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Home Equity Loans Spike As Americans Scramble For Cash

Tyler Durden's picture




 

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

With real incomes stagnant and the cost of everything from food, school tuition and healthcare premiums skyrocketing for millions of Americans, it appears that borrowing against one’s home is once again a key source for consumption, if not survival, for the nearly extinct socio-economic demographic known as the middle-class.

The Wall Street Journal reported yesterday that home-equity lines of credit (Helocs) had increased at a 8% rate year-over-year in 1Q14. Some banks are more aggressive than others, and perhaps we shouldn’t be surprised to see TBTF government welfare baby Bank of America leading the charge, with $1.98 billion in Helocs in the first quarter, up 77% versus 1Q13.

What could possibly go wrong?

 

As HELOC delinquencies are off their highs (for now) but remain elevated... (we are sure this renewed ATM usage on the back of created wealth and stagnant wages won't harm that downward trend at all...) - will we never learn?

 

From the WSJ:

A rebound in house prices and near-record-low interest rates are prompting homeowners to borrow against their properties, marking the return of a practice that was all the rage before the financial crisis.

 

Home-equity lines of credit, or Helocs, and home-equity loans jumped 8% in the first quarter from a year earlier, industry newsletter Inside Mortgage Finance said Thursday. The $13 billion extended was the most for the start of a year since 2009. Inside Mortgage Finance noted the bulk of the home-equity originations were Helocs.

 

While that is still far below the peak of $113 billion during the third quarter of 2006, this year’s gains are the latest evidence that the tight credit conditions that have defined mortgage lending in recent years are starting to loosen. Some lenders are even reviving old loan products that haven’t been seen in years in an attempt to gain market share.

 

Some individual banks have seen their Heloc originations rise much faster than the national average. Bank of America Corp., which has increased marketing for Helocs, said customers opened $1.98 billion in Helocs in the first quarter, up 77% from the first quarter of 2013. Matt Potere, who leads Bank of America’s home-equity business, said many customers are taking out Helocs to pay for home-improvement projects that were delayed during the housing bust.

 

Some lenders are even bringing back “piggyback” loans, which serve as a second mortgage and cover part or all of the traditional 20% down payment when purchasing a house. Piggybacks nearly vanished during the mortgage crisis.

 

For consumers in need of cash, Helocs offer an alternative to “cash-out refinancings” in which a homeowner taps equity by taking out a new loan that is bigger than the existing mortgage.

 

Ian Feldberg planned to open a $200,000 Heloc this week with Belmont Savings Bank to help pay his son’s college tuition. The medical-device scientist purchased his home in Sudbury, Mass. for a little over $1 million in 2004, and estimates that its value dipped as low as $800,000 during the financial crisis. However, after applying for the line of credit, he found that its value had completely recovered.

 

“I’m very pleased about that. My options for tuition fees were either that or to cash in on my pension prematurely,” he said.

Think about that for a minute. A “medical-device scientist” can’t send his kid to college without either a Heloc or cashing in on his pension.

The new American Dream.

Full article here.

 

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Sat, 05/31/2014 - 13:30 | 4812658 Village-idiot
Village-idiot's picture

I reckon these people have been conviced that inflation is going to take off, along with interest-rates rising.

And if deflation happens? They're screwed (and homeless).

If you don't think we're going to deflation look at this : http://research.stlouisfed.org/fred2/series/M2V

The currency-creating by the Fed is simply an attempt to offset deflation. I don't think they do it forever, as the deflationary forces are just getting started. As more Baby-Boomers retire they'll cut back their spending causing that money velocity to drop even further.

 

Sat, 05/31/2014 - 13:30 | 4812664 QQQBall
QQQBall's picture

I don't think that's it. I think this time might be different - people are still trying to sustain (for them) an unaffordable lifestyle. If you cannot pay $200k to send your kid to a certain college, then you need to consider other options. The new normal is different.

Sat, 05/31/2014 - 13:31 | 4812665 Bunga Bunga
Bunga Bunga's picture

IT'S DIFFERENT EVERYTIME!

Sat, 05/31/2014 - 13:48 | 4812685 Handful of Dust
Handful of Dust's picture

I’ve maxed out my credit cards….trashed my 401(k)….robbed my kids Piggy Bank….sold my daughter to the local Pimp….applied for my 8th Student Loan….

 

What’s left?

 

Mi Casa !

 

It's all ... BoooYaaahhhh !

Sat, 05/31/2014 - 14:06 | 4812705 BlindMonkey
BlindMonkey's picture

Shit. You can still sell your soul to the devil.

Sat, 05/31/2014 - 14:14 | 4812714 edotabin
edotabin's picture

And how are all these loans any different?  On the plus side, just when you think it's all over, Squidman Golds will probably think up another great way to expand the economy. It will all be fixed. Nothing to worry about.

Sat, 05/31/2014 - 14:29 | 4812732 Village-idiot
Village-idiot's picture

https://www.youtube.com/watch?v=d-diB65scQU

Now I can see why marijuana is being legalized!

Sat, 05/31/2014 - 15:45 | 4812851 Headbanger
Headbanger's picture

Yep, I'm tapping my HELOC out before the ten year window closes on it and I bet many other home owners are doing the same.

I think this surge in HELOC borrowing is fantastic cause it will help crash the entire financial system and hasten the economic reset we need!

And I recommend older home owners especially max out their HELOCS while they can cause what fucking difference will a poor credit rating make when you're over 70 anyway!!?

 

In other words..  Fuck the system  cause it's fucked us up real bad now!

And I think I'll finally burn my draft card!

 

Oh wait...  They're even our friends now too!

 

Sat, 05/31/2014 - 15:47 | 4812855 COSMOS
COSMOS's picture

LOL @Handful, you know what is still LEFT, well you have a BUTHOLE you can make some money with LOL, I hear some Hollyweird movie directors like a strapping kind of guy hahahah

Sun, 06/01/2014 - 00:55 | 4813812 Harbanger
Harbanger's picture

Easy for you to say, your butthole may have some mileage but you're still cute.  Handful looks like he's on chemo.

Sat, 05/31/2014 - 15:51 | 4812864 Bunga Bunga
Bunga Bunga's picture

If you still have some small piece of a brain, this is the lesson to be learned from last time: Cache out as much as you can. Don't worry, they can't go after the debtors anyway, otherwise they would crash the system immediately. And in the end it will crash anyway, but enjoy the party as longs as it's on.

Sat, 05/31/2014 - 15:55 | 4812870 Headbanger
Headbanger's picture

BING-FUCKING-O!!

Over...

Sat, 05/31/2014 - 21:59 | 4813609 Bunga Bunga
Bunga Bunga's picture

BUNGA-BUNGA!!!!

Sun, 06/01/2014 - 11:10 | 4814195 Calmyourself
Calmyourself's picture

Yeah that is great advice now if you could lay out the exact timing of this crash that would be peachy..

Sat, 05/31/2014 - 14:38 | 4812746 slotmouth
slotmouth's picture

Ain't got no soul to sell.

Sat, 05/31/2014 - 14:58 | 4812778 eurogold
eurogold's picture

Prepping for Real Estate Crash 2.0 !

Sat, 05/31/2014 - 15:24 | 4812813 ebworthen
ebworthen's picture

It's all so 2007.

Sun, 06/01/2014 - 01:01 | 4813818 Harbanger
Harbanger's picture

Sum ting wong with my chinese calendar.

Sat, 05/31/2014 - 15:36 | 4812841 stocktivity
stocktivity's picture

Where is the location?

Sun, 06/01/2014 - 10:19 | 4814103 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

no thanks my heroin days are over

Sun, 06/01/2014 - 11:42 | 4814251 Offthebeach
Offthebeach's picture

Hell's full up.
You can't get squat for a common soul. Mass murdering serial pedofile, maybe. Bankers, yes. The doors are wide open for them. The rest of us common sinners rot in Limbo.

Sat, 05/31/2014 - 13:59 | 4812701 drendebe10
drendebe10's picture

Standing round of applause for the policies that enable this for the arrogant narcissistic illegal indonesian kenyan alien muslim sociopathic liar in chief and the corrupt elected ruling politucal for bringing this to all hard working US citizen taxpayers.  Maybe our honorable men and women in the servuces are targeting the wrong enemies. Ya think?

Sat, 05/31/2014 - 14:04 | 4812704 blabam
blabam's picture

Deflation on a paper money standard when everybody loses faith in .gov institutions.. thanks for tha laugh.

Sat, 05/31/2014 - 16:58 | 4812995 Frilton Miedman
Frilton Miedman's picture

 

 

I've been observing Velocity for years now.

It all boils down to wage growth, and if that pipe dream (wage growth) happens, how well the Fed can counter inflation in light of excess reserves being @ astronomical levels.

Either I believe the end of days is near, or that Winston Churchill was right, that America always does the right thing once all options are exhausted.

In case Churchill was right, I'm short a small amount of treasuries.

 

 

 

Sat, 05/31/2014 - 22:23 | 4813655 yogibear
yogibear's picture

Winston Churchill is dead, eventually so will the Ponzi-scheme called the Federal Reserve system.

Sun, 06/01/2014 - 07:07 | 4813953 FredFlintstone
FredFlintstone's picture

Maybe he meant the Winston Churchill who posts here?

Sat, 05/31/2014 - 20:01 | 4813408 christiangustafson
christiangustafson's picture

teh deflations, bitchez!  yes yes!

Sat, 05/31/2014 - 13:23 | 4812659 The Merovingian
The Merovingian's picture

A “medical-device scientist” can’t send his kid to college without either a Heloc or cashing in on his pension.  

 

Sounds to me like that guy's kid needs to apply to a good trade school instead.

Sat, 05/31/2014 - 14:10 | 4812709 BlindMonkey
BlindMonkey's picture

I have been trying for years to become a speculum design scientist. I still haven't found my dream job yet.

Sat, 05/31/2014 - 15:24 | 4812808 ebworthen
ebworthen's picture

Lots of hands-on tactile research I'm assuming?

Sat, 05/31/2014 - 15:53 | 4812868 Headbanger
Headbanger's picture

Agggghhhh!!    Are you CRAZY!

One of em around the house is MOAR than enough after numerous decades!

So PLEASE PLEASE PLEASE do research on perfecting the "Stepford Wives" but with a REMOTE that has a big red MUTE BUTTON!!

TIA!  And please hurry.

Sun, 06/01/2014 - 07:05 | 4813952 FredFlintstone
FredFlintstone's picture

I heard a good "bit" on the radio a few years ago where they were discussing the talking Japanese sex robots that were being sold for $7,500. The DJ said he would pay $8,000 for one that did not talk.

Sun, 06/01/2014 - 07:03 | 4813949 FredFlintstone
FredFlintstone's picture

15 years ago I was involved in the design of about 8 fashion design studios in the garment district in lower Manhattan. One of the studios was for a lingerie company. The architectural floor plan had offices and cubicles with labels such as "Bra Designer", "Panty Designer", "Senior Bra Designer", etc. 

How do you get a job like that? I would love to assist one of those guys. Maybe doing "field measurements".

Sat, 05/31/2014 - 15:49 | 4812860 COSMOS
COSMOS's picture

How about at home schooling, the dad's a scientist, I am sure he can teach the kid, why not bring him to work and have the kid act as an intern for a few years.

Sat, 05/31/2014 - 16:44 | 4812990 F22
F22's picture

What if one used his HELOC to purchase physical gold?

....and then lost it in a tragic boating accident..

Sat, 05/31/2014 - 22:00 | 4813614 Bunga Bunga
Bunga Bunga's picture

It means maximizing your survival rate after the big crash.

Sat, 05/31/2014 - 18:36 | 4813245 CrazyCatLady
CrazyCatLady's picture

More disturbing than that, this "medical device scientist" has had a job for the last twenty years at least designing vital medical equipment.  Makes you wonder who really makes pacemakers, hope i dont need one.

Sat, 05/31/2014 - 20:44 | 4813476 11b40
11b40's picture

....but he has a $1,000,000 house.

Think about that.

Sat, 05/31/2014 - 22:54 | 4813692 10mm
10mm's picture

Never. Trade school is beneath him. That's for the common man. A fuckin house at 1 million in shit ass Mass.No way trade school, but your right.

Sun, 06/01/2014 - 06:23 | 4813930 GCT
GCT's picture

I am glad someone said it Merovington!  + 100!!!  200k to send your child to school obviously he ot she is not the sharpest tool in the shed or they would be getting academic assistance.  Part of the problem is the parents are even stupider then their offspring.  Take out an equity loan sure why not, but I would not be sending my under achiever to college with the money.  Let them children become debt salves before they even get a job and go buy a nice boat with that money or the car you always wanted hahaha.  80% of the kids these days have to take remedial classes to even take college level course!!  Maybe that is why daddy wants to take out the loan!

I am sure the kid will be getting the degree in basket weaving.  Oh I forgot you can become a government employeee with any type of degree these days.  WTF the parents going to do when they get laid off as they continue to offshore the good paying jobs. 

 

Sat, 05/31/2014 - 13:28 | 4812661 QQQBall
QQQBall's picture

few will be refinancing their homes for a while. Second TD, home equity, LOCs against the crib is what is left. Bundle them, get them rated AAA and sell the "no risk ports" to yield starved pension funds.

Sat, 05/31/2014 - 13:38 | 4812672 duo
duo's picture

My mortgage is at 5.5%, but my BofA HELOC is at 2.75%.  I'm seriously considering using my HELOC to pay off my mortgage.

Sat, 05/31/2014 - 17:08 | 4813055 yellowsub
yellowsub's picture

Isn't a HeLOC adjustable rate?  Not sure if that would be a good idea but then again if the economy collapse it wouldn't matter.

Sun, 06/01/2014 - 06:58 | 4813948 FredFlintstone
FredFlintstone's picture

I did that about 8 to 10 years ago when my mortgage was at 5% and HELOC was maybe 3.3%. I then paid the HELOC off in 18 months. Just have homeowners insurance, property taxes and utilities to pay. Why pay a bank all of that money :)

Sat, 05/31/2014 - 14:42 | 4812662 buzzsaw99
buzzsaw99's picture

NOTIONAL sfh prices are rising. NOTIONAL.

Sat, 05/31/2014 - 13:29 | 4812663 sessinpo
sessinpo's picture

A friend of mine lost his job and was unemployed for a while. He sold his PMs and other stuff just to get by. Perhaps this story will make PM bugs understand why PMs go down in a deflationionary period. Cash is king until the beast is killed. In the mean time ,everything else gets sold off or borrowed against to raise cash.

Sat, 05/31/2014 - 13:45 | 4812681 Renewable Life
Renewable Life's picture

I agree, had lunch with a former stock broker, turned stock info entrepreneur yesterday, he said most of his "old big money guys" are prepping for DOW 17,500 at which time the flush will be biblical (for westerners) and in the flush GLD and SLR will get plunged too, at which he stopped and said, "I hope you have enough cash at that point to go all in on physical PM" because that will be the high in the DOW and the low in PM's for our lifetime!!!

I told him he was preaching to the choir, he laughed and said, "it's a small choir were part of on Wall Street and Main Street right now" but big money guys are getting ready right now, 2007 style!! I think he's right, it's the only explanation for bond plunge too, short positions are closing like crazy!!

Sat, 05/31/2014 - 14:31 | 4812736 Winston Churchill
Winston Churchill's picture

They will be competing against 'new' eastern money at that point.

Its a new game ,and the 'old' players might get a surprise unless this is planned

for the very near future.The timeline for the endgame is running out fast.

Sat, 05/31/2014 - 13:52 | 4812689 Tinky
Tinky's picture

The problem with that thesis is that the vast bulk of privately held PMs in the U.S. is owned by wealthy individuals, and they ain't selling, even during a deflationary collapse.

Sat, 05/31/2014 - 18:52 | 4813274 Renewable Life
Renewable Life's picture

Well I'm a small player obviously, but I've never been NOT able to buy phyz yet, when I wanted to!! I'm sure the day is coming, which is why the small guys should continue to buy now, in any flush situation, PM's will be down and up pretty fast!!

I also expect the decoupling of PM phyz from paper to occur at this same point, which will send millions of paper contracts into a defaulted position, and could blow up the whole ETF system!! Because you are right, India, Russia, and China will all be backing the trucks up too, at this point!

Sat, 05/31/2014 - 22:10 | 4813631 Bunga Bunga
Bunga Bunga's picture

A deflationary crash won't last long, since there is the weapon of real money printing. The system has always the choice between immediately going under in a defelationary collapse or surviving a little bit longer per hyperinflation.

Sun, 06/01/2014 - 11:29 | 4814225 Calmyourself
Calmyourself's picture

Yeah the big money players will never let it go.

Sat, 05/31/2014 - 13:33 | 4812667 seek
seek's picture

On a semi-related topic, I got a marketing mailer yesterday.

"Only 100 FREE Fix and Flip for Quick Cash packages are available"

"Celebrity Real Estate Investor and Trainer ... Nick Vertucci is assembling an exclusive team of wealth builders.... yada yada... make $40,000 per deal with his 3-step Fortunes in Flipping program."

We're at a fucking top if this shit is in the mailbox. Prepare for real estate crash 2.0 shortly.

Sat, 05/31/2014 - 13:47 | 4812683 Village-idiot
Village-idiot's picture

When the newsboys and bootblacks are talking about stocks, it's time to sell.

When the Hollywood morons are talking about Real Estate it's time to sell.

Sat, 05/31/2014 - 15:27 | 4812822 ebworthen
ebworthen's picture

David Einhorn asked Regis Philbin to intern at Greenlight Capital this Summer, no lie.

Sat, 05/31/2014 - 13:53 | 4812693 Winston Churchill
Winston Churchill's picture

Very soon.

They have been pimping the flipper seminars for over a year down here in Florida.

I offered a stupid low price on some land six months ago,owned by a some hedge fund .

They laughed then.Yesterday they said they want to talk to me next week.

 

Sat, 05/31/2014 - 17:00 | 4813032 Hongcha
Hongcha's picture

Winston; excellent news.

Sat, 05/31/2014 - 17:06 | 4813046 Blano
Blano's picture

Tell them YOUR price has gone down.  Screw 'em.

Sat, 05/31/2014 - 17:37 | 4813136 Winston Churchill
Winston Churchill's picture

If I can keep Mrs. C out of it ,I will do exactly that.

They have been totally pig ignorant the whole six months, but they have had no luck

at all selling it.Time to turn the screws.

Sat, 05/31/2014 - 17:05 | 4813044 Blano
Blano's picture

Yet another wave of them is coming through Dallas as we speak.

Sat, 05/31/2014 - 13:37 | 4812671 buzzsaw99
buzzsaw99's picture

i know so many people living beyond their means. they think they are middle class, but they are dirt poor, poorer than poor.

Sat, 05/31/2014 - 16:59 | 4813029 Hongcha
Hongcha's picture

buzzsaw; indeed.  Even the cocksucking Walnut Creek Laowais driving Lexus phatburger SUVs are one paycheck away.  While the old raggedy men playing poker in Portsmouth Square and buying up their gold, are often cash millionaires living off the interest.

Sat, 05/31/2014 - 17:16 | 4813077 infinity8
infinity8's picture

Back in the early 00's, I had been working for the same (privately held) company for several years (sold out in '07 cause old boy saw what was going down, 'nother story). Co-workers always rolling up in fly rides and new clothes with fancy gadgets and talking about all the shit they bought over the weekend. After a while I was like "I know where you work m'fr! How you makin' that happen?" HELOC's, mostly, or just too many credit cards because they had a decent paying job for a while. So, I was all "So, do you own it?" and it was entertaining at the time to see their uncomfortable facial responses. Now, I don't go there because it's just depressing fear and denial.

Sun, 06/01/2014 - 06:53 | 4813944 FredFlintstone
FredFlintstone's picture

There is a neighborhood just south of ours where the homes are not quite as nice. We all keep our modest cars (Hondas, Toyotas) in the garages. The other neighborhood no one parks in their garages even though they all have 2 or 3 car garages. Lots of BMWs, Escalades, boats, etc sitting out in the elements.

My sense is that they look at their take home pay and then max it out with a mortgage, car loans and then realize they can squeeze a little more in there for a Harley, a boat or both. Oh, and put the Disney vacation on a credit card. Ghetto mind set in middle class clothing.

Seem like people who grew up poor have to buy all sorts of shit they really cannot afford to feel good about themselves.

Sun, 06/01/2014 - 08:51 | 4814021 Postal
Postal's picture

Mrs. P and I work with several people like that: Do anything but look poor. In fact, one has to look rich, not just "not poor." Of course, these are the same people who won't eat farm-fresh eggs because the eggs aren't grocery store white.

Sat, 05/31/2014 - 13:52 | 4812692 hairball48
hairball48's picture

I see the cash crunch among the poor around here. Pawn shops are doing well. Garage sales are up along with  Craigs list, and the usual places where us low income folks sell shit. I see it everyhwere with the low incomes types I work with these days. It's spring and people are selling  a lot of their "stuff" for whatever it'll bring.

It's the poor people's  version of raising cash since they don't have any equity in their home---assuming they even have a home.

My question is:

What's next when they have sold all their shit and are still broke?

https://www.youtube.com/watch?v=Sx7D8p-AoEs

Sat, 05/31/2014 - 13:56 | 4812695 indio007
indio007's picture

You should check the whole sale theft happening down the probate courts to the elderly. They are being strip mined.

 

BTW my wife is outside right now selling our junk. :P

Sat, 05/31/2014 - 15:36 | 4812846 W.M. Worry
W.M. Worry's picture

"You should check the whole sale theft happening down the probate courts to the elderly. They are being strip mined."

Not in California? Probate fees are limited to a decreasing percentage. I just settled my cousins estate after 22 years of probate. It took that long to resolve the groundwater contamination at his main asset : industrial property in Anaheim. Our probate Attorney stuck by us the whole 22 years. Her total take : $11,000


Sat, 05/31/2014 - 16:56 | 4813020 Hongcha
Hongcha's picture

Cocksucking Ivy-league lawyers/judges running that show, indio007.

Sat, 05/31/2014 - 13:58 | 4812699 Sudden Debt
Sudden Debt's picture

well, it explains why those programms pawn shop and storage wars and all those second hands crap shows are doing so well.
What strikes me in these programms is that people sell family pieces they own for as long as they remember for a few hundred bucks!
And when they say what they'll be doing with the money... gambling... other cheap crap... you name it...

Sat, 05/31/2014 - 14:49 | 4812759 hairball48
hairball48's picture

You're exactly right. You have no idea at what I see people selling for cents on the dollar, and then...

Some of these morons will go out and immediately blow it on bullshit consumption...A guy's gotta finish that sleeve tattoo ya know? Or my other fave, "Girls getting their nails done". Or, both do both!! They're fucking broke, but what cash they get they piss away, and then complain 'cause they're broke again LOL!!

Some (alleged)crack head came in one of the joints I work for as I happened to be standing close by the podium. She put two dollars in change on the podium and asked for bills to put in the machines. I happened to notice the "change" she gave was 7 90% silver quarters, 2 90% Mercury dimes and a nickle. The silver "stacked" nicely :)

What the elites haven't figured out yet, or under appreciate, is the violence that is going to erupt when this next financial shitstorm arrives.

 

Sat, 05/31/2014 - 16:55 | 4813017 Hongcha
Hongcha's picture

Yes indeed H.hairball; and I wish ...those people still had silver and gold to sell to small-time Lumpen like myself.e; but unfortunately for the likes of me, it seems in Amerika the only people with bullion are the smart ones and they will not discount it.

Sat, 05/31/2014 - 18:36 | 4813244 Miffed Microbio...
Miffed Microbiologist's picture

" girls getting their nails done"

Had a real laugh at that. A year ago I had to accompany my husband on a week long business trip. There were going to be several formal evenings with the CEO and board members and I was a bit intimidated by the whole event. Thinking I should make an attempt to at least look the part, I went out and got acrylic nails. I thought I was going to look like the belle of the soirées and was shocked when mr looked at me like I was going to release the flying monkeys. Damn thing cost me $50 and would be $20 in upkeep every 2 weeks! Had the stupid things removed when we got home.

May be I'm just fortunate to have a man that likes my natural approach to simple beauty and not frilly female frippery. Come to think of it, I never have heard any man remark how he finds them attractive. Funny to imagine all those nail salons and money spent for no purpose then a self delusion.

Miffed;-)

Sun, 06/01/2014 - 06:44 | 4813940 FredFlintstone
FredFlintstone's picture

I am a sucker for the french nail look.

Sun, 06/01/2014 - 11:52 | 4814281 Miffed Microbio...
Miffed Microbiologist's picture

Actually when done well it can look quite pretty but I work with lots of acetone and any nail Polish is quickly washed away. Acrylic nails are banned in the lab. No one had to make that rule for me. I handle fungus culture plates everyday I am not stupid. ;-)

Miffed;-)

Sun, 06/01/2014 - 00:34 | 4813790 kareninca
kareninca's picture

Twenty years ago I had a friend who was the only person I knew who had her nails done regularly at a salon.  She was rich; this was back before it was common; she would often go with her mother as an outing to very posh places.  She was also the only person I knew who had nail fungus on her fingernails.

I have consequently avoided the places, except as a (non-participating) guest at an outing.  I have noticed that the hygiene, even in the fancy salons, is dismal.  They will plop your hands into a basin that five minutes ago held the hand of someone who looked her fingertips were rotting off.

I think that part of the reason women keep going to these places is that they go, they get nail fungus, you can't get rid of nail fungus except via expensive lasar treatment, but if you keep putting fake nails on then the fungus doesn't show.  That keeps the industry humming along.

And tattoos???  They are a great way to catch hepatitis.  Not just via the needles, but also via the ink.  If you must get a tattoo, make sure you are getting a new, just-opened container of ink.  Better yet, use a tattoo from the Cracker Jacks box.

Sun, 06/01/2014 - 11:49 | 4814269 Miffed Microbio...
Miffed Microbiologist's picture

Funny you should mention tattoos. I just got an EMAN alert Friday for San Diego. I guess several local parlors had given clients Mycobacterium chelonae/abscessus infections that had gone quite bad. Abscessus can be a nasty resistant aggressive bug so they got a lot more than they anticipated. I once isolated it from a man who went to Nicaragua to get a butt implant. Damn near killed him. After that I decided lots of squats and lounges may be the right answer for my problem area rather than the surgical option.

Miffed;-)

Sat, 05/31/2014 - 13:54 | 4812694 Sudden Debt
Sudden Debt's picture

My rule when I'm overspending is cutting down the next month.
Spending 5k for example is te easiest thing in the world, saving 5k is more difficult and downpaying 5k is also pretty easy untill you loand out another 5k and another 5k and another 5k.... untill your downpayment on follish expenses reaches 1/3 of your salary.
People should try to figure out what crap they spend it on and if it was worth taking out loans for it.
If you don't have it, don't spend it.
Even a 100 dollar interest on a creditcard per month costs you 1200 dollar a year and that's for what? a creditline of 7000 dollars?
I wish I could loan out money to people at rates like that.

Sat, 05/31/2014 - 14:05 | 4812703 Winston Churchill
Winston Churchill's picture

Indeed SD.

Amazing how soon people forget isn't it, but I suspect a lot are now forced to borrow for such

luxuries as food , and transportation(a basic here in the US with little public service).

Obozo care was the final nail in the coffin for a lot.If I hadn't changed my clients to

the 1% and above, I would be there myself.There but for the grace of.....

Sat, 05/31/2014 - 14:19 | 4812718 QQQBall
QQQBall's picture

Once you get financially independent and debt free, taking on debt again is unattractive unless the yield is ,assive. Work hard, live well below your means, save and invest. Borrowing to buy what you cannot afford is not part of the plan. BTW, financially indepednet is a realtive term. For som eits $1/2MM, some its a Million Bucks and for others its haveing enough income not ever HAVE to work again.  

Sat, 05/31/2014 - 13:59 | 4812700 Village-idiot
Village-idiot's picture

Here in Alberta, the guy that lived next-door to me died last September. His family has just walked away from his house; they want no part of it.

A small mortgage, two years back-taxes and all utilities cut off. It'll probably go to auction in a few months. I think I'll offer a dollar and see what happens.

Sat, 05/31/2014 - 15:05 | 4812788 Tinky
Tinky's picture

Hmmm...perhaps it's sitting on undiscovered tar sands. I'll go halves, provide you with leverage, and send you a dollar on Monday.

Sat, 05/31/2014 - 15:03 | 4812787 starman
starman's picture

Body of  mine just  paid off hes Range Rover and the wife's Beemer to see if he can refy and save the castle. Interesting times ahead.

Sat, 05/31/2014 - 15:35 | 4812802 evernewecon
evernewecon's picture

 

 

 

Obviously re-hypothecation of nothingness

to the extent of supply/market manipulation,

Case-Shiller favoring more recent turnarounds

(as Jurow suggests,) price dispersion (Ritholtz,)

and the like.

 

And of course they're potentially 

scrambling for funny money.

 

 

Sat, 05/31/2014 - 15:30 | 4812827 ElvisDog
ElvisDog's picture

What an idiot. If he can't pay for his child's tuition in cash or out of current income, why the fuck did he buy a $1 million dollar home? Or if his home has recovered its value, sell the overpriced bitch, downsize, and pay for college with the difference. He deserves everything coming his way if he loses that high-income medical device job and his house in the bargain.

Sat, 05/31/2014 - 15:50 | 4812859 ebworthen
ebworthen's picture

His child should take out a student loan, we need to get it to $2 Trillion.

The end run, after milking Parents and Grandparents savings to pay off the kids loans, will be a jubilee.

This won't happen until there is so much unrest and civil disobedience it is the only choice.

Before that point it will be:

  1. Loan all the money you can to prop the Higher Ed. bubble.
  2. Collect as much as you can and put the rest in forbearance.
  3. Raise interest rates on the loans.
  4. Threaten and cajole and sic the collection agencies on them and get Parents and Grandparents to pay it.
  5. Whoever is in the role at the time will do a Hank Paulson "tanks in the streets" to bail out the lenders.
  6. Continue to collect on the loans as rates go up; garnish wages, seize property and assets.
  7. FED easing to be called "LE" that buys securitized loans and derivatives to benefit banks.
  8. Repeat steps 1-4 and 6 & 7 until tuition costs are so high and everyone so broke that the loans aren't being paid or taken out to sustain the bubble.
  9. A collapse in the Higher Ed. model ensues with tenured professors being fired and degree programs cut.
  10. Debt jubilee on existing loans, establishment of a new loan program based upon participation in the RGTC (Reserve Grunt Training Corps).
Sat, 05/31/2014 - 18:15 | 4813215 lotsoffun
lotsoffun's picture

i paid for my college by working before it, saving, during it, taking loans and paying for it after it. 

Sun, 06/01/2014 - 07:59 | 4813984 Jack4952
Jack4952's picture

To ElvisDog:

Belmont is the wealthiest and most exclusive town in Massachusetts. With house prices rising at absurdly fast rates in 2004, Belmont would have been the PERFECT place to speculate. The guy simply failed to sell it BEFORE the crash. It should be noted that the surrounding towns also have extremely high house prices, so finding one under $750,000 would not have been easy at that time. (I know. I used to live in that same area.)

So, $1 million may seem like a LOT of money for a home, but in the greater Boston suburbs, it was NOT.

Sat, 05/31/2014 - 17:26 | 4813112 Midnight Rider
Midnight Rider's picture

The new rash of subprime auto loans of recent day will be interesting to watch. They are doing many year zero percent loans with no payments for 90 day loans now. Those delinquencies won't even start to show up for at least the 90 day no payment period.

Sat, 05/31/2014 - 18:19 | 4813219 Bemused Observer
Bemused Observer's picture

What is going on with this website?   Every damned time I log on the thing completely freezes. It;s the only site that does this...                   

Sat, 05/31/2014 - 18:33 | 4813237 Winston Churchill
Winston Churchill's picture

Install noscript and adblock.

The Tylers make mucho dinero off tracking shit and ads that screws your browser up.

Sun, 06/01/2014 - 06:39 | 4813938 FredFlintstone
FredFlintstone's picture

Yep, that solved my problem.

Sat, 05/31/2014 - 19:54 | 4813395 christiangustafson
christiangustafson's picture

Q. What ever happened to Wells-Fargo's 2004-2008 AZ-NV-CA-WA HELOC book?

Is all of that shite parked over at the Fed at par?

Sun, 06/01/2014 - 09:13 | 4814039 d edwards
d edwards's picture

I've heard that damn near all mortgages now end up in the hands of the gov't-yet another way to control the dumb masses.

Sun, 06/01/2014 - 10:59 | 4814173 3rd Pig
3rd Pig's picture

"Little pig, little pig, let me come in."
"No, no, not by the hair on my chinny chin chin."
"Then I'll huff, and I'll puff, and I'll blow your house in."

Most don’t know there’s a Big Fucking hungry WOLF roaming around!

 

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