June 2010 – Shortwoman.com

Unclear on How That Works

So Joran Van Der Sloot thinks he can tie Peru’s judicial system into knots. Good luck with that, kid.

Granted, they have made some progress in the last decade and a half. But it would be fair to say that their system works swiftly, and under Peruvian rules — not Dutch rules, and certainly not American rules. First off, they work under the Napoleonic Code, which does have “a de facto presumption of guilt.” And Heaven help him if somebody decides that what he did has even a whiff of terrorism! If that happens, he will wish for circumstances as nice as Gitmo.

He also seems to have forgotten that even if he gets off in Peru, there’s enough evidence now to extradite him back to Aruba.

So yeah, just keep talking. If he’s lucky he will give himself enough rope to be hung quickly.

In Closing: Consumer confidence is not just down, it’s crushed; assuming that actual for real financial regulation reform is not dead, here’s what it might mean for your mortgage, maybe; real life example of health insurance reform at work, San Francisco requires businesses to provide insurance (**** regulations and **** California!!), and Emergency Department visits dropped 70%; good teaching results in fewer “learning disabilities“; the rich get richer; when you don’t clean your own messes you can’t act shocked when somebody else cleans it the hard way; learning to live in poverty; heliophobes; I was amused by the discussion of capris; prepare to be irradiated; you can’t really talk about financial illiteracy without talking about innumeracy; fetuses do not feel pain!; and I’ll be posting some to LivinginLV.com. You can read more about it here. So here’s a little tip for those of you trying to “use” social media to “reach customers”? You’ve got to be social first for social media to work.

The Internet Ate My Homework

In the last 24 hours I have switched cell phones and had my RSS reader suddenly stop working. As a result, I’ve spent much of the last day digging out and trying to organize things — and that’s no easy task. So as much as I would like to write something deeper, I’ll be talking briefly about the group of cowards and self-centered blow-hards in Washington DC who are our elected Representatives and Senators.

Thanks to our elected officials preferring the company of insurance company lobbyists to that of citizens that can actually vote for them, we still have a health care system that costs too much and does too little. At least we will soon have certain “rights” when dealing with these companies, but some warn that these “rights” will translate into even higher costs. The House of so-called Representatives did get up off their collective asses to fix a looming slashing of what doctors would be paid under Medicare. Why is this important? First, your doctor’s costs of doing business have not gone down. Second, most major insurers base what they will pay on what Medicare pays. So this would within a year put some doctors out of business.

The House also managed to pass a campaign finance reform bill that would force candidates and political parties to disclose the identities of most big donors. Except of course for the biggest and most powerful donors. They are still free to own their own Congresscritters. Now the bill is ready for slaughter in the Senate.

A couple of Senators are actually trying to do something for children — odd in an election year since they can’t even vote. It seems that an unintended result of some immigration raids is that there are kids whose parents have been taken away. Those kids are often American citizens thanks to the clarity of the 14th Amendment. The bill in question would allow the parents to arrange care for these little Americans, make sure that they have resources and can report abuse, and prevents authorities from involving the kids in interrogations. Think what you want about the parents, but the kids did nothing wrong and deserve the protections of law. The end.

But what could our elected officials not be bothered to do? They couldn’t be bothered to protect servicemen from predatory car salesmen, not even for Mrs. Petraeus. They couldn’t be bothered to extend unemployment benefits for a million people, despite the fact that there are at least 5 unemployed Americans for every available job opening. And no, Sharron, people aren’t living a life of luxury in Las Vegas on unemployment benefits.

So Remember Come November. Vote for those few who have been taking care of your business in Washington, and against those who have been trying to obstruct your business. In the meantime, click here to figure out how to contact your Senators, and here to find your Representative. You’ll need to know your Zip+4, so dig out some mail first.

In closing: fat people don’t walk (an essay on urban design); a “silly” lady who desperately needed the 911 operator to listen (need help? these people can help); they hate us for our electricity; what would Jesus do?; it’s not your typical state dinner — don’t tell Michelle they split an order of fries; and your dose of Japanfilter, the Pepsi Strong Shot.

A Midsummer Day’s Post

Happy Solstice! Now might be a good time for some bloggy closet cleaning (did mine with the redesign, thanks!).

And here’s a little meme courtesy of Kathy. Here’s how it works: Google up “[your name here] needs.” My needs are interesting. I apparently need:

Your Support
a Spring Haircut
a Forever Home
and to Change.

How about you?

In closing: exploring the universe; a new way to get on the freeway; Keep on shoving that shoe into your mouth, Sharron; where the national debt meets the national how-we-pay-for-healthcare crisis; I never thought I would call for gutting “gifted” programs; my President Emperor Right or Wrong; and stay cool.

Shorties Sematary

Nothing about mortgages or housing today, I promise!

When did Progressives turn into Reaganites?: With Progressive “ideas” like these, we don’t need Conservatives. Doesn’t matter, the Party Of No shoulders on. Maybe everybody thinks the Underpants Gnomes will take care of the problem.

The other side of the coin: Everybody’s favorite Liberal President, Richard M. Nixon! That damn Commie signed the EPA into law, called for true universal health care, and made Father’s Day an official holiday.

Speaking of Conservatives: b***s*** like this and this are why I don’t listen to most of them.

I Shot a Bank in Reno, Just to Watch it Die: Bank Failure 83 this year. It’s only June. 90 banks have missed their TARP payments, so watch out for more to come.

I’m not sure I entirely agree, but it’s an interesting thought: why baggage fees are good for most travelers, with bonus bagging on airport security.

Aim Carefully When Shooting Your Foot, You Wouldn’t Want to Mess Up Your Pumps: I’m not worried about Sharron Angle anymore. Between blowing off a major news outlet in a market that represents 80% of the voting base (there’s a link for video goodness) and not having any money, Senator Reid has no problems.

On Why Medical Care is More Expensive: Not only is it more complicated, it actually works now. Speaking of which, how quaint that USA Today thinks patients have any control over the use of electronic medical records! Oh yeah, and it looks like your doc will only have a 21% pay drop from Medicare in June. Which by the way is generally a lean month for doctors anyway.

The Beginnings of Made For TV Disaster Movie: The Night the Oil Rig Exploded. Several scenes already sketched out, with character development and dialogue, ripped from real life.

On Teacher Assessment: It’s only fair to assess them on stuff they have some control over.

It turns out that Moving is Expensive and Inconvenient: Raising taxes on the rich doesn’t cause them to move to other states. If it did, there would be no multi-millionaires in California and lots of huge mansions outside Primm.

On Fraudulent Debt Collection: Has it really gotten to the point where all somebody needs to do is claim you owe money? Even if you do owe money, there’s stuff you don’t have to tolerate from debt collectors.

Why, No Matter What the GDP is, We Are Still in a Recession: Only the very rich have money to spend.

The “Experts” show their Ignorance Once Again: Experts declare that kids don’t need close friends. Parents scratch their heads, wondering where the heck kids will learn to have relationships with other human beings.

The Crazy Neighbor: Whew!

Have a great weekend, folks! Feel free to let me know what you think of the ads in comments.

Mortgapocolypse

Before we get to today’s news, let’s start with a bit of history and background on how banking and lending works. Long ago, the first bankers realized that the odds of everybody wanting their money at the same time were just astronomical. So if they were to lend some of that money out at interest, not only would they profit, but they could pass on a little bit of that interest to depositors, making people want to deposit money with them. Charging of interest is even discussed in the Bible, so we know it happened in Biblical times. This process in fact creates money, so it’s very important to the economy.

But let’s fast-forward to a mythical and highly simplified bank somewhere in America. We’ll call it Bailey Bank. Bailey’s got ten thousand depositors with an average daily balance of $1,000. Simple math says they have roughly $10,000,000 in deposits — small by modern standards but still nothing to sneeze at. The Federal Reserve Bank regulates how much money they need to have on hand, and also says how much needs to be deposited with them for emergency purposes. They still have plenty of money to lend out.

So Bailey makes a few dozen mortgage loans, and lends for a few farms and small businesses too. If they are short on cash, they can borrow money from nearby Potter Bank or from the Federal Reserve, at interest rates set by the Fed. These are the rates that Greenspan used to mess with, and the ones Bernanke can change today, not the rates that banks charge us but the rates they charge one another and the rate that the Fed charges them.

When they came to the point where they didn’t really have more money to lend, they sold a bunch of mortgages to Fannie Mae and Freddie Mac. Fannie and Freddie paid them to be the servicers — sending the bills and collecting the money — and paid Bailey most of the money they would have earned by keeping the mortgage until it was completely paid off. This left Bailey with more money to write more mortgages. But Fannie and Freddie have rules about what they will and won’t buy. So Bailey changed some lending policies to make sure that Fannie and Freddie would buy their loans. There are properties that you almost can’t get a mortgage on because other banks did the same thing.

You already know the sad story of banks being left holding the bag in the foreclosure crisis they created. And maybe you even have seen how banks are driving down property values in your neighborhood by dumping properties at ludicrously low asking prices.

This also left Fannie and Freddie behind the 8-ball, and it may yet cost American taxpayers $1,000,000,000,000 to fix it. Why bother? Because banks have stopped counting on holding mortgages until they mature and count on selling the paper to investors like Fannie and Freddie. Without someone to buy the paper and give banks more money to lend, lending will dry up even more than it already has. And that means almost nobody buys property without cash. It may already be too late to save Fannie and Freddie; they are being delisted from the New York Stock Exchange. It would be polite to say that’s a negative for the stocks.

But there is one ray of sunshine in the mortgage mess: the arrest of Lee Bentley Farkas of mortgage company Taylor, Bean & Whitaker. He and unnamed conspirators are accused of fraud in the TARP program, “misappropriating” $400,000,000, and causing the collapse of Colonial Bank by selling them $1,500,000,000 in bad mortgages. I agree that this prosecution is a good start.

In closing: Arizona still keen to repeal the 14th Amendment even as its schools wonder how to comply with state law; homelessness in America; China owns 13% of the publicly held national debt; some people said I was nuts when I suggested that some religious nuts favored the life of an embryo that couldn’t even become a baby over that of a fully grown woman; terrorist nitwits; and sometimes buttons are better than velcro.

Heeeere Firedoglake! Go get the Cluestick! Good Doggie!

A few minutes ago I read a seriously wrong post on Firedoglake called Reid Seeks Bubble Re-Inflation. The author accuses Senator Harry Reid of trying to reinflate the housing bubble by extending the home buyer tax credit, presumably saving the Las Vegas economy and ensuring his re-election this fall.

Let’s step back and look at the facts.

First, he doesn’t want to extend the credit for new contracts. The purchase contracts had to be signed by April 30. All that paperwork is safely in the files of 2 brokerage offices, an escrow company, and mortgage office. So wrong thing one, this will do nothing, repeat, zilch, nada, to “re-inflate the housing bubble.”

What he does want to do is extend the time those buyers have to close on those homes. As it stands, the transaction must close by the end of June. Under normal circumstances that’s no problem, but we don’t have normal circumstances.

The author says this extension is “ostensibly because of application processing” and warns that this could start a cavalcade of tax fraud! Wrong. First, all my mortgage experts are telling me to plan on a minimum of 45 days from contract signed by all parties to close. That’s because of certain changes in the mortgage process implemented at the first of the year. That makes June a tight squeeze for anybody whose contract is dated April 30, even before you consider the problems of distressed property.

For bank owned properties — which currently account for 19% of available Southern Nevada properties and 38% of recently sold properties — there is the wrinkle of waiting a week to 10 days for the signed contract to come back from the bank. It’s a pain in the butt, and simply the way it is.

And then we have the short sale. A short sale is when the buyer owes more than the home is worth; to sell it, the bank will be “short” money at the end of the deal so they get to approve it. Since roughly 65% of Vegas homes are underwater, there will be a lot of short sales for the foreseeable future. Right now we’ve got over 10,000 properties that have signed, accepted contracts and are waiting for that approval. In the last 30 days, just under 1100 short sales actually closed.

Think about that. At the current pace, it will take 9 months to get through just the short sales with approved contracts, to say nothing of the 4600 short sales that don’t have accepted contracts yet and any others that come on the market. New short sale rules requiring 2 week approval be damned, because they don’t apply to most borrowers.

Heaven help me, I’m defending Harry Reid…

Harry’s not trying to “re-inflate the bubble” and he’s not trying to create a place where mortgage fraud can run rampant (expect mortgage fraud arrests this week, by the way). He’s trying to give all those short sales time to get approved and close.

Life Imitates Monty Python

First, it was the news that Scotsmen were “universally unhealthy” and indeed “living dangerously” when it came to their lifestyles. Sadly, the first thing that popped into mind was that they were universally bad at tennis as well:

Punchline here, if you are unfortunate enough not to remember this.

Then mere hours later, I stumbled upon an item about bearded women taking on the “good old boy” network in France. Please forgive me for automatically thinking of this:

Makes it hard to take the world seriously.

In Closing: proposed stupid laws (LIEberman really thinks there’s an internet “off” switch someplace that the President could pull??); smart judge; gee, what could possibly make somebody nervous in an airport?; Desai pleads not guilty; bank closure 82; earlier school day == more teen car crashes (can we hope that the insurance companies actually do something good for us and pressure school districts?); and for Japanfilter, the Ikaros Solar Sail. Don’t fly too close to the sun, guys.

Candidates “R” Us

Today I’ll be doing a little follow up on Tuesday’s Nevada Primaries, specifically the Republican nominees. If you aren’t curious about who Harry Reid is running against, scroll down to In Closing.

Harry Reid will be running against Sharron Angle, who has been endorsed by at least one “tea party” group. But it seems that some of the stances that got her that coveted support might not sit too well in the general election. Her website has been cleansed of some of her more… controversial positions. Apparently the teaching of phonics is way too hot an idea to be confessed now. But she also thinks the Department of Education should be abolished, so who exactly will be insisting on phonics at the Federal level? She also ran for the nomination on saying global climate change is a hoax (tell it to a Las Vegan this week, honey), “free market” retirement alternatives should replace Social Security (maybe some sort of defined benefit pension plan?), we should drill everywhere, to hell with regulation, and she’s eligible to have a concealed carry permit. How impressive.

So, did the GOP discuss these minor changes to her site for greater electability, or did a brain cell go off in her campaign headquarters?

Meanwhile, voters in the Northwest side of Las Vegas have the opportunity to vote for incumbent Dina Titus, or challenger Joe Heck. Dr. Heck is an ER Doc who did a tour in Iraq and therefore thinks he has all the answers to our healthcare, economic, and security problems. As I’ve mentioned before, Vegas is a mighty small place when it comes to our medical community but I don’t know the man. Even though we have a Republican Governor, Dr. Heck brags about having the endorsement of Tim Pawlenty and Mitt Romney, the Governors of 2 states that are not Nevada. Heck had originally planed to run for Governor himself, so it’s quite understandable that he doesn’t exactly have Jim Gibbon’s backing. His platform seems to be classic Reaganomics: “a fair and predictable tax system and the elimination or reduction in some taxes, including estate taxes and long-term capital gains taxes, to encourage business growth. He argues for bringing back manufacturing jobs to bolster the economy, too.” No word on how to bring back those jobs. A really big lasso, perhaps? You can read a lot more about his views in this interview, which shows that he has a remarkable amount in common with Ms. Angle.

The more radical elements of the Republican party might have started as a made up movement, but it’s gotten momentum of it’s own. In the words of Pearl Jam, “Oh, but we unleashed a lion.”

In Closing: It is surely a sign of the apocalypse that I mostly agree with Glenn Reynolds, but he’s not the only one who wonders if “everybody ought to go to college” is what we really ought to be telling high school students; Massachusetts health insurance reform win and fail; bankruptcy filings back up to pre-“reform” levels; why the economy isn’t getting better; do negative calorie foods exist?; Afghanistan is now officially the longest war in American history; on teaching and poverty among children (who, you may recall, don’t have jobs and aren’t really responsible for their own poverty, conservative think tanks notwithstanding); the good news is there will be 400,000 new jobs driving trucks in the next 18 months, but the bad news is those jobs will be as long haul truck drivers; terrorists don’t even need real bombs anymore; don’t buy something just because the lady in the vitamin store says it’s good for you (pro-tip, do research at home, heavy on scientific papers as references, and take a written list of what you want!); economic opposite day; good advice; Congress can’t be bothered to make sure your Doctor gets paid properly; as if you didn’t know that retirement savings were endangered; on metabolic syndrome; on solar power; and it turns out that GTA doesn’t corrupt every soul that plays it.

Reid and Reid

Among states having a Primary election today is Nevada. Nevada voters were faced with two big decisions today in addition to a couple dozen local level races. The electronic ballot in some precincts was 9 pages long. While the nation has one eye on our race, it turns out that the majority of Nevadans won’t even bother showing up at the polls.

The headline star of the show here and across the country is of course the race for United States Senate. Majority Leader Harry Reid has been a fixture of Nevada politics for decades, having even been portrayed in the movies. Today he had 3 Democratic challengers in addition to a full dozen Republican candidates vying for his seat. It would appear that in terms of campaign finance, Reid has the ability to outspend all of them in the general election combined. A new front runner has emerged in that race, Sharron Angle, following Sue Lowden’s infamous chickens-for-doctors gaffe. The race itself is still close to call. Angle has a Tea Party endorsement, so it will be interesting to see how that plays in her campaign should she win today’s race.

Meanwhile, Senator Reid has laid out an ambitious summer agenda for the Senate. His “business as usual” approach is welcome considering the problems facing the nation, and the number one most important issue to most Americans is unemployment and the lack of health insurance that goes with it. It would appear that his campaign revolves around getting things done.

Of course the elephant in the room for the Senate race is Yucca Mountain. Reid has been using his influence to thwart the nuclear waste dump just 90 miles from Las Vegas for decades. If Reid loses the fall election, his successor will most likely not have the political clout to keep the site closed. While Nevada’s other Senator, Republican John Ensign, also opposes Yucca Mountain, he has bigger things to worry about.

Of course Harry isn’t the only Reid on the ballot today. His son Rory hopes to be the Democratic nominee for the upcoming Gubernatorial race. Rory Reid only faces one other Democratic challenger, and in addition to name recognition, he’s a County Commissioner in Clark County. Las Vegas is in Clark County, which is home to roughly 80% of Nevadans and in fact has a bigger budget than the State of Nevada. Embattled Governor Jim Gibbons faces 4 primary challengers and the aftermath of a viscous divorce; despite his confidence, he is unlikely to win the primary. In addition to trailing the front runner by 14 points, his campaign is low on money. Most likely, Rory Reid will face Brian Sandoval in the Fall.

Rory is only 47. From the Governor’s Mansion, he can name a replacement for a resigning or deceased Senator and more. He can build towards a Senate run or even a Presidential run. And that makes Rory Reid a man to watch.

Cross-posted at The Moderate Voice, one of Associated Content’s Top 3 Centrist Websites!

2001 Maniacs: Field of Shorties

The Truth About Cattle Grazing: done correctly, it can help restore the land.

Two Funny Things and a Lot of Unfunny Ones about Racism: Let’s get rid of the Mexicans, and Who translated this for you? There’s a movement afoot to pass laws that violate the 14th Amendment on the grounds that not everyone born here has parents that are really not American enough. By not American enough, they generally mean “brown.” There are a number of problems with this, aside from Constitutional issues (funny how some people only like the Constitution some of the time). First, you might end up with people who can’t prove they were born anywhere because the law denies them a birth certificate. Second, you might end up with people who are effectively not citizens of any nation, because they weren’t born in the country of their parent’s citizenship. Third and finally, who gets to decide what constitutes “American enough”? At least “born in U.S.” is a simple to apply measure.

More on Friday’s lousy employment report: Good, bad, and ugly. Really ugly.

Obligatory Gulf of Mexico Oil Spill Items: Woo, recapturing a whole 10,500 barrels a day. Really interesting that a BP exec managed to dump a third of his company stock a month before the disaster. You would think they could find a cable tie to keep stuff out of the way on the equipment BP is using a mile below the surface. Harry Reid thinks BP should pay for the clean-up (more on Harry come Tuesday with the Nevada Primaries, probably over on TMV). And on BP’s spill “plan”.

Civil Forfeiture Must Go: Guy sells truck on a payment plan. Truck gets seized by the cops. Cops don’t care that guy still has title and is owed money on said truck. Somehow I bet GMAC doesn’t have this problem.

And it’s only June 6: 22% of states have passed new abortion restrictions and 81 bank failures so far this year.

Speaking of the Banks: 6 made $51,000,000,000 last year; the other 980 lost money.

While we’re on the topic of making money: Just the threat of Federal enforcement makes companies want to restate their earnings.

How Laws are Really Made: Most people of my generation were taught that it works something like this, but the truth is a bit more complicated.

Run Sarah Run!: Ten reasons she should just keep doing the speaking circuit and stay the heck off the ballots.

Two Medical Items: Did you know that if enough doctors decide “No, that isn’t enough money for that procedure and we won’t take that insurance anymore,” the Government can decide they are in violation of anti-trust laws? And scroll down for a breakdown of infant mortality rates in developed nations, compared to health care spending per capita and military spending as a percentage of GDP. The United States has a shameful showing.

And Finally, Japanfilter: Fireflies.