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Where will the new hits come from?



August 06, 2008 – Comments (4)

Many of the things I thought were coming seem to be showing up, higher interest rates for example.  I expect higher taxes and I expect home owners to be particularly hard hit.  When I was thinking through where I thought the economy was heading I concluded that I did not want to own more home then I need as to do would be to have city councils consider me an open tap to access funds. I suppose I've become resentful of waste and what I consider incorrect policy.

I also figured things would show up in ways that few anticipate.  Mish has a post about ways condo and strata projects are being affected.  The first has only 1/3rd occupancy and it appears bills aren't being paid and services aren't happening, like garbage collection.  There there are the squatters.  The second one is about a complex where strata fees went up 35% because of those not paying their fees.  I don't know what the law is like in the US, but in Canada the strata has the right to block a sale of a unit when fees are not paid, so strata fees get paid before a title can be transferred. 



4 Comments – Post Your Own

#1) On August 06, 2008 at 12:33 PM, dwot (29.73) wrote:

Here's another point I've mentioned before, dividends declining.

MarketBeat is reporting that  Merrill Lynch is being told to cut its dividend.  I had not realised the shareholder dilution was as high as reported, 87%.  The call for a 30% cut to the dividend is probably not enough.  Truly, if you are going to the capital markets to raise equity you have no business paying dividends at all.

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#2) On August 06, 2008 at 12:36 PM, dwot (29.73) wrote:

Freddie cut dividends from 25c to 5c, better late then never.  This one should also be cut to zero.

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#3) On August 06, 2008 at 12:50 PM, dwot (29.73) wrote:

How much do I go on about pensions...

Massachusetts has fired Legg Mason for managing their pension fund.

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#4) On August 06, 2008 at 1:44 PM, dwot (29.73) wrote:

Really interesting Alt-A deliquent 3rd graph on this CR post.

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