Elon Musk
[Wired]
This Weeks Timely Info
Theo Epstein won't talk publicly about Johan Santana, even though the Boston Red Sox appear to be trying to add the two-time AL Cy Young Award winner to their already strong rotation.
On housing prices:
Home prices are also likely to decline substantially. If the economy narrowly escapes a full-blown recession—as we continue to expect in our baseline forecast—a peak-to-trough decline of 15% in house prices is the most likely outcome. This would imply price declines in states such as Florida of up to 30%. If the economy does enter a recession, prices could decline as much as 30% nationwide.THE HOME ATM
The Irvine Housing blog brings us these details (hat tip Atrios):
| Asking Price: $1,249,000 Purchase Price: $1,157,000 Purchase Date: 1/6/2005 |  |
The property was purchased in January 2005 for $1,157,000. The combined first and second mortgages totalled $1,156,730 leaving a downpayment of $270. Let’s just call it 100% financing.This story has been repeated all across America (usually on a smaller scale). This was not a subprime loan when the home was first purchased, but the collateral is now less than the total loan amount. The house hasn't sold yet, so perhaps the $999,999 Option ARM first is also impaired.
By April, they owners were able to find refinancing through Countrywide with a $999,999 first mortgage. This mortgage was an Option ARM with a 1% teaser rate. The minimum payment would be $3,216 per month.
Also in April of 2005, they took out a simultaneous second mortgage for $215,000 pulling out their first $58,000.
So look at their situation: They are living in a million dollar plus home in Turtle Ridge making payments less than those renting, and they “made” $58,000 in their first 4 months of ownership.
Apparently, these owners liked how hard their house was working for them, so they opened a revolving line of credit (HELOC) in August 2005 for $293,000. Did they spend it all? I can’t be sure, but the following certainly suggests they did.
In December of 2005, they extended their HELOC to $397,990.
In June of 2006, they extended their HELOC to $485,000.
In April of 2007, the well ran dry as they did their final HELOC of $491,000. I bet they were pissed when they couldn’t get more money.
So by April 2007, they have a first mortgage (Option ARM with a 1% teaser rate) for $999,999, and a HELOC for $491,000. These owners pulled $333,000 in HELOC money to fuel consumer spending.
Assuming they spent the entire HELOC (does anyone think they didn’t?), and assuming the negative amortization on the first mortgage has increased the loan balance, the total debt on the property exceeds $1,500,000. The asking price of $1,249,000 does not look like a rollback, but if the property actually sells at this price, the lender on the HELOC (Washington Mutual) will lose over $300,000.
These owners will probably just walk away. I doubt they have any assets. They never put any money into the deal, they pulled out $333,000 in cash, and they got to live in Turtle Ridge for 3 years. Not a bad deal — for them.
And look at the Mortgage Equity Withdrawal (MEW). One third of a million dollars, or over $100K per year. Perhaps the money was invested. Perhaps it was spent on new cars, flat screen TVs, vacations, or more - but this Home ATM appears out of money, and I suspect that will impact the homeowners' lifestyle.
This illustrates two important points: We are all subprime now, and, with falling house prices, the Home ATM is running dry.
The New Addiction
Cell Phones
IMHO
It’s bad enough in an of itself that the money for the war is borrowed, it’s worse that there even is a war. The worst thing though is that George Bush has been able to scare enough people to vote for him because it has allowed him to put their hands, and ours, on the bag and he’s going to leave us holding it while he is down in Crawford, clearing brush. Because that’s just about the only thing that really interests him.
That day in September was not a good one for America, but compared to the damage that George Bush and his government has inflicted on the United States and the world for decades to come, it’s nothing more than a pothole in the road to history.
Environment Canada has just announced that winter this year is expected to be the coldest in nearly 15 years. The last time Canada experienced such a cold season was in 1994 when temperatures dropped as low as -42C before factoring in the wind chill. When winters are cold and summers are hot
An Immortal Brilliancy
Edward Lasker (1885-1981) was an engineer and an author. He was awarded the title of International Master, even when his play was of Grandmaster strenght. He was five times US Open Champion (1916, 1917, 1919, 1920 and 1921). Many believe he was a distant relative of World Champion Emanuel Lasker. The game below is his immortal blitz masterpiece against Sir George Thomas, in which he announced Mate in eight. The game features a nice Queen sacrifice and one of the prettiest forced King marches over the board, it makes you wonder if White should have castled with Mate.
1. d4 f5 2. Nc3 Nf6 3. Nf3 e6 4. Bg5 Be7 5. Bxf6 Bxf6 6. e4 fxe4 7. Nxe4 b6 8. Ne5 O-O 9. Bd3 Bb7 10. Qh5 Qe7 Whit mates in eight. 11. Qxh7+!! Kxh7 12. Nxf6+ Kh6 13. Neg4+ Kg5 14. h4+ Kf4 15. g3+ Kf3 16. Be2+ Kg2 17. Rh2+ Kg1 18. Kd2#
Kasparov released from jail.
Bobby Fischer is in a Reykjavik hospital for unspecified condition. 12/01/07
Like saving money?
10. Be healthy
9. Move to a foreign country (or even visit for health care)
8. Quit smoking
7. Buy used
6. Buy a house you can afford
5. Cut your cable
4. Take your lunch to work
3. Limit small spending
2. Don't buy a pet
1. Move to a lower cost-of-living city
Oh no, you mean I might have to change my life if I want to cut spending?! Yep, there's a lot to dislike here. Then again, if you really need some extra money, many of these ideas can offer significant savings.
Throw out the remote control. It's impressive how much less television you'll watch if you have to get up every time you want to change channels or adjust the volume. Plus, it eliminates all those hours you spend channel surfing.
The report is an interesting sign that cognitive enhancement, using largely physical interventions such as drugs and implants, is now a topic important enough to trouble the UK's professional medical association.
Many of the ethical concerns center around a potential future where brain enhancing interventions are largely available to the wealthy, leading to a 'brain gap' where the less well off will have relatively poorer mental functioning because they can't access the same cognitive benefits.
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