patrick.net

Isn't the desire to make other people miserable the very definition of conservatism? "I've got mine, fuck you!"

freak80 says

Isn't the desire to make other people miserable the very definition of conservatism? "I've got mine, fuck you!"

That's a red herring. By providing a general welfare allowance not tied to any crony-capitalist subsidies the middle class will be much better off and less people will be slipping into poverty, plus the poor on the allowance can actually pay for a place to rent. What part of "my full rent is almost the same as some of the subsidies for section 8 housing" is so hard to understand? It's our resident crony capitalist neo-feudal landlords who benefit from these program while pointing their fingers at the "badass" fiscal conservatives.

http://localsov.com/abuses/hud/housing.htm

Facebooksux says

I wouldn't worry though, the Bernank can print that shit in about 2
hours.

I'm sad to say, I agree.

http://www.bloomberg.com/news/2013-09-23/wal-mart-elevates-70-000-workers-amid-stocking-complaints.html

Wal-Mart Hires Workers for Holidays Amid Shelf Complaints

Wal-Mart usually hires temporary workers to get ready for the holiday shopping season. The company is adding more permanent people to improve customer service after failing to keep shelves stocked and handle other store-level operations, said David Galper, head of retail and apparel investment banking for KeyBanc Capital Markets Inc.

Cleveland Research Co. said in a Sept. 18 report that “one of the key issues” hindering Wal-Mart’s store operations “is the lack of labor in the stores to get the inventory out of the back rooms and onto the sales floor.”

I will believe it when I see the shelves stocked properly.

MOOT

They don't let bubbles pop anymore.

This is from the same company that just spent 'billions' on buying single family homes and is still not making a profit on that investment portfolio and is now trying to sell the portfolio to other investors as a bond......being they are having trouble renting all of its purchases.

By the way, Blackstone "borrowed" the money to purchase these homes...so I guess they do know a credit bubble when they see it....

Oh myyyyyyyyyyyyyyy.......

mell says

the US needs savers, healthy capital formation as a basis for a sound money system.

We'd have more "savings" if we didn't have $4T/yr being beat out of us in the housing and health care sectors, half of that if not more in economic rents.

http://research.stlouisfed.org/fred2/graph/?g=mPQ

per-capita housing + health expenditures

How can people "save" when rents and home prices rise 10% each year?

Note that this is not cost-push inflation, like what we see in bacon or ground beef.

This is simply due to the fact that housing sucks ALL the money out of every economy. It has to, since land is fixed in supply and demand will always exceed it, at least until a virus comes and wipes most of us out again.

I'm currently house-sitting on a 2-acre estate in the Santa Cruz mountains; it's on a hilltop and I can see maybe 4 other homes around here in the thousand-acre-plus view. This is an "apex" property, and everyone would like to have this, but so few can. And the housing market is structured this way right down to the shit shacks in E Oakland, at every rung of the ladder there is more demand than supply.

Savings is simply income less consumption. But so much of our consumption has embedded rents in it. The true fix is to attack these rents, so we'll have more "savings".

Even then socialist paradises are seeing this dynamic. Norway -- one of the richest (and least-crowded!) nations in the world on a per-capita basis -- idiotically started allowing interest-only loans 10 years ago, and that just pushed their price level up proportionally.

"Sound money" is another thought-terminating cliche, since the problem isn't the money, it is us. Richest man in the colonies went broke due to land speculation; the nation's BK laws were originally written to get him out of debtors prison, LOL.

Say hey! This was in the Wall Street Journal on March 30, 1999:

Holy cow/interesting/compelling ...!

And where is it up to date??? Right here ... see the first chart shown in this thread.
Recent Dow day is Friday, September 27, 2013 __ Level is 97.5

WOW! It is hideous that this is hidden! Is there any such "Homes, Inflation Adjusted"? Yes indeed, go here:
http://patrick.net/?p=1219038&c=999083#comment-999083

freak80 says

"America: it's a big club...and you ain't in it."

The Prussian Junkers had to explicitly structure their voting system to weight the 1%'s votes more -- the top 5% of income earners got 33% of the vote essentially.

http://en.wikipedia.org/wiki/Prussian_three-class_franchise

In the US, the 5% just has to bamboozle 45% of the electorate with bullshit ideology and social issues. They've got about that much now, especially if you count the people who don't vote.

mell says

It's our resident crony capitalist neo-feudal landlords who benefit from these program while pointing their fingers at the "badass" fiscal conservatives.

I agree with this. Even California's $10 minimum wage is a rent support in disguise, since the LLs will take it all in the end.

but this:

plus the poor on the allowance can actually pay for a place to rent.

isn't quite right. The only solution to the big problem is increasing the supply of quality housing everywhere. Like I said on DeLong's site today, we need to invest in housing as much as we invest in defense -- we need to outspend the rest of the world in housing investment!

Drive rents to zero.

Same thing in health care too, of course.

We have a serious problem with lack of savings in united states:

http://www.usatoday.com/story/money/personalfinance/2013/06/24/americans-emergency-savings/2445965/

According to the article, only 24% of americans have enough savings to cover 6 months of expenses. Having 6 months of savings in cash equivalents is a pillar of financial security and is even recommended by investment advisors despite the fact that they would probably prefer these funds to be "assets under management." While this problem is definitely in part caused by many people not making much money to begin with, it is definitely not the only reason as half of all americans that make over 75Gs don't have 6 months worth of savings and half of this demographic has no savings at all. This reflects the fact that not making savings a priority is a core fundamental problem of our society and the values of its citizens. With some people blowing their entire incomes on discretionary items how are they ever gonna save the traditional 20% down payment for housing? To accomplish this requires prioritizing and in a certain sense sacrifice.

dublin hillz says

With some people blowing their entire incomes on discretionary items how are they ever gonna save the traditional 20% down payment for housing?

20% DP is unnecessary and just serves to keep people renting longer if not forever.

Now, 20% savings cushion actually makes sense.

Bellingham Bill says

How can people "save" when rents and home prices rise 10% each year?

Since moving to the bay area I have either lived in a roommate situation (up to 6 total) or lived in cheaper, older single family houses in the outskirts of SF (since family), which are definitely less modern and lower quality than the section 8 housing inside the city, but cheaper (!) than a lot of the comparable section 8 in rent. I also plan to semi-retire in my 40s and I will do everything I can to keep my taxes down - I have no qualms admitting that. I also never owned an iPhone although people who make a a third of my salary are always on the latest iPhone. My cell phone carrier is Republic wireless for $20/month (Thanks, Patrick!). I would cut (cable) TV in a heartbeat and I will after I am done convincing the rest of the family. We are on a lame ass cheap-o ATT DSL plan because the wiring in these houses is so old, still good enough for almost anything, definitely for working from home. I have never spent more than 10K on a car (started with one for 1K that I drove for years until the roof came down). I hardly ever buy clothes (I get them as presents mostly), I program on cheap-ass Linux Laptops. never owned a MacBook that wasn't sponsored by work, etc. etc... This is how you "save" ;)

mell says

This is how you "save" ;)

the more we "save", the more the LLs will take it all.

http://research.stlouisfed.org/fred2/series/CUUR0000SEHA

and/or the more we will bid up housing instead.

http://research.stlouisfed.org/fred2/series/SPCS10RSA

I agree it's wasteful to throw $1000 a year away on cell phones (my plan is $80/yr beat that!), but of course that is another market failure since the economic rents there are incredibly high (and the gov should be leasing that spectrum and not selling it like we did -- crony capitalism!)

Bellingham Bill says

the more we "save", the more the LLs will take it all.

http://research.stlouisfed.org/fred2/series/CUUR0000SEHA

and/or the more we will bid up housing instead.

I'd agree with you if you think the consumer sentiment cannot be changed. It's a mentality thing and part of the reason why Japan has not seen massive inflation, the (aging) Japanese bought bonds instead of Mc Mansions. I'd say the price of housing and rents would come down significantly, but I think it will anyways once QE has to stop (rates out of control, confidence crisis and potential for much more massive inflation) and people are forced to live with their parents and grandparents again - but forced may be too harsh here forced, people used to sing praises to the big family, didn't they. Maybe re-learning working together across generations can't hurt ;)

Bellingham Bill says

In the US, the 5% just has to bamboozle 45% of the electorate with bullshit ideology and social issues.

Propaganda...it works!

mell says

y Japan has not seen massive inflation, the (aging) Japanese bought bonds instead of Mc Mansions

I peruse Japan real estate listing weekly, and prices there are still mind-boggingly high.

Japan's lack of inflation has a lot of factors; one, the yen going from 300 to 80 from 1970 to 2010 was a helluva tailwind for lower consumer prices from imports -- imports are deflationary.

Hell, the transfer of Japan from a labor-intensive factory place to whatever they do now (offshore their work to E Asia mostly) is also deflationary.

Japan's so-called savings are mostly evidence of a VERY low national tax rate, nothing more.

http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP

They got tax cuts in the 1990s and called it savings.

http://en.wikipedia.org/wiki/Ricardian_equivalence

Bellingham Bill says

I peruse Japan real estate listing weekly, and prices there are still mind-boggingly high.

Absolutely,Japan may experience continued deflationary forces, but that doesn't mean it's cheap there. Either way, Abenomics/QE only make things worse.

Bellingham Bill says

Japan's so-called savings are mostly evidence of a VERY low national tax rate, nothing more.

I thought taxes in the US are and have been way too low (at least so some of the resident patnet experts argue), so why doesn't the US have a great savings cushion like Japan has (had, it's dwindling in Japan as well)? This really is an issue of discipline/culture, other countries with higher tax rates have more and bigger savers as well. Things will get worse until there is a return to more savings/capital formation oriented culture and a sound money system.

mell says

Things will get worse until there is a return to more savings/capital formation
oriented culture and a sound money system

That makes me wonder about the welfare culture in japan. Can you just be entitled to other people's money for your bad choices-without facing any consequences?? Can you take money from middle class and rich and then keep blaming them for everything??

If our welfare was extremely stingy and people had to worry about food and shelter-offshoring would never happen. There would be riots in the streets and they would chase after corrupt politiicans with pitchforks and torches. I would think that is probably what the founders intended when they thought of the 2nd amendment. Not a battle of gun rights, but to have the people in power and the politicians remember their place as public servants.

lostand confused says

If our welfare was extremely stingy and people had to worry about food and shelter-offshoring would never happen. There would be riots in the streets and they would chase after corrupt politicians with pitchforks and torches. I would think that is probably what the founders intended when they thought of the 2nd amendment. Not a battle of gun rights, but to have the people in power and the politicians remember their place as public servants.

You might be right. But we have homeland security now, and what I perceive as a trend toward what is nearly a dictatorship. If and when a time comes that the government needs to clamp down because of riots protesting the loss of opportunity among a growing lower class, I doubt the uprising would succeed. By then big brother and it's corporate allies in big media will be even more dominant than they are now.

Also, you seem to imply that welfare in the US is generous. Is that true?

Bellingham Bill says

The reason we don't have any savings is the rent rises.

I mentioned before that my rent is roughly equivalent to the maximum subsidy for section 8 housing. Decent rentals still exists, not necessarily in the inner city though. I would agree mostly with you on health care as this is the most "forced" cost on the consumer, most simply have to have some form of a health care plan (at least a catastrophical w/ high deductible). But housing is not as forced of an expense. People will have to go back to living with their (extended) family, having kids share their bedrooms (I was completely surprised that most women here expect one bedroom per kid) etc., going back to the roots and more frugal living is what will eventually put a cap on housing, even with all the speculation and distortion. We will figure out that too many lived well beyond their means for the past couple of generations.

Another way of looking at it: The healthcare (sickcare) industry is preying on the sickest 1% or 5% while mostly failing to keep the rest of the population from becoming new prey eventually.

Housing only goes up, haven't we all capitulated on that by now?

Ha-Ha-Ha-Ha-Ha-Ha-Ha-Ha-Ha-Ha-Ha-Ha-Ha!

I would love to have the list of people who will donate to the DNC in the next two years. Those people are whachu call a "Mullet" and as you know a Mullet will bite anything.
A list of fools who are easily parted with their money is worth Millions. That would be the worlds best lead call list.

article makes no sense.
this is how insurance works.
you go 10 years and never 'make a claim' then bam you got a huge loss/payout.

im sure auto and fire insurance would be more skewed - like maybe only .05% of the insured get 95% of the payout from fire insurance. duh-doi.

PockyClipsNow says

article makes no sense.

this is how insurance works.

The article does make sense, the issue is you misunderstood what "insurance" means in the medical context. You're thinking of "insurance" in the context of fires and car wrecks, i.e. unusual events. At the behest of PhRMA and AMA among others, medical insurance has become largely about chronic conditions advertised on TV, such as Prozac deficiency, restless leg syndrome, etc. If you want to try to liken it to fire insurance, imagine if everyone were required to buy fire insurance at the same premium as pyromaniacs, in an environment where arson is legal, and every policy must also cover maintenance (leaking roofs, basement sewer issues), feng shui dragons, ghosts in the walls, and annual redecorating because radioactive granite countertops are a human right.

This explains constant bombing of my e-mail account with requests to donate sums as small as $3.

Call it Crazy says

There's another budget crisis in Washington, and it's unfolding inside the Democratic party. The Democratic National Committee remains so deeply in the hole from spending in the last election that it is struggling to pay its own vendors.

Of course the DNC is broke.

Billionaires know which party best represents their interests. Hint: it's not the DNC.

Well, even if the DNC might be broke, it doesn't really matter since...

A: Obama got re-elected

B: All of the money the GOP and their fake grass roots astroturf political movements, as well as the billionaires that have fought to have Obamacare de-funded hasn't done diddly-squat. They still lost. Haw Haw!

C: Money isn't going to change the fact that like it or not, the world changes, and so too does the US and its demographics that increasingly don't favor the current GOP.

CaptainShuddup says

would love to have the list of people who will donate to the DNC in the next two years. Those people are whachu call a "Mullet" and as you know a Mullet will bite anything.

A list of fools who are easily parted with their money is worth Millions. That would be the worlds best lead call list.

Funny, I always pictured you with a mullet...

Captain Shuddup sounds a lot like Uncle Eddie from National Lampoon's "Vacation" series.

Say hey! This was in the Wall Street Journal on March 30, 1999. Note "... how much it will buy."

Holy cow/interesting/compelling ...!

And where is it up to date??? Right here ... see the first chart shown in this thread.
Recent Dow day is Monday, September 30, 2013 __ Level is 96.6

WOW! It is hideous that this is hidden! Is there any such "Homes, Inflation Adjusted"? Yes indeed, go here:
http://patrick.net/?p=1219038&c=999083#comment-999083

sbh says

New Renter says

Funny, I always pictured you with a mullet...

I too picture him with a mullet, a wife-beater t-shirt, a handfull of viocdin and a six-pack of PBR, all in the pervading smell of propane, day old burritos and endless piles of slim-jim wrappers.

Not that there's anything wrong with that...

Obama's been talking to the GOP via media all weekend long, not just the 10 minute PR stunt Russia and TheIran are getting....
What's you point?

egads101 says

Over the weekend, Obama had phone conversations with the presidents of Russia, and Iran... But not with the leaders of the GOP.

Live up to the responsibilities of the office?

Um, they are elected officials doing the bidding of their constituents. Id say they're doing exactly what they were put into office to do, and that's save us from the ppaca nightmare

No, they were put in office to repeal ppaca, you moron.

Call it Crazy says

So? How is this a surprise? All the bankrupt cities were run by democrats, it only seems logical that the DNC should be in the same shape.

I wouldn't call the RNC a shining example of fiscal responsibility. The Republican "borrow and spend" is much less responsible than the Democrat "tax and spend." It's the Republicans who go on spending sprees (i.e. unnecessary wars) while cutting taxes for the top 0.1% of the population.

Sall right all that any party has to do is call a good all fundraiser to appeal to the ego of the troopers bro...its not much different than a newlywed couple fundraising for their honeymoon!

dublin hillz says

Sall right all that any party has to do is call a good all fundraiser to appeal to the ego of the troopers bro..

I'm not sure how asking for $3 donation appeals to somebody's ego. ;)