and calling it a "free vacation." So some of these folks you see living high on the hog are doing it at highly discounted prices, not to mention that they took out a 3rd mortgage on their house to even be able to afford the discounted price. Not that these offers never occurred before, but they seem to be all over the place, like stepping in dog shit everywhere you turn. You don't even have to listen to a time share condo sales pitch any more. You just borrow the money, pay your 50-80% discounted rate, and go. So the "resilient consumer" is not what he or she appears to be. BTW, I often think of vacationing in some country where you can go for days on end without having anything advertised to you, and without being given any "free" prizes or awards that are not actually free. I know that this message board has folks from all over the globe, so does anyone know of a place like this? In the U.S. this is not possible unless you put on earplugs, stay in your house with the TV and radio off at all times, don't answer your phone, don't ever pick up your mail, don't read the newspapers or most anything else but old books, and don't speak to family, friends, or anyone else. Link to comment Share on other sites More sharing options...
capitall Posted July 2, 2005 Report Share Posted July 2, 2005 ... I often think of vacationing in some country where you can go for days on end without having anything advertised to you, and without being given any "free" prizes or awards that are not actually free. I know that this message board has folks from all over the globe, so does anyone know of a place like this? In the U.S. this is not possible unless you put on earplugs, stay in your house with the TV and radio off at all times, don't answer your phone, don't ever pick up your mail, don't read the newspapers or most anything else but old books, and don't speak to family, friends, or anyone else. <{POST_SNAPBACK}> BTW, I want to be clear that I am fine with having the WSE advertised here, as I value it highly and know it is the reason we have this board. And I do subscribe to it myself. Link to comment Share on other sites More sharing options...
DrStool Posted July 2, 2005 Report Share Posted July 2, 2005 Canada is still pretty reasonable in that regard. By the way, Cogeco hooked up my high speed internet connection today. It took a week. Link to comment Share on other sites More sharing options...
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