Bloomberg Surveillience (5/4/09)
By Barry Ritholtz - May 7th, 2009, 3:00PM
Here are the clips from Monday’s radio gig:
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
May 7th, 2009 at 3:28 pm
Bad policy or power grab?
http://www.realclearpolitics.com/articles/2009/05/06/chrysler_restructuring_plan_a_power_grab_96346.html
“So, how is an Italian car manufacturer operating in Michigan any more “American” than a Japanese manufacturer operating in Kentucky?”
“And why should the federal government give a market preference – through taxpayer financing and warrantee guarantees – to Italian cars produced by American workers in Michigan over Japanese cars produced by American workers in Kentucky?”
May 7th, 2009 at 3:30 pm
“A rising tide lifts all boats”
leads to
Warren Buffet’s “When the tide goes out everyone gets to see who’s naked”
=
Section 8 housing receiving stainless steel appliance upgrades, jacuzzis, marble baths, and granite countertops. Didn’t Buffet once comment the luckiest people on Earth are those born in the US of A?
May 7th, 2009 at 4:25 pm
This kind of puts the bailout in perspective:
http://news.bbc.co.uk/2/hi/science/nature/8036559.stm
May 7th, 2009 at 4:27 pm
Chief Tomahawk:
“Section 8 housing receiving stainless steel appliance upgrades, jacuzzis, marble baths, and granite countertops.”
Where’s that happening? Sounds like an urban myth.
May 7th, 2009 at 4:28 pm
@Tom:
You must live in a bizzaro world where a company with a shareholder base that is 55% American and 20% Italians is considered “Italian.”
May 7th, 2009 at 4:33 pm
[...] the original post: Bloomberg Surveillience (5/4/09) Leave a comment | [...]
May 7th, 2009 at 4:37 pm
Marcus, I posted several for rent ads the last time BR had an open thread at night. It’s about five posts down, with phone #s included should you wish to call one/them.
May 7th, 2009 at 4:48 pm
I really don’t understand why they just didn’t let Chrysler sell Jeep and die. If the goal is to bailout the pension fund, then just bail out the pension fund, not the whole company. If it’s an issue of fairness, there’s a good reason Chrysler should be the one to die, not the other two. They have done by far the least to fix their product lineup of the Big 3, and don’t really build anything you can’t get a better version of from GM. When your idea of innovation is outsourcing everything related to hybrids and electric cars and (inaccurately) naming your newest engine design after something from 50-years ago, the “Hemi,” then it really is time for you to go. Cutting that capacity and competition would have offered an instant boost to Ford and GM sales, making the cost of bailing out GM (and perhaps Ford, eventually) less. Saving Chrysler jobs at the cost of more job cuts at GM and Ford doesn’t really make much sense. Sure, some potential Chrysler buyers might buy a Hyundai instead (neither American owned nor built), but it really wouldn’t be that significant. As already stated, most Toyota’s and Honda’s are already built here, anyways, so that trade off is much less significant.
May 7th, 2009 at 4:50 pm
@Brendan:
We all agree that we want to end our addiction to foreign energy. Why would we want to end one addiction (foreign energy) and create another (foreign vehicles)?
May 7th, 2009 at 5:01 pm
Have not listened yet but know it will rock. Prewitt and Keene demonstrate day after day how business media should be done — smart questions with good follow-ups from people who know what they’re talking about. I never, ever fail to learn something from Surveillance (the weekend ‘best of’ shows are awesome). And Tom Keene was one of the few journalists to give Roubini a thoughtful hearing when the herd called him a whack job.
If you’ve never listened, give it a try. You’ll see why so many of us think CNBC is a cartoon network compared to Bloomberg (esp. the radio side).
May 7th, 2009 at 5:06 pm
Chief Tomahawk:
Checked, but couldn’t find your post. I’ll take your word for it. Maybe they’re 8A set-asides (individual units in an otherwise luxury/upscale set aside for 8As as a pre-condition for development by the local zoning board/commission. Usually 3-5% of the development). I’ve worked on lots of housing developments in the planning/permit stages, and those are the only kinds that would have anywhere near the amenities you describe, and even then, the fixtures in those units were usually builder grade.
May 7th, 2009 at 5:15 pm
@MA:
The City of Boston has had a homebuyer program, probably with HUD block grant backing, for people who buy two- and three-level buildings and agree to (a) live in the property and (b) make the other floor(s) available for Section 8. So these programs can be targeted at the little guys also.
May 7th, 2009 at 5:54 pm
Marcus, I’m not trying to pick a fight. I went back and found it though…
=====================================================================
Chief Tomahawk Says:
May 5th, 2009 at 9:10 pm
HA! I spent an hour diggin’ in at the bar of McCormick & Scmick’s (Happy Hour) just in prep for this. Here goes…
A selection of properties for rent from today’s Chicago Sun-Times:
“2717 W. Wilcox Fab. rehab cozy 2/3BR, jacuzzi, C/A, appls, Sec 8 Wel $1,100 + 312-925-7802
United Center New 3 bedroom, next to Starbucks, $1000-$1,100. Call 312-446-8991
Rehabbed 3BR, 1.5 BA, W/Frpl, Hdwd Flr, Marble Bath, Loft Style Lighting, C-Fan, Heat Inc. $1000/mo. Call 312-458-9690
9139 S. Buffalo – 3BR. Fully renov, granite countertops, Sect 8 OK. $999 773-744-1777
*74th & Princeton* Fabulous 3BR. 1Ba. Condo. All The Finest Upgrades. Gar, $1,200 Sect 8 Welc. 312-714-7934″
I have no idea how many of these are real estate busts and/or were funded by Citibank. But decided to check and see how many landlords have upgraded to granite countertops, stainless steel appliances and jacuzzis in order to compete for Section 8 applicants.
=====================================================================
The “United Center” listing really sticks out to me. That’s where the Bulls and Blackhawks play. 5+ years ago developers were making over the east side of that area. Having a Starbucks nearby would be indicative, I think (though for how much longer?) It doesn’t say Section 8 for that listing, but if you compare prices with the other listings which do say “Section 8 welcome”, I think it’s safe to say they’d probably take a Section 8 applicant just to make the property a revenue producing space. And yes, I did the whole think with a certain cynicism (or however it’s spelled.)
May 7th, 2009 at 5:56 pm
meant to say thing instead of think…. my bad.
May 7th, 2009 at 7:06 pm
bad policy to throw good money after bad…. oh man! Watch BAC and WFC games unfold now they have announced share offerings…. yup, good money after bad.
May 7th, 2009 at 7:15 pm
http://www.kansascity.com/business/v-print/story/1159532.html
A second wave of home foreclosures is ahead, Fed economist says
..Someone didn’t get the office memo..
May 7th, 2009 at 7:25 pm
@Franklin 411: Perhaps I muddled my point. What I was trying to say is that I think a majority Chrysler buyers would go to GM and Ford, and not Hyundai. I don’t think there needs to be a huge concern over those who buy Honda products designed in California and built in the Carolinas, even if the parent company is in Japan. Most of the macroeconomic benefit is staying stateside. If we want “true” American cars to prevail, then we need to focus on start ups who can do that, not dinosaurs like Chrysler. I’m sure Tesla, Fisker, Tango, Phoenix Motorcars, etc. could all find better ways to spend that money to build American cars in old Chrysler factories with Chrysler ex-employees.
May 8th, 2009 at 2:17 am
@Chief T
Except for those boats that are already sunk, e.g. Significant holes below the waterline.
May 8th, 2009 at 5:26 am
Things will only get worse
http://247wallst.com/2009/05/07/consumer-credit-dries-up-at-record-pace/#more-33644