The Only Store In Town
One company’s failure is another company’s success.
Top U.S. electronics retailer Best Buy Co has been gaining market share as rival Circuit City closes stores, and smart cost cutting could keep it shining throughout 2009, Barron’s said in its December 22 edition.
The weekly business newspaper said that while Best Buy shares were off by a third since it ran a bullish story on the company earlier this year, the retailer has been making the most of its rival Circuit City’s woes, after that company filed for bankruptcy.
It’s not too difficult to do well, when you are the only store in town.
Sphere: Related ContentCalifornia Is Literally Sinking
Uh oh. Does this mean in addition to investment firms, insurance companies, banks, homes, and cars, we all might own a piece of California oceanfront real estate too?
California faces a $41.8 billion shortfall for its combined current and next fiscal years, up from a prior $28 billion estimate as its economy weakens and revenues decline, the director of the state’s Department of Finance, said on Thursday.
Michael Genest, also Gov. Arnold Schwarzenegger’s state budget architect, told reporters at a briefing in the state capital of Sacramento the revised shortfall estimate includes provisions for a $2 billion reserve.
If so, I want my parcel to be just north of Malibu, or near San Pedro. Thanks!
Sphere: Related ContentVenturing Down The Socialist Road
Just what we need. In addition to having an ownership in banks, investment firms and millions of homes, it looks like we’re going to own a few auto manufacturers as well.
Congress and the White House inched toward a financial rescue of the Big Three auto makers, negotiating legislation that would give the U.S. government a substantial ownership stake in the industry and a central role in its restructuring.
I don’t know about you, but things are looking a bit socialist to me.
Sphere: Related ContentIt Just Keeps Getting Worse
Not only is the government buying bad mortgages, it appears they will soon be in the market for bad auto loans. Does this mean I can stop paying on my house and my truck, so you all can take over my payments for me?
The U.S. government is considering direct financial assistance to facilitate a possible merger between General Motors Corp (GM.N) and Chrysler LLC, a private sector source familiar with Treasury discussions told Reuters on Monday.
The Treasury Department is weighing aid of at least $5 billion, which could include capital injections and government purchases of bad auto loans, according to the source, a financial policy executive who spoke anonymously because the discussions are private.
If they do this, you know that every business out there is going to want a “bailout”, and cry until the government takes their bad debt as well.
Sphere: Related ContentTest Pattern #57: Who’s In Your Wallet?
Over the weekend, the Senate held an unusual Saturday session in order to pass the “Foreclosure Prevention Act of 2008″ or was it the “Housing and Economic Recovery Act of 2008″? No wait. Wait, wait, wait. It was the “American Housing Rescue and Foreclosure Prevention Act of 2008″. That’s it.
No matter what name they put at the top of this bill, and they had many to chose from, it’s nothing more than a 600 page document of how much Congress (and the President) have lost touch with the American people. It’s a 600 page guide on how to make the American people think you actually care about them during an election year.
Sphere: Related ContentAmerica’s Guitar?
Seen at the fail blog:
Wow.
What Really Caused The Mortgage Crisis?
This special message is sponsored by the letter “D” and the number ‘0′.
It’s no secret that Countrywide Home Loans, with the help of a shady mortgage broker, took advantage of a couple people I hold very dear to my heart.
Just over two years ago, they realized they had been duped into a mortgage they were not going to be able to afford. With the adjustable rate climbing, and the mortgage barely within their ability to pay, they took action trying to prevent disaster before it happened.
Over the course of these past two years, they tried working with Countrywide. Countrywide wanted no part of it. The only assistance Countrywide offered, was negotiating a new mortgage (which would have caused them to default even faster). They placed the house on the market immediately.
Because of the turn in the market, they couldn’t even get anyone to look at the house. Countrywide still ignored them. When they did receive an offer, they inquired about short-selling, but Countrywide slammed the door on that idea.
Nine months ago they were forced to walk away from the house. Countrywide gave them no choice. Several months ago, they foreclosed on the house. Last month, the house sold to another person for less than half what was owed on it.
And now? Countrywide actually sent them a letter telling them that their mortgage payment had been “adjusted” into a fixed 7.25% interest loan, with payments that were very reasonable, and in fact, affordable. One month after the house sold.
The people at Countrywide are “d”umbasses. They were screwing people over for years, and now they are sending out these fake “we’ll help you now” letters to convince the government they are actually trying to help them. They have to. It’s the only way they can guarantee that the government is going to help bail them out.
Countrywide was, and still is, run by a bunch of people with ‘0′ (zero) common sense. If they had actually helped the homeowners who didn’t want to walk away, rather than ignoring them, the mortgage “crisis” might not have become much of a crisis at all.
Crossposted at Slobokan’s Site O’ Schtuff.
Sphere: Related ContentHow Can You Bail These Two Out?
Now ain’t that a coincidence. Freddie Mac shares are down 75% for the year. Aren’t 75% of the sub-prime mortgages in foreclosure as well? Wow.
US mortgage giants Fannie Mae and Freddie Mac are facing growing pressure as fears intensify about a potential calamity at the firms, which underpin trillions of dollars in home loans.
On Thursday, Freddie Mac shares plunged 22 percent to eight dollars, and are down over 40 percent this week and 75 percent this year.
Word has it that the current administration has held talks about what to do if the two firms falter. Umm… What can they do? There is $1.5 trillion dollars tied up in Freddie Mac and $700 billion in Fannie Mae. How can he fix that? By signing another stimulus package into law? Crazy.
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Sphere: Related ContentCountrywide Facing Sub-Prime Lawsuit
It’s good to see more and more states stepping up and holding the executives at Countrywide accountable for their actions.
Florida sued mortgage lender Countrywide Financial Corp (CFC.N) on Monday for predatory lending practices, alleging the company at the center of the U.S. mortgage crisis made subprime loans to people who could not repay them.
…
The state alleged the company gave subprime loans to borrowers who could not repay them, loaned money at higher subprime rates to people who qualified for prime rate loans and engaged in other deceptive marketing and unfair trade practices, contrary to claims in its 10-K filings.
It will come as no surprise to me if all of the allegations are true. I know of a few people personally, including family, who were deceived by the predatory lending practices of Countrywide and I for one will be happy if some of those people in charge end up doing time for their crimes.
Cross posted at Slobokan’s Site O’ Schtuff.
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The Ups And Downs Of Oil
Up and down, up and down. How high is oil going to climb on “speculation” before it settles back down to a realistic level?
The Dow briefly turned positive on Monday and the Nasdaq rose more than 1 percent as oil prices reversed an earlier climb, providing investors with some comfort following data that revived concerns about the economy.
Stimulating the economy won’t help, no matter how you try to do it, if people are spending more than the equivalent of that stimulus money on the nearly doubled gas prices.
Oh sure, people pay a lot more than we do overseas, but you know, that is beside the point. The price of gas has risen so quickly here that the cost of gasoline is now eating away at the money many people, myself included, need for other necessities.
Where’s all that Iraqi oil everyone keeps saying we are in the war for? If we “invaded” Iraq to get their oil, why has the cost of oil skyrocketed? Shouldn’t we have plenty of it just laying around waiting to be burnt in our automobiles?
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