Cruddy rain for the next 3-4 days here. Cool and limited sun as well. Wonderful. Really should not complain, compared to the terrible flooding going on in the Midwest I have it perfect. I thought when major flooding occurred there was utter lawlessness and widespread looting? As far as I can gather from reports, there has been none of either. Makes you wonder.
Absolute Must Read
I will often excerpt or link to the best articles I come across if I fee; that the readers here would benefit from seeing the piece. Today there is an absolute MUST READ from the excellent site OC register. The post has a great slide show that investigates a bunch of SoCal foreclosure listings, as well as some interviews. Great stuff. Here is is, slide show is a bottom:
While some at the FED would have you believe that you cannot spot a bubble until it bursts, common sense tells us that is retarded. Whenever fundamental value is ignored, or easy money is raging into any asset class, there is a good bet a bubble is afoot. Looking at the last sale price for many of the homes on the slide show it is clear that some serious delusion was going on.
Richard Fuld Takes Responsibility
Today LEH released their loss report, and it was what they had already said last week. The CEO Mr. Fuld, who last month saw the bottom, took responsibility for the mess LEH is in. I certainly respect his courage! Though his golden parachute probably adds to his bravado ability.
What this means is that when housing gets worse and LEH is still hemorrhaging cash this summer, you will see Mr. Fuld take a walk into the sunset. The big "change at the top" will be the new "bottom is in" call, but that bottom is going to be a myth.
CEO Pay Breaks Records as Their Incompetence Shatters Assumptions
I cannot even excerpt this sick piece, so just read it already:
Basically, as the financial companies have lost billions of dollars and have had to be recapitalized by the FED (through our tax dollars) the CEO's pay has gone up without a hitch. GM, yes that same company laying off workers and losing money like mad, that CEO pay went up too.
At a time when inflationary pressures are hitting the wallet through the gas, food, and medical expense routes, this kind of thing really rankles me. The FED is bending over for Wall Street and is being made a fool of. I would not care but you and I are going to be on the hook for this money. I say we go collect some back from these fellows, yes? Perhaps they could contribute to the recapitalization of the taxpayer instead?
Have a good night.