real estate

I honestly don't think it's a good idea for banks to go into the real estate business, but that's what bankrupt homeowners are forcing them to do. Why? Because once they walk away from their homes, the bank can't come back to get more of their money :

Foreclosure used to be a last resort, something that hard-pressed homeowners would scrimp and plead to avoid. But as the subprime lending crisis sweeps up millions of borrowers nationwide, some are deliberately choosing foreclosure as an early option.

As their home values tumble and their mortgages rise, these "walk away homeowners" decide to cede their houses to their lenders.

"It's throwing good money away after bad" to pay an escalating mortgage on a home that's plunging in value, said Army Sgt. 1st Class Nicklaus Skaggs of Vacaville. He and his wife, Tishara, stopped paying their mortgage in February. They signed up with a new company called You Walk Away to help guide them through the multi-month foreclosure process.

I originally posted this on the Daily Gotham earlier in the week.

Mark Twain said there are lies, damn lies and statistics and his adage applies to unemployment measurement. The Bureau of Labor Statistics (BLS) publishes six unemployment metrics monthly, each referred to in ascending order of inclusiveness of the unemployed as U-1, U-2, etc.

The measure reported by the media as the unemployment rate that severely undercounts the unemployed is referred to as U-3. The U-3 rate is obtained by dividing the narrowest definition of the unemployed by the work force.
The U-3 definition does not include whom the BLS calls discouraged and marginal workers, those who want a job but have given up the search because market conditions and personal experience indicate the process is futile.

U-6 Unemployment counts the marginal and discouraged plus those seeking full time employment but can only find part time work. The Federal Reserve tracks what it defines as the Augmented Unemployment rate, which I’ve read is equivalent to U-6 less part time workers. I couldn’t find any Augmented Unemployment releases on the Fed site and despite major data inclusion differences, some bloggers have used U-6 and the Fed’s stat interchangeably.

Naive supply side economics fans and the heartless and often evil advocates of cutting the wealthy’s taxes as a means to kill the beast of New Deal and Great Society programs love to brag that the historically low recent unemployment numbers (April’s seasonally adjusted U-3 was 4.5 percent) are evidence that their tax policy scam truly does trickle down to those who are not tax cut direct material beneficiaries. Despite those wishing to give handouts to Gates and Buffett’s (who personally don’t even want the cuts) spin, the economy just isn’t that robust. The seasonably adjusted April U-6 numbers, which are a much more accurate economic suffering barometer than what the media regularly announces, increased to 8.2 percent.

My house is for sale. Listing Details are here.

It's a gorgeous house, inside and out. I'm going to miss it, and I hope that it winds up in the hands of someone who will take good care of its historical charm. The house was built in 1848, has four bedrooms, a carriage house (for those who have always dreamed of having an artist's studio), a study, living room, dining room and eat-in kitchen. (The kitchen is bigger than the studio apartment I used to live in.)

Here's the carriage house.