All Forum Posts by: Kevin Yeats

The two recent *threads* here on BP illustrate creative schemes I've seen touted before. One of those threads is not deleted - Thanks Joshua

On those threads all I can say is:

"A fool and his money ... were lucky to get together in the first place."

I will add this to this current thread and it is more of a request for funding than a scheme.

Someone seeks $13 million in funding for a broken condo project. He wishes to purchase several *penthouses* in a building then upgrade each unit with $150,000 of upgrades. The building is in a Private Country Club with a Private marina in Florida. He also wants to roll into the loan all points and fees PLUS 12 months of interest.
.... when pigs fly.

I'm reading a book about Ben Bernanke and how the Fed handled the economy since he became Chairman in early 2006.

One chapter covering a general overview of the meltdown gives specific data on risky mortgage originations.

Low quality originations (subprime & Alt-A) increased from 7% of originations in 2001 to 33% in 2006.

IO and neg-am loans jumped from 1% of total originations in 2001 to 29% in 2005. (stayed above 25% for 2004-2006).

Any wonder we had a meltdown?

Original authors Martin Bailey, Douglas Elmendorf and Robert Litan (May 2008) The Great Credit Squeeze: How It Happened, How to Prevent Another Economics Studies at Brookings, Washington.

Brandon,

Two items in your message will make this difficult. First, "without a liquid downpayment" - I take that to mean that you will not put any of your own money in this deal. Second "This will be my first development."

I'll bet a new $1 bill that no financier will touch this. You are not contributing any funds and you have never done this before. It really won't matter what your Exec Summary states, you will have a very hard time finding funding.

I've heard the suggestion of holding elections on April 16th.

Mike,

The point of my story about digging holes then refilling them Repeat ... is that it creates a job but doesn't really add value. If we follow your suggestion of putting in a tree, first, that adds to the cost of the job and second what is the value of the trees? Are they pretty? Will they add shade? Now or only in the future? Will they bear fruit? Do they create an eyesore or a driving hazard?

Similarly for the streets ... will they reduce travel time or make travel safer or more comfortable? What if no one drives on those roads such as the "Bridge to Nowhere?" How do we measure the "value" of these improvements? Which roads should be improved first - the road in the worst shape or the one that would then be used by the most people?

I read a headline that $70 million in stimulus funds created 7.76 jobs in Los Angeles.

And people wonder why the Tea Party has such momentum.

The check's in the mail

One major, troublesome aspect with government work is measuring it *output*.

As Rich above stated, we could pay 2,200 people $50K each to pick up trash but are cleaner parks and streets *worth* $50K per year ... assuming one trash collector per community. Could we hire 4,400 people at $25,000 per year and generate twice as many jobs?

How about hiring them to dig holes on Mondays, Wednesdays and Fridays and filling the holes on Tuesdays, Thursdays, and Saturdays? By the bean counters, these are jobs created but what did they produce? On net NOTHING!

It is interesting to look at the funds this Administration doled out to "create or save teacher's job." The cost for saving each job is somewhere around or over $100,000 per job. Now explain to an hourly worker how his/her taxes have to go up so that this teacher earns that kind of money.

I suggest that if Federal dollars are used to pay for state, county and municipal jobs that those workers have to go on Federal pay scales.

Taxpayers have to sacrifice so they can have a job, government workers should also bear part of the pain.

Certainly Mr. Buffett has many more dollar with which to place financial bets that I have.

My fear is not so much a double-dip recession. Certainly another recession will occur at some point in the future. My fear is that we underperform as various taxes and regulatory burdens kick in couple with a more *entitlement mentality* so that more people and businesses turn to the government for assistance rather than working hard and producing their own success.

Since you raised the Cash for Clunkers issue, read this article for a review us the *success* of that government program

http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2010/09/01/clunkers_a_classic_government_folly/