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alstry (35.87)

9.09 Comrades

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16

August 25, 2009 – Comments (7)

...many hotel owners, in San Francisco and across the state, financed purchases or refinanced loans between 2005 and 2007 - when the hotel values were at their peak. Since then, hotels statewide have lost 50 to 80 percent of their value, meaning that many owners owe far more than their asset is worth.

http://www.calculatedriskblog.com/

It wasn't just San Francisco and it wasn't just hotels......office buidings, shopping centers, and commercial land deals were all financed with incredible leverage between 2005 and 2007 at the peak of the market.  Many of these deals were done on a non recourse basis and little or nothing down.......the banks didn't care if the deals made sense....too many cents were being made with the credit default swaps and fleecing pension funds who were getting bribed to buy the nonsense loans.

And it wasn't just commercial real estate, it was home mortgages, municipal loans, HELOCS, credit card loans, auto loans, private equity loans, and commericial loans were all gushing  between 2005 and 2007.  Spending exploded and the prices of everything boomed.  Profits were flowing, property values rising, and an incredible amount of taxes flowed into government making our politicians happy.

Now the game is over as the banks intentionally cut off the private economy from credit starting in 2007.  Without credit the economy will evaporate and we are likely going to see millions of government jobs cut going forward.

The California Department of Corrections and Rehabilitation said Monday it will issue 1,300 new layoff notices in Sacramento, Amador, Fresno and elsewhere after the assumed $1.2 billion cut to the department's budget.

http://www.sacbee.com/

The most amazing part of this situation is that we are just at the beginning of the defaults....and our soon to be reappointed FED chaiman Benny the B is telling us the recession is over? 

Over 150,000,000 Americans are directly or indrectly dependent on government spending for their incomes.  Now that revenues to government are evaporating.....how are these people going to generate an income?

Michael Moore will be coming out with a movie questioning capitalism in America.....any my guess is that as conditions deteriorate....... so will many Americans.  One of Alstry's greatest concerns was the threat of communism becoming a possibility.....it appears that the Zombulator is going to cause so much economic distress, many Americans will soon start demanding change to our current system.  When people lose everything, they lose it.

Many of you Fools still can't see it.....but you will soon.

Alstry warned you to prepare.....now 9.09 is almost here.  When politicians have a choice between maintaining their jobs or your wealth......their jobs win everytime....especially when the bankers are financing them.

7 Comments – Post Your Own

#1) On August 25, 2009 at 1:15 AM, alstry (35.87) wrote:

WITH POLITICIANS LIKE THE FOLLOWING, WHO NEEDS TO WORRY ABOUT TERRORISTS....

Several Miami-Dade commissioners are demanding drastic cuts to Mayor Carlos Alvarez's budget amid revelations he gave generous raises to favored staffers while pushing for unprecedented job and salary cuts throughout the rest of County Hall.

In March, three weeks after delivering a speech calling the current recession the worst economic crisis since the Great Depression, Alvarez gave Chief of Staff Denis Morales an 11 percent pay raise, bringing his salary from $185,484 to $206,783. On the same day, he gave a 15 percent raise to his policy director, Robert Villar, bringing his salary from $95,779 to $109,879.

The raises were backdated to Sept. 21, 2008, which meant each man also got a generous ``retroactive'' paycheck: Morales for $17,281, Villar for $9,747.

Alvarez also gave a 26 percent raise to his senior advisor, Luis Gazitua, through a series of pay hikes ending in November 2008 that pushed his salary to $101,842.

http://www.miamiherald.com/460/story/1198476.html

GIVING BIG RAISES TO A FEW OF HIS BUDDIES WHILE SCREWING THE REST OF THE CITY WORKERS?

This is what the mayor was saying a month ago....

Miami-Dade County Mayor Carlos Alvarez announced sweeping cuts Wednesday, from across-the-board pay cuts to the elimination of jobs to fewer potholes being filled, to cover a $427 million shortfall for next year's $7.83 billion proposed budget.

No department or county program was spared. All county employees, from the mayor to the last laborer hired, would receive a 5 percent pay cut. And 1,700 of the county's 30,000 employees will be let go -- a little under 6 percent.

http://www.miamiherald.com/news/miami-dade/story/1143632.html?storylink=mirelated

WHAT DO YOU THINK THEY ARE GOING TO DO TO YOU IF THIS IS WHAT THEY DO TO THOSE AROUND THEM?

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#2) On August 25, 2009 at 1:23 AM, APJ4RealHoldings (33.84) wrote:

I have a feelign the Michael Moore movie will have 2 big faults:

1) It will ignore the distinction of a debt based financial system vs normal capitalism

2) It will ignore the ills of debt, and ignore the positive consequences of controlling debt by cutting/eliminating spending

Ah yes, further keynesian love, in short. 

Anyways, thanks for continuing to post Alstry.  I'm roughly 20% net short as of today.   Wouldn't dare go above that, as that would be risky insanity. 

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#3) On August 25, 2009 at 1:57 AM, alstry (35.87) wrote:

I am not sure how it will be presented.

But what we do know factually is credit is being dramatically tightened on the private economy as taxpayers give bankers unlimited access to practically free money.  Conseuqently the private economy is collapsing as evidenced by dramatic declines in commercial and residential real estate prices.  In turn, government revenues are evaporating.

With a collapsing private economy and evaporating government revenues, we can be confident that if we proceed with the current policies, there will not be too much economy left in the near future.

As the economy collapses, the distress will rise....no matter what anyone says.

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#4) On August 25, 2009 at 2:54 AM, awallejr (81.03) wrote:

9.21.09 tick tock tick tock Alstry.

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#5) On August 25, 2009 at 3:30 AM, NOTvuffett (< 20) wrote:

Michael Moore has everything figured out except how not to shove Big Macs down his gullet, lol.

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#6) On August 25, 2009 at 4:11 AM, aqua2 (< 20) wrote:

The same shenanigans are going on in Chicago.... (post #1)

Patronage workers with the Cook County Forest Preserve District are seeing more green these days -- in their paychecks.

"With people everywhere facing tough financial times, the 28 forest preserve patronage workers who've been on the payroll since 2006 all got hefty raises in the following two years, an analysis by the Chicago Sun-Times and the Better Government Association has found. They're among 38 forest preserve workers who are exempt from the Shakman court order that bans political hiring in city and county government."

full article here

http://www.suntimes.com/news/1731032,CST-NWS-watchdogs24.article 

Sad part is this is just politics as usual here in the ass belching windy city or windy shitty for South Park fans.

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#7) On August 25, 2009 at 6:43 AM, JerseyShoreGirl (< 20) wrote:

I would hope that most clear-thinking Americans will dismiss Michael Moore as an America-hating lunatic!

However, I do agree that if the govt can't support many ppl who depend on it, and things further deteriorate across the board, anarchy, leading to a new system .. first oligarchy then tyranny will follow for sure.  But isn't that the plan?

Last night Glenn Beck did a piece on the Cloward-Piven theory which is a 'radicals' theory of how to overthrow the capitalistic system .. by overloading it.  Glenn and his guest compared what is going on right now to 'flooding the zone' ... 1,000+ page bills passing right/left; healthcare debate, interrogation debate, AIG bonus debate, race baiting (Gates), huge stimulus packages, Cash for Clunkers, Mortgage relief, and also Obama's celeb-in-chief antics .... not only are we being overwhelmed with 'issues of the day,' our system is being overloaded with more debt ... that is mathmatically impossible to repay ...

And the czars .. the czars!  About 3 dozen and counting.  Glenn Beck did an excellent piece on Van Jones, Obama's Green czar who is a self-described radical and Communist. (I intentionally posted a link to Glenn's video from the Huff Post website, which mocks when Glenn has uncoved .. some kind of 'Commie conspiracty' .. I don't think what Glenn has uncovered is at all funny .. it's serious as hell .. and when will these libs wake up to what is going on?  When our country is too far gone? You be the judge?  Do you think Van Jones should be advising our President?  A self-described radical, Communist .. been arrested several times .. did he even have a background check done?

http://www.huffingtonpost.com/2009/07/31/glenn-beck-uncovers-van-j_n_249044.html 

I was on twitter last night and someone made a great point .. that Obama is basically setting up his own 'shadow govt' that mirrors the fed agencies so the old ones become moot .. think about his move yesterday to emasculate the CIA, setting up his own elite interrogation unit that is controlled by the WH.  Many are suspicious that this unit will eventually be used against US citizens who resist in the future. 

Do you ever recall a time where we were so overloaded .. and so much was coming at AT SUCH BREAKNECK SPEED? .. and things were being done that seem to intentionally hurt our way of life?

WE ALL DESERVE BETTER THAN THIS CRAP; SO MANY HAVE SHED BLOOD AND PAID THE ULTIMATE SACRIFICE FOR OUR FREEDOMS, WE NEED TO WAKE UP BEFORE THINGS SLIP TOO FAR AWAY.

If you're interested in catching Glenn .. he's on from 9-12 EST on the radio .. you can usually listen to him via this link ..

www.talkstreamlive.com

or he's on at 5pm on Fox each night.  He's done a ton of research and is presenting it this week. 

Yes, he's a little goofy but IMO what he says has the ring of truth .. kinda like Alstry ... hard to listen to, disturbing at times, but the clear ring of the truth. You know it when you hear it!

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