Jump to content
House Price Crash Forum
zugzwang

Nowhere To Run, Nowhere To Hide

Recommended Posts

Bernanke runs the garbage barge of US finance aground on the shoals of wishful thinking.

http://kunstler.com/...owhere-to-hide/

Everyone who has to pay attention to the order of things in the universe — meaning those not stewed on crank or drank, or waiting on line for a SNAP card, or leafing through the tattoo catalog, or waiting for a Kim Kardashian gangbang guest shot on Duck Dynasty, or lost in the alt reality of their cell phone — is suddenly very nervous about the order of things in this little corner of the universe. Sag Harbor is starting to live up to its name and down along the Hamptons the tide has gone out to feed a Tsunami of margin calls that soon will give the phrase "under water" a whole new life in the twisted mythology of capital. The immortal Bill Gross even sent out an SOS on Twitter at the end of the week. No wonder folks have got the heebie-jeebies.

The fear is that the central banks have finally lost control of a situation that they have only pretended to control since 2007, when the grotesque racket of mortgage re-bundling caused a psychotic break in the banking system. The prescribed therapy for that was half a decade of ZIRP and maxing out the national credit card. The ugly truth now emerging through this fog of psychosis is that the bond market probably can't be saved, and without it all other paper markets are toast, including the stock markets and very possibly the entire fiat currency system.

In the background, of course, is the energy melodrama. How can anybody with half a brain suppose that the late turbo-industrial economy could "recover" with oil priced at $107 a barrel? Anyway, all the "recovery" memes floating around the collective media zeitgeist are based on a handful of doctored and massaged GDP numbers universally known to be false. In short, the USA can't run the current setup on oil over $100 a barrel and has been trying to compensate for that basic fact by lending itself money. So has virtually every other advanced economy, and now they are all in trouble so there is nowhere to run, nowhere to hide — and for us, nowhere to export our financial quandaries to.

Share this post


Link to post
Share on other sites

Sag Harbor is starting to live up to its name and down along the Hamptons the tide has gone out to feed a Tsunami of margin calls that soon will give the phrase "under water" a whole new life in the twisted mythology of capital. The immortal Bill Gross even sent out an SOS on Twitter at the end of the week. No wonder folks have got the heebie-jeebies.

I can't see any real signs of distress from home-owners in Sag Habor, or Hamptons, yet. There's one Sag Habor development where there's a tug of belief systems, but all still being played out at the super-high prime value range, imo.

The bankers still in a position to claim they're not overly concerned if the price range they want isn't met. Hmm. Any value there for someone to buy it at the price desired, complete it and sell it on for extra bundles of profit? There's a question in this market without much credibility, and which may be prone to consequences from a taper.

As for (immortal?) Bill Gross on Twitter, there's a few recent tweets in there worth a look. The one in question might be a reference to the 18th August one: 'I'm tweeted out - just like the bond market. Must be the bottom!' http://twitter.com/PIMCO

Sag Harbor condo project on auction block

Originally published: August 15, 2013 6:31 PM

Updated: August 15, 2013 8:02 PM

By MAURA MCDERMOTT

image.JPG

(Rollover text on image): The minimum bid is $27.1 million for this...

Photo credit: Randee Daddona |

The minimum bid is $27.1 million for this incomplete, 15-unit housing development in Sag Harbor. The West Water Street site will go on the auction block Aug. 20 if qualified bids are submitted. (Aug. 15, 2013)

A troubled Sag Harbor condominium development is headed for the auction block, with bids due Friday.

The minimum bid for the incomplete, 15-unit complex at 21 W. Water St. is $27.1 million, according to the broker handling the bankruptcy sale, Matthew Bordwin, co-president of Melville-based GA Keen Realty Advisors.

Bordwin declined to say Thursday whether he had received any bids, but he said about 40 potential buyers have taken a close look at the complex. If qualified bidders are found, the auction will take place Aug. 20, Bordwin said.

"The overwhelming response has been that people love it," Bordwin said. "It just comes down to a question of price. We'll find out tomorrow whether the market thinks the price is reasonable or not."

The lender, Amalgamated Bank, is "completely comfortable" taking control of the development if it does not attract a buyer, he said.

One local broker said he does not expect the sale to draw much interest. "It doesn't strike me that $27 million is a realistic asking price," said Simon Harrison, a broker in Sag Harbor for 25 years.

The builder, East End Development, received funding in 2007 and ran aground when the housing market crashed, according to court filings in the bankruptcy case.

Manhattan-based Amalgamated loaned about $28 million to the builder in March 2007, according to an affidavit by Emil Talel, an executive with ties to the builder. The debt had mounted to nearly $31.2 million by May 2012, Talel testified in October 2012, when East End filed for Chapter 11 bankruptcy protection.

continues http://www.newsday.c...block-1.5900213

Edit update: Auction today.

Additional info (bank can bid): http://sagharboronline.com/sagharborexpress/page-1/west-water-street-condos-in-sag-harbor-up-for-bankruptcy-auction-later-this-month-24738

About the bank: Bank owned by a union, for unions, sets its sights on Washington (August 5th)

http://www.washingtonpost.com/business/capitalbusiness/bank-owned-by-a-union-for-unions-sets-it-sights-on-washington/2013/08/02/e8c62ea4-f878-11e2-b018-5b8251f0c56e_story.html

Edited by Venger

Share this post


Link to post
Share on other sites

Bernanke runs the garbage barge of US finance aground on the shoals of wishful thinking.

Could we please not repost every bit of creative writing anywhere on the web that has gone terribly wrong? I want five minutes of my life back.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   224 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.