Friday, March 27, 2009

Weekend Thoughts

  • In January and February 2009, BMW sold only 33 of the 7 Series cars in ALL of North America, down from 2,212. And only 10 were sold in February, meaning that the pace got worse. Sales of all models were down 27.7% for the first two months versus the previous year.
  • There have been a cluster of very low debt recoveries so far in this Depression. Expect that trend to continue.
  • Zero Hedge is my new favorite blog. Here he prints an awesome Merrill/David Rosenberg report on the economy.Key points, among others: huge one-day rallies happen in bear markets andseasonal factors skewing the February data [The seasonal adjustment for new home sales, for example, was the strongest since 1982. For orders, it was the strongest since the data were first released in 1992. The retail sales number in February in non-seasonally adjusted terms was the worst, a 3% decline actually, on record, and yet again a strong seasonal adjustment factor made it look flat.]
  • If it's possible for private investors AND the FDIC/Treasury to make money buying the "legacy"/"troubled" assets, why do the banks need to get rid of them?
  • I was listening to the FDIC conference call. A small bank executive was complaining that if he sells loans to this program at a discount, it will reduce his capital (duh), and is there anything the FDIC can do? He flat out wanted to sell assets at a loss and not report a loss. How about no more deposit insurance for moron bankers?
  • The cult of stock (equities) worship in this country needs to go away before I buy back in. It is not gone yet. Relative performance vs bonds.
  • "If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform."
  • Oh,Bama has gone from community grifter to full scale shakedown commando.


CollegeStock said...

Yes BMW's sales of 7 Series vehicles have been pathetic. But the new model launches this month which is most likely causing people to wait.

PD said...

bmw stats are skewed...

Stephen M. Weeks said...

The bailout is unnecessary in many foreclosure situations. I have a patent on a home refinancing method that can dramatically lower monthly housing expenses for distressed borrowers and turn toxic loans into performing assets.

I am hoping you will take the minute and a half to watch the attached YouTube video and decide whether it is worthwhile to review the website to consider as a blog entry on your site.

The following YouTube link gives a brief overview and a detailed lay explanation can be found at (Including a copy of the patent). Depending on your e-mail settings you may have to cut and paste these into your browser.

In a nutshell Term Ownership is a third form of property ownership (between renting and full ownership) that was prevalent in the 1200's and 1300's but faded out of use because financial institutions and investors did not exist to get the system up and running in a meaningful way. Back then, individuals had to pay for the term up front with their own resources. Now with banks and investors needing safe, performing assets, this program could halt hundreds of thousands (if not millions) of foreclosures. But people (i.e. Congress and the office of the President, and Fannie Mae/Freddie Mac) need to learn it exists, or it will merely go the way of so many good ideas – in the scrapheap of history.

Please help spread the word if you can, millions of families are truly hurting right now, many needlessly, due to a lack of imagination and ingenuity.

Stephen Weeks