Central Perk: 29 mar. 2011

marți, 29 martie 2011

Mish's Global Economic Trend Analysis

Pissing and Moaning Over 1.875% of the Budget
Addicted to the Nanny State; Politicians are Like Pushers
March LPS Mortgage Monitor Report: 30% of Loans in Foreclosure have not made a Payment in Over 2 Years

Pissing and Moaning Over 1.875% of the Budget

Posted: 29 Mar 2011 10:21 PM PDT

Democrats and Republicans are horn-locked in a debate about whether budget cuts should be $30 billion or $60 billion.

Senate Majority Leader Harry Reid, says President Barack Obama's offer to accept a total of $30 billion in spending cuts for 2011 is "clearly in the same ballpark" with what House Republican leaders asked for.

The pathetic debate lingers on.

Please consider Budget Negotiations Stall Amid Charges of Inaction as U.S. Shutdown Looms

Republicans and Democrats in Congress traded charges over which party is stifling agreement on budget cuts needed to avert the first U.S. government shutdown in 15 years.

With no accord in sight on legislation to extend government spending past April 8, Senate Majority Leader Harry Reid, a Nevada Democrat, accused Republican leaders of trying to placate an "extreme minority" of their party by spurning an offer to reach a deal.

President Barack Obama's offer to accept a total of $30 billion in spending cuts for 2011 is "clearly in the same ballpark" with what House Republican leaders initially sought before their rank-and-file demanded deeper reductions, Reid said.

"Are they afraid to tell the extreme Tea Party members of their caucus that they're trying to find common ground with Democrats?" Reid asked yesterday at his weekly news conference.

Pathetic Performance by Both Parties

Quite frankly this is a pathetic performance by both parties. Moreover, I will flat out state the Republicans have only themselves to blame.

By offering a piss poor budget reduction of a mere $60 billion, they now look like the bad guys for not meeting the Obama half-way at $30 billion.

Just the Math Maam

Please do the math. $30 billion is a mere 1.875% of the budget. That is what everyone is pissing and moaning over.

If Republicans had any balls, and they clearly don't, they would have proposed cutting the budget by $300 billion. Then, a compromise at $150 billion would have been a mere 9.375% of the deficit.

It is is bad enough to argue over 9% of the budget, so what does it mean to bicker over 1.875% of the budget?

What it means is that neither party has the balls to fix a damn thing. It also means the Republicans can blame themselves for being placed in this absurd position.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Addicted to the Nanny State; Politicians are Like Pushers

Posted: 29 Mar 2011 01:27 PM PDT

Here is an email from reader Buck Novak in response to Misguided Views of Libertarian Economics and the Alternative "Regulation" Model

Buck writes ...

Hello Mish

I find it interesting that people who hate big corporations embrace the ever-growing nanny state. The reality is the nanny state is nothing but a gigantic corporation that hires those who would not be hired in the private workforce at prices far more than they are worth.

In many respects, government is no different than big business. Governments, like business want to grow. Bureaucrats always want more employees and bigger budgets.

The difference is the nanny state is run by politics not by profit. It is run for a political agenda.

If you want a perfect example of a corporation too big to succeed, it's the government.

Take a look at those protesting in Wisconsin, Illinois, Ohio and elsewhere.

Who is protesting government cuts? Why it's government employees. They protest for their benefit, not the benefit of the public at large and they want government to use even more force to take what it needs.

What does it take to stop the madness?

The Ever-Growing Nanny State

Through a process of extortion, coercion, and vote buying, a population too dumb to figure out what is really going on becomes addicted to the nanny state. The only ones who benefit are the politicians and the nanny employees. They are in bed with each other.

Unfortunately, misguided souls buy into the propaganda of the politicians and the public unions and clamor for more "nannyism" even though the process makes slaves out of everyone.

Students are especially prone to supporting the nanny state in return for student loans that make those same students debt slaves for life.

For more on the slavery aspect of public unions and collective bargaining advocates, please see

Paul Krugman, Stephen Colbert, Bill Maher, others, Ignore Extortion, Bribery, Coercion, and Slavery; No One Should Own You!

Collective Bargaining neither a Privilege nor a Right

There is one major difference between private business and the nanny business. Huge mistakes will eventually force big businesses out of business. However, the bigger the mistakes of the nanny state, the faster it grows. The current $1.6 trillion deficit should be proof enough.

Stopping the Madness

What does it take to stop the madness?

It takes people willing to be involved. It takes leadership from Congress. It takes politicians willing to stand up to the public unions whose mission it is to addict everyone on nanny drugs.

There is one other thing that would crash the nanny state: Force of the market.

Greece is the perfect example. Unless we want to become like Greece, we must take action to halt the nanny state now.

Politicians are Like Pushers

Public union employees and those addicted to the nanny state need an ever-increasing "fix". They are like drug addicts, and politicians are like pushers.

Think about drug addicts willing to do anything for their daily fix. Addicts will coerce, bribe, or steal to get what they want. Public unions are no different.

Those not addicted are not equally motivated. Indeed, no one is as motivated as a drug addict in need of a fix. Like pushers, politicians supply the "fix" in return for votes. Thus, overcoming inertia of the nanny state and its addicts is difficult.

I commend those like New Jersey Governor Chris Christie, Senator Rand Paul, Congressman Ron Paul, and Wisconsin Governor Scott Walker for their efforts to rein in the nanny state. It's not an easy process. Those addicted to the nanny state are willing to do anything to get their fix.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

March LPS Mortgage Monitor Report: 30% of Loans in Foreclosure have not made a Payment in Over 2 Years

Posted: 29 Mar 2011 02:57 AM PDT

Inquiring minds are reading the March 2011 LPS Mortgage Monitor.

There is a bit of good news in the report. Delinquent and Non-Current Rates are improving. However, the rates are still exceptionally high historically. Also, some of the foreclosure data is skewed by moratoriums and reworked loans.

On the other hand, option ARM foreclosures have increased dramatically over the last six months and 30% of loans in foreclosure have not made a payment for at least two years. 47% of those in foreclosure have not made a payment for at least 18 months.

Charts and Comments from the LPS Report

Delinquencies remain about twice the 1995-2005 average, foreclosure inventories are 7.8 times historical "norms".

30% of loans in foreclosure have not made a payment in over 2 years.

February Month-End Data: Conclusions

Delinquency rates resumed their decline after an increase in January and foreclosure inventories remain stable, slightly below historic highs.
Delinquencies continue to improve as new problem loan rates decline and cure rates increase.
Foreclosure start declines and foreclosure suspensions are reducing the upward pressure on inventories caused by foreclosure sale moratoria.
An enormous backlog of foreclosures still exists with overhang at every level:
There are three times the number of loans deteriorating greater than 90+ days delinquent as compared to foreclosure starts.
There are also three times the number foreclosure starts vs. foreclosure sales.
Foreclosure inventory levels are over 30 times monthly foreclosure sale volume.

There are 42 pages of charts and tables in the report. Inquiring minds will want to take a closer look.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Damn Cool Pics

Kuroshio Sea - 2nd Largest Aquarium Tank in the World
Hilarious Mona Lisa Recreations
Toddlers and Tiaras Star Eden Wood
Necker Island Rental for $53k Per Night
Gun Accidentally Discharges
Make a Wish Little Girl

Kuroshio Sea - 2nd Largest Aquarium Tank in the World

Posted: 28 Mar 2011 09:50 PM PDT

This awesome tank is found at the Okinawa Churaumi Aquarium in Japan.

The main tank called the 'Kuroshio Sea' holds 7,500-cubic meters (1,981,290 gallons) of water and features the world's second largest acrylic glass panel, measuring 8.2 meters by 22.5 meters with a thickness of 60centimeters. Whale sharks and manta rays are kept amongst many other fish species in the main tank.

The music is "Please don't go" by Barcelona.

Hilarious Mona Lisa Recreations

Posted: 28 Mar 2011 09:45 PM PDT

Some of the most unusual recreations of the lady who became immortal. More images.

Toddlers and Tiaras Star Eden Wood

Posted: 28 Mar 2011 09:23 PM PDT

Eden Wood is a beauty queen whose face, clothing, hair and accessories are all done on a regular basis for one purpose: winning. She is a beauty pageant queen who was featured on TLC's Toddlers & Tiaras and now she is making her own music video -- all at the tender age of five.

The song, called Cutie Patootie is the same one she performed on CBS's The Talk, includes lines like: "shakin' my booty" (done with a little rump shake) and talks about money, looks and affection, things a 5-year-old probably should not be thinking about, let alone singing about on national television.

It is easy to pick on child beauty pageants and doing so is like shooting fish in a barrel. Yes, it is gross that this little girl is made up and singing about grown-up things, but I am more curious about what she will be like when she is older.

Source: facebook

Necker Island Rental for $53k Per Night

Posted: 28 Mar 2011 09:12 PM PDT

Necker Island is owned by famous billionaire Sir Richard Branson. You may rent the island for $53,000 per night. It has white sand beaches and crystal blue tides. And you may bring up to 28 friends with you.

Gun Accidentally Discharges

Posted: 28 Mar 2011 09:03 PM PDT

is is a gunshot accident that was just waiting to happen. A man got into his car and when he went to fasten his seatbelt, his Glock 18 accidently discharged. The gunshot blew a 9mm hole through the bottom of the leather seat of his car's door frame, his underwear, and his pants. Luckily, the man was only slightly injured.

The victim says:
"What the hell was that?!?" she said. It took me a half a second to realize that my gun had just gone off…on my hip…in its holster. My wife and I had just finished breakfast at our favorite café and got into the car.

Me being the passenger, I rotated my torso to the left to fasten my seatbelt like I always do. When I straightened again, my Glock 19 discharged, blowing a 9mm hole through my pants, underwear, the leather seat and bottom of the car's door frame.
The bullet nicked my hip, but the wound is nothing a bandage couldn't cover. So what went wrong? Guns never go "Bang" all by themselves.

After ensuring I wasn't hemorrhaging profusely and didn't have to make a dash for the hospital, I stayed seated in the car as my wife came around to my door and opened it. I undid my belt and slid the Galco JAK202 Slide Belt Holster, with the gun still in it, off my belt. Why it went off was immediately apparent.

Source: itstactical

Make a Wish Little Girl

Posted: 28 Mar 2011 08:58 PM PDT

This is a special statue. If you write your wish on a note and place it into the special hole it will come true. A girl just couldn't find an empty hole in the statue to place her wish note. So she used the only hole left empty.