Exurban Nation

Daily California Watch 3

2009-07-11T08:01:00.000-07:00

Sunset in the Golden State. Impasse day 9.

• NYTimes gets it wrong again.

• Muni fallout.

• Balanced? NFW.

• Ideology trumps reality every time.

And for a bit of humor, this from the comments. Hat tip JP.

• R.I.P. Califorina 1869-2009

Bowl Season

2009-07-10T17:46:00.000-07:00

It's time again for fabulous Fridays at the Bowl. Tonight we get fireworks too!

Los Angeles Philharmonic
Bill Conti, conductor
Monica Mancini, vocalist
Dave Grusin, piano
Brian Stokes Mitchell, vocalist

From "Moon River" to "Days of Wine and Roses," Charade to Victor/Victoria, and The Pink Panther to Peter Gunn... join the LA Phil and a stellar lineup of special guests on a journey celebrating the unforgettable legacy of music for film, television and orchestra by the four-time Oscar-and 20-time Grammy-winner, legendary Hollywood Bowl Hall of Famer Henry Mancini!

Yes, those are my seats.

California Musical Interlude

2009-07-10T13:00:00.000-07:00

Late celebration of the Summer Solstice.

And more on the cost of illegal immigration:

A new study from the Federation for American Immigration Reform (FAIR) examines the costs of education, health care and incarceration of illegal aliens, and concludes that the costs to Californians is $10.5 billion per year.

Source: about.com
Kicker? Publication date 1994. Gee, sucking away $10-$20b per year every year for a generation was bound to catch up with the State. Add to that the similar rate of wealth extraction over the same period to Federal balance of payments and it should be no surprise the State is insolvent.

Daily California Watch 2

2009-07-10T10:14:00.000-07:00

• Illegal Immigrants strangely transform from asset to liability. Hoocoodanode?

• California Scheming. When Barrons weighs in it's serious.

• Pay Cut for Doctors denied. WSJ.

• Finance Director talks turkey. Reuters.

• Education Stiffed. marketwatch. Hat tip HomeGnome at CR.

Hah! try to escape? We will go back to the old borders!

Three Headed Dawg

2009-07-10T07:46:00.000-07:00

WSJ report via CNBC summary:
Cerberus Capital Management is still declining to let investors out of its main hedge fund, according to the Wall Street Journal.

In a letter to clients reviewed by the Journal, Cerberus chairman Stephen Feinberg said the firm is revamping investor terms on its main hedge fund.

The letter cites weak market conditions that are still preventing Cerberus from giving clients their money back. Cerberus also says significant macro risks may affect future results. The letter also notes that the firm has had difficulty selling existing positions.

Cerberus says it has created a special vehicle to let some investors cash out over time.

In December of last year, Cerberus suspended withdrawal requests, joining a group of hedge funds that had halted redemptions. Feinberg also said in the letter that Cerberus plans on avoiding headline-grabbing deals like its ill-fated investments in automaker Chrysler and lender GMAC.
----
"...the firm is revamping investor terms..." Got that? Changing the terms unilaterally. S'okay we are all now so used to this it barely merits mentioning. The real problem is these people are in the markets with two sets of books. THey admit their assets aren't worth what they'd fetch in the markets but won't adjust their books accordingly. Obviously this isn't just Cerberus which means pretty much everyone in the markets is playing with fantasy trades.

Goldspring Will Save Him

2009-07-09T21:24:00.000-07:00

Remember Casey and 6¢ Goldspring? Broke down through a penny today and looks to be on the boat across the Styx.

Daily California Watch

2009-07-09T14:58:00.000-07:00

• SEC calls California IOUs securities.

• Arnold cuts more pay

• Pot will save us

• Political theater in Sacramento

• California cedes the lead
----
From that last:

Plenty of American states have budget crises; but California’s illustrate two more structural worries about the state. Back in its golden age in the 1950s and 1960s, it offered middle-class people, not just techy high-fliers, a shot at the American dream—complete with superb schools and universities, and an enviable physical infrastructure. These days California’s unemployment rate is running at 11.5%, two points ahead of the national average. In such Californian cities as Fresno, Merced and El Centro, jobless rates are higher than in Detroit. Its roads and schools are crumbling. Every year, over 100,000 more Americans leave the state than enter it.

But not to worry, we still have beach babe eyecandy:

Can't Happen Here

2009-07-09T10:26:00.000-07:00

Notice how there is a condemnation of St. Vincent dePaul and Salvation Army and other various socialist slants in the text. Well at least in 1933 those concepts were considered socialist. I think they changed the name to "Hope Now."

Timmay Makes a Poopy

2009-07-08T16:04:00.000-07:00

US lurching towards 'debt explosion' with long-term interest rates on course to double
The US economy is lurching towards crisis with long-term interest rates on course to double, crippling the country’s ability to pay its debts and potentially plunging it into another recession, according to a study by the US’s own central bank.
UK Telegraph article here.

In a 2003 paper, Thomas Laubach, the US Federal Reserve’s senior economist, calculated the impact on long-term interest rates of rising fiscal deficits and soaring national debt. Applying his assumptions to the recent spike in the US fiscal deficit and national debt, long-term interests rates will double from their current 3.5%.

----
Everyone with an ARM is in trouble.

The Blood of Tyrants

2009-07-04T12:03:00.000-07:00

Remind me again. What were those grievances with a remote and unresponsive government back in the 1700s?

Synopsis

2009-07-03T11:13:00.000-07:00

Corny, contrived and ultimately capturing the essence of the day. Enjoy.

Opportunity to Social Climb

2009-07-02T12:54:00.000-07:00

Okay, enough slumming. Here's the other end of the market.

Craigslist is where you'd sell your $1.7m home right? What could go wrong? Read the description:

We are in Lake Sherwood and have this amazing home for sale. We are building in Malibu, and will be moving soon. We know its hard to find financing these days so we are offering a A.I T D. It is a wrap around financing, and will allow you to take title of our home, and you can refinance with in 5 years. We will leave the 1st, and 2nd Trust Deed in our name, and you make all the payments. You are on title, so you own the property!!

To get into a home like this you need full employment documentation, Bank verif's for down payment, and at the Minimum, 30% down.

Here is what we are asking!!!

Example:
We owe $1,400,000
Home appraised in december 2007 $1,790,000 (but we will get an updated appraisal. Comps are at 1,600,000 right now)

You Assume the 1st TD at 1,200,000 (payment $5,900)
You Assume the 2nd TD at $200,000 (payment $700)
You pay the Balance to us $175,000. (we would accept a $100,000 payment now, and $50,000 in 4 months)

That's less then 10% down, and no qualifying!!!!!

For more details and to set up an appt to see it, just call.

Map here.

Victorville

2009-07-02T09:44:00.000-07:00

Via Redfin:
15643 La Verida Dr Victorville, CA 92395 Price: $48,000
BEDS: 3 BATHS: 2 SQ. FT.: 1,399 /SQ. FT.: $34
LOT SIZE: 9,240 Sq. Ft.
MLS#: C09070393

Single story ranch style home near the 15 frwy for commuters. Features double door entry, living room/dining combo with step down and fireplace, den, country kitchen, laundry in the garage, roof evap cooler, covered patio, composition roof and wood fencing.

And get this: Last Sale: $282,000!

Ouch

2009-06-30T08:12:00.001-07:00

Hat tip: wagga.

Warrants of the Federal Kind

2009-06-26T11:17:00.000-07:00

WASHINGTON (MarketWatch) -- The Treasury Department set out a roadmap on Friday on how it intends to sell its stakes in banks held in warrants. Under the government's $700 billion bank bailout, when a bank repays the government it is allowed to repurchase the warrants at a fair market price. The plan announced Friday sets out procedures for reaching an agreement on the price involving independent appraisers. If the banks choose not to repurchase the warrants, Treasury said that it will sell the warrants through an auction process over the next few months.

----
four months of a rising stock market are thus explained. As soon as they dump this crap we can expect the mother of all selloffs.

BTW: "Warrants of the Federal Kind" because "Warrants of the California Kind" are coming soon.

Happy Birthday

2009-06-25T12:23:00.000-07:00

The barcode turns 35:

Bar code met the laser scanner on Friday, June 26, at a Marsh supermarket in Troy, Ohio, according to Motorola. With the 35th anniversary, Motorola offered some bar code technology relections, since Symbol Technologies, now a part of Motorola Enterprise Mobility Solutions, was founded, in part, by Dr. Jerome Swartz, the inventor of the laser scanning device for use with bar codes.

Motorola says:

- Without the bar code / laser scanner partnership, we'd have long lines at registers and tolls, (even more) lost baggage at the airport, and a lot of waiting for a package that may never arrive.

- Before the practical integration of bar codes and laser scanners, each company had its way of designating products, using a variety of letters, numbers or no codes at all.

- Typical error rate for human data entry is 1 error per 300 characters; with barcode scanners, the error rate can be as good as 1 error in 36 trillion characters.

- Use of the bar code ultimately resulted in significant economic and productivity gains for shoppers, retailers and manufacturers, with estimated cost savings of $17 billion in the grocery sector alone (according to GS1 US).

- UPC bar codes are scanned more than 10 billion times a day in applications spanning more than 25 industries.

The End of an Era

2009-06-25T09:54:00.001-07:00

You all know the red bathing suit poster. I like this one better.

Ground Control to Major Thom

2009-06-24T08:43:00.001-07:00

From LATimes:
Long Beach rocket launch venture files for bankruptcy

Sea Launch fires satellites into space from a floating platform at sea and a land facility in Kazakhstan. Its owners include Boeing as well as Russian, Norwegian and Ukrainian partners.
June 24, 2009

Sea Launch Co., a Long Beach-based rocket venture that is 40% owned by aerospace giant Boeing Co., has filed for Bankruptcy Court protection, citing recurring losses from operations.

The unusual company, which includes Russian, Norwegian and Ukrainian partners, said lower demand for lifting commercial satellites into space and a recent inability to secure financing to pay a $52-million arbitration ruling against it led to the Chapter 11 filing.

The venture, which launches rockets at sea from a floating platform, said in a statement that it "intends to maintain all normal business operations."

"Subject to court approval, Sea Launch will initially use its cash balance to meet operational requirements during the reorganization process," it said. It has about 130 employees based in Long Beach.

In the filing, Sea Launch listed assets of up to $500 million and liabilities of more than $1 billion.

-----
Boeing is not having a good month. California, a bad decade.

He's Tan He's Rested

2009-06-21T19:10:00.001-07:00

... and ready to blog.

Credit Default Swaps

2009-06-17T23:05:00.000-07:00

Corporate Bond Risk Rises in Europe, Credit-Default Swaps Show
By Michael Shanahan

June 17 (Bloomberg) -- The cost of protecting European corporate bonds from default rose, according to traders of credit-default swaps.

Contracts on the Markit iTraxx Crossover Index of 45 companies with mostly high-risk, high-yield credit ratings increased 8 basis points to 738, according to JPMorgan Chase & Co. prices at 7:19 a.m. in London. The index is a benchmark for the cost of protecting bonds against default and a rise indicates deterioration in the perception of credit quality; a decline signals the opposite.

The Markit iTraxx Europe index of 125 companies with investment-grade ratings rose 2 basis points to 118.5, JPMorgan show.

A basis point on a credit-default swap contract protecting 10 million euros ($13.9 million) of debt from default for five years is equivalent to 1,000 euros a year.

Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements.

----

The Basin at Franconia

2009-06-17T19:35:00.001-07:00

Kinda like the markets.

Dawgs of Montreal

2009-06-16T15:28:00.000-07:00

Montreal

2009-06-15T19:38:00.001-07:00

Northern Renter and his family took us to dinner in the Old Town section of Montreal.

Vacation

2009-06-13T16:10:00.001-07:00

A little vacation traveling music please.

Here Be There Dragons

2009-06-11T12:27:00.000-07:00

It can't go on forever, and it won't. What will shock America into action is the prospect of fiscal collapse, which will grow more vivid each year. In 2008 federal borrowing accounted for 41% of GDP, about the postwar average. By 2019 the burden will double to 82% by the CBO's reckoning, reaching $17.3 trillion, nearly triple last year's level. By that point $1 of every six the U.S. spends will go to interest, compared with one in 12 last year. The U.S. trajectory points to the area that medieval maps labeled "Here Lie Dragons."

Read the rest at CNN/Fortune.

Ahhh... there be that pesky dragon: