As my few readers may or may not be aware of, subprime lender New Century Financial Corp has lost over 90% of its stock value and is nearly out of business as it cannot meet its obligations to shareholders and to its own bottom line. There are many companies that aren't profitable years in a row. However, very few of those companies literally gamble with stockholders money and at the same time rip off the consumer.
Capitalism is a wonderful thing as a progression from Mercantilism...but a horrible things when even in the most highly regulated industry a company can act the way New Century and other subprime lenders have. These companies acted in a very irresponsible manner. They extended credit to those who did not qualify. Our parents tell us that money doesn't grow on trees...apparently subprime lenders didn't take this to heart.
Yes I am going to keep linking that site every time I mention subprime lenders. In my work with and for Primerica FInancial Services we routinely run across families and individuals ruined by these kinds of practices. Forget about what is going to happen to the company and to its employees as that is not important. What is important is that these people to whom credit was irresponsibly extended will now most likely have their houses or condo's taken away from them by whomever buys this debt. The debt is not going to disappear...there is no fairy fucking godmother called the IMF that can just zero out debt for the consumer...no only governments have that privilege and even then it is not easy...the IMF most times would rather drive a country to financial ruin...but that is another article.
These people aren't going to get away with essentially theft of shareholder $$. Those mortgages were an investment that is contractually bound...and the contracts are not broken because the originator of the loan goes bye bye...noooooo its not that easy, the contract shifts to whoever buys the debt. And no you can't renegotiate. These people had better be glad that there are no more debtors prisons any more.
The company had horrible (but legal) business practices. The people however had horrible (but still legal) judgment. The problem there is that you (the lend-eeeeeee) gets held accountable more then the originator (lenderrrrrrr). So each and everyone of those people will be foreclosed upon...now for those of you who are smart about property you will be able to find some bargains coming on the market soon so keep your eyes out.
I know...I know..it seems bad to say you can profit form their misery, but the investment bankers who come knocking want to get rid of this debt (which the industry is legally obligated to split up evenly among the largest firms). So do your country a favor and buy this property...rent it out and pay off your fixed rate fixed term home loan in half the time.
I just told you how to become wealthy
If I wasn't already up to my eyeballs in debt I'd do it.
Cheers
Monday, March 12, 2007
Friday, March 02, 2007
derka derka mohammed jihad
In honor of my first business experience with a muslim...I hereby do proclaim it is a pain in the ass with any close knit ethnicity to avoid their own version of political nepotism system.
So I was doing my presentation for an energy conservation project and while he liked what he was hearing (including the fact that the building owner gets a tax deduction up to $1.80/sq foot or the material cost of the project: he gets the lesser of the two) He still wanted to (as my father says) "jew me down". Well yes...every jewish friend I've had has been somewhat stingy (Dave, Eric...and others), but they always pay for something that is beneficial. This motherfarker is trying to rip me off and make me take a loss on the project despite the fact that 30% of the project is being paid for by the utilities.
Of course he doesn't pay his electric bill on time, so he doesn't get the 36 month o% interest loan. Heh if he'd only been less of a cunt when it came to that he'd have to pay NO money up front.
The loan is provided via CityBank, and the interest is paid by the CT Clean Energy Fund which is why it is a 0% interest rate. The 30% incentive is from a $0.003 charge all CT rate payers have on their electric bill.
Anyhoo...this guy wants to sit down over a lunch, and haggle me down to what HE thinks it should cost. Of course he wants to bring in his brother who runs a construction company...sheesh.
So here's the deal on why the project costs what it does.
Numerous Fire Code Violations: severely damaged and inoperable exit lights, and non-code wiring to existing fixtures. Plus we are changing his lighting grid around, and we are charging him for disposal costs of the lamps and ballasts. Oh and we pay our electricians decent money instead of doing what some places do which is charge 80/hour but only pay 20/hour to the workers, and take the rest for the company's profit.
In our case our pricing schemes are dictated to us in unit prices (i.e. a certain fixture takes x$ of labor to install/retro/whatever) by the utility company. so we CAN'T mark stuff up for a nice thick profit like others including union shops.
Even if he paid us cash we might be able to knock the price down by MAYBE $500...and even so that is damned close to a loss for us. The margins are tight and as far as I am concerned he can go fark himself with a red hot poker or just have his asshole brother do the project.
So I was doing my presentation for an energy conservation project and while he liked what he was hearing (including the fact that the building owner gets a tax deduction up to $1.80/sq foot or the material cost of the project: he gets the lesser of the two) He still wanted to (as my father says) "jew me down". Well yes...every jewish friend I've had has been somewhat stingy (Dave, Eric...and others), but they always pay for something that is beneficial. This motherfarker is trying to rip me off and make me take a loss on the project despite the fact that 30% of the project is being paid for by the utilities.
Of course he doesn't pay his electric bill on time, so he doesn't get the 36 month o% interest loan. Heh if he'd only been less of a cunt when it came to that he'd have to pay NO money up front.
The loan is provided via CityBank, and the interest is paid by the CT Clean Energy Fund which is why it is a 0% interest rate. The 30% incentive is from a $0.003 charge all CT rate payers have on their electric bill.
Anyhoo...this guy wants to sit down over a lunch, and haggle me down to what HE thinks it should cost. Of course he wants to bring in his brother who runs a construction company...sheesh.
So here's the deal on why the project costs what it does.
Numerous Fire Code Violations: severely damaged and inoperable exit lights, and non-code wiring to existing fixtures. Plus we are changing his lighting grid around, and we are charging him for disposal costs of the lamps and ballasts. Oh and we pay our electricians decent money instead of doing what some places do which is charge 80/hour but only pay 20/hour to the workers, and take the rest for the company's profit.
In our case our pricing schemes are dictated to us in unit prices (i.e. a certain fixture takes x$ of labor to install/retro/whatever) by the utility company. so we CAN'T mark stuff up for a nice thick profit like others including union shops.
Even if he paid us cash we might be able to knock the price down by MAYBE $500...and even so that is damned close to a loss for us. The margins are tight and as far as I am concerned he can go fark himself with a red hot poker or just have his asshole brother do the project.
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